PLDT, Inc. · PSE:TEL
PLDT — Q1 2021 Earnings Presentation
52 slides from PLDT's earnings presentation, May 6, 2021
Slide 1: First Quarter 2021 Financial and Operating Results
First Quarter 2021 Financial and Operating Results 6th May 2021
Slide 2: We owe it to all our customers to do our best
We owe it to all our customers to do our best despite the challenges we continue to face 2
Slide 3: Q1 2021 Highlights
Q1 2021 HIGHLIGHTS NET SERVICE REVENUE YOY GROWTH P3.3B 8% REVENUE GROWTH 76% ATTRIBUTED TO DATA +4.5B versus SPLY 3
Slide 4: Q1 2021 Highlights by segment
Q1 2021 HIGHLIGHTS INDIVIDUAL HOME 22.1B 10.9B vs YAGO vs YAGO +1.4B, +7% +1.7B, +19% ENTERPRISE INTERNATIONAL 10.3B 1.5B vs YAGO vs YAGO +0.4B, +4% -0.1B, -7% 4
Slide 5: Double up your passions with GIGA
• Double up your passions with GIGA • Hyperscalers to drive next wave of • Next level data experience with 5G growth • Seamless availment through multiple channels • Continuously expand fiber footprint • Expanded entertainment 5
Slide 6: We champion connectivity as a fundamental human right
We champion connectivity as a fundamental human right #WorldClassinternet
Slide 7: Smart leading in 5G Download Speeds
Smart leading in 5G Download Speeds, more than double compared to Globe 5G sites as of April 25, 2021 7
Slide 8: PLDT and Smart maintain internet speed leadership
PLDT and Smart maintain internet speed leadership Our network superiority remains strong, with citations from independent speed analytics firms PHILIPPINES’ FASTEST BROADBAND Fastest average fixed download and upload speeds in 16 out of 17 key regions in the Philippines OPENSIGNAL AWARDS Winner of 7
Slide 9: Fixed Ookla Global Speed Index: Asia
FIXED OOKLA GLOBAL SPEED INDEX: ASIA PHILIPPINES ranks 81st (+11) out of 177 in global line up while it ranks 22nd (+2) in Asia, with 46.25 Mbps average speed PLDT‘s speed of 55.86 Mbps qualifies PLDT for rank 18 in ASIA, 66th globally 55.86 PLDT’s vs PHI Ranking Ranking Global 66 of 177 15 Asia 18
Slide 10: Mobile Ookla Global Speed Index: Asia
MARCH MOBILE OOKLA GLOBAL SPEED INDEX: ASIA PHILIPPINES ranks 86th (-3) out of 140 in global line up and ranks 27th in Asia with speeds of 25.43 Mbps SMART’s speed improved to 31.42 Mbps, qualifying it for 23rd place in Asia SMART and 71st globally 31.42 FEB: 30.72 +0.7 Mbps Smart’s vs PHI Ranking R
Slide 11: We continue to lead the industry in improving internet speeds
We continue to lead the industry in improving internet speeds 55.86 57.81 40.20 49.31 31.42 46.25 29.12 25.43 PH Fixed DL Speed PH Mobile Internet DL Speed Jan-21 Feb-21 Mar-21 Apr-21 Jan-21 Feb-21 Mar-21 Apr-21 MAR 2021 APR 2021 MAR 2021 APR 2021 PH Fixed DL Speed 46.25 49.31 PH Mobile DL Speed 25.
