Macquarie ASEAN Conference 27-28 August 2019 | The Fullerton Hotel - PowerPoint PPT Presentation

Macquarie ASEAN Conference 27-28 August 2019 | The Fullerton Hotel Singapore

Key Investment Thesis Superior execution and focus on a differentiated customer experience reinforce Globe as the preferred brand for the Filipinos’ digital lifestyle choices , spearheading the growth in data adoption Fixed broadband provides new catalysts for growth, given low penetration and growing demand for home broadband Growth is further enabled by the strong Philippine economic outlook, the growing young and data- centric population Expanding avenues of growth through prudent investments into adjacencies in the digital space A culture built around customer centricity and innovation; Enabled by highly engaged, energized and purpose-driven employees Remaining focused towards creating greater corporate value via efficient capital management 2

Superior execution and focus on a differentiated customer experience reinforce Globe as the preferred brand for the Filipinos’ digital lifestyle choices, spearheading the growth in data adoption. Globe is the preferred brand for the Filipino’s digital lifestyle choices, recording solid growth in all data - related categories Mobile Data Revenues Mobile Data Revenues Home Broadband Revenues Corporate Data Revenues Home Broadband Revenues Corporate Data Revenues (in Php Mn) (In Php Mn) (In Php Mn) (In Php Mn) (in Php Mn) (in Php Mn) 6,294 10,554 34,037 +47% +21% +13% 5,493 8,727 YoY YoY YoY 23,417 3,191 5,347 3,104 17,549 5,207 16,488 2,826 4,429 +15% +21% 11,935 +45% +3% +6% +3% YoY YoY YoY QoQ QoQ QoQ 2Q18 1Q19 2Q19 6M18 6M19 2Q18 1Q19 2Q19 6M18 6M19 2Q18 1Q19 2Q19 6M18 6M19 Data Revenues as a Percentage of Total Wireless Data Traffic MDS Users Service Revenues (1PB = 1,024TB) 6M18 6M19 6M18 6M19 389 764 37.5 35.4 70% 58% +96% +7% PB PB MILLION MILLION 3 6M19 6M18

Superior execution and focus on a differentiated customer experience reinforce Globe as the preferred brand for the Filipinos’ digital lifestyle choices, spearheading the growth in data adoption. We bring new innovations and partnerships to remain relevant to data users, being the preferred mobile brand for data services SOCIAL NETWORKING ENTERTAINMENT MUSIC UNLICHAT Content Partnerships Spotify tify With Unlichat, you can enjoy all-day use of No Credit Card? No Viber, FB Messenger, Problem. Get Spotify Kakao, GMessage and Premium with your other major chat apps Globe Number, even like LINE & WeChat! without a credit card. No need for a WIFI connection to use all these! VIDEOS AND GAMES ESPORTS Globe is spearheading the Make moments development of the matter with an Esports ecosystem by additional 2 GB of providing its customers data for videos and games. There’s more with internationally to your streams and seeded tournaments, gameplays with streaming content, and bigger data. exclusive gaming promos. 4

Superior execution and focus on a differentiated customer experience reinforce Globe as the preferred brand for the Filipinos’ digital lifestyle choices, spearheading the growth in data adoption. New products and services geared for the Filipino digital lifestyle Globe at Home Air Fiber GCash expands Puregold Free Promo Codes for partnership with subscription to GoSakto90 5G Unveiled Scan to Pay via Barcode You can now pay with Free Promo Codes for 0917 Lifestyle, Saga Events GCash QR in Starbucks! Bring Back StyleFestPH subscription to HomeSurf 5

As the Filipinos’ preferred brand for digital lifestyles, Globe is reaping the benefits of the robust growth in data services We provide superior data experience to our customers through continuous investments in our data network Fast-tracking the roll-out of LTE service using Globe signs MOU with ISOC, edotco to Globe, Aboitiz-Frontier Towers ink frequencies from the SMC deal and NTC Fast Track ICT Infra Build in PH common tower deal Roll-out of LTE frequencies in full swing Home Broadband roll-out • For 1H19, Globe deployed over 3,300 new LTE sites for • For 1H19, Globe rolled out ~515,000 lines with remainder to increased capacity and coverage. be deployed progressively • Deployment ramping up progressively, targeting sites with Globe deploys new MIMO technology high demand. • Globe deploying massive MIMO technology which utilizes LTE spectrum to accommodate more users at higher data rates with better reliability. 6

