[PPT] - FY 2016 Investors Briefing Financial and Operating Results March PowerPoint Presentation

SLIDE 1

FY 2016 Investors’ Briefing

Financial and Operating Results March 20, 2017

SLIDE 2

Business Segments

Media Networks & Studio Entertainment Cable, Satellite & Broadband Digital & Interactive Media Consumer Products & Experiences

Pay TV (Cable &

Satellite)

Broadband
Online
Mobile
Over-the-Top
Live events
Themepark
Home shopping
ABS-CBN store
Entertainment
News
Global
Film & Music
DTT
Sports
Cable networks
Publishing

SLIDE 3

2016 Highlights

ABS CBN delivers a PHP3.5B net income, a 39% YoY growth

Media Networks and Studio Entertainment

Remains strong at net income of P4.2 billion, 18% YoY improvement
Net income margin expanding from 11% to 13%, 28% YoY improvement
ABS CBN leads in total national day ratings and audience share boosted by

strong Mega Manila ratings

Distributed 2.3 million DTT boxes (cumulative) by end of year
Record-breaking box office performance of Super Parental Guardians at

P600 million Cable, Satellite and Broadband

Added 150,000 subscribers, a 17% YoY improvement
Broadband revenue grew by P811 million, a 49.2% YoY growth
Successful launch for DTH business with 112,000 subscribers in 7 months

Digital and Interactive Media

7 million registered users in ABS-CBN owned OTT platforms
ABS-CBN.com is the #1 Philippine based website across all categories in the

Philippines

Digital advertising revenue grew by 26% YoY

Consumer Products and Experiences

ASAP Live in New York City entertained close to 9,000 live audience
Kidzania opened its facilities to 362,000 visitors for the year

SLIDE 4

Consolidated 2016 Financial Results

33,544 38,278 41,630 2014 2015 2016

Revenue

7,476 7,940 9,853 2014 2015 2016

EBITDA

2,030 2,545 3,525 2014 2015 2016

Net Income

+ 9%

Net income attributable to parent increased from P2.9B in 2015 to P3.9B in 2016

+ 14% + 6% + 24% + 25% + 39% + 4% 0% 0%

(In millions Php)

SLIDE 5

Consolidated 2016 Financial Results

6% 7% 9% 2014 2015 2016

Net Income Margin

22% 20% 22% 2014 2015 2016

EBITDA Margin

8% 9% 11% 2014 2015 2016

ROE

+ 1% + 2% 0% 0%

2%

+ 2% 0% + 1% + 2%

SLIDE 6

Consolidated 2016 Quarterly Financial Results

9,795 11,195 10,176 10,464

1Q 2Q 3Q 4Q

Revenue

2,163 2,974 2,277 2,439

1Q 2Q 3Q 4Q

EBITDA

761 1,353 734 677

1Q 2Q 3Q 4Q

Net Income

+ 14%

9%

+ 3% + 37%

23%

+ 7% + 78%

46%
8%

(In millions Php)

SLIDE 7

27,828 32,200 35,668 5,715 6,078 5,961

2014 2015 2016

BY GEOGRAPHICAL LOCATION

Domestic International 18,880 21,265 23,650 14,664 17,013 17,980

2014 2015 2016

BY REVENUE CATEGORY

Ad Sales Consumer

Consolidated 2016 Revenue

+ 9%

44% 44% 43% 56% 56% 57% 83% 84% 86% 17% 16% 14%

+ 9% + 14% + 14% + 0% + 0%

SLIDE 8

Consolidated 2016 Quarterly Revenue

1% 1%

58% 57% 51% 42% 43% 49% 83% 84% 86% 17% 16% 14% 5,582 6,935 5,803 5,330 4,213 4,260 4,014 5,493 Q1 Q2 Q3 Q4

BY REVENUE CATEGORY

Ad Sales Consumer

41%

57% 43% 62% 38% 59% 51% 49%

8,254 9,777 8,349 9,335 1,541 1,418 1,468 1,489 Q1 Q2 Q3 Q4

BY GEOGRAPHICAL LOCATION

Domestic International

85% 16% 84% 87% 13% 15% 86% 14%

+ 14%

12%

+ 10% + 10%

12%

+ 14%

SLIDE 9

10,482 12,121 12,661 8,879 11,131 12,017 11,008 11,434 12,012 2014 2015 2016 GAEX Cost of Sales Production Cost

Consolidated 2016 Costs and Expenses

+ 6%

+ 5% + 8% + 4%

30,369 34,686 36,690 + 14%

+ 4% + 25%

+ 16%

3%
1%

+ 6%

0%

SLIDE 10

Consolidated 2016 and 2015 Quarterly Costs and Expenses

2,334 2,883 3,149 3,755 2,639 2,768 3,001 2,723 2,648 2,771 2,847 3,168 1Q 2Q 3Q 4Q GAEX Cost of Sales Production Cost

