Thank you for joining us today. I'm Jinggay Nograles, I'm the Head of Investor Relations here at PLDT. And it's my pleasure to welcome you all to our full year financial and operating results briefing. So joining us today to share insights into PLDT's performance and strategic direction are Butch Jimenez, he is the PLDT Chief Operating Officer. Joining us right now is Smart Communications Chief Operating Officer, Boy Martirez. We also have here PLDT, Chief Financial Officer Mr. Danny Yu. And our Chairman and CEO, Manuel V. Pangilinan will be joining us later during the presentation. So before we begin I'd like to remind everyone that we will have a Q&A session after the presentations. [Operator Instructions] So to start I'd like to invite our Chief Financial Officer Mr. Danny Yu, to walk us through PLDT's financial performance for 2024. Danny?

Yeah. Good afternoon, everyone, and thank you for joining us today. Allow me to walk you through PLDT's 2024 financial and operating performance. Amid a dynamic and competitive landscape we delivered consistent top line growth and stable margins. Let's start with the financial highlights. Our service revenue grew 2% year-on-year to PHP 194.7 billion driven by Fiber Mobile data and Enterprise ICT. On a gross basis revenue rose by 3% to PHP 208.4 billion. EBITDA expanded by 4% to PHP 108.5 billion on the back of revenue expansion and operating efficiency. Our EBITDA margin remained strong at 52% underscoring our ability to sustain profitability even as we continue investing in network leadership and innovation. Telco Core income grew by 2% to PHP 35.1 billion reinforcing earnings stability and financial resilience. Our focus remains on expanding revenues managing costs and improving cash flow generation in 2025. PLDT service revenue growth reflects consistent demand across key business segments Mobile Data Fiber and Corporate data and ICT which now account for 88% of total revenues continued to expand offsetting legacy revenue declines. Excluding legacy services total revenues grew by 5% emphasizing our shift towards data-driven and digital services. Moreover, our growing segments more than offset the drags from legacy services with Individual Mobile Data up by 5%, Home Fiber by 6% and Corporate data and ICT services by 5%. We also expect legacy revenues drag to moderate supported by customer migration to these segments. Total revenues for our Individual segment rose by 2% to PHP 83.5 billion led by Mobile Data which rose by 5% year-on-year and a strong 7% in the fourth quarter. Mobile data now accounts for 89% of segment revenues. Key metrics have also increased. Blended ARPU moved up 9%. Average monthly mobile data usage per user grew 5% while…

Thank you, Danny. All right. So, now to provide further context on our operational performance and key business unit developments, we will hear from our business unit heads. So, first Mr. Boy Martirez, Chief Operating Officer of Smart will discuss developments in our Wireless business. Then after him Jeremiah De La Cruz, SVP and Head of our Home business will provide an update on his segment. And lastly, Jojo Gendrano, SVP and Head of Enterprise will walk us through the latest in our Enterprise segment including our updates on our data center and ICT initiatives. Boy over to you.

Thank you, Jinggay. A pleasant good afternoon to all our partners from the investment analyst community. Today I'm going to be talking about unlocking Wireless growth, particularly on our 5G and I will also be touching on AI and a smarter way to monetize data. I will speak on two major points. The first one is about scaling our 5G adoption and therefore monetization. The second part will be about AI. On the first part, I will be touching on our rollout, particularly what we call 5G cities and how together with combining it with affordable phones, 5G phones will result in expanding mass adoption. The second point that I will take up along this first set of issue is about monetization, okay? And then I will talk about the 5G migration and of course, the 5G devices. So, on the first part on 5G cities, our philosophy is to basically not roll out on the basis of just pure reach because that will require a lot of CapEx. A more sensible thinking around this is to ensure that we roll out on the basis of a home-work-play seamlessness. Now, maybe that may not give you enough reach, but it will give you a more meaningful way of providing a 5G experience for all the people who would adopt 5G. So, alongside that is a combination of putting 5G devices. That kind of rollout plus the 5G devices is I think in our view the best way that will provide you the adoption that we want -- that we are desiring. The second point to talk about 5G and monetization, is also the issue of experience-based monetization. Now, what do we, mean by that? Experience-based monetization is something that can only be delivered, by innovation. Innovation, because it is actually…

Thank you Boy. And then we have Jeremiah next for our Home segment.

