EMPOWER THE DIGITAL FILIPINO 2

Photo by: Art Oca

3 2017 Globe Integrated Report

 GLOBE IS MAKING
EVERYDAY WONDERFUL
To inspire experience filled with wonder,
so we can enable a digital lifestyle that connects us all.

And the faster we keep moving,

the closer we get to a brighter future for the Filipino.

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EMPOWER THE DIGITAL FILIPINO 01

 Photo by: Patrick Marcelo

02 2017 Globe Integrated Report

TABLE OF CONTENTS
04 ABOUT US 24 BUILDING THE 78 CORPORATE
NETWORK OF GOVERNANCE
CHOICE

08 HOW WE 38 EMPOWERING 102 BOARD OF

CREATE VALUE CONSUMERS DIRECTORS

10 2017 AT A 48 OBSESS 114 RISK

GLANCE ABOUT THE MANAGEMENT
CUSTOMER

14 CHAIRMAN’S 58 WIN THE 124 MANAGEMENT'S

MESSAGE HOME DISCUSSION &
ANALYSIS

18 A CONVERSATION 66 PUTTING
WITH THE PEOPLE FIRST
PRESIDENT
AND CEO

EMPOWER THE DIGITAL FILIPINO 03

 ABOUT US
Globe Telecom, Inc. is the number one mobile company in the Philippines.
We provide cellular, broadband and mobile data services,
recognizing the growing preference of our customers towards
content-rich offerings and multimedia applications that enrich
the Filipino digital lifestyle.

Supported by over 7,200 employees and over 1.1 million retailers, distributors,
suppliers and business partners nationwide, we serve 63.4 million customers,
small and medium-sized businesses, as well as corporate and enterprise clients.
We operate one of the largest, most technologically-advanced and robust mobile,
fixed line and broadband networks. We aspire to bring first-world internet connectivity,
so we can help our nation be admired all over the world.

Our principal shareholders are Ayala Corporation and Singtel,

both industry leaders in their respective countries and in the region.
We are a member of Bridge Alliance, a strong alliance of premier mobile
operators serving over 800 million customers from 34 countries
in Asia Pacific, Middle East and Africa, along with our strategic partners
in Europe and Americas. Globe has 756 roaming partners
in 236 calling destination worldwide.

Our executive office is located at The Globe Tower,

32nd Street corner 7th Avenue, Bonifacio Global City,
Taguig City 1634, Metro Manila, Philippines.
04 2017 Globe Integrated Report
 VISION
We see a Philippines where families’
dreams come true, businesses flourish,
and the nation is admired.

MISSION
We create wonderful experiences for
people to have choices, overcome
challenges, and discover new ways to
enjoy life.

PURPOSE
In everything we do, we treat people right
to create a Globe of Good.

THE GLOBE WAY

We put customers first.
We value people and together, we make the difference.
We act with integrity.
We care like an owner.
We keep things simple.
We move fast, we are better, every day.

OUR CIRCLE OF HAPPINESS PHILOSOPHY

EMPLOYEES are empowered and find meaning in work.
CUSTOMERS are special and valued.
SHAREHOLDERS are confident and rewarded.

STRATEGIES
1. BUILD THE NETWORK OF CHOICE
To be an admired nation by providing mobile services to about 95% of cities
and municipalities in the Philippines by end of 2018

2. EMPOWER CONSUMERS
To be the purveyor of the digital lifestyle by providing affordable world-class
entertainment available to all

3. OBSESS ABOUT THE CUSTOMER

To create the best experiences for every digital Filipino through a technology-
driven and customer-centric approach on customer service, education,
engagement and rewards

4. BRING WONDERFUL EXPERIENCES TO THE HOME

To make leading-edge network technology available to two million homes in
20,000 barangays by end of 2020

5. PUT PEOPLE FIRST

To create a high performing organization through a purpose-driven workforce
with a culture of empowerment, collaboration and innovation

Photo by: Art Oca

EMPOWER THE DIGITAL FILIPINO 05

 UKGT2
100%

THE GLOBE GMI2

100%

GROUP GTEU
GIEE2
100%
CONGLOMERATE MAP 100% GTIC US
100%

TechGlobal1
49% GTHK
INNOVE 100%
100%
ASTICOM
BMPL 100%
10% GTSG
GTI 100%
100%

AFPI
20%

FLIPSIDE2
KICKSTART 40%
100%
BHC
50%
Globe Capital Venture
Holdings Inc.
100%
Adspark Holdings
BAHC 100%
50%

Adspark Inc.
VTI Yondu 100%
Globe Telehealth 1
50% 49% 50%

Taodharma Bayantel
67% 98.58% Socialytics
Globe Fintech3
45% 70%
Fuse
SKY 100%
INTERNET
100%
G-Xchange3
Globetel-Japan
100%
100%
RCPI
91%

Telicphil
NLI
65% 58%

06 2017 Globe Integrated Report

SUBSIDIARIES
Innove Communications, Inc. 100% Provides fixed line telecommunications and broadband services, high-speed
internet and private data networks for enterprise clients, services for internal
TechGlobal Data Center, Inc.1 49% applications, internet protocol-based solutions and multimedia content
delivery.
GTI Business Holdings, Inc. (GTI) 100% Provides Voice Over Internet Protocol (VOIP) services.

• GTI Corporation (GTIC US) 100%

• Globe Telecom HK Limited (GTHK) 100%
• Globetel Singapore PteTE. LtdTD (GTSG)., 100%
• Globetel European Limited (GTEU) 100%
• UK Globetel Limited (UKGT)2 100%
• Globe Mobile’ Italy S.r.l. (GMI)2 100%
• Globetel Internacional European España, S.L. 100%
(GIEE)2
Kickstart Ventures, Inc. (Kickstart) 100% Provides aspiring technopreneurs with funds and facilities, mentorship and
• Flipside Publishing Services, Inc. (FPSI)2 40% market access needed to build new businesses.

Asticom Technology, Inc. (Asticom) 100% Provides shared services, system integration, and information technology
services to domestic and international markets.
Globe Capital Venture Holdings Inc. (GCVHI) 100% A holding company through which strategic businesses and initiatives are to
be consolidated.
• Globe Fintech Innovations, Inc. (GFI)3 45%
• Fuse Lending, Inc. (Fuse) 100%
• G-Xchange, Inc. (GXI)3 100%
• Adspark Holdings, Inc. (AHI) 100%
• Adspark, Inc. (AI) 100%
• Socialytics, Inc. (Socialytics) 70%
• Global Telehealth, Inc.(GTHI)1 50%
Bayan Telecommunications, Inc. (BTIBayan) 98.58% Provides data and communications services such as dedicated domestic and
• Radio Communications of the Philippines, Inc. 91% international leased lines, frame relay services, Internet access, and other
(RCPI) managed data services like Digital Subscriber Lines (DSL).
• Telecoms Infrastructure Corp. of the Philippines 58%
(Telicphil)
• Sky Internet, Incorporated (Sky Internet) 100%
• GlobeTel Japan, Inc. 100%
• NDTN Land, Inc. (NLI) 65%
Taodharma, Inc. (Tao) 67% Engaged mainly in the operations of mobile communication devices and
accessories retail stores which are strategically located across the
Philippines.

JOINT VENTURES
Bridge Mobile Pte. Ltd. (BMPL) 10% Provides different regional mobile services to our customers.
Vega Telecom, Inc. (VTI) 50% Principal activities involve telecommunications.
Bow Arken Holdings Company, Inc. (BAHC) 50% Holding company.
Brightshare Holdings Corporation (BHC) 50% Holding company.

ASSOCIATES
AF Payments, Inc. (AFPI) 20% A Public-Private Partnership project to design, build, and operate the
Automated Fare Collection system (AFCS).
Yondu, Inc. 49% Provides internet and mobile value-added services, information technology,
and technical services including software development and related services.
1
Globe Telecom’s stake in these companies are from a joint venture agreement signed by Globe Telecom’s subsidiary and other joint venture companies.
2
Ceased operations in 2016
3
Deconsolidated in 2017

EMPOWER THE DIGITAL FILIPINO 07

 HOW WE CREATE VALUE
Globe Telecom is the country’s leading mobile company, driving highly customer-centric value with keen focus on enriching Filipino
lives in the digital age. True to our nature of innovation and going beyond achieving business success, Globe sought and found a
purpose larger than itself to serve customers more meaningfully.

Our Purpose is expected to further enhance our Circle of Happiness philosophy: that happy and engaged employees deliver
wonderful customer experiences and strong business growth for happy shareholders. As a purpose-led organization, we are poised to
create wonderful, positive, and sustainable impact to society.

CAPITALS OUR KEY STRATEGIES

FINANCIAL BUILD THE NETWORK OF CHOICE

Driven by continued mobile To be an admired nation by providing mobile
data revenue growth and strong services to about 95% of cities and municipalities in
consolidated service revenues; the Philippines by end of 2018
continued investment in network
expansion to monetize rising data traffic
EMPOWER FILIPINO CONSUMERS
To be the purveyor of the digital lifestyle by providing
MANUFACTURED affordable world-class entertainment available to all
Fast-tracking telco infrastructure build
and diversifying the customers’ multiple
touchpoints OBSESS ABOUT THE CUSTOMERS
To create the best experiences for every digital
INTELLECTUAL Filipino through a technology-driven and
Best in class content is continually customer-centric approach on customer service,
enriched through local and global education, engagement, and rewards
partners
BRING WONDERFUL EXPERIENCES
HUMAN TO HOME
Developing a people-centered To make leading-edge network technology available
organization to two million homes in 20,000 barangays by end
of 2020
SOCIAL AND RELATIONSHIP
Putting customer-centricity and PUT PEOPLE FIRST
nation-building at the core of To create a high-performing organization through
business a purpose-driven workforce with a culture of
empowerment, collaboration and innovation

08 2017 Globe Integrated Report

 VALUE WE CREATE UN SDG COMMITMENT

SHAREHOLDERS
We continue to provide a sustainable,
consistent and competitive dividend
distribution.

EMPLOYEES
Our employees are empowered to champion
our purpose to create a Globe of Good.

CUSTOMERS
Our customers are enabled with the power of
choice as they embrace a digital lifestyle and
we enable micro, small, medium and large
enterprises with relevant business solutions.

BUSINESS PARTNERS AND SUPPLIERS

We provide opportunities to our suppliers and
business partners within our supply chain.

INTEGRATED APPROACH
Traditionally, Globe has been publishing annual and sustainability reports, with emphasis on our financial and operational
performance, management strategies, business activities, and corporate social responsibility initiatives.

Shifting our focus to sustainable value creation, we have published our first Integrated Report for 2017. It contains information
about our strategy, governance and performance in the context of its external environment and how these create value.

Through this Integrated Report, we hope to deepen our stakeholders’ understanding of how we contribute to addressing the
major challenges and key issues in today’s society, linking our sustainability performance to our business results. This report also
highlights our strategy in line with our vision, anticipating a shift towards a pervasive digital lifestyle of every Filipino.

EMPOWER THE DIGITAL FILIPINO 09

 2017 AT A GLANCE

FINANCIAL DIGITAL NATION

• ₱127.9B Consolidated Service Revenue • Customers
(up 6% YoY) –– 63.4M customers
• ₱53.3B EBITDA (up 7% YoY) »» 2.48M postpaid customers
• ₱15.1B NIAT (down 5% YoY) »» 58.2M prepaid customers
• ₱42.5B (US$844M) Capital Expenditures »» 1.3M home broadband subscribers
(CAPEX) »» 1.4M landline subscribers
• 33% CAPEX to Revenue Ratio –– 8.5M foot traffic in 240 Globe Stores
• ₱12.1B Dividend Payment to Common nationwide
Shareholders (up 3.5% YoY) –– 22.2M calls received through Globe
• 23% Return on Equity Hotline
• 30.3% Shareholder Return (based on –– 265,740 Globe Community Members
a closing share price of ₱1,900 as of with 23.7M page view traffic
December 29, 2017) –– 27% Net Promoter Score
• Network Infrastructure
ENVIRONMENT –– 37,517 Base Stations 24,700 for 4G
• 482 CO2 tons reduced since 2014 from (HSPA+, WIMAX, LTE)
3,017 sites with green solutions –– 1,649 LTE 700 MHz sites
• 224,290.69 kg of e-waste recycled –– 3,754 LTE 2600 MHz sites
• 58 tons of paper saved from 3.3M –– 4,775 LTE 1800 MHz sites
customers with paperless billing –– Over 10,000 access points for free public
• 627,226 seedlings planted since 2010 WiFi services
–– 600 petabytes of mobile data traffic
(66% increase YoY)
–– Rollout of 400,000 fiber broadband lines
(from 260,000 in 2016)
–– Over 400M SMS blocked since 2016

10 2017 Globe Integrated Report

 PEOPLE COMMUNITY
• 7,206 regular employees • Over 1.1M retailers nationwide
(54% male and 46% female) • ₱33.6B business to local suppliers
• Employee Engagement • 8,170 health-related consultations through
–– 91% engagement score in 2016 (net of KonsultaMD (42% up from 2016)
retention score) • 500,000 residents benefit from Makatizen
–– 52.8% of workforce or 3,803 employees card facilities
volunteered for social development • Financial inclusion for 5.1M Mynt
causes customers
–– 14.8% of workforce or 1,072 employees • ₱332M loans disbursed through Fuse
are members of 12 employee interest Lending since inception
clubs, with 102 club-organized events • Invested in 35 digital startups through
• Learning and Development Kickstart Ventures
––₱62.2M invested in skills training and • 5 social innovators supported through the
development Globe Future Makers Program
–– 24.31 training hours average per • Over 16,300 students trained under the
headcount Digital Thumbprint Program
• Health and Safety • 142 public high schools with Global
–– Zero fatality rate and zero man-hours Filipino Schools program
lost
–– 7.8% of workforce or 564 employees
trained on related occupational safety
and health lessons

REPORTING PARAMETERS

The 2017 Integrated Report covers data from January 1, 2017 to December 31, 2017. Select data from previous year may be
included to quantify and show year-on-year (YoY) comparison, if applicable.

We have limited the reporting coverage to Globe Telecom, Inc., Innove Communications, and G-Xchange, Inc. particularly on
the environmental, social and governance topics. Economic performance covers operations from Globe Telecom, Inc. and our
subsidiaries with 100% ownership. We have aligned our reporting in accordance to the International Integrated Reporting
Framework (International <IR> Framework), advocated by the International Integrated Reporting Council (IIRC) and in reference
to the Global Reporting Initiative (GRI) Standards, the United Nations’ Sustainable Development Goals, the ASEAN Corporate
Governance Scorecard Principles and the Securities and Exchange Commission (SEC) Integrated Annual Corporate Governance
Report (i-ACGR). Our report has undergone third party external assurance conducted by DNV-GL.

EMPOWER THE DIGITAL FILIPINO 11

 RECOGNITIONS
7TH WINTER CHORAL FESTIVAL ASIA-PACIFIC TAMBULI AWARDS • Philippines Fixed Broadband Service
• Gold Diploma, The Globe Voices @ • Tambuli Advertiser of the Year Provider of the Year
Work • Gold Award, Rogue One, Media Video • Telecom CEO of the Year
• Winner, The Globe Voices @ Work Screen
under Mixed Voices Open Category KIDLAT
(B2) BELL AWARDS • Grand Prix, Rogue One
• Finalist and only telco recognized • Gold Award, Rogue One, Film
14TH ANNUAL INTERNATIONAL at the Philippine Stock Exchange • Gold Award, Rogue One, Craft
BUSINESS AWARDS / STEVIE AWARDS (PSE) Bell Awards for excellence in (Direction)
• Gold Stevie, Globe 1st World Internet Corporate Governance • Gold Award, Rogue One, Craft (Editing)
PH, Communications or PR Campaign • Silver Award, Galapagos, Craft
of the Year - Issues Management BOOMERANG AWARDS, IMMAP (Direction)
• Silver Stevie, 7 Ways We Create • Advertiser of the Year • Silver Award, Galapagos, Craft (Editing)
Wonderful Experiences, Best Annual • Best of Show Award, Rogue One • Silver Award, Galapagos, Craft (Audio)
Report - Print • Effectiveness Award, Rogue One • Bronze Award, Galapagos, Craft (Film)
• Silver Stevie, Globe Telecom, Company • Gold Award, Rogue One, Tech and
of the Year - Telecommunications Telecommunications Campaign LEAGUE OF AMERICAN
• Bronze Stevie, Globe Transformation • Silver Award, Rogue One, Leisure, COMMUNICATIONS PROFESSIONALS
and Triumph under Ernest Wellness & Entertainment Campaign 2017 VISIONS AWARDS
Cu, Executive of the Year - • Silver Award, Rogue One, Digital Craft - • Ranked 44, Top 80 Reports in the Asia
Telecommunications Visual and Audio Excellence Pacific Region for 7 Ways We Create
• Bronze Stevie, Enterprise Innovation • Silver Award, Rogue One, Effectiveness Wonderful Experiences
Forum, Brand Experience of the Year - - Awareness • Gold Award Worldwide for Integrated
Business-to-Business • Bronze Award, Rogue One, Report for 7 Ways We Create
Effectiveness - Engagement Wonderful Experiences
35TH CONFERENCE OF THE ASEAN
FEDERATION OF ENGINEERING BRAND FILM FESTIVAL LINKEDIN
ORGANIZATIONS NEW YORK • Outstanding Talent Engagement
• ASEAN Engineering Award, Network in • Best Short Film, Rogue One: A Star
a Box Deployment Project Wars Story MEDIA SPECIALISTS ASSOCIATION OF
THE PHILIPPINES (MSAP)
2017 ARC AWARDS INTERNATIONAL CREST SUMMIT ICE AWARDS 2017
• Honors, 7 Ways We Create Wonderful • Best in Customer Impact • Bronze Award, Cyber Pinoy, Branded
Experiences, Specialized A.R. Content
Combined Annual and Sustainability FINANCE ASIA • Silver Award, Globe Future Makers,
Report Category • CEO of the Year, Ernest Cu Not-for-Profit

ASIA COMMUNICATIONS AWARDS FINANCE ASIA'S BEST MANAGED PANATA MARKETING EFFECTIVENESS
• CEO of the Year, Ernest Cu COMPANIES IN THE PHILIPPINES AWARDS
• 3rd Best Managed Company • Gold Award, The Mask Digital Video,
ASIA MONEY BEST MANAGED LARGE • 4th Best at CSR Advocacy Marketing, Single Medium -
CAP COMPANY PHILIPPINES • 3rd Best at IR Digital and Mobile
• Top Best Managed Large-Cap • 6th Most Committed to CG • Gold Award, The Mask Digital Video,
Company, Globe Telecom Brand, Single Medium - Digital and
FROST & SULLIVAN ASIA PACIFIC Mobile
ASIAN AD FEST ICT AWARD
• Silver Award, Rogue One, Internet Film • Fixed Broadband Service Provider of THE ASSET CORPORATE AWARDS
the Year • The Asset Platinum Award, Excellence
ASIA-PACIFIC EXCELLENCE AWARDS • Philippines Telecom Service Provider in Environmental, Social and Corporate
• Best Telecommunications Campaign, of the Year Governance
#1stWorldInternetPH • Philippines Mobile Service Provider of
the Year

12 2017 Globe Integrated Report

MEMBERSHIPS

American Chamber Philippine Association

of Commerce of of National Advertisers
the Philippines, Inc. (PANA)
(AmCham)
Philippine Business for
Asia-Pacific the Environment (PBE)
Telecommunity
Philippine Cable
Canadian Chamber Television Association
of Commerce of the (PCTA)
Philippines (CanCham)
Philippine Chamber of
Contact Center Commerce and Industry
Association of the (PCCI)
Philippines (CCAP)
Pollution Control
Corporate Network Association of the
for Disaster Response Philippines, Inc. (PCAPI)
(CNDR)
Philippine Chamber of
GSM Association (GSMA) Telecommunications
Operators (PCTO)
Healthcare Information
Management Philippine Disaster
Association of the Resilience Foundation
Philippines (HIMAP) (PDRF)

Infocomm Technology Philippine Retailers

Association of the Association
Philippines (ITAP)
Philippine Software
IT and Business Process Industry Association
Association Philippines (PSIA)
(IBPAP)
Semiconductor and
Makati Business Club Electronics Industries
(MBC) in the Philippines
Foundation, Inc. (SEIPI)
Internet and Mobile
Marketing Association of Supply Chain
the Philippines (IMMAP) Management
Association of the
International Philippines (SCMAP)
Telecommunication
Union (ITU) Telecommunications
and Broadcast Attorneys
National Disaster Risk of the Philippines, Inc.
Reduction Management (TELEBAP)
Council (NDRRMC)

EMPOWER THE DIGITAL FILIPINO 13

14 2017 Globe Integrated Report
CHAIRMAN'S
MESSAGE
Let me begin with an overview of the macroeconomic, regulatory, and corporate
developments that transpired in 2017 that provide context on the opportunities and
challenges we stand to face in the coming months.

PHILIPPINE ECONOMIC PERFORMANCE

In 2017, the Philippine economy grew 6.7% in GDP terms, slightly below the 6.9%
growth recorded in 2016 which was aided by election-related spending. The country’s
GDP growth was achieved despite lower private construction spending and a BPO
sector that is rebalancing its expansion plans. With the sixth consecutive year of
above-6% growth, the Philippines still ranked among the highest growing economies
in Asia. Domestic demand remained the key driver, lifted by household and
government spending. Overseas remittances reached a record US$28.1 Billion, 4.3%
higher year-on-year. Likewise, both exports and imports posted healthy increases.

EMPOWER THE DIGITAL FILIPINO 15

 FINANCIAL HIGHLIGHTS As an example, we have been pushing for CREATING SHAREHOLDER VALUE
greater collaboration between the public
Against this backdrop, Globe ended and private sector to enhance the last We remain steadfast in our commitment
2017 with a strong topline growth. mile connectivity of Filipino homes and to shareholders with this year's total
Consolidated service revenues reached businesses, particularly with the massive payout of ₱12.0 Billion in common
₱127.9 billion, 6% higher year on year. capital required to roll out and maintain share dividends, 3% higher than the
EBITDA totaled ₱53.3 billion, with a competitive network infrastructure. previous year. This represents about
EBITDA margin at 42%, higher than This will also help open up the industry 76% of 2016 core net income, and in
last year’s 41%. Net Income settled to new players who would have lesser line with our dividend policy of 75% to
at ₱15.1 billion, 5% lower from a year barriers to contend with. 90% of prior year’s core net income.
ago due to higher operating expenses This translates to a 5% dividend yield,
and depreciation charges as a result of We believe that one way to expand the even more competitive than the yields
increased investments in data network. telecommunications coverage in the of government securities and other
country is through the buildup of towers Philippine listed companies.
Data-related services were the key by several companies for the use of all
driver of performance, accounting for telcos, similar to a number of countries Beyond economic results, we view
54% of service revenues. With this in the world. Globe is spearheading this our business as a platform to alleviate
trend, we continue to expand our data initiative and is currently in discussion some of the gaps our society is facing
network nationwide to meet the growing with third parties for the creation of a and cast a positive and sustainable
customer preference for content-rich tower company that will lease towers impact. The United Nations Sustainable
offerings and multimedia applications. to both new and existing players. Development Goals (SDGs) has provided
We intend to deliver first world internet This will also help the government in us the needed structure in crafting and
connectivity to support our country’s ensuring a level playing field for industry implementing our own sustainability
digital aspirations and make the participants. framework.
Philippines at par with our ASEAN
neighbors. GIVING LIFE TO FIRST WORLD Let me highlight an example around one
INTERNET CONNECTIVITY of our adjacent businesses in financial
GLOBE SPEARHEADS technology. Mynt is ramping up its
IMPROVEMENTS IN Globe is on track to fulfilling its operations to contribute to financial
TELECOMMUNICATIONS SECTOR commitment to deploy LTE services inclusion in the country. With half of
nationwide by the end of 2018 using the our country’s adult population still
With the government’s call for a third 700 megahertz (MHz) and 2600 MHz unbanked, Mynt, now a joint venture
telco player, Globe continued its focus frequencies obtained from San Miguel with Ant Financial, leverages mobile
on improving the experience of its Corporation (SMC) telco asset sale. technology to provide payments and
growing number of customers. On This forms part of the overall capital lending solutions to the underserved.
several areas, the management team expenditure plan of US$850 million for
worked hard to deliver relevant changes the year, largely earmarked for data. By Another example is in recognition of
that bring positive impact to customers end-2017, Globe rolled out LTE in cities our responsibility to advocate the safe
— from after sales service, compelling and municipalities nationwide, equivalent and responsible use of the internet.
offers and affordable pricing to network to 67% coverage of its total serviceable We partnered with Facebook and the
capabilities, customer data security and areas.
protection. Furthermore, we continued
to support initiatives that will benefit
both the consumers and the industry,
including the entry of a third player.

16 2017 Globe Integrated Report

Department of Education (DepEd) On behalf of the other board members
to continue promoting responsible of Globe, I also take this opportunity
digital citizenship among teachers and to welcome Mr. Vic Noel who will take
students in public and private schools over from Mr. Manuel Pacis who is one
at the secondary level under our Digital of our independent directors on the
Thumbprint Program (DTP). The module board. I am confident that Mr. Noel’s
teaches online users to develop critical expertise and experience will contribute
thinking to discern credible from fake significantly to the governance and
information. The DTP has reached over management of our institution. I would
18,700 students with more than 1,800 also like to acknowledge the significant
facilitators empowered to teach the contributions of Mr. Pacis as a member
program of the board for the past seven years,
including seven years as Chairman of
ACKNOWLEDGMENT OF the Audit Committee, and as a member
INCOMING/OUTGOING BOARD of the Nomination Committee. I wish
MEMBER AND CLOSING REMARKS him continued success in his future
endeavors.
In closing, I thank our Board of Directors,
the management team, and employees
for their untiring commitment and
dedication in serving our customers.
Our board members remained Jaime Augusto Zobel de Ayala
engaged across a variety of governance Chairman
committees throughout the year and
our employee and executive teams work
tirelessly to improve our standards,
to innovate, and to enhance customer
experience. I also thank our business
partners for their support, our customers
for their loyal patronage, and our
fellow shareholders for their trust and
confidence for our ability to build and
create stakeholder value in the years
ahead.

EMPOWER THE DIGITAL FILIPINO 17

 A CONVERSATION WITH THE PRESIDENT AND CEO

SUSTAINING
THE CIRCLE OF
HAPPINESS
If Globe President and Chief Executive Officer Ernest Cu walks and talks like
a man in a hurry, it’s because he is. The company has undergone a mercurial
and massive transformation since he joined a decade ago from a challenger
brand to Globe being the largest mobile company in the country today. By
moving fast, caring like an owner, keeping things simple, putting customers
first, acting with integrity, and valuing its people, Globe secured its leadership
position in the mobile sector.

Its new mission is to create wonderful experiences for people to have choices,
overcome challenges, and discover new ways to enjoy life. This also means
the company is in perpetual motion of transformation. In this interview,
the President and CEO talks about how Globe fulfills the digital lifestyle of
Filipinos, and getting ahead of the digital curve.

Q: YOU JOINED GLOBE IN 2008 — THAT MUST HAVE BEEN A

DIFFICULT TIME FOR THE COMPANY. WHAT IS THE STATE OF GLOBE
NOW?

When I took over as president a decade ago, Globe accounted for only a third of
the mobile market. Now almost two-thirds of the Philippine population is our
customer base.

Connectivity is what matters most to Filipinos. Their insatiable thirst to consume

content has been growing exponentially, and this drives our growth. The key
strategy is always focusing on changing consumer demands. You cannot go
against what consumers want. You have to allow them to do what they want to
do, and find a place in the ecosystem where you can operate.

In 2017, our consolidated service revenues reached ₱127.9 billion, representing

a 6% jump from the previous year’s record. Our consolidated EBITDA grew to
₱53.3 billion in 2017, a year-on-year increase of 7%. Net income, however, slightly
declined by 5% to ₱15.1 billion as the increased investments in our data network
led to higher non-operating expenses and depreciation charges.

18 2017 Globe Integrated Report

EMPOWER THE DIGITAL FILIPINO 19
 With unrelenting demand for data Q: HOW ARE RECENT Then the next wave came. With mobile
services, total data-related revenues DISRUPTIONS IN TECHNOLOGY internet, people started to gain access
increased to ₱69.0 billion, a 16% SHAPING GLOBE? to massive amounts of information
increase from 2016, and continued to and wireless connectivity. Suddenly,
outstrip from traditional SMS and voice, In an increasingly digital world, telcos are everything is at their fingertips. So Globe
accounting for nearly 54% of our overall always under tremendous pressure to reinvented the retail experience. We set
service revenues in 2017. compete and stay relevant. Free service up physical stores where our customers
providers are disrupting our primary got to touch and feel the latest phones.
Being the No. 1 mobile company in the revenue streams, even as they flow We pioneered DIY (do-it-yourself)
country, we were able to sustain the through our network. There is always customizable plans and promos that
growth of our mobile revenues to ₱98.5 that danger of getting commoditized. empowered customers to choose and
billion, up by 7% from ₱92.3 billion a discover what they can do with their
year ago. However, our mobile subscriber Yet at Globe, the more we face disruptive phones.
base slightly slid by 3% to reach 60.7 technology, the more we get challenged
million as of end-December 2017 from and obsessed with our customers — Smartphone penetration in the country
62.8 million subscribers reported a year who they are, what they want, where is projected to grow to 70% in 2018
ago. The decline was due to the change they want to go, and what they want from 40% in 2015 (Source: Ericsson
in reporting the company’s prepaid to do. Now more than ever, Globe is Mobility Report). The next challenge was
subscribers beginning 2017. emerging as an extremely customer- getting people hooked on using their
centric company. This has allowed us to mobile phone. As we transformed our
Revenues from our home broadband and embrace disruptions, find our place in the physical stores to Gen 3 to showcase the
fixed line business have been steadily ecosystem, and seize opportunities from digital lifestyle, we entered into strategic
growing. In 2017, we generated ₱29.4 new revenue streams. partnerships with global digital content
billion, 4% higher than the previous year. providers, successfully driving internet
As early as 2010, we already saw the adoption and building people’s habits to
On the other hand, our total operating market shift towards smartphones use mobile data.
expenses and subsidy increased by 6% and data. So we suited up to ride the
to ₱74.6 billion from ₱70.6 billion in wave. Globe embarked on a massive Closely tracking consumer demands,
2016, mainly due to higher network- network transformation, changing all we want to empower our customers
related leases, maintenance, and our equipment to make the network with choices that will allow them to
services to support our aggressive data data ready. We built a formidable IT enjoy their lives. So we partnered with
network expansion and overall service system, consolidating our IT platforms the largest content companies, like
enhancements. to know and serve our customers better. Disney, Netflix, Cartoon Network, Sports
As we are a people-centered business, Illustrated, and recently, Fox Network.
Our non-operating charges slightly grew we made a deliberate decision to turn By doing these, we have successfully
by 2% year-on-year. We recorded a one- our organization into a highly engaged driven data services up. As of end-2017,
time gain in our retained equity interest workforce that nurtured an innovative our mobile data traffic grew 66%, to 600
after the investment of Ant Financial mindset, and this sets us apart from petabytes from 361 petabytes a year
Services Group and Ayala Corporation in competition. ago, and we expect the demand for the
Globe Fintech Innovations, Incorporated company’s data-driven product portfolio
(GFI/Mynt). However, this was not to continue.
enough to offset our share in equity
losses and spectrum amortization
related to the SMC telco asset acquisition
in 2016, higher interest expenses, and
depreciation charges booked during the
period.

20 2017 Globe Integrated Report

With greater connectivity, people started Q: HOW IS GLOBE PREPARING With GCash, Filipinos will now have
shifting their habits. From standard FOR THE NEXT BIG WAVE THAT the ability to pay with their e-wallets
messaging, they are now spending more LIES AHEAD? through their mobile phones. The digital
time on their devices connecting through footprints from their telco usage and
social media, downloading mobile apps, We see ourselves as the current data social media profile will create a credit
playing video games, viewing more network of choice, the brand for smartphone score that will enable them to get a loan
content, among other things. users, and the brand for millennials. and start a business. We see this as the
We have a reach of 63.4 million customers. third wave of transformation — financial
In 2017, we saw the shift on how people We continue to explore digital products services seamlessly integrated in the
consumed videos. People wanted video that can be pushed through this distribution increasingly digitalized lives of Filipinos.
on demand, streaming or downloading channel. As we continue to enhance our
videos whenever convenient. Much content portfolio, partnering with the Not only are we creating wonderful
as they want to access the videos on best as well as creating our own through experiences through connectivity, content,
mobile, they also wanted them at home. Globe Studios, we see people gravitating and service, but creating opportunities
So we shifted a large part of our capital towards streaming content on their for majority of Filipinos to overcome
spend towards enhancing broadband mobile devices to enjoy world-class and great challenges, and be part of the digital
connectivity in the home. With more affordable entertainment. We want to get economy.
access to videos, Filipinos’ appetite for more Filipino content on streaming sites
content further grew. and we will make it happen in 2018. Q: WHAT ARE THE BIGGEST
CHALLENGES TO FULFILLING THE
The megatrend now simply points to We will also accelerate our efforts VISION OF GLOBE?
increasing data traffic. Lifestyles are towards nation-building starting with
getting more digital each day — many financial inclusion, using technology to We want to live out our purpose of
Filipinos actively use mobile data to book financially empower more Filipinos. Globe is treating people right to do a Globe of
TNVs, navigate the roads, shop online leveraging on its brand and infrastructure Good. Our vision is to make families’
— anytime and anywhere, they use their to deliver financial services through dreams come true, businesses flourish
mobile devices. We can expect much innovative fintech solutions e.g., mobile and the nation admired. By being an
higher growth in the coming years, as the money, credit scoring, online lending. enabler of meaningful changes in the
Internet of Things (IoTs) and AI become The strategic partnership of Globe lives of Filipinos, we can fulfill our vision
more pervasive. Fintech Innovations, Inc. (Mynt) with with sustainable and superior service.
Ant Financial Services Group, one of the
So how has disruptive technology world’s leading digital financial services
changed Globe? From a telco, we are providers, will enable us to reach the
now a digital enabler — the purveyor of unbanked and underbanked, which
the Filipino digital lifestyle. comprise almost 80% of the country’s
population.

EMPOWER THE DIGITAL FILIPINO 21

 Over the last two years, we have To address in part the strong demand, We also launched our #makeITsafePH
invested close to US$800 million in we started to adopt new technologies campaign to promote public vigilance
expanding our network so we can that use wired and wireless solutions against online hacking, identity theft
connect more customers. Globe has to bring data to our customers. One and other cybercrimes. Together with
reached a point where it plows back 33% of these is the Multiple Input, Multiple Singtel and Optus, we launched the
of its revenue to capital expenditure, Output (MIMO) technology that allows Digital Thumbprint Program (DTP),
which is one of the highest compared the transfer of more data and at the which aims to improve critical thinking
to telcos across the world. To sustain same time accommodate more users. and discernment skills of the youth in
this level of spending, we have to be This is proving to be very useful in high the internet age, especially at a time of
extremely profitable as an enterprise, density areas. Since we rolled it out, prevalent misinformation.
as well as continuously increase our Globe is able to multiply the capacity of
network capacity and upgrade to newer a wireless connection without requiring As we continue to enhance our content
technologies that keep changing every more antennas. portfolio — partnering with the best
two years or so. However, money is just global and local brands and creating
one side of the equation. On the consumer side, the affordability our own local content — we also need
of phones remains a challenge. To to safeguard the value of content and
Demand is outstripping supply on a reach more Filipinos especially the combat piracy. Unfortunately, Filipino
regular basis, given the fact that we unbanked, we need more people to consumers are still largely unaware of
generate nearly twice the data traffic use smartphones. Unfortunately, the the impact of piracy and prefers free
than the competing network. There Philippines is one of the countries in over paid but legal content. Through
is obviously strong latent demand for the world that still continues to use our #PlayItRight program, we hope to
data in new areas where we put up 2G and 3G technology. Our economic bring the message home that Filipinos
cell sites. And then we have customers development must be more inclusive can easily access legal content without
who continue to be data hungry. We’re to increase the purchasing power of having to put themselves at risk.
still hopeful that the government majority of the population so they can
will support the industry by enabling partake of the benefits of the digital Q: BEYOND BUSINESS, HOW DO
the players build infrastructure and economy. YOU SEE THE FUTURE OF GLOBE?
additional capacity faster. Today, it takes
an average of 25 permits and 8 months The advent of data has also made data Given our market share today, we have
to build a site in the Philippines — from protection and privacy a necessity. Over greater responsibility to our customers
deciding to build on an area, searching the last three years, Globe invested in and other stakeholders to ensure that
for a viable lessor, then securing for excess of US$25 million to build up its our organization is able to sustain its
permits from the local government data security operations. We partnered operations into the future. Globe has
unit down to the barangay level. We with the best companies in the world been contributing to nine out of the 17
have been delivering more capacity in to create what’s probably one of the Sustainable Development Goals (SDGs)
line with the government’s ICT Plan. most advanced data security operation relevant to our business. An example
Unfortunately, there has been little centers in the country. This allows us to is our Global Filipino Schools program
improvement in the speed of processing identify and block data security threats (GFS) to promote quality education in
over the past years. and deal with them very efficiently. the Philippines in support of SDGs 4

22 2017 Globe Integrated Report

and 17. GFS is now present in 142 public Being always-on, we contribute to We know that our talents in the company
high schools in 15 regions nationwide. disaster management whenever make the difference in everything
Given its reach, GFS opened up strategic technology, connectivity, and volunteers we do. That’s why we keep a working
opportunities for our business groups to are badly needed. In 2017, we assisted 11 environment that fosters collaboration,
engage in nation building by providing communities by providing relief goods innovation and engagement. We are
public schools with internet connectivity, and services such as Libreng Tawag proud to have a winning and highly
ICT equipment, and teacher training. and Libreng Charging stations. At the engaged workforce beating industry
These partnerships also helped us height of the Marawi siege in southern norms here and abroad.
expand our network coverage by Mindanao, Globe showed its support by
building cell sites within school vicinities. opening its network to all Marawi-based As we work towards reaching our
residents, as well as providing relief business goals, we provide our people
Having this sense of commitment aid for displaced residents in nearby with greater opportunities to help in the
and responsibility pushes each and evacuation centers. communities and marginalized sector
every individual in Globe to strive for of our country through various means.
excellence and commit to our purpose to We also recognize the environmental In 2017, our employee volunteerism
help build our nation. This commitment impact of our operations, given our reached an all-time high of 3,803 unique
is strengthened further by the recent wide customer base and cell sites. employee volunteers, comprising 52.8%
appointment of our chairman, Jaime In support of SDG 15, we lessen our of the entire Globe workforce. Globe
Augusto Zobel de Ayala, as a United carbon emissions by using fuel cells in also participated in the Singtel Overseas
Nations Sustainability Champion. our network. We also encourage our Volunteering Program in Thailand and
customers to shift to paperless billing to India where some of our employees went
We also believe that supporting local reduce paper consumption. At least 3.3 overseas to volunteer as English and
social innovators and startups can million of our subscribers have opted to Math coaches to children of various ages.
contribute to positive social impact. In go paperless in 2017. We donated ₱10
its first year, our Globe Future Makers million to Hineleban Foundation, our To serve our customers better, we are
program received 135 applications partner for restoring rainforests in the doing engagement programs for our 1.1
and nominations, with initiatives country in order to offset the carbon million retailers, distributors, suppliers
ranging from providing employment footprint of the remaining subscribers and business partners nationwide,
opportunities for persons with who continue with paper billing. We also and our talent universe of over 30,000
disabilities, to using technology to expanded our e-waste program, Project employees, including regular and
promote volunteerism in the Philippines. 1 Phone, to include corporate partners. managed services. If we win the hearts
The winning programs received In 2017, we partnered with 22 large of people, stir their passion to run the
connectivity and funding support from corporates and increased the hauled business, this in turn keeps our Circle
Globe and its affiliates, Singtel and e-waste to 224,290.69 kilograms. of Happiness spinning. It will make our
Optus. The two local social innovators, customers and shareholders happy.
Virtualahan and iVolunteer Philippines, Making our business sustainable, Our job is to see to it that this circle
were the country’s representatives to the however, would not have been possible perpetually spins to sustain a wonderful
Singtel Group Regional Future Makers without a dynamic workforce. As a future for Globe.
2017 in Sydney, Australia, and received people-centered organization, we strive
grants totalling S$50,000. to be the best company to work for.

