PLDT Incorporated offers telecommunications services in the Philippines, operating through fixed-line, wireless, and other business groups, with about 65 million cellular subscribers and a focus on the Metro Manila area. The company is in the process of acquiring a 50% stake in San Miguel Corporation's telecom business to enhance network coverage and capacity. As of September 2016, PLDT's stock is valued at PHP 1,716 with a market capitalization of approximately US$7.7 billion.

1. Presented by: Dr. Andrew Stotz, CFA
PLDT
Incorporated

2. 222 September 2016
 TEL’s wireless business renders cellular and wireless broadband, satellite and other
services. Cellular data services include text-messaging and text-related services ranging
from SMS to other value-added services
 The wireless network infrastructure operates via a digital GSM network, 3G (HSPA) and
4G LTE. The fixed-line network infrastructure includes installed phones and other equipment
such as modems on customer premises, copper and fiber-access lines, fiber-optic
connections between exchanges and long-distance transmission equipment
 Its fixed-line business offers local, international-long-distance, national long-distance,
data, network and miscellaneous services. The network reaches all major cities and towns in
the Philippines, and is concentrated in the Metro Manila area
 In May 2016, TEL and Globe Telecom Incorporated (GLO PM) announced that they would
each acquire 50% of the San Miguel Corporation’s (SMC PM) telecom business. The financial
due diligence is ongoing, but the deal should give TEL access to more spectrum and improve
its network’s coverage and capacity
40
60
80
100
120
1,500
2,000
2,500
3,000
3,500
4,000
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
TEL PM (LHS)
Price relative to local index
(PHP) (%)
Sources: A. Stotz Investment Research, company data, Thomson Reuters
Revenue breakdown, by type 1H16 Data and broadband revenue breakdown 1H16
PLDT Incorporated
Stock information:
Name: PLDT Incorporated
Ticker: TEL PM
Price (PHP): 1,716
Mcap: US$7,743m
3MADTO: US$8m
Beta: 0.4x
Sector: Telecommunication
Services
Industry: Telecommunication
Services
Major shareholders:
15% NTT DoCoMo, Inc.
12% Philippine Telecom
Investment Corp.
46% Free float
Background: PLDT Incorporated provides Filipinos with
telecommunications services, fiber-optic backbones, fixed-line and
cellular networks operating in three business groups: fixed-line,
wireless and others. The company had about 65m cellular
subscribers, 5m broadband subscribers and 2m fixed line subscribers
as of 1H16.
Fixed line 36%Wireless 64%
Wireless
47%
Fixed 31%
Corporate
22%

3. 322 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Background: PLDT Incorporated provides Filipinos with
telecommunications services, fiber-optic backbones,
fixed-line
and cellular networks operating in three business groups:
fixed-line, wireless and others.
The company had about 65m cellular subscribers, 5m
broadband subscribers and 2m fixed line subscribers as of
1H16.
PLDT Incorporated

4. 422 September 2016
40
60
80
100
120
1,500
2,000
2,500
3,000
3,500
4,000
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
TEL PM (LHS)
Price relative to local index
(PHP) (%)Stock information:
Name: PLDT Incorporated
Ticker: TEL PM
Price (PHP): 1,716
Mcap: US$7,743m
3MADTO: US$8m
Beta: 0.4x
Sector: Telecommunication
Services
Industry: Telecommunication
Services
Major shareholders:
15% NTT DoCoMo, Inc.
12% Philippine Telecom
Investment Corp.
46% Free float
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
PLDT Incorporated

5. 522 September 2016
 TEL’s wireless business renders cellular and wireless broadband, satellite and other
services. Cellular data services include text-messaging and text-related services ranging
from SMS to other value-added services
 The wireless network infrastructure operates via a digital GSM network, 3G (HSPA) and
4G LTE. The fixed-line network infrastructure includes installed phones and other equipment
such as modems on customer premises, copper and fiber-access lines, fiber-optic
connections between exchanges and long-distance transmission equipment
 Its fixed-line business offers local, international-long-distance, national long-distance,
data, network and miscellaneous services. The network reaches all major cities and towns in
the Philippines, and is concentrated in the Metro Manila area
 In May 2016, TEL and Globe Telecom Incorporated (GLO PM) announced that they would
each acquire 50% of the San Miguel Corporation’s (SMC PM) telecom business. The financial
due diligence is ongoing, but the deal should give TEL access to more spectrum and improve
its network’s coverage and capacity
40
60
80
100
120
1,500
2,000
2,500
3,000
3,500
4,000
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
TEL PM (LHS)
Price relative to local index
(PHP) (%)
Sources: A. Stotz Investment Research, company data, Thomson Reuters
Revenue breakdown, by type 1H16 Data and broadband revenue breakdown 1H16
PLDT Incorporated
Stock information:
Name: PLDT Incorporated
Ticker: TEL PM
Price (PHP): 1,716
Mcap: US$7,743m
3MADTO: US$8m
Beta: 0.4x
Sector: Telecommunication
Services
Industry: Telecommunication
Services
Major shareholders:
15% NTT DoCoMo, Inc.
12% Philippine Telecom
Investment Corp.
46% Free float
Background: PLDT Incorporated provides Filipinos with
telecommunications services, fiber-optic backbones, fixed-line and
cellular networks operating in three business groups: fixed-line,
wireless and others. The company had about 65m cellular
subscribers, 5m broadband subscribers and 2m fixed line subscribers
as of 1H16.
Fixed line 36%Wireless 64%
Wireless
47%
Fixed 31%
Corporate
22%

6. 622 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 TEL’s wireless business provides cellular and
wireless broadband, satellite and other services
 Cellular data services include text-messaging and
text-related services ranging from SMS to other
value-added services
PLDT Incorporated