Good afternoon everyone. I'd just like to touch on two things for Home and it's really around innovation. At the end of November 2024, PLDT leveraged our advantage as an integrated telco by launching a service for the Home that uses both our fiber as well as our mobile network. A first in the world it provides connectivity to the home utilizing PLDT's extensive XGS PON network as well as our mobile network. What it does is, it ensures that our customers are able to actually have connectivity in the home when they want it how they want it and making sure that that reliability actually remains for them. This is the very first service, it's the very first time this service has been made as an integrated service. So seamlessly bringing those two technologies together so that the customers don't have to worry about which technology or which service that they're actually using. In addition, PLDT has actually taken innovations not just externally but actually internally as well. I just wanted to build on what Boy was saying which is actually around AI and embracing AI. We've actually embraced AI within PLDT Home in two main areas at this point in time. It really is the tip of the iceberg. So we've embraced AI in its application with regards to collections. So historically collections is something that is done by people actually picking the phone up calling and it can be actually quite a tedious exercise. And sometimes you have a mixed bag always with regards to the results. Very exciting that we've been able to deploy AI to help us in this particular area and we have seen very, very promising results. Not only has it actually yielded the same performance if not better, but it has actually…

Thank you Jeremiah. And lastly we have Mr. Jojo Gendrano, who will be talking about our Enterprise business as well as our data center initiative.

Thank you very much and good afternoon. Our Enterprise business remains committed to help our customers through innovation. So we're excited to provide value through the capabilities of our network and of course, our people. For large-scale operations in remote areas needing resilient infrastructure 5G mobile private networks are being designed for select customers particularly in mining and ports. In dense locations, 5G slicing, through 5G standalone, enables a differentiated network for use cases like public safety and security, smart meters and smart cities. We have a robust -- a very robust partnership ecosystem with known brands in 5G, that we continue to collaborate with together with our customers to deliver solutions that matter. On the next front, we're also excited to announce that we are the first Philippine operator to achieve GSMA Open Gateway certification, for the number verification API. So what does this mean? In using APIs to expose the capabilities of our network, mobile applications are able to silently and securely authenticate a user or a transaction without the need for a one-time PIN. We are already working with a banking ecosystem including aggregators, in this area which is called, network APIs. It's likely one of the major topics in Mobile World Congress next week, in Barcelona. And we are excited about the potential for the new revenues and to add value to our customers. And it's just the start. So number verification is one of the multiple APIs, that the industry through the GSMA have developed and we will be launching more in the next few months. Next slide please. Also, VITRO Santa Rosa is now live, as evident by the picture on the slide. And our backlog right, located in an optimal facility for hyperscale data centers it was energized last year with an anchor…

Thank you, gentlemen. And I'd like to acknowledge the presence of our President and CEO, Manuel V. Pangilinan, as well as our Corporate Secretary, Attorney Marilyn Aquino. All right. So with that, I'd like to move on to Q&A. I'd like to emphasize that while 2024 was a year of resilience and execution, we remain focused on our long-term growth priorities. Our network leadership and digital transformation efforts will continue to be at the core of our strategy as we drive sustainable value creation for our stakeholders.

Now we'd like to open the floor to your questions. And for those joining us on site please go ahead and raise your hand. We'll provide a microphone for you. Please state your name, as well as your company affiliation and you can go ahead and ask your questions. For those joining us online, please submit your questions via the Q&A panel. You may also raise your hand, and we can unmute you as well. Thank you. While we wait for some questions, I did get a few questions emailed to me prior. So this first question is regarding the Konektadong Pinoy Act. Someone posed a question that some industry stakeholders have opposed the bill due to national security and digital fraud concerns. What is PLDT's stand on this bill? And how do you see this impacting competition especially from foreign players?

