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We have adopted and will continue to employ eco-friendlysolutions such as the more prevalent use of solar-powerand deep-cycle batteries, as well as the shift to outdoorfacility models that cancel the need for air-conditioning.Now then, I’d like to surface a few of our most noteworthycommercial initiatives of 2012. These served well to yieldhappy customers and boost our business results pastprevious records set. Our superior customer experienceproposition is clearly resonating among our 35.5 millionsubscribers of the present.MySuperPlan from Globe Postpaid led the charge,endearing close to 600,000 new acquisitions, an alltimehigh in gross subscriber additions for the segment.Personalization of the postpaid plan continued to bearunprecedented appeal to discerning customers who wantonly the best on their terms. Value-for-money combos andthe latest gadgets, including the Apple iPhone 5 whichcommanded our most successful Apple product launchyet, led to unprecedented growth in our postpaid business.Globe Postpaid contributed a hefty ₱22.8B in mobilerevenues in 2012, significantly accounting for 34% of theyear’s total mobile revenues.Globe Prepaid and TM both beat their quarterly records interms of gross acquisitions as the prepaid market eagerlysnapped up our brands’ most bang-for-buck offers. Amongothers, the borderless GoUnli across all networks and thefar-reaching GoTipidIDD strewn around the world wonover a quarterly high 3.1M Globe Prepaid gross additionsin the last period of the year. The TM Combo and perfectlymarket-matched mobile browsing offers like Social20,Mail20, and Fun20 widened our prepaid customer base themost by pulling in 3.4M TM SIMs in the fourth quarter.GCASH broke new ground in the mobile commerce spherewith the introduction of the GCASH American ExpressVirtual Pay product. Online shopping has never been asaccessible to Filipinos with the international credit facilityand free US shipping address the service provides. Whiletake-up is still in its early stages, we can expect strongadoption in the near future.Moreover, your Company gained substantial revenuelift from Globe Business. Capturing a huge chunk of thefixed line data business, they added ₱4.2B to our top line,notably demonstrating double-digit growth of 10% in thecompetitive space.Finally, our Broadband business continued to soar withoutlimits with Globe Tattoo clearly cementing its status asthe most preferred broadband service in the country.Testament to the accolade conferred by Frost & Sullivanas back-to-back Broadband Service Provider of the Yearfor 2011 and 2012, the brand amassed a loyal following ofclose to 1.7M subscribers in 2012, rapidly growing by 18%since 2011. Fast Tattoo On-The-Go products coupled withdependable Tattoo DSL lifted Globe Broadband revenuesto ₱8.7B, an impressive 16% increase over previous year’sperformance, and significantly scaled up to contribute 11%of total revenues.33.1millionup10%Mobile Subscriber base₱8.7billionBroadband Revenues1.7 millionup18%BroadbandSubscriber baseAll said, your Company’s products and services pushedinnovative edge and synced up relevantly to consumerlives. And while the numbers speak volumes, theconsumer has the loudest voice – in a survey conductedby CNET Asia, one of the region’s front-running onlinecontent networks, Globe emerged as the Top Telco in thePhilippines among all its readers. Frost & Sullivan similarlynamed your Company the Philippine Telecom ServiceProvider of the Year.These are laudable achievements driven by a passionateworkforce. We stand united before our customers andshareholders, proud of what we’ve accomplished.Employee engagement at Globe is at an all-time high,statistically rated even ‘stronger’ by worldwide employerstandards, as our Employee Satisfaction Index continued torise from 72.8% in 2011 to 75.3% in 2012.Such engagement levels profess the kind of customerfocus,self-giving culture vibrantly alive in your Companytoday. Globe employees never clock out when publicservice is due. Globe volunteerism thrives in trying times.A most recent example, when Typhoon Pablo ravagedMindanao in November, your Company’s employees bravedthe worst conditions the south had ever seen, to swiftlyrestore communications, and to mobilize relief operationsfor the affected communities we serve. The Department ofSocial Welfare and Development (DSWD) and no less thanPresident Benigno Aquino III himself have lauded Globevolunteers for their vigorous participation in the repackingand distribution of relief goods. Notwithstanding, this isnothing short of Globe malasakit given back to the societythat sustains us. Likewise, this clearly demonstrates ourcommitment of corporate social responsibility to the verycommunities and stakeholders that we serve.Globe Bridging Communities (BridgeCom) is the corporatesocial responsibility (CSR) arm of Globe Telecom. GlobeBridgeCom now works in strategic geographical focusareas — Batangas, Benguet, Bicol, Bohol, and Lanao —which have been chosen based on their ranking in relationto poverty incidence, vulnerability to climate change,existence of local BridgeCom partnerships, and growthpotential for our own business’ sales and marketing efforts.Globe BridgeCom takes the Communities of Practice(CoP) approach in all focus areas. Your Company’skey advocacies — good governance, environmentalconservation, entrepreneurship, access to social protectionservices, and volunteerism — are all practiced andsynergized among locals and partners to perpetuate lastingand farther-reaching change.As a concluding note to safeguard sustainability, yourCompany looked far ahead from 2012 in terms ofinfrastructure and spectrum resources. From a strategicperspective, we acknowledge the scarcity of radiofrequencies and the substantial cost of augmenting ourtransmission backbone for more capacity as patent risksGlobe 2012 annual reportmessageto fulfilling our mission to transform the lives of people,business, and communities through innovative solutions.In this vein, last December, we successfully concluded thetender offer for the debt of Bayan Telecommunications, Inc.(Bayan), gathering tenders for over 96.5% of all existing debtof bayan and its subsidiary RCPI. This marked a milestone inmoving forward to up scale and harness business synergiesthat can serve as competitive advantage for the future.In 2012, Globe set new records, moved closer to superiorcustomer experience, and marched steadfastly towards longtermcompetitiveness. From this point on, 2013 is the yearwhen our transformation will start to bear fruit. Now imaginewhat that will be like. I assure you, the best of your Companyis yet to come.ernest l. cuPresident and ceo10 11