Slide 12: Incorporating sustainable development into our strategies
Incorporating sustainable development into our strategies and adopting relevant policies accordingly 12
Slide 13: 1Q2021 Financial Highlights
1Q2021 Financial Highlights 13
Slide 14: PLDT Group: Service Revenues (by Customer Segment)
PLDT Group: Service Revenues (by Customer Segment) (Php in bn) 1Q2021 1Q2020 vs 1Q 2020 Individual 22.1bn 20.7bn 7% +1.4bn Home 10.9bn 9.2bn 19% +1.7bn Enterprise 10.3bn 10.0bn 4% +0.4bn Consumer and Enterprise 43.3bn 39.9bn 9% +3.5bn 7% International and Carrier 1.5bn 1.6bn -0.1bn Total Service Rev
Slide 15: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights (Php in bn) 1Q2021 1Q2020 vs 1Q2020 Service Revenues 8% 44.8bn 41.5bn (net of interconnection costs) +3.3bn Cash Opex, Subsidies, 9% Provisions 21.6bn 19.9bn (ex-MRP) +1.7bn * excl Provisions: P20.0bn, +P1.2bn or +6% Provisions 1.6bn 1.1bn 7% EBITDA 23.3bn 21.6bn (ex
Slide 16: Consolidated Service Revenues: 1Q21 ahead of 2020 quarterly average
Consolidated Service Revenues: 1Q21 revenues ahead of 2020 quarterly average (Php in bn) 8% +3.3bn 44.9 44.8 Y-o-Y % 41.5 43.7 39.6 41.4 41.3 1.5 1.5 +2% 1.5 -7% 38.0 38.7 1.6 2.3 1.5 2.2 2.3 2.3 10.5 10.2 +1% 10.3 +4% 10.0 10.0 10.0 9.8 9.5 9.8 9.8 10.2 +7% 10.9 +19% 9.6 9.2 9.3 9.1 9.2 9.2 20.7 22
Slide 17: Unabated sequential rise in data/broadband revenues
Consolidated Service Revenues: Unabated sequential rise in data/broadband revenues (Php in bn) Service Revenues Data and Broadband 1Q2021: 149.4bn 8% 1Q2021: 149.4bn 15% P44.8bn +3.3bn P33.9bn +4.5bn Data/broadband SMS/Voice ILD 43.7 44.9 44.8 41.4 41.5 41.3 38.7 39.6 0.9 0.9 38.0 0.8 1.0 1.0 1.1 1.
Slide 18: 76% from data/broadband, highest growth in home broadband
1Q2021 Service Revenues: 76% from data/broadband, highest growth in home broadband (Php in bn) (2021 vs 2020) 1Q2021: P44.8bn 8% +3.3bn ➢ Smartphones on the network grew to 85% ➢ 39.7mn mobile data users ➢ Mobile data traffic: 777PB, +32% y-o-y SMS ILD Data/Broadband 1.5 0.9 Mobile Internet** 13% 8.
Slide 19: PLDT Group Subscriber Base
PLDT Group Subscriber Base (in mn) 1Q2021 End 2020 1% Total Subscribers 78.2mn 79.1mn -0.9mn 2% Mobile 71.8mn 72.9mn -1.1mn Cellular 71.0mn 72.0mn -1% Prepaid 69.0mn 70.0mn -1% Postpaid 1.9mn 2.0mn -1% Mobile Broadband (dongles) 0.8mn 0.9mn -12% 6% (in '000) 1Q2021 Broadband 3.3mn 3.1mn Fixed Broadb
Slide 20: Consolidated EBITDA (ex-MRP) and Telco Core Income
Consolidated EBITDA (ex-MRP) and Telco Core Income: 1Q2021 vs 1Q2020 (Php in bn) Higher Higher Svc Rev Cash Higher Higher (net of IC) Opex/CoS Provisions Subsidies +3.3 -1.1 -0.5 -0.1 21.6 23.3 EBITDA 7% (ex-MRP) +1.6bn 1Q2020 1Q2021 EBITDA margins 52% 51% Higher Higher Higher Higher Equity in Lower
Slide 21: Consolidated EBITDA (ex-MRP): New all-time high
Consolidated EBITDA (ex-MRP): New all-time high (Php in bn) vs 1Q20 All time high 149.4bn 1Q21: P23.3bn 7% +1.6bn Margin: 51% 2% +0.4bn 22.8 23.3 21.6 21.6 22.7 1Q20 2Q20 3Q20 4Q20 1Q21 Qtr ave: P22.2bn Margin: FY20: 52% 52% 51% 50% 51% 51% 21
Slide 22: Telco Core Income: Tracking 2021 guidance
Telco Core Income: Tracking 2021 guidance of P29-30bn (Php in bn) vs 1Q20 149.4bn 1Q21: P7.5bn 9% +0.6bn 5% +0.4bn 7.5 7.1 7.1 7.0 6.9 1Q20 2Q20 3Q20 4Q20 1Q21 Qtr ave: P7.0bn 22
Slide 23: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income (Php in bn) vs 1Q2020 1Q2021 1Q2020 9% Telco Core 7.5bn 6.9bn +0.6bn Share in Voyager Loss (0.4bn) (0.5bn) +53mn Voyager Gain on Dilution, net of tax 0.3bn --- +0.3bn 15% Telco Core + Voyager 7.3bn 6.4bn +1.0bn Sun Trademark Amortization (1.1bn) --- Forex,
Slide 24: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (US$ in billions) (US$ in millions, 31 March 2021) Net Debt Net Debt-to-EBITDA* Gross Debt US$3,895mn 2.09x US$4,590mn 2,544 3.8 3.3 4.7 3.8 4.6 3.9 0.5 0.9 0.7 565 459 84 315 325 298 2019 2020 1Q2021 Debt Balance ** Cash & Short-term Inv
