PLDT, Inc. · PSE:TEL
PLDT — 9M2022 Earnings Presentation
54 slides from PLDT's earnings presentation, Nov 3, 2022
Slide 1: Nine Months 2022 Financial and Operating Results
Nine Months 2022 Financial and Operating Results 3rd November 2022
Slide 2: Thriving amidst adversity
Thriving amidst adversity 2
Slide 3: Financial Growth
Y T D S E P T E M B E R 2 0 2 2 R E S U LT S Financial Growth YTD Telco Core YTD Net Service Revenues 141.9 25.4B 141.9B 135.9 +10% vs. YAGO’s 23.1B +4.5% vs. YAGO’s 135.9B ALL-TIME HIGH YTD EBITDA YTD EBITDA Margin 75.4B +6% vs. YAGO’s 71.1B 51% vs. YAGO’s 51% 23.1 25.4 Telco Core Service Revenues
Slide 4: Our Customer Promise: Count on Us
CUSTOMER CENTRICITY Our Customer Promise: Count on Us During the CX Congress, we launched our CX Charter and Customer Promise that aims to amplify the culture of Customer Obsession within the company
Slide 5: Cultivating a greener organization
D O I N G B U S I N E S S R E S P O N S I B LY Cultivating a greener organization We built our 1st PlantSmart GrowHub as commitment to helping PH's food security and expanded our solar rooftop facilities S&P ESG RATING UP FROM 47 IN 2020 AND 51 IN 2021 GREENHOUSE GAS REDUCTION THROUGH SOLAR PANEL IN
Slide 6: Future-proofing the Country
NETWORK SUPERIORITY Future-proofing the Country Our vision for a digitally-enabled Philippines drives continuous improvement in our network operations, facilities, and capacity INTEGRATED OPERATIONS CENTER VITRO STA. ROSA ASIA DIRECT CABLE & JUPITER,
Slide 7: Laying the groundwork for sustainable growth
2022 BALANCE OF YEAR - LOOKING OUT INTO 2023 Laying the groundwork for sustainable growth CUSTOMER CENTRICITY OPERATIONAL EXCELLENCE Further empowering customers Arming ourselves with new tools to build via digital platforms throughout their efficiencies in procurement, installs / journey repair, an
Slide 8: 9M2022 Financials
9M2022 Financials 8
Slide 9: PLDT Group Service Revenues: A nine-month all-time high
PLDT Group Service Revenues: A nine-month all-time high (Php in bn) 9M 2022 vs 9M 2022 9M 2021 9M 2021 5% Individual 61.7bn 65.1bn -3.4bn Fiber only 35.7bn 42.7bn 21% Home 35.3bn 52% +7.3bn +12.2bn 35.2bn 32.4bn 9% Enterprise +2.8bn 5% Consumer and Enterprise 139.5bn 132.8bn +6.7bn International and
Slide 10: Data/broadband: 80% of consolidated service revenues
Data/broadband: 80% of consolidated service revenues (Php in bn) ILD (2022 vs 2021) (1%) 4.2 1.9 2% Mobile Data ₱53.7bn 22.6 +1.2bn 9M 2022 Home Broadband ₱37.7bn 18% ₱141.9bn +5.9bn Data/Broadband 9% Corporate Data ₱17.9bn 12% 13% (80%*) +1.9bn +9.3bn 113.2 * 79% for 1H22 ICT ₱ 3.9bn 10% 13% includ
Slide 11: Home: Growth by reaching deeper into the remaining unserved market
