PLDT, Inc. · PSE:TEL
PLDT — 9M 2020 Earnings Presentation
62 slides from PLDT's earnings presentation, Nov 5, 2020
Slide 1: Nine Months 2020 Financial and Operating Results Presentation
Nine Months 2020 Financial and Operating Results Presentation 5th November 2020
Slide 2: Philippine Economy Decline Amid COVID
00K OFWs in jeed of Cash Aid | Philippine Economy Decline Furthe Amid COVII Recovery we
Slide 3: Internet Connectivity Is the Foundation of the Digital Economy
INTERNET CONNECTIVITY IS Tile FOUNDATION OF Tile DIGITAL EGONOMNAL
Slide 4: Being Laser-Focused
BEING LASER-FOCUSED Customer-driven Product and Service Innovations Close to Nationwide 5G Network 99% of Fiber Rollout & Cell Sites Rollout & Devices are LTE- Migration Enabled 4
Slide 5: Most extensive fiber footprint in the country
96% Wireless Population Most extensive fiber Coverage footprint in the country 395,000 kilometers of Fiber cables laid, up to 8.3 million Homes passed, and 3.84M Ports Nationwidest mobile data coverage 9,892 Cell Sites, 56,799 Base Stations, 25 Core & data centers, and 3 cable landing stations 5
Slide 6: Consistently Outpacing Local Competition
CONSISTENTLY OUTPACING LOCAL COMPETITION PHILIPPINES 16.89 Speedtest™ Global Index – September 2020 27.64 mbps Metro Manila - All Technologies SMART 19.45 41.77 mbps 14.91 Metro Manila – Modern Chipsets GLOBE Q3 2020 Ave. DL Speed Speedtest Intelligence® Fastest Mobile Award Fastest Fixed Internet A
Slide 7: my ay /
my ay / A 5 COUNTRY
Slide 8: Giga Life App, Product Launches, and 5G Commercial Rollout
INDIVIDUAL Giga Life App, Product Launches, and 5G Commercial Rollout HOME Q3 Enabling Work@home and Study@home for More Filipino Families KEY DRIVERS ENTERPRISE Enabling eIndustries INTERNATIONAL Managing the Long Tail 8
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Slide 10: Q3 2020 CRO Revenue Performance
Q3 2020 CRO REVENUE PERFORMANCE +11% vs.YAGO +4.2B P43.7B 10
Slide 11: Q3 2020 CRO Revenue Performance
Q3 2020 CRO REVENUE PERFORMANCE Individual Home Enterprise +15% +2.7B VS. YAGO 21.0B +16% +1.5B Vs. YAGO 10.7B +8% +0.8B VS. YAGO 10.6B All segments are contributing all-time high revenues 11
Slide 12: 2020 YTD CRO Revenue Performance
2020 YTD CRO REVENUE PERFORMANCE +9% vs.YAGO +10.4B P126.5B Individual Home Enterprise 60.8B 30.3B 30.9B +15% +10% +6% +8.1B +2.7B +1.7B VS. YAGO Vs. YAGO VS. YAGO 12
Slide 13: Quick adaptation to the needs of our customers
P43.7B Quick adaptation to the P41.3B +6% vs. Last Quarter needs of our customers 1.5 1.5 10.6 +0.4B 10.2 +4% enabled stable and 10.7 +0.8B 10.0 progressive growth +8% 21.0 +1.3B 19.6 +7% Q2 Q3 Individual Home Enterprise International 13
Slide 14: Market Leadership Strengthened
MARKET LEADERSHIP STRENGTHENED GAINED WIRELESS IN SERVICE REVENUES POSITION IN FIXED MARKET SHARE FOR 6 CONSECUTIVE QUARTERS NO.1 IN WIRELESS NO 1. IN DATA BIGGEST PREPAID DATA TRAFFIC USERS BRAND 14
Slide 15: No Learner Left Behind
Smart | & NO LEARNER LEFT BEHIND
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Slide 17: Typhoon Rolly
A “TYPHOON ROLLY VICE
Slide 18: 9M2020 Financial Highlights
9M2020 Financial Highlights 18 1
Slide 19: PLDT Group: Service Revenues (by Customer Segment)
