Globe Telecom Inc. Annual Stockholders Meeting Ballroom 2, Fairmont - - PowerPoint PPT Presentation

Globe Telecom Inc.

Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014

Message to Shareholders

• Mr. Jaime Augusto Zobel de Ayala

Chairman

90.5

Billion

38.5

Million

2.0

Million

Broadband Customers Mobile Subscribers Consolidated Service Revs Globe registered another banner year, with record-high revenues, driven in part by robust subscriber expansion

Globe is a direct beneficiary of the robust Philippine economic environment in 2013

OFW Remittances

In USD Billions

Philippine GDP Growth

0.6% 2.6% 5.0% 5.1% 5.5% 5.7% 7.7% 7.2%

2013 GDP Growth

Selected Asian Countries

• Record level of remittances in 2013
• Sustainable growth momentum due to

growth in domestic consumption, private sector investments, and increased government spending.

7.2%

Investments in Globe’s infrastructure play a central role in enabling the growth of many industries

Enabling various industries … … through our infrastructure investments… … which help seed economy and employment. yment.

Globe competes through product innovation and differentiated level of customer service

2.0

Million

Postpaid Subscribers

Globe’s product innovation and differentiation has led to robust improvements in revenues and core net income

Fixed Line Data

Service Revenues Core Net Income

Php 90.5B Php 11.6B

2013 Financial Highlights

Mobile Broadband Fixed Line Data

+8% +20% +13%

Broad-based Revenue Growth

Consolidated

+9%

13% 9%

Globe invested in a modernized network in preparation for the growing demand for data and internet connectivity

Data continues to be key source of growth

• Mobile browsing revenues up over

40% year-on-year

• Increasing smartphone penetration

Initiative to modernize into data-ready network on track

LTE sites in key CBDs and tourist spots

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
• utlets servicing 460,000

retail customers

Globe has evolved from simply offering traditional telephony to provide expanded services, even in adjacent spaces

Globe’s strong performance reflective in significant growth in shareholder value

GLO* Yield of Listed Phil Corporates 2yr PDST-F 5yr PDST-F

GLO Dividend Yield

4.6% 2.0% 3.3% 4.3%

6.2% 49.2% 55.4%

2013 Total Shareholder Return

• First semi-annual cash dividend of

P37.50 per common share paid last 20 March 2014 to shareholders on record as

• f 26 February 2014
• Starting the 2nd half of the year, Globe

will distribute quarterly dividend payments to enable better cash management and liquidity planning and provide a more consistent dividend distribution to our shareholders

* On an annualized basis and using GLO closing price as of December 31, 2013 of Php1,640

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

In Php Millions 67,189 72,764 +8% 2012 2013

Globe Postpaid/TM Revenues

In Php Millions

27,064 16,827

+18%

Globe Postpaid

TM

• Cons. Service Revenues

In Php Millions 82,742 90,500 +9% 2012 2013 +8%

Total Mobile Subscribers

In Millions

1.86 1.73 1.90 1.98 2.03 4Q13 3Q13 2Q13 1Q13 4Q12

35.14 33.12 36.09 36.52 38.48 +16%

Broadband Revenues

In Php Millions 8,721 10,440 +20% 2012 2013

Broadband Subscribers

In Thousands 341 378 +22% 2013 2012 1,331 1,654 1,672 2,032

Fixed Line Data Revenues

In Php Millions 4,167 4,691 +13% 2012 2013

EBITDA

In Php Millions 35,014 36,514 +4% 2012 2013

Core Net Income

In Php Millions 10,264 11,617 +13% 2012 2013

With sustained revenues momentum from mobile, broadband and fixed line, EBITDA and core net income show solid improvements

Globe’s strong performance driven by continuous commitment to product innovation and differentiated customer experience

GoSAKTO

Globe’s Network Modernization and IT Transformation Programs

• 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
• 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.

Network Modernization IT Transformation

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

2010

2013

Globe Telecom Inc.

Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014