PLDT Inc.

Afternoon, everyone. Thank you for waiting. Apologies for that delay. Thank you for joining us today. My name is Gina Nograles. I'm the Head of Investor Relations here at PLDT. And it's my pleasure to welcome you to our first half 2026 Financial and Operating Results Briefing. So joining us today to share insights into PLDT's performance and strategic direction are PLDT Chief Operating Officer, Mr. Butch Jimenez, our OIC CFO, Mr. Leo Posadas, We also have here with us, SBP and head of consumer home business, Mr. John Palanca. We also have our head or OIC for smart communications, Mr. Lloyd Matagoto, and our chief legal counsel, Attorney Joan De Venecia-Fabul. You'll also be joined later by our other key officers for our enterprise business as well as our data center business. So before we begin, I'd like to remind everyone that we will have a Q&A session after the presentation. You may submit your questions via the MS Teams Q&A panel. Thank you also to those who have submitted the questions beforehand, and we'll make sure you keep those during the calls. So to start, I'd like to invite our Chief Operating Officer, Mr. Boiximedes, to walk us through PLDT's financial and operating performance.

Good afternoon, everyone, and thank you for joining us today. I'll take you through PLDT's first half 2026 financial and operating results. For the first half, gross service revenues grew 2% to $108.7 billion, while service revenues net of introduction cost increased 1% to $97.8 billion. Both were tempered by softer consumer spending and wireless and the lagged revenue impact of first-quarter installation constraints in homes, partly offset by continued enterprise growth. Cash opex, subsidies, and provisions were broadly flat at $41.7 billion, supporting EBITDA of $56.1 billion and a stable 52% margin. Below EBITDA, depreciation and amortization increased 6%, Reflecting our past investments in network and infrastructure. Total core income declined 2% to $16.6 billion, while stable financing costs, contribution from Maya and asset sales helped stabilize core income at $17.3 billion. Overall, the business remained resilient with stable margins and continued financial discipline. Looking more closely at the top line, consolidated service revenues were up 1% to $97.8 billion for the first half. Excluding legacy services, revenues grew 2% to $89.2 billion and now account for 91% total. Wireless revenues were broadly stable at $42.1 billion, with mobile data and fixed wireless access grew to $38.7 billion. Home revenues were $30 billion, down 1%, reflecting the revenue lag from the constraints we experienced in the first quarter. Enterprise remains our strongest growth driver, with revenues up 5% to $24.8 billion by corporate data and ICT. So while overall growth remains measured, the mix continues to shift toward data and ICT services. and we now take you through the performance of each of our major business units. Starting with wireless, where we saw an improvement in trends through the second quarter. Wireless consumer revenues were $42.1 billion, broadly stable year on year. Data and fixed wireless access revenues grew 2% to $38.7 billion and now account for 92% of wireless consumer revenues. More importantly, The trajectory within the first half has improved. Monthly year-on-year top-ups moved from negative 3% in March to flat in April and May and positive 1% in June. This brought wireless revenues back to roughly flat for the first half. The usage numbers backed this up. Active data usage reached 24.1%. Data traffic increased 12% year-on-year to 3,273 petabytes. And 5G devices increased to 12.5 million, now representing 21% of the device base. Our pools also remain resilient despite the softer consumer spending environment. So, wireless started the year under pressure and is ending the half on firmer footing. A lot of that comes down to how we're approaching pricing and customer engagement. Let me show you what we're doing on that end. Two things are driving better monetization. First, we are being more deliberate on pricing, selectively moving some prepaid offers to higher price points while adding more data and benefits so customers still see good value. For example, the selected prepaid offers moved from 99 pesos to 109 pesos with additional data in the package. Second, we are getting much better at engaging individual customers Our hyper-personalized offers use each customer's behavior and usage patterns to make promotions more relevant. The results have been encouraging. App-based hyper-personalized offers are converting at as much as 5% versus around 0.2% for generic SMS broadcast offers. That's as much as 25 times higher. These actions on healthiness support higher spend while keeping our foods resilient in a softer consumer environment. Our network experience also remains a key strength. In OpenSignal's latest July report, Smart earned eight Mobile Experience Awards with outright wins across dating, voice apps, 5G upload, and 5G coverage, and joint wins in video. What's worth noting is that OpenSignal looks at coverage in the places people live, work, Smart's network performance was also recognized in OOPLA's Speedtest Awards for the first half of 2026. Smart was named the Philippines' fastest mobile network, best mobile network, and best mobile radio experience. Sharper pricing Thank you for joining us today. and when it shows up meaningfully in revenue. Each new installation adds to the recurring revenue base so the benefit builds as new subscribers accumulate. That's why the first half number still carries. From the installation constraints we saw in the first quarter, the OSS migration slowed how quickly customer orders were converted into completed installations. The good news is that we started seeing recovery signs in the second quarter As insulation volumes picked up and post-pay net ads turned positive in May, on fundamentals, ARPU remains best in industry at 1,330 pesos for the first half, though down from a year ago. Lend-in churn is industry-leading at 1.8%, with post-pay churn improving to 1.4%. Lastly, fiber net ads improved to 97,000 in the second quarter, More than double the first quarter print. Let me show you those operating indicators in more detail, because that's really where the recovery story is clearest. You can see the improvement more clearly in the operating indicators. Postpaid installations increased steadily through the second quarter, with June reaching the highest monthly level so