PLDT, Inc. · PSE:TEL

PLDT — FY2016 Earnings Presentation

52 slides from PLDT's earnings presentation, Mar 7, 2017

  1. Slide 1: 2016 Full Year Financial and Operating Results

    PLDT Inc. 2016 Full Year Financial and Operating Results 7th March 2017 1

  2. Slide 2: PLDT Group: FY2016 vs FY2015 Financial Highlights

    PLDT Group: FY2016 vs FY2015 Financial Highlights Conso Service Revenues Wireless Fixed Line Service Revenues* Service Revenues* (net of interconnection costs: P9.6bn) P92.5bn P63.1bn -3% -9% P147.6bn (P5.0bn) (P9.7bn) +7% +P4.3bn Home* Enterprise* Individual* International* Voyager* Conso Service R

  3. Slide 3: PLDT Group: Service Revenues by Business Segment

    PLDT Group: Service Revenues* By Business Segment (Php in billions) Consolidated FY15: P152.6bn FY16: P147.6bn -P5.0bn or -3% +1% -- -- -1% -0.1 -4% -- +0.4 -0.1 -1% 4Q16 vs 4Q15: 38.0 38.0 38.4 38.2 38.2 -0.6 37.6 -1.5 36.1 -0.3 35.8 -6% or -P2.4bn 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Service Re

  4. Slide 4: Consolidated Service Revenues by Business Units

    PLDT Group: Consolidated Service Revenues* By Business Units (Php in billions) Service Revenues (Php in millions) FY15 FY16 Individual 48% 45% -3.5 -0.3 -5.0 Home 17% 20% -27% -3% +2.6 -15% Enterprise 18% 20% +9% 20.5 0.9 147.6 International and Carrier 16% 14% +2.6 Voyager and Others 1% 1% 30.6 +10

  5. Slide 5: Consolidated Service Revenues by Product type

    PLDT Group: Consolidated Service Revenues* By Product type (Php in billions) Lower by P5.0n or 3% Service Revenue Mix FY15 FY16 LEC, mobile Data/Broadband/Digital Platforms 33% 41% Data, broadband International domestic SMS 22% 19% and digital voice and fixed SMS voice and line domestic LEC/Mobile D

  6. Slide 6: PLDT Group: Consolidated EBITDA

    PLDT Group: Consolidated EBITDA (Php in billions) lower by P4.4bn or 6% lower by P4.6bn or 7% Provi- Lower Lower Lower Higher Product sions +6% cash sub- cost of Higher sub- 16.6 -15% +3% svc Provi- (Sun migra- +0.8 sidies content provns -2.5 15.0 +0.5 15.4 rev* opex* sidies sions tion) 14.2 70.2 -5

  7. Slide 7: PLDT Group: Core income

    PLDT Group: Core income (Php in billions) Lower by P7.4bn or 21% Gain on Gain from Acc’d sale sale of Non- EBITDA Depn of SPI assets EBITDA Net cash Provn for Adj’mts* +4.1 -0.4 -8.8 Lower 35.2 -9.1 equity in Fin Misc expenses Inc Taxs +4.6 taxes earnings Costs - Income -2.8 +2.8 27.9 -7.2 -2.3 Net

  8. Slide 8: Capital Management

    Capital Management Core EPS P129 Dividends per share for 2016 P77 Interim regular dividend (August 2016) P49 Final regular dividend (March 2017) P28 Declaration Date 7 March 2017 Record Date 21 March 2017 Payment Date 6 April 2017  In line with PLDT’s dividend policy, P77 or 60% of 2016 core earnin

  9. Slide 9: PLDT Group: Debt Profile

    PLDT Group: Debt Profile  Net debt and net debt to EBITDA as of end December 2016 stood Debt Balance at US$2.9bn and 2.36x (US$ in billions)  Additional debt for acquisition of Vega Tel raised gearing by 0.14x; with bulk of purchase price funded by proceeds from sale of Beacon 3.7  Balance of P6.

  10. Slide 10: PLDT Network: Making great strides

    PLDT Network: Making great strides 2016 Key Accomplishments 2017 Capex  Spectrum refarming (Boracay, Davao, Rizal)  Deployment of G.fast technology to achieve fiber-like speeds over copper  Completed integration of Sun/Smart networks in MM and Cebu  Fiber homes to pass target of 4.4mn homes  Sh

  11. Slide 11: PLDT Group: Capex

    PLDT Group: Capex (Php in billions) Fixed Line Wireless 46.0 43.2 42.8 36.4 34.8 31.2 12.9 10.7 17.2 28.8 13.7 11.7 13.7 11.7 30.3 32.1 28.8 22.1 23.0 17.2 17.1 2011 2012 2013 2014 2015 2016 2017F % of Capex to total service revenues: 21% 23% 18% 21% 26% 27% < 30% Note: BPO capex up to 2012 only  P