2015 Quarterly

2,845 3,193 3,035 3,588 2,833 2,891 3,065 3,228 2,961 3,269 2,882 2,900 1Q 2Q 3Q 4Q GAEX Cost of Sales Production Cost

2016 Quarterly

+ 13% + 11% + 1% 0%

SLIDE 11

Consolidated 2016 Segment Report

Segment 2014 2015 2016 2014 2015 2016 Media Networks & Studio Entertainment 24,645 28,511 30,568 5,030 4,719 6,179

Margin 20% 17% 20%

Cable, Satellite & Broadband 7,764 8,083 8,761 404 186 219

Margin 5% 2% 2%

Digital & Interactive Media 653 712 781 (2,134) (1,155) (1,265) Consumer Products & Experiences 482 971 1,520 (126) (157) (193) Operating Income Operating Revenues

SLIDE 12

Free-to-Air

Advertising revenue growth at 15% YoY

Source: Kantar Media TV Ratings Measurement

Total Day National Audience Share for 2016

CHANNEL 2014 2015 2016

ABS-CBN 46.67 47.03 49.58

GMA 7 33.90 35.50 33.80 TV 5 9.20 7.40 6.50 Other FTA 3.80 3.90 4.10 Other Cable 6.60 6.50 6.50

17.0 19.4 22.4 2014 2015 2016

Advertising Revenue

+ 15%

SLIDE 13

Source: Kantar Media TV Audience Measurement – Total Homes, Total Philippines (Urban + Rural) Period covered excludes Holy Week

ABS-CBN

GMA TV5

Channel 2 Audience Share

ABS CBN Channel 2 leads across all time blocks

2014 2015 2016

NOONTIME BLOCK (12NN - 3PM)

41.5

34.8 9.7

36.8

42.4 6.5

43.7

34.6 5.7

2014 2015 2016

MORNING BLOCK (6AM - 12NN)

35.8 36.6

11.4

37.4 37.4

8.2

38.6

34.9 6.6

2014 2015 2016

AFTERNOON BLOCK (3PM - 6PM)

42.2

33.9 9.8

41.4

36.9 8.02

44.4

34.6 6.8

2014 2015 2016

PRIMETIME BLOCK (6PM - 11PM)

49.3

32.1 7.8

49.5

31.0 7.1

48.5

32.5 6.6

SLIDE 14

ABS-CBN leads in total day national ratings with shows dominating Top 20 spots in 2016

Source: Kantar Media TV Audience Measurement – Indivs 13+, National

RANK CHANNEL PROGRAM RATINGS 1 ABS-CBN FPJ's Ang Probinsyano Mon-Fri 40.0 2 ABS-CBN The Voice Kids Sunday Sun 38.2 3 ABS-CBN The Voice Kids Saturday Sat 37.0 4 ABS-CBN Pangako Sa'yo Mon-Fri 34.3 5 ABS-CBN Dolce Amore Mon-Fri 33.8 6 ABS-CBN Pilipinas Got Talent Sunday Sun 32.0 7 ABS-CBN Pilipinas Got Talent Saturday Sat 31.9 8 ABS-CBN Dance Kids Saturday Sat 31.2 9 ABS-CBN Pinoy Boyband Superstar Sunday Sun 30.8 10-11 ABS-CBN Dance Kids Sunday Sun 30.7 10-11 ABS-CBN Wansapanataym Sun 30.7 12 ABS-CBN TV Patrol Weekday Mon-Fri 30.6 13 ABS-CBN MMK 25 Sat 29.9 14 ABS-CBN Pinoy Boyband Superstar Saturday Sat 29.1 15 ABS-CBN Home Sweetie Home Sat 24.9 16 ABS-CBN Magpahanggang Wakas Mon-Fri 24.4 17 ABS-CBN Goin' Bulilit Sun 23.3 18 GMA Encantadia Mon-Fri 23.2 19 ABS-CBN Rated K Handa Na Ba Kayo? Sun 21.3 20 GMA Alyas Robinhood Mon-Fri 21.0

SLIDE 15

TV Patrol & UKG: Most watched news programs

*TV Patrol ratings based on quarterly average

5.0

10.0 15.0 20.0 25.0 30.0 35.0 2014 2015 2016

PRIMETIME NATIONAL RATINGS

TV Patrol 24 Oras

2.0

4.0 6.0 2014 2015 2016

MORNING NATIONAL RATINGS

Umagang Kay Ganda Unang Hirit

SLIDE 16

Halalan & Ms. Universe: Most watched broadcast coverage

40.6%

Source: Kantar Media TV Ratings Measurement

SLIDE 17

Sports & Action: Most number of Sports Properties on Free-to-Air

Launched our high-definition cable channel on Sky Cable and Destiny Cable in 2016

