2017 Nine Months Results Financial and Operating Results 9 th - PowerPoint PPT Presentation

2017 Nine Months Results Financial and Operating Results 9 th November 2017

PLDT T Grou oup: p: 9M17 vs vs 9M16 Finan nancial cial Highlights ghlights Enterprise* Home* Individual* International* Voyager* P24.3bn P25.3bn P44.2bn P12.4bn P1.0bn +12% +11% -14% -21% +134% +P2.6bn +P2.6bn (P7.0bn) (P3.2bn) +P0.5bn Wireless Conso Service Revenues Fixed Line Service Revenues** Service Revenues** (net of interconnection costs: P5.7bn) P62.0bn P51.9bn -4% -13% +11% P107.3bn (P9.0bn) +P5.1bn (P4.5bn) Cash Opex* Subsidies and Provisions Incl P1.6bn MRP Ex-MRP -65% P5.2bn +3% -1% P51.1bn P49.5bn (P9.9bn) +P1.3bn (P0.3bn) EBITDA EBITDA Margin Incl P1.6bn MRP Ex-MRP Incl P1.6bn MRP Ex-MRP 43% 45% +7% P49.1bn P50.7bn +11% +P3.4bn +P5.0bn (9M16: 38%) EBITDA (Wireless) EBITDA (Fixed Line) Incl P1.6bn MRP Ex-MRP +5% P25.6bn P23.9bn P22.4bn +10% +18% +P1.3bn Margin: 38% Margin: 40% Margin: 43% +P2.0bn +P3.6bn Core Income Recurring*** +7% P23.2bn +5% P17.4bn +P1.5bn +P0.8bn * On consolidated basis, net of interconnection costs ** Per segment basis, net of interconnection costs *** Excluding MRP expenses, gain from asset sales, accelerated depreciation and EBITDA adjustments 2

PLDT Group: up: Conso soli lida dated ed Financia nancial l Highlig hlights hts (Php in billions)  Consolidated service revenues showing four Service Revenues, net of interconnection costs quarters of sequential improvements ex-ILD/NLD 9M 2017: P107.3bn 4%  3Q17 stable year-on-year ILD/NLD 9M 2016: P111.8bn and 1% higher vs 2Q17 (4.5)  Excl ILD/NLD: 1% 4% 1% 1% +1%  After remaining at the -0.2 +0.5 -0.6 -1.5 -0.3 same level for four 38.2 37.6 36.1 36.1 35.8 35.6 35.6 Y-o-Y quarters, 3Q17 service 3.8 3.6 -6% 2.9 3.4 3.3 3.0 3.0 -16% -5% -8% -2% -3% -4% revenues showed a quarter-on-quarter increase of 2% 34.4 34.0 +2% 33.2 +2% Excl MRP expenses in 2Q17 and 32.6 32.5 32.6 32.7 -1% --- -4% --- --- 3Q17, EBITDA continued to grow  3Q17 service revenues quarter-on-quarter from 2Q16 rose 2% vs 3Q16 -- first quarter showing a year- 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 on-year increase EBITDA and Adjusted EBITDA Core Income (recurring)* 9M 2017: P49.1bn 9M 2017: P50.7bn (Adj) 9M 2017: P17.4bn +11% +7% +5% +15% 9M 2016: P45.7bn 9M 2016: P45.7bn (Adj) +3.4 +5.0 9M 2016: P16.6bn +0.8 +0.7 +15% +2.2 16% +23% +1% 7.2 +46% +4% 6.6 -1.1 17.2 +1.2 17.1 +0.1 16.6 16.5 +0.6 +0.6 15.4 5.3 +1.7 5.5 15.0 4.8 14.2 0.1 4.5 1.5 Y-o-Y 3.6 +14% -6% +10% 17.1 16.6 16.5 15.4 15.5 15.0 14.2 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Margin 41% 35% 39% 40% 44% 41% 45% Adj’d 45% 46% * Excluding MRP expenses, gain from asset sales, accelerated depreciation and EBITDA adjustments EBITDA (net of MRP in 2Q17 and 3Q17 ) MRP in 2Q17 and 3Q17 2017 Guidance: P68.0bn 2017 Guidance: P22.0bn 3

PLDT T Grou oup: p: Fixed ed Line ne Finan nancial cial Highli ghligh ghts ts Fixed (Php in billions) Service Revenues (net of interconnection costs) 9M 2017: P51.9bn +11% ILD/NLD 9M 2016: P46.8bn +5.1 +11% Ex-ILD/NLD +1.8 +2% +2% +2% +4% +2% 17.6 17.3 +0.3 Y-o-Y 16.9 +0.4 +0.4 16.3 +0.7 15.4 15.5 +0.1 +0.4 15.9 1.4 1.3 -10% 1.3 +4% 1.4 -2% 1.5 1.5 -9% 1.6 -3% +1% -5% 16.3 16.0 15.6 14.9 14.4 +2% 13.9 14.0 +3% +4% +5% +3% +1% +13% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 EBITDA and EBITDA Margin 9M 2017: P22.4bn 9M 2017: P23.9bn Ex- +10% +18% MRP 9M 2016: P20.3bn 9M 2016: P20.3bn +2.0 +3.6 +16% +1.1 +5% 8.3 7.9 7.8 7.1 6.6 6.5 +0.4 6.6 0.1 1.5 Y-o-Y 8.2 7.8 7.1 6.6 6.5 6.6 +29% 6.4 +15% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Margin 39% 39% 42% 37% 43% 34% 44% Ex-MRP 42% 44% EBITDA (excluding MRP in 2Q17 and 3Q17) MRP in 2Q17 and 3Q17 4

