PLDT, Inc. · PSE:TEL
PLDT — FY2022 Earnings Presentation
64 slides from PLDT's earnings presentation, Mar 23, 2023
Slide 1: Full Year 2022 Financial and Operating Results
Full Year 2022 Financial and Operating Results FY2022 Podcast 23rd March 2023
Slide 2: 2022 marked the start of our multi-year transformation
2022 marked the start of our multi-year transformation We’ve made gains across each of our five strategic pillars: • Elevating customer experience • Improving our standing as a Philippine premier workplace • Establishing industry-leading operational excellence • Growing profits through new businesse
Slide 3: 2022 Performance
2022 PERFORMANCE 190.1 Telco Core Net Service Revenues 182.1 33.1B 190.1B +10% vs. YAGO’s 30.2B +4% vs. YAGO’s 182.1B EBITDA EBITDA Margin 100.5B +4% vs. YAGO’s 96.2B 51% vs. YAGO’s 52% 30.2 33.1 Telco Core Service Revenues 2021 2022
Slide 4: Delivering the best network experience both in fixed and mobile
CUSTOMER EXPERIENCE Delivering the best network experience both in fixed and mobile PLDT Home is the country’s Fastest Fixed Network Q1 – Q2 2022* Smart is the country’s Best Mobile Network Fastest Mobile Network Best Mobile Coverage FY 2022 *Q3 – Q4 Results not yet available
Slide 5: Holistically supporting the digitalization agenda of the government
N AT I O N B U I L D I N G Holistically supporting the digitalization agenda of the government INTERNATIONAL CABLE DATA CENTER LEADERSHIP TOWER DEAL SYSTEMS VITRO Sta. Rosa is set to be the In line with the government’s Jupiter, Asia Direct, and Apricot Philippines’ largest data center campus, Commo
Slide 6: Through the transformation of our culture, we aim to bring about lasting change
BEST PLACE TO WORK Through the transformation of our culture, we aim to bring about lasting change Building the foundation of PLDT and Smart’s culture to empower a unified organization • Rearticulation of the Purpose, Vision, Mission, and Values • Launch our cultural aspirations that will enable our
Slide 7: Forging ahead towards becoming the region's leading ESG Telco
D O I N G B U S I N E S S R E S P O N S I B LY Forging ahead towards becoming the region’s leading ESG Telco PLDT achieved record scores Benchmarking to leading on ESG ratings for 2022 regional ESG leaders 2020 2021 2022 90 93 86 47 51 59 59 48 45 41 35 41 30 37 BB BB BBB 29 20 C C B Index Index Ind
Slide 8: Strengthened Pillars
T H E T R A N S F O R M AT I O N C O N T I N U E S Strengthened Pillars Efficiently arm ourselves with Streamlining product and channel simplified front-end tools and mix to enhance consistency systems that enable productivity while ensuring high quality Customer and focus while placing stringent Ce
Slide 9: We will stay the course and continue providing the best for our customers in 2023
We will stay the course and continue providing the best for our customers in 2023 Reliability at Home Live More Today Trusted Partner for Growth • Back-up service for peace • Rewarding and dynamic • Digital Transformation of mind digital experience Partner-of-Choice by • Affordable connectivity for
Slide 10: Financial Results
@PLDT /Zinanctals /
Slide 11: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights (Php in bn) FY 2022 2021 FY 2022 vs FY 2021 Service Revenues 190.1bn 4% (net of interconnection costs) 182.1bn +8.1bn Cash Opex, Subsidies, Provisions 89.6bn 85.9bn 4% (ex-MRP) +3.8bn * excl Provisions: ₱83.9bn, +₱2.8bn or +3% Provisions 5.8bn 4.8bn EBITDA 100.5bn 96
