Globe Telecom, Inc. Regional Mobile Investor Day 2011 2 December 2011 Presentation Outline

9 Globe Telecom, Inc. (GLO)

9 Macro-Economic & Telco Industry Overview

9 Highlights of 9M 2011 Performance

9 Network and IT Transformation: Program and Investment Highlights

9 9M 2011 Financial Results

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Mobile Industry Backdrop: Industry revenues have recovered from declines of 2010. Globe with sustained revenue market share improvements.

Subscriber & Industry Revenues Revenue Market Share

• SIMs at 93Mn with penetration at 96.5%; multi- 57.8% 58.9% 58.3% 58.9% 57.7% 56.5% SIM usage still high, and is estimated at 16% 55.5% 55.1% 52.9% • Industry revenues have bottomed out and are up 36.6% 2.2% YoY 35.0% 33.9% 33.7% 32.8% 33.3% 34.3% 34.8% 34.8% • Revenue growth driven by domestic voice and mobile browsing, which offset impact of weak 7.2% 7.2% 8.0% 8.3% 9.0% 9.2% 9.7% 10.1% 10.5% international voice traffic and negative currency effect

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

Smart/PLDT Globe Digitel

Competition Subscriber Market Share • Last October 26, 2011 NTC approved PLDT- 51.4% Digitel deal subject to (1) PLDT divesting 10MHz 17.2% of spectrum held by CURE, and (2) Digitel to Smart/PLDT continue providing nationwide unlimited Globe services Digitel th • Entry of 4 player (San Miguel Corp) still looms, 31.4% but timing remains uncertain

5 : Continued industry growth, enabled by more affordable devices and operators’ sustained coverage expansion using wireless access technologies

Subscriber & Industry Revenues Revenue Market Share* • 4.3 Mn subscribers as of 9M 2011, up 25% from 78.9% 76.5% 75.6% 72.6% same period LY -- About 72% of subs on wireless 71.0% 69.4% 68.5% 68.2% 68.3% access technology (3G HSDPA/HSPA, WiMax) • 9M 2011 industry revenues* at Php17.5 Bn , up 15% 29.0% 30.6% 31.5% 31.8% 31.7% 24.4% 27.4% • Room for further expansion – Internet users 21.1% 23.5% estimated at ~33Mn, comprising <35% of population. PC/tablet incidence among users only at 12-13% 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 • Nomadic expected to outpace growth in demand for fixed, @home services – Cheaper alternative Smart/PLDT Globe compared to fixed internet access

Competition Subscriber Market Share • Intense competition in nomadic broadband 11.1% 3.3% 1.3% continues – basic prepaid broadband stick Smart/PLDT remains at 2Q11 price of Php995 (from Php1,245) Globe • Globe revenue market share at 31.7% in 3Q 2011, Digitel from 29% in 3Q 2010* Bayantel WiTribe 31.4% 52.9%

* Based on a two-player market due to limited disclosures of other operators

6 Presentation Outline

9 Globe Telecom, Inc. (GLO)

9 Macro-Economic & Telco Industry Overview

9 Highlights of 9M 2011 Performance

9 Network and IT Transformation: Program and Investment Highlights

9 9M 2011 Financial Results

7 9M 2011 Performance – Maintaining momentum, extending our gains

Highlights Growth as of Growth as Php Mn 9M 2011 • 3Q 2011 revenues at new 9M 2011 of 6M 2011 record high – Up 3% Q/Q, against expectations of a

Service seasonally lean quarter 49,987 9% 7% • Compared to 3Q10, 3Q11 Revenues revenues higher by 13% • Mobile revenues up 7% Y/Y Net Income 7,994 7% 9% while broadband up 35% • Mobile and broadband subscribers higher although Core Net at a slower rate 8,176 15% 8% Income • 9M11 core net income growth (+15%) faster than growth in 6M11 – However, Subscribers core income flat Q/Q with •Mobile 29.1Mn 15% 15% rise in marketing spend & •Broadband 1.4Mn 36% 39% depreciation

