PL PLDT DT Inc. 2017 First Quarter Financial and Operating Results - - PowerPoint PPT Presentation

SLIDE 1

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PL PLDT DT Inc.

2017 First Quarter Financial and Operating Results

12th May 2017

SLIDE 2

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Individual* Home*

Conso Service Revenues Conso Service Revenues

P14.7bn

• 18%

(P3.2bn)

P7.8bn +12%

+P0.8bn

Enterprise*

Conso Service Revenues

P8.5bn +13%

+P1.0bn

International*

Conso Service Revenues

P4.2bn

• 24%

(P1.3bn)

Voyager*

Conso Service Revenues

P0.3bn

+132%

+P0.2bn

PLDT T Grou

• up:

p: 1Q17 vs 1Q16 Fina nanci ncial al High ghlights lights

Conso Service Revenues

(net of interconnection costs: P2.1bn)

Wireless

Fixed Line

P35.6bn

Service Revenues* Service Revenues*

P20.8bn

• 16%

(P3.9bn)

P16.9bn +10%

+P1.5bn

• 7%

(P2.6bn)

* Net of interconnection costs ** Excluding gain from asset sales and EBITDA adjustments in 1Q16; no adjustments in 1Q17

EBITDA EBITDA Margin P16.5bn

• 1%

(P0.1bn)

44%

(1Q16: 41%)

Core Income (recurring**) P5.3bn

• 26%

(P1.9bn)

Cash Opex* P16.6bn

• 1%

(P0.2bn)

Subsidies and Provisions P2.2bn

• 52%

(P2.4bn)

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Individual* Home*

Conso Service Revenues Conso Service Revenues

P14.7bn

• 2%

(P0.4bn)

P7.8bn +2%

+P0.2bn

Enterprise*

Conso Service Revenues

P8.5bn +7%

+P0.6bn

International*

Conso Service Revenues

P4.2bn

• 12%

(P0.6bn)

Voyager*

Conso Service Revenues

P0.3bn

+3%

+P9mn

PLDT T Grou

• up:

p: 1Q17 vs 4Q16 Fina nanci ncial al High ghlights lights

Conso Service Revenues

(net of interconnection costs: P2.1bn)

Wireless

Fixed Line

P35.6bn

Service Revenues* Service Revenues*

P20.8bn

• 4%

(P0.8bn)

P16.9bn +4%

+P0.7bn

• 1%

(P0.2bn)

* Net of interconnection costs ** Mainly in compensation and benefits expenses *** Excluding gain from asset sales, deferred tax asset recognition, and accelerated depreciation; no adjustments in 1Q17

EBITDA EBITDA Margin P16.5bn

+7%

+P1.0bn

44%

(4Q16: 40%)

Core Income (recurring***) P5.3bn

46%

+P1.7bn

Cash Opex* P16.6bn

+1%**

P0.1bn

Subsidies and Provisions P2.2bn

• 39%

(P1.4bn)

SLIDE 4

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7.2 4.5 4.8 3.6 5.3

1Q16 2Q16 3Q16 4Q16 1Q17

16.6 14.2 15.0 15.4 16.5 1Q16 2Q16 3Q16 4Q16 1Q17 38.2 37.6 36.1 35.8 35.6 1Q16 2Q16 3Q16 4Q16 1Q17 6.2 6.2 3.4 4.1 5.0 1Q16 2Q16 3Q16 4Q16 1Q17

PLDT Group: up: Conso soli lida dated ed Financia nancial l Highlig hlights hts

(Php in billions)

Core Income (recurring) Reported Net Income EBITDA and EBITDA Margin

EBITDA Margin 41% 35% 39% 40% 44%

+1.0 +7%

• 0.1
• 1%

*Rocket Internet impairment: 1Q16 – P1.6bn; 2Q16 – P3.8bn; 1Q17 – P0.5bn

• 1.9
• 26%

Service Revenues, net of interconnection costs

• 0.2
• 1%
• 2.6
• 7%
• Negative

momentum of top line arrested in 1Q17

• 1Q17 on track

vis-à-vis guidance

• Three quarters of

sequential improvement in EBITDA

• 1Q17 on track vis-

à-vis guidance

+1.7

• +46%

+0.8 +20%

• 1.3
• 20%

* * *

* Excluding asset sales, EBITDA adjustments, deferred tax asset recognition and accelerated depreciation

20.2

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7.5 7.6 7.6 7.9 8.5 1Q16 2Q16 3Q16 4Q16 1Q17

PLDT T Grou

• up:

p: Service ice Revenues ues (by Busine iness ss Unit) it)

(Php in billions)

Service Revenues (net of interconnection costs)

Enterprise Home

7.0 7.2 7.5 7.6 7.8 1Q16 2Q16 3Q16 4Q16 1Q17

+0.2

+2%

+0.8

+12%

+0.2

+2%

Service Revenues (net of interconnection costs)

+0.3

+4%

+0.2

+3%

+0.6

+7%

+1.0

+13%

+0.3

+1%

+0.1

+1%

• +1%

Individual

18.0 17.4 15.8 15.1 14.7 1Q16 2Q16 3Q16 4Q16 1Q17

Service Revenues (net of interconnection costs)

• 3.2
• 18%
• 0.5
• 3%
• 1.6
• 9%
• 0.7
• 5%
• 0.4
• 2%

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Service Revenue Mix 1Q16 1Q17 Individual 47% 41% Home 18% 22% Enterprise 20% 24% International & Carrier 15% 12% Voyager and Others 0% 1%

By Business Units

14.7 35.6 7.8 8.5 4.2 0.4 Home Enterprise International & Carrier Voyager And Others

1Q17

(3.2)

• 18%

+0.8

+12%

+1.0

+13%

• 1.3
• 24%

+0.2

+111%

PLDT Group: up: Cons nsol

• lid

idated ted Service vice Reven enues* ues*

* Net of interconnection costs

(Php in billions)

Individual

• 2.6
• 7%
• Home and Enterprise businesses grew double-digit year-on-year at 12% and 13%, respectively
• Combined Home and Enterprise revenues now represent 46% of consolidated service revenues,

greater than the 41% contribution of the Individual business

• Data/broadband continue to underpin the growth of the Home, Enterprise and Individual

businesses, accounting for 61%, 66%, and 37% of 1Q17 revenues

• Home data and broadband revenues were up by 16% to P4.8bn
• Enterprise data and broadband revenues rose by 24% to P1.1bn

Service Revenues (Php in millions) 1Q16 1Q17 Individual 17,984 14,749 Home 6,965 7,794 Enterprise 7,497 8,469 International & Carrier 5,542 4,230 Voyager and Others 174 368 Total 38,162 35,610 46%

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Service Revenue Mix 1Q16 1Q17 Data/Broadband/Digital Platforms 38% 45% SMS 20% 16% LEC/Mobile Domestic Voice/Others 32% 30% Intl Voice/Fixed Line Domestic Voice 10% 9%

(Php in billions)

By Product type 1Q16 1Q17

Lower by P2.6bn or 7%

38.2 35.6

+1.7

+11%

• 1.7
• 23%
• 0.8
• 21%

Data, broadband and digital platforms SMS International voice and fixed line domestic voice

PLDT Group: up: Cons nsol

• lid

idated ted Service vice Reven enues* ues*

* Net of interconnection costs

• 1.7
• 14%

LEC, mobile domestic voice and

• thers
• Data/broadband revenues of P15.9bn represent 44% of 1Q17 consolidated service revenues*
• Data/broadband account for 62% of Fixed Line and 33% of Wireless service revenues*

