Globe Telecom Inc. · PSE:GLO
Globe Telecom — Investor Day (March 2013)
30 slides from Globe Telecom's investor day presentation, Mar 15, 2013
Slide 1: SGX Announcement: SingTel Investor Day 2013 - Globe
MISCELLANEOUS Page 1 of 1 Print this page Miscellaneous * Asterisks denote mandatory information Name of Announcer * SINGTEL Company Registration No. 199201624D Announcement submitted on behalf of SINGTEL Announcement is submitted with SINGTEL respect to * Announcement is submitted by * Chan Su Shan
Slide 2: Globe Telecom, Inc. - SingTel Investor Day
GLOBE TELECOM, INC. SingTel Investor Day 15 March 2013
Slide 3: Globe Telecom at a Glance
Globe Telecom at a Glance GENERAL CAPITALIZATION • Major Philippine telecom service provider with over • Common shares are listed in the Philippine Stock 33.1 million mobile, 1.7 million broadband and Exchange with market cap of USD3.5 Billion 0.7 million landline subscribers • Principal shareholder
Slide 4: Network Modernization
maintain current growth momentum Network Modernization: We are modernizing and future-proofing our network to be ready for a world built around data • Increase data and voice capacity by 10x and 3x, respectively, to manage the anticipated data bandwidth explosion • Increase fiberization of base stat
Slide 5: IT Transformation
maintain current growth momentum IT Transformation: We are likewise investing in our IT systems that will enable us to provide a differentiated customer experience • Better understanding of customer behavior in order to create a seamless customer service experience (single customer view and better c
Slide 6: Investing in our subscribers to seed future growth
maintain current growth momentum As for our greatest asset, we will continue to invest in our subscribers to seed our future growth Mobile Postpaid Stores Transformation P22.8B 34% 24% 2012 Mobile Revenue Revenues Revenue Growth Share Y/Y Handset Subsidies Customizable Plans/Offers Rewards Programs
Slide 7: Investments as building blocks for a data-centric world
maintain current growth momentum These investments are building blocks to ensure continued growth and relevance in a world built around data (vis-à-vis traditional mobile devices) Anticipated surge in data traffic Enriching the mobile ecosystem via 17% 38% 21% Smartphone Feature Phone Browsing Portf
Slide 8: Bayantel Opportunity and Mobile Adjacencies
maintain current growth momentum These investments are building blocks to ensure continued growth and relevance in a world built around data (vis-à-vis traditional mobile devices) Bayantel Opportunity Mobile Adjacencies/Opportunities GCash (mobile money) Joint use agreement for Bayantel’s 1800 MHz f
Slide 9: 2012 Financial Highlights
2012 Financial Highlights: Despite the “transition period’ and intense industry competition, we have sustained our growth in revenues, even reaching record-highs, and maintained attractive dividend yields New record highs for both annual and quarterly Service Revenues Php82,742 (4Q12) service reve
Slide 10: Service Revenues by Product Category
Revenue momentum sustained despite capacity constraints, heightened competition and negative currency impact Service Revenues by Product Category Quarterly Service Revenues (in Php Mn) +16% +7% +10% +6% YoY Change +6% +4% 21,418 (9%) Consolidated Mobile Broadband Fixed Line 20,557 Data New Fixed Lin
Slide 11: Mobile: Record 4Q12 revenues
Mobile: Record 4Q12 revenues driven by the strong growth of postpaid segment. Total subscriber base up 10% YoY and 3% QoQ, led by TM. Total Mobile Subscribers Mobile Revenues (in ‘000) (In Php Mn) FY 2012 YoY 4Q12 QoQ Change +10% 33,119 Change 32,055 31,726 Postpaid 22,847 24% 6,163 7% 31,025 30,
Slide 12: Mobile Postpaid: Reinvesting in subscriber acquisitions
Mobile Postpaid: Reinvesting part of strong revenue growth to support more subscriber acquisitions Postpaid Revenues Postpaid Subsidy & Marketing 4.3Bn 22.8 18.5 3.1Bn Other Mktg Recontracting Subsidy 2011 2012 2011 2012 * Subsidy, recontracting and other marketing expenses for mobile postpaid only
Slide 13: Broadband revenues and subscriber growth
Broadband: Revenues and subscriber base grew by 16% and 18% YoY, respectively. Broadband contributed 11% of total revenues, up from 10% in 2011. Revenue Growth – YoY 2012 Revenue Mix (in Php Mn) Broadband 11% +16% (2011 = 10%) 8,721 7,496 Fixed Line Data & Voice 8% (2011 = 8%) Mobile 81% (2011 = 82%
Slide 14: Consolidated Financial Highlights
Consolidated Financial Highlights Y/Y Q/Q In Php Mn 2012 2011 Change 4Q12 3Q12 Change Service Revenues 82,742 77,765 6% 21,418 20,557 4% OPEX & Subsidy 47,731 42,661 12% 13,563 11,080 22% EBITDA 35,011 35,104 0% 7,855 9,477 -17% EBITDA Margin 42% 45% 37% 46% Depreciation 23,584 18,941 25% 7,342 6,45
