PLDT Inc....Additional P0.5bn impairment of Rocket Internet investment was booked in 1Q17 (end March...

1

PLDT Inc. 2017 First Quarter Financial and Operating Results

12th May 2017

2

Individual* Home* Conso Service Revenues Conso Service Revenues

P14.7bn -18% (P3.2bn)

P7.8bn

+12% +P0.8bn

Enterprise* Conso Service Revenues

P8.5bn

+13% +P1.0bn

International* Conso Service Revenues

P4.2bn -24% (P1.3bn)

Voyager* Conso Service Revenues

P0.3bn +132%

+P0.2bn

PLDT Group: 1Q17 vs 1Q16 Financial Highlights

Conso Service Revenues (net of interconnection costs: P2.1bn)

Wireless Fixed Line

P35.6bn

Service Revenues* Service Revenues* P20.8bn

-16% (P3.9bn)

P16.9bn

+10% +P1.5bn

-7% (P2.6bn)

* Net of interconnection costs

** Excluding gain from asset sales and EBITDA adjustments in 1Q16; no adjustments in 1Q17

EBITDA EBITDA Margin

P16.5bn -1% (P0.1bn)

44% (1Q16: 41%)

Core Income (recurring**)

P5.3bn -26% (P1.9bn)

Cash Opex*

P16.6bn -1% (P0.2bn)

Subsidies and Provisions

P2.2bn -52% (P2.4bn)

3

Individual* Home* Conso Service Revenues Conso Service Revenues

P14.7bn -2% (P0.4bn)

P7.8bn

+2% +P0.2bn

Enterprise* Conso Service Revenues

P8.5bn

+7% +P0.6bn

International* Conso Service Revenues

P4.2bn -12% (P0.6bn)

Voyager* Conso Service Revenues

P0.3bn +3% +P9mn

PLDT Group: 1Q17 vs 4Q16 Financial Highlights

Conso Service Revenues (net of interconnection costs: P2.1bn)

Wireless Fixed Line

P35.6bn

Service Revenues* Service Revenues* P20.8bn

-4% (P0.8bn)

P16.9bn

+4% +P0.7bn

-1% (P0.2bn)


** Mainly in compensation and benefits expenses

*** Excluding gain from asset sales, deferred tax asset recognition, and accelerated depreciation; no adjustments in 1Q17

EBITDA EBITDA Margin

P16.5bn +7% +P1.0bn

44% (4Q16: 40%)

Core Income (recurring***)

P5.3bn 46% +P1.7bn

Cash Opex*

P16.6bn +1%**

P0.1bn

Subsidies and Provisions

P2.2bn -39% (P1.4bn)

4

7.2 4.5

4.8 3.6 5.3

1Q16 2Q16 3Q16 4Q16 1Q17

16.6 14.2 15.0 15.4 16.5

1Q16 2Q16 3Q16 4Q16 1Q17

38.2 37.6 36.1 35.8 35.6

1Q16 2Q16 3Q16 4Q16 1Q17

6.2 6.2

3.4 4.1

5.0

1Q16 2Q16 3Q16 4Q16 1Q17

PLDT Group: Consolidated Financial Highlights (Php in billions)

Core Income (recurring) Reported Net Income

EBITDA and EBITDA Margin

EBITDA Margin

41% 35% 39% 40% 44%

+1.0

+7%

-0.1

-1%

*Rocket Internet impairment: 1Q16 – P1.6bn; 2Q16 – P3.8bn; 1Q17 – P0.5bn

-1.9

-26%

Service Revenues, net of interconnection costs

-0.2

-1%

-2.6

-7%

Negative

momentum of

top line

arrested in

1Q17

1Q17 on track

vis-à-vis

guidance

Three quarters of

sequential

improvement in

EBITDA

1Q17 on track vis-

à-vis guidance

+1.7

-+46% +0.8

+20%

-1.3

-20%

* * *

* Excluding asset sales, EBITDA adjustments, deferred tax asset recognition and

accelerated depreciation

20.2

5

7.5 7.6 7.6 7.9 8.5

1Q16 2Q16 3Q16 4Q16 1Q17

PLDT Group: Service Revenues (by Business Unit)

(Php in billions)

Service Revenues (net of interconnection costs)

Enterprise Home

7.0

7.2 7.5

7.6 7.8

1Q16 2Q16 3Q16 4Q16 1Q17

+0.2

+2%

+0.8

+12%

+0.2

+2%


+0.3

+4% +0.2

+3% +0.6

+7%

+1.0

+13%

+0.3

+1%

+0.1

+1% --

+1%

Individual

18.0 17.4 15.8 15.1 14.7

1Q16 2Q16 3Q16 4Q16 1Q17


-3.2

-18%

-0.5

-3%

-1.6

-9%

-0.7

-5%

-0.4

-2%

6

Service Revenue Mix 1Q16 1Q17

Individual 47% 41%

Home 18% 22%

Enterprise 20% 24%

International & Carrier 15% 12%

Voyager and Others 0% 1%

By Business Units

14.7

35.6

7.8

8.5

4.2 0.4

Home Enterprise International

& Carrier

Voyager

And

Others

1Q17

(3.2) -18%

+0.8 +12%

+1.0 +13%

-1.3 -24%

+0.2 +111%

PLDT Group: Consolidated Service Revenues*


(Php in billions)

Individual

-2.6 -7%

Home and Enterprise businesses grew double-digit year-on-year at 12% and 13%, respectively

Combined Home and Enterprise revenues now represent 46% of consolidated service revenues,

greater than the 41% contribution of the Individual business

Data/broadband continue to underpin the growth of the Home, Enterprise and Individual

businesses, accounting for 61%, 66%, and 37% of 1Q17 revenues

Home data and broadband revenues were up by 16% to P4.8bn

Enterprise data and broadband revenues rose by 24% to P1.1bn

Service Revenues (Php in mi l l ions) 1Q16 1Q17

Individual 17,984 14,749

Home 6,965 7,794

Enterprise 7,497 8,469

International & Carrier 5,542 4,230

Voyager and Others 174 368

Total 38,162 35,610

46%

7


Data/Broadband/Digital Platforms 38% 45%

SMS 20% 16%

LEC/Mobile Domestic Voice/Others 32% 30%

Intl Voice/Fixed Line Domestic Voice 10% 9%

(Php in billions)

By Product type

1Q16 1Q17

Lower by P2.6bn or 7%

38.2 35.6

+1.7 +11%

-1.7 -23%

-0.8 -21%

Data, broadband

and digital

platforms SMS

International

voice and fixed

line domestic

voice



-1.7 -14%

LEC, mobile

domestic

voice and

others

Data/broadband revenues of P15.9bn represent 44% of 1Q17 consolidated service revenues*

Data/broadband account for 62% of Fixed Line and 33% of Wireless service revenues*

