Slide 1: Financial and Operating Results Fourth Quarter/Full Year 2012
Globe Telecom, Inc. Financial and Operating Results Fourth Quarter/Full Year 2012 6 February 2013
Slide 2: 2012 Financial Highlights
2012 Financial Highlights Service Revenues = Payout consistent with our policy of Dividends Php33.50/sh distributing 75% to 90% of PY core net income = Record date: Feb 19; Payment: Mar 12 Note: Amounts in millions unless otherwise sp
Slide 3: Revenue momentum sustained despite capacity constraints, heightened competition and negative currency impact
Revenue momentum sustained despite capacity constraints, heightened competition and negative currency impact Service Revenues by Product Category Quarterly Service Revenues +16% +7% +10% 1 E] +6% +6% 3 21,418 S (9%) >» ° > : 20,557 7 [| : |_| a = i] <= Vv f T T o & Mobile Broadband Fixed Line Consol
Slide 4: Mobile: Record 4Q12 revenues driven by strong growth of postpaid segment
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 Subscribe Mobile Revenues noe eigeat nc erat at +10% 31,72 31,025 30,040 4Qi1 1Qi2 2Q12 3Q12 mPr d d Other Data Revenues oe goth me Rites Fy 2011 Ahokule
Slide 5: Mobile Postpaid: Reinvesting part of strong revenue growth to support more subscriber acquisitions
Mobile Postpaid: Reinvesting part of strong revenue growth to support more subscriber acquisitions Postpaid Subsidy & Marketing Postpaid Revenues <} 3.1Bn Other Mktg mRecontracting CI _ 2011 2012 Re-contracting snd other marketing expenses for mobile = Subscriber acquisition costs are recognized upf
Slide 6: Broadband: Revenues and subscriber base grew by 16% and 18% YoY
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 7,496 FY 201 FY 2012 ° i, | Subscribers 1,672 1,411 FY 20n FY 2012 WE Wireless Wired
Slide 7: Network Modernization and IT Transformation remains key part of agenda
Network Modernization and IT Transformation remains key part of agenda towards making customer experience a key differentiator EMPOWERING Yiojutr} jWialy Network Modernization Updates = First phase of the network modernization is on track with 88% completion rate in various cell sites all over the c
Slide 8: Strategic Initiatives: Tender Offer for Bayan debt successful
Strategic Initiatives: Tender Offer for Bayan debt successful with over 96.5% of Bayan tendered and accepted Bayan Debt Offer We concluded the tender offer for Bayan debt last 21 December 2012, gathering tenders for over 96.5% of all existing outstanding debt of Bayan and its subsidiary RCPI - As
Slide 9: Financial Performance
Financial Performance
Slide 10: Consolidated Financial Highlights
Consolidated Financial Highlights Y/Y a/a 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% Depreciation 23,584 18,941 25% 7,342 6,459 14% Affected by Network Mod'
Slide 11: 2012 EBITDA and Core Net Income
2012 EBITDA and Core Net Income: EBITDA flattish versus 2011 due largely to higher marketing & subsidy and network-related operating expenses; net of accelerated depreciation and other non-recurring items, Core NIAT up 2% * Increase in revenues more than offsets higher subsidy & marketing spending a
Slide 12: 4Q12 EBITDA and Core Net Income
4Q12 EBITDA and Core Net Income: EBITDA, NIAT and Core NIAT are all lower against the previous quarter due to significant increases in subsidy, marketing and depreciation expenses. * Increase in mktg & subsidy in 4Q12 brought about by the iPhone 5 launch Increase in network costs due to ramp-up in n
Slide 13: Globe's network modernization program ably supported by the capital markets
Globe's network modernization program ably supported by the capital markets. Shareholder returns sustained at competitive levels. 2009 2010 2011 = Capex to Revenue Rstio MM sau Capex Debt to EBITDA eam 2 Debt to Equity
Slide 14: 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 accelerate
Slide 15: Q&A
Q&A
Slide 16: Historical Consolidated Gross/Net Revenues and EBITDA Margin (restated)
Appendix 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 16,5
Slide 17: Historical Wireless Gross and EBITDA Margin (restated)
Appendix 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 17,3
Slide 18: Historical Fixed Line and Broadband Gross Revenues and EBITDA Margin (restated)
Appendix 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 2,372
Slide 19: Net Income and Core Net Income
Appendix Net Income and Core Net Income In Php Mn (a fter ta x) 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 20: Forward Looking Statements — Disclaimer
Forward Looking Statements — Disclaimer This presentation contains certain forward-looking statements. These forward-looking statements generally can be identified by use of statements that include words or phrases such as Globe or its management “believes,” “expects,” “anticipates,” “intends,” “pla
Slide 21: END
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