PLDT, Inc. · PSE:TEL
PLDT — FY2020 Earnings Presentation
49 slides from PLDT's earnings presentation, Mar 4, 2021
Slide 1: Full Year 2020 Financial and Operating Results
Full Year 2020 Financial and Operating Results (unaudited) 4th March 2021 1
Slide 2: Together We Achieved Our Goals
TOGETHER WE ACHIEVED OUR GOALS PASSION ⚫ PURPOSE ⚫ MALASAKIT WE WORKED TO EMPOWER FILIPINO LIVES
Slide 3: 2020 Success Pillars
2020 SUCCESS PILLARS WAYS OF WORKING PEOPLE HYPER-COLLABORATION NETWORK & BRAND LOVE TECHNOLOGY CUSTOMER TRANSFORMATION EXPERIENCE
Slide 4: 2020 Highlights: Net Service Revenue
2020 HIGHLIGHTS NET SERVICE REVENUE H I G H E S T F U L L - Y E A R R E V E N U E I N H I S TO RY YOY GROWTH P13.8B 9% REVENUE GROWTH 73% ATTRIBUTED TO DATA
Slide 5: 2020 Highlights: Individual
2020 HIGHLIGHTS INDIVIDUAL YOY GROWTH P10.6B 15% REVENUE GROWTH
Slide 6: 2020 Highlights: Home
2020 HIGHLIGHTS HOME REVENUE GROWTH YOY GROWTH P4.3B 11%
Slide 7: 2020 Highlights: Enterprise
2020 HIGHLIGHTS ENTERPRISE P2.0B 5% REVENUE GROWTH YOY GROWTH
Slide 8: 2020 Highlights: International
2020 HIGHLIGHTS INTERNATIONAL YOY GROWTH P3.0B -33% REVENUE GROWTH
Slide 9: FY2020 Financial Highlights
FY2020 Financial Highlights 9
Slide 10: PLDT Group: Service Revenues (by Customer Segment)
PLDT Group: Service Revenues (by Customer Segment) (Php in bn) FY2020 vs FY2019 15% Individual 82.7bn +10.6bn 11% Home 41.4bn +4.3bn 5% Enterprise 41.2bn +2.0bn 11% Consumer and Enterprise 165.3bn +16.9bn International and Carrier 33% 10% * 6.1bn -3.0bn -0.7bn * excl Mobile Domestic Inbound 9% Total
Slide 11: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights (Php in bn) vs FY 2019 FY 2020 Service Revenues 9% (net of interconnection costs) 171.5bn +13.8bn Cash Opex, Subsidies, Provisions 82.7bn* 149.4bn 11% (ex-MRP) * excl Provisions: P75.1bn, +P5.3bn or +8% +8.1bn Provisions 7.6bn EBITDA 88.8bn 7% (ex-MRP) Margin: 51% +5
Slide 12: Consolidated Service Revenues: Upward momentum accelerating
Consolidated Service Revenues: Upward momentum accelerating (Php in bn) vs FY2019 149.4bn FY20: P171.5bn 9% +13.8bn vs 4Q17 8% 5% 10% +3.5bn +1.7bn +3.8bn 43.7 44.9 Y-o-Y % 41.4 41.5 41.3 38.0 38.7 39.6 1.5 +1% 1.5 -37% 36.3 37.6 2.3 1.6 1.5 35.6 36.3 2.3 2.2 2.2 2.3 10.7 +4% 11.2 +16% 3.5 3.5 2.7 9
Slide 13: Consolidated Service Revenues: All-time high in 2020
Consolidated Service Revenues: Reaching an all-time high in 2020 (Php in bn) 9% +13.8bn 171.5 157.7 6.1 148.5 153.0 153.5 151.6 146.9 142.3 145.8 9.1 -33% 26.9 28.0 24.0 11.9 41.4 27.5 20.3 16.0 37.2 +11% 25.1 26.2 26.7 29.3 33.0 36.1 24.1 41.2 39.1 +5% 21.4 23.6 25.4 28.0 31.3 34.8 37.4 75.4 77.3 7
Slide 14: 2020 Service Revenues: Data accounts for 73% of total
2020 Service Revenues: Data accounts for 73% of total, remains the main driver of growth (Php in bn) 149.4bn 9% (2020 vs 2019) FY20: P171.5bn +13.8bn Data and broadband Mobile Internet** Home Broadband*** 62.2bn 29% 33.0bn 16% 124.5bn 18% +13.9 +4.6 +19.3 Corp. Data ICT % to total: 73% Consumer + En
Slide 15: Consolidated Service Revenues: Data revenues over 4x 2012 level
Consolidated Service Revenues: Data revenues in 2020 over 4x level in 2012 (Php in bn) Data/broadband SMS/Voice ILD 9% +13.8bn 171.5 153.5 157.7 4.0 148.5 153.0 151.6 146.9 145.8 142.3 4.3 19.9 20.0 18.0 14.2 11.1 8.5 6.2 43.0 48.3 51.9 87.3 76.2 68.0 +18% 124.5 97.9 93.6 +20% 98.3 105.2 +19.3 87.7