Mobile internet revenues grew by 20% year-on-year to P4.6bn

Corporate data and data center revenues increased by 17% to P4.9bn

Home broadband revenues rose by 15% to P4.7bn

Fixed home broadband up by 19% to P4.1bn


Data/Broadband/Digital Platforms 14,508 16,163

SMS 7,514 5,813

LEC/Mobile Domestic Voice/Others 12,328 10,608

Intl Voice/Fixed Line Domestic Voice 3,812 3,026

Total 38,162 35,610

8



SMS 18% 16%

LEC/Mobile Domestic Voice/Others 29% 30%

Intl Voice/Fixed Line Domestic Voice 9% 9%

(Php in billions)

By Product type

4Q16 1Q17

35.8 35.6

+0.5 +3%

-0.6 -9%

-0.3 -8%

Data, broadband

and digital

platforms SMS

International

voice and fixed

line domestic

voice



+0.2 +1%

LEC, mobile

domestic

voice and

others

By Business Units

14.7

35.6

7.8

8.5

4.2 0.4

Home Enterprise International

& Carrier

Voyager

And

Others

1Q17

(0.4) -2%

+0.2 +2%

+0.6 +7%

-0.6 -12%

-- +2%

(Php in billions)

Individual

-0.2 -1% 46%


Individual 15,100 14,749

Home 7,644 7,794

Enterprise 7,893 8,469

International & Carrier 4,810 4,230

Voyager and Others 360 368

Total 35,807 35,610



SMS 6,418 5,813

LEC/Mobile Domestic Voice/Others 10,457 10,608

International Voice/Fixed Line Domestic Voice3,291 3,026

Total 35,807 35,610


Individual 42% 41%

Home 21% 22%

Enterprise 22% 24%

International & Carrier 14% 12%

Voyager and Others 1% 1%


9

16.6

14.2 15.0 15.4 16.5

1Q2016 2Q2016 3Q2016 4Q2016 1Q2017

(Php in billions)


PLDT Group: Consolidated EBITDA

Margins

41% 35% 39% 40% 44%

-15% -2.5

+6% +0.8

+3% +0.5

EBITDA for 1Q17 was lower by P0.1bn or 1% at P16.5bn vis-à-vis 1Q16 but higher by 7% or P1.0bn quarter-on-

quarter

Consolidated EBITDA registered three quarters of sequential improvements starting from 2Q16

Primarily due to lower provisions (P2.3bn) and lower subsidies (P1.9bn), management efforts to operate more

efficiently resulting in lower costs (P0.7bn) fully absorbing the decline in service revenues (P2.3bn) and increase in the

cost of content (P0.2bn)

Consolidated EBITDA margin for 1Q17 at 44% vs 41% in 1Q16 and 40% in 4Q16

Wireless: 37% (vs 1Q16: 36%; 4Q16: 35%; FY16: 32%)

Fixed Line: 43% (vs 1Q16: 39%; 4Q16: 37%; FY16: 39%)

EBITDA guidance for 2017 of P70bn anticipates a “back-ended recovery”

+7% +1.0

15.4 16.5

Margins 40% 44%

Lower

svc

rev*

Lower

sub-

sidies

Higher

cash

opex*

Lower

provns

+1.4 -0.2 -- -0.1

4Q16

Higher by P1.0bn or 7%

1Q17

10

Recurring core income of P5.3bn for 1Q17 was higher by P1.7bn or 46% from P3.6bn in 4Q16

Compared with 1Q16, recurring core income declined by 26% or P1.9bn

Reported net income for 1Q17 of P5.0bn decreased by P1.3bn or 20% year-on-year

Additional P0.5bn impairment of Rocket Internet investment was booked in 1Q17 (end March 2017 share price of

€16.03 with market value at P8.7bn)

Rocket share price improved to €18.745 on 11 May 2017 with market value at P10.3bn

1Q17 core income broadly tracking full year guidance of P21.5bn

4Q16

Recurring

1Q17

(Php in billions)

PLDT Group: Core Income

3.6

5.3

Higher by P1.7bn or 46% vs recurring core income in 4Q16

1Q17

7.2

5.3 -1.4

Lower

Misc

Income -0.1

Lower

EBITDA

-0.3

Lower

net

Equity

in

earnings

-0.4

Higher

Non-

cash

Expenses

+0.4

Lower

Provn

for Inc

Taxs

Lower by P1.9bn or 26% vs 1Q16 Recurring core income

+1.0

Higher

EBITDA +0.1

Lower

Non-

cash

Expenses

Higher

net equity

in

earnings

+0.5 +0.1

Lower

Fin

Costs -

Net -0.4

Higher

Provn for

Taxes

1Q16

Recurring

---

Gain from

asset

sales and

EBITDA

Adj.

+0.4

Higher

Misc

Income

11

(Php in billions)

Note: BPO capex up to 2012 only

17.2 22.1

17.1 23.0 30.3 32.1 28.8

13.7 13.7

11.7 11.7

12.9 10.7 17.2

Fixed Line Wireless

31.2

2011 2012

36.4

2013

28.8

2014

34.8

43.2

2015

42.8

2016

% of Capex to total service revenues:

21% 23% 18% 21% 26% 27% < 30%

PLDT Group: Capex

46.0

2017F

37% (25% in 2016)

63% (75% in 2016)

Capex program to build a network that will provide customers with a superior data experience:

proceeding as planned

Cash capex in 1Q17 amounted to only P1.8bn with payments anticipated to be backended

Network milestones:

Continues to lead in the LTE landscape in the Philippines based on recent performance analysis of

Open Signal

Substantially completed LTE rollout in Cebu; ongoing works in Metro Manila

Continued rollout of network using the spectrum acquired through VegaTel, including the 700MHz

Made the first successful mobile call using voice-over-LTE (VoLTE) in the Philippines, and also

successfully tested voice-over-WIFI

Strengthened fiber superiority in the HOME and Enterprise

Launch of fiber-powered “PLDT SmartCities” in partnership with the LGUs of: Toledo City (Cebu),

General Santos (Mindanao), Naga City

Deployment of G.fast technology to achieve fiber-like speeds over copper

Increased FTTH homes passed to 3mn and port availability by 70K in 1Q17 and 110K at YTD April 2017

12

Debt Maturities

Debt Balance

2.9 2.4

2.9 3.4 3.7 3.5

0.9 0.7 0.6 1.0 0.8 0.8

1.9 1.6 2.3 2.4

2.9 2.7

2012 2013 2014 2015 2016 1Q2017

Debt Balance Cash & Short-term Investments Net Debt

221 300 399 384 440 376

1,381

2017 2018 2019 2020 2022 2021

Total: US$3,501mn

* Total debt based on nominal debt amount

*

2023

to 2026

Net debt and net debt to EBITDA as of end March 2017

stood at US$2.7bn and 2.2x

At end March 2017, gross debt amounted to US$3.5bn

US$ denominated gross debt now at 25% from 32% at YE16

following the full payment of the 8.35% US$ bond on 6 March

2017 (refinanced in pesos)