7. 722 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 The wireless network infrastructure operates via
a digital GSM network, 3G (HSPA) and 4G LTE
 The fixed-line network infrastructure includes
installed phones and other equipment such as
 modems on customer premises, copper and
fiber-access lines, fiber-optic connections
between exchanges and long-distance
transmission equipment
PLDT Incorporated

8. 822 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 Its fixed-line business offers local, international-
long-distance, national long-distance, data,
network and miscellaneous services
 The network reaches all major cities and towns in
the Philippines, and is concentrated in the Metro
Manila area
PLDT Incorporated

9. 922 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 In May 2016, TEL and Globe Telecom
Incorporated (GLO PM) announced that they
would each acquire 50% of the San Miguel
Corporation’s (SMC PM) telecom business
 The financial due diligence is ongoing, but the
deal should give TEL access to more spectrum
and improve its network’s coverage and capacity
PLDT Incorporated

10. 1022 September 2016
 TEL’s wireless business renders cellular and wireless broadband, satellite and other
services. Cellular data services include text-messaging and text-related services ranging
from SMS to other value-added services
 The wireless network infrastructure operates via a digital GSM network, 3G (HSPA) and
4G LTE. The fixed-line network infrastructure includes installed phones and other equipment
such as modems on customer premises, copper and fiber-access lines, fiber-optic
connections between exchanges and long-distance transmission equipment
 Its fixed-line business offers local, international-long-distance, national long-distance,
data, network and miscellaneous services. The network reaches all major cities and towns in
the Philippines, and is concentrated in the Metro Manila area
 In May 2016, TEL and Globe Telecom Incorporated (GLO PM) announced that they would
each acquire 50% of the San Miguel Corporation’s (SMC PM) telecom business. The financial
due diligence is ongoing, but the deal should give TEL access to more spectrum and improve
its network’s coverage and capacity
40
60
80
100
120
1,500
2,000
2,500
3,000
3,500
4,000
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
TEL PM (LHS)
Price relative to local index
(PHP) (%)
Sources: A. Stotz Investment Research, company data, Thomson Reuters
Revenue breakdown, by type 1H16 Data and broadband revenue breakdown 1H16
PLDT Incorporated
Stock information:
Name: PLDT Incorporated
Ticker: TEL PM
Price (PHP): 1,716
Mcap: US$7,743m
3MADTO: US$8m
Beta: 0.4x
Sector: Telecommunication
Services
Industry: Telecommunication
Services
Major shareholders:
15% NTT DoCoMo, Inc.
12% Philippine Telecom
Investment Corp.
46% Free float
Background: PLDT Incorporated provides Filipinos with
telecommunications services, fiber-optic backbones, fixed-line and
cellular networks operating in three business groups: fixed-line,
wireless and others. The company had about 65m cellular
subscribers, 5m broadband subscribers and 2m fixed line subscribers
as of 1H16.
Fixed line 36%Wireless 64%
Wireless
47%
Fixed 31%
Corporate
22%

11. 1122 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Revenue breakdown, by type 1H16
Wireless 64%
Fixed line 36%
Data and broadband revenue
breakdown 1H16
Wireless
47%
Fixed 31%
Corporate
22%

13. 1322 September 2016
TEL: Leadership
Sources: A. Stotz Investment Research, company data, FactSet, Wikipedia
ChairmanPresident&CEO
2012 2013 2014 2015 Past 12 months
Manuel Pangilinan
Feb 2004 – Present
Napoleon Nazareno
Feb 2004 – Dec 2015
Manuel Pangilinan
Jan 2016 – Present

14. 1422 September 2016
'12 '13 '14 '15 PTM
3 4 4 5 7
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
3 3 4 5 6 5 7 6 8 9
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
9 9 9 9 9 1 2 1 3 4 3 5 6 8 7 3 8 5 10 10
Benchmarked against 140 large Telecom companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
CEO, 2016 – Present
Manuel Pangilinan
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth has
fallen year after year
TEL now only ranks
better than 42 of 140 large
Telecom companies
TEL: A. Stotz Profitable Growth
CEO, 2004 – 2015
Napoleon Nazareno

15. 1522 September 2016
'12 '13 '14 '15 PTM
3 4 4 5 7
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
3 3 4 5 6 5 7 6 8 9
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
9 9 9 9 9 1 2 1 3 4 3 5 6 8 7 3 8 5 10 10
Benchmarked against 140 large Telecom companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth has
fallen year after year
TEL now only ranks
better than 42 of 140 large
Telecom companies
Profitability was a
strength, but now ranked
below average
Growt is almost worst
TEL: A. Stotz Profitable Growth
CEO, 2016 – Present
Manuel Pangilinan
CEO, 2004 – 2015
Napoleon Nazareno

16. 1622 September 2016
'12 '13 '14 '15 PTM
3 4 4 5 7
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
3 3 4 5 6 5 7 6 8 9
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
9 9 9 9 9 1 2 1 3 4 3 5 6 8 7 3 8 5 10 10
Benchmarked against 140 large Telecom companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth has
fallen year after year
TEL now only ranks
better than 42 of 140 large
Telecom companies
Profitability was a
strength, but now ranked
below average
Growt is almost worst
Profit margin is still
above average, Sales
growth improved in PTM
TEL: A. Stotz Profitable Growth
CEO, 2016 – Present
Manuel Pangilinan
CEO, 2004 – 2015
Napoleon Nazareno

17. 1722 September 2016
 Do YOU want to see the Profitable Growth rank
for a company in YOUR portfolio?
 Leave a comment below with company name
and country of listing…and I’ll post it if I have it