1Globe Telecom, Inc.2003 Results

2Disclaimer Disclaimer

This presentation contains certain forward-looking statements. These forward-looking statements generally can be identified by use of statements that include words or phrases such as Globe or its management believes,expects, anticipates, intends, plans, foresees, or other words or phrases of similar import. Similarly, statements that describe Globes objectives, plans or goals are also forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements.

3PresidentPresidents Messages Message

42003: Exceptional Year2003: Exceptional Year

Increased service affordability drives market growth:

! SIM prices fell 75%

! Low denomination reloads will expand market penetration

! More affordable SIMs and reload options improve retail trade penetration

! Lower priced and second-hand handsets

5Continued Robust Performance of Wireless MarketContinued Robust Performance of Wireless Market! Penetration level at

27%

" Breached initial target of 25% by 2005

! May reach 33-40% by 2005

Total Wireless Market (in Total Wireless Market (in 000)000)

LHS LHS Wireless Subscribers (Wireless Subscribers (000) RHS 000) RHS Penetration RatePenetration Rate* Company Estimates

6,357 10,957 15,171 22,460

8%

14%

19%

27%

-

5,000

10,000

15,000

20,000

25,000

2000 2001 2002 2003*0%

5%

10%

15%

20%

25%

30%

6Cumulative Wireless Subscribers (Cumulative Wireless Subscribers (000)000)

Record subscriber takeRecord subscriber take--up and postpaid dominanceup and postpaid dominancePostpaid Market Share*Postpaid Market Share*

6,014

3,5902,876

1,8782,2881,9841,9271,607

0

2,000

4,000

6,000

8,000

10,000

2000 2001 2002 2003Postpaid Prepaid Gross Adds Net Adds

6,572

4,588

2,661

Others25%

Globe75%

8,860

! 75% share of the postpaid market despite competition! Total wireless base reached 8.9 million at end-2003, total net additions of

2.3 million

* Company Estimates* Company Estimates

7WirelineWireline: Improved overall efficiency: Improved overall efficiency

!! The potential of corporate The potential of corporate data is more visible data is more visible

"" Captured close to 50% of Captured close to 50% of Call Center and BPO Call Center and BPO sector sector

!! Prices of bandwidth Prices of bandwidth stabilizing stabilizing

"" Dropping prices enabled Dropping prices enabled customer growthcustomer growth

(in P mn) 2003 2002

Service Revenues 3,502 3,492

EBITDA 1,710 1,590

EBITDA Margin 49% 46%

EBIT (820) (1,331)

WirelineWireline VoiceVoiceWirelineWireline DataData

8Improvement in Financial PerformanceImprovement in Financial Performance

(in P mn) 2003 2002 ConsolidatedService Revenues 47.5 39.8EBITDA 27.9 26.7

EBITDA Margin 59% 67%Net Income 10.3 6.9

(P bn) Wireless Wireline C2C ProvisionService Revenues 42.6 4.9EBITDA 25.6 2.2Net Income 11.9 (0.7) (0.9)

9CapexCapex to Revenue Ratio at 33% to Revenue Ratio at 33%

CapexCapex over Service Revenuesover Service Revenues

284

384

577

2001 2002 2003

U

S

$

i

n

m

i

l

l

i

o

n

s

CapexCapex Peaked in 2001Peaked in 2001

! Capex to Revenue Ratio at 33% ! Capex at US$284 million

52%

33%

114%

100%

0% 50% 100% 150%

2000

2001

2002

2003

10

CapexCapex per Sub Continues to Declineper Sub Continues to Decline

80100

170

250

2001 2002 2003 2004

CapexCapex per Sub (in US$)per Sub (in US$)

11

2004 Capex: US$350 Million2004 2004 CapexCapex: US$350 Million: US$350 Million

2004 2004 CapexCapex Breakdown per SBUBreakdown per SBU New Projects/CarryNew Projects/Carry--over Breakdownover Breakdown

Wireless93%

Others7%

New Projects

74%

Carry-Over26%

! Includes around US$90m carry-over from 2003! 93% of capex is for wireless expansion ! Goal is to keep our capex to service revenue ratio within 30-35%! Capex program to position ourselves to be more competitive in the mass

market arena

12

Starting 2004 with a BangStarting 2004 with a Bang

Touch Mobile P5.50 per min. (lowered from P6.50)

