PLDT, Inc. · PSE:TEL
PLDT — FY2019 Earnings Presentation
43 slides from PLDT's earnings presentation, Mar 5, 2020
Slide 1: Financial and Operating Results
FINANCIAL AND OPERATING RESULTS 5th March 2020
Slide 2: PLDT Group: 4Q 2019 Financial Highlights
PLDT Group: 4Q 2019 Financial Highlights (in Php) 4Q2019 vs 4Q 2018 vs 3Q 2019 Individual 19.4bn +18% +7% 47% +2.9bn +1.2bn Enterprise 10.0bn +3% +2% 24% 47% +0.2bn +0.2bn Home 9.6bn +6% +4% 23% +0.5bn +0.4bn Consumer and 39.1bn 10% 5% Enterprise 94% + 3.7bn +1.8bn 2.3bn +6% +2% International/Carrie
Slide 3: PLDT Group: FY 2019 Financial Highlights
PLDT Group: FY 2019 Financial Highlights (in Php) FY2019 vs FY 2018* Individual 72.1bn +20% 46% +11.8bn Enterprise 39.2bn +5% 25% 48% +1.9bn Home 37.2bn +3% 23% +1.1bn Consumer and 148.5bn 11% Enterprise 94% +14.8bn 9.0bn -24% International/Carrier 6% -2.9bn Service Revenues 8% 157.7bn (net of inter
Slide 4: PLDT Group: Historical Service Revenues
PLDT Group: Historical Service Revenues (Php in bn) Service Revenues ILD Highest 8% 2% +11.9 2% 157.7 153.0 153.5 151.6 148.5 146.9 142.3 +3.5 2% 145.8 4.3 19.9 20.0 18.0 14.2 11.1 8.5 6.2 -2.0 137.4 135.8 133.8 139.6 +13.9 153.5 128.6 133.0 135.4 2012 2013 2014 2015 2016 2017 2018 2019 Full Year PF
Slide 5: CRO: Sustained acceleration in revenue growth
CRO: Sustained acceleration in revenue growth (Php in bn) FY19: P157.5bn 149.4bn 8% +11.9bn 10% 5% 1% +3.8bn +1.7bn Y-o-Y +0.5bn 41.4 % 37.9 38.7 39.6 36.3 36.2 37.6 2.3 +6% 35.4 35.2 35.7 35.9 35.5 2.3 2.3 35.2 2.7 2.2 2.1 4.0 4.1 3.7 3.5 3.5 9.6 +6% 4.8 4.2 9.2 9.1 9.1 9.2 8.7 9.1 9.1 7.6 7.8 8.0
Slide 6: FY19 Service Revenues: Data now 67% of total revenues
FY19 Service Revenues: Data now 67% of total revenues (Php in bn) P157.7bn149.4bn 8% +11.9bn Data and broadband Domestic voice SMS International voice (fixed and mobile) (fixed and mobile) 149.4bn 20% 149.4bn 5% 149.4bn 16% 149.4bn 32% 105.2bn 39.7bn 8.6bn 4.3bn +17.5bn -2.0bn -1.6bn -2.0bn ✓ Mobile
Slide 7: PLDT Group: EBITDA
PLDT Group: EBITDA (in Php bn) Higher Lower Subsidies Higher Reduction Higher Cash Cost of in Rent 14% and Svc Opex Services Expense Provisions +9.6bn Rev* +3.6 -0.4 -0.3 83.1 -5.3 +11.9 77.8 68.3 PFRS16 22% impact +14.8bn FY18 FY19 FY19 (ex-Voyager) (before PFRS16 impact) EBITDA margins 45% 52% 48%
Slide 8: PLDT Group: Historical EBITDA (ex-MRP)
PLDT Group: Historical EBITDA (ex-MRP) (Php in bn) 22% +14.8bn 1% 84.2 83.1 78.4 77.8 79.4 76.7 72.4 69.1 68.3 5.3 61.8 77.8 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Margin: 57% 54% 49% 48% 47% 45% 39% 46% 45% 52%* * 48% pre-PFRS ➢ Despite change in revenue mix with declines in higher margi
Slide 9: PLDT Group: Telco Core Income
PLDT Group: Telco Core Income (in Php bn) Higher Higher Higher Higher Higher EBITDA Depreciation Fin. Cost, Misc. Prov. for +14.8 -7.8 net Income Inc. Tax -1.7 +1.0 -3.4 27.1 24.0 13% +3.0bn FY18 FY19 ➢ Impact to telco core income from adoption of PFRS16 effective 1 January 2019: ▪ Decrease in rent
Slide 10: PLDT Group: Historical Telco Core
