PLDT
Annual Report 2020

Plain-text annual report

DOING OUR VERY BEST DURING THE WORST OF TIMES 2 0 2 0 A N N U A L R E P O R T PHP171.5B HIGHEST FULL-YEAR REVENUE IN HISTORY PHP82.7B INDIVIDUAL REVENUES CAPEX AT PHP71.9B TO INCREASE TO PHP88-92B IN 2021 HOME REVENUES BREAK-OUT IN 2020, PHP41.4B ON TRACK FOR 100K PER MONTH INSTALLS CONSOLIDATED EBITDA (EX-MRP) AT ALL-TIME HIGH UP 7% 51% MARGIN AT PHP28.1B TELCO CORE INCOME UP BY 4% PHP41.2B ENTERPRISE REVENUES We enabled lives through the COVID-19 crisis. We provided continuity through digital connectivity. We ignited passions and purpose, building better for the country. We are PLDT.  HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS PLDT is the largest integrated telecommunications and digital services provider in the Philippines. Through its principal business segments – fixed line, wireless, digital and others – PLDT offers the most diversified range of communications and digital services across the Philippines’ most extensive fiber optic, wireless and fixed line networks. PLDT is listed on the Philippine Stock Exchange (PSE:TEL) and its American Depositary Shares are listed on the New York Stock Exchange (NYSE:PHI). PLDT is one of the largest Philippine- listed companies in terms of market capitalization. VISION Lead and inspire Filipinos to create a better tomorrow. MISSION Empower Filipinos everywhere with customer focused digital innovations that unlock and share their infinite potential. VALUES Deliver awesome customer experience Take care of our people Collaborate to win Fast is better than perfect Malasakit Humility to listen and learn SUBSIDIARIES WIRELESS Smart Communications, Inc. and Subsidiaries Digitel Mobile Philippines, Inc. FIXED LINE Bonifacio Communication Corporation PLDT Clark Telecom, Inc. PLDT Global Corporation and Subsidiaries Digital Telecommunications Philippines, Inc. ePLDT, Inc. and Subsidiaries Pilipinas Global Network Limited and Subsidiaries OTHERS PLDT Communications and Energy Ventures, Inc. PLDT Digital Investments Pte. Ltd. and Subsidiaries PLDT Global Investments Holdings, Inc. PLDT Global Investments Corporation 2 2 PLDT 2020 ANNUAL REPORT CONTENTS 04 Comparative Highlights 05 Consolidated Financial Performance Highlights 06 Message from the Chairman, President and CEO 10 PLDT Group Awards and Recognitions 14 The PLDT Group Corporate Milestones 24 The PLDT Group Corporate Social Responsibility 28 People and Culture 32 The PLDT Group Corporate Governance Report 58 The PLDT Group Enterprise Risk Management 62 Board of Directors 65 Advisory Board Committee 66 Executive Officers 70 Officers 71 Financial Review 106 Audit Committee Report 107 Statement of Management’s Responsibility for Consolidated Financial Statements 108 Independent Auditor’s Report 114 Consolidated Statements of Financial Position 116 Consolidated Income Statements 117 Consolidated Statements of Comprehensive Income 118 Consolidated Statements of Changes in Equity 119 Consolidated Statements of Cash Flows 121 Notes to Consolidated Financial Statements 303 Contact Information COVER STORY From our front-liners to our leaders, we worked hard during the pandemic. Despite mobility challenges, we strived to help the nation build back better putting to work a record capex to strengthen our network infrastructure for our customers. Amid the extended lockdowns, we enjoined the youth to live their passions and purpose. As our homes became our shelter during the lockdowns, we kept digital connections resilient through fiber. As social distancing protocols kept us physically apart, we kept customers connected. We empowered MSMEs to accelerate their digital transformations and enabled online platforms to fulfill transactions safely in a pandemic. Through our CSR programs, we extended our commitment to help our medical frontliners battling this pandemic and strengthened our support to communities affected by calamities. Our customers, our North Star, validate our hard work and commitment during our nation’s greatest need. TOGETHER, WE ACHIEVED OUR GOALS. 3 33 COMPARATIVE HIGHLIGHTS FINANCIAL INFORMATION 2016 2017 2018 2019 2020 (in million pesos, except cash dividends declared per common share) Revenues Service revenues Non-service revenues Expenses Selling, general and administrative expenses Depreciation and amortization Cost of sales and services Interconnection costs Asset impairment Provisions Net income for the year Core income Telco core income EBITDA 164,446 156,394 158,933 150,172 162,914 152,369 8,052 8,761 10,545 169,187 161,355 7,832 181,004 173,634 7,370 139,743 149,422 149,141 129,786 144,822 67,196 34,455 18,293 8,757 1,074 9,968 68,990 51,915 13,633 6,626 3,913 4,345 73,916 47,240 14,427 5,493 2,345 5,720 68,230 39,656 13,429 3,638 291 4,542 75,255 47,480 12,295 2,146 266 7,380 20,162 27,857 13,466 27,668 18,973 25,855 22,786 25,111 24,580 27,129 21,015 23,576 24,047 27,080 28,087 61,161 66,174 64,027 79,815 86,158 Property and equipment, carrying value 203,188 186,907 195,964 232,134 260,868 Capital expenditures Short and Long-term debts Net Debt 42,825 185,032 40,299 172,611 58,490 72,871 176,276 192,556 143,572 138,632 123,457 167,873 Equity attributable to equity holders of PLDT 108,175 106,842 112,358 111,987 Cash dividends declared per common share 71,904 222,765 180,386 115,408 out of the earnings for the year 77 76 72 75 78 OPERATING INFORMATION Number of mobile subscribers Number of fixed line subscribers 62,763,209 58,293,908 60,499,017 73,118,155 72,933,839 2,438,473 2,663,210 2,710,972 2,765,209 3,042,815 Number of broadband subscribers 1,720,753 1,950,881 2,025,563 2,161,484 3,090,118 Fixed Wireless Fixed Line Total number of subscribers Number of stockholders Number of employees: Wireless Fixed Line 270,203 237,354 213,526 230,151 816,516 1,450,550 1,713,527 1,812,037 1,931,333 2,273,602 66,922,435 62,907,999 65,235,552 78,044,848 79,066,772 11,774 18,038 7,343 10,695 11,712 17,779 7,042 10,737 11,658 17,222 6,332 10,890 11,596 18,784 5,907 12,877 11,575 18,848 5,783 13,065 4 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS CONSOLIDATED FINANCIAL PERFORMANCE HIGHLIGHTS SERVICE REVENUES (in billion pesos) SUBSCRIBER BASE (in millions) 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 95.7 88.3 80.3 86.2 98.4 77.9 73.1 71.0 1.1 62.8 1.2 173.6 161.4 152.4 150.2 57.3 0.7 156.4 2020 2019 2018 2017 2016 72.9 73.1 3.1 3.1 79.1 2.8 2.1 78.0 60.5 2.7 2.0 58.3 2.7 1.9 62.8 2.4 1.7 65.2 62.9 66.9 0 20 40 60 80 100 120 140 160 170 0 10 20 30 40 50 60 70 80 WIRELESS FIXED LINE OTHERS MOBILE FIXED LINE BROADBAND EBITDA (in billion pesos) CASH FLOW FROM OPERATIONS (in billion pesos) 86.2 79.8 64.0 66.2 61.2 2020 2019 2018 2017 2016 0 10 20 30 40 50 60 70 80 0 10 20 30 40 50 60 70 80 TELCO CORE INCOME (in billion pesos) MARKET CAPITALIZATION (Year-end, in billion pesos) 28.1 27.1 24.0 23.6 21.0 2020 2019 2018 2017 2016 0 5 10 15 20 25 30 0 100 200 300 400 5 85.1 69.4 61.1 56.1 49.0 289.5 213.5 243.1 319.8 294.9 PLDT 2020 ANNUAL REPORTMESSAGE FROM THE CHAIRMAN, PRESIDENT, AND CEO We ignited passions and purpose. TO MY FELLOW SHAREHOLDERS, After having survived and thrived extraordinary circumstances due for a year under the most to the COVID-19 pandemic, I write this Report to you with a most profound sense of gratitude. The Good Lord, who has kept us safe and strong in our darkest days, has also given the Company – our people the opportunity to deliver, in our finest hour: give Filipinos a sense of continuity and normalcy at a time of uncertainty through digital connectivity. Malasakit embodied, enabling customers I salute and commend our people, particularly our frontliners – our field personnel in the networks, installs and repairs, our sales groups, for their relentless commitment to deliver our service, as demand for connectivity soared to unprecedented levels. On top of health risks, the stiffest of quarantine measures restricted movement of materials and people, testing our mettle, adding to the insurmountable challenges. But deliver our people did, soonest the restrictions came off, doubling down on the tasks on-hand with their PPEs on, resolving a huge chunk of the backlog before the year was out. True to form to the way we have embodied malasakit (concern), we helped where our customers needed us the most. Aside from offering data speed boosts, heftier data allocations and free access to vital COVID-19 information sources, the Company granted payment relief, adjustments and reprieves in the second half of 2020, helping customers manage financial burdens built up during the lockdowns. Exactly one year ago in my Report, I wrote saying the circumstances that our Company now operates have vastly departed from the normal. One year on, the Company now thrives as a source of hope, direction, and definition of new normal – or as they say, next normal: where people work and learn in a hybrid setup, and where digital connectivity enables reinventing jobs to replace those lost in the pandemic. Our Company enabled customers to work and study from home, pay bills and do business online, spurring entrepreneurs and creating new opportunities in the disruption. Our digital innovations unit PayMaya Philippines, Inc. has seen more Filipino business owners and casual sellers embrace online payments as a key component of doing business under the new normal. 6 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS“I salute and commend our people, particularly our frontliners – our field personnel in the networks, installs and repairs, our sales groups, for their relentless commitment to deliver our service, as demand for connectivity soared to unprecedented levels. On top of health risks, the stiffest of quarantine measures restricted movement of materials and people, testing our mettle, adding to the insurmountable challenges. But deliver our people did, soonest the restrictions came off, doubling down on the tasks on-hand with their PPEs on, resolving a huge chunk of the backlog before the year was out.” Executing network upgrades, on record capex These could not have happened without the unrelenting commitment of our people to carry upgrading our network, serving repairs and installs, and strengthening our IT infrastructure, as soon as quarantine measures relaxed in mid-2020. Despite mobility challenges posed by the COVID-19 lockdown, network upgrades made up bulk of the record Php 71.9 billion capital expenditures for all of 2020. This brings total capex over the last 10 years to a record Php 460.7 billion. 2020 merely reinforced what we had believed all along: that the investments we put to work over the past decade to strengthen our network infrastructure and improve customer experience have put us in a prime position to deliver, against the backdrop of unprecedented circumstances, a service that has become essential in a pandemic: digital connectivity. For this year, the Company has committed to invest a record capex of between Php 88 billion and Php 92 billion. As per the Company’s financial and operating results for 2020, PLDT’s Consolidated Service Revenues (net of interconnection costs) rose 9% to a record Php 171.5 billion, the highest full year revenue ever attained, led by data/broadband demand. Consolidated EBITDA hit an all-time high, growing 7% year-on-year to Php 88.8 billion, excluding MRP (Manpower Reduction Program) expenses, driven by higher service revenues. PLDT’s Telco Core Income (which excludes the impact of asset sales and Voyager Innovations) climbed 4% to Php 28.1 billion, while Reported Net Income (which includes exceptional costs) jumped 8% to Php 24.3 billion. Delivering data, on-the-go or at home The record investment into the network enabled the Company to serve robust demand for mobile data. Revenues from mobile data accounted for 75% of total revenues in 2020. The Consumer Wireless business sustained double-digit year-on-year revenue growth since 2018, driven by data. Data/broadband revenues also accounted for the bulk, or 70%, of total Enterprise service revenues. Despite the challenges posed by COVID-19 to businesses, the pickup in the acceleration in digital transformation of corporates and MSMEs kept Enterprise revenues steady with a 5% growth rate for 2020. Enterprise foresees hyperscalers lifting revenues this year, led by ePLDT’s data centers. On the other hand, increased demand for connectivity for work-from-home, online learning and streaming propelled Home to post a record 11% increase in revenues year-on-year. Data/broadband revenues now account for 80% of Home revenues. While initially hampered by quarantine restrictions, PLDT’s Home business has since almost doubled its installation capability as of January this year and is on track to further accelerate this pace. The extensive nationwide fiber rollout, along with increased installations, helped serve increasing demand. Average monthly gross installs reached 73,500 in the second half of 2020, nearly double that of the 43,100 installs recorded in the first half. Home aims to ramp up the installs to 100,000 per month. Execution as key All told, data/broadband now accounts for 73% of our total revenues. Enabling this unprecedented demand for data/broadband, is our record network build out. Carried out in a pandemic year, the numbers reflect the remarkable execution on ground. PLDT’s fiber infrastructure, the most extensive in the country, is now at more than 429,000 kilometers. This fiber infrastructure supports Smart’s 5G, 4G, 3G and 2G networks, which cover 96% of the population and are present in 95% of cities and municipalities. 7 PLDT 2020 ANNUAL REPORTAs of December, Smart has also increased the number of its base stations to over 59,000, increasing the number of base stations by 20% compared to end- 2019. Smart has also rolled out additional 5G sites as it accelerated its 5G commercial services nationwide. Committed to improving our level of customer experience, we carried on with our commercial 5G rollout, in strategic sites in Metro Manila, Boracay, Cavite, Cebu, Davao, Iloilo, Laguna, New Clark City in Pampanga, and Rizal. Smart recently fired up 5G in Malacañang Park, where a recent internal test using a Smart 5G-certified handset showed Smart 5G speeds breach 720 Mbps, testament to our commitment in providing a superior data network for our customers. These latest developments are part of Smart’s strategy in deploying 5G across the country. Smart, which launched its 5G service commercially in July, was the first to roll out Smart 5G nationwide. In December, Smart unveiled its new Signature 5G Plans, which are specially designed with generous data allocations to unlock the capabilities of Smart 5G’s superfast speeds, ultra-low latency, and higher efficiency. Smart also recently upgraded its Smart Signature SIM-Only Plans by exclusively bundling them with a Netflix Mobile Plan subscription, providing better experience to customers and more relevant content. Passion and purpose, customer as North Star Latest analyses from international user-based studies reinforce our commitment to delivering superior customer experience. According to Ookla®, citing improved Speed Score™, PLDT-Smart has been recognized the fastest fixed and mobile networks in the Philippines for 2020. A separate report by Opensignal reveals the Philippines posting the most improved 5G video experience, among the most improved in 5G download speed. Smart this year commits to fast track 5G deployment, making the country’s fastest mobile network even faster with 5G. Our relentless network upgrades and strengthening of our IT infrastructure lead us back to our collective compass throughout this disruption: to our North Star – our customer. Delivering better customer experience entails delivering relevant content and offers, helping customers pursue their passions and purpose. To this end, the Company recently teamed up with Grammy-nominated music act BTS to headline its banner ‘Live Smarter, Live with Purpose’ 2021 campaign. The partnership intends to showcase BTS’ support of Smart’s goal to inspire the Filipino youth to live their lives with passion and purpose. Smart has also expanded its current suite of GIGA offers. In addition to GIGA Video, GIGA Stories, GIGA Music, and GIGA Games, which come with data dedicated for consumer passions, plus open access data for other online activities, Smart has also launched GIGA K-Video, which allows Smart prepaid subscribers to enjoy ad-free streaming and unlimited downloads of K-dramas via the VIU Premium video streaming platform. Doing good, leveraging good business The Company leveraged on its strengths to help those in most need in the pandemic. We enabled learning communities to #LearnSmart, providing access to technology, connectivity, content and pedagogy. We democratized access to technology and connectivity to support distance learning through School-in-a-Bag, providing much-needed access to laptops, tablets and connectivity, all pre-loaded with learning apps and multimedia content. We also provided a flexible and inclusive strategy that is both disaster- and pandemic-resilient through the Central Visayan Institute Foundation- Dynamic Learning Program or CVIF-DLP, ensuring that the teaching and learning process carries on. Recognizing the effectiveness of CVIF-DLP, the DepEd endorsed it as a Flexible Learning Option, and the content as supplemental learning material. Since October, CVIF-DLP learning activity sheets can be downloaded for free from DepEd Commons. 8 8 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSThe Company has also helped farming communities with #FarmSmart ICT interventions to nurture their livelihood at a time of disruption. We have enjoined both our employees and the public to #BuyLocalBuySmart. The program has helped Filipino rice farmers, generating sales that have gone into a sustainability fund helping with the next cropping season. The Company also mounted unprecedented relief work in a time of a pandemic, delivering aid to Filipinos affected by a series of devastating weather disturbances, including Super Typhoon Goni, the world’s most powerful tropical cyclone in 2020. A record number of relief packs were distributed to heavily impacted communities across Luzon in the last quarter of 2020. Also launched during the period, together with PLDT- Smart Foundation, PayMaya and the local governments of typhoon-hit Marikina and Rizal in Metro Manila and in the provinces of Cagayan, Isabela and Camarines Sur, was a cash-for-work program, allowing families immediate livelihood opportunities to help them recover and rebuild. Smart has also put up free calls, free charging, and free Wi-Fi stations in various parts of Marikina City, Montalban, Albay, Camarines Norte, and Camarines Sur. PLDT-Smart as ONE: transform and perform - together One of the better instructive ironies of the COVID-19 pandemic has been its unifying attribute compelling our people to rise to the occasion and deliver at a time we were all most socially distanced. In the end, we ourselves benefited from the service we provide our customers. We can only continue to benefit from our newfound ways of working, if we transform and perform – together. Outlook The lessons of 2020 have only strengthened my resolve to believe that we have done right, and that we can only do better, by building on the gains we made in a year a pandemic disrupted and leading us to pivot quickly enough to thrive and serve. As this goes to press, the Company is in the midst of reviewing our COVID-19 vaccination program. My commitment remains steadfast: we will take care of our people and their families first, particularly our frontliners in the field and at home. I am affirmed by what I have always believed to be true: our people have been key to carrying out the unprecedented work done during the pandemic, and our people will be the key source of stability and growth as we emerge from the pandemic. While the country’s economic outlook remains uncertain for 2021, what remains certain is that keeping people digitally connected is what will keep us relevant in the new normal. We will be there where our customer needs us: whether they are on the go on their mobile phones, or at home, streaming on our fiber connection. Our service will be ubiquitous – seamlessly keeping our customers connected from wireless to fiber. With the entry of new players in the industry, 2021 also brings heightened competition in the telco landscape. We welcome the diversity that competition brings. We are challenged to perform better, by serving our customers best. Pivoting and performing through the COVID-19 pandemic have prepared us for what is to come. We will prevail. As the global pandemic carries on in 2021, I wish to thank our shareholders for the continued trust, our Board of Directors for the wise counsel and guidance, our Management and Staff, for the unwavering perseverance. I am reaffirmed by the unprecedented strides made in 2020; I ask only for your commitment to stay united and resolute, as we journey with our customers to the new normal. MANUEL V. PANGILINAN Chairman of the Board, President and Chief Executive Officer “ One of the better instructive ironies of the COVID-19 pandemic has been its unifying attribute compelling our people to rise to the occasion and deliver at a time we were all most socially distanced. In the end, we ourselves benefited from the service we provide our customers. We can only continue to benefit from our newfound ways of working, if we transform and perform – together.” 