Ernest Cu
President and CEO

EMPOWER THE DIGITAL FILIPINO 23

24 2017 Globe Integrated Report
 BUILDING THE
NETWORK OF CHOICE
To be an admired nation by providing mobile services to about
95% of cities and municipalities in the Philippines by end of 2018

EMPOWER THE DIGITAL FILIPINO 25

 BUILDING THE NETWORK
OF CHOICE
“The Philippines is ready to enter the digital world if there’s no real issue about having a pervasive
mobile network. However, for this to happen, the needed telecom infrastructure must be in place
to enable a pervasive internet network and our biggest challenge right now is putting the physical
infrastructure. We’re more than willing to provide the needed capital, but we need to overcome
challenges such as securing permits to build new cell sites.”
— Gil B. Genio, Chief Technology and Information Officer / Chief Strategy Officer

In the rush to build the information And Globe is riding the wave. In 2017, For the past five years, Globe has been
superhighway, the Philippines has the company saw mobile data traffic ramping up its capital spend, averaging
begun making great strides. rising 66% as smartphone penetration 31% annually in CAPEX to total
reached 70%. The significant increase in revenues as more Filipinos access the
In 2017, the country snatched the mobile data traffic validates the position internet through their mobile devices
global lead in terms of time spent on of Globe as the country’s top mobile and use the Globe network (Source:
social media. Filipinos spent an average company and the network of choice by 1Q 2018 Morgan Stanley Report). For
of 9 hours on the internet and 4 hours smartphone users. 2016 and 2017, Globe mobile data
and 17 minutes on social media every network carried over 2.4x the traffic
day, the most in the world. (Source: OTHER SIDE OF THE COIN of competition. In 2018, the company
Digital in 2017 Global Overview from We plans to spend ₱43.5 billion from ₱42.5
Are Social and Hootsuite) Feeding Filipinos’ growing appetite for billion in 2017.
data, however, comes at a steep price.
The Philippines had a social media FAST-TRACKING
penetration of 58%, higher than the Philippine telcos spent capital INFRASTRUCTURE BUILD
average of 47% in Southeast Asia. expenditures higher than most ASEAN
Mobile was also a fast-growing platform countries and way above the global To meet the demand, Globe deployed
accounting for 38% of all web traffic in average of 16% (Source: Philippine close to 3,000 4G LTE sites nationwide,
the country, up by almost a third over Daily Inquirer). Investments have been using the 700 MHz, 1800 MHz and 2600
2016. significant as video-on-demand and MHz frequencies for wider coverage and
the increased adoption of smartphones increased capacities. Majority of its LTE
These trends point to rising data traffic generate more data burn. sites were deployed in Metro Manila
in the Philippines, with no signs of and highly populated areas, where
slowing down, as the population gets Globe has been significantly increasing customers using LTE-based handsets
increasingly connected, share images its capital expenditures (CAPEX) to are located.
and video, stream music, play games, improve its network.
and so on.

TELECOM CAPEX TO REVENUE RATIO (%) 2015

COUNTRY COMPARISON 2016
GLOBE CAPEX TO REVENUE RATIO
2012 - 2017
33
PhP Mn %
29 140 45
27 26 120 40
26
24 24 100 35
23
80 30
20 60 25
17 17 17 20
40
14 14 14 20 15
13 13 13 13
12 12 0
11
9 2012 2013 2014 2015 2016 2017
8
CAPEX REVENUE %
Source: Philippine Stock Exchange and
Philippines US China Japan Korea Hong Kong Malaysia Taiwan India Thailand Indonesia Singapore Securities and Exchange Commission
Source: Ovum 2016 Report Disclosures

26 2017 Globe Integrated Report

 Globe holds the SEA-US cable
system ceremonial launch in
Davao City led by
President and CEO Ernest
Cu (3rd from left) and
In 2017, Globe internet at home Presidential Communication
customers grew to 1.3 million, a 15% Operations Office Secretary
growth against last year. This was Martin Andanar (2nd from
a result of its aggressive push for left).
affordable home broadband plans, with
majority of customers subscribing to
Globe At Home Plan 1299 at 10 Mbps.

To enhance customer experience at

2017 SPEEDTEST BY OOKLA
home, the company rolled out 400,000
leading-edge network technology in
2017 after deploying over 260,000
home broadband lines in 2016.
Progressive rollouts will be undertaken
within the next 3 years until 2020,
on track with its target to connect at
least 2 million homes nationwide with
broadband speed of at least 10 Mbps.

All these are in addition to putting up

over 10,000 access points for free public
WiFi services in major malls, coffee
chains, convenience stores, transport
hubs, schools, hospitals, and many other
locations across the country including
the 24-kilometer stretch of EDSA.

In August 2017, Globe also launched

a US$250-million Southeast Asia-
United States (SEA-US) submarine
cable system that bypasses the Taiwan
earthquake zone. The 14,500-kilometer
undersea cable system, which connects
the Globe cable landing station in to the government under the National Globe has more than 16 Terabytes per
Barangay Talomo, Davao City, is the first Broadband Plan, the blueprint in second (Tbps) of international data
direct connection of Globe to the US via building infostructures for a digital capacity — enough to address the
Guam, Hawaii, and California. It takes nation. country’s demand for faster internet.
advantage of the latest 100 Gigabits per However, its “lit-up” or used capacity
second (Gbps) transmission technology According to the National is less than 3 Tbps. Cumbersome
to deliver an additional 20 terabits per Telecommunications Commission’s right-of-way and permitting issues
second capacity, which will cater to benchmarking report in 2017, Globe have hindered building the last mile
the exponential growth of bandwidth mobile download throughput was at 9.3 connectivity. Other concerns are the
between the two continents. Mbps as of the first quarter compared non-standardized tower fees across
with 1.65 Mbps in the first quarter of local government units (LGUs) and real
THE DENSITY CHALLENGE 2016, with web page browsing success property tax issues.
rate at 98.5%. The report reflects the
The company’s continuous network company’s sustained efforts to improve
expansion and investments has internet connectivity in the country as
led to substantial improvements it moves to further enhance customer
in the internet experience of its experience with the aggressive
customers, fulfilling its commitment deployment of more LTE sites.

EMPOWER THE DIGITAL FILIPINO 27

 It thus comes as no surprise that Through its Globe Business and
the Philippines only has 21,000 cell MyBusiness programs, the company WHY IT TAKES
sites compared with its neighbors encourages corporates and small and 8 MONTHS
e.g. Vietnam has 70,000 cell sites. In medium enterprises to capitalize on BEFORE ONE
terms of cell site per user density, the digital technologies such as cloud CELL SITE CAN BE
Philippines has the highest in Asia, with computing for revenue opportunities. CONSTRUCTED
one cell site being shared by 2,244
users. In comparison, a country like RIDING THE DIGITAL WAVE
Vietnam has a cell site density ratio of 1 RIGHT OF WAY
860 or even less in most countries. Pervasive wireless networks allow people Negotations and Documentation
of prospective cell site location
to reap the benefits of the Internet
As Filipinos’ appetite for data becomes of Things (IoT), where technologies 8 Permits | 1-2 Months
more insatiable, it pushes up demand run on high bandwidth — from sensor
for greater bandwidth and more cell platforms, video surveillance and 2 SOCIAL ACCEPTABILITY
sites need to be deployed. meteorological stations, monitoring Barangay Resolution,
flows from traffic to sewerage, to Home owners’ Association
To help meet the challenge of cell site driverless cars and homeland security- consent, and residents confirmity
density, Globe invested in deployment type applications. 5 Permits | 1-2 Months
of massive MIMO technology that could
expand and enhance its LTE network. Before Filipinos can get on the digital 3 VARIOUS LGU’S PERMITS
MIMO enables a mobile network to bandwagon, however, the country must Zoning, clearance from HLURB,
multiply the capacity of a wireless first address the density challenge. city or municipal resolution,
connection without requiring more occupancy permit, mayor’s permit
antennas. It also increases wireless With the advent of the 5G (fifth- 5 Permits | 2 Months
throughput, accommodating more generation wireless systems), the
users at higher data rates with better next big exciting boost for the mobile 4 NATIONAL PERMITS
reliability while consuming less power. world, the pressure for telcos to put up DENR, LLDA, CAB, DOH, PCSD,
In the case of home broadband, MIMO more cell sites mounts. 5G is expected BFAR, NCIP
allows customers to have reliable to vastly improve high-speed data 8 Permits | 1- 2 Months
data connection especially for video connections with ultra-low latency.
streaming. However, 5G will largely operate on 5 STRUCTURAL PERMITS
high-frequency wavelengths, to deliver Zoning permits, location clearance,
Another initiative to speed up the large amounts of data. While the highest building permit inclusive of
development of internet infrastructure wavelength for 4G is at 5.7 GHz, 5G electrical permit, sanitaion and
in the country is to seek the cooperation requires wavelengths around the 28 GHz, mechanical permit, occupancy
of LGUs to hasten the granting of 37 GHz, and 39 GHz bands. This big jump permit
permits and right of way. Through its in frequency will require new antenna 3 Permits | 3-5 Months
#1stWorldInternetPH campaign, the technology and beamforming.
public are encouraged to bring their
concerns of internet service to their In order to deliver a better customer 6 CONSTRUCTION STARTS
mayor or provincial governor. This experience using 5G, telcos will have
dialogue with the LGUs help speed up to put up more cell towers, antennas,
roll out and deployment of cell sites and base stations across the nation, The company sees growing convergence
in these areas. The interactive and especially in cities where line-of-sight of network and ICT, with more
participatory aspect of the campaign transmissions are made more difficult. consumers using the mobile network for
empowered the general public to raise This means further significant costs to calls and more ICT apps running on the
the issue directly to their LGUs. the networks. network.Network function virtualization
and software-defined network will
Globe has also been educating In addition to understanding the become a norm. Increasingly, there will
customers on the benefits of shifting to deployment of 5G, Globe is also be more users of data as non-users start
newer technologies such as LTE to make introducing elements to support IoT shifting to data use, existing data users
the network more efficient and deliver applications in the future, which it will find more and more uses for it, and
better customer experience. expects to have a significant impact in content or publication owners will give
the Philippines. their customers a richer experience.

28 2017 Globe Integrated Report

ENVIRONMENTAL Some of the sites are also certified with the DENR and pays fees required for
SUSTAINABILITY various management system standards. the submission of applications for
It fully complies with these certifications: Environmental Compliance Certificates
With a footprint that covers two-thirds (ECC) or Certificates of Non-Coverage
of the country’s population as customers • Regulatory Requirements (CNC) for all cell sites and other facilities.
and thousands of cell sites nationwide, ··
Department of Environment
Globe recognizes that it can best serve and Natural Resources (DENR), HEALTH AND SAFETY
the Filipino nation by ensuring that Department of Labor and
it operates responsibly and creates Employment (DOLE), and To assure the public that radio frequency
positive environmental impact even Department of Health (DOH) (RF) signals coming from its cell
as it continues to transform the lives Administrative Orders sites do not pose any adverse health
of people with technology and mobile ·· Republic Act 8749, the Philippine impact, Globe conducted RF Radiation
solutions. Clean Air Act Measurement tests in eight randomly
·· Republic Act 9136, Electric Power chosen cell sites in 2017. Globe strictly
Its employees (Ka-Globe), along with Industry Reform Act of 2001 adheres to the guidelines of the Bureau
its business partners, also embrace ·· Republic Act 9003, the Ecological of Health Devices & Technology under
this mission outlined in the company’s Solid Waste Management Act the Department of Health (DOH), which
Environmental Sustainability Policy. ·· Republic Act 6969, Hazardous were based on the guidelines issues by
Ka-Globe multiplies and magnifies Waste Management Act the International Commission on Non-
environmental efforts — such as • Certifications Ionizing Radiation Protection (ICNIRP)
patronizing carpooling programs to ·· Quality Management Systems (ISO regarding the health and enironmental
reduce their own carbon footprint. 9001:2015) for Globe Data Centers effects of Non-Ionizing Radiation (NIR)
·· Environmental Management to protect people from detrimental NIR
ENVIRONMENTAL COMPLIANCE System (ISO 14001:2015) for MK2, exposure. The company secures permits
Valero Telepark, GTIT Plaza and from DOH each time it puts up a cell site.
In line with its environmental and Data Center in Cavite The company has 10 DOH-Certified RF
sustainability program, Globe complies Radiation Safety Officer (RFRSO) that
with applicable environmental Globe also complies with the ensures facilities adhere to global health
regulations where it operates. Environmental Impact Assesment of standards.

ENVIRONMENTAL SUSTAINABILITY POLICY

Globe sees a wonderful Philippines by reducing our impact to the environment and supporting a low carbon future to address
climate change. While we operate in the Philippines, our employees, customers, vendor partners and other stakeholders
have a presence worldwide. We have the responsibility to demonstrate high standards of environmental management and
stewardship in order to reduce our impact and that of our stakeholders.

We commit to:
• Integrate climate change measures into our strategies and planning, set targets and report environmental impacts to our
stakeholders;
• Comply to all local environmental laws, relevant standards and practices to our business. Where possible, we move
beyond regular compliance and apply best practices and global voluntary standards on environmental and social
responsibility;
• Consciously improve on resource consumption efficiency and minimize waste generation through prevention, reduction,
recycling and reuse within our operation and through the life cycle of products;
• Manage our activities to minimize pollution and impacts on air, water, land, flora, fauna and cultural and heritage values;
• Encourage and train our employees and business partners to help reduce environmental impact through mutual
understanding of this policy and implementation standards among our value chain;
• Influence stakeholders to move towards a more sustainable consumption and production;
• Support partners which share the same environmental values to ensure the conservation and restoration of vital
ecosystems;
• Review and improve on environmental management system to ensure that the commitments of this policy is delivered;
• Collaborate with government, businesses, international institutions, special interest groups, portfolio companies and
other organizations to innovate products that will address climate change.

EMPOWER THE DIGITAL FILIPINO 29

 Studies conducted by the World Health Another is the Lithium Ion Battery fuel cell solutions. Globe site operators
Organization, an authority on health (LiFePO4) which has no lead (Pb) and also underwent training with Serenergy
issues, indicate there is no convincing acid content, and does not require to properly operate fuel cell systems as
scientific evidence that the weak radio cooling. The Free Cooling System is part of its integrated network.
frequency signals from cell sites or proven to reduce energy consumption,
base stations and wireless networks and is the best match solution with DC WASTE REDUCTION AND
cause adverse health effects. (Source: back-up power solutions such as Fuel MANAGEMENT
World Health Organization (WHO) on Cells and DC Gen sets. Lastly, the DC
The International Agency for Research Generator is a hybrid solution consisting To help address UN SDG 12 on the
on Cancer (IARC) Monographs on the of DC generator sets and deep cycle promotion of sustainable consumption
Evaluation of Carcinogenic Risks to batteries (DCB) used for off-grid sites, and production, Globe has enjoined
Humans, May 2011) lowering the use of diesel fuel, further its millions of postpaid customers
reducing is operation by as much as 60%. to help save thousands of trees and
ENERGY EFFICIENCY reduce greenhouse gas emissions by
In 2017, Globe initiated the DC generator, enrolling their fixed broadband and
Energy management and the constant which consumes less fuel than an mobile accounts in the paperless billing
pursuit of energy efficiency are also equivalent AC genset due to its load- program. In 2017, a total of 3.3 million
a vital part of the environmental following ability. As a DC generator has subscribers have switched to paperless
policy of Globe to contribute to the a longer service interval of 500 hours, it billing, equivalent to saving 58 tons of
UN Sustainable Development Goal of makes for a more cost-efficient solution paper.
affordable and clean energy for all. compared to fuel cell for open field sites.
The quiet-type DC genset provides low To reduce the carbon footprint from its
With the beginning of deployment noise of 48 A-weighted decibels (dBa), remaining printed billing statements,
in 2014, Globe now has 3,017 green allowing its use even in residential areas Globe donated ₱10 million to Hineleban
solutions to provide back-up power to during power loss. Foundation in 2017 using part of
cell sites. One green solution is the fuel the fees paid by customers who are
cell, which requires lower maintenance The company entered into a partnership still using paper billing. Hineleban
cost as it offers simpler fuel refilling. with Serenergy, which supplies methanol Foundation is a non-profit, non-

HEALTH AND SAFETY POLICY

Globe Telecom cares for people, not only for our employees but also the communities surrounding our operations, as they
are critical to the success of our business. We protect their rights and promote safe and secure working environments for
all workers. It is the management’s primary objective, the employees’ individual and collective responsibility, including our
business partners to meet this commitment.

We commit to:
• Continuously assess all ill health and safety hazards of our business operations and provide programs and process
improvements toward prevention and elimination of occupational injury, accidents, and illnesses in the workplace and the
communities where we operate;
• Ensure that occupational health and safety is a core consideration of planning, delivery, monitoring and review processes
at a strategic and operational level;
• Monitor the non-ionizing radiation exposures of our sites and ensure that these are below the limits recommended in
national and international guidelines;
• Train and equip our employees with necessary skills and information to work in a safe and environmentally responsible
manner and mandate our business partners to adopt these principles to ensure communities’ health and safety;
• Conduct a regular review of our partners’ management system to ensure that the commitments of this policy are being
delivered, and that we strive for continuous improvement;
• Comply to all occupational safety and health laws applicable to our telecommunication business and adopt international
best practices;
• Report our safety, health, and environmental performance to our stakeholders.

As part of our operations, Safety Officers are in place to ensure this Policy is implemented and readily give advice where
necessary.

30 2017 Globe Integrated Report

 ENERGY 2016
2017
government organization engaged in
Fuel Consumption from generators (in liters)
Scope / Boundaries: Corporate offices, Data Centers, Cell
the preservation and restoration of
sites
the mountain rainforests and critical
watersheds in Mindanao. The company’s Diesel 8,379,433.57 8,579,858.93
ongoing five-year partnership with
Gasoline 12,149.26 58,971.73
Hineleban Foundation on reforestation,
food security, and sustainable livelihood Fuel Consumption from fleet (in liters)
development benefited the indigenous Scope / Boundaries: Corporate offices, Stores, Cell sites
people in Bukidnon and Lanao del Sur.
In 2017, a total of 120,091 seedlings Diesel 1,806,318.21 1,342,346.70
planted on 120 hectares of land were Gasoline 3,604,151.76 3,597,998.87
donated to Hineleban. Globe also had
other reforestation efforts in 2017 that Electricity Consumption (in kwh)
resulted in 7,135 seedlings planted. Scope / Boundaries: Corporate offices, Data Centers,
Cell sites, Stores, Warehouse, and Parking
In addition to engaging its customers
and minimize its environmental impact, Operations 446,318,966.10 482,360,321
Globe also enjoins businesses to do their (owned and leased facilities)
share by reducing electronic waste and Emission Factor Reference: Department of Energy

countering its harmful effects on health.

Since 2014, Globe has been running the
EMISSIONS
Project 1 Phone (P1P) mobile recycling
campaign in partnership with Total GHG emissions (in tonnes CO2e)
Environment Solutions Asset Material
Management (TES-AMM) through its SCOPE 1
local arm TES-AMM Philippines. It has From total fuel consumed
(transport and gensets) 39,081.15 38,531.75**
been closely collaborating with private
Scope / Boundaries: Corporate offices,
corporations to encourage donations Data Centers, Cell sites, Stores
of individual and company e-waste
SCOPE 2
such as non-working or damaged
From purchased electricity
phones and tablets, mobile phone Scope / Boundaries: Corporate offices, 251,047.80 271,458.81***
batteries, and even personal computers. Data Centers, Cell sites, Stores, Warehouse,
and Parking
By installing recycling bins at Globe
Stores nationwide, including the offices SCOPE 3
of its various corporate and private From business travel via air 1,893.67 1,610.4
Scope / Boundaries: Corporate offices,
partners such as Unionbank and Huawei Data Centers, Cell sites
Technologies Philippines, Globe was
Total 292,022.62 311,600.96
able to haul 224,290.69 kgs of e-waste
**2017 GHG Emissions Breakdown for Scope 1
in 2017.
Carbon Dioxide (CO2) 38,045.31

Through constant collaboration with Methane (CH2) 128.62

various stakeholders, Globe is able to Nitrous Oxide 357.82

fulfill its mission to create a Globe of Global Warning Potential (GWP): CH4 = 21, N20 = 310
Reference: World Resources Institute
Good and make the world safe and green
***Emission factor reference: National Grid Emission Factor,
for this generation of Filipinos and the Department of Energy
next.
Green Solutions
Green Solutions 750 1,135
Reduced GHG Emission 319 482
from DC-HPU (in tonnes)*
*Recalculation was done using a different method and
thereby reinstating 2016 disclosure from 673.94 tonnes CO2
to 319 tonnes CO2 and 2017 disclosure from 1,694.44 tonnes
CO2 to 482 tonnes CO2.

EMPOWER THE DIGITAL FILIPINO 31

 Moreover, Globe also participated in the
EFFLUENTS AND WASTES 2016 2017 Metro Manila Shake Drill led by the
2017 Metro Manila Development Authority
Solid Waste disposed and weight by type (in tonnes) (MMDA), providing various connectivity
Scope / Boundaries: The Globe Tower, GT Plaza, Valero, GTIT Plaza Cebu, TGT Cebu
tools to assist in implementing the drill.
Recyclables 24.35 15.80 Such connectivity tools included prepaid
SIMs, prepaid credits, mobile cell sites,
Residuals 178.90 155.50 and internet connectivity in each of
Total 203.25 171.30 MMDA’s quadrants and in the agency’s
emergency operations center.
Hazardous Wastes disposed and weight by type (in kg)
Scope / Boundaries: Corporate offices, Data Centers, Cell sites
The company invested in fully
Used lead acid battery 167,359.99 116,298.00 automating the Technical Outage
Grease waste 5,115.00 12,263.00 Reporting system which is designed
to facilitate the collation of data and
Electronic Waste* 22,812.89 224,290.69
generation of report required by NTC
*These include internally hauled office e-wastes and during disasters. This system enabled the
collected externally from business partners and customers.
company to quickly send out emergency
Used oil disposed (in liters) advisories via SMS to customers located
in the affected area, in compliance with
Used oil disposed and treated 3,994.00 9,660.00 Republic Act No. 10121 or the Philippine
Disaster Reduction and Management
Hazardous Waste disposed (in pieces) Act, and Republic Act 10639 or the Free
Busted fluorescent lamps 2,822.00 1,926.00 Mobile Disaster Alerts Act.

BUSINESS CONTINUITY as well as Libreng Tawag and charging

EMERGENCY MESSAGES SENT
stations, in areas affected by typhoons
IN COORDINATION WITH
After becoming the first telecommunications and other types of disasters.
NDRRMC
company in the country to be certified
in Business Continuity Management This was the case in 2017 when an Type of Message SMS Count
System (ISO 22301) on an enterprise- earthquake hit Kananga, Leyte and
Informational
wide scale in 2014, Globe stepped up Ormoc City, where Globe provided 11,313,369
Advisories
its implementation of best practices on assistance through relief goods and
business resiliency to assure customers Libreng Tawag and Charging stations
Earthquake 70,592,924
and stakeholders that it is equipped to to affected residents. Moreover, Globe
handle business disruptions in the event opened its network and provided the
Heavy
of a major incident or disaster. same relief assistance to residents of 129,867,956
Rainfall
Marawi City in southern Mindanao at the
Business continuity protocols include height of the terrorist siege.
Thunderstorm 16,612,630
activating network contingencies
that reduce the impact of service In addition, steps are taken to ensure
disruptions to customers. For example, network readiness during earthquakes. Tsunami 1,550,501
generator sets are used for cell site These include enhancing network
towers to allow customers to use basic capacity in core links that connect Metro
Typhoon 87,318,901
telecommunications services such as Manila, Northern and Southern Luzon to
calls and text messaging even during minimize service disruption and setting
TOTAL 317,256,281
calamities and disasters. Globe also up high-capacity microwave links in one
deploys technical teams to restore of the low-risk areas. These contingencies
network services as soon as weather will not only ease congestion, but also
permits. It coordinates with on-ground restore Globe call and text services,
sales teams, local government units, and and enable government emergency
various government agencies related responders to conduct rescue operations.
to the deployment of relief operations,

32 2017 Globe Integrated Report

In 2017, Globe sent its customers over
317 million text messages on early
warning advisories on disturbances
such as earthquake, heavy rainfall,
thunderstorm, tsunami, and typhoon.

Globe is investing in meeting the

challenges of the future to remain the
network of choice for all. Globe invested in 4 Mobile Command Centers
in 2017 with 2 centers allocated for Luzon, 1
Number of Network center for Visayas, and 1 center for Mindanao.
Outages in 2017
Mean Time
No. of
Type to Restore
Incidents
(MTTR)
Catastrophic 3 1.83 hrs
Major 402 3.41 hrs One of our cell site on wheels (COW) deployed
Minor 9,376 12.88 hrs during drills, emergencies, and disasters.

BUSINESS CONTINUITY MANAGEMENT POLICY

Globe values people and puts customers first in everything we do. We build sustainable, resilient and reliable infrastructures
and operating systems that will ensure continuity of our services before, during and after any disaster. At the core of our
BCM is a robust enterprise architecture that will protect the integrity of customer data and transactions at all times.

Our network infrastructure is designed to ensure service disruptions are at a minimum or at best none, with strategic
redundancies embedded within our architecture. We have standby resources - physical, financial and manpower
augmentation through our network of vendor partners and shareholder community to overcome large-scale business
disruptions and disastrous events so that our customers will continually be served with mobile, data and other
telecommunications services. It is management’s primary objective, including our critical business partners to meet this
commitment.

We commit to:
• Prioritize the safety and well-being of all Globe employees and their families;
• Ensure the continuity of key products and services and keep customer service impacts to a minimum;
• Conduct a regular review of our and our partner’s management system to ensure that the commitment of this policy
are being delivered and continuously improve on business continuity capacity in accordance with local and international
standards and best practices;
• Comply to all laws and regulatory obligations applicable to our telecommunication business;
• Establish critical public and private partnerships which creates value for our stakeholders and provide meaningful
humanitarian assistance to affected areas.

EMPOWER THE DIGITAL FILIPINO 33

 4 WAYS TO BE THE
NETWORK OF CHOICE
1 3.5M registered free trial Auto users, December 2017. The company expanded
MAKING THE INTERNET MORE 400k top-up transactions, and gross the size of the cyber security team,
ACCESSIBLE FOR ALL revenue of ₱10 million. adopted world-class technologies and
standards, and worked with the best
GoWiFi, the Globe premium public WiFi 2 global partners in the space. Globe is
service, has expanded to 1,000 more now at the forefront of cybersecurity
new locations and 10,000 access points
PROVIDING A SECURE DIGITAL in the country, as the frequency and
covering all major mall chains (Ayala,
ENVIRONMENT FOR sophistication of cyber-attacks and
SM, Robinsons, Megaworld, Gaisano),
CONSUMERS AND ENTERPRISES breaches are on the rise across all
airports, government institutions, Globe committed to comply with the industries. These measures will ensure
schools and hospitals in the Philippines Data Privacy Act of 2017, putting in that customers are protected against
to give more customers access to fast place various measures such as the cybersecurity threats, Globe launched
and reliable hotspots in high-traffic formal assignment of a Chief Information the Advanced Security Operations
locations. Security Officer as Data Protection Center (ASOC) to deliver services
Officer, running in-depth Privacy Impact such as customer service platform
Globe launched the new and improved Assessments especially with partners, management, threat detection, threat
Free GoWiFi WiFi service and the new and completing various programs and hunting, and incident response for both
paid GoWiFi product – GoWiFi Auto, an projects to make sure it is able to defend the Globe network and the network of its
affordable paid service for customers customers' right to privacy. customers. This is linked to Trustwave’s
to continue browsing once their daily global network of nine federated ASOCs
allowance of free WiFi minutes have Globe embarked on a Cybersecurity and is supported by a worldwide team
been fully consumed. There were 120 Transformation journey back in 2014 and of security-minded professionals. Globe
million free GoWiFi sessions for the year, completed the three-year program in Business also partnered with Singtel to

GoWifi powers Bulacan State University.

(L-R) Executive Vice President for Channel
Management Bernie Llamzon; Bulacan State
University President Dr. Cecilia Bascon; Chief
Commercial Officer Albert de Larrazabal; Globe
myBusiness Head Derrick Heng; and WiFi
Business Group Director Adrian Te.

34 2017 Globe Integrated Report

deliver a comprehensive and best-of- divisions, college and university student blocked 400 million spam SMS. With
breed suite of cybersecurity solutions. leaders, empowering them to educate the same solution, it disconnected 5,206
their respective communities to become Globe numbers, and blocked 8,807
As a purveyor of digital lifestyle, Globe responsible internet users. numbers from other networks. The
ensures that netizens are safe from effectiveness of the solution continues to
numerous threats on the internet—from 3 protect Globe and TM subscribers.
viruses such as Trojan and Ransomware
that put businesses at risk, hacking
MAKING THE NETWORK With the tool in place, customer
attempts for illicit purposes, and cyber
SPAM-FREE complaints on spam messages dropped
bullying, to name a few. Improved mobile penetration and by 65% on top of a 97% decrease on
market appetite for mobile advertising spam SMS received by customers. The
These concerns gave impetus to the have led to unlimited SMS offers. initiative earned Globe the “Best in
#makeITsafePH campaign under the This, and the absence of a national Customer Impact” award at the CREST
cyber wellness program of Globe. The registration for prepaid SIM cards, have Summit in Sydney, Australia in August
campaign covers all stakeholders such opened the floodgates to illegal activities 2017.
as big corporations, small and medium- and abuses in SMS services.
scale enterprises, government agencies, SECURE NETWORK IN 2017
colleges and universities, and the general From 2013 to 2016, Globe received
public. reports of 2,600 incidents of fraud,
• 2,188 Unique cyber attack
incidents blocked
particularly those with intent to swindle
Globe also sees the need to advocate for innocent customers by sending prepaid • 400 M Blocked spam SMS
cyber wellness and judicious use of the load or money to other accounts. To since 2016
internet among individuals. It thus joined combat this, Globe developed a robust • 5,206 Blocked Globe
forces with Facebook to promote digital anti-spam solution that actively filters numbers
literacy and online responsibility among out unwanted messages, preventing • 8,807 Blocked numbers from
students, teachers, and the general these from being sent to customers. The other networks
public through the Digital Thumbprint tool also included messages sent via
• 65% Reduction on spam
Program (DTP). other networks.
complaints

The pool of DTP Ambassadors expanded Since the solution was adopted in • 97% Reduction on received
to include teachers from Global Filipino February 2016, Globe was able to filter spam messages
Schools, ICT coordinators from the up to one billion SMS on a daily basis.
Department of Education school By December 2017, it has successfully

(L-R) Senior Advisor Mike Frausing, Chief

Information Security Officer Anton Bonifacio,
Chief Technology and Information Officer Gil
Genio, President and CEO Ernest Cu, Singtel
Director of Channel Sales and Development
John Lee, NCS Vice President for Global
Business Mathia Nappalan, Trustwave Senior
Vice President for Sales in Asia Pacific and
Japan Robert Pizzari, FireEye Country
Manager Tom Acero, and Arbor Networks
Principal Security Technologist CF Chui lead
the opening of Globe Telecom’s Advanced
Security Operations Center.

EMPOWER THE DIGITAL FILIPINO 35

 4
PARTNERING WITH THE PUBLIC
SECTOR TO ENHANCE DELIVERY
OF PUBLIC SERVICES

Financial inclusion enables people to

become more financially empowered,
and this could be achieved through
successful public-private partnerships. In
collaboration with the City Government
of Makati and iBayad Online Ventures
Inc., Globe and GXI launched the
Makatizen Card now available to Makati
City residents and employees.

The Makatizen Card allows the city’s

500,000 residents to transact with and
avail of services by the City government.
Residents can receive cash allowances, Makati City Mayor Abigail Binay (2nd from left), with President and CEO
stipends, and other cash benefits using Ernest Cu and GXI President Abet Tinio, holds up the Makatizen Card
their Makatizen Card. They can also use next to a sample of iBayad’s mPOS terminal with GCash to serve as the
their cards to pay fees and taxes, as well financial service provider during the card’s launch at the Makati City Hall
as make personal remittances and other on May 30, 2017.
financial transactions. City Government
employees can also use their Makatizen
Card to receive salaries and allowances
as it functions as an ATM card and a valid
government ID.

One of the capabilities derived from

an improved mobile and broadband
infrastructure is the creation of a
city-wide cashless ecosystem in which
e-payment methods such as e-money
and debit or credit cards are utilized
instead of physical cash. This will benefit,
not only the residents, but also the
schools, hospitals, government offices,
transportation facilities, and other micro,
small, and medium-size enterprises.

36 2017 Globe Integrated Report

 BUILDING THE NETWORK OF CHOICE

TRENDS / OPPORTUNITIES RISKS / CHALLENGES GLOBE INITIATIVES

Increasing mobile data traffic due to Increasing network congestion –– Ramping up capital spend
growing smartphone penetration and higher capital expenditures to –– Accelerating deployment of LTE sites
improve the network –– Launching a US$250-million Southeast
Asia-United States (SEA-US) submarine cable
system
–– Educating customers to shift to higher mobile
technology (LTE)
Growing demand for wider internet Hastening the process of securing –– Putting up free public WiFi sites
access and better connectivity permits, resolving cumbersome right- –– Seeking the cooperation of LGUs to hasten
of-way issues, and other factors that the granting of permits and right of way
hinder building more cell sites through the #1stWorldInternetPH campaign
designed to engage the public to raise
connectivity concerns to their LGUs
–– Adhering to a Business Continuity Policy to
prevent customer service disruptions
Introduce 5G network and enable Growing pressure for telcos to put up –– Deploying MIMO technology to expand and
Filipinos to reap the benefits of more infrastructure and specturm enhance its LTE network
modern technologies such as IoT availability –– Network-readiness to deploy IoT and 5G
testing
Emerging green solutions to Expanding environmental impact –– Launching several environmental initiatives
network providers with growing network to promote a low carbon future (such as
environmental compliance and certifications),
energy efficiency, public health and safety,
waste reduction and management
Growing market competition Increasing need for customer –– Developing a robust anti-spam solution to
protection from fraud and cyber block spam messages and numbers
threats
Unlocking opportunities for financial Readiness to collaborate among –– Creating a city-wide cashless ecosystem
inclusion public and private sectors through the Makatizen Card that allows
residents to transact with and avail of services
by the City Government
–– Aggressive push for fintech deployment
among key shareholders

EMPOWER THE DIGITAL FILIPINO 37

38 2017 Globe Integrated Report
 EMPOWERING
CONSUMERS
To be the purveyor of the digital lifestyle by providing
affordable world-class entertainment available to all

EMPOWER THE DIGITAL FILIPINO 39

 EMPOWERING
CONSUMERS
“The telco industry as we know it is dead. Calling, SMS, long distance, and all that is going away
in favor of the digital lifestyle of Filipinos.”
— Ernest Cu, President and CEO at the DigiCon 2017

In today’s highly connected world, to redefine its business, strengthen its All these efforts are geared towards
digitalization is profoundly changing position, create new business models, creating a world of empowered
every fabric of society and business and innovate for its customers. customers with more connected lives,
— from social interactions through an abundance of choice, the ability to
devices, the mobilization of money, Its shift from being a telco player to a make more informed decisions and get
to the creation and consumption of superior enabler of the Filipino digital what they want, when and where they
entertainment and the establishment of consumer is a deliberate and highly want it.
new digital-native businesses. focused strategy to create wonderful
experiences for its customers.
Those able to spot these trends and STRENGTHENING IT SYSTEMS TO
brave enough to ride on the digital To become a truly successful and SERVE CUSTOMERS BETTER
wave could emerge as winners; the rest sustainable enterprise, however, Globe
face an uncertain fate. This is why the recognizes that it must be able to With access to massive amounts of
global telco industry is under threat. harness digital technology to transform data, Globe invested in making its IT
Digitalization is blurring competitive lives. resources more robust, leveraging best-
boundaries as core voice and messaging in-class information technology, and
businesses shrink, and data continues to The company ensures that every impassioning and empowering its people
open up new communications channels. customer relationship goes beyond to fully understand customer behavior
transactions, but also leads to rewarding and build real business value.
Instead of a threat, however, Globe sees experiences, and creates positive impact.
digitalization as a great opportunity

Ernest Cu shares Globe Telecom's

digital transformation experience at
the Digicon 2017.