Globe HandyphoneP6.50 per minute

Prepaid: Introduced flat rate for Globe Handyphone

New postpaid flat rate structure " stimulate peak usage" provide one-rate convenience

offered to prepaidNew consumable plans" targeting specific customer segment" providing greater flexibility

13

Opportunities and Key ImperativesOpportunities and Key Imperatives

Key ImperativesKey Imperatives

Opportunities Opportunities

" Greater affordability" Strategic shift to more focus on the greater masses of

the population

" Continue building our network " Intensify marketing efforts and expand aggressively

outside Metro Manila" Further improve cost effectiveness " Develop and introduce more innovative products

14

Operational PerformanceOperational Performance

15

Key Wireless DriversKey Wireless DriversQuarterly Gross ARPU (P)Quarterly Gross ARPU (P)

Postpaid ARPU remains above P2,100 level Globe Prepaid Plus and Touch Mobile ARPUs steady around the P500 and P300 mark, respectively

2,2332,062 2,124 2,172 2,176

603 541 551 504 496

367 340 322 334265-

500

1,000

1,500

2,000

2,500

4Q02 1Q03 2Q03 3Q03 4Q03GHP Postpaid GHP Prepaid TM

16

Key Wireless DriversKey Wireless DriversQuarterly ChurnQuarterly Churn

GHP Postpaid and Prepaid churn stable at 2.9% and 3.7% respectively Touch Mobile churn improved to 6.8% in 4Q03

2.8%2.4% 2.6%

2.8%3.4% 3.4%

2.9%2.3%

3.7%

2.5%

4.4%

6.6%7.5% 7.5%

6.8%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%

4Q02 1Q03 2Q03 3Q03 4Q03GHP Postpaid GHP Prepaid TM

17

Key Wireless DriversKey Wireless DriversQuarterly SAC (P)Quarterly SAC (P)

9,335 8,7619,802

12,262

2,503286305307264456 183219207109

335

-

2,0004,0006,0008,000

10,00012,00014,000

4Q02 1Q03 2Q03 3Q03 4Q03GHP Postpaid GHP Prepaid TM

"" Acquisition costs maintainedAcquisition costs maintained"" Postpaid reached P12,000 in 4Q03; P9,800 for FY2003 Postpaid reached P12,000 in 4Q03; P9,800 for FY2003 "" Prepaid flat with P286 for Globe and P183 for Touch MobilePrepaid flat with P286 for Globe and P183 for Touch Mobile

18

Wireless DataWireless DataWireless Data (4Q03)Wireless Data (4Q03)

Regular SMS

Intl SMS Enhanced SMS

Average Daily Volume SMS (m)Average Daily Volume SMS (m)

Enhanced SMS slowly increasing contribution

Regular SMS still main contributor

20

3947

55

0

10

20

30

40

50

60

2000 2001 2002 2003

83%

12% 5%

LHS LHS Wireless Data Rev RHS Wireless Data Rev RHS % Wireless Service Rev% Wireless Service Rev

19

2003 2002

Subscribers 261,254 223,249

ARPU (P) 1,164 1,197Bus/Res Mix 20:80 24:76

% Prepaid & Payphones 34% 24%

Monthly churn 1.6% 2.6%

Wireline VoiceWireline Voice

Wireline ServicesWireline Services

Wireline Data Revenues (P m)Wireline Data Revenues (P m)As of 2003 2002

Internatl Lease 555 421

Domestic Lease 544 438

Internet 308 214

Others 33 11

Total 1,440 1,084

"" 2003 subscribers up 17% y2003 subscribers up 17% y--oo--yy"" WirelineWireline Voice ARPU flatVoice ARPU flat

"" Data revenues up 33% yData revenues up 33% y--oo--y due to y due to rise in international lease and rise in international lease and internet contributioninternet contribution