Konektadong Pinoy mainly focuses on open access. Even without the bill, we're already providing open access to some data transmission providers, including Converge and the like. So our only request is that the bill basically treat everyone without discrimination and equally. And so we are supportive of the government's effort to provide open access. And our hope is the law when it is actually passed will be crafted such that there are reasonable restrictions and protection to those who own the assets. And what else? We also would like to be treated equally with the data transmission providers, because currently our business -- around 78% of our business is already data transmission. So in that sense any protection being provided to the data transmission providers should also be provided to us. And I think that's basically our position. And we are going to work with the government on this law and we are going to also work with the government and the regulators in respect of the promulgation of rules and regulations in the event the law is passed.

Thank you Attorney Marilyn. Any questions from the floor? All right. I'll move on to some of the other questions that were sent to me beforehand. This is for the Home segment. PLDT Home has maintained an industry leading churn rate of 1.7% and stable ARPU. What are some key initiatives driving customer retention? How sustainable are these trends? And can you talk in more detail about your push for prepaid fiber?

Thank you for the question. I think it's very obvious that in the market, there is actually quite a lot of price competition happening. And you can actually see that with the advent of lower price points, as well as prepaid offerings. PLDT Home is committed to making sure that we have relevant offers for the different segments in the marketplace. So we've been very, very focused in making sure that we have a competitive offer at all of the different segments, whether that's the entry level, mid, as well as the high end. So some of the initiatives that we've been embarking on at PLDT Home is making sure that we've actually given the best proposition and package available for all of our customers. That includes actually increasing the speeds on certain price plans making sure that customers are aware of new offerings. And all of these initiatives combined have actually helped us sustain our ARPU. If you look at the level of competition and the level of commoditization over the last few years, if you go back to 2020 for PHP 1599, you would only get 50 megabits per second. Today, you're looking at 300 megabits per second, right? So there actually is quite a lot of commoditization happening in the marketplace. And PLDT being the incumbent has had actually the most amount of price pressure applied to us. We've been able to sustain our ARPU simply because we've continued to provide value for our customers. So making sure that they actually have the right plan, the relevant plan and continuing to enrich the offerings that we have available for them and sustaining that price point. Now, that includes not just increasing speeds, but making sure that we also provide additional services for them. In fact today, a…

Thank you, Jeremiah. Let me just go through the Q&A box. Here I think we have some questions in. All right. From Zhiwei Foo of Macquarie, can we discuss your Mobile business? How did PLDT drive the higher ARPU quarter-on-quarter for 4Q, whilst your peers saw a decline? How do you see consumers being able to take higher ARPUs once price competition eases?

That's a question for Mobile. Let me tackle that. Fourth quarter saw us in a situation where we were able to build data and then it's a question of monetizing it. And we monetized it on the basis of the fact that we have upskilled our sales and marketing infrastructure. We've rolled out our 5G network in the work-home-play regime that we talked about a while ago and plus the fact that we have 5G phones with us. So all of that confluence to having been able to achieve what we were able to achieve in the fourth quarter. I cannot speak for my competitors but probably it looks like we did better. So I hope I answered.

Yes. Thank you, Boy. All right. We have another question here on the Q&A box from Vovan Lim [ph]. May I get your thoughts on why revenues of Fiber broadband may be falling behind industry growth? How is the expected unit economics for Always On package given that it's just PHP 299 a month? A – Jeremiah De La Cruz: I'll start off with the question on the speed of the market. So we saw some challenges at the beginning of 2024 and we actually had to make some adjustments with regards to some of the go-to-market activities we had as well as accelerate the rollout. As I think you would all remember 2023 was a challenging year with regards to network rollout for us. So we wanted to accelerate that network rollout. So with the combination of some of the adjustments we've made as well as the rollout, we've actually seen the second half of 2024 perform much better. If you look at our net adds, we saw a 190% increase in the number of net adds that we had in the second half, which is actually helping to contribute an improvement in our overall Fiber growth as well as our Home performance. If you deep dive into the performance of Home in 2024, you'll see that it was actually quite flat in the first half but we saw an increase coming through in the third as well as the fourth quarter. In fact, the trajectory is continuing through and we'll expect that to continue on, especially as we have seen the net adds increase quite substantially in the third as well as the fourth quarter. Now we're going to continue to support that. We have a rollout that's planned as well and focusing on delivering in the first…

