GLO: Analyst Q1 presentation material

8/17/2019 GLO: Analyst Q1 presentation material

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1Q 2016 Analysts’ Briefing 5 May 2016 | The Globe Tower BGC


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1Q 2016 Performance Highlights (in Php Bn)

• New record quarterly EBITDA• YoY, higher revenues and lower subsidies and interconnect

mitigate higher network expenses• Excluding the impact of Bayan consolidation, EBITDA still i

robustly by 12% YoY to Php12.4Bn

• YoY increase on the back of record EBITDA• On QoQ basis, net income improved 85% against 4Q15

record EBITDA and lower non-operating charges• Core net income at Php4.2Bn, flat against 1Q15

• Growth momentum sustained, driven by mobile data, home band corporate data

• Excluding Bayan revenues, service revenues still up by 9%Php28.5Bn

• Beginning 1Q16, mobile services to include fully-mobile broadbawas previously reported under broadband services

Service Revenues

29.9

YoY

+14%

EBITDA

13.0+18%

Net Income After Tax

+3%4.3Cash Dividend

• Record Date: May 19, 2016

• Payment Date: June 3, 2016• On an annualized basis, represents approximately 77% of 20

Net Income22 .00 /sh +6%


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Mobile: Revenue growth remains robust, driven by increase in prepaid revenu

Mobile Revenues*(in Php Bn)

23.1

Postpaid Revenues*(in Php Bn)

8.5

Prepaid Revenue(in Php Bn)

14.5+7% +3% +9%

•

Mobile services include mobilebroadband, which was previouslyreported under Broadbandservices

** Includes Bayan revenues

83%77%

Total Mobile Revenues as a % ofService Revenues**

1Q16 1Q15


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Broad-based, data-driven revenue growth

Home Broadband**(in Ph Bn)

Mobile Data*(in Ph Bn)

+62%

9.1+51%

3.5

Corporate Data**(in Ph Bn)

+51%

2.3

36%50%

Total Data Revenues as a % ofService Revenues**

1Q16 1Q15• Includes mobile and nomadic browsing,

VAS, GCash and other mobile content** Includes Bayan revenues


8/19

New services, devices and events that deliver uniqucustomer experiences

myLifestyle NoLock-up Plan

myStarter Plan myShare Plan

SamsungGalaxy S7

Globe myBusiness Day 10th Gen3 Store in SM Ma

Globe first to offer Mobile in SEA


9/19

Financial Highlights


10/19

*OPEX & Subsidy includes interconnect charges**Core Net Income excludes forex, mark-to-market gains and losses, and non-recurring items

Consolidated Financial Highlights

Year on Year Globe Group Last Year YoY Change Globe Ex-Bayan YoY Cha

(in Php Mn) 3M16 3M15 vs Globe Group 3M16 vs Globe Ex

Gross Service Revenues 29,867 26,220 14% 28,487 9%

Net Service Revenues 27,590 23,904 15% 26,217 10%

OPEX & Subsidy* (16,838) (15,211) 11% (16,136) 6%

EBITDA 13,029 11,009 18% 12,351 12%

EBITDA Margin 44% 42% 43%

Depreciation (6,215) (4,439) 40% (5,790) 30%

EBIT 6,814 6,570 4% 6,561 0%

Non-Operating Charges (540) (523) 3% (597) 14%

Net Income 4,335 4,203 3% 4,154 -1%

Core Net Income** 4,185 4,182 0% 4,091 -2%


11/19

11,009 11,009 14,656 14,170 14,012 13,514 13,029 13,02

3,647

39 - - -

- -- 525 158 498

485

3M15 EBITDA Inc. in

Revenues

Dec. in

Interconnect

Charges

Inc. in Staff

Costs

Inc. in

Marketing &

Subsidy

Inc. in Network

Costs

Inc. in

Provisions,

Services &

Other OPEX

3M16 EB

+18%

YoY Change in EBITDA(in Php Millions)

Higher revenues offset increases in OPEX mainly on Provisions, Seand other expenses


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CAPEX* (in Php Bn)

* Based on FX rate of Php45.61

Capital expenditures at approximately Php7.1 Billion or USD150 Mwith majority of the investments related to data requirement

29.1

21.2

32.1

7.1

2013 2014 2015 3M16

9% 15% 15% 15% 9%

15% 10% 8%

50% 36%

27% 30%

32% 35%49% 48%

2012 2013 2014 2015

Business Support Others Core Data


13/19

Gross D/E Ratio(Covenant = 2:1)

Gross Debt(in Php Millions)

Gross Debt/EBITDA(Covenant = 3:1)

4.0%*

18.7%

* Based on closing share price of Php2,200 as of April 28, 2

2016 Total Shareholder Ret

Cash Dividend per

Common Share Php 22.00/sh

Record Date May 19, 2016

Payment Date June 3, 2016

2Q16 Dividends

Gross Debt at Php 70.2 Billion, comfortably within covenant rat

65,276

72,22970,219

2014 2015 3M16

1.21.22

1.15

2014 2015 3M16

1.66

1.51 1.41

2014 2015 3M16

Div Yield Share PriceAppreciation


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Q&A


15/19


16/19

Appendix 1Historical Consolidated Gross / Net Service Revenues and EBITDA Mar

Note: Starting 1Q16, Globe mobile revenues include revenues from mobile cellular and fully-mobile broadband. Home broadband would referfixed broadband services, including wired and wireless solutions. All figures above have been restated.