Slide 25: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) 2011 to 2015 2016 to 2020 Last 10 Years Capex 2021 Total Capex P174.4bn P286.4bn P460.8bn Guidance P88bn – P92bn Investments ➢ Capex is “demand driven” resulting in a faster monetization of the Business Capex investment Network/IT 6% ▪ Network/IT capex to p
Slide 26: 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: 1.7mn (1.1mn fiber + 0.6mn VVDSL (V-Fiber)) ➢ 1Q2021 roll out 39%
Slide 27: 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 28: Other Details
@ PLOT Other Details
Slide 29: Individual: Mobile data remains driver of growth
Individual: Mobile data remains driver of growth (Php in bn) 7% +1.4 -4% 23.1 -1.0 22.1 22.0 20.7 20.4 1Q20 2Q20 3Q20 4Q20 1Q21 Qtr ave: P21.5bn Mobile Data Traffic ➢ Mobile data at 78% of revenues in 1Q21 from 76% in FY2020 and 73% in 1Q2020 ▪ Smartphones on the network grew to 85% (77% LTE; 7% 3G;
Slide 30: Home: Acceleration in quarterly revenue increases
Home: Acceleration in quarterly revenue increases from 1Q20 (Php in bn) 19% +1.7 +7% +0.8 10.9 9.8 10.2 9.2 9.3 1Q20 2Q20 3Q20 4Q20 1Q21 1Q21 Ave. Monthly Qtr ave: P9.6bn Total Installs/Upgrades ➢ Ramp up in install capability driving acceleration in revenue increases 115K ▪ P0.8bn q-o-q rise in 1Q2
Slide 31: Enterprise: Growth despite challenging business environment
Enterprise: Growth despite challenging business environment (Php in bn) 4% +0.4 +1% +0.2 10.0 10.0 10.5 10.2 10.3 1Q20 2Q20 3Q20 4Q20 1Q21 Qtr ave: P10.2bn ➢ Data/broadband revenues account for 72% of total Enterprise service revenues from 69% in FY2020 ➢ Healthy pipeline of new/expanded engagements
Slide 32: International/Carrier: Relatively steady notwithstanding the pandemic
International/Carrier: Relatively steady notwithstanding the pandemic (Php in bn) 7% -0.1 1.63 +2% 1.53 1.51 1.47 1.48 1Q20 2Q20 3Q20 4Q20 1Q21 Zero mobile interconnect fees for SMS and Voice (1 Jan 2020) Qtr ave: P1.5bn ➢ International/carrier business focusing on new data revenue sources: traffic
Slide 33: Building the End-to-End Ecosystem for a Cashless Philippines
Building the End-to-End Ecosystem for a Cashless Philippines 35M #1 Registered users Digital payments processor across consumer platforms for key industries, e-Commerce, government 250K 39K Widest digital payments Largest financial services touchpoints agent network • Fastest way to own a financial
Slide 34: The Power of PayMaya's Inclusive and End-to-End Ecosystem
Paying bills made easy with the Best deals from over Expanding financial services The Power of PayMaya’s widest list of over 550 active billers 200 merchants in PayMaya to over 2.2 M Filipinos Inclusive and End-to- Mall overseas End Ecosystem: Bringing Together Consumers and Merchants Through Digita
Slide 35: PLDT's Purpose: Connecting and Empowering Filipinos Everywhere
PLDT’s Purpose: Connecting and Empowering Filipinos Everywhere Selected ESG Initiatives Environmental Social Governance GHG Connectivity Directors ➢ Carbon footprint: reduction ➢ 96% population coverage ➢ Independence: 3 (out of 13) INED ✓ Energy efficiency ➢ 478K kms of fiber nationwide ➢ Gender: 3
Slide 36: Appendix
Appendix 36
Slide 37: Subscriber Base: Mobile
Subscriber Base: Mobile Mobile Subscribers by Category: Net Adds (Reductions) Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 1Q21 vs YE20 (1) Mobile Subscriber Base Prepaid 69,706,746 70,779,021 70,027,763 67,738,421 70,590,758 (1,072,275) (2%) Smart Prepaid 27,227,210 29,090,167 23,983,929 23,413,304 24,830,03
Slide 38: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Net Adds Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 1Q21 vs YE20 Fixed Line Subscribers 3,108,796 3,042,815 2,999,174 2,917,641 2,801,187 65,981 2% Broadband Subscribers Net Adds Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 1Q21 vs YE20 BROADBAND Fixed
