2Q18 Analysts Briefing. 8 August 2018 The Globe Tower BGC

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4 2Q18 Analysts Briefing 8 August 2018 The Globe Tower BGC

5 1H18 Performance: Momentum sustained, spurred by data Bn Bn Bn Pre-PFRS % YoY +19% YoY +21% YoY Service Revenues Revenue growth on the back of strong performance in data-related products EBITDA EBITDA gains from higher revenue and managed costs; EBITDA margin at 48% Net Income After Tax NIAT benefits from EBITDA gains despite higher depreciation and non-op charges Cash Dividend Bn Bn Bn Post-PFRS /sh Record date: August 24, 2018 Payment date: September 6,

6 Market continues to shift out of traditional services and towards data-related products Mobile Home Broadband Corporate Data Fixed Line Voice Total 1H18 vs 1H17 (pre-pfrs) +9% +12% +9% -17% +9% Mobile Subscribers Home Broadband Subscribers Postpaid Prepaid TM Wireless Wired 59.7 million +9% 65.1 million 1.2 million +22% 1.5 million 1H17 1H18 1H17 1H18 3

7 Data-related businesses account for 58% of total service revenues Mobile Data* +26%YoY Home Broadband* Corporate Data* Bn Bn Bn Data Revenues as a % of Total Service Revenues 53% 1H17 58% 1H18 +12%YoY Mobile Data Traffic +5ppt +39% 54% 280 Petabytes 1H Petabytes 1H18 +9%YoY Mobile Data Users of mobile subscriber base +8% YoY *Pre-PFRS 4

8 New products and services geared for the Filipino digital lifestyle Launch of the ONE Championship Super App in the Philippines Free 6-Month Access to DisneyLife App Globe Labs, Nexmo Team Up to Deliver Powerful Voice Solutions for SEA Market Mynt Introduces GCredit and GScore, 1st Trust Score in PH AlipayHK and GCash Launch Cross-border Remittance Service GCash Scan-to-Pay now available in more partner merchants 5

9 Updates on strategic initiatives and guidance Globe to bring 5G technology to the Philippines Revised 2018 CAPEX guidance Globe sets up new company for tower assets Globe Board approves additional capex of USD 100M bringing 2018 CAPEX guidance to USD 950M 6

10 Financial Highlights

11 1H18 Performance: 1H18 EBITDA Margin at 48%, Net Income up 21% YoY, and Core Net Income up 25% YoY 1H18 (Pre-PFRS) 1H17 YoY% 1H18 (Post-PFRS) 2Q18 (Post-PFRS) 1Q18 (Post-PFRS) QoQ% Gross Service Revenues 68,261 62,901 9% 67,251 34,073 33,178 3% OPEX and Subsidy (35,715) (35,642) - (34,205) (17,108) (17,097) 0% EBITDA 32,546 27,259 19% 33,046 16,965 16,081 5% EBITDA Margin 48% 43% 49% 50% 48% Depreciation (14,573) (13,067) 12% (14,573) (7,288) (7,285) 0% EBIT 17,973 14,192 27% 18,473 9,677 8,796 10% Non-Op Charges (3,536) (2,477) 43% (3,536) (1,783) (1,753) 2% Provision for Tax (4,654) (3,627) 28% (4,803) (2,441) (2,362) 3% Net Income 9,784 8,088 21% 10,134 5,453 4,681 16% Core Net Income 9,987 7,974 25% 10,337 5,540 4,797 16% * OPEX & Subsidy includes interconnect charges ** Core Net Income excludes forex, mark-to-market gains and losses, and non-recurring items 8

12 EBITDA growth of 19% driven by increase in revenues as well as decreased interconnect, staff, and marketing costs 5, YoY Pre-PFRS (in Mn) 27, % 32,546 6M17 EBITDA Inc. in Revenues Dec. in Interconnect Charges Dec. in Staff Costs Dec. in Marketing & Subsidy Inc. in Network Costs Inc. in Provisions, Services & Other OPEX 6M18 EBITDA QoQ Pre-PFRS (in Mn) 15,760 1Q18 EBITDA Inc. in Revenues Dec. in Interconnect Charges Inc. in Staff Costs +7% Inc. in Marketing & Subsidy Dec. in Network Costs Inc. in Provisions, Services & Other OPEX 16,786 2Q18 EBITDA 9

13 Gain in EBITDA tempered by higher depreciation, non-operating charges and taxes, resulting in 21% increase in net income. 5,287 1,506 1,059 1,026 YoY Pre-PFRS (in Mn) 8, % 9,784 6M17 Reported Net Income Change in EBITDA Inc. in Depreciation Inc. in Nonoperating expenses Inc. in Tax 6M18 Reported Net Income 1, QoQ Pre-PFRS (in Mn) 4, % 5,328 1Q18 Net Income Change in EBITDA Inc. in Depreciation Inc. in Nonoperating expenses Inc. in Tax 2Q18 Reported Net Income 10

14 Capital expenditures at approximately 22.9 billion or USD439million, with 77% related to data requirements CAPEX BREAKDOWN In Bn % 30% 15% 48% % 14% 11% 65% % 2% 7% 82% 22.9 Data, 77% Business Support, 14% Others, 8% Core, 1% H18 Data Business Support Core Others 11

15 Debt levels remain within covenant ratios The financial tests under Globe s loan agreements include compliance with the following ratios: Total Debt-to-Equity not exceeding 2.5:1 Total Debt-to-EBITDA not exceeding 3:1 Debt Service Coverage exceeding 1.3x YTD June 2018* YTD Dec 2017 Gross debt (in Bn) Gross Debt-to-Equity 1.99x 1.98x Gross Debt-to-EBITDA 2.24x 2.43x Debt Service Coverage Ratio 2.96x 3.38x Cash Dividends Rate per Common Share 22.75/sh Record date: August 24, 2018 Payment date: September 6, 2018 *Post-PFRS 12

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