Slide 12: PLDT Group Service Revenues: All-Time High
PLDT Group Service Revenues: All-Time High (Php in bn) FY 2022 FY 2021 FY 2022 vs FY 2021 5% Individual 82.0bn* 86.2bn -4.1bn Fiber only 48.5bn 57.4bn 47.8bn 20% Home 45% +9.6bn +15.0bn 47.5bn 44.0bn 8% Enterprise +3.5bn Consumer and Enterprise 186.9bn 177.9bn 5% +9.0bn International and Carrier 3.1
Slide 13: Segment Service Revenues: Strong performance amidst a challenging backdrop
Segment Service Revenues: Strong performance amidst a challenging backdrop 84% of total Home Fiber Only Home revenues vs 70% for FY2021 20% ₱57.4B +9.6B ₱48.5B 45% +15.0B 1Q22 2Q22 3Q22 4Q22 1Q22 2Q22 3Q22 4Q22 ₱13.6B 25% ₱14.5B 23% ₱14.6B 16% ₱14.7B 18% ₱11.2B 73% ₱12.1B 52% ₱12.4B 36% ₱12.8B 29% +
Slide 14: Home: Well-positioned to connect the unserved market
Home: Well-positioned to connect the unserved market (Php in bn) ➢ Superior network quality and extensive cable footprint ➢ Strong brand equity in the market FY2022 Home Revenues FY2022 Fiber Revenues ➢ Improved installation capabilities ➢ Fixed and wireless portfolio using varied technologies and 2
Slide 15: Enterprise: Steady growth to be boosted by expansion of ICT business
Enterprise: Steady growth to be boosted by expansion of ICT business (Php in bn) FY2022 Enterprise Revenues ➢ Demand from resurgence in business activity post-COVID lockdowns driving growth 8% ➢ PLDT is well poised to harness rapidly emerging data ₱47.5bn center and ICT potential +3.5bn ➢ Unparallel
Slide 16: Individual: Positive trends despite industry challenges
Individual: Positive trends despite industry challenges (Php in bn) ➢ Sequential reduction in year-on-year declines for all FY2022 Individual Revenues quarters of 2022 ➢ Data users, data usage per sub and data traffic all showing year-on-year increases 5% ➢ Network superiority (speed, low latency, r
Slide 17: Data/broadband: 80% of consolidated service revenues
Data/broadband: 80% of consolidated service revenues (Php in bn) ILD (2022 vs 2021) (1%) 5.6 2% 2.4 Mobile Data ₱71.9bn +1.6bn 29.6 19% Home Broadband ₱51.0bn FY 2022 +8.0bn ₱190.1bn 12% Data/Broadband 9% Corporate Data ₱24.2bn (80%*) +2.5bn +12.7bn 152.5 12% * 4Q22: 81% ICT ₱ 5.4bn % of data/broadb
Slide 18: Consolidated EBITDA (ex-MRP): Crossed the ₱100bn-mark in FY2022
Consolidated EBITDA (ex-MRP): Crossed the ₱100bn-mark in FY2022 (Php in bn) FY22 vs FY21 FY 2022 4% ₱100.5bn +4.3bn Margin: 51% +1% 4Q22 vs 4Q21 +0.1bn 25.1 25.5 25.0 25.0 25.1 23.3 24.5 22.7 22.8 23.3 21.6 21.6 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 2020: ₱88.8bn 2021: ₱96.2bn
Slide 19: Telco Core Income: Exceeded FY 2022 Guidance
Telco Core Income: Exceeded FY 2022 Guidance (Php in bn) FY22 vs FY21 FY 2022 10% ₱33.1bn +2.9bn vs. guidance: ₱33.0bn 4Q22 vs 4Q21 8.8 8.4 7.9 8.2 8% 7.5 7.7 7.7 7.0 7.1 7.1 7.1 6.9 +0.6bn 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 2020: ₱28.1bn 2021: ₱30.2bn 2022: ₱33.1bn Qtr ave:
Slide 20: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income (Php in bn) FY 2022 FY 2021 2022 vs 2021 10% Telco Core Income 33.1bn 30.2bn +2.9bn Share in Voyager/Bank Hold Co Loss (3.2bn) (2.0bn) -1.3bn Voyager Gain on Dilution, net of tax 0.7bn 0.7bn --- Telco Core Income + Voyager 30.5bn 29.0bn 5% Gain from 4,665 s
