PLDT, Inc. · PSE:TEL
PLDT — H1 2023 Earnings Presentation
59 slides from PLDT's earnings presentation, Aug 3, 2023
Slide 1: First Half 2023 Financial and Operating Highlights
First Half 2023 Financial and Operating Highlights 3rd August 2023
Slide 2: Reaffirmed top position for brand value and sustainability perception value
Reaffirmed top position for brand value and sustainability perception value Most Valuable Highest Sustainability Brand Perception Value USD 2.6B USD 222M Source: Brand Finance, July 2023 2
Slide 3: The undisputed fastest integrated network
The undisputed fastest integrated network Leader in Fixed for FIVE years Best Mobile Network for THREE consecutive semesters These citations also support our goal of enabling the digital transformation of corporations and SMEs serviced by PLDT Enterprise 3
Slide 4: PLDT Smart further reinforced its core infrastructure
PLDT Smart further reinforced its core infrastructure Homes Passed Domestic and International Fiber Footprint +6% 17.2 M VS. SPLY 16.2M; +1M +4% 1.12M VS. SPLY 1.07M; +47K The fastest and most extensive network in the country 4
Slide 5: A Testament to a Solid 1st Half
A Testament to a Solid 1st Half Telco Core Net Service Revenues EBITDA* 17.6B 94.5B 52.1B +3% vs. SPLY 17.1B +1% vs. SPLY 93.7B +3% vs. SPLY 50.5B ALL-TIME HIGH EBITDA MARGIN 53% vs. SPLY 52% *EBITDA is ex-MRP 5
Slide 6: Our business pillars are driving steady growth
Our business pillars are driving steady growth INDIVIDUAL HOME ENTERPRISE Solidifying strength in key Leading the market despite Elevating companies by enabling segments and services challenges transformation Data Revenue Fixed Revenue Data Center Colocation +4% +3% +23% Data Traffic* Fiber Revenue
Slide 7: Embedding ESG in the company's DNA
Embedding ESG in the company’s DNA ENVIRONMENT SOCIAL GOVERNANCE • Implementing our decarbonization • Ensuring product safety and • Communicating Progress and Using roadmap championing cybersecurity of our PLDT’s Voice to Champion o Focus on energy efficiency customers and children Sustainability o
Slide 8: Enabling a connected, empowered, and progressive Philippines
Enabling a connected, empowered, and progressive Philippines EDUCATION DISASTER RESPONSE SPECIAL PROJECTS Recognizing the value education provides Providing immediate relief assistance to Aiding in economic and social to uplift the lives of the Filipino our kapatids affected by natural disasters ent
Slide 9: Disaster Response: An Integral Business Imperative
Disaster Response: An Integral Business Imperative Typhoon Egay Response Bolstering Agricultural Resilience Turnover 3,000 relief packs to the provinces of Part of Typhoon Odette Recovery Program, turnover of the Liboron Organic Ilocos Norte Cagayan, Abra, and Bulacan Farmers And Cacao Growers (Lofc
Slide 10: Stronger than ever!
APLDT ie) years Stronger than
Slide 11: Financials
Financials
Slide 12: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights (Php (Php in in bn)bn) 1H2023 1H2022 1H2023 vs 1H2022 Service Revenues 94.5bn 93.7bn 1% (net of interconnection costs) +0.9bn Cash Opex, Subsidies, Provisions 42.4bn 43.2bn 2% (ex-MRP) -0.8bn * excl Provisions: ₱40.3bn, -₱0.7bn or -2% Provisions 2.1bn 2.2bn EBITDA 52
Slide 13: PLDT Group: Consolidated Service Revenues
PLDT Group: Consolidated Service Revenues (Php in bn) 1H2023 1H2022 (1) 1H 2023 vs 1H 2022 Individual 40.2bn 40.3bn -0.1bn Fiber only 25.7bn 3% Home 30.1bn 29.2bn 11% +0.9bn +2.4bn Enterprise 23.2bn 22.6bn 2% +0.6bn Consumer and Enterprise 93.4bn 92.1bn 1% +1.3bn International and Carrier 1.5bn 29%
Slide 14: Home: Fiber revenues maintain double-digit growth