Taking into account our available US$ cash and hedges, only

US$0.3bn or 9% of total debt is unhedged

73% are fixed-rate loans, while 27% are floating-rate loans;

post-interest rate swaps: 91% fixed, 9% floating

Average interest cost (pre-tax) of 4.3% (FY16: 4.4%)

As of end March 2017, PLDT’s investment grade ratings

remained unchanged from YE16

Net Debt/EBITDA:

1.05x 0.9x 1.35x 1.62x 2.36x 2.2x

Debt maturities to total debt:

6% 9% 11% 11% 13% 11% 39%

Ratings AgenciesLong-Term Foreign

Issuer Rating

Long-term Local

Issuer RatingOutlook

Fitch BBB BBB+stable (FC IDR);

negative (LC IDR)

Moody's Baa2 Baa2 stable

Standard and Poor's /

S&P NationalBBB+ axA+ stable

(US$ in billions)

(US$ in millions)

PLDT Group: Debt Profile

13

Business Unit Updates

14

INTERNATIONAL

HOME

INDIVIDUAL 14.75 B

7.79 B

8.47 B

4.23 B

₱35.24 B

ENTERPRISE

1Q 2017 HIGHLIGHTS

TOTAL

● Contribution of Home and Enterprise, our fastest

growing segments, comprise 52% of revenues,

excluding international, and forecasted to grow to

approximately 56% share by 2019.

● Combined revenues of Home and Enterprise

(FIXED: ₱16.26 Billion) have again

surpassed Individual Wireless revenues

(₱14.75 Billion)

REVENUES IN PESOS BILLIONS

Net of Interconnection Cost

Excludes Voyager and Others

15

SUB- TOTAL

1Q 2017 HIGHLIGHTS: PLDT GROUP SERVICE REVENUE

INTERNATIONAL

HOME

INDIVIDUAL

ENTERPRISE

TOTAL

Q1 ‘16

18.0

32.5

5.5

38.0

Q4 ‘16

15.1

30.6

4.8

35.5

Q1 ‘17

14.8

31.0

4.2

35.2

Actual Actual Actual YOY GROWTH

-3.2

-1.4

-1.3

-2.8

-18%

-4%

-24%

-7%

vs 1Q 2016 QOQ GROWTH

-0.4

0.4

-0.6

-0.2

-2%

1%

-12%

-1%

vs 4Q 2016

7.0

7.5

7.6

7.9

7.8

8.5

0.8

1.0

12%

13%

0.2

0.6

2%

7%

1Q 2017 Service Revenue Net of Interconnection Cost In Pesos Billions

1Q 2017

16

01 HOME KICKS OFF THE YEAR WITH THE

HIGHEST EVER 12% YOY GROWTH, WITH

BOTH VOICE AND DATA GROWING

VOICE

3.02B

6%

DATA

4.78B

16%

Q1 2016 Q1 2017

6.97B

7.79B

12% VOICE

2.84B

DATA

4.12B

02

Q1 2016 Q1 2017

10%

1Q 2017 HIGHLIGHTS: HOME BUSINESS

In Pesos Billions

3.43M

ALMOST 340K SUBSCRIBERS RESULTING

TO A 10% YOY GROWTH

3.77M

In Millions of Subscribers

17

Launch of a Tri-band Gigabit

Router to maximize and amplify

the ultra-fast internet of PLDT

Home Fibr

03 REALIZING SIGNIFICANT GROWTH IN HOME BROADBAND, WITH DIGITAL

CONTENT AND SERVICES INSTRUMENTAL TO CREATING MORE DEMAND

Strong demand for higher broadband

subscriptions, with a significant YOY

growth of 20% in wired broadband

revenue

New premier content partnerships to

cater to the increasing video demand,

which grew 4x in consumption YOY


18

04 ACCELERATING MOMENTUM TO COVER THE COUNTRY WITH LEADING EDGE

TECHNOLOGIES AND IN STRENGTHENING MARKET DOMINANCE

Toledo City, Cebu

General Santos City

Isulan, Sultan Kudarat

Naga City, Camarines Sur

BF Homes, Paranaque

Merville, Paranaque

Mahogany Place, Taguig

Verawood Residences, Taguig


● PLDT Home Rolled out 110K

high speed broadband lines by

end April 2017

● Starting with 2.8M HOMES

PASSED YE 2016, we are now

covering over 3M HOMES

PASSED and well on our way

to reach the 4.4M target by

year-end 2017

Launch of Fibr powered

‘PLDT SmartCity’ Program,

which will bring the best

broadband experience

all over the country

19

Enterprise Service Revenues

Net of Interconnect

SUSTAINING ACCELERATED

GROWTH IN Q1 ALL BUSINESS PILLARS GROWING BY

DOUBLE DIGIT

2016Q1 2017Q1 Fixed Wireless ICT

7.5B

+13%

0.97

8.47B

+13%

+15%

+11%

01 02

13%

vs Q4 2016

vs Q1 2016

7%

1Q 2017 HIGHLIGHTS: ENTERPRISE BUSINESS

20

Banking & Financial : 14%

In support of industry demand for

secure and reliable ICT solutions

FASTER THAN

MARKET GROWTH

Outsourcing : 17%

Empowering a 1.3M+ strong

agent workforce

SME : 10%

Enabling enterprises to be more

competitive and embrace digital

IT and Gaming : 20%

Key player in PH transition to a

global IT and Gaming hub

04

6%

15%

9%

7%

INDUSTRY

GROWTH


ENTERPRISE BUSINESS IS GROWING

IN THE RIGHT AREAS 03

40% 34%

VOICE, SMS and

OTHERS

60% 66% % OF

TOTAL

REVENUE

-4% DATA and ICT

24%

Q1 2016 Q1 2017 Q1 2016 Q1 2017

21

CLEAR LEADERSHIP IN THE DATA CENTER

SPACE, MAKING PLDT WELL POSITIONED TO

CAPITALIZE ON FUTURE GROWTH IN THE AREAS

OF SMACS AND MANAGED SERVICES

05 06 CONTINUED MOMENTUM IN DRIVING

RELEVANT SOLUTIONS TO BETTER SERVE

THE NEEDS OF THE ENTERPRISE MARKET

SOS Dispatch Media Launch

Cisco Collaboration

redefining

Enterprise Experience (EX)

Digital Enablement

“She’s the Boss”

Event

Cybersecurity Summit 70% Share of outsourced DC

market

More than

3X capacity vs. the next largest

competitor

New market-relevant capabilities such as cyber security services

Q1 2017 DC new mandates greater than

FY 2016

RISK ASSESSMENT

MANAGEMENT &

MONITORING

INCIDENT RESPONSE


22

01

QUARTERLY NET SERVICE REVENUE

Q1 2016 Q1 2017

17.98B

14.75B

DECLINE IN NET SERVICE

REVENUE VS LAST YEAR

SUBS BASE

In Millions

ARPU ARPU

PhP

CONTRIBUTORS:

Q1 2016 Q1 2017

Q1 2016 Q1 2017

₱110 ₱97

1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS

68.2M 63.1M

In Pesos Billions

23

02 HOLDING THE LINE IN NET SERVICE REVENUE

ON A DAILY BASIS 03

GREEN SHOOTS OF

PROGRESS IN Q1

SUBS

Millions

ARPU

PhP

62.8M

Q4 2016 Q1 2017

Q4 2016 Q1 2017

₱100 ₱100

Normali

zed

63.1M


₱97

QUARTERLY NET SERVICE

REVENUE

In Pesos Billions

17.98 17.44 15.84 15.10 14.75

198 192 172

164 164

DAILY NET SERVICE REVENUE

In Pesos Millions

24

DELIVERING THE BEST CUSTOMER

EXPERIENCE LIKE NEVER BEFORE WITH

SMART’S NEWEST AND FASTEST LTE

NETWORK

04

Validated by


25

FURTHERING COMMITMENT TO IMPROVE EXPERIENCE IN PUBLIC AREAS

AS WE PROVIDE THE BEST WIFI OFFLOAD EXPERIENCE TO OUR

SUBSCRIBERS

THE YARD XAVIERVILLE Quezon City

THE YARD UNDERGROUND Pasig

STREAT FOOD PARK

Maginhawa MATINA TOWN SQUARE

Davao

05

Experience Data Like Never Before with SMARTSPOTS!


26


UPSELLING CONTENT AND DIGITAL SERVICES TO

CREATE MORE VALUE AND DEMAND FOR DATA 06

Experience Content

Like Never Before!

27

Renewal of Smart Franchise


Smart Franchise has been extended by Republic Act No. 10926 for another 25 years from the

date of effectivity of the Act Published in the Philippine Star on May 4, 2017 and will take effect 15 days after such publication or on May 20, 2017

Republic Act No. 10926 signed into law by the President of the Republic of the Philippines on

April 21, 2017 Originated from the House of Representatives; passed by the House of Representatives on January 16, 2017

Amended by the Senate on March 13, 2017

Concurred in by the House of Representatives on March 14, 2017

Acceptance of the franchise must be given to the Congress of the Philippines within 60 days

from effectivity of the Act

Salient Terms Tax Provisions. Amended to be at par with the tax benefits granted to Globe under its franchise

Listing of Shares. Smart is not required to list its shares for as long as it is wholly owned by a publicly listed

company with at least 30% of whose authorized capital stock is publicly owned

Mobile Number Portability. Smart is required to provide mobile number portability to all its subscribers subject to the

issuance of the applicable rules and regulations by the NTC which will take effect upon the applicability of mobile

number portability to all other telecommunication franchise grantee ("sunrise clause")

Equality Clause. Added an equality clause consistent with the equality provision set out in the Public

Telecommunication Policy Act of 1995

Penalty Clause. Penalty for failure to submit the required annual report to Congress will increase to P1,000.00 (from

P500.00) per working day of non-compliance upon the applicability of the same increase in penalty to all other

telecommunication franchise grantees

28

PLDT Group: Guidance for 2017

EBITDA: P70bn Capex: P46bn

Dividend Payout: 60%

To grow by P8.8bn from P61.2bn in 2016 impact of P4.6bn in subsidies and provisions in 2016

which will not recur in 2017

Low-single digit growth in consolidated service

revenues

Double-digit growth in data/broadband to continue

Continuing declines in toll, cellular voice and SMS

revenues

Reduction in cash opex to result from tighter

management of costs

Recurring core income from telco operations to rise to

P21.5bn P1.5bn increase due to the combined effect of:

Higher EBITDA partly offset by increases in depreciation

and financing costs resulting from the higher capex

Lower equity in earnings due to reduced ownership in

Beacon, and losses and amortization of purchase price

acquisition related to the Vega Tel transaction

Including asset sales, core income anticipated at P25bn

or higher Anticipated gain from asset sales to be offset by expected MRP

expense

* Normalized to exclude asset sales and impact of higher provisions

Higher by P3.2bn from P42.8bn in 2016 Includes carry-over of capex started in 2016 to be completed/accepted

in 2017

Anticipated increase in fixed line capex to support push to further grow

the Home and Enterprise businesses

Dividend policy: Regular dividend payout of 60% of core

income

Takes into consideration: Technology roadmap/capex requirements

Management of cash and gearing levels

Plans to invest (on opportunistic basis) in new adjacent

businesses that will complement the current business and provide

future sources of profits and dividends

Recurring Core Income: P21.5bn

29

Other Details

30

38.2 37.6 36.1 35.8 35.6

1Q16 2Q16 3Q16 4Q16 1Q17

15.4 15.5 15.9 16.3 16.9

1Q16 2Q16 3Q16 4Q16 1Q17

(Php in billions)

Fixed Line

Consolidated

1Q17 vs 1Q16:

-7% or -P2.6bn

Service Revenue Mix:

Data/broadband 38% 40% 41% 43% 44%

Service Revenues Mix:

Data/broadband

59% 59% 60% 61% 62%

24.7 24.0 22.3 21.6 20.8

1Q16 2Q16 3Q16 4Q16 1Q17

Wireless

Service Revenue Mix:

Data/broadband

28% 30% 32% 33% 33%

-0.6

-1%

+0.1

--

-1.5 -4%

-0.6

-2%

+0.4

+2%

PLDT Group: Service Revenues*

-0.3 -1%


-1.8

-7%

-0.7

-3% vs 1Q16:

-16% or

-P3.9bn +0.4

+2% vs 1Q16:

+10% or

+P1.5bn

By Business Segment

-0.2 -1%

-0.8

-4%

+0.7

+4%

31

9.6

7.3 7.4 8.4 8.3

1Q16 2Q16 3Q16 4Q16 1Q17

24.7 24.0 22.3 21.6 20.8

1Q16 2Q16 3Q16 4Q16 1Q17

PLDT Group: Fixed and Wireless Financial Highlights

(Php in billions)


EBITDA Margin

36% 28% 31% 35% 37%

-1.3

-14%


-0.8

-4%

-3.9

-16%

--

-1%

Ave.Daily Rev (mns): P242.1 P234.6 P230.7

-2% -3%


Wireless Fixed

15.4 15.5 15.9

16.3

16.9

1Q16 2Q16 3Q16 4Q16 1Q17

+0.7

+4%

+1.5

+10%

+0.4

+2%


EBITDA Margin

39% 39% 42% 37% 43%

6.6 6.5 7.1 6.6

7.8

1Q16 2Q16 3Q16 4Q16 1Q17

+1.2

+17%

+1.2

+18%

32

Data and

Broadband LEC and

Others

+1.5 +16%

+0.3 +6%



SMS 31% 28%

Domestic Voice/Others 32% 29%

International Voice 9% 8%


Data/Broadband 59% 62%

LEC/Others 31% 30%

International Voice/Domestic Voice 10% 8%

(Php in billions)

Fixed Line*

Wireless*

1Q16 1Q17


15.4 16.9

-0.2 -16%

International and

domestic voice

1Q16 1Q17


24.7

20.8

+0.3** +4%

-2.0 -25%

-0.5 -22%

Data, broadband,

digital platforms

Domestic

voice and

others International

voice


(Php in billions)