Slide 39: ARPU
ARPU Mobile ARPU, Net(1) : 2021 2020 1Q 1Q 2Q 3Q 4Q Smart Postpaid 819 804 816 804 828 Smart Prepaid 104 112 110 116 113 TNT 83 71 76 84 86 Sun Postpaid 407 377 386 362 376 Sun Prepaid - 66 67 79 - (1) Includes Mobile Broadband subscribers Broadband ARPU, Net : 2021 2020 1Q 1Q 2Q 3Q 4Q Fixed Line Br
Slide 40: Consolidated Financial Highlights
Consolidated Financial Highlights 1Q2021 Y-o-Y 1Q2020 Wireless Fixed Line Others Consolidated % Change (Php in millions) (1) Service Revenues 25,220 26,471 - 45,677 41,797 9% (2) Cash Operating Expenses 9,129 14,497 2 19,672 17,931 10% Subsidies and Cost of Services 624 739 - 1,341 1,180 14% Provisi
Slide 41: Consolidated Service Revenues
Consolidated Service Revenues 2021 2020 % Change 1Q21 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q20 Fixed Line 20,861 18,543 18,729 20,011 20,603 77,886 13% LEC 3,404 3,513 3,719 3,538 3,405 14,175 (3%) Fixed Line Voice - International 1,065 540 573 919 1,188 3,220 97% Fixed Line Voice - Domestic (NLD
Slide 42: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2021 2020 % Change 1Q21 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q20 Data and Broadband 33,911 29,357 29,667 31,921 33,635 124,580 16% Home Broadband 9,797 7,505 7,835 8,562 9,102 33,004 31% Fixed Line 8,809 7,111 7,153 7,633 8,093 29,990 24% Fixed Wireless 98
Slide 43: Wireless Service Revenues
Wireless Service Revenues 2021 2020 % Change 1Q21 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q20 Data/Broadband 18,141 15,532 15,828 17,086 18,325 66,771 17% Mobile Data 17,568 15,519 15,816 17,078 18,318 66,731 13% Mobile Internet 16,512 14,598 14,757 15,911 17,061 62,327 13% Mobile Broadband 760 698
Slide 44: Fixed Line Service Revenues
Fixed Line Service Revenues 2021 2020 % Change 1Q21 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q20 Data/Broadband 18,292 16,032 16,238 17,149 17,764 67,183 14% Home Broadband 9,238 7,515 7,845 8,574 9,111 33,045 23% Corp. Data and Other Network Services 7,321 6,963 6,914 7,137 7,096 28,110 5% ICT 1,733
Slide 45: Expenses
Expenses 1Q2021 Y-o-Y 1Q2020 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Compensation and Employee Benefits 1,996 4,547 - 6,538 6,242 5% Repairs and Maintenance 2,667 3,409 - 5,865 4,948 19% Professional and Other Contracted Services 1,110 1,614 2 2,025 2,14
Slide 46: Other Income (expenses)
Other Income (expenses) 1Q2021 Y-o-Y 1Q2020 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Multisys - - (10) (10) (10) - Vega - - 3 3 10 (70%) Voyager - - (514) (514) (579) 11% Others - 207 - 207 47 340% Tota
Slide 47: Earnings Per Share (EPS)
Earnings Per Share (EPS) 1Q2021 1Q2020 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 5,803 5,803 5,912 5,912 Dividends on Preferred Shares (15) (15) (15) (15) Net Income for the Period Attributable to Common Equ
Slide 48: Balance Sheet
Balance Sheet Consolidated (Php in millions) March 31, 2021 December 31, 2020 Total Assets 584,510 575,846 Nominal Value of Total Debt 222,846 224,027 in US$ $4,590 $4,665 Less: Unamortized Debt Discount 1,317 1,262 Total Debt 221,529 222,765 Cash and Short-Term Investments(1) 33,741 42,379 (2) Net
Slide 49: Debt Profile
Debt Profile (US$ in millions) 2017 2018 2019 2020 1Q2021 Debt Balance 3,466 3,362 3,800 4,665 4,590 Cash and Short-Term Investments 668 1,005 486 882 695 Net Debt 2,798 2,357 3,314 3,783 3,895 Interest-Bearing liabilities December 31, March 31, 2021 2020 Change Carrying Unamortized Debt Face Value
Slide 50: 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 Conso - net of Elim Conso (in US$ millions) Revaluation (in US$ millions) Debt (net of LT hedges & ST Forwards/options) 466.7 US$ Reven
Slide 51: 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 52: PLDT
& PLDT