PLDT Group: Service Revenues (by Customer Segment) (Php in bn) 3Q2020 vs 3Q2019 vs 2Q2020 All-time high 15% 7% Individual 21.0bn +2.7bn +1.3bn All-time high Enterprise 8% 4% 10.6bn +0.8bn +0.4bn All-time high Home 16% 8% 10.7bn +1.5bn +0.8bn All-time high Consumer and Enterprise 42.3bn 13% 6% +5.0bn
Slide 20: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights (Php in bn) 3Q 2020 vs 3Q2019 Service Revenues 43.7bn 10% (net of interconnection costs) +4.1bn Cash Opex, Subsidies, Provisions 21.0bn 9% (ex-MRP) * excl Provisions: P18.1bn, stable +1.8bn Provisions 2.9bn EBITDA 22.7bn 12% (ex-MRP) Margin: 51% +2.4bn 10% Depreciati
Slide 21: PLDT: Service Revenues (by Customer Segment)
PLDT: Service Revenues (by Customer Segment) 2020 vs 2019 (Php in bn) 1Q 2020 2Q 2020 3Q 2020 9M 2020 vs 9M 2019 All-time high All-time high 20.2bn 19.6bn 21.0bn 60.8bn 15% Individual +20% +3.3 +12% +2.1 +15% +2.7 +8.1bn All-time high All-time high Enterprise 10.1bn 10.2bn 10.6bn 30.9bn 6% +3% +0.3
Slide 22: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights (Php in bn) 9M2020 vs 9M2019 Service Revenues 9% 126.6bn (net of interconnection costs) +10.3bn Cash Opex, Subsidies, Provisions 60.6bn* 149.4bn 8% (ex-MRP) +4.7bn * excl Provisions: P54.2bn, +P2.1bn or +4% Provisions 6.4bn EBITDA 66.0bn 9% (ex-MRP) Margin: 52% +5.6b
Slide 23: Consolidated Service Revenues: All-time highs for 3Q20
Consolidated Service Revenues: All-time highs for 3Q20 (Php in bn) 149.4bn 9% 9M20: P126.6bn +10.3bn (vs 9M2019) vs 3Q17 10% 1% 9% +4.1bn All-time high +0.5bn +3.3bn 43.7 Y-o-Y % 41.4 41.5 41.3 -36% 38.0 38.7 39.6 -4% 1.5 36.3 37.6 2.3 1.6 1.5 35.6 36.3 2.3 2.3 2.2 2.2 10.7 +16% 3.5 3.5 2.7 9.6 9.6
Slide 24: Upward momentum propelled by data/broadband
Consolidated Service Revenues: Upward momentum propelled by data/broadband (Php in bn) 149.4bn 9% Data and Broadband 9M20: P126.6bn 18% +10.3bn P90.8bn (vs 9M2019) +14.2bn (vs 9M2019) Data/broadband SMS/Voice ILD 10% +4.1bn 41.4 41.5 43.7 39.6 41.3 37.6 38.0 38.7 1.0 35.6 36.3 36.3 0.8 1.0 1.1 1.1 1
Slide 25: Data accounts for 72% of total service revenues
9M 2020 Service Revenues: Data accounts for 72% of total, remains the main driver of growth (Php in bn) (2020 vs 2019) P126.6bn149.4bn 9% +10.3bn Data and broadband Mobile Internet** Home Broadband 45.2bn 31% 23.9bn 14% 90.8bn 18% +10.8 +3.0 +14.2 Corp. Data Data Center % to total: 72% Consumer + En
Slide 26: Consolidated EBITDA (ex-MRP) and Telco Core: 9M 2020 vs 9M2019
Consolidated EBITDA (ex-MRP) and Telco Core: 9M 2020 vs 9M2019 (Php in bn) Higher Higher Cash Higher Higher Svc Rev (net of IC) Opex/CoS Provisions Subsidies +10.3 -2.0 -2.6 -0.2 66.0 60.3 9% EBITDA (ex-MRP) +5.6bn 9M 2019 9M 2020 EBITDA margins 51% 51% Higher Higher Higher Higher Higher EBITDA Depr
Slide 27: Consolidated EBITDA (ex-MRP)
Consolidated EBITDA (ex-MRP): Quarter average of P22.0bn higher than 2019 average (Php in bn) 149.4bn 9M20: P66.0bn 9% +5.6bn (vs 9M2019) 12% +2.4bn +5% 22.8 21.6 +1.2 22.7 20.4 21.6 20.1 19.9 17.4 17.4 17.1 16.4 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Qtr ave: P17.1bn Qtr ave: P20.8b
Slide 28: Collections and Provisions
Collections and Provisions ➢ During the lockdown, PLDT offered deferred payment options (up to 6-months interest-free) to its Home and Enterprise customers ▪ Resulted in drop in cash collections ✓ As low as 34% of pre-ECQ collection for PLDT in April 2020 o Starting June 2020, collections have excee
