PLDT, Inc. · PSE:TEL

PLDT — H1 2018 Earnings Presentation

77 slides from PLDT's earnings presentation, Aug 9, 2018

  1. Slide 1: 2018 First Half Results

    2018 First Half Results Financial and Operating Results 9th August 2018

  2. Slide 2: PLDT Group: 1H18 vs 1H17 Financial Highlights (ex-Voyager)

    PLDT Group: 1H18 vs 1H17 Financial Highlights (Php in billions) Excluding Voyager % Change 1H2018 1H2018 1H2018 % Change 1H2017 (Y-o-Y) PFRS15 (Pro-forma) (PFRS 15) (Y-o-Y) Impact Service Revenues 73.6 70.6 +4% 71.9 +2% (1.8) (Net of interconnection costs) +3.0 +1.3 EBITDA 34.6 32.4 +7% 34.4 +6% (0.

  3. Slide 3: PLDT Group: 1H18 vs 1H17 Financial Highlights (with Voyager)

    PLDT Group: 1H18 vs 1H17 Financial Highlights (Php in billions) With Voyager 1H2018 Change 1H2018 1H2018 Change (Pro-forma) 1H2017 (Y-o-Y) PFRS15 (PFRS 15) (Y-o-Y) Impact Service Revenues* +4% +2% 74.2 71.2 +3.0 72.5 +1.2 (1.8) ex-ILD/NLD* 69.4 65.3 +6% 67.7 +4% (1.8) +4.2 +2.4 +4% +4% EBITDA 33.3 3

  4. Slide 4: PLDT Group: Consolidated Service Revenues

    PLDT Group: Consolidated Service Revenues (Php in billions) Service Revenues, net of interconnection costs ex-ILD/NLD ILD/NLD IAS18 (Pro-forma) PFRS15 1H18: 74.2 +4% -1.8 1H18: 72.5 Five (5) quarters of sequential improvements +3.0 1H17: 71.2 +5% -5% in 2Q17 +1.8 1% 4% 1% 1% +2% -0.6 +1% +1% -1.5 -0

  5. Slide 5: PLDT Group: Home

    PLDT Group: Home (Php in billions) Since 1Q15, 13 quarters of sequential IAS18 revenue increases (Pro-forma) PFRS15 1H18: 18.0 +14% --- 1H18: 18.0 +2.2 +14% +11% in 1H17: 15.8 2Q17 +1.1 +2% +3% - +3% +3% +2% - +2% +3% +5% +0.3 +4% +0.2 +0.2 8.9 9.1 +0.2 +0.2 +0.2 +0.2 +0.4 8.5 8.7 +0.3 7.6 7.8 8.0 7

  6. Slide 6: PLDT Group: Enterprise

    PLDT Group: Enterprise (Php in billions) IAS18 (Pro-forma) PFRS15 1H18: 18.7 +9% -0.5 1H18: 18.2 +1.6 +12% +9% in 1H17: 17.1 2Q17 +1.0 2% +3% +3% +3% +3% +7% 9.5 9.2 +0.3 - +1% +1% - +3% +0.6 8.6 -0.2 +0.2 8.7 +0.2 9.0 +0.3 -- +0.3 8.1 8.5 +0.1 7.8 7.8 7.7 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q1

  7. Slide 7: PLDT Group: Individual

    PLDT Group: Individual (Php in billions) IAS18 (Pro-forma) PFRS15 Three (3) sequential quarters 1H18: 28.6 of revenue growth 1H18: 29.9 +2% -1.2 +0.5 1H17: 29.3 -15% or - +2% –P2.6 in +0.3 2Q17 3% 9% -0.5 5% - +2% - +1% 17.9 2% - +1% 2% - +1% 17.3 -1.6 +0.2 15.7 -0.7 15.0 +0.3 15.0 -0.4 14.6 +0.1 14