2016

(In Million Pesos) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

Mobile 19,346 20,382 20,874 21,959 21,635 22,826 23,052 2 3,730 2 3,064

Mobile Voice 8,710 8,738 8,530 9,016 9,191 9,557 9,315 9,064 8,181

Mobile SMS 7,044 7,271 7,332 7,675 6,807 6,753 6,645 6,193 5,763

Mobile Data 3,591 4,373 5,012 5,269 5,636 6,515 7,092 8,472 9,120

Fixed Line & Broadband 3,884 4,082 4,132 4,365 4,585 4,785 6,474 6,593 6,803

Home Broadband 1,900 2,024 2,084 2,185 2,300 2,420 3,126 3,474 3,481

Corporate Data 1,319 1,313 1,365 1,483 1,543 1,603 2,349 2,204 2,333

Fixed Line Voice 665 745 683 696 742 762 999 915 989

Total 23,230 24,464 25,006 26,324 26,220 27,610 29,526 30,323 29,867

EBITDA 8,796 10,281 10,681 9,513 11,009 11,645 12,024 11,129 13,029

EBITDA Margin 38% 42% 43% 36% 42% 42% 41% 37% 44%

2016

(In Million Pesos) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

Net Service Revenues 21,173 22,292 23,044 24,086 23,904 25,280 27,293 28,194 27,590

Interconnection Settlement

Costs2,057 2,173 1,962 2,238 2,316 2,330 2,233 2,129 2,277

CONSOLIDATED SERVICE REVENUES

2014 2015

2014 2015


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Appendix 2Restated figures for Subscribers, Net adds, Churn Rate and Gross APRU for the Mobile Seg

2016

Subscribers 1Q 2Q 3Q 4Q 1Q

Globe Postpaid 2,458,045 2,517,215 2,561,290 2,597,027 2,564,148Globe Prepaid 22,214,373 23,287,012 24,391,990 25,915,096 25,452,193

TM 23,745,018 25,195,520 26,130,002 27,670,555 29,249,341

Total 48,417,436 50,999,747 53,083,282 56,182,678 57,265,682

2016

Net Adds 1Q 2Q 3Q 4Q 1Q

Globe Postpaid 9,361 59,170 44,075 35,737 (32,879)

Globe Prepaid 1,071,443 1,072,639 1,104,978 1,523,106 (462,903)

TM 1,248,151 1,450,502 934,482 1,540,553 1,578,786

Total 2,328,955 2,582,311 2,083,535 3,099,396 1,083,004

2016

Churn Rate 1Q 2Q 3Q 4Q 1Q

Globe Postpaid 3.5% 2.9% 3.3% 3.2% 3.7%

Globe Prepaid 5.9% 6.2% 6.1% 5.2% 7.7%

TM 6.7% 6.6% 6.8% 6.1% 6.1%

Blended 6.1% 6.2% 6.3% 5.5% 6.7%

2016

Gross ARPU 1Q 2Q 3Q 4Q 1Q

Globe Postpaid 1,116 1,130 1,088 1,122 1,099

Globe Prepaid 128 130 124 117 116

TM 74 76 73 70 65

Blended 153 154 146 141 135

2015

2015

2015

2015

Note: Starting 1Q16, Globe mobile revenues include revenues from mobile cellular and fully-mobile broadband. Home broadband would referfixed broadband services, including wired and wireless solutions. All figures above have been restated.


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Appendix 3Historical Consolidated Gross / Net Service Revenues and EBITDA Mar

(in Million Pesos) 1Q16 1Q15 % Change 4Q15 % Change

Reported Net Income After Tax 4,335 4,203 3% 2,341 85%

Deferred Tax on Unexercised

Stock Options(28) (32) -13% 54 -152%

Add (deduct) Forex loss (gain) (174) 15 -1234% 125 -240%

Other Adjustments – (includingacc. depreciation)

52 (5) -1234% (101) -152%

Core Net Income 4,185 4,182 0% 2,418 73%


19/19

Appendix 4Consolidated Financial Highlights

*OPEX & Subsidy includes interconnect charges**Core Net Income excludes forex, mark-to-market gains and losses, and non-recurring items

Quarter on Quarter Globe Group Last Quarter QoQ Change Globe Ex-Bayan QoQ Chang

(in Php Mn) 1Q16 4Q15 vs Globe Group 1Q16 vs Globe Ex-Ba

Gross Service Revenues 29,867 30,323 -2% 28,487 -6%

Net Service Revenues 27,590 28,194 -2% 26,217 -7%

OPEX & Subsidy* (16,838) (19,194) -12% (16,136) -16%

EBITDA 13,029 11,129 17% 12,351 11%

EBITDA Margin 44% 37% 43%

Depreciation (6,215) (6,521) -5% (5,790) -11%EBIT 6,814 4,608 48% 6,561 42%

Non-Operating Charges (540) (932) -42% (597) -36%

Net Income 4,335 2,341 85% 4,154 77%

Core Net Income** 4,185 2,418 73% 4,091 69%

GLO: Analyst Q1 presentation material

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