 Mobile internet revenues grew by 20% year-on-year to P4.6bn  Corporate data and data center revenues increased by 17% to P4.9bn  Home broadband revenues rose by 15% to P4.7bn

• Fixed home broadband up by 19% to P4.1bn

Service Revenue Mix 1Q16 1Q17 Data/Broadband/Digital Platforms 14,508 16,163 SMS 7,514 5,813 LEC/Mobile Domestic Voice/Others 12,328 10,608 Intl Voice/Fixed Line Domestic Voice 3,812 3,026 Total 38,162 35,610

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Service Revenue Mix 4Q16 1Q17 Data/Broadband/Digital Platforms 44% 45% SMS 18% 16% LEC/Mobile Domestic Voice/Others 29% 30% Intl Voice/Fixed Line Domestic Voice 9% 9%

(Php in billions)

By Product type 4Q16 1Q17 35.8 35.6

+0.5

+3%

• 0.6
• 9%
• 0.3
• 8%

Data, broadband and digital platforms SMS International voice and fixed line domestic voice

PLDT Group: up: Cons nsol

• lid

idated ted Service vice Reven enues* ues*

* Net of interconnection costs

+0.2

+1%

LEC, mobile domestic voice and

• thers

By Business Units

14.7 35.6 7.8 8.5 4.2 0.4 Home Enterprise International & Carrier Voyager And Others

1Q17

(0.4)

• 2%

+0.2

+2%

+0.6

+7%

• 0.6
• 12%
• +2%

(Php in billions)

Individual

• 0.2
• 1%

46%

Service Revenue Mix 4Q16 1Q17 Individual 15,100 14,749 Home 7,644 7,794 Enterprise 7,893 8,469 International & Carrier 4,810 4,230 Voyager and Others 360 368 Total 35,807 35,610

Service Revenues (Php in millions) 4Q16 1Q17 Data/Broadband/Digital Platforms 15,641 16,163 SMS 6,418 5,813 LEC/Mobile Domestic Voice/Others 10,457 10,608 International Voice/Fixed Line Domestic 3,291 3,026 Total 35,807 35,610 Service Revenue Mix 4Q16 1Q17 Individual 42% 41% Home 21% 22% Enterprise 22% 24% International & Carrier 14% 12% Voyager and Others 1% 1%

Lower by P0.2bn or 1%

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16.6 14.2 15.0 15.4 16.5 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017

(Php in billions)

* Net of interconnection costs

PLDT Group: up: Conso soli lida dated ed EBITD TDA

Margins 41% 35% 39% 40% 44%

• 15%
• 2.5

+6%

+0.8

+3%

+0.5

• EBITDA for 1Q17 was lower by P0.1bn or 1% at P16.5bn vis-à-vis 1Q16 but higher by 7% or P1.0bn quarter-on-

quarter

• Consolidated EBITDA registered three quarters of sequential improvements starting from 2Q16
• Primarily due to lower provisions (P2.3bn) and lower subsidies (P1.9bn), management efforts to operate more

efficiently resulting in lower costs (P0.7bn) fully absorbing the decline in service revenues (P2.3bn) and increase in the cost of content (P0.2bn)

• Consolidated EBITDA margin for 1Q17 at 44% vs 41% in 1Q16 and 40% in 4Q16
• Wireless: 37% (vs 1Q16: 36%; 4Q16: 35%; FY16: 32%)
• Fixed Line: 43% (vs 1Q16: 39%; 4Q16: 37%; FY16: 39%)
• EBITDA guidance for 2017 of P70bn anticipates a “back-ended recovery”

+7%

+1.0

15.4 16.5 Margins 40% 44%

Lower svc rev* Lower sub- sidies Higher cash

• pex*

Lower provns +1.4

• 0.2
• 0.1

4Q16 Higher by P1.0bn or 7% 1Q17

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• Recurring core income of P5.3bn for 1Q17 was higher by P1.7bn or 46% from P3.6bn in 4Q16
• Compared with 1Q16, recurring core income declined by 26% or P1.9bn
• Reported net income for 1Q17 of P5.0bn decreased by P1.3bn or 20% year-on-year
• Additional P0.5bn impairment of Rocket Internet investment was booked in 1Q17 (end March 2017 share price of

€16.03 with market value at P8.7bn)  Rocket share price improved to €18.745 on 11 May 2017 with market value at P10.3bn

• 1Q17 core income broadly tracking full year guidance of P21.5bn

4Q16 Recurring 1Q17 (Php in billions)

PLDT Group: up: Core e Income

• me

3.6 5.3

Higher by P1.7bn or 46% vs recurring core income in 4Q16 1Q17

7.2 5.3

• 1.4

Lower Misc Income

• 0.1

Lower EBITDA

• 0.3

Lower net Equity in earnings

• 0.4

Higher Non- cash Expenses

+0.4

Lower Provn for Inc Taxs

Lower by P1.9bn or 26% vs 1Q16 Recurring core income

+1.0

Higher EBITDA

+0.1

Lower Non- cash Expenses Higher net equity in earnings

+0.5 +0.1

Lower Fin Costs - Net

• 0.4

Higher Provn for Taxes

1Q16 Recurring

• Gain from

asset sales and EBITDA Adj.

+0.4

Higher Misc Income

SLIDE 11

11 (Php in billions)

Note: BPO capex up to 2012 only

17.2 22.1 17.1 23.0 30.3 32.1 28.8 13.7 13.7 11.7 11.7 12.9 10.7 17.2

Fixed Line Wireless 31.2 2011 2012 36.4 2013 28.8 2014 34.8 43.2 2015 42.8 2016 % of Capex to total service revenues: 21% 23% 18% 21% 26% 27% < 30%

PLDT Group: up: Capex

46.0 2017F 37% (25% in 2016) 63% (75% in 2016)

• Capex program to build a network that will provide customers with a superior data experience:

proceeding as planned

• Cash capex in 1Q17 amounted to only P1.8bn with payments anticipated to be backended
• Network milestones:
• Continues to lead in the LTE landscape in the Philippines based on recent performance analysis of

Open Signal  Substantially completed LTE rollout in Cebu; ongoing works in Metro Manila  Continued rollout of network using the spectrum acquired through VegaTel, including the 700MHz  Made the first successful mobile call using voice-over-LTE (VoLTE) in the Philippines, and also successfully tested voice-over-WIFI

• Strengthened fiber superiority in the HOME and Enterprise

 Launch of fiber-powered “PLDT SmartCities” in partnership with the LGUs of: Toledo City (Cebu), General Santos (Mindanao), Naga City  Deployment of G.fast technology to achieve fiber-like speeds over copper  Increased FTTH homes passed to 3mn and port availability by 70K in 1Q17 and 110K at YTD April 2017

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Debt Maturities Debt Balance

2.9 2.4 2.9 3.4 3.7 3.5 0.9 0.7 0.6 1.0 0.8 0.8 1.9 1.6 2.3 2.4 2.9 2.7

2012 2013 2014 2015 2016 1Q2017

Debt Balance Cash & Short-term Investments Net Debt

221 300 399 384 440 376 1,381

2017 2018 2019 2020 2022 2021

Total: US$3,501mn

* Total debt based on nominal debt amount

*

2023 to 2026

• Net debt and net debt to EBITDA as of end March 2017

stood at US$2.7bn and 2.2x

• At end March 2017, gross debt amounted to US$3.5bn
• US$ denominated gross debt now at 25% from 32% at YE16

following the full payment of the 8.35% US$ bond on 6 March 2017 (refinanced in pesos)

