Converge Information & Communications Technology Solutions Inc · PSE:CNVRG
Converge Information & Communications Technology Solutions — Q1 2021 Earnings Presentation
31 slides from Converge Information & Communications Technology Solutions's earnings presentation, Feb 1, 2021
Slide 1: 1Q2021 Investors Briefing
[converse es 2021 INVESTORS BRIEFING #ExperienceBetter
Slide 2: Meeting Reminders
Meeting Reminders • Please mute your microphones during the presentation. • Questions will be entertained during the Q&A portion. You may send your questions through the Zoom Chat feature. Please introduce yourself along with your affiliated company/research house. • The session will be recorded. 2
Slide 3: Today's Speakers
Today’s Speakers Mr. Dennis Anthony H. Uy Ms. Grace Y. Uy CEO and Co-Founder President and Co-Founder Mr. Matthias Vukovich Mr. Jesus C. Romero Mr. Benjamin B. Azada Chief Financial Office Advisor Chief Operations Officer Chief Strategy Officer
Slide 4: Mr. Dennis Anthony H. Uy
Mr. Dennis Anthony H. Uy * CEO and Co-Founder
Slide 5: Ms. Grace Y. Uy
Ms. Grace Y. Uy * President and Co-Founder
Slide 6: 1Q2021 Results Key Takeaways
1Q2021 Results Key Takeaways ✓ Maintained industry-leading trifecta in 1Q2021 (vs. 1Q2020) with 83.6% revenue growth, 55.0% EBITDA margin and 23.1% ROIC ✓ Continued strong EBITDA growth in 1Q2021 with 101.6% YoY growth (vs. 1Q2020) ✓ 500k new ports and 182k gross residential subscribers added in 1Q2
Slide 7: Mr. Matthias Vukovich
“wi Mr. Matthias Vukovich = Z “ Chief Financial Office Advisor
Slide 8: Added ~500k FTTH Ports during 1Q2021
Added ~500k FTTH Ports during 1Q2021 Extensive and Fast-growing Network Homes Passed (MM) (1)(2)(3) 13% 25% 14% 28% 55% 190 350 128 ~2x 331 15.1 ✓ More than 7.1MM homes passed as of March 2021, almost double from March 2020 ✓ 7.1 6.2 ~28% household coverage nationwide as of December 2020 0.8 3.2 0.8
Slide 9: Quarterly Gross Adds at ~182k with Improved ARPU during 1Q2021
Quarterly Gross Adds at ~182k with Improved ARPU during 1Q2021 Number of Subscribers (‘000) 292 617 ✓ 1.18MM subscribers as of March 2021, net subscriber adds of ~143k in 1Q2021 ~2x 2x Subscribers Since 2019 530 1,038 216 616 1,182 217 ✓ Total gross subscriber adds of ~182k in 1Q2021 representing 97
Slide 10: 1Q2021 Financial Update: Continuing to Achieve Trifecta
1Q2021 Financial Update: Continuing to Achieve Trifecta of ~83.6% Growth, 55.0% Margin, ~23.1% ROIC Revenue EBITDA (2) PHP MM (1) ($324) PHP MM (1) ($170) 15,652 8,218 3,024 ($189) ($97) 9,139 4,665 ($105) 2,786 ($115) ($53) ($63) 5,055 12,628 5,547 3,052 ($61) ($62) 750 ($30) 2,549 ($31) ($39) 1,90
Slide 11: P&L Highlights
P&L Highlights Consolidated P&L PHP Key Highlights For the three months ended March 31 2021 2020 ❖ Bandwidth and leased line costs (in millions) Revenue 5,547 3,021 accounting for 5.0% of 1Q2021 Cost of Services (2,330) (1,440) revenues vs. 10.0% of 1Q2020 Depreciation and amortization 779 444 Netwo
Slide 12: Well Funded CAPEX Plan
Well Funded CAPEX Plan US$ (PHP)(1) Well-Funded between 2022-25 Fully Funded Capex Plan in 2021 PHP230MM US$599MM Net Debt (PHP29Bn) as of Mar 2021 1Q2021 CAPEX: Sufficiently funded with current funding PHP5.3Bn (vs. 1Q2020 – PHP2.4Bn) Sufficiently funded US$414MM with US$207MM (PHP20Bn) current (PH
Slide 13: Mr. Jesus C. Romero
Mr. Jesus C. Romero \” Chief Operations Officer
Slide 14: Completed Connecting Visayas and Mindanao to Backbone
Completed Connecting Visayas and Mindanao to Backbone VisMin Backbone Expansion Substantially Completed • Added c. 9,600 kilometers of fiber in 1Q2021, resulting to Converge’s nationwide backbone network of 64,600 kilometers(1) (69,000 kilometers by April 2021) • Domestic fiber backbone connected to
Slide 15: Completed Connecting Visayas and Mindanao to Backbone
