PLDT Inc.

Good afternoon and thank you for joining us today to discuss the company's financial and operating results for the full year of 2022. This is our first face-to-face briefing after almost two years, so we welcome those who joined us today at the venue and the 58 people who joined online. So a copy of today's presentation is posted on our website, and for those who have not been able to do so, you may download the presentation from www.pldt.com under the Investor Relations section. Kindly note that this briefing is being recorded. A podcast of this event will be available on our website after the call. QR codes for the presentation, the MD&A, the FS, and the podcast are on screen later and in the confirmation notices emailed to you. For today's presentation, we have with us our Chairman, Mr. Manny Pangilinan, Mr. Alpan Lillo, President and CEO of PLDT and Smart, Mr. Danny Yu, Group Controller, Mr. Shailesh Baidwan, President of Voyager, and Attorney Marilyn Aquino, who is our CORSEC and Chief Legal Counsel, as well as other members of the PLDT Management Team in the back. At this point, let me turn the floor over to Mr. Panlilio to begin the presentation.

Thank you Melissa and again welcome to this analyst briefing and nice to see all of you face to face. I guess the sequence of the presentation will be I have just a few slides to summarize what happened in 2022. Danny will come in to dig deeper into the financial highlights of the performance and Shaylesh will come in for My updates before we pass it on to MVP for the guidance for 2023. So I guess to start with, I think it's an understatement to say that 2022 wasn't a challenging year. It is challenging for PLDT and actually most of the companies had the same experience. But we started the year, as you recall, with recovery from Typhoon Odette, which really affected our operations significantly. In the first quarter, plus the war in Ukraine also affected a lot of the, as you know, all costs also went up during that time and the issues that we shared with you towards the latter part of last year. But despite that, I think 2022 was a great year for us in terms of performance and marked the start of our multi-year transformation. And I've been talking about it most of the year. We've made progress. Gains across each of the five key strategic pillars that we focused on, elevating customer experience, improving our standing as the Philippine premier workplace, establishing industry-leading operational excellence, growing profits and core business, and we're also looking at new businesses and capabilities that will also be attractive for us moving forward, and making PODT Group the region's leading ESG telco. So just to summarize the performance last year, I'm sure you've seen the disclosures already this morning, but let me just summarize. Telco Core grew by 10% to $33.1 billion. Our net service revenues was at an all-time high at $190.1 billion with both home and enterprise delivering all-time high also in terms of the revenues year-on-year. First time we breached EBITDA at 100.5 billion, which is an increase of 4% from the previous year. We've kept a healthy margin of 51% on EBITDA in 2022. Next page. So, again, I just wanted to delve down in some of the initiatives that we've been doing. Cosmic Spirits has always been our North Star, so we invested heavily, obviously, on the network. and really trying to deliver the best network experience both in fixed and mobile and this has been acknowledged by third-party entities in terms of both our fixed and mobile. Ability Home is the country's fastest fixed network based on the UCLA reports and same with Smart having the best mobile network in the country, the fastest mobile network, the best mobile coverage for the year 2022. Next is we obviously continue to support not only the requirements of our customers, but also supporting the president's initiative on really digitizing the Philippines. So part of nation building on our part, and PLDT has been involved in nation building for the longest time, but really supporting the agenda of the government in terms of digitization. One, and we've announced this early part of last year, Really build out of the 11 data center in Santa Rosa, which is expected to be completed end of 2023. And we would expect hyperscalers and customers to start enterprise customers to start using the data center first quarter of next year. So if you recall, we have 10 right now and we're expanding Makati and Paranaque to its full capacity. In fact, we'll be running out of racks sometime next year. So we're also trying to expand even Clark a little more. But all those combined, the 10 existing data centers combined, is smaller than the Vitro Santa Rosa data center that we're building that, again, should be completed by end year. So it doesn't only support the requirements of the hyperscalers and local market, but really we are positioning the Philippines as a transit hub to the region and making sure that we're able to, you know, we're quite in a very lucky position that there is an issue, a geopolitical