Thank you. I have a question here about our legacy drags. How much longer will legacy businesses be a drag to top line growth? Any initiatives being done to migrate or sunset these businesses and migrate customers? I think that's a question for both our Wireless segment -- or actually all our segments actually. So I don't know who wants to take it first.

Well on the network side, when it comes to our legacy services right, especially on the fixed line, we are accelerating the migration of all our copper subscribers to fiber. In fact you're going to see a very strong reduction in our copper subscribers even just in the month of January alone. We have a mandate to significantly do the -- finish the migration by midyear or third quarter of next year. And so that's a target that we're going to be going after. And so we will see that drag of legacy services continue to decline and hopefully, by next year will be completely wiped out. But acceleration of migration will happen this year and will almost be completed.

On that our target is, to sunset basically the lower-generation technologies and do it within this year. Helping that would be basically the availability of handsets, particularly on 4G and 5G, by which we would be able to migrate our existing subscribers on these lower-generation technologies to higher-generation where hopefully decisively, there will be better ARPU and better revenue. And I think that helps into the situation of the industry as well.

Thank you, Boy and thank you, Butch. I have another question here, let me just -- from Brian Lim of Guild Securities. Can you clarify the 11% increase in Fixed Line from 2023 to 2024? Is this a result of the 40% bundled packages I guess for the fiber acquisitions? If not can you expand on this a bit? So I guess why is voice growing? Yeah. So I think it's the growth in Fixed Line voice. So it seems to be growing from 2023 to 2024. Is it because it's part of the bundled Fiber product yes.

Component of voice that may be growing. And I think you've already hit it the nail on the head there. It's really a cost allocation that we have as we sell more and more bundled products and those bundled products as we sort of shared was about 40% of our customers are availing of a bundled product. Whether that's bundled with Cignal as well as with voice and also mobile there is a small component of that that's actually allocated. So we'll be looking that's really that's the driver. But what's most important for us is then looking at the difference between copper as well as our Fiber business because voice in itself is not necessarily a bad thing right? Voice in itself is not necessarily a bad thing providing it's actually conducted or served over our fiber network. Moving forward, it will be our fiber network that will remain with us for the next 10, 20, 30 years, right? It's really what will be sunset is copper right? So that's why we're really, really focused in on moving our customers as Butch had mentioned migrating as many of our customers over from our copper network to our fiber network. We are seeing -- naturally we see and we talk about the decline of voice because we are seeing customers move away from voice-centric services to data-centric services and that's predominantly broadband especially with voice over IP right? We will see that. But this -- within fiber itself that movement between the two is really just a cost allocation amongst the different product lines.

Thank you Jeremiah. Okay. I have a raised hand here from John Te of UBS. You are unmated, go ahead.

Hi. Thank for the opportunity. Three questions for me. First is any preliminary guidance for 2025 from the Chairman? Second is on Mobile. While it was very strong we did see some subscriber losses on prepaid in the fourth quarter. Any specific reason or any color on that? Third on broadband again a strong result but the momentum the gross the net add momentum slowed from about 100000 in the third quarter to about 40000 in the fourth quarter. Any seasonality or any particular reason why? That's it for me.

Yes we can start with the guidance.

Well, at this point, I don't think we are comfortable about giving any specific guidance for core income for 2025. We do know that -- we do have targets. We do have budget numbers and they're showing increases in revenues and in profitability for 2025. But we'd like to be better prepared I think or better certain more certain about how our numbers will spin out especially core profitability for the full year 2025. We've seen some softness in the market not only telcos but also in the power business and so forth. And we're not quite sure why that is so at this stage. So I think it's best to be prudent and perhaps after the first quarter when we have a better reading of the economic situation in this country then we can provide some guidance as to the full year view of core income for PLDT Inc.