Completed Connecting Visayas and Mindanao to Backbone Masbate Cebu Cagayan De Oro 15
Slide 16: Bandwidth Investment: Bifrost
International Trans-Pacific Bandwidth Investment: “Bifrost” 16
Slide 17: Consistent Fiber Broadband Experience for Everyone
Consistent Fiber Broadband Experience for Everyone 100% PURE FIBER NETWORK #1 CONVERGE JANUARY 2021 FEBRUARY 2021 MARCH 2021 35 FOR P1,500, NO DATA-CAP C. 2 MILLION NEW PORTS Built over last 12 months(1) MBPS Notes: (1) Total number of c. 1,916,000 million ports built nationwide between May 2020 and
Slide 18: Launch of New Enterprise Products
Launch of New Enterprise Products Strong Reception of Tailored SME Plan “flexiBIZ” in 1Q2021 ✓ ~1,400 SME gross adds in 1Q2021 ✓ Daytime or Peak plans (50-300 Mbps) ✓ Entry level plans at P2,000 and P3,000 Market Education Road Side Advertising Webinars 18
Slide 19: Mr. Benjamin B. Azada
Mr. Benjamin B. Azada Chief Strategy Officer
Slide 20: Enhancing Omni-Channel Initiatives (Online + Offline)
Enhancing Omni-Channel Initiatives (Online + Offline) …While Ensuring Real-Time & Real-Person Continuously Improving Mobile Application Features Customer Care # of Contact Agents and ACR Self Help 900 100% 750 90% 600 80% 450 70% 300 150 60% - 50% 1Q20 2Q20 3Q20 4Q20 1Q21 FTE ACR (%) Registered Subs
Slide 21: Commitment to Improving ESG Initiatives
Commitment to Improving ESG Initiatives Contribution Release of Maiden Sustainability Report to UN SDGs 21
Slide 22: Online Learning Partnership with Department of Education
Online Learning Partnership with Department of Education • Provide internet access exclusively for online learning • DepEd TV channel to be aired through Pacific KableNet 22
Slide 23: Q&A
Q&A CONVERGE
Slide 24: Thank you!
Thank you! www.convergeict.com Dennis Anthony Uy Converge ICT Solutions Inc. @TheFiberMaster @ExperienceCNVRG
Slide 25: Appendix
Appendix CONVERGE
Slide 26: 1Q2021 Consolidated Income Statement
1Q2021 Consolidated Income Statement For the three months ended March 31 YoY change 2021 2020 YoY change % (in P millions) Revenues…………………………………………………….……………….. 5,547 3,021 2,526 84% Residential………………………………………………………………………………… 4,797 2,287 2,510 110% Enterprise…………………………………………………………………………………. 750 734
Slide 27: 1Q2021 Consolidated Balance Sheet
1Q2021 Consolidated Balance Sheet As of the period Change % Mar 31 2021 Dec 31 2020 Change (in P millions) Current assets………………………………………………………………… 19,566 21,271 (1,705) -8% Cash and cash equivalent……………………………………………………… 9,503 12,957 (3,454) -27% Trade and other receivables, net……………………………………………… 2,59
Slide 28: 1Q2021 Consolidated Cash Flow
1Q2021 Consolidated Cash Flow For the three months ended March 31 YoY change YoY change % 2021 2020 (in P millions) Cash flow from operating activities Profit before income tax...………………………………………………………… 1,963 820 1,143 139% Adjustments for operating income……..………………………………………… 1,507 877 630 72% Adjust
Slide 29: Quarterly Operational Performance Summary (1/2)
Quarterly Operational Performance Summary (1/2) 2020 2021 YoY Change % 1Q 2Q 3Q 4Q 1Q 1Q2020 vs 1Q2021 Residential Revenues 2,287 2,691 3,435 4,215 4,797 110% FTTH 1,614 1,992 2,679 3,509 4,086 153% HFC 673 698 756 707 711 6% Customers 615,466 731,563 900,531 1,038,321 1,181,723 92% FTTH 405,784 512
Slide 30: Quarterly Operational Performance Summary (2/2)
Quarterly Operational Performance Summary (2/2) 2020 2021 YoY Change % 1Q 2Q 3Q 4Q 1Q 1Q2020 vs 1Q2021 Enterprise Revenues 734 778 752 760 750 2% Customers 10,378 10,498 10,953 11,090 12,400 19% ARPU(9) 23,910 26,596 21,675 23,002 21,269 -11% Customer Churn(10) (%) 0.30 0.33 0.49 1.61 0.72 140% Note
Slide 31: 1Q2021 Investors Briefing
[converse es 2021 INVESTORS BRIEFING #ExperienceBetter
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