Eric Francia
President & CEO, ACEN
Annual Stockholders’ Meeting | 25 April 2022

Dear shareholders,

2021 continued to be a challenging year, given the prolonged impact of the pandemic. We want to thank the men and women of ACEN, who continued to work tirelessly to keep the lights on and build new capacity, notwithstanding the limitations and challenging conditions.

These vigorous efforts resulted in a robust performance for the year. ACEN registered a net income of P5.3 billion, representing a 22% growth versus the previous year. This was driven by the 21% growth in energy output which totaled 4,600 GWH.

The recently integrated international business registered a strong 51% income growth. This offset the 17% income decline in the Philippine operations due to the absence of non-recurring gains.

The company continues to grow its renewables portfolio aggressively. In 2021, we more than doubled our renewables capacity in the Philippines to 1000 MW. We also increased our international renewable capacity by 70% to 1500 MW by the end of 2021, and we further added another 800 MW in the first quarter of 2022.

Today, our renewables capacity stands at 3300 MW, which puts us in a position to reach our 5000 MW goal, one or two years ahead of the 2025 target.

We also have a robust project pipeline in the Philippines and around the region, totaling 18,000 worth of renewables projects in various stages of development. And as our Chairman mentioned, we have raised significant capital totaling around 48 bn pesos in 2021 to help enable and convert the renewables pipeline into actual operating projects.

Given our strong growth momentum, the company is beginning to look ahead to 2030, and we will soon firm up our 2030 vision and strategy. We expect to commit to and communicate our 2030 vision later this year.

Meanwhile, we shall continue to build on our key strategies that include

(#1) expanding geographic footprint

(#2) investing in new technologies

(#3) leveraging strategic partnerships

In terms of geographic expansion, the Philippines remains our core market, accounting for 40% of our installed capacity. The market is currently experiencing a tight supply situation as demand has surpassed pre-pandemic levels. In 2021, the electricity spot market price reached a ten-year high of P4.82 per kWh. ACEN is actively building renewables capacity to address the supply needs. The company started the construction of over 500 MW worth of projects in 2021, including the 283 MW San Marcelino solar farm in Zambales and the 160 MW Pagudpud wind farm in Ilocos Norte. Both projects will be the country’s largest solar and wind farms once operational in 2023.

The company continues to expand around the region. We reached 1000 MW of attributable capacity in Vietnam, with the recent completion of several wind farms worth 360 MW of attributable capacity and the recent acquisition of a 49% stake in Super Energy’s 837 MW solar platform in Vietnam.

The company is also currently constructing the 520 MWp New England solar farm, which will be the largest solar farm in Australia and the 420 MWp solar farm in India.

We expect to continue our expansion in these markets and add new ones over time.

The company is also beginning to diversify into new technologies.

To unlock the potential of our core solar and wind projects, we will be complementing these with battery storage to help manage the intermittency. In 2021, we started the operations of our first battery storage project, the 40 MW Alaminos energy storage project that complements the 120 MW solar plant. We also started the construction of a 15 MWh battery storage project in Vietnam. This is a pilot utility-scale project supported by the US government.

The company is also beginning to develop projects that involve new technologies such as floating solar and offshore wind. We believe that these technologies will become more competitive over time and provide alternative sites for geographies with land challenges.

As we aggressively roll out our renewable investments, the company shall continue to work with strategic partners to accelerate our growth. In 2021, we signed a partnership agreement with Nefin, a regional platform focused on distributed generation with an active presence in Southeast Asia and North Asia. We also recently signed cooperation agreements with IBVogt, a German-based global renewable developer, and Super Energy, a regional renewable developer based in Thailand. Our cooperation with IB Vogt will focus on solar projects across the Asia Pacific, while our collaboration with Super will focus on solar projects in Southeast Asia, particularly in the Greater Mekong area.

We have also decided to consolidate and integrate some of our partnerships into the broader ACEN platform. In December 2021, we signed agreements with our long-time partner UPC to consolidate their respective interests in Australia and the Philippines into ACEN while providing them direct ownership in ACEN. We also made a similar approach with our partners in Northwind.

These recent developments strengthen both ACEN’s organic development and operating capabilities and our partner network across the region.

Together with its growing pipeline and robust balance sheet, ACEN is well-positioned to accelerate its renewables expansion — especially amidst the ongoing energy crisis brought about by global supply issues and the Russia Ukraine conflict.

On behalf of the company’s board and management, I would like to thank the entire ACEN team for the unparalleled commitment and solid results delivered under highly challenging circumstances.

Thank you to our shareholders for the continuing trust and support.

We are all very excited to continue this journey as we strive to become the largest renewables platform in Southeast Asia.

Thank you.


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