Slide 29: Telco Core Income: FY20 earnings poised to surpass 2019
Telco Core Income: FY20 earnings poised to surpass 2019 (Php in bn) 149.4bn 9M20: P21.0bn 8% +1.6bn (vs 9M2019) 14% +0.9bn +2% +2% 7.2 7.7 +0.1 7.1 6.8 6.9 7.0 +0.1 6.4 5.9 6.0 6.2 4.9 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Qtr ave: P6.0bn Qtr ave: P6.8bn Qtr ave: P7.0bn FY19: P27.1b
Slide 30: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income (Php in bn) 9M 2020 8% Telco Core 21.0bn +1.6bn Voyager Loss (1.3bn) -0.3bn Rocket Internet ✓ On 1 Sept, public delisting via self tender offer at €18.57/share 7% Telco Core + Voyager 19.7bn announced o PLDT completed sale of +1.3bn 1.9mn shares held ahead
Slide 31: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (US$ in billions) (US$ in millions, 30 September 2020) Net Debt Net Debt-to-EBITDA* Gross Debt US$3,907mn 2.13x (1H20: 2.19x) US$4,626mn 2,402 3.4 3.8 3.3 4.6 3.9 2.4 1.0 0.5 0.7 94 468 363 549 308 442 2018 2019 9M2020 2020 2021 2022 2023
Slide 32: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) Total Capex Investments At least P70bn (2011 to 9M 2020) P432.0bn Capex 2020 Forecast ➢ Capex of P43.2bn as of end Sept 2020 includes: Business Capex ▪ Network/IT capex: P33.3bn Network/IT ▪ Business capex: 7.4bn 25% ▪ Data center/others: 2.4bn +14.4bn 19%
Slide 33: 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) ➢ 0.9mn fiber + 0.5mn VVDSL (V-Fiber) ➢ Addl 36K kms of fiber from end 2Q20 or about
Slide 34: Smart and PLDT still the fastest Mobile and Fixed network providers
Smart and PLDT still the fastest Mobile and Fixed network providers in the country Based on Ookla Speedtests as of Q3 2020 Ookla Average Mobile Download Speeds (Mbps) Ookla Average Fixed Download Speeds (Mbps) Nationwide Nationwide 30.6 18.62 25.67 22.89 14.25 17.26 Smart Globe PLDT Converge Sky Glo
Slide 35: Smart continues to improve its Quality of Experience
Smart continues to improve its Quality of Experience and leads across regions based on Opensignal 4G/LTE Availability Score Video Experience Score (2018Q4 vs 2020Q3) (2018Q4 vs 2020Q3) (% Time) (0-100) H 90.6 (+10.8%) H 65.7 (+20.4%) NCR H 89.8 H 45.1 North & Central H 84 (+41.5%) H 49.5 (+26.3%) Lu
Slide 36: umlaut Global Telco Industry QoS Tests: Smart winning
Based on umlaut (P3) Global Telco Industry QoS Tests: Smart winning by large margin vs competition while standards becomes tougher each year 2018 – 2020 umlaut Mobile Wireless Benchmark Trend Consistently Winning 2019-Onwards Voice QOS Data QOS Video QOS Crowd QOE 2019 & 2020 Smart Best in Test Publ
Slide 37: PLDT Group: Latest views for 2020
PLDT Group: Latest views for 2020 Capex At least P70bn ➢ Level similar to 2019 despite slowdown during lockdown ➢ Network rollout ramped up following easing of the lockdown and improvement of permitting process ➢ Driven by demand, i. e., increase in mobile traffic/usage, acceleration of home broadba
Slide 38: Other Details
Other Details 38
Slide 39: Individual: Sustained double-digit year-on-year growth
Individual: Sustained double-digit year-on-year growth 149.4bn (Php in bn) 15% 149.4bn 15% 9M20: P60.8bn +2.7bn +8.1bn (vs 9M2019) +7% +1.3 21.0 19.4 20.2 19.6 16.9 17.6 18.2 15.1 16.5 14.2 14.4 All-time High 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 2018: P60.3bn 2019: P72.1bn Qtr ave:
Slide 40: Home: Break-out performance in 3Q20
Home: Break-out performance in 3Q20 (Php in bn) 149.4bn 9M20: 30.3bn 10% 16% +2.7bn +1.5bn DOLE Order (vs 9M2019) +8% 10.7 9.6 9.6 10.0 +0.8 9.1 9.1 9.1 9.1 9.2 9.2 8.8 All-time High 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Note: Net of 2018: P36.1bn 2019: P37.2bn interconnection costs
Slide 41: Enterprise: 4% q-o-q, 8% y-o-y growth in 3Q20
Enterprise: Despite economic impact of COVID-19, 4% q-o-q, 8% y-o-y growth in 3Q20 (Php in bn) 149.4bn 8% 9M20: 30.9bn 6% +0.8bn +1.7bn (vs 9M2019) +4% +0.4 10.6 10.0 10.1 10.2 9.3 9.8 9.8 9.5 9.8 9.0 9.2 All-time High 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 2018: P37.4bn 2019: P39.1b
Slide 42: International/Carrier: Declines moderating
International/Carrier: Declines moderating (Php in bn) Year-on-year (excl Mobile Domestic Inbound) Organic 32% 10% Mobile Domestic Inbound 9M20: P4.6bn (excl Mobile Domestic Inbound) -2.2bn -0.5bn 36% 11% (vs 9M2019) (vs 9M2019) -0.8bn -0.2bn 3.47 3.48 2.74 2.31 2.34 -4% 2.18 2.16 2.31 -0.1 1.61 1.5
Slide 43: PLDT Group Subscriber Base
PLDT Group Subscriber Base (in mn) end September 2020 vs end 2019 Total Subscribers 78.2mn +0.2mn Mobile 72.4mn 1% -0.7mn Cellular - Prepaid 69.2mn -0.2mn 71.3mn Cellular - Postpaid 2.1mn -0.1mn Mobile Broadband (dongles) 1.1mn -0.5mn Fixed Line 3.0mn 8% +0.2mn Net adds of 82K from end 2Q20 2.8mn 31
Slide 44: PayMaya: Leading Digital Payments Provider
PayMaya: Leading Digital Payments Provider Only end-to-end digital payments enabler connecting enterprises and consumers Enterprise Consumer Banked Large Enterprise Government Underbanked Ecosystem MSMEs Unbanked 26M+ Registered Customers across PayMaya platforms #1 150K+ 33K Largest payments proces
Slide 45: PayMaya: Transformative Payments for the Better Normal
PayMaya: Transformative Payments for the Better Normal Digitizing industries including “everyday” merchants, enabling consumers as the economy reopens • More than 1,400% growth in unique merchants across segments • Over 60 gov’t units enabled, posting more than 3,000% YoY growth in transactions for
Slide 46: Appendix
Appendix 46
Slide 47: Subscriber Base: Mobile
Subscriber Base: Mobile Mobile Subscribers by Category: Net Adds (Reductions) Sep-20 Jun-20 Mar-20 Dec-19 Sep-19 3Q20 vs YE19 3Q20 vs 3Q19 3Q20 vs 2Q20 (1) Mobile Subscriber Base Prepaid 70,027,763 67,738,421 70,590,758 70,721,789 69,012,106 (694,026) -1% 1,015,657 1% 2,289,342 3% Smart Prepaid 23,9
Slide 48: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Net Adds (Reductions) Sep-20 Jun-20 Mar-20 Dec-19 Sep-19 3Q20 vs YE19 3Q20 vs 3Q19 3Q20 vs 2Q20 Fixed Line Subscribers 2,999,174 2,917,641 2,801,187 2,765,209 2,727,035 233,965 8% 272,139 10% 81,533 3% Broadband Subscribers Net Adds (R
Slide 49: ARPU
ARPU Mobile ARPU, Net(1) : 2020 2019 1Q 2Q 3Q 1Q 2Q 3Q 4Q Smart Postpaid 804 816 804 796 813 809 806 Smart Prepaid 112 110 116 118 118 114 114 TNT 71 76 84 67 67 67 74 Sun Postpaid 377 386 362 423 418 401 403 Sun Prepaid 66 67 79 77 73 76 75 (1) Includes Mobile Broadband subscribers Broadband ARPU,
Slide 50: 9M2020: Consolidated Financial Highlights
