Slide 1: 1Q 2023 Analysts' Briefing
1Q 2023 Analysts’ Briefing 8 May 2023 | The Globe Tower + Zoom
Slide 2: Service revenues and EBITDA maintain growth momentum despite economic headwinds
Service revenues and EBITDA maintain growth momentum despite economic headwinds; EBITDA margin above guidance Service Revenues EBITDA Normalized Net Php Bn Php Bn Income Php Bn 40.0 +2% YoY | = QoQ 20.5 +4% YoY | +9% QoQ 5.1 = YoY | +55% QoQ Revenue growth driven by data- EBITDA growth as topline gr
Slide 3: Robust performance of non-telco businesses continues
Robust performance of non-telco businesses continues, contributing 3.6% of GSR and 4.2% of income before tax Php TOTAL 1.4B YoY Change +99% +93% +52% +84% +80% 1Q23 Non-telco in Revenue Revenue +80% YoY Contribution to GSR 1.5% 0.7% 0.7% 0.6% 3.6% Vega TOTAL Php Equity Share in Affiliates 0.4 0.1 0.
Slide 4: Mobile business up 1% YoY with record mobile data revenues
Mobile business up 1% YoY with record mobile data revenues offsetting declines in mobile voice and mobile SMS MOBILE MOBILE MOBILE Php DATA VOICE SMS Mobile Voice Mobile SMS Mobile Data 27.1B 1Q23 Mobile Revenues Revenue (in Php bn) 21.7 3.4 2.0 +1% YoY +1% QoQ YoY Change +4% -12% -7% QoQ Change +2%
Slide 5: Globe welcomes SIM Registration 90-Day Extension
Globe welcomes SIM Registration 90-Day Extension Update on SIM Card Registration Act • Globe has logged over 43.5mn prepaid SIM registrants to date • Globe applauds DICT for extending the SIM registration deadline, giving millions of unregistered customers more time to comply with the law. • Globe a
Slide 6: Home broadband: Fixed Wired revenues up by 13%
Home broadband: Fixed Wired revenues up by 13% behind strong Postpaid Fiber performance FIXED FIXED TOTAL HOME Php WIRED WIRELESS BROADBAND 6.5B 1Q23 Home Broadband Subscribers (in Mn) 1.1 1.2 2.3 YoY Change in Revenues -7% YoY Subscribers ▲8% -51% -33% -1% QoQ YoY Change in Revenues ▲13% -49% -7% +
Slide 7: Corporate Data revenues up 15% YoY driven by ICT revenues
Corporate Data revenues up 15% YoY driven by 52% YoY growth in ICT revenues Php BUSINESS DATA 4.5B CORE CLOUD CYBERSECURITY BIG DATA APP CENTER ACCOUNTS SOLUTIONS SERVICES & IOT SOLUTIONS SERVICES 1Q23 Corporate YoY Data Revenues +15% YoY Change in -1% +34% +61% +126% +13% +15% Revenues -3% QoQ ICT
Slide 8: Network rollout continues, enabled by CAPEX spend of Php17.6B
Network rollout continues, enabled by CAPEX spend of Php17.6B with 90% for data-related requirements 220 CAPEX BREAKDOWN In Php Bn 43.3 51.0 3% Business Core Others NEW CELL 1% 11% Support 3% 3% SITES BUILT 13% 4% 3,049 36.5 42.5 7% Data UPGRADED 11% 79% 90% MOBILE SITES 77% 66 82% 65% 5G SITES INST
Slide 9: Globe's commitment to improving customer experience recognized by Ookla and Opensignal
Globe’s commitment to improving customer experience recognized by Ookla and Opensignal Globe users have the best experience when streaming video, playing multiplayer mobile games, and using voice apps — both overall and on 5G according to Opensignal’s Q1 report: https://www.opensignal.com/reports/2
Slide 10: Expanding our Cashless Ecosystem to Improve the Lives of Filipinos
Expanding our Cashless Ecosystem to Improve the Lives of Filipinos The largest user base and the Becoming part of daily habits, widest ecosystem as sticky as top shopping apps ▲ 1.34X YoY Growth 81M March Average Daily Active Users, data.ai Registered Users ▲ 1.2X YoY Growth 6M Merchants & Social Se