9 9 PLDT 2020 ANNUAL REPORTTHE PLDT GROUP AWARDS AND RECOGNITIONS 10 10 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSWe celebrated recognitions together. Amid the COVID-19 pandemic, the lifeline that kept communities functioning was communications. We continue to connect and empower Filipinos everywhere, as it is our core business and our key contribution to our country and people. These are testaments to our commitment in providing a superior data network, the most relevant content, and the appropriate solutions and services to our customers, thus making the experience better than anyone else can offer. 11 11 PLDT 2020 ANNUAL REPORTOOKLA Awards • Fastest Fixed Internet Award Philippines Q3-Q4 2020 – PLDT International Financing Review (IFR) Asia Awards 2020 • Country Award for Philippines’ Best Capital Market Deals • Fastest Fixed Internet Award Philippines - PLDT’s US$600M dual-tranche bond Q1-Q2 2020 - PLDT • Fastest Mobile Network Award Philippines Q3-Q4 2020 – Smart • Fastest Mobile Network Award Philippines Q1-Q2 2020 – Smart Opensignal Awards • 4G Coverage Experience award (PH) – Smart • Video Experience Award – Smart • Download Speed Experience Award - Smart • Upload Speed Experience Award - Smart • 4G Availability Award - Smart World Benchmarking Alliance - Digital Inclusion Benchmark (London, UK) • #1 Leading Company in Asia and Emerging Markets • #4 in the Top 100 Influential Digital Companies Worldwide Asia Communication Awards 2020 (Singapore) • Best Crisis Response - #StaySmart COVID-19 Response • Finalist: CEO of the Year - Alfredo S. Panlilio • Finalist: Best Network Transformation Initiative - Smart Communications • Finalist: Best Social Contribution - Digital Farmers Program World Communication Awards 2020 (London, UK) • Highly Cited: Best Mobile Operator in an Emerging Market - Smart Communications, Inc. International Sustainability Awards 2020 (NJ, US) • Sustainability Initiative of the Year - PLDT-Smart Gabay Kalikasan The Asset Triple A Sustainable Capital Markets Country Awards 2020 • Best Corporate Bond - Philippines - PLDT’s US$600M dual-tranche bond GSMA Report: Digital Dividends in Natural Resource Management (London, UK) • Featured Case Study - Connected Mangroves Rainforest Connection METRO ETHERNET FORUM • MEF 3.0 certification – PLDT Pacific Telecommunications Council (PTC) Awards 2020 • Outstanding Applications Company - PLDT Global Corporation • Outstanding Customer-Facing Innovation: PLDT Global Corporation Asus for Business Share 2020: Dealer Gathering Awards • Chromebook Top Growth Award – ePLDT Microsoft Philippines Partner Awards • Tech Intensity Award – ePLDT • Para sa Bayan Award – ePLDT Microsoft • Microsoft Top CSP Direct Providers in the Philippines - ePLDT • Number 1 Telco Cloud Solutions Provider (CSP) in the Philippines - ePLDT • Silver Competency for Security - ePLDT • Silver Competency for Enterprise Mobility Management - ePLDT • Silver Competency for Messaging - ePLDT Cisco Philippines Partner Appreciation Awards • Small Business Partner of 2020 - ePLDT • Software Partner of 2020 - ePLDT • Tier 2 Partner of the Year – ePLDT Checkpoint Partner Xchange Awards • Top Partner of the Year for 2020 - ePLDT • Partner of the Year for New Customer Acquisition - ePLDT Fortinet Year End Thanksgiving for Partners • Retail Partner of the Year Award - ePLDT SAP • SAP Top Partner Award for 2020 - AGS (ePLDT subsidiary) PLDT – COMPANY OF THE YEAR SMART - 1ST RUNNER UP COMPANY OF THE YEAR 18TH PHILIPPINE QUILL AWARDS 12 12 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS 55th Anvil Awards • Platinum Anvil Awardees - Gabay Guro Grand Gathering • Gold Anvil Awardees 1. Gabay Guro Grand Gathering 2. PLDT Enterprise’s Hot Joe Online 3. #VoxNow Talks: An Employee Forum on Cyberbullying for PLDT 4. Digital Farmers Program 5. LearnSmart Apps (Program): Enhancing Mother Tongue-Based Learning 6. Safe PH for Smart Millenniors 7. FindHer online series 8. TNT Giga Video 50 Summer Campaign • Silver Anvil Awardees 1. PLDT Global’s 12/12 Free Bee Day 2. PLDT Global’s Free Bee “’Nay, ’Yan Ay Pangako” 3. PLDT At Your Service 4. The Round Up 5. PLDT-Smart Omega 6. PLDT Enterprise’s Philippine Digital Convention 2019 (Digital Grounds Tour) 7. Smart Free Roam Chat 8. Smart Giga with Video Every Day 9. LearnSmart Apps (Tools): Improving Literacy and Preserving Local Culture 10. ONEBoarding: A Digital Onboarding Experience for New Hires 11. PLDT-Smart Netflix Stranger Things Partnership 12. Sun Prepaid Para Nimo Cebu 13. The Good Fiber: PLDT 2018 Sustainability Report 14. TNT Free YouTube For All 15. TNT SurfSaya Campaign 16. TNT Tropang Ready 18th Philippine Quill Awards I/ABC Philippines Company of the Year - PLDT Inc. Company of the Year 1st runner-up - Smart Communications, Inc. Top Division Award for Communication Management - CVIF-Dynamic Learning Program “Learning by Doing - Creating independent learners for nation-building” Top Division Award for Communication Training and Education Nominee - Smart Creator Programs 10. Love comes in all shapes, sizes, and paws with PLDT’s #ComeHomeToLove for Valentine’s Day 11. Mother Tongue-Based Apps for enhancing literacy and preserving local culture 12. PLDT Enterprise Day Zero 13. PLDT Enterprise Focus Campaign 14. PLDT Enterprise Pasasalamat Night Manila 2019 15. PLDT Home Fibr-powered Esports in the Philippines 16. PLDT Home Mother’s Day - Ako Naman, Ma 17. PLDT Home powers the 2019 Kadayawan Festival 18. PLDT-Smart Gabay Kalikasan AVPs: Paperless Billing and Clean The Cloud 19. School-in-a-Bag: Leveraging Partnerships for Education 20. Simple, Smart Ako 21. Smart at the 30th SEA Games: Connectivity and Nation-building by Supporting Athletes 22. Smart Communities and the UNSDGs: Technology for GOOD, Technology for Development 23. Sunrise Run by Sun and PLDT Enterprise 24. The Round Up: A Digital News Show of PLDT and Smart 25. TNT Big Bente Campaign 26. TNT Free YouTube For All campaign Merit Awards: 1. #NoLearnerLeftBehind Education for all in the New Normal web forum 2. CyberSmart Caravans: Promoting Cyber Security and Safety among Teachers and Students 3. Digital Catechism: Heritage Tour Series 4. Free Bee Paskong Pinoy 5. Gabay Guro program: Building the Nation, One Teacher at a Time 6. Gabay Kalikasan omnibus campaign 7. In Good Company: PLDT Group 2019 Sustainability Report 8. LearnSmart Apps Program: Enhancing Mother Tongue- Based Learning Through Collaboration and Innovation 9. MUSIKALAYAAN Para sa Global Pinoys 10. PLDT Enterprise Beyond Fiber 11. PLDT Enterprise Everyday Stories of Real IMPACT 12. PLDT Enterprise Ignite 13. PLDT Enterprise Philippine Digital Convention 2019 14. PLDT Enterprise Tech Talk ON-AIR 15. PLDT Home #StayHomeSeries 16. PLDT Home StayHome Campaign: Turning quarantine time to quality time powered by the strongest connections at home Top Division Award for Communication Skills Nominee - PLDT 17. PLDT Home Wifi Prepaid: Leveling Up Students’ Home “Dear Pa” Father’s Day campaign Education Through Connectivity Excellence Awards: 1. An Annual Tribute to Filipino Teachers: Gabay Guro Grand Gathering 18. PLDT Home’s Mother Hood Series: Celebrating All Kinds of Moms 19. PLDT-Smart Cyber Security Awareness Campaign for Employees 2. Are you a Data Privacy Hero or Sidekick? PLDT Data Privacy 20. Power Over Plastic Company-wide Ban on Single-Use e-Learning Program Plastics 3. CVIF-Dynamic Learning Program (Change Communication category) 4. CVIF-Dynamic Learning Program (CSR category) 5. Digital Catechism: Road to PH’s 500 Years of Christianity 6. Digital Farmers Program: Empowering Farmers through Mobile and Internet Literacy 7. Free Stories for All with Smart Giga Stories 8. Learning to Naks! Empowering Filipino students to be the ‘Bida’ with PLDT Home Prepaid Wifi 9. LearnSmart eLearning Sessions - Ensuring Continued Learning during a Pandemic 21. Safe PH for Smart Millenniors 22. Smart Giga Mania 23. Smart powers National e-Sports Team: A new generation of Filipino athletes 24. SWEEP: Digital Shift for Future Ready Schools 25. TNT Giga Stories campaign 26. TNT Giga Video 50 Summer Campaign 27. TNT Tropang Ready Batch 2: Disaster Preparedness for the Youth 28. Vox Now 13 13 PLDT 2020 ANNUAL REPORT THE PLDT GROUP CORPORATE MILESTONES 1414 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSWe kept everyone connected. “Napaka-importante na maging konektado sa pamilya, lalo na sa nanay kong OFW sa Japan na napahiwalay sa amin. Tanging komunikasyon lamang ang nagbubuklod sa amin para mapalakas ang isa’t-isa.” “ It is crucial to stay connected to my family, especially to my mother who is an OFW in Japan and is living away from us. Communication is the only thing that allows us to bond and encourage each other to remain strong.” - MayMay Entranta Celebrity and Free Bee ambassador 15 15 PLDT 2020 ANNUAL REPORTWe empower the digital lifestyle. When the Covid-19 pandemic reached the Philippines in 2020, people were suddenly restricted to their homes, cloaked in uncertainty and isolation. It fell to telcos to keep people connected to their friends and families, whether it be by data, voice or text. It was a distressing situation which PLDT and Smart tried their best to assuage by connecting people and institutions by providing support in the form of hotlines, devices, mobile load, among others. The challenges remain but PLDT and Smart are there alongside - to serve, connect, and assist people during these trying times. REALIZING LIFE’S PASSIONS AND PURPOSE Network Superiority In the face of difficulties posed by the COVID-19 lockdowns, Smart further expanded the reach and capacity of its LTE network, enabling the network to serve the increased data demands of the ‘new normal.’ To date, 99% of its sites nationwide are already on LTE. To address the increased level of data usage, which was accelerated by the lockdown, Smart boosted the capacity of its LTE network throughout the country by reallocating its assigned 1800 MHz frequencies from 2G to 4G/LTE. As a result, more than 3,700 base stations of Smart have also been providing additional capacity for its LTE network. Smart also rolled out its LTE network to far-flung areas, including Pag-Asa Island in the municipality of Kalayaan in the West Philippine Sea -- the country’s most remote cell site. It has also upgraded to LTE all its existing cell sites in the Visayas, after firing up its cell site in Barangay Tucdao in Kawayan, a fifth-class municipality in the island province of Biliran. Leader in 5G Smart’s mobile networks, now cover 96% of the population and is available in 95% of the country’s cities and municipalities. In July, it launched its 5G service commercially and is also the first to roll out Smart 5G nationwide. These include key areas in Visayas and Mindanao such as Boracay, Cebu, Iloilo, and Davao; urban areas like the Makati Central Business District (CBD), Bonifacio Global City CBD, Araneta City, Mall of Asia Bay Area, North Avenue in Quezon City, Taft Avenue in Manila, Ortigas CBD, New Clark City in Pampanga, EDSA; strategic locations in the provinces of Cavite, Laguna, Rizal, and the cities of Manila, Quezon City, Makati, Taguig, Pasig, Mandaluyong, Marikina, Paranaque, Valenzuela, Caloocan, Navotas, San Juan, and Pasay. It fired up 5G at the Gariath Concepts esports venue in Quezon City, the first 5G-powered esports hub in the country, and at the TV5 Media Center in Mandaluyong City, the first 5G Media City. It also brought the country’s first 5G-powered sports broadcast to the Philippine Basketball Association (PBA) in Clark Freeport in Pampanga. Passions and Purpose: Smart powers GIGALife In 2020, Smart launched its GigaLife App for prepaid and postpaid subscribers to enable them to manage their subscriptions more seamlessly. To further support its customers’ passions, Smart expanded its current suite of GIGA offers by launching GIGA Pro, Smart’s biggest prepaid data pack for heavy data users; GIGA Work and GIGA Study, which provide data allocations for work collaboration tools and learning apps, specifically tailored for employees’ online productivity needs and students’ online education needs; and GIGA K-Video, which allows Smart prepaid subscribers to enjoy ad-free streaming and unlimited downloads of K-dramas via the VIU Premium video streaming platform. Smart also unveiled its new GigaPoints rewards program, which offers a simpler and easier way to earn, accumulate, and redeem exclusive treats through the GigaLife App. Prepaid subscribers of Smart and TNT can start earning GigaPoints with a minimum Php99 spend on top-ups or by registering to their favorite GIGA promos. 16 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSGigaFest virtual events Smart has also maximized its LTE network to deliver a variety of online events to its subscribers across the country this year. With GigaFest, Smart has showcased world-class entertainment, e-sports tournaments, and other digital innovations. This includes live events featuring local and international artists such as Dua Lipa’s Studio 2054 Digital Concert and Ellie Goulding’s The Brightest Blue Experience Online, KCON:TACT 2020 virtual festival, 808 Land, iHeartRadio Music Festival, iHeartRadio Jingle Ball, the much- anticipated 2020 Mnet ASIAN MUSIC AWARDS (2020 MAMA), Asia’s biggest awards ceremony, and the New Year Countdown at the Grand Hyatt with the Green Ball Drop. Smart Powers eSports The pandemic did not hinder Smart from becoming more active in supporting the country’s esports industry as it launched several online tournaments like the Mobile Legends Professional League and the Mobile Legends Pro League – Invitational, among others. It launched the Free Games for All promo, which allowed Smart and TNT prepaid customers to access their favorite mobile games like Mobile Legends, Clash of Clans, Arena of Valor, Clash Royale, and the newly added mobile game to its roster – Call of Duty Mobile. Smart also held one of the biggest events for the domestic esports scene, Siklab Saya. PLDT and Smart Ignite Filipinos’ passion for basketball in pandemic Smart reignited the fans’ passion for hoops with the launch of the NBA. Smart portal. Avid viewers of the international league were able to watch NBA TV live from the Orlando bubble in the safety of their homes. NBA.Smart is part of Smart’s exclusive multi-year partnership with the NBA aimed at making NBA content more accessible to millions of Filipinos. In 2020, Smart announced its global partnership with FIBA, where Smart 5G technology will play a vital role in the events leading up to and during the much-awaited FIBA Basketball World Cup 2023, which will be co-hosted by the Philippines, Japan, and Indonesia. Enabling Entrepreneurship, Learning and Governance COVID-19 command centers of national and local government agencies received communication support from PLDT and Smart in the form of hotlines, pocket mobile WiFi units, smartphones, SIMs, e-load and Infocast—PLDT-Smart’s SMS-broadcast platform. Free fiber-powered, carrier- grade WiFi was installed in key COVID-19 facilities nationwide, among them the Department of Information and Communications, Department of Science and Technology, Department of Transportation, the Philippine General Hospital, and the Research Institute for Tropical Medicine. The telcos’ partnerships with government units enabled PLDT, Smart, and TNT subscribers to reach for free the 1555 COVID-19 Hotline, the 911 Emergency Hotline and 8888 Citizens’ Complaint Center. Customers also enjoyed free access to websites of government organizations such as the Department of Health (DOH), the DOH NCOV Tracker, Philippine Information Agency, National Disaster Risk Reduction and Management Council, Staysafe.ph, the Department of Social Welfare and Development aid distribution website, the Department of Education (DepEd) Commons, as well as major news agencies. No Learner Left Behind In 2020, a total of 86 School-in-a- Bag portable digital classroom kits were deployed by Smart to DepEd schools nationwide, 15 of which went to DepEd in support of the agency’s Basic Education Learning Continuity Plan. The kits are designed to support distance learning, even in remote areas without electricity and internet connectivity. Many of the kits were donated in partnership with organizations such as the Protect Wildlife project of the United States Agency for International Development (USAID). Smart also enabled free access to the resource materials under the Central Visayan Institute Foundation-Dynamic Learning Program (CVIF-DLP), made available via DepEd Commons at www.commons.deped.gov.ph. The ready-to-use Junior and Senior High School Learning Activity Sheets were developed by the CVIF. Supported by Smart and PLDT-Smart Foundation (PSF) for over a decade, CVIF-DLP is one of only three DepEd-endorsed supplemental learning materials for this school year. #SafeandSmart To maintain the resiliency of its network, quickly repair damage and restore services in times of typhoons, PLDT and Smart prepositioned emergency communications kits, equipment and personnel along the paths of typhoons “Quinta,” “Rolly,” “Ulysses,” and “Vicky”. PLDT and Smart chartered flights and worked with the Philippine Air Force, enabling them to be the first to put through calls and text messages in Catanduanes, thanks to engineers and crew who worked on damaged infrastructure 24/7 and activated Libreng Tawag, charging and WiFi stations. PLDT and Smart also distributed over 12,000 food and relief packs to families across Luzon. All these efforts are part of PLDT-Smart’s #SafeandSmart advocacy of preparedness, and immediate response, and recovery through network resilience, continuous communication services, mobile solutions and activities, and relief and recovery assistance. Enabling livelihood in the new normal Over one million microentrepreneurs, known as PLDT-Smart Ka-partners, who retail prepaid airtime load, were equipped to address the changing communication needs of mobile customers, through digital trainings and tools. Retooling tourism, one of the sectors most impacted by COVID restrictions, involved launching digital mobile applications, in coordination with the Department of Tourism. The apps can be used for self-paced, contactless tours in 20 locations all over the country. The move was fortuitously timed in Cebu, as the country prepares to celebrate 500 years of Christianity. PLDT and Smart partnered with the Archdiocese of Cebu to kick off the event with the launch of the Panaw sa Pagtuo (Journey of Faith) Mobile Exhibit App and a digital series featuring 21 historical videos leading up to 2021. More than 3,700 Smart base stations provided with LTE 86 Digital classroom kits deployed 1M Microentrepreneurs equipped 12,000 Family packs distributed 17 PLDT 2020 ANNUAL REPORT REDISCOVERING HOME WITH PLDT At the forefront of providing assistance and assurance in the time of pandemic, PLDT kept customers connected while they stayed at home. Prioritizing the safety of customers, PLDT actively listened and responded to their needs, bringing solutions that alleviated their worries and nurtured meaningful connections while at home. In 2020, PLDT Home solidified its role as the leading telco provider with the strongest and most meaningful connectivity and digital services that enable Filipino families to live the lives they dream of. Keeping Families Safe and Connected at Home To support the digital needs of families while quarantined at home, PLDT Home implemented a free speed boost for Fibr subscribers nationwide to enhance their minimum connection speed up to 25 Mbps. PLDT Fixed Wired Home subscribers also enjoyed free NDD calls to PLDT landlines and COVID-19 helpdesks nationwide. PLDT Home also granted access to zero- rated government websites so families can easily consult online for COVID-19 related concerns, without additional costs. Easing the financial burden of subscribers especially during the pandemic, PLDT Home implemented a six-month installment program with zero interest and no penalties for its postpaid customers with bill balances starting April 30, 2020. All disconnections were halted to ensure continuous connectivity of subscribers at home. Turning Quarantine Time to Quality Time PLDT Home helped alleviate the common stressors of the pandemic by powering subscribers’ digital entertainment lifestyles at home. Existing subscribers of PLDT Home Fibr Plan 1899 and up enjoyed a free one-month unlimited subscription to iflixVIP, giving them access to all content on iflix. It also initiated weekly digital events for three months via Facebook Live Sessions called #StayHomeSeries in partnership with the industry’s key experts. • The first leg of the digital series highlighted different themes including: Mindful Mondays with psychologist and family life counselor Dr. Michele Alignay; Weekday Wellness with fitness organization Pretty Huge Obstacles; Friday FamDay with the Philippine Educational Theatre Association (PETA); and Unwind Weekend with the Manila String Machine. • The second leg of the digital series, #StayHealthy, featured medical professionals from Bayanihan MD for online consultations and educational episodes tackling common health concerns of families. • The last leg of the series focused on parenting forums in partnership with the biggest local online resource of moms, Mommy Mundo. PLDT Home and Mommy Mundo hosted a Father’s Day series that tackled topics on shared parenting at home. No Learner Left Behind with PLDT Home PLDT Home also had a crucial role in serving the distance learning needs of Filipino students during the pandemic. To assure that young learners stayed connected for their online home- schooling, it introduced new data packages tailor-fitted to the students’ e-learning needs: FamLoad Study 599 and FamLoad Study 999. Each prepaid package is packed with open access daily data allocation and free access to top learning sites and apps including Microsoft 365 tools, Gabay Guro App, Canvas, and NEO. For families that need bigger prepaid data allocation daily, PLDT Home also introduced an all-new family-sized Wifi Prepaid Famload Video and Video Plus packed with bigger data allowance that can be used for popular video apps and open access data for all sites and apps. Each FamLoad Video pack gives users open access data and daily access to video streaming on Cignal Play, iWant, NBA League Pass and YouTube. This way, families can maximize use of their online video conferences without worrying about their data limits. To further strengthen its support for students’ education, PLDT Home partnered with PLDT-Smart Foundation to aid schools and communities in providing “Education for ALL” by making digital technology available and integrated in the learning activities of the students. PLDT Home bannered the “No Learner Left Behind” movement, which has also been enacted as a “No Filipino Child Left Behind Act of 2010,” through a fund-raising concert themed “At Home with PLDT: No Learner Left Behind” that garnered over Php 1 Million for the We kept digital connections resilient through fiber. 