  8. Slide 8: PLDT Group: International

    PLDT Group: International (Php in billions) Sequential declines continue 1H18: 6.9 15% albeit at a slower pace 1H17: 8.2 -1.3 starting 3Q17 -23% or 13% –P1.2 in -0.5 2Q17 6% 7% 1% 12% 4% -0.3 - +1% 8% 7% 5.5 5.2 -0.4 4.8 --- 4.8 -0.6 -0.2 4.2 4.0 --- 4.1 -0.3 3.7 -0.3 3.5 3.5 1Q16 2Q16 3Q16 4Q16 1Q1

  9. Slide 9: PLDT Group: Consolidated Service Revenues (by Business Unit)

    PLDT Group: Consolidated Service Revenues (by Business Unit) (Php in billions) -4% or –2.5bn 1H18 vs 1H17 in 1H17 +3.0 -1.3 -0.1 +7% +4% +1.6 -15% -10% +9% +4.3 6.9 74.2 72.5 0.7 -1.8 +2.2 18.7 66.6 +14% +0.5 +2% 18.0 29.9 1H18 (PFRS15) Individual Home Enterprise Intl Voyager 1H18* and and Carrier O

  10. Slide 10: PLDT Group: Consolidated Service Revenues (by Product Type)

    PLDT Group: Consolidated Service Revenues (by Product Type)* (Php in billions) -6% or -P4.5bn 1H18 vs 1H17 in 1H17 Higher by P3.0bn or 4% Service Revenues (excluding ILD/NLD) -5% or Data, -P3.1bn LEC, mobile International +6% broadband in 1H17 domestic voice and fixed +4.2 and digital voice and line

  11. Slide 11: PLDT Group: Consolidated EBITDA

    PLDT Group: Consolidated EBITDA* (Php in billions) EBITDA (ex-Voyager) Higher by P2.2bn or 7% (ex-Voyager) +5% or +7% +P1.4bn Lower Higher Higher Higher +2.2 in 1H17 Cash Subsidies cost svc of Voyager’s Opex & Prov rev* services EBITDA +3.0 +0.1 34.6 1% +6% +8% 1% -0.7 -0.3 (1.2) 33.3 32.4 +1.7 +2.6

  12. Slide 12: PLDT Group: Core Income

    PLDT Group: Core Income* (Php in billions) Higher by P0.8bn or 6% Lower Lower Lower Higher Gain from Non- Fin Equity in Provn cash Costs sale of Earnings and for Inc Voyager’s Higher Exp – net Others Rocket Taxes Core Loss EBITDA +0.6 -1.2 shares +1.0 -0.3 13.1 12.2 +0.7 13.0 1.3 1.4 11.7 1H17 1H18

  13. Slide 13: PLDT Group: Debt Profile

    PLDT Group: Debt Profile  As of end June 2018, net debt and net debt to EBITDA at Debt Balance US$2.4bn and 1.89x, respectively (US$ in billions)  Gross debt as of end June 2018 amounted to US$3.5bn 3.7  US$ denominated gross debt now at 16% from 20% at YE17 3.5 3.5 2.9 2.8  Taking into account

  14. Slide 14: PLDT Group: Capital Management

    PLDT Group: Capital Management  In line with dividend policy, interim dividend of P7.8bn or P36 per share declared Total 60% Per Share Underlying Core Income P11.7bn P7.0bn P32 Gain from Rocket Sale P 1.4bn P0.8bn 4 P7.8bn P36 Declaration Date 9 August 2018 Record Date 28 August 2018 Payment Date 1

  15. Slide 15: PLDT Group: Capex

    PLDT Group: Capex (Php in billions) Fixed Line Wireless 58.0 21.8 43.2 42.8 280% 8.5 36.4 40.3 26.5 31.2 34.8 46% (32% in 2017) 28.8 12.9 10.7 13.0 13.7 11.7 5.7 13.7 11.7 31.5 54% (68% in 2017) 13.2 22.1 23.0 30.3 32.1 27.3 1.9 17.2 17.1 3.8 2011 2012 2013 2014 2015 2016 2017 2018B 1H2017 1H2018 %