  12. Slide 12: Network section

    @PLDT ASmart VOYAGER CELL SITES ACROSS METRO MANILA )

  13. Slide 13: Open Signal: Smart leads in NCR Download Speeds

    Open Signal: Smart leads in NCR Download Speeds 13

  14. Slide 14: Smart Network Improvements for LTE (Data)

    Smart Network Improvements for LTE (Data) NCR Region 14

  15. Slide 15: Smart Network Improvements for 3G (Voice)

    Smart Network Improvements for 3G (Voice) NCR Region 15

  16. Slide 16: Example Rizal: Refarming Delivering Improvements

    Example Rizal: Refarming Delivering Improvements Customer Experience testing after 80% Completion 16

  17. Slide 17: NCR & Cebu: Implementing Significant Capacity Expansion

    NCR & Cebu: Implementing Significant Capacity Expansion 17

  18. Slide 18: Build for the Future

    APLDT @Smart VOYAGER BUILD FOR THE _ FUT’ R ONGOING NETWORK IMPROVEMENT, D<PxD<D< 4 $7 os

  19. Slide 19: Wireline Network Objectives for 2017

    Wireline Network Objectives for 2017  In 2017 we will increase our fixed network rollout to enable the Filipino Gigabit society.  560,000 additional FTTH lines bringing the total installed capacity to 1.1M lines.  Modernization of 1.7M copper ports for speeds up to 100 Mbps using VDSL.  We will

  20. Slide 20: Wireless Objectives for 2017

    Wireless Objectives for 2017  In line with our commitment to the NTC we will grow the number of municipalities with LTE coverage to 785 (of 1551). By YE 2017 about 70% of the population will have access to Smart LTE  Target for 2017 is to rollout:  2,165 sites with LTE in low spectrum bands (LTE

  21. Slide 21: @ PLDT

    @ PLDT V@YAGER

  22. Slide 22: 2020

    @PLDT ASmart VOYAGER 2020

  23. Slide 23: PLDT Group Service Revenue YE December 2016

    PLDT Group Service Revenue YE December 2016 HOME AND ENTERPRISE, OUR FASTEST GROWING WIRELESS 66.4 B SEGMENTS, COMPRISE 47% OF BUSINESS AS OF HOME 29.3 B YE2016 (Net of International), WILL CROSS OVER TO 51% IN 2017, AND FORECASTED TO GROW TO ENTERPRISE 30.6 B APPROXIMATELY 56% BY 2019. INTERNATIONA

  24. Slide 24: Sustained Double Digit Growth in Home

    Sustained Double Digit Growth in Home (FORECAST 27% CONTRIBUTION TO TOTAL GROUP REVENUE BY 2019) HIGH DEMAND FOR HOME STRONG MARKET LEADERSHIP IN BROADBAND OPENING UP VAST 01 02 THE HOME SUPPORTED BY OPPORTUNITIES TO UPSELL LEADING EDGE TECHNOLOGIES DIGITAL CONTENT AND SERVICES Over 3,500 areas nati

  25. Slide 25: High Revenue Growth Rates in Enterprise

    High Revenue Growth Rates in Enterprise (FORECAST 29% CONTRIBUTION TO TOTAL GROUP REVENUE BY 2019) 01 STRENGTHEN OUR 02 INDISPUTABLE MARKET LEADERSHIP IN POSITION AS THE TRUSTED THE ENTERPRISE SPACE ENABLED BY ICT EXPERT PARTNER AND UNPARALLELED INVESTMENTS IN ICT AND ENABLER OF THE DIGITAL INFRASTR

  26. Slide 26: 2017 Wireless Consumer Imperatives

    2017 Wireless Consumer Imperatives A REORGANIZATION STABILIZE AND ARREST Create a Pivotal Streamline Achieve Revenue Maximization NEGATIVE MOMENTUM, AND Strategy Operations and Cost Rationalization QUICKLY ESTABLISH A BASE BY WHICH TO BUILD A NEW NETWORK IMPROVEMENTS GROWTH FOUNDATION B (LTE,WIFI) L

  27. Slide 27: PLDT: Road to recovery

    PLDT: Road to recovery  In 2016, the PLDT Group recognized the need to undertake a “digital pivot” to re-establish undisputed market leadership amidst rapid consumer and technological changes  Consequently, PLDT embarked on a 3-year journey that involved:  Development and execution of a roadmap t

  28. Slide 28: PLDT Group: Guidance for 2017

    PLDT Group: Guidance for 2017 EBITDA: P70bn Capex: P46bn  To grow by P8.8bn from P61.2bn in 2016  Higher by P3.2bn from P42.8bn in 2016  impact of P4.6bn in subsidies and provisions in 2016  Includes carry-over of capex started in 2016 to be completed/accepted which will not recur in 2017 in 201

