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4Q/FY2020 Financial and Operating Results Briefing #Experiencebetter Legal Disclaimer

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4Q/FY2020 Financial and Operating Results Briefing #Experiencebetter Legal Disclaimer 4Q/FY2020 Financial and Operating Results Briefing #ExperienceBetter Legal Disclaimer These materials have been prepared exclusively for information and disclosure purposes only. This does not constitute any offer to sell securities. These may contain forward-looking statements and information that are, by their nature, subject to significant risks, uncertainties, and assumptions. Many factors could make or cause the actual results, performance or achievements of CNVRG to be materially different from those expressed or implied in this release, including, but not limited to, changes in general economic, political, governmental and business conditions in the Philippines and globally, as may be applicable; changes in interest rates; changes in inflation rates; changes in exchange rates; the level and speed of network construction generally; changes in raw materials and energy prices, changes in business strategies; and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CNVRG disclaims any obligation or undertaking to update or revise the information contained in these materials and releases. This communication is not intended to be provided to, and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules, or regulations. All rights reserved. • 2 2 Today’s Speakers Dennis Anthony Uy Grace Yao Uy Matthias Vukovich Chief Executive Officer, Co-Founder President, Co-Founder Chief Financial Office Advisor Jesus Romero Benjamin Azada Chief Operating Officer Chief Strategy Officer • 3 3 4 5 4Q/FY2020 Results Key Takeaways Rapid growth continues in 4Q2020 with 81% YoY revenue growth and 88% ✓ YoY EBITDA growth (vs. 4Q2019) Continued to deliver the industry-leading trifecta with ✓ 71% revenue growth, 52.5% EBITDA margin and 20% ROIC in FY2020 535k new ports and 177k gross residential subscribers added in ✓ 4Q2020. Converge again captured majority of Fixed Broadband Net Adds Maintained our annual residential blended ARPU from PHP 1,293 in FY2019 ✓ to PHP1,298 during FY2020 Residential business delivered 99% YoY revenue growth ✓ in FY2020, driven by strong subscriber additions Enterprise business growing 9% YoY in FY2020 as ✓ corporate clients are adapting to the new normal • 4 6 s 7 Added ~535k Ports during 4Q2020 Extensive and Fast-growing Network Homes Passed (MM) (1)(2)(3) 2% 13% 25% 55% ~6.2MM homes passed as of December 2020, ~12x increase 8 190 350 15.1 ✓ from 2016 ~12x 6.2 ~25% household coverage nationwide as of December 2020 3.2 0.8 ✓ (~43% in Luzon) 0.5 0.8 5.3 2.4 (6) 2016 2019 2020 2021E 2025E Targeting 55% household coverage (~15MM homes passed) FTTH Homes Passed HFC Homes Passed by 2025 (4) ✓ Monthly Addition Run-rate (‘000s) Household Coverage (5) (for last month in the period) Number of Ports (MM) (1)(2) 5 100 177 ~3.5MM ports as of December 2020, ~7x increase from 2016. 7.5 - 8.0 ✓ Target 7.5-8MM ports by 2025 ~7x 3.5 ~177k port additions in December 2020, ~535k total additions 2.0 0.8 ✓ during 4Q2020 0.5 0.8 2.7 1.2 2016 2019 2020 2021E 2025E FTTH accounted for over 93% of port additions since 1Q2019 FTTH HFC Monthly Addition Run-rate (‘000s) (4) ✓ and comprises ~76% of total ports as of December 2020 (for last month in the period) Notes: 1. FTTH homes passed is derived from the number of homes within a 300 meter radius from a network access point (“NAP”) that we have installed in a coverage area. Each NAP has eight or 16 ports, and one port serves one home 2. HFC homes passed refers to the number of homes and other residential units that are within a 200 meter radius from our HFC ports, and can be connected to our network 3. For FTTH, ratio of 1 port = 2 home passed; for HFC, ratio of 1 port = 1 homes passed 4. Run-rate based on additions in last month of each period (i.e. December for full-year) 5. Household coverage is calculated as total homes passed over total number of homes, which is 24.8 million 6. Based on 2025E total households of 27.5 million according to MPA 8 Total Gross Adds at ~177k with Steady ARPU during 4Q2020 Number of Subscribers (‘000) 1.04MM subscribers as of December 2020, ~14x growth since 2016; driven by FTTH subscriber 33.8 291.5 616.5 ✓ growth 14x ~14x Increase in 1,038 Total gross subscriber adds of ~177k in 4Q2020 Subscribers 216 representing 120% growth vs. 4Q2019 Since 2016 530 ✓ 199 823 74 331 Over 95% of gross adds are first-time fixed 2016 2019 2020 ✓ broadband users in 4Q2020 FTTH HFC Yearly Gross Adds Blended ARPU PHP (US$) (1) (2) Maintained our annual residential blended ARPU from FY2019 to FY2020 ($25) ($24) ($27) ($27) ✓ Steady 1,191 1,178 1,293 1,298 ARPU Expect stable ARPUs going forward, with fiber ✓ broadband viewed as a necessity in post-COVID new normal 2017 2018 2019 2020 Churn Rate 1.63 (%) 1.35 1.08 Churn Rate 0.37 Monthly Churn decreasing in 4Q2020 to 1.35% Decline 0.39 ✓ 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Note: 1. Based on an FX rate of 1 US$ to 48.26 PHP 2. Monthly ARPU for our Residential Business is calculated by dividing (i) the revenue generated during a period by (ii) the average number of subscribers during that period, then dividing the quotient by the number of months during that period 9 FY Financial Update: Continuing to Achieve Trifecta of ~71% Growth, 52.5% Margin, ~20% ROIC Revenue EBITDA (2) (1) ($324) (1) PHP MM PHP MM ($170) 15,652 8,218 3,024 ($189) ($97) 9,139 4,665 ($105) 2,786 ($103) ($53) ($55) 5,055 12,628 4,975 ($61) ($57) ($30) 2,549 ($29) 2,643 ($39) 760 ($19) 2,940 1,904 2,746 1,460 1,405 1,894 6,354 894 1,421 822 4,215 1,033 3,151 862 1,520 1,924 2016 2017 2018 2019 2020 4Q19 4Q20 2016 2017 2018 2019 2020 4Q19 4Q20 Residential Enterprise EBITDA Margin (2) ROIC (3) Annualized 53.1% 52.5% 20% 51.0% 51.2% 50.4% 49.7% 12% 11% 47.2% 6% 2016 2017 2018 2019 2020 4Q19 4Q20 APAC Broadband(4) Phils Telco (4) Global Broadband (4) Notes: 1. Based on an FX rate of 1 US$ to 48.26 PHP 2. 2020 EBITDA shown as reported EBITDA. 2016-2019 EBITDA shown as Pro Forma Adjusted EBITDA, where historical EBITDA is adjusted for Pro Forma Events and provision for contingencies, loss on direct write off of network materials and supplies and loss on fire 3. Return on Invested Capital is tax-adjusted (30% assumed effective tax rate) pro forma profit from operations divided by average invested capital. Invested Capital is the sum of our total equity and total debt (comprising loans payable (non-current and 10 current portions)), less cash and cash equivalents and capital expenditures in progress 4. APAC broadband players includes Link Net, HKBN, and Time dotCom; Phils Telco includes PLDT, and Globe; Global broadband players include Telenet, Altice, Charter Communications and Liberty Global; Link Net and Time dotcom; ROIC refers to LTM as of 1Q2020 P&L Highlights Consolidated P&L For the twelve months Key Highlights PHP ended December 31 2020 2019 ❖ Bandwidth and leased line (in millions) costs accounting for 6.0% of Revenue 15,652 9,139 Cost of Services (7,065) (4,441) FY2020 revenues vs. 9.1% of Depreciation and amortization 2,303 1,532 FY2019 revenues resulting in Network materials and supplies used 1,370 796 Bandwidth and leased line costs 946 829 increased Gross Profit margin Amortization of deferred contract costs 827 355 of 54.9% in FY2020 Service fees 618 344 Personnel costs 399 229 Others 602 356 ❖ Provision for impairment of Gross profit 8,588 4,699 trade and other receivables of Gross profit margin 54.9% 51.4% General and administrative expenses (2,772) (1,415) PHP720 million in FY2020, Personnel costs 1,050 520 representing 4.6% of total Commission expense 264 82 Professional fees 216 89 revenues Depreciation and amortization 156 135 Others 1,086 589 ❖ FY2020 EBITDA Margin Provision for impairment of trade and other receivables (720) (530) Other income and expenses, net 334 18 expanding to historical record Profit from operations 5,429 2,772 high of 52.5% Finance costs (550) (275) Income taxes (1,491) (593) ❖ FY2020 Net Income does not Profit after income tax for the year/ period 3,388 1,905 Net income after tax margin 21.6% 20.8% yet consider tax savings from CREATE Act(1) Reported EBITDA(2) 8,218 4,665 Reported EBITDA margin(2) 52.5% 51.0% Note: 1. The Philippine Senate ratified the Corporate Recovery and Tax Incentives for Enterprises (CREATE) in February 2021, which has been transmitted for the President’s signature. The CREATE act is expected to decrease our corporate income tax rate from currently 30% to 25%, effective July 1, 2020 until June 30, 2023. • 6 2. 2019 EBITDA includes proforma adjustments 11 Well Funded CAPEX Plan US$ (PHP)(1) Fully Funded Capex Plan in 2021 Well-Funded between 2022-25 PHP1.6Bn US$633MM Net Cash (PHP30Bn) as of Dec. 2020 Sufficiently funded with current funding Sufficiently US$414MM funded US$271MM (PHP20Bn) with current (PHP13Bn) funding US$311MM 27% (PHP16Bn)(2) 22% 52% 56% 22% 21% Available Undrawn Undrawn 2020 Actual 2021 Operating Funding 2022-25 Operating Funding Cash Debt Debt Cash Flow Available Capex Plan Cash Flow Available Capex Capex Plan Facilities Facilities • Strong cash • PHP13Bn of • Current • PHP11Bn of • 5 Year Vision: • We expect to fund most of capex flow cash as of funding Backbone Access Others financial debt Reach 55% of from 2022 to 2025 from operating generation Dec-2020 largely as of the Philippine cash flows due to focus including sufficient December households by on high ROIC PHP8Bn IPO for 2021 2020 2025 proceeds capex • PHP30Bn undrawn term- loans as of February 2021 Notes: 1.
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