40 2017 Globe Integrated Report

In 2017, Globe focused on building bring new customers to the cloud, as well Globe also continue to explore
intelligent and optimized infrastructure, as realize cost savings for its operations. technologies that will enable
investing in cost-effective corporate better customer experience, such
network modernization projects, Since it partnered with cloud solution as successfully setting up and
and cloud initiatives geared towards providers such as VMware, Red Hat, implementing a toll-free hotline in Hong
supporting enterprise strategies. and Amazon Web Services (AWS), Kong in collaboration with Amazon to be
Globe is able to offer seamless customer accessible to a wider customer base.
Leveraging on the latest ICT innovations experience through its web portal,
and capabilities, Globe was able to prepaid top-up, promo registration All these IT transformation initiatives
increase business revenues by scaling platforms, online store, and self-service benefited the company in terms of
existing product offerings and creating apps. This shift allowed customers to the emergence of new digital business
new ones at a faster turnaround time. enjoy faster GServices application speed models, platform rationalization,
The company has also built and by more than five times. optimization of outsourcing and cloud,
promoted more than 300 private and improved IT procurement process
and public application programming Globe employees also benefit by using and vendor management. As a result,
interfaces (APIs) to reduce time to cloud computing services to improve Globe was able to generate savings of
market and allow easier onboarding their daily workloads and processes. more than US$17 million in 2017.
of digital partners, thus opening new Internally, Globe championed Agile
growth opportunities. transformation, which allowed the The development of a working prototype
company to deliver greater value of Globe for an intelligent home and
As one of the first companies in the through frequent product releases. In parking use earned the company the
Philippines to adopt a “cloud-first 2017, there was an increase in adoption Outstanding Catalyst Innovation award
strategy,” Globe engages key partners to rate and expected to accelerate in 2018. at the 2017 TM Forum Live Asia.

Chief Technology & Information

Officer Gil Genio (extreme
right) and Chief Information
Officer Pebbles Sy-Manalang
(bottom row, center) pose
with representatives of key IT
providers at the recent 2nd
ISG Movers Award ceremonies
recently held at The Globe Tower
in Bonifacio Global City.​

EMPOWER THE DIGITAL FILIPINO 41

 3 WAYS TO EMPOWER
CONSUMERS
1 Side Story, and the West End production This developed as Globe announced
GIVING THE POWER OF CHOICE of The Sound of Music at The Theater at the partnership with leading content
Solaire. and consumer company in Southeast
Asia, Astro Malaysia Holdings Berhad
CHOOSE THE ENTERTAINMENT Globe LIVE was the first local company (Astro) and its regional over-the-top
YOU WANT. To address rising customer to be given the rights to locally produce (OTT) streaming service Tribe for the
demand for data, Globe introduced Disney’s Newsies, in partnership with second straight year. The tie-up will allow
GoWATCH which allots a separate data 9Works Theatrical. Giving in to public talented Filipino kids to get a chance to
allocation exclusively for videos and clamor for the musical, Globe LIVE undergo the Astro Kem Bola Advanced
can be used for popular and legitimate established the Training Ground, a series Training Program in Kuala Lumpur,
streaming platforms. These streaming of sessions where the chosen Newsies Malaysia, and potentially, the Overseas
platforms include various content actors took voice, dance, and acting Training Camp in Barcelona, Spain by
partners: YouTube, Netflix, HOOQ, Tribe, lessons. coaches from FC Barcelona Football
NBA, Cartoon Network, and Disney. Academy (FCB Escola).
GoWATCH can be used in conjunction In partnership with The Walt Disney
with GoSURF, the surfing promo of Company Southeast Asia, Globe In 2017, a total of 133 sports
Globe. launched Disney Princess: I Dare To communities are under the program
Dream, a first-of-its-kind digital reality from all over the Philippines. For football,
CREATE ORIGINAL CONTENT AND series produced by Globe Studios in there are 49 communities from Manila,
SUPPORT LOCAL TALENTS. Globe collaboration with Disney and Maker Cavite, Laguna, Batangas, Rizal, Quezon,
is changing the landscape of Philippine Studios. Tacloban, Negros, Zamboanga and
entertainment through its production Sulu. Meanwhile, the total number of
arm, Globe LIVE. In 2017, Globe LIVE BUILD COMMUNITIES WITH TM basketball communities reached
mounted four musical productions: a CONTENT PARTNERS. TM Sports 84, coming from Tondo, Mandaluyong,
local adaptation of Disney’s Newsies, Para sa Bayan is a program specifically Pampanga, Nueva Ecija, Tuguegarao, and
Menken & Ahren’s “A Christmas Carol” designed to give underprivileged youth Dumaguete.
at the Globe ICONIC Store, its co- a chance to improve their lives and
production of the award-winning West reach their dreams through sports.

Our content partners, led by our CEO,

Ernest Cu, at the 2017 Content Summit
held in Boracay, Philippines.

42 2017 Globe Integrated Report

UNLOCK OPPORTUNITIES FOR Customers pay the exact amount, MYNT AND FUSE
THE UNBANKED. To redefine the removing the need for coins or change.
country’s financial landscape amid This solution is expected to boost Highlights 2015 2016 2017
a robust consumer market and an retail trade at all levels and include all
increasingly digital environment, Globe, customers into e-payment. Total Number ₱2.32 ₱3.31 ₱5.1
through Globe Fintech Innovations, of Subscribers million million million
Inc. (Mynt), and Ayala Corporation Through Fuse Lending, Globe was able
partnered with Ant Financial Services to disburse 66,000 loans amounting Monthly ₱3.65 ₱4.62 ₱6.00
Group, one of the world’s leading digital to ₱332 million to unbanked Filipinos. Transactions billion billion billion
financial services providers, to accelerate The wholly owned subsidiary of Globe
financial inclusion and upgrade payment Fintech Innovations, Inc. caters to the Total Number
services in the Philippines. Its vision is underserved and unbanked population of Loans - 4,000 66,000
to help more Filipinos — especially the in the Philippines. Disbursed
unbanked, which comprise over 80% of
the population (Source: Bangko Sentral MORE ACCESS TO HEALTH
ng Pilipinas, Consumer Finance Survey) SERVICES. Through KonsultaMD, a KONSULTAMD
— gain access to safer, more convenient, 24/7 health hotline service of Global
and extensive payment and lending Telehealth, Inc. (GTI), the company is Calls by Age, Gender, Region
platforms. able to provide customers easy access
to licensed and professional doctors. In
GCash also launched Scan to Pay, a new
payment option that allowed customers
to pay for goods and services using their
2017, KonsultaMD partnered with home
care app AIDE to bring the benefits of
health care at the fingertips of more
60 % 33 %
Age: 18-40 Age: 41-60
smartphones to scan QR codes displayed Filipinos. AIDE is the first home care
by merchants and establishments. Retail booking app in the Philippines where
business owners also benefit by not users can choose the best available

7
having to install expensive machines as health care professional based on their
they are provided with a QR code sticker needs with just a simple tap of a button on MALE

43
%
which buyers can scan to pay. their smartphone or any portable device.
Age: 61-up %

FEMALE

57 % REGION

LUZON: 79% VISAYAS: 11% MINDANAO: 10%

SOCIAL IMPACT
THROUGH THE YEARS
2015 2016 2017

Total
successful
Alibaba Founder and Executive Chairman Jack Ma (center, left) graces 951 5,809 8,170
health-related
the partnership announcement with Mynt, setting the new landscape of consultations
financial inclusion in the Philippines. Together with him are (L-R): Mynt
President and CEO Anthony Thomas, President and CEO Ernest Cu, Ant Subscribers
17,050 79,249 230,089
Financial Services Group CEO Eric Jing, Ayala Corporation President and acquired
COO Fernando Zobel de Ayala, Ayala Land President and CEO Bobby Dy,
and Ant Financial SVP and Head of International Operations Douglas
Feagin and GCat, the Gcash mascot.

EMPOWER THE DIGITAL FILIPINO 43

 KonsultaMD has also partnered with Alongside using Globe Rewards points, Globe myBusiness enables Filipino
healthcare providers such as MedGrocer, other customers who renewed their businesses through these customized
FamilyDOC, and Lifeline. postpaid or Platinum plans were also services:
given the opportunity to donate.
In 2017, KonsultaMD received 8,170 Business Management System (ERP)
consultations, bringing the total to over 2 • Cloud POS (Store Hub, imonggo)
15,000 consultations since launching in • Cloud Solutions (Amazon Web
2015.
ENABLING THE GROWTH OF Services)
MICRO, SMALL AND MEDIUM • Digital Payments (GCash)
ENTERPRISES
ENABLE CUSTOMERS TO DO A • Website Development and
GLOBE OF GOOD. In line with the Globe myBusiness maximizes the Management (ropo)
launch of its Star Wars campaign “Create. potential of micro, small and medium • Video conferencing
The Hero Within,” Globe has given enterprises (MSMEs) so they can turn • Telco-Powered Solutions (API)
its customers different opportunities their passion into a business success. • Bulk SMS Blaster (AMBER)
to support HERO Foundation, a non- Offering customizable solutions designed • Appointment System (SARA)
stock, non-profit organization that has to fit their needs, Globe myBusiness • Queuing Solution (QUEEN)
been providing educational stipends empowers Filipino MSMEs to embrace the • Sales Force Automation (SquadZip)
to military orphans. Globe Rewards digital shift, giving them the competitive • Security and Asset Tracking (RFID
provided an opportunity for customers advantage to improve efficiency and and NFC)
to donate their rewards points through productivity, reduce cost, and further grow • Restaurant Analytics (Resto Graph)
the Globe Rewards app - which their business. Among industry clients • School Management Systems
generated a total of ₱543,147 donations. are in the tourism, retail, manufacturing, • Loyalty Platform (RUSH)
financial, and education sectors.

KonsultaMD and AIDE teams do an “all hands

in” pose to signify cooperation and support
led by Maridol Ylanan (3rd from left), CEO
of Global Telehealth, Inc., which operates
KonsultaMD; and Paolo Bugayong, co-founder
and managing director of AIDE (3rd from right).
Together with them are (from L-R): Vinchi
Sy-Quia, GTI Business Development Head; Dra.
Gia Sison, GTI Chief Medical Officer; and AIDE
co-founders and managing directors Pamela
Bugayong, and Dr. Patrick Bugayong.

Globe myBusiness teams up with “My Puhunan”

host Karen Davila (right most) to discuss business
tips for entrepreneurs with (L-R) Globe myBusiness
Head of Managed Service, Grace Anduiza; DTI
Assistant Regional Director Teresita De Lima; Ricca
Del Rosario of Half the Price; Globe myBusiness
Ambassador and owner of Mercato Centrale
RJ Ledesma; and Blade Auto Center President
Robertson Sy-Tan.

44 2017 Globe Integrated Report

INVEST IN STARTUPS AND the Globe Telecom Future Makers In 2017, Globe Digital Ventures acquired
INNOVATORS. Through Kickstart Program (GFM) where 135 startups and the movie schedule and ticketing
Ventures, the wholly-owned corporate individuals from various parts of the website, SureSeats.com, from Ayala’s
venture capital firm of Globe, 35 digital country showcased their unique and Sureseats. This allows patrons to
tech firms in the Philippines, Indonesia, innovative business initiatives. experience a faster and hassle-free
United States, Canada, and Israel have process of purchasing movie tickets for
had a better shot at success. At least 17% Out of the five startups who won Ayala Malls Cinemas with technology
of Kickstart Venture's deployed funds the GFM competition, Globe chose that also powers GMovies.
have been invested in impact startups iVolunteer and Virtualahan as Philippine
in the areas of education technology, representatives to the “Singtel Group Globe is also empowering more off-
health technology, and financial Regional Future Makers 2017” in grid communities around the country
technology. This initiative has spawned a Australia. through an innovative, low-cost
dynamic community of more than 4,000 technology called Network in a Box
young innovators, investors, mentors, Another emerging business is AdSpark, (NIB). The project aims to bridge the
corporate advocates, and policymakers a mobile-first and innovative data- digital divide in isolated communities
who now comprise Slingshot Philippines. driven digital marketing solutions by working closely with the community
To forge more collaborations, a National firm wholly owned by Globe. AdSpark partners of Globe such as the Gawad
Summit on Startups and Innovation was entered into strategic partnerships with Kalinga Community Development
organized by the Department of Trade globally renowned digital companies Foundation, Inc. for its “Barangay
and Industry (DTI) and supported by to help change the landscape of digital Walang Iwanan” campaign, and micro
Globe Business. advertising in the Philippines. Through cooperatives for the University of the
a partnership with Wootag and Tracx, Philippines-Village Base Tower Station
To address poverty-related issues in the AdSpark will offer the Philippine (UP-VBTS) project.
country through the use of technology, advertising market a more immersive
Globe, together with Kickstart Ventures experience and highly intensive digital
and Ashoka Philippines, launched analytics.

Kickstart Ventures
President Minette
Navarrete at Arangkada
Philippines Forum 2017.

Six of the most promising social impact

start-ups across Singapore, Australia and the
Philippines emerged as the winners of social
innovation programme, Singtel Group Asia
Pacific Future Makers 2017. (3rd from right,
R-L) Together with Yoly Crisanto, Senior Vice
President for Corporate Communications /
Chief Sustainability Officer are Helen Maisano,
Optus Director for Community Group and
Sustainability, and Andrew Buay, Singtel Vice
President for Sustainability.

EMPOWER THE DIGITAL FILIPINO 45

 PREPARE FUTURE GENERATIONS 3 RESHAPE BUSINESS PROCESSES
BY POWERING SCHOOLS. FAST-TRACKING DIGITALIZATION THROUGH DIGITAL SOLUTIONS.
Globe is committed to bridge the gap FOR PHILIPPINE ENTERPRISES As the trusted business partner of
in the country’s education system Philippine enterprises, Globe Business
by providing digital solutions such To meet the growing needs of the redefines how businesses work. It helps
as Alternative Learning Systems and country’s top 5,000 companies, Globe turn businesses’ passion and purpose
teacher training. It engaged more Business provides end-to-end mobile into reality through the right technology,
than 600 teachers and 300 school and fixed line solutions, as well as infrastructure, and know-how to
administrators nationwide through technical and customer support, to serve transform people’s lives.
PRISM, a three-week digital literacy the requirements of large enterprises.
program that includes a two-day The group provides the right solutions In 2017, Jollibee Foods Corporation
immersive boot camp, blended project- customized to the needs of businesses (JFC), the largest fast food chain in the
based learning, and personalized from a diverse range of industries. Philippines, signed up with Globe to
coaching. centralize its express delivery service to
Business Solutions: one convenient number #87000. The
In 2017, Globe expanded its Global • Mobility Solutions partnership benefits Globe customers
Filipino Schools program (GFS), • Business Voice Solutions who are now able to call the delivery
which has a presence in 142 schools • Connectivity Solutions hotline number for free with the use of
in 15 out of 17 regions nationwide. • Broadband their mobile device. This also ensures
Schools under the program receive • Business Applications Services easier access and greater reach for areas
free internet connectivity, ICT tools • Cloud Solutions that have a growing demand for delivery
as tablets, virtual reality goggles, LCD • Data Center services.
projectors, and teacher training on • Cyber Security Solutions
project-based learning and innovative
teaching methods. Globe hopes to bring
the program to all 17 regions in the
Philippines by 2018.

Students of Liburon National High School in

Carcar, Cebu incorporate technology in their
school assignments. Students use internet
connectivity and tablets given to the school to
enhance their learning experiences.

(L-R) Jollibee Foods Corporation Business

Channels Director Mario Malalis,
Jollibee Foods Corporation Vice
President for National Business Channels
Manjie Yap, Globe Business Senior Vice
President Peter Maquera,
and Globe Business Cluster Sales Head
Robie Reyes display the ‘Hashtag’ hand
sign for the #8-7000 Jollibee express
delivery partnership.

46 2017 Globe Integrated Report

On top of the partnership with Jollibee, Philippine conglomerates in the retail Globe Business also forged a strategic
Globe Business also partnered with industry learn how to future-proof their partnership with Singtel, not only to
the country’s top fast food chains that businesses through ICT. Globe also further build its expertise, but also
belong to the JFC group of companies participated in Puregold Price Club’s strengthen its ability to be at the
such as Burger King, Greenwich, Mang 12th Tindahan ni Aling Puring Sari- forefront of delivering a comprehensive
Inasal, and Chowking. Sari Store Convention to showcase its and best-of-breed suite of cybersecurity
latest products and offers for Filipino solutions. Through this ecosystem
HELP INDUSTRIES SUSTAIN THEIR entrepreneurs and sari-sari store owners of cybersecurity partners, Globe
FUTURE WITH ICT. To help the in the country. strengthens the services and solutions
country’s medium and large enterprises that help keep customers secure
gear up for the digital transformation PROVIDE A SECURE DIGITAL from ever-evolving threats. It also
of businesses, Globe Business mounted ENVIRONMENT FOR CONSUMERS allowed Globe Business to provide a
more industry-specific forums in AND ENTERPRISES. With a growing comprehensive suite of cybersecurity
2017. These activities help empower customer base and rapid digitalization, services such as Vulnerability
companies through industry insights the volume of data that Globe is able Assessment, Network Security,
on digital marketing and Big Data, as to collect also increases. Intensifying Application Security and Content
well as speed up their adoption of data- focus on digital transformation in both Security, Anti-DDoS, Endpoint Security
driven solutions. Globe Business was the private and public sectors has also and Access Control, and Security
also able to offer business advisory on fuelled an upswing in cybersecurity Management, to name a few.
how enterprises can drive competitive threats in the world taking data security
advantage through digital solutions. and privacy seriously, Globe Business
protects customers by growing its
Held in 2017 were the Logistics Cyber Security Solutions portfolio and
Industry Roadshow, which gathered improving its expertise and ability to
marketing professionals from various deliver these solutions.
logistics organizations; and the Globe
Enterprise Retail Forum, where top

EMPOWERING CONSUMERS

TRENDS / OPPORTUNITIES RISKS / CHALLENGES GLOBE INITIATIVES

Increasing digitalization in society and Scaling product offerings and –– Building more than 300 APIs to reduce
business creating new ones at a faster time to market and allow easier
turnaround time onboarding of digital partners
–– Adopting a “cloud-first strategy” and
engaging key partners to bring new
customers and other stakeholders to the
cloud
–– Championing agile transformation that
enables frequent product releases
–– Exploring new technologies that will
enable better customer experience

EMPOWER THE DIGITAL FILIPINO 47

48 2017 Globe Integrated Report
OBSESS ABOUT THE
CUSTOMER
To create the best experiences for every digital Filipino
through a technology-driven and customer-centric approach
on customer service, education, engagement, and rewards

EMPOWER THE DIGITAL FILIPINO 49

 OBSESS ABOUT THE
CUSTOMER
“We are evolving into a channel rather than just a telco. The telco assets are an enabling
infrastructure. The fact that we understand our customers better, provide them with best-in-
class products and services, offer them "tingi" (sachet) service, enable them to pay with their
mobile phone, and have the whole infrastructure built around this, that’s hard. Where the
innovation comes is in understanding customer insights. And that’s what sets Globe apart.”
– Alberto M. de Larrazabal, Chief Commercial Officer

With millions of customers Globe uses started to use smartphones, high-speed histories, consumption levels, user
Big Data to know its customers deeper internet, and social media — allowing patterns, customer experiences and
and understand real-life trends. Still, Globe to see opportunities when it more.
generating enormous amounts of data comes to data use. Increasingly, the
each year is one thing; knowing how to market is being dictated by individual Customizability thus became an
harness the power of Big Data is another. choices and veering away from mass important theme to drive growth at
consumption. For instance, people no Globe, whether in prepaid or postpaid
Data analytics brings an entirely new longer want to follow a TV programming businesses. The company started to
level of insight into customer behavior schedule and want to have a choice integrate the concept of “market of one”
and consumer habits. With deeper on what they want to watch, when to — achieving a level of customization
understanding comes vast opportunities watch it, and what device to watch it on. and exclusivity that makes customers
to improve customer experiences By using this information, the company experience a new brand of service at
and keep customers happy. As Globe was able to customize its products Globe.
understands its customers better, and services according to customer
the company is able to provide more needs, behaviors, preferences, payment BEING CUSTOMER-CENTRIC
meaningful offers to its customers.
To sustain the growth of Globe, however,
Data-driven companies have a 50% requires more than data science. It
chance of generating higher sales than also takes a village. Many companies
customer analytics laggards, and high- fall prey into thinking that crunching
margin telecommunication companies an abundance of data and putting the
tend to outperform their peers when right technology are enough to win
it comes to data mining and gaining customers. At the end of the day, telco is
insights from collected customer still a people-centered business.
information (Source: “Why Customer
Analytics Matter”, April 2016, McKinsey & Globe knows this fully well. To
Company). improve customer satisfaction, various
touchpoints were developed and used
EVOLUTION TO DATA to engage customers at any time of
REVOLUTION the day. It combined less-structured
data generated from multiple digital
The road to gaining market share by channels, such as email, chat, and social
offering the right product at the right media, with more traditional data related
price point and at the right time was not to sales or customer profiles. This gave
paved overnight at Globe. Through data Globe enormous opportunity to enrich
analytics, Globe is able to gain deeper the customer experience.
customer insights as Filipino consumers

50 2017 Globe Integrated Report

 GLOBE MULTIPLE TOUCHPOINTS

GLOBE MULTIPLE TOUCHPOINTS 8,529,105

Foot Traffic in 240 Globe Stores
Even as it offers multiple channels, Globe
continues to explore ways to improve
customer interactions with the company
23,707,062
including artificial intelligence.
Page Views H TLINE
The company also knows that engaging Total Calls Received: 22,227,118
today’s digital customer demands a 265,740 Calls Answered: 19,731,598
transformation, not just at the front- Globe Total Number Calls Answered within 20s: 14,082,525
end but throughout the organization. Community of Members
This meant tearing down silos by
different departments and nurturing a
highly collaborative workforce. Guided Responded within 1hr
by the principles of design thinking,
different business groups now involve FACEBOOK EMAIL
the Customer Experience Office in the (Globe Telecom): (Concerns redirected from social
process of product design. This way, Chats Received: 7,398,843 network sites):
data gathered from multiple channels Chats Answered: 3,773,450 POSTPAID
of interaction and services offered to Response Rate: 60.82% Received: 2,037
customers are shared and used for
Handled: 2,037
innovative experimentation to make TWITTER Response Rate: 90.82%
customer experience more seamless. (@talk2globe):
Chats Received: 1,135,437 PREPAID
Globe also embarked on building a Chats Answered: 615,857 Received: 915
service-oriented culture through UP! Response Rate: 60.60% Handled: 914
Your Service training. From improving Response Rate: 89%
usability of backend systems to uplifting
the frontliners, the company streamlined
internal processes as part of the Responded within 4hrs
transformation. PREPAID
EMAIL
(Concerns coming from Consumer Received: 222,860
Accounts): Handled: 222,843
Response Rate: 81.24%
POSTPAID:
Received: 265,209
Handled: 265,204
WIRELINE
Response Rate: 89.43% Received: 193,917
Handled: 193,914
Response Rate: 89.61%

Resolved within 24hrs

EMAIL
(Concerns coming from Business
Accounts):

EG: SG - CARE
Received: 1,152,573 Received: 59,476
Handled: 1,148,676 Handled: 59,476
Resolution Rate: 93.18% Resolution Rate: 97.51%

EMPOWER THE DIGITAL FILIPINO 51

 Along with a more customer-centric OBSESSED WITH OUTCOMES Globe is also one of the best performing
sales force, Globe invested in the latest companies among prepaid, postpaid, and
IT solutions to become faster, nimbler This holistic approach to customer broadband suppliers (Source: Annual
and more intelligent. These enabled the centricity enabled Globe to become the NPS Study of Singtel 2017).
company to seize market opportunities preferred brand for smartphone users,
with tactical campaigns, monitor their and the brand for millennials. As data traffic continues to grow, the
effectiveness, and immediately fine-tune pressure is on to keep customers happy
them. Proof of customer satisfaction is the high with their digital experience. Not only is
Net Promoter Score (NPS) that Globe Globe feeding their consumer appetite
One such IT solution is the FICO® continues to enjoy. The NPS is derived constantly with content and getting
Customer Communication Services by asking customers service-related them hooked into data consumption, but
(CCS) that uses a multi-channel questions immediately (within 48 hours) also safeguarding the data they share —
customer engagement system for of their transaction in various channels: from personal information, health and
collections. Since the deployment of the hotline, physical stores, self-service tools financial information, to trade secrets,
system in 2016, Globe has significantly (USSD, app, web), and field technicians and intellectual property.
reduced the account delinquencies by (for Globe Broadband installations and
40%. It also raised collection efforts repair). NPS across these channels are Globe thus embarked on a number of
by 15% and shortened the time to aggregated for the whole year. initiatives and advocacy campaigns to
collect by three days. The use of the protect consumers from growing cyber
CCS solution has shown that most In 2017, Globe received 2.4 million threats such as data breaches, phishing,
customers at early-stage collections feedback from customers after their and online scams. This forms part of the
prefer communication via SMS instead of transactions, with an average of 200,000 company’s commitment to enable the
talking to an actual agent. feedback per month. The company shift to a digital nation and empower
maintained a high NPS of 27% — an Filipinos around the world to fully
improvement from year-ago’s 22%. embrace their digital lifestyle.

52 2017 Globe Integrated Report

 OBSESS ABOUT THE CUSTOMER

TRENDS / OPPORTUNITIES RISKS / CHALLENGES GLOBE INITIATIVES

Increasing data traffic Ability to monetize Big Data –– Using data analytics to mine deeper customer
insights
–– Launching campaigns to educate and engage
customers and the general public on issues
related to data protection, cyber security, online
pornography, and responsible use of the internet

Growing preference for customized Creating 1-1 marketing at scale –– Using robust IT backbone and product
products and services development protocols to integrate the concept
of “market of one” to products and services
–– Adopting User-Centered Design practices
Growing appetite for content Ability to lead the market with –– Forging strategic partnerships with global digital
relevant content offers content providers
–– Strengthen the Globe brand to be the preferred
partner of choice
Rising customer expectations for Consistency of service experience –– Launching omni-channel program to enable
better service across all customer touchpoints various customer touch points and use data
analytics from multiple digital channels
–– Using artificial intelligence and chat bots for
customer service
–– Transforming the entire organization to become
customer-centric and highly collaborative
–– Closely tracking customer satisfaction using Net
Promoter Score and valuing customer feedback

EMPOWER THE DIGITAL FILIPINO 53

 5 WAYS TO ENGAGE
CUSTOMERS
1 the actual experience with the products. Globe Hotline - Using their mobile
ACHIEVING CUSTOMER- Now, over 200,000 customers from phones, customers can get in touch
CENTRICITY THROUGH Globe Community's growing base are with Globe through the different hotline
USER-CENTERED DESIGN regularly tapped to participate in user numbers. Globe has dedicated hotline
research and co-designing processes numbers for different types of customers
More customers yearn for prior to product and service launches. -- which range from direct consumers to
personalization of the products they business clients.
purchase and services they avail to suit 2
their needs, and these changes the way Online platforms - Customers can reach
companies win the hearts of customers.
ENGAGING CONSUMERS AT Globe through these online platforms:
However, a customer’s loyalty and love
EVERY STEP OF THE JOURNEY
for a brand transcend the company’s Globe values its customers and as • Official Globe website (http://www.
products and services. Thus, redefining convenient and easy it is to get in touch globe.com.ph) A customer portal for
the customer experience journey to with them, the better. With over 3,000 company-related information.
put the customer at the center of its hotline agents which they can call • MyAccount (http://www.globe.com.
business became a priority for Globe. through 211 (mobile), 240 stores they ph/myaccount) An online platform
This transformation started with the can visit nationwide, employees who are where customers can access their
appointment of Rebecca Eclipse as Chief Globe Ambassadors, and other touch accounts and modify their existing
Customer Experience Officer of Globe points, Globe becomes very accessible to plans.
in 2015, which solidified its stand for the customers. • Globe Online Shop (https://shop.
greater customer-centricity and fulfill globe.com.ph) An online shop where
superior customer experience. As one of the biggest telcos in the customers can find the best products
Philippines, Globe handles a large that fit their lifestyle. Customers can
Today, Globe takes into consideration volume of queries from its customers get great deals on phones, mobile
the customer experience at every step of every day. The company created accessories, apparels, and broadband
the product and sales journey. Following solutions that would take pressure off products.
User-Centered Design practices, the its busy call center, by offering multiple • Globe Community (https://community.
customer has an active voice in every customer service channels in various globe.com.ph/) An online forum where
aspect of the business through the platforms to give customers a variety of customers and Globe employees can
User Council Program. Customers are options on after-sales support wherever interact.
involved in the design process by giving they are, 24/7.
feedback and input, as well as testing

(L-R) Convergys Director for Client Services,

Benito Sy; Chief Customer Experience Officer,
Beck Eclipse; Convergys Senior Director for
Account Management, Marivi Valencia; and
Convergys President for the Asia-Pacific,
Ivic Mueco during the Globe Business
Customer Experience (CX) Forum 2017

54 2017 Globe Integrated Report

Globe stores - With 240 stores making them feel they were getting millennial, credible and trustworthy, and
nationwide, customers can avail all Globe personalized support. In 2017, the provides assistance to Globe customers
services through these business centers, company introduced customers to Gie, a who availed of Platinum Plans. Thea
as well as shop for phones, mobile hybrid chatbot on Facebook Messenger. assists on day-to-day requests for Globe
accessories, broadband products, and Gie was designed to be a digitally savvy, or lifestyle-related requirements such as
apparel. millennial Filipina, making the bot requests for airport lounge access, travel
incredibly relatable to many types of planning, dining reservations, personal
Application-based platforms - Using customers, while smart enough to know shopping, and the like.
their mobile phones, customers can when to hand high priority queries to a
maximize Globe products and services. customer service representative when All these digital channels help Globe to
further personalization was needed. touch and personalize interactions with
Artificial Intelligence and Chatbots - Globe Platinum subscribers were also customers at scale and build lasting
Globe started to use augmented introduced to Thea, a virtual concierge customer relationships.
artificial intelligence (AI) to carry out launched in 2017. Thea also adopts the
real conversations with customers, personality of a digitally savvy Filipina

APPLICATION-BASED PLATFORMS FOR CUSTOMERS

Globe at HOME A tool to help customers monitor their Globe at Home Postpaid Broadband and/
or Globe at Home Prepaid WiFi accounts. Prepaid account holders can check
prepaid balance, track data usage, top-up their device, or Share-A-Promo. On the
other hand, Postpaid account users can pay their bill online, track their data usage,
and purchase volume boost for their plan.

Globe Rewards Customers can earn points to enjoy exclusive offers for shopping, dining, travel
and entertainment partners of Globe.

Globe SWITCH A Globe-exclusive store that brings mobile internet access to the most popular
apps at the most affordable prices available.

GoSAKTO Customers can create their own prepaid promo that fit their needs, budget, and
digital lifestyle.

GServices A convenient way for customers to manage their Globe accounts whenever,
wherever. Customers can check their balance, track usage, view rewards points,
subscribe to promos, activate roaming, modify their account, and even manage
multiple Globe accounts under their name.

EMPOWER THE DIGITAL FILIPINO 55

 3 4 an exciting period to enjoy freebies and
VALUING CUSTOMER FEEDBACK EDUCATING CUSTOMERS TO perks with the biggest brands in dining,
ENJOY TECHNOLOGY BETTER shopping, travel, and entertainment.
As Globe understands its customers
better and in a more holistic way, the With its vast selection of products The spirit of generosity and joy is well
company is able to provide proactive and services, it will be a challenge and alive during the Christmas season,
care to customers, tailor fitting its offers for customers to keep track of the as the company’s International Business
and touch points to address each of their latest offerings from Globe. Thus, the Group (IBG) and partners such as
concerns. For example, among the usual company launched How to Globe, a the Philippine Airlines, Bicol Isarog,
concerns of customers is timely access quick and friendly guide for customers Puregold, and Manila International
to Globe service and billing statements. on maximizing Globe products and Airport Authority, pulled a surprise
More than just listening to customer services, as well as basic service know- for its customers. Overseas Filipino
feedback, the company engaged its how. Customers, employees, partners, Workers from Dubai, Singapore, and
customers by letting them test design and other stakeholders receive a regular Hong Kong were welcomed with holiday
prototypes of billing statements. The feed of basic know-how and tips covering greetings and noche buena gift packs
result is a billing statement that is easier topics such as how to maximize data, the upon their arrival at the Ninoy Aquino
for customers to understand. To address best promos to subscribe to, or the self- international Airport (NAIA). Passengers
the concern on undelivered billing activation of certain services. aboard a Bicol Isarog bus from Naga
statements, customers now receive an were also treated to their Christmas
SMS with a link to their online billing In 2017, the campaign reached 4.2 wish list items such as a flat-screen TV,
statement once it is ready for viewing. million individuals online. From the six laptop computer, mobile phone, camera,
(6) topics, most viewed by customers Christmas basket, among others, as they
In addition, broadband customers can were “How to Share A Load” and “How to alighted from the 12-hour journey to
now track their monthly data usage Monitor Your Data.” Manila.
through the Globe Home Broadband
App. Globe also improved the My 5
Account section of its website to allow Engaged
REWARDING LOYAL CUSTOMERS
customers to view their plan usage,
billing statements and receipts, make True to its commitment to make 380K
CUSTOMERS
service requests, and pay bills. customers feel special and valued,
Globe showed appreciation to loyal
These innovations were made after customers on September 17, giving life
during the 917
Globe listened closely to customer to the traditional prefix of Globe 0917.
needs, and translated it into value- Globe surprised customers in the form celebration
added services and touch points for the of double-the-value Globe Rewards
customer. points making the month of September

(L-R) Jose Marco del Pilar

Executive Vice President
and owner of Bicol Isarog,
and Derrick Heng, Senior
Adviser for Globe myBusiness,
together with their teams,
opened the holiday season by
making wishes come true for
their bus passengers coming
from Naga City.

56 2017 Globe Integrated Report

WHAT OUR CUSTOMERS
SAY ABOUT US
0917 DAY

“Thank you for your paandar and

sending me numbers of perks and
discounts in just 1 week! I’ve had the
same number for the past 14 looong
years and I don’t plan on changing
providers!”

“I already lost track counting the years

I’ve been using this number. Gosh 14
years na pala! First and last number.”

“We may have that love and hate

relationship, but I wanna #SayThankYou
for 6 years of staying with me."

“Happy 0917! 11 years na din pala 'tong

number na 'to. Thanks Globe!"

USER COUNCIL

"This initiative, the User Council, is a man- “Globe literally earned my utmost "I know, somehow, the User Council can
ifestation that Globe is not only doing respect and trust as their subscriber. As influence to make things better to im-
business for itself but also for the good part of User Council, I serve as a voice of prove not just my Globe user experience,
of their customers. Through the UC pro- so many unheard subscribers. By being but other Globe customers' user experi-
gram, Globe will be able to provide what a voice, I can let Globe know and under- ence as well."
they promise: to create a Globe of Good, stand where are these consumers coming - Alwin Aguirre, Prepaid 2003
as well as improve customer experience.” from hence to provide an efficient and
- Junnel Camingawan, Prepaid 2009; effective consumer solutions moving "We were treated as design partners and
Postpaid 2015 forward. ” thus able to engage in free conversation
- Maria Christine Zaldua, Prepaid 2003; in order to build, collaborate and even
“User Council is a great way to get cus- Postpaid 2017 to criticize constructively in order to
tomers' experience, insights and prob- improve the user experience for Globe
lems to improve and give solutions. This is "No matter how small or big my contribu- products and services."
the best thing that Globe makes to get in tions are, it gives me a sense of fulfill- - Chito Reyes, Postpaid 1994; Platinum
touch directly to customers.” ment knowing that Globe did and still is 2016
- Bryan Quinalayo, Prepaid 2007 listening to my feedback to create a more
wonderful experience for the rest of us."
- Neil Ross Goco, Gizmo 2003; Postpaid
2014

EMPOWER THE DIGITAL FILIPINO 57

58 2017 Globe Integrated Report
 WIN THE HOME
To make leading-edge network technology available to
two million homes in 20,000 barangays

EMPOWER THE DIGITAL FILIPINO 59

 BRINGING WONDERFUL
EXPERIENCES TO HOMES
“We expect overall internet experience to improve further moving forward as we continue with
the aggressive deployment of leading-edge network technology, and as we progress towards
serving two million homes by 2020.”
— Martha Sazon, Senior Vice President of Broadband Business

Tectonic shifts in content and the IoT These developments heavily depend on REACHING MORE FILIPINO
are reshaping people’s broadband internet connectivity speed, where the HOMES
needs. Content is now being delivered to nation is still playing catch up with the
virtually any screen, driven by advances rest of the developed world. For many As early as 2016, Globe has already
in network technology at greater speeds. years, the Philippines has been a mobile- deployed more than one million new
first country so fixed lines and fiber to broadband lines for people to enjoy
Digital technologies allow getting homes remain largely underdeveloped. high-speed broadband connection inside
entertainment on demand, at the flick of Local infrastructure, however, has been their homes. The growing appetite of
a screen or a click of a button. The rise of improving, as the government plans to Filipino families for video streaming
the streaming era allows time-pressed deploy a national broadband network and other content has been prompting
consumers to simply fire up Netflix on at an estimated cost of ₱77 billion to the company to shift a significant part
their TV, mobile device, or web browser, ₱200 billion (US$1.5 billion to US$4 of its capital spend towards improving
and watch their favorite TV series and billion). The plan has a three- to five- broadband connectivity in homes. Globe
movies on demand. Digital streaming year timeline to completion and will be expects overall wired internet experience
has permitted entertainment to be used to host a national portal and other to improve further as it aggressively
gulped down in one large serving or in online government services. It will also deploys leading-edge network
bite size at one’s utmost convenience. connect remote locations underserved technology.
by existing broadband provisions.
Already at half point of its goal of
rolling out two million new broadband
lines by 2020, Globe plans to connect
more homes by deploying fiber optic
cables in 20,000 barangays all over the
country. It is well ahead of the scheduled
installation of fiber broadband in 12
Metro Manila cities and in 19 provinces,
as well as very high bit-rate DSL (VDSL),
which provides up to 200 Mbps of high-
speed broadband service using existing
copper in 16 Metro Manila cities and 18
provinces. Accelerating this ambitious
bid is the deployment of massive MIMO
technology, with speeds of at least 10
Mbps by 2020 and enhancing wireless
connection for more users at higher data
rates and better reliability.