• Taking into account our available US$ cash and hedges, only

US$0.3bn or 9% of total debt is unhedged

• 73% are fixed-rate loans, while 27% are floating-rate loans;

post-interest rate swaps: 91% fixed, 9% floating

• Average interest cost (pre-tax) of 4.3% (FY16: 4.4%)
• As of end March 2017, PLDT’s investment grade ratings

remained unchanged from YE16

Net Debt/EBITDA: 1.05x 0.9x 1.35x 1.62x 2.36x 2.2x Debt maturities to total debt: 6% 9% 11% 11% 13% 11% 39%

Ratings Agencies Long-Term Foreign Issuer Rating Long-term Local Issuer Rating Outlook Fitch BBB BBB+ stable (FC IDR); negative (LC IDR) Moody's Baa2 Baa2 stable Standard and Poor's / S&P National BBB+ axA+ stable

(US$ in billions) (US$ in millions)

PLDT Group: up: Debt t Prof

• fil

ile

SLIDE 13

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Business Unit Updates

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INTERNATIONAL HOME INDIVIDUAL

14.75 B 7.79 B 8.47 B 4.23 B ₱35.24 B

ENTERPRISE

1Q 2017 HIGHLIGHTS

TOTAL

• Contribution of Home and Enterprise, our fastest

growing segments, comprise 52% of revenues, excluding international, and forecasted to grow to approximately 56% share by 2019.

• Combined revenues of Home and Enterprise

(FIXED: ₱16.26 Billion) have again surpassed Individual Wireless revenues (₱14.75 Billion)

REVENUES IN PESOS BILLIONS

Net of Interconnection Cost Excludes Voyager and Others

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SUB SUB- TOTAL AL

1Q 2017 17 HIGHLIGHTS: HLIGHTS: PLDT GROUP UP SERVICE VICE REVE VENUE NUE

INTERNATIONAL HOME INDIVIDUAL ENTERPRISE

TOTAL AL

Q1 ‘16

18.0 32.5 5.5 38.0

Q4 ‘16

15.1 30.6 4.8 35.5

Q1 ‘17

14.8 31.0 4.2 35.2

Actual Actual Actual YOY GROWTH

• 3.2
• 1.4
• 1.3
• 2.8
• 18%
• 4%
• 24%
• 7%

vs 1Q 2016 QOQ GROWTH

• 0.4

0.4

• 0.6
• 0.2
• 2%

1%

• 12%
• 1%

vs 4Q 2016

7.0 7.5 7.6 7.9 7.8 8.5 0.8 1.0 12% 13% 0.2 0.6 2% 7%

1Q 2017 Service Revenue Net of Interconnection Cost

In Pesos Billions

1Q 2017

SLIDE 16

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01

HOME KICKS OFF THE YEAR WITH THE HIGHEST EVER 12% YOY GROWTH, WITH BOTH VOICE AND DATA GROWING VOICE 3.02B 6% DATA 4.78B 16%

Q1 2016 Q1 2017

6.97B 7.79B

12%

VOICE 2.84B DATA 4.12B

02

Q1 2016 Q1 2017 10%

1Q 2017 HIGHLIGHTS: HOME BUSINESS

In Pesos Billions

3.43M

ALMOST 340K SUBSCRIBERS RESULTING TO A 10% YOY GROWTH

3.77M

In Millions of Subscribers

SLIDE 17

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Launch of a Tri-band Gigabit Router to maximize and amplify the ultra-fast internet of PLDT Home Fibr

03 REALIZING SIGNIFICANT GROWTH IN HOME BROADBAND, WITH DIGITAL CONTENT AND SERVICES INSTRUMENTAL TO CREATING MORE DEMAND

Strong demand for higher broadband subscriptions, with a significant YOY growth of 20% in wired broadband revenue New premier content partnerships to cater to the increasing video demand, which grew 4x in consumption YOY

1Q 2017 HIGHLIGHTS: HOME BUSINESS

SLIDE 18

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04

ACCELERATING MOMENTUM TO COVER THE COUNTRY WITH LEADING EDGE TECHNOLOGIES AND IN STRENGTHENING MARKET DOMINANCE

Toledo City, Cebu General Santos City Isulan, Sultan Kudarat Naga City, Camarines Sur BF Homes, Paranaque Merville, Paranaque Mahogany Place, Taguig Verawood Residences, Taguig

1Q 2017 HIGHLIGHTS: HOME BUSINESS

• PLDT Home Rolled out 110K

high speed broadband lines by end April 2017

• Starting with 2.8M HOMES

PASSED YE 2016, we are now covering over 3M HOMES PASSED and well on our way to reach the 4.4M target by year-end 2017 Launch of Fibr powered ‘PLDT SmartCity’ Program, which will bring the best broadband experience all over the country

SLIDE 19

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Enterprise Service Revenues Net of Interconnect

SUSTAINING ACCELERATED GROWTH IN Q1 ALL BUSINESS PILLARS GROWING BY DOUBLE DIGIT

2016Q1 2017Q1

Fixed Wireless ICT

7.5B

+13% 0.97 8.47B +13% +15% +11%

01 02

13%

vs Q4 2016 vs Q1 2016

7%

1Q 2017 HIGHLIGHTS: ENTERPRISE BUSINESS

SLIDE 20

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Banking & Financial : 14% In support of industry demand for secure and reliable ICT solutions

FASTER THAN MARKET GROWTH

Outsourcing : 17% Empowering a 1.3M+ strong agent workforce SME : 10% Enabling enterprises to be more competitive and embrace digital IT and Gaming : 20% Key player in PH transition to a global IT and Gaming hub

04

6% 15% 9% 7%

INDUSTRY GROWTH

1Q 2017 HIGHLIGHTS: ENTERPRISE BUSINESS

ENTERPRISE BUSINESS IS GROWING IN THE RIGHT AREAS

03

40% 34%

VOICE, SMS and OTHERS

60% 66%

% OF TOTAL REVENUE

• 4%

DATA and ICT

24%

Q1 2016 Q1 2017 Q1 2016 Q1 2017

SLIDE 21

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CLEAR LEADERSHIP IN THE DATA CENTER SPACE, MAKING PLDT WELL POSITIONED TO CAPITALIZE ON FUTURE GROWTH IN THE AREAS OF SMACS AND MANAGED SERVICES

05 06

CONTINUED MOMENTUM IN DRIVING RELEVANT SOLUTIONS TO BETTER SERVE THE NEEDS OF THE ENTERPRISE MARKET

SOS Dispatch Media Launch Cisco Collaboration redefining Enterprise Experience (EX) Digital Enablement “She’s the Boss” Event Cybersecurity Summit

70% Share

• f outsourced DC

market

More than 3X capacity

• vs. the next largest

competitor

New market-relevant capabilities such as cyber security services

Q1 2017 DC new mandates greater than FY 2016

RISK ASSESSMENT MANAGEMENT & MONITORING INCIDENT RESPONSE

1Q 2017 HIGHLIGHTS: ENTERPRISE BUSINESS

SLIDE 22

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01

QUARTERLY NET SERVICE REVENUE

Q1 2016 Q1 2017

17.98B 14.75B DECLINE IN NET SERVICE REVENUE VS LAST YEAR

SUBS BASE In Millions ARPU ARPU PhP

CONTRIBUTORS: Q1 2016 Q1 2017 Q1 2016 Q1 2017

₱110 ₱97

1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS

68.2M 63.1M

In Pesos Billions

SLIDE 23

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02

HOLDING THE LINE IN NET SERVICE REVENUE ON A DAILY BASIS

03

GREEN SHOOTS OF PROGRESS IN Q1

SUBS Millions ARPU PhP

62.8M

Q4 2016 Q1 2017

Q4 2016 Q1 2017

₱100 ₱100

Normali zed

63.1M

1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS

₱97

QUARTERLY NET SERVICE REVENUE In Pesos Billions 17.98 17.44 15.84 15.10 14.75 198 192 172 164 164 DAILY NET SERVICE REVENUE In Pesos Millions