Slide 15: Capex, shareholder returns and leverage
Globe’s network modernization program ably supported by the capital markets. Shareholder returns sustained at competitive levels. Capex (In Php Mn) 34% 32% 27% 22% 24,702 8,558 19,467 17,417 18,252 2009 2010 2011 2012 Capex to Revenue Ratio BAU Capex Transformation CAPEX GLO Dividend Yield Debt to E
Slide 16: 2013 Consolidated Outlook
2013 Consolidated Outlook Service Revenues • Revenues up by mid single digit from 2012 level • One-time transition costs of US$17 Million related to transformation initiatives – for training, manpower, professional fees, logistics • Total depreciation of about Php25 – 26 Billion, inclusive of accele
Slide 17: Appendix
Appendix
Slide 18: Historical Consolidated Gross/Net Revenues and EBITDA Margin
Appendix 1 Historical Consolidated Gross/Net Revenues and EBITDA Margin (restated) 2009 2010 2011 2012 (in million pesos) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Consolidated Gross Service Revenues* Mobile 16,347 16,225 15,315 15,392 14,853 14,983 14,341 16,153 15,627 15,763 15,665 16,483 16
Slide 19: Historical Wireless Gross and EBITDA Margin
Appendix 2 Historical Wireless Gross and EBITDA Margin (restated) 2009 2010 2011 2012 (in million pesos) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Wireless Gross Service Revenues* Mobile 16,347 16,225 15,315 15,392 14,853 14,983 14,341 16,153 15,627 15,763 15,665 16,483 16,571 16,710 16,577 17
Slide 20: Historical Fixed Line and Broadband Revenues and EBITDA Margin
Appendix 3 Historical Fixed Line and Broadband Gross Revenues and EBITDA Margin (restated) 2009 2010 2011 2012 (in million pesos) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Fixed Line and Broadband Broadband 638 724 864 1,063 1,174 1,399 1,531 1,645 1,788 1,861 1,908 1,940 2,017 2,089 2,243 2,3
Slide 21: Net Income and Core Net Income
Appendix 4 Net Income and Core Net Income In Php Mn (after tax) 2012 2011 % Change 4Q12 3Q12 % Change Reported Net Income 6,857 9,832 (30%) 49 1,843 (97%) Foreign exchange & mark-to- market (gains)/losses (172) 198 (187%) (24) (27) (7%) Depreciation affected by network modernization 3590 0 1478 1288
Slide 22: Globe Mobile and Broadband Subscribers
Appendix 5 Globe Mobile and Broadband Subscribers 2009 2010 2011 2012 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cumulative Mobile Subscribers Postpaid 851,368 880,491 909,466 982,878 1,066,137 1,146,738 1,251,832 1,368,417 1,454,706 1,540,281 1,599,603 1,662,753 1,734,468 Prepaid 22,393,638 23,009,215
Slide 23: Mobile Gross ARPUs by Brand and Dividend Payout
Appendix 6 Globe Mobile Gross ARPUs by brand 2009 2010 2011 2012 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gross ARPU Postpaid 1,799 1,723 1,755 1,577 1,580 1,358 1,253 1,170 1,152 1,162 1,205 1,173 1,208 GHP Prepaid 225 219 203 196 217 179 174 165 166 156 146 148 148 TM 133 120 124 115 124 102 101 98
Slide 24: Globe O/S Debt Maturity Schedule
Appendix 7 GLOBE O/S DEBT MATURITY SCHEDULE AS OF END DECEMBER 2012 in million US Dollars 350 300 287 250 207 200 164 150 122 100 50 - 2013 2014 2015 2016 - 2022 (Yearly Average)
Slide 25: Create your perfect plan in four easy steps
Appendix 8 Create your perfect plan with in four easy steps
Slide 26: Sample plan build for iPhone 5
Sample plan build for iPhone 5 Consumable Plan999 with 3 freebies from A-E Monthly Service Fee of: Plan P999 2 As + 1 B (Free Call & Text to Globe/TM and to other networks) + Boosters: Powersurf 99 = Add 50MB Mobile Internet P1,098 (Powersurf) Plus cash-out of P19,200 Get an iPhone 5 16GB with requi
Slide 27: Go play and make your own promo
Appendix 9 GO PLAY AND MAKE YOUR OWN PROMO!
Slide 28: Network Modernization and IT Transformation Program
Appendix 10 Network Modernization and IT Transformation Program Network Modernization IT Transformation Capex of USD700M over next 5 years, with Capex of USD90M over next 5 years, with USD570 to be spent in 2012 and 2013 USD70 to be spent in 2012 and 2013 Enables faster response to customer requests
Slide 29: Thank you
Thank you. For smartphone and tablet users: just scan this QR-code for Globe IR’s briefing presentations webpage
Slide 30: Disclaimer
Disclaimer This presentation has been written and presented by Globe Telecom. Globe Telecom is solely responsible for the accuracy and completeness of the contents of such presentation. SingTel does not have any responsibility for or control over the contents of such presentation. No endorsement is