CLSA ASEAN FORUM 7-9 MARCH 2018 BANGKOK, THAILAND Company Overview Financial Highlights Industry and Competitive Landscape Summary Business Segments

Home , O Shopping

Media Networks & Studio Entertainment Cable, Satellite & Broadband - Free-to-Air • Entertainment • News • Sports - Pay TV (Cable & • DTT - Global Satellite) - Film & Music - Broadband - Cable Channels - Publishing - Licensing - Radio Digital & Interactive Media Consumer Products & Experiences

- Online - Mobile - Live events - Over-the-Top - Theme park - Home shopping - ABS-CBN stores

3 Revenue Mix For the nine months ended September 30, 2017

Advertising Revenue Consumer Sales

52% 48%

46% 2% 1% 3% 12% 13% 23%

Global Sky Broadcast S&A Digital Others & News Global, & DTT 5% 4% 3%

DTT Kidzania/Retail/Others Films

4 Free-to-Air TV

• Consistent leader in national TOTAL DAY NATIONAL AUDIENCE SHARE

audience shares and ratings CHANNEL 2016 9M 2017 among 13 FTA channels. ABS-CBN* 44.70 46.19 GMA 7 33.80 33.39 TV 5 6.50 5.12 Other FTA 4.10 3.51 • ABS-CBN Free-to-air TV Other Cable 6.50 6.65 advertising revenues * ABS-CBN Channel 2 only. account for more than 80% Source: Kantar Media TV Audience Measurement – Total Homes, Total Philippines (Urban + Rural) of company’s total Period covered excludes Holy Week advertising revenues.

• Primetime shows contribute 77% of total Channel 2 airtime revenues.

5 Free-to-Air TV

AUDIENCE SHARE % AUDIENCE SHARE % TOTAL DAY PRIMETIME

45 45 44 43 42 42 49 50 49 49 48 47 36 33 34 34 34 31 33 33 31 32 31 28

12 11 9 11 7 7 9 8 6 7 7 6

2012 2013 2014 2015 2016 1H 2017 2012 2013 2014 2015 2016 1H 2017

ABS-CBN 2 GMA 7 TV 5 ABS-CBN 2 GMA 7 TV 5

* ABS-CBN Channel 2 only.

Source: Kantar Media TV Audience Measurement – Total Homes, Total Philippines (Urban + Rural) Period covered excludes Holy Week 6 Digital Terrestrial Television

• Launched Feb. 2015; first-mover advantage

• More than 3.6 million boxes cumulative sold as of Sep 2017 COVERAGE AREA • YTD average of 160k boxes sold per month at P1,499/box Benguet Pangasinan (~US$30/box) Tarlac Nueva Ecija • Significantly improved reach in Mega Manila and Central Luzon Pampanga  Incremental advertising revenues expected from: Bulacan Metro Manila (3) . increase in ratings for existing channels Rizal . additional four free-to-air channels Cavite Laguna DTT CUMULATIVE SALES (IN 000's) Metro Cebu Davao 3,655 3,474 Bacolod 3,158 3,139 Cagayan De Oro 2,985 2,829 2,697 Iloilo 2,527 2,372 2,204

2016 Jan Feb Mar Apr May Jun Jul Aug Sep 7 DTT: A Complete Range of Entertainment & Information Content

2 FTA (CH2 & CH23) + Additional 4 Channels Cinemo Audience Shares (in %) (available only on ABS-CBN TVplus) 2.50

1.09 Channel 0.34

News/ Educational Movies (Tagalog) Kids Edutainment

Public Affairs Programs 2015 2016 3Q20171H2017 Genre Yey Audience Shares (in %) Live broadcast of An all-day Filipino An all-day Kids’ Curriculum-based 1.30 radio format Movie Channel Channel that programs and programs on TV, that offers a wide features a mix of content for 0.69 with news and variety of action wholesome action, primary and public affairs and comedy fun, adventure and secondary levels component movies featuring edutainment 0.21

Content “Pinoy” idols programs for boys Description and girls 2015 2016 3Q20171H2017 Source: Kantar Media TV Measurement, Total Philippines Average Audience Share 2015-2017

8 DTT : Changing the distribution landscape

Total Philippines – TV Households Mix by Platform Total Urban Mega Metro Philippines Philippines Manila Manila HOMES (in Thousands) 18,935 9,857 5,267 3,032 CABLE or DTT HOMES 36.1% 44.6% 63.3% 78.1% Cabled Homes 23.8% 24.1% 27.5% 38.3% DTT Homes 12.3% 20.5% 35.8% 39.8% NON CABLE & NON DTT HOMES 63.9% 55.4% 36.7% 21.9%

Source: Kantar Media - July- September 2017

9 Global

• ABS-CBN content distributed to Filipino subscribers abroad. Program Syndication + 25% + 62% 142 • Overall viewership of more than 3.1 million as of September 2017 114