PLDT Group: Service Revenues*

-1.7 -23%

SMS



SMS 7,517 5,815

Domestic Voice/Others 7,961 5,976

International Voice 2,237 1,743

Total 24,651 20,766

Corporate data and data center revenues

represent 38% of total fixed line revenues

1Q17 vs 1Q16

1Q17 vs 1Q16

Data/broadband, now 33% of total wireless

service revenues, overtook SMS and

domestic voice which account for 28% and

27%, respectively

** Includes growth in: -- Mobile internet by 20% or P0.8bn -- Digital platforms by 137% or P0.2bn

Service Revenues (Php in millions) 1Q16 1Q17

Data/Broadband 9,096 10,563

LEC/Others 4,761 5,034

International Voice/Domestic Voice 1,578 1,330

Total 15,435 16,927

33


Mobile Data 31% 37%

Mobile Domestic Voice 35% 33%

SMS 33% 30%

Others 1% 0%



LEC 38% 36%

Domestic Voice 3% 3%

Others 0% 0%

7.0 7.8

18.0

14.7

33

(Php in billions)

LEC

+8% +0.2

Home

1Q17 1Q16

Data/

broadband

+16% +0.6

Fixed Line

Domestic

Voice and Others

-8% ---


Individual

Mobile

domestic

voice

-23% -1.4

Mobile data

-3% -0.1

Others

-18% ---


1Q17 1Q16

SMS

-27% -1.6

PLDT Group: Home and Individual Service Revenues*

* Consolidated and net of interconnection costs

(Php in billions)



LEC 2,632 2,831

Domestic Voice 209 186

Others 0 6

Total 6,965 7,794


Mobile Data 5,599 5,451

Mobile Domestic Voice 6,267 4,819

SMS 6,000 4,382

Others 118 97

Total 17,984 14,749

1Q17 vs 1Q16

1Q17 vs 1Q16

Fixed home broadband revenues of

P4.1bn grew by 19% or P0.7bn year-

on-year and account for 52% of

total Home revenues

Mobile internet revenues rose by

14% or P0.5bn to P3.9bn in 1Q17

representing 27% of total Individual

revenues

Note:

Fixed Home Broadband: +19%, +P0.7bn

Wireless Home Broadband: -4%, -P27mn

Note:

Mobile Internet: +14%, +P0.5bn

Dongles: -29%, -P0.6bn

34

7.5

8.5

(Php in billions)

Enterprise*

Fixed and

Mobile

ILD/NLD

+6% ---

Corp. Data

+19% +0.8

Mobile

domestic

voice

-41% -0.1

Mobile

Data

+75% +0.3

LEC

+1% ---


1Q17 1Q16

SMS

-5% ---

Data and broadband

up by P1.1bn or 24%

SMS/mobile voice

lower by P0.2bn or

27%

Others

+1% ---

PLDT Group: Enterprise Service Revenues*

* Consolidated and net of interconnection costs

1Q17 vs 1Q16



Voice 35% 30%

SMS 3% 2%

Others 2% 2%



Voice 2,634 2,538

SMS 202 191

Others 169 170

Total 7,497 8,469

66% of Enterprise revenues are from data/broadband

P1.1bn increase in data/broadband revenues due to:

Rise of P0.8bn or 19% in corporate data and data center revenues

Growth in mobile data revenues mainly in mobile internet revenues which increased by P0.3bn or

83%

35

Home broadband revenues were higher by P0.6bn or 15% to P4.7bn

Broadband subscriber base, including Home Broadband and Corporate

Fixed Broadband subscribers, stood at about 1.8mn, with net adds of

over 50,000 or 3% from YE16

Goal: to transform households into a ‘Smart Home’ or ‘the HOME of

the future’

Via devices: Telpad, TVolution, FamCam, Fam Zone, Smart Watch

Recently launched the next generation Tvolution/ROKU-powered

streaming box

Triple-play (fixed line, broadband, IPTV) and quad-play (including

mobile) plans available, including data sharing plans

Roll out of high speed internet via Fibr bundled with great content, Fox+,

iFlix, iWantTv, and Netflix

6.2

15.9

4.9

4.7

6.1 6.4 6.3 6.2 6.2

4.2 4.2 4.1 4.5 4.9

4.1 4.3 4.5 4.6 4.7

1Q16 2Q16 3Q16 4Q16 1Q17

Mobile Data Corp. Data and Data Center Home Broadband

% to total Data and Broadband Consolidated Revenues*:

39% 31% 30%

(Php in billions)

Mobile Internet

Mobile data, including revenues from mobile Internet and

mobile broadband, rose by P0.1bn or 2% year-on-year to

P6.2bn

Mobile Internet revenues grew by 20% or P0.8bn to P4.6bn

and account for 29% of total data and broadband revenues

Data usage in 1Q17 increased by 56% to 50,860TB from

1Q16 and by 16% from 4Q16

Smartphone penetration: approximately 50% of our

subscriber base, with about 50% of whom pay for data

Goal: Enable and accelerate data adoption to drive usage

and build the data habit

• Launch of All Out Surf packages that include data

allocations bundled with calls and texts

• Arrangements with smartphone distributors for reverse

bundling (SIM included in the phone kits sold)

• Brand refresh highlighting superiority of Smart’s LTE

network: “Be there like never before”

Mobile broadband revenues or 10% of total data and

broadband revenues declined by P0.6bn or 28% to P1.6bn] as

usage shifts from dongles/pocket wifi devices to smartphones

Corporate Data and Data Centers

Corporate data and data center revenues, or 31% of total

data and broadband revenues, were higher by P0.7bn or 17%

at P4.9bn

PLDT is the nation’s largest data center operator with ten

data centers and a total rack capacity of about 9,000 by year-

end 2017

Home Broadband

Mobile

Data

Home

Broadband

Corp. Data and

Data Center

1Q17

+0.1 +2%

+0.7 +17%

+0.6 +15%

+1.5 +10%

-1%

+11%

+2%

+2%

+17%

+15%

Y-o-Y

+1.5

+10%

14.4 15.9

PLDT Group: Consolidated Data and Broadband*

+0.5 +3%

1Q17 vs 1Q16

14.9 14.9 15.3

* Consolidated, net of interconnection costs

36

Appendix

37

Mobile Subscribers (1) by Category:

Mobile Subscribers (1) by Brand:

(1) Includes Mobile Broadband subscribers

Subscriber Base: Mobile

Mobile Subscriber Base (1)

Prepaid 60,421,068 59,952,941 62,259,067 64,701,367 64,651,175

Smart Prepaid 21,933,462 21,643,963 23,560,542 24,185,165 24,836,433

Sun Prepaid 8,086,432 8,463,469 8,846,953 9,652,756 10,495,342

TNT 30,401,174 29,845,509 29,851,572 30,863,446 29,319,400

Postpaid 2,721,410 2,810,268 3,117,035 3,556,485 3,539,055

Smart Postpaid 1,365,709 1,383,830 1,482,672 1,573,147 1,610,670

Sun Postpaid 1,355,701 1,426,438 1,634,363 1,983,338 1,928,385

Total Mobile Subscribers 63,142,478 62,763,209 65,376,102 68,257,852 68,190,230

Sept-16 Mar-16Dec-16Mar-17 Jun-16

Mobile Subscriber Base (1)