18 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSbenefit of the students and teachers nationwide. The event was top-billed by some of the country’s most popular music icons. The Strongest Connections are at Home PLDT Home has advanced the standard of Filipinos for home broadband with its all-new Fibr Plus Plans that offer new postpaid variants with higher speeds and stronger connectivity through an intelligent wifi mesh system bundled with entertainment content from Cignal TV. The Fibr Plus Plans come with at least 50 Mbps for only Plan 2499 per month, 100 Mbps for Plan 3099, 150 Mbps for Plan 4099, and 300 Mbps for Plan 6099. All these plans come with three (3) Mesh Wifi units for whole home wifi coverage and over 60 Cignal TV channels for the family’s home entertainment. In its efforts to further pivot towards more online-driven services, PLDT Home also launched a groundbreaking partnership with Grab, Southeast Asia’s leading everyday superapp, to quickly deliver internet solutions straight to Filipino homes. Through this partnership, PLDT Home and Grab were able to provide various online channels for customers to conveniently order PLDT Home prepaid services and have these delivered straight to their homes within 24 hours. This initiative immediately answered the need for quick and easy delivery of a broadband solution for the home. As a leading digital services provider, PLDT Home also introduced an advanced prepaid internet solution for customers. With the PLDT Home Wifi Prepaid Advance unit, customers were offered the fastest wireless connectivity at home powered by LTE-Advanced (LTE-A) technology for just Php 1995. This allowed customers to enjoy faster LTE speeds and better online experience at home. PLDT Home also partnered with one of the world’s top technology providers ASUS to provide next level digital experience at home with the most powerful WiFi 6 mesh system in the country. With the partnership, PLDT Home offered the top-of-line ASUS WiFi 6 routers that can deliver up to 1000 Mbps speeds for lag-free browsing, seamless streaming, and equal upload and download speeds and on any device at home. Total Digital Solutions in the New Normal PLDT Home launched its newest program, PLDT Home Biz, that offers micro entrepreneurs operating at home with a fast and reliable internet connection and e-commerce tools. In partnership with the country’s top e-commerce solutions such as PayMaya, UnionBank GlobalLinker, Sulit.ph and GrabExpress, PLDT Home provides Home Biz subscribers with a total e-commerce ecosystem for worry-free and safe payment, digital platforms, and delivery solutions. PLDT Home, has also partnered with leading e-commerce platform Shopee to make bills payment more convenient for postpaid customers through its integrated mobile wallet, ShopeePay which enabled postpaid customers to skip going out or lining up at service and payment centers just to settle their monthly service bills. TRANSFORMING THE FUTURE WITH INNOVATIVE SOLUTIONS AND SERVICES At the height of the global pandemic, technology has especially come to the fore and has proven to be essential for businesses and individuals to remain afloat. In response, PLDT Enterprise led the transformation of the future of work through the introduction of new innovative solutions and services, and through organizing several virtual events to support and equip businesses as they embrace the shift to digital. Enabling businesses to work whenever, wherever and sustain operations In 2020, the PLDT Enterprise group developed and implemented the #ONEwithYOU Campaign which anchored on the value of “malasakit” for its employees and customers. It immediately found ways to pivot its way of operating by engaging with customers and supporting them amid the challenging times. #ONEwithYOU campaign encompassed internal cascades, digital materials, and press releases along with the release of a stimulus package, and telecommute suite of solutions. PLDT Enterprise to enable MSMEs restart with 3-month FREE business bundle PLDT Enterprise, the Business-to- Business (B2B) arm of the country’s leading ICT and digital services provider, introduced a solutions bundle designed to help micro, small and medium enterprises (MSMEs) get their businesses back on track. Recognizing that businesses have differentiated digital priorities, PLDT Enterprise designed the said package with flexibility in mind to allow MSMEs build upon their requirements by offering reliable business and connectivity solutions and selecting add-on services best suited to shift their operations to digital—all with the first three months of use for free. The bundles are founded on connectivity solutions that feature PLDT Enterprise’s newest fiber broadband service BEYOND FIBER and wireless broadband Smart BizLTE. Enabling the Digital Economy and Strengthening Business Continuity capabilities of Enterprises Despite the global pandemic, PLDT Enterprise, together with ePLDT, Inc., continued to help businesses gear up for the next normal by offering unique colocation services bundled with other relevant ICT solutions to accelerate their digital transformation. Through its VITRO Data Centers - the largest globally-certified network of DC facilities in the country - the group developed value-laden colocation solutions to address the various pain points experienced by its customers across infrastructure, cyber security, and remote work management. The onset of work-from-home arrangements exposed infrastructure vulnerabilities. In response, the group combined its VITRO colocation services with Endpoint Advanced Security for server protection with 24x7 threat monitoring capability 100,000 views for Beyond FIber virtual launch 19 PLDT 2020 ANNUAL REPORT and Proactive Monitoring for 24x7 infrastructure monitoring, alert, and recommendations to mitigate the vulnerabilities. It also included the ePLDT Virtual Desktop, which enables the remote management and deployment of desktops and applications via the cloud to support the work-from-home arrangements allowing access to secure office applications. All of these bundles were offered at an affordable price to organizations across industries and enabled these companies to continue operating seamlessly and serving their customers. Stepping into a new day and facing the new business landscape PLDT Enterprise had taken a more enthusiastic approach on initiatives to enable business resiliency for its customers. Taking form as Day Zero, an internal code name for the collection of initiatives that wanted to signify a new beginning for all businesses, the campaign aimed to personalize and tailor-fit the group’s products and offers in a way that would support the needs of the customers. The group finally launched Day Zero via a thematic campaign video intending to inspire customers to embrace this new business age with the tagline, “Step into a new day. Every day is a new day.” Redefining the future of learning and empowering e-Learning in the Philippines With the goal to redefine the future of e-learning in the Philippines, PLDT Enterprise supported the thematic campaign that communicates its commitment to empower the education sector with technology so “children don’t stop learning / dreaming,” despite the challenging times. It includes two videos highlighting the perspective of both the educator and student, social media promotion, PRs, virtual contract signings to support institutions, and webpages to highlight the eLearning solutions and initiatives of the group. With over two million combined views for the videos, these have driven interest towards eLearning solutions that can aid both teachers and students’ remote learning experience. Keep moving forward with PLDT Enterprise’s wireless suite of solutions To support the transition of businesses towards the online and digital platforms, PLDT Enterprise launched the KEEP MOVING FORWARD campaign. The live launch event, which was held on August 4, amassed a total of 1,568,161 views on Youtube and Facebook. PLDT Enterprise’s Digital Transformation Program Project IMPACT, PLDT Enterprise’s Digital Transformation Program, aims to make the customers’ experience the best through the improvement of the customer platform. The goal does not end only with the customers, but for the improvement of the way employees work as well. Project IMPACT has made an impact on both customers and PLDT Enterprise employees. To date, over 2,400 employees have been onboarded and more than 200,000 client database have been migrated from the old CRM platform in this long-term change to achieve the goal of streamlining operation and making a positive impact on every single business. Leading tech discussions through Tech Talk On Air PLDT Enterprise maximized its social and mass media platforms to allow customers and target market to continue enjoying its well-received thought leadership forum, Tech Talk. The forum aimed to provide attendees with stimulating discussions on various solutions. However, the unpredictable changes brought about by the pandemic had pushed the series to use social and mass media to disseminate information on the latest trends across multiple industries. Two iterations of Tech Talk ON-AIR then came to life, following the same format but done virtually. Enabling enterprises to do business beyond borders Dubbed as “Asia’s next economic powerhouse”, the Philippines continues to show potential that it is moving on an upward trajectory when it comes to business. This potential was taken as an opportunity by PLDT Enterprise Global to promote the Philippines’ vast capabilities —emphasizing the location of the Philippines that connects Asia to the rest of the world. Through this campaign, PLDT Enterprise promoted its global arm and its strategic points of presence across the Americas and Europe as well as the Asia Pacific. This campaign increased awareness on the company’s international capabilities through events made for the global teams, creation of a thematic video, and the launch of the PLDT Global Enterprise website. 20 A three-day virtual convention like no other - PH Digicon 2020 PLDT Enterprise conducted the Philippine Digital Convention (PH Digicon) 2020, a three-day virtual conference held from October 28 to 30 which was headlined by business influencers, thought leaders, and technology experts from around the world. Carrying the theme “IMPACT,” PH Digicon 2020 aimed to inspire attendees to embrace the call of making a positive impact on society through the adoption of innovations and technologies set to define the new future of work. The highlight of the event was its Plenary Session—a venue where delegates gathered invaluable insights from global business executives and world-renowned leaders. These included Cisco Systems Chairman & CEO Chuck Robbins, NTT Research President and CEO Kazuhiro Gomi, Nokia President & CEO Pekka Lundmark, President and Chief Product Officer of Salesforce Industries David Schmaier, Cisco Systems President for Asia Pacific & Japan Sanjay Kaul, and Founder & CEO of goop, actress & author Gywneth Paltrow as its celebrity headline speaker. Key thought leaders and experts in the industries of academe, e-commerce & retail, BPO, BFSI, healthcare, government, travel & tourism, and manufacturing & logistics also made presentations in the event’s breakout sessions. ePLDT Cyber Security first in PH to become a member of global Forum of Incident Response & Security Teams ePLDT, Inc., the country’s leading enabler of digital solutions, officially became the first and only Philippine organizational member of global HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS We enabled industries to accelerate their digital transformation. Powering SM Store’s #MyNumber 14376 hotline The SM Store collaborated with PLDT Enterprise for its nationwide hotline number #14376 (I SM) to support the store’s Call to Deliver service, part of its continuous efforts to provide a better customer experience for shoppers. The SM Store’s #MyNumber hotline is powered by PLDT’s expansive fixed-line network that will allow customers to dial the hashtag sign (#) followed by five digits, 14376 (I SM), which will connect them to the nearest The SM Store branch. PLDT Enterprise, AF Payments partner for transport sector solution PLDT Enterprise entered into a strategic partnership with AF Payments, Inc. (AFPI) to enable a modernized fare and tracking system for the transport sector. AFPI bundled its Automatic Fare Collection System (AFCS) with PLDT Enterprise’s Smart Tracker solution— powered by Vectras—providing a complete fleet management and fare collection solution to public transport operators. Public transport operators now have the option to get fleet management and fare collection functionality from AFPI without the need to contract with multiple suppliers. To continue empowering its students and faculty during this time, De La Salle Philippines reached out to PLDT Enterprise to establish Animo Smart Online Store, an e-commerce site which gives its students and faculty an opportunity to buy and avail of exclusive Smart data and connectivity plans and products. The Catholic Educational Association of the Philippines (CEAP) likewise tapped PLDT to its their eLearning programs with enterprise-grade online applications and connectivity solutions for its members. These applications will be readily accessible for teachers and school superintendents through the Online Learning Management System. Bundled with the service are enterprise-grade Microsoft 365 web- based collaborations tools including MS Teams that teachers facilitate online classes, integrate notes thru OneNote, promote student teacher-student collaboration, and create quizzes with integrated 3rd party applications. PLDT, Smart power Office of the President’s 8888 SMS Hotline PLDT Enterprise and Smart partnered with the Office of the President to power its 8888 SMS Hotline. With the partnership, PLDT and Smart provided the SMS platform for the hotline to support the government in attending to the public’s complaints. All Smart, Sun, and TNT subscribers can now reach the 8888 Complaint Hotline under the Office of the President via SMS free of charge. PLDT and Smart provided the Department of Education (DepEd) with a package of digital services to help support the academic sector to offer continuous learning amid the challenges of the pandemic restrictions. Education Secretary Leonor Magtolis Briones spearheaded the call for support from the telcos in providing free access to DepEd Commons (https://commons. deped.gov.ph), the Department’s online education delivery platform designed as an alternative mode for teaching-learning process during class suspensions and other similar circumstances. Powering DTI Negosyo Centers nationwide PLDT Enterprise powered the 133 Negosyo Centers of the Department of Trade and Industry (DTI) nationwide with connectivity and digital services to support MSMEs. DTI’s Negosyo Centers play a pivotal role in getting businesses back on track to survive the current economic climate. In support, PLDT Enterprise is deploying its BEYOND FIBER, Smart WiFi, and PayMaya services to the full-service Negosyo Centers— including 16 additional centers in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). leader in incident response Forum of Incident Response and Security Teams (FIRST)—strengthening its cyber security capabilities and enabling it to respond better to security incidents. ePLDT’s FIRST membership improves and augments its existing Cyber Security capabilities to respond to cyberattacks. More so, being a FIRST member enables ePLDT to interact with similar cyber security organizations around the world, boosting collaboration and improving communication with their security teams, including collecting feedback, exchanging ideas and sharing best practices. In the same way, ePLDT will also be sharing its own experiences in dealing with threats in the Philippine context. Supporting e-Learning initiatives Sacred Heart School-Ateneo de Cebu (SHS-ADC) has partnered with PLDT Enterprise in its move toward providing digital education. With the tie-up, Ateneo de Cebu will employ Microsoft Education Suite, an e-Learning solution with educational tools that facilitate remote learning while allowing teachers to connect with their students both inside and outside school walls. To aid STI’s new learning model, the educational institution partnered with PLDT Enterprise to provide its students with the necessary connectivity to enable e-Learning. With the tie-up, more than 80,000 students of STI across the country will benefit from Smart Giga Study data plan to ensure their connectivity. more than 2400 onboarded on project IMPACT more than 80,000 students enabled on e-Learning initiatives 133 Negosyo centers powered by PLDT enterprise 21 PLDT 2020 ANNUAL REPORT CARING FOR GLOBAL FILIPINOS In 2020, PLDT Global Corporation (PGC) partnered with SoftBank Corp. to provide reliable and secure internet services to enterprises in Japan through SmartInternet Suite Ether. PGC also launched Virtual Points- of-Presence (VPoPs) that expanded PGC’s points of presence to over 100 countries to serve customers across Asia, Europe, and the Americas. PGC’s Free Bee app increased the daily allocations of free calls to the Philippines by 2.5 times, giving Filipino users abroad greater access to the emotional support they need during uncertain times. Free Bee launched an all-new mobile application and a refreshed brand identity personified by its new ambassador, talented actress Maymay Entrata. True to its new tagline, “Diskarteng Pinoy, Diskarteng Free Bee,” Free Bee also introduced app-to-app calls so that users can call loved ones anywhere in the world. Free Bee capped the year with a different take on its annual #1212FreeBeeDay celebration, surprising thousands of lucky users over the Christmas season with digital vouchers, carried out in partnership with GrabFood, Sunlife, Philippine Airlines & Viu. PGC joined Coca-Cola Beverages Philippines, Inc. (CCBPI) in providing livelihood opportunities for repatriated overseas Filipino workers through its Balik Pinas