SLIDE 24

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DELIVERING THE BEST CUSTOMER EXPERIENCE LIKE NEVER BEFORE WITH SMART’S NEWEST AND FASTEST LTE NETWORK

04

Validated by

1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS

SLIDE 25

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FURTHERING COMMITMENT TO IMPROVE EXPERIENCE IN PUBLIC AREAS AS WE PROVIDE THE BEST WIFI OFFLOAD EXPERIENCE TO OUR SUBSCRIBERS

THE YARD XAVIERVILLE

Quezon City

THE YARD UNDERGROUND

Pasig

STREAT FOOD PARK

Maginhawa MATINA TOWN SQUARE Davao

05

Experien erience ce Data a Like e Never r Before re with SM SMARTSP SPOTS TS!

1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS

SLIDE 26

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1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS

UPSELLING CONTENT AND DIGITAL SERVICES TO CREATE MORE VALUE AND DEMAND FOR DATA

06

Exp xperien rience ce Co Conte tent t Lik ike e Ne Never r Befo fore re!

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Rene newal al of Smart t Franc anchise hise

* Net of interconnection costs

• Smart Franchise has been extended by Republic Act No. 10926 for another 25 years from the

date of effectivity of the Act

• Published in the Philippine Star on May 4, 2017 and will take effect 15 days after such publication or on May 20, 2017
• Republic Act No. 10926 signed into law by the President of the Republic of the Philippines on

April 21, 2017

• Originated from the House of Representatives; passed by the House of Representatives on January 16, 2017
• Amended by the Senate on March 13, 2017
• Concurred in by the House of Representatives on March 14, 2017
• Acceptance of the franchise must be given to the Congress of the Philippines within 60 days

from effectivity of the Act

• Salient Terms
• Tax Provisions. Amended to be at par with the tax benefits granted to Globe under its franchise
• Listing of Shares. Smart is not required to list its shares for as long as it is wholly owned by a publicly listed

company with at least 30% of whose authorized capital stock is publicly owned

• Mobile Number Portability. Smart is required to provide mobile number portability to all its subscribers subject to the

issuance of the applicable rules and regulations by the NTC which will take effect upon the applicability of mobile number portability to all other telecommunication franchise grantee ("sunrise clause")

• Equality Clause. Added an equality clause consistent with the equality provision set out in the Public

Telecommunication Policy Act of 1995

• Penalty Clause. Penalty for failure to submit the required annual report to Congress will increase to P1,000.00 (from

P500.00) per working day of non-compliance upon the applicability of the same increase in penalty to all other telecommunication franchise grantees

SLIDE 28

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PLDT Group: up: Guid idance ance for r 2017 7

EBITD ITDA: A: P70bn Capex: x: P46bn Divid idend Payo yout: : 60%

• To grow by P8.8bn from P61.2bn in 2016
• impact of P4.6bn in subsidies and provisions in 2016

which will not recur in 2017

• Low-single digit growth in consolidated service

revenues  Double-digit growth in data/broadband to continue  Continuing declines in toll, cellular voice and SMS revenues

• Reduction in cash opex to result from tighter

management of costs

• Recurring core income from telco operations to rise to

P21.5bn

• P1.5bn increase due to the combined effect of:

 Higher EBITDA partly offset by increases in depreciation and financing costs resulting from the higher capex  Lower equity in earnings due to reduced ownership in Beacon, and losses and amortization of purchase price acquisition related to the Vega Tel transaction

• Including asset sales, core income anticipated at P25bn
• r higher
• Anticipated gain from asset sales to be offset by expected MRP

expense

* Normalized to exclude asset sales and impact of higher provisions

• Higher by P3.2bn from P42.8bn in 2016
• Includes carry-over of capex started in 2016 to be completed/accepted

in 2017

• Anticipated increase in fixed line capex to support push to further grow

the Home and Enterprise businesses

• Dividend policy: Regular dividend payout of 60% of core

income

• Takes into consideration:
• Technology roadmap/capex requirements
• Management of cash and gearing levels
• Plans to invest (on opportunistic basis) in new adjacent

businesses that will complement the current business and provide future sources of profits and dividends

Recurrin ing Core Income: : P21.5 .5bn

SLIDE 29

29

Other Details

SLIDE 30

30

38.2 37.6 36.1 35.8 35.6

1Q16 2Q16 3Q16 4Q16 1Q17 15.4 15.5 15.9 16.3 16.9 1Q16 2Q16 3Q16 4Q16 1Q17

(Php in billions)

Fixed Line Consolidated

1Q17 vs 1Q16:

• 7% or -P2.6bn

Service Revenue Mix: Data/broadband 38% 40% 41% 43% 44% Service Revenues Mix: Data/broadband 59% 59% 60% 61% 62%

24.7 24.0 22.3 21.6 20.8 1Q16 2Q16 3Q16 4Q16 1Q17

Wireless

Service Revenue Mix: Data/broadband 28% 30% 32% 33% 33%

• 0.6
• 1%

+0.1

• 1.5
• 4%
• 0.6
• 2%

+0.4 +2%

PLDT Group: up: Service vice Reven enues* ues*

• 0.3
• 1%

* Net of interconnection costs

• 1.8
• 7%
• 0.7
• 3%

vs 1Q16:

• 16% or
• P3.9bn

+0.4 +2%

vs 1Q16: +10% or +P1.5bn

By Business Segment

• 0.2
• 1%
• 0.8
• 4%

+0.7 +4%

SLIDE 31

31

9.6 7.3 7.4 8.4 8.3 1Q16 2Q16 3Q16 4Q16 1Q17 24.7 24.0 22.3 21.6 20.8 1Q16 2Q16 3Q16 4Q16 1Q17

PLDT T Grou

• up:

p: Fixed ed and Wirele eless ss Finan nancia cial l High ghlig ights ts

(Php in billions)

EBITDA and EBITDA Margin

EBITDA Margin 36% 28% 31% 35% 37%

• 1.3
• 14%

Service Revenues (net of interconnection costs)

• 0.8
• 4%
• 3.9
• 16%
• 1%

Ave.Daily Rev (mns): P242.1 P234.6 P230.7

• 2%
• 3%

EBITDA and EBITDA Margin

Wireless Fixed

15.4 15.5 15.9 16.3 16.9 1Q16 2Q16 3Q16 4Q16 1Q17

+0.7

+4%

+1.5

+10%

+0.4

+2%

Service Revenues (net of interconnection costs)

EBITDA Margin 39% 39% 42% 37% 43%

6.6 6.5 7.1 6.6 7.8 1Q16 2Q16 3Q16 4Q16 1Q17

+1.2

+17%

+1.2

+18%

SLIDE 32

32 Data and Broadband LEC and Others

+1.5

+16%

+0.3

+6%

Service Revenue Mix 1Q16 1Q17 Data/Broadband/Digital Platforms 28% 35% SMS 31% 28% Domestic Voice/Others 32% 29% International Voice 9% 8% Service Revenue Mix 1Q16 1Q17 Data/Broadband 59% 62% LEC/Others 31% 30% International Voice/Domestic Voice 10% 8% (Php in billions)

