PLDT, Inc. · PSE:TEL
PLDT — Shareholder Meeting (2014)
38 slides from PLDT's shareholder meeting presentation, 2014
Slide 1: 2014 Annual Stockholders Meeting
>PLDT a i IVE DIGITAL! | = ?OIA ANNUAL STOCKHOLDERS MEETING ==
Slide 2: Napoleon L. Nazareno, President and CEO
NAPOLEON L. NAZARENO PRESIDENT AND CEO
Slide 3: 2014 Annual Stockholders Meeting
<> PLDT LIVE Le = 204 ANNUAL STOCKHOLDERS MEETING ==
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 5: Financial Highlights: 2013 revenues and EBITDA
FINANCIAL HIGHLIGHTS | PLDT is firmly back on the growth track in 2013 * Consolidated service revenues up 3% to P164.1B ¢ Wireless service revenues up 3% lo P116.7B * Fixed line revenues up 5% to P61.9B * Consolidated EBITDA up 3% to P77.6B « EBITDA margin stable at 47% ior LIVE DIGITAL! Foti
Slide 6: Financial Highlights: net income and core income
Sarai FINANCIAL HIGHLIGHTS. PLDT is firmly back on the growth track in 2013 * Reported net income down 2% to P35.4B * Core income up 5% to P38.7B ¢ Core EPS up 5% to P179 }Pior LIVE DIGITAL! out
Slide 7: Financial Highlights: Q1 2014 revenues
Pior Se LIVE DIGITAL FINANCIAL HIGHLIGHTS : Sustained growth momentum in Q1 2014 * Consolidated service revenues up 3% to P41.2B « Wireless service revenues up 2% to P28.9B , * Fixed line revenues up 5% to P16.1B * EBITDA margin at 48% \ * Consolidated EBITDA down 2% to P19.7B 4 — a
Slide 8: Financial Highlights: Q1 2014 income
FINANCIAL HIGHLIGHTS Sustained growth momentum in Q1 2014 * Reported net income up 2% to P9.4B « Core income up 2% to P9.8B * Core EPS up 2% to P45.12 }eior LIVE DIGITAL! HE TH
Slide 9: 2013 Financial Highlights
2013 FINANCIAL HIGHLIGHTS:
Slide 10: Structural change in revenue mix
rior : ——— LIVE DIGITAL! oe Fior Structural change in PLDT’s revenue mix tempers revenue growth rates and EBITDA margins. * 60% of revenues (cellular and fixed line voice, SMS) suis = — : _ Nothing beats Fitr. * Data revenues growing, replacing legacy revenues ant Lipari 19 Home's most > g) Pewerful
Slide 11: 2013 Financial Highlights: net income drivers
}Pior ‘LIVE DIGITAL! mrere vies Ty De a 2013 FINANCIAL HIGHLIGHTS | * Core income to rise 2% to P39.5B in 2014 * Reported net income down 2% due to: - Forex and derivative losses - Typhoon Yolanda losses - Adoption of PAS 19 which resulted in higher MRP expenses * Excluding Yolanda losses, reported
Slide 12: Capital Management
| AiG PAGAN
Slide 13: Capital Management
DI CAPITAL MANAGEME * PLDT has declared 100% of core earnings as roridengs for the last seven years (2007-2013) wt * PLDT declared dividends of P179 per share representing. f 100% of 2013 core earnings 0 ae fw * At 2013 closing share price of P2,666, PLD } yield is 6.7% f and y gn ba
Slide 14: Slide 14
Slide 15: Subscriber Base
SUBSCRIBER BASE Total subscriber base: 76.2M as of end-March 2014 ¢ 70.5M cellular subscribers * 2.1M fixed line subscribers * 3.6M broadband subscribers Maintained leadership in fixed, mobile and broadband markets <}eior ove mena
Slide 16: Debt Profile
DEBT PROFILE
Slide 17: Debt Profile
Pir Pee LIVE DIGITAL! ‘DEBT PROFILE * Lower net debi al $1.6B * Net debt fo EBITDA down to 0.9x * Gross debt down to $2.4B ¢ Debi maturities continue to be well spread oul - 44% of total debt maturing beyond 2018, including the P15B retail bonds issued in 1Q 2014