  16. Slide 16: Fixed Fiber and Wireless Network: Selected Highlights

    Fixed Fiber and Wireless Network: Selected Highlights Accelerated Fixed Network Rollout TOTAL HOMES PASSED TOTAL CAPACITY TOTAL FIBER FOOTPRINT (Million Homes) (Million Ports) (Thousand Cable Kilometers Laid)  As of end June 2018, 99.4% of the  Capacity increased by almost 86%  Additional 29K kms

  17. Slide 17: 2018 1st Half Business Results

    Chief Revenue Office 2018 1st Half Business Results 2018 August 9

  18. Slide 18: Q2 2018 Highlights: Total CRO

    Q2 2018 HIGHLIGHTS : TOTAL CRO Service Revenue Net of Interconnection Cost In Billions of PHP +1.9B | -2.2B | -6% +5% Q2 YOY GROWTH Q2 YOY GROWTH 38.0 37.5 37.1 36.4 5.5 5.2 35.7 35.9 3.5 35.8 3.5 35.4 35.2 35.2 4.8 4.1 3.7 9.5 7.7 4.8 4.2 4.0 9.2 7.8 8.7 9.0 International 7.8 8.6 8.5 Enterprise 7.0

  19. Slide 19: H1 2018 Highlights: Total CRO

    H1 2018 HIGHLIGHTS : TOTAL CRO Service Revenue Net of Interconnection Cost In Billions of PHP -5.0B | -7% +3.1B | +4% H1 YOY GROWTH H1 YOY GROWTH 75.5 73.5 10.7 71.2 71.6 6.9 9.6 70.4 7.8 15.4 18.7 8.2 International 15.9 17.7 Enterprise 14.2 17.1 Home 18.0 15.1 Individual 35.2 15.8 17.2 29.8 30.7 29

  20. Slide 20: Segment Highlights

    SERVICE REVENUES Net of Interconnection Cost | In Billions of Pesos H1 2018: H1’17 H1’18 GROWTH PHP % 17.1 18.7 SEGMENT ENTERPRISE +1.6B +9% HIGHLIGHTS HOME 15.8 18.0 +2.2B +14% Excluding Voyager and Others INDIVIDUAL 29.3 29.8 +0.5B +2% SUB-TOTAL 62.2 66.5 +4.3B +7% INT’L 8.2 7.0 -1.2B -15% TOTAL 7

  21. Slide 21: Enterprise

    PLDT A Smart ENTERPRISE

  22. Slide 22: Enterprise H1 2018 Results

    ENTERPRISE H1 2018 RESULTS 1H 2018 Highlights: Net Service Revenues, 1H 2018 vs 1H 2017. (in PhP billions) 1. Fixed Line continues to grow 18.73 driven by demand for data. 17.13 Corporate Voice -4% Broadband 17% Domestic Data 8% 1. Wireless growing like never before. Corporate Postpaid 23% Broadband

  23. Slide 23: Fixed Line continues to grow driven by Data

    Fixed Line continues to grow driven by Data. Deeper Engagements with Large Enterprise. Continued Enablement of the SME segment. Expanding in International Markets.

  24. Slide 24: Palayan City Business Hub

    Palayan City Business Hub BPO-1 Palayan, Nueva Ecija 30 mins drive from Cabanatuan

  25. Slide 25: Continued Pursuit of LGU Technology Enablement

    Continued Pursuit of LGU Technology Enablement. Provincial Government of Rizal City Government of Binan Municipality of Baras ISAT University, Iloilo

  26. Slide 26: Wireless Growing Like Never Before

    Wireless Growing Like Never Before. Aggressive Campaign on 1 Corporate Postpaid Digital Brands 2 Wireless Enablement Nation Building 3 and LGU Empowerment

  27. Slide 27: Dominating the Enterprise ICT Space

    Dominating the Enterprise ICT Space.