program. Empowering with Connectivity Solutions PLDT partnered with Orange Group’s International Carriers for international voice aggregation services, while PGC teamed up with the Philippine Cable and Telecommunications Association (PCTA), empowering its members with connectivity solutions to accelerate their digital initiatives amid the new normal. LEADING THE WAY TOWARDS A CASHLESS PHILIPPINES PayMaya has enabled over 28 million registered users across all its consumer platforms to pay cashless and contactless and avail of various financial services, signifying its continued commitment to the Bangko Sentral ng Pilipinas’ (BSP) goal of providing 70% of Filipino adults with a financial account by 2023. PayMaya’s services have become a lifeline for consumers in the time of COVID-19. The PayMaya app has become one of the fastest ways for Filipinos to open a financial account, which readily allows them to send money to friends and loved ones, pay their bills, buy mobile prepaid load, shop for essential items online, receive financial aid, or pay via QR in merchants using their mobile phones - all via digital. Its Smart Padala by PayMaya agent network, meanwhile, has provided much-needed critical financial services to Filipinos, especially during the pandemic. With presence in 92% of all cities and municipalities in the country, neighborhood Smart Padala centers have allowed millions of unbanked and underserved Filipinos to continue accessing financial transactions such as remittances, bills payments, and mobile prepaid reloading amid mobility restrictions. We create greater access across the globe. To respond to the urgent needs of people and communities severely affected by the COVID-19 pandemic and the other disasters that have strucked the country in 2020, PayMaya launched its #OneAgainstCOVID19 and #TyphoonRelief fund-raising campaigns, which have collectively garnered over P34 million in funds on behalf of 50 organizations and foundations from individuals who donated via their PayMaya app or through PayMaya’s online donation portal. PGC points of presence to over 100 countries Over 28M PayMaya registered users Over PHP34M funds raised for 50 organizations 222222 22 22 Over 116,000 merchants empowered to accept cashless payments in-store or online HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSWith e-Wallets becoming an essential tool for Filipinos during the global health crisis, PayMaya has enhanced its mobile app to include critical features and services such as: the ability to purchase Beep QR tickets or top-up Beep and expressway RFID cards for transportation purposes; receive money from other PayMaya users by generating a payment link or QR Ph code; enhanced and expanded bills payment services; receive money transfers from abroad via Western Union or MoneyGram; and change the mobile number associated to their accounts, among many others. To help encourage the growth of cashless payments in the country and offer Filipinos not just a safe and convenient but also rewarding way to pay, PayMaya launched the “Balik Bayad” and “PayMayaguinaldo” campaigns in 2020 that highlight the many ways consumers are rewarded whenever they pay using their PayMaya account. PayMaya pushed the envelope in e-Commerce in 2020 as it processed over Php95 billion worth of transactions on behalf of its customers and merchant partners. This has helped push cashless payments to become the default and preferred mode of payment of Filipinos when it comes to shopping online, overtaking cash for the first time. Enabling ‘digital government’ to take off PayMaya has become the partner of choice of the government, with total volume processed increasing by 1,200% YoY for 2020. Over 60 national government agencies, local government units, and state corporations now have the capability to increase revenue collections and efficiently deliver financial assistance to beneficiaries with PayMaya’s payments acceptance solutions such as PayMaya Checkout, PayMaya QR, One by PayMaya mPOS, and PayMaya PayOut. With the government mandating the use of cashless and contactless payments in transportation services, PayMaya has launched a broad initiative equipping all players in the transportation sector ecosystem— from transportation service providers, to transport hubs, to digital transportation services, to gas stations, and even government agencies—with digital payments solutions that allow them to accept payments via PayMaya QR or cards and e-wallet payments through the PayMaya One device. PayMaya has become the disbursement channel for various government financial aid programs at both the national and local levels, helping disburse over Php4.5 billion direct to the PayMaya account of millions of government beneficiaries. It was tapped to disburse aid for the DSWD’s Social Amelioration Program, Small Business Wage Subsidy, and LTFRB’s assistance to affected drivers. Meanwhile, various provinces, cities, and municipalities – including Bataan Province, Caloocan City, Manila City, Mandaluyong City, Pasig City, Tarlac, and Quezon City – have utilized PayMaya’s disbursement solution for their citizen assistance programs during the pandemic. In July 2020, PayMaya launched the LGU Embracing and Accelerating Digitalization (L.E.A.D) program to help LGUs deploy “plug and play” cashless payments and digital disbursements. With the program, LGUs are also empowered to support merchants and citizens in their constituencies to conduct cashless financial transactions. We enable digital payments for all. 2323 23 PLDT 2020 ANNUAL REPORT THE PLDT GROUP CORPORATE SOCIAL RESPONSIBILITY 2424 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSWe empowered crisis-resilient communities. “ I let them buy essential goods on credit. It may be a small thing, but I hope it helps ease their burden.” - Shine Macapas Smart load retailer and Sari-sari store Owner 25 25 PLDT 2020 ANNUAL REPORTMore information on the PLDT Group’s CSR programs are available in the PLDT 2020 Sustainability Report. 26 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS27 PLDT 2020 ANNUAL REPORTPEOPLE AND CULTURE We created meaningful experiences. 2020 was a life-changing year for the PLDT and Smart organization when the COVID crisis hit the entire world. Majority of its 18,848-strong employee population shifted to a work from home set up and various alternative work arrangements. Transformation within the two organizations was accelerated. To pave the way for new and agile ways of working, processes were digitalized for smoother and faster workflows; events moved to virtual channels, communication was done real-time, and digital learning became the primary method for skills development. Majority of 18,848 employee shifted to work-from-home arrangements 2828 28 28 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSPEOPLE AND CULTURE In 2020 alone, the training reach rate of unique employees who attended learning courses was at 99.20% — the highest ever compared to previous years. This shows that in today’s new normal era, learning has become vital and highly accessible for PLDT and Smart employees. Talent Management To ensure we enable the best integrated telco strategy, PLDT relentlessly pursues its agenda on succession management. Working with the Leaders on present requirements is an urgent groundwork activity while creating a talent pipeline and ecosystem for the next horizon of products and services. This includes the development and implementation of capability building initiatives, series of targeted hiring in local and global markets, and the revival of the Management Associate Program. A digital environment requires a strong learning culture. This is supported by PLDT and Smart’s corporate university which makes sure all learning modalities for the best reach and an internal career opportunity marketplace are utilized to enable talent mobility for all its employees. Employee Well-being Given the COVID situation, PLDT and Smart prioritized the health and well-being of its people. To address the anxieties of employees, dedicated COVID- related channels were set up. For health monitoring purposes, a Coronavirus Online Form was required to be completed by employees if they experienced symptoms or were exposed to a COVID patient or suspect. There is in place a COVID-19 Self-Check Chatbot which served as the employees’ daily health assessment and security requirement for entering the workplace. It was housed in the company’s self-service and knowledge-base platform called ONE Hub, which is also accessible via the NOW Mobile app. Both the COVID form and chatbot were closely monitored by the PLDT Medical Services Team. Weekly communications under the “COVID Warrior” Campaign on guidelines and safety protocols were also released. On top of this, a 24/7 InfoMed hotline addressed medical- related concerns and health benefits PLDT personnel nationwide may have. Complementary to this was the COVID Employee Hotline that was made available during weekdays from 8:00AM to 5:00PM where employees could easily reach out to advisers on questions related to internal guidelines, safety protocols, rapid testing, shuttle services and the like. For those who prefer to inquire online, a COVID Online Helpdesk via the Workplace by Facebook platform was set up for all internal inquiries. The Medical Services Team provided ease and comfort to employees by setting up a convenient process for the claiming of medicines and multivitamins, delivering them to offices and residences during the strict quarantine period until the end of 2020; operationalizing its dedicated PLDT Clinics nationwide, launching the Virtual Health Management system for teleconsultations with in-house doctors, overseeing employee testing results in partnership with accredited Metro Pacific hospitals and clinics nationwide, accommodating employees in designated quarantine facilities, managing the health status of all PLDT Group employees, and holding a continuous vaccination program for employees and their families. Digital Learning as the New Way of Life As the whole organization made a digital shift, the PLDT Group invested in the continuous learning and development of its people by rolling out a line up of e-learning courses and webinars under “PLDT and Smart University”. In 2020, there was total of 224,672 completed e-learning courses across employee development programs, business systems trainings, technical skills, leadership development programs, and onboarding and career initiatives. Some of the year’s digital learning highlights included the launch of new e-learning courses in collaboration with LinkedIn; and the roll out of the #AllTogetherNow Product Knowledge and Customer Experience training program which aimed to keep employees informed on PLDT and Smart’s roster of new and existing products and services. Employees were also taught how to better address the customer concerns of their family members and friends, especially with data becoming a vital service today. Likewise, the Learning & Development Team organized a Training Resource Persons Awards event for its co-trainers and partners from various departments to recognize them for their noteworthy achievements despite a difficult year. PLDT also prepared its 442 retirees in 2020 through transition workshops and seminars to enable them to plan and make better choices amidst the pandemic. 2929 29 PLDT 2020 ANNUAL REPORTMental Health also became a strong advocacy within PLDT and Smart. In 2020, the company launched an internal program called “Mind Your Health”, which aimed to drive awareness on the importance of mental wellness, especially during these difficult times. As part of the initiative, weekly communications and a total of 11 webinar series were rolled out to break the stigma on mental health in the workplace. Garnering 3,879 views and 1,414 live participants, sessions and live talks featured mental health experts as they shared their insights on how best to address mental well-being issues such as stress, anxiety and depression. Under the Mind Your Health program, nine e-Learning modules were also launched for employees to easily access during their free time. Engaging around 11,900 participants, the topics related to dealing with unexpected change, stress management and managing anxiety were the ones that had some of the highest responses from employees. Being the employees’ first line of support, the company’s Officers and Executives were provided with specific modules and sessions to help them understand the important role they play in promoting the mental well-being of their teams. PLDT and Smart ensured that employees who were experiencing mental health issues found support and treatment interventions to help them cope and heal. Counseling and consultations with accredited healthcare professionals through its Medical Services Team were made available for employees. Recognizing MALASKIT With the pandemic affecting the entire PLDT and Smart workforce, a “Pusong PLDT and Smart” digital campaign was rolled out org-wide, putting a spotlight on the employee heroes of both companies. Several individuals from various teams such as Network, Retail Operations, Logistics, Medical Services and IT were commended for going above and beyond the call of duty during the COVID crisis and natural calamities that took place. Recognition played a crucial role with thousands of employees celebrating their colleagues for a job well done. Housed in the performance management system of PLDT and Smart called “DigiPEP”, over 10,000 people sent their colleagues recognition badges dedicated to its corporate values such as malasakit, awesome customer experience, agility, collaboration and humility to listen and learn, among others. Incentive plans were set in place to reward employees for a productive and meaningful year as well as a good performance in 2020 amidst challenges. Over 10,000 sent their colleagues recognition badges We accelerated transformations for a stronger workforce. Engaging the Workforce during Trying Times With COVID changing the way people live and work, engaging and re-energizing the workforce was challenging. An online wellness program called “Wellness Revolution: Digital Edition” was rolled out consisting of a line-up of activities that intended to engage and excite employees through virtual means. There was a total of 16,374 online engagements (which included views, participation and playbacks) from various initiatives: • Workout From Anywhere – Weekly online fitness glasses shared on the Workplace by Facebook internal platform facilitated by instructors and selected employees • PLDT & Smart Plant Project – Employee participants were encouraged to grow their own plants during the quarantine and document them online • Kwentong ECQusina – Employee cooks posted their delicious recipes and home cooked meals on the digital platform • KidsAtHeART – Employees and their dependents showcased their artworks online following themes relevant to the pandemic, and participants with the most creative pieces were given prizes • #RTWOOTD – A digital activity that encouraged employees returning to the workplace to pose in their “return to work attire” PPEs • #WFHDeskGoals – People working remotely shared their own do-it-yourself work spaces at home • Tagisan ng Talino – PLDT and Smart’s version of “Quiz Night” allowed employees to participate in themed online trivia games virtually 30 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS In place of an annual sports olympics held onsite, PLDT and Smart launched a “ONE E-Sports League” for gamers which acquired a satisfaction rating of 4.86, the highest rated virtual sports event. As the PLDT and Smart workforce wanted to give back during this time of need, an internal Kapit Kapatid Fundraising Program in partnership with the PLDT-Smart Foundation, was also implemented raising total donations of Php6,689,000 from 3,553 employees from both companies. The senior leaders of PLDT and Smart played a pivotal role in steering the Company towards the right direction, and assuring its workforce that their wellbeing was a priority. Before the crisis, an onsite PLDT & Smart Leadership Summit was held at The Peninsula Manila to rally the 291 participating Assistant Vice Presidents and Officers to meet the business targets. During the pandemic, three virtual town halls for over 1,400 of the officers and executives were organized for Top Management to present business updates, talk about the COVID-19 pandemic, and address employee questions. In the last leadership town hall of 2020 held last December, 90% of the attendees joined, making it the highest real-time participation rate in comparison to previous sessions. In November 2020, PLDT also had its first ever Virtual Service Awards called “Pamana” where 837 employees celebrated 25 years, 30 years, 35 years and 40 years with the Company. An exclusive site was created for the event with a special digital registration. Awardees were able to watch the program live from the comfort of their homes and offices, chat with fellow recipients, and enjoy the photo booth. Employees tuned in to the celebration where senior leaders gave congratulatory speeches; service award representatives shared their PLDT stories, musicians performed, and a raffle draw with exciting prizes was held. Trophies and cash incentives were also given to the awardees. And to cap off the year, PLDT and Smart wanted to engage its employee community thru a year-end celebration called “Gratitude Night” which was attended by 1,271 live participants, and garnered 2,500 total views. To boost the holiday spirit, there was a Santa Spin Grand Raffle where prizes were given out; Pasko Sessionistas performances by employees themselves, and a Christmas Edition of Tagisan ng Talino (Quiz Night). Despite battling with an unfamiliar crisis in 2020 that changed the way people live and work, the PLDT and Smart workforce showed their malasakit, resilience and dedication – going above and beyond their roles to excel in their projects, serve their customers, and support their colleagues. 