Home: Fiber revenues maintain double-digit growth Total Home Total Fiber 3% 11% ➢ 1H 2023: ₱30.1bn 1H 2023: ₱25.7bn 2Q2023 revenues 1% higher vs 2Q2022 +2.4bn ▪ Fiber only revenues up 7% +0.9bn 1H 2022: ₱23.3bn 1H 2022: ₱29.2bn ➢ 1H2023 fiber net adds (123K) were 9% higher vs 2H2022 net adds (113K)
Slide 15: Enterprise: Data and ICT remain key business drivers
Enterprise: Data and ICT remain key business drivers ➢ 1H23 revenues rose 2% year-on-year: 2% 1H 2023: ₱23.2bn ▪ Corporate data revenues grew 7% +0.6bn due to higher fiber, managed IT and i- 1H 2022: ₱22.6bn Gate revenues ▪ ePLDT/ICT rose 13% mainly from data center and cloud services 2Q2023 vs 2Q20
Slide 16: Individual: Strong 2Q2023
Individual: Strong 2Q2023 Total Individual ➢ Revenues in 2Q2023 were the highest in the last four quarters 1H 2023: ₱40.2bn ▪ 2Q2023 stable year-on-year despite election -0.1bn spend in 2Q2022 1H 2022: ₱40.3bn ▪ 3% lift quarter-on-quarter underpinned by 2% growth in prepaid and 7% in postpaid ➢ Ookl
Slide 17: Data/broadband: 82% of Consolidated Revenues
Data/broadband: 82% of Consolidated Revenues 2023 vs 2022 (Php in bn) ILD (1%) 2.5 0.8 2% Mobile Data ₱36.5bn 13.7 +0.8bn 5% 1H2023 Home Broadband ₱26.1bn +1.2bn ₱94.5bn Data/Broadband 7% (82%*) 4% Corporate Data ₱ 12.5bn +0.8bn 77.5 +3.1bn * 1H22: 79% 13% % of data/broadband per segment ICT ₱ 2.4bn
Slide 18: Consolidated EBITDA (ex-MRP): Hitting a new all-time high
Consolidated EBITDA (ex-MRP): Hitting a new all-time high 1H 2023: ₱52.1bn 3% + ₱0.9bn rise in revenues (Margin: 53%) + ₱0.8bn reduction in costs +1.6bn 1H 2022: ₱50.5bn (Margin: 52%) 2Q2023 vs 2Q2022 +0.1bn +4% (Php in bn) 25.5 25.0 25.0 25.1 26.0 26.1 +1.1bn 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1H23 vs 2
Slide 19: Telco Core Income: In-line with guidance
Telco Core Income: In-line with guidance + Higher EBITDA by ₱1.6bn 1H 2023: ₱17.6bn 3% + Lower Depreciation by ₱0.2bn +0.5bn - Increase in Financing Costs by ₱0.9bn 1H 2022: ₱17.1bn - Higher Provision for Income Taxes by ₱0.8bn 2Q2023 vs 2Q2022 +3% +0.3bn (Php in bn) 8.9 8.5 8.6 8.9 8.2 7.7 1Q22 2Q2
Slide 20: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income 1H 2023 1H 2022 2023 vs 2022 3% Telco Core Income 17.6bn 17.1bn +0.5bn Share in Voyager/Bank Hold Co Loss (1.2bn) (1.6bn) +0.4bn Voyager Gain on Dilution, net of tax --- 0.5bn -0.5bn 16.4bn 16.0bn 2% Telco Core Income + Voyager +0.4bn Gain from sale and lea
Slide 21: PLDT Group: Capital Management
PLDT Group: Capital Management Interim Regular Cash Dividend ₱49/share Declaration Date: Record Date: Payment Date: 3 August 2023 17 August 2023 1 September 2023 ➢ Focus on delivering positive free cash flow and deleveraging ➢ Total dividends paid (2005 – 2022): ₱496.4bn 2023 Interim Cash Dividend T
Slide 22: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (PHP in billions) (PHP in billions, 30 June 2023) Net Debt Net Debt-to-EBITDA* Gross Debt ₱ 253.3bn 2.48x ₱ 270.3bn (1Q2023: 2.18x) 146.8 255.4 228.7 251.9 225.7 270.3 253.3 26.8 26.2 17.0 25.9 11.9 23.1 15.2 26.9 20.5 2021 2022 Jun-23 20
Slide 23: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) Business Capex 24% 9% ➢ Capex guidance for 2023: ₱80-85bn Network/IT +7.8bn 96.8 ▪ Includes fresh capex and impact of prior year’s Data Center and 89.0 Subsidiaries commitments 12.2 -5.3 ▪ Investment in capacity to drive revenue growth and support 17.5 84.6
Slide 24: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights Extensive Fixed Network Reach Presence TOTAL HOMES PASSED 69% FTTH COVERAGE TOTAL FTTH CAPACITY* TOTAL FIBER FOOTPRINT (Million Homes) (Barangays ‘000) (Million Ports) (Thousand Cable Kilometers Laid) *excluding VVDSL of 0.93mn (1H2023) Internati