Slide 16: Consolidated EBITDA and Telco Core Income: 2020 vs 2019
Consolidated EBITDA (ex-MRP) and Telco Core Income: 2020 vs 2019 (Php in bn) Higher Higher Cash Higher Svc Rev (net of IC) Opex/CoS Provisions +13.8 -5.3 -2.8 88.8 83.1 EBITDA 7% (ex-MRP) +5.7bn 2019 2020 EBITDA margins 52% 51% Higher Higher Higher Higher Lower EBITDA Depreciation Fin. Cost, Equity
Slide 17: Consolidated EBITDA (ex-MRP): Hitting an all-time high
Consolidated EBITDA (ex-MRP): Hitting an all-time high (Php in bn) vs FY2019 All time high 149.4bn FY20: P88.8bn 7% +5.7bn Margin: 51% FY18: 68.3bn FY19: 83.1bn FY20: 88.8bn 22.8 22.7 22.8 21.6 21.6 20.1 19.9 20.4 17.4 17.4 17.1 16.4 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Qtr av
Slide 18: Telco Core Income: Higher year-on-year
Telco Core Income: Higher year-on-year despite challenging business environment (Php in bn) vs FY2019 149.4bn FY20: P28.1bn 4% +1.0bn FY18: P24.0bn FY19: P27.1bn FY20: P28.1bn 7.2 7.7 7.1 7.1 6.8 6.9 7.0 6.4 5.9 6.0 6.2 4.9 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Qtr ave: P6.0bn
Slide 19: Telco Core Income and Reported Net Income
PLDT Group: Telco Core Income and Reported Net Income (Php in bn) 2020 vs 2019 4% Telco Core Income 28.1bn +1.0bn Share in Voyager Loss (2.0bn) -0.2bn Telco Core Income + Voyager 26.1bn 3% +0.8bn Gain on Sale of Smart Tower, net of tax 2.3bn Forex, Derivatives & Others 1.2bn Voyager Gain on Dilution
Slide 20: PLDT Group: Capital Management
PLDT Group: Capital Management Final Cash Dividend Declared Record Date: Payment Date: 4 March 2021 P40/share 18 March 2021 6 April 2021 ➢ In line with PLDT’s dividend policy: 60% of 2020 telco core earnings of P28.1bn ➢ Interim dividend per share paid (September 2020): P38 Core EPS P130 Dividend Pa
Slide 21: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (US$ in billions) (US$ in millions, 31 December 2020) Net Debt Net Debt-to-EBITDA* 2.05x Gross Debt US$3,783mn US$4,665mn (9M20: 2.13x) 2,327 3.4 3.8 3.3 4.7 3.8 2.4 1.0 0.5 0.9 569 461 369 315 326 298 2018 2019 2020 Debt Balance ** Cash
Slide 22: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) 2011 to 2015 2016 to 2020 Last 10 Years Capex 2021 Total Capex Investments P174.4bn P286.4bn P460.7bn Guidance P88bn – P92bn ➢ Capex is “demand driven” resulting in a faster monetization of the Business Capex investment Network/IT 25% ▪ Network/IT capex to
Slide 23: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights Extensive Fixed Network Rollout TOTAL CAPACITY (Fiber) TOTAL FIBER FOOTPRINT TOTAL HOMES PASSED (Million Ports) (Thousand Cable Kilometers Laid) (Million Homes) ➢ Available Ports: 1.0mn fiber + 0.5mn ➢ 2020 roll out was 1.4x vs 2019 roll out VVDS
Slide 24: PLDT Group: Latest views for 2021
PLDT Group: Latest views for 2021 Data/broadband to underpin growth across Revenues all customer segments Consolidated service revenue y-o-y growth: high single digit ➢ Network quality and superior customer experience to support revenue increases ▪ Sustained upward momentum in the Individual segment
Slide 25: Additional Slides
@ PLOT Additional Slides 25
Slide 26: PLDT Group Subscriber Base
PLDT Group Subscriber Base (in mn) 2020 2019 1% Total Subscribers 79.1mn 78.0mn +1.0mn Mobile 72.9mn 73.1mn -0.2mn Cellular 72.0mn 71.6mn +1% Prepaid 70.0mn 69.4mn +1% Postpaid 2.0mn 2.2mn -9% Mobile Broadband (dongles) 0.9mn 1.5mn -39% 1Q 2Q 3Q 4Q FY20 3.1mn 2.2mn 43% Fixed Broadband Broadband Gros