issue in Hong Kong. And that's why everybody's going out of Hong Kong. And there's a moratorium of build out in Singapore due to its power limits in terms of carbon emission also for Singapore. So this becomes a very great opportunity for PLDT to become a regional transit hub. Obviously, in line with government's common power policy, we have signed four contracts on sale and leaseback. Last two were with Unity of the avoidance group, partnered with Partners Group, and Frontier, which is owned by KKR. So if you add those two contracts, plus the two contracts we completed last year, We have sold 7,500 of our sites and the total amount of that sale is 98 billion in total. Again, it's our strategy of asset light and trying to bring down cost to serve and really help the country narrow the digital divide. Obviously, with the towers and data center, it would be useless if we don't also invest in international cable systems, which we continue to do so. In fact, we've invested in three new cable systems, Jupiter, which went on live June of last year, AsiaDirect and Apricot cable systems, which will really meet the rising data capacity demands of our customers and the expected entry of hyperscalers into the country. Next page, please. So transformation doesn't only mean processes and platforms. Obviously, the most important one is infrastructure. We have re-articulated our purpose, vision, mission, values, and more importantly, signature behaviors that we want to espouse across the company. and we've launched our cultural aspirations that will enable us to deliver our transformation goals that will help serve us for long term. Next page. I'm proud to say that we are forging ahead towards becoming region's leading ESG telco in all matrices. We have improved our measurements, our performance, and at least locally, I think we lead The other telcos in the country, but our aspiration is really benchmarking ourselves against leading ESG leaders. And in this case, if you look at the chart on the right, both AIS and TRUE are high operators. And we'd like to bring about our rating of 59 to even high 80s, if not close to 90, maybe in the next couple of years. We will continue to do that and really progress in ESG. So for moving forward for 2020 and beyond, as you know, transformation is a journey. So we will continue strengthening the pillars that I mentioned earlier, customer centricity, making sure that we're able to consistently serve the right quality of service to our customers and continue to improve that. We will continue to take a look at how we can operate more efficiently. Excellent in operations, more stringent controls, especially with the learnings that we had last year in governance. Our best place to work, streamlining efficiencies across the org, putting the right automation, changing the way of working, more collaboration, more openness, and really working together as a company. We also will continue to push Growing our core business. Our core business remains to be very strong. The three business remains to be strong. The numbers continue to remain strong. And we hope to see that also in the succeeding years. And looking into new areas of growth for PLDT and SMART. What is the future state of PLDT? And that's something that we're starting to define now. And as I said, still continuing to focus on ESG, doing this responsibly. Our efforts and we do have initiatives to bring down emissions by 40% by year 2030. Lastly, I think before I pass to Danny, we will stay the course, continue the transformation, providing the best for our customers. Each pillar will focus on strengthening their own capabilities, offerings, and service from home. Wireless, individual wireless, and enterprise. For home, obviously looking at other products and services that they can offer, even beyond connectivity to our home customers, affordable connectivity, packages that cut across the social economic class of our customer base, and to continue to deliver good quality of service. For wireless, obviously, looking at how we can have rewarding and dynamic digital experiences. You know, you do everything on your phone, so extending it beyond just the mobile experience. We are working with home, hospitals. We have M-Well, for example, from MPEG, and really pushing digital transactions into your phone. And the promise is to bring, deliver epic experiences for all our mobile customers. And lastly, for enterprise, a lot of our customers, if not most of them, if not all of them, are looking into digital transformation. And we want to be the trusted partner for growth, a partner of choice by continually addressing their needs. And I think most of them and the aspiration also for enterprise together with EPLDT is to participate in a big way in the cloud space. Building the capabilities in cloud to be able to serve all requirements in the country, if not regionally, maybe in the future. And really refocus APLDT into pillars, data center and cloud in cybersecurity. So at this point, I'd like to transfer the mic to Danny for a more detailed presentation.

Good afternoon.