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Globe Telecom, Inc . Annual Stockholders’ Meeting 7 April 2015 Fairmont Makati

Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

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Page 1: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Globe Telecom, Inc.Annual Stockholders’ Meeting

7 April 2015Fairmont Makati

Page 2: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core
Page 3: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Globe registered another banner year, with record highs driven by network modernization and strategic partnerships

Broad-based Revenue Growth

Network Modernization and

Transformation

Partnerships and

Innovation

MOBILE BROADBANDFIXED LINE

DATACONSOLIDATED

7% 22%17% 9%

Page 4: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

3,215.0 3,737.0

6,201.0

2012 2013 2014

Philippine GDP Growth

18.8 20.1 21.4 22.8 24.3

2010 2011 2012 2013 2014

OFW

Remittances

(In USD Bn)

2014 Philippine Economic Performance

Third straight year of GDP growth

in excess of 6%

Foreign Direct Investments

(in USD Mn)

Record level of remittances and

foreign direct investments

4.2%

1.1%

7.6%

3.9%

6.8%7.2%

6.1%

2008 2009 2010 2011 2012 2013 2014

+66%

Page 5: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

2013 2014Industry Mobile Revenues (in Php Bn)

158

171

179 182

2011 2012 2013 2014

255

265

Industry Growth and Competitive Dynamics

Industry Revenues (in Php Bn)

Consumer behavior favoring digital services

Network traffic is shifting from voice and SMS to

data

+3.7%

Globe Smartphone

Penetration for 2014 ~30%

Mobile Penetration for 2014113%

Page 6: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

2014 Dividends

Globe’s continued commitment to shareholder value

Dividend yield Share price

appreciation

TSR

4.3%*

4.8% 9.1%

*Based on share price of P1,730 last 12/29/14

12%

P10B

Represents approximately 86%

of 2013 Core NIAT

In line with dividend payout policy of

75-90% of prior year’s Core NIAT

2014 YTD Total Shareholder Return

12%

Page 7: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

GEN 3 Concept

Stores in

SM NORTH

EDSA and

LIMKETKAI

MALL IN CDO

myLIFESTYLE Plansthat suit every subscriber’s

needs

SPORTSENTERTAINMENT SOCIAL NETWORKING

Globe is committed to continue to innovate products and services through partnerships and increasing customer experience

Page 8: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Globe is committed to continue to innovate products and services through partnerships and increasing customer experience

Page 9: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Text2teach has reached over 1,100 public

elementary schools around the country, and

helping more than 315,000 students and

3,800 teachers

Commitment to Creating Shared Value for All Stakeholders

Page 10: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Continuing to Build and Create Value the Globe Way

Page 11: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core
Page 12: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core
Page 13: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

• Higher by 9% over P90.5B in 2013 • Up 8% YoY from P36.5B in 2013

• Up 170% YoY from P5B in 2013 • Up 12% from P67/share in 2013

Service Revenues EBITDA

Net Income Cash Dividends

P 99.0 B

P 13.4 B

P 39.3 B

P75/share

2014 Financial Highlights: New records and all-time highs across key metrics

Page 14: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Modernizing and integrating business support solutions to further develop the network

Network 100%-equipped with and

technology

Page 15: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

ENTERTAINMENT

Evolving the digital world by product innovations and partnerships

SOCIAL NETWORKING

SPORTS

Page 16: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Unlimited access to Hollywood and

local content anytime, anywhere

Asia’s first OTT video service at

affordable prices

Evolving the digital world by product innovations and partnerships

Page 17: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Revolutionizing retail experience of customers by introducing Gen3 stores that provide superior interactive services

Page 18: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Mobile: Record revenues driven by both traditional and mobile data services

Mobile Data Revenues

+23%

P14.3B

Mobile Voice Revenues

+7%

P34.7B

Mobile SMS Revenues

+1%

P29.1B

Mobile Service Revenues

+7%

P78.1B

Mobile Subscribers

+14%

44.0M

Mobile Gross Additions

+22%

37.8M

Page 19: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Broadband and Fixed Line Data: Robust revenue momentum remains intact

P12.7B

Broadband

Revenues

2.8MP5.5B

+22%0.4M

Broadband Subscribers

2.4MWired Wireless

Fixed Line Data

Revenues

+17%

+37%

Page 20: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Index

Satisfaction

Employee

Insert heading

• The Asset - Platunum Award for Excellence in

Management and Corporate Governance

• Asia’s Best Employer Awards 2014

• International Association of Business

Communicators (IABC) Gold Quill Awards

• Excellence Award for Employee

Engagement: Raising Employee

Satisfaction through Better Engagement

• South East Asia Property Awards 2014

• Best Commercial Development in the

Philippines for The Globe Tower

• 2014 International Business Awards

• Gold Stevie in Company of the Year –

Telecommunications

• 8th Stevie Awards for Sales and Customer

Service

• Gold Award for Best Use of Technology in

Customer Service - Telecommunications

The Globe Way

Highly-engaged and motivated organization behind record results

Workforce6,182Awards

87%+4ppt

Against

National

Norms

+8ppt

Against

Global

Telco Norms

+4ppt

Against

Global

High-Performing

Norms

Page 21: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

PROJECT 1 PHONE PROJECT NOAH’S ARK

Insert headingHighly-engaged and motivated organization behind record results

Page 22: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core

Highly-engaged and motivated organization behind record results

Page 23: Globe Telecom, Inc. · Dividend yield Share price appreciation TSR 4.3%* 4.8% 9.1% *Based on share price of P1,730 last 12/29/14 12% P10B R epresents approximately 86% of 2013 Core