Fixed Line* Wireless*

1Q16 1Q17

Higher by P1.5bn or 10%

15.4 16.9

• 0.2
• 16%

International and domestic voice

1Q16 1Q17

Lower by P3.9bn or 16%

24.7 20.8

+0.3**

+4%

• 2.0
• 25%
• 0.5
• 22%

Data, broadband, digital platforms Domestic voice and

• thers

International voice

* Net of interconnection costs

(Php in billions)

PLDT Group: up: Service vice Reven enues* ues*

• 1.7
• 23%

SMS

Service Revenues (Php in millions) 1Q16 1Q17 Data/Broadband/Digital Platforms 6,936 7,232 SMS 7,517 5,815 Domestic Voice/Others 7,961 5,976 International Voice 2,237 1,743 Total 24,651 20,766

• Corporate data and data center revenues

represent 38% of total fixed line revenues

1Q17 vs 1Q16 1Q17 vs 1Q16

• Data/broadband, now 33% of total wireless

service revenues, overtook SMS and domestic voice which account for 28% and 27%, respectively ** Includes growth in:

• - Mobile internet by 20% or P0.8bn
• - Digital platforms by 137% or P0.2bn

Service Revenues (Php in millions) 1Q16 1Q17 Data/Broadband 9,096 10,563 LEC/Others 4,761 5,034 International Voice/Domestic Voice 1,578 1,330 Total 15,435 16,927

SLIDE 33

33 Service Revenue Mix 1Q16 1Q17 Mobile Data 31% 37% Mobile Domestic Voice 35% 33% SMS 33% 30% Others 1% 0%

Service Revenue Mix 1Q16 1Q17 Data/Broadband 59% 61% LEC 38% 36% Domestic Voice 3% 3% Others 0% 0%

7.0 7.8 18.0 14.7

(Php in billions) LEC +8%

+0.2

Home

1Q17 1Q16

Data/ broadband +16%

+0.6

Fixed Line Domestic Voice and Others

• 8%
• Higher by P0.8bn or 12%

Individual

Mobile domestic voice

• 23%
• 1.4

Mobile data

• 3%
• 0.1

Others

• 18%
• Lower by P3.2bn or 18%

1Q17 1Q16

SMS

• 27%
• 1.6

PLDT T Grou

• up:

p: Home

• me and Indi

divid vidual ual Service vice Revenue ues* s*

* Consolidated and net of interconnection costs

(Php in billions) Service Revenues (Php in millions) 1Q16 1Q17 Data/Broadband 4,124 4,771 LEC 2,632 2,831 Domestic Voice 209 186 Others 6 Total 6,965 7,794 Service Revenues (Php in millions) 1Q16 1Q17 Mobile Data 5,599 5,451 Mobile Domestic Voice 6,267 4,819 SMS 6,000 4,382 Others 118 97 Total 17,984 14,749

1Q17 vs 1Q16 1Q17 vs 1Q16

• Fixed home broadband revenues of

P4.1bn grew by 19% or P0.7bn year-

• n-year and account for 52% of

total Home revenues

• Mobile internet revenues rose by

14% or P0.5bn to P3.9bn in 1Q17 representing 27% of total Individual revenues

Note: Fixed Home Broadband: +19%, +P0.7bn Wireless Home Broadband: -4%, -P27mn Note: Mobile Internet: +14%, +P0.5bn Dongles: -29%, -P0.6bn

SLIDE 34

34

7.5

8.5

(Php in billions)

Enterprise*

Fixed and Mobile ILD/NLD +6%

• Corp. Data

+19%

+0.8

Mobile domestic voice

• 41%
• 0.1

Mobile Data +75%

+0.3

LEC +1%

• Higher by P1.0bn or 13%

1Q17 1Q16

SMS

• 5%
• Data and broadband

up by P1.1bn or 24% SMS/mobile voice lower by P0.2bn or 27% Others +1%

• PLDT Group:

up: Enter erpr prise ise Service vice Reven enues* ues*

* Consolidated and net of interconnection costs 1Q17 vs 1Q16

Service Revenue Mix 1Q16 1Q17 Data/Broadband 60% 66% Voice 35% 30% SMS 3% 2% Others 2% 2%

Service Revenues (Php in millions) 1Q16 1Q17 Data/Broadband 4,492 5,570 Voice 2,634 2,538 SMS 202 191 Others 169 170 Total 7,497 8,469

• 66% of Enterprise revenues are from data/broadband
• P1.1bn increase in data/broadband revenues due to:
• Rise of P0.8bn or 19% in corporate data and data center revenues
• Growth in mobile data revenues mainly in mobile internet revenues which increased by P0.3bn or

83%

SLIDE 35

35

• Home broadband revenues were higher by P0.6bn or 15% to P4.7bn
• Broadband subscriber base, including Home Broadband and Corporate

Fixed Broadband subscribers, stood at about 1.8mn, with net adds of

• ver 50,000 or 3% from YE16
• Goal: to transform households into a ‘Smart Home’ or ‘the HOME of

the future’

• Via devices: Telpad, TVolution, FamCam, Fam Zone, Smart Watch
• Recently launched the next generation Tvolution/ROKU-powered

streaming box

• Triple-play (fixed line, broadband, IPTV) and quad-play (including

mobile) plans available, including data sharing plans

• Roll out of high speed internet via Fibr bundled with great content, Fox+,

iFlix, iWantTv, and Netflix

6.2 15.9 4.9 4.7

6.1 6.4 6.3 6.2 6.2 4.2 4.2 4.1 4.5 4.9 4.1 4.3 4.5 4.6 4.7

1Q16 2Q16 3Q16 4Q16 1Q17

Mobile Data

• Corp. Data and Data Center

Home Broadband % to total Data and Broadband Consolidated Revenues*: 39% 31% 30% (Php in billions)

Mobile Internet

• Mobile data, including revenues from mobile Internet and

mobile broadband, rose by P0.1bn or 2% year-on-year to P6.2bn

• Mobile Internet revenues grew by 20% or P0.8bn to P4.6bn

and account for 29% of total data and broadband revenues  Data usage in 1Q17 increased by 56% to 50,860TB from 1Q16 and by 16% from 4Q16  Smartphone penetration: approximately 50% of our subscriber base, with about 50% of whom pay for data  Goal: Enable and accelerate data adoption to drive usage and build the data habit

• Launch of All Out Surf packages that include data

allocations bundled with calls and texts

• Arrangements with smartphone distributors for reverse

bundling (SIM included in the phone kits sold)

• Brand refresh highlighting superiority of Smart’s LTE

network: “Be there like never before”

• Mobile broadband revenues or 10% of total data and

broadband revenues declined by P0.6bn or 28% to P1.6bn] as usage shifts from dongles/pocket wifi devices to smartphones Corporate Data and Data Centers

• Corporate data and data center revenues, or 31% of total

data and broadband revenues, were higher by P0.7bn or 17% at P4.9bn

• PLDT is the nation’s largest data center operator with ten

data centers and a total rack capacity of about 9,000 by year- end 2017 Home Broadband Mobile Data Home Broadband

• Corp. Data and

Data Center 1Q17 +0.1

+2%

+0.7

+17%

+0.6

+15%

+1.5

+10%

• 1%

+11% +2% +2% +17% +15%

Y-o-Y

+1.5

+10%

14.4 15.9

PLDT Group: Consolida

• lidated

ted Data and Broadb dban and* d*

+0.5

+3%

1Q17 vs 1Q16

14.9 14.9 15.3

* Consolidated, net of interconnection costs

SLIDE 36

36

Appendix

SLIDE 37

37

Mobile Subscribers (1) by Category: Mobile Subscribers (1) by Brand:

(1) Includes Mobile Broadband subscribers

Subscribe scriber r Base: se: Mobi bile le

Mobile Subscriber Base (1) Prepaid 60,421,068 59,952,941 62,259,067 64,701,367 64,651,175 Smart Prepaid 21,933,462 21,643,963 23,560,542 24,185,165 24,836,433 Sun Prepaid 8,086,432 8,463,469 8,846,953 9,652,756 10,495,342 TNT 30,401,174 29,845,509 29,851,572 30,863,446 29,319,400 Postpaid 2,721,410 2,810,268 3,117,035 3,556,485 3,539,055 Smart Postpaid 1,365,709 1,383,830 1,482,672 1,573,147 1,610,670 Sun Postpaid 1,355,701 1,426,438 1,634,363 1,983,338 1,928,385 Total Mobile Subscribers 63,142,478 62,763,209 65,376,102 68,257,852 68,190,230 Sept-16 Mar-16 Dec-16 Mar-17 Jun-16 Mobile Subscriber Base (1) Smart 23,299,171 23,027,793 25,043,214 25,758,312 26,447,103 Smart Prepaid 21,933,462 21,643,963 23,560,542 24,185,165 24,836,433 Smart Postpaid 1,365,709 1,383,830 1,482,672 1,573,147 1,610,670 TNT 30,401,174 29,845,509 29,851,572 30,863,446 29,319,400 Sun Cellular 9,442,133 9,889,907 10,481,316 11,636,094 12,423,727 Sun Prepaid 8,086,432 8,463,469 8,846,953 9,652,756 10,495,342 Sun Postpaid 1,355,701 1,426,438 1,634,363 1,983,338 1,928,385 Total Mobile Subscribers 63,142,478 62,763,209 65,376,102 68,257,852 68,190,230 Sept-16 Mar-16 Dec-16 Mar-17 Jun-16

SLIDE 38

38

Broadband Subscribers Fixed Line Subscribers

Subscribe scriber r Base: se: Broadb

• adband

and and Fixed ed Line

BROADBAND Home Broadband (Wireless) 264,227 270,203 271,572 265,473 248,675 Fixed Line Broadband 1,506,578 1,450,550 1,407,122 1,347,422 1,296,402 Total Broadband Subscribers 1,770,805 1,720,753 1,678,694 1,612,895 1,545,077 Mar-16 Mar-17 Jun-16 Sept-16 Dec-16 Fixed Line Subscribers 2,487,601 2,438,473 2,404,893 2,380,390 2,339,001 Mar-17 Jun-16 Mar-16 Dec-16 Sept-16

SLIDE 39

39

(1) EBITDA margin calculated as EBITDA divided by service revenues (gross of interconnection costs)

1Q2017 017: : Conso solid idated ted Financi ancial al Highlig hlights hts

1Q2016

(Unaudited, Php in millions)

Fixed Line Others Consolidated Consolidated Total Revenues 23,162 19,049

• 39,188

42,779 (8%) Service Revenues 22,475 18,249

• 37,701

40,598 (7%) Cash Operating Expenses (12,101) (9,998) (18) (18,715) (19,295) (3%) Depreciation and Amortization (4,430) (3,120)

• (7,550)

(7,158) 5% Financing Costs, Net (604) (1,308) (49) (1,900) (1,804) 5% Income (Loss) before Income Tax 3,311 4,384 (439) 7,256 8,962 (19%) Provision for Income Tax (1,081) (1,175) (31) (2,287) (2,729) (16%) EBITDA 8,309 7,797 (18) 16,467 16,606 (1%) EBITDA Margin (1) 37% 43%

• 44%

41% Net Income (Loss) Attributable to Equity Holders of PLDT 2,230 3,190 (469) 4,951 6,217 (20%) Core income 2,298 2,856 175 5,329 7,211 (26%) % Change 1Q2017 Wireless

SLIDE 40

40

Under erly lying ing Core e Income

• me

2017 1Q 1Q 2Q 3Q 4Q FY Core Income 5,329 7,211 10,489 4,036 6,121 27,857 Core Income Adjustments One-Time Provisions and Subsidies (EBITDA Adjustments)

• 1,011

2,034 1,605

• 4,650

Asset Sales

• (970)

(7,365) (396) (438) (9,169) Accelerated Depreciation

• 4,084

4,084 Deferred Tax Asset Recognition

• (5,027)

(5,027) Net Tax Effect of Adjustments

• (12)

(611) (481) (1,094) (2,198) Underlying Core Income 5,329 7,240 4,547 4,764 3,646 20,197 2016 (Unaudited, Php in millions)

SLIDE 41

41

Reconci

• ncili

liation tion of Core e and Repor

• rted

ted net income

• me

1Q2016 Wireless Fixed Line Others Consolidated Consolidated Net Income (Losses) Attributable to Equity Holders of 2,230 3,190 (469) 4,951 6,217 (20%) Add (Deduct): Foreign Exchange Losses (gains), Net 254 41 102 397 (970) 141% Losses (Gains) on Derivative Financial Instruments, Net (157) (229)

• (386)

369 (205%) Asset Impairment

• (201)

540 339 1,583 (79%) Others

• (1)

(18) (19) (42) (55%) Tax Effect (29) 56 20 47 54 (13%) Core Income 2,298 2,856 175 5,329 7,211 (26%) (Unaudited, Php in millions) % Change 1Q2017

SLIDE 42

42

Conso solid idated ed Service vice Reven enues* ues*

*Consolidated and Gross of Interconnection costs

(Unaudited, Php in millions)

1Q 1Q 2Q 3Q 4Q FY Fixed Line 15,556 14,287 14,320 14,446 15,033 58,086 LEC 4,553 4,333 4,384 4,479 4,499 17,695 Fixed Line Voice - International 970 1,240 1,092 1,015 1,111 4,458 Fixed Line Voice - Domestic (NLD) 789 844 845 863 797 3,349 Home Broadband 4,074 3,413 3,615 3,781 3,920 14,729 Corporate Data and Data Center 4,951 4,237 4,189 4,098 4,474 16,998 Miscellaneous 219 220 195 210 232 857 Wireless 22,145 26,311 25,686 23,882 23,236 99,115 Mobile Services 21,069 25,305 24,806 22,826 22,129 95,066 Mobile Voice 7,594 10,240 9,458 8,272 8,011 35,981 SMS 6,910 8,688 8,643 7,873 7,532 32,736 Mobile Data 6,235 6,063 6,444 6,375 6,333 25,215 Inbound Roaming and Others 330 314 261 306 253 1,134 Home Broadband 652 679 670 696 713 2,758 Digital Platforms and Mobile Financial Services 309 133 57 219 300 709 MVNO and Others 115 194 153 141 94 582 Others

• 9

9 Total 37,701 40,598 40,006 38,328 38,278 157,210 2016 2017

SLIDE 43

43

(Unaudited, Php in millions) 1Q 1Q 2Q 3Q 4Q FY Data/Broadband/Digital Platforms 16,221 14,525 14,975 15,169 15,749 60,418 Mobile Data 6,235 6,063 6,444 6,375 6,333 25,215 Mobile Internet 4,612 3,811 4,257 4,471 4,628 17,167 Mobile Broadband 1,623 2,252 2,187 1,903 1,704 8,046 Other Data

• 1

1 2 Home Broadband 4,726 4,092 4,285 4,477 4,633 17,487 Fixed 4,074 3,413 3,615 3,781 3,920 14,729 Wireless 652 679 670 696 713 2,758

