Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to...

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Globe Telecom Inc. Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014

Transcript of Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to...

Page 1: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe Telecom Inc. Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014

Page 2: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Message to Shareholders Mr. Jaime Augusto Zobel de Ayala Chairman

Page 3: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

90.5 Billion

38.5 Million

2.0 Million Broadband

Customers

Mobile

Subscribers Consolidated

Service Revs

Globe registered another banner year, with record-high revenues, driven in part by robust subscriber expansion

Page 4: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe is a direct beneficiary of the robust Philippine economic environment in 2013

OFW Remittances In USD Billions

Philippine GDP Growth

0.6%

2.6%

5.0% 5.1% 5.5% 5.7%

7.7% 7.2%

2013 GDP Growth Selected Asian Countries

• Record level of remittances in 2013 • Sustainable growth momentum due to

growth in domestic consumption, private sector investments, and increased government spending.

7.2%

Page 5: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Investments in Globe’s infrastructure play a central role in enabling the growth of many industries

Enabling various industries … … through our infrastructure

investments…

… which help seed economy and

employment.

Page 6: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe competes through product innovation and differentiated level of customer service

@Talk2Globe accounts.globe. com.ph

facebook.com/ GlobePH

Dial *143# Globe Hotline

Globe Concept Stores

2.0 Million

Postpaid

Subscribers

Page 7: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe’s product innovation and differentiation has led to robust improvements in revenues and core net income

Fixed Line Data

Service Revenues Core Net Income

Php 90.5B Php 11.6B

2013 Financial Highlights

Mobile Broadband Fixed Line Data

+8%

+20%

+13%

Broad-based Revenue Growth

Consolidated

+9%

13% 9%

Page 8: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe invested in a modernized network in preparation for the growing demand for data and internet connectivity

Data continues to be

key source of growth

• Mobile browsing revenues up over

40% year-on-year

• Increasing smartphone penetration

Initiative to modernize into

data-ready network on track

LTE sites in key

CBDs and tourist

spots

Page 9: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe has evolved from simply offering traditional telephony to provide expanded services, even in adjacent spaces

Page 10: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

BPI Globe BanKO • Has extended over Php900

million in wholesale loans

to reach 60,000 micro-

entrepreneurs

• Nearly 2,000 partner

outlets servicing 460,000

retail customers

Globe has evolved from simply offering traditional telephony to provide expanded services, even in adjacent spaces

Page 11: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe’s strong performance reflective in significant growth in shareholder value

GLO* Yield of

Listed Phil

Corporates

2yr PDST-F 5yr PDST-F

GLO Dividend Yield

4.6%

2.0% 3.3%

4.3%

6.2%

49.2% 55.4%

2013 Total Shareholder Return

• First semi-annual cash dividend of P37.50 per common share paid last 20 March 2014 to shareholders on record as of 26 February 2014

• Starting the 2nd half of the year, Globe will distribute quarterly dividend payments to enable better cash management and liquidity planning and provide a more consistent dividend distribution to our shareholders

* On an annualized basis and using GLO closing price as of December 31, 2013 of Php1,640

Page 12: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe’s commitment to shared value and corporate social responsibility

Globe Bridging Communities (Bridgecom)

ILead IConserve IProsper IAccess IGive

Page 13: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe: Sustaining momentum, overcoming the challenges of a highly competitive market, and capitalizing on the opportunities of a changing telecommunications landscape

Page 14: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe Telecom Inc. Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014

Page 15: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Message to Shareholders Mr. Ernest L. Cu President and CEO

Page 16: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe’s 2013 consolidated and mobile revenues reached record highs, despite complexity of ongoing transformation initiatives and sustained competitive intensity

Mobile Revenues In Php Millions

67,189

72,764 +8%

2012 2013

Globe Postpaid/TM Revenues In Php Millions

27,064

16,827

+18%

Globe Postpaid

TM

Cons. Service Revenues In Php Millions

82,742

90,500 +9%

2012 2013

+8%

Total Mobile Subscribers In Millions

1.86

1.73

1.90 1.98

2.03

4Q13 3Q13 2Q13 1Q13 4Q12

35.14

33.12

36.09 36.52

38.48 +16%

Page 17: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Broadband Revenues In Php Millions

8,721

10,440 +20%

2012 2013

Broadband Subscribers In Thousands

341

378 +22%

2013 2012

1,331

1,654 1,672

2,032

Fixed Line Data Revenues In Php Millions

4,167

4,691 +13%

2012 2013

EBITDA In Php Millions

35,014

36,514 +4%

2012 2013

Core Net Income In Php Millions

10,264

11,617 +13%

2012 2013

With sustained revenues momentum from mobile, broadband and fixed line, EBITDA and core net income show solid improvements

Page 18: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe’s strong performance driven by continuous commitment to product innovation and differentiated customer experience

GoSAKTO

Page 19: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe’s Network Modernization and IT Transformation Programs

First phase of network modernization is fully complete. Globe is now embarking on building more sites, boosting capacity and enhancing network performance.

Fiberization of target sites over 76% completed and 3G coverage expansion over 90% completed, providing customers with a faster mobile browsing experience.

Over 9,400 km of fiber added to Globe’s existing FOC infrastructure in support of the Company’s optical and all-IP transport nationwide network.

Nearly 700 of 4G LTE sites already in operation

Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account management are underway to further improve customer experience.

For 2014, Globe will continue its BSS transformation with the migration of mobile prepaid, broadband and landline subscribers.

Transition to a new Enterprise Data Warehouse is also underway using top-tier data warehouse components to deliver superior data processing performance, comprehensive intelligence, and enhanced information value chain.

With strategic focus and action, the capabilities and benefits of the new BSS and Enterprise Data Warehouse continue to be optimized.

Network Modernization

IT Transformation

Page 20: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe recognizes the challenges from over-the-top players that can provide alternatives to traditional telephony …

.

Page 21: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

… and Globe has embraced the challenge through partnerships with these OTT applications, like Viber and Facebook

Page 22: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe likewise pushed forth into adjacent spaces to complement its traditional telephony services

Partnership with Plug and

Play Tech Center

Page 23: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe’s biggest strength lies in its engaged employees

Employee Satisfaction

Index

73.48%

Page 24: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Employee engagement and malasakit on full display amidst challenges brought by natural calamities

Page 25: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Operationalizing sustainability into regular operations

Page 26: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe is committed to remain relevant through innovation and create a wonderful world for our subscribers

2010

2013

Page 27: Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account

Globe Telecom Inc. Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014