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Rene: What are we selling?

Jake; selling the company

Nelson: need segmentation of product and market

Wil: can we beat the competitive sourcing process?

w eknow the board thinks a certain way; dANECo we only look at baseload price!
Babaan baseload price, increase LF, require energy

Lowest cost! Lock in three year contract, first year low costs with increasing price

Incompatibility with CSP- Now, we have higher price but discounts, allowances, etc.
Change to cebu pacific strategy - charge very cheap rates, but be strict on
management

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Groups

1. Apec
2.

Current SMCGP Issues

1. No lack of increase of new plants


- Not that should we build new plants but how do we make this
profitabile?
- Formalize process for opening plants
o Funding
o Operations
o
o fsadf

2. Current IPPAs
a. Sual profitability and long-term plan
i. Significant increase of PSALM payments in 2020
ii. MERALCO contract expiry and
iii. Cannibalization due to migration of Limay contracts
b. Portfolio analysis (capacity, profitability of individual contracts)
c. Price wars and reduction of brand image due to increased external
supply and requirement for competitive sourcing
d. Competitive analysis

3. Rate
4. Company structure and scalability
a. Managing scale due to increasing number of plants, targets, and
business units
b. Difficulty of funding
i. Effort of restructuring due to hitting single-borrower limits and/or
grid limits
ii. Effects of varying tax exposures
iii. Restrictions of other current terms such as Ivory

5. Cost risk management


a.
6. APEC profitability
a. Low collection efficiency
b. High system loss due to technical and non-technical issues
c. HR problems and key rebellious enemies
d. CAPEX filing issues
e. ALECO Board relationship

7. Expansion Projects (Limay /Malita)


a. COD target date
b. New off-takers
c. Funding issues
d. Efficiency and fuel rate

8. Expansion Projects (Mariveles and Pagbilao)


a. Renegotiation of MERALCO PSA terms (possibility of exit clause
/strategy)
i. Lack of FOREX indexing
ii. Possible effects of COD movement
b. Tax issues
c. ECC permit
d. Funding (Low EIRR and PIRR)

9. Further greenfield projects (Bohol, Negros)


a. Financial structure
b. Profitability due to lack of transmission infrastructure and possible
negative rates
c. Competitive Sourcing Process

10.PALECO PSA contract


a. Permits
b. Funding

c.

11.High-level strategic objectives


a. Become an agile company

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