Slide 25: Smart: 5G Highlights
Smart: 5G Highlights Connected Unique Devices Data Traffic In ‘000 In TB (Total for the Quarter) +1,447% +16,817% +11% 3,891 49,720 3,492 46,532 3,072 39,781 2,114 2,511 31,166 22,735 1,583 1,176 16,098 759 9,752 376 520 5,686 252 294 944 2,627 Dec-20Mar-21 Jun-21 Sep-21Dec-21Mar-22 Jun-22 Sep-22Dec
Slide 26: Maya: #1 Fintech Ecosystem in the Philippines
Maya: #1 Fintech Ecosystem in the Philippines Recognized globally: #1 Digital bank Most number of depositors, largest deposit base among digital banks in PH #1 Merchant acquirer Largest merchant acquirer, QR PH leader #1 Rated finance app Among local finance apps in PH Winner Best Virtual Bank - Phi
Slide 27: All-in-One Digital Banking Solutions for every Filipino
All-in-One Digital Banking Solutions for every Filipino Consumers MSMEs/Retail SMEs Maya Save BETA Negosyo Business Personal Advance Deposit Goals Maya BETA Credit Negosyo Maya InstaCash Flexi Loan BNPL BETA Pay-in-4 Banking embedded in payments Maya Wallet Maya Business App, QR Terminal, Payment Ga
Slide 28: Leader in All-in-One Digital Banking
Leader in All-in-One Digital Banking Deposit Cumulative # of Depositors Balance Loans Disburse Fastest-growing digital bank ~2.3 M 25 B >10 B Data as of end-June 2023 Total # of Total Total Deposit Balance Accounts Depositors #1 among digital banks Based on BSP data 61% 46% 71% as of end-March 2023
Slide 29: Empowering SMEs with the 1-2-3 Grow Bundle
Empowering SMEs with the 1-2-3 Grow Bundle Get a 1% Earn 2.5% Get a loan offer MDR discount interest p.a. in 3 months On all payments with Maya with Maya Flexi Loan Business Deposit *Terms and conditions apply. 29
Slide 30: PLDT Group: 2023 Outlook/Guidance
PLDT Group: 2023 Outlook/Guidance ➢ Low-teen growth in fiber revenues ➢ Momentum for Enterprise revenues to continue, underpinned by ICT Service Revenue Growth Low-single digit growth ➢ Challenging but improving environment for mobile industry ➢ Supported by top line growth and EBITDA Low-single dig
Slide 31: Other Details
Other Details
Slide 32: Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income
Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income Higher Lower Svc Rev Cash Opex, Lower Subsidies Depn EBIT (net of IC) net 50.5 +0.9 +0.7 +0.1 52.1 24.1 7% 28.1 EBITDA 3% +1.9bn (ex-MRP) +1.6bn (Php in bn) 1H 2022 1H 2023 1H 2023 EBITDA margin EBIT margin 52% 53% 28% (vs 2022: 27%) Higher Lo
Slide 33: ePLDT Data Center Business: Key Highlights
ePLDT Data Center Business: Key Highlights 10 4 600+ Gbps sites TIA-942* rated 3 certified facilities Premium access to Smart and PLDT strategically spread across PH eyeballs 8,930 27.9MW 500GB Full capacity racks Peak local peering traffic Aggregated IT power Host to 4 of PH’s top IXs 7,477 ready c
Slide 34: PLDT Group: Subscriber Base
PLDT Group: Subscriber Base (in ‘000) (in ‘000) Broadband Fixed Line Mobile 2% 5% 3,902 3,992 3,824 3,825 62,954 66,305 -91K -3,351K Cellular 61,903 65,215 -5% Fixed 3,294 +46K 3,248 +1% Prepaid 59,892 63,263 -5% Postpaid 2,010 +58K 1,952 +3% Fiber 3,056 +123K 2,934 +4% Mobile Broadband 1,051 1,090
Slide 35: PLDT Group: Broadband Subscriber Base
PLDT Group: Broadband Subscriber Base Fiber Only: Gross Connects and Migrations (Monthly ave. per qtr, in ‘000) 2022 2023 Subscribers (in '000) 1Q 2Q 3Q 4Q FY2022 1Q 2Q YTD 2023 Fixed Broadband 20 35 Gross 281 272 287 278 1,118 225 197 422 31 Churn (114) (205) (246) (272) (837) (192) (184) (376) 24
Slide 36: #ConnectedWithNature #BeKind.Recycle.