  28. Slide 28: Enterprise Corporate Data Market Share Comparison

    Enterprise Corporate Data Market Share Comparison PLDT Enterprise GLOBE Enterprise 11.80 +1.38 10.42 ↑13% 5.48 5.02 +0.46 ↑9% 1H2017 1H2018 1H2017 1H2018 67% 68% 33% 32%

  29. Slide 29: Consumer Home

    PLDT A Smart CONSUMER HOME 7 dia ‘tender moment , wa 21990

  30. Slide 30: PLDT Home sustained its 14% YOY Revenue Growth

    PLDT Home PLDT HOME NET SERVICE REVENUES In Billions of PhP sustained its 14% YOY Revenue H1 2017 18.0B H1 2018 15.8B 4.6B 4.5B Growth for H1 4.7B4.7B -2% -4% +14% 2018, +2.2B 13.5B +21% 11.1B 13.4B 11.1B +21% hitting P18B for Voice the first time in a Data semester H1 2017 H1 2018

  31. Slide 31: Household penetration at an all-time high

    HOUSEHOLD PENETRATION In Millions Household penetration is at 2.22M 2.04M an all-time-high of +9% +175K 4.27M 2.2M, 3.88M an increase of 9%YOY in unique H1 2017 H1 2018 subscribers

  32. Slide 32: ARPU at a new high

    ARPU at a new high PLDT HOME ARPU In Pesos of P1,389, 1,389* A 4% YOY growth, 1,340 +4% driven by new subs +49 buying higher value plans, upselling efforts and “beyond access” offerings H1 2017 H1 2018 *86% - New connects with higher plans 14% - Upgrade of existing subscribers

  33. Slide 33: PLDT awarded Fastest Fixed Network

    1 PLDT awarded Fastest Fixed Network PLDT is The Philippines' Speedtest Awards Winner for fixed network speed during Q1-Q2 2018. To win this award, PLDT achieved a Speed Score of 17.31, with top download speeds of 53.07 Mbps and top upload speeds of 54.31 Mbps. Speed Score PLDT 17.31 Sky 10.89 Smart

  34. Slide 34: Strong growth driven by 2.5X increase in Fibr port rollout

    Strong growth driven by 2.5X increase in 2 Fibr port rollout vs H1 2017 Effective analytics modeling and on-ground campaigning accelerating ability to use ports H1 2015 H1 2016 H1 2017 H1 2018 HOMES 2.4M 2.6M 3.1M 5.1M PASSED PORTS RFS* 353K 466K 734K 1.9M UTILIZATION 108K | 31% 187K | 40% 329K | 45

  35. Slide 35: Accelerating the push of fibrization to the consumer

    3 We will accelerate the push of fibrization to the consumer to manage churn and to upsell 548k Fibrization Ports Delivered 335k Subs Covered by Modernized Network

  36. Slide 36: Fibrization Roadmap: Increase speeds of subs

    Fibrization Roadmap: 3 Increase speeds of subs in modernized our modernized network 20 Mpbs Now up to 25Mbps 5 Mpbs Now up to 3 Mpbs Now up to 10Mbps 5Mbps PLAN PLAN PLAN 1299 1699 1899 AUG W1-3 AUG W1-3 AUG W3-SEP W2

  37. Slide 37: #1 Home Broadband now with Prepaid

    4 #1 Home Broadband now with Prepaid PERFECT SUPER FOR THE AFFORDABLE JUST PLUG & SUPER BILIS FAMILY ADD ON for SURF POWERED CONNECT UP AS LOW AS INSTANT BY SMART TO 5 P15/GB/DAY ACTIVATION LTE DEVICES ADD ON TO HOME BOOST 15 1 GB FOR 1 DAY HIGHER HOME BOOST LOADS HOME BOOST 50 1.3 GB FOR 3 DAYS HOM

