PLDT, Inc. · PSE:TEL
PLDT — FY2009 Earnings Presentation
30 slides from PLDT's earnings presentation, Mar 2, 2010
Slide 1: Full Year 2009 Financial and Operating Results
We’re changing lives. Full Year 2009 Financial and Operating Results 2 March 2010 1
Slide 2: PLDT Group: FY 2009 Financial Highlights
PLDT Group: FY 2009 Financial Highlights 2009 2008 (unaudited) (audited) % Y-o-Y Service Revenues P145.6bn P142.9bn 2% • Wireless P95.8bn P93.6bn 2% • Fixed Line P51.1bn P49.3bn 4% EBITDA P86.2bn P87.7bn 2% • Wireless P59.4bn P60.7bn 2% • Fixed Line P25.2bn P25.9bn 2% EBITDA Margin 59% 61% Core Net
Slide 3: PLDT Group: Core and Reported Income
PLDT Group: Core and Reported Income • Core income for FY09 increased by 8% or P3.0bn to P41.1bn compared to FY08 due to: + 2% growth in service revenues + Lower provision for income tax largely due to the reduced corporate income tax rate + Recognition of equity share in earnings of Meralco startin
Slide 4: PLDT Group: Capital Management
PLDT Group: Capital Management ¾ At today’s meeting, the PLDT Board of Directors declared dividends of P141 per share as follows: Regular dividend: P76 per share, bringing total regular dividends for 2009 to P153, in line with the 70% dividend payout policy Special dividend: P65 per share, repre
Slide 5: PLDT Group: Service Revenues and EBITDA
PLDT Group: Service Revenues and EBITDA ¾ Consolidated service revenues grew by 2% to P145.6bn in FY09 from P142.9bn in FY08 on account of: + 3% increase in data and ICT revenues which included a 25% growth in broadband and internet revenues = Steady voice revenues ¾ Data and ICT revenues now accoun
Slide 6: PLDT Group: Capex
PLDT Group: Capex ¾ Capex at FY09 increased by P2.9bn or 11% to P28.1bn compared to P25.2bn in FY08 and P1.1bn higher than 2009 guidance of P27bn due to acceleration of broadband capex to support take-up Capex for the wireless business amounting to P16.3bn accounted for 58% of total capex – P5.4bn
Slide 7: PLDT Group: Free Cash Flow
PLDT Group: Free Cash Flow ¾ PLDT generated P44bn of free cash flow in 2009, P3.9bn or 8% lower than P47.9bn in 2008 In both 2008 and 2009, FCF was higher than core net income of P41bn and P38bn, respectively FCF lower in 2009 due to: – Capex for 2009 grew by P2.9bn compared to 2008 – Higher net
Slide 8: PLDT Group: Debt Profile
PLDT Group: Debt Profile ¾ At the end of 2009, net debt stood at US$1.3bn, an increase of US$500mn from the end of 2008 resulting from increased borrowing by the group to support capex and the investment in Meralco ¾ As of 2009, total group debt amounted to US$2.2bn compared to US$1.6bn in 2008 – U.
Slide 9: PLDT Group: 2009 Segment Highlights
PLDT Group: 2009 Segment Highlights • Broadband – Combined subscriber base grew to more than 1.6mn – Service revenues of P13.8bn for 2009 reflect a 25% increase – Broadband and internet service revenues now account for 9% of total Group service revenues • Wireless Business – Subscriber base at 41.3m
Slide 10: Broadband: Leading the charge
Broadband: Leading the charge ¾ PLDT DSL, SmartBro and WeRoam combined subscribers grew by more than 618,000 during 2009, representing a 62% growth from the end of 2008 – SmartBro’s subscriber base crossed the 1mn mark, growing by 90% from 547,000 at the end of 2008 9 601,700 are Plug-It prepaid sub
Slide 11: PLDT Group: Broadbanding the nation
PLDT Group: Broadbanding the nation myDSL Watchpad • Allows PLDT Internet @ Home myDSL subscribers * Unlimited wireless internet to watch the hottest and unlimited voice calls channels and award-winning movies for FREE • Offers myDSL subscribers access SurfTv to selected shows for on a pay-per- • In
Slide 12: SMART: Managing new business dynamics
SMART: Managing new business dynamics ¾ The combined Smart and TNT subscriber base expanded to 41.3mn at the end of 2009 registering a 17% growth year-on-year • 6.1mn net adds for full year 2009, surpassing the 5.2mn net adds for 2008 • Of the 6.1mn net adds, 3.3mn are Buddy subscribers and 2.7mn ar
Slide 13: SMART: Shifting gears
SMART: Shifting gears ¾ Wireless service revenues increased by 2% to P95.8bn and accounted for 66% of total service revenues in 2009 largely due to: + 24% increase in wireless broadband revenues + 4% growth in cellular voice revenues – 1% decline in data and other services revenues ¾ 53% of total 20
Slide 14: Fixed Line: Growing steadily
Fixed Line: Growing steadily ¾ Fixed line service revenues improved by 4% to P51.1bn in FY09 resulting from: + Growth in corporate data and DSL service revenues – Net decline in LEC revenues on account of lower fixed charges resulting from bundling of voice and data services offset by increase in th
