Converge Information & Communications Technology Solutions Inc · PSE:CNVRG
Converge Information & Communications Technology Solutions — FY2021 Earnings Presentation
35 slides from Converge Information & Communications Technology Solutions's earnings presentation, March 2022
Slide 1: 4Q/FY2021 Investor Briefing
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Slide 2: Meeting Reminders
MEETING REMINDERS • Please mute your microphones during the presentation. • Questions will be entertained during the Q&A portion after the presentation. You may send your questions through the Zoom Chat feature. Please introduce yourself along with your affiliated company/research house. • The sessi
Slide 3: Today's Speakers
‘Mr. Dennis Anthony H. Uy Ms. Grace Y. Uy Mr. Matthias Vukovich Mr. Jesus C. Romero Mr. Benjamin B. Azada CEO and Co-Founder President and Co-Founder Chief Financial Office Advisor Chief Operations Officer Chief Strategy Officer (converse
Slide 4: Mr. Dennis Anthony H. Uy, CEO and Co-Founder
Slide 5: Ms. Grace Y. Uy, President and Co-Founder
— % ea L iy a fa President and Co-Founder
Slide 6: 4Q/FY2021 Results Key Takeaways
4Q/FY2021 Results Key Takeaways ✓ Leading industry-trifecta with 69.2% YoY Revenue growth for FY2021, 80.1% YoY EBITDA growth for FY2021, and 20.9% ROIC for FY2021 ✓ Consistently strong EBITDA growth in FY2021 with 80.1% YoY growth and margin expansion from 52.5% in FY2020 to 55.9% for FY2021 ✓ Reco
Slide 7: Mr. Matthias Vukovich, CFO Advisor
Slide 8: Added ~650k FTTH ports in 4Q2021
Added ~650k FTTH ports in 4Q2021 Extensive and Fast-growing Network Homes Passed (MM) (1)(2)(3) Number of Ports (MM) (1)(2) 13% 25% 43% 55% 0.9 1.4 2.4 190 350 343 15.1 7.5- 8.0 10.9 5.9 0.9 3.5 0.9 6.2 0.1 3.2 0.8 2.0 0.8 10.1 - 4.7 0.2 0.8 5.3 - 0.8 2.7 2.4 1.2 2019 2020 2021 2023E 2019 2020 2021
Slide 9: Record annual gross adds of ~840k and net adds of ~653k
Record annual gross adds of ~840k and net adds of ~653k Number of Subscribers (‘000) ✓ 617 841 292 Record annual net subscriber adds of ~653k in 2021, resulting in ~1.69MM 1,692 subscribers as of December 2021, at the higher end of full year guidance. 3.2x 215 1,038 Subscribers 530 216 Since 2019 1,
Slide 10: Industry Leading Trifecta
Industry Leading Trifecta Revenue EBITDA (2) PHP MM (US$ MM) (1) PHP MM (US$ MM) (1) Enterprise ($537) 26,479 ($300) Residential 14,803 3,350 ($318) 15,652 ($167) 8,218 ($185) 3,025 9,139 23,129 ($95) ($103) ($51) 4,665 ($60) 5,055 2,786 12,628 ($29) 2,549 2,940 1,904 1,460 1,421 6,354 1,520 3,151 2
Slide 11: P&L Highlights
P&L Highlights For the twelve months ended For the three months ended December 31 December 31 YoY YoY 2021 2020 2021 2020 Change % Change % (in PHP millions) Revenue 26,479 15,652 69% 7,647 4,975 54% Cost of Services (10,507) (7,065) 49% (3,046) (2,121) 44% Gross profit 15,971 8,588 86% 4,602 2,854
Slide 12: Well Funded CAPEX Plan
Well Funded CAPEX Plan Fully Funded Capex Plan in 2022 US$405MM US$1,185MM FY2021 CAPEX: (PHP20Bn) (PHP57Bn) Initial PHP25Bn tranche: PHP 10 Bn (vs. 2020 – PHP16Bn) Available from Sufficiently US$446MM shelf: funded (PHP22Bn) PHP 10 Bn US$528MM- with current US$568MM- funding US$507MM (PHP26-28Bn) (
Slide 13: Mr. Jesus C. Romero, Chief Operating Officer
Slide 14: Completion of the National Digital Highway
Completion of the National Digital Highway 13,500 Kilometers Fiber optic cable added in 4Q 2021 103,000 Kilometers Terrestrial Fiber Backbone 1,800 Kilometers Subsea Cables 20 Landing Stations
Slide 15: Service Coverage Pipeline
Service Coverage Pipeline Deepening our Reach into Cities and Target Expansion Areas Municipalities Nationwide For 2022 Number of Cities and Municipalities(#) Kalinga 42k households Negros Occidental 572k households Leyte 405k households Bohol 288k households Agusan Del Norte 77k households Bukidnon
Slide 16: Fully Redundant International Cable Network
Fully Redundant International Cable Network 2021 Highlights: Participation in the Bi Frost Cable System Added 1.3 Tbps international capacity in the C2C cable network making the submarine cable configuration fully redundant
Slide 17: Award Winning National Connectivity