SLIDE 18

International Business

Generated P5.9 B in revenues, 14% of total revenues

TFC Channels

Program Syndication Territories

ASIA AFRICA OTHERS Cambodia Kenya Mexico Indonesia Nigeria Peru Malaysia Seychelles Kazakhstan Myanmar Tanzania Thailand Uganda Vietnam Middle East 2.9 3.0 3.1 2014 2015 2016

TFC Viewership

5,651 9,318 7,777 2014 2015 2016

Revenue

64 102 150 2014 2015 2016

Program Syndication

17%

+ 47% + 3%

SLIDE 19

Film & Music

Star Cinema sets new record for highest grossing Filipino film

21% 79%

Market Share

Star Cinema Others

Digital and non-digital concerts, Talent development and Icon building

1,304 1,258 1,316 2014 2015 2016

Revenue

P600M

+ 5%

SLIDE 20

Digital Terrestrial Television

21%

More than 2.3 million

cumulative boxes sold to date

Affordable TV Plus pricing by

lowering SRP from P2,500 to P1,999 and now P1,499

DTT channels now available in

iWantTV, Sky Cable and Sky Direct

SLIDE 21

Cable channel group accounts for 23% audience share of total nationwide cable channels only viewing; with over 356 active cable operators nationwide

Source: Kantar Media TV Audience Measurement – Total Cabled Homes, Total Philippines (Urban + Rural) Date covered: Jan-Dec 2016 (Excluding Holyweek)

Cable Networks

Represented Channels ABS-CBN Channels

601M 651M 542M 395M 480M 375M

2 0 1 4 2 0 1 5 2 0 1 6

REVENUE

Airtime Consumer

18%

SLIDE 22

Cable, Satellite & Broadband

7.8B 8.1B 8.8B 2014 2015 2016

Revenue Total revenues grew by

P644M driven by a

49% increase in broadband revenues New all-in-one internet, cable TV and video-on-demand subscription plans now available via One Sky

FY 2015 FY 2016

Sky Subscribers

Cable DTH Broadband

738

881K 1.03M

143 738 207 112 711

Our broadband subscriber base continues to expand, growing by 45% in 2016. DTH subscribers reached 112k by end of year.

+ 9% + 17%

SLIDE 23

iWant TV and TFC.tv has over

7M combined active subscribers to

date spending an average of 320 minutes per month

ABS-CBN.com is the #1 Philippine based website across all categories in the Philippines ABS-CBN one domain has an average of 26.8M users with over 250M page views per month

ABS-CBN digital properties

generated Php447M revenue in 2016, 26% up vs. last year, driven mainly by news and corporate website

ABS-CBN Mobile ended the year

with over 904,000 subscriber count and over 7,500 activations

Digital and Interactive Media

2015 2016

904K 493K ABS-CBN Mobile subscribers

35K 57K 54K

2014 2015 2016 IWant TV TFC.TV

4.6M 2.5M 6.4M

+23% +39%

Activity Platform

No. of

Subscribers Watching 6.4M 4.6M in 2015 Watching (Overseas) 53,646 56,761 in 2015 Watching 8,147 1,376 in 2015 Listening and watching 43,637 Reading 86,304 Unique visitors Movie community Coming soon

SLIDE 24

Our events bring the ABS experience closer to our audiences with over P169M revenues generated worldwide Generated P514M in total revenue in 2016 or more than 130% growth from 2015. 362k attendance for the year. A total of 66 role playing establishments with 104 activities

New Attractions and Activities

Consumer Products and Experiences

SLIDE 25

FY 2015 FY 2016

Retail Revenue

32M 26M

668 M 824M FY 2015 FY 2016

ACJO Revenue

Continues to offer quality

home TV shopping and

nline experience
Generated P824M in

revenues, 23% higher than 2015. Revenue is 23% higher than 2015 due to introduction of new products and opening of new stores

Consumer Products and Experiences

+ 23% + 23%

SLIDE 26

Spent Php 7.7B out of the Php 8.8B budget for 2016

Capital Expenditures

6,338 8,779

5,258 7,715 12,060

514 1,448 2,863 2,159 1,881 4,108 2015 2016

Program Rights Cable, Satellite & Broadband Digital initiatives, Maintenance & Others

5,258 7,715

+ 47%

SLIDE 27

Balance Sheet Highlights

69,944 72,734 2015 2016

Total Assets

20,530 20,472 2015 2016

Total Borrowings

28,715 31,692 2015 2016

Equity

Ratios 2015 2016 Current 1.88 2.02 Debt-to-Equity 0.71 0.65 N et Debt-to-Equity 0.31 0.30

SLIDE 28

Except for historical and operating data and other information of historical matters, the statements contained herein are “forward-looking statements”. The words “believe”, “intend”, “plan”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will” or other similar words are frequently used to indicate these forward looking statements. Any such forward-looking statement is not a guarantee of future performance and involves a number of known and unknown risks, uncertainties and other factors that could cause the actual performance, financial condition or results of operation of ABS-CBN to be materially different from any future performance, financial condition or results of operation implied by such forward-looking statement.

SLIDE 29