60 2017 Globe Integrated Report

AFFORDABLE INTERNET FOR ALL Adoption Rates for Philippine ENSURING THE SECURITY AND
Fixed Broadband Speeds from SAFETY OF CUSTOMERS
To bring connectivity to homes, Globe 2016 to 1Q 2017
offered affordable home broadband 4 10 15 In light of expanding broadband
plans, which led to the growth of Globe Mbps Mbps Mbps coverage, data privacy and protection
internet-at-home customers to 1.3 have also become more urgent and
Adoption
million in 2017 from 1.1 million the Rate 39 11 3.6 relevant, as the interconnectedness of
previous year. The company has been (In percent) wired, home-based, and mobile digital
leading the charge in improving home Quarterly platforms have given rise to customer
internet, as it did in mobile. Growth +26 +55 +52 vulnerabilities. With technology
(In percent) rapidly evolving, security risks are
The company’s efforts are contributing Yearly hurtling forward just as rapidly. Globe
to the improved broadband speed and Growth +111 +330 +373 is committed to ensure the safety of its
(In percent)
adoption in the country, as shown in the customers, and has several initiatives
table below: Source: State of the Internet Connectivity Report, that combat fraudulent activities.
Akamai Technologies

Philippine Fixed Broadband as of In terms of world rankings in download Globe was able to identify, locate
1Q 2017 and fixed line speeds, the Philippines and shut down about 210 illegal
has risen five ranks: from 99 out of 125 repeaters and RFID (radio frequency
Average
5.5 Mbps countries in 2016, to 94 in 2017. identification) systems causing
Speed
interference to its cellular network.
Quarterly The RFID systems found interfering
+20% Speed Improvements in the
Growth with the network of Globe Telecom
Philippines from 2016 to 2017
Yearly Growth +57% were found operating within the
2016 2017 cellular frequency bands and outside
Source: State of the Internet Connectivity Report,
Akamai Technologies World the National Telecommunications
99 / 125 94 / 125
Ranking Commission’s allocated frequency
For the first quarter of 2017, the Download 8.14 11.95 band for RFID.
Philippines has shown fixed broadband Speeds Mbps Mbps
speed improvements, as well as growth, (3Q 2016) (3Q 2017) In May 2017 and June 2017, Globe
in adoption rates. It also registered the Telecom published advisories
Fixed Line 8.76 13.41
strongest growth in the Asia-Pacific Speeds assuring customers that Globe
MBPS mbps
region in terms of above 4 Mbps Telecom is currently not affected
(3Q 2016) (3Q 2017)
connectivity adoption. There is also an by the "WannaCry" and “Petya/Not
Source: Speedtest by Ookla
increase in adoption rates for higher Petya” ransomware cyber-attacks,
speeds such as 10 Mbps and 15 Mbps. respectively, as Globe ASOC was
Globe remains optimistic that home successful in averting over 900
broadband adoption will steadily grow, malware attempts.
increasing the average fixed broadband
speed in the country, and enabling more
Filipino homes to enjoy a fully digital
lifestyle.

EMPOWER THE DIGITAL FILIPINO 61

 4 WAYS TO WIN
FILIPINO HOMES
1 their prepaid accounts with hassle-free home entertainment — from strict
data tracking and reloading. programming schedules to making
DELIVER GREATER FLEXIBILITY
primetime your time — through a
Globe launched its first-of-its-kind home Committed to providing superior after combination of high-speed internet and
broadband plans in 2017, giving greater sales service, Globe At Home also partnerships with world-class content
flexibility and affordability to majority introduced the Globe Tech Squad, a partners. Video content on demand has
of customers subscribing to Globe At special tech customer service team now empowered Filipinos to watch their
Home plan 1299 at 10 Mbps. Globe At that provides end-to-end support for favorite movies and TV shows at their
Home offered the first-ever Prepaid Home WiFi connectivity and home-related convenience.
WiFi in the market, which offered internet needs, including identifying potential
that’s easier on the pocket through more signal interferences, improving the WiFi Since Globe became the mobile and
affordable data and a range of new signal, resolving connectivity issues, and broadband Philippine partner of video
HomeSurf promos. With just ₱15, families connecting existing devices in the home streaming service giant Netflix in 2016,
can already enjoy 1GB more data. The to the WiFi. Globe At Home customers it has been instrumental in millions of
promo can easily be added to existing can avail of the Globe Tech Squad service hours spent enjoying TV shows and
promos such as GoSURF50. Globe also for a one-time fee of ₱1,200 only. movies a day, including original series,
served heavy data users with bigger data documentaries, and feature films. It also
allocations, from 10 GB of data for ₱349 2 caters to younger audiences via Disney
valid for 10 days to 15 GB of data for ₱599 Channel and Cartoon Network.
valid for 30 days. It made these HomeSurf
BRINGING DIGITAL STREAMING
promos exclusively available through the
TO THE FORE
Globe At Home app, available for both Apart from responding to the need
Android and iOS users to easily manage for speed, Globe also transformed

Globe At Home’s VP for Marketing

Barbie Dapul, SVP for Broadband
Martha Sazon, and Head of
Acquisitions Winsley Bangit shared
the exciting news about the launch
of Prepaid Globe At Home WiFi and
their latest broadband offers on
October 5, 2017.

62 2017 Globe Integrated Report

 3
DIVERSIFYING ENTERTAINMENT
CHOICES

Globe seeks to elevate its customers’

entertainment experience, giving them
more ways to enjoy life with an extensive
lineup of productions and offerings both
online and in-ground.

In transforming home entertainment,

Globe covered all bases and partnered
with only the best providers in the
international landscape. In October
2017, it announced the signing of a
RokuTM Powered licensing agreement
that allowed Globe to leverage Roku’s
streaming platform – including its
operating system, channel store, and
streaming players – to launch a new
Globe Streamwatch device in the
country. By simply plugging in, and
activating the device on an HDMI-ready
TV, Globe customers get access to a
wealth of at-home entertainment, a
pay TV connection. Globe was the first
Roku Powered partner t o launch a
streaming stick form factor. The Globe
Streamwatch is available to consumers
by adding ₱50 for 24 months to their
Globe At Home plan or a one-time
At the Globe Streamwatch event, Globe At Home also announced its collaboration with
payment of ₱999.
FOX Networks Group to offer viewers its newly launched video-streaming service FOX+. In
the photo are (from L-R) Globe At Home VP for Marketing Barbie Dapul, FOX’s Jean Loang,
Roku APAC Advisor Brandon Amber, President and CEO Ernest Cu, Senior Vice President,
Head (SVOD) Digital, FOX+ Prakash Ramchandani and Vice President for Content Portfolio
Jil Go.

EMPOWER THE DIGITAL FILIPINO 63

 4 #PlayItRight supported the Pista Netflix, Tribe, HOOQ, NBA, Cartoon
ADVOCATING LEGITIMATE ng Pelikulang Pilipino, a nationwide Network, and Disney.
CONTENT SOURCES ONLY week-long celebration in August in With 63% of the Philippine population
which all movie theaters exclusively using the internet, averaging nine hours
Producing original content also comes screened Filipino films in line with the and 29 minutes everyday (Source: 2018
with the responsibility of educating celebration of Buwan ng Wika. Through Global Digital report, conducted by We
customers to consume properly and #PlayItRight, Globe also championed Are Social and Hootsuite), and with over
legitimately. With the ease at which original content for Filipinos with its 60% having access to data-capable
technology lets people access content first ever co-produced film All of You, a phones, Globe is gearing up to increase
from anywhere on the internet today, romantic comedy that participated in the market share in the broadband space in
piracy remains an immediate challenge, Metro Manila Film Festival (MMFF) in the near future.
undervaluing and taking away the December.
creative efforts that each member of By delivering more capacity and
a production team puts into making a In line with #PlayItRight, Globe satisfying the evolving tastes and
movie or staging a show. Thus Globe customers also accessed all the demands for entertainment, it is also
launched an advocacy campaign entertainment they crave with solidifying its position in the digital home
called #PlayItRight, which encourages GoWATCH, which provides a separate of every Filipino.
consumers to avoid piracy and enjoy data allocation exclusively for videos that
content only from legitimate sources. can be used for popular and legitimate
streaming platforms such as YouTube,

(L-R) Yoly Crisanto, SVP, Corporate

Communications; Nikko Acosta, SVP,
Content Business; Glenn Estrella, VP,
Digital Ventures for GMovies; Liza
Dino, Film Development Council of the
Philippines Chairperson; and Albert De
Larrazabal, Chief Commercial Officer
during the press conference of Pista ng
Pelikulang Pilipino 2017.

64 2017 Globe Integrated Report

 WIN THE HOME
TRENDS / OPPORTUNITIES RISKS / CHALLENGES GLOBE INITIATIVES
Increasing consumer preference for Improving internet speed and –– Blended wired and wireless solutions to
digital streaming bandwidth for HD videos improve internet performance and availability
–– Accelerating deployment of LTE sites
–– Educating customers to shift to higher mobile
technology
–– Bringing affordable home broadband plans
–– Making more streaming devices available for
home use
Improving local broadband Connects as many Filipino homes to –– Prepaid home WiFi service
infrastructure to connect the internet –– Connecting public schools through the Global
underserved areas Filipino Schools Program
Growing interconnectedness of Rising customer vulnerability to –– Promoting legitimate content through an
wired, home-based, and mobile pirated content, cyber fraud and anti-piracy campaign called #PlayItRight
digital platforms scams –– Launching campaigns to educate and engage
customers and the general public on issues
related to data protection, cyber security,
online pornography, and responsible use of
the internet

EMPOWER THE DIGITAL FILIPINO 65

 PUTTING PEOPLE FIRST
To create a high-performing organization through a purpose-driven
workforce with a culture of empowerment, collaboration and innovation

66 2017 Globe Integrated Report

EMPOWER THE DIGITAL FILIPINO 67
 PUTTING PEOPLE FIRST
“Given the Industrial Revolution 4.0, Globe needs to unlearn what used to work, and learn new
skills. We need to be capable of change, and to organize work in such a way that we are quick to
deploy, and are flexible. To do so, we consistently partner with industry leaders to co-develop the
training programs for skills that matter most. We are also carving a dual-career path to develop
deep technology experts, and capable general managers.”
- Renato M. Jiao, Chief Human Resource Officer

PEOPLE MAKE THE DIFFERENCE to innovate within areas of responsibility, At Globe, we also recognize the integral
collaborate extensively, and be role of every employee in championing
At Globe, spinning the Circle of consistently guided by a shared purpose our purpose to create a Globe of Good
Happiness means having a culture and a set of values. We emphasize and their ability to align the company’s
where employee well-being and growth innovation beyond connectivity, with purpose with their own.
are nurtured to deliver wonderful practical implications in key societal
customer experiences and help steer the areas such as education, health, financial Globe strives to be the best company
company’s growth for the future. inclusion, micro-enterprises, and to work for, empowering everyone
connected cities. with just and rewarding compensation
This is done by empowering people at all and benefits; upholding human rights,
levels in our organization, enabling them equality, and workplace diversity;
ensuring utmost safety and wellbeing;
and promoting continued learning and
skills upgrading.

Globe takes pride in being the first

telecommunications company in
the Philippines to be included in
the 2016 Global High Performance
Companies Norm, which is composed of
organizations with exemplary financial
performance and human resource
practices.

Updated by global advisory, broking

and solutions company Willis Towers
Watson, the Global High Performance
Companies Norm includes companies
that meet two distinct criteria: superior
financial performance, and superior
human resource practices. Superior
financial performance is defined as a net
profit margin and/or return on invested
capital that exceeds industry averages
while superior human resource practices
is defined by employee opinion scores
near the top among the most financially
The Information Systems Group (ISG) during their team building led by successful companies surveyed by Willis
Pebbles Sy-Manalang, Chief Information Officer. Towers Watson.

68 2017 Globe Integrated Report

 2016
2017
GLOBE EMPLOYEE PROFILE
By Gender
Male 3,806 3,860 Parental Leave Retention Rates
Female 3,374 3,346 Male Employees 100%

Female Employees 100%

By Age
Under 30 1,641 1,609 Employees Receiving Regular
30 - 50 5,291 5,304 Performance and Career Development
Reviews
Over 50 248 293
Executives and Heads 471
By Location
Managers and Senior
Luzon 4,130
6,095 6,123 Specialists
Visayas 656 648 Specialists and CBUs 2,418
Mindanao 429 435
Total Number of Regular
7,019
Employees*
By Employment Type
*This covers all regular employees, excluding probationary employees, by
Full Time 7,180 7,206 December 31, 2017.

NEW HIRES SUSTAINABLE ENGAGEMENT INDEX

By Gender IN 2016 (NET OF RETENTION SCORE)

91
Male 508 420
%
Female 501 333
ENGAGEMENT SCORE
By Age p 5 points (Global High Performing Norm)
p 6 points (Global Telecommunications Norm)
Under 30 564 410 p 3 points (Philippine National Norm)
p 1 point (Philippine Telecommunications Norm)
30 - 50 442 337 p 4 points (Ayala Group Norm)
Over 50 3 6 First telecommunications company in the
Philippines to be included in the 2016 Global
By Location High Performance Companies Norm
Luzon 914 627
Visayas 53 59
Mindanao 42 67

TURN OVER
By Gender
Male 341 373
Female 325 363 “This recognition validates our deliberate
efforts at developing and sustaining a
culture of empowerment, collaboration and
By Age innovation. It not only enriches our employees’
Under 30 179 185 commitment and engagement, it also enables
us to generate ideas for products and services
30 - 50 461 517 our customers can enjoy, leading to more
Over 50 26 34 wonderful experiences. It certainly has given
Globe a significant and distinctive edge,”
By Location - Renato M. Jiao, Chief Human Resource Officer
Luzon 597 649
Visayas 36 48
Mindanao 33 39

EMPOWER THE DIGITAL FILIPINO 69

 COLLECTIVE BARGAINING HEALTH AND SAFETY Health and Safety Committee
AGREEMENT
Not all companies can transform their Health and Safety 907
In compliance with the Department business amid rapid change as well Committee (12.60% of total
of Labor and Employment’s (DOLE) as test the level of engagement and Members workforce)
Collective Bargaining Agreement (CBA), resiliency among its employees. Ka-
the Globe Telecom Employees Union Globe acts as stewards of the business Accidents Recorded in 2017
Federation of Free Workers (GTEU- and fully cooperates in understanding
Motor Vehicle 166
FFW) remains active in upholding and executing best practices on business
the right of every Ka-Globe to form a resiliency and continuity of Globe Office Accident 28
collective bargaining unit. Employees operations.
may participate in the CBA and, through Lost Days 0
GTEU-FFW, are kept aware and informed Globe puts a premium on workplace
of the mandates. health and safety, committing to zero
fatality and minimal to no injury among As a 24/7 business, it is important that
Globe has a long-standing relationship employees. Guided by best practices, Globe is prepared when natural and
with GTEU-FFW, characterized by the company obtained Occupational man-made disasters happen. This is
healthy and constructive discussions and Health and Safety (OHSAS 18001:2007) the reason the company conducted in
industrial peace. Both have shared goals certification for three sites: Valero 2017, emergency drills and exercises
such as enhancing productivity levels TelePark, GTIT Plaza, and Data Center in in 42 Globe sites nationwide where
and ensuring consistent quality of service Cavite 6,014 employees, visitors, and vendors
to customers across various segments. participated. Prior to these drills, sessions
This long-standing partnership has led to It also continued to provide a healthy on first aid with basic life support, basic
the renewal of Globe and GTEU-FFW’s and safe workplace for employees by: fire fighting, rescue techniques, disaster
five-year CBA for 2016 to 2020. • Continually assessing all health and management, and incident command
safety hazards in the workplace and system were conducted.
continuing programs to eliminate
Employees Covered by Collective
these hazards;
Bargaining Agreement (CBA)
• Complying with occupational health
Collective Bargaining and safety standards applicable to the
259
Unit (CBU) business;
• Training and motivating employees
% of total workforce 3.59
to work with safety in mind, and
encouraging partners to adopt the
POLICY ON same principles;
CONTRACTUALIZATION • Reporting occupational health and
safety performance to stakeholders;
In compliance with Department of • Conducting a regular review of its
Labor and Employment (DOLE) Order management system to ensure that
No. 174 against all forms of illegal the commitments of this policy are
contractualization, Globe engages being delivered, and striving for
accredited third-party vendors who are continual improvement.
compliant to DOLE order 18-A and 174.

70 2017 Globe Integrated Report

OCCUPATIONAL HEALTH AND SAFETY TRAININGS IN 2017 HUMAN RIGHTS
Training Courses Hours Participants
Globe complies with Republic Act 7610
Defensive Driving 16 63 or the Special Protection of Children
Against Child Abuse, Exploitation and
Industrial Climbing, Hauling & Rope Access (ICHRA) 24 90
Discrimination Act, and fully observes
Industrial First-Aid & Basic Life Support (IFBLS) 24 70 the principles of the Human Rights Act
and Child Labor Law.
Basic Occupational Safety and Health 40 83

Incident Investigation 8 23 In its advocacy to provide customers

with safe and quality content, Globe
Hazardous Waste Management 8 41
looks at global best practices in
PCO Training 40 37 Singapore and other countries in the
fight against illegal sites and child
Introduction to ISO 14001/18001 8 30
pornography, as stipulated in the
Ambulance Operations Training 16 35 implementing rules and regulations
of Republic Act 9775 or the Anti-Child
Articulated Vehicle Training 16 20
Pornography Act of 2009. In 2017, the
Helipad Operations 16 35 company invested US$2.7 million to
strengthen its Domain Name System
Emergency Management 8 7
(DNS) with several blocking capabilities.
Urban Search and Rescue Training 40 30 This led to the blocking of close to 2,500
domains or sites found to have lewd and
TOTAL 264 564
child pornography-related content.
The company will continue to be vigilant
against such illegal sites.

Benchmarking such regulations

produces a happy workplace stripped
of any fear of discrimination or violation
towards any employee. Globe neither
condones the violation of the rights of
indigenous people nor does it promote
activities that would pose hazardous
risks or damage to children or young
employees.

Globe holds quarterly town halls to inform

employees of business attainments and give
opportunities for Ka-Globe to engage with
senior leaders during the open forum.

EMPOWER THE DIGITAL FILIPINO 71

 4 WAYS TO BECOME THE BEST
COMPANY TO WORK FOR
1 University has four Academies that offer tools to support the University’s thrust
PRIORITIZING TALENT learnings on technology and innovation, to offer online digital learnings such as
DEVELOPMENT sales and marketing, leadership, and e-learning development, e-book library,
professional development. and GU Online Learning Digest.
Harnessing human capital in this
fast-paced knowledge economy has The training programs have the following In 2017, GU introduced new learning
emerged as a critical ingredient for offerings: Digital Marketing, Cloud programs, such as:
business success. Teamwork, a positive Technology, Agile Methodology, Network • Practical Analytics
learning environment, and empowered Function Virtualization, Software • Peer Coaching
individuals all help businesses survive – Defined Network, Business Intelligence • Storytelling for Business
and thrive – in today’s economic climate. and Analytics, Information Security • Applied Operations Management
and Data Center Training. To support • Globe Marketing Program
This makes continuing learning and the soft skills needed, Globe University • 7 Habits of Highly Effective People
development a priority in Globe. under the Leadership Academy has • Network Function Virtualization
Learning and competency building trained leaders in various aspects • Ethical Hacker
are institutionalized through Globe of leadership: Everyday Leadership, • CompTIA Sec+
University (GU), a critical part of fulfilling People Management, Fundamentals
a corporate learning culture and of Leadership. New programs that To give Ka-Globe employees a holistic
developing Globe employees in-house, will be launched in the first quarter of learning experience, Globe uses different
amplifying organization know-how 2018 include Leading with Emotional training methodologies. For example, in
to deploy the best-trained workforce Intelligence, Collaborative Leadership, the Digital Marketing program, action
possible out on the field. and Leading in the Digital Age, on top learning methodologies are employed
of its current leadership programs. As that enables participants to immediately
Throughout the company’s an adjunct to these course offerings, apply new skills learned in the workplace
transformation, GU played a major role in the Digital Learning Team designs, based on business need. Technology-
upskilling and re-skilling employees. The creates, and develops digital learning based programs come with simulations

Our leaders at the 2017

Leaders' Summit

72 2017 Globe Integrated Report

and hands-on learning. Courses such the course are encouraged to teach- To augment what the future workforce
as internet protocol allows learners to back what they have learned to others will learn in school, Globe also developed
get into a training platform and solve - becoming EDL Champions. There are the Cadetship Program, a fast-track
actual problems in a safe environment. currently 45 EDL Champions who also development program that has ties with
In November 2017, GU partnered with serve as EDL facilitators. academic institutions and focused on
the IT and Business Process Association areas such as Network, IT, Enterprise
of the Philippines (IT-BPAP) to launch 2 Data Office, Enterprise Architecture,
the Digital Professional Program in 2018. and Product Management. This is
This will equip individuals in designing
BUILDING NEW LEADERS FROM aligned with the company’s goal of
and developing a project that infuses
THE YOUTH rendering a steady pipeline of interns
digital interventions in the workplace. In ensuring a steady stream of high- and management development trainees
Topics include Design Thinking, quality young talent, Globe zeroes in on coming from technology courses across
Technological Insights and Trends, Agile excellent new graduates and encourages various universities it supports.
Project Management, and Data Analysis them to be a Ka-Globe. It attracts new
and Visualization. and capable talent through strategic 3
partnerships with universities, also
influencing their curriculum to integrate
CARING FOR EMPLOYEES’
Employee Training HOLISTIC DEVELOPMENT
up-and-coming technologies.
Ratio of training hours 24.66
The Globe Game Changer, one of the Employee Flexible Benefits. Globe
Executives and Heads 16.05 premier digital innovation competitions looks after its employees’ holistic
Managers and Sr. in the country, gathers graduating growth as individuals. It prioritizes the
40.90
Specialists students from universities around the well-being of Ka-Globe, and recognizes
country to test if their innovative ideas the diverse needs of every individual.
Specialists and CBUs 15.99
can be the next big thing in the ICT To address the differences in needed
industry. The top 30 qualifiers advance benefits of employees, the company has
For managers, directors, and VPs, and learn more about leadership, a Flexible Benefit Program that allows
Globe gives them ways to level-up their innovation, and the digital lifestyle in a employees to customize their company-
leadership via the Everyday Leadership three-day business case workshop, as provided benefits to suit their needs
(EDL) program. This program is designed well as get mentored by leaders from as well as those of their dependents.
to teach them the key actions, behaviors, Globe. Winners also take home gadgets Employees have an opportunity to
aptitude and attitude to be an effective and cash prizes, plus an all-expense-paid convert their leaves to upgrade their
leader. One who can drive their team’s trip to Singapore and a chance to be health benefits, or use their car benefit to
performance and raise up the whole the next management trainees in the enroll extended dependents for medical
team. Management Development Program of benefits.
Globe. In 2017, the company hired 12
So far, 371 leaders and 334 leaders management trainees who competed Employee Interest Clubs. These
of leaders (LoLs) have taken the EDL in the Globe Game Changer Program in are groups of Ka-Globe enjoying a
course. Some of those who have taken 2016. similar hobby or passion. These range
from Volleyball, Badminton, Golf,
Mountaineering, Arts and Crafts,
Dancing, Music and so much more.

EMPOWER THE DIGITAL FILIPINO 73

 These clubs meet regularly to play, and 4 turn benefiting over 119,900 learners.
at times spearhead their own events EMPOWERING EMPLOYEES TO Beyond making the classrooms
under the guidance of HRG. To get more DO A GLOBE OF GOOD presentable and highly functional again,
members, there is an annual Interest volunteers also brought snacks and
Club Recruitment Fair held during the Ka-Globe puts to heart their important school supplies for the learners, virtual
first half of the year. role in stirring change in society. Thus reality devices, as well as additional
Globe nurtures people’s innate desire appliances such as computers and smart
Employees can be part of the following to help by providing every employee TVs through funds they raised.
interest clubs: with one day of Volunteer Time-Off
• DRMHWS every year to pursue their advocacy. It In partnership with Ayala Foundation,
• 917 Crew also institutes activity-based and skill- Inc., Globe also donated 72,000
• Globe Adventure Club based volunteering to support work storybooks worth ₱5 million to various
• 917 Golf Club with a partner group or community, public elementary schools. During
• MUSAC organizing people who want to join the event, Globe employee volunteers
• Globe Football Club various advocacies and provide pro conducted storybook reading for the
• Globe Voices @ Work bono services, capacity building, or skills kids.
• Globe Speed & Runners transfer. The company also encourages
• Globe Badminton Club “volunteaming,” where Ka-Globe are free Caring for the environment.
• Globe Volleyball Club to choose the advocacy in which they To help reduce carbon footprint, Globe
• Globe Bowling Club want to participate. encourages bike commuting among
• Quarter Century Club employees as an alternative option
In 2017, volunteerism in Globe reached to taking private vehicles. Called
In 2017, there were 102 events organized an all-time high of 52.8% of total Bike2Globe, the program aims to
by the interest clubs, and a total of 1,072 employee base, with 3,803 employees increase employees’ awareness on the
club members. volunteering for various social positive environmental effects of biking,
development causes. meeting both the UN SDG 13 on climate
Aside from the interest clubs, Globe also change and SDG 11 on making cities
provides services to employees, allowing Nation building for education. inclusive, safe, resilient and sustainable
them to balance their lives better. It In time for the opening of school year through affordable and sustainable
provides an all-day shuttle service from 2017-2018, a total of 1,097 employee- transport. For those who do not own
the main office to satellite offices in volunteers took part in the annual bikes, the company provides several
Metro Manila. Aside from this, Globe classroom painting and repair activity of e-bikes equipped with an electric motor
employees enjoy in-house facilities and the Department of Education (DepEd), and pedal power which employees can
services including a pharmacy, bank, dubbed as Brigada Eskwela. use when they have work-related errands
salon, car wash, gym with personal around the area.
trainers, and fitness group classes. Globe volunteers share their time and
energy to help restore and beautify 109 On May 2017, around 46 Globe
public elementary and high schools, in volunteers tidied up the beach of

The Globe Adventure Club at

Mt. Purgatory for their gift-giving
program to 27 students from Poodin
Elementary School in Bokod, Benguet.

74 2017 Globe Integrated Report

Boracay and rid the area of garbage, activities such as the coastal cleanup such as CENTEX Bauan in Bauan,
along with content partners as an in Las Piñas-Parañaque Critical Habitat Batangas, and Taal Lake Conservation
activity of the Content Summit. Globe and Ecotourism Area, the mangrove tree Center (TLCC) in Mataas na Kahoy,
employees also took part in DENR’s Bike. planting activity in Calatagan, Batangas, Batangas. Volunteers taught responsible
Hike.Plant 2017 tree planting initiative and watershed ecosystem awareness in digital citizenship and cyberwellness
organized by the Forest Management Norzagaray, Bulacan. through the Digital Thumbprint
Bureau to celebrate Arbor Day and the Program. They also held a football and
154th anniversary of the Philippine Help from brothers abroad. basketball clinic for the students, and
Forestry Service. Employee volunteers Since 2011, Globe has been participating assisted in the lake clean up in TLCC.
participated in a 30-kilometer bike and in the Singtel Group Overseas
trek activity that span the DENR Region Volunteering Program (OVP) to help
3 Office in Government Center, Maimpis, partner communities in the Philippines.
San Fernando City, Pampanga to Mt. With volunteers from Singtel, Optus, and
Arayat National Park. Globe volunteers 24/7 (contact center of Optus), the skill-
also supported the DENR’s Earth Month based activities benefited communities

(L-R) Jaime Alfonso Zobel, Brand Manager for Business Development

for Consumer Prepaid and Cocoy Claraval, Vice President for
Product Development and Management, joined one of the longest
running classroom painting and repair activity of the Department of
Education (DepEd) called Brigada Eskwela.

Ernest Cu, President and CEO, and Arlene Cu together with

our content partners and other Globe leaders, spearheaded
a 3-day beach clean-up and coral planting activity after the
annual LaBoracay celebration.

EMPOWER THE DIGITAL FILIPINO 75

 “What I love about OVP Philippines is the
opportunity to meet amazing people in
amazing places and realize that great things can
be achieved when we work together. Everyone
has a place in my heart and memories. I just wish
we got more time together. Cultural walls were
smashed and the laughter shared was a gift. We
joined two other Singtel Overseas Volunteering
Program events for the first time. Volunteers
served as English camp counselors to youth
under the AIS English Camp in Thailand, and
taught English, Math, and led Arts and Crafts
activities for students of Bharti Foundation
schools in India.”
—Megan Mclaren, Optus

OVP Thailand led by Advanced Info Service (AIS)

“One activity I enjoyed the most is the Thai to
English and English to Thai translation. I was not
there just to teach them but also to learn from
them. You learn from each other and by that you
would appreciate each other more.”
— Maynard Guinucay, an engineer from Network
and Technical Group

“As we got to know the kids, I saw their

willingness to really learn. I am amazed by
how grateful and appreciative they are of their
teachers and their counselors. Seeing them and
hearing their stories made me realize that these
kids have lived a rough life, yet they push on and
strive to succeed.”
— Marivic Calayo, a trainer from the Office of
Strategy Management and Customer Experience

“The overseas program helped the students OVP Philippines led by Globe Telecom
and teachers to gain more knowledge from
the OVP volunteers for their improvement
and development. On the other hand, we also
learned a lot from them and this was a very
good time for us to reflect on and be thankful for
the things that we have in our life.”
— Marikit Valmadrid, Change and Training
Expert from Globe Business

“I believe that what the OVP has given to the

children is not just the tangible gifts that each
school receives, but more of the gift of hope.
As they listen to stories of the places where the
volunteers come from, it opened the children’s
minds to the various possibilities. The fact that
we were with them for a few days gave them
a chance to think of possibilities outside their
remote district.” OVP India led by Bharti Airtel and Bharti Foundation
— Claire Tello, Enterprise Data Office

76 2017 Globe Integrated Report

Displacement by war and
earthquakes. Coming to the aid of
Marawi City residents displaced by
war and in dire need of immediate
assistance and long-term rehabilitation
and rebuilding, the Globe Store in Iligan
City, in June 2017, spearheaded the
distribution of goods to the College of
Arts and Social Sciences in Mindanao
State University-Iligan Institute of
Technology, which housed more than
300 evacuees. Globe also set up Libreng
Tawag, Libreng Charging Stations, and
free WiFi connections to serve evacuees
who needed to get in touch with their
loved ones. Moreover, over 300 Globe
employees joined in the meal packing In partnership with Rise for Hunger, over 300 Globe employees joined a meal
program of Rise for Hunger, a non-profit packing program that benefitted 2,000 families in evacuation centers in
international hunger relief agency. Saguiran, Lanao del Sur.
The simple act of volunteering for an
hour produced a total of 120 boxes of
meal packs, which benefitted 2,000
affected families in evacuation centers in
Saguiran, Lanao del Sur.

We also provided 400 packs of relief

assistance to earthquake victims in
Kananga, Leyte and Ormoc City to help
address some of their pressing needs,
particularly food and water. We also set
up Libreng Tawag and Libreng Charging
stations in the affected areas.

Globe also sets up Libreng Tawag, Libreng Charging Stations, and free WiFi
connections to serve evacuees who need to get connected with their family and
friends.

“We share the Singtel Group’s goal of enabling the inclusion and well-being of people, especially those who are
disadvantaged, to help realize their potential and improve their lives,”
- Yoly Crisanto, Senior Vice President for Corporate Communications / Chief Sustainability Officer

EMPOWER THE DIGITAL FILIPINO 77

 C O R P O R AT E
GOVERNANCE

78 2017 Globe Integrated Report

EMPOWER THE DIGITAL FILIPINO 79
 CORPORATE GOVERNANCE
In 2017, Globe Telecom’s corporate Manual of Corporate Governance (MCG), Board with emphasis on the governance
governance (CG) standards and company policies, Committee charters, structure, composition, and diversity
initiatives were not without recognition. our Board’s charter, and our Code of in the Board, ensuring that duties and
Globe was one of the Finalists, and Conduct and Ethics (CoC). We are responsibilities are performed in a
the only telco recognized, during likewise compliant with the Securities manner that safeguards the interests
the Philippine Stock Exchange’s and Exchange Commission’s (SEC) Code of the company and protects our
(PSE) Bell Awards for Excellence in of Corporate Governance, all listing stakeholders amidst an increasingly
Corporate Governance in November rules of the PSE, and other regulations competitive environment.
at the Makati Shangri-La Hotel. Globe issued by the SEC for which an annual
Telecom's Financial and Sustainability Certification of Compliance is issued and We updated our MCG to comply with
Report was also awarded at the 2017 signed by our Chief Compliance Officer the SEC’s Code of CG in May 2017. Our
International Business Awards and and countersigned by our President Charter of the Board of Directors and
we received a Platinum Award for and CEO. An annual Certification of different Board Committee Charters
Excellence in Environmental, Social and Compliance with our CoC is issued and were also reviewed and enhanced in
Corporate Governance (ESG) at The signed by our Chief Human Resource accordance with our updated MCG,
Asset Corporate Awards. Globe was also Officer. These Certifications are also the ACGS and the SEC Code of CG
recognized by FinanceAsia as one of posted on our company website’s CG among other guidelines. In addressing
Asia’s Best Companies for 2017. page and in this Report, page 135. We the layer of regulatory compliance,
also continue to align our policies and through keeping our CG structures in
Notwithstanding the CG awards and practices with the ASEAN Corporate place and our compliance with pertinent
recognition, we realize our strategic Governance Scorecard (ACGS), regulators, CG enables Globe businesses
influence in the capital market and which adopts international CG best to continue to operate smoothly with
thus, continue to improve and intensify practices and standards including internal and external stakeholders.
our CG standards and practices to the CG principles of the Organisation
sustain quality service and value for for Economic Co-operation and We understand that governance
our subscribers and stakeholders. We Development (OECD). Our corporate is beyond regulatory compliance,
proactively adopt policies and practices website is maintained to ensure investor- reports, and disclosures. We believe
that are beyond minimum requirements friendliness and the convenient access that CG’s relevance is most evident
of applicable laws and regulations, and of information for our shareholders when its standards and practices are
persevere to sustain good CG standards and various stakeholders. Our company embedded in business culture and that
embedded in our corporate culture and website contains comprehensive having governance integrated in our
business conduct alongside providing information about our business, business operations is a commitment
quality products and services to our products and services, disclosures and to a corporate journey that we choose
subscribers and customers. We will reports, CG scorecard, surveys and to invest time and effort in. Therefore,
continue to balance our competitive reports, press releases and an archive fairness, transparency, integrity,
business environment with upholding a thereof, as well as our corporate policies, sustainability and accountability must be
culture of good governance. charters and manuals, vision, mission, experienced not only by our customers
core values, investor relations program, and stakeholders, but also among our
As strong advocates of fairness, sustainability and corporate social employees. As such, collaborations
accountability, transparency and responsibility activities, among others. of our Compliance and Governance
integrity in all aspects of the We ensure that all information included team, under the Corporate and Legal
business, our Board of Directors, the in our company website are accurate, Services Group (CLSG), with the Internal
management, the officers, and all our relevant and up-to-date. Audit, Investor Relations and Corporate
employees commit to the principles Communications groups are sustained.
and best practices of governance in the Our Articles of Incorporation and By- These collaborations result in regular
attainment of corporate goals aligned Laws maintain the basic structure of campaigns that promote appreciation for
with Globe Telecom’s strategic direction. CG while the MCG, charters, policies principles and fundamentals of CG and
and CoC act as supplements. These sustainability among Globe employees
Our CG practices are principally legal documents outline the core of our as well as Globe Telecom's user-friendly
contained in our Articles of Incorporation operational framework including the and up-to-date website for investors and
and By-Laws, complemented by the principal duties of the members of the stakeholders.

