Globe Telecom Inc. · PSE:GLO

Globe Telecom — 2Q/1H 2023 Earnings Presentation

26 slides from Globe Telecom's earnings presentation, Aug 15, 2023

  1. Slide 1: SEC cover sheet

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 COVER SHEET P W 0 0 0 0 1 1 7 7 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:

  2. Slide 2: SEC Form 17-C Current Report

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 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 1. 14 August 2023 Date of Report (Date of earliest event reported) 2. 1177 3. 000

  3. Slide 3: 2Q/1H 2023 Analysts' Briefing

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 2Q/1H 2023 Analysts’ Briefing 15 August 2023 | The Globe Tower + Zoom

  4. Slide 4: Sustained topline improvement on data revenue growth and non-telco contribution

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Sustained topline improvement on the back of data revenue growth as well as robust contribution from non-telco services SERVICE REVENUES EBITDA NORMALIZED NIAT ▲2% ▲14% ▲5% ▲1% ▼3% ▼5% Consolidated revenues rose +2% YoY, EBITDA relatively fl

  5. Slide 5: Non-telco businesses sustained YoY growth

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Non-telco businesses sustained YoY growth, equivalent to 3.5% of conso GSR; Mynt now contributes 5.1% of Globe NIBT TOTAL 1H23 NON-TELCO REVENUES YoY Change ▲36% ▲123% ▲50% ▲66% ▲52% 2.8Bn in Revenue Php Contribution +52% YoY to GSR 1.6% 0.6

  6. Slide 6: Mobile business sustained 1% growth YoY on data consumption

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Mobile business sustained 1% growth YoY driven by increased mobile data consumption MOBILE SUBSCRIBERS Solid topline mn 82.9 ▼5% YoY ▼2% QoQ 54.8Bn Php Voice growth despite the extended SMS macroeconomic MOBILE DATA USERS ▲1% YoY ▲2% QoQ Dat

  7. Slide 7: Globe logged over 53.7Mn SIM registrants

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Globe logged over 53.7Mn SIM registrants, which covers over 99% of its revenue generating base Globe has logged over 53.7Mn SIM registrants as of July 30, 2023 ● Equivalent to 62% of our total number of subscribers as of December 2022 ● Repr

  8. Slide 8: Fiber Broadband expanded 23% YoY

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Fiber Broadband expanded by 23% YoY, cushioning the decline from legacy and fixed wireless products Fixed Fixed Total Home Php Wired Wireless Broadband 12.8Bn Subscribers (in Mn) 1.1 1.1 2.2 ▼7% YoY YoY Change in ▼4% QoQ Subs ▲4% ▼49% ▼31% Y

  9. Slide 9: Corporate Data revenues up 11% YoY

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Corporate Data revenues up 11% YoY driven by 36% YoY growth in ICT revenues 1H23 CORP DATA REVENUES Php 9.1Bn ▲11% YoY | ▲1% QoQ CORE CLOUD BUSINESS APP CYBERSECURITY DATA CENTER BIG DATA & IOT ACCOUNTS SOLUTIONS SOLUTIONS SERVICES SERVICES

  10. Slide 10: Globe invested Php38Bn in CAPEX for infra development

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Globe invested Php38Bn in CAPEX for infra development, lower YoY consistent with efforts to deliver positive free cash flow 6M23 542 CAPEX BREAKDOWN (in Php Bn) CAPITAL EXPENDITURES Php 37.7Bn NEW CELL 101.4 SITES BUILT 92.8 5,087 60.3 71.5

  11. Slide 11: PO issuances dropped significantly in 2023

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 To ensure CAPEX spend goes down, Globe PO Issuances have likewise significantly dropped in 2023 Purchase Order (PO) Issuances CAPEX BREAKDOWN (in Php Bn) (in Php Bn) Over Php373Bn or S$7.0Bn POs issued 373 from 2019 - 2022 from aggressive an

  12. Slide 12: Ookla, Brand Finance recognize Globe's network and brand

    Ookla, Brand Finance recognize Globe’s commitment to DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 delivering only the best and most reliable connectivity to all its customers Based on analysis by Ookla® of Globe has been named the Speedtest Intelligence®, Globe Philippines' strongest b

