2Q/1H 2017 Analysts Briefing. 8 August 2017 The Globe Tower BGC

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3 2Q/1H 2017 Analysts Briefing 8 August 2017 The Globe Tower BGC

4 Performance Highlights: Record revenues and EBITDA driven by data services. NIAT impacted by higher depreciation and interest charges. 1H17 2Q17 Service Revenues 62.9 Php billion EBITDA 27.3 Php billion +5% YoY +6% Record revenues again led by data-related revenues. Record EBITDA driven by record revenues, overcoming increases in operating expenses. +6% vs. 2Q16 Service Revenues 31.8 Php billion EBITDA +11% 13.9 YoY vs. 2Q16 Php billion Normalized NIAT Php billion Normalized NIAT 1-4% Lower NIAT due to higher depreciation -3% 4.5 YoY and interest expenses. vs. Record date on August 22, 2017 Payment date on September 6, Q16 +3% vs. 2Q16 Php billion 3Q17 Cash Dividend /sh 2 1 Excludes SMC-related charges for comparability

5 Revenue growth led by Mobile and Home Broadband Mobile Home Corporate Fixed Line Total Broadband Data Voice Δ1H17 +5% +8% +3% -5% +5% Δ2Q17 +8% +7% -1% -8% +6% Mobile Subscribers Home Broadband Subscribers 61.3 million -3% 59.7 million 1.14 million +8% 1.23 million 2Q16 2Q17 Beginning 2017, Globe to report prepaid subscribers which exclude those who do not reload within 90 days of the second expiry period versus the previous cut-off of 120 days. 2Q16 Postpaid Prepaid TM Wireless Wired 2Q17 Increase in subscriber base due to strong gross acquisitions in fixed wireless segment 3

6 Data-related services now account for 53% of total service revenues Mobile Data In Php Billions 20.3 Home Broadband In Php Billions Corporate Data In Php Billions %* +8% +3% Total Data Revenues as a Percentage of Total Service Revenues 50% 53% Mobile Data Users as a % of Mobile Subscribers 1H16 1H17 55% Mobile Data Traffic 1H16 1H17 1H16 1H % 280 Petabytes Petabytes Non-Data Revenues Data Revenues 44% +11 ppts 4 *Normalized to account for the impact of revenue allocation rules

7 On a normalized basis, mobile data revenues would have grown by 24% year on year. Facebook Traffic End of TM s free Facebook offer +1125% Paid FB volume End of Globe Prepaid s free Facebook offer +24% Normalized MDS growth Mobile Data In Php Billions Paid Free % 20.3 Jan- 16 May- 16 Jun- 16 Jul-16 Apr- 17 May- 17 Jun- 17 1H16 1H17 Period of adjustment following end of Free FB promotion followed by an increase in paid traffic Paid traffic increased significantly from January 2016 given the shift in usage habits of consumers MDS revenues grew 13% on reported revenues but normalized MDS growth at 24% Normalized MDS growth more reflective of the state of the MDS business

8 New products, events and initiatives that enrich the Filipino digital lifestyle. Globe s SEA-US Cable system to go commercial this August Globe #StreamFest highlights new GoBIG data plans Globe LIVE brings Newsies, West Side Story to Manila Never miss out on online fun with Globe GoWiFi Auto Watch longer, whenever with GoWATCH29 on GoSURF50 Create. The Rush Within. With Globe entertainment packs 6