8 Growth across all key product groups, and despite negative impact of strong currency

Service Revenues by Product Category Service Revenue Growth in Php Mn YoY % change

+ 35% Reported +7% +16% +9% growth

Growth at +9% +18% +11% constant fx

+ 9% + 9% 1,575 (682) 49,987 + 7% 3,279

45,815

Mobile Fixed Line Broadband Total Data Globe (11%) Fixed Line Voice 9M 2010 Mobile Broadband FX 9M 2011 & Fixed Line Impact ƒ Mobile revenue growth driven by continued rise in domestic voice, SMS, and mobile data services – Internet browsing revenues now at Php1.4Bn, up 64% YoY ƒ ILD voice traffic up 3% Y/Y but revenues lower with 5% peso appreciation & lower rates 9

Sustaining growth by innovating, differentiating, and delivering value to our customers

Compelling device offers

Blackberry Bold Blackberry PlayBook CloudFone Ice –The most Samsung Galaxy Y Apple iPad2 9900 affordable Android phone

Globe Prepaid “Go lang nang go” Campaign

• Strengthening Globe Prepaid’s position through the recently launched “Go lang nang Go”campaign.. • Load Watch – providing subscribers with regular (based on event triggers) “load” / promo balance notifications

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Progress report on our 2011 key priorities… 2011 Priorities as outlined Progress to Date during Feb 2011 Analysts’ Call • Expansion of new concept stores into other cities

• Improvements to IVR systems & call center operations Create step change in customer • 2-year BSS transformation project with Amdocs experience selected as technology partner • Network modernization program designed to significantly raise network performance

Huawei Technologies selected as our partner in our Enhance network performance to serve network modernization endeavor. Target implementation growing traffic profile timeline at 2-3 years. Postpaid revenues up 6% YoY, while prepaid revenues up Accelerate postpaid momentum, 8% vs industry growth rate of <2%. Postpaid net revitalize prepaid subscriber additions at record highs

Create preferred brand for “cellphone Mobile browsing revenues of Php1.4Bn as of 9M 2011, and internet” in the country is up 64% Y/Y

Improve broadband profitability Fixed line and broadband EBITDA up 76% Y/Y

Sustain growth of fixed line data 9M 2011 fixed line data revenues up 9% Y/Y business for corporate sector 14 Presentation Outline

9 Globe Telecom, Inc. (GLO)

9 Macro-Economic & Telco Industry Overview

9 Highlights of 9M 2011 Performance

9 Network and IT Transformation: Program and Investment Highlights

9 9M 2011 Financial Results

15 15 We will dramatically transform Globe’s mobile network and IT systems to enhance customer experience and remain competitive in the future

1 Network Modernization 2 IT Transformation

• Entails change-out of existing mobile network • Involves replacement of ~90% of Business equipment, optimization of network, coverage support systems (BSS) and Business Intelligence expansion, and capacity build-out (BI) platforms over next 2 years – Includes billing, campaign management, front-end systems and enterprise data warehouse

• Faster response to customer requests with • Supports expected significant growth in voice and integrated stores and call center applications data traffic while improving quality, reducing total • Convergent billing, better credit control cost ownership and implementing a future-proof • Quicker timer-to-market for new products network • Better analytic models to support campaigns

• Capex of ~US$700Mn over next 5 years, with • Capex of US$90Mn over next 5 years, with US$570Mn to be spent in 2012/13 ~US$70Mn to be spent in 2012/13

16 Network modernization is Globe’s largest investment to date, 1 spanning all wireless network elements across all layers & regions

Objectives of Network Modernization Expected Benefits

• Significantly improve network service quality & • Increase revenue - From improved network quality customer experience and additional network capacity – Enhance voice connection and quality, SMS delivery – Building capacity ahead of demand by front- time, data/web browsing speeds, signal coverage & loading network rollout, enhancing weak coverage service consistency areas and extending services reach