80 2017 Globe Integrated Report

 (L-R) Atty. Froilan Castelo, General Counsel;
Ernest Cu, President and CEO; Hon. Grace
Poe, Senator of the Philippines; Cong.
Geraldine Roman, Representative of
Bataan; and Gil Genio, Chief Technology and
Information Officer / Chief Strategy Officer
grace one of the AttyATBP talks

We also continued to reach out to operational, financial and compliance in the day-to-day management of
our internal stakeholders to promote areas; and overall risk management business. Among the board members are
awareness and share internal expertise systems. Finally, they approve corporate three independent NEDs, one of whom
through our Attorney At Iba Pa operation and capital budgets, major is the lead independent director (ID).
(AttyATBP) in November, an initiative acquisition and disposal of assets, major Our lead independent director is also
led by CLSG that extends corporate investments, and changes in authority the Chairman of the Audit and Related
and legal services out of the daily and approval limits. In 2017, our mission, Party Transactions (RPT) Committee,
contracts and reports into contributing vision, and values were reviewed and to avoid conflict of interest and
to the practical needs of employees. together with our business strategies to in accordance with our MCG, our lead
Following its debut in October 2015, the stay relevant to the growing needs of our ID is not the Chairman of our Board.
whole-day event gave Globe employees stakeholders. Our independent directors, as defined
convenient and exclusive access to in our MCG, are independent of the
the services of various government The thrust for a CG proactive business company, from Management and
agencies in the Globe premises. There culture emanates from the top. The major/substantial shareholders and are
were also plenary discussions and actual Board, as part of its functions and free from any business or relationship
legal consultations open to all Globe responsibilities, leads, develops and that could materially interfere in their
employees for free. Through these kinds reviews Globe Telecom's strategic exercise of independent judgment in
of activities, Globe is able to extend direction and business strategies carrying out their responsibilities as
accountability, sustainability, and care regularly. Our Board created various directors.
for its employees and communities committees to support Board functions
that surround it. As more beneficiaries and serve as venues to discuss business As part of our CG best practices and in
experience the good in these strategic strategies and Globe Telecom's strategic implementation of our board diversity
initiatives and partnerships, the more direction, among other business matters, policy in the workplace, we have at least
valuable CG becomes for the business in relation to the specific responsibilities one female independent director in
and its people. of each committee. The Board, in the Board. Our Board is composed of
its decision-making function, is also directors with a wide age range. None
encouraged to decide with integrity, of our independent directors serve
BOARD OF DIRECTORS accountability and on behalf of the in more than five boards of publicly-
good interest of the organization and listed companies and have served the
KEY ROLES AND all its stakeholders. Management is company in the same capacity for more
RESPONSIBILITIES entrusted with implementation and than nine years. Our executive director
close monitoring of Board-approved does not serve any other publicly-
Our Board of Directors is our highest business strategies, and is likewise tasked listed company’s Board. Our board
governance body. It establishes to conduct the company’s business with members have different expertise,
our company’s vision, mission, and the highest CG standards and conduct. corporate qualifications and academic
strategic direction, as well as monitors backgrounds. We have a very diverse
the implementation of the corporate BOARD COMPOSITION mix of directors with professional
strategy and the overall corporate backgrounds and experience in various
performance of the company to ensure Eleven board members are elected by industries other than the telco industry
transparency, accountability, integrity our shareholders during our Annual such as accounting and audit, sales
and fairness, and to protect the long- Stockholders’ Meeting (ASM) and hold and marketing, network operations,
term interests of our stakeholders. The office for the ensuing year until the next IT solutions, customer and services
Board, through its various committees, ASM. The President and CEO is elected management, corporate governance and
also oversees and conducts a review of as the sole executive director while strategic planning, as well as educational
our overall risk management systems, the other members as non-executive backgrounds that include biochemistry,
and our material controls, covering directors (NEDs) who are not involved business administration, marketing and

EMPOWER THE DIGITAL FILIPINO 81

 finance, and metallurgical engineering, by our Assistant Corporate Secretary, integrity and good repute and ability
and mathematical sciences, among presents all nominations to the Committee to promote smooth interaction among
others. Our board members also come together with profiles of each nominee Board members, among others that are in
from different ethnic backgrounds and that include, among others, their accordance with good CG principles and
are a mix of different nationalities. qualifications, expertise beneficial to standards as stated in the Nomination
the business, academic and professional and Governance Committee Charter.
NOMINATION AND ELECTION OF background and notable corporate As necessary, we may use professional
DIRECTORS exposure relevant to Globe Telecom's search firms or other external sources of
business. candidates (such as director databases
The board members are highly qualified set-up by director or shareholder bodies)
and have the ability to thoroughly Prior to election of directors at the when searching for candidates to the
examine issues and matters that affect ASM, our Nomination and Governance Board of Directors. Furthermore, as
Globe Telecom's business. In accordance Committee, chaired by an independent stated in our Board diversity policy, no
with our By-Laws, MCG and company director, reviews the qualifications director or candidate for director shall be
policies, any shareholder, including of each nominee. In addition to the discriminated upon by reason of gender,
minority shareholders, may submit qualifications and disqualification stated age, disability, ethnicity, nationality or
to our Nomination and Governance in our Board and Nomination Policy, political, religious, or cultural backgrounds.
Committee the names of the nominees the Committee also considers other
to the Board of Directors including the factors in the evaluation of nominee The profiles of the nominee directors
IDs. The Corporate Secretary, supported directors for election such as record of are also provided in our Information

GLOBE TELECOM BOARD OF DIRECTORS

DIRECTOR POSITION NATURE OF APPOINTMENT
Jaime Augusto Zobel de Ayala Chairman Non-Executive
Fernando Zobel de Ayala Co-Vice Chairman Non-Executive
Lang Tao Yih, Arthur Co-Vice Chairman Non-Executive
Ernest L. Cu Director, President and CEO Executive
Delfin L. Lazaro Director Non-Executive
Samba Natarajan Director Non-Executive
Romeo L. Bernardo Director Non-Executive
Jose Teodoro K. Limcaoco Director Non-Executive
Manuel A. Pacis Independent Director (Lead) Non-Executive
Rex Ma. A. Mendoza Independent Director Non-Executive
Saw Phaik Hwa Independent Director Non-Executive

GLOBE TELECOM KEY OFFICERS

NAME POSITION
Alberto M. de Larrazabal Chief Commercial Officer (CCO)
Rosemarie Maniego-Eala Chief Finance Officer (CFO), Treasurer and Chief Risk Officer (CRO)
Carmina J. Herbosa Chief Audit Executive (CAE)
Gil B. Genio Chief Technology and Information Officer (CTIO), and Chief Strategy Officer (CSO)
Maria Aurora Sy-Manalang Chief Information Officer (CIO)
Rebecca V. Eclipse Chief Customer Experience Officer (CCEO)
Renato M. Jiao Chief Human Resource Officer (CHRO)
Vicente Froilan M. Castelo General Counsel
Bernard P. Llamzon Executive Vice President for Channel Management
Solomon M. Hermosura Corporate Secretary
Marisalve Ciocson-Co Senior Vice President - Law and Compliance, Chief Compliance Officer and Assistant Corporate Secretary

GLOBE TELECOM CONSULTANT

NAME POSITION
Robert Tan Chief Technical Advisor (CTA)

82 2017 Globe Integrated Report

Statement, which is submitted to our executive director does not receive performance, matters for approval, and
pertinent regulators, disseminated to per diem remuneration in addition to his other regulatory and relevant matters, at
shareholders for their examination remuneration as part of the Globe senior least seven business days in advance of
as well as posted on our website. The management in his role as the President Board meetings. The Board has access
profiles of our 2017 Board of Directors and CEO. to the Corporate Secretary who acts
are included in this report as well. as adviser to directors regarding their
The following non-executive directors responsibilities and obligations, and
The full discussion of our procedures of the Board received gross per diem oversees the flow of information prior to
and criteria for election of our directors remuneration for attending Board and meetings. Discussions with independent
is included in our By-Laws, MCG, our Committee meetings in 2017: views during meetings are encouraged,
company policies, Charter of the Board Gross Per Diem given due consideration and properly
of Directors and the Charter of the Director Remuneration documented through the minutes of
Nomination and Governance Committee. (in Php) meetings.
All of which are available on our website. Jaime Augusto 2,400,000.00
Zobel de Ayala
Board meetings are scheduled before
After ASMs, the newly-elected Board of the start of the financial year and the
Lang Tao Yih, Arthur 2,000,000.00
Directors convenes an organizational schedule is posted under the CG section
meeting to set-up its board committees Fernando 1,800,000.00 of our company website. In accordance
and appoint key officers. The appointments Zobel de Ayala with CG best practice and our MCG, Board
are disclosed to pertinent regulators Delfin L. Lazaro 1,500,000.00 materials/papers are provided to each
accordingly. Samba Natarajan 2,800,000.00 director seven days prior to meetings set.
Jose Teodoro K. 2,400,000.00 The NEDs also meet separately during the
BOARD REMUNERATION Limcaoco year without any executives present. In
Romeo L. Bernardo 2,700,000.00
2017, our Board of Directors had a total of
The Board’s remuneration is set at an eight Board meetings including the ASM.
Rex Ma. A. Mendoza 2,400,000.00
optimum level to attract and retain high
caliber directors who continuously and Manuel A. Pacis 2,500,000.00 The average attendance rate of members
effectively deliver services. In accordance Saw Phaik Hwa 2,500,000.00 of the Board was 93%, which is more
with the company’s By-Laws, the Board TOTAL 23,000,000.00 than compliant with the SEC’s minimum
shall receive, pursuant to a resolution attendance requirement of 50%. The
of the stockholders, fees and other average attendance rate of our independent
compensation for their services as BOARD MEETINGS AND directors was 96% in 2017. Attendance of
directors and members of committees of ATTENDANCE each director in Board meetings held in
the Board of Directors. 2017 is enumerated below:
The Board receives board documents
Globe Telecom’s directors receive containing reports on the company’s
₱200,000 per diem remuneration for strategic, operational, and financial
every Board meeting and Stockholders’
meeting attended. This rate was based
ATTENDANCE OF BOARD OF DIRECTORS IN 2017
on a benchmark study against industry
Meetings Meetings Percent
rates as well as a previous study in Board Member
Attended Held Present
2010 to standardize the pay of Board of
Directors across the Ayala Companies. Jaime Augusto Zobel de Ayala 8 8 100%

The per diem remuneration of directors Lang Tao Yih, Arthur1 6 8 100%

remains at ₱100,000 for every Fernando Zobel de Ayala 6 8 75%

committee meeting attended or such Ernest L. Cu 8 8 100%

meetings other than those mentioned Romeo L. Bernardo 8 8 100%

above. Our stockholders ratified this Samba Natarajan 7 8 88%

resolution at our regular ASM in April Delfin L. Lazaro 6 8 75%

2014. Our directors, including the Jose Teodoro K. Limcaoco 8 8 100%

independent non-executive directors, do Manuel A. Pacis 8 8 100%

not receive options, performance shares Rex Ma. A. Mendoza 7 8 88%

or bonuses other than their per diem Saw Phaik Hwa 8 8 100%

remuneration as directors. Meanwhile,

1
Mr. Lang Tao Yih, Arthur was elected as Director on April 18, 2017.

EMPOWER THE DIGITAL FILIPINO 83

 BOARD COMMITTEES

The Board may create committees as it deems necessary, in accordance with the company By-Laws and MCG, to support it in
the performance of its functions and to aid in CG responsibilities. The Board remains our highest governing body, composed
of our eleven (11) Board members. These directors are also members of the different Board Committees. There are five Board
Committees whose members were appointed at the organizational meeting held after the ASM on April 18. Each committee
is subject to the authority of the Board as a whole. Changes were made to some of the Committees later in May in support of
our MCG and in compliance with the SEC Code of CG. Proper disclosure of the changes to pertinent regulators was completed.
Our five committees are the Executive Committee, Audit and Related Party Transactions (RPT) Committee, Compensation and
Remuneration Committee, Nomination and Governance Committee, and the Finance Committee.

All the Committees have their own charters that are aligned with the objectives and responsibilities of each Committee.

Board Committee Role Members

Executive Provides guidance to management in (a) formulating the basic strategies for Chairman:
achieving targets set by the Board; (b) putting in place the infrastructure for Jaime Augusto Zobel de Ayala
control and operational risk management systems that assess risks on an
integrated cross-functional approach, and review and assess the adequacy of Members:
Globe Telecom’s operational risk management process, specifically on strategic, Lang Tao Yih, Arthur
technology, and operational risk, jointly with Management. This function Jose Teodoro K. Limcaoco
shall include receiving from senior management periodic information on risk Ernest L. Cu
exposures and risk management activities; (c) considering and/or completing Samba Natarajan
mergers, acquisitions and strategic investments; and (d) undertaking strategic
projects and significant transformation initiatives that include corporate
governance campaign and sustainability programs.
Audit and Related Party Provides assistance to the Board of Directors in fulfilling its oversight Chairman:
Transactions (RPT) responsibility to the shareholders relating to: Manuel A. Pacis*
–– the integrity of the financial statements and the disclosures; financial
reporting process and principles; Members:
–– internal controls; Saw Phaik Hwa*
–– policies and processes on external/independent auditor’s appointment, Rex Ma. A. Mendoza*
enhancing independence and audit quality, remuneration, and assessment of and Romeo L. Bernardo
performance of the external auditors
–– adequacy and effectiveness of the internal audit function;
–– compliance with legal, regulatory, and corporate governance requirements
–– risk management oversight of financial reporting, operational, and fraud risks
–– assessment, review, approval and disclosure of related party transactions
according to Globe Telecom’s RPT policy * Independent Director
Compensation and Assists the Board of Directors in governance matters relating to compensation Chairman:
Remuneration and benefits of Directors, Key Officers and personnel of the Corporation. Rex Ma. A. Mendoza*

Members:
Fernando Zobel de Ayala
Manuel A. Pacis*
Saw Phaik Hwa*
Lang Tao Yih, Arthur

* Independent Director

84 2017 Globe Integrated Report

Nomination and The Committee has the following functions: Chairman:
Governance (a) responsible for installing and maintaining a process to ensure that all Rex Ma. A. Mendoza*
directors to be nominated for election at the next Annual Regular Stockholders'
Meeting have the qualifications and none of the disqualifications for directors Members:
stated In the Company's By-Laws, MCG and in relevant laws, rules and Manuel A. Pacis*
regulations. Saw Phaik Hwa*
(b) encourages the selection of a mix of competent directors, each of whom
can add value and create independent judgment as to the formulation of sound
corporate strategies and policies.
(c) previews and evaluates the qualifications of all persons nominated to
positions in the corporation, which require appointment by the Board. * Independent Director

Finance Oversees the Corporation’s financial policy and strategy, including capital Chairman:
structure, dividend policy, acquisitions and divestments, treasury activities, Delfin L. Lazaro
tax strategy and compliance, retirement fund contributions, and financing
proposals brought to the Board for approval. Members:
Fernando Zobel de Ayala
Romeo L. Bernardo
Samba Natarajan

Risk management is a responsibility shared by all board committees. Therefore, each Committee is responsible for identifying and
addressing risk areas and factors that are relevant to the duties, functions and objectives of the respective Committee.

The attendance of each Board member according to their respective Committee meetings are enumerated below:
Total Meetings Board Committee Members Present Absent
7 Executive Jaime Augusto Zobel de Ayala 7 -
Mark Chong Chin Kok1 1 -
Jose Teodoro K. Limcaoco 7 -
Ernest L. Cu 7 -
Samba Natarajan 7 -
Lang Tao Yih, Arthur2 6 -
5 Audit and Related Party Manuel A. Pacis 5 -
Transactions Saw Phaik Hwa 5 -
Rex Ma. A. Mendoza 5 -
Romeo L. Bernardo3 3 -
2 Compensation and Remuneration Rex Ma. A. Mendoza 2 -
Fernando Zobel de Ayala 2 -
Romeo L. Bemardo4 1 -
Mark Chong Chin Kok1 1 -
Lang Tao Yih, Arthur4 1 -
Manuel A. Pacis4 1 -
Saw Phaik Hwa4 1 -
2 Nomination and Governance Rex Ma. A. Mendoza 2 -
Manuel A. Pacis 2 -
Saw Phaik Hwa 2 -
6 Finance Delfin L. Lazaro 3 3
Romeo L. Bernardo 6 -
Fernando Zobel de Ayala 4 2
Samba Natarajan 6 -
1
Mr. Chong Chin Kok was a Director until April 18, 2017.
2
Mr. Lang Tao Yih was elected Director on April 18, 2017.
3
Mr. Bernardo became a member of the Audit and Related Party Transactions Committee on May 9, 2017.
4
Mr. Lang Tao Yih, Mr. Pacis and Ms. Saw became members of the Compensation and Remuneration Committee on May 9, 2017. On the same day, Mr. Bernardo was
re-appointed to another Committee from the Compensation and Remuneration Committee

EMPOWER THE DIGITAL FILIPINO 85

 BOARD PERFORMANCE There is likewise an annual strategy rights and data privacy, among others.
workshop held at the beginning of the These seminars also provide a venue
Our Board of Directors, together with year to discuss the strategic direction for directors and key officers to learn
management, fully understand that the of the Company for the entire year. about other CG cases relevant to Globe
CG proactive culture begins with leaders Meanwhile, our NEDs met separately Telecom's business.
of the company. in November, without our executive
director and anyone from Management. The attendance of our Board and key
Apart from compliance with internal Among topics discussed were the role officers to the CG training programs
policies and procedures, the Board of NEDs in the Company, Management and seminars are properly and timely
of Directors performs an annual self- performance on Globe objectives and disclosed to the SEC, PSE, PDEx, and
assessment exercise to assess their strategies and goals, effectiveness of risk posted on our company website.
individual and collective performance management, integrity of governance
as well as their co-directors’ and policies and procedures and adequacy of Events, collaborations and partnerships
Management’s. The self-assessment internal controls. such as these, within the conglomerate,
exercise, through a self-assessment manifest the stronghold of CG in the
questionnaire, is given to each TRAINING AND CONTINUING business’ governance framework. It
director to ensure the effectiveness EDUCATION PROGRAM is crucial to sustain this for the long
of their governance, to reflect on the term such that all members of the
performance of top management To execute their roles well, training on Globe community, its partners and
including the President and CEO, to CG is given to directors prior to assuming stakeholders are able to benefit from
highlight specific strengths, and to office. This is also institutionalized in the initiatives and thrust of the CG culture.
identify areas of improvement. It also our MCG. The Board, together with the
provides a venue for the Board members key officers, also actively attend training MANAGEMENT
to identify priorities for the Board and programs annually to keep abreast of
the company for the succeeding year. updates in CG standards and relevant The President and CEO is accountable
The assessment is comprised of appraisal discussions to support their leadership to the Board for the development
of the Board, of individual directors, of roles in Globe Telecom that cover issues and recommendation of strategies,
the different Board Committees, the and relevant market trends, new laws and the execution of the defined
Management and of the Chairman of and regulations that can affect the strategic imperatives. Through the
the Board. The questionnaire covers a business, sustainability and CG, among Board and Executive Committee, the
thorough evaluation criteria focused on others. President and CEO is able to update and
structure, efficiency, and effectiveness of inform the Board of Globe Telecom's
the Board, participation and engagement Our directors and key officers attended business strategies and plans, CG
of each Board member, contribution of various CG seminars conducted by SEC- and sustainability initiatives and
each Board member to their respective accredited CG training providers during requirements, among other economic
Committees as well as the performance the year. On August 11, members of matters relevant in the performance of
of Management and the Chairman the Board and key officers participated the business.
of the Board. The criteria also reflect in the CG and Risk Management
the specific duties, responsibilities, Summit conducted by the Ayala Group The President and CEO is assisted by
and accountabilities of each Board in collaboration with the Institute of the senior management. The Chief
member assessed in line with Globe Corporate Directors (ICD) in compliance Audit Executive assists in discussions
By-Laws, MCG, Charters and governing with the SEC directive for all key officers with and updates to the Board through
policies. The self-assessment exercise and members of the Board of publicly- the Audit and RPT Committee while
is facilitated by our Chief Compliance listed companies to attend a program the Chief Risk Officer, Treasurer and
Officer. Every three years, the assessment on CG. An in-house CG seminar was Chief Finance Officer through the
shall also be supported by an external also conducted by Risks, Opportunities, Finance Committee and Audit and
facilitator selected for this purpose. An Assessment and Management (ROAM) RPT Committee. Meanwhile, the Chief
annual executive session also takes place on October 10 that was attended by a Compliance Officer assists the President
dedicated to evaluating and discussing couple of our directors. Discussions on and CEO to the Board through the
matters concerning the Board, including topics during these seminars included Nomination and Governance Committee
evaluating the company’s performance the SEC’s integrated Annual Corporate and Executive Committee with regard
and an independent review of its Governance Report (i-ACGR), the SEC’s to CG and sustainability strategies and
management team. Code of CG, global and regional CG matters. Support from the Chief Human
trends for the year, cybercrime, cyber Resource Officer is most relevant in

86 2017 Globe Integrated Report

our Compensation and Remuneration to execution and performance tracking services, and strengthening our country
Committee. Our General Counsel linked to the company's rewards system. through collaborations with our strategic
provides high-level legal consultation partners. Through these, we are able to
and updates to our Board together with We review and formulate our strategic provide meaningful support to all our
our Corporate Secretary. Other executive priorities annually, which then guide the stakeholders.
officers are invited in Board and Board formulation of the key business strategies
Committee meetings as necessary. and goals for the year. Using the balanced Globe will continue to create wonderful
scorecard framework, each business channels to the digital lifestyle for
To monitor and report on the group identifies financial and non-financial Filipinos and all stakeholders. By the end
environmental, sustainability and social objectives, and sets targets and initiatives of 2018, we are set to provide mobile
impacts of the business operations, our to achieve them as reflected in the groups' services to about 95 percent of cities
Chief Sustainability Officer (CSO), Ms. Terms of Reference (TOR). and municipalities in the Philippines
Ma. Yolanda C. Crisanto, was appointed To ensure line of sight, the group TORs with the rigorous developments that will
in 2015. Concurrently, our CSO is also the are cascaded to all employees, making take place enhanced by improvements
Senior Vice President of our Corporate sure that everyone understands and in our infrastructure. We also look
Communications Group who reports appreciates their contribution to the forward to making leading-edge network
directly to the President and CEO and is group goals. technology available to 2 million homes
part of senior management. Apart from in 20,000 barangays nationwide. To
economic, environmental and social topics Key programs, projects, and major get to these, we expect new products
are reviewed by our CSO yearly as well. organizational initiatives are taken up and services to be launched and rolled-
Our CSO communicates sustainability by our senior management, composed out in 2018. In everything we do, in
concerns and initiatives from the of the President and CEO, and the our business, with our people and
management to our Board through the heads of each major business units and stakeholders, our purpose-driven culture
President and CEO, who empowers our support groups. All budgets and major of collaboration, good governance and
advocacy for sustainability and CG. This capital expenditures must be approved sustainability fuels our commitment to
Integrated Report discusses our financial in accordance with the company's limits build a digital nation.
disclosures, as well as topics, concerns, of authority and by the CEO prior to
and initiatives related to our sustainability endorsement to the Board for approval. REMUNERATION OF EXECUTIVE
performance. Meanwhile, our Data Privacy Our Chief Technical Advisor also provides DIRECTOR AND SENIOR
Officer (DPO) and Chief Information inputs to the senior management as MANAGEMENT
Security Officer (CISO), Mr. Anton required. They all meet at least once a
Reynaldo M. Bonifacio, reports directly week. Our remuneration philosophy, policy
to our CTIO to uphold responsibilities in and framework is designed to attract,
accordance with the Data Privacy Act or Management is mandated to provide retain and engage talents. It is designed
Republic Act No. 10173. Our CISO and complete and accurate information to support the business strategies and
DPO also leads our Information Security on the operations and affairs of enhance value of the organization. Our
and Data Privacy Division (ISDP), which is the Company in a timely manner. policy specifies the relationship between
a fully-operationalized group that focuses Management is also required to remuneration and performance,
on Globe Telecom's data privacy and prepare financial statements for each including but not limited to, specific
cybersecurity matters. Our Board, through preceding financial year in accordance financial and non-financial metrics.
the Audit and RPT Committee, is provided with Philippine Financial Reporting
regular updates on information security Standards (PFRS). Management's • We encourage and nurture a strong
and data privacy matters by our CISO to statement of responsibility with regard performance-oriented culture;
ensure that cyber risks and technology to the company's financial statements is recognize and reward talents who
or digital threats to the business and our included in this annual report. demonstrate and create value for the
customers are addressed and managed organization
effectively. CORPORATE OBJECTIVES • We position ourselves as a preferred
employer in providing compelling total
In addition, the Office of Strategy Globe is not simply a telco company. rewards experience encompassing
Management (OSM) reports to the We are an organization that creates continuous learning and development;
President and CEO and oversees the and enables digital life for Filipinos. competitive and market-driven
company's strategy management We achieve this through nurturing compensation; pay for performance;
processes from strategy formulation businesses, empowering individuals and core and innovative benefits to
through our quality products and meet personal and family needs.

EMPOWER THE DIGITAL FILIPINO 87

 In order to support our rewards fail to meet performance requirements needs of our employees. In addition
philosophy, our targeted reward or be involved in any misconduct and to the statutory benefits, Globe also
strategies are as follows: given a disciplinary action resulting to provides medical benefits for in-patient
• Adopt a total rewards approach, suspension or demotion. and out-patient care, life insurance,
using both the tangible and intangible retirement benefits, club membership,
aspects of rewards to drive the Globe car and car-related expenses, and leaves.
employment experience REMUNERATION COMPONENTS
• Market driven to attract and retain top SHORT TERM INCENTIVES
talent in the business The remuneration structure of Globe (PERFORMANCE BONUS)
• Operate on a single-platform- is composed of four main components
differentiated-application approach – Fixed Remuneration, Benefits, Short The short term incentive plan is Globe
to accommodate different talent Term Incentives (Performance Bonus), Telecom’s Variable Pay Program for
segments and Long Term Incentives. The structure non-sales, non-unionized employees.
• Promote relevant reward programs is designed such that the variable The incentive is determined by the
that will be sensitive to employee component increases as the employee achievement of performance targets
lifecycles and experiences moves up in our corporate ladder. that are set at the beginning of the
• Practice transparency, clarity, and This only applies to our employees, performance year. It considers delivery of
consistency in our reward delivery including our executive director. Our corporate, business unit, and individual
non-executive directors of the Board performance targets that are defined
The benchmark for remuneration receive per diem remuneration approved annually. This is usually paid out to
is developed through a rigorous by our shareholders. The Compensation employees within the second quarter of
review and evaluation by the Human and Remuneration Committee the year following the confirmation of
Resources (HR) Group according establishes the formal and transparent all performance targets and individual
to a comprehensive criteria that procedure for developing policy on our performance.
consider numerous factors including executive remuneration and for fixing
market trends, employee roles in the the remuneration packages of our Corporate and Business unit targets are
organization, applicable laws and rules, employees as provided in the Charter of financial/operational targets set in order
and business competitors, among others. the Committee. to support the overall business goals
Through these annual sessions, our HR and thereby increasing our value as a
Group compare Globe remuneration FIXED REMUNERATION company. This incentive plan drives us
criteria, packages and plans against top to work together towards achieving
companies across industries it operates The fixed remuneration is composed of common goals and encourages
in such as fast-moving consumer the base salary and is reflective of the performance in the company. The award
goods, telecommunications, banking value of the role in the prevailing market size for this incentive is differentiated by
and financial services. These reviews and the value of the role compared the employee’s level such that higher
also consider the company as a whole, to the other roles in Globe Telecom. incentive multiple is at stake as the
business units’ contribution to the Other factors that come into play in the employee moves up the organization.
organization and individual performance. base salary are individual performance,
Remuneration is also reviewed vis-à-vis qualifications, experience that the LONG TERM INCENTIVE PLAN
market rates and our financial capability employee brings into the company. The
is considered for any incentive payout. year-on-year increases are determined The new Long Term Incentive Plan
Performance evaluations for senior by individual performances, prevailing was created to replace the Employee
management were made according to market rates on annual salary increases, Stock Option which was last awarded in
these considerations and in accordance pay positioning, economic indicators, 2009. The new plan’s primary objective
with the Charter of our Compensation and Globe Telecom’s financial capability. is to drive long term performance
and Remuneration Committee. In Fixed remuneration also includes in a highly competitive market by
2017, the HR Group engaged Towers guaranteed bonuses such as, but not aligning management interest with the
Watson to assist in the enterprise-wide limited to, the 13th month pay. shareholders’ interest. It also aims to
remuneration benchmarking exercise, motivate participants to sustain high
among other services. BENEFITS levels of contribution. Furthermore, it
is designed to attract and retain key
Current remuneration initiatives allow We provide benefits that are consistent executives whose contributions are
for certain incentives to be withheld or with local market practice and that are essential to Globe Telecom’s growth and
deferred in any year should an executive relevant to meet the personal and family profitability through a rewards scheme

88 2017 Globe Integrated Report

that fosters a sense of genuine loyalty internal audit function; e) compliance the true and fair representation of the
among employees and belongingness with legal, regulatory, and corporate annual audited consolidated financial
within the Globe community thereby governance requirements; f) risk statements and presents the same in
retaining these talents even after management oversight of financial the ASM.
payouts are given out. Lastly, the plan reporting, operational, and fraud risks;
should propel shareholder value through and g) assessment, review, approval and • The Committee approves the work
superior business performance driven by disclosure of related party transactions plan of Globe Internal Audit (IA), as
happy and satisfied employees. according to Globe Telecom's RPT well as the overall scope and work
policy.The Audit and RPT Committee plan of the external auditors. The
The incentive is delivered through a Charter approved by the Board last Committee meets with the internal
performance share based plan where August 7 defines clearly the roles and auditors and external auditors to
it awards executives with company responsibilities of the Audit and RPT discuss the results of their audits,
shares contingent upon the achievement Committee. Management however, ensuring that management is taking
of specified long-term goals over a has primary responsibility for financial appropriate corrective actions on
specified performance period. statements and disclosures, financial internal control issues and areas for
reporting process, internal controls, legal improvement in a timely manner.
The Plan allows for overlapping and regulatory compliance, and risk
performance periods to support rolling management. • The Committee ensures tenders for
multi-year business plans and employee external audit services are conducted
retention. It has a 3-year performance The Audit and RPT Committee is every five (5) years, or when the
period to support business planning composed of four (4) directors, three need arises as decided by the Audit
cycle. (3) are independent and non-executive and RPT Committee. The Audit and
directors including the Chairman. RPT Committee recommends the
To ensure alignment of executive All members of the Committee are appointment, retention or discharge
interest to that of the company, the plan appointed by the Board. The Chairman of of the external auditors, reviews
includes a stock ownership requirement the Audit and RPT Committee is also the and recommends audit fees or the
where the executives are required to appointed Lead Independent Director of remuneration of the external auditors
maintain shares equivalent to a certain the Board. to the full Board. The Board, in turn,
percentage of their annual base salary, submits the appointment of the
depending on the rank of the executive The Audit and RPT Committee meets at external auditors and audit fees for
and specific internal HR policies. least four (4) times during the year and approval of the stockholders at the
invites the President and CEO, CFO and ASM. The amount of audit fees is
ACCOUNTABILITY AND AUDIT concurrently the Treasurer and CRO, disclosed in this Integrated Report.
external auditors, internal auditors, and
To support the Board in the discharge other members of management, as • On an annual basis, the Committee
of its functions, primarily on internal needed, based on the meeting agenda. reviews the external auditors’
controls, risk management, material performance and assesses the
related party transactions (RPTs) and During these meetings: external auditor’s qualifications,
other key corporate governance matters, • The Committee reviews the financial skills, resources, effectiveness, and
it is the policy of Globe to constitute and statements and all related disclosures independence. To limit the possible risk
maintain a competent and working Audit and reports prepared and presented of conflict of interest, the Committee
and Related Party Transactions (RPT) by the CFO and released to the public also reviews and approves in advance,
Committee in fulfilling their oversight and/or submitted to the SEC for the proportion of audit services
responsibility to the shareholders compliance with both the internal vs. non-audit services performed
relating to: a) the integrity of the financial management handbook by the external auditors, and the
financial statements and disclosures, and pertinent accounting standards, corresponding audit fees vs. non-audit
financial reporting process and including regulatory requirements. fees paid to the external auditors,
principles; b) internal controls; c) policies The Committee, after its review of in relation to the SEC regulation
and processes on external auditor’s the quarterly unaudited and annual on “permitted” vs. “not permitted”
appointment, enhancing independence audited consolidated financial services to be rendered by external
and audit quality, remuneration, and statements of Globe Telecom, Inc. auditors and the significance of
assessment of performance of the and Subsidiaries, including key audit the fees to the external audit firm’s
external/independent auditors; d) matters, endorses these to the Board total service revenues and Globe
adequacy and effectiveness of the for approval. The Board of Directors, Telecom's total consultancy expenses,
in turn, reviews, approves and affirms respectively.

EMPOWER THE DIGITAL FILIPINO 89

 • The Committee assesses the Board committees are designated with To ensure compliance with regulatory
adequacy and effectiveness of the oversight function on specific risks. The requirements and assess the
internal audit function by reviewing Executive Committee has oversight on appropriateness of the existing Charter
Globe Internal Audit’s scope of work, corporate strategic risks, technology, for enabling good corporate governance,
authority, independence, compliance and operational risk management, the Committee also reviews and
to professional standards, reporting putting in place the infrastructure for assesses the adequacy of its Charter
relationships, key responsibilities, and risk management systems that assess annually, seeking Board approval for any
changes in their work plan. risks on an integrated cross-functional amendments. The most recent Charter
approach; reviews and assesses the review and revision was approved by the
• The Committee reviews the adequacy of our strategic, technology, Committee on June 21; endorsed to and
results of management’s annual and operational risk management approved by the Board on August 7.
risk assessments based on processes, jointly with Management.
reports provided by CRO covering The Finance Committee oversees our To ensure the Audit and RPT Committee
information on risk exposures and financial risk management, including effectively fulfills its responsibilities
risk management activities, and as risks related to capital structure, according to global best practices and
supported by results of internal audit acquisitions and divestments, treasury expectations set out in the approved
reviews. activities, tax strategy and compliance. charter, Globe Telecom's MCG, SEC
The Audit and RPT Committee provides Memo Circular No. 4 (Series of 2012),
• The Committee reviews and discusses oversight of the financial reporting ACGS and SEC Memo Circular 19
with the management, the internal and operational risks specifically on (Series of 2016) or Code of Corporate
auditors and the external auditors; financial statement and reporting, Governance for Publicly-Listed
and reports annually to the Board internal controls, legal and regulatory Companies, the Committee conducts
of Directors, the adequacy and compliance, corporate governance, risk an assessment of its performance and
effectiveness of the company’s management, fraud risks and related undergoes training, at least annually. The
internal controls and risk management party transactions. The CRO provides results of the self-assessment and any
systems, in all material respects. the Audit and RPT Committee with ensuing action plans are reported to the
periodic reports on risk exposures Board.
• The Committee assesses, reviews, and risk management activities by
approves and reports all covered management, while Globe Internal Audit On an annual basis, our President and
and material RPTs defined in Globe provides assurance on the effectiveness CEO, CFO, and CAE provide a written
Telecom's RPT Policy, including write- of the risk management system and certification to the Audit and RPT
off of exposures, policies on conflicts processes. Committee confirming the reliability of
of interest or potential conflicts of financial statements for the year; full
interest to the Board of Directors The Audit and RPT Committee reports compliance with financial, legal and
and ensures disclosure to regulatory regularly to the Board of Directors on our regulatory requirements and reporting;
authorities. Likewise, the Committee risk management efforts by providing attestation on Globe Telecom's sound
oversees the implementation of the the Board with a more collaborative internal controls and compliance
system for identifying, monitoring, and effective review of risks across the system; and confirmation that the Chief
measuring, controlling, and reporting company and assurance over our overall Audit Executive reports functionally
RPTs, and periodically reviews RPT risk management, that aids the Board to the Audit and RPT Committee and
policies and procedures. There were no in making strategic decisions for the administratively to the CEO allowing
RPT reportable to the Board in 2017 company. Internal Audit to independently fulfill its
subject to the coverage and materiality responsibilities.
threshold defined in Globe Telecom's With guidance provided by the Board,
RPT policy, except for Globe Telecom's management remains primarily INTERNAL AUDIT
RPTs in the ordinary course of business responsible for the development and
which are reflected in Note 16 of implementation of risk management The establishment of an Internal Audit
the 2017 Annual Audited Financial strategies, policies and systems intended function is a fundamental part of Globe
Statements. to address identified risks. Telecom's CG practices and policy.
An Internal Audit Charter, adopted by
The collective responsibility over our The Audit and RPT Committee reports the Audit and RPT Committee/Board,
risk management oversight rests with after each meeting and provides a copy establishes the mission, scope of work,
the Board of Directors. To delineate the of the minutes of its meetings to the authority, independence, compliance
scope of such responsibility, the various Board.