9 Financial Highlights

10 Consolidated Financial Highlights: Record revenues and EBITDA but higher operating and non-operating expenses, and depreciation resulted in lower NIAT and Core NIAT. 6M17 Reported 6M16 Reported YoY % VTI Impact (6M17) 6M17 Normalized YoY% 2Q17 1Q17 Gross Service Revenues 62,901 59,872 5% 62,901 5% 31,779 31,122 *OPEX & Subsidy (35,642) (34,274) 4% (35,642) 4% (17,836) (17,806) EBITDA 27,259 25,598 6% 27,259 6% 13,943 13,316 EBITDA Margin 43% 43% 44% 43% Depreciation (13,067) (11,458) 14% (13,067) 14% (6,630) (6,437) EBIT 14,192 14,140-14,192-7,313 6,879 Non-Operating Charges (2,477) (1,353) 83% (727) (1,750) 29% (1,157) (1,320) Provision for Income Tax (3,627) (3,813) -5% 161 (3,788) -1% (1,829) (1,798) Net Income 8,088 8,974-10% (567) 8,655-4% 4,327 3,761 **Core Net Income 7,974 8,837-10% (567) 8,541-3% 4,293 3,681 * OPEX & Subsidy includes interconnect charges. ** Core Net Income excludes forex, mark-to-market gains and losses, and non-recurring items. Decline in 2Q17 non-operating charges stems from lower equity in net loss related to SMC transaction due to reduced losses in the joint venture and reversals of previous accruals for spectrum amortization. 8

11 Record EBITDA on the back of record revenues partially offset by higher operating expenses YoY Change in EBITDA In Php Millions 25,598 6M16 EBITDA 3,029 Inc. in Revenues 583 Dec. in Interconnect Charges ,129 Inc. in Staff Costs +6% Dec. in Marketing & Subsidy Inc. in Network Costs Inc. in Provisions, Services & Other OPEX - 27,259 6M17 EBITDA QoQ Change in EBITDA In Php Millions - 13, % ,943 1Q17 EBITDA Inc. in Revenues Inc. in Interconnect Charges Dec. in Staff Costs Dec. in Marketing & Subsidy Inc. in Network Costs Inc. in Provisions, Services & Other OPEX 2Q17 EBITDA 9

12 Reported NIAT lower by 10% year on year as increases in depreciation and nonoperating charges negated record EBITDA; on a normalized basis NIAT lower by 4% year on year. YoY Change in Reported Net Income In Php Millions 1,661 1,609 1, ,974 8,088 8,655 6M16 Reported Net Income Change in EBITDA Inc in Depreciation -10% Inc in Nonoperating Expenses -4% Dec in Tax 6M17 Reported Net Income SMC Impact 6M17 Normalized Net Income QoQ Change in Reported Net Income In Php Millions 3,761 1Q17 Net Income % Inc. in Revenues Inc. in OPEX Inc. in Depreciation Dec. in Nonoperating expenses 4,327 Inc. in Tax 2Q17 Net Income 10

13 Capital expenditures at approximately Php27.5 billion or USD553million*, with 87% related to data requirements 21.2 Capex* In Php Billions M17 * Based on FX rate of Php Capex Breakdown 35% 49% 48% 65% 87% 36% 27% 30% 14% 15% 10% 8% 10% 1% 15% 15% 15% 11% 6% 6% M17 Business Support Others Core Data 2Q17 Roll-out Updates 1,133 LTE SITES + ~150K HOME BROADBAND SUBSCRIBER LINES 11

14 Following payment of the final tranche of the SMC transaction in 2Q17, debt levels remain within covenant ratios. Gross Debt In Php Millions Gross D/E Ratio Covenant = 2.5:1 72, , , M17 Gross Debt/EBITDA Covenant = 3: M17 3Q17 Dividends Cash Dividend per Common Share: Php Record Date: August 22, 2017 Payment Date: September 6, M17 12