Award Winning National Connectivity Ookla Speedtest Awards (For 4Q2021)(1) Netflix ISP Speed Index (For FY2021)(2) Most Consistent Network in 5 regions Consistent leader on Netflix ISP Speed index, (Awarded by Ookla for 4Q2021) ranking #1 in 11 out of 12 months for 2021 Note: 1. Based on publicly av
Slide 18: Strong growth in the SME Business
Strong growth in the SME Business 18
Slide 19: Mr. Benjamin B. Azada, Chief Strategy Officer
Slide 20: Enabling Our Customers to #ExperienceBetter
Enabling Our Customers to #ExperienceBetter Gofiber App Snapshots Growing Digital App Adoption Cumulative – in 000s 647 718 546 442 700 349 631 200 532 433 343 196 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Downloads Registered Customers App Dashboard Landing Page In-App Payment Page Record Low
Slide 21: Sustainability Commitment
Sustainability Commitment 21
Slide 22: Sustainability Initiatives
Sustainability Initiatives Operating a sustainable company and Delighting customers by taking care of leading it with integrity and good governance our own • Launch of Converge University’s Learning • Established an Enterprise Risk Management Management System which allows employees to (ERM) system
Slide 23: Q&A
Q&A
Slide 24: Contact details and social media
www.convergeict.com Dennis Anthony Uy Converge ICT Solutions Inc. @DennisUyFiberMaster @ConvergeICTOfficial @TheFiberMaster @ExperienceCNVRG
Slide 25: Thank you!
Thank you! —- : ‘ (converce
Slide 26: Disclaimer
Disclaimer This material has been prepared exclusively for information and disclosure purposes only. This does not constitute any offer to buy or sell securities. These may contain forward-looking statements and information that are, by their nature, subject to significant risks, uncertainties, and
Slide 27: Appendix
Appendix a s (converce
Slide 28: Leading with Superior Speeds at Affordable Prices
Leading with Superior Speeds at Affordable Prices In celebration of the Company’s IPO Anniversary BASE PLAN Add-on TIME OF DAY WHOLE HOME WIFI 10FOR99 Linksys Velop DB: Dual Band* : TB: Tri-Band, W6: WiFi 6 199-349/599/849 50 Mbps 1500 1599 (35 Mbps) 60 50 Mbps (45 Mbps) 100 Mbps Mbps 1699 2000 200
Slide 29: Revenue growth and cost management contributed to EBITDA growth
Revenue growth and cost management initiatives contributed to EBITDA growth YoY EBITDA Growth PHP MM Total Cost Net Increase: PHP (4,242) 52.5% 55.9% 2020 Inc in Inc in Network Inc in Labor Inc in Inc in Managed Inc in Inc in Other Inc in Provision 2021 EBITDA Revenue Material and Installation Perso
Slide 30: Quarterly Operational Performance Summary
Quarterly Operational Performance Summary 2020 2021 YoY Change % 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q2021 vs 4Q2020 Residential Revenues 2,287 2,691 3,435 4,215 4,797 5,415 6,162 6,754 60% FTTH 1,614 1,992 2,679 3,509 4,086 4,771 5,571 6,215 77% HFC 673 698 756 707 711 644 590 539 -23% Customers 615,466 731,5
Slide 31: Consolidated Income Statement
Consolidated Income Statement For the twelve months ended For the three months ended December 31 December 31 YoY YoY change YoY YoY 2021 2020 change % 2021 2020 change change % (in P millions) Revenues 26,479 15,652 10,826 69% 7,647 4,975 2,672 54% Residential 23,129 12,628 10,501 83% 6,754 4,215 2,
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet As of the period Dec 31 2021 Dec 31 2020 Change Change % (in P millions) Current assets 21,040 21,271 (231) -1% Cash and cash equivalent 8,084 12,957 (4,874) -38% Trade and other receivables, net 3,033 2,173 860 40% Network materials and supplies 3,485 2,031 1,454 72% Othe
Slide 33: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement For the twelve months ended December 31 YoY YoY change 2021 2020 change % (in P millions) Cash flow from operating activities Profit before income tax 9,553 4,878 4,675 95% Adjustments for operating income 7,652 4,490 3,162 70% Adjustments for assets and liabilities
Slide 34: Liquidity and Capital Resources
Liquidity and Capital Resources December 31, 2021 December 31, 2020 Change (%) Balance Sheet[ Data (in P millions) Total Assets 81,864 56,712 44% Total Debt 19,846 11,314 75% Total Stockholders' Equity 35,111 27,775 26% Financial Ratios Total Debt to EBITDA (gross) 1.3x 1.4x Total Debt to EBITDA (ne
Slide 35: #ExperienceBetter
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