GLOBE ANNOUNCES FULL YEAR 2018 RESULTS GLOBE INVESTED P43.3 BILLION IN CAPEX IN 2018, REPRESENTING NEARLY 33% OF GROSS SERVICE REVENUES

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3 GLOBE ANNOUNCES FULL YEAR 2018 RESULTS GLOBE INVESTED P43.3 BILLION IN CAPEX IN 2018, REPRESENTING NEARLY 33% OF GROSS SERVICE REVENUES GLOBE TO SPEND P63.0 BILLION CAPEX IN 2019 FOR CONTINUED NETWORK EXPANSION MOBILE SUBSCRIBERS NOW STAND AT 74.1 MILLION; BROADBAND SUBSCRIBERS NOW OVER 1.6 MILLION, UP 24% YoY Globe spent P43.3 billion or about $821 million capital expenditures (capex) in 2018 to address the robust data traffic growth and support its increasing customer base with the ramped-up LTE rollout. About 77% of the total capex for 2018 was for data-related services, all geared to meet the customer demand for more bandwidth-intensive content. In line with the Company s continued expansion and enhancement of its data network, full year 2019 cash capex is expected to reach P63.0 billion or approximately $1.2 billion. Mobile subscriber base totaled 74.1 million as of end-december 2018, which will now become the new baseline given the impact of the regulatory requirement which extends prepaid load 1 validity to one (1) year regardless of amount. Total home broadband subscriber base grew 24% from last year and now stands at over 1.6 million, of which around 61% are home wireless subscribers. On a post-pfrs basis, Globe ended the year with consolidated service revenues of P132.9 billion. Excluding the impact of the PFRS 15 adjustments, total consolidated service revenues posted P140.2 billion, up 10% year-on-year. The continued strong revenue performance was once again driven by datarelated services across all business segments. This was likewise supported by Globe s pervasive 4G/LTE network, and the wide array of content offerings, through its partnerships with industry leaders and global content brands. As of end-december of 2018, mobile revenues grew to P99.5 billion on a post-pfrs basis, while pre-pfrs revenues registered at P106.9 billion, up 9% from a year ago. From a product perspective, mobile data revenues reached P50.8 billion in 2018 on a post-pfrs basis, while pre-pfrs mobile data revenues were higher by 28% versus the P43.1 billion reported in Mobile data continued to be the top contributor to the Company s mobile business, and now accounts for 51% of gross mobile service revenues from 44% a year ago. This was propelled by the sustained higher prepaid top-ups, with more consumer spending on mobile data, thus driving the mobile data traffic growth from 600 petabytes last year to 956 petabytes in Meanwhile, mobile voice and mobile SMS revenues on a post-pfrs basis as of end-december 2018, stood at P28.5 billion and P20.2 billion, respectively. Excluding the impact of the PFRS 15 adjustments, 1 Under the new pronouncement based on the National Telecommunications Commission (NTC), Department of Information and Communications Technology (DICT), and Department of Trade and Industry (DTI) Joint Memorandum Circular No all prepaid load will now carry a one-year expiration period regardless of amount. In compliance to this new regulation, effective January 6, 2018, Globe implemented a one year expiration period for prepaid load worth 300 pesos and above. Then in July 5, 2018, Globe expanded the implementation to all Globe prepaid load, including those with denominations below 300 pesos. Press Release 4Q

