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. S February 2018 Date of Report (Date of earliest event reported) 2 AMPY cone 3. _000-768-480-000 SEC Identification Number “BIR Tax ident
Slide 3: Analyst briefing, 6 February 2018
6 February 2018 The Globe Tower BGC
Slide 4: Performance highlights: Solid FY17 revenues and EBITDA
Performance highlights: Solid FY17 revenues and EBITDA on the continued strength of data services and active cost management 12M17 4Q17 SERVICE REVENUES SERVICE REVENUES +6% YoY 127.9 • Strong revenues again powered by data services +5% vs. 4Q16 32.8 PHP BILLION PHP BILLION EBITDA EBITDA +7% YoY 53.
Slide 5: Revenue growth led by mobile and home broadband
Revenue growth led by strong full year performance of mobile, and home broadband, complemented by the sustained performance of corporate data MOBILE HOME BROADBAND CORPORATE DATA FIXED LINE VOICE TOTAL 12M17 vs. 12M16 +7% +7% +4% -8% +6% 4Q17 vs. 4Q16 +7% +4% +4% -16% +5% MOBILE SUBSCRIBERS* BROADBA
Slide 6: Data-related revenues grew to ~Php69bn
Data-related revenues grew to ~Php69bn, up 16% YoY and now comprises 54% of total service revenues in 2017 * Normalized Mobile Data Revenues growth after adjusting for the impact of the Free +30%* Facebook promotion 600 43.1B PB 35.0B 15.6B 56% 14.7B 54% 361 9.9B 10.3B 49% PB 48% +23% +7% +4% +5 +8
Slide 7: New products and services launched for Filipino digital lifestyle
New products and services launched to enable the Filipino digital lifestyle Globe myBusiness now offers GoWiFi now available in 34 New Globe at Home Go Unli KonsultaMD, AdSpark’s DigiAds SM malls nationwide Plans and Mynt’s Fuse Loans as part of its solutions portfolio Rollout of GCash QR Scan-to-Pa
Slide 8: Financial Highlights
_ - WONDERFUL. “CREATE Peas ~. ae
Slide 9: Solid results in line with FY2017 guidance
Solid results, with revenue growth and EBITDA margin in line with FY2017 guidance YoY SMC Mynt 12M17 YoY QoQ 12M17 12M16 % Impact Impact normalized % 4Q17 3Q17 % Gross Service Revenues 127,906 120,588 6% 127,906 6% 32,767 32,238 2% OPEX and Subsidy (74,580) (70,610) 6% (74,580) 6% (20,065) (18,873)
Slide 10: Higher full year EBITDA driven by increased revenues
Higher full year EBITDA level driven by increased revenues, despite higher operating expenses 1,771 2,128 7,318 378 2,280 In Php Mn 1,711 +7% YoY 49,978 53,326 2016 EBITDA Inc. in Dec. in Inc. in Staff Dec. in Inc. in Network Inc. in 2017 EBITDA Revenues Interconnect Costs Marketing & Costs Provisio
Slide 11: Reported NIAT decreased by 5%
Reported NIAT decreased by 5%, due to increases in depreciation and taxes; on a normalized basis, NIAT also decreased by 13% In Php Mn -13% 3,348 3,664 16,856 968 80 408 1,333 1,794 14,623 YoY 15,888 -5% 15,084 2016 SMC Impact 2016 Reported Change in Inc. in Inc. in Non- Inc. in Tax 2017 Reported SM
Slide 12: Capex for FY17 at PHP42.5B
Capex for FY17 at PHP42.5B or USD844M*, with 82% allocated for data-related requirements CAPEX BREAKDOWN (in Php) 4Q17 ROLLOUT UPDATE +595 36.7B 42.5B 9% 32.1B 10% 2% 7% 8% 14% LTE SITES 11% +175K 30% 21.2B 10% 15% 27% 65% 82% HOME BROADBAND 15% SUBSCRIBER LINES* 48% 49% * Composed of wired and wire
Slide 13: Key gearing ratios remain within covenant levels
Key gearing ratios remain within covenant levels Gross Debt Gross D/E Gross Debt/EBITDA PHP 131.5 1.98x Covenant = 2.5:1 2.43x Covenant = 3:1 BILLION 1Q18 DIVIDENDS RECORD DATE: 22.75 February 20, 2018 PHP PER SHARE PAYMENT DATE: March 5, 2018 11
Slide 14: 2018 Consolidated Outlook
2018 Consolidated Outlook Revenues EBITDA Margin CAPEX Gearing Up by Capex cashflow Remain under Maintained at low single digit ~US$850M covenant from 2017 level ~40% majority for data levels Cost Considerations Increased interest expenses from additional debt to satisfy cash requirement for the sus
Slide 15: Create.Wonderful.
CREATE.WONDERFUL. aS «Yo Globe Lol
Slide 16: Historical Consolidated Gross / Net Service Revenues and EBITDA Margin
Appendix 1 Historical Consolidated Gross / Net Service Revenues and EBITDA Margin 2015 2016 2017 (In Million Pesos) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q CONSOLIDATED SERVICE REVENUES Mobile 21,635 22,826 23,052 23,730 23,148 22,778 22,577 23,752 23,799 24,520 24,794 25,370 Mobile Voice 9,191 9,556 9,
Slide 17: Mobile Subscribers, Net Adds, Churn Rates and Gross ARPUs
Appendix 2 Mobile Subscribers, Net Adds, Churn Rates and Gross ARPUs 2015 2016 2017 Subscribers 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Globe Postpaid 2,458,045 2,517,215 2,561,290 2,597,027 2,564,148 2,521,218 2,508,800 2,489,719 2,467,069 2,460,671 2,473,374 2,484,788 Globe Prepaid 22,214,373 23,287,0
Slide 18: Reconciliation of Net Income to Core Net Income
Appendix 3 Reconciliation of Net Income to Core Net Income (in Million Pesos) 4Q17 4Q16 % Change 3Q17 % Change Reported Net Income After Tax 2,104 4,173 -50% 4,893 -57% Deferred Tax on Unexercised 31 47 -33% 26 20% Stock Options Add (deduct) Forex loss (gain) (117) 9 -1391% 155 -176% Other Adjustmen