Home: Growth by reaching deeper into the remaining unserved market (Php in bn) Home 84% of total Fiber Home revenues vs 67% for 9M2021 ₱42.7B 21% +7.3B ₱35.7B 52% vs 70% for FY2021 +12.2B 1Q22 2Q22 3Q22 1Q22 2Q22 3Q22 ₱13.6B 25% ₱14.5B 23% ₱14.6B 16% ₱11.2B 73% ₱12.1B 52% 36% ₱12.4B +2.7B +2.7B +2.0
Slide 12: Individual: Improving trends despite strong headwinds
Individual: Improving trends despite strong headwinds (Php in bn) Individual ₱61.7B 5% -3.4B 1Q22 2Q22 3Q22 ₱20.4B 8% ₱20.9B 4% ₱20.4B 4% -1.7B -0.9B -0.8B ➢ Sequential quarterly improvements in 2022, 2H22 expected to be similar to 1H22 ▪ 3Q seasonally low, holiday uplift in 4Q ➢ Expected to benefit
Slide 13: Enterprise: Revenues steadily rising with the economy re-opening
Enterprise: Revenues steadily rising with the economy re-opening (Php in bn) Enterprise ₱35.2B 9% +2.8B 1Q22 2Q22 3Q22 ₱11.6B 7% ₱11.6B 11% ₱12.0B 8% +0.8B +1.2B +0.9B ➢ Resurgence of business activity post-covid lockdowns ➢ Focus on digital transformation mitigates impact of economic headwinds ▪ Ac
Slide 14: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights (Php in bn) 9M 2022 9M 2022 9M 2021 vs 9M 2021 Service Revenues 141.9bn 4.5% (net of interconnection costs) 135.9bn +6.1bn Cash Opex, Subsidies, Provisions 66.5bn 3% (ex-MRP) 64.8bn +1.7bn * excl Provisions: ₱62.9bn, +₱2.4bn or +4% Provisions 3.7bn 4.4bn EBITDA 75.4b
Slide 15: Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income
Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income (in ₱bn) Higher Higher Cash Lower Lower Svc Rev Opex/CoS EBITDA Depn EBIT (net of IC) Provisions Subsidies +6.1 -2.5 +0.7 +0.1 75.4 36.0 71.1 14% 39.4 EBITDA 6% +4.8bn (ex-MRP) +4.3bn 9M 2021 9M 2022 9M 2022 EBITDA margin EBIT margin 51% 51% 2
Slide 16: PLDT Group: Headwinds in 2022
PLDT Group: Headwinds in 2022 ➢ Effect on revenues ▪ Inflation – consumers are economizing, prioritizing ▪ Competition on mobile (e. g., free Dito SIMs) limiting ability to raise prices or increase ARPUs ➢ Higher opex (fuel and electricity) and Odette-related expenses Remarks Php in mn 2022 vs 2021
Slide 17: Consolidated EBITDA (ex-MRP): Trending to cross ₱100bn for the full year
Consolidated EBITDA (ex-MRP): Trending to cross ₱100bn for the full year despite headwinds (Php in bn) 9M22 vs 9M21 9M 2022 6% ₱75.4bn +4.3bn Margin: 51% Over ₱100bn for the last twelve months 3Q22 vs 3Q21 25.1 25.5 25.0 25.0 23.3 24.5 22.7 22.8 23.3 2% 21.6 21.6 +0.5bn 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 18: Telco Core Income: Tracking full year guidance
Telco Core Income: Tracking full year guidance (Php in bn) 9M22 vs 9M21 9M 2022 10% ₱25.4bn +2.3bn 3Q22 vs 3Q21 6% 8.8 8.4 7.9 8.2 7.5 7.7 +0.5bn 7.0 7.1 7.1 7.1 6.9 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 9M22 ave. 2020: ₱28.1bn 2021: ₱30.2bn 9M2022: ₱25.4bn vs FY21 ave. Qtr ave: ₱7.