90 2017 Globe Integrated Report

to professional standards, reporting corporate objectives through coverage achievement of key performance
relationships, and key responsibilities of of most critical processes in the conduct indicators, and QAIP. Globe IA
the internal audit function. of risk-based assurance reviews. The periodically undergoes an independent
CAE ensures risks/issues are timely external Quality Assurance Review (QAR)
Internal Audit is a service, providing an called-out, escalated, and monitored to ensure consistent conformance with
independent, objective assurance and while management remains primarily the Standards. The last external QAR was
consulting function within Globe, and responsible for resolving the risks/ done in 2013, where Globe IA obtained
sharing our common goal of creating issues. The CAE continuously improves “Generally Conforms”, the highest rating
and enhancing shareholder value the internal audit operating process that can be given in an external QAR
through a systematic, disciplined, and and standards and ensures strict process. Globe IA is due to undergo an
risk-based approach in evaluating and compliance with International Standards external QAR in 2018. The Standards
improving the effectiveness of risk for the Professional Practice of Internal require an external assessment at least
management, control, and governance Auditing (the Standards) of the Institute once every five years.
processes after consideration of of Internal Auditors (IIA) and ensures
objectives, strategies and risks. Globe alignment to global best practices. Globe IA adopts a risk-based audit
IA provides reasonable assurance Among other responsibilities, the CAE approach in developing its annual work
to the Board, management and the strengthens leadership and talent bench, plan ensuring that all risks, mapped to
stockholders on the adequacy and uplifts performance management and eTOM (enhanced telecommunications
effectiveness of controls encompassing manages internal costs. operations map) based processes, with
Globe Telecom's governance of integrated risk assessments for processes
operations, information systems, Globe IA maintains, reviews, and assesses across the enterprise, are captured in the
reliability and integrity of financial and the adequacy of its Charter annually to audit universe. Globe IA’s annual work
management information, effectiveness ensure conformance with the Standards plan is reassessed quarterly to consider
and efficiency of operational systems and SEC regulations. The result of the emerging risks and the changing
and processes, safeguarding of resources periodic assessment and any arising dynamics of the telecommunications
and effective utilization, and compliance revisions are reviewed and approved business, thereby allowing maximum
with laws, rules and regulations. by the Audit and RPT Committee, with and timely coverage of key/critical risk
concurrence by the Board. In compliance areas. The Audit and RPT Committee
Globe IA also continuously facilitates with the revised Standards released reviews and approves the annual work
self-assessment activities among various by IIA and SEC effective January 2017, plan and all deviations. The Committee
business groups to aid management the existing Internal Audit Charter also ensures that audit resources are
and foster a Control Self-Assessment was revised and approved by the Audit allocated adequately and focused on the
(CSA) environment at Globe. The and RPT Committee on May 8 and areas of highest risks.
Committee regards Internal Audit as a concurrence of the Board was obtained
vital support in the effective discharge on May 9. To promote excellence, Globe IA provides
of the Committee’s oversight role and for continuing professional and personal
responsibilities. Globe IA governs its internal audit development for all internal auditors to
activities in conformance with the IIA’s equip them in the conduct of reviews,
To perform its auditing functions Code of Ethics, and Globe Telecom's with focus on acquiring expertise on
effectively, Globe IA maintains its Code of Conduct. The CAE is responsible Globe Telecom's business processes,
independence from management and for overall conformance with the network and IT systems, internal
controlling shareholders by reporting Standards. To assess whether the controls, new accounting and auditing
functionally to the Board, through purpose, authority and responsibility standards and regulatory updates. The
the Audit and RPT Committee and of internal audit, as defined in the IA audit team is composed of professionally
administratively, to the President and Charter continue to be adequate and certified accountants, internal auditors,
CEO. The Committee, having appointed effective in enabling the internal audit IT and information security auditors,
the CAE, also concurs in his/her function, the CAE develops, maintains, control self-assessors, and licensed
replacement, reassignment, or dismissal. and communicates an appropriate engineers, among others. In addition,
and effective quality assurance and Globe IA has been actively participating
Working closely with the Audit and improvement program (QAIP) that in Ayala Group and Singtel Internal
RPT Committee, the CAE maintains covers all aspects of internal audit Audit Networks and learning from
an effective internal audit function by reviews and activities. The Audit and RPT international knowledge and thought
managing the entire operations, and Committee also receives periodic reports experts to benchmark and adopt
strongly supports the attainment of on the status of internal audit activities, leading-edge global best practices on

EMPOWER THE DIGITAL FILIPINO 91

 methodology, process improvement and In the meeting last April 18, the Audit and Audit-Related Fees represent
audit tools for digitalization to develop a shareholders appointed the accounting audit of Globe Group’s annual financial
team of world class, multi-skilled, internal firm of Navarro Amper & Co./Deloitte statements and review of quarterly
audit professionals. Philippines (NA/DP), an affiliate of financial statements in connection with
Deloitte Southeast Asia Ltd. (a member the statutory and regulatory filings or
EXTERNAL AUDIT firm of Deloitte Touche Tohmatsu engagements for the years ended 2017
Limited) as the external auditor of and 2016. These also include assurance
The Audit and RPT Committee ensures Globe Telecom, Inc. and Subsidiaries and related services that are reasonably
that Globe has set appropriate policies (Globe Group) for the calendar year related to the Globe Group’s 2017
and processes that strengthen the 2017. NA/DP has been the external financial statements pursuant to the
external auditor’s independence and auditor of Globe Group since 2015. In regulatory requirements.
improve audit quality. The external accordance with regulations issued by
auditors are directly responsible to the the SEC and the Audit and RPT Charter, Tax Fees. Globe has not engaged NA/DP
Audit and RPT Committee in helping the audit partner principally handling for any tax-related services for the years
ensure the integrity of the company’s the company’s account shall be rotated ended 2017 and 2016. There were no tax
financial statements and reporting every five (5) years or sooner. fees incurred for the said years.
process.
There were no disagreements with Non-Audit Fees. NA/DP was not
In compliance with the Audit and RPT NA/DP on any matter of accounting engaged to perform non-audit services
Committee Charter, the last tender principles or practices, financial for 2017. Non-audit fees for 2016 pertain
bid process for the external auditor’s statement disclosures, auditing scope to services rendered by NA/DP on the
annual statutory audit was conducted in and procedures. transfer of knowledge through a series of
Q4/2014. The company also conducts an trainings and supervised workshops on
external auditors’ performance appraisal Fees approved in connection with Philippine Financial Reporting Standards
on an annual basis. From the results, the the audit and audit-related services (PFRS) 15: Revenue from Contracts with
Audit and RPT Committee evaluates and rendered by NA/DP pursuant to the Customers which do not involve design
proposes to the Board for endorsement regulatory and statutory requirements and implementation of an accounting
and approval of the stockholders, the for the years ended 31 December system. Non-audit fees in 2016 do not
appointment of the external auditors. 2017 and 2016 amounts to ₱20.62 outweigh fees for audit and audit-related
The endorsement is presented to the million and ₱16.96 million respectively, services.
stockholders for approval at the ASM. inclusive of 7.5% out-of-pocket expenses
Representatives of the external auditors (OPE). Fees presented above include out-of-
are expected to be present at the ASM pocket expenses incidental to external
to have the opportunity to make a In addition to performing the audit of auditors’ services.
statement on the company’s financial Globe Group’s financial statements, NA/
statements and results of operations and DP was also contracted to provide other
be available to respond to appropriate audit-related services in accordance
questions during the meeting. with established procurement policies
in 2017.
The Audit and RPT Committee has
an existing policy to review and pre- The aggregate fees billed by NA/DP are shown below:
approve the audit and non-audit services In millions of Pesos
rendered by Globe Group’s external
2017 2016
auditors. It does not allow the Globe
Group to engage the external auditors Audit and Audit-Related Fees* ₱ 20.62 ₱ 16.96
for certain non-audit services expressly
Non-Audit Fees - 5.49
prohibited by SEC regulations to be
Total ₱ 20.62 ₱ 22.45
performed by external auditors for its
*Excludes 2017 audit fees rendered by external auditors other than NA/DP:
audit clients. This is to ensure that the
• GTI HK, ₱637K (₱540K for 2016) performed by Deloitte HK,
external auditors maintain the highest • GT EU, ₱263K (₱224K in 2016) performed by Wellden and Turnbull LLP,
level of independence from the Globe • GT SG, ₱247K (₱158K for 2016) performed by Ardent, and
Group, both in fact and appearance. • Taodharma, Inc., ₱431K (accrued in 2017) performed by Punongbayan and Araullo (PNA).

92 2017 Globe Integrated Report

ETHICS AND INTEGRITY to meet this commitment. To this end, on the basis of best-value including a
we shall: consideration of their environmental
We respect the rights of our • Continuously assess all health and and social policies and practices. Given
stakeholders. We have adopted a Code safety hazards in the workplace equivalent proposals, preference
of Conduct (CoC), and promulgated and provide programs towards its for purchase award is given to local
policies governing the following matters: eliminations; suppliers.
(i) Conflict of Interest, (ii) Whistleblowers, • Comply to all occupational safety
(iii) Insider Trading, (iv) Related Party and health news applicable to our Relationships with suppliers are also
Transactions (RPTs) and (v) Health, telecommunication business; highly valued, with each considered
Safety and Welfare of Employees. • Train and motivate our employees to a business partner. We continue to
We also have existing formal policies work in a safe manner and encourage recognize and foster strong business
concerning unethical, corrupt, and our business partners to adopt these relations with our partners through the
other prohibited practices covering principles; Business Partner Awards. Vendors also
our employees, management and • Report our occupational safety provide learning opportunity through
members of the Board. These policies and health performance to our plant visits and technology briefings.
serve as guide to matters involving stakeholders; Conversely, Vendor Clinics are initiated
work performance, dealings with • Conduct a regular review of our for selected vendors to help improve
employees, dealings with customers and management system to ensure that their performance and competitiveness.
suppliers, handling of assets, records the commitments of this policy are
and information, avoidance of conflict of being delivered; and that we strive for As strong advocates of fairness,
interest situations and corrupt practices, continual improvement. accountability, transparency, and
as well as the reporting and handling of integrity in all aspects of the business,
complaints from whistleblowers. These Rewards or Compensation Policy Globe commits to the principles and best
documents are the key to the balance We attract, retain and engage our talents practices of corporate governance and
of business and governance in Globe. to support our business strategies responsibility in the attainment of our
These company policies, together with and enhance value of the organization corporate goals and strategic direction.
the Anti-Corruption Policy, Policy on through our remuneration philosophy
Related Party Transactions, Whistle- and framework. We put a premium on Furthermore, we recognize the
Blowing Policy, and others, are also on workplace diversity, just compensation importance of institutionalizing
the company website for investors and and benefits, engagement, safety and practices in the pursuit of its goals.
other stakeholders to refer to at their wellbeing, human rights, and continue to The Globe Telecom Supplier Code of
convenience. promote learning for every employee. Ethics establishes standards of quality
and business integrity to ensure that
Customer Welfare Vendor Audit working conditions are safe, workers are
We put our customers first. We truly We follow socially responsible treated with respect and dignity that
make a difference through superior, end- procurement practices for vendors. business operations are environmentally
to-end customer experience brought The team maximizes value through responsible and conducted ethically.
to life by a genuine culture of service commodity management, selection
and caring. We embed service into our of best-in-class suppliers, and pursuit The Supplier Code of Ethics shall be
Globe culture, as well as to our vendor of process excellence in procurement applicable to all vendors of the Globe
partner, sustaining the momentum of and supply chain management. Vendor Group of companies. Globe expects its
our Circle of Happiness where our happy partners undergo a comprehensive vendors to acknowledge and actively
employees create happy customers. accreditation process which includes support the Code and to continually seek
assessment of their legal, technical, to conform to the standards contained
Employee Welfare and financial capability from business therein. Globe expects that the principles
We are committed to provide the best continuity to conflict of interest, safety, apply to vendors, their parent entities
protection for the health and safety health, and environmental policies. and subsidiaries or affiliated entities, and
of our employees. We do the same Grounded on the practice of fair, ethical with other entities with whom they do
to the communities surrounding our and governance policies, opportunity is business including employees, suppliers,
operations. It is the management’s equitably provided to the appropriate subcontractors, and other parties.
primary objective and the employee’s suppliers through competitive bidding
individual and collective responsibility and auctions. Proposals are evaluated

EMPOWER THE DIGITAL FILIPINO 93

 Environmental Sustainability Policy officers and directors of Globe and our Employees are reminded through
We are committed to promote subsidiaries, including consultants/ internal communications channel to fill
environmental sustainability by reducing project hires seconded to or engaged out gift disclosures especially during
the impact of our business operations on a full-time basis by Globe, to declare national festivities. The form is then
to the environment and we shall and divulge in writing to the company submitted to employees’ respective
achieve this together with the help of his own involvement in any conflict of group heads who will decide whether
our employees, business partners, and interest with the company. Our Code the gift shall be returned or kept by the
clients. We have robust systems in place of Conduct provides for the definition, employee or be surrendered to Human
to manage our environmental impact guidelines and procedures, including the Resources Group for possible use during
and integrate these into our corporate reportorial of any such circumstance, company events.
social responsibility management. involving conflict of interest.
We conduct periodic lectures and
Community Interaction In general, conflict of interest will be seminars on anti-corruption initiatives
Through Globe Bridging Communities, deemed to exist where an employee through our Human Resources Group to
the Corporate Social Responsibility has or may possibly have a financial or all employees. The same is also included
platform of Globe, and our subsidiaries, personal interest divergent with or in in the on-boarding orientation program
we aim to transform underserved conflict with his professional obligations, attended by new employees.
communities nationwide through or where financial or other personal
relevant and innovative solutions that considerations may compromise, or Whistle-blowing
harness the power of collaboration have the appearance of compromising We are committed to compliance with
and inclusivity through information the employee's judgment in the laws and regulations to which we are
and communications technology. The administration, management, decision- subject and conduct our business in
objective is to ensure sustainability making, and discharge of his official accordance with ethical standards. All
by creating shared value across functions. Personal interest is not Globe officers and employees, and all
our employees, customers, and our confined to the personal involvement our suppliers and business partners, are
stakeholders in areas where we operate. of the employee himself-- it may also thus required to observe and practice
As our business continues to grow, arise from the employee's family or close high standards of business and personal
we contribute to nation-building and personal relationship with a contractor, ethics in the conduct of their duties and
shareholder value with an engaged and sub-contractor, customer, competitor, responsibilities.
empowered work force committed to do creditor, or any other entity that does
a Globe of good. business with the company. Through various channels which includes
a hotline (0917-8189934), portal, an
We adopt best practices of ISO 26000 At the start of the year, Globe HR email address (gt_whistleblower@globe.
Social Responsibility enabling us to Group requires all employees to submit com.ph) as well as specific group under
operate in a socially responsible way the Related Party Disclosure Form, the HR Labor Relations department (HR-
across the organization and seek regardless if an employee has any LR), we provide a mechanism that allows
continuous innovative solutions in declaration or none. employees and even third parties to
creating a wonderful world. ISO 26000 report suspected violations of company
helps businesses and organizations Anti-corruption policies by employees, officers, directors,
translate principles into effective actions The employee, by virtue of his and partners, on unethical and corrupt
and shares best practices relating to employment, is bound not to betray practices, misappropriation of company
social responsibility, globally. that trust by seeking to gain any undue assets, fraudulent reporting practices,
personal or pecuniary advantage and other violations of our Code of
Conflict of Interest (other than the rightful proceeds of Conduct, MCG, and Securities Regulation
Globe is above board and, at all times, employment) from his dealings with or Code. Disclosures--in whatever form,
exercises discretion, prudence, and for and in behalf of Globe. including verbal--made in good faith
mature judgement when entering will be investigated according to the
transactions for the company. In Our employees maintain the highest protocols established in this policy and
carrying out their duties with integrity standards of honesty and professional protected by keeping the information
and in the interest of the company, it is conduct. Seeking undue financial and confidential. The identity and source
the duty of board members to withdraw material advantage from transactions of the information are likewise kept
themselves from discussions that put with Globe is a breach of trust between anonymous upon request and protected
them in a conflicted situation. It is the the employee and the company. to the extent required by law.
obligation of every regular employee,

94 2017 Globe Integrated Report

These are by no means the only channels Insider Trading executed with fair and transparent terms
by which disclosures may be received. We restrict trading of securities (buying prior to endorsement to our Board for
Persons or units within the organization or selling) by covered persons considered approval.
who receive disclosures shall forward to have knowledge of material
or relay the disclosures to Security information, during the blackout period, The role of our Audit and RPT
and Enterprise Risk Management for except in accordance with this policy. Committee in the review and approval of
activities involving 3rd party contractor all our RPTs is discussed in this report.
and HR-LR for activities involving an We also prohibit key officers and
employee. ERM designates a complaint employees with access to the quarterly Under our RPT policy, shareholders,
administrator who is in charge of results in the course of its review, from including minority shareholders, and
administering the portal, and receiving, trading in company shares 10 trading other stakeholders are provided with
collating, and submitting all disclosures days before and three trading days after proper guidelines and procedures for
to the Disclosure Committee (DC), who any structured report/disclosure, and right of action and remedies that are
is composed of the company’s Corporate three trading days before and three readily accessible in order to redress
Secretary, HR, Internal Audit, ERM trading days after an unstructured corporate conduct in case of any abuse
and Chief Compliance Officer. If and report/disclosure. on such transactions (e.g. email account
when a disclosure involves a member and hotline numbers), as necessary.
of the Board or ERM or the complaint Related Party Transactions (RPTs) The policy contains this whistle-
administrator, the disclosure shall be We disclose, review, and approve related blowing mechanism, provides for the
transmitted directly to the Corporate party transactions, in accordance with creation of a dedicated committee for
Secretary for handling. the principles of transparency and the review of material RPTs and also
fairness, to ensure that they are at arm’s identifies materiality thresholds of such
Meanwhile, if disclosure involves the DC, length, the terms are fair, and they transactions.
the disclosure will be endorsed to the will inure to the best interest of Globe
Board. Telecom, its subsidiaries or affiliates and Non-compliance with any of the
all shareholders. provisions of the policy on RPT shall
Once disclosure is submitted, the result in the nullification of any
Whistleblower shall receive a notice The RPTs are disclosed in Note 16 agreement or contract involved in the
that the complaint has been received of our Annual Audited Financial execution of the RPT. A director, officer,
and that it shall be processed in Statements, annual reports, and other employee, or Related Party is subject
accordance with the policy. Disclosures applicable filings in accordance with to the corresponding procedures and
will then be investigated by either ERM the relevant rules and issuance of the penalties under our Code of Conduct and
or HR-LR depending on the activity. SEC and other applicable regulatory relevant laws, as applicable.
If with financial and/or reputational bodies. The disclosure includes, but is
risk, Security and ERM will forward the not limited to, the name of the related Creditors’ Rights
report to DC for proper endorsement party, relationship with the corporation It is our policy to protect the rights
to the Office of the President, Audit and for each RPT, the nature and value for of our creditors by maintaining, at all
Related Party Transactions Committee each RPT. Such disclosure is also made times, our good credit standing. We thus
and Legal Group for possible criminal publicly available, for our shareholders strictly observe contractual obligations,
case/action. Meanwhile, for employee and other stakeholders, through our and regard fair and truthful disclosure
related activities, HR-LR will implement website and such other media channels and transparency of financial records
appropriate disciplinary proceedings as applicable. and dealings of utmost importance to
in accordance with due process. If assure creditors of our continued credit
with financial (₱1 million and up) and Together with our other company worthiness. Our periodic reports to our
reputational risk, HR-LR will do the policies, our Policy on RPTs is posted on creditors such as our latest certified
same and forward to DC for proper our website and embedded in our MCG Financial Statements, Certificate of
endorsement to the Office of the and CoC. No Default, and CFO Certification on
President, Audit and Related Party compliance with financial ratios ensure
Transactions Committee, and Legal In accordance with our Policy on RPTs, the Creditors of the company’s financial
Group for possible criminal case/action. the Audit and RPT Committee convene soundness.
The Whistleblower will also receive an to review and monitor material RPTs,
update if no merits were found on the among others, to ensure our best We provide prompt and accurate reports
complaint filed. interest, our shareholders’, and all other of our financial standing to creditors
stakeholders’, and that the RPTs are by providing them our financial and

EMPOWER THE DIGITAL FILIPINO 95

 operating results, Management and upon by reason of gender, age, disability, the latest tools and technologies that
Discussion Analysis and Financial ethnicity, nationality or political, religious allows us to prevent, detect, investigate,
Statements on a periodic basis that allow or cultural backgrounds. Our MCG and respond to the various threats in
the creditors to continuously evaluate reiterates this policy and further states our environment. We have a Security
and monitor our performance and credit that our Board must be composed of at Operations Center (SOC) that monitors
standing. least three independent directors, one our technology infrastructure and
of whom shall be a female, at all times. environment, operates 24x7, and
Moreover, we adopted an expanded Directors must also have understanding manned by a dedicated team. All systems
corporate governance approach in of the telecommunications industry or and processes in the organization go
managing business risks. A Revised sufficient professional experience and through extensive assessments and
Enterprise Risk Management Policy competence in other relevant industries, reviews, targeting information collection,
was developed to provide a better which further encourages a diversified storage, and processing practices, to
understanding of the different risks collaboration of views and skillset within guard against unauthorized access,
that could threaten the achievement our Board. alteration, disclosure, or destruction.
of our vision, mission, strategies, and The status of all our privacy and
goals. The policy also highlights the vital Data Privacy and Intellectual Property cybersecurity programs and operations
role that each individual plays in the Rights are presented to and reviewed by the
organization from senior management Our Privacy Policy outlines our policy Audit Committee of the Board on a
to staff in managing risks and in ensuring in relation to the collection, use, and quarterly basis.
that the company’s business objectives protection of Customer Data to provide
are attained. With this, it assures the customers and other stakeholders with Among other safeguards, we keep
creditors that we are proactive in a wonderful experience. We notify all our records as accurate as possible. If
managing our risks and are committed customers and relevant stakeholders customer personal information is wrong,
to sustaining the growth of the company. with any update on our Privacy Policy we give ways to update it. Registered
As part of the implementation, we by posting it on our website for easy customers may access account details,
regularly submit our quarterly financial reference. We also initiate internal correct personal information and report
results to the PSE and SEC. campaigns on data privacy and abuse of privacy or intellectual property
cybersecurity to ensure our internal rights by contacting the Globe Customer
The loan agreements with banks and stakeholders are also fully aware of their Care (+632 7301000 or 211 using your
other financial institutions provide for rights and responsibilities in relation mobile phone) or his/her designated
certain restrictions and requirements to the use of the products and services relationship manager, as may be
with respect to, among others, that the digital lifestyle offers. The applicable; or by visiting any Globe Store
maintenance of financial ratios and appointment of our CISO and DPO, Mr. or our website at www.globe.com.ph.
percentage of ownership of specific Anton Reynaldo M. Bonifacio, establishes
shareholders, incurrence of additional further, Globe Telecom’s adherence to Concerns on intellectual property or data
long-term indebtedness or guarantees the country’s Data Privacy Act of 2012 protection may be raised with our Chief
and property encumbrances. (Republic Act 10173). Unlike most Information Security Officer and Data
organizations, we have our Information Privacy Officer whose contact details are
Board Diversity Policy Security and Data Privacy Division on our website. Rest assured, we do our
In addition to the qualifications, (ISDP), which is a fully operationalized, utmost to comply with relevant rules
disqualifications, and other criteria separate and independent group that and laws on data privacy and intellectual
set forth in our corporate documents focuses on Globe Telecom’s privacy and property rights.
and relevant law in relation to the cybersecurity matters.
nomination and election of members of DISCLOSURE AND
the Board, we are committed to promote We respect customer and stakeholder TRANSPARENCY
and observe diverse membership among privacy and intellectual property. As
our directors. such, we secure and protect Customer Our management is continuously
Data with proper safeguards to ensure committed to high standards
The Board of Directors, led by the confidentiality and privacy; prevent loss, of disclosure, transparency, and
Chairman, encourages our shareholders theft, or use for unauthorized purposes; accountability. The management
to nominate candidates who will diversify and comply with the requirements established the Environmental
membership in the Board. Therefore, as of the law. We use international and Sustainability Policy and reviews its
company policy, no director or candidate global frameworks as a reference for adequacy at the highest level periodically
for directorship shall be discriminated our control environment and utilize and allocated resources to ensure

96 2017 Globe Integrated Report

effective implementation. The practice of such as dividend declaration is also stakeholders. Details and information on
including our sustainability performance disclosed to the SEC and PSE and then these conferences are published on our
in this Integrated Report serves to released through various modes of corporate website. We have sustained
provide fair, accurate, and meaningful communication. this convenient and accessible line of
assessment of its overall performance communication through our IR Program
on triple bottom line (viz. Economic, In accordance with our strong advocacy in the last financial year and will continue
Environment, and Social) responsibility for CG, we recognize the importance to enhance this in the succeeding years.
to our stakeholders including investors. of regular communication with our
investors, and are committed to high We fully understand that the changes
As a listed company in the PSE and standards of disclosure, transparency, and progress in digital lifestyle
PDEx, with reportorial requirements, and accountability through our include the fast-paced character of
rules and applicable laws as well as Investor Relations (IR) program. Our our customers, shareholders and
regulations of relevant regulatory IR Program is geared towards fulfilling different stakeholders. Because of this,
agencies, we aim to provide a fair, our commitment to a transparent our company website must also be
accurate, complete and meaningful disclosure regime and accessibility for all an effective channel of information
assessment of our company’s financial stakeholders. and a manifestation of CG advocacy.
performance and prospects through Among other information, we keep
the annual report, quarterly financial In addition to the ASM, we extend our website up-to-date with corporate
reports, and analyst presentations. various venues for stakeholders to announcements, reports and disclosures
We practice regular disclosure of our communicate effectively with us through that are accessible to all stakeholders.
financial results. Quarterly financial the conduct of analysts' briefings, ad-hoc
results are immediately disclosed after briefings, investor conferences, media We maintain the company website
the approval by the Board to PSE and briefings, one-on-one or small group regularly to ensure user-friendliness,
SEC. Quarterly and year-end financial meetings, and investor days that are accessibility, accuracy of information and
statements and detailed management’s organized by our IR Department and/ relevance for all our stakeholders. Our
discussion and analysis are filed within or Corporate Communications Group company website has dedicated pages to
45 and 105 calendar days, respectively or in partnership with our shareholders, CG (http://corporate-governance.globe.
from the end of the financial period. broker or other partner institutions. com.ph/), IR (http://investor-relations.
Our financial reporting disclosures are Other than keeping the company globe.com.ph/) and Sustainability
in compliance with the PSE and SEC website up-to-date, these venues (http://annual-report.globe.com.
requisites. Beginning last year, we have provide alternative means for us to ph/2016.html), among other relevant
driven management and respective discuss our quarterly financial results, pages. We encourage our subscribers
departments to release our audited announcements, material disclosures and stakeholders to explore the CG and
financial statements within 60 days and other relevant information with IR pages of our website to learn more
from financial year-end, in compliance stakeholders. In the past years, we about our wonderful corporate culture
with the ACGS standard that is earlier have been further streamlining apart from our products and services.
than the local regulatory deadline. communication efforts and opening-
These reports are made available to up several new customer touch points, Financial performance indicator
the analysts after disclosure, as well enabling them to interact with us We are committed to efficiently
as released through various media at their convenience. Among other manage our resources and enhancing
channels, on our company website. enhancements, we utilized email, live shareholder value. We regularly review
chat, SMS, website, and social media our performance against our operating
In case of mergers, acquisitions and/ channels (e.g., Facebook, Twitter, and financial plans and strategies, and
or takeovers requiring shareholders' Instagram) to provide our customers use key performance indicators to
approval, the board of directors of with real-time information and quicker monitor our progress.
the offeree company shall appoint responses to concerns.
an independent party to evaluate Except for net income, our financial
the fairness of the transaction price. A conference call facility is setup during performance indicators are not
Such shall be disclosed in our financial analysts' briefings and meetings to measurements in accordance with
statement and relevant reports. We enable wider participation among Philippine Financial Reporting Standards
shall also ensure our compliance with shareholders and other stakeholders. (PFRS) and should not be considered as
applicable law, rules, and regulations We also participate in both local and an alternative to net income or any other
prescribed by the SEC and the PSE. international investor conferences, which measure of performance which are in
Any market-sensitive information host various shareholders and other accordance with PFRS.

EMPOWER THE DIGITAL FILIPINO 97

 Non-financial performance indicator Dividend Policy declaration date of such dividends.
We also use a non-financial performance We declare dividends to our common The Board regularly reviews our dividend
indicator to measure the success stockholders on a regular basis as may policy, including the frequency of its
of the business and emphasize our be determined by the Board of Directors. distribution, taking into account our
commitment to sustainability. These We return to our shareholders, dividends operating results, cash flows, debt
include: (1) employee engagement equivalent to 75 % to 90% of the prior covenants, capital expenditure levels,
score; (2) customer satisfaction; (3) year's core net income. Dividends and liquidity. The payment of dividends
environmental and social impacts; declared on our stocks are payable in in the future will depend upon our
among others, which are discussed in cash or in additional shares of stock. As earnings, cash flow, and financial
this Report. a policy and as much as practicable, we condition.
observe a 30-day period for the payment
of dividends to shareholders from the

Declaration Date Per Share Amount Record Date Payable Date

(2017) (in Php) (in Php Mn) (2017) (2017)
February 7 22.75 3,020 February 21 March 8
May 9 22.75 3,024 May 23 June 7
August 7 22.75 3,024 August 22 September 6
November 3 22.75 3,024 November 17 December 1

OWNERSHIP STRUCTURE

We regularly disclose the top 100 shareholders of our common and preferred equity. Disclosure is also made of the security
ownership of certain record and beneficial owners who hold more than 5% of our common and preferred shares. Finally, the
shareholdings, changes therein, and percentage ownership of the directors and key officers are disclosed in our annual reports,
quarterly public ownership reports and posted on our website.

2017
% of
Voting % of voting Non-voting Total % Of total
Stockholders Common % of common non-voting
preferred preferred preferred outstanding outstanding
preferred
Ayala Corporation 41,157,276 30.96% - - - - 41,157,276 13.22%
Singtel 62,646,487 47.13% - - - - 62,646,487 20.12%
Asiacom - - 158,515,016 100.00% - - 158,515,016 50.90%
Directors, Officers,
297,360 0.22% 5 0.00% 27,500 0.14% 324,865 0.10%
ESOP
Public 28,815,462 21.68% - - 19,972,500 99.86% 48,787,962 15.67%
Total 132,916,585 100% 158,515,021 100% 20,000,000 100% 311,431,606 100%

DEALINGS IN SECURITIES

We have adopted strict policies and guidelines for trades involving the company’s shares made by directors and key officers and
those with access to material non-public information. Directors and key officers and those with access to the quarterly results
in the course of its review are prohibited from trading Globe shares starting from the time when quarterly results are internally
reviewed until after we publicly disclose its results. Notices of trading blackouts are regularly issued to the directors and key
officers concerned and to those with access to such material non-public information.

All directors and key officers are required, within three trading days upon change in their ownership of securities, to submit the
statement of changes of ownership in securities (SEC Form 23-B) in relation to their trades to the office of the Chief Compliance
Officer for immediate submission and disclosure to the SEC and the PSE. Once submission and disclosure to pertinent regulatory
agencies are completed, the same is reflected on our relevant reports and the company website under "PSE/SEC Disclosures" of our
Investor Relations webpage.

98 2017 Globe Integrated Report

 GLOBE TELECOM BOARD OF DIRECTORS
End Balance in
2017 Beginning
Title of Class and Nature of 2017 Change/s Company Shares
Balance in
Ownership in Shareholdings as of 31 December
Company Shares
2017
Jaime Augusto Zobel de Ayala Common (direct) 2 - 2
Common (indirect) 1 - 1
Lang Tao Yih, Arthur Common (direct) 2 - 2
Ernest L. Cu 10,000 (A)*
May 15

7,549 (A)*
July 17
Common (direct) 65,255 85,353
7,549 (A)*
August 22

5,000 (D)
September 13

Common (indirect) 4,000 - 4,000

Voting Preferred (direct) 1 - 1
Non-voting Preferred (indirect) 16,700 - 16,700
Romeo L. Bernardo Common (indirect) 500 - 500
Voting Preferred (indirect) 1 - 1
Delfin L. Lazaro Common (direct) 1 - 1
Non-voting Preferred (indirect) 2,800 - 2,800
Jose Teodoro K. Limcaoco Common (direct) 1 - 1
Fernando Zobel de Ayala Common (indirect) 1 - 1
Samba Natarajan Common (direct) 2 - 2
Rex Ma. A. Mendoza Voting Preferred (direct) 1 - 1
Saw Phaik Hwa Voting Preferred (direct) 1 - 1
Manuel A. Pacis Common (indirect) 100 - 100
Voting Preferred (direct) 1 - 1

EMPOWER THE DIGITAL FILIPINO 99

 GLOBE TELECOM KEY OFFICERS
Alberto M. de Larrazabal 3,000 (A)*
May 15

1,125 (A)*
Common (direct) 4,322 9,572
July 17

1,125 (A)*
August 22

Common (indirect) 2,000 - 2,000

Non-voting Preferred (direct) 2,000 - 2,000
Gil B. Genio Common (indirect) 58,638 58,638
3,000 (A)*
May 15

3,541 (A)*
Common (direct) 0 10,082
July 17

3,541 (A)*
August 22

20,000 (D)
Non-voting Preferred (direct) 20,000 0
March 17

Renato M. Jiao 3,000 (A)*

May 15

923 (A)*
Common (direct) 130 4,975
July 17

922 (A)*
August 22

Common (indirect) 285 - 285

Rebecca V. Eclipse Common (indirect) 18,915 - 18,915
3,000 (A)*
May 15

923 (A)*
Common (direct) 0 4,845
July 17

922 (A)*
August 22

Non-voting Preferred (direct) 4,000 - 4,000

Vicente Froilan M. Castelo 1,500 (A)*
May 15

128 (A)*
Common (direct) 814 2,569
July 17

127 (A)*
August 22

100 2017 Globe Integrated Report

Carmina J. Herbosa 1,500 (A)*
May 15

428 (A)*
Common (direct) 0 2,355
July 17

427 (A)*
August 22

Common (indirect) 700 - 700

Non-voting Preferred (direct) 2,000 - 2,000
Bernard P. Llamzon 2,500 (A)*
May 15

573 (A)*
Common (direct) 0 3,645
July 17

572 (A)*
August 22

Solomon M. Hermosura Common (direct) 20 - 20

Common (indirect) 1,000 (D)
1,000 0
May 16

Marisalve Ciocson-Co Common (direct) 1,539 1,290 (A)*

2,829
May 15

Rosemarie Maniego-Eala 1,250 (A)**

May 2

1,500 (A)*
May 15

518 (A)*
Common (direct)1 0 3,724
July 17

517 (A)*
August 22

1,700 (A)**
September 22

1,500 (D)
Common (indirect)1 3,003 3,264
March 2

Maria Aurora Sy-Manalang Common (direct) 179 1,395 (A)*

1,574
May 15

Common (indirect) 500 - 500

1
Change in the nature of shareholdings for 1,761 shares of Ms. Eala was disclosed in July 2017
(A) Acquired
(D) Disposed of
* Stocks grant plan
** Employee Stock Option Plan

None of the members of our Board of Directors and Management owns 2% or more of the outstanding capital stock of Globe
Telecom.

EMPOWER THE DIGITAL FILIPINO 101

 BOARD OF
DIRECTORS

102 2017 Globe Integrated Report

 JAIME AUGUSTO ZOBEL DE AYALA
CHAIRMAN

Mr. Zobel, 58, Filipino, has served as Advisory Board and SMU Advisory abroad. In 2010, he was bestowed the
Chairman of the Board since December Council in the Philippines; Co-Vice Philippine Legion of Honor, with rank
1996 and as a Director since March 1989. Chairman of the Makati Business Club, of Grand Commander, by the President
He is the Chairman and CEO of Ayala and a member of Harvard Global of the Philippines in recognition of his
Corporation. He holds the following Advisory Council, Mitsubishi Corporation outstanding public service. In 2015, he
positions in publicly-listed companies: International Advisory Committee, JP received the Order of Mabini with rank
Chairman of Bank of the Philippine Morgan International Council, Global of Commander, for his vital contributions
Islands and Integrated Micro-Electronics, Board of Advisors of the Council during the Philippines’ hosting of the
Inc.; and Vice Chairman of Ayala Land, on Foreign Relations, Asia Society Asia Pacific Economic Cooperation
Inc. and Manila Water Company, Inc. He International Council, University of (APEC) Summit. He graduated with B.A.
is also the Chairman of AC Education, Tokyo Global Advisory Board, Singapore in Economics (Cum Laude) from Harvard
Ayala Retirement Fund Holdings, Inc., Management University, Endeavor College in 1981 and obtained an MBA
AC Industrial Technology Holdings, Philippines, National Competitiveness from the Harvard Graduate School of
Inc., AC Ventures Holding Corp., AC Council and Eisenhower Fellowships. Business in 1987.
Infrastructure Holdings Corporation
and Asiacom Philippines, Inc.; Co- He was the Philippine Representative Directorship in other publicly-listed
Chairman of Ayala Foundation, Inc. to the APEC Business Advisory Council companies: Ayala Corporation; Bank
and Ayala Group Club, Inc.; Director from 2010 to 2015. In 2007, he received of the Philippine Islands; Integrated
of Alabang Commercial Corporation, the Harvard Business School Alumni Micro-Electronics, Inc.; Manila Water
Ayala International Pte. Ltd., AC Energy, Achievement Award, the school’s highest Company; and Ayala Land, Inc. All of
Inc., Ayala Healthcare Holdings, Inc., recognition. He was a recipient of the which are listed on the Philippine Stock
Light Rail Manila Holdings, Inc. and Presidential Medal of Merit in 2009 Exchange.
AG Holdings Limited; Chairman of the for enhancing the prestige and honor
Harvard Business School Asia-Pacific of the Philippines both at home and

EMPOWER THE DIGITAL FILIPINO 103

 FERNANDO ZOBEL DE AYALA
CO-VICE CHAIRMAN

Mr. Zobel, Filipino, 57, has served as Foundation, Inc. and Ayala Group Club, INSEAD East Asia Council, World
Director since October 1995. He holds Inc.; Vice-Chairman of ALI Eton Property Presidents’ Organization, and Chief
the following positions in publicly Development Corporation, Aurora Executives Organization; and Member
listed companies: President and Chief Properties Incorporated, Vesta Property of the Board of Trustees of Philippine
Operating Officer of Ayala Corporation; Holdings, Inc., Ceci Realty Inc., Fort National Museum, Caritas Manila, and
Chairman of the Board of Ayala Land Bonifacio Development Corporation, Pilipinas Shell Foundation.
and Manila Water Company, Inc. Vice- Bonifacio Land Corporation, Emerging
Chairman of the Bank of the Philippine City Holdings, Inc., Columbus Holdings, Mr. Zobel de Ayala holds a liberal arts
Islands and Director of Integrated Inc., Berkshires Holdings, Inc. and degree from Harvard College and a CIM
Micro-Electronics, Inc.; and Independent Bonifacio Art Foundation, Inc.; Director from INSEAD, France.
Director of Pilipinas Shell Petroleum of LiveIt Investments, Ltd., AG Holdings
Corporation. He is the Chairman of AC Ltd., AC Infrastructure Holdings Directorship in other publicly-listed
International Finance Ltd., AC Industrial Corporation, Asiacom Philippines, Inc., companies: Ayala Corporation, Ayala
Technology Holdings, Inc., Liontide Ayala Retirement Fund Holdings, Inc., Land, Inc., Manila Water Company,
Holdings, Inc., AC Energy, Inc., Ayala AC Education, Inc. and AC Ventures Inc., Bank of the Philippine Islands,
Healthcare Holdings, Inc., Holding Corp., Honda Cars Philippines, Integrated Micro-Electronics, Inc., and
Inc., Isuzu Philippines Corporation, and Pilipinas Shell Petroleum Corporation.
Automobile Central Enterprise, Inc., Manila Peninsula; Chairman of Habitat All of which are listed on the Philippine
Alabang Commercial Corporation, for Humanity’s Asia Pacific Capital Stock Exchange.
Accendo Commercial Corp. and Hero Campaign Steering Committee; Member
Foundation, Inc.; Co-Chairman of Ayala of Philippine-Singapore Business Council,

104 2017 Globe Integrated Report

 LANG TAO YIH, ARTHUR
CO-VICE CHAIRMAN

Mr. Arthur Lang, 46, Singaporean, Bharti Infratel Limited, and the Advisory Team rankings in 2013 and 2015,
was elected as Director on April 18, Board of the Lee Kong Chian School respectively.
2017.He is the CEO International of of Business, Singapore Management
Singapore Telecommunications Limited. University. He has also been appointed Mr. Lang has a Master of Business
Mr. Lang was formerly the Group CFO as a member of CNBC’s Global CFO Administration from the Harvard
of CapitaLand Limited, one of Asia’s Council. Business School and a BA in Economics
largest real estate companies. Prior to (magna cum laude) from Harvard
joining CapitaLand, he was at Morgan Mr. Lang received the Best CFO of the University.
Stanley having been the co-head of the Year Award for listed companies with
Southeast Asia investment banking market capitalization of S$1 billion Directorship in other publicly-listed
division and the Chief Operating Officer and above at the Singapore Corporate companies: Bharti Infratel Limited that
for the Asia Pacific investment banking Awards 2015. He also received the Best is listed on the National Stock Exchange
division. Mr. Lang is also a board member Investor Relations by a CFO award by IR of India Limited and the Bombay Stock
of Netlink Trust, the Land Transport Magazine in 2012, and was also placed Exchange Limited, and Netlink Trust
Authority of Singapore, the National second (sell-side) and third (sell-side) that is listed on the Singapore Stock
Kidney Foundation Singapore, the for Asia’s Best CFO (Property) in the Exchange.
Straits Times Pocket Money Fund, Institutional Investor All-Asia Executive

EMPOWER THE DIGITAL FILIPINO 105

 ERNEST L. CU
DIRECTOR, PRESIDENT AND CHIEF EXECUTIVE OFFICER

Mr. Cu, 57, Filipino, has served as in the country. In 2016, under Mr. Cu's In 2017, Mr. Cu was again hailed as
Director since April 2009. He is currently visionary leadership, Globe embarked on the Philippines’ Best CEO by Finance
the President and Chief Executive a purpose-led transformation to create a Asia. Recognized as one of the most
Officer (CEO) of Globe Telecom, Inc. more sustainable organization. With its influential leaders worldwide, Mr. Cu has
Mr. Cu joined Globe in October 2008 renewed mission, vision, and core values, been included in the Power 100 list of
as Deputy CEO, and was officially collectively embodied in the new Globe London-based Global Telecoms Business
appointed President and CEO on 2 Purpose, the company is now setting its Magazine for five straight years (2013 to
April 2009. Since then, Mr. Cu has sights on serving as a catalyst in driving 2017). Frost & Sullivan Asia Pacific also
been passionately driving a sweeping the nation forward. named him CEO of the Year twice (2012
transformation across the company, and 2017).
including modernizing its network and Prior to Globe, Mr. Cu was President
IT infrastructure, developing a strong and CEO of SPi Technologies from Mr. Cu has a Bachelor of Science Degree
collaborative and service-oriented 1997 to 2008. At the cusp of the new in Industrial Management Engineering
culture, and creating product innovations millennium, he spurred the beginning from De La Salle University in Manila,
in its core business segments. Globe has of the BPO business model for the and an M.B.A. from the J.L. Kellogg
since outperformed industry growth, Philippines, earning him the recognition Graduate School of Management in
with the company breaking records as one of the founding fathers of BPO Northwestern University.
across all key product groups, brands in the country. Lauding his pioneering
and market segments, catapulting Globe spirit, Ernst & Young named him ICT Mr. Cu is not a Director or an executive
as the number one mobile company Entrepreneur of the Year in 2003. in any other publicly-listed company.