Key Investment Thesis Superior execution and focus on a differentiated customer experience reinforce Globe as the preferred brand for the Filipinos’ digital lifestyle choices, spearheading the growth in data adoption Fixed broadband provides new catalysts for growth, given low penetration and growing demand for home broadband Growth is further enabled by the strong Philippine economic outlook, the growing young and data- centric population Expanding avenues of growth through prudent investments into adjacencies in the digital space A culture built around customer centricity and innovation; Enabled by highly engaged, energized and purpose-driven employees Remaining focused towards creating greater corporate value via efficient capital management 7

Fixed broadband provides new catalysts for growth, given low penetration and growing demand for home broadband To meet sustained demand for connectivity, broadband presents a unique opportunity for near-term growth, to be enabled by further CAPEX investments Low penetration rates present opportunities for significant growth in home broadband Interne net t Penetra trati tion on Rate House usehol hold d Penetrat atio ion n Rate Broadband Revenu nue Growth +9 +97% ~ 3x 3x 25% 13% 10% 2012 2013 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 2015 2020 Source: Company estimates Source: We are Social Device Usage: Philippines vs. Southeast Asia Increasing online video consumption is indicative of increasing demand for 38% 65% 29% faster and better home internet connection 70% 18% 40% 8 Source: We are Social

Key Investment Thesis Superior execution and focus on a differentiated customer experience reinforce Globe as the preferred brand for the Filipinos’ digital lifestyle choices, spearheading the growth in data adoption Fixed broadband provides new catalysts for growth, given low penetration and growing demand for home broadband Growth is further enabled by the strong Philippine economic outlook, the growing young and data- centric population Expanding avenues of growth through prudent investments into adjacencies in the digital space A culture built around customer centricity and innovation; Enabled by highly engaged, energized and purpose-driven employees Remaining focused towards creating greater corporate value via efficient capital management 9

Growth is further enabled by the strong Philippine economic outlook, the growing young and data-centric population Philippine Macroeconomic Environment 2019 GDP Forecasts for Select Philippine GDP Growth Southeast Asian Countries 6.9% 6.7% 6.6% 7.2% 6.6% 6.4% 4% 7.6% 6.2% 5.1% 4.6% 5.5% 6.1% 5.8% 3.9% 2.7% 3.9% 1.1% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q19 Malaysia Philippines Vietnam Indonesia Thailand Singapore Source: NSO, ADB Source: Bloomberg Philippine Overseas Philippine Inflation and Remittances Forex Rates (in US$ Billions) 56.18 10.0% 60 8.3% 52.2235 28.9 8.0% 28.1 26.9 50 23.0 6.0% 3.4% 40 18.8 4.0% 30 12.3 2.0% 0.0% 20 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 6M19 2010 2013 2016 2017 2018 6M19 Inflation Exchange Rate 10 Source: BSP Source: NSCB, BSP

Growth is further enabled by the strong Philippine economic outlook, the growing young and data-centric population Philippine Population and Social Media Metrics Filipinos of ages 24 and below comprise …and is still expected to grow over the ~50% of total population… next three decades Youth Population (2000-2040) Percentage of Youth 2019 estimate 22.2 22.2 21.5 20.6 20.1 20.3 19.8 18.2 16.9 15.1 31% 11.0 11.1 10.4 10.1 9.6 9.9 10.0 8.4 8.0 7.1 19% 11.1 11.2 11.1 10.5 9.7 10.1 .1 10.2 10.2 8.9 8.0 2000 2005 2010 2015 2018 2020 2025 2030 2035 2040 0-14 15-24 25-54 55-64 65+ 15-19 20-24 The Philippines is dubbed the “Social Networking Capital of the World” . . . and prior to this, the “SMS Capital of the World” 76 76 2 Hours rs 4 Hours rs 10 Hour urs 3 Hours rs 74% 74% 6 Min 12 Min 2 Min 33 Min Millio ion Ave. Daily Time FB users under 35 Active social Ave. Daily Ave. Daily Ave. Daily Spent Streaming Time Spent on Time on TV Viewing years old media users Music the Internet Social Media Time* 11 * Broadcast, streaming and video on demand Source: Digital in 2019: The Philippines – We Are Social