  29. Slide 29: Other Details

    @PLDT ASmart VOYAGER

  30. Slide 30: PLDT Group: Service Revenues

    PLDT Group: Service Revenues*  Consolidated service revenues* declined by P5.0bn or 3% year-on-year to P147.6bn in FY16  40% or P59.5bn from home broadband and data, up by 19% from FY15 Service Revenue Mix FY15 FY16 Fixed Line* Data 57% 60% Higher by P4.3bn or 7% (Php in billions) LEC/Others 32% 3

  31. Slide 31: Consolidated Service Revenues: Home and Individual

    PLDT Group: Consolidated Service Revenues* Home (Php in billions) Service Revenue Mix FY15 FY16 higher by P2.6bn or 10% Data/Broadband 58% 60% Voice 42% 40% Home Fixed line LEC Others 0% 0% broadband Corp data domestic voice Others +7% -17% Service Revenues (Php in millions) +14% +40% -74% FY15 FY16

  32. Slide 32: Consolidated Service Revenues: Enterprise

    PLDT Group: Consolidated Service Revenues* Enterprise* (Php in billions) Higher by P2.5bn or 9% ILD/fixed Mobile line Mobile domestic domestic Mobile data SMS Others LEC voice Corp. data voice int’l +119% +47% +16% +1% -65% +14% +0.1 -9% voice +0.3 +0.1 +2.0 +1.5 -1.1 -0.2 -10% 30.6 28.0 Voice lower

  33. Slide 33: PLDT Group: Consolidated Data and Broadband

    PLDT Group: Consolidated Data and Broadband* (Php in billions) Mobile Data Corp. Data and Data Center Home Broadband +2.2 +9.5 +15% +19% +14% +2.1 59.5 +1.9 +14% 17.0 17.5 +3% +5.2 +0.4 15.3 Y-o-Y +26% 14.9 13.4 25.1 4.5 +3% 4.6 +16% 4.0 3.9 4.1 +9% 4.5 +15% 5.6 6.3 -2% 6.2 +11% Mobile Home Corp. Da

  34. Slide 34: Appendix

    Appendix* *Unaudited FY 2016 Financial Statements; Audited FY 2015 Financial Statements 34

  35. Slide 35: Subscriber Base: Mobile

    Subscriber Base: Mobile Mobile Subscribers (1) by Category: Dec-16 Sept-16 Jun-16 Mar-16 Dec-15 Sept-15 Jun-15 Mar-15 Mobile Subscriber Base (1) Prepaid 59,952,941 62,259,067 64,701,367 64,651,175 65,063,860 67,024,637 68,654,608 69,256,011 Smart Prepaid 21,643,963 23,560,542 24,185,165 24,836,433 2

  36. Slide 36: Subscriber Base: Broadband and Fixed Line

    Subscriber Base: Broadband and Fixed Line Broadband Subscribers Dec-16 Sept-16 Jun-16 Mar-16 Dec-15 Sept-15 Jun-15 Mar-15 BROADBAND Home Broadband (Wireless) 270,203 271,572 265,473 248,675 258,776 271,495 287,918 303,303 Fixed Line Broadband 1,450,550 1,407,122 1,347,422 1,296,402 1,255,864 1,224,7

  37. Slide 37: FY 2016: Consolidated Financial Highlights

    FY 2016: Consolidated Financial Highlights FY2016 FY2015 % Change (Php in millions) Wireless Fixed Line Others Consolidated Consolidated Total Revenues 104,914 72,728 20 165,262 171,103 (3%) Service Revenues 100,582 69,006 20 157,210 162,930 (4%) Cash Operating Expenses 49,578 41,152 42 76,804 80,36

  38. Slide 38: Underlying Core Income

    Underlying Core Income 1Q 2Q 3Q 4Q FY2016 1Q 2Q 3Q 4Q FY2015 (Php in millions) Core Income 7,211 10,489 4,036 6,121 27,857 9,280 9,648 8,149 8,135 35,212 Core Income Adjustments One-Time Provisions and Subsidies (EBITDA Adjustments) 1,011 2,034 1,605 - 4,650 - - - - - Asset Sales (970) (7,365) (396)

  39. Slide 39: Reconciliation of Core and Reported net income

    Reconciliation of Core and Reported net income FY2016 FY2015 % Change (Php in millions) Wireless Fixed Line Others Consolidated Consolidated Net Income Attributable to Equity Holders of PLDT 9,457 7,985 2,564 20,006 22,065 (9%) Add (Deduct): Foreign Exchange Losses, Net 1,702 486 597 2,785 3,036 (8%