– Significantly enhance /3G in-/outdoor coverage • Reduce costs – Capex and Opex savings – Increase network resiliency, and redundancy from an optimized network architecture • Provide for 5-year growth in voice and data traffic – Esti mated capex savings of ~US$200Mn over – Substantial network capacity deployment to put Globe 5 years – Competitive prices given magnitude / scale of modernization effort in a strategic position to manage the anticipated data bandwidth explosion – a three- to ten-fold increase in – Opex savings of ~US$170Mn over 5 years voice and data traffic • Reduced power consumption with more efficient equipment, e.g., increased use • Reduce total cost of ownership of mobile network of free cooling systems, green alternative – Adopting state-of-the-art equipment with a simplified energy solutions architecture to improve operational efficiency – e.g., • Savings from an increased fiber rollout reduce 2G network controllers by ~60% in 5 yrs • Lower equipment maintenance costs – Site facility modernization • Lower fuel costs with reduced running time for • Future-proof Globe’s mobile network infrastructure generators

• Joint Innovation Centre to give Globe access to – Prepare for an effective future LTE deployment, and world-class R&D resources, and pool development increase fiberization of base stations by 50% efforts with other global leading operators – Evolve into an all-IP architecture to improve over-all scalability and traffic handling efficiency

17 We will build a modernized, scalable, and future-proof network 1 that is responsive to the future needs of our customers

Where we are today… • Our current mobile network infrastructure is increasingly challenged in meeting the future needs of our customers in terms of robustness and scalability • We want to modernize our network in order to meet the anticipated high traffic growth projections, operate more efficiently, get ahead of the competition and to provide a great customer experience

Where we are heading towards… • Deploying an HSPA+ and LTE-ready network that is more power efficient and future-proof, incl., e.g., ̶ Single-cabinet base stations with a more efficient site and energy footprint ̶ Software Defined Radio (SDR) base stations that supports multi-technology and allow flexible and quicker expansion according to capacity needs in the future Radio Access

• Deploying upgraded, more resilient and higher capacity transport architecture, incl. ̶ Increased fiberization of access and fringe core network ̶ 40/100Gbps Dense Wavelength Division Multiplex (DWDM) transport backbone

Transport ̶ IP-architecture deployed throughout network

• Building a CS Core using a next generation platform that fully supports higher capacity requirements, is more power-efficient, has a simplified node architecture and a greater network resiliency CS Core 18 Likewise, we will transform our IT systems in response to changing 2 business demands and better support our marketing objectives

Where we are today… ƒ We have customer segmentation, analytics, and campaign capabilities that need to be expanded ƒ Our products have limited convergence, and could benefit from quicker time-to-market ƒ Operations-wise, we have a separate customer relationship management (CRM) platform and billing system for our wireless and wireless services ƒ We recognize that an incremental upgrade of our IT systems will not address current market/ business needs; instead we strive to comprehensively re-engineer our IT processes/architecture

We are heading toward IT systems that allow for … ▪ Better understanding of customer behavior in order to create seamless customer service experience ̶ One bill – Complemented by better credit monitoring capabilities Customer ̶ Targeted/timely campaign management with ability for dynamic adjustments

▪ Quick product launches and timely customer loyalty efforts ▪ Better product usage monitoring to facilitate leveraging opportunities for more up- and cross-selling Product

▪ Streamlined and efficient bill runs ▪ Single, robust CRM and problem management system ▪ Simplified, standard-compliant architecture – aligned with TM Forum’s eTOM Operations ▪ Better TCO – US$10Mn in 5-year opex savings, and US$10Mn in capex savings compared to incremental upgrades 19 Financial implications of transformation initiatives: Lower near-term profits from non-cash, accelerated depreciation of non-useable assets but

core earnings and operating cash flows remain strong and well-positioned to grow given the significantly improved capabilities