Slide 21: Accelerated Depreciation: Resulting from accelerated network and technology upgrades
Accelerated Depreciation: Resulting from accelerated network and technology upgrades ➢ Accelerated Depreciation: ₱51.2bn, mainly from: ▪ PLDT and Smart transport assets affected by Transport Network Transformation project (P19.2bn) ✓ Modernization of the transport network ▪ Migration of the VVDSL ne
Slide 22: PLDT Group: Capital Management
PLDT Group: Capital Management Final Regular Special Total Cash Dividend ₱45/share ₱14/share ₱59/share Declaration Date: Record Date: Payment Date: 23 March 2023 11 April 2023 21 April 2023 ➢ Focus on delivering positive free cash flow and deleveraging ➢ Total dividends paid (2005 – 2022): ₱496.4bn
Slide 23: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (PHP in billions) (PHP in billions, 31 December 2022) Net Debt Net Debt-to-EBITDA* Gross Debt ₱ 225.7bn 2.25x (3Q22: 2.36x) ₱ 251.9bn 123.0 224.0 182.9 255.4 228.7 251.9 225.7 41.1 26.8 26.2 32.6 11.6 22.8 15.0 26.6 20.3 2020 2021 2022 20
Slide 24: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) 9% Capex for 2022 includes: Business Capex 24% +7.8bn 96.8 ➢ Investment in capacity to support home broadband Network/IT Data Center and business and rise in network traffic: +17.1bn 89.0 Subsidiaries ✓ Deployment of fiber ports: 1.5mn -5.3 12.2 ✓ Payload:
Slide 25: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights Extensive Fixed Network Reach TOTAL HOMES PASSED FTTH COVERAGE TOTAL FTTH CAPACITY* TOTAL FIBER FOOTPRINT (Million Homes) (Barangays ‘000) (Million Ports) (Thousand Cable Kilometers Laid) Presence *excluding VVDSL of 1.06mn (2022) International 6
Slide 26: Smart 5G Highlights
Smart 5G Highlights Connected Unique Devices Data Traffic In ‘000 In TB (Total for the Quarter) +1,121% +161% +13,436% 3,072 +308% 2,511 39,781 2,114 31,166 1,583 22,735 1,176 16,098 759 9,752 252 376 520 2,627 5,686 294 944 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 4Q20 1Q21 2Q
Slide 27: Leveraging digital banking in the Philippines
Leveraging on digital Maya: #1 Fintech banking in ecosystem advantage to grow consumer finance the Philippines More enterprises More consumers Low-cost funding and better risk models Broader services Integrated services Consumer and products with wider offering Enterprise Consumer Embedded Banking M
Slide 28: Maya: Fastest-growing digital bank with 1.5m customers
Maya: Fastest-growing digital bank with 1.5m customers in 6 months after full launch Bank Customers Deposit Balance Loans Disbursed ~1.5m ~Php14.7b >Php3b Apr May Nov Dec Jun Sep Aug Apr Jul Oct Dec Apr May Nov Dec Apr Jun Aug Sep Jul Oct Dec Apr Dec May Nov Dec Apr Aug Sep Oct Jun Jul Notes: Cumula
Slide 29: Maya Bank: Leveraging digital banking advantage
Maya Bank: Leveraging digital banking advantage to provide Filipinos with next- gen financial services Consumer Banking SME/MSME Banking Spurring more usage: customers who save or Providing enterprises and MSMEs with integrated borrow transact 2 to 3 times more than merchant solutions, innovative cr
Slide 30: Other Matters: Transactions Announced in 1Q 2023
