Globe Telecom Inc. Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014
Message to Shareholders Mr. Jaime Augusto Zobel de Ayala Chairman
Globe registered another banner year, with record-high revenues, driven in part by robust subscriber expansion 90.5 38.5 2.0 Billion Million Million Mobile Broadband Consolidated Subscribers Customers Service Revs
Globe is a direct beneficiary of the robust Philippine economic environment in 2013 OFW Remittances 2013 GDP Growth In USD Billions Selected Asian Countries 7.2% 7.7% 7.2% 5.7% 5.5% 5.1% 5.0% 2.6% 0.6% Philippine GDP Growth • Record level of remittances in 2013 • Sustainable growth momentum due to growth in domestic consumption, private sector investments, and increased government spending.
Investments in Globe’s infrastructure play a central role in enabling the growth of many industries … through our infrastructure Enabling various industries … investments… … which help seed economy and employment. yment.
Globe competes through product innovation and differentiated level of customer service 2.0 Postpaid Subscribers Million Globe Concept Stores facebook.com/ Dial *143# Globe Hotline @Talk2Globe accounts.globe. com.ph GlobePH
Globe’s product innovation and differentiation has led to robust improvements in revenues and core net income 2013 Financial Highlights Core Net Income Service Revenues 9% 13% Php 90.5B Php 11.6B Broad-based Revenue Growth +20% +13% +9% +8% Mobile Broadband Fixed Line Consolidated Fixed Line Data Data
Globe invested in a modernized network in preparation for the growing demand for data and internet connectivity Initiative to modernize into Data continues to be data-ready network on track key source of growth LTE sites in key CBDs and tourist Mobile browsing revenues up over • spots 40% year-on-year • Increasing smartphone penetration
Globe has evolved from simply offering traditional telephony to provide expanded services, even in adjacent spaces
Globe has evolved from simply offering traditional telephony to provide expanded services, even in adjacent spaces BPI Globe BanKO Has extended over Php900 • million in wholesale loans to reach 60,000 micro- entrepreneurs Nearly 2,000 partner • outlets servicing 460,000 retail customers
Globe’s strong performance reflective in significant growth in shareholder value 2013 Total Shareholder Return GLO Dividend Yield 55.4% 4.6% 49.2% 4.3% 3.3% 2.0% 6.2% 2yr PDST-F GLO* Yield of 5yr PDST-F Listed Phil Corporates * On an annualized basis and using GLO closing price as of December 31, 2013 of Php1,640 • • Starting the 2 nd half of the year, Globe First semi-annual cash dividend of will distribute quarterly dividend P37.50 per common share paid last 20 payments to enable better cash March 2014 to shareholders on record as management and liquidity planning and of 26 February 2014 provide a more consistent dividend distribution to our shareholders
Globe’s commitment to shared value and corporate social responsibility Globe Bridging Communities (Bridgecom) ILead IConserve IProsper IAccess IGive
Globe: Sustaining momentum, overcoming the challenges of a highly competitive market, and capitalizing on the opportunities of a changing telecommunications landscape
Globe Telecom Inc. Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014
Message to Shareholders Mr. Ernest L. Cu President and CEO
Globe’s 2013 consolidated and mobile revenues reached record highs, despite complexity of ongoing transformation initiatives and sustained competitive intensity Mobile Revenues Globe Postpaid/TM Revenues Cons. Service Revenues In Php Millions In Php Millions In Php Millions +9% +18% +8% 90,500 72,764 27,064 +8% 82,742 67,189 16,827 Globe TM 2012 2013 2013 2012 Postpaid Total Mobile Subscribers In Millions +16% 38.48 36.52 36.09 2.03 35.14 1.98 1.90 1.86 33.12 1.73 1Q13 2Q13 3Q13 4Q13 4Q12
With sustained revenues momentum from mobile, broadband and fixed line, EBITDA and core net income show solid improvements Broadband Revenues Broadband Subscribers Fixed Line Data Revenues In Php Millions In Thousands In Php Millions +13% +20% 4,691 10,440 2,032 4,167 8,721 +22% 378 1,654 1,672 341 1,331 2013 2012 2013 2013 2012 2012 EBITDA Core Net Income In Php Millions In Php Millions +4% +13% 36,514 11,617 35,014 10,264 2012 2013 2013 2012
Globe’s strong performance driven by continuous commitment to product innovation and differentiated customer experience GoSAKTO
Globe’s Network Modernization and IT Transformation Programs Network Modernization First phase of network modernization is fully complete. Globe is now embarking on building more sites, boosting capacity and enhancing network performance. Fiberization of target sites over 76% completed and 3G coverage expansion over 90% completed, providing customers with a faster mobile browsing experience. Over 9,400 km of fiber added to Globe’s existing FOC infrastructure in support of the Company’s optical and all -IP transport nationwide network. Nearly 700 of 4G LTE sites already in operation IT Transformation Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account management are underway to further improve customer experience. For 2014, Globe will continue its BSS transformation with the migration of mobile prepaid, broadband and landline subscribers. Transition to a new Enterprise Data Warehouse is also underway using top-tier data warehouse components to deliver superior data processing performance, comprehensive intelligence, and enhanced information value chain. With strategic focus and action, the capabilities and benefits of the new BSS and Enterprise Data Warehouse continue to be optimized.
Globe recognizes the challenges from over-the-top players that can provide alternatives to traditional telephony … .
… and Globe has embraced the challenge through partnerships with these OTT applications, like Viber and Facebook
Globe likewise pushed forth into adjacent spaces to complement its traditional telephony services Partnership with Plug and Play Tech Center
Globe’s biggest strength lies in its engaged employees Employee Satisfaction Index 73.48%
Employee engagement and malasakit on full display amidst challenges brought by natural calamities
Operationalizing sustainability into regular operations
Globe is committed to remain relevant through innovation and create a wonderful world for our subscribers 2013 2010
Globe Telecom Inc. Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014
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