4 mobile voice revenues posted P30.3 billion, or down 6% year-on-year while mobile SMS revenues totaled P21.3 billion, or lower by 8% versus Globe s home broadband business ended the year with total revenues of P18.6 billion on a post-pfrs basis, due mainly to the continued subscriber expansion in fixed wireless solutions, in particular the growing popularity of the Home Prepaid Wifi product. On a pre-pfrs basis, home broadband revenues reached P18.5 billion, or up 19% versus a year ago. On a post-pfrs basis, corporate data business totaled P11.8 billion in revenues in 2018, largely attributed to a higher circuit base. Excluding the impact of PFRS 15 adjustments, corporate data revenues remained at P11.8 billion or a 15% increase year-on-year, given the increasing demand for fast, reliable and secure internet connectivity, as well as modern business solutions, that help enterprise clients to advance their businesses. On a post-pfrs basis, Globe s total operating expenses and subsidy amounted to P67.7 billion for the period, leading to consolidated EBITDA ending at P65.1 billion, with an EBITDA margin of 49%. Net income closed at P18.6 billion, primarily from the gains in EBITDA, offsetting depreciation charges and non-operating expenses booked for the year just ended. Depreciation expenses increased due to Globe s continued capex investments. Core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, ended at P18.7 billion. Excluding the impact of the PFRS adjustments, EBITDA stood at P64.9 billion, 22% higher than last year, with EBITDA margin at 46% (vs. 42% in 2017). Net income for the period amounted to P18.4 billion, with core net income ending at P18.6 billion. Commenting on these results, Ernest L. Cu, President and CEO of Globe Telecom Inc., said: We are proud of what we have achieved in 2018 both in terms of financials and network expansion. With our unwavering commitment to bring the Philippines closer to first-world internet connectivity, we are happy to announce that we have successfully met our minimum broadband coverage commitment. We will continue to build our network capacities to improve the internet experience as we re-invest our gains back to our network, which is now close to 33% of our revenues, to be able to deliver a differentiated level of customer service. In compliance with the directive of the National Telecommunications Commission (NTC), all telephone numbers of Globe customers in Greater Metro Manila (MM) with 02 area code will move to an 8-digit format on March 18, This directive is to ensure there will be sufficient resource pool to cater to the rapid growth of landline customers in major cities. The commission assigned a public telecommunications entity (PTE) identifier for telecom operators as an additional prefix in expanding from 7-digit to 8-digit landline number. The assigned PTE identifier for Globe and its subsidiary Innove is 7. For instance, a Globe customer with existing landline or DUO number of (02) will have to change his or her number to (02) come March 18, Meanwhile, Bayan Telecommunications customers will follow the numbering format (02) 3000-XXXX to (02) 3499-XXXX effective March 18, Lastly, our Board of Directors approved in its meeting today, the declaration of the first quarter 2019 cash dividend of P22.75 per common share payable on March 13, 2019 to shareholders on record as of February 26, The first quarter cash dividend payment total is about P3.0 billion. Press Release 4Q

5 For questions, please contact: Carlo Puno Financial Planning and Analysis Jose Mari S. Fajardo Investor Relations (632) About Globe Globe Telecom is a leading full service telecommunications company in the Philippines, serving the needs of consumers and businesses across an entire suite of products and services including mobile, fixed, broadband, data connections, internet, and managed services. Its principals are Ayala Corporation and Singtel who are acknowledged industry leaders in their respective countries and in the region. It is listed on the Philippine Stock Exchange under the ticker symbol GLO and had a market capitalization of US$4.8 billion as of the end of December Further information can be obtained by visiting the web at Press Release 4Q