Thank you Mr. Chairman. I think the next question was regarding our Mobile subscriber base and the decline in the fourth quarter. So we saw some subscriber losses on prepaid in the fourth quarter. Any specific reason why that occurred?

Well to that question that was just a result of the cleanup on subscribers. So -- and that's a year end cleanup as our CFO was saying.

All right. And I think third is the broadband. Jeremiah?

Thanks. A very similar to what Boy mentioned we do -- seasonally do some cleanups with regards to subscriber numbers. And so you'll see that show a seasonally low figure. We are seeing though I can share with you that our gross additions over that period as well as our migrations actually remained steady. There are -- typically we do see some challenges in the fourth quarter simply because of the Christmas period. As you know people's accessibility is not the same. So you see a lot of December actually take a hit. However, I can share with you that we did see our gross additions continue to grow in the fourth quarter. And in fact that has continued through to 2025. So we're anticipating a much, much stronger 2025 carrying that momentum in from the second half of last year and building on the third quarter of last year as well.

Thank you. Thank you, Jin. All right. We have time for a few more questions here. This is on GPU-as-a-Service. Can you speak more about that product offering? What has demand been like now that it has been launched? Any enterprises open to this type of service?

Sure. So thank you very much for that question. Our GPU-as-a-Service offering in ePLDT is still in its fairly early stages. So we have a modest farm in VITRO Sta Rosa that actually has active workloads and active use cases on those GPUs. Too early to say on the specific pricing model once we get to full launch but this is an area that we intend to be very aggressive in and the pricing that we have to come up will have to be competitive. We've been in discussions with a lot of enterprises. We see a lot of demand coming and it's important that we continue to work together with them not just on providing the GPUs but also sitting down with them and really working together with them on the use cases. On top of that we also see a lot of activity from other GPU-as-a-Service providers that want to come into the Philippines. They are welcome and we are welcome to host them in VITRO Sta Rosa. Thank you.

All right. We have about a minute left in the briefing. Any questions from the floor? Derrick?

Hi. This is Derrick from CLSA. I have several questions. First on the FinTech side. I saw a Bloomberg headline earlier. PLDT would like to purchase the KKR stake on Maya. How do you intend to finance this buyout if ever? And is it strictly going to be through PLDT? That's number one. Number two on the asset sales is there a possibility for PLDT to monetize non-tower or non-data center assets? I'm talking about the legacy assets you have in line with the question earlier about the legacy migration. That's all.

Well, I think there's no certainty yet that KKR as a seller, I think we do know -- who asked this question. We do know that they have engaged two American banks to scan the market and get an idea of what the value of Maya might be as a whole. And in the next few weeks or so, they have undertaken to give us an indication of what that valuation is going to be and probably themselves assess whether the value they get from the market is within their price range and whether we ourselves would be prepared to buy certain shares from them. We did say that we are not a seller unless they come back with a humongous price in which case we may consider selling together with them. But if the values are within our own range then we might consider buying. But together with First Pacific, PLDT owns slightly less than 40%. So we need to buy only about 11% for us to achieve control of the company of the Maya group. So, of course, if they come back with US$10 billion you'd probably sell and get US$4 billion and get rid of all of our debts. That's music to our ears, Danny right? And that we can try to explain about our gearing and all that sort of thing. Yeah, so we don't know. So let's wait for one month or two and see what those values are. That would be interesting. We are not altogether optimistic that they get the values that they want I think given the market and the situation elsewhere in the world. Yeah.