31 PLDT 2020 ANNUAL REPORTTHE PLDT GROUP CORPORATE GOVERNANCE REPORT 3232 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSWe act with courage to connect, restore and rebuild lives and communities. “When the pandemic broke loose in the middle of March, our immediate concern focused on our three most important constituents: first, the health and financial well-being of our employees; second, continuing connectivity and service excellence to customers; and third, assistance to the government and its agencies in addressing the needs of communities.” - Manuel V. Pangilinan, PLDT Chairman and President & CEO 33 33 PLDT 2020 ANNUAL REPORT HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS 2020 YEAR AT A GLANCE Creation of the Data Privacy and Information Security Committee (DPISC) and appointment of its Chairman, Members, and Advisor (November 5) The first Board Committee of its kind among publicly-listed companies in the Philippines and in the telecommunications industry in Southeast Asia, the DPISC assists the Board in overseeing and providing strategic direction to governance functions relating to data privacy and information security. Commitment to United Nations Global Compact (February 19 -PLDT; February 20 -Smart) PLDT and Smart expressed commitment to the United Nations Global Compact that calls on business leaders to demonstrate ethical leadership and good governance; invest in addressing systemic inequalities and injustices through inclusive, participatory and representative decision-making; and partnering with the UN, Government and civil society to strengthen access to justice, ensure accountability and transparency, provide legal certainty, promote equality and respect human rights. Approval of the Revised Governance, Nomination and Sustainability Committee (GNSC) Charter highlighting its sustainability functions and appointing the Chief Sustainability Officer as Non-voting Member of the GNSC (November 5) The Governance and Nomination Committee was renamed Governance, Nomination and Sustainability Committee with functions that include assistance to the Board for its oversight on the implementation of the Company’s sustainability strategy, framework, program and policies, and the Company’s social investments and commitments to making meaningful impact to communities. The revised GNSC Charter expanded the composition of the GNSC to include the Chief Sustainability Officer as Non-voting member. Training on “How to Lead Courageously During a Crisis” by Dr. Nancy F. Koehn, Historian and Leadership Expert, Harvard Business School; and “Lessons from a Pandemic: The MPIC Hospital Group Covid-19 Experience and Best Practices” by Dr. Saturnino P. Javier, Medical Director, Makati Medical Center (September 25) The SEC accredited governance training was attended virtually by Board and Advisory Board/Committee Members, Advisors and Officers of PLDT and the PLDT Group, together with the Board Members and Officers of other Philippine-based affiliate companies of First Pacific Company Ltd. 34 34 PLDT 2020 ANNUAL REPORT 12 Board Meetings and 30 Board Committee Meetings with focus on strategy and management oversight; financial reporting, internal controls & audit, independent audit; and corporate governance - 9 regular Board meetings - 2 special Board meetings - 1 organizational Board meeting - 9 Audit Committee meetings - 2 Governance, Nomination and Sustainability Committee meetings - 3 Executive Compensation Committee meetings - 5 Risk Committee meetings - 11 Technology Strategy Committee meetings Annual Stockholders’ Meeting (ASM) with online voting and participation by remote communication (June 9) PLDT held its Annual Stockholders’ Meeting in virtual format on June 9, 2020, with holders of 92.86% of total outstanding shares of Common, Voting Preferred, and Non- Voting Serial Preferred Stocks as of the record date, April 13, 2020 present or represented by proxy in the meeting. Reappointment of a Lead Independent Director (June 9) On June 9, 2020, the Board reappointed Hon. Artemio V. Panganiban as Lead Independent Director, in compliance with Recommendation 5.5 of the Code of Corporate Governance for Publicly-Listed Companies for the designation of a Lead Director from among the Independent Directors if the Chairman is not independent, including if the Chairman of the Board and Chief Executive Officer are held by one person. Review of the Code of Business Conduct and Ethics; and Conflict of Interest Policy (November 4) PLDT’s Board of Directors acting through its Governance, Nomination and Sustainability Committee, reviewed the Company’s Code of Business Conduct and Ethics, and Conflict of Interest Policy and determined that these remain compliant with applicable law, regulations and best practices and are appropriate for the Company. Review of PLDT Group Top Risks as identified by the Top Management Team The PLDT Board approved the PLDT Group Top Risks as identified by the Top Management Team, which covered a review on the result of the rapid risk assessment performed by Management on the effects of Covid-19 on the PLDT Group and the results of discussions on the risk profiles of business and support groups with Group Heads and relevant Officers. PLDT Group’s Compliance with Section 404 of the Sarbanes-Oxley Act (SOX 404) Amid the challenges of the pandemic and a system migration, Finance, Internal Audit and the external auditors have found that the Company’s internal control environment and compliance structure are fundamentally strong. Digitalization has been fast-tracked, and the Control Owners were flexible in redesigning their processes and controls to adapt to the new normal. The transition to an automated tool for Controls Self-Assessment and Sub-Certification has also helped hurdle the challenges brought by the pandemic. 35 35 OUR LEADERSHIP BOARD OF DIRECTORS The year 2020 was a year of great challenges for the PLDT Group, but also a year of great opportunity. It was a year when Board leadership was tasked to ensure good corporate governance amid changed circumstances – community quarantine restrictions, a quick pivot to a work from home environment for a large number of employees, health and wellness concerns, and the palpable and urgent need to actively collaborate with government and other business leaders to build back lives and assist communities in need. As the body entrusted with authority to act for and on behalf of the Company, acts of the Board, including its exercise of corporate powers, conduct of business and control of the properties of the Company, were expressions of the will of its stockholders by whose mandate the Board was constituted. With this mandate, our Directors performed their duties diligently and in good faith and devoted sufficient time and attention for such purpose. As trustees of stockholders and other stakeholders’ interests, our Board and its directors acted in the best interest of the Company and for the common benefit of its stockholders and other stakeholders. To ensure a high standard of governance for the Company, the Board performs the following functions and duties with the assistance of the Board Committees: CORPORATE GOVERNANCE The Board, with the assistance of the Governance, Nomination and Sustainability Committee,1 establishes the Company’s corporate governance framework, principles and policies aligned with business objectives, and oversees their implementation and of continuing education and communication programs on good governance. DETERMINATION AND REVIEW OF COMPANY’S VISION, MISSION AND STRATEGIC OBJECTIVES The Board, in coordination with Management, determines the Vision, Mission and strategic objectives of the Company and reviews the same annually in relation to corporate performance in its annual strategic planning session with Management. MANAGEMENT OVERSIGHT The Board exercises oversight on Management in its execution of the strategic direction and implementation of policies set by the Board. SUSTAINABILITY, CORPORATE SOCIAL RESPONSIBILITY AND STAKEHOLDER ENGAGEMENT The Board, with the assistance of the Governance, Nomination and Sustainability Committee, establishes and oversees the implementation of the Company’s sustainability strategy, framework, program and policies; and oversees the Company’s social investments and commitments to making meaningful impact to communities. It ensures that the Company has an investor relations program and programs for engagement and communication with sectors of the community in which the Company operates, including the Company’s disclosure of material and reportable information regarding non- financial and sustainability issues, with focus on the management of economic, environmental, social and governance (EESG) issues of the business. 1 The Governance and Nomination Committee (GNC) was renamed “Governance, Nomination and Sustainability Committee” (GNSC) pursuant to the GNSC Charter which was approved and adopted by the Board of Directors on November 5, 2020. 36 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS FINANCIAL REPORTING, INTERNAL CONTROL, INTERNAL AUDIT, AND INDEPENDENT AUDIT ANNUAL BOARD ASSESSMENT The Board, with the assistance of the Audit Committee, carries out its oversight responsibilities for the Company’s financial reporting, internal control system, internal audit and independent audit mechanisms. The Board conducts an annual self-assessment to evaluate the performance of the Board as a whole, the Board Committees and the individual directors. Each Board Committee also conducts an annual self-assessment of its performance. ENTERPRISE RISK MANAGEMENT The Board, with the assistance of the Risk Committee, fulfills its oversight responsibilities for the Company’s assessment and management of enterprise risks. It reviews and discusses with Management the Company’s major risk exposures and the corresponding risk mitigation measures. TECHNOLOGY The Board, with the assistance of the Technology Strategy Committee, reviews and approves the Company’s technology strategy and roadmap, and capital expenditures for network and technology. DATA PRIVACY AND INFORMATION SECURITY The Board, with the assistance of the Data Privacy and Information Security Committee,2 oversees data privacy and information security governance; reviews and approves the Company’s strategic plans on data privacy and information security; oversees the adoption and implementation of a system for identifying, assessing, monitoring and managing enterprise-wide data privacy and information security risks, including its framework, structure, policies, standards, and processes. SUCCESSION PLANNING, PROFESSIONAL DEVELOPMENT, AND EXECUTIVE COMPENSATION The Board, through its Executive Compensation Committee, reviews the criteria for employment, promotion and professional development plans for Senior Management; keeps track of their performance, and evaluates their potential for other critical roles and leadership paths. A succession planning process is facilitated within the PLDT Group referred to as the critical talent program. The Board is assisted by the Executive Compensation Committee in developing the compensation philosophy or policy consistent with the strategy, culture and control environment of the Company. SELECTION PROCESS FOR DIRECTORS AND APPOINTMENT OF OFFICERS The Board, with the assistance of the Governance, Nomination and Sustainability Committee, implements a selection process to ensure that the Board has an effective and balanced mix of knowledge, expertise, experience and diversity in terms of, among others, age, gender and ethnicity, and reviews the qualifications of officers to be appointed. COMPOSITION Our Board is composed of 13 members, with three independent directors, eight other non-executive directors and two executive directors. Three directors are female and two are Japanese citizens. All the members of our Board are qualified and competent directors with diverse and complementing skills, expertise, experience and knowledge which enrich the collective processes and practices of our Board. Our directors have extensive experience in their respective fields or industries, such as telecommunications, Information and Communication Technology (ICT), business processing, infrastructure, power, insurance, real property development, retail and agriculture businesses, law and public administration. At least three of our non-executive directors have extensive experience in the telecommunications industry. Chairman. Our Chairman provides leadership for the Board and ensures that the Board works effectively and performs its duties responsibly. He presides and facilitates discussions in Board meetings focusing on strategic matters, risk management, key issues and governance concerns that will affect the business operations. The incumbent Chairman, Mr. Manuel V. Pangilinan, concurrently holds the position of President and CEO since January 1, 2016. With the guidance of the Governance, Nomination and Sustainability Committee, Mr. Pangilinan continues to manage the search for a new President and CEO of PLDT. Meanwhile, the Board is assured of the benefit of independent views with the checks and balances in place: (i) clearly defined duties and responsibilities of the Chairman and the President & CEO in the By-Laws, CG Manual and Board Charter; (ii) independent Board oversight, supported by three independent directors, including a lead independent director, eight non-executive directors, Audit Committee composed entirely of independent directors, and Governance, Nomination and Sustainability Committee, Executive Compensation Committee and Risk Committee with independent directors constituting the majority of their respective voting members; and (iii) Company policies and procedures which have been established to manage conflicts of interests. Independent Directors. Our independent directors, namely, Retired Supreme Court Chief Justice Artemio V. Panganiban, Mr. Pedro E. Roxas and Mr. Bernido H. Liu, were selected pursuant to the specific independence criteria set out under applicable laws and rules, our By-Laws and CG Manual. Under our CG Manual, an independent director is, broadly, “a person who is independent of Management and who, apart from his fees and shareholdings, is free from any business or other relationship with the Company which could, or could reasonably be perceived to, materially interfere with his exercise of independent judgment in carrying out his responsibilities as a director of the Company.” More specific independence standard criteria are enumerated in our By-Laws and CG Manual. On June 9, 2020, the Board reappointed Hon. Artemio V. Panganiban as Lead Independent Director pursuant to the Recommendation of the Code of Corporate Governance for Publicly-Listed Companies (CG Code for PLCs). 2 The creation of the Data Privacy and Information Security Committee (“DPISC”) and the adoption of the Data Privacy and Information Security Charter were approved by the Board on November 5, 2020. 37 PLDT 2020 ANNUAL REPORT DIVERSITY PLDT considers having an optimally performing diverse Board as an essential element for the attainment of the Company’s strategic objectives and its sustainable development. PLDT’s Board Diversity Policy articulates the Company’s recognition of the enhanced quality of performance and decision-making capability of a Board that is composed of a mix of directors who are equipped with knowledge, skills, professional or business experience, cultural and educational background, ethnicity, gender, age, length of service, and is a combination of executive, non-executive and independent directors. The Company’s Board Diversity Policy provides that without infringing the cardinal right of the stockholders to nominate and vote for the election of directors, the Governance, Nomination and Sustainability Committee and the Board shall consider the appropriate mix, complementation and interplay of the various diversity aspects in the selection of qualified director-nominees, including independent director-nominees, who will be recommended for election by the stockholders or the Board, as the case may be, for the Company to achieve the benefits of Board diversity as well as to fairly and effectively promote the interest of all the stakeholders, particularly the long term interest of the stockholders of the Company. For the purpose of selecting the members of our Board, the Governance, Nomination and Sustainability Committee follows the Company’s Guidelines on the Search, Screening and Selection of Directors and Screening Checklist which contain, among others, the criteria and qualifications for directorship and a matrix on the skills, expertise and experience relevant to the responsibilities of the Board, and considers other relevant factors, such as conflict of interest and directorships and/or positions in other corporations. The process ensures that the selection of directors and independent directors is aligned with the Board Diversity Policy and the Company’s Vision, Mission, and strategic objectives. DIRECTORSHIPS IN OTHER CORPORATIONS Our Board adheres to a performance-based standard in determining whether directorships in other companies compromise the capacity of a director to serve or perform his/her duties and responsibilities to the Company diligently and efficiently. Differences in individual capabilities and the nature and demands of directorships in other companies are given due consideration in determining fitness and capacity to serve in our Board. MEETINGS Our Board meets, more or less, on a monthly basis, in accordance with the schedule of meetings that it sets at the end of the preceding year. Invariably, some of these meetings are devoted to the review and/or approval of the Company’s Vision and Mission, the strategic plans and budget, business operations updates, network and technology updates, capital expenditures and investments, risk management reports and sustainability programs. Once every quarter, our Board reviews the quarterly financial reports. The Board holds executive sessions with independent directors and non- executive directors, excluding executive directors, at least once a year and at such other times as the Board may deem necessary or appropriate. The Board held one executive session in 2020. BOARD DIVERSITY FACTORS ROLE GENDER AGE (YEARS) ETHNICITY TELECOM-ICT EXPERIENCE (YEARS) YEARS IN PLDT AS DIRECTOR 3 INDEPENDENT DIRECTORS (ID) 2 EXECUTIVE DIRECTORS (ED) 8 NON-EXECUTIVE DIRECTORS (NED) 10 3 >70(6) 61-70 (4) 51-60 (3) FILIPINO (11) JAPANESE (2) >20(8) 10-20 (3) <10 (2) >30 (1) 11-30(3) <10(9) DIRECTORS’ PROFESSIONAL BACKGROUND Several of our directors have professional background and business experience in more than one field. BUSINESS LEGAL ENGINEERING-ICT PUBLIC ADMIN 10 (77%) 4 (31%) 4 (31%) 3 (23%) 38 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS ATTENDANCE IN 2020 BOARD MEETINGS AND ANNUAL STOCKHOLDERS’ MEETING (ASM) Director Designation Board Meetings ASM Manuel V. Pangilinan Ma. Lourdes C. Rausa-Chan Bernido H. Liu Artemio V. Panganiban Pedro E. Roxas Manuel L. Argel, Jr. Helen Y. Dee Ray C. Espinosa James L. Go Shigeki Hayashi Junichi Igarashi Albert F. del Rosario Marife B. Zamora Executive Director Executive Director Independent Director Independent Director Independent Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director 12/12 12/12 11/12 12/12 12/12 12/12 11/12 12/12 12/12 12/12 12/12 12/12 12/12 ATTENDANCE IN 2020 BOARD MEETINGS AND ANNUAL STOCKHOLDERS’ MEETING (ASM) Name Designation Board Meetings ASM Oscar S. Reyes Roberto R. Romulo Benny S. Santoso Orlando B. Vea Christopher H. Young Advisor Advisor Advisor Advisor Advisor 12/12 12/12 12/12 12/12 12/12 In 2020, our Board held 12 meetings (nine regular Board meetings, two special Board meetings and one organizational Board meeting). In each meeting, a quorum of at least two-thirds of the Board members, including at least one independent director, was present. All independent directors were present in the Annual Stockholders’ Meeting held on June 9, 2020. The respective Chairmen of the Audit; Governance, Nomination and Sustainability; Executive Compensation; Risk; and Technology Strategy Committees were likewise present in the said meeting. Key agenda items in the 2020 Board meetings included the following: • Audited financial results for the year ended December 31, 2019 • 2020 Annual Budget, business strategies and initiatives • Financial results for each quarter of 2020 • Dividend declarations • Business updates • Update on the impact of and management response to Covid-19 • Network projects and capital expenditures • Equity and other securities transactions • Annual Stockholders’ Meeting matters • Appointment of members of the Advisory Board and Board Committees • Appointment and promotion of officers • Appointment of Lead Independent Director • Reports of Board Committees • Enterprise Risk Management Report • Sustainability Report • Approval of the Amended Governance, Nomination and Sustainability Charter, appointment of the Chief Sustainability Officer as a non-voting member of the Committee • Creation of the Data Privacy and Information Security Committee, approval of its Charter, and appointment of its Chairman, members, and advisor • Corporate Social Responsibility Projects 39 18% 6% 20% 11% 29% 16% BOARD ACTIVITIES CORPORATE GOVERNANCE ENTERPRISE RISK MANAGEMENT FINANCIAL REPORTING, INTERNAL CONTROLS & AUDIT, AND INDEPENDENT AUDIT SUSTAINABILITY, STAKEHOLDER ENGAGEMENT AND CSR STRATEGIC DIRECTION, TECHNOLOGY & CORPORATE PERFORMANCE MANAGEMENT OVERSIGHT PLDT 2020 ANNUAL REPORTMEMBER Manuel V. Pangilinan Ma. Lourdes C. Rausa-Chan** Bernido H. Liu* Artemio V. Panganiban* Pedro E. Roxas* Ray C. Espinosa James L. Go*** Junichi Igarashi*** Albert F. del Rosario Roberto R. Romulo*** Oscar S. Reyes** Orlando B. Vea** ATTENDANCE IN 2020 BOARD COMMITTEE MEETINGS AUDIT COMMITTEE (AC) GOVERNANCE, NOMINATION AND SUSTAINABILITY COMMITTEE (GNSC) EXECUTIVE COMPENSATION COMMITTEE (ECC) RISK COMMITTEE (RC) TECHNOLOGY STRATEGY COMMITTEE (TSC) 2/2 2/2 2/2 2/2 2/2 2/2 2/3 3/3 3/3 2/3 3/3 5/5 5/5 4/5 5/5 5/5 9/9 9/9 9/9 9/9 9/9 9/9 9/11 11/11 11/11 11/11 11/11 11/11 9/11 Corazon S. de la Paz-Bernardo*** 9/9 Gina Marina P. Ordoñez ** 2/2 3/3 * Independent Director/**Non-voting member/***Audit Committee Advisor 2020 BOARD REMUNERATION (PHP) Director ASM and Board Meetings Attended Board Committee Meetings Attended Total Executive Directors Manuel V. Pangilinan Ma. Lourdes C. Rausa-Chan Independent Directors Bernido H. Liu Artemio V. Panganiban Pedro E. Roxas Non-executive Directors Manuel L. Argel, Jr. Helen Y. Dee Ray C. Espinosa James L. Go Shigeki Hayashi Junichi Igarashi Albert F. del Rosario Marife B. Zamora Total 2,750,000 2,750,000 2,500,000 2,750,000 2,750,000 2,750,000 2,500,000 2,750,000 2,750,000 2,750,000 2,750,000 2,750,000 2,750,000 35,250,000 1,625,000 250,000 2,375,000 2,375,000 2,125,000 - - 1,375,000 3,125,000 - 3,750,000 1,375,000 - 4,375,000 3,000,000 4,875,000 5,125,000 4,875,000 2,750,000 2,500,000 4,125,000 5,875,000 2,750,000 6,500,000 4,125,000 2,750,000 18,375,000 53,625,000 Note: Only one per diem was given to directors for attendance in the Annual Stockholders’ Meeting, Regular Meeting, and Organizational Meeting on June 9, 2020. 