6 ANNEX I 2018 Financial Summary Globe Group (Pre-PFRS) Post-PFRS Year on Quarter on Quarter Year Q4 Q3 QoQ 31 Dec 31 Dec YoY 31 Dec In Million Pesos (%) (%) Service Revenues 36,886 35,085 5% 140, ,906 10% 132,875 Mobile 27,786 26,557 5% 106,925 98,483 9% 99,530 Home Broadband 5,040 4,822 5% 18,543 15,645 19% 18,606 Corporate Data 3,344 2,957 13% 11,782 10,288 15% 11,762 Fixed line Voice % 2,982 3,490-15% 2,977 Operating Expenses and Subsidy 21,088 18,558 14% 75,361 74,580 1% 67,748 EBITDA 15,798 16,527-4% 64,871 53,326 22% 65,127 EBITDA Margin 43% 47% 46% 42% 49% Depreciation 8,107 7,742 5% 30,422 27,513 11% 30,422 Net Income After Tax (NIAT) 3,809 4,853-21% 18,447 15,084 22% 18,626 Core Net Income 3,789 4,779-21% 18,555 13,546 37% 18, On a post-pfrs basis, full year consolidated service revenues reached P132.9 billion due to the sustained data revenue growth across all business segments. Mobile revenues registered P99.5 billion, coming largely from Prepaid, resulting from increased data consumption and higher top-ups. Home broadband posted revenues of P18.6 billion due to the strong subscriber growth given the growing demand for faster internet connectivity. Corporate data likewise registered P11.8 billion due to the sustained circuit base expansion. Excluding the impact of PFRS 15 adjustments, consolidated service revenues for the period recorded P140.2 billion in 2018, up by 10% from P127.9 billion last year. Mobile revenues were up 9% to P106.9 billion from last year s P98.5 billion. Home broadband and corporate data likewise, posted 19% and 15% increase from a year ago, respectively. On a post-pfrs basis, total operating expenses and subsidy as of end-december 2018 amounted to P67.7 billion. Excluding the impact of PFRS adjustments, total operating expenses and subsidy slightly increased by 1% from P74.6 billion in 2017 to P75.4 billion this period. This was primarily driven by the significant declines in interconnect, provisions and subsidy. In addition, the Company s cost control initiatives contributed in keeping its expenses low, despite supporting all existing network projects in response to the growing business demands. Globe s consolidated EBITDA for the period stood at P65.1 billion, while EBITDA margin was at 49% on a post-pfrs basis, due mainly to the strong topline and minimal growth in operating expenses. Excluding the impact of the PFRS adjustments, Globe s consolidated EBITDA reached P64.9 billion, surpassing last year s level of P53.3 billion. EBITDA margin for 2018 was at 46%, higher versus last year s margin of 42%. Total depreciation expenses posted an 11% increase to P30.4 billion from the P27.5 billion reported in 2017, given Globe s higher capital investments. Press Release 4Q

7 Overall, on a post-pfrs basis, total operating costs and subsidy including depreciation as of end- December 2018 was at P98.2 billion. While excluding the PFRS adjustments, total operating costs and subsidy including depreciation charges rose to P105.8 billion or 4% higher than the P102.1 billion reported in Full year 2018 non-operating charges significantly increased by 66% from the P4.3 billion reported last year to P7.1 billion this period. This was attributed to higher interest on bank loans, net forex loss position in 2018, higher losses from affiliates and frequency amortization, as well as the provision for impairment of Taodharma investment booked in the third quarter of Note that last year s lower non-operating charges was partly due to the one-time gain related to the fair value of retained equity interest of Globe in Globe Fintech Innovations, Inc. (Mynt). The Globe Group closed the year with consolidated net income of P18.6 billion on a post-pfrs basis, due to the gains in EBITDA, offsetting depreciation charges and non-operating expenses booked for the year just ended. Excluding PFRS adjustments, total consolidated net income as of end-december 2018 stood at