70 • Program Syndication

• Revenue Streams: 9M 2015 9M 2016 9M 2017  Subscription • Cable Program Syndication Territories

• DTH ASIA AFRICA OTHERS • IPTV Cambodia Kenya Mexico • TFC.tv Indonesia Nigeria Peru  Movie Screening Malaysia Seychelles Kazakhstan Myanmar Tanzania  Shows / Events Thailand Uganda  Remittance Vietnam Middle East 10 Film Production and Distribution

• Star Cinema - Leading local film producer; Local Theatrical Receipts 9M2017 Local and Foreign Theatrical Receipts 9M2017 about 16 films for theatrical release per year Others Star 2% Cinema • Revenue Streams: 28% • Local and international theatrical sales Others 2% • Program rights from cable, and Foreign • FTA, OTT, international sales, DVD sales, Star Films Cinema 70% merchandising 98%

• One movie can generate up to Php 600M in ticket sales locally and over US$ 2M overseas • Revenue sharing with theaters ~ 50% • Growth strategies • Partnerships to operate theaters (e.g. Citymalls) • Open new territories (e.g. Malaysia, Vietnam), and • Subtitling in foreign languages to broaden reach

11 Cable, Satellite & Broadband

Cable, Satellite & Broadband total revenues grew by P438M or 7% driven by the 24% increase in overall Sky subscribers

Sky Current Network: • Homes passed: UNIQUE SUBSCRIBERS AS OF SEP 2017 SUBSCRIBERS ARPU  Cable: 2.1m  Broadband: 1m AS OF SEPTEMBER 2017 Cable * 609,000 PHP 571 • DTH nationwide reach

667,000 DTH 295,000 PHP 129

Broadband 205,000 PHP 1,128

TOTAL 1,109,000

One-play * Excludes free tier subscribers 520,000 One Sky Plans (Sample) Fiber-powered broadband Up to 8MBPS Up to 16MBPS Two-play + Cable Channels: HD Cable TV 10HD; 30SD 10HD; 30SD 147,000 + Mobile Internet 1GB 1GB Monthly Fee PhP1,799 (US$35) PhP2,199 (US$43)

12 Digital and Interactive Media

ABS-CBN.com remains the #1 Philippine based website across all categories in the Philippines. ABS-CBN digital properties iWant TV and TFC.tv with close to ABS-CBN Mobile with close to revenue in 2017 up 26% versus 8.8M and 73k active subscribers as 946,000 subscriber count as of last year of September 2017 September 2017

No. of Activity Platform Subscribers + 56% Watching 904,944 + 41% 945 8,858 Watching 72,617 (Overseas) + 78% + 74% 6,282 Watching 63,250 607

Listening and 40,971 watching 3,526 349

Reading* 253,768

Movie 1,058,000 9M 2015 9M 2016 9M 2017 9M 2015 9M 2016 9M 2017 Community *Unique users of No Ink app monthly 13 Digital and Interactive Media Initiatives

No. of Platform Followers/Talents 2017 Revenues 2016 Revenues % Variance YTD

16,321,300 65,156,934 23,916,990 +172%

7,609,267 176,344,382 111,810,605 +58%

378 talents 26,856,697 16,947,571 +58%

550 talents 33,183,740 6,130,571 +441%

Programmatic N/A 49,935,158 28,083,558 +78%

14 Consumer Products and Experiences

Generated P324M in total revenue in 9M of 2017, • ABS-CBN has franchise for the Philippines 224k attendance as of September. • Opened August 7, 2015 • 10,000 sq. m. indoor facility at the Bonifacio Global City with 1,500 visitor capacity • With 66 establishments and 50 industry partners as of to date  Optimize content experience: • FreeZtyle Play • BooZt: Star Magic Workshop, Summer Camp, Sports Camp • New Establishments in 2017: Film Academy, Museum, Disaster Preparedness Center

15 Consumer Products and Experiences

O Shopping Products

• Continuously offers new products and promos to assure quality home TV shopping and online experience • Generated P632M in revenues, 2% higher in 9M of 2017.

O-Shopping Revenue

+ 23% + 2% 617 632

476

9M 2015 9M 2016 9M 2017

16 Consumer Products and Experiences

Our events bring the ABS experience closer to our audiences with over P218M • Licensed fan merchandise line for various ABS- revenues generated in 9M of 2017. CBN TV programs • Licensed on-ground activation for UAAP Volleyball • Launch of Ravelo Komiks Superheroes brand

ABS-CBN INTERACTIVE ENTERTAINMENT- BASED RETAIL EXPERIENCE STORE • Floor area of ~670 sqm inside a major shopping mall • Capacity of ~2,000 visitors per day • Themed Products and customized offerings (e.g. interaction with celebrities, game shows, etc.) • Target opening date: Q2 2018