Slide 18: PLDT rated investment grade by three major agencies
PLDT rated investment grade by the three major international ratings agencies: Prior LIVE OUGITALL
Slide 19: CAPEX 2013
‘ — at CAPEX 2013 Ape Hf | ji yy
Slide 20: CAPEX 2013
CAPEX 2013 Lower by P7.6B at P28.8B ¢ Expand 2G coverage to 99% * Expand 3G coverage to 71% « Expand 4G coverage to about 27% ~ * Increased fiber fooiprini to 78,000 kms | ON . hs
Slide 21: CAPEX 2013: fiber assets
CAPEX 2013, * 85,000 kms fiber assets as of end-March 2014 * Fiber connectivily to a growing number of mobile base sic ¢ Additional international cable capacity ¢ Domestic fiber passing about 2 million homes
Slide 22: CAPEX 2014
Slide 23: CAPEX 2014
rior ws eats LIVE DIGITAL! -CAPEX 2014 “ = CAPEX is projected to reach between P31B to P32B * 3G HSPA coverage to all 1,600 cities and municipalities * LTE coverage for nearly half of the population « Fiber fooiprini to reach over 90,000 kms * Increase in international fiber optic cable capacity * F
Slide 24: Making telco and internet services more widely available
We shall make both basic telco and internet services even more widely available to" the country’s development
Slide 25: Free Cash Flow
FREE CASH FLOW
Slide 26: Free Cash Flow
}Pior seer LIVE DIGITAL FREE CASH FLOW * Free cash flow up 12% to P42B - Lower CAPEX by P7.6B - Lower net increase in working capital of P5.1B - Higher income taxes paid by P1.5B
Slide 27: Free Cash Flow: uses
}eior ool bern meer ‘LIVE DIGITAL! FREE CASH FLOW 8! ESA * FCF and net proceeds from sale of BPO business and last two tranches of Philweb shares used for: - Payment of cash dividends of P37.7B - Repayment of debt (net) of P17.2B - MediaQuest PDR subscription of P5.6B
Slide 28: Multimedia Initiatives
MULTIMEDIA INITIATIVES
Slide 29: Multimedia Initiatives: PLDT
MULTIMEDIA INITIATIVES PLDT uve oIGITaL! TV cede | GAMES SPORTS STEED. FOR SPEED chee sneer x nem ued a.
Slide 30: Multimedia Initiatives: Smart and Sun
MULTIMEDIA INITIATIVES SMART AND SUN ve ETAL! Fe! a Ben Gulad $ me f GE? FREE SONGS on fa a
Slide 31: Multimedia Initiatives: Cignal TV
}eior ‘MULTIMEDIA INITIATIVES CIGNAL TV LIYE CIGITALL P i M d =e | rs) - : PR ee St © Ata | aa a | » wm ™ Triple play service TV-to-go mobile offering
Slide 32: 2014 Outlook
Slide 33: 2014 Outlook
2014 OUTLOOK * Mainiain the momentum in profitability * Manage the transformation of our revenue mix * Expand data businesses * Maintain equilibrium of core businesses ‘.* Manage declines in legacy services
Slide 34: Continued investment and digital solutions
}eior LIVE DIGITAL Continued Investment _ ; Digital Solutions Better, more Largest and most relevant services extensive internet infrastructure Multimedia services Innovation
Slide 35: Services the country needs to compete globally
s that the country needs to 1 to ro the global es and industries
Slide 36: Committed to the country's digital future
Pipr LIVE DIGITAL We at PLDT are firmly committed to helping pave the way for the country’s digital future.
Slide 37: Live Digital!
LIVE DIGITAL!
Slide 38: PLDT 2014 Annual Stockholders Meeting
<>’ PLDT . LIVE OI = 20/4 ANNUAL STOCKHOLD ie : ; “MEETING =