FY 2016 Investors’ Briefing Financial and Operating Results March 20, 2017 Business Segments Media Networks & Studio Entertainment Cable, Satellite & Broadband - Entertainment - News - Global - Pay TV (Cable & - Film & Music Satellite) - DTT - Broadband - Sports - Cable networks - Publishing Digital & Interactive Media Consumer Products & Experiences - Online - Mobile - Live events - Over-the-Top - Themepark - Home shopping - ABS-CBN store 2016 Highlights ABS CBN delivers a PHP3.5B net income, a 39% YoY growth Media Networks o Remains strong at net income of P4.2 billion, 18% YoY improvement and Studio Entertainment o Net income margin expanding from 11% to 13%, 28% YoY improvement o ABS CBN leads in total national day ratings and audience share boosted by strong Mega Manila ratings o Distributed 2.3 million DTT boxes (cumulative) by end of year o Record-breaking box office performance of Super Parental Guardians at P600 million Cable, Satellite o Added 150,000 subscribers, a 17% YoY improvement and Broadband o Broadband revenue grew by P811 million, a 49.2% YoY growth o Successful launch for DTH business with 112,000 subscribers in 7 months Digital and Interactive o 7 million registered users in ABS-CBN owned OTT platforms Media o ABS-CBN.com is the #1 Philippine based website across all categories in the Philippines o Digital advertising revenue grew by 26% YoY Consumer Products o ASAP Live in New York City entertained close to 9,000 live audience and Experiences o Kidzania opened its facilities to 362,000 visitors for the year Consolidated 2016 Financial Results (In millions Php) Revenue EBITDA Net Income + 9% + 14% + 39% 41,630 + 24% 0% 3,525 38,278 9,853 33,544 + 4% + 6% + 25% 7,940 7,476 0% 2,545 2,030 2014 2015 2016 2014 2015 2016 2014 2015 2016 Net income attributable to parent increased from P2.9B in 2015 to P3.9B in 2016 Consolidated 2016 Financial Results Net Income Margin EBITDA Margin ROE + 2% + 2% 0% + 2% 9% 11% 22% - 2% 22% + 1% + 1% 0% 20% 0% 9% 7% 6% 8% 2014 2015 2016 2014 2015 2016 2014 2015 2016 Consolidated 2016 Quarterly Financial Results (In millions Php) Revenue EBITDA Net Income + 14% + 37% + 78% 11,195 2,974 + 7% 1,353 - 23% + 3% 2,439 2,277 2,163 - 9% 10,464 - 46% - 8% 10,176 761 734 677 9,795 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Consolidated 2016 Revenue BY REVENUE CATEGORY BY GEOGRAPHICAL LOCATION + 9% + 9% + 14% + 14% 5,961 14% + 0% + 0% 6,078 16% 17,980 43% 17,013 44% 5,715 17% 14,664 44% 35,668 86% 32,200 84% 27,828 83% 57% 21,265 56% 23,650 18,880 56% 2014 2015 2016 2014 2015 2016 Ad Sales Consumer Domestic International Consolidated 2016 Quarterly Revenue BY REVENUE CATEGORY BY GEOGRAPHICAL LOCATION + 14% 1% + 14% 1% + 10% + 10% - 12% 1,418 13% - 12% 1,489 14% 84% 86% 4,260 38% 1,541 16% 1,468 15% 57% 5,493 51% 4,213 43% 4,014 41% 51% 83% 58% 87% 9,777 9,335 86% 8,254 84% 16% 8,349 85% 14% 6,935 62% 17% 5,582 57% 43% 5,803 59% 5,330 49% 42% 49% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ad Sales Consumer Domestic International Consolidated 2016 Costs and Expenses 36,690 + 6% 34,686 + 14% 30,369 0% 12,012 + 5% 11,434 + 4% 11,008 - 3% 12,017 11,131 + 8% + 25% 8,879 - 1% + 4% 12,121 12,661 10,482 + 6% + 16% 2014 2015 2016 GAEX Cost of Sales Production Cost Consolidated 2016 and 2015 Quarterly Costs and Expenses 2015 Quarterly 2016 Quarterly + 1% + 11% 0% + 13% 3,168 2,900 2,847 3,269 2,882 2,771 2,961 2,648 2,723 3,228 3,001 2,891 3,065 2,768 2,833 2,639 3,755 3,149 3,193 3,035 3,588 2,334 2,883 2,845 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q GAEX Cost of Sales Production Cost GAEX Cost of Sales Production Cost Consolidated 2016 Segment Report Operating Revenues Operating Income Segment 2014 2015 2016 2014 2015 2016 Media Networks & Studio Entertainment 24,645 28,511 30,568 5,030 4,719 6,179 Margin 20% 17% 20% Cable, Satellite & Broadband 7,764 8,083 8,761 404 186 219 Margin 5% 2% 2% Digital & Interactive Media 653 712 781 (2,134) (1,155) (1,265) Consumer Products & Experiences 482 971 1,520 (126) (157) (193) Free-to-Air Advertising revenue growth at 15% YoY Advertising Revenue + 15% Total Day National Audience Share for 2016 22.4 CHANNEL 2014 2015 2016 19.4 17.0 ABS-CBN 46.67 47.03 49.58 GMA 7 33.90 35.50 33.80 TV 5 9.20 7.40 6.50 Other FTA 3.80 3.90 4.10 Other Cable 6.60 6.50 6.50 2014 2015 2016 Source: Kantar Media TV Ratings Measurement Channel 2 Audience Share ABS CBN Channel 2 leads across all time blocks MORNING BLOCK (6AM - 12NN) NOONTIME BLOCK (12NN - 3PM) 37.4 38.6 41.5 42.4 43.7 35.8 36.6 37.4 34.9 34.8 36.8 34.6 11.4 9.7 8.2 6.6 6.5 5.7 2014 2015 2016 2014 2015 2016 ABS-CBN GMA TV5 AFTERNOON BLOCK (3PM - 6PM) PRIMETIME BLOCK (6PM - 11PM) 44.4 49.3 49.5 48.5 42.2 41.4 36.9 33.9 34.6 32.1 31.0 32.5 9.8 8.02 6.8 7.8 7.1 6.6 2014 2015 2016 2014 2015 2016 Source: Kantar Media TV Audience Measurement – Total Homes, Total Philippines (Urban + Rural) Period covered excludes Holy Week ABS-CBN leads in total day national ratings with shows dominating Top 20 spots in 2016 RANK CHANNEL PROGRAM RATINGS 1 ABS-CBN FPJ's Ang Probinsyano Mon-Fri 40.0 2 ABS-CBN The Voice Kids Sunday Sun 38.2 3 ABS-CBN The Voice Kids Saturday Sat 37.0 4 ABS-CBN Pangako Sa'yo Mon-Fri 34.3 5 ABS-CBN Dolce Amore Mon-Fri 33.8 6 ABS-CBN Pilipinas Got Talent Sunday Sun 32.0 7 ABS-CBN Pilipinas Got Talent Saturday Sat 31.9 8 ABS-CBN Dance Kids Saturday Sat 31.2 9 ABS-CBN Pinoy Boyband Superstar Sunday Sun 30.8 10-11 ABS-CBN Dance Kids Sunday Sun 30.7 10-11 ABS-CBN Wansapanataym Sun 30.7 12 ABS-CBN TV Patrol Weekday Mon-Fri 30.6 13 ABS-CBN MMK 25 Sat 29.9 14 ABS-CBN Pinoy Boyband Superstar Saturday Sat 29.1 15 ABS-CBN Home Sweetie Home Sat 24.9 16 ABS-CBN Magpahanggang Wakas Mon-Fri 24.4 17 ABS-CBN Goin' Bulilit Sun 23.3 18 GMA Encantadia Mon-Fri 23.2 19 ABS-CBN Rated K Handa Na Ba Kayo? Sun 21.3 20 GMA Alyas Robinhood Mon-Fri 21.0 Source: Kantar Media TV Audience Measurement – Indivs 13+, National TV Patrol & UKG: Most watched news programs PRIMETIME NATIONAL RATINGS MORNING NATIONAL RATINGS 35.0 6.0 30.0 25.0 4.0 20.0 15.0 2.0 10.0 5.0 - - 2014 2015 2016 2014 2015 2016 TV Patrol 24 Oras Umagang Kay Ganda Unang Hirit *TV Patrol ratings based on quarterly average Halalan & Ms. Universe: Most watched broadcast coverage 40.6% Source: Kantar Media TV Ratings Measurement Sports & Action: Most number of Sports Properties on Free-to-Air Launched our high-definition cable channel on Sky Cable and Destiny Cable in 2016 International Business Generated P5.9 B in revenues, 14% of total revenues Revenue TFC Viewership Program Syndication + 47% + 3% 9,318 - 17% 150 3.1 7,777 3.0 102 5,651 2.9 64 2014 2015 2016 2014 2015 2016 2014 2015 2016 TFC Channels Program Syndication Territories ASIA AFRICA OTHERS Cambodia Kenya Mexico Indonesia Nigeria Peru Malaysia Seychelles Kazakhstan Myanmar Tanzania Thailand Uganda Vietnam Middle East Film & Music Star Cinema sets new record for highest grossing Filipino film Revenue + 5% P600M 1,304 1,316 1,258 2014 2015 2016 Market Share Digital and non-digital concerts, Talent development and Icon building 21% 79% Star Cinema Others Digital Terrestrial Television • More than 2.3 million cumulative boxes sold to date • Affordable TV Plus pricing by lowering SRP from P2,500 to P1,999 and now P1,499 • DTT channels now available in iWantTV, Sky Cable and Sky Direct 21% Cable Networks ABS-CBN Channels Represented Channels REVENUE Cable channel group accounts for 23% - 18% 480M audience share of total 395M 375M nationwide cable channels only viewing; with over 356 active 601M 651M 542M cable operators Source: Kantar Media TV Audience Measurement – Total Cabled Homes, Total Philippines (Urban + Rural) nationwide 2014 2015 2016 Date covered: Jan-Dec 2016 (Excluding Holyweek) Airtime Consumer Cable, Satellite & Broadband Revenue + 9% Total revenues grew by 8.8B P644M driven by a 8.1B 49% increase in 7.8B broadband revenues Our broadband subscriber base continues to 2014 2015 2016 expand, growing by 45% in 2016. DTH subscribers reached 112k by end of year. New all-in-one internet, cable TV and video-on-demand subscription plans now available via One Sky Sky Subscribers 1.03M + 17% 881K 207 143 112 738 738 711 FY 2015 FY 2016 Cable DTH Broadband Digital and Interactive Media ABS-CBN.com is the #1 Philippine based website across all categories in the Philippines ABS-CBN one domain has an average of 26.8M users with over 250M page views per month iWant TV and TFC.tv has over ABS-CBN Mobile ended the year ABS-CBN digital properties 7M combined active subscribers to with over 904,000 subscriber count generated Php447M revenue in date spending an average of 320 and over 7,500 activations 2016, 26% up vs.