Slide 1: SEC Cover Sheet
COVER SHEET [e]w]ofo fo Jo 1 | |7 [7 Lslefofste] [fet felefofm] J Tedfe] J TT | (Company's Ful | Name) T O|WIE |R N elr| [z[ tf A) V/ E] N/ USE Blolnli lelale li Jo [ef eo] slay e] [ef fry] tlals[u]i [cl ROSEMARIE MANIEGO-EALA Dept. Requiring this Doc. (Business Address: No. Street City / Town / Pro
Slide 2: SEC Form 17-C Current Report
SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17(a)-1(b)(3) THEREUNDER 1. _4May 2018 Date of Report ‘(Date ‘of earliest event ‘Teported) 2. ANT? cue 8 ,000-768-480-000. SEC Identification Number 4. GLOBE TELECOM
Slide 3: 1Q18 Analysts' Briefing
1Q18 Analysts’ Briefing 7 May 2018 | The Globe Tower BGC
Slide 4: 1Q18 Performance: Record results on strong demand for data and larger subscriber base
1Q18 Performance: Record results on strong demand for data and larger subscriber base Pre-PFRS Post-PFRS Service Revenues YoY Service Revenues 33.6 33.2 • Momentum continues with data-related services +8% representing 58% of total service revenues EBITDA EBITDA 15.8 +18% 16.1 • Increase in EBITDA du
Slide 5: Broad-based revenue growth as market continues shift towards data
Broad-based revenue growth as market continues shift towards data Mobile* Home Corporate Fixed Line Total* Broadband* Data* Voice* Δ1Q17 +9% +11% +4% -18% +8% Mobile Subscribers Home Broadband Subscribers 58.6 million +8% 63.3 million 1.19 million +17% 1.40 million 1Q17 1Q18 1Q17 1Q18 Postpaid Prepa
Slide 6: Data-related businesses now account for 58% of total service revenues
Data-related businesses now account for 58% of total service revenues Mobile Data* Home Broadband* Corporate Data* In Php Billions In Php Billions In Php Billions 12.6 4.3 2.6 +26% +11% +4% Total Data Revenues as a Percentage of Mobile Data Users as a % of Total Service Revenues* Mobile Subscribers
Slide 7: New products, partnerships and devices geared for the Filipino digital lifestyle
New products, partnerships and devices geared for the Filipino digital lifestyle Globe Gaming launched in GCash and Alipay jointly Discover new journeys with partnership with Mineski, Riot launch new GCash QR Code the Samsung Galaxy S9 and Games, and Garena for esports S9+ powered by ThePLAN Rollout
Slide 8: A look back at our Consolidated Outlook for 2018
A look back at our Consolidated Outlook for 2018 Original Revised Revenues Revenues Up by upgrade to Up by low single digit mid single digit from 2017 level from 2017 level EBITDA Margin EBITDA Margin Maintained at upgrade to Increase to ~40% ~mid 40% • All other original guidance items pertaining t
Slide 9: Financial Highlights
Financial Highlights
Slide 10: Consolidated Financial Highlights: Revenue growth of 8% led to 18% increase in NIAT
Consolidated Financial Highlights: Revenue growth of 8%, combined with lower subsidies, depreciation, and non-operating charges led to an 18% increase in NIAT 3M18 3M18 3M17 YoY% 4Q17 QoQ% (Pre-PFRS) (Post-PFRS) Gross Service Revenues 33,638 31,122 8% 32,767 3% 33,178 OPEX and Subsidy (17,878) (17,8
Slide 11: Changes in Accounting Rules for 2018
Changes in Accounting Rules for 2018 Item PFRS 9 PFRS 15 Effect Explanation Service Revenues Decrease in overall service revenues • Mobile • Decrease in service revenues due to re-allocation as non- service revenues • Mobile ARPUs will decrease in line with service revenues • Broadband /
Slide 12: EBITDA growth of 18% driven by revenue increase and lower costs
EBITDA growth of 18% driven by the increase in revenues and decreases in interconnect, staffing, and subsidies, partly negated by increased network costs and provisions, services and other opex 2,516 257 136 402 567 300 YoY 13,316 +18% 15,760 Pre-PFRS (in Php Mn) 3M17 EBITDA Inc. in Dec. in Dec. in
Slide 13: Gain in EBITDA tempered by higher depreciation, resulting in 18% net income increase
Gain in EBITDA tempered by higher depreciation, non-operating charges and taxes, resulting in 18% increase in net income. 2,444 848 433 468 3,761 4,456 YoY +18% Pre-PFRS (in Php Mn) 3M17 Reported Change in EBITDA Inc. in Inc. in Non- Inc. in Tax 3M18 Reported Net Income Depreciation operating Net In
Slide 14: Capital expenditures at approximately Php6.6 billion, with 64% related to data
Capital expenditures at approximately Php6.6 billion or USD127 million*, with 64% related to data requirements CAPEX BREAKDOWN In Php Bn 42.5 1Q18 Rollout Update 36.7 9% +508 32.1 10% 20% 2% 8% 7% 14% 14% 30% 11% 64% LTE SITES 2% +59K 15% 82% 65% 6.6 48% HOME BROADBAND SUBSCRIBER LINES* 2015 2016 20
Slide 15: Debt levels remain within covenant ratios
Debt levels remain within covenant ratios YTD March YTD Dec Cash Dividends 2018* 2017 Rate per Common Gross debt (in Php Bn) 127.9 131.5 Share Gross Debt-to-Equity 1.96x 1.98x Gross Debt-to-EBITDA Debt Service Coverage Ratio 2.25x 3.09x 2.43x 3.38x 22 .75 /sh • The financial tests under Globe’s loan
Slide 16: Globe will divest all or part of its tower assets
Globe will divest all or part of its tower assets • UBS appointed as Financial Adviser in project’s preparatory phase • Towers to be open for lease to potential new and existing players. • In support of the government’s initiative to open the telco industry to more competition • To speed up the buil
Slide 17: CREATE.WONDERFUL.
CREATE.WONDERFUL. aS «Yo Globe Lol
Slide 18: Beginning 1Q18, Globe's reporting will incorporate PFRS 9 and PFRS 15
Beginning 1Q18, Globe’s financial reporting will incorporate Philippine Financial Reporting Standard (PFRS) 9, Financial Instruments: Recognition and Measurement, and PFRS 15, Revenue from Contracts with Customers PFRS 9, Financial Instruments: PFRS 15, Revenue from Contracts Recognition and Measure
Slide 19: Effects of PFRS 9 and 15 on prior year booked to Retained Earnings
With Globe’s adoption of the modified retrospective approach, the effects of PFRS 9 and 15 on prior year will be booked to Retained Earnings in the Balance Sheet PFRS 15 and 9 Adjustments to Retained Earnings In Php Mns Retained Earnings, 12/31/2017 21,708 Add (Deduct) the following: Effect of PFRS