20

ILD Revenues 4Q02 1Q03 2Q03 3Q03 4Q03(P m) 3,124 3,125 3,220 3,322 3,475

Quarterly ILD Minutes (m)Quarterly ILD Minutes (m)ILD Services ILD Services

" 16% increase in full year minutes " 28% of 2003 total service revenues

412 447 439 423 409

060

120180240300360420480540600

4Q02 1Q03 2Q03 3Q03 4Q03

21

NLD Revenues 4Q02 1Q03 2Q03 3Q03 4Q03(P m) 650 519 509 519 483

Quarterly NLD Minutes (m)Quarterly NLD Minutes (m)NLD Services NLD Services

119 114 116 118126

0

30

60

90

120

150

4Q02 1Q03 2Q03 3Q03 4Q03

" 11% decrease in full year minutes " 4% of 2003 total service revenues

22

Financial PerformanceFinancial Performance

23

Income StatementIncome Statement

! 20% growth in service revenues

" Strong EBITDA margin at 59%

" 50% increase in Net income

(P m) 2003 2002

Service 47,535 39,761 Non-service 1,943 6,039

Net Operating Revenue 49,478 45,800 Operating Cost & Expenses (21,619) (19,096) EBITDA 27,853 26,704

Depreciation & Amortization (12,161) (10,888) EBIT 15,692 15,816 Non-operating Expense - net (4,835) (6,616) EBT 10,864 9,200 Provision for Income Tax (519) (2,282) Net Income 10,345 6,918

EBITDA Margin (on Service Revenue) 59% 67%

24

Balance SheetBalance Sheet! Total Asset base at P142bn

! Consolidated cash & cash equivalents at P15bn

! Net Receivables at P18bn ! Net subscriber receivable

days at 48! PPE rose to P101bn with

continuous expansion

! Total Liabilities at P91bn! Total Debt at P56 bn, 49%

effectively in pesos! 30% of net revenues is US$-

linked! Total Stockholders Equity at

P51bn

(P m) 2003 2002

Current Assets 37,316 39,231

Property and equipment - net 101,178 96,270

Other Assets 3,393 3,692

Total Assets 141,886 139,193

Current LiabilitiesShort-term debt 9,280 7,430 Other current liabilities 26,942 23,269

Long-term LiabilitiesLong-term debt 47,109 51,144 Other long-term liabilities 7,701 6,494

Shareholders' Equity 50,854 50,856

Total Liabilities and Equity 141,886 139,193

25

Leverage ProfileLeverage ProfileGross Debt / EBITDA (x)Gross Debt / EBITDA (x) Debt / Equity (x)Debt / Equity (x)

EBITDA / Gross Interest (x)EBITDA / Gross Interest (x) Debt / Total CapitalizationDebt / Total Capitalization

3.552.98

2.19 2.02

0.000.501.001.502.002.503.003.504.00

2000 2001 2002 2003

3.20

4.64

6.19 6.18

-

1.002.003.004.005.006.007.00

2000 2001 2002 2003

1.44

1.07 1.15 1.10

-

0.200.400.600.801.001.201.401.60

2000 2001 2002 2003

59%52% 54% 52%

0%10%20%30%40%50%60%70%

2000 2001 2002 2003

" Improvement in leverage profile as EBITDA and Equity growth outpaced debt " Interest Cover decline due to higher interest expense in 2003

26

2004 Funding Requirements2004 Funding Requirements2004 Funding Requirements

! Around 50% of planned capex for 2004 will be funded with internally-generated cash flow

! Funding requirements" US$30m drawdown from existing term facilities" US$150m new facilities" US$100m refinancing

27

Debt Repayment Profile Debt Repayment Profile

" Average principal repayment over the next 3 years (2004-2006) is US$155 million

" Call Option in 2004 and 2007 on US$220m and US$200m bonds, respectively

438

108158144162

0

200

400

600

2004 2005 2006 2007 2008-2012

Debt Maturity Schedule (in US$ millions)Debt Maturity Schedule (in US$ millions)

28

First Semi-Annual Cash Dividend: P18 per shareFirst SemiFirst Semi--Annual Cash Dividend: P18 per shareAnnual Cash Dividend: P18 per share

! Record Date: 18 February 2004! Payment Date: 15 March 2004

Dividend Policy

! To declare cash dividends to common shareholders on a regular basis

! Payout rate of about 50% of prior years net income" Payable semi-annually in March and September

! Subject to annual review by Board of Directors

29

THANK YOUTHANK YOU