Slide 27: Individual: Double digit year-on-year growth sustained
Individual: Double digit year-on-year growth sustained (Php in bn) 15% 13% 20% 82.7 +10.6 +2.5 +11.9 72.1 60.3 +5% +1.0 21.0 21.9 19.5 20.2 19.6 16.9 17.6 18.2 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 FY18 FY19 FY20 Qtr ave: P18.0bn +P2.7bn Qtr ave: P20.7bn ➢ Strong revenue momentum underpinned by ro
Slide 28: Home: Revenues break-out in 2020
Home: Revenues break-out in 2020 (Php in bn) Fixed Wireless 16% 11% 3% +1.5 +4.3 41.4 +1.1 +923% 36.1 37.2 2.2 +2.0 +4% 0.2 +0.4 11.2 10.0 10.7 9.6 9.6 +6% 9.1 9.2 9.2 39.2 +2.3 36.1 37.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 FY18 FY19 FY20 Qtr ave: P9.3bn +P1.1bn Qtr ave: P10.4bn ➢ HOME revenues
Slide 29: Enterprise: Revenues continued to rise
Enterprise: Revenues continued to rise with year-on-year growth sustained at 5% (Php in bn) 5% 3% 5% +2.0 41.2 +0.3 +1.8 39.1 37.4 -3% -0.3 10.1 10.2 10.6 10.3 9.8 9.8 10.0 9.5 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 FY18 FY19 FY20 ➢ Data/broadband revenues account for 70% of total Enterprise servic
Slide 30: International/Carrier: Managing the long tail
International/Carrier: Managing the long tail (Php in bn) (excl Mobile Domestic Inbound) Mobile Domestic Inbound 37% 8% Organic Service Revenues 23% -0.9 -0.1 -2.8 33% 11.87 2.16 2.31 2.31 2.34 +1% -3.0 9.11 (excl Mobile Domestic Inbound) 1.61 1.53 1.47 1.48 6.08 10% 1.75 1.74 1.64 1.60 1.61 1.53 8.
Slide 31: Leading the Way Towards an Inclusive Digital Payments Ecosystem
Leading the Way Towards an Inclusive, End-to-End Digital Payments Ecosystem for a Cashless Philippines 28M+ #1 200K+ 37K+ Registered Unique Users Digital Payments Processor Nation-widest Largest digital Across PayMaya Consumer For key industries, touchpoints remittance network e-Commerce, Government
Slide 32: The Power of PayMaya's Inclusive and End-to-End Ecosystem
The Power of PayMaya’s Inclusive and End-to-End Ecosystem: Bringing together consumers and merchants PhP 95 B GTV for Online through e-Commerce payments Shopping PayMaya Mall brings Casual sellers using Brick and mortar SMEs Enterprises are using over 100 enterprise PayMaya app can use QR expanding
Slide 33: Appendix
Appendix 33
Slide 34: Subscriber Base: Mobile
Subscriber Base: Mobile Mobile Subscribers by Category: Net Adds (Reductions) Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 YE20 vs YE19 4Q20 vs 3Q20 (1) Mobile Subscriber Base Prepaid 70,779,021 70,027,763 67,738,421 70,590,758 70,721,789 57,232 - 751,258 1% Smart Prepaid 29,090,167 23,983,929 23,413,304 24,8
Slide 35: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Net Adds (Reductions) Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 YE20 vs YE19 4Q20 vs 3Q20 Fixed Line Subscribers 3,042,815 2,999,174 2,917,641 2,801,187 2,765,209 277,606 10% 43,641 1% Broadband Subscribers Net Adds (Reductions) Dec-20 Sep-20
Slide 36: ARPU
ARPU Mobile ARPU, Net(1) : 2020 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Smart Postpaid 804 816 804 828 796 813 809 806 Smart Prepaid 112 110 116 113 118 118 114 114 TNT 71 76 84 86 67 67 67 74 Sun Postpaid 377 386 362 376 423 418 401 403 Sun Prepaid 66 67 79 - 77 73 76 75 (1) Includes Mobile Broadband subscrib
Slide 37: FY2020: Consolidated Financial Highlights