17 Customer Relations Management (CRM)

Our Enterprise Customer Database (ECD) contains Touchpoints: contact information and viewing activity of our ‘known’ Local: Global: Kapamilyas • TV • TFC.tv • Radio • IPTV • Films • DTH • Music • Films • Cable TV/DTH • Remittance • DTT • Cargo • Mobile • Concerts/events • Broadband • Liveshows • iWanTV • Social Media ECD • abs-cbn.com 12.6 M • ABS-CBN Online & Retail Stores Customers • O-Shopping • Kidzania • Magazines/books • Concerts/events • Mall tours Introduced loyalty program in July 2017 with more than 2.6 million registered members to date. 18 Company Overview

Financial Highlights Industry and Competitive Landscape Summary Financial Summary For the nine months ended September 30, 2017 In millions PhP

Revenue EBITDA Net Income + 12% + 50% + 20% - 5% - 5% 31,166 7,410 2,848 29,512 7,035 - 20% 27,761 6,151 2,267 1,894

9M 2015 9M 2016 9M 2017 9M 2015 9M 2016 9M 2017 9M 2015 9M 2016 9M 2017 Margins 22% 24% 24% 7% 9% 8%

20 Business Segment Report For the nine months ended September 30, 2017

Operating Revenue Net Income NI Attributable to Parent Segment 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 Media Networks & Studio Entertainment 23,652 21,248 3,179 2,556 3,270 2,605 Margin 13% 12% 14% 12%

Cable, Satellite & Broadband 6,411 6,849 69 75 44 54 Margin 1% 1% 1% 1%

Digital & Interactive Media 491 839 (361) (306) (202) (206)

Consumer Products & Experience 612 575 (39) (58) (16) (41)

21 Capital Expenditures

Spent and committed Php 5.5B for 9M; Php 7.9 FY 2017 estimate

7,906

5,522 4,652

3,197

2,216 1,422

908 1,038

3 Q 2 0 1 7 2 0 1 7 L E

Program Rights Cable, Satellite & Broadband Digital initiatives, Maintenance & Others

22 Balance Sheet Highlights For the nine months ended September 30, 2017 In millions PhP

Total Assets Total Borrowings Equity

72,734 72,877 33,012 31,692 70,424 20,402 20,472 20,311 28,715

2015 2016 9M 2017 2015 2016 9M 2017 2015 2016 9M 2017

Ratios 2015 2016 9M 2017 Current 1.88 2.02 2.18 Debt-to-Equity 0.71 0.65 0.62 Net Debt-to-Equity 0.31 0.30 0.28

23 Company Overview Financial Highlights Industry and Competitive Landscape Summary Philippines: Age Demographics

Source: http://www.indexmundi.com/philippines/age_structure.html https://www.cia.gov/library/publications/the-world-factbook/geos/rp.html 25 Philippines: Media Landscape

• Philippine household ownership of TV at 75% (17.8 million TV households) • Metro Manila – Philippines’ primary urban market • 13.1 M people (13% of total population) • 3.0M TV households (17% of total TV households)

Total Philippines Metro Manila Cable TV penetration (among TV HHs) ~24% ~34% PC ownership (among total HHs) ~13% ~40% Internet access at home (among total HHs) ~13% ~41% Wireless Broadband ~6% ~12% Wired Broadband ~7% ~29% Mobile phone ownership (among total HHs) ~84% ~98% Mobile phone ownership (among 16+ population) ~60% ~83% Smartphone ownership ~30% ~61%

Sources: In-house media landscape study 2016; NSO

26 Philippines: Media Market

Total Advertising Spend 2016 (P70.9 B) 2016 Ad Spend By Industry

Magazines Outdoor Industry & Newspapers Alcohol & Entertainment 1% 4% Others Tobacoo Services 1% Govt 4% Automotive 0.3% 4% 2% Agencies Internet 2% 1% Others 10% 2% Telecom 4%

Free-to- Radio Air Financial 13% Institutions 2% 62% FMCG 82%

Pay TV 6%

Source: Media Partners Asia, 2017 Source: Company Data 27 Company Overview Financial Highlights Industry and Competitive Landscape Summary ABS-CBN: The Philippines’ leading media and entertainment company

BUSINESSES Free-to-Air √ √ √ Films and Music √ √ Global √ √ Remittance √ √ Publishing √ Pay TV √ √ Mobile √ √ Educational Theme park √ TV Shopping √

Note: TV 5 owned by First Pacific / PLDT Group

29 Except for historical and operating data and other information of historical matters, the statements contained herein are “forward-looking statements”. The words “believe”, “intend”, “plan”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will” or other similar words are frequently used to indicate these forward looking statements. Any such forward-looking statement is not a guarantee of future performance and involves a number of known and unknown risks, uncertainties and other factors that could cause the actual performance, financial condition or results of operation of ABS-CBN to be materially different from any future performance, financial condition or results of operation implied by such forward-looking statement.