globe telecom inc. · $790mn network and it transformation program – our largest infrastructure...
TRANSCRIPT
GLOBE TELECOM INC. Annual Stockholders’ Meeting The Ballroom 2, Fairmont Makati 16 April 2013
MESSAGE TO SHAREHOLDERS Jaime Augusto Zobel de Ayala Chairman
Sustained growth momentum buoyed by robust growth of the Philippine economy
Posted another banner year in 2012
Recorded all-time high overall service
revenues
Noteworthy gains in key market share
metrics
+2.0% Market
Share Gain in Mobile Revenues
+1.6% Market Share
Gain in Broadband Revenues
2011 2012
Mobile Telephony and Broadband sectors expanding despite intensified competitive environment
Modest Mobile Telephony Industry Revenue growth
from 2011
2011 2012
+14%
Broadband Industry Subs (Mn)
Intensified competition
Peaking mobile penetration rates
Continued preference for value-driven offers
Growth buoyed by affordable access devices (e.g., laptops, PCs, tablets) Growth also driven by more extensive internet service coverage
4.5
5.2
3%
Record operating results with expansion of mobile and broadband subscriber base
Operating Revenues
77.8
82.7
2011 2012
6%
New record highs for both annual and quarterly (4Q12) service revenues Revenue growth supported by growth of subscribers base and improvements in all key product segments
Mobile Revenues
Record-high mobile revenues Strong performance of the postpaid segment We continued to introduce first-in-the market products and services
Broadband Revenues
7.5
8.7
2011 2012
16%
Total subscriber base expanded to 1.7 million subscribers 2012 was highlighted by the launch of broadband LTE service
In Php Bn In Php Bn
63.5
67.2
2011 2012
6% In Php Bn
10,030
10,275
2011 2012
Core Net Income improved 2% year-on year; Attractive dividend yield for shareholders.
Core Net Income is net income after tax (NIAT) but excluding foreign exchange and mark-to-market gains (losses), and non-recurring items.
• Using annualized DPS of Php67 and start of year closing price of P1,130.
• Phil market average represents dividend yield of 41 listed companies, as cited in Jan 29,2013 report of Maybank ATR Kim Eng
GLO* Phil Mkt Ave 2yr PDST-F 5yr PDST-F
GLO Dividend Yield
5.8%
2.2% 2.8%
3.8%
2%
Core Net Income
in ₱ Mn
Excluding transformation-related expenses, Core NIAT up 5%
Globe announced in Nov 2011 its $790Mn network and IT transformation program – our largest infrastructure commitment to date.
Significantly improve network quality
Anticipate surge in voice and data traffic
Decrease total cost of ownership
Future-proof our network
Increase fiber optic footprint
Enhance our ability to roll-out products for the market faster
Respond more quickly to customer needs and preferences
In 2012, network modernization and IT transformation program remained on schedule.
Change-out of close to 90% of various cell sites all over the country
We are laying out an additional 12,000km of fiber optic cables nationwide
Migration into new business support systems (BSS) started in Q1 2013 (postpaid). Prepaid and fixed line broadband to follow later during the year
In Sept 2012, Globe launched its LTE broadband service in the key business districts and cities, providing subscribers with faster speeds and better overall internet experience.
We carry the promise of a superior customer service through a modernized network…
Mobile Adjacencies/Opportunities
Other sectors such as Education, Healthcare,
Utilities, Media, etc.
M-ADS
GCash (mobile money) BPI Globe BanKO (mobile banking)
Globe M-Ads (mobile advertising)
We continue our commitment to create shared value for all stakeholders…
These investments are building blocks to ensure continued growth and relevance in a world built around data (vis-à-vis traditional mobile devices)
2,000 partner outlets
nationwide
Over 261,000 retail
customers
Wholesale loan
portfolio of
Php 2.4 Bn
We continue our commitment to create shared value for all stakeholders…
Kickstart is a business incubator company that helps, supports and develops the Philippines’ technopreneur community
Current portfolio of 10 companies cover the digital media and technology, and web/mobile platform space
We provide the needed tools for technopreneurs to reach greater heights…
Startup Weekends Investment Portfolio
Good governance
Social entrepreneurship
Environment Conservation
Education
Volunteerism
We embark on programs geared towards sustainability and corporate social responsibility…
To sustain the company’s competitiveness today and in the future.
Kayo ang tunay na lakas ng Globe.
MESSAGE TO SHAREHOLDERS Ernest Cu President and CEO
MESSAGE TO SHAREHOLDERS Ernest Cu President and CEO
• New record highs for both annual and quarterly service revenues (Php21.4 Bn in 4Q12, 4% QoQ)
2012: Record service revenues despite competitive environment and ongoing transformation initiatives
Service Revenues
Php 82.7 Bn 6%
Core Net Income
Php 10.3 Bn 2%
* Based on annualized DPS
Dividends Php 67/share*
3%
• Excluding transformation-related expenses, Core NIAT 5% YoY
• Higher dividends per share reflect positive business momentum
Brand New Network
Bring dropped calls to rarity
Make text messaging instant
Access the internet at delightful speeds
Laying out additional 12,000 km. of fiber-optic cable across the country
Phase 1 involving change-out of cell sites nationwide is 90% complete
Network modernization and IT transformation integral to making differentiated customer experience a key competitive advantage
Brand New Network
2012 YoY Change
Subscribers 1.7 Mn 19%
Revenues Php22.8 Bn 24%
Mobile: Postpaid segment drives overall growth of mobile business with prepaid segment holding its ground despite intense competition
Globe Prepaid
31.4 Mn Prepaid Subscribers 10% YoY, 3% QoQ
44.3 Bn Full Year Prepaid
Revenues 2%
Mobile: Postpaid segment drives overall growth of mobile business with prepaid segment holding its ground despite intense competition
11.2 Bn 4th Quarter
Prepaid Revenues 3%
GCASH American Express Virtual Pay • International credit facility and free US
shipping address
Mobile: New services such as GCash Amex Virtual Card provide greater value add and act as a subscriber acquisition/retention tool
2011 and 2012 Broadband Service Provider of the Year
289 341
1,1221,331
FY 2011 FY 2012
Wireless
Wired
1,411
1,672
Subscribers (in ‘000)
+18%
FY 2011 FY 2012
+16%
Revenue Growth – YoY (in Php Mn)
7,496
8,721
Broadband: Robust subscriber base and service revenue growth of 18% and 16%, respectively
Best Telco in the Philippines, 8th Annual CNET Asia Readers’ Choice Awards
Philippine Telecom Service Provider of the Year, 2012 Frost and Sullivan Asia Pacific Best Practices Award
3% increase in Employee Satisfaction Index
2% increase in Employee Engagement
Globe’s performance and innovation cited internationally; also drives higher employee engagement/satisfaction
Giving back to the society that sustains us...
Globe’s corporate responsibility is a core component of its business model
I-Lead
I-Conserve
I-Access
I-Give
I-Prosper
Globe Bridgecom: Champion of Globe’s key advocacies
We put our Customers first. Our people make the
difference. We act with integrity. We care like an owner. We keep things simple.
To us, it’s be fast or be last.
This is the Globe Way
GLOBE TELECOM INC. Annual Stockholders’ Meeting The Ballroom 2, Fairmont Makati 16 April 2013