  38. Slide 38: Consumer Individual

    PLDT @ Smart CONSUMER INDIVIDUAL

  39. Slide 39: Consumer Individual posts 3 consecutive quarters of growth

    Consumer Individual posts 3 consecutive quarters of growth, further solidifying its turnaround as Service Revenues hit 15B in Q2 - a first since 2016 SERVICE REVENUES NET OF INTERCONNECTION COST In Billions of PhP -2.6 +0.3 Arresting years -15% +2% of decline, we have posted a promising YoY 17.9 gro

  40. Slide 40: Highest net new subscribers in the last 4 quarters

    Highest net new subscribers in the last 4 quarters driven by effective retention and acquisition efforts WIRELESS INDIVIDUAL SUBSCRIBER COUNT In Millions 62.8* 0.37 62.4* +0.6% 3.2 4.2 59.2 58.6 58.3 57.8 57.9 57.7 58.1 Q4 ‘16 Q1 ‘17 Q2 ‘17 Q3 ‘17 Q4 ‘17 Q1 ‘18 Q2 ‘18 *Q4’16 & Q1’17 figures use the

  41. Slide 41: Data Revenue Growth remains robust at 19%

    WIRELESS INDIVIDUAL DATA REVENUE In Billions of Php Data Revenue Growth remains P1.09B robust at 19%, 19% delivering over 1B in incremental 6.88 revenue, and 5.96 6.01 6.50 driving overall 5.78 5.23 5.37 business stability and turnaround Q4 ‘16 Q1 ‘17 Q2 ‘17 Q3 ‘17 Q4 ‘17 Q1 ‘18 Q2 ‘18

  42. Slide 42: Data contribution to revenue

    DATA CONTRIBUTION TO REVENUE As the business pivots towards data, its contribution to Consumer Individual 46% 44% revenues has 37% 39% 41% 41% 35% reached a new high of 46%. Q4 ‘16 Q1 ‘17 Q2 ‘17 Q3 ‘17 Q4 ‘17 Q1 ‘18 Q2 ‘18

  43. Slide 43: Smart won the OpenSignal fastest LTE download speed awards

    Smart won the OpenSignal fastest LTE download speed awards! i“ }) “ 5) es ( ce) N) (¢ a) )) oy ®® ) Lowest Latency on Lowest Latency on LTE in the Philippines 3G in the Philippines OpenSignal wh OpenSignal Awards - State of Mobile Networks: Philippines report March 2018. © 2018, OpenSignal ¥ ON

  44. Slide 44: SMART wins Philippines' Fastest Mobile Internet Award

    Remarkable progress on roll-out of BEST Data network 1 is a key driver SMART wins Philippines’ Fastest Mobile Internet Award 44

  45. Slide 45: LTE Migration efforts yielding significant take-up

    LTE Migration efforts yielding significant take-up, 2 with 57% of subs base now LTE capable 57% of total active base 31% of total active base now with LTE SIMs now with LTE smartphones 19.9M 21.0M 10.2M 11.6M 13.3M 52% 57% 27% 31% 10.9M 5.0M 6.3M 35% 28% 13% 16% Q1’17 Q2’17 Q1’18 Q2’18 Q1’17 Q2’17 Q

  46. Slide 46: Mobile Data Traffic showing very strong growth

    WIRELESS DATA USAGE (In Millions of PB) 86 PB 90% +47 PB 3 +35% Mobile Data Traffic showing very strong growth (higher than Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 industry YOY growth % Share 38% 39% 41% 40% 43% 46% in H1 2018), providing H1’17 H1’18 GROWTH a higher base for INDUSTRY 456 PB 705 PB +249

  47. Slide 47: YouTube Promo a BIG SUCCESS!

    YouTube Promo a BIG SUCCESS! 4 YouTube user adoption has reached 4.13M daily users, generating higher ARPU from both existing base and new activations Growth Subs & Qualified Base +323% Traffic Free Youtube Users +398% (Daily) Free YouTube Traffic +858% Growth Top-Up Existing Users +9% New Activatio