Slide 19: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income (Php in bn) 9M 2022 9M 2021 2022 vs 2021 10% Telco Core Income 25.4bn 23.1bn +2.3bn Share in Voyager/Bank Hold Co Loss (2.4bn) (1.3bn) -1.1bn Voyager Gain on Dilution, net of tax 0.5bn 0.7bn -0.2bn 4% Telco Core Income + Voyager 23.5bn 22.5bn Gain from +1.0
Slide 20: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (US$ in billions) (US$ in millions, 30 September 2022) Net Debt Net Debt-to-EBITDA* Gross Debt US$4,038mn 2.36x US$4,414mn (2Q22: 2.16x) 2,472 4.7 3.8 5.0 4.5 4.4 4.0 0.9 0.5 0.4 117 525 200 390 256 454 2020 2021 9M2022 2022 2023 2024 202
Slide 21: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) Business Capex Network/IT 24% ➢ Capex for 2022 includes: Data Center and +17.1bn ▪ Investment in capacity to support home broadband business and rise in network Subsidiaries 89.0 6% traffic: +4.0bn ✓ Deployment of fiber ports: 1.22mn as of 9M2022 (Target: 1
Slide 22: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights Extensive Fixed Network Rollout TOTAL HOMES PASSED FTTH COVERAGE TOTAL FTTH CAPACITY* TOTAL FIBER FOOTPRINT (Million Homes) (Barangays ‘000) (Million Ports) (Thousand Cable Kilometers Laid) Presence +20% +24% 67% *excluding VVDSL of 1.1mn +28% In
Slide 23: Smart 5G Highlights
Smart 5G Highlights Connected Unique Devices Data Traffic Ookla In ‘000 In TB (Total for the Quarter) +898% Mbps +10,504% +114% +60Mpbs +220% 2,511 +56% 2,114 31,166 166.72 1,583 22,735 1,176 16,098 106.67 759 9,752 5,686 252 376 520 944 2,627 Smart Globe 294 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-2
Slide 24: Maya: Changing the Fintech Game in the Philippines
Maya: Changing the Fintech Game in the Philippines Consumers and Enterprises need and want a money app that is more than just a wallet and Maya is fulfilling this demand. #1 Integrated Payment Top-rated consumer #1 Digital Bank Processor for finance app Enterprises • Fastest growing – 1 M bank custo
Slide 25: Maya: Creating the Future of Banking and Finance for All Filipinos
Maya: Creating the Future of Banking and Finance for All Filipinos Maya is enabling the next generation of integrated fintech in the Philippines. Its unique and comprehensive ecosystem gives Maya a dominant industry position and a long runway for continued growth and innovation.
Slide 26: Other Details
Other Details 26
Slide 27: PLDT Group Service Revenues: Demonstrating resilience
PLDT Group Service Revenues: Demonstrating resilience (Php in bn) 2022 vs 2021 Service Revenues ₱141.9B 4.5% +6.1B 1Q22 2Q22 3Q22 ₱46.4B 3% ₱47.9B 6% ₱47.7B 4% +1.5B +2.9B +1.7B Home Enterprise Individual ₱42.7B 21% +7.3B ₱35.2B 9% ₱61.7B 5% +2.8B -3.4B Fiber: ₱35.7B 52% +12.2B 1Q22 2Q22 3Q22 1Q22 2
Slide 28: Home: Historical revenues
Home: Historical revenues (Php in bn) 9M22 vs 9M21 Fiber-only 9M22 vs 9M21 9M 2022 21% 9M 2022 52% ₱42.7bn ₱35.7bn +7.3bn +12.2bn +1% 3Q22 vs 3Q21 +0.1bn 16% 13.6 14.5 14.6 11.8 12.6 12.5 +2.0bn 9.8 10.2 10.9 1.5 1.4 9.2 9.3 1.4 2.5 1.6 Voice 2.7 3.7 3.2 Non-Fiber 3.9 3.5 3.4 12.1 +3% 12.4 36% Data
Slide 29: Individual: Historical revenues
Individual: Historical revenues (Php in bn) 9M22 vs 9M21 9M 2022 5% ₱61.7bn -3.4bn 22.0 23.1 22.1 21.7 21.3 20.7 20.4 21.1 20.4 20.9 20.4 0.9 1.0 1.0 Fixed Wireless 0.4 0.7 2.6 2.7 2.7 0.9 0.8 0.8 0.6 0.6 2.3 0.5 Postpaid 3.1 3.0 2.6 2.6 2.5 2.4 2.4 Postpaid 3Q22 vs 2Q22 Prepaid 17.2 16.7 18.5 19.3
Slide 30: Enterprise: Historical revenues