Slide 15: ePLDT: Moving forward
ePLDT: Moving forward ¾ ePLDT’s service revenues, now 8% of PLDT group service revenues, registered a 5% increase to P10.9bn in FY09 due to: + 67% growth in data center revenues due to increased contracts for co-location/server hosting, disaster recovery and business continuity service - 2% decrease
Slide 16: Meralco: Highlights
Meralco: Highlights ¾ PLDT’s FY09 results include P398mn equity share in the earnings of Meralco for the period 15 July to 31 December 2009 (net of P100mn amortization of acquisition-related fair value adjustments), as well as a P1.2 billion derivative gain arising from the P2bn exchangeable note is
Slide 17: PLDT Group: Guidance for 2010
PLDT Group: Guidance for 2010 ¾ Service revenues are expected to grow by 3% over 2009 to P150bn: Strong growth in broadband, corporate and SME business for the fixed line, and improvements in the BPO business Cellular growth challenged by 80% market penetration and multiple-SIM phenomenon, incre
Slide 18: 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
Slide 19: Appendix
Appendix
Slide 20: FY 2009: Consolidated Financial Highlights
FY 2009: Consolidated Financial Highlights FY 2009 FY 2008 (Unaudited) (Audited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated % Change Service Revenues 95,829 51,140 10,931 145,647 142,873 2% Cash operating expenses 32,680 24,251 9,363 53,643 50,370 6% EBITDA(1) 59,411 25,215
Slide 21: Revenues
Revenues FY 2009 FY 2008 % (Unaudited) (Audited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Service Revenues Wireless Cellular 88,410 88,410 87,518 1% Broadband 5,383 5,383 4,327 24% Satellite and other services 2,036 2,036 1,748 16% Fixed line Local exchange 15,681
Slide 22: Expenses
Expenses FY 2009 FY 2008 % (Unaudited) (Audited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Operating expenses Compensation and employee benefits 6,059 10,637 6,418 23,100 20,709 12% Repairs and maintenance 4,340 4,345 669 8,631 8,569 1% Selling and promotions 4,051
Slide 23: Other Income (Expenses)
Other Income (Expenses) FY 2009 FY 2008 % (Unaudited) (Audited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Gains (losses) on derivative financial instruments, net 1,166 (1,581) 8 (407) 4,631 -109% Interest income 1,139 402 28 1,539 1,668 -8% Equity share in net earni
Slide 24: EBITDA
EBITDA FY 2009 FY 2008 % (Unaudited) (Audited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Income before tax 46,241 8,122 476 54,839 54,491 1% Add (deduct): Depreciation and amortization 13,237 11,619 751 25,607 24,709 4% Financing costs, net 2,619 3,796 171 6,556 6,1
Slide 25: Core Net Income
Core Net Income FY 2009 FY 2008 % (Unaudited) (Audited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Reported net income 33,394 5,854 533 39,781 34,635 15% Add (deduct): Foreign exchange losses (gains), net (387) (532) 12 (909) 6,170 -115% Losses (gains) on derivatives
Slide 26: Cash Flows
Cash Flows FY 2009 FY 2008 % (Unaudited) (Audited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Net cash from operations 55,058 17,910 1,423 74,386 78,302 -5% Add(Deduct): Capital expenditures (16,281) (11,059) (729) (28,069) (25,203) 11% Other investing activities 708
Slide 27: Balance Sheet
Balance Sheet Consolidated 2009 2008 (in million pesos) (Unaudited) (Audited) Total Assets 280,148 252,558 Nominal Value of Total Debt 102,587 78,487 in US$ $2,210 $1,647 Less: Unamortized Debt Discount 3,858 4,576 Total Debt 98,729 73,911 (1) Cash and short-term investments 42,143 40,354 (3) Net De
Slide 28: Earnings Per Share
Earnings Per Share FY 2009 FY 2008 (Unaudited) (Audited) Basic Diluted Basic Diluted Net Income attributable to equity holders of PLDT 39,781 39,781 34,635 34,635 Dividends on preferred shares (456) (456) (456) (456) Net Income applicable to common shares 39,324 39,324 34,180 34,179 Outstanding comm
Slide 29: Interest-bearing Liabilities
Interest-bearing Liabilities December 31, 2009 December 31, (Unaudited) 2008 Unamortized (Audited) (in millions) Carrying Value Debt Discount Face Value Face Value Change Debt PLDT $1,199 $6 $1,205 $822 $382 Smart 919 77 996 800 196 2014 Debt 209 71 280 280 - Others 710 6 716 520 196 Others 9 - 9 25
Slide 30: Consolidated Quarterly Financial Highlights
Consolidated Quarterly Financial Highlights 2009 2008 % Change (Unaudited) (Audited) 4Q09 (in million pesos) 1Q 2Q 3Q 4Q 4Q vs. 4Q08 Service Revenues 36,363 36,509 35,406 37,369 37,285 - Non-service Revenues 565 642 486 653 794 -18% Less: Cost of sales 1,182 1,381 1,308 1,561 1,432 9% Operating Expe