PLDT Group: Historical Telco Core (Php in bn) 13% 43.7 +3.0bn 38.7 34.9 35.4 34.5 29.1 27.1 24.0 21.0 23.6 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 PFRS 15 Pre-PFRS15 - P24.4bn (2018) Note: Ex-Voyager, ex-MRP, ex-asset sales 10
Slide 11: PLDT Group: Capital Management
PLDT Group: Capital Management Final Record Date: Payment Date: Cash Dividend Declared: P39/share 19 March 2020 3 April 2020 5 March 2020 ➢ In line with PLDT’s dividend policy: 60% of 2019 telco core earnings of P27.1bn ➢ Interim dividend per share of P36 paid in September 2019 Core EPS P125 Dividen
Slide 12: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (US$ in billions) (US$ in millions, 31 December 2019) Net Debt Net Debt-to-EBITDA* Gross Debt US$3,309mn 2.0x US$3,800mn Maturities well spread out 1,419 3.5 3.4 3.8 3.3 2.8 2.4 390 445 335 521 272 418 0.7 1.0 0.5 2017 2018 2019 2020 2021
Slide 13: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in billions) Total Capex Investments (2011 – 2019) P388.2bn ➢ Capex for 2019 of P72.9bn lower by P5.5bn vs P78.4bn guidance 14% ▪ Back-ended home installations in 2019 25% ✓ Programmed business capex spend of P5.5bn to be carried +10.1bn 83.0 +14.4bn over into 202
Slide 14: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights Extensive Fixed Network Rollout TOTAL HOMES PASSED TOTAL CAPACITY TOTAL FIBER FOOTPRINT (Million Homes) (Million Ports) (Thousand Cable Kilometers Laid) ➢ 1.2mn fiber + 0.6mn VVDSL ports ➢ 78.4kms of fiber laid from end 2018 available at end Dec
Slide 15: Superior mobile network supports growing data traffic and CX
Superior mobile network supports growing data traffic and CX Dec 2019 Wireless Payload • 2.2x Dec 2018 • 4.0x April 2018 TB/day Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 ➢ Exponential growth in data traffic mainly from video streaming a
Slide 16: Chief Revenue Office
Chief Revenue Office 16
Slide 17: 2019 CRO Service Revenues
2019 CRO SERVICE REVENUES 157.5 REVENUE GROWTH Php Drove data adoption targeting passion points in the Individual, Bn Home and International segments, while Enterprise grew Wireless beyond core products +11.9B, +8% vs 2018 CX OPTIMIZATION Implemented operational efficiencies in Home through I&R Proc
Slide 18: 2020 Key Initiatives
2020 KEY INITIATIVES INDIVIDUAL HOME Drive customer engagement through customized Re-design customer service throughout the data offers that support their different passions customer journey and be the driver for Smarter and interests. homes in 2020. ENTERPRISE INTERNATIONAL Play a more active role
Slide 19: Future Proofing Revenues by Shielding Subscribers in 2020 and Beyond
STRATEGIC THEMES AND IMPERATIVES FUTURE PROOFING REVENUES BY SHIELDING SUBSCRIBERS IN 2020 AND BEYOND Operational Build the Business of Customer Experience Excellence Tomorrow SINGLE CUSTOMER SINGLE CUSTOMER 5G / WIFI PLATFORM VIEW COPPER TO FIBR SERVICE RELIABILITY TO POWERFUL DIGITAL MIGRATION CUS
Slide 20: Corporate Direction: Customer-centricity as our True North
CORPORATE DIRECTION Customer-centricity as our True North, we enable every Filipino’s dreams and passions To provide trusted services and solutions by building an ecosystem that uplifts Filipinos through consistent heartfelt experiences 20