Smart 23,299,171 23,027,793 25,043,214 25,758,312 26,447,103

Smart Prepaid 21,933,462 21,643,963 23,560,542 24,185,165 24,836,433

Smart Postpaid 1,365,709 1,383,830 1,482,672 1,573,147 1,610,670

TNT 30,401,174 29,845,509 29,851,572 30,863,446 29,319,400

Sun Cellular 9,442,133 9,889,907 10,481,316 11,636,094 12,423,727

Sun Prepaid 8,086,432 8,463,469 8,846,953 9,652,756 10,495,342

Sun Postpaid 1,355,701 1,426,438 1,634,363 1,983,338 1,928,385

Total Mobile Subscribers 63,142,478 62,763,209 65,376,102 68,257,852 68,190,230

Sept-16 Mar-16Dec-16Mar-17 Jun-16

38

Broadband Subscribers

Fixed Line Subscribers

Subscriber Base: Broadband and Fixed Line

BROADBAND

Home Broadband (Wireless) 264,227 270,203 271,572 265,473 248,675

Fixed Line Broadband 1,506,578 1,450,550 1,407,122 1,347,422 1,296,402

Total Broadband Subscribers 1,770,805 1,720,753 1,678,694 1,612,895 1,545,077

Mar-16Mar-17 Jun-16Sept-16Dec-16

Fixed Line Subscribers 2,487,601 2,438,473 2,404,893 2,380,390 2,339,001

Mar-17 Jun-16 Mar-16Dec-16 Sept-16

39

(1) EBITDA margin calculated as EBITDA divided by service revenues (gross of interconnection costs)

1Q2017: Consolidated Financial Highlights

1Q2016

(Unaudited, Php in millions) Fixed Line Others Consolidated Consolidated

Total Revenues 23,162 19,049 - 39,188 42,779 (8%)

Service Revenues 22,475 18,249 - 37,701 40,598 (7%)

Cash Operating Expenses (12,101) (9,998) (18) (18,715) (19,295) (3%)

Depreciation and Amortization (4,430) (3,120) - (7,550) (7,158) 5%

Financing Costs, Net (604) (1,308) (49) (1,900) (1,804) 5%

Income (Loss) before Income Tax 3,311 4,384 (439) 7,256 8,962 (19%)

Provision for Income Tax (1,081) (1,175) (31) (2,287) (2,729) (16%)

EBITDA 8,309 7,797 (18) 16,467 16,606 (1%)

EBITDA Margin(1) 37% 43% - 44% 41%

Net Income (Loss) Attributable to

Equity Holders of PLDT2,230 3,190 (469) 4,951 6,217 (20%)

Core income 2,298 2,856 175 5,329 7,211 (26%)

% Change1Q2017

Wireless

40

Underlying Core Income

2017

1Q 1Q 2Q 3Q 4Q FY

Core Income 5,329 7,211 10,489 4,036 6,121 27,857

Core Income Adjustments

One-Time Provisions and Subsidies (EBITDA Adjustments) - 1,011 2,034 1,605 - 4,650

Asset Sales - (970) (7,365) (396) (438) (9,169)

Accelerated Depreciation - - - - 4,084 4,084

Deferred Tax Asset Recognition - - - - (5,027) (5,027)

Net Tax Effect of Adjustments - (12) (611) (481) (1,094) (2,198)

Underlying Core Income 5,329 7,240 4,547 4,764 3,646 20,197

2016

(Unaudited, Php in millions)

41

Reconciliation of Core and Reported net income

1Q2016

Wireless Fixed Line Others Consolidated Consolidated

Net Income (Losses) Attributable to Equity Holders of 2,230 3,190 (469) 4,951 6,217 (20%)

Add (Deduct):

Foreign Exchange Losses (gains), Net 254 41 102 397 (970) 141%

Losses (Gains) on Derivative Financial Instruments, Net (157) (229) - (386) 369 (205%)

Asset Impairment - (201) 540 339 1,583 (79%)

Others - (1) (18) (19) (42) (55%)

Tax Effect (29) 56 20 47 54 (13%)

Core Income 2,298 2,856 175 5,329 7,211 (26%)

(Unaudited, Php in millions)% Change

1Q2017

42

Consolidated Service Revenues*

*Consolidated and Gross of Interconnection costs

(Unaudited, Php in millions) 1Q 1Q 2Q 3Q 4Q FY

Fixed Line 15,556 14,287 14,320 14,446 15,033 58,086

LEC 4,553 4,333 4,384 4,479 4,499 17,695

Fixed Line Voice - International 970 1,240 1,092 1,015 1,111 4,458

Fixed Line Voice - Domestic (NLD) 789 844 845 863 797 3,349

Home Broadband 4,074 3,413 3,615 3,781 3,920 14,729

Corporate Data and Data Center 4,951 4,237 4,189 4,098 4,474 16,998

Miscellaneous 219 220 195 210 232 857

Wireless 22,145 26,311 25,686 23,882 23,236 99,115

Mobile Services 21,069 25,305 24,806 22,826 22,129 95,066

Mobile Voice 7,594 10,240 9,458 8,272 8,011 35,981

SMS 6,910 8,688 8,643 7,873 7,532 32,736

Mobile Data 6,235 6,063 6,444 6,375 6,333 25,215

Inbound Roaming and Others 330 314 261 306 253 1,134

Home Broadband 652 679 670 696 713 2,758

Digital Platforms and Mobile Financial Services 309 133 57 219 300 709

MVNO and Others 115 194 153 141 94 582

Others - - - - 9 9

Total 37,701 40,598 40,006 38,328 38,278 157,210

20162017

43


Data/Broadband/Digital Platforms 16,221 14,525 14,975 15,169 15,749 60,418

Mobile Data 6,235 6,063 6,444 6,375 6,333 25,215

Mobile Internet 4,612 3,811 4,257 4,471 4,628 17,167

Mobile Broadband 1,623 2,252 2,187 1,903 1,704 8,046

Other Data - - - 1 1 2

Home Broadband 4,726 4,092 4,285 4,477 4,633 17,487

Fixed 4,074 3,413 3,615 3,781 3,920 14,729

Wireless 652 679 670 696 713 2,758

Corp. Data and Data Center 4,951 4,237 4,189 4,098 4,474 16,998

Corp. Data and Leased Lines 4,333 3,678 3,595 3,704 3,978 14,955

Data Center and Information Technology 618 559 594 394 496 2,043

Digital Platforms and Others 309 133 57 219 309 718

SMS/Mobile Voice - Domestic/LEC/Others 17,923 21,697 20,912 19,335 18,645 80,589

SMS 6,910 8,688 8,643 7,873 7,532 32,736

Mobile Voice - Domestic 5,796 7,948 7,276 6,326 6,035 27,585

LEC 4,553 4,333 4,384 4,479 4,499 17,695

Others 664 728 609 657 579 2,573

ILD/Fixed Line - Domestic (NLD) 3,557 4,376 4,119 3,824 3,884 16,203


Fixed Line Voice - International 970 1,240 1,092 1,015 1,111 4,458

Mobile Voice - International 1,798 2,292 2,182 1,946 1,976 8,396

Total Consolidated Gross Service Revenues 37,701 40,598 40,006 38,328 38,278 157,210