  40. Slide 40: Consolidated Service Revenues

    Consolidated Service Revenues* FY2016 FY2015 (Php in millions) 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Fixed Line 14,287 14,320 14,446 15,033 58,086 13,034 13,302 13,589 13,817 53,742 LEC 4,333 4,384 4,479 4,499 17,695 4,172 4,226 4,280 4,301 16,979 Fixed Line Voice - International 1,240 1,092 1,015 1,111 4,4

  41. Slide 41: Consolidated Service Revenues and EBITDA

    Consolidated Service Revenues* and EBITDA 2016 2015 (Php in millions) 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Data/Broadband/Digital Platforms 14,525 14,974 15,170 15,749 60,418 11,656 12,309 13,567 13,649 51,181 Mobile Data 6,063 6,443 6,376 6,333 25,215 4,150 4,649 5,534 5,613 19,946 Mobile Internet 3,811 4

  42. Slide 42: Wireless Service Revenues and EBITDA

    Wireless Service Revenues* and EBITDA 2016 2015 (Php in millions) 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Data/Broadband/Digital Platforms 6,944 7,269 7,375 7,429 29,017 5,281 5,725 6,702 6,562 24,270 Mobile Data 6,127 6,535 6,445 6,410 25,517 4,203 4,702 5,608 5,666 20,179 Mobile Internet 3,811 4,257 4,471 4

  43. Slide 43: Fixed Line Service Revenues and EBITDA

    Fixed Line Service Revenues and EBITDA 2016 2015 (Php in millions) 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Data/Broadband 9,110 9,216 9,457 9,928 37,711 8,074 8,261 8,537 8,876 33,748 Home Broadband 3,434 3,655 3,835 3,972 14,896 2,871 3,019 3,161 3,287 12,338 Corp. Data and Other Network Services 4,938 4,793

  44. Slide 44: Expenses

    Expenses FY2016 FY2015 % Change (Php in millions) Wireless Fixed Line Others Consolidated Consolidated Operating Expenses Compensation and Employee Benefits 6,706 13,238 - 19,928 21,606 (8%) Repairs and Maintenance 8,367 7,480 - 15,212 15,035 1% Selling and Promotions 5,570 2,133 - 7,687 9,747 (21%)

  45. Slide 45: Other Income (expenses)

    Other Income (expenses) FY2016 FY2015 % Change (Php in millions) Wireless Fixed Line Others Consolidated Consolidated Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Beacon - - 2,089 2,089 3,205 (35%) Vega - - (1,027) (1,027) - - Others (237) (40) 396 119 36 231% Total Equity

  46. Slide 46: ARPU

    ARPU Mobile ARPU, Net(1) : 2016 2015 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Smart Postpaid 938 951 946 970 991 1,012 968 955 Smart Prepaid 112 110 102 104 119 116 119 116 TNT 80 77 71 75 85 83 82 83 Sun Postpaid 475 453 402 418 443 415 434 474 Sun Prepaid 80 81 84 85 66 67 67 73 (1) Includes Mobile Broadband subsc

  47. Slide 47: Earnings Per Share (EPS)

    Earnings Per Share (EPS) FY2016 FY2015 Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 20,006 20,006 22,065 22,065 Dividends on Preferred Shares (59) (59) (59) (59) Net Income for the Period Attributable to Common Equity Holders of PLDT 19,947 19,947 22,006 22,006 Weigh

  48. Slide 48: Balance Sheet

    Balance Sheet Consolidated December 31, 2016 December 31, 2015 (Php in millions) Total Assets 475,119 455,095 Nominal Value of Total Long-Term Debt 185,663 161,568 in US$ $3,730 $3,429 Less: Unamortized Debt Discount 631 676 Total Long-Term Debt 185,032 160,892 Cash and Short-Term Investments 41,460

  49. Slide 49: Debt Profile

    Debt Profile (US$ in millions) 2011 2012 2013 2014 2015 2016 Debt Balance 2,719 2,851 2,353 2,920 3,429 3,730 Cash and Short-Term Investments 1,061 919 735 610 1,016 833 Net Debt 1,658 1,932 1,618 2,310 2,413 2,897 Interest-Bearing liabilities December 31, December 31, 2016 2015 Unamortized Debt Cha

  50. Slide 50: Foreign Exchange Risk

    Foreign Exchange Risk Forex Impact on Core Income Forex Impact of B/S Revaluation Forex Impact on Derivatives Forex sensitivity for every P1 change Forex sensitivity for every P1 change on B/S (in US$ millions) Conso - net of Elim Conso Revaluation (in US$ millions) US$ Revenues* 544.2 Debt (net of

  51. Slide 51: Forward-looking statements

    Except for historical financial and operating data and other information in respect of historical matters, the statements contained herein are “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchang

  52. Slide 52: @ PLDT ASmart VOYAGER

    @ PLDT ASmart VOYAGER

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