FY2020: Consolidated Financial Highlights FY2020 Y-o-Y FY2019 Wireless Fixed Line Others Consolidated % Change (Php in millions) (1) Service Revenues 98,170 97,410 - 173,634 161,355 8% (2) Cash Operating Expenses 33,702 55,575 11 74,905 71,054 5% Subsidies and Cost of Services 2,000 2,940 - 4,925 5,
Slide 38: Consolidated Service Revenues
Consolidated Service Revenues 2020 2019 % Change FY20 vs 4Q20 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY19 4Q19 Fixed Line 18,543 18,729 20,011 20,603 77,886 18,199 17,955 18,356 18,602 73,112 7% 11% LEC 3,513 3,719 3,538 3,405 14,175 3,698 3,648 3,583 3,607 14,536 (2%) (6%) Fixed Line Vo
Slide 39: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2020 2019 % Change FY20 vs 4Q20 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY19 4Q19 Data and Broadband 29,357 29,667 31,921 33,635 124,580 24,667 25,393 26,728 28,550 105,338 18% 18% Home Broadband 7,505 7,835 8,562 9,102 33,004 6,855 6,994 7,089 7,4
Slide 40: Wireless Service Revenues
Wireless Service Revenues 2020 2019 % Change FY20 vs 4Q20 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY19 4Q19 Data/Broadband 15,532 15,828 17,086 18,325 66,771 11,670 12,603 13,679 14,981 52,933 26% 22% Mobile Data 15,519 15,816 17,078 18,318 66,731 11,643 12,580 13,660 14,965 52,848 26% 22
Slide 41: Fixed Line Service Revenues
Fixed Line Service Revenues 2020 2019 % Change FY20 vs 4Q20 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY19 4Q19 Data/Broadband 16,032 16,238 17,149 17,764 67,183 14,996 14,891 15,115 15,762 60,764 11% 13% Home Broadband 7,515 7,845 8,574 9,111 33,045 6,875 7,007 7,101 7,466 28,449 16% 22% C
Slide 42: Expenses
Expenses FY2020 Y-o-Y FY2019 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Compensation and Employee Benefits 7,803 19,046 - 26,833 24,883 8% Repairs and Maintenance 9,637 12,924 - 21,555 20,007 8% Professional and Other Contracted Services 4,014 6,769 8 7,307
Slide 43: Other Income (expenses)
Other Income (expenses) FY2020 Y-o-Y FY2019 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Multisys - - (73) (73) 150 (149%) Vega - - 87 87 35 149% Voyager - - (2,392) (2,392) (2,268) (5%) Others - 50 50 548
Slide 44: Earnings Per Share (EPS)
Earnings Per Share (EPS) FY2020 FY2019 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 24,284 24,284 22,521 22,521 Dividends on Preferred Shares (59) (59) (59) (59) Net Income for the Period Attributable to Common
Slide 45: Balance Sheet
Balance Sheet Consolidated (Php in millions) December 31, 2020 December 31, 2019 Total Assets 575,846 525,027 Nominal Value of Total Debt 224,027 193,047 in US$ $4,665 $3,800 Less: Unamortized Debt Discount 1,262 491 Total Debt 222,765 192,556 (1) Cash and Short-Term Investments 42,379 24,683 Net De
Slide 46: Debt Profile
Debt Profile (US$ in millions) 2016 2017 2018 2019 2020 Debt Balance 3,730 3,466 3,362 3,800 4,665 Cash and Short-Term Investments 833 668 1,005 486 882 Net Debt 2,897 2,798 2,357 3,314 3,783 Interest-Bearing liabilities December 31, December 30, 2020 2019 Change Carrying Unamortized Debt Face Value
Slide 47: Foreign Exchange Risk
Foreign Exchange Risk Forex Impact on Core Income Forex Impact of B/S Revaluation Forex sensitivity for every P1 change Forex sensitivity for every P1 change on B/S (in US$ millions) Conso - net of Elim Conso Revaluation (in US$ millions) US$ Revenues 567.4 Debt (net of LT hedges & ST Forwards/optio
Slide 48: Forward-looking statements
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 Exchang
Slide 49: PLDT
4 PLDT @ PLDT