PLDT, Inc. · PSE:TEL
PLDT — Philippine Long Distance Telephone Company — H1 2006 Earnings Presentation
16 slides from PLDT's earnings presentation, Aug 8, 2006
Slide 1: First Half 2006 Financial and Operating Results
Philippine Long Distance Telephone Company First Half 2006 Financial and Operating Results 8 August 2006 1HO6: Financial Highlights 1H05 1H06 % Y-0-Y Service Revenues P59.5bn P60.6bn Mi 2% EBITDA P37.9bn P40.4bn BD 7% Core Net Income P13.7bn P15.2bn “MT 11% Core EPS P75.85 Ps2.48 BM 9% Reported Net
Slide 2: Core net income
Core net income (billion pesos) aa] 1HO5 1HO6 Net income (in billions) 1HO5 1HO6 b% Reported Net Income 16.5 1523 -7% Adjustments: Additional depreciation - 39 FX/derivative loss (gain) (2.2) 0.2 -110% Deferred tax assets and tax impact (0.7) (4.2) 528% Core net income 13.7 15.2 11% Bess Preferred d
Slide 3: Voice and Data Revenues, Broadband Subscribers, Capital Expenditures
Consolidated Voice and Data Number of Broadband Subscribers Revenues (billion pesos) (1,000) 174 u \Vireless Data & ICT) Fixed 140 ™ _ 68 no Voice 2) v 5% 1HO5 1HO6 1005 2005 3005 4Q05 1006 2006 (2) Wocines ana ais leo Lo wel MD aerien eran © PLOT sx Pages Consolidated Capital Expenditures Allocatio
Slide 4: Estimated Cash Flow Utilization and Debt Reduction
Fige C Astin lew Estimated Cash Flow Utilization (billion pesos) so Bs Investments #US$200 37.3 Common Mira 20% — million Dividends #US$350 22.6 million 17.4 Debt reduction wUS$350 2003 2004 2005 41HO6 million © PLDT sx Reel Consolidated Debt Balance and Consolidated Debt Reduction (million US$) Lev
Slide 5: SMART: Upholding Market Leadership
SMART: Upholding Market Leadership Smart and TNT added approximately 850,000 and 700,000 cellular subscribers in 2Q06 resulting in a total combined subscriber base of about 22.5 million as of end-June 06 Service revenues grew 6% y-o-y to P38.6 billion in 1H06 mainly driven by the continued 1H06 whil
Slide 6: Prepaid and Postpaid ARPU; Fixed Line Service Revenues
Prepaid and Postpaid ARPU (Pesos) Blended ARPU (Net) and SACs (P Postpaid Prepaid ARPU (Net) —a— Smart prepaid (net) = TEBE Prepaid SACs 1,389 1,467 1386 1,414 482 1,257 1e0F —— _ ; aes 324 289 71 289 294 285 308 294 294 112 ae 20 212,~— tea. 20 Tn 1Q05 2Q05 3005 4005 1006 2006 2004 2005 4HO6 OPLoT
Slide 7: Case Study: NGN upgrade of Pasay and Calauan Exchanges
Case Study: NGN upgrade of Pasay Exchange Current Network Features: » Services 21,000 lines with capacity of up to 30,000 lines >» Services 2,000 DSL subscribers with capacity of up to 2,200 ports >» Houses PSTN equipment (EWSD, DLC and DSL switches) occupying 150 m? NGN Network Features: >» NGN wil
Slide 8: Calauan RSU; ePLDT: Moving to the Forefront
Calauan RSU _4125 __ Lot for Disposal = 836.20 m? NGN upgrade has resulted in: 40% reduction in power consumption and lower insurance costs Frees up excess property for disposal LAWN ] } | | Ls} YiGy : Ga) i * | . L =.) J ah 7) a, ce oe sue Ly oe) 45.22 | Area for retention = Equipment Vans schedule
Slide 9: ePLDT Ventus and SPi Revenues and Seats
ePLDT Ventus Revenues (million pesos) ePLDT Ventus: Revenue Mix by and Call Center Seats Industry 674 IT and 583 563 Telecoms 525 " 32% 408 428 i BB Fs §.. Consumer . , Goods Entertainment Fin. Services, Hotel & 1005 2005 3005 4005 1006 2Q06 Gov't Call Center Revenues —«— Call Center Seats ~$ OPLor
Slide 10: 2006 Outlook
2006 Outlook — Enhance shareholder returns through dividend payments representing 60% of 2006 core earnings — Diversify revenue streams by investing in new growth areas * 2006 is a year to lay the foundation for earnings growth in 2007 onwards: — Expand coverage and enhance broadband and data capabi
Slide 11: Forward-looking Statements; Appendix
! 10 foo) Any. d-looking @ guara: of future performance and involves a number of known and unknown tisks, uncertainties and other factors that could cause the actual performance, financial condition or results of operation of PLDT to be materially different from any future performance, financial con
Slide 12: Service Revenues and Operating Expenses by Segment
Fixed line Local exchange Intemational long distance National long distance Data and other network Miscellaneous ICT Inter-segment transaction Total Service Revenues Non-Service Revenues Inter-segment transaction Other Income Inter-segment transaction Total Revenues and Other Income ICT Consolidated
Slide 13: EBITDA Reconciliation and Financing Costs
1H 2006 Consolidated 1H 2005 % Consolidated | Change Income before tax 18,254 295 18,625 22,035 15% Add back: Financing costs 2,264 3,876 6,135 4,824 27% Depreciation 5,195 10,038 15,485 10,861 43% Amortization of intangible assets 137 - 140 139 1% Asset impairment : 4 : EBITDA 25,850 14,209 40,389
Slide 14: Free Cash Flow and Balance Sheet
1H 2006 1H 2005 % Consolidated [Consolidated | Change Net cash from operations 17,227 14,698 33,601 3,151 4% Add(Deduct): Capital expenditures (6,017) 65,849) (12,385) (7,012) 77% Other investing activities (322) Ke] (112) 4,083 -103% Interest, net (155) (3,022) (3,167) (4,79) -34% Dividends from Sm
Slide 15: Earnings Per Share and Interest-bearing Liabilities
Earnings Per Share ‘ommon shares equivalent of preferred shares deemed dill Preferred stock series Ato FF 2 Global depositary Stock Series Ill - Preferred stock series Vil Weighted average number of shares, end 181 612 EPS (based on reported net income) 83.02 83.00 92.44 87.88 Core Net Income 15 207
Slide 16: Quarterly Consolidated Financial Highlights
Quarterly Consolidated Financial Highlights % Change Other Income 133 206 119 72% Other Expenses: Interest on loans and related items 2,080 mote 2,722 -16% FX and derivatives (gain}/loss (1,556) 1,774 1,162 63% Others 476 1,085 661 64% 1,000 5,134 4,545 13% Income before income tax 11,272 tidod 9,32
Philippine Long Distance Telephone Company — H1 2006 Earnings Presentation on 6ix