Globe Telecom Inc. · PSE:GLO
Globe Telecom — Q1 2020 Earnings Presentation
17 slides from Globe Telecom's earnings presentation, May 5, 2020
Slide 1: SEC Cover Sheet
COVER SHEET P W 0 0 0 0 1 1 7 7 SHEET G L O B E T E L E C O M , I N C . (Company's Full Name) 2 7 / F T H E G L O B E T O W E R 3 2 N D S T R E E T C O R N E R 7 T H A V E N U E B O N I F A C I O G L O B A L C I T Y T A G U I G (Business Address: No. Street City / Town / Province) ROSEMARIE MANIEGO-
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. 4 May 2020 Date of Report (Date of earliest event reported) 2. 1177 3. 000-768-480-000 SEC Identification Number BIR Tax Identification N
Slide 3: Slide 3
Slide 4: 1Q 2020 Analysts' Briefing
" 14Q.2020 PERFORMANCE 1Q20 vs 1Q19 vs 4Q19 Service Revenue » 30.9 A2% Data-driven revenue growth vV4% EBITDA » 20.5 A3% EBITDA margin at 56% A13% Net Income 6.6 V 2% dectinedby 2eand erespecivey —-: M43% 2Q 2020 Dividends np! 24, 83 RECORD DATE: May 18, 2020 PAYMENT DATE: June 3, 2020 aN 2 Globe
Slide 5: Financial Highlights
Data-driven performance on 26.9 Mobile Revenues o O07 Fixed Line and Home _ Broadband Revenues = YoY A 7% YoY vV15% V28% A12% V2% A11% A4% YoY YoY YoY YoY YoY YoY MOBILE MOBILE MOBILE FIXED LINE HOME CORPORATE VOICE SMS DATA VOICE BROADBAND DATA = Globe 9 ; \ A32% Postpaid 89.3M A T% = Wired 2.3M Yo
Slide 6: 1Q 2020 Performance
Data now accounts for 75% of Service Revenues = Data Revenue = Non-data revenue REVENUES, DD or > 50% Mobile Data| 6, 18.5 412% SERVICE 16% Home Broadband | 5” 5.8 411% 9% Corporate Data on Sed AL% MOBILE DATA TRAFFIC . PB) 522 A 11% 370 YoY A5% QoQ 1019 4Q19 1Q20 MOBILE DATA USERS (in Mn) 39, 6S ¥1
Slide 7: Data-driven performance
How Globe is responding to COVID-19 Stay #SafeAtHome oe Employees, Vendor Partners & Support Staff Customers, Frontliners and the Public * Implemented full work-from-home (WFH) operations with critical skeletal force (CSF) beginning March 16. * Provided PPEs, hazard pay, food allowance, transportati
Slide 8: Data now accounts for 75% of Service Revenues
_ How Globe is responding to COVID-19 |Z) aresrine_ NL aed om =. a eee : For site visit headcounth . |
Slide 9: How Globe is responding to COVID-19
| New Partnerships, Collaborations, and Other Dev : lopmen ts Globe Invests in Cloud Business to Expand ICT Capabilities Globe Appoints Martha Sazon as New Mynt CEO Ccascadeo Mynt¢ GoWiFi and KapitWiFi Powers New Cities and Municipalities San Jose Del Monte, Bulacan Mangaldan, Pangasinan Iloilo City
Slide 10: How Globe is responding to COVID-19
Slide 11: New Partnerships, Collaborations, and Other Developments
1Q 2020 FINANCIAL-PERFORMANCE Gross Service Revenues 36,882 36,003 2% 38,395 -4% OPEX and Subsidy' (16,406) (16,084) 2% (20,220) -19% EBITDA 20,476 19,919 3% 18,175 13% EBITDA Margin 56% 55% 47% Depreciation (8,639) (7,996) 8% (9,145) -6% EBIT 11,836 11,923 -1% 9,030 31% Non-Op Charges (2,200) (2,12
Slide 12: YoY
YoY 771 (in Php Mn) v Vv A 71 187 203 a A3% 20,475 3M19 EBITDA Inc. in Dec. in Inc. in Staff Inc. in Inc. in Dec. in 3M20 EBITDA Revenues Interconnect Costs Marketing & Network Provisions, Charges Subsidy Costs Services & Other OPFX QoQ v a N A v a (in Php Mn) 1,513 863 267 1,209 31 1,505 18,175 A13
Slide 13: 1Q 2020 Financial Performance
~ YoY NIAT decline driven by higher depreciation v YoY 643 (in Php Mn) v A 73 24 6,730 V2% 6,595 3M19 Reported Change in EBITDA Inc. in Depreciation Inc. in Non- Dec. in Tax 3M20 Reported Net Net Income operating expenses Income QoQ A A A v (in Php Mn) 2,301 507 36 848 4,599 A43% > 6,595 4Q19 Net In
Slide 14: EBITDA bridge YoY and QoQ
Others, 5% Core, Business 16% Support, 11% Data, 68% 12
Slide 15: YoY NIAT decline driven by higher depreciation
Gearing: Debt level within covenant ratios 1Q 2020 FY 2019 Cash (in Php Bn) 14.5 8.3 2Q 2020 CASH DIVIDEND Gross Debt (inPhpBn) 144.7. 136.3 24.83 Gross Debt to Equity 1.71x 1.68x (Max of 3:1) RECORD DATE: Net Debt to Equity 1.54x 1.58x May 18, 2020 Gross Debt to EBITDA (Max of 3.5:1) 1.97x 1.86x PA
Slide 16: Gearing: Debt level within covenant ratios
: Preliminary 2Q 2020 Guidance. Q 2Q 2020 Revenue Low double-digit decline vs 1Q 2020 2Q 2020 EBITDA Margin Keep EBITDA margin at low 50s 2Q 2020 Cash CAPEX At least Php 2 billion drop versus 1Q 2020 Other Considerations: Latest government outlook for lower GDP growth and remittances, and temporary
Slide 17: Preliminary 2Q 2020 Guidance