Globe Telecom Inc. Annual Stockholders Meeting April 13, 2016 - - PowerPoint PPT Presentation

Globe Telecom Inc.

Annual Stockholders’ Meeting

April 13, 2016 Fairmont Makati

Message to Shareholders

• Mr. Jaime Augusto Zobel de Ayala

Chairman

Record-level Performance Across the Board

+20%

44.0

million

52.9

million

MOBILE SUBSCRIBERS +55%

2.8

million

4.3

million

BROADBAND SUBSCRIBERS*

FY14 FY15 FY14 FY15

Wireless Wired

* Includes Bayan subscribers

GROSS SERVICE REVENUE EBITDA NET INCOME FY15 vs. FY14

+15%

+17% +23%

Strong Industry Outlook Given Robust Economic Performance

OFW Remittances (in USD Bn) Annual GDP Growth

3.9% 6.6% 7.2% 6.1% 5.8% 2011 2012 2013 2014 2015 20.1 21.4 23.0 24.6 25.8 2011 2012 2013 2014 2015

Source: BSP Source: BSP

6.2%

6-year Average real GDP Growth

BPO Industry Revenue Tourist Expenditures to the Philippines (in Php Bn)

109.2 124.5 160.2 189.9 214.9 227.6 2010 2011 2012 2013 2014 2015

Source: gov.ph

Tourist Arrivals (in Mn)

3.52 3.9 4.3 4.7 4.8 5.4 2010 2011 2012 2013 2014 2015

Source: gov.ph

$21.3B $25B

2015 2016 Outlook

48 Mn. 3H 42M

115% 67%

• f FB users in the country

are under 30 years old Active Social Media Users

• Ave. Daily Use
• f Social Media

Industry Mobile Penetration

Source: Globe ,wearesocial.com

~41% Globe’s Smartphone Penetration in 2015

Industry Revenues (in Php Bn)

Strong Industry Outlook Given Data-Centric Population

Industry Subscribers (in Mn)

285.5 296.6

2014 2015

124,075 130,819

2014 2015

+4% +5%

Continued Commitment to Shareholders

Total Shareholder Return

Dividend Yield Share Price Appreciation TSR

4.7%* 5.8% 10.5%

*Based on 2015 dividends of P83/share *Based on closing share price of Php1,852 as of December 29, 2015

2015 Dividends

P11.0B

Represents approximately 76% of 2014 Core NIAT In line with dividend payout policy of 75-90% of prior year’s Core NIAT

11%

Creating Shared Value to All Stakeholders

Inside Aklan Project 1 Phone

Globe’s Circle of Happiness

Many thanks and good luck GCA!

Message to Shareholders

• Mr. Ernest L. Cu

President and CEO

Performance Highlights

Service Revenues EBITDA Net Income

P113.7B P45.8B P16.5B

• Record revenues driven by robust growth of data across

all key segments and the consolidation of Bayan results

• Excluding Bayan, FY15 grew 12% YoY.
• Record FY15 EBITDA on the back of record service

revenues despite higher operating expenses

• Excluding Bayan, FY15 EBITDA reached Php44.8Bn
• Record FY15 NIAT increased by 23% YoY following

consistent quarterly EBITDA growth in 2015

• Excluding Bayan, FY15 NIAT reached Php16.3Bn.

+15% +23% +17%

vs FY14 vs FY14 vs FY14

Dividends

P83/sh

+11%

vs FY14

• Payout in line with policy of distributing 75% to 90% of

prior year’s core net income

Broad-based, Data-driven Revenue Growth Marked by Outperformance in Mobile

42% 33%

Broadband Revenues* Fixed Line Data Revenues* Mobile Data Revenues**

* Includes Bayan Results * * Includes mobile browsing, VAS, GCash, other mobile content

Total Data Revenues as a Percentage of Total Service Revenues* FY14 FY15

+55%

P22.1B

+38%

P17.5B

+40%

P7.7B

Mobile Revenues Subscribers Postpaid P31.9B (+7%) 2.4M (6%) Prepaid P53.2B (+10%) 50.5M (+21%) Total P85.1B (+9%) 52.9M (+20%)

Providing Wonderful Customer Experience through Partnerships

Globe x CHROMECAST HOOQ wins Best Mobile App for Video at the 2016 GLOMO Awards Globe x WALT DISNEY

Providing Wonderful Customer Experience through Innovations and Network Development

GEN 3 STORES Globe x HUAWEI

Strategic Initiatives: Acquisition of Bayan and Sale of Yondu

• Sale of up to 51% stake in Yondu for a

total investment amount of P900 million

• Geared towards transforming Yondu into

a regional arm for digital content distribution, joint development hub for new IP and a vehicle to take Globe’s foreign brand partnerships

• Independent platform for partnerships
• Completed acquisition of up to 98.6% of

Bayan through conversion of debt into equity and acquisition of shares from the Lopez Group

• Allows Globe to unlock synergy opportunities

between Globe and Bayan

• Received

approval to successfully exit financial rehabilitation from the Rehab Court

• n November 2015
• Ongoing network rehabilitation as part of

Globe’s planned modernization of Globe’s broadband and data network

Providing Wonderful Customer Experience through Innovations and Network Development Globe University Employee Engagement Score

89%

vs.

84% Global High Performance Norm 82% Global Telco Norm 85% Philippine National Norm

Awards

• Sales & Marketing
• Technical
• Professional Development
• Leadership

2015 PSE Bell Awards

• Top 5 Publicly Listed Company in the Philippines

ASEAN Corporate Governance Awards

• Top 50 Publicly Listed Companies for ASEAN
• Top 3 Publicity Listed Companies for Philippines

People Management Association of the Philippines

• Renato Jiao: 2015 People Manager of the Year

2015 Global Telecoms Business Power 100

• Ernest Cu (One of the Ten Operators from Asia)

Frost & Sullivan Philippines

• Telecom Service Provider of the Year
• Mobile Service Provider of the Year

Finance Asia's 15th edition of Asia's Best Companies

• Best Managed Public Companies
• Best Investor Relations
• Most Committed to Paying Good Dividends
• Best CEO (Ernest Cu)

18th Annual Telecom Asia Awards

• Best Emerging Market Operator

20th GSMA Global Mobile Awards

• Best Use of Mobile in Emergency and Humanitarian

Situations for BPI Globe BanKO