#ConnectedWithNature Scan for 1Q2023 #BeKind.Recycle. ESG highlights
Slide 37: PLDT: Highest Sustainability Perception Value in the Philippines per Brand Finance
PLDT: Highest Sustainability Perception Value (SPV) in the Philippines per Brand Finance* ➢ Brand Finance named PLDT as the #1 Most Valuable Filipino Brand (valued at US$2.6bn) ➢ SPV: Indicates how much brand value a company has that is tied up in sustainability perceptions among stakeholders ➢ Init
Slide 38: Environment: Championing Circularity (Focus on Plastic and e-Waste)
Environment: Championing Circularity (Focus on Plastic and e-Waste) UNGC/GCNP’s Planet Pillar: Be Kind. Recycle. Webinar: Webinar and Community engagement Circularity, Solid Waste Management and (PLDT/Smart as co-Lead) Recycling (June 27, 2023) Together with private sector partners from the Planet P
Slide 39: Environment: Advocating responsible management of e-waste
Environment: Advocating responsible management of e-waste e-waste drive at PLDT and Smart offices (June 26 – 29, 2030) PLDT RCB 9/F Canteen Smart Tower Lobby ➢ In partnership with DENR-EMB (Environmental Management Bureau), UNIDO, EcoWaste Coalition and the Global Economic Facility (GEF), PLDT and S
Slide 40: Social: Diversity and Inclusion in the Workplace
Social: Diversity and Inclusion in the Workplace Celebrating the Pride Month PLDT and Smart recognized by PBCWE (June 21, 2023) PLDT and Smart’s various activities in celebration of Pride Month (June) ➢ PLDT and Smart were recognized by The Philippine Business Coalition for Women Empowerment (PBCWE)
Slide 41: Social: Diversity and Inclusion in the Community
Social: Diversity and Inclusion in the Community PLDT and Smart push for #Inclusive Technology ➢ PLDT and Smart have partnered with ATRIEV* for a 10 day training for visually impaired persons ✓ Topic: How to use smartphones with a screen reader ✓ Trainers were also visually impaired * ATRIEV is a no
Slide 42: Governance: Communicating Progress and Using PLDT's Voice to Champion Sustainability
Governance: Communicating Progress and Using PLDT’s Voice to Champion Sustainability 2022 Sustainability Report (SR) PLDT/Smart Presenter/Panelist at the Business World Economic Forum: Importance of Embracing Sustainability and Digital Transformation for Enterprise (May 25, 2023) ➢ 2022 Sustainabili
Slide 43: Governance: Communicating Progress and Using PLDT's Voice to Champion Sustainability
Governance: Communicating Progress and Using PLDT’s Voice to Champion Sustainability PLDT/Smart join the “Strengthening Good Governance Discussion with NTT on Sustainability Global in Supply Chain” Business Rountdable practices and possible areas for collaboration (April 25, 2023, GCNP’s Planet Pill
Slide 44: Appendix
@ PLDT APPENDIX
Slide 45: Subscriber Base: Mobile
Subscriber Base: Mobile Mobile Subscribers by Category: (1) (1) Net Adds (Reductions) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 1H2023 vs YE2022 (2) Mobile Subscriber Base Prepaid 60,891,135 62,999,637 64,287,019 65,972,119 67,365,162 (3,395,884) (5%) Smart Prepaid 23,486,725 24,044,239 24,394,379 25,103,6
Slide 46: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Net Adds Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 1H2023 vs YE2022 Fixed Line Subscribers 3,823,629 3,828,445 3,825,424 3,835,305 3,821,296 (1,795) - Broadband Subscribers Net Adds Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 1H2023 vs YE2022 BROADBAN
Slide 47: ARPU