PnL, Cash , Balance Sheet Implications

• Total combined capex for network and IT transformation of ~US$790Mn over next 5 years with about 80% to be spent in first two years (US$530Mn in 2012 and US$110Mn in 2013) • Implementation period of 2-3 years with benefits of transformation (revenue uplift, capex & opex savings) progressively

realized as new equipment are installed • One-time transition costs of about US$15Mn in 2012 – For project management costs, additional headcount to support IT

transformation, warehousing and logistics costs • Additional debt of US$590Mn in 2012-2013 – Discussions with banks & financial institutions on-going. Vendor-arranged

financing also being explored. Current plan is to raise US$340Mn from local market and US$250Mn from offshore market • Gearing ratios to rise in 2012 with additional debt but will remain well within bank covenants, and is expected to ease

starting 2013

Debt to Equity Debt to EBITDA Covenant = 2 : 1 Covenant = 3 : 1 1.6 1.4 1.3 1.2 1.3 1.0

9M 2011 End 2012P End 2013P 9M 2011 End 2012P End 2013P

20 Lower near-term profits from non-cash, accelerated dep’n of non-useable assets but core earnings and operating cash flows remain strong and well-

positioned to grow given significantly improved capabilities

Non-cash, accelerated depreciation of non-useable assets

• Network and IT transformation programs expected to generate US$180Mn in opex savings and US$210Mn in capex savings over the next 5 years, in addition to the revenue uplift

• However, as network equipment and IT systems will be replaced, Globe expects that assets with

US$388Mn in net book values will be decommissioned after modernization – Value is before proceeds from resale, and is still subject to actual site validation

• Benefits of replacing assets (revenue uplift, opex and capex savings) with newer-generation equipment

and systems exceeded the value of assets to be retired

• Efforts will be taken to maximize re-use during the course of the change-out

• NBV of non-useable, decommissioned assets will impact Globe’s PnL via acceleration of depreciation over

its remaining useful life until such time when replacement capex is ready for service. Owing to its exceptional and non-recurring nature, it will not be considered in determination of core net income

• Accelerated depreciation will be recognized over the 2-3 year roll-out period, as the assets are progressively decommissioned

21 Dividend Policy Change: Pay-out rate now based on core instead of reported net income. This ensures that regular dividend payments will be sustained and will remain competitive despite expected near-term decline

in net income

Change in dividend policy

• Board of Directors has approved change in dividend policy to 75% to 90% of prior year’s core (and not reported) net income to ensure that dividends will remain sustainable and competitive

• As currently defined, core net income excludes all foreign exchange, mark-to-market gains and losses, as well as non-recurring items

• Policy change will take effect with 2012 dividends, based on 2011 core net income

22 Presentation Outline

9 Globe Telecom, Inc. (GLO)

9 Macro-Economic & Telco Industry Overview

9 Highlights of 9M 2011 Performance

9 Network and IT Transformation: Program and Investment Highlights

9 9M 2011 Financial Results

23 23 Consolidated Financial Highlights

*Core NIAT excludes forex, mark-to-market gains and losses, and non-recurring items

24 Continued improvements in operating margins…

EBITDA (in Php Bn) 5% 9% 23.3 24.5 24.8 27.0 76% 2.6 1.5

EBITDA Margin

25 Operating Expenses & Subsidy YoY Change OPEX Growth – YoY in % (in Php Mn) 463 22,960 721 332 11% 418 Staff Costs 21,026 Marketing & Subsidy 19% 4% +9% Network Costs Others 10% Total 9%

QoQ Change OPEX Growth – QoQ in % (in Php Mn) 45 7,997 161 159 Staff Costs 2% 7,602 30 Marketing & Subsidy 11% Network Costs 5% +5% Others 3% Total 5%

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Forward Looking Statements – 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 Globe’ s 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.

28 Thank You

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