Other Matters: Transactions Announced in 1Q 2023 ➢ Sale and leaseback of 1,012 towers to Frontier Tower Associates Philippines, Inc. ▪ Expected gross sales proceeds: P12.1bn ✓ Mirrors the value of the towers covered by the sale and leaseback transactions announced in April and December 2022 ▪ Lease
Slide 31: 2023 Outlook/Guidance
2023 Outlook/Guidance ➢ Mid-teen growth in fiber revenues anticipated ➢ Momentum for Enterprise revenues to Service Revenue Growth Mid-single digit growth continue, underpinned by ICT ➢ Challenging environment for mobile industry (inflation, competition, SIM registration) Mid-single digit growth ➢ R
Slide 32: Ee Qa ol a a
Ee Qa ol a a
Slide 33: Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income
Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income (Php in bn) Higher Higher Cash Higher Lower Svc Rev Opex/CoS Provisions Subsidies EBITDA Depn EBIT (net of IC) +8.1 -3.1 -1.0 +0.3 100.5 47.7 96.2 17% 52.7 EBITDA 4% +7.8bn (ex-MRP) +4.3bn FY 2021 FY 2022 FY 2022 EBITDA margin EBIT margin 52%
Slide 34: ePLDT Data Center Business: Well positioned to attract hyperscalers
ePLDT Data Center Business: Well positioned to attract hyperscalers 10 4 600+ Gbps sites TIA-942* rated 3 certified facilities Premium access to Smart and PLDT strategically spread across PH eyeballs 8,930 500GB Full capacity racks 27.9MW Peak local peering traffic 7,029 ready capacity; 69% utilitiz
Slide 35: PLDT Group: Subscriber Base
PLDT Group: Subscriber Base (in ‘000) Broadband Fixed Line Mobile 6% 7% 3,992 +40K 3,952 1% 3,825 +206K 3,619 66,305 71,222 -4,917K Cellular 65,215 70,225 -7% 3,248 +281K 2,967 +9% Fixed Prepaid 63,263 68,323 -7% Postpaid 1,952 +51K 1,901 +3% Fiber 2,934 +514K 2,420 +21% Mobile Broadband 1,090 +92K
Slide 36: PLDT Group: Broadband Subscriber Base
PLDT Group: Broadband Subscriber Base (in ‘000) Fiber Only: Gross Connects and Migrations 2021 2022 Subscribers (Monthly ave. per qtr) (in '000) 1Q 2Q 3Q 4Q FY2021 1Q 2Q 3Q 4Q FY2022 Fixed Broadband Gross 241 270 349 323 1,183 281 272 287 278 1,118 Churn (129) (117) (119) (126) (490) (114) (205) (24
Slide 37: 37
37 37
Slide 38: Maya Consumer: #1 Digital Bank App in the Philippines
Maya Consumer: #1 Digital Bank App in the Philippines Save Gamified and fully-digital instant savings experience Borrow Instant access to credit based on proprietary underwriting App Google Store Play Invest 4.8 4.4 Buy and sell crypto; mutual funds Protect and stocks coming soon (1) As of March 20,
Slide 39: Maya Business: #1 Merchant Acquirer in the Philippines
Maya Business: #1 Merchant Acquirer in the Philippines. Now becoming the one-stop financial services provider for enterprises. Large Enterprises MSMEs Providing a one-stop shop Serving clients in for the merchants to accept Payment Payment E-commerce highly diversified Gateway Gateway plug-ins payme
Slide 40: Maya's leadership in Digital Financial Services is unique and sustainable
Maya’s leadership in Digital Financial Services is unique and sustainable Incumbent banks Neobank / digital banks ✓ Cheap cost of funds ✓ Large scale High acquisition cost given lack of ✓ Lowest cost of funds captive customer base Archaic technology Lack of proprietary data leading to Inabil
Slide 41: Slide 41
Slide 42: Environmental: Committed to Reducing GHG Emissions