15 C R E A T E. W O N D E R F U L.

16 Appendix 1 Historical Consolidated Gross / Net Service Revenues and EBITDA Margin (In Million Pesos) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q CONSOLIDATED SERVICE REVENUES Mobile 21,635 22,826 23,052 23,730 23,148 22,779 22,577 23,753 23,799 24,520 Mobile Voice 9,191 9,556 9,315 9,065 8,181 8,471 8,752 8,662 7,901 8,322 Mobile SMS 6,807 6,757 6,641 6,192 5,763 5,577 5,704 6,155 5,930 5,860 Mobile Data 5,636 6,513 7,096 8,472 9,203 8,731 8,121 8,936 9,968 10,338 Fixed Line & Broadband 4,585 4,784 6,475 6,593 6,856 7,089 7,079 7,308 7,323 7,259 Home Broadband 2,300 2,419 3,127 3,474 3,534 3,615 3,738 3,793 3,844 3,882 Corporate Data 1,543 1,603 2,349 2,204 2,367 2,496 2,443 2,567 2,541 2,481 Fixed Line Voice Total 26,220 27,610 29,527 30,323 30,004 29,868 29,656 31,061 31,122 31,779 EBITDA 11,043 11,672 12,073 11,174 13,067 12,531 11,912 12,468 13,315 13,944 EBITDA Margin 42% 42% 41% 37% 44% 42% 40% 40% 43% 44% (In Million Pesos) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Net Service Revenues 24,162 25,438 27,565 28,084 27,689 27,537 27,423 28,933 29,065 29,662 Interconnection Settlement Costs 2,057 2,173 1,962 2,238 2,316 2,330 2,233 2,129 2,057 2,117 14

17 Appendix 2 Mobile Subscribers, Net Adds, Churn Rates and Gross ARPUs Subscribers 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Globe Postpaid 2,458,045 2,517,215 2,561,290 2,597,027 2,564,148 2,521,218 2,508,800 2,489,719 2,467,069 2,460,671 Globe Prepaid 22,214,373 23,287,012 24,391,990 25,915,096 25,452,193 27,381,884 29,409,827 28,433,793 26,678,674 27,696,014 TM 23,745,018 25,195,520 26,130,002 27,670,555 29,249,341 31,408,346 33,444,153 31,875,346 29,434,517 29,565,407 Total 48,417,436 50,999,747 53,083,282 56,182,678 57,265,682 61,311,448 65,362,780 62,798,858 58,580,260 59,722, Net Adds 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Globe Postpaid 9,361 59,170 44,075 35,737 (32,879) (42,930) (12,418) (19,081) (22,650) (6,398) Globe Prepaid 1,071,443 1,072,639 1,104,978 1,523,106 (462,903) 1,929,691 2,027,943 (976,034) (1,755,119) 1,017,340 TM 1,248,151 1,450, ,482 1,540,553 1,578,786 2,159,005 2,035,807 (1,568,807) (2,440,829) 130,890 Total 2,328,955 2,582,311 2,083,535 3,099,396 1,083,004 4,045,766 4,051,332 (2,563,922) (4,218,598) 1,141, Churn Rate 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Globe Postpaid 3.5% 2.9% 3.3% 3.2% 3.7% 3.7% 3.1% 2.8% 2.8% 2.5% Globe Prepaid 5.9% 6.2% 6.1% 5.2% 7.7% 5.7% 5.3% 8.2% 10.0% 6.8% TM 6.7% 6.6% 6.8% 6.1% 6.1% 6.0% 5.2% 8.8% 10.5% 7.5% Blended 6.1% 6.2% 6.3% 5.5% 6.7% 5.8% 5.2% 8.3% 9.9% 7.0% Gross ARPU 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Globe Postpaid 1,116 1,130 1,088 1,122 1,105 1,123 1,143 1,168 1,158 1,177 Globe Prepaid TM Blended HOME BROADBAND 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Revenues 2,300 2,420 3,126 3,474 3,534 3,615 3,738 3,793 3,844 3,881 Subscribers 779, ,001 1,026,466 1,068,920 1,101,189 1,136,608 1,147,951 1,130,750 1,191,261 1,229,573 Gross Adds 100, , , , , , , , , ,396 Churn Rate 2.7% 2.7% 3.6% 3.5% 3.4% 3.6% 4.2% 4.7% 2.9% 3.3% 15

18 Appendix 3 Reconciliation of Net Income to Core Net Income (in Million Pesos) 2Q17 2Q16 % Change 1Q17 % Change Reported Net Income After Tax 4,327 4,639-7% 3,761 15% Deferred Tax on Unexercised Stock Options 8 (7) -224% (44) -118% Add (deduct) Forex loss (gain) (60) % (64) -6% Other Adjustments (including acc. depreciation) 18 (8) -325% 28-36% Core Net Income 4,293 4,651-8% 3,681 17% 16