• Corp. Data and Data Center

4,951 4,237 4,189 4,098 4,474 16,998

• Corp. Data and Leased Lines

4,333 3,678 3,595 3,704 3,978 14,955 Data Center and Information Technology 618 559 594 394 496 2,043 Digital Platforms and Others 309 133 57 219 309 718 SMS/Mobile Voice - Domestic/LEC/Others 17,923 21,697 20,912 19,335 18,645 80,589 SMS 6,910 8,688 8,643 7,873 7,532 32,736 Mobile Voice - Domestic 5,796 7,948 7,276 6,326 6,035 27,585 LEC 4,553 4,333 4,384 4,479 4,499 17,695 Others 664 728 609 657 579 2,573 ILD/Fixed Line - Domestic (NLD) 3,557 4,376 4,119 3,824 3,884 16,203 Fixed Line Voice - Domestic (NLD) 789 844 845 863 797 3,349 Fixed Line Voice - International 970 1,240 1,092 1,015 1,111 4,458 Mobile Voice - International 1,798 2,292 2,182 1,946 1,976 8,396 Total Consolidated Gross Service Revenues 37,701 40,598 40,006 38,328 38,278 157,210 Non-Service Revenues 1,487 2,181 2,499 1,774 1,598 8,052 Total Consolidated Gross Revenues 39,188 42,779 42,505 40,102 39,876 165,262 Deduct: Cash Operating Expenses (18,715) (19,295) (19,434) (19,128) (18,947) (76,804) Cost of Sales (2,646) (5,126) (5,519) (3,337) (2,771) (16,753) Cost of Content (309) (107) (83) (107) (279) (576) Writedown of Inventory and Provision for Doubtful AR (1,051) (1,645) (3,317) (2,571) (2,435) (9,968) EBITDA 16,467 16,606 14,152 14,959 15,444 61,161 EBITDA Margin (1) 44% 41% 35% 39% 40% 39% 2016 2017

(1) EBITDA margin calculated as EBITDA divided by service revenues (gross of interconnection costs)

Conso solid idated ed Service vice Reven enues* ues* and EBITD TDA

*Consolidated and Gross of Interconnection costs

SLIDE 44

44

(1) EBITDA margin calculated as EBITDA divided by service revenues (gross of interconnection costs)

Wirele eless ss Service vice Reven enues* ues* and EBITD TDA

*Gross of Interconnection costs and before intersegment elims (Unaudited, Php in millions) 1Q 1Q 2Q 3Q 4Q FY Data/Broadband/Digital Platforms 7,281 6,944 7,270 7,375 7,428 29,017 Mobile Data 6,308 6,127 6,536 6,445 6,409 25,517 Mobile Internet 4,612 3,811 4,257 4,471 4,628 17,167 Mobile Broadband 1,655 2,276 2,209 1,926 1,736 8,147 Other Data 41 40 70 48 45 203 Home Broadband 655 683 674 700 716 2,773 Digital Plarforms 318 134 60 230 303 727 SMS/Mobile Voice - Domestic/Others 13,388 17,422 16,612 14,918 14,185 63,137 SMS 6,912 8,690 8,646 7,875 7,534 32,745 Mobile Voice - Domestic 6,029 8,221 7,551 6,594 6,300 28,666 Others 447 511 415 449 351 1,726 Mobile Voice - International 1,806 2,304 2,189 1,952 1,983 8,428 Total Wireless Gross Service Revenues 22,475 26,670 26,071 24,245 23,596 100,582 Non-Service Revenues 687 1,261 1,472 838 761 4,332 Total Wireless Gross Revenues 23,162 27,931 27,543 25,083 24,357 104,914 Deduct: Cash Operating Expenses (12,101) (12,515) (12,576) (12,640) (11,847) (49,578) Cost of Sales (1,905) (4,421) (4,748) (2,748) (2,223) (14,140) Cost of Content (119) (31) (15) (35) (208) (289) Writedown of Inventory and Provision for Doubtful AR (728) (1,335) (2,947) (2,237) (1,727) (8,246) EBITDA 8,309 9,629 7,257 7,423 8,352 32,661 EBITDA Margin (1) 37% 36% 28% 31% 35% 32% 2016 2017

SLIDE 45

45

Fixed line revenues - net of interconnection costs*

(1) Non-service revenues include sale of PLP units, FabTAB, Tvolution, managed ICT equipment, Telpad, UNO equipment and managed PABX (2) EBITDA margin calculated as EBITDA divided by service revenues (gross of interconnection costs)

Fixed ed Line ne Service vice Reven enues* ues* and EBITD TDA

1Q 1Q 2Q 3Q 4Q FY Data/Broadband 10,574 9,110 9,216 9,457 9,928 37,711 Home Broadband 4,134 3,434 3,655 3,835 3,972 14,896

• Corp. Data and Other Network Services

5,622 4,938 4,793 4,970 5,279 19,980 Data Center and ICT 818 738 768 652 677 2,835 LEC/Others 5,035 4,761 4,806 4,922 4,968 19,457 LEC 4,580 4,357 4,408 4,503 4,524 17,792 Miscellaneous 455 404 398 419 444 1,665 Fixed Line Voice - International/Domestic 2,640 3,144 2,952 2,819 2,923 11,838 Fixed Line Voice - International 1,744 2,203 1,998 1,842 2,013 8,056 Fixed Line Voice - Domestic (NLD) 896 941 954 977 910 3,782 Total Fixed Line Service Revenues 18,249 17,015 16,974 17,198 17,819 69,006 Non-Service Revenues (1) 800 920 1,028 936 838 3,722 Total Fixed Line Gross Revenues 19,049 17,935 18,002 18,134 18,657 72,728 Deduct: Cash Operating Expenses (9,998) (10,213) (10,255) (9,995) (10,689) (41,152) Cost of Sales (741) (705) (772) (589) (551) (2,617) Cost of Content (190) (76) (68) (72) (71) (287) Writedown of Inventory and Provision for Doubtful AR (323) (310) (370) (334) (708) (1,722) EBITDA 7,797 6,631 6,537 7,144 6,638 26,950 EBITDA Margin (2) 43% 39% 39% 42% 37% 39% 2017 2016 (Unaudited, Php in millions)

*Service revenues before intersegment elims

1Q 1Q 2Q 3Q 4Q FY Fixed Line Service Revenues, Net LEC 4,579 4,357 4,406 4,502 4,523 17,788 Fixed Line Voice - International 565 831 735 716 660 2,942 Fixed Line Voice - Domestic (NLD) 765 747 759 790 717 3,013 Home Broadband 4,134 3,434 3,655 3,835 3,972 14,896

• Corp. Data and Other Network Services

5,611 4,924 4,779 4,957 5,267 19,927 Data Center and ICT 818 738 768 652 677 2,835 Miscellaneous 455 404 398 419 444 1,665 Total 16,927 15,435 15,500 15,871 16,260 63,066 (Unaudited, Php in millions) 2017 2016

SLIDE 46

46

Expenses enses

1Q2016

(Unaudited, Php in millions)

Wireless Fixed Line Others Consolidated Consolidated Operating Expenses Compensation and Employee Benefits 1,943 3,548

• 5,487

5,231 5% Repairs and Maintenance 1,852 1,456

• 3,160

3,671 (14%) Selling and Promotions 1,089 427

• 1,508

1,718 (12%) Rent 2,709 729

• 1,830

1,670 10% Insurance and Security Services 310 178

• 462

463

• Taxes and Licenses

620 349 2 971 1,322 (27%) Professional and Other Contracted Services 1,597 1,713 16 2,698 2,174 24% Communication, Training and Travel 199 144