106 2017 Globe Integrated Report

 ROMEO L. BERNARDO
DIRECTOR

Mr. Bernardo, 63, Filipino, has served National Reinsurance Corporation of Mr. Bernardo holds a degree in Bachelor
as Director since September 2001. the Philippines (NRCP) and Institute for of Science in Business Economics from
He is Managing Director of Lazaro Development and Econometric Analysis. the University of the Philippines (magna
Bernardo Tiu and Associates (LBT), a He is a member of the Philippine World cum laude) and a Master’s Degree in
financial advisory firm based in Manila. Bank Advisory Group and a member Development Economics from Williams
He is also a GlobalSource economist of the Panel of Conciliators of the College in Williamstown, Massachusetts.
in the Philippines. He is Chairman of International Centre for Settlement of
ALFM Family of Funds and Philippine Investment Disputes. Directorship in other publicly-listed
Stock Index Fund. He is likewise a companies: Aboitiz Power; Bank of the
director of several companies and He previously served as Undersecretary Philippine Islands; RFM Corporation;
organizations including Aboitiz Power, of Finance and as Alternate Executive and National Reinsurance Corporation
Bank of the Philippine Islands, RFM Director of the Asian Development Bank. of the Philippines. All of which are
Corporation, Philippine Investment He was an Advisor of the World Bank listed on the Philippine Stock Exchange.
Management (PHINMA), Inc., BPI- and the IMF (Washington D.C.).
Philam Life Assurance Corporation,

EMPOWER THE DIGITAL FILIPINO 107

 DELFIN L. LAZARO
DIRECTOR

Mr. Lazaro, 71, Filipino, has served AYC Holdings, Inc., AC International Directorship in other publicly-listed
as Director since January 1997. Finance Limited, Purefoods International, companies: Ayala Corporation; Ayala
He holds thefollowing positions in Ltd.; AC Industrial Technology Holdings, Land, Inc.; Integrated Micro-Electronics,
publicly-listed companies: Director of Inc. and Probe Productions, Inc. Inc.; and Manila Water Company, Inc.
Ayala Corporation, Ayala Land, Inc., All of which are listed on the Philippine
Integrated Micro-Electronics, Inc., and Mr. Lazaro earned his Bachelor of Stock Exchange.
Manila Water Company, Inc. His other Science in Metallurgical Engineering
significant positions include: Chairman from the University of the Philippines
of Atlas Fertilizer & Chemicals Inc.; Vice in 1967, and his Masters of Business
Chairman and President of Asiacom Administration (with distinction) from
Philippines, Inc.; Chairman and President the Harvard Graduate School of Business
of A.C.S.T. Business Holdings, Inc.; and in 1971.

108 2017 Globe Integrated Report

 SAMBA NATARAJAN
DIRECTOR

Mr. Natarajan, 52, US citizen, was elected across a wide range of senior roles in the Mr. Natarajan holds a Bachelor of
as Director on 7 April 2015. He has areas of strategy, business development Engineering degree in Electrical
been the CEO of Group Digital Life, and finance. He worked for Citibank from Engineering with distinction from the
Singtel since April 2015. Group Digital 1988 to 1997 and McKinsey & Company Birla Institute of Technology and Science
is the digital innovation business for the since 1999. In his last role with McKinsey, in Pilani, India; a Post Graduate Diploma
Singtel group and is currently focused he was the Leader of Southeast Asia in Management from the Indian Institute
on capturing opportunities in three TMT practice, consulting with C-level of Management in Ahmedabad, India
main areas: Digital Marketing, Over- executives in the areas of growth, where he was an industrial Scholar. He
the-top Video and Data analytics while transformation, corporate finance and also holds an M.B.A. from the Wharton
also managing the corporate venture commercial operations. School of the University of Pennsylvania,
fund, Innov8, that invests in cutting USA, where he was a Hope Fellow,
edge technologies. He joined Singtel Mr. Natarajan sits on the board of Ford Fellow and Palmer Scholar. He
in May 2014 as Managing Director several digital subsidiaries of the Singtel was profiled in “Leaders for the Global
of Digital Enterprise leading a team group, including Amobee, HOOQ and Markets”, Wharton School, 1999–2000.
focused on identifying, executing, and Trustwave. He also sits on the advisory
operationalizing enterprise growth board of the McKinsey Digital Campus Mr. Natarajan is not a Director in any
opportunities from emerging technology and on the Board of Governors of the other publicly-listed company.
trends. He brings more than 25 years Singapore American School.
of corporate and consulting experience

EMPOWER THE DIGITAL FILIPINO 109

 JOSE TEODORO K. LIMCAOCO
DIRECTOR

Mr. Limcaoco, 55, Filipino, was elected AC Education, Inc., Asiacom Philippines, and CFO of Azalea Technology
as Director on 13 April 2016. He is Inc., AG Counselors Corporation, Investments, Inc. He served as the
currently the Chief Finance Officer, Michigan Holdings, Inc.; AC Industrial President of the Chamber of Thrift Banks
Chief Risk Officer, Chief Sustainability Technology Holdings, Inc. (formerly from 2013-2015. He has held prior
Officer and Finance Group Head of Ayala Automotive Holdings Corporation), positions with JP Morgan & Co. and with
Ayala Corporation. He is a director Kauswagan Power GP Corporation, BZW Asia.
of Integrated Micro-Electronics, Inc. A.C.S.T. Business Holdings, Inc., LICA
and an Independent Director of SSI Management Inc. and Just For Kids, Inc. He graduated from Stanford University
Group, Inc. He is the Chairman of He is the Treasurer of Ayala Retirement with a BS Mathematical Sciences
Darong Agricultural and Development Fund Holdings, Inc. (Honors Program) in 1984 and from the
Corporation, Zapfam Inc. and Arlington Wharton School of the University of
Mariveles Philippine GP Corporation. He He joined Ayala Corporation as a Pennsylvania with an MBA (Finance and
is the President and CEO of AC Ventures Managing Director in 1998. Prior Investment Management) in 1988.
Holdings, Inc. (formerly Water Capital to his appointment as CFO in April
Works, Inc.). He is the Vice Chairman of 2015, he held various responsibilities Directorship in other publicly-listed
Lagdigan Land Corporation. He is the including President of BPI Family companies: Integrated Micro-
President of Liontide Holdings, Inc. and Savings Bank, President of BPI Capital Electronics, Inc. and SSI Group, Inc. All
Philwater Holdings Company, Inc. He Corporation, Officer-in-Charge for Ayala of which are listed on the Philippine
is a Director of Ayala Hotels, Inc.; AC Life Assurance, Inc. and Ayala Plans, Stock Exchange.
Energy,Inc., Ayala Healthcare Holdings, Inc., Trustee and Treasurer of Ayala
Inc., Ayala Aviation Corporation. Foundation, Inc., President of myAyala.
com,

110 2017 Globe Integrated Report

 REX MA. A. MENDOZA
INDEPENDENT DIRECTOR

Mr. Mendoza, 55, Filipino, was elected as (PhilamLife). Prior to this position, he was of the Philippines’ Cesar E.A. Virata
Director on 8 April 2014. He is currently the President and CEO of Philam Life, School of Business last December 2013.
the President and CEO of Rampver Chairman of The Philam Foundation, Inc. He is also a fellow with distinction at the
Financials, a financial services firm and and Vice Chairman of BPI Philam Life Life Management Institute of Atlanta,
the leading nonbank mutual funds Assurance Company. Prior to rejoining Georgia, USA, a Registered Financial
distributor in the country. He also sits as Philam Life, he was Senior Vice President Planner and a four-time member of
a Director of Prime Orion Properties, Inc., and Chief Marketing and Sales Officer of the Million Dollar Round Table. Mr.
a publicly-listed company; and a Director Ayala Land, Inc. He was also Chairman Mendoza was a professor of Marketing
of Esquire Financing, Inc., the Cullinan of Ayala Land International Sales, Inc., and Computational Finance at the De
Group, TechnoMarine Philippines, Seven President of Ayala Land Sales, Inc., and La Salle University Graduate School of
Tall Trees Events Company, Inc., Mobile Avida Sales Corporation. Business. He taught strategic marketing,
Group, Inc. and Trustee of the Bataan services marketing and services
Peninsula State University. He earned his Master’s Degree in strategy. He has served as Chairman
Business Management with distinction of the Marketing Department and was
He was previously the Senior Adviser to from the Asian Institute of Management awarded as one of the University’s most
the AIA Group CEO for Marketing and in 1986 and was one of the 10 outstanding professors.
Distribution and a board member of the Outstanding Graduates of his batch
Authority of the Freeport of Bataan. at the University of the Philippines Directorship in another publicly-listed
AIA Group Limited is the leading Pan- where he obtained a BSBA degree company: Prime Orion Philippines, Inc.,
Asian insurance company and is the with a double major in marketing and listed on the Philippine Stock Exchange.
parent firm of the Philippine American finance in 1983. He was awarded Most
Life and General Insurance Company Distinguished Alumnus of the University

EMPOWER THE DIGITAL FILIPINO 111

 SAW PHAIK HWA
INDEPENDENT DIRECTOR

Ms. Saw, 63, Singaporean, was elected China. Ms. Saw retired as its CEO on 1 springboards to opportunities in those
as Director on 7 April 2015. She also May 2015. Prior to this, Ms. Saw was the regions. From 1984 to 2002, Ms. Saw
holds directorship in companies President and CEO of SMRT Corporation was the Regional President in charge of
overseas including The Hour Glass Ltd between December 2002 to January businesses in Singapore, Indonesia, and
Limited and The Esplanade Co Ltd. 2012, Singapore’s first multi-modal Malaysia for DFS Venture Singapore.
Ms. Saw was the Group CEO of Auric public transport service provider. During
Pacific Group, listed on the Mainboard her tenure, she enhanced the public Ms. Saw holds a Second Upper Class
of the Singapore Exchange, which has travel experience in Singapore by Honours in Biochemistry from the
diverse business interests ranging from introducing commutercentric initiatives University of Singapore and has
distribution of fast moving consumer and adding lifestyle conveniences attended the Advanced Management
food, food manufacturing and retailing, at stations to make public transport Programme in the University of Hawaii.
management of restaurant and food a choice mode of travel for all. She
court operations to other strategic was also instrumental in broadening Directorship in another publicly-listed
investments including fund investment. SMRT’s geographical footprint as well as company: Hour Glass Limited, listed on
The Group operates in various countries establishing SMRT’s presence overseas the Singapore Stock Exchange.
throughout Asia including Singapore, with the opening of offices in the
Malaysia, Indonesia, Hong Kong and Middle East and China which serve as

112 2017 Globe Integrated Report

 MANUEL A. PACIS
LEAD INDEPENDENT DIRECTOR

Mr. Pacis, 73, Filipino, has served as He also served as Vice President for Mr. Pacis graduated with a Bachelor of
Independent Director since April 2011. Internal Controls Worldwide and Business Administration (BBA), magna
He was formerly a Vice President Financial Systems Worldwide at P&G. His cum laude, from the University of the
for Finance of the Procter & Gamble wide-ranging experiences throughout his East in 1963.
Company (P&G) in Cincinnati, Ohio. He business career have included leadership
held positions of increasing responsibility roles in corporate governance, strategic Mr. Pacis is not a Director in any other
in the Philippines, the US, Mexico, China, planning, internal audit, management publicly-listed company.
and Japan including Chief Financial systems/information technology,
Officer of P&G Asia, and a Global mergers & acquisitions, joint ventures,
Business Unit (GBU). and finance & accounting.

EMPOWER THE DIGITAL FILIPINO 113

114 2017 Globe Integrated Report
RISK MANAGEMENT

EMPOWER THE DIGITAL FILIPINO 115

 RISK MANAGEMENT
“In Globe, we enable our employees to care like an owner. We think of what’s best for the Company and our
customers. A core value that leads us to take accountability for our actions and ensure transparency to our
stakeholders for the outcome of our decisions. As a result, we enable our fellow-employees to be aware of
possible risks, advising them how to react properly and reminding each other to remain committed to our
purpose, values and principles.”
- Rizza Maniego-Eala, Chief Finance Officer and Chief Risk Officer

Globe Telecom believes that effective Risk Management (RM) practices are crucial to sustaining its profitability and resiliency as a
company. Hence, we ensure that RM remains a core capability and an integral part of how decisions are made in the organization
to deliver value to our shareholders.

116 2017 Globe Integrated Report

We live out our RM philosophy via three key pillars - Structure, Process and Culture.

STRUCTURE

We strive to cultivate an organizational structure that supports strong corporate governance, clearly defines risk taking
responsibility and authority, facilitates ownership and accountability for risk taking, and ensures proper segregation of duties.

PROCESS

We strive to sustain sound processes that facilitate the identification, assessment, quantification, mitigation, management,
monitoring and communication of risks at the enterprise and operational level. We also regularly review our RM processes
and policies on a continuing basis and stay abreast of current developments to ensure that we remain robust and relevant,
through benchmarking against industry and global best practices.

CULTURE

We strive to nurture a risk aware culture by setting the appropriate tone at the top, defining clear accountability for risks,
espousing transparency and timeliness in sharing risk information, enabling risk-adjusted decisions, recognizing appropriate
risk-taking attitudes, and embedding the right risk skills across the organization.

BOARD RISK MANAGEMENT OVERSIGHT

EXECUTIVE COMMITTEE AUDIT AND RPT COMMITTEE FINANCE COMMITTEE

• Provides oversight on corporate • Provides oversight on financial • Provides an oversight on
strategic risks, technlogy, and reporting risks the company’s financial risk
operational risks • Provides oversight on operational management including risks related
• Provides guidance in setting up risks, specifically on financial to capital structure, acquisitions,
integrated and cross-functional risk statements and reporting, divestments, treasury activities, tax
management systems and controls internal controls, legal or strategy, and compliance
infrastructure regulatory compliance, corporate
• Reviews, jointly with management, governance, risk management,
the adequacy of risk management and fraud
process for strategic, operational, • Reports regularly to the Board of
and technology risks Directors on Globe Telecom’s risk
management efforts by providing
the Board with a more coordinate
and effective review of risks across
the company and assurance
over Globe Telecom’s overall risk
management.

EMPOWER THE DIGITAL FILIPINO 117

 ROLES AND RESPONSIBILITIES Chief Risk Executive The CRO reports quarterly to the Board
The President and Chief Executive through the Audit and RPT Committee
Board of Directors Officer (CEO) acting as the Chief Risk regarding our critical risks, control issues
The Board of Directors oversees and Executive (CRE) is ultimately responsible and key mitigation plans and provides
conducts an annual review of our for RM priorities, including strategies, insights on the following:
material controls, covering operational, tolerances and policies which he • Risk management processes are
financial and compliance areas and recommends to the Board for approval. working as intended,
overall RM systems. The overall The CRE: • Risk measures and mitigation plans
responsibility for our RM oversight rests • Acts as the final enforcer of the RM are reported and continuously
with the Board. To enable the Board to process; reviewed by risk owners for
effectively discharge our RM function, • Establishes organizational structure, effectiveness; and
various Board Committees have been assigns authority and designates • Established risk policies and
designated to provide RM oversight for management of key risks to Risk procedures are being complied with.
specific risk areas. Owners to ensure that the RM
activities are carried out effectively; The CRO then shares the Board’s
To enable an integrated approach to • Reviews the continuing effectiveness discussions on risks, particularly on
risk management oversight at Board and relevance of the RM framework, directions, plans and strategies for
level, the Audit and RPT Committee processes, organization and development and execution with the
shall report regularly to the Board tolerances, as assisted by the Chief MLRMC and Management Team.
of Directors on Globe Telecom’s risk Risk Officer;
management efforts providing the Board • Ensures that RM activities are linked Enterprise Risk Management Services
with a more coordinated and effective to the Risk Owners’ Key Result Areas. Division
review of risks across the company and The Enterprise Risk Management
assurance over Globe Telecom’s overall Chief Risk Officer Services Division (ERMSD), headed by
risk management. To that effect, the The Chief Finance Officer (CFO) and a Risk Management Program Officer,
Audit and RPT Committee functions as a concurrent Chief Risk Officer (CRO) supports the CRO in undertaking her
separate level risk committee. supports the CRE at the management role. Key functions of the ERMSD
level. The CRO ensures that: include:
Management • There is adequate supervision and • Facilitating Management Team’s
With guidance provided by the Board, guidance over the development, annual risk assessment exercise and
our Management is fully responsible for implementation, maintenance reporting the results thereof
decision-making over the day-to-day and continuous improvement • Coordinating with Risk owners to
affairs of Globe including the design, of RM policies, processes and gather updates on the status of risks
development and implementation of documentation. and Risk Management/mitigation
the RM strategies, policies and systems • Risk Management processes and activities
intended to address the identified risks. activities are embedded within the • Facilitating the execution of Line
organization’s policies, business Management’s risk and controls
A Management-Level Risk Management cycles and operational decisions. assessment exercise
Committee (MLRMC), chaired by the • Responsibilities for managing specific • Developing and implementing
Chief Risk Officer (CRO), was established risks by Senior Management are clear. programs to embed RM discipline
to assist the Board in fulfilling its • The level of risk accepted by the and drive sustained risk awareness
oversight responsibilities in relation to company is appropriate. across the organization
risk governance in Globe and to enable: • An effective control environment
• Cultivation of an organizational exists for the company as a whole. Internal Audit
structure with a sound ERM • In collaboration with the CEO/CRE The Internal Audit Team provides
framework effectively working in and Senior Management, the Audit assurance on the effectiveness of RM
place that supports strong corporate and RPT Committee, the Board, and systems and processes. Internal Audit’s
governance. other stakeholders are provided examinations cover a regular evaluation
• Clear definition of risk taking periodic information on the results of of adequacy and effectiveness of RM
responsibility and authority. the annual risk assessment exercise and control processes encompassing
• Ownership and accountability of risk and updates on the status of top the company’s governance, operations,
taking and ensure proper segregation risks, key risk mitigation activities, key information systems, reliability and
of duties. risk and performance indicators and integrity of financial and operational
emerging risks that could impact the information, effectiveness and efficiency
attainment of our objectives.
118 2017 Globe Integrated Report
of operations, safeguarding of assets Our key RM activities include: A coordinated end-to-end operational
and compliance with laws, rules and • Identification of top enterprise risk assessment program to identify,
regulations. risks including (but not limited assess, treat, monitor and report risks
to) those that relate to economic, for effective and informed business
Risk Owner environmental, social and Decisions are in place. The assesments
The Risk owner has overall accountability governance, that can impact the are focused on the identified most
for the assigned risk/s and is granted achievement of the Company’s key critical operational risk areas in Globe.
authority to enable effective objectives Management believes that this program
management of a particular risk. The • Prioritization of risks based on is an essential foundation for a strong
Risk owner’s function also includes: the degree of impact to business RM process as it reinforces the lines of
• Understanding the risk/s and objectives and the likelihood of defense against key operational risks,
determining its drivers occurrence based on pre-defined risk while providing relevant insights to
• Planning for and executing categories and parameters some of the top enterprise risks. The
appropriate RM strategies and • Scenario and mitigation planning Management Team is apprised of the
mitigation plans for key risks • Business continuity planning results of the assessments, particularly,
identified • Crisis planning and management the most significant risks for inputs on
• Securing required resources needed • Program risk management strategies and action plans and guidance
to effectively manage the risks • Monitoring and reporting on the on issues needing further review. A
• Monitoring and reviewing the level status of risks and corresponding RM comprehensive dashboard focusing on
of risk exposures and continuing plans the key operational risk and highlights
relevance of RM strategies and plans • Establishing a risk register with key risk indicators, developments,
• Providing timely updates on the clearly defined, prioritized and mitigation plans, residual risk levels,
status of RM activities to concerned residual risks overall operational risk status and
stakeholders. • Identification, assessment and comparison versus risks thresholds were
management of operational risks by also developed to provide the overview
RISK MANAGEMENT APPROACH line management of the operational risks across the
• Establishment of operational risk organization.
The ISO 31000 framework for Risk thresholds for monitoring
Management is used as the basis for our • As necessary, contract independent When necessary, we seek external
RM process. The established framework reviews by 3rd party consultants to technical support from 3rd party experts
also ensure that compliance processes assess/identify risk exposures and to aid our Management Team and Board
and procedures are effectively guided verify the soundness of controls. in the performance of their duties and
by the RM policy. The framework guides responsibilities including RM.
the Board, through the MLRMC and the An enterprise wide assessment of risks
Audit and RPT Committee, in identifying is performed by the Management and GLOBE PRINCIPAL RISKS
business lines and enterprise-level Business Team as part of our annual
risk exposures as well as monitoring planning and budgeting process, results The achievement of our key business
effectiveness of ERM strategies. of which are reported to and reviewed objectives can be affected by a wide
by the Board. This assessment focuses array of risk factors. Some of these
Globe has institutionalized a process on identifying the key risks that threaten risk factors are universal while some
to closely monitor the RM plans and the achievement of our business are unique to the telecommunications
actions being taken to address critical objectives at corporate and business industry.
risks, including the establishment of unit level, as well as the assignment of
key risk indicators and key performance risk owner/s and development of plans
indicators to ensure that critical risks in managing such risks. The established
are appropriately managed. This strategies and plans to address the risks
process includes a review made by the are continuously developed, updated,
Management Team, Business Team and improved, and reviewed for effectiveness.
Group Heads. The Management Team On a regular basis, the Management
monitors enterprise level risks such Team discusses the current risk levels
as strategic risks, major program risks, and status of implementation of
and regulatory risks while the business mitigation plans.
team and group heads monitor the
operational, legal, and project risks.

EMPOWER THE DIGITAL FILIPINO 119

 The risks vary widely in occurrence and Financial Markets Risk market and high growth data
severity, some of which are beyond A. Foreign Exchange Risk business, as current operators
our control. There may also be risks Exposure to foreign exchange risks seek to increase market share with
that are either presently unknown or remains a risk to Globe. Our foreign aggressive offerings while potential
not currently assessed as significant, exchange risk results primarily from new entrants continue to further
which may later prove to be material. At movements of the Philippine peso heighten the competitive Dynamics.
Globe, we aim to mitigate the exposures against the US dollar (US$) with While at present, the Philippine
through appropriate RM strategies, respect to our US$-denominated telecommunications industry
strong internal controls and capabilities, financial assets, liabilities, revenues continues to be a two-player market,
close monitoring of risks and mitigation and expenditures. the entry of a third player is expected
plans. The section below sets out the in 2018.
principal risk types, listed in no particular There are no assurances that declines
order of significance: in the value of the peso will not occur B. Alternative Competition
in the future or that the availability of The competitiveness of the industry
Political and Socio-Economic Risks foreign exchange will not be limited. is further underlined by cheap
Our growth and profitability may be Recurrence of these conditions alternatives to communication such
influenced by the overall political and may adversely affect our financial as instant messaging, social network
economic situation of the Philippines. condition and results of operations. services and voice over internet
Any political instability in the Philippines protocol. These alternatives are also
could negatively affect the country’s B. Interest Rate Risk driven by proliferation of affordable
general economic conditions which, In order to fund our major smartphones and internet-capable
in turn, could adversely affect our expenditures, Globe has entered in mobile devices.
business, financial condition or results various short and long-term debt
of operations, including the ability to obligations, which exposes us to the The continued growth
enhance the growth of its customer base, risk of changes in interest rates. and development of the
improve its revenue base and implement telecommunications industry
its business strategies. Our exposure to interest rate risk and will depend on many factors. Any
currency risk are being managed by: significant economic, technological,
The current administration is seen • Using a mix of fixed and variable rate or regulatory development could
to bring potential changes that can debt that are meant to achieve a result in either a slowdown or growth
positively or negatively affect the balance between cost and volatility. in demand for mobile services
telecommunications industry. These • Entering into interest rate swaps, and may impact Globe Telecom's
include: in which we agree to exchange, at business, revenues, and net income.
• Pressure to improve network specified intervals, the difference
performance (i.e., network between fixed and variable interest We continue to assert our market
connectivity) amounts calculated by reference to position through the offering of
• Possible pressure on pricing an agreed-upon notional principal personalized plans and attractive
• Potential entry of foreign telecom amount. product/device bundles, and launching
players • Using a combination of natural innovative products and services that are
• Potential improved LGU support hedges and derivative hedging relevant and responsive to the needs of
• Promise of increased infrastructure to manage its foreign exchange the customers and focusing on superior
spend exposure. customer experience. We also partner
with leading providers of content, mobile
A regular environmental scanning We also regularly evaluate our projected messaging, social media and other
exercise is performed to ensure the and actual cash flows and continuously popular applications in order to provide
identification of any uncertainties arising assess conditions in the financial markets products and services that anticipate and
from political and socio-economic for opportunities to pursue fund raising cater to shifting customer preferences.
factors. activities, in case any requirements arise.
Management is closely monitoring Regulatory Risk
the shift in policies to anticipate the Competition Risk We are regulated by the National
potential impact to the business plans as A. Traditional Competition Telecommunications Commission
well as maintaining open communication Competition remains intense in (NTC), an attached agency of the
lines with the various government the Philippine telecommunications Department of Information and
sectors. industry amidst a maturing mobile Communications Technology (DICT),

120 2017 Globe Integrated Report

for our telecommunications business, in the roadmap of future products provide a venue for regular progress
and by the Securities and Exchange and services and our network and updates, alignment of efforts, discussion
Commission (SEC) for other aspects of IT infrastructure evolution. Proper of critical implementation issues and
our business. On the other hand, the timing of investments in technology challenges and help ensure successful
newly-formed Philippine Competition and infrastructure always consider execution of our change programs.
Commission (PCC) has oversight on its strategic implications, velocity
our mergers, acquisitions, and other of technology cycles and customer Organizational Agility Risk
similar transactions as it is tasked to adoption. Leading the digital lifestyle for our
effectively level the playing field among customers and diversification of our
businesses and penalize anti-competitive Globe Telecom's data network is business portfolio is critical to maintain
agreements and abuse of market continuously being enhanced by our market competitiveness. Failure to
dominance. deploying new mobile and data drive the entire organization to quickly
technologies, increasing our network adapt work practices and make the
The introduction of, changes in, or capacities and coverage and modernizing right shift in skills and competencies
the inconsistent application of laws the fixed line data infrastructure. necessary for us to lead in the
or regulations from time to time, may digital space and forge into adjacent
materially affect our operations, and Change Program Risk spaces may lead to missed business
ultimately our earnings which could Globe is in the process of transforming opportunities.
impair our ability to service debt. There our businesses and such changes
is no assurance that the regulatory permeate into our Network and IT We have initiated cultural change
environment will support any increase in systems and supporting processes. programs that focus on customer
our business and financial activity. Crucial changes in our network centricity and innovation. Opportunistic
infrastructure are being pursued mainly hiring of talents required for innovation
We manage our regulatory risks through to improve network quality, anticipate and new investment areas are also
regular monitoring of regulatory rulings the surge in voice and data traffic, carefully considered. Further, through
especially those that could negatively decrease total cost of ownership and Kickstart Ventures, we invest in building
impact our businesses and proactive make the network robust enough to to scale, the technical foundation of
engagement with the regulators. meet future needs. IT transformation digital and tech start-up businesses
programs are set to re-engineer our IT operating in the Philippines. We
Customer Preference and Technology systems and key processes to enhance continue to build the right leadership
Shift Risk our ability to deliver superior customer structures and system team that will
Our ability to recognize and quickly experience and understand what our support an agile, future-ready and
respond to changes in customer customers value, while being able to roll customer-centric organization.
preferences by upgrading our existing out products to the market in a more
infrastructure and systems may impact efficient and effective manner. Human Capital Risks
our competitiveness in the marketplace. We are exposed to risks in staffing
Should our ambitious and complex our critical functions with competent
Mobile data applications and the transformation programs fail to management and technical expertise.
rising popularity of smartphones and achieve the desired outcomes, we Our greatest asset is our people and
mobile and connected devices are key could ultimately lose market share thus our success is largely dependent on our
contributors to the explosion of data impacting our financial results. ability to attract highly skilled personnel
traffic. This phenomenon is placing a and to retain and motivate our best
strain on the Globe Telecom's network We have institutionalized the employees. Our people is the glue that
capacity as well as the supporting back appropriate program governance brings everything together which is why
end systems, negatively impacting organizations with Management Team it is crucial to ensure that we are able to
customer experience. oversight and accountability to ensure acquire the right people and enhance
program risks are properly considered their exceptional abilities further.
Our business, product and technical and managed aimed at achieving key
teams continue to keep abreast of program objectives and improving Various people-related programs
the latest innovations and trends in customer experience. We ensure that a designed to engage and motivate
telecommunications technologies, competent program office and project employees are being implemented in
devices and gadgets. The information organization is in place for major change order to retain and attract key talents.
and insights gathered are considered programs. Supporting processes have Globe University was formally organized
been established to closely monitor and to address the growing competency and

EMPOWER THE DIGITAL FILIPINO 121

 development needs of Globe. With the This exposes us to various forms of copies. Existing laws require that
need to develop key talent imperatives, cyber-attacks which could result in these information be adequately
it is a significant move towards achieving disruption of business operations, protected against unauthorized
key improvements in workforce damage to reputation, legal and access and or/disclosure. The risk of
capabilities and performance. regulatory fines and customer data leakage is high with the level of
claims. empowerment granted to in-house
Reputational Risk and outsourced employees handling
We are recognized as one of the New technologies and systems sales and after sales support
Philippines’ top companies providing being installed in the name transactions to enable the efficient
innovative services and delivering of advanced capabilities and discharge of their functions.
superior customer experience while processing efficiencies may
maintaining a socially responsible introduce new risks which could Employee awareness on data
business. We are exposed to outpace the organization’s ability to protection and loss prevention
reputational risks which may result from properly identify, assess and address is reinforced through regular
our actions or that of our competitors; such risks. Further, new business corporate dissemination channels.
indirectly due to the actions of an models that rely heavily on global Further, employees are made
employee; or consequently through digitization, use of cloud, big data, accountable for maintaining the
actions of outsourced partners, suppliers mobile and social media exposes the confidentiality of data handled,
or joint venture partners. organization to even more cyber- including disclosures and
attacks. information shared in various social
Damage to our reputation and erosion media platforms. Controls over
of brand equity could also be triggered We continue to strengthen and processes that require handling of
by the inability to swiftly and adequately enhance our existing security customer’s personal information
handle negative social media sentiments detection, vulnerability and patch are being tightened, coupled with
on our products and services triggered management, configuration enhancements in existing security
by various factors such unfavorable management, identity access capabilities to prevent compromise
customer experience, among others. management, events monitoring, of customer data.
data loss prevention and network/
Regular process effectiveness end-user perimeter capabilities Management appointed a Chief
and efficiency reviews on existing to ensure that cyber threats are Information Security Officer and
customer impacting processes are effectively managed. concurrent Data Protection Officer
being conducted to identify and to strengthen management of risks
address existing gaps, thus minimizing As part of our mission to promote relating to the confidentiality and
exposure to reputational risks arising the intelligent and judicious use integrity of customer information
from problem areas. Front line staff of the internet, we also educate while ensuring compliance with
are regularly trained to enable them the youth to better understand Data Privacy act of 2012 (Republic
to effectively handle customer cases. the impact of their online behavior Act 10173).
On the other hand, close monitoring of so they can be responsible digital
customers’ online sentiments is being citizens, thereby lessening cyber C. Business Disruptions
performed to quickly detect customer threats to Globe. This cyber wellness The quality and continued
issues being surfaced in social media and advocacy takes the form of the delivery of our services are highly
be able to manage them early on. award-winning Digital Thumbprint dependent on our network and IT
Program (DTP), held in partnership infrastructure which are vulnerable
Compliance Risks with Optus and Singapore to damages caused by extreme
A. Cyber Threats Telecommunications Ltd. (Singtel). weather disturbances, natural
The cyber security landscape calamities, fire, acts of terrorism,
is rapidly evolving and users B. Data Privacy intentional damage, malicious acts
are heavily relying on digitized In the course of regular business, and other similar events which could
information and sharing vast we acquire personal information of negatively impact the attainment of
amounts of data across complex our customers and retains the same revenue targets and our reputation.
and inherently vulnerable networks. either electronically or via hard We are continuously enhancing our

122 2017 Globe Integrated Report

 incident and crisis management and services. We continuously ORB’s primary objective is to provide
plans and capabilities and have improve our control effectiveness, an end-to-end support for all activities
incorporated disaster risk reduction efficiency, and coverage through under risk management, overseeing
and response objectives in our periodic controls review exercises, safety, environment, infrastructure
business continuity planning. controls discovery, and controls hazard management, insurance, as
Part of our Business Continuity automation initiatives. well as enterprise business continuity
Management Program initiatives management. ORB reports to the Head
include: E. Fraud of Logistics and Administrative Services
• Partnering with the Metropolitan We run the risk of falling victim to who directly reports to the CFO/CRO.
Manila Development Authority fraud perpetrated by unscrupulous The department is mandated to do the
(MMDA) and the Philippine persons or syndicates either to avail following:
Disaster Recovery Foundation of “free” services, to take advantage • Provide hazard identification & risk
(PDRF), to create a network of of device offers or defraud our assessment for Globe Telecom’s
support during disasters. customers. With the increased operations, activities, events, and
• Sponsored the development of complexity of technologies, network infrastructure;
hazard maps for 54 out of 81 elements and IT infrastructure, new • Facilitate implementation of risk
Philippine provinces, which will types of fraud that are more difficult control & mitigation measures
be used by Phivolcs to assist to detect or combat could also arise. for safety and environmental
the provinces in their disaster This risk also involves irregularities management, in collaboration with
management plans. in transactions or activities executed operational & business groups;
• Reinforced Ayala ASSIST, an app by employees for personal gain. • Provide and facilitate risk transfer
that enables our Ka-Globe and and business protection solutions
other Ayala employees to easily We remain committed in through insurance or contractor
seek assistance during disasters. preventing and detecting fraud by liability agreements;
• Re-certification in Business institutionalizing processes and • Establish an effective framework of
Continuity on an enterprise-wide building capabilities that enable business continuity management
scale the early detection, investigation, for the organization to effectively
resolution and enforcement of respond to threats such as natural
D. Revenue Leakage sanctions and legal options, close disasters, equipment failure, data
The telecommunications industry monitoring and timely reporting breaches and, in effect, protect its
is inherently vulnerable to revenue of various instances of fraudulent business interests.
leakage, with the dynamic changes activities. We have initiated various
in networks and IT systems and the programs to equip our customers
multitude of its service/bundle/ with the right information so that
plan offerings. Given the pace at they do not fall victims to fraudsters.
which new offers are launched Moreover, we closely coordinate
in the market and the speed of with law enforcement agencies
technological innovations being to help protect our customers as
adopted by Globe to support such well as the from activities meant to
offers, the need to identify and defraud them.
plug revenue leakages becomes an
even more important capability in OPERATIONAL RISKS
maximizing revenues and returns.
Realizing the need to protect the
We strengthen our capabilities business from losses arising from
through the identification and failures in internal processes, people
embedding of appropriate revenue and systems or external events,
assurance controls into new which, is an integral part of our RM
products, services, and new systems responsibility, an Operational Risk
as well as the implementation of Management and Business Protection
sound controls on existing products (ORB) department was established.