Let me take the second question regarding monetization of our legacy assets. We are really focused on being able to take a look at the legacy assets that we have and starting to monetize them. And we are going to initiate the first and foremost, the copper monetization. In fact in the next couple of weeks, we're already going to do operational POCs. It's not that easy to just rip out the copper and sell it right? There may be copper facilities that are linked to subscribers. So it's a very operational endeavor. And we've engaged Deutsche Telekom and Deon, who has done copper monetization and copper mining through many telcos all over the world to take us through all the processes and make sure that when we do start ripping out these copper facilities of ours, we're not affecting other subscribers, right? So we are doing POCs in four of our exchanges just to study how difficult it is. If you look at the copper facilities, the aerial copper facilities, you'll already see how many telcos are intertwined with each other. So it's not as easy to just rip that out and sell it. Secondly, one of the things that we're studying is the value chain. You can rip out the copper and sell it as scrap, and there's a price to that. But if you start processing it, the price actually goes higher. There's also the wisdom of warehousing because, as you know, commodity prices of copper go up and down. We are projecting copper prices for 2025. That seems like it's going to start escalating going up. So you may want to warehouse and sell when the price is high and not just sell whenever. So all these things we are studying, and we are going to be initiating this for PLDT. It's really being able to monetize trash, right? It's something that we don't use and something that we can sell and is very valuable. But the beauty of the legacy monetization is that while copper is a big one, there are other legacy infrastructure that we have that we can sell. When we migrate 3G, you know those 3G cell sites, those things can be sold to maybe third world countries that still want to use 3G. So we are looking at this whole ecosystem of being able to monetize these legacy assets. And definitely, you're going to see that movement in 2025.

Thank you, Butch. Mark, go ahead.

Just on the legacy assets. You mentioned a while ago, you're trying to monetize, right? But if it's trash that you mentioned, how much money can you earn? I mean, we're moving past that already, right? So well, maybe give me a ballpark number, how much is copper

No. You can't divulge at this point. Right at this point we can't. But it is..

It is a lot, copper wires that we have that we have pulled out. And are we okay to. Okay. Sorry. I mean but it's in the billions of pesos. So you were asked by me, but we were verboten to indicate, but we pulled quite a bit of copper wires. And if Meralco wants to buy it, we'll give it to them, right? I don't think so far, power doesn't run on fiber. So that's one. Of course, you asked us how are we going to finance the acquisition, say, 10% or 11% of Maya.. Well that's one. We could sell our copper that's more than enough I think to buy the 10%. Of course depends what the values are. Number two the Board just reclassified certain of our properties as properties for sale that are not currently in use or excess to our requirements. Number three we could sell down our data center correct? So I think we'll have more than adequate ammunition to buy at least 10% of Maya. I don't want to trade the value of the data centers for Maya. Maybe that will work maybe that will not work from a value standpoint. But certainly the copper wires should go and the excess properties will also go in the course of this year.

We're a little bit over time but we still have quite a number of questions in the queue. Maybe I'll take a few more. This one is on Maya from Zhiwei. We have Aayush on the line as well who's the CIRO [ph] of Maya. So maybe you can take this question Aayush. It says congratulations on Maya turning around to profitability. Can we discuss how such a strong turnaround was achieved in the fourth quarter? What business helped to drive this turnaround? And how should we expect that segment and loan growth to perform in 2025?

Thanks Jinggay, and thanks for that question. Good afternoon everyone. I think we have seen a broad strength in the business across the board. Both the payments and the banking business have done well. Our strategy of offering a consolidated financial services through our platforms both for businesses and for consumers, have worked very well. We have seen higher cross-sell rates of different products on our platforms. And it's really just sort of launching products that the market needs, and being able to scale those products in a profitable manner that has sort of worked in our favor. And we have done that, while maintaining a laser focus on our cost and our ability to service our customers, at a fairly fixed sort of cost to serve, which has been a strength of ours given that we own a lot of our tech infrastructure, our front end, our back end. And so with scale, the profitability has been there.

Thank you, Aayush. All right. I think that's all the time we have for today. For those whose questions we were not able to answer, I'll try to get back to you as soon as possible. I've collated the questions here. But that concludes today's briefing. So, thank you again for your time and for your support and we look forward to our next update, with you guys on May. Have a good afternoon everyone. Thank you.