Slide 1: 2Q/1H20 Analysts' Briefing
#¥ Globe 2Q/1H20 ANALYSTS’ BRIEFING 4 August 2020
Slide 2: 1H20 and 2Q20 results highlights
INGE 1H20 vs 1H19 2Q20 vs 1Q20 Service Revenue 72.4 V1% “syetfectsoftockionnn2a2d 6 35.5 VW 4% EBITDA 38.4V1% — aaomargnasox 17.9 V 13% Net Income Net | dc Net | Bn 1 1 5 Vv 5 % declined by 5% and 8% respectively on 9 Vv 2 6% 3Q 2020 DA, 83 RECORD DATE: August 17, 2020 Dividends PAYMENT DATE: Septem
Slide 3: 2Q20 revenue and subscriber trends by segment
ving 2Q20 revenue {disUbscriber growth Php we . . 51.8 . "20. 0 Fixed Line and Home Mobile Revenues Broadband Revenues V 5% Yor A9% vor " vV16% #VW30% A5% V7% A19% VvV3% YoY YoY YoY YoY YoY YoY MOBILE MOBILE MOBILE FIXED LINE HOME CORPORATE VOICE SMS DATA VOICE BROADBAND DATA = Globe 9 ; Y A58% Post
Slide 4: Data now accounts for 75% of service revenues
Data now.accounts for 75% of = Data Revenue = Non-data revenue SERVICE REVENUES, J ervice Revenues 49% Mobile Data | é, 35.8 A5% 9% Corporate Data| &n 17% Home Broadband |” 12.5 419% "6.2 ¥3% MOBILE DATA TRAFFIC (in PB) 522 584 448% 394 } s | i ‘on QoQ 2Q19 1Q20 2Q20 MOBILE DATA USERS (in Mn) 37.5 |
Slide 5: Globe partners with LGUs and educational institutions to support distance learning
Globe Partners with LGUs and Educational Institutions to Support Distance Learning Operations: * 85% work-from-home, 15% critical skeletal force * 205 Globe stores reopened as of July 2020 Globe Services and Assistance GCash Provides Contactless Package for COVID-19 Solution for DSWD’s Social ; ; ;
Slide 6: Network improvements
— he provements ad < Beginning July 2020, Globe embarked ona x Nationwide Network Builds Project by me ™ Globe Network Improvement Philippine Fixed (wy) Broadband . a (June 2020 vs June 2019) Download Speed ; Rip ms A LTE (June 2020) - gy verage B yh } A12% . rN Ay | Download Speed 2 3 . 7 4 a we Me
Slide 7: Promotions and products
! ns and pro i Globe Postpaid’s Better Days, Better Deals Promo *V: Globe BETTER DAYS | BETTER DEALS: Globe At Home Offers New Postpaid Plans 5G Technology to Roll Out to Select Subscribers a K Globe Prepaid Launches New Go Promos Globe At Home’s Xtreme WiFi Plan 999 Globe Prepaid WiFi Upgrades Home
Slide 8: GCash partners and banks
▲ Gcash ▲ BDO BPI ▲ PayMaya MBTC ▲ UB 8
Slide 9: Fintech and adjacent opportunities from an increasingly digital lifestyle
Fingjadjacent opportunities from an ine reasingly digital lifestyle konsulta HEALTH\OW 4 * 24/7 health hotline service available nation-wide * Allows patients to remotely access doctor * Telemedicine consultations through Konsulta consultation, medicine delivery, and increased by over 450% in May as
Slide 10: Financial Highlights
#¥ Globe FINANCIAL HIGHLIGHTS =i > %
Slide 11: Financial results summary (Php Mn)
(In Php Mn) 1H 2020 2Q 2020 | 1Q2020 Gross Service Revenues 72,423 72,879 -1% 35,541 36,882 -4% OPEX and Subsidy! (34,035) (34,297) -1% (17,629) (16,406) 7% EBITDA 38,388 38,582 -1% 17,912 20,476 -13% EBITDA Margin 53% 53% 50% 56% Depreciation (17,521) (16,453) 6% (8,881) (8,639) 3% EBIT 20,867 22,1
Slide 12: EBITDA bridge YoY and QoQ
v YoY A v v (in Php Mn) v 424 371 460 1404 456 lz —— a | | ” 973 = — _ 38,582 ° 38,384 v1% 6M19 Dec. in Dec. in Inc. in Staff Dec. in Inc. in Inc. in Dec. in 6M20 EBITDA Revenues Interconnect Costs Marketing & © Network Provisions Services & EBITDA Charges Subsidy Costs Other OPEX oO Vv aeQ ) 138i A
Slide 13: Net income decline driven by higher depreciation
~ : Yor NIAT decline driven by highe Pepleciation v YoY 194 A (in Php Mn) ees 113 12,047 11,495 vV5% : 6M19 Reported Change in EBITDA Inc. in Depreciation Dec. in Non- Dec. in Tax 6M20 Reported Net Net Income operating expenses Income QoQ v (in Php Mn) 2,564 Vv A a 7 242 602 509 6,595 426% > 4,900 1
Slide 14: 1H20 capex spend and breakdown
| iZ0}GAPEX spend at Php20.9Bn with Core, 2% Others, Business % CAPEX BREAKDOWN Support, ° In Php Bn 51.0 17% 20.9 2016 2017 2018 2019 1H 2020 _ 14 Data mBusiness Support mCore m Others Globe
Slide 15: Raises USD600Mn in international bond market
Taises USDG6OOMnh in internat onal bond market e Globe USD300Mn 10-year senior notes with coupon rate of 2.5% USD300Mn 15-year senior notes with coupon rate of 3.0% First time to tap the international debt capital market since 2004 * Ten-year tranche is the lowest ever yield for an unrated 10-year U
Slide 16: Gearing: debt level within covenant ratios
Gearing: Debt level within covenant ratios 1H2020 FY 2019 3Q 2020 CASH DIVIDEND Cash (in Php Bn) 14.8 8.3 Gross Debt (in Php Bn) 151.7 136.3 en! 24, 83 Gross Debt to Equity 1.78x 1.68x {Max of 3:1) RECORD DATE: Net Debt to Equity 1.61x 1.58x August 17,2020 Gross Debt to EBITDA 2.06x 1.86x (Max of 3.
Slide 17: Updated 2020 Guidance
Updated 2020 Gui Revenue Low single digit decline versus FY 2019 EBITDA EBITDA margin in the low 50s CAPEX Php50.3 Billion ~ * Latest gov’t outlook for FY20 GDP, remittances and unemployment Other ¢ Increased churn rate across all services Coes cress ¢ Review level of bad debt provisions in 2H20 * G