40 40 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSCOMPENSATION All our directors are entitled to a per diem of Php250 thousand for attendance in each Board meeting and Php125 thousand for attendance in each meeting of the Board Committees in which some of them are members. Save for our executive directors, our directors do not receive stock options, performance incentives, bonuses or any other form of compensation from the Company. TRAINING For the orientation of new directors, the Chairman, President and CEO, Chief Financial Officer, Corporate Secretary and Chief Governance Officer give a briefing on the Company’s structure, business, operating and financial highlights, responsibilities of the Board and its Committees and how each operates. The new director is also furnished with copies of all relevant corporate documents, including the Company’s Articles of Incorporation, By-Laws, Annual Report, CG Manual, Code of Ethics, and the Charters of the Board and Board Committees. Updates on business and governance policies and requirements principally from the Securities and Exchange Commission (SEC), Philippine Stock Exchange (PSE), US SEC, and New York Stock Exchange (NYSE), and new laws applicable or relevant to the Company and its business, particularly on financial reporting and disclosures and corporate governance, are presented in Board meetings and/or furnished to the directors. The Board keeps abreast of industry developments, business trends and legal requirements relevant to the Company and its operations. In this regard, the Company conducts an Annual In-House Corporate Governance Enhancement Session (ACGES) that provides an opportunity for leadership to engage in discussion with international and local experts on relevant topics, including emerging trends and technologies, new laws, and best business practices. Updates on business and governance policies and requirements, and new laws applicable or relevant to the Company and its business are presented in Board meetings or furnished to directors. In 2020, in collaboration with Philippine-based affiliates of First Pacific Company Ltd., the Company conducted the ACGES for PLDT’s Board and Management on the topics: (i) How to Lead Courageously During a Crisis; and (ii) Lessons from a Pandemic: The MPIC Hospital Group Covid-19 Experience and Best Practices. The ACGES was likewise attended by select guests from the business academe. PERFORMANCE ASSESSMENT Our directors take part in an annual assessment process which reviews and evaluates the performance of the whole Board, the Board Committees and the individuals that comprise these bodies. This process enables the Board to identify its strengths and areas for improvement and elicit individual director‘s feedback and views on the Company’s strategies, performance and future direction. Each Board Committee also conducts an annual self-assessment of its performance. The Board assessment process is further discussed under the Section Monitoring and Evaluation of this report. BOARD COMMITTEES To aid in ensuring compliance with the principles of good corporate governance, our Board has constituted the following Board Committees: Audit; Governance, Nomination and Sustainability; Risk; Executive Compensation; Technology Strategy; and Data Privacy and Information Security. BOARD OF DIRECTORS Advisory Committee Audit Committee (AC) Governance, Nomination & Sustainability Committee (GNSC) Executive Compensation Committee (ECC) Risk Committee (RC) Technology Strategy Committee (TSC) Data Privacy & Information Security Committee (DPISC) 41 PLDT 2020 ANNUAL REPORT ADVISORY BOARD/COMMITTEE Our Board is supported by an Advisory Committee that provides guidance and suggestions, as necessary, on matters deliberated upon during Board meetings. Our Advisory Committee is composed of Mr. Roberto R. Romulo, Mr. Benny S. Santoso, Mr. Orlando B. Vea, Mr. Christopher H. Young, and Mr. Oscar S. Reyes. PLDT’s other Board Committees, namely Audit; Governance, Nomination and Sustainability; Executive Compensation; Risk; Technology Strategy; and Data Privacy and Information Security Committees assist the Board in the performance of its functions and responsibilities. The respective charters of the Board Committees provide that each shall have the necessary resources and authorities to discharge their responsibilities, including obtaining external legal or professional advice. AUDIT COMMITTEE (AC) The Audit Committee assists the Board in fulfilling its oversight responsibility for: (i) the integrity of the Company’s accounting and financial reporting principles and policies, and system of internal controls, including the integrity of financial statements (FS) and the independent audit thereof; (ii) the Company’s compliance with legal and regulatory requirements; (iii) the Company’s audit process; and (iv) the performance of the Internal Audit organization and the external auditors (including the external auditors’ qualifications and independence). For efficiency, the Board has determined that in lieu of creating a distinct Related Party Transactions (RPT) Committee, the AC’s functions shall include the review of material RPTs and significant unusual transactions, in accordance with the materiality threshold set in the Material Related Party Transactions Policy and the Guidelines on the Proper Handling of RPTs or by the Board. Our AC is composed of three members, all of whom are independent directors, and four advisors. The AC members are: Retired Supreme Court Chief Justice Artemio V. Panganiban, Mr. Bernido H. Liu and Mr. Pedro E. Roxas, who is the Chairman. The AC advisors include Mr. Junichi Igarashi and Mr. James L. Go, who are non-independent directors, Mr. Roberto R. Romulo, a member of our Advisory Board/ Committee, and Ms. Corazon S. de la Paz-Bernardo, a former member of our Board. All the members of our AC are financially literate, and Ms. de la Paz-Bernardo has expertise in accounting and financial management. She is a former Chairman and Senior Partner of Joaquin Cunanan & Company, now Isla Lipana & Co., a member firm of Pricewaterhouse Coopers (PwC). The purposes, duties and powers of the AC are set forth in its charter. The charter of the AC may be viewed and downloaded from the PLDT website through the QR code: AC Activities in 2020 The PLDT AC held a total of nine joint meetings with the Audit Committees of Smart Communications, Inc. (Smart) and Digital Telecommunications Philippines, Inc. (Digitel). The joint meetings of the PLDT, Smart, and Digitel Audit Committees (AC) covered a variety of topics including the approval of the Group-wide Internal Audit (IA) Plan for 2020. The AC likewise discussed, reviewed and noted the comprehensive reports of the PLDT Group Internal Audit Head on various topics, including online sales channels, install and repair, handling of customer complaints, information security and data privacy management, among others. The AC discussed and noted the reports by IA on its Sarbanes- Oxley Act Section 404 (SOX 404) year-round activities in coordination with Finance and the Control Owners across the PLDT Group. In line with initiatives to streamline processes and ensure continuous improvements, the AC also approved the engagement of external consultants for: (i) IA’s External Quality Assurance Review, and (ii) the SOX 404 compliance program (Project WinSOX). As part of IA’s initiatives to strengthen the culture of ownership and accountability across the PLDT Group, the AC likewise regularly monitored and received updates on Project OWN’s key accomplishments such as the timely remediation of audit issues and the conduct of ownership culture-building trainings during the year together with People Group and the Business Transformation Office. The AC reviewed, with the Chief Financial Officer (CFO) and the PLDT Group Controller, the quarterly financial results, accounting policies, new accounting standards and their impact to the PLDT Group, and management’s estimates and judgments. The AC also discussed with them the Company’s 2019 Annual Reports on Form 17-A for the Philippine Securities and Exchange Commission (SEC), and on Form 20-F for the U.S. SEC. The AC recommended to the Board the reappointment of SyCip, Gorres, Velayo & Co. (SGV) as the external auditors for the Company and its subsidiaries for 2020. It approved SGV’s various audit and non-audit engagements; and verified that such non-audit services would not compromise their independence. The AC discussed with SGV their plan and status reports for the integrated audit of the FS for 2020 and the effectiveness of internal controls over financial reporting (ICFR). It also approved SGV’s report on the results of the integrated audit of the FS and the effectiveness of ICFR for 2019. In 2020, the AC reviewed and approved all RPTs discussed and endorsed by the CFO. The AC also reviewed the Corporate Governance Office’s status reports on complaints received pursuant to the Company’s Expanded Whistleblowing Policy. It also confirmed the continued validity of the AC Charter and the IA Charter until its next review in 2021. The AC likewise invited the Chief Legal Counsel, the Heads of the Chief Revenue Office, the Heads of PLDT Regulatory and Strategic Affairs and Smart Legal and Regulatory, the Chief Information Officer, the Sector Heads of Finance, and the Heads of the Business Transformation Office, to provide updates on risk mitigations or remediations for the noted audit items. GOVERNANCE, NOMINATION AND SUSTAINABILITY COMMITTEE (GNSC) The GNSC assists the Board in the performance of its functions to: (i) establish the Company’s corporate governance framework, principles and policies and oversee their implementation and of continuing education and communication programs on good governance; (ii) develop and implement the Board’s performance evaluation process, as well as the evaluation process for the annual review of Board Committees and individual directors’ performance; (iii) review and evaluate the qualifications of the persons nominated to the Board and to other positions requiring appointment by the Board; (iv) identify persons qualified to become members of the Board and/or the Board 42 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS Committees; (v) make an assessment of the effectiveness of the Company’s nomination and selection process for the Board and Board Committees; (vi) establish the Company’s sustainability strategy, framework, program, policies and oversee their implementation; and (vii) oversee the Company’s social investments and commitments to making meaningful impact to communities. Our GNSC is composed of five voting members, all of whom are regular members of our Board of Directors, and three non-voting members. Three of the voting members are independent directors, namely, Retired Supreme Court Chief Justice Artemio V. Panganiban, Mr. Pedro E. Roxas and Mr. Bernido H. Liu, and two are non-independent directors, namely, Mr. Junichi Igarashi and Mr. Manuel V. Pangilinan, who is the Chairman. The non-voting members are the Chief Governance Officer, the Chief People Officer and the Chief Sustainability Officer. The purposes, duties and powers of the GNSC are set forth in its charter. The charter of the GNSC may be viewed and downloaded from the PLDT website through the QR code: GNSC Activities in 2020 The PLDT GNSC held two meetings in 2020. In lieu of a meeting in March, the Committee unanimously adopted three resolutions pursuant to Section 4.1 (h) (iii) of its Charter. The GNSC’s activities pursuant to its oversight function on governance-related matters included the following: On policy review and development, the GNSC reviewed the (i) Code of Ethics, and (ii) Conflict of Interest Policy and determined that the said policies remain to be compliant with applicable law, regulations and best practices and are appropriate for the Company, and approved the recommendation to continue to strengthen the implementation of the said policies. The GNSC likewise discussed PLDT’s Integrated Annual Corporate Governance Report that was submitted to the SEC and PSE in compliance with the CG Code for PLCs and related SEC and PSE memorandum circulars. On education and communication, the GNSC provided guidance on and approved the speakers and the content of PLDT’s Annual Corporate Governance Enhancement Session (ACGES) for Directors and Officers. The ACGES themes in 2020 were: (i) How to Lead Courageously During a Crisis by leadership expert, world-renowned author and historian at the Harvard Business School, Dr. Nancy F. Koehn; and (ii) Lessons from a Pandemic: The MPIC Hospital Group Covid-19 Experience and Best Practices by Makati Medical Center’s Medical Director, Dr. Saturnino P. Javier. The GNSC likewise reviewed and approved PLDT’s Corporate Governance Report for 2019. On compliance and enforcement, the GNSC reviewed the reports on PLDT’s Expanded Whistleblowing (EWB) cases and the investigation and dispositions thereof, and those of Smart, PLDT Global Corporation, ePLDT, Inc., Digitel and Digitel Mobile Philippines, Inc. It likewise reviewed and noted or approved, as applicable, the Conflict of Interest (COI) Disclosures of key employees. The GNSC also assisted in implementing the Board Performance Assessment for 2019 performance, which included the performance evaluation of the Board Committees and Individual Directors. The GNSC’s activities pursuant to its oversight function on nomination related matters included the following: (i) pre- screened candidates nominated to become Directors and the qualifications of candidates for Independent Directors and submitted to the Board the final list of qualified Director and Independent Director nominees for election at the 2020 Annual Stockholders’ Meeting; (ii) screened and recommended to the Board the appointment of a Lead Independent Director; and reviewed and confirmed People Group’s evaluation of the qualifications of officers and recommended their appointment or re-appointment as such at the 2020 Organizational Meeting of the Board of Directors; (iii) reviewed and confirmed People Group’s evaluation of proposed appointments of new officers and promotions to officer rank for approval by the Board; and (iv) reviewed and noted the creation of the Data Privacy and Information Security Committee and recommended to the Board the appointment of its Chairman, members and advisor. EXECUTIVE COMPENSATION COMMITTEE (ECC) The ECC assists the Board in the performance of its functions to: (i) oversee the development of a compensation philosophy or policy consistent with the strategy, culture and control environment of PLDT; (ii) oversee the development and administration of PLDT’s executive compensation programs, including long term incentive plans and equity-based plans for officers and executives; (iii) oversee the development and administration of the Company’s performance management framework to monitor and assess the performance of Management; (iv) review the succession plan for officers, including the CEO; and (v) oversee the development and implementation of professional development programs for officers. Our ECC is composed of five voting members, all of whom are regular members of our Board of Directors, and one non- voting member. Three of the voting members are independent directors, namely, Retired Supreme Court Chief Justice Artemio V. Panganiban, Mr. Pedro E. Roxas and Mr. Bernido H. Liu, and two are non-independent directors, namely, Mr. Junichi Igarashi and Mr. Manuel V. Pangilinan, who is the Chairman. The non-voting member is the Chief People Officer. The purposes, duties and powers of the ECC are set forth in its charter. The charter of the ECC may be viewed and downloaded from the PLDT website through the QR code: ECC Activities in 2020 The ECC held three meetings in 2020. Its activities for the year included the discussion and approval of the following: (i) payout of 2019 PLDT-Smart Short-Term Incentive Plan (STIP); (ii) settlement of the 2019 PLDT Group Transformation Incentive Plan (TIP) grant concluding the 2017-2019 TIP; (iii) Management’s proposed revised Core Net Income Target for the 2020 STIP and recommendation for differentiated incremental STIP pay-out beyond the Core Net Income Target; (iv) Management’s proposed revised Cumulative Consolidated Core Net Income (CCNI) Target covering the two-year performance period 2020 to 2021 and the proposed revised budget under the 2020-2021 Long-Term Incentive Plan (LTIP); (v) Management’s recommendation to pay out one month advance 2020 STIP to eligible PLDT and Smart officers and executives based on the projected Core Net Income performance for 2020; and (vi) Management’s proposed 2021 STIP based on Core Net Income Target for 2021. 43 PLDT 2020 ANNUAL REPORT The purposes, duties and powers of the TSC are set forth in the TSC Charter. A copy of the charter of the TSC may be viewed and downloaded from the PLDT website through the QR code: TSC Activities in 2020 The TSC held eleven meetings in 2020. Its activities included review and discussion with the Technology Group and Management, and where appropriate, endorsement to the Board for approval of the following: (i) technology budget items; (ii) enhancement of the network, both mobile and fixed, to support government projects (e-Learning, online application and approval of permits, digital transactions, etc.); (iii) enhancement of the network to support private business (digital transactions); (iv) technology strategies, programs, projects, initiatives and plans, including, among others, LTE Expansion and Support Facilities projects; and (v) projects in support of business operations including, among others, the consolidated device buying plan. DATA PRIVACY AND INFORMATION SECURITY COMMITTEE (DPISC) The DPISC assists the Board in the performance of its functions to (i) promote and foster a culture of data privacy and information security governance; (ii) review and approve the Company’s strategic plans on data privacy and information security; (iii) ensure accountability for compliance with regulatory standards and best practices on data privacy and information security; and (iv) oversee Management’s adoption and implementation of a system for identifying, assessing, monitoring and managing enterprise- wide data privacy and information security risks, including its framework, structure, policies, standards, and processes. Our DPISC is composed of four voting members and an advisor. The four voting members are non-independent directors Mr. Manuel V. Pangilinan, who is the Chairman; Atty. Ray C. Espinosa; Mr. Junichi Igarashi; and independent director, Mr. Bernido H. Liu. Its advisor is Mr. Alfredo S. Panlilio. The purposes, duties and powers of the DPISC are set forth in its charter. A copy of the charter of the DPISC may be viewed and downloaded from the PLDT website through the QR code: RISK COMMITTEE (RC) The RC assists the Board in the performance of its functions to: (i) oversee Management’s adoption and implementation of a system for identifying, assessing, monitoring and managing key risk areas; (ii) review Management’s reports on the Company’s major risk exposures; and (iii) review Management’s plans and actions to minimize, control or manage the impact of such risks. Our RC is composed of five voting members, all of whom are regular members of our Board of Directors. Three of the voting members are independent directors, namely, Mr. Pedro E. Roxas, Mr. Bernido H. Liu and Retired Supreme Court Chief Justice Artemio V. Panganiban, who is the Chairman, and two are non-executive non-independent directors, namely, Mr. Junichi Igarashi and Mr. James L. Go. The purposes, duties and powers of the RC are set forth in its charter. The charter of the RC may be viewed and downloaded from the PLDT website through the QR code: RC Activities in 2020 The RC held five meetings in 2020. Its activities included the following: (i) review of the PLDT Group Top Risks as identified by the Top Management Team, led by the head of the PLDT Group Risk Management Department (GRMD); (ii) review and notation of the result of the rapid risk assessment performed by Management on the effects of COVID-19 on the PLDT Group with the Head of the PLDT GRMD and the Chief People Officer; (iii) review and discussion with Heads and relevant officers of the risk profiles of the (a) Enterprise Group, (b) Technology Group, (c) Cyber Security Operations Group, (d) Business Transformation Office, (e) People Group, (f) Supply Chain Management Group, (g) Corporate Affairs and Legal Services Group, (h) Business Continuity and Resiliency Office, (i) Data Privacy and Information Security Governance Group; (iv) review and endorsement of the renewal of the Property Insurance Policy and Cyber Insurance Policy with the Center Head for Insurance; (v) review and monitoring of progress on the rollout of the Enhanced Enterprise Risk Management Framework with the Head of the PLDT GRMD; (vi) update of the risk profile of the Revenue Group with the Chief Revenue Officer and his Leadership Team; and (vii) discussion and notation of the Top Ten Risks in Telecommunications as presented by Ernst & Young (EY). TECHNOLOGY STRATEGY COMMITTEE (TSC) The TSC assists the Board in the performance of its functions to: (i) review and approve the strategic vision for the role of technology in PLDT’s overall business strategy, including the technology strategy and roadmap of PLDT; (ii) fulfill its oversight responsibilities for PLDT’s effective execution of its technology-related strategies; and (iii) ensure the optimized use and contribution of technology to PLDT’s business and strategic objectives and growth targets. Our TSC is composed of five voting members and two non-voting members. The five voting members are non- independent directors Mr. Manuel V. Pangilinan, who is the Chairman, former Ambassador Albert F. del Rosario, Atty. Ray C. Espinosa, Mr. James L. Go and Mr. Junichi Igarashi; and the two non-voting members are Mr. Oscar S. Reyes and Mr. Orlando B. Vea, who are members of our Advisory Board/Committee. 