Slide 1: SEC Cover Sheet
COVER SHEET s[efole lel Ilellelelo@]-] Tisle] TT LILLI | (Company's Full Name) 2)7//)F TJHJE G/L}]O) BIE T)]O;W)E;R 3)21N/D S|TIRJEJE\T CJO|R IN JE IR 7|T]H AJV/JE|N/UJE BloINtt trlajc|ijol fei fofelafe] [e[i[riy] [tfafefulifs (Business Address: No. Street City / Town / Province) ROSEMARIE MANIEGO-E
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 SEC Identification Number ntification Number 4. GLOBE TELECOM, INC. Exact Name of registrant as “specified in its charter 5. _ PHILIPPINES v
Slide 3: 2018 Analysts' Briefing
2018 Analysts’ Briefing 12 February 2019 | The Globe Tower BGC PUBLIC For Public Use
Slide 4: FY2018 Performance: Data-driven growth sustains performance
FY2018 Performance: Data-driven growth sustains performance Pre-PFRS Post-PFRS Service Revenues Php Bn 140.2 +10% YoY Revenue grows as data continues to perform EBITDA Php Bn 132.9 Php Bn 64.9 +22% 46% EBITDA Margin YoY Higher revenue and managed costs brings EBITDA margin to 46% Php Bn 65.1 49% EBI
Slide 5: Shift towards data-related services continues
Shift towards data-related services continues FY18 vs FY17 (Pre-PFRS) Mobile Mobile Mobile Home Corporate Fixed Line Voice SMS Data Broadband Data Voice -6% -8% +28% +19% +15% -15% Mobile Subscribers Home Broadband Subscribers Postpaid Prepaid TM Wireless Wired * Effective July 1.3 1.6 5, 2018, all
Slide 6: Data-related services now account for 61% of total service revenues
Data-related services now account for 61% of total service revenues Mobile Data* Home Broadband* Corporate Data* Php Bn 55.3 Php Bn 18.5 Php Bn 11.8 +28%YoY +19%YoY +15%YoY Data Revenues Mobile Data Traffic Mobile Data Users As a % of Total Service In Petabytes Revenues +59% +8% +7ppt 34 37 54% 61%
Slide 7: New products, services and partnerships to further enhance the digital lifestyle
New products, services and partnerships to further enhance the digital lifestyle Globe At Home Launches Globe At Home Air: Your First FREE data, premium video Globe Streamwatch Xtreme High-Speed DIY Internet at Home subscriptions, and exclusive in- game items for Prepaid subs for the holiday season
Slide 8: Financial Highlights
Financial Highlights PUBLIC For Public Use
Slide 9: FY2018 Performance: FY18 EBITDA Margin at 46%, Net Income up 22% YoY
FY2018 Performance: FY18 EBITDA Margin at 46%, Net Income up 22% YoY, and Core Net Income up 37% YoY 4Q18 3Q18 FY18 FY18 QoQ% FY17 YoY% (Pre-PFRS) (Pre-PFRS) (Pre-PFRS) (Post-PFRS) Gross Service Revenues 36,886 35,085 5% 140,232 127,906 10% 132,875 OPEX and Subsidy (21,088) (18,558) 14% (75,361) (74
Slide 10: EBITDA growth of 22% driven by increase in revenues
EBITDA growth of 22% driven by increase in revenues as well as decreased interconnect and marketing costs 12,326 2,175 1,033 435 920 1,438 64,871 YoY 53,326 +22% Pre-PFRS (in Php Mn) 2017 EBITDA Inc. in Dec. in Inc. in Staff Dec. in Inc. in Network Inc. in 2018 EBITDA Revenues Interconnect Costs Mar
Slide 11: Net income increase of 22% resulting from gain in EBITDA
Net income increase of 22% resulting from gain in EBITDA tempered by higher depreciation, non-operating charges and taxes 11,545 2,909 2,821 2,452 YoY +22% Pre-PFRS (in Php Mn) 2017 Reported Change in EBITDA Inc. in Inc. in Non- Inc. in Tax 2018 Reported Net Income Depreciation operating Net Income
Slide 12: PFRS and Adjustments to Retained Earnings
PFRS 15 and 9 Adjustments to Retained Earnings In Php Mn Retained Earnings, 12/31/2017 21,708 Add (Deduct): Effect of PFRS 9 (5,582) Effect of PFRS 15 4,881 Retained Earnings, 1/1/2018 21,007 10 PUBLIC For Public Use
Slide 13: CAPEX spend at Php43.3 billion, with 77% related to data requirements
CAPEX spend at Php43.3 billion or ~USD821 million, with 77% related to data requirements CAPEX BREAKDOWN In Php Bn 63.0 43.3 42.5 36.7 9% 9% ~80% 32.1 2% 1% 7% 13% 8% 10% 14% for data- 30% 11% related 15% 82% 77% requirements 65% 48% 2015 2016 2017 2018 2019E Data Business Support Core Others 11 PUB
Slide 14: Gearing and Cash Dividend for 1Q 2019
Gearing: Debt level remains within covenant Cash Dividend for 1Q 2019 ratios 2018* 2017 Rate per Common Share Php22.75 Cash (in Php Bn) 23.2 11.2 Gross debt (in Php Bn) 148.3 131.5 Record Date February 26, 2019 Gross Debt-to-Equity (Max of 3:1) 2.03x 1.98x Gross Debt-to-EBITDA (Max of 3.5:1) 2.33x 2
Slide 15: 2019 Consolidated Outlook
2019 Consolidated Outlook CAPEX Cost Considerations • Increased interest expenses from additional debt Php63 to satisfy cash requirement for the sustained capex-related spending coupled with rising billion interest rate environment • Depreciation charges to continue upswing, on the back of the eleva
Slide 16: Create.Wonderful. Globe
CREATE.WONDERFUL. aS «Yo Globe Lol
Slide 17: Impact of PFRS 9 and 15
Impact of PFRS 9 and 15 FY18 PFRS FY18 (Post- 1 Service Revenue A portion of postpaid service (Pre-PFRS) Adj. PFRS) revenue is re-allocated as non- 1 Gross Service Revenues 140,232 (7,357) 132,875 service revenue (PFRS 15) 2 Subsidy and Recontracting (8,557) 8,210 (348) Subsidy and Recontracting 2 3