9M2020: Consolidated Financial Highlights 9M2020 Y-o-Y 9M2019 Wireless Fixed Line Others Consolidated % Change (Php in millions) Service Revenues (1) 72,287 71,087 - 127,849 119,008 7% (2) Cash Operating Expenses 24,459 38,029 6 51,861 53,185 (2%) Subsidies and Cost of Services 1,430 2,314 - 3,704 4
Slide 51: Consolidated Service Revenues
Consolidated Service Revenues 2020 2019 % Change 9M20 vs 3Q20 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M19 3Q19 Fixed Line 18,543 18,729 20,011 57,283 18,199 17,955 18,356 54,510 18,602 73,112 5% 9% LEC 3,513 3,719 3,538 10,770 3,698 3,648 3,583 10,929 3,607 14,536 (1%) (1%) Fixed Line Vo
Slide 52: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2020 2019 % Change 9M20 vs 3Q20 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M19 3Q19 Data and Broadband 29,357 29,667 31,921 90,945 24,667 25,393 26,728 76,788 28,550 105,338 18% 19% Home Broadband 7,505 7,835 8,562 23,902 6,855 6,994 7,089 20,938 7,4
Slide 53: Wireless Service Revenues
Wireless Service Revenues 2020 2019 % Change 9M20 vs 3Q20 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M19 3Q19 Data/Broadband 15,532 15,828 17,086 48,446 11,670 12,603 13,679 37,952 14,981 52,933 28% 25% Mobile Data 15,519 15,816 17,078 48,413 11,643 12,580 13,660 37,883 14,965 52,848 28% 25
Slide 54: Fixed Line Service Revenues
Fixed Line Service Revenues 2020 2019 % Change 9M20 vs 3Q20 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M19 3Q19 Data/Broadband 16,032 16,238 17,149 49,419 14,996 14,891 15,115 45,002 15,762 60,764 10% 13% Home Broadband 7,515 7,845 8,574 23,934 6,875 7,007 7,101 20,983 7,466 28,449 14% 21%
Slide 55: Expenses
Expenses 9M2020 Y-o-Y 9M2019 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Compensation and Employee Benefits 5,627 12,032 - 17,647 19,284 (8%) Repairs and Maintenance 7,445 9,176 - 15,875 14,224 12% Professional and Other Contracted Services 3,132 4,901 3 5,6
Slide 56: Other Income (expenses)
Other Income (expenses) 9M2020 Y-o-Y 9M2019 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Multisys - - (112) (112) 78 (244%) Vega - - 32 32 (24) 233% Voyager - - (1,577) (1,577) (1,329) 19% Others - 81 (122)
Slide 57: Earnings Per Share (EPS)
Earnings Per Share (EPS) 9M2020 9M2019 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 19,687 19,687 15,996 15,996 Dividends on Preferred Shares (44) (44) (44) (44) Net Income for the Period Attributable to Common
Slide 58: Balance Sheet
Balance Sheet Consolidated (Php in millions) September 30, 2020 December 31, 2019 Total Assets 547,433 525,027 Nominal Value of Total Debt 224,010 193,047 in US$ $4,626 $3,800 Less: Unamortized Debt Discount 1,187 491 Total Debt 222,822 192,556 Cash and Short-Term Investments (1) 34,842 24,683 (2) N
Slide 59: Debt Profile
Debt Profile (US$ in millions) 2016 2017 2018 2019 9M2020 Debt Balance 3,730 3,466 3,362 3,800 4,626 Cash and Short-Term Investments 833 668 1,005 486 719 Net Debt 2,897 2,798 2,357 3,314 3,907 Interest-Bearing liabilities December 31, September 30, 2020 2019 Unamortized Debt Change Carrying Discoun
Slide 60: 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 398.2 Debt (net of LT hedges & ST Forwards/optio
Slide 61: 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 62: PLDT
4 PLDT