  13. Slide 13: Ubiquitous and Relevant

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Ubiquitous and Relevant Driving digitalization of the financial ecosystem in the country An essential part of the Largest digital financial Most trusted & loved brand Filipinos’ daily lives ecosystem in the Philippines June Average Daily Act

  14. Slide 14: Unlocking Financial Services for Filipinos

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Unlocking Financial Services for Filipinos Empowering Filipinos to build a Better & Brighter Future Building Lives Providing Fostering Trust through Lending Peace of Mind through Wealth Management GCredit, GLoans GInsure GSave GFunds and GGi

  15. Slide 15: Sustaining Trust of Filipinos

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Sustaining Trust of Filipinos through innovation, education and collaboration Bringing Trust and Security to the Forefront Strengthened Collaboration 4M Double Safe with Government Agencies Heightened alert against cybercrimes, Fraud account

  16. Slide 16: Innovating to Provide Greater Access

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Innovating to Provide Greater Access For Democratizing Financial Services Local Stocks GCrypto + Trading NFTs For Bringing Families Together GCash Global Regional Regional Overseas Pay Pera Outlets BIllers For Levelling Up Customer Experienc

  17. Slide 17: STT GDC Philippines broke ground on STT Fairview data centre campus

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 STT GDC Philippines broke ground on STT Data Centre campus with designed IT capacity of 124 MW once fully built out STT FAIRVIEW Ground Breaking last May 2023 • To span over 83,000sqm & will be rolled out in four phases • Strategically locat

  18. Slide 18: 917Ventures expanding ecosystem with 14 portfolio companies

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 917Ventures continue to build the group’s future through an expanding ecosystem with 14 companies now in its portfolio Spun-off 3 new Notable highlights of portfolio companies some of our current portfolio Fast and accessible pet Broken 1,40

  19. Slide 19: Financial Highlights

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 FINANCIAL HIGHLIGHTS Xx

  20. Slide 20: Topline expansion driven by data; Core NIAT down YoY

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Topline expansion driven by data; Core NIAT of Php10Bn down YoY due to higher OPEX and lower non-operating income Sequential 1H 2022 2H 2022 1H 2023 %Change 1Q 2023 2Q 2023 QoQ % Gross Service Revenues 78,880 79,099 80,401 +2% 39,982 40,419

  21. Slide 21: EBITDA margin still well within guidance for the year

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 EBITDA margin still well within guidance for the year as network cost increases were partly offset by strong topline performance YoY (in Php Mn) QoQ (in Php Mn)

  22. Slide 22: First closing of 115 towers with Unity for Php1.4Bn

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Globe achieved the first closing of 115 towers with Unity for Php1.4Bn last July PhilTower MIDC Frontier Unity Total February April 1,306 towers in 2,180 towers in Luzon; Portfolio Luzon 2,223 guyed towers 1,350 Towers in Visayas and Mindana

  23. Slide 23: 3Q23 Dividends

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Globe BOD approved 3Q23 dividend of Php25.00/sh, proof of commitment to a sustainable dividend policy Globe Telecom distributes cash 3Q23 DIVIDENDS dividends to it shareholders at 25.00 the rate of 60% to 75% of prior PhP/ sh year’s core net

  24. Slide 24: Key ratios healthy and within bank covenants

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Key ratios still healthy and in-line with peers despite the challenging environment; comfortably within bank covenants 2Q 2023 FY 2022 Cash (in Php Bn) 25.4 18.0 Gross Debt (in Php Bn) 250.0 233.2 Gross Debt to Equity (Max of 3:1) 1.57x 1.53

  25. Slide 25: Revised 2023 Consolidated Outlook

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Revised 2023 Consolidated Outlook; tempered topline but significant steps taken to achieve sustainable positive cash flows sooner SERVICE REVENUES EBITDA MARGINS CAPEX Mid to Low single digit growth ~50% USD 1.3B OTHER CONSIDERATIONS ● Tower

  26. Slide 26: Thank you!

    DocuSign Envelope ID: 0238710B-1857-4E25-812A-CD59AA07A909 Thank you! Xx

Globe Telecom — 2Q/1H 2023 Earnings Presentation on 6ix