Enterprise: Historical revenues (Php in bn) 9M22 vs 9M21 9M 2022 9% 35.2bn +2.8bn +3% 3Q22 vs 3Q21 +0.3bn 12.0 8% 11.6 11.6 11.6 10.0 10.5 10.2 10.8 10.5 11.1 10.0 +0.9bn 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 9M22 ave vs FY21 ave. 2020: ₱40.6bn 2021(1): ₱44.0bn 9M2022: ₱35.2bn +7% Q
Slide 31: ePLDT Data Center Business: Well positioned to attract hyperscalers
ePLDT Data Center Business: Well positioned to attract hyperscalers 10 4 600+ Gbps sites TIA-942* rated 3 certified facilities Premium access to Smart and PLDT strategically spread across PH eyeballs 8,930 500GB Full capacity racks 26.6MW Peak local peering traffic 6,133 ready capacity; 78% utilitiz
Slide 32: PLDT Group: Subscriber Base
PLDT Group: Subscriber Base (in ‘000) Broadband Fixed Line Mobile 6% 5% 4,065 +113K 3,952 3% 3,835 +216K 3,619 67,996 71,222 -3,226K Cellular 66,762 70,225 -5% 3,242 +275K 2,967 +9% Fixed Prepaid 64,809 68,323 -5% Postpaid 1,954 1,901 +3% Fiber 2,909 +489K 2,420 +20% Mobile Broadband 1,234 997 +24%
Slide 33: PLDT Group: Broadband Subscriber Base
PLDT Group: Broadband Subscriber Base (in ‘000) 2021 2022 Subscribers (in '000) 1Q 2Q 3Q 4Q FY2021 1Q 2Q 3Q 9M Fiber Only: Gross Connects and Migrations Fixed Broadband (Monthly ave. per qtr) Gross 241 270 349 323 1,183 281 272 287 840 Churn (129) (117) (119) (126) (490) (114) (205) (245) (565) Net
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Slide 35: PLDT Group: Sustainability Highlights
PLDT Group: Sustainability Highlights Environmental Social Governance ➢ Energized solar rooftop panels in five (5) ➢ Sustainability Learnings for Employees: “SDGs for ➢ Compliance with SEC annual corporate sites in the Visayas Transformational Business” (Sept 2022) SDG: 4 governance training require
Slide 36: Selected PLDT ESG Ratings and Associations
Selected PLDT ESG Ratings and Associations: Progress of our sustainability journey 47 → 51 → 59 PLDT is included in the 2020 2021 2022 FTSE4Good Index (2022) ➢ Selection criteria designed to reflect strong 2022 results released Sept 2022 ESG risk management practices Sustainalytics C Awareness Inclu
Slide 37: Path to Net Zero: Preliminary reduction target of 40% in Scope 1 and 2
Path to Net Zero: Preliminary reduction target of 40% in Scope 1 and 2 GHG emissions by 2030 ➢ Net Zero by 2050 ➢ GHG emissions profile based on 2019 baseline: about 30% are from Scope 1 and 2 ▪ Scope 1 (direct): 3% ▪ Scope 2 (indirect): 28% ▪ Scope 3 (upstream/downstream supply chain): 69% ➢ Decarb
Slide 38: Appendix
Appendix 38 38
Slide 39: Subscriber Base: Mobile
Subscriber Base: Mobile Mobile Subscribers by Category: Net Adds (Reductions) Sep-22 Jun-22 Mar-22 Dec-21 Sep-21 3Q2022 vs YE2021 (1) Mobile Subscriber Base Prepaid 65,972,119 67,365,162 68,224,018 69,205,731 68,524,765 (3,233,612) (5%) Smart Prepaid 25,103,659 25,679,480 26,229,708 26,665,974 25,96
Slide 40: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Net Adds Sep-22 Jun-22 Mar-22 Dec-21 Sep-21 3Q2022 vs YE2021 Fixed Line Subscribers 3,835,305 3,821,296 3,766,956 3,619,372 3,441,847 215,933 6% Broadband Subscribers Net Adds Sep-22 Jun-22 Mar-22 Dec-21 Sep-21 3Q2022 vs YE2021 BROADBA
Slide 41: ARPU
ARPU Mobile ARPU, Net(1) : 2022 2021 1Q 2Q 3Q 1Q 2Q 3Q 4Q Smart Postpaid 786 723 699 819 823 825 798 Smart Prepaid 99 104 106 104 104 104 105 TNT 82 86 85 83 85 84 85 Sun Postpaid 440 580 458 407 387 445 475 (1) Includes Mobile Broadband subscribers Broadband ARPU, Net : 2022 2021 1Q 2Q 3Q 1Q 2Q 3Q
Slide 42: Consolidated Financial Highlights