far this year. As installations throughput improved, Post-paid net additions turned positive for May. Churn also remains well-managed, with monthly post-paid churn at 1% in June. We also continue to strengthen the whole proposition beyond connectivity. Fiber on the all brings fiber together with Signal, HBO Max, and Smart Data in one package. The idea is to give customers more value from their relationship and support deep And we continue to improve the service experience. Store Genie, our AI-enabled frontline service tool, helps our customer-facing teams resolve inquiries directly and much faster. Inquiry resolution is now around 10 times faster, ticket escalations have been cut by half, and more than 61,000 hours of customer waiting time have been avoided. So the operating recovery is already underway, As installations rebuild their recurring subscriber base, we expect revenues to follow with the usual land. Let me now turn to enterprise, which was our strongest growth business in the first half. Enterprise revenues increased 5% to $24.8 billion, while corporate data and ICT revenues also grew 5% to $18.4 billion. The mix continues to shift toward higher growths, ICT revenues increased 22% in the first half, led by 35% growth in tech services. This more than offset the continued decline in legacy services. We are also seeing good growth across underlying infrastructure base. Fiber lines increased 6%, SD-WAN lines grew 18%, and contracted third-party racks across our virtual data centers increased 6%. The key part of the strategy is one enterprise. We bring together PLDT, SMART, EPLDT, PLDT Global, and Vitro to offer clients a broad set of solutions under one relationship. Increasingly, our wins involve more than one part of the group, combining connectivity with cloud, managed IT, cybersecurity, and data center services. That breadth is reflected In the growth we are seeing across the different enterprise businesses. You can see that momentum across the different businesses supporting our enterprise customers. PLDT Global's enterprise revenues grew 30%, supported by hyperscaler and carrier demand for international connectivity, cable capacity, and co-location. Smart's enterprise business grew 15%, driven by services such as A2B, GIDA, Enterprise, and IOT. EPLDT tech services grew 37%, reflecting continued demand for managed IT, cloud, cybersecurity and customer experience solutions. And Bitcoin data center revenues grew 13%, supported by enterprise, cloud and hyperscaler demand. What ties these businesses together is the ability to serve more of our customers' digital requirements from connectivity All the way through to the cloud, cybersecurity, and data centers. I'd like to spend a little more time on Vitro, where we see a particularly strong growth runway. Vitro data center revenues grew 13% in the first half, supported by demand from enterprises, the public sector, and hyperscalers. Today, Vitro has approximately 34 megawatts of activated ID rate capacity across its portfolio, making us the largest data center operator in the Philippines by live co-location IT capacity. And we have significant room to scale from here. The next 10 megawatts at Vitro Santa Rosa are targeted for activation by the end of this year. Beyond that, identified expansion opportunities across Santa Rosa, Clark, and Cebu too could take total IT-ready capacity to 62.4 megawatts. That represents more than 80% growth from our current activated capacity. We also see a supportive backdrop for the industry. Executive Order 119 reinforces the importance of secure in-country boosting for sensitive government data. More broadly, it strengthens the case for building digital infrastructure locally and could support further cloud and hyperscale investment in the Philippines. Vitro is well positioned for that opportunity given its track record, scale, nationwide footprint, and its integration with DLTT's broader ecosystem. We are also continuing to build a platform to global standards. Vitro Santa Rosa is DIA 942 rated 3 and LEED Gold certified, while S&P Global Ratings assign Vitro a light green shade of green assessment. Turning now to operating expenses. Cost management remained disciplined in the first half. Total cash expenses, subsidies, were slightly lower at $47 billion, despite continued investments to support the business. The main increases came from repairs and maintenance, up 3%, and contract-specific service costs, which rose 26%, in line with higher project activities. Subsidies were also higher, Reflecting our particular push to drive device adoption and customer engagement. These increases were largely offset by lower compensation and benefits, selling and promotions, and taxes and licenses. Overall, we were able to keep the cash cost pay stable while continuing to fund the areas that support growth and customer experience. This cost discipline helped preserve margins, which I'll discuss on the next slide. During the EBITDA, the semestral trend shows a steadily expanding earnings base. EBITDA reached $56.1 billion in the first half, marking the fifth consecutive semester of growth from $53.9 billion in the first half of 2024. This has been supported by a combination of steady revenues and disciplined cost management. This allowed us to maintain EBITDA margin at 52%, Broadly consistent with the levels we have sustained over the past several periods. Moving below EBITDA, DelcoCore income was $60.6 million, down 2% year-on-year, mainly reflecting the higher depreciation and amortization. Maya continued to contribute positively, with PLDT's share of core income reaching $559 million for the first half compared with $406 million last year. My second quantum contribution was lower, maybe due to one-time accounting adjustments rather than a weakening in the underlying business. Excluding these effects, the contribution would have been stronger. We also recognized around $0.3 billion from asset sales. These helped stabilize core income at $17.3 billion. Repointed income was $16.4 billion, around 6% year-on-year, losses in foreign exchange and derivatives, which moved from a net gain last year to a net loss in the first half of 2016. Overall, while higher depreciation weighed on telco core earnings, my life asset sales helped cushion the impact on core income. Turning to CapEx, we continued to bring investment intensity down while maintaining focus on growth and network quality. CapEx for the first half was 20.7 billion

from $27.4 billion last year.