Slide 21: PLDT Group: 2020 View
PLDT Group: 2020 View Capex: up to P83.0bn ➢ Network/IT capex: P64.6bn (to support growing data traffic) ➢ Business capex: P18.5bn (for home broadband installations) Revenues: Upward momentum to continue ➢ Wireless: ▪ Sustained increases from growing mobile data adoption and usage ➢ Home: ▪ Anticipa
Slide 22: Other details
Other details @PLOT Bsmart 22
Slide 23: Individual: Strong recovery with 20% growth in 2019
Individual: Strong recovery with a 20% year-on-year growth in 2019 (Php in bn) 149.4bn 20% 72.1 18% +11.8bn 65.8 +2.9bn 60.3 58.3 +4% +7% +0.6 +1.2 18.2 19.4 16.5 16.9 17.6 14.2 14.4 15.1 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 FY16 FY17 FY18 FY19 Note: Net of interconnection costs PAS18 ➢ Accelerat
Slide 24: Home: Growth momentum started to pick up in 2H19
Home: Growth momentum started to pick up in 2H19 (Php in bn) 3% DOLE Order 6% +1.1bn 37.2 +0.5bn 36.1 33.0 29.3 +4% +0.4 9.6 9.2 9.2 9.1 9.1 9.1 9.1 8.8 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 FY16 FY17 FY18 FY19 PAS18 ➢ Data/broadband account for 77% of revenues ➢ Early half of 2019 focused on revi
Slide 25: Enterprise: Making steady progress
Enterprise: Making steady progress (Php in bn) 5% 3% +1.9bn 39.2 +0.2bn 37.4 34.8 31.3 +2% +0.2 9.8 9.8 9.6 9.8 10.0 9.0 9.2 9.3 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 FY16 FY17 FY18 FY19 PAS18 ➢ 4Q19 revenues crossed the P10bn mark for the first time ➢ Data/broadband account for 67% of revenues •
Slide 26: International/Carrier: Quarterly revenues stable in 2019
International/Carrier: Quarterly revenues stable in 2019 (Php in bn) 6% 20.3 24% +0.1bn 16.0 -2.9bn 11.9 3.5 3.5 +2% 9.0 2.7 2.29 2.28 2.32 2.2 2.13 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 FY16 FY17 FY18 FY19 ➢ Heavy drag from the International/Carrier segment no longer evident in 2019 • Shift in fo
Slide 27: Appendix
@PLOT Bsmart Appendix
Slide 28: Subscriber Base: Mobile
Subscriber Base: Mobile Mobile Subscribers (1) by Category: Net Adds (Reductions) Dec-19 Sep-19 Jun-19 Mar-18 Dec-18 YE19 vs YE18 1Q19 vs YE18 2Q19 vs 1Q19 3Q19 vs 2Q19 4Q19 vs 3Q19 (1) Mobile Subscriber Base Prepaid 70,721,789 69,012,106 65,151,418 61,585,197 58,178,978 12,542,811 22% 3,406,219 6%
Slide 29: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Net Adds (Reductions) Dec-19 Sep-19 Jun-19 Mar-18 Dec-18 YE19 vs YE18 1Q19 vs 4Q18 2Q19 vs 1Q19 3Q19 vs 2Q19 4Q19 vs 4Q18 Fixed Line Subscribers 2,765,209 2,727,035 2,711,411 2,707,077 2,710,972 54,237 2% (3,895) - 4,334 - 15,624 1% 38
Slide 30: ARPU
ARPU Mobile ARPU, Net(1) : 2019 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Smart Postpaid 796 813 809 806 809 813 810 843 Smart Prepaid 118 118 114 114 112 116 120 123 TNT 67 67 67 74 73 73 71 69 Sun Postpaid 423 418 401 403 382 403 406 414 Sun Prepaid 77 73 76 75 80 82 82 82 (1) Includes Mobile Broadband subscri
Slide 31: FY2019: Consolidated Financial Highlights
FY2019: Consolidated Financial Highlights FY2019 Y-o-Y FY2018 Wireless Fixed Line Others Consolidated % Change (Php in millions) Service Revenues (1) 90,661 87,819 - 161,355 152,369 6% (2) Cash Operating Expenses 33,660 48,377 100 71,054 78,517 (10%) Subsidies and Cost of Services 3,079 2,525 - 5,59