Non-Service Revenues 1,487 2,181 2,499 1,774 1,598 8,052

Total Consolidated Gross Revenues 39,188 42,779 42,505 40,102 39,876 165,262

Deduct:

Cash Operating Expenses (18,715) (19,295) (19,434) (19,128) (18,947) (76,804)

Cost of Sales (2,646) (5,126) (5,519) (3,337) (2,771) (16,753)

Cost of Content (309) (107) (83) (107) (279) (576)

Writedown of Inventory and Provision for Doubtful AR (1,051) (1,645) (3,317) (2,571) (2,435) (9,968)

EBITDA 16,467 16,606 14,152 14,959 15,444 61,161

EBITDA Margin(1)

44% 41% 35% 39% 40% 39%

20162017


Consolidated Service Revenues* and EBITDA

*Consolidated and Gross of Interconnection costs

44


Wireless Service Revenues* and EBITDA

*Gross of Interconnection costs and before intersegment elims


Data/Broadband/Digital Platforms 7,281 6,944 7,270 7,375 7,428 29,017

Mobile Data 6,308 6,127 6,536 6,445 6,409 25,517

Mobile Internet 4,612 3,811 4,257 4,471 4,628 17,167

Mobile Broadband 1,655 2,276 2,209 1,926 1,736 8,147

Other Data 41 40 70 48 45 203

Home Broadband 655 683 674 700 716 2,773

Digital Plarforms 318 134 60 230 303 727

SMS/Mobile Voice - Domestic/Others 13,388 17,422 16,612 14,918 14,185 63,137

SMS 6,912 8,690 8,646 7,875 7,534 32,745

Mobile Voice - Domestic 6,029 8,221 7,551 6,594 6,300 28,666

Others 447 511 415 449 351 1,726

Mobile Voice - International 1,806 2,304 2,189 1,952 1,983 8,428

Total Wireless Gross Service Revenues 22,475 26,670 26,071 24,245 23,596 100,582

Non-Service Revenues 687 1,261 1,472 838 761 4,332

Total Wireless Gross Revenues 23,162 27,931 27,543 25,083 24,357 104,914

Deduct:


Cost of Sales (1,905) (4,421) (4,748) (2,748) (2,223) (14,140)

Cost of Content (119) (31) (15) (35) (208) (289)

Writedown of Inventory and Provision for Doubtful AR (728) (1,335) (2,947) (2,237) (1,727) (8,246)

EBITDA 8,309 9,629 7,257 7,423 8,352 32,661

EBITDA Margin(1)

37% 36% 28% 31% 35% 32%

20162017

45

Fixed line revenues - net of interconnection costs*

(1) Non-service revenues include sale of PLP units, FabTAB, Tvolution, managed ICT equipment, Telpad, UNO equipment and managed PABX (2) EBITDA margin calculated as EBITDA divided by service revenues (gross of interconnection costs)

Fixed Line Service Revenues* and EBITDA

1Q 1Q 2Q 3Q 4Q FY

Data/Broadband 10,574 9,110 9,216 9,457 9,928 37,711

Home Broadband 4,134 3,434 3,655 3,835 3,972 14,896

Corp. Data and Other Network Services 5,622 4,938 4,793 4,970 5,279 19,980

Data Center and ICT 818 738 768 652 677 2,835

LEC/Others 5,035 4,761 4,806 4,922 4,968 19,457

LEC 4,580 4,357 4,408 4,503 4,524 17,792

Miscellaneous 455 404 398 419 444 1,665

Fixed Line Voice - International/Domestic 2,640 3,144 2,952 2,819 2,923 11,838

Fixed Line Voice - International 1,744 2,203 1,998 1,842 2,013 8,056


Total Fixed Line Service Revenues 18,249 17,015 16,974 17,198 17,819 69,006

Non-Service Revenues (1)

800 920 1,028 936 838 3,722

Total Fixed Line Gross Revenues 19,049 17,935 18,002 18,134 18,657 72,728

Deduct:


Cost of Sales (741) (705) (772) (589) (551) (2,617)

Cost of Content (190) (76) (68) (72) (71) (287)

Writedown of Inventory and Provision for Doubtful AR (323) (310) (370) (334) (708) (1,722)

EBITDA 7,797 6,631 6,537 7,144 6,638 26,950

EBITDA Margin(2)

43% 39% 39% 42% 37% 39%

2017 2016


*Service revenues before intersegment elims

1Q 1Q 2Q 3Q 4Q FY

Fixed Line Service Revenues, Net

LEC 4,579 4,357 4,406 4,502 4,523 17,788

Fixed Line Voice - International 565 831 735 716 660 2,942


Home Broadband 4,134 3,434 3,655 3,835 3,972 14,896

Corp. Data and Other Network Services 5,611 4,924 4,779 4,957 5,267 19,927

Data Center and ICT 818 738 768 652 677 2,835

Miscellaneous 455 404 398 419 444 1,665

Total 16,927 15,435 15,500 15,871 16,260 63,066


2017 2016

46

Expenses

1Q2016

(Unaudited, Php in millions) Wireless Fixed Line Others Consolidated Consolidated

Operating Expenses

Compensation and Employee Benefits 1,943 3,548 - 5,487 5,231 5%

Repairs and Maintenance 1,852 1,456 - 3,160 3,671 (14%)

Selling and Promotions 1,089 427 - 1,508 1,718 (12%)

Rent 2,709 729 - 1,830 1,670 10%

Insurance and Security Services 310 178 - 462 463 -

Taxes and Licenses 620 349 2 971 1,322 (27%)

Professional and Other Contracted Services 1,597 1,713 16 2,698 2,174 24%

Communication, Training and Travel 199 144 - 304 301 1%

Interconnection Costs 1,709 1,322 - 2,091 2,436 (14%)

Other Expenses 73 132 - 204 309 (34%)

Cash Operating Expenses 12,101 9,998 18 18,715 19,295 (3%)

Depreciation and Amortization 4,430 3,120 - 7,550 7,158 5%

Asset Impairment 728 323 - 1,051 1,645 (36%)

Amortization of Intangible Assets 205 - - 205 272 (25%)

Non-Cash Operating Expenses 5,363 3,443 - 8,806 9,075 (3%)

Cost of Sales 1,905 741 - 2,646 5,126 (48%)