P18.4 billion, up 22% from previous year s P15.1 billion. Globe s core net income, which excludes the impact of non-recurring charges, one-time gain, foreign exchange gains and mark-to-market charges, stood at P18.7 billion, on a post-pfrs basis. While, core net income, excluding the PFRS adjustments, was at P18.6 billion as of end-december 2018, up a robust 37% year-on-year. As of the end-december 2018, total cash capex stood at about P43.3 billion (approximately $821 million), 2% higher than last year's level of P42.5 billion. The increase in capex was due to the Company s continued network upgrade and expansion. Mobile Business Globe Group (Pre-PFRS) Post-PFRS Quarter on Quarter In Million Pesos Service Revenues Q4 Q3 QoQ 31 Dec 31 Dec YoY 31 Dec (% ) (% ) 2018 Mobile Voice 7,248 7,458-3% 30,348 32,275-6% 28,520 Mobile SMS 4,705 5,212-10% 21,281 23,149-8% 20,190 Mobile Data 15,833 13,887 14% 55,296 43,059 28% 50,820 Mobile Service Revenues 27,786 26,557 5% 106,925 98,483 9% 99,530 Mobile service revenues, which accounted for 75% of Globe s consolidated service revenues for the year just ended, rose to P99.5 billion, due to the continued strong revenue contributions from mobile data. Excluding the impact of the PFRS 15 adjustments, mobile service revenues reached P106.9 billion, up 9% year-on-year. Post-PFRS 15 adoption, mobile voice revenues, which accounted for 29% of total mobile service revenues, ended the year at P28.5 billion. On a pre-pfrs basis, total mobile voice revenues declined by 6% to only P30.3 billion in 2018 from P32.3 billion reported in Consistent with global trends, voice revenues declined given the migration of voice traffic to alternative internet-based applications. Mobile SMS revenues, which accounted for 20% of total mobile service revenues, closed the year at P20.2 billion on a post-pfrs basis. Pre-PFRS 15 adoption, mobile SMS revenues as of end-december of 2018 stood at P21.3 billion, or 8% lower against the P23.1 billion reported last year. Similar to voice, mobile Press Release 4Q

8 SMS declined with the continuous migration of mobile messaging traffic to over-the-top (OTT) messaging apps. Mobile data, the biggest contributor to the mobile business, accounted for 51% of total mobile service revenues (vs. 44% in 2017). As of end-december 2018 mobile data revenues posted P50.8 billion, after the PFRS 15 adjustment. Excluding these adjustments, total mobile data for the year just ended was at P55.3 billion, up a strong 28% from P43.1 billion a year ago. The sustained growth momentum in mobile data revenues was driven by the increasing consumption of streaming and always-on digital services coupled with the growing smartphone penetration. Likewise, data traffic rose as more Globe customers are benefitting from the company s massive network upgrades. Key Mobile Drivers * In view of the new regulatory requirement, Globe closed the year with a total mobile subscriber base of 74.1 million. This will now become the new baseline given the impact of the one (1) year extension of prepaid load validity. Based on the National Telecommunications Commission (NTC) Memorandum Circular , the first expiry periods ranges from 3 days for P10 or below to 120 days for reloads amounting to P300 and above. The second expiry remains at 120 days from the date of the new first expiry periods. The first expiry is reset based on the longest expiry period among current and previous reloads. Under this policy, subscribers are included in the subscriber count until churned. Under the new pronouncement based on the National Telecommunications Commission (NTC), Department of Information and Communications Technology (DICT), and Department of Trade and Industry (DTI) Joint Memorandum Circular No all prepaid load will now carry a one-year expiration period regardless of amount. In compliance to this new regulation, effective