Slide 11: Innovating to help more Filipinos in their Financial Journey
Innovating to help more Filipinos in their Financial Journey GCash Lending GSave GInsure ▲ 2.52X YoY P74B 8M 8.7M Growth ▲ 1.38% YoY Growth ▲ 5.88 YoY Growth LTD 2.8M Registered LTD Borrowing Unique Borrowers Users Policies Sold ▲ 2.19X YoY Growth 2/3 1 st Time Deposit Borrowers are outside the metr
Slide 12: Changing the Game to Bring the Future of Fintech to the Filipino
Changing the Game to Bring the Future of Fintech to the Filipino Be Secure Plan for the future while enjoying today Go Global
Slide 13: 917Ventures, the engine to securing Globe's future growth
917Ventures, the engine to securing Globe's future growth 917Ventures, Ayala Corp, and Gogoro launched KonsultaMD is kicking off a new era in healthcare as it Gogoro Smartscooters® and battery-swapping in launches its SuperApp, which brings together the country’s the Philippines last April, with pub
Slide 14: Velocity 2023
Velocity, the annual innovation challenge that gathers Ayala & Globe managers & execs, will pitch 10 ideas to potentially be launched as 917V Ventures Velocity 2023 ● A 10-week Innovation Challenge across the Ayala business units ● Designed to ideate and build the next wave of tech companies for the
Slide 15: Financial Highlights
Financial Highlights
Slide 16: Core NIAT of Php5.1 billion on topline expansion and flat operating expenses
Core NIAT of Php5.1 billion on topline expansion and flat operating expenses. Normalized NIAT and Normalized Core NIAT flat YoY 1Q 2023 1Q 2022 YoY% 1Q 2023 4Q 2022 QoQ% Gross Service Revenues 39,982 39,155 2% 39,982 40,024 - OPEX and Subsidy1 (19,454) (19,475) - (19,454) (21,250) -8% EBITDA 20,528
Slide 17: Revenue improvement and cost management drive YoY growth in EBITDA
Revenue improvement and cost management drive YoY growth in EBITDA YoY (in Php Mn) QoQ (in Php Mn) 20
Slide 18: Globe raised ~Php10.6B from the recent closings of towers with PhilTower
Globe raised ~Php10.6B from the recent closings of 710 towers with PhilTower PhilTower MIDC Frontier Unity Total February April 1,306 towers in Luzon; 2,180 towers in 1,350 Towers in Visayas and 447 towers in Portfolio 2,223 guyed 7,509 Luzon Mindanao Luzon towers nationwide Closings to 860 towers 1
Slide 19: 2Q23 Dividends
Globe BOD approves 2Q23 dividend of Php25/sh, proof of commitment to a sustainable dividend policy 2Q23 Dividends ● Globe Telecom distributes cash 25.00 dividends to it shareholders at the rate Php/ of 60% to 75% of prior year’s core net sh income, and is committed to a sustainable dividend policy i
Slide 20: Gearing: Key ratios still comfortably within bank covenants
Gearing: Key ratios still comfortably within bank covenants despite slight increase in debt 1Q 2023 FY 2022 Cash (in Php Bn) 16.2 18.0 Gross Debt (in Php Bn) 234.5 233.2 Gross Debt to Equity (Max of 3:1) 1.50x 1.53x Net Debt to Equity 1.40x 1.43x Gross Debt to EBITDA (Max of 3.5:1) 2.54x 2.35x Net D
Slide 21: 2023 Consolidated Outlook
2023 Consolidated Outlook SERVICE REVENUE EBITDA MARGIN CAPEX Mid single ~50% USD1.3 Billion digit growth OTHER CONSIDERATIONS ● Tower turnover and sale proceeds spread out over the year ● Guidance incorporates impact of SIM Card registration ● Focus on Free Cash Flow sustainability, targets USD1.0
Slide 22: Thank you!
Thank you!