Slide 1: SEC Cover Sheet
COVER SHEET (Company's Full Name) 21,7) 7)F TIHIE G\L}/O| BIE T]O;WIE]R 3/2 )N/D S|TIRJE/E]T C)O|R IN|JE JR 7)TIH AIVIE|NIUJE BJO} N]!I |}FIAlC {Ilo GILJO;BIJAIL cy ijtly TIA}G/]U}1)G (Business Address: No. Street City / Town / Province) ROSEMARIE MANIEGO-EALA 797-2000 Contact Person Company Telepho
Slide 2: SEC Form 17-C Current Report
or SECURITIES AND EXCHANGE COMMI Si SEC FORM 17-C CURRENT REPORT UNDER SECTION OF THE SECURITIES REGULATIONS CODE AND SRC RULE 17(a)-1(b)(3) THEREUNDER GP _ MIY, 20 pment enanumennks,imnncinonnunee nner Date of Report (Date of earliest event reported) aseqneversgnerseranessverseterntseseonguvecsusea
Slide 3: 1Q 2017 Analysts' Briefing
1Q 2017 Analysts’ Briefing 10 May 2017 | The Globe Tower BGC
Slide 4: 1Q17 Performance Highlights
1Q17 Performance Highlights: Record revenues and EBITDA offset by higher depreciation and interest, and share of charges from SMC deal Service Revenues YoY • Momentum continues, driven by data-related services which now generate 53% of total service revenues 31.1 +4% • Beginning 2017, revenues from
Slide 5: Revenue growth remains broad-based as market shifts towards data
Revenue growth remains broad-based as market continues shift towards data Mobile 1 Home Corporate Fixed Line Total Broadband 1 Data Voice Δ1Q16 +3% +9% +7% -2% +4% 1 Beginning 2017, revenues from premium content services (where Globe is acting as principal to the contract) will be reported gross of
Slide 6: Data-related businesses now account for 53% of total service revenues
Data-related businesses now account for 53% of total service revenues Mobile Data1 Home Broadband1 Corporate Data In Php Billions In Php Billions In Php Billions 10.0 3.8 2.5 +8% +9% +7% Total Data Revenues as a Percentage of Mobile Data Users as a % of Total Service Revenues1 Mobile Subscribers 1Q1
Slide 7: Deployment of new LTE sites and Home Broadband service
Deployment of new LTE sites and Home Broadband service in Metro Manila and key cities nationwide continue to face headwinds from permitting issues LTE 700 and LTE 2600 Sites • For 1Q17, Globe has deployed a total of 445 new LTE sites for increased capacity and coverage. • With build preparations und
Slide 8: New products, partnerships and events
New products, partnerships and events that enrich the Filipino digital lifestyle. Globe Digital Ventures and Globe and Singtel launch Trustwave Palau and Micronesia Ayala Sureseats.com Partnership Managed Security Services interconnect with Globe for SEA- US Cable System Globe and Disney’s Disney Pr
Slide 9: Financial Highlights
Financial Highlights
Slide 10: Consolidated Financial Highlights
Consolidated Financial Highlights: Revenue growth at 4% though higher operating expenses, depreciation, and non-operating charges contributed to a decline in NIAT 3M17 3M16 VTI Impact 3M17 (in Php Mn) Reported Reported YoY % (3M17) Normalized YoY% Gross Service Revenues 31,122 30,004 4% 31,122 4% OP
Slide 11: EBITDA growth driven by increase in revenues
EBITDA growth driven by the Php 1.1 Billion increase in revenues but was tempered by increased staff and network costs, particularly repairs and maintenance charges YoY Change in EBITDA In Php Millions 220 428 1,118 244 659 - - 247 - - +2% 13,067 13,315 3M16 EBITDA Inc. in Dec. in Inc. in Staff Dec.
Slide 12: Modest EBITDA growth outpaced by depreciation and non-operating charges
Modest 2% growth in EBITDA outpaced by increased depreciation and non-operating charges, leading to 13% decrease in net income. Non-operating charges include the impact of the SMC deal. Normalized net income would have only declined by 4% YoY Change in Reported Net Income In Php Millions -4% 248 222
Slide 13: Capital expenditures at approximately Php8.6 billion
Capital expenditures at approximately Php8.6 billion or USD175 million*, with 81% related to data requirements Capex* Capex Breakdown In Php Billions 37.0 36.7 35% 49% 48% 32.1 65% 81% 21.2 36% 27% 30% 14% 15% 10% 8% 1% 8.6 10% 10% 15% 15% 15% 11% 8% 2014 2015 2016 3M17 2013 2014 2015 2016 3M17 * Ba
Slide 14: Debt levels remain within covenant ratios
Despite the SMC transaction, debt levels remain comfortably within covenant ratios. Gross Debt Gross D/E Ratio In Php Millions Covenant = 2.5:1 105,729 108,100 1.67 1.68 1.22 72,229 2015 2016 3M17 2015 2016 3M17 Gross Debt/EBITDA 2Q17 Dividends Covenant = 3:1 Cash Dividend per Php22.75 Common Share:
Slide 15: CREATE. WONDERFUL.
CREATE. WONDERFUL. &¥? Globe
Slide 16: Appendices
Appendices
Slide 17: Historical Consolidated Gross / Net Service Revenues and EBITDA Margin
Appendix 1 Historical Consolidated Gross / Net Service Revenues and EBITDA Margin 2015 2016 2017 (In Million Pesos) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q CONSOLIDATED SERVICE REVENUES Mobile 21,635 22,826 23,052 23,730 23,148 22,779 22,577 23,753 23,799 Mobile Voice 9,191 9,556 9,315 9,065 8,181 8,471 8,752 8,
Slide 18: Mobile Subscribers, Net Adds, Churn Rates and Gross ARPUs
Appendix 2 Mobile Subscribers, Net Adds, Churn Rates and Gross ARPUs 2015 2016 2017 Subscribers 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Globe Postpaid 2,458,045 2,517,215 2,561,290 2,597,027 2,564,148 2,521,218 2,508,800 2,489,719 2,467,069 Globe Prepaid 22,214,373 23,287,012 24,391,990 25,915,096 25,452,193 27,
Slide 19: Reconciliation of Net Income to Core Net Income
Appendix 3 Reconciliation of Net Income to Core Net Income (in Million Pesos) 1Q17 1Q16 % Change 4Q16 % Change Reported Net Income After Tax 3,760 4,335 -13% 4,174 -10% Deferred Tax on Unexercised (44) (28) 59% 47 -195% Stock Options Add (deduct) Forex loss (gain) (64) (174) -63% 9 -805% Other Adjus