  48. Slide 48: Build on YouTube partnership

    5 Build on YouTube partnership and make it an even BIGGER SUCCESS with targeted Phase 2 through October 2018 Optimize Program focusing on light and medium users to further boost mobile video adoption rate 48

  49. Slide 49: Summary of 2018 1st Half Results

    Chief Revenue Office Summary of 2018 1st Half Results

  50. Slide 50: Widening our lead in Fixed, across Home and Enterprise

    Widening our lead in FIXED, across HOME and ENTERPRISE ENTERPRISE HOME Corporate Data Revenue Data Revenue In Billions of Pesos In Billions of Pesos H1 2017 H1 2018 GROWTH H1 2017 H1 2018 GROWTH Revenue Growth 10.4 11.8 +13% 10.9 13.3 +21% Market Share 67% 68% 59% 61% Revenue Growth 5.0 5.5 +9% 7.7

  51. Slide 51: Turnaround efforts in the wireless business gaining ground

    Superior LTE/ 1 Data Network Strong rebound in 2 daily prepaid top-ups Aggressive migration 3 of subs to LTE Turnaround efforts in the wireless 4 Driving Habit of Data Usage with YouTube Adoption business gaining ground Monetizing Increase in Data 5 subs and usage traffic 51

  52. Slide 52: Robust Growth Across Voyager Platforms

    Robust Growth in Unique Accounts, User Activity, and Transaction Volumes Across Voyager Platforms PayMaya unique consumer accounts grew more than 5X YoY Lendr unique consumer accounts grew 2X YoY Freenet unique consumer accounts grew 150X YoY PayMaya consumer and PayMaya merchant transaction volumes

  53. Slide 53: PLDT Group: Preliminary Guidance for 2018

    PLDT Group: Preliminary Guidance for 2018 Recurring Core Income (ex-Voyager)*: P23-24bn Capex: P58bn  To grow by P1-2bn from P22bn in 2017  To increase by P18bn from P40bn in 2017  Mainly from the combined impact of:  Focus on:  Higher EBITDA  Improving network quality and provide the customer

  54. Slide 54: Other details

    @PLOT Bsmart Other details

  55. Slide 55: PLDT Group: PFRS15 Impact on 1H18 P&L

    PLDT Group: PFRS15 Impact on 1H18 P&L PFRS 15 vs PAS 18 ITEM IMPACT REMARKS  Decrease due to re-allocation of fair value of contract asset Service Revenues (i. e., handset/device) to non-service revenues  Increase due to allocation of fair value of handset/device Non-Service Revenues based on stan

  56. Slide 56: PLDT Group: 2Q18 vs 2Q17 Financial Highlights (ex-Voyager)

    PLDT Group: 2Q18 vs 2Q17 Financial Highlights (Php in billions) Excluding Voyager 2Q2018 % Change 2Q2018 2Q2018 % Change (Pro-forma) 2Q2017 (Y-o-Y) PFRS15 (PFRS 15) (Y-o-Y) Impact Service Revenues (Net of interconnection costs) 37.2 35.3 5% 36.3 3% (0.9) EBITDA 17.2 15.7 9% 17.3 10% 0.1 Core Income

  57. Slide 57: PLDT Group: 2Q18 vs 2Q17 Financial Highlights (with Voyager)

    PLDT Group: 2Q18 vs 2Q17 Financial Highlights (Php in billions) With Voyager 2Q2018 % Change 2Q2018 2Q2018 % Change (Pro-forma) 2Q2017 (Y-o-Y) PFRS15 (PFRS 15) (Y-o-Y) Impact Service Revenues (Net of interconnection costs) 37.5 35.6 5% 36.6 3% (0.9) EBITDA 16.6 15.5 7% 16.7 7% 0.1 Core Income 7.1 12