44 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS Date Program Speaker/Training Institution Name 2020 TRAINING September 25, 2020 How to Lead Courageously During a Crisis Nancy F. Koehn, Ph.D. PLDT Annual Corporate Governance Enhancement Session Lessons from a Pandemic: The MPIC Hospital Group Covid-19 Experience and Best Practices Saturnino P. Javier, M.D. PLDT Annual Corporate Governance Enhancement Session Directors Manuel V. Pangilinan Manuel L. Argel, Jr. Helen Y. Dee Albert F. del Rosario Ray C. Espinosa Shigeki Hayashi Junichi Igarashi Bernido H. Liu Artemio V. Panganiban Ma. Lourdes C. Rausa-Chan Pedro E. Roxas Marife B. Zamora Advisory Board/ Committee Members Oscar S. Reyes Roberto R. Romulo Benny S. Santoso Orlando B. Vea Christopher H. Young Audit Committee Advisor Corazon S. de la Paz-Bernardo GNSC and ECC Non-voting Member Gina Marina P. Ordoñez MANAGEMENT Our Board exercises oversight on Management in accordance with the standards set forth in our CG Manual. The roles of Management and other offices involved in ensuring implementation of the corporate governance policies and requirements are discussed below. President and CEO. The President and CEO has general care, management and administration of the business operations of the Company. He ensures that the business and affairs of the Company are managed in a sound and prudent manner and that operational, financial and internal controls are adequate and effective to ensure reliability and integrity of financial and operational information, effectiveness and efficiency of operations, safeguarding of assets and compliance with laws, rules, regulations and contracts. He provides leadership for Management in developing and implementing business strategies, plans and budgets to the extent approved by the Board. In order to enable the members of the Board to properly fulfill their duties and responsibilities, the CEO provides the Board with a balanced and understandable account of the Company’s performance, financial condition, results of operations and prospects on a regular basis. He directs Management to provide the Board/ directors with adequate and timely information about the matters to be taken up in their Board meetings. He likewise ensures that the directors have independent access to Management. The President and CEO: (i) communicates and implements the Company’s vision, mission, values and overall strategy and promotes the appropriate enhancement in the organization or its stakeholder engagement in relation to the same; and (ii) serves as the link between internal operations and external stakeholders. Management formulates, under the oversight of the Audit Committee, financial reporting and internal control systems, rules and procedures. Other duties of the President are set forth in the CG Manual. In 2020, well aware of the impact of the Covid-19 pandemic on the nation, our President and CEO identified three most important constituents for the organization in his President’s Report to stockholders and other stakeholders during the Company’s first virtual Annual Stockholders Meeting: first, the health and financial well-being of our employees; second, continuing connectivity and service excellence to our customers; and third, assistance to government and its agencies in addressing the needs of Filipinos.3 Corporate Secretary. The Corporate Secretary assists the Board in the conduct of its meetings, including the preparation of the schedule and agenda of Board meetings, and ensures that all Board procedures, rules and regulations are observed by the directors, and Management provides the Board with complete and accurate information necessary for judicious decision making. The Corporate Secretary is responsible for the safekeeping and preservation of the integrity of the minutes of the meetings of the Board and Board Committees, as well as other official records of the Company, and contributes to the flow of information between the Board and Management, the Board and its Committees, and the Board and the Company’s stakeholders, including stockholders. In 2020, as the Company quickly adapted to a digital work environment, our Corporate Secretary worked to facilitate the transformation of in-person Board meetings to an interactive, secure and productive online environment. 3 Excerpt from PLDT President & CEO, Mr. Manuel V. Pangilinan’s Report to Stockholders on the June 9, 2020 PLDT Annual Stockholders’ Meeting. 454545 PLDT 2020 ANNUAL REPORT Report SHAREHOLDERS Election Report Accountability BOARD OF DIRECTORS Appointment Committee Charter Designation Report Assurance Appointment Appointment BOARD COMMITTEES External Auditor Report Audit Committee Risk Committee Executive Compensation Committee Technology Strategy Committee Governance, Nomination and Sustainability Committee Data Privacy and Information Security Committee Oversight Guidance Report Oversight Guidance Report Oversight Guidance Report Oversight Guidance Report Oversight Guidance Report Information Internal Audit CRMO/Group Risk Mgmnt Department People Group Corporate Governance Office Sustainability Office People Group Data Privacy and Information Security Group Cyber Security Operations Group Report Report Report Report Report Report Report Annual Audit CEO MANAGEMENT Appointment Oversight Report Accountability Internal Audit Organization. Our Internal Audit organization determines whether the Company’s structure of risk management, control and governance processes are adequate and functioning, and provides reasonable assurance that, among others, significant financial, management, and operating information are accurate, reliable and timely and employees’ actions are in compliance with policies, standards, procedures, and applicable laws and regulations. It provides a systematic and disciplined approach in the evaluation and improvement of the effectiveness of such processes. Internal audit examinations cover, at the minimum, the evaluation of the adequacy and effectiveness of controls covering the Company’s financial reporting, governance, operations and information systems, including the reliability and integrity of financial and operational information, effectiveness and efficiency of operations, protection of assets, and compliance with laws, rules, regulations and contracts. The Chief Audit Officer/Internal Audit Head oversees and is responsible for the internal audit activities of the Company, including any portion thereof that is outsourced to a third-party service provider. He reports functionally to the AC and administratively to the President and CEO. The charter of the internal audit organization complies with the International Standards for the Professional Practice of Internal Auditing of the Institute of Internal Auditors. In the discharge of his duties, the Chief Audit Officer/Internal Audit Head is required to provide annually, an assessment on the adequacy and effectiveness of the Company’s processes for controlling activities and managing risks; report significant issues related to the processes of controlling activities, including potential improvements to such processes, as well as provide information concerning such issues; and periodically provide information on the status and results of the annual internal audit plan and the sufficiency of our internal audit organization’s resources. Other duties of the Chief Audit Officer/Internal Audit Head are set forth in the CG Manual. External Auditor. The Company’s external auditor is appointed by the AC which reviews its qualifications, performance and independence. To ensure objectivity in the performance of its duties, the external auditor is subject to the rules on rotation and change, every five years; general prohibition on hiring by the Company of the external auditor’s staff; and full and appropriate disclosure to, and prior approval by the AC of all audit and non-audit services and related fees. Approval of non-audit work by the external auditor is principally tested against the standard of whether such work will conflict with its role as an independent auditor or would compromise its objectivity or independence as such. Our external auditor is SGV & Co., a member practice of EY. Chief Governance Officer. The primary responsibilities of the Chief Governance Officer include monitoring compliance with the provisions and requirements of corporate governance laws, rules and regulations, reporting violations and recommending the imposition of disciplinary actions, and adopting measures to prevent the repetition of such violations. The Chief Governance Officer assists the Board and the GNSC in the performance of their governance functions. Under the supervision and direction of the Chief Governance Officer, the Corporate Governance Office (CGO) assists in the implementation of the corporate governance policies adopted by the Board. 46 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS POLICIES AND PRACTICES PLDT follows the corporate governance and sustainability standards prescribed by Philippine law or recommended under rules and regulations of the SEC and the PSE. As a foreign private issuer with American Depositary Shares listed and traded in the NYSE, PLDT also complies with governance standards laid out in the relevant laws of the US and rules and regulations of the US SEC and NYSE. Being an associated company of First Pacific Company Ltd., a company listed in the Hong Kong Stock Exchange, PLDT also benchmarks with the governance standards of Hong Kong. Corporate Governance Framework. PLDT’s corporate governance framework is embodied in the integrated system of governance structures, policies and processes set forth in PLDT’s Articles of Incorporation, By-Laws, Manual on Corporate Governance (CG Manual), Code of Business Conduct and Ethics (Code of Ethics) and Corporate Social Responsibility Statement. Our business principles are threshed out in implementing policies including the Supplier/ Contractor Relations Policy, Conflict of Interest Policy, Expanded Whistleblowing Policy, Policy on Gift-Giving Activities, Policy on Gifts, Entertainment and Sponsored Travel, Material Related Party Transactions Policy, Guidelines on Related Party Transactions, and Disclosure Rules, among others. The Company promotes a culture of good corporate governance through the implementation of these corporate governance (CG) policies, including the CG Manual, Code of Ethics and related policies. PLDT’s key subsidiaries have adopted corporate governance rules and policies similar in substance and form to the foregoing corporate governance policies and suited to their particular business environments and contexts, and appointed their respective corporate governance or compliance officers. All CG policies of the Company are reviewed at least once every two years to ensure that they are appropriate for PLDT, benchmarked with global best practices, and compliant with applicable law and regulations. In 2020, PLDT’s Board of Directors acting through its Governance, Nomination and Sustainability Committee, reviewed the Company’s Code of Ethics and the Conflict of Interest Policy, and determined that these policies remain compliant with applicable law, regulations and best practices and are appropriate for the Company. CG Manual. Our CG Manual defines our corporate governance framework and structure. Supplementary to PLDT’s Articles of Incorporation and By-Laws, it assigns and delineates functions and responsibilities, and entrusts powers, authorities and resources for the execution of such functions and responsibilities. The CG Manual provides, among other matters, the composition and responsibilities of the Board, the Company’s duties towards its shareholders in general, its minority shareholders and its other stakeholders, and the Company’s obligation to comply with applicable disclosure rules. A copy of the CG Manual can be found at the PLDT website through the QR code: Chief Risk Management Officer. The Chief Risk Management Officer (CRMO) is tasked to: (i) plan the overall strategy of the different risk management units of the PLDT Group; (ii) review individual risk management activities and controls of the operational units; (iii) review internal and external factors that can negatively affect the PLDT Group risk profile; (iv) influence, and when necessary, challenge material risk decisions and initiatives; (v) monitor that risks are within the bounds of the risk appetite of the PLDT Group; and (vi) review and escalate risks to the Top Management Team, the Risk Committee and the Board, as necessary, advising them on requisite actions. Group Enterprise Risk Management Department (GRMD). The GRMD implements an integrated risk management program with the goal of identifying, analyzing and managing the PLDT Group’s risks to an acceptable level in order to enhance opportunities, reduce threats, and thus sustain competitive advantage. The implementation of the enterprise risk management (ERM) process ensures that critical risks are well understood and effectively managed across all functions and units within the PLDT Group. The GRMD sets guidelines for the identification and analysis of key risk exposures relating to economic, operational, environmental, social and governance factors that may affect the achievement of the organization’s strategic objectives. It assists in the evaluation and categorization of identified risks, as well as in the development of risk mitigation plans for the most important risks of the Company. It communicates and reports significant risk exposures, including business risks, control issues and risk mitigation plans to the Risk Committee. The ERM process used by the GRMD is based on the ISO 31000 standard on risk management. The GRMD Head supervises the entire ERM process and spearheads the development, implementation, maintenance and continuous improvement of ERM processes and documentation, and communicates the top risks and status of implementation of risk management strategies and action plans to the Risk Committee and the Board. Chief Sustainability Officer. The Chief Sustainability Officer heads the Sustainability Office and assists the President and Chief Executive Officer and the Board in overseeing the Company’s overall sustainability strategy, and that the Company institutionalizes sustainability management towards the cultivation of a strong culture of corporate responsibility. Chief Data Privacy Officer. The Chief Data Privacy Officer (CDPO) heads the Data Privacy Office and is tasked to (i) ensure the PLDT Group’s compliance with data privacy laws, regulations, and best practices; (ii) provide direction to and coordinate closely with PLDT Group business units to ensure effective implementation of data privacy strategies including policies, procedures, processes, and compliance review; and (iii) collaborate with data protection authorities on behalf of the PLDT Group. Chief Information Security Officer. The Chief Information Security Officer (CISO) heads the Cyber Security Operations Group and is tasked to (i) improve, develop and implement information and cybersecurity-related policies, processes and technologies; (ii) ensure compliance with applicable laws, regulations and standards; (iii) manage cybercrime- related cases; (iv) collaborate with government and other private entities in the campaign against cyber threats and/or cybercrimes foreign and domestic; and (v) ensure alignment of all PLDT Group companies on information and cybersecurity-related practices. 47 PLDT 2020 ANNUAL REPORT Code of Business Conduct and Ethics (Code of Ethics). Our Code of Ethics defines the Company’s corporate governance principles of integrity, accountability, transparency and fairness, which the Company shall observe in the conduct of its business. It sets the governance and ethical standards that shall govern and guide all business relationships of the Company, its directors, officers and employees. A copy of the Code of Ethics is found at the PLDT website through the QR code: The implementation of the Code of Ethics is reinforced by enabling policies such as the Supplier/Contractor Relations Policy; Expanded Whistleblowing Policy; Gifts, Entertainment and Sponsored Travel Policy; and Policy on Gift-Giving Activities which, in conjunction with the Code of Ethics, embodies the Company’s anti-corruption policy. Conflict of Interest Policy (COI Policy). This policy enjoins PLDT’s directors, employees and consultants to promptly disclose conflict of interest (COI) situations to the relevant authorities. If warranted, the person concerned should obtain appropriate approvals and inhibit from any action, transaction or decision involving an existing or potential COI. The Company has established an online COI disclosure system to facilitate the immediate disclosure of conflicts of interest. Material Related Party Transactions (MRPT) Policy and Guidelines on the Proper Handling of Related Party Transactions (RPT Guidelines). The Policy provides the processes, controls and safeguards for the proper handling of related party transactions, including review, approval and disclosure, consistent with applicable laws and regulations. The MRPT Policy applies to related party transactions that meet the Materiality Threshold as therein defined and covers PLDT and the PLDT Group. On the other hand, related party transactions that are below the Materiality Threshold in the MRPT Policy are covered by the RPT Guidelines. The RPT Guidelines provides the process of review, approval and disclosure of the Company’s RPTs that are subject to review and approval by the designated authorities. The review’s principal focus is on whether an RPT is on arm’s length terms and in the best interest of PLDT and its shareholders as a whole, considering all relevant circumstances. MRPTs are reviewed by the AC, which is composed entirely of independent directors, and subject to approval by the Board. The Head of Financial Reporting and Controllership Sector, in coordination with the Company’s Disclosure Committee, is responsible for the disclosure of RPTs in the relevant financial reports of the Company as required under Philippine Accounting Standard 24, Related Party Disclosures, and other applicable disclosure requirements. Policy on Gifts, Entertainment and Sponsored Travel (Gifts Policy) and Policy on Gift-Giving Activities. The Gifts Policy provides safeguards in the receipt and acceptance of gifts given by third parties to ensure that such gifts would not affect the objective, independent or effective performance by directors, officers and employees of their duties to the Company. The Policy on Gift-Giving Activities provides guidance and procedural safeguards with respect to gift-giving activities to government officials and employees and to business partners, for or on behalf of, PLDT. The Policy seeks to ensure that such activities are compliant with applicable laws, respectful of the intended recipient’s gifts policy, and consistent with the Company’s core values and policies. Supplier/Contractor Relations Policy. This Policy establishes clear rules for arm’s length transactions and fair treatment of prospective and existing suppliers. The Policy specifically adopts the processes of vendor accreditation and competitive bidding as the general rule to ensure that contracts are awarded only to qualified and duly accredited vendors who offer the best value for money for PLDT’s requirements. Expanded Whistleblowing Policy (EWB Policy). This Policy provides guidelines on handling employee disclosures or complaints regarding (i) violations of corporate governance rules, including the aforementioned policies; (ii) questionable accounting and auditing matters; and (iii) violations or offenses (other than those in (i) and (ii) above) covered by the Company’s Human Resources Manual. The EWB Policy protects whistleblowers and witnesses from retaliation, and to ensure confidentiality and fairness in the handling of a disclosure or complaint, PLDT maintains a Whistleblowing Hotline and other reporting facilities, such as a dedicated electronic mailbox, post office box and facsimile transmission system. All employees and