PLDT T Grou oup: p: Wireles eless s Finan nancial ial High ghlights lights Wireless (Php in billions) Service Revenues (net of interconnection costs) 9M 2017: P62.0bn 13% ILD (9.0) 9M 2016: P71.0bn Ex-ILD 7% -1.7 2% 7% 3% 4% 1% 24.7 24.0 -0.6 -1.8 22.3 -0.7 21.6 -0.8 20.8 -0.1 20.6 2.2 20.6 -6% 2.1 -8% -- 1.9 Y-o-Y 1.9 -10% 1.7 1.6 1.7 -2% -8% -19% 22.4 21.9 20.3 -2% 19.6 19.0 18.9 19.1 -7% -3% -1% -3% +1% -6% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 EBITDA and EBITDA Margin 9M 2017: P25.6bn +5% 9M 2016: P24.3bn +1.3 +15% +1.1 2% 9.6 8.8 -0.2 8.4 8.3 8.6 7.4 7.3 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 EBITDA Margin 36% 28% 31% 35% 37% 39% 39% 5

PLDT T Grou oup: p: Service ice Revenues ues (by Business Unit) Home Enterprise (Php in billions) • Average quarterly * Improvements in revenues of P8.4bn quarter-on-quarter in 2017 higher than revenue increases 9M 2017: P25.3bn 9M 2017: P24.3bn +11% +12% P7.7bn in 2016 starting 1Q17 +11% 9M 2016: P22.7bn 9M 2016: P21.7bn +13% +2.6 +2.6 +0.9 +1.0 2% - +7% - +2% - +3% - +5% 8.5 8.5 8.5 - +3% +2% - +2% +3% - +1% - +1% -0.2 8.3 +4% 8.0 +0.6 +0.2 7.8 +0.2 +0.4 7.9 7.6 +0.3 7.6 7.6 7.5 +0.2 +0.2 7.5 -- +0.2 7.2 +0.1 +0.3 7.0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Individual 9M 2017: P44.2bn 14% 8% • Revenues in 3Q17 9M 2016: P51.3bn (7.0) -1.2 impacted by three long-weekends 3% during the quarter 9% 5% 2% 18.0 -0.5 17.4 - +1% 2% and other -1.6 -0.7 15.8 -0.4 15.1 +0.1 -0.2 extraneous events 14.9 14.7 14.6 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 6

PLDT Group: up: Cons nsol olid idated ted Service vice Reven enues ues (by Product Type)* (Php in billions) 9M17 vs 9M16 3Q17 vs 3Q16 Stable year-on-year Lower by P4.5bn or 4% LEC, mobile LEC, mobile Data, broadband International International domestic Data, broadband domestic and digital voice and fixed voice and fixed voice and and digital voice and platforms line domestic SMS others line domestic platforms others SMS voice voice +5.0 -5.1 -2.4 -2.0 +1.8 +0.1 -1.4 111.8 +11% -24% -0.6 -7% 107.3 -18% +12% -21% +1% 36.1 36.1 -16% AMT : AMT: 49.6 16.6 32.3 8.8 17.0 5.3 10.9 2.9 % to Total Conso Service Revenues: % to Total Conso Service Revenues: 46% 16% 30% 8% 47% 15% 30% 8% 9M16 3Q16 9M17 3Q17  Revenues from data, broadband and digital platforms, accounting for 46% of total consolidated revenues, grew by P5.0bn or 11% year-on-year to P49.6bn  Mobile internet revenues higher by 17% or P2.1bn to P14.7bn  Home broadband revenues up by 16% or P2.1bn to P14.9bn -- increase represents 71% of total industry growth  Corporate data revenues higher by 16% or P2.0bn to P14.5bn -- growth accounts for 87% of total industry growth  In 9M17, data/broadband represent 62% of Fixed Line* and 36% of Wireless service revenues*, from 59% and 30%, respectively, in 9M16  Consolidated service revenues of P36.1bn in 3Q17 were higher by 1% or P0.5bn quarter-on-quarter and stable year-on-year  Home broadband revenues of P5.3bn up by 18% or P0.8bn year-on-year, and 7% or P0.4bn vs 2Q17  Corporate data revenues of P4.8bn higher by 18% or P0.7bn vs 3Q16 and 2% or P0.1bn quarter-on-quarter  Mobile internet revenues of P5.1bn up by 15% or P0.7bn year-on-year and 3% or P0.1bn vs 2Q17 * Net of interconnection costs 7

PLDT Group: up: Cons nsol olid idated ted Service vice Reven enues ues (by Business Unit)* (Php in billions) 9M17 vs 9M16 3Q17 vs 3Q16 -3.2 * -4.5 +0.6 -21% -4% +100% +2.6 +11% 1.1 12.4 107.3 +2.6 Stable 25.3 +0.9 -0.7 +0.1 +12% Y-o-Y +11% -15% +43% -7.0 +1.0 24.3 36.1 4.1 0.4 -14% +13% 8.5 -1.2 44.2 -8% 8.5 14.6 Individual Home Enterprise Intl Voyager 9M17 Individual Home Enterprise Intl Voyager 3Q17 and and and and Carrier Others Carrier Others % to Total Conso Service Revenues: % to Total Conso Service Revenues: 41% 23% 24% 11% 1% == 100% 41% 23% 24% 11% 1% == 100% 47% 47%  Combined Home and Enterprise revenues account for 47% of total service revenues, greater than the 41% contribution from the Individual segment  In 9M17, Home and Enterprise service revenues grew by 12% and 11%, respectively  Data and broadband remain the growth drivers of the Home, Enterprise and Individual segments representing 62%, 63% and 39% of total service revenues, respectively * P0.1bn if including deconsolidated revenues of P0.5bn in 2016 8