January 6, 2018, Globe implemented a one year expiration period for prepaid load worth 300 pesos and above. Then in July 5, 2018, Globe expanded the implementation to all Globe prepaid load, including those with denominations below 300 pesos. As of the end of December 2018, Globe Postpaid had 2.6 million subscribers, or 5% higher from a year ago. Globe Postpaid s gross acquisitions for the year just ended stood at 660,972 or 11% lower than last year. The improvement in churn rate from 2.5% a year ago to only 1.8% in 2018 brought total net additions in postpaid subscribers to reach 113,383 subs, compared to last year s net reduction of 4,931. As of end-december 2018, Globe Prepaid ended the year with 34.6 million subscribers which will now become the new baseline given the regulatory requirement mentioned above. TM s total cumulative subscriber registered at 36.9 million for the year just ended. Similar to Globe Prepaid, this will now become the new baseline, in compliance to the regulatory requirement of prepaid load validity extension stated above. On a post-pfrs basis, full year 2018 Globe Postpaid ARPU and subscriber acquisition cost (SAC) was at P919 and P1,644, respectively. Meanwhile, pre-pfrs adoption, Globe Postpaid ARPU registered at P1,161, which decreased by 1% from a year ago, and subscriber acquisition cost (SAC) was 7% lower year-on-year, to reach P8,177 in 2018 from P8,824 reported in Globe Postpaid SAC remains recoverable well within the 24-month contract for postpaid plans. * Note that there will be no year-on-year comparison for the Prepaid cumulative subscriber count, Prepaid ARPU, SAC and churn rate for 2017 and 2018 given the impact of the prepaid load validity extension to one (1) year in Press Release 4Q

9 Fixed Line and Home Broadband Business In Million Pesos Quarter on Quarter Post-PFRS Q4 Q3 QoQ 31 Dec 31 Dec YoY 31 Dec Globe Group (Pre-PFRS) (% ) (% ) Service Revenues Home Broadband 5,040 4,822 5% 18,543 15,645 19% 18,606 Corporate Data 3,344 2,957 13% 11,782 10,288 15% 11,762 Fixed line Voice % 2,982 3,490-15% 2,977 Fixed Line & Home Broadband Service Revenues 9,100 8,528 7% 33,307 29,423 13% 33,345 On a post-pfrs 15 basis, Globe Group s fixed line and home broadband full year 2018 revenues stood at P33.3 billion. Excluding the PFRS adjustments, total fixed line and home broadband revenues posted a 13% increase year-on-year to P33.3 billion in 2018 from P29.4 billion in The growth was mainly driven by solid contributions of both home broadband and corporate data. Post-PFRS 15 adoption, Globe Home Broadband revenues as of end-december 2018 registered at P18.6 billion. Excluding the PFRS 15 adjustment, Home Broadband revenues posted a 19% growth, ending the year at P18.5 billion from the P15.6 billion reported a year ago. This was due to the sustained expansion of its customer base, now rising to 1.6 million subscribers from 1.3 million last year. The revenue growth and customer uptake was boosted by Home broadband s compelling new bundles and packages, coupled with the growing popularity of the Home Prepaid Wi-Fi product. Cumulative Broadband Subscribers Quarter on Quarter Q4 Q3 QoQ 31 Dec 31 Dec YoY (% ) (% ) Fixed Wireless 984, ,861 8% 984, ,441 50% Wired 631, , , ,720-2% Total (end of period) 1,615,677 1,540,252 5% 1,615,677 1,301,161 24% The corporate data business sustained its growth momentum, ending the year with P11.8 billion revenues, driven by the sustained circuit base expansion, the strong demand for domestic and international leased line services, cloud-based services, and managed/modern business solutions. Pre-PFRS 15 adoption, full year corporate data revenues stood at P11.8 billion or P20 million higher versus the post-pfrs revenues Press Release 4Q