Slide 32: Consolidated Service Revenues
Consolidated Service Revenues 2019 2018 % Change FY19 vs 4Q19 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY18 4Q18 Fixed Line 18,199 17,955 18,356 18,602 73,112 17,275 17,785 17,807 18,153 71,020 3% 2% LEC 3,698 3,648 3,583 3,607 14,536 3,803 3,761 3,898 3,733 15,195 (4%) (3%) (1) Fixed Line
Slide 33: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2019 2018 % Change FY19 vs 4Q19 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY18 4Q18 Data and Broadband 24,667 25,393 26,728 28,550 105,338 20,407 21,602 21,869 23,824 87,702 20% 20% Home Broadband 6,855 6,994 7,089 7,454 28,392 6,474 6,779 6,608 6,77
Slide 34: Wireless Service Revenues
Wireless Service Revenues 2019 2018 % Change FY19 vs 4Q19 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY18 4Q18 Data/Broadband 11,670 12,603 13,679 14,981 52,933 8,497 9,220 9,685 11,103 38,505 37% 35% Mobile Data 11,643 12,580 13,660 14,965 52,848 8,449 9,181 9,648 11,072 38,350 38% 35% Mobi
Slide 35: Fixed Line Service Revenues
Fixed Line Service Revenues 2019 2018 % Change FY19 vs 4Q19 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY18 4Q18 Data/Broadband 14,996 14,891 15,115 15,762 60,764 13,462 13,483 14,139 14,648 55,732 9% 8% Home Broadband 6,875 7,007 7,101 7,466 28,449 6,491 6,807 6,636 6,799 26,733 6% 10% Corp
Slide 36: Expenses
Expenses FY2019 Y-o-Y FY2018 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Compensation and Employee Benefits 7,929 16,974 - 24,883 23,543 6% Repairs and Maintenance 9,613 6,638 - 15,337 14,331 7% Selling and Promotions 3,839 1,559 - 5,395 6,340 (15%) Rent 727
Slide 37: Other Income (expenses)
Other Income (expenses) FY2019 Y-o-Y FY2018 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Multisys - - 150 150 - 100% Vega - - 35 35 (60) 158% Voyager - - (2,268) (2,268) (260) 772% Others - 568 (20) 548 233
Slide 38: Earnings Per Share (EPS)
Earnings Per Share (EPS) FY2019 FY2018 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 22,521 22,521 18,916 18,916 Dividends on Preferred Shares (59) (59) (59) (59) Net Income for the Period Attributable to Common
Slide 39: Balance Sheet
Balance Sheet Consolidated (Php in millions) December 31, 2019 December 31, 2018 Total Assets 525,036 482,750 Nominal Value of Total Long-Term Debt 193,047 176,694 in US$ $3,800 $3,362 Less: Unamortized Debt Discount 491 418 Total Long-Term Debt 192,556 176,276 Cash and Short-Term Investments 24,683
Slide 40: Debt Profile
Debt Profile (US$ in millions) 2016 2017 2018 2019 Debt Balance 3,730 3,466 3,362 3,800 Cash and Short-Term Investments 833 668 1,005 486 Net Debt 2,897 2,798 2,357 3,314 Interest-Bearing liabilities December 31, December 31, 2019 2018 Unamortized Debt Change Carrying Discount/Debt Face Value Face V
Slide 41: 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* 471.7 Debt (net of LT hedges & ST Forwards/opti
Slide 42: 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 43: PLDT Smart
A PLDT ASmart