Environmental: Committed to Reducing GHG Emissions #Solar Roof Top Panels #Renewables from Geothermal Energy Reaping benefits from the five (5) 100% Renewable Energy (RE) from Geothermal Power for sites completed in 2Q – 3Q 2022 seven (7) sites in Visayas and six (6) sites in Mindanao ➢ Fired up Sol
Slide 43: Environmental and Social: Pursuing Innovations to Support Green Operations
Environmental and Social: Pursuing Innovations to Support Green Operations and Improved CX #Reduce Carbon Footprint SDGs: 9, 12, 13 #”Cleanest Network” SDGs: 12 Successful tests on Smart and POC for use of drones Spectrum Effect® to inspect cell sites deployed Spectrum-NET to Achieve Major Network P
Slide 44: Social: Empowering Employees and Communities
Social: Empowering Employees and Communities #StrongCyberSecurity #NoOneLeftBehind SDGs: 5, 9, 10, 16 #Child’s Rights Safeguarding Customers and Children 24/7 Supporting Government in Improving the Protecting Child’s Rights Online Security of Filipinos SDG: 3, 16 SDG: 3, 4, 9, 16 Cited in the Octobe
Slide 45: Governance: Aligning with Global Best Practices
Governance: Aligning with Global Best Practices #Recognition #Policies Recognized at the ASEAN Corporate Championing Policy Articulation Governance Scorecard 2021 Awards To align with global best practice, PLDT needs to publicly express its policies covering various areas considered material by ASEA
Slide 46: Commitments: Partnering to Help Foster Sustainability
Commitments: Partnering to Help Foster Sustainability SDGs: 17 PLDT Group chairs the Planet Pillar workstream for the achievement Renewed membership with NEDA-led of UNGC’s 10-in-10 Business Ambition Stakeholders’ Chamber (Other pillars: People, Prosperity) Align company plans to acheive the Philipp
Slide 47: Selected PLDT ESG Ratings and Associations
Selected PLDT ESG Ratings and Associations: Progress of our sustainability journey PLDT closed 2022 with Supports various organizations to achieve Significant Improvements in a Stronger and Better World ESG ratings Adhere to Global Standards Strong Cyber Security Demonstrating progress on our Sustai
Slide 48: Path to Net Zero
Path to Net Zero: Preliminary reduction target of 40% in Scope 1 and 2 GHG emissions by 2030 ➢ Supports the Global action on Climate Change and the move towards Net Zero by 2050 ➢ GHG emissions profile based on 2019 baseline: about 30% are from Scope 1 and 2 ▪ Scope 1 (direct): 3% ▪ Scope 2 (indirec
Slide 49: 49
49 49
Slide 50: Subscriber Base: Mobile
Subscriber Base: Mobile Mobile Subscribers by Category: Net Adds (Reductions) Dec-22 Sep-22 Jun-22 Mar-22 Dec-21 YE2022 vs YE2021 (1) Mobile Subscriber Base Prepaid 64,287,019 65,972,119 67,365,162 68,224,018 69,205,731 (4,918,712) (7%) Smart Prepaid 24,394,379 25,103,659 25,679,480 26,229,708 26,66
Slide 51: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Net Adds Dec-22 Sep-22 Jun-22 Mar-22 Dec-21 YE2022 vs YE2021 Fixed Line Subscribers 3,825,424 3,835,305 3,821,296 3,766,956 3,619,372 206,052 6% Broadband Subscribers Net Adds Dec-22 Sep-22 Jun-22 Mar-22 Dec-21 YE2022 vs YE2021 BROADBA
Slide 52: ARPU
ARPU Mobile ARPU, Net(1) : 2022 2021 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Smart Postpaid 786 723 699 705 819 823 825 798 Smart Prepaid 99 104 106 109 104 104 104 105 TNT 82 86 85 86 83 85 84 85 Sun Postpaid 440 580 458 581 407 387 445 475 (1) Includes Mobile Broadband subscribers Broadband ARPU, Net : 2022 2021
