Globe Telecom Inc. · PSE:GLO

Globe Telecom — Q1 2014 Earnings Presentation

10 slides from Globe Telecom's earnings presentation, May 13, 2014

  1. Slide 1: SEC Cover Sheet

    Total Amount of Borrowings COVER SHEET p w0 0 0 0 1 1 7 7 G L O B E T E L E C 0 M I N C (Company'sFullName) 2 7 / F T H E G L 0 B E T O W E R 3 2 N D S T R E E T C 0 R N E R 7 T H A V E N U E B 0 N I F AC I 0 G L0BA L C ITY TA G U I G (Business Address: No. Street City / Town / Province) ALBERTO M.

  2. Slide 2: SEC Form 17-C Current Report

    SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17(a)-1(b)(3) THEREUNDER 1. 12 May 2014 bate of Report (Date of earliest event reported) 2. 1177 3. 000-768-480-000 SEC identification Number BIR Tax Identification

  3. Slide 3: Globe Performance Highlights

    Globe Telecom, Inc. FINANCIAL AND OPERATING RESULTS First Quarter 2014 13 May 2014 Globe Performance Highlights • Growth momentum sustained with 1Q14 up 9% against 1Q13 and at par with 4Q13 record-high 1Q13 4Q13 1Q14 • YoY, revenue gains coupled with lower interconnect expenses mitigate increase in

  4. Slide 4: Growth momentum continues, driven by innovative offers and a new data-ready network

    Growth momentum continues, driven by innovative offers, a differentiated customer experience and a new data-ready network Service Revenues by Product Category YoY Change QoQ Change +9% +8% +12% -1% +5% +19% +3% +6% +3% Mobile Broadband Fixed Line Fixed Line Total Mobile Broadband Fixed Line Fixed Li

  5. Slide 5: Continued demand for data drives growth across mobile data, broadband, and fixed line

    Continued demand for data drives growth across mobile data services, broadband, and fixed line data segments Mobile Browsing and Other Broadband Revenues Fixed Line Data Revenues In Php Billions Data Revenues In Php Billions In Php Billions +12% +12% +19% 2.9 1.3 2.8 2.8 2.7 1.2 2.5 -5% 2.5 +5% 1.1

  6. Slide 6: Consolidated Financial Highlights

    Globe Telecom, Inc. FINANCIAL PERFORMANCE First Quarter 2014 Consolidated Financial Highlights Y/Y Q/Q 3M14 3M13 Change 1Q14 4Q13 Change In Php Mn Service Revenues 23,230 21,368 9% 23,230 23,243 - OPEX & Subsidy* (14,434) (12,592) 15% (14,434) (15,022) -4% EBITDA 8,796 8,776 - 8,796 8,221 7% EBITDA

  7. Slide 7: EBITDA flat year-on-year, as Globe continued to re-invest in subscribers and network

    EBITDA flat year-on-year, as Globe continued to re-invest in bil subscribers and the expansion of the network YoY Change in EBITDA (in Php Mn) 8,776 1,862 138 284 566 502 628 8,796 3M13 Inc. in Service Dec. in Inc. in Staff Costs Inc. in Marketing Inc. in Network Inc. in Others 3M14 Revenues Interco

  8. Slide 8: Gross debt at Php69.9 billion, though comfortably within covenant ratios

    Gross debt at Php69.9 billion, though comfortably within covenant ratios Gross Debt Gross Debt/EBITDA Ratio in Php Millions 1.90 1.91 1.78 69,301 69,884 61,779 1.39 48,679 2011 2012 2013 3M14 2011 2012 2013 3M14 Covenant = 3:1 Gross D/E Ratio Issuance of Preferred Shares 1.66 1.76 • Globe secured st

  9. Slide 9: Appendix 1: Historical Consolidated Gross / Net Service Revenues and EBITDA Margin

    Appendix Appendix 1: Historical Consolidated Gross / Net Service Revenues and EBITDA Margin 2013 2014 (In Million Pesos) 1Q 2Q 3Q 4Q 1Q CONSOLIDATED SERVICE REVENUES Mobile 17,124 18,717 18,232 18,691 18,456 Voice 7,670 8,268 8,052 8,377 8,658 SMS 6,961 7,349 7,097 7,387 7,008 Data 2,493 3,100 3,083

  10. Slide 10: Appendix 2: Net Income and Core Net Income

    Appendix 2: Net Income and Core Net Income % % (in Million Pesos) 3M14 3M13 Change 1Q14 4Q13 Change Reported Net Income After Tax 2,949 656 350% 2,949 1,431 106% Deferred Tax on Unexercised Stock Options 41 - - 41 10 310% Add (deduct) forex loss (gain) (145) 90 -261% (145) 136 -207% Other Adjustment

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