10 Group Operating Expenses In Million Pesos Globe Group (Pre-PFRS) Post-PFRS Year on Quarter on Quarter Year 4Q 3Q QoQ 31 Dec 31 Dec YoY 31 Dec (%) (%) Cost of Sales 3,976 3,413 16% 14,792 13,014 14% 18,645 Less: Non-service Revenues 2,654 2,063 29% 10,088 7,375 37% 18,297 Subsidy 1,322 1,350-2% 4,704 5,639-17% Interconnect 730 1,436-49% 5,677 7,852-28% 5,677 Selling, Advertising and Promotions 1,802 1,418 27% 5,655 5,415 4% 5,620 Re-contracting 1, % 3,853 3,594 7% - Staff Costs 3,915 3,464 13% 13,271 12,238 8% 13,271 Utilities, Supplies & Other Administrative Expenses 1,730 1,447 20% 5,951 5,216 14% 5,958 Rent 1,865 1,335 40% 6,535 6,471 1% 6,535 Repairs and Maintenance 2,418 1,927 25% 7,944 7,823 2% 7,944 Provisions % 3,938 5,109-23% 4,788 Services and Others 5,374 4,388 22% 17,833 15,223 17% 17,607 Operating Expenses 19,766 17,208 15% 70,657 68,941 2% 67,400 Depreciation and Amortization 8,107 7,742 5% 30,422 27,513 11% 30,422 Costs and Expenses 29,195 26,300 11% 105, ,093 4% 98,170 Other Income Statement Items (Php Mn) Financing Costs - net Globe Group Quarter on Quarter 4Q 3Q QoQ 31 Dec 31 Dec YoY (% ) (% ) Interest Expense (1,606) (1,512) 6% (5,975) (5,043) 18% Loss on Derivative Instruments (591) (128) -100% Swap Costs and Other Financing Costs (64) (40) 62% (220) (209) 5% Foreign Exchange Loss - (170) -100% (900) - - (2,261) (1,722) 31% (7,096) (5,380) 32% Other Income Gain on derivative instruments (net) % 1, Foreign Exchange gain (net) 624-0% % Interest Income % % Equity share from Affiliates (net) (270) (310) -13% (956) (661) 45% Frequency Amortization (74) (73) 1% (294) (185) 59% Mynt Gain , % Taodharma Impairment (140) - - Others net (43) % (2) (3) -33% Total Other (Expenses) Income (1,856) (1,700) 9% (7,092) (4,271) 66% Press Release 4Q

11 Liquidity and Capital Resources (Post-PFRS) Globe Group 31 Dec 31 Dec YoY (% ) Balance Sheet Data (Php Mn) Total Assets 299, ,766 8% Total Debt 148, ,529 13% Total Stockholders' Equity 73,144 66,558 10% Financial Ratios (x) Total Debt to EBITDA (Gross) Total Debt to EBITDA (Net) Debt Service Coverage Interest Cover (Gross) Debt to Equity (Gross) Debt to Equity (Net) Total Debt to Total Capitalization (Book) Total Debt to Total Capitalization (Market) Net debt is calculated by subtracting cash, cash equivalents and short term investments from total debt. Globe completed a Consent Solicitation Exercise for its Bondholders covering Proposed Amendments to the Trust lndentures, including a higher consolidated Debt to Equity Ratio of 3:1 and Debt to EBITDA Ratio of 3.5:1 PFRS 15 and 9 adjustments to Retained Earnings In Php Mn Retained Earnings, 12/31/ ,708 Add (Deduct): Effect of PFRS 9 (5,582) Effect of PFRS 15 4,881 Retained Earnings, 1/1/ ,007 In the first quarter of 2018, the Company adjusted the opening balance of retained earnings as of January 1, The adjustments pertaining to PFRS 9 and 15, were only estimates at the time given that Globe was transitioning its system to accommodate the new accounting standards. After finalizing the system reports during the fourth quarter of 2018, total net adjustment is a P701 million downside to opening retained earnings as of January 1, For PFRS 9, the adjustment is a downside to retained earnings amounting to P5.6 billion, net of tax. While for PFRS 15, the adjustment is an upside to retained earnings amounting to P4.9 billion, net of tax. Press Release 4Q

12 Capital Expenditures (Php Mn) Globe Group 31 Dec 31 Dec YoY (% ) Cash Capital Expenditures 1 43,259 42,541 2% Total Additions to Property and equipment and Intangible assets 2 36,315 51,432-29% Cash Capital Expenditures 1 / Service Revenues-Pre PFRS (% ) 30.8% 33.3% Cash Capital Expenditures 1 / Service Revenues-Post IFRS (% ) 32.6% - 1 Cash capital expenditures-property & equipment and intangibles as of report date 2 Include property and equipment, intangibles and capitalized borrowing costs acquired as of report date regardless of whether payment has been made or not. Press Release 4Q