Converge Information & Communications Technology Solutions Inc · PSE:CNVRG
Converge Information & Communications Technology Solutions — FY2020 Earnings Presentation
20 slides from Converge Information & Communications Technology Solutions's earnings presentation, October 2020
Slide 1: 4Q/FY2020 Financial and Operating Results Briefing
4Q/FY2020 Financial and Operating Results Briefing #ExperienceBetter
Slide 2: Legal Disclaimer
Legal Disclaimer These materials have been prepared exclusively for information and disclosure purposes only. This does not constitute any offer to sell securities. These may contain forward-looking statements and information that are, by their nature, subject to significant risks, uncertainties, an
Slide 3: Today's Speakers
Today’s Speakers Dennis Anthony Uy Grace Yao Uy Matthias Vukovich Chief Executive Officer, Co-Founder President, Co-Founder Chief Financial Office Advisor Jesus Romero Benjamin Azada Chief Operating Officer Chief Strategy Officer • 3 3
Slide 4: Mr. Dennis Anthony H. Uy, CEO and Co-Founder
ONVERG LUTIONS E Ic Ss N MR. DENNIS ANTHONY H. UY CEO AND CO-FOUNDER <n = j owls #ExperienceBetter ic . °
Slide 5: Ms. Grace Y. Uy, President and Co-Founder
ONVERGE Ic SOLUTIONS IN MS. GRACE Y. UY PRESIDENT AND CO-FOUNDER #ExperienceBetter
Slide 6: 4Q/FY2020 Results Key Takeaways
4Q/FY2020 Results Key Takeaways ✓ Rapid growth continues in 4Q2020 with 81% YoY revenue growth and 88% YoY EBITDA growth (vs. 4Q2019) ✓ Continued to deliver the industry-leading trifecta with 71% revenue growth, 52.5% EBITDA margin and 20% ROIC in FY2020 ✓ 535k new ports and 177k gross residential s
Slide 7: Mr. Matthias Vukovich, Chief Financial Office Advisor
ONVERGE Ic SOLUTIONS IN MR. MATTHIAS VUKOVICH CHIEF FINANCIAL OFFICE ADVISOR : | #ExperienceBetter
Slide 8: Added ~535k Ports during 4Q2020
Added ~535k Ports during 4Q2020 Extensive and Fast-growing Network Homes Passed (MM) (1)(2)(3) 2% 13% 25% 55% 8 190 ~12x 350 15.1 ✓ ~6.2MM homes passed as of December 2020, ~12x increase from 2016 ✓ 6.2 ~25% household coverage nationwide as of December 2020 0.8 3.2 (~43% in Luzon) 0.5 0.8 5.3 2.4 (6
Slide 9: Total Gross Adds at ~177k with Steady ARPU during 4Q2020
Total Gross Adds at ~177k with Steady ARPU during 4Q2020 Number of Subscribers (‘000) ✓ 1.04MM subscribers as of December 2020, ~14x growth since 2016; driven by FTTH subscriber 33.8 291.5 616.5 growth 14x ~14x ✓ Increase in 1,038 Total gross subscriber adds of ~177k in 4Q2020 Subscribers 216 repres
Slide 10: FY Financial Update: Continuing to Achieve Trifecta of ~71% Growth, 52.5% Margin, ~20% ROIC
FY Financial Update: Continuing to Achieve Trifecta of ~71% Growth, 52.5% Margin, ~20% ROIC Revenue EBITDA (2) PHP MM (1) ($324) PHP MM (1) ($170) 15,652 8,218 3,024 ($189) ($97) 9,139 4,665 ($105) 2,786 ($103) ($53) ($55) 5,055 12,628 4,975 2,643 ($61) ($57) ($30) 2,549 ($29) ($39) 760 ($19) 2,940
Slide 11: P&L Highlights
P&L Highlights Consolidated P&L Key Highlights For the twelve months PHP ended December 31 2020 2019 ❖ Bandwidth and leased line (in millions) Revenue 15,652 9,139 costs accounting for 6.0% of Cost of Services (7,065) (4,441) FY2020 revenues vs. 9.1% of Depreciation and amortization 2,303 1,532 Netw
Slide 12: Well Funded CAPEX Plan
Well Funded CAPEX Plan US$ (PHP)(1) Well-Funded between 2022-25 Fully Funded Capex Plan in 2021 PHP1.6Bn US$633MM Net Cash (PHP30Bn) as of Dec. 2020 Sufficiently funded with current funding Sufficiently US$414MM funded US$271MM (PHP20Bn) with current (PHP13Bn) funding US$311MM 27% (PHP16Bn)(2) 22% 5
Slide 13: Mr. Jesus C. Romero, Chief Operating Officer
MR. JESUS C. ROMERO ’ CHIEF OPERATING OFFICER if #ExperienceBetter
Slide 14: Update on our "Go-National" Strategy
Update on our “Go-National” Strategy On Track to Complete National Backbone in 1H2021 • Added c. 28,300 kilometers of fiber in FY2020 more than doubling the reach of Converge’s nationwide network to 55,000 kilometers(1) • Our primary domestic fiber backbone to Visayas and Mindanao is on track to be
Slide 15: Continuous Improvements of our End-End Fiber Network
Continuous Improvements of our End-End Fiber Network Continuous Hardening of our End-End Network… Diverse International network across 4 POPs, 6 cable systems and 5 CLS (1) Robust fiber diversity with 2+ paths per node (multiple degrees) Distributed system to minimize impacted customers during outag
Slide 16: Delivering Superior and Differentiated FTTH Solutions to our Customers
Delivering Superior and Differentiated FTTH Solutions to our Customers Free permanent speed upgrades to residential customers in Launch of new “Converge Enterprise” December 2020 to celebrate our 1 million subscriber products including innovative Time-of-Day milestone plan PLANS SPEED UPGRADE FiberX
Slide 17: Mr. Benjamin B. Azada, Chief Strategy Officer
ONVERGE Ic SOLUTIONS IN MR. BENJAMIN B. AZADA CHIEF STRATEGY OFFICER #ExperienceBetter
Slide 18: Enhancing Customer Satisfaction through Omni-Channel Initiatives
Enhancing Customer Satisfaction through Omni-Channel Initiatives (Online + Offline) …While Ensuring Real-Time & Real-Person Digitalizing Our Customer Journey… Customer Care # of Contact Center Agents and ACR Bill Self Ticket 700 90% Payment Service Management 600 80% 500 400 70% 300 200 60% 100 0 50
Slide 19: Q&A
Q&A Please email the moderator for any question varun.ahuja@credit-suisse.com or You may use the raise-hand function and wait for your name to be announced
Slide 20: Thank you
Thank you For future questions/inquiries, please email: Investors.relations@convergeict.com
Converge Information and Communications Technology Solutions — FY2020 Earnings Presentation on 6ix