Slide 53: Consolidated Financial Highlights
Consolidated Financial Highlights FY2022 Y-o-Y FY2021 Wireless Fixed Line Others Consolidated % Change (Php in millions) (1) Service Revenues 95,852 128,116 - 196,227 185,751 6% (2) Cash Operating Expenses 38,584 69,763 12 91,180 79,179 15% Subsidies and Cost of Services 3,064 3,348 - 5,499 5,835 (6
Slide 54: Consolidated Service Revenues
Consolidated Service Revenues 2022 2021 % Change FY2022 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY2021 Fixed Line 24,506 25,077 25,629 25,955 101,167 20,861 21,318 22,373 22,687 87,239 16% LEC 3,492 3,491 3,388 3,475 13,846 3,404 3,407 3,446 3,530 13,787 - Fixed Line Voice - International
Slide 55: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2022 2021 % Change FY2022 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY2021 Data and Broadband 36,666 38,389 38,560 39,092 152,707 33,913 34,597 35,754 35,838 140,102 9% Home Broadband 12,022 12,862 13,037 13,051 50,972 9,875 10,671 11,365 11,103 43,0
Slide 56: Wireless Service Revenues
Wireless Service Revenues 2022 2021 % Change FY2022 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY2021 Data/Broadband 18,129 18,782 18,610 18,676 74,197 18,141 18,419 18,472 18,501 73,533 1% Mobile Data 17,556 18,255 18,132 18,226 72,169 17,568 17,576 17,696 17,804 70,644 2% Mobile Internet 1
Slide 57: Fixed Line Service Revenues
Fixed Line Service Revenues 2022 2021 % Change FY2022 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY2021 Data/Broadband 23,075 24,493 26,753 16,560 90,881 18,299 18,829 20,032 21,561 78,721 15% Home Broadband 11,457 12,344 12,566 12,608 48,975 9,321 9,844 10,600 10,416 40,181 22% Corp. Data a
Slide 58: Expenses
Expenses FY2022 Y-o-Y FY2021 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Compensation and Employee Benefits 7,676 22,166 - 29,812 25,344 18% Repairs and Maintenance 14,616 15,704 - 28,981 24,653 18% Professional and Other Contracted Services 4,921 5,197 6 8,
Slide 59: Other Income (expenses)
Other Income (expenses) FY2022 Y-o-Y FY2021 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Multisys - - (95) (95) 55 (273%) Vega - - 74 74 971 (92%) Voyager - - (3,026) (3,026) (2,237) 35% Others - (253) (4)
Slide 60: Earnings Per Share (EPS)
Earnings Per Share (EPS) FY2022 FY2021 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 10,485 10,485 26,367 26,367 Dividends on Preferred Shares (59) (59) (59) (59) Net Income for the Period Attributable to Common
Slide 61: Balance Sheet
Balance Sheet Consolidated (Php in millions) December 31, 2022 December 31, 2021 Total Assets 624,162 626,328 Nominal Value of Total Debt 251,859 255,414 in US$ $4,512 $5,011 Less: Unamortized Debt Discount 2,279 2,857 Total Debt 249,580 252,557 Cash and Short-Term Investments(1) 26,190 26,755 (2) N
Slide 62: Debt Profile
Debt Profile December 31, December 31, 2022 2021 Change Carrying Unamortized Debt Face Value Face Value Value Discount/Debt Issuance (Php in millions) Debt PLDT ₱156,816 ₱1,236 ₱158,052 ₱158,727 -₱675 Smart 92,764 1,043 93,807 ₱96,687 -2,880 Total Debt ₱249,580 ₱2,279 ₱251,859 ₱255,414 -₱3,555 62
Slide 63: 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 64: PLDT
(PLDT