ARPU Mobile ARPU, Net(1) : 2023 2022 1Q 2Q 1Q 2Q 3Q 4Q Smart Postpaid 678 691 786 723 699 705 Smart Prepaid 107 109 99 104 106 109 TNT 86 92 82 86 85 86 Sun Postpaid 547 514 440 580 458 581 (1) Includes Mobile Broadband subscribers Broadband ARPU, Net : 2023 2022 1Q 2Q 1Q 2Q 3Q 4Q (2) Fixed Line Bro
Slide 48: Consolidated Financial Highlights
Consolidated Financial Highlights 1H2023 Y-o-Y 1H2022 Wireless Fixed Line Others Consolidated % Change (Php in millions) (1) Service Revenues 47,022 59,386 - 99,251 96,500 3% (2) Cash Operating Expenses 19,059 27,589 7 44,443 47,551 (7%) Subsidies and Cost of Services 1,684 1,230 - 2,903 2,118 37% P
Slide 49: Consolidated Service Revenues
Consolidated Service Revenues 2023 2022 % Change 1H2023 vs 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q 2H FY (Php in millions) 1H2022 Fixed Line 26,541 26,032 52,573 24,183 24,796 48,979 25,443 25,862 51,305 100,284 7% LEC 3,459 3,317 6,776 3,492 3,491 6,983 3,388 3,475 6,863 13,846 (3%) Fixed Line Voice - Internationa
Slide 50: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2023 2022 % Change 1H2023 vs 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q 2H FY (Php in millions) 1H2022 Data and Broadband 38,602 39,052 77,654 36,374 38,145 74,519 38,392 38,993 77,385 151,904 4% Home Broadband 12,976 13,120 26,096 12,022 12,862 24,884 13,037 13,051 26,088 50,9
Slide 51: Wireless Service Revenues
Wireless Service Revenues 2023 2022 % Change 1H2023 vs 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q 2H FY (Php in millions) 1H2022 Data/Broadband 18,604 18,841 37,445 18,129 18,782 36,911 18,610 18,676 37,286 74,197 1% Mobile Data 18,196 18,412 36,608 17,556 18,255 35,811 18,132 18,226 36,358 72,169 2% Mobile Internet 1
Slide 52: Fixed Line Service Revenues
Fixed Line Service Revenues 2023 2022 % Change 1H2023 vs 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q 2H FY (Php in millions) 1H2022 Data/Broadband 22,981 23,249 46,230 22,781 24,246 47,027 26,584 16,457 43,041 90,068 (2%) Home Broadband 12,574 12,698 25,272 11,457 12,344 23,801 12,566 12,608 25,174 48,975 6% Corp. Data
Slide 53: Expenses
Expenses 1H2023 1) Y-o-Y 1H2022 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Repairs and Maintenance 7,549 7,639 - 14,563 13,618 7% Compensation and Employee Benefits 3,739 9,704 - 13,429 17,909 (25%) Professional and Other Contracted Services 2,102 2,365 1 3
Slide 54: Other Income (expenses)
Other Income (expenses) Other income (xpenses) 1H2023 (1) Y-o-Y 1H2022 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Multisys - - - - (73) (100%) Vega - - 15 15 43 (65%) Voyager - - (1,235) (1,235) (1,465) (
Slide 55: Earnings Per Share (EPS)
Earnings Per Share (EPS) 1H2023 1H2022 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT Continuing Operations 18,480 18,480 16,847 16,847 Discontinued Operations (29) (29) (61) (61) Net Income Attributable to Equit
Slide 56: Balance Sheet
Balance Sheet Consolidated (Php in millions) June 30, 2023 December 31, 2022 Total Assets 624,627 624,162 Nominal Value of Total Debt 270,309 251,859 Less: Unamortized Debt Discount 2,240 2,279 Total Debt 268,069 249,580 (1) Cash and Short-Term Investments 17,047 26,190 Net Debt (2) 253,262 225,669
Slide 57: Debt Profile
Debt Profile December 31, June 30, 2023 2022 Change Carrying Unamortized Debt Face Value Face Value Value Discount/Debt Issuance (Php in millions) Debt PLDT ₱166,092 ₱1,252 ₱167,344 ₱158,052 ₱9,292 Smart 98,999 966 99,965 93,807 6,158 ePLDT 2,978 22 3,000 - 3,000 Total Debt ₱268,069 ₱2,240 ₱270,309
Slide 58: Forward-looking statements disclaimer
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
Slide 59: ‘oan
‘oan