Consolidated Financial Highlights 9M2022 Y-o-Y 9M2021 Wireless Fixed Line Others Consolidated % Change (Php in millions) (1) Service Revenues 71,904 105,556 - 146,505 138,460 6% (2) Cash Operating Expenses 32,510 56,024 11 69,707 59,111 18% Subsidies and Cost of Services 2,375 2,537 - 3,967 4,153 (4
Slide 43: Consolidated Service Revenues
Consolidated Service Revenues 2022 2021 % Change 9M2022 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M2021 Fixed Line 24,506 25,077 25,629 75,212 20,861 21,318 22,373 64,552 22,687 87,239 17% LEC 3,492 3,491 3,388 10,371 3,404 3,407 3,446 10,257 3,530 13,787 1% Fixed Line Voice - Internationa
Slide 44: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2022 2021 % Change 9M2022 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M2021 Data and Broadband 36,665 38,290 38,392 113,347 33,911 34,464 35,753 104,128 35,838 139,966 9% Home Broadband 12,021 12,763 12,869 37,653 9,873 10,538 11,364 31,775 11,103 42,
Slide 45: Wireless Service Revenues
Wireless Service Revenues 2022 2021 % Change 9M2022 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY 9M2021 (Php in millions) Data/Broadband 18,129 18,782 18,610 55,521 18,141 18,419 18,472 55,032 18,501 73,533 1% Mobile Data 17,556 18,255 18,132 53,943 17,568 17,576 17,696 52,840 17,804 70,644 2% Mobile Internet 1
Slide 46: Fixed Line Service Revenues
Fixed Line Service Revenues 2022 2021 % Change 9M2022 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M2021 Data/Broadband 23,074 24,394 26,585 74,053 18,292 18,692 20,031 57,015 21,561 78,576 30% Home Broadband 11,456 12,245 12,398 36,099 9,314 9,707 10,599 29,620 10,416 40,036 22% Corp. Data a
Slide 47: Expenses
Expenses 9M2022 Y-o-Y 9M2021 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Compensation and Employee Benefits 6,289 17,983 - 24,255 19,369 25% Repairs and Maintenance 10,744 11,453 - 21,181 17,967 18% Professional and Other Contracted Services 4,223 3,718 5 6,
Slide 48: Other Income (expenses)
Other Income (expenses) 9M2022 Y-o-Y 9M2021 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Multisys - - (147) (147) 69 (313%) Vega - - 71 71 950 (93%) Voyager - - (2,005) (2,005) (1,442) 39% Others - 48 (4) 4
Slide 49: Earnings Per Share (EPS)
Earnings Per Share (EPS) 9M2022 9M2021 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 27,382 27,382 18,847 18,847 Dividends on Preferred Shares (44) (44) (44) (44) Net Income for the Period Attributable to Common
Slide 50: Balance Sheet
Balance Sheet Consolidated (Php in millions) September 30, 2022 December 31, 2021 Total Assets 641,634 626,328 Nominal Value of Total Debt 258,855 255,414 in US$ $4,414 $5,011 Less: Unamortized Debt Discount 2,381 2,857 Total Debt 256,474 252,557 Cash and Short-Term Investments(1) 22,061 26,755 (2)
Slide 51: Debt Profile
Debt Profile (US$ in millions) 2019 2020 2021 9M2022 Debt Balance 3,800 4,665 5,011 4,414 Cash and Short-Term Investments 486 882 525 376 Net Debt 3,314 3,783 4,486 4,038 Interest-Bearing liabilities December 31, September 30, 2022 2021 Change Carrying Unamortized Debt Face Value Face Value Value Di
Slide 52: Foreign Exchange Impact: Sensitivity Analysis of 9M2022 Financials
Foreign Exchange Impact: Sensitivity Analysis of 9M2022 Financials Impact on P&L Impact on Balance Sheet Sensitivity for every ₱1 change Sensitivity for every ₱1 change Conso (Php in millions) Conso** (Php in millions) Revenues* ±432 Debt (net of LT hedges & ST Forwards/options) 346 Accounts Payable
Slide 53: 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 54: PLDT
(PLDT