News and Events

MNTC

The Company

Default Title.

News & Events

MNTC's 3rd quarter earnings up 6.3%

•    Average Daily Traffic Up by 6% to 181,448 vehicle entries

•    3Q Core Income Up by 6% to  1.84Bin

•    3Q Net Toll Revenues Up By 4% to  5.47Bin

MANILA,Philippines,November 07, 2014- Manila North Tollways Corporation ("MNTC" or the "Company") sustained moderate earnings growth in the 3rd quarter of the year as it posted net income of  1.82 billion, up by 6% over the  1.71billion posted during the same period last year.  This can be attributed to the historic high traffic  volume seen this year, propped up by strong vehicle sales, stable fuel prices, and the rapid development around the NLEX service area.

Resilient Traffic Growth and Rising Non-Toll Revenues

Amidst  a 3rd quarter  marked  by unique  operational challenges, MNTC continued to generate steady traffic  growth  as average daily vehicle entries (11ADVE") for the first nine months of 2014 grew by 6% to 181,448 ADVE versus the 170,584 ADVE recorded  during the same period  last year.  The Company is poised to set new record-high annual traffic volume  for  the  3rd straight  year after  ending  the  lean season within  the  range of  the expected slowdown in traffic  growth during the 3rd quarter.

Net toll revenues for the year grew by 4% to  5.47 billion versus the same period last year due to the higher traffic volume  recorded  during the past nine months. Class 1vehicles remained  the biggest contributor to revenues and highest growing segment of the NLEX motorists,accounting for half ofYTD revenues and recording a 6.8% YTD revenue growth.

MNTC  continued   to   strengthen   revenues  from   non-toll operations, comprising of advertising  revenues and toll  service facility  fees. Total non-toll revenues increased by 55% to Php89 million  as of end September 30, 2014, above by more than Php32 million over same period last year.

Core Income for the year stood at  1.84 billion, which was higher by 6% versus the same period last year, was driven by higher revenues and prudent cost management this year.

On September 30, 2014, MNTC filed a petition with the Toll Regulatory Board (TRB) for the bi-annual toll rate adjustment that  will fall due on January 1, 2015 as provided in its concession. This petition is in addition  to the pending petition filed by the Company in

2012 for  the  toll  rate  adjustment scheduled on January 1,  2013. The current  petition would bring the cumulative toll rate adjustment to 15%, of which 12% is long overdue.

Update on Expansion Projects

MNTC is in the final stages of construction of Segment 9 of the NLEX Harbor Link Project which is slated to open to commercial  traffic  by the first quarter  of 2015. This segment features  a 2.4-kilometer, four-lane   at-grade  expressway  that  spans from  the  Smart Connect  Interchange   to  MacArthur  Highway  in  Valenzuela  City.  Upon  completion, motorists will be able to reach Mindanao Avenue in Quezon City within minutes  from MacArthur Highway in Valenzuela City and vice versa, bypassing EDSA altogether.

Pre-construction activities for the elevated portion ofthe NLEX Harbor Link Project known as Segment 10 are progressing after the  issuance of the notice  to proceed  to the  civil works contractor last May 2014. This 5.6-km,four-lane elevated expressway will run from the terminal of Segment 9 in Valenzuela City and go south to C-3 Road/5th Avenue in Caloocan City above the alignment ofthe PNR railway tracks. The Harbor Link Project will significantly reduce traveltime to and from the North Harbor by more than half,providing truckers a viable alternative route to the Manila Port Area.

MNTC awaits the Government's confirmation ofthe implementation mode for the NLEX­ SLEX Connector Project which aims to complement the Harbor Link Project by providing a seamless interconnection of the  NLEX and SLEX and unrestricted traffic  flow  for cargo trucks from the ports towards the north and south of Metro Manila. While MNTC's parent company, Metro Pacific Tollways  Development Corp. {MPTDC), continued  discussions with  DPWH as the  Original  Proponent  under  the  BOT Law, it was  advised that  the Government  intends to clarify the legal framework  to implement the project  under the existing joint venture  mode. In a letter  to the DOTC and DPWH dated October 29, 2014, MNTC and MPTDC expressed their preference to implement the Project as a joint venture through an amendment or extension ofthe NLEX STOA under PD 1894 following the NEDA Board approval via ad referendum dated September 2011.

Forward Looking Statements

This press release  may contain  "forward-looking statements" which  are subject  to  a number  of risks and uncertainties that  could affect MNTC's business and results of operations. Although  MNTC believes that expectations  reflected  in any forward-looking statements  are reasonable, it can give no guarantee  of future  performance, action or events.