• 304

301 1% Interconnection Costs 1,709 1,322

• 2,091

2,436 (14%) Other Expenses 73 132

• 204

309 (34%) Cash Operating Expenses 12,101 9,998 18 18,715 19,295 (3%) Depreciation and Amortization 4,430 3,120

• 7,550

7,158 5% Asset Impairment 728 323

• 1,051

1,645 (36%) Amortization of Intangible Assets 205

• 205

272 (25%) Non-Cash Operating Expenses 5,363 3,443

• 8,806

9,075 (3%) Cost of Sales 1,905 741

• 2,646

5,126 (48%) Cost of Content 119 190

• 309

107 189% Total Expenses 19,488 14,372 18 30,476 33,603 (9%) % Change 1Q2017

SLIDE 47

47

Other r Income

• me (expe

pense nses) s)

1Q2016

(Unaudited, Php in millions)

Wireless Fixed Line Others Consolidated Consolidated Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Beacon

• 408

408 705 (42%) Vega

• (269)

(269)

• Others

(33) 67 20 54 (68) (179%) Total Equity Share in Net Earnings (Losses) (33) 67 159 193 637 (70%) Financing Costs, Net Loans and Other Related Items (718) (1,325) (49) (2,031) (1,823) 11% Accretion on Financial Liabilities (40) (20)

• (60)

(75) (20%) Financing Charges (12) (4)

• (16)

(7) 129% Capitalized Interest 166 41

• 207

101 105% Total Financing Costs (604) (1,308) (49) (1,900) (1,804) 5% Other Income (Expenses), Net Gain on Sale of Properties

• 970
• Investment Impairment (includes Rocket Internet Impairment)

127 201 (540) (212) (1,583) (87%) Others 207 441

• 269

838 (68%) Other Income (Expenses), Net 334 642 (540) 57 225 (75%) Interest Income 60 199 111 309 255 21% Gains (Losses) on Derivative Financial Instruments, Net 134 148

• 282

(497) 157% Foreign Exchange Gains (Losses), Net (254) (41) (102) (397) 970 (141%) Total Other Income (Expenses) (363) (293) (421) (1,456) (214) 580% 1Q2017 % Change

SLIDE 48

48

ARPU U

(1) Includes Mobile Broadband subscribers

Mobile ARPU, Net(1) : Broadband ARPU, Net :

(2) Includes Corporate Fixed Broadband

1Q 1Q 2Q 3Q 4Q Smart Postpaid 965 938 951 946 970 Smart Prepaid 104 112 110 102 104 TNT 71 80 77 71 75 Sun Postpaid 413 475 453 402 418 Sun Prepaid 78 80 81 84 85 2016 2017 1Q 1Q 2Q 3Q 4Q Home Broadband (Wireless) 813 891 875 866 870 Fixed Broadband (2) 1,164 1,162 1,169 1,171 1,165 2017 2016

SLIDE 49

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Earnings nings Per Share e (EPS)

(Unaudited, Php in millions except EPS (in Php) and Shares (in mn))

Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 4,951 4,951 6,217 6,217 Dividends on Preferred Shares (15) (15) (15) (15) Net Income for the Period Attributable to Common Equity Holders of PLDT 4,936 4,936 6,202 6,202 Weighted Average Number of Common Shares, End 216,056 216,056 216,056 216,056 EPS (Based on Reported Net Income) 22.84 22.84 28.71 28.71 Core Income 5,329 5,329 7,211 7,211 Dividends on Preferred Shares (15) (15) (15) (15) Core Income Applicable to Common Shares 5,314 5,314 7,196 7,196 Weighted Average Number of Common Shares, End 216,056 216,056 216,056 216,056 EPS (Based on Core Income) 24.60 24.60 33.31 33.31 1Q2017 1Q2016

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(1) Net Debt calculated based on nominal value of debts less cash and cash equivalents and short-term investments (2) Nominal value of total debt

Balanc lance e Sheet

March 31, 2017 December 31, 2016 (unaudited) (audited) Total Assets 467,456 475,119 Nominal Value of Total Long-Term Debt 175,834 185,663 in US$ $3,501 $3,730 Less: Unamortized Debt Discount 686 631 Total Long-Term Debt 175,148 185,032 Cash and Short-Term Investments 39,953 41,460 Net Debt (1) 135,881 144,203 Equity 110,336 108,537 Total Debt(2)/Equity 1.59x 1.71x Net Debt(1)/Equity 1.23x 1.33x Total Debt(2)/EBITDA 2.88x 3.04x Net Debt (1)/EBITDA 2.23x 2.36x Consolidated (Php in millions)

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Debt t Prof

• fil

ile

Interest-Bearing liabilities

(US$ in millions)

2012 2013 2014 2015 2016 1Q2017 Debt Balance 2,851 2,353 2,920 3,429 3,730 3,501 Cash and Short-Term Investments 919 735 610 1,016 833 796 Net Debt 1,932 1,618 2,310 2,413 2,897 2,706

December 31, 2016 Carrying Value Unamortized Debt Discount/Debt Issuance Face Value (Audited) Face Value

Debt PLDT $2,100 $6 $2,106 $2,212 ($106) Smart 1,388 7 1,395 1,512 (117) DIGITEL

• 6

(6) Total Debt $3,488 $13 $3,501 $3,730 ($229)

Change

(US$ in millions)

March 31, 2017

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• Ave. Period End

Forex rate, 1Q 2017 50.01 50.22 Forex rate, 1Q 2016 47.26 45.99

% of Peso depreciation vs US$ 5.8% 9.2%

Fore reign ign Exchan hange ge Risk

For

• rex Impact

ct on

• n Cor
• re Inco

ncome For

• rex Impact

ct of

• f B/S Re

Revaluation

(in US$ millions)

US$ Revenues* US$ Expenses Cash Opex* (49.7) Cost of sales (4.6) Financing costs (12.0) US$ Income before tax Tax effect 19.8 Core Earnings EBITDA

* Gross of interconnection costs amounting to: 17.0 Local exchange revenues (in million Php) 2,638.3

78.0

Forex sensitivity for every P1 change

Conso - net of Elim 132.3 (66.3) 66.0 46.2

Debt (net of LT hedges & ST Forwards/options)* Accounts Payable 212.2 Accrued Liabilities 165.0 Derivative Liabilities 2.0 Other Current & Non Current Liabilities 0.1 Total US$ denominated Liabilities 1,059.1 Cash and Cash Equivalents 294.1 Short-term Investments 163.5 Trade and other receivables 167.3 Derivative Assets Investment in Debt Securities, Advances & Others 7.2 Total US$ denominated Assets 644.0 Forex Revaluation for every P1 change

* Debt 865.5 Less: LT hedges & ST forw ards/options 185.7 Debt (net of LT hedges) 679.8

Conso 679.8 11.9 ±415.1

Forex sensitivity for every P1 change on B/S Revaluation (in US$ millions)

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Except for historical financial and operating data and other information in respect of historical matters, the statements contained herein are “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. 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 PLDT to be materially different from any future performance, financial condition or results of operation implied by such forward-looking statement. Among the factors that could cause actual results to differ from the implied or expected results are those factors discussed under “Risk Factors” in Item 3 in PLDT’s annual report on Form 20-F.

For inquiries, please contact: PLDT INVESTOR RELATIONS (632) 816-8024 pldt_ir_center@pldt.com.ph

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