EMPOWER THE DIGITAL FILIPINO 123

 MANAGEMENT'S
DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS (₱ Mn) 2017 20161 YoY Change (%)
Net Operating Revenues 135,281 126,782 7%
Service Revenues 127,906 120,588 6%
Mobile2 98,483 92,255 7%
Home Broadband 3
15,645 14,680 7%
Corporate Data 4
10,288 9,873 4%
Fixed Line Voice5 3,490 3,780 -8%
Non-Service Revenues 7,375 6,194 19%

1
Beginning 2017, revenues from premium content services (where Globe is acting as principal
to the contract) will be reported gross of the licensors' fees. Revenues for similar services
reported in 2016 have also been restated for purposes of comparison. Licensors' fees will be
reflected as part of maintenance expense
2
Includes mobile voice, sms, data revenues and fully mobile broadband services.
3
Includes revenues from wired and fixed wireless,
4
Includes international and domestic data services, corporate internet access, and data center
solutions.
5
Includes revenues from landline and DUO services.

FINANCIAL PERFORMANCE: Mobile revenues grew 7% year-on-year, On a product perspective, mobile data
Globe Telecom, Inc. recorded strong at ₱98.5 billion in 2017 from the ₱92.3 remains to be the biggest contributor
consolidated service revenues for billion reported a year ago, driven by the to our total mobile revenues, increasing
2017, as we end the year with a topline continued mobile data revenue growth contribution to 44% against 38% a
of ₱127.9 billion, a 6% growth from as more of our customers embraced the year ago. Mobile data service revenues
last year and is the highest full year digital lifestyle. Globe Prepaid and TM, reached ₱43.1 billion in 2017, 23%
revenue level posted by the company. our mass-market brand, posted revenue higher than the ₱35.0 billion reported
The sustained revenue momentum growths of 11% and 8%, respectively, a year ago. On the other hand, mobile
was driven by the solid growth in our against the same period last year, while SMS revenues were flat and mobile voice
data-related products brought about by Globe Postpaid recorded a 1% increase declined by 5% year-on-year. But on a
the increasing popularity of streaming year-on-year. As of end-December 2017, normalized basis2, mobile data revenues
and on demand video content. This was our mobile subscriber base1 reached would have grown by 30% year-on-year
likewise enabled by the game-changing 60.7 million, down 3% from the 62.8 while mobile SMS and voice would have
initiatives we rolled-out during the year, million subscribers reported a year declined by 7% and 4% respectively, as
including the promotion of the digital ago. The decline in the cumulative both products continue to be challenged
lifestyle, innovative and relevant offers, mobile subscriber base was due to the due to the shift to internet-based
and content partnerships, underpinned change in reporting of the Company’s applications, consistent with global
by our robust 3G and 4G network. prepaid subscribers beginning 2017. trends.

1
Beginning the first quarter of 2017, the Company excluded in their reporting the prepaid subscribers who do not reload within 90 days of the
second expiry period, versus the previous cut-off of 120 days.
2
Normalized view reflects the true growth of the mobile data business. The Free Facebook offer, which Globe began to bundle in the lower
denomnated prepaid promos in 2015 and subsequently ended in June 2016 for TM and May 2017 for Globe Prepaid, mutes the performance of the
mobile data business due to the application of certain accounting standards on bundled promotions.

124 2017 Globe Integrated Report

Our home broadband business likewise Despite the strong growth in EBITDA, year with gross debt to equity ratio on a
sustained its growth momentum the increased investments in our data consolidated basis at 1.98:1 from 1.67:1
at ₱15.6 billion in 2017, increasing network pushed non-operating expenses in 2016, while our net debt to equity ratio
revenues by 7% year-on-year, with total and depreciation charges higher for the was at 1.81:1 as of end December 2017
subscriber base now reaching 1.3 million period, leading to Globe posting a 5% from 1.53:1 last year.
or 15% growth from a year ago. The decline in net income at ₱15.1 billion,
solid growth in revenues was driven by as against the ₱15.9 billion reported Our consolidated assets as of 31
our continued subscriber expansion in in 2016. The 2% increase in our non- December 2017 amounted to ₱278.0
fixed wireless solutions (+26%), given operating expenses was largely due billion compared to ₱250.0 billion
the favorable customer response to the to the increase in interest expenses in 2016. Consolidated cash, cash
latest Globe home broadband plans. and spectrum amortization related equivalents and short term investments
These latest plans provide customers to the SMC telco asset acquisition. (including investments in assets
value for money, with broadband This however, was partly offset by the available for sale and held to maturity
bundles and customizable plans that recognition of a one-time gain last investments) reached close to ₱11.2
suit the customers’ lifestyles. Our September, related to the increase in fair billion as of end December of 2017
continued aggressive investment in the value of the retained equity interest of compared to ₱8.6 billion as of end
data network supports our commitment Globe in Globe Fintech Innovations, Inc. December 2016.
to provide fast internet service to two (GFI or Mynt).
million homes by 2020 and provide Our net cash flows provided by operating
affordable world-class entertainment to Our core net income, which excludes the activities for the year just ended was
our customers. impact of non-recurring charges, and at ₱50.3 billion, up 34% year on year.
foreign exchange and mark-to-market Net cash used in investing activities
Complementing the growth of our charges, likewise declined by 15% year- amounting to ₱55.4 billion, was 4%
mobile and home broadband segments, on-year to only ₱13.5 billion from ₱16.0 lower than last year. Meanwhile,
our corporate data business likewise billion in 2016, with the full year impact consolidated net cash provided by
grew 4% year-on-year at ₱10.3 billion of the SMC telco asset acquisition. financing activities amounted to ₱7.8
in 2017 from the ₱9.9 billion posted billion in 2017 from last year’s net cash
in 2016, due to the strong demand for Our consolidated Return on Average provided of nearly ₱17.0 billion.
data-driven solutions by corporates in Equity (ROE) registered at 23% as of
the country. This increasing requirement end-December 2017, compared to 26% Our consolidated total debt, likewise,
has generated customer base expansion, in 2016 using net income and based increased by 24% from ₱105.7 billion at
circuit count increase and higher on average equity balances for the the end of 2016 to reach ₱131.5 billion
usage that contributed to the revenue year ended. Using annualized core net at the end of December 2017.
growth in the corporate data business. income excluding the effects of non-
Traditional fixed line voice revenues on recurring expenses, foreign exchange Our total cash capital expenditures
the other hand, declined by 8% at ₱3.5 loss, stood at about ₱42.5 billion
billion from a year ago. one-time gains on net income, return on (approximately US$844 million), 16%
average equity for the year just ended higher than last year's level of ₱36.7
We posted solid consolidated EBITDA, was at 21% compared to 26% of 2016. billion to support the growing subscriber
ending the year with ₱53.3 billion, up base and its demand for data. Of the
7% from a year ago. Total operating Our consolidated basic earnings per total capital expenditures spent this
expenses and subsidy grew in step with common share were ₱109.22 and year, about 82% was for the data service
revenues, increasing by 6% year-on-year ₱115.45, while consolidated diluted needs of our customers.
to ₱74.6 billion from ₱70.6 billion last earnings per common share were
year, as we continue to re-invest our ₱109.01 and ₱115.27 as of end- We also paid out ₱12 billion in common
gains to support the growing subscriber December 2017 and 2016, respectively. cash dividends in 2017, representing
base and the aggressive expansion of 75% of 2016 core net income. This
our data network. EBITDA margin was Our balance sheet and cash flows remain was in line with our dividend policy of
at 42%, higher than the previous year’s strong with ample liquidity and gearing distributing 75% to 90% of prior year’s
margin of 41%. below bank covenants. We ended the core net income.

EMPOWER THE DIGITAL FILIPINO 125

 On September 27, 2017, we disclosed Mynt’s Fuse Loans as part of the is now available in 34 SM Supermalls
the completion of the transaction on the solutions portfolio for enterprise and nationwide. Globe Telecom's GoWiFi
investment in Globe Fintech Innovations, SME clients. This is consistent with our Auto allows customers to connect
Inc. (GFI/Mynt) by Ant Financial Services push to expand and improve our service automatically to WiFi and enjoy
Group and Ayala Corporation. At closing, offerings in this space. uninterrupted browsing without ads and
Globe Capital Venture Holdings, Inc. without having to enter usernames and
holds 45% ownership stake in GFI/ Following the deal with Ant Financial, passwords, resulting in a more seamless
Mynt, Ant Financial at 45% and AC Mynt has consistently been ramping internet experience for our customers.
Ventures Holding Corp, a wholly-owned up the presence and rollout of its new
subsidiary of Ayala at 10%, following the cashless payment option, “Scan-to- Lastly, we also launched Globe At Home
assignment of rights and obligations Pay”, which allows customers to pay for Broadband with a ‘no commitment’ trial
under the definitive documents by goods and services by scanning a QR plan for customers to enjoy fast and
Ayala. Globe Telecom's equity stake code with their smartphones. The GCash reliable internet connection without the
remains less than 10% of our total Scan-to-Pay system is now available in standard 24-month lock-up period. The
shareholders’ equity. As a result of the numerous retail shops, departments new trial plans have refundable modem
transaction, Globe recognized a one- stores and supermarkets across the fees and simple and fast application
time gain of ₱1,889.91 million related metro. To complement this roll out and processing. For customers who prefer
to the adjustment of the fair value of further encourage adoption of mobile a prepaid experience, Globe At Home
Globe Telecom's retained equity interest money, GCash also launched promo and WiFi introduced the most affordable
in GFI/Mynt. With this transaction, we discount offerings exclusive to its users. 1 GB data promo ever, with the new
will be able to leverage our partner’s HomeSURF15 promo. As long as their
technological and operational Also during the year, GCash and underlying GoSurf promo is valid,
expertise, and allow us to expand this Facebook announced their partnership customers can register to the promo
business across verticals, including to bring the virtual wallet into Facebook as many times as they want and get an
offline payment and micro loans, while Messenger. With this partnership, GCash additional 1 GB of data for only ₱15,
also providing consumers, SMEs and users will be able to easily send and with even more affordable options for
corporates with secured, reliable and receive money, buy load, and pay bills heavier data users. We also launched the
convenient digital financial services. via the Messenger platform with just new Globe At Home App, which allows
a push of a button. This initiative will users a convenient way of tracking usage
Moreover, we launched several products boost mobile money’s availability and and monitoring their Globe At Home
and services in 2017 which were all convenience, as well as help our goal of Broadband account.
geared towards further expanding the expanding this service and its ecosystem.
Filipino digital lifestyle.
As part of our commitment to address
Leveraging on our adjacent businesses, the growing customer demand for
Globe myBusiness now offers constant connectivity GoWiFi Auto,
KonsultaMD, Adspark’s DigiAds, and our WiFi internet connectivity solution,

126 2017 Globe Integrated Report

GRI CONTENT INDEX
Disclosure
Profile Disclosure Title Section Page
Number
GRI GENERAL DISCLOSURES
GRI 102: GENERAL DISCLOSURES
Organizational Profile 102-1 Name of the organization About Us 4
Organizational Profile 102-2 Activities, brands, products, and services Conglomerate Map: The Globe Group 6-7
Organizational Profile 102-3 Location of headquarters About Us 4
Organizational Profile 102-4 Location of operations Conglomerate Map: The Globe Group 8
Organizational Profile 102-5 Ownership and legal form Conglomerate Map: The Globe Group 6-7
Organizational Profile 102-6 Markets served Conglomerate Map: The Globe Group 6-7
Organizational Profile 102-7 Scale of the organization Putting People First 69
Ownership Structure 98
Management’s Discussion and Analysis 124-126
Organizational Profile 102-8 Information on employees and other workers Putting People First 68-77
Organizational Profile 102-9 Supply chain 2017 At a Glance 10
Organizational Profile 102-10 Significant changes to the organization and its Corporate Governance 93-94
supply chain
Organizational Profile 102-11 Precautionary Principle or approach Risk Management Approach 119-123
Organizational Profile 102-12 External initiatives How We Create Value 8
Corporate Governance 80
Organizational Profile 102-13 Membership of associations Memberships 13
Strategy 102-14 Statement from senior decision-maker Message from the Chairman 14-17
Message from the President 18-23
Strategy 102-15 Key impacts, risks, and opportunities Risk Management 114-123
Ethics and Integrity 102-16 Values, principles, standards, and norms of Corporate Governance 80, 93-98
behavior
Ethics and Integrity 102-17 Mechanisms for advice and concerns about Corporate Governance 94-98
ethics
Governance 102-18 Governance structure Corporate Governance 84-85
Governance 102-19 Delegating authority Corporate Governance 86-87
Governance 102-20 Executive-level responsibility for economic, Corporate Governance 86-87
environmental, and social topics
Governance 102-21 Consulting stakeholders on economic, Corporate Governance 86-98
environmental, and social topics
Governance 102-22 Composition of the highest governance body Corporate Governance 82-85
and its committees
Governance 102-23 Chair of the highest governance body Corporate Governance 82-85
Governance 102-24 Nominating and selecting the highest Corporate Governance 82-85
governance body
Governance 102-25 Conflicts of interest Corporate Governance 80-95
Governance 102-26 Role of highest governance body in setting Corporate Governance 84-85
purpose, values, and strategy
Governance 102-27 Collective knowledge of highest governance Corporate Governance 86
body
Governance 102-28 Evaluating the highest governance body’s Corporate Governance 86
performance
Governance 102-29 Identifying and managing economic, Risk Management 116-123
environmental, and social impacts

EMPOWER THE DIGITAL FILIPINO 127

 Disclosure
Profile Disclosure Title Section Page
Number
GRI GENERAL DISCLOSURES
GRI 102: GENERAL DISCLOSURES
Governance 102-30 Effectiveness of risk management processes Risk Management 116-123
Governance 102-31 Review of economic, environmental, and Risk Management 116-123
social topics
Governance 102-32 Highest governance body’s role in Corporate Governance 86-87
sustainability reporting
Governance 102-33 Communicating critical concerns Risk Management 118-121
Governance 102-34 Nature and total number of critical concerns Risk Management 118-121
Governance 102-35 Remuneration policies Corporate Governance 87-89
Governance 102-36 Process for determining remuneration Corporate Governance 87-89
Stakeholder 102-40 List of stakeholder groups Stakeholder Engagement and 131
Engagement Materiality
Stakeholder 102-41 Collective bargaining agreements Putting People First: Collective 70
Engagement Bargaining Agreement
Stakeholder 102-42 Identifying and selecting stakeholders Stakeholder Engagement and 131
Engagement Materiality
Stakeholder 102-43 Approach to stakeholder engagement Stakeholder Engagement and 131
Engagement Materiality
Stakeholder 102-44 Key topics and concerns raised Stakeholder Engagement and 131
Engagement Materiality
Reporting Practice 102-45 Entities included in the consolidated financial Conglomerate Map 6-7
statements
Reporting Practice 102-46 Defining report content and topic Boundaries 2017 At a Glance: Reporting 11
Parameters
Reporting Practice 102-47 List of material topics Stakeholder Engagement and 131
Materiality
Reporting Practice 102-48 Restatements of information Building the Network of Choice: 31
Emissions
Reporting Practice 102-49 Changes in reporting How We Create Value 9
Reporting Practice 102-50 Reporting period 2017 At a Glance: Reporting 11
Parameters
Reporting Practice 102-51 Date of most recent report 2017 At a Glance: Reporting 11
Parameters
Reporting Practice 102-52 Reporting cycle Integrated Approach 9
Reporting Practice 102-53 Contact point for questions regarding the Inside Back Cover 149
report
Reporting Practice 102-54 Claims of reporting in accordance with the 2017 At a Glance: Reporting 11
GRI Standards Parameters
Reporting Practice 102-55 GRI content index GRI Content Index 127-130
Reporting Practice 102-56 External assurance DNV-GL External Assurance Statement 132-135

128 2017 Globe Integrated Report

 GRI 103: MANAGEMENT APPROACH

Management 103-1 Explanation of the material topic and its Building the Network of Choice 24-37,
Approach Boundary Empowering Consumers 38-47,
Obsess About the Customer 48-57,
Win the Home 58-65,
Putting People First 66-77
Management 103-2 The management approach and its Building the Network of Choice 24-37,
Approach components Empowering Consumers 38-47,
Obsess About the Customer 48-57,
Win the Home 58-65,
Putting People First 66-77
Management 103-3 Evaluation of the management approach Building the Network of Choice 24-37,
Approach Empowering Consumers 38-47,
Obsess About the Customer 48-57,
Win the Home 58-65,
Putting People First 66-77
Above disclosures address the following material topics: Customer Data Protection and Privacy; Responsible Business Operations; Overall
Customer Experience and Service and; Economic Impact and Financial Performance.

Disclosure Material Topic Being

Profile Disclosure Title Section Page
Number Addressed
GRI SPECIFIC DISCLOSURES
GRI 200: ECONOMIC
201: Economic Performance
Economic 201-1 Direct economic value generated and 2017 At a Glance 10 Economic Impact and
Performance distributed Financial Performance
203: Indirect Economic Impacts
Indirect 203-1 Infrastructure investments and Building the Network of Choice 24-37 Economic Impact and
Economic services supported Financial Performance
Impacts
204: Procurement Practices
Procurement 204-1 Proportion of spending on local 2017 At a Glance 10 Economic Impact and
Practices suppliers Financial Performance
GRI 300: ENVIRONMENTAL
302: Energy
Energy 302-1 Energy consumption within the Building the Network of Choice: 29-31 Environment
organization Energy Efficiency Responsibility
304: Biodiversity
Biodiversity 304-2 Significant impacts of activities, Building the Network of 29-32 Environment
products, and services on biodiversity Choice: Waste Reduction and Responsibility
Management
Biodiversity 304-3 Habitats protected or restored Building the Network of 29-32 Environment
Choice: Waste Reduction and Responsibility;
Management Community
Development
305: Emissions
Emissions 305-1 Direct (Scope 1) GHG emissions Building the Network of Choice: 31 Environment
Emissions Responsibility
Emissions 305-2 Energy indirect (Scope 2) GHG Building the Network of Choice: 31 Environment
emissions Emissions Responsibility
Emissions 305-3 Other indirect (Scope 3) GHG Building the Network of Choice: 31 Environment
emissions Emissions Responsibility
Emissions 305-5 Reduction of GHG emissions Building the Network of Choice: 31 Environment
Emissions Responsibility

EMPOWER THE DIGITAL FILIPINO 129

 306: Effluents and Waste
Effluents and 306-2 Waste by type and disposal method Building the Network of Choice 29-32 Environment
Waste Responsibility
308: Supplier Environmental Assessment
Supplier 308-1 New suppliers that were screened Governance 93-94 Responsible Business
Environmental using environmental criteria Operations
Assessment
GRI 400: SOCIAL
401: Employment
Employment 401-1 New employee hires and employee Putting People First: People 69 Employee Welfare
turnover Make the Difference
Employment 401-2 Benefits provided to full-time Putting People First: People 66-77 Employee Welfare;
employees that are not provided to Make the Difference Community
temporary or part-time employees Development
Employment 401-3 Parental leave Putting People First: People 69 Employee Welfare;
Make the Difference Human Rights
403: Occupational Health and Safety
Occupational 403-1 Workers representation in formal Putting People First: Health 70-71 Employee Welfare;
Health and joint management–worker health and and Safety Human Rights
Safety safety committees
Occupational 403-2 Types of injury and rates of injury, Putting People First: Health 70-71 Employee Welfare;
Health and occupational diseases, lost days, and and Safety Human Rights
Safety absenteeism, and number of work-
related fatalities
404: Training and Education
Training and 404-1 Average hours of training per year per Putting People First: Talent 72-73 Employee Welfare;
Education employee Development Learning and
Development
Training and 404-2 Programs for upgrading employee Putting People First: Talent 72-73 Employee Welfare;
Education skills and transition assistance Development Learning and
programs Development
Training and 404-3 Percentage of employees receiving Putting People First: Talent 69, Employee Welfare;
Education regular performance and career Development 72-73 Learning and
development reviews Development
416: Customer Health and Safety
Customer 416-1 Assessment of the health and safety Building the Network of Choice: Responsible Business
Health and impacts of product and service Business Continuity 32-37 Operations;
Safety categories Win the Home: 4 Ways to Win Product and Service
Filipino Homes 64-65 Labeling;
Putting People First: Health Health and Safety
and Safety 70-71

130 2017 Globe Integrated Report

STAKEHOLDER ENGAGEMENT
AND MATERIALITY
Materiality These groups are: • Engagement surveys, independent
Prepared in accordance to the Interna- • Customers development plan discussion,
tional Integrated Reporting Framework • Frontline vendor partner performance evaluation, planning,
(International <IR> Framework), advo- • Service vendor partner meeting, and/or kick-offs, strategy
cated by the International Integrated • Government alignment for our employees (Ka-
Reporting Council (IIRC) and in reference • Parent companies and affiliates Globe);
to the Global Reporting Initiative (GRI) • Employees • Program launches, forums,
Standards, the United Nations’ Sustain- • Media conferences and meetings, email
able Development Goals, our Integrated • Disaster respondents correspondences, and focus group
Report follows a process to help us discussions with media;
identify material issues for reporting. Stakeholder engagement takes many • Conference, meetings, and/or
Material issues and an update on the forms and it can be formal and informal. electronic dialogue, compliance with
stakeholder map were defined through Rather than having one-off consulta- laws and regulations, and partnerships
the consultancy services of ThePurpose- tions around specific topics, we prefer for government;
Business, Ltd. founded in Hong Kong. to take an integrated approach towards • Meetings and SMS text message alerts
The Materiality Analysis and Stakeholder stakeholder engagement. This means we for disaster respondents;
Engagement exercises were done in have ongoing dialogue about our role in • Board and committee meetings for
2015, and the outcome started to be society, our products and services, our parent companies and affiliates;
reported in 2016. business performance, and other issues. • Meetings and alignment, operations
review and audit for service vendor
Stakeholder Engagement The instruments we use to conduct this partners;
Our stakeholders based on their level of dialogue include: • Vendor engagement survey and town
influence on our environmental, social, • Customer hotlines and other self- halls for frontline vendor partners.
and governance performance, have been service channels and/or touchpoints,
grouped into eight categories after a satisfaction and engagement surveys,
full stakeholder engagement exercise in field visits, and product launches for
2015. customers;

MATERIALITY MATRIX
Digital Nation

Environmental Reponsible
Business Customer Data
Responsibility Protection and Privacy Care for Environment
Operation
High

Overall Customer Care for People

Experience and Service
VALUE TO GLOBE

Product
and Service Positive Social Impact
labelling Economic Impact and
Med

Health and Financial Performance

Safety

Community
Development Human Learning and
Rights Development

Employee
Welfare
Low

Low Med High

VALUE TO CUSTOMERS

EMPOWER THE DIGITAL FILIPINO 131

 Independent assurance statement

Scope and approach

Globe Telecom, Inc. commissioned DNV GL AS Philippines Branch (“DNV GL”) to undertake independent
assurance of the 2017 Integrated Report (the “Report”) for the year ended 31 December 2017. This Integrated
Report is prepared by Globe Telecom based on Guiding Principles of the <IR> framework and the Global
Reporting Initiative (GRI) Standard’s principles for defining report content, covering the disclosures related to
identified material topics for the period 1st January 2017 to 31st December 2017.

We performed our work using DNV GL’s assurance methodology VeriSustainTM 1 , which is based on our
professional experience, international assurance best practice including International Standard on Assurance
Engagements 3000 (ISAE 3000) Revised*.

We evaluated the reported qualitative and quantitative disclosures including performance data using the
reliability principle together with Globe Telecom, Inc. data protocols for how the data are measured, recorded
and reported. The disclosures in the scope of assurance included economic, environmental and social data.

We understand that the reported financial data and information are based on data from Globe Telecom, Inc.’s
Audited Financial Statements [posted February 28, 2018], which are subject to a separate independent audit
process. The review of financial data taken from the Audited Financial Statements is not within the scope of our
work. The following section was also excluded from the scope of assurance - Management Discussion and
Analysis, as this was a summary of the 20-IS figure submitted to regulatory authorities (Philippines Stock
Exchange – Securities and Exchange Commission).

We planned and performed our work to obtain the evidence we considered necessary to provide a basis for
our assurance opinion. We are providing a ‘limited level’ of assurance. The procedures performed in a limited
assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance
engagement; and consequently, the level of assurance obtained in a limited assurance engagement is
substantially lower than the assurance that would have been obtained had a reasonable assurance
engagement been performed.

The scope of assurance carried out by DNV GL’s multi-disciplinary team of sustainability and assurance specialists
covered operations of Globe Telecom, Inc., Globe Fintech Innovations, Inc., Kickstart Ventures, Inc., Innove
Communications, and G-Xchange, Inc. in the Philippines.

Responsibilities of the Directors of Globe Telecom, Inc. and of the assurance

providers
The Directors of Globe Telecom, Inc. have sole responsibility for the preparation of the Report. In performing
our assurance work, our responsibility is to the management of Globe Telecom, Inc.; however our statement
represents our independent opinion about our assurance outcome to the readers of this Report.
We have no other contract with Globe Telecom, Inc. and this is the third year that we have provided assurance.
DNV GL’s assurance engagements are based on the assumption that the data and information provided by the
client to us as part of our review have been provided in good faith and free from misstatements.

1
The VeriSustain protocol is available upon request from DNV GL Website (www.dnvgl.com)
* Assurance Engagements other than Audits or Reviews of Historical Financial Information.

Page 1 of 4

132 2017 Globe Integrated Report

Basis of our opinion
We undertook the following activities as part of the assurance process:
• Review of the current sustainability issues that could affect Globe Telecom, Inc. and are of interest to
stakeholders;
• Review of Globe Telecom, Inc. approach to stakeholder engagement that included the vendors,
government, parent companies and affiliates, and media and disaster respondents. Stakeholder
engagement with employees and customers was carried out directly by Globe Telecom, Inc.;
• Review of information provided to us by Globe Telecom, Inc. on its reporting and management processes;
• Interviews with selected senior managers responsible for management of sustainability issues and review
of selected evidence to support issues discussed. DNV GL was free to choose personnel from various
functions for the interview so as to ensure adequate coverage of the report. Functions interviewed included
Human Resources, Enterprise Risk Management, Corporate Communications, Finance and Facilities and
Maintenance.
• Site visits to Globe Telecom, Inc. HQ and Valero were carried out for review of process and systems;
• Review of supporting evidence for key claims and data in the report. Our verification processes were
prioritised according to materiality of topics consolidated at the corporate level by Globe Telecom, Inc.

Conclusion
On the basis of the work undertaken, nothing came to our attention to suggest that the Report does not properly
describe Globe Telecom, Inc.’s related sustainability performance and adherence to the Guiding Principles of the
<IR> framework and the Global Reporting Initiative (GRI) Standards principles for defining report content.
Without affecting our assurance opinion, we also provide the following observations regarding the adherence
to the reporting principles for defining the sustainability report content and for defining report quality as defined
in the GRI Sustainability Reporting Standards and Guiding Principles of the <IR> Framework.

Stakeholder Inclusiveness (GRI), Stakeholder relationships (<IR> Framework)

The process of stakeholder identification and engagement is established. Globe Telecom, Inc., and the Report
describes how concerns of different stakeholders are addressed in the ‘How We Create Value’ section. However,
in light of recent acquisitions and joint ventures, Globe Telecom, Inc. could review the need to include
engagement with additional groups of stakeholders including disclosure of key concerns and responses.

Sustainability Context (GRI)

The Report presents Globe Telecom, Inc.’s non-financial performance in the wide context of sustainability. Globe
Telecom, Inc.’s Purpose and Circle of Happiness philosophy focuses on happy and engaged employees to drive
highly customer centric values through their 5 key strategies. The Report also explains how Globe Telecom, Inc.’s
initiatives are aligned with the various United Nations Sustainable Development Goals.

Materiality (GRI, <IR> Framework)

Globe Telecom, Inc. has identified material topics based on a full stakeholder exercise conducted in 2015.
Regular engagements have been carried out with internal and external stakeholder since then. Globe Telecom,
Inc. could consider review of emerging material topics related to the telecommunications sector.

Reliability and Completeness (GRI, <IR> Framework)

Globe Telecom, Inc. has selected, compiled and reported information in a relatively consistent manner. The
presentation within the report enables stakeholder to analyze changes in the sustainability performance over
time. The data used for reporting of the sustainability performance presented in the Report is collected from
the subsidiaries by a centrally, dedicated function in Globe Telecom, Inc. headquarters and consolidated for
reporting. Any errors or misstatements identified during the assurance engagement were communicated for
correction prior to the Report being published. Data owners were able to demonstrate the origin and
interpretation of the data in a reliable manner. The data was identifiable and traceable.

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 Strategic focus and future orientation (<IR> Framework)
Trends and Opportunities are detailed in the various strategic areas – Build the Network of Choice, Empower
Filipino Consumers, Obsess About the Customer, Bring Wonderful Experiences to Home, and Put People First.
These sections also highlight the risks and challenges faced and what initiatives Globe Telecom, Inc. is taking to
address these areas.

Connectivity of information (<IR> Framework)

The Report provides information about the organization’s strategy and how Globe Telecom adapts to new risks
and opportunities. Key performance indicators provided in the Report also illustrate Globe Telecom’s
performance over time on material topics.

Conciseness (<IR> Framework)

Relevant infographics and graphs have been used to supplement information in the Report. The Report generally
addresses Globe Telecom, Inc.’s material topics relating to strategy, governance, performance and prospects in
a clear and logical manner without the use of jargon and is concise in nature.

Consistency and comparability (<IR> Framework)

Globe Telecom, Inc. has applied a consistent process to select, compile and report information across the
subsidiaries. The Report in general presents its performance over time so that the reader can analyse changes
and compare the performances.

Balance (GRI)
The document allows the reader to examine both the positive and the negative trend of Globe Telecom, Inc.
performance in 2017. The tone in the Report is generally balanced and with no obvious and deliberate intent to
unduly influence the stakeholders.

Accuracy (GRI)
The data measurement techniques and basis for calculations have been duly described to us and can be
replicated with same results. We have evaluated the accuracy of data and information by sampling of data sets.
Any errors or misstatements identified during the engagement were communicated for correction prior to the
Report being published. Certain restatement are provided to changes in historical disclosure. The data used for
reporting of the sustainability performance presented in the Report is centrally collected from the subsidiaries
and consolidated for reporting.

Timeliness (GRI)
This is the first Integrated Report by Globe Telecom, Inc. and includes both the sustainability performance as
well as the financial reporting. The Report clearly states which year it covers (1 Jan 2017 – 31 Dec 2017) and
identifies any restatements of previous disclosures and the reasons for restatement.

Clarity (GRI)
The information is presented in the Report is communicated in a simple manner. Consolidated non-financial
data tables help to make the information understandable. Globe Telecom, Inc. plans to publish the printed
version of the Report. Electronic copies of the Report in PDF format will be made available from its website
which is publicly accessible.

Limitations
Our assurance relies on the premise that the data and information provided by Globe Telecom, Inc. to us as part
of our review procedures have been provided in good faith and free from mistatements. Because of the selected
nature (sampling) and other inherent limitation of both procedures and systems of internal control, there
remains the unavoidable risk that errors or irregularities, possibly significant, may not have been detected. The
engagement excludes the sustainability management, performance and reporting practices Globe Telecom,
Inc.’s associated companies, suppliers, contractors and any third-parties mentioned in the Report, or any
discrepancies between the Report and Globe Telecom, Inc’s website. The company position statements, the

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134 2017 Globe Integrated Report

statements for the management approach, and case studies and examples are excluded from the scope of our
work. We did not interview external stakeholders as part of this assurance engagement. The reported
disclosures related to Economic performances are based on the financial disclosures and data, which were cross-
checked with internal documents and the audited consolidated financial statements for transcription errors.
Limited depth of evidence gathering including inquiry and analytical procedures and limited sampling at lower
levels in the organization were applied as per agreed scope of engagement. The data for Environmental and
Social performance are verified with samples randomly taken by and the aggregated data at the corporate level
are used for the verification. We expressly disclaim any liability or co-responsibility for any decision a person or
an entity may make based on this Assurance Statement.

Statement of Our Competence and Independence

DNV GL applies its own management standards and compliance policies for quality control, in accordance with
ISO/IEC 17021:2011 - Conformity Assessment Requirements for bodies providing audit and certification of
management systems, and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards
and applicable legal and regulatory requirements. We have complied with the DNV GL Code of Conduct 2 during
the assurance engagement and maintain independence where required by relevant ethical requirements. This
engagement work was carried out by an independent team of sustainability assurance professionals. DNV GL
was not involved in the preparation of any statements or data included in the Report except for this Assurance
Statement. DNV GL maintains complete impartiality toward stakeholders interviewed during the assurance
process.

For and on behalf of DNV GL AS Philippines Branch

4 April 2018

Grace Cheah Nandkumar Vadakepatth

Lead Verifier Assurance Reviewer
DNV GL – Business Assurance Head – Regional Sustainability Operations, Region India and
Middle East
DNV GL – Business Assurance India Pvt. Ltd.
-------------------------------------------------------------------------------------------------
DNV GL Business Assurance is part of DNV GL Group and a global provider of certification, verification,
assessment and training services, helping customers to build sustainable business performance.
www.dnvgl.com

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SUBSIDIARIES AFFILIATE CORPORATE INFORMATION

INNOVE COMMUNICATIONS, INC. YONDU HEAD OFFICE

The Globe Tower-Cebu 7th Floor, Panorama Tower Globe Telecom, Inc.
Samar Loop corner Panay Road 34th Street corner Lane A The Globe Tower
Cebu Business Park Bonifacio Global City, Taguig City 32nd St. corner 7th Avenue
6000 Cebu City Trunkline: (02) 847-2732 locals 133, 134 and Bonifacio Global City, Taguig
Trunkline: (032) 415-8822 / (032) 730-2000 135 Website: http:// www.yondu.com/ Trunkline: (02) 730-2000
Website: www.globe.com.ph
G-XCHANGE, INC. SHAREHOLDER SERVICES
32nd Floor, Trade and Financial Tower OFFICE OF CORPORATE SECRETARY
32nd Street corner 7th Avenue For inquiries regarding dividend payments, 28th Floor, The Globe Tower
Bonifacio Global City, Taguig change of address, account status, and lost / 32nd St. corner 7th Avenue
Website: www.globe.com.ph/gcash damaged stock certificates, please contact Bonifacio Global City, Taguig
our stock transfer agent: Email: [email protected]
KICKSTART VENTURES, INC.
55 Paseo de Roxas Avenue BANK OF THE PHILIPPINE ISLANDS (BPI) INVESTOR RELATIONS
Makati City Stock Transfer Office 10th Floor, The Globe Tower
Trunkline: (02) 625-8723 16th Floor, BPI Building 32nd St. corner 7th Avenue
Website: www.kickstart.ph Ayala Avenue corner Paseo de Roxas Bonifacio Global City, Taguig
Makati City Email: [email protected]
ASTICOM TECHNOLOGY, INC. Tel. (02) 816-9067 / (02) 816-9321
4th Floor, Globe Telecom Plaza 1 Fax. (02) 845-5515 CORPORATE COMMUNICATIONS
Pioneer Street corner Madison Street 26th Floor, The Globe Tower
Mandaluyong City 32nd St. corner 7th Avenue
Bonifacio Global City, Taguig
GLOBE DIRECTORY NUMBER Email: [email protected]
Talk2Globe 211 / (02) 730-1000
TM 808 / (02) 730-1500 STOCK TRADING INFORMATION
Platinum 188 / (02) 730-1888 Globe Telecom is listed on the Philippine
Sales (02) 730-1010 Stock Exchange. Ticker Symbol: GLO
Globe Business 1288 / (02) 730-1288
Globe Business - Corporate Managed 2199 / (02) 730-1999 The 2017 Audited Financial Statements may
AMAX 2629 / 1-800-8-7398168 be viewed at http://investor-relations.globe.
Retention and Loyalty (02) 730-1300
com.ph
Roaming (02) 730-1212 / *131*6327301212#
GCASH 2882 / (02) 739-2882

PROJECT LEAD For further information regarding this Integrated Report, please contact:
Ma. Yolanda Crisanto, APR
MA. YOLANDA C. CRISANTO, APR
PROJECT TEAM Senior Vice President, Corporate Communications / Chief Sustainability Officer
Monday Gonzalez Email: [email protected]
Apple Evangelista
PC Magnaye
Lui Almoite

PHOTOGRAPHY
Cyrus Panganiban

THEME CONCEPT
Medium3

WRITING
Writer’s Edge, Sheila Pesayco
and Katt Pascual
This report is printed on FSC-certified and Green Seal-certified CHROMAOFFSET paper,
DESIGN AND LAYOUT a premium-grade recycled paper that is manufactured with 100% renewable green electricity
Pixelproof Plus, Jeremiah Macasero and made of 100% post-consumer waste.
 THE GLOBE TOWER
32nd Street corner 7th Avenue, Bonifacio Global City,
Taguig City 1634, Metro Manila, Philippines
Tel (632) 730 2000
www.globe.com.ph

150 2017 Globe Integrated Report