  58. Slide 58: PLDT Group: 2Q18 vs 1Q18 Financial Highlights (ex-Voyager)

    PLDT Group: 2Q18 vs 1Q18 Financial Highlights (Php in billions) Excluding Voyager 2Q2018 % Change 2Q2018 % Change (Pro-forma) 1Q2018 (Q-o-Q) (PFRS 15) (Q-o-Q) Service Revenues (Net of interconnection costs) 37.2 36.4 2% 36.3 2% EBITDA 17.2 17.3 -1% 17.3 1% Core Income 7.7 6.7 16% 7.8 19% Telco Core

  59. Slide 59: PLDT Group: 2Q18 vs 1Q18 Financial Highlights (with Voyager)

    PLDT Group: 2Q18 vs 1Q18 Financial Highlights (Php in billions) With Voyager 2Q2018 % Change 2Q2018 % Change (Pro-forma) 1Q2018 (Q-o-Q) (PFRS 15) (Q-o-Q) Service Revenues (Net of interconnection costs) 37.5 36.7 2% 36.6 2% EBITDA 16.6 16.7 -1% 16.7 1% Core Income 7.1 6.1 16% 7.1 19% Underlying Core

  60. Slide 60: Appendix

    @PLOT Bsmart Appendix

  61. Slide 61: Subscriber Base: Mobile

    Subscriber Base: Mobile Mobile Subscribers (1) by Category: Jun-18 (2) Mar-18 (2) Dec-17 (2) Sept-17 (2) Jun-17 (2) Mar-17 (1) Mobile Subscriber Base Prepaid (2) 56,081,230 55,666,020 55,776,646 55,651,398 56,083,707 60,421,068 Smart Prepaid 20,261,130 20,198,965 20,433,351 20,537,068 20,587,687 21,

  62. Slide 62: Subscriber Base: Fixed Line and Broadband

    Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers June-18 Mar-18 Dec-17 Sept-17 Jun-17 Mar-17 Fixed Line Subscribers 2,756,865 2,707,079 2,663,210 2,614,248 2,546,992 2,487,601 Broadband Subscribers June-18 Mar-18 Dec-17 Sept-17 Jun-17 Mar-17 BROADBAND Fixed Line Broadband (1) 1,829,0

  63. Slide 63: ARPU

    ARPU Mobile ARPU, Net(1) : 2018 (2) 2017 1Q 2Q 1Q 2Q 3Q 4Q Smart Postpaid 809 813 965 985 975 961 Smart Prepaid (3) 112 116 104 109 108 110 TNT (3) 73 73 71 77 74 75 Sun Postpaid 382 403 413 412 421 428 Sun Prepaid (3) 80 82 78 82 82 85 (1) Includes Mobile Broadband subscribers (2) Using PFRS15 numb

  64. Slide 64: 1H2018: Consolidated Financial Highlights

    1H2018: Consolidated Financial Highlights 1H2018 1H2018 1H2018 Y-o-Y Y-o-Y (PFRS15) 1H2017 (Pro-forma) (PFRS 15) vs % Change % Change (Php in millions) Wireless Fixed Line Others Consolidated Consolidated Pro-forma Service Revenues (1) 41,710 39,631 279 76,361 75,383 1% 78,115 (1,754) 4% Cash Operat

  65. Slide 65: Reconciliation of Underlying Core and Reported net income

    Reconciliation of Underlying Core and Reported net income 1H2018 1H2018 1H2018 Y-o-Y Y-o-Y (PFRS15) 1H2017 (Pro-forma) (PFRS15) vs % Change % Change Pro-forma (Php in millions) Wireless Fixed Line Others Consolidated Consolidated Net Income (Losses) Attributable to Equity Holders of PLDT 4,017 6,457

  66. Slide 66: Consolidated Service Revenues

    Consolidated Service Revenues 2018 2018 1H2018 2017 Y-o-Y Y-o-Y (PFRS15) (Pro-forma) (PFRS15) vs % Change % Change Pro-forma (Php in millions) 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q 2H FY 1Q 2Q 1H Fixed Line 17,592 18,243 35,835 15,556 15,620 31,176 15,979 16,656 32,635 63,811 15% 17,588 18,252 35,840 (5) 15% LEC