Cost of Content 119 190 - 309 107 189%

Total Expenses 19,488 14,372 18 30,476 33,603 (9%)

% Change1Q2017

47

Other Income (expenses)

1Q2016

(Unaudited, Php in millions) Wireless Fixed Line Others Consolidated Consolidated

Equity Share in Net Earnings (Losses) of Associates and Joint Ventures

Beacon - - 408 408 705 (42%)

Vega - - (269) (269) - -

Others (33) 67 20 54 (68) (179%)

Total Equity Share in Net Earnings (Losses) (33) 67 159 193 637 (70%)

Financing Costs, Net

Loans and Other Related Items (718) (1,325) (49) (2,031) (1,823) 11%

Accretion on Financial Liabilities (40) (20) - (60) (75) (20%)

Financing Charges (12) (4) - (16) (7) 129%

Capitalized Interest 166 41 - 207 101 105%

Total Financing Costs (604) (1,308) (49) (1,900) (1,804) 5%

Other Income (Expenses), Net

Gain on Sale of Properties - - - - 970 -

Investment Impairment (includes Rocket Internet Impairment) 127 201 (540) (212) (1,583) (87%)

Others 207 441 - 269 838 (68%)

Other Income (Expenses), Net 334 642 (540) 57 225 (75%)

Interest Income 60 199 111 309 255 21%

Gains (Losses) on Derivative Financial Instruments, Net 134 148 - 282 (497) 157%

Foreign Exchange Gains (Losses), Net (254) (41) (102) (397) 970 (141%)

Total Other Income (Expenses) (363) (293) (421) (1,456) (214) 580%

1Q2017% Change

48

ARPU

(1) Includes Mobile Broadband subscribers

Mobile ARPU, Net(1) :

Broadband ARPU, Net :

(2) Includes Corporate Fixed Broadband

1Q 1Q 2Q 3Q 4Q

Smart Postpaid 965 938 951 946 970 Smart Prepaid 104 112 110 102 104 TNT 71 80 77 71 75

Sun Postpaid 413 475 453 402 418

Sun Prepaid 78 80 81 84 85

20162017

1Q 1Q 2Q 3Q 4Q

Home Broadband (Wireless) 813 891 875 866 870

Fixed Broadband (2)

1,164 1,162 1,169 1,171 1,165

2017 2016

49

Earnings Per Share (EPS)

(Unaudited, Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted

Net Income Attributable to Equity Holders of PLDT 4,951 4,951 6,217 6,217

Dividends on Preferred Shares (15) (15) (15) (15)

Net Income for the Period Attributable to Common Equity Holders of PLDT 4,936 4,936 6,202 6,202

Weighted Average Number of Common Shares, End 216,056 216,056 216,056 216,056

EPS (Based on Reported Net Income) 22.84 22.84 28.71 28.71

Core Income 5,329 5,329 7,211 7,211

Dividends on Preferred Shares (15) (15) (15) (15)

Core Income Applicable to Common Shares 5,314 5,314 7,196 7,196

Weighted Average Number of Common Shares, End 216,056 216,056 216,056 216,056

EPS (Based on Core Income) 24.60 24.60 33.31 33.31

1Q2017 1Q2016

50

(1) Net Debt calculated based on nominal value of debts less cash and cash equivalents and short-term investments (2) Nominal value of total debt

Balance Sheet

March 31, 2017 December 31, 2016

(unaudited) (audited)

Total Assets 467,456 475,119

Nominal Value of Total Long-Term Debt 175,834 185,663

in US$ $3,501 $3,730

Less: Unamortized Debt Discount 686 631

Total Long-Term Debt 175,148 185,032

Cash and Short-Term Investments 39,953 41,460

Net Debt (1)

135,881 144,203

Equity 110,336 108,537

Total Debt(2)

/Equity 1.59x 1.71x

Net Debt(1)

/Equity 1.23x 1.33x

Total Debt(2)

/EBITDA 2.88x 3.04x

Net Debt (1)

/EBITDA 2.23x 2.36x

Consolidated

(Php in millions)

51

Debt Profile

Interest-Bearing liabilities

(US$ in millions) 2012 2013 2014 2015 2016 1Q2017

Debt Balance 2,851 2,353 2,920 3,429 3,730 3,501

Cash and Short-Term Investments 919 735 610 1,016 833 796

Net Debt 1,932 1,618 2,310 2,413 2,897 2,706

December 31,

2016

Carrying

Value

Unamortized Debt

Discount/Debt

Issuance

Face Value(Audited)

Face Value

Debt

PLDT $2,100 $6 $2,106 $2,212 ($106)

Smart 1,388 7 1,395 1,512 (117)

DIGITEL - - - 6 (6)

Total Debt $3,488 $13 $3,501 $3,730 ($229)

Change

(US$ in millions)

March 31, 2017

52

Ave. Period End

Forex rate, 1Q 2017 50.01 50.22

Forex rate, 1Q 2016 47.26 45.99 % of Peso depreciation vs US$ 5.8% 9.2%

Foreign Exchange Risk

Forex Impact on Core Income Forex Impact of B/S Revaluation

(in US$ millions)

US$ Revenues*

US$ Expenses

Cash Opex* (49.7)

Cost of sales (4.6)

Financing costs (12.0)

US$ Income before tax

Tax effect 19.8

Core Earnings

EBITDA

* Gross of interconnection costs amounting to: 17.0

Local exchange revenues (in million Php) 2,638.3

78.0

Forex sensitivity for every P1 change Conso - net of Elim

132.3

(66.3)

66.0

46.2

Debt (net of LT hedges & ST Forwards/options)*

Accounts Payable 212.2

Accrued Liabilities 165.0

Derivative Liabilities 2.0

Other Current & Non Current Liabilities 0.1

Total US$ denominated Liabilities 1,059.1

Cash and Cash Equivalents 294.1

Short-term Investments 163.5

Trade and other receivables 167.3

Derivative Assets

Investment in Debt Securities, Advances & Others 7.2

Total US$ denominated Assets 644.0

Forex Revaluation for every P1 change

* Debt 865.5

Less: LT hedges & ST forwards/options 185.7

Debt (net of LT hedges) 679.8

Conso

679.8

11.9

±415.1

Forex sensitivity for every P1 change on B/S

Revaluation (in US$ millions)

53

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 Exchange Act of

1934, as amended. The words “believe”, “intend”, “plan”, “anticipate”, “continue”, “estimate”, “expect”,

“may”, “will” or other similar words are frequently used to indicate these forward looking statements.

Any such forward-looking statement is not a guarantee of future performance and involves a number of

known and unknown risks, uncertainties and other factors that could cause the actual performance,

financial condition or results of operation of PLDT to be materially different from any future

performance, financial condition or results of operation implied by such forward-looking statement.

Among the factors that could cause actual results to differ from the implied or expected results are

those factors discussed under “Risk Factors” in Item 3 in PLDT’s annual report on Form 20-F.

For inquiries, please contact: PLDT INVESTOR RELATIONS (632) 816-8024 [email protected]

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