Slide 1: SEC receiving barcode page
Tel:(632) 726-0931 to 39 Fax:(632) 725-5293 Email: mis@sec.gov.ph Barcode Page The following document has been received: Receiving Officer/Encoder : Jojit Licudine Receiving Branch : SEC Head Office Receipt Date and Time : August 04, 2016 03:17:04 PM Received From : Head Office Company Representativ
Slide 2: SEC Cover Sheet
COVER SHEET P W 0 0 0 0 1 1 7 7 SHEET G L O B E T E L E C O M , I N C . (Company's Full Name) 2 7 / F T H E G L O B E T O W E R 3 2 N D S T R E E T C O R N E R 7 T H A V E N U E B O N I F A C I O G L O B A L C I T Y T A G U I G (Business Address: No. Street City / Town / Province) ROSEMARIE MANIEGO-
Slide 3: 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 MSE 2016 ufemtumnnanintnttnnnnee Report (Date of earliest event reported) NTE em nninnenmngeminunnvsne, 3 .Q00-768-480-000 SEC Identificatio
Slide 4: Globe Telecom, Inc. 2Q16 Analysts' Briefing
Globe Telecom, Inc. 2Q16 Analysts’ Briefing 3 August 2016 | The Globe Tower
Slide 5: Performance Highlights
Performance Highlights 1H16 2Q16 29.7 Service Revenues 59.6 Service Revenues • 2Q16 and 1H16 YoY increases are driven primarily by data-related +11% revenues (mobile data, home +8% YoY broadband and corporate data) vs 2Q15 Php billion Php billion 12.5 EBITDA 25.6 EBITDA • 1H16 YoY increases driven b
Slide 6: Revenue growth remains broad-based
Revenue growth remains broad-based mobile home broadband corporate data fixed line voice total 1H16 vs. 1H15 +3% +49% +55% +29% +11% 2Q16 vs. 2Q15 -1% +47% +56% +28% +8% mobile subscribers home broadband subscribers 56.2 million +9% 61.3 million 1.1 million +6% 1.13 million YE15 1H16 YE15 1H16 3
Slide 7: Data remains key growth driver
Data remains key growth driver: Demand for connectivity prevalent across mobile, home broadband, and corporate data mobile data revenues Total data 2Q16 1H16 revenues now 17.8 1H16 8.6 50% comprise +33% +46% 50% of total vs 2Q15 vs 1H15 revenues vs Php billion Php billion 37% in 1H15 home broadband
Slide 8: New partnerships, products and devices to seed data adoption
New partnerships, products and devices aimed to further seed data adoption and the digital lifestyle MDS users as a % of mobile subscribers Globe sustains its edge as the digital lifestyle brand with new content 1H16 partners, Globe Studios and Globe Live 1H15 37% +7 ppts 44% wireless data traffic 1
Slide 9: Ongoing roll-out of LTE service using 700 and 2500 MHz frequencies
Globe’s ongoing roll-out of LTE service using the 700 and 2500 MHz frequencies addresses the public’s clamor for faster and better mobile internet service • Last May 30, Globe acquired SMC’s telecommunications assets, which include the 700 and 2500 MHz frequencies. • Consistent with strategies to im
Slide 10: Challenges and successes as we gear up for second half of 2016
Taking stock of our challenges and successes so far as we gear up for the second half of 2016 Challenges • Market competition fiercer than ever, with the incumbent gearing to take back market share • Voice and SMS revenues continue to soften, with the increasing scale of mobile data adoption expecte
Slide 11: Financial Highlights
Financial Highlights
Slide 12: Consolidated Financial Highlights
Consolidated Financial Highlights (in Php Mn) 1H 2016 1H 2015 YoY % 2Q16 1Q16 QoQ% Gross Service Revenues 59,569 53,830 11% 29,702 29,867 -1% OPEX & Subsidy* (33,971) (31,115) 9% (17,171) (16,800) 2% EBITDA 25,598 22,715 13% 12,531 13,067 -4% EBITDA Margin 43% 42% 42% 44% Depreciation (11,458) (9,09
Slide 13: EBITDA growth YoY and decline QoQ drivers
The 13% growth in EBITDA YoY resulted from P5Bn revenue growth, slightly offset by increases in OPEX mostly from network and staff costs - - - - 111 1,087 223 1,407 474 5,739 YoY Change +13% in EBITDA (in Php Millions) 22,715 25,598 6M15 EBITDA Inc. in Inc. in Inc. in Staff Dec. in Inc. in Network I
Slide 14: Capital expenditures at approximately Php17 Billion
Capital expenditures at approximately Php17 Billion or USD 370.4 Million*, with majority of the investments related to data requirements CAPEX* (in Php Bn) 32.1 32% 35% 29.1 49% 48% 68% 21.2 36% 50% 17.0 27% 30% 15% 11% 10% 8% 9% 9% 9% 15% 15% 15% 12% 2012 2013 2014 2015 6M16 2013 2014 2015 6M16 Bus
Slide 15: Gross Debt at Php 88.1 Billion, within covenant ratios
Gross Debt at Php 88.1 Billion, comfortably within covenant ratios Gross Debt 88,136 Gross Debt/EBITDA 1.74 (in Php Millions) 65,276 72,229 (Covenant = 3:1) 1.66 1.51 2014 2015 6M16 2014 2015 6M16 Increase in debt is due to Php12.9bn in short- term loans availed in 2Q16 for the SMC acquisition Conse
Slide 16: 3Q16 Cash Dividend and Total Shareholder Return
3Q16 Cash Dividend and Total Shareholder Return 3Q16 Dividends 2016 Total Shareholder Return Up 6% YoY and represents ~77% of 2015 Core Net Income 21.5% 25.4% on an annualized basis Cash Dividend per Common Share: Php22.00 Record Date: August 16, 2016 3.9%** Payment Date: September 1, 2016 Div Yield
Slide 17: Globe - Creating a Wonderful World
A £ Globe 1 Creating a Wonderful World
Slide 18: Historical Consolidated Gross / Net Service Revenues and EBITDA Margin
Appendix 1 Historical Consolidated Gross / Net Service Revenues and EBITDA Margin 2014 2015 2016 (In Million Pesos) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q CONSOLIDATED SERVICE REVENUES Mobile 19,346 20,382 20,874 21,959 21,635 22,826 23,052 23,730 23,064 22,679 Mobile Voice 8,710 8,738 8,530 9,016 9,191 9,55
Slide 19: Restated figures for Subscribers, Net adds, Churn Rate and ARPU
Appendix 2 Restated figures for Subscribers, Net adds, Churn Rate and Gross APRU for the Mobile Segment 2015 2016 Subscribers 1Q 2Q 3Q 4Q 1Q 2Q Globe Postpaid 2,458,045 2,517,215 2,561,290 2,597,027 2,564,148 2,521,218 Globe Prepaid 22,214,373 23,287,012 24,391,990 25,915,096 25,452,193 27,381,884 T
Slide 20: Reconciliation of Net Income to Core Net Income
Appendix 3 Reconciliation of Net Income to Core Net Income (in Million Pesos) 2Q16 2Q15 % Change 1Q16 % Change Reported Net Income After Tax 4,639 4,507 3% 4,335 7% Deferred Tax on Unexercised (6) (50) -89% (28) -80% Stock Options Add (deduct) Forex loss (gain) 27 (13) -309% (174) -115% Other Adjust