  67. Slide 67: Consolidated Service Revenues and EBITDA

    Consolidated Service Revenues and EBITDA 2018 2018 2017 1Q2018 Y-o-Y Y-o-Y (PFRS15) (Pro-forma) (PFRS15) vs % Change % Change Pro-forma (Php in millions) 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q 2H FY 1Q 2Q 1H Data/Broadband/Digital Platforms 18,735 19,668 38,403 16,221 16,608 32,829 16,948 17,422 34,370 67,199 17%

  68. Slide 68: Wireless Service Revenues and EBITDA

    Wireless Service Revenues and EBITDA 2018 2018 2017 1H2018 Y-o-Y Y-o-Y (PFRS15) (Pro-forma) (PFRS15) vs % Change % Change Pro-forma (Php in millions) 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q 2H FY 1Q 2Q 1H Data/Broadband/Digital Platforms 7,021 7,167 14,188 7,281 7,627 14,908 7,555 7,614 15,169 30,077 (5% ) 7,602 7,

  69. Slide 69: Fixed Line Service Revenues and EBITDA

    Fixed Line Service Revenues and EBITDA 2018 2018 1Q2018 2017 Y-o-Y Y-o-Y (PFRS15) (Pro-forma) (PFRS15) vs % Change % Change Pro-forma (Php in millions) 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q 2H FY 1Q 2Q 1H Data/Broadband 13,187 13,234 26,421 10,574 10,885 21,459 11,111 11,724 22,835 44,294 23% 13,224 13,286 26,510

  70. Slide 70: Expenses

    Expenses 1H2018 1H2018 1H2018 Y-o-Y Y-o-Y (PFRS15) 1H2017 (Pro-forma) (PFRS 15) vs % Change % Change ( Php in millions) Wireless Fixed Line Others Consolidated Consolidated Pro-forma Operating Expenses Compensation and Employee Benefits 3,711 7,133 237 11,074 12,425 (11%) 11,074 - (11%) Repairs and

  71. Slide 71: Other Income (expenses)

    Other Income (expenses) 1H2018 1H2018 1H2018 Y-o-Y Y-o-Y (PFRS15) 1H2017 (Pro-forma) (PFRS 15) vs % Change % Change Pro-forma ( Php in millions) Wireless Fixed Line Others Consolidated Consolidated Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Beacon - - - - 886 (100%) - - (

  72. Slide 72: Earnings Per Share (EPS)

    Earnings Per Share (EPS) 1H2018 1H2017 (PFRS 15) (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 11,762 11,762 16,518 16,518 Dividends on Preferred Shares (29) (29) (29) (29) Net Income for the Period Attributable

  73. Slide 73: Balance Sheet

    Balance Sheet Consolidated (Php in millions) June 30, 2018 December 31, 2017 Total Assets 473,075 459,444 Nominal Value of Total Long-Term Debt 184,300 173,136 in US$ $3,451 $3,466 Less: Unamortized Debt Discount 490 525 Total Long-Term Debt 183,810 172,611 Cash and Short-Term Investments 56,690 33,

  74. Slide 74: Debt Profile

    Debt Profile (US$ in millions) 2016 2017 1H2018 Debt Balance 3,730 3,466 3,451 Cash and Short-Term Investments 833 668 1,061 Net Debt 2,897 2,798 2,390 Interest-Bearing liabilities December 31, June 30, 2018 2017 Unamortized Debt Change Carrying Discount/Debt Face Value Face Value Value (US$ in mill

  75. Slide 75: Foreign Exchange Risk

    Foreign Exchange Risk Forex Impact on Core Income Forex Impact of B/S Revaluation 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* 227.9 Debt (net of LT hedges & ST Forwards/opti

  76. Slide 76: 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

  77. Slide 77: PLDT Smart

    A PLDT ASmart

PLDT — H1 2018 Earnings Presentation on 6ix