stakeholders who come forward in good faith to report violations or any act that may be considered as contrary to the Company’s values may submit a disclosure or complaint regarding such violation to the CGO. Anonymous disclosures or complaints are allowed and duly processed, subject to certain conditions. In all processes and activities related to a whistleblowing disclosure/complaint, utmost confidentiality is observed in order to ensure the integrity of the process and protect the parties, employees or officers who are allegedly involved therein. As of December 31, 2020, two new whistleblowing complaints were received by PLDT CGO. These cases were consolidated and jointly investigated by PLDT CGO and Internal Audit and the investigation was completed in 2020. The complaints covered allegations of violation of the Code of Ethics, Conflict of Interest Policy, Procurement Policy, Supplier/Contractor Relations Policy and the Human Resources Manual. One case that was under preliminary evaluation as of December 31, 2019 was determined to fall outside the scope of the EWB Policy and was referred to line management for investigation. Thereafter, administrative proceeding was initiated, and the appropriate disciplinary action was imposed. Four other concerns were referred to line management or the Company’s relevant subsidiary for further evaluation and handling. No Complaint on Retaliation was received. Smart received one EWB case, which was closed in 2020, and two new concerns that fall outside the scope of the EWB Policy, which are ongoing investigation. PLDT Global Corporation (PGC), ePLDT, Digital Telecommunications Philippines, Inc. (DTPI) and Digitel Mobile Philippines, Inc. (DMPI) did not receive an EWB case or Complaint on Retaliation in 2020. Protection of Technology Resources and Information. PLDT has a Unified Information Technology Policy that is applicable to PLDT, Smart and DMPI, and which contains policy statements on social media and data privacy; and provides for the protection of information assets and the proper use of technology resources. PLDT’s Cyber Security Operations Group, headed by the CISO, is tasked to create, implement and operate the Information Security Management Systems framework of the Group and to support the review and update of its security policy. In 2020, the Group cyber security strategy continued to focus on protecting the Company’s critical assets. This meant operationalizing its cyber security operations framework leading to the following achievements: (i) full deployment of endpoint security to all corporate workstations 48 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS to detect, prevent, and respond to attacks; (ii) containment of and response to security incidents within less than one minute, on average; (iii) prevention of attacks to our corporate websites through enrollment in our web application firewall; (iv) automation of access review of all SOX applications; (v) blocking of access to phishing, scamming and malware distribution sites; (vi) identification and addition of indicators of compromise in our threat intelligent database used for real- time threat correlation; (vii) expansion of security visibility by enrolling active IP-based assets to our 24x7 Security Operations Center; (viii) conduct of various campaigns, through weekly awareness and phishing testing, to address the human aspect of cyber security; and (ix) support for the secure deployment of new systems, products and services within the organization. Anchored on the belief that employees are an integral part of our strategy, it becomes crucial to shape employee behavior and provide motivation for risk-based decisions and doing the right thing. Hence, a robust, no-nonsense Cybersecurity Awareness Program has become one of the pillars of our employee engagement strategy. Efforts in this regard led to the prevention of possible incidents of phishing and other email-based scams in PLDT, Smart and/or ePLDT. The PLDT Group continues to strive to protect the delivery of digital services that the organization needs to be successful, agile and resilient. Beyond protection, the Group aims to continue its pursuit of cyber security operational excellence, mature and sustain its competencies and serve as a frontline contributor to the growth of the business. Personal Data Protection. In 2020, PLDT’s Privacy Management Program pivoted from a statutory compliance- focused paradigm to one focused on maturing the practice of Data Privacy in its operations. Towards this goal, the Company’s Data Privacy Office (DPO) identified activities aimed at organizational and people development while providing seamless support to operational units within the PLDT Group. The DPO launched the Data Privacy Management Assurance Platform, starting with the rollout of a unified Cookie Notice and consent solution across Company channels. Critical development of processes, particularly for privacy assessments, meant that new projects with limited personal data processing and low privacy risks were identified, assessed, and quickly launched, resulting in more agile product development and more responsive customer service. The DPO also developed its own Privacy Maturity Framework based on local and international privacy laws and best practices. In parallel, an enhanced Data Privacy Compliance Methodology was developed to better assess the Company’s privacy programs. The methodology is based on ISO 19011:2018 (Guidelines on Auditing Management Systems) and includes guidance on conducting compliance assessments remotely. The development of the Privacy Maturity Framework and improvement of the Data Privacy Compliance Methodology are critical inputs to improving the maturity level of Privacy practice within PLDT. Significant releases and updates were also made on the following standards and processes: the Privacy Management Program Standards which guide Data Protection Officers of the Company’s component units in developing and implementing their respective privacy programs, Privacy Impact Assessment, Breach Management, Exercise of Rights of Data Subjects, and Risk Management. The DPO also played a key role in the shift to remote work arrangements in the PLDT Group as the country coped with the COVID-19 pandemic. The DPO provided guidance to business and support units to ensure that Company and stakeholders’ data remain protected. Blackout Periods/Restriction on Trading of Shares. PLDT’s Code of Ethics prohibits directors, officers and employees from dealing in the Company’s shares when in possession of material non-public information about and involving the Company. During blackout periods, dealing in Company shares by directors, officers, and employees in possession of material non-public information is prohibited and in any exceptional case, prior notice to the Company should be made of any such dealing, in accordance with the Company’s Policy on Blackout Period/Restriction on Trading of Shares. To enable the timely filing of the required disclosures to the SEC and the PSE, Directors and officers are enjoined to report to the Company their dealings in the Company’s shares, within three trading days from the date of the transaction, regardless of whether such dealings were effected during or outside the blackout periods. 2020 BLACKOUT PERIODS (RESTRICTED PERIODS FOR TRADING IN COMPANY SHARES) PLDT Results/Report Results/Report Release Date Blackout/Restricted Period Q1 Q2 Q3 Full Year May 7 August 6 November 5 March 4, 2021 April 22 – May 11 July 22 – August 10 October 21 – November 9 February 2 – March 8, 2021 49 PLDT 2020 ANNUAL REPORT PLDT DIRECTORS’ AND OFFICERS’ SHAREHOLDINGS IN THE COMPANY IN THE YEAR 2020 The Company has clear policies regarding the trading by directors, officers and employees in the Company’s own securities intended to align their interests with those of shareholders and other stakeholders. Please see discussion on Restriction on Trading of Shares. Trading in Company shares by directors and officers in the year 2020 are shown in the table below. NUMBER OF COMPANY SHARES1 Starting Balance2 Acquired Disposed Ending Balance3 A. Directors 1. Manuel V. Pangilinan 267,611 17,300 2. Manuel L. Argel, Jr.4 3. Helen Y. Dee 4. Ray C. Espinosa 5. James L. Go 6. Shigeki Hayashi 7. Junichi Igarashi 8. Bernido H. Liu 9. Artemio V. Panganiban 10. Maria Lourdes C. Rausa-Chan 11. Albert F. Del Rosario 12. Pedro E. Roxas 13. Marife B. Zamora B. Officers 1. Alfredo S. Panlilio 2. Anabelle L. Chua 3. Victorico P. Vargas 4. Marilyn A. Victorio-Aquino 5. Gina Marina P. Ordoñez 6. Mary Rose L. Dela Paz 7. Mario G. Tamayo7 8. Alejandro O. Caeg 9. Juan Victor I. Hernandez 10. Menardo G. Jimenez, Jr. 11. June Cheryl A. Cabal-Revilla9 12. Florentino D. Mabasa, Jr.10 13. Katrina L. Abelarde 14. Marco Alejandro T. Borlongan 15 25,0806 21,743 776,154 1 1 1 1,771 6,500 142,410 231 5 3,000 20,578 9,545 0 3,234 2,480 6,5758 6,165 2,385 4,894 5,090 1,861 2,236 2,273 10,000 100,000 3,600 3,300 12,505 3,800 3,800 11,630 2,933 1,200 3,150 3,450 3,150 3,300 1,800 2,275 1,200 380 1,330 1,026 420 1,102 630 420 284,911 1 25,080 31,743 876,154 1 1 1 5,371 9,800 142,410 231 5 15,505 24,378 12,965 10,300 5,141 3,260 6,575 9,315 4,733 8,044 8,390 3,661 3,881 3,053 1 Includes directly and indirectly owned shares in the Company. Changes in shareholdings were disclosed in the Statements of Changes in Beneficial Ownership of Securities filed with the Securities Exchange Commission and Philippine Stock Exchange, Inc. and posted on the Company website at PLDT Investor Relations>Shareholder Information>Beneficial Ownership. 2 As at December 31, 2019 3 As at December 31, 2020 4 Mr. Argel was elected as director on January 28, 2020, replacing Ms. Aurora C. Ignacio who resigned on January 28, 2020 5 As of date of election as director 6 Includes 2,780 shares for the account of Michelle Y. Dee-Santos and 245 shares under the name of Helen Y. Dee, both under PCD Nominee Corporation and 21,957 shares owned by Hydee Management Corporation. As chairperson and president of Hydee Management Corporation, Ms. Dee may exercise the voting right in respect of the 21,957 shares of Hydee Management Corporation. 7 Appointed as Senior Vice President/Technology Group Head effective January 1, 2021 50 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS15. Mary Julie C. Carceller 16. Bernard H. Castro 17. Marisa V. Conde11 18. Joan A. De Venecia-Fabul 19. Gil Samson D. Garcia 20. Joseph Ian G. Gendrano 21. Ma. Criselda B. Guhit 22. Leah Camilla R. Besa-Jimenez 23. Princesita P. Katigbak 24. Albert Mitchell L. Locsin 25. Leo I. Posadas 26. Dale M. Ramos 27. Angel T. Redoble12 28. Aileen D. Regio 29. Luis S. Reñon 30. Bernadette C. Salinas13 31. Emiliano R. Tanchico, Jr.14 32. Victor Y. Tria 33. Jude Michael H. Turcuato15 34. Melissa V. Vergel de Dios 35. John Henri C. Yanez 36. Catherine Y. Yang16 37. Maria Cecilia H. Abad 38. Minerva M. Agas 39. Benedict Patrick V. Alcoseba 40. Cecille M. Alzona17 41. Elizabeth S. Andojar 42. Roy Victor E. Añonuevo 43. Tito Rodolfo B. Aquino, Jr. 44. Mitchie M. Arcaina 45. Jerameel A. Azurin 46. Francis A. Bautista18 47. Rafael M. Bejar 48. Dianne M. Blanco19 49. Wilson S. Bobier 50. Luis Gregorio D. Casas NUMBER OF COMPANY SHARES1 Starting Balance2 Acquired Disposed Ending Balance3 0 0 1,125 0 3 932 2,194 2,700 955 1,523 2,185 1,945 1,1058 1,272 975 6698 3,759 1,387 08 2,235 643 08 308 1,125 879 2668 590 440 390 0 804 7678 950 208 442 190 1,200 375 1,200 1,200 500 1,200 520 1,375 1,300 1,100 1,200 1,200 1,200 1.200 1,200 500 1,900 500 500 575 500 170 500 250 500 500 170 270 131 1,170 420 420 420 420 385 420 2,120 420 420 175 175 59 175 249 0 0 2,325 244 33 1,712 2,694 3,480 1,475 2,478 3,065 2,660 1,105 2,052 55 669 4,539 2,167 0 3,435 968 1,900 633 1,625 1,454 266 1,090 551 890 250 1,304 767 1,275 20 612 211 8 As of date of appointment as officer 9 Retirement effective on the close of business hour on December 31, 2020 10 Separated as First Vice President effective February 1, 2021 but will continue to serve as Assistant Corporate Secretary for the unexpired term of his appointment to said office or until the Board elects his successor to said office 11 Separated from service effective February 1, 2021 12 Appointment as First Vice President effective February 16, 2020 was confirmed by the Board in a meeting held on August 6, 2020 13 Appointment as Vice President effective January 1, 2020 was confirmed by the Board in a meeting held on August 6, 2020. Promoted to First Vice President effective November 5, 2020 14 Separated from service effective January 1, 2021 15 Appointment as First Vice President effective July 16, 2020 was confirmed by the Board in a meeting held on November 5, 2020 16 Appointment as First Vice President effective July 31, 2020 was confirmed by the Board in a meeting held on August 6, 2020 17 Appointment as Vice President effective November 1, 2020 was confirmed by the Board in a meeting held on November 5, 2020 18 Promoted to Vice President effective November 5, 2020 51 PLDT 2020 ANNUAL REPORT51. Jose Michael Vincent G. Co20 52. Ma. Monica M. Consing 53. Branden B. Dean21 54. Gene S. de Guzman 55. Aniceto M. Franco III 56. John John R. Gonzales 57. Leonard A. Gonzales22 58. Silverio S. Ibay, Jr. 59. Gary F. Ignacio 60. Marven S. Jardiel 61. Alexander S. Kibanoff 62. Javier C. Lagdameo 63. Armando Dodjie T. Lim18 64. Czar Christopher S. Lopez 65. Paolo Jose C. Lopez 66. Ma. Carmela F. Luque 67. Melanie A. Manuel14 68. Ronaldo David R. Mendoza14 69. Loreevi Gail O. Mercado23 70. Oliver Carlos G. Odulio 71. Jonston Prince W. Ong24 72. Carlo S. Ople 73. Charles Louis L. Orcena 74. Serviliano L. Padiz, Jr.18 75. Raymond A. Racho 76. Eduardo H. Rafuson14 77. Ricardo C. Rodriguez14 78. Genaro C. Sanchez 79. Maria Christina C. Semira 80. Ma. Merceditas T. Siapuatco 81. Arvin L. Siena 82. Carla Elena A. Tabuena 83. Ma. Magdalene A. Tan18 84. Patrick S. Tang 85. Jecyn Aimee C. Teng 86. Milan M. Topacio 87. Radames Vittorio B. Zalameda NUMBER OF COMPANY SHARES1 Starting Balance2 Acquired Disposed Ending Balance3 08 0 08 807 458 803 08 795 608 944 944 1,125 5328 1,120 1,100 1,125 345 345 08 984 08 828 0 4998 406 390 5,712 5,398 644 795 988 862 08 1,408 327 346 432 458 500 458 500 500 500 500 500 650 850 400 510 500 500 500 685 500 170 500 500 500 500 500 500 500 500 170 500 160 175 160 175 175 175 175 175 175 175 175 59 0 298 0 1,132 756 1,128 0 1,295 1,108 1,444 1,444 1,775 532 1,970 1,500 1,635 670 670 0 1,484 0 1,338 325 499 576 890 5,712 5,723 969 1,295 1,488 1,362 0 1,908 652 457 932 19 Appointment as Vice President effective January 16, 2020 was confirmed by the Board in a meeting held on November 5, 2020 20 Appointment as Vice President effective August 1, 2020 was confirmed by the Board in a meeting held on November 5, 2020 21 Apointment as Vice President effective May 1, 2020 was confirmed by the Board in a meeting held on August 6, 2020 22 Appointment as Vice President effective September 1, 2020 was confirmed by the Board in a meeting held on November 5, 2020 23 Appointment as Vice President effective October 16, 2020 was confirmed by the Board in a meeting held on November 5, 2020 24 Appointment as Vice President effective March 16, 2020 was confirmed by the Board in a meeting held on August 6, 2020 52 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSTRAINING AND EDUCATION The Company provides orientation and continuous training for its Board, Management and employees. New directors are briefed by the Chairman, President and CEO, Chief Financial Officer, Corporate Secretary and Chief Governance Officer on the Company’s structure, business, operating and financial highlights, responsibilities of the Board and its Committees and how each operates. At or before such orientation, copies of all relevant corporate documents, including the Company’s Articles of Incorporation, By-laws, Annual Report, CG Manual, Code of Ethics, and the Charters of the Board Committees are furnished to new directors. Updates on business and governance policies and requirements, and new laws applicable or relevant to the Company and its business are presented in Board meetings or furnished to directors. For the continuous training of its directors and officers, the Company conducts an Annual In-House Corporate Governance Enhancement Session (ACGES) that provides an opportunity for leadership to engage in discussion with international and local experts on relevant topics, including emerging trends and technologies, new laws, and best business practices. In 2020, the Company’s first online ACGES was conducted on the topics: (i) How to Lead Courageously During a Crisis; and (ii) Lessons from a Pandemic: the MPIC Hospital Group Covid-19 Experience and Best Practices. It included panel discussions among directors, officers, and resource persons; and was attended by directors and key officers of Philippine- based affiliate companies of First Pacific Company, Ltd. and select guests from the business academe. In PLDT, the ACGES was attended by all members of PLDT’s Advisory Board/Committee; all Directors, not otherwise exempt from governance training;4 the Audit Committee Advisor; ECC’s and GNSC’s non-voting member; and 75 of the Company’s Officers. For employees, the Company conducts orientation and periodic training sessions on Company policies, including corporate governance policies; skills building; and wellness and development, supplemented by appropriate communication materials and feedback mechanisms. In addition to orientation sessions on corporate governance policies for new employees, in 2020, the Company also conducted online corporate governance refresher courses for newly promoted PLDT management employees, officers, and Network Field Service employees. Additionally, employees who were unable to complete the corporate governance eLearning refresher course in the previous year were enjoined to complete the same in 2020. Due to the predominantly remote work environment in 2020, education and training were mostly conducted online and supplemented by the production and dissemination of relevant communication materials, including information on CGO Helplines, remote access to CG Policies, guidance on COI disclosure, anti- corruption, Gifts receiving, Company principles and screensavers on good governance and sustainability. MONITORING AND EVALUATION PLDT monitors and evaluates the effectiveness of its corporate governance through the following, among other initiatives: (i) an annual performance self-assessment conducted by the Board and the Board Committees, (ii) the periodic review of the effectiveness of the implementation of the Company’s CG policies, (iii) the annual compliance evaluation conducted by Management, and other tools employed to monitor the implementation of the CG policies. In 2020, an annual self-assessment was conducted by the Board to evaluate its performance as the Board, as well as each Board Committee, and the individual directors. The process, which also includes an evaluation of the performance of the CEO and Management, enables the Board to identify strengths and areas for improvement and to elicit individual director’s feedback and views on the Company’s strategy, performance, and future direction. The members of the Board and the Board Committees accomplish their respective self- assessment questionnaires for this purpose. The Board and Board Committees’ assessment questionnaires contain the following criteria based on leading practices and principles on good governance: (i) for the Board – Structure, Leadership, Roles and Responsibilities, Internal Control, Code of Conduct and other CG Policies, Independence, Stewardship, Resources, Internal Governance, Reporting and Disclosure, and Shareholder and other Stakeholder Engagement; (ii) for the Board Committees – the respective purposes, functions and duties of the Committees; and (iii) for individual directors – the specific duties and responsibilities of a director. On the other hand, the Board Committees’ self-assessment questionnaire contain the following criteria: performance, compliance, and committee governance. The report on the results of the assessment process for the 2019 performance period was submitted to the directors in 2020. Prospectively, the annual self-assessment shall, as practicable, be supported by an external facilitator every three years and allow for a feedback mechanism for stockholders, to conform with the recommendation in the CG Code for PLCs. In 2020, PLDT monitored and evaluated its compliance with CG rules through a cross-functional evaluation system whereby the heads of the various business and support groups/units conduct an evaluation of their group/unit’s CG compliance. The periodic process uses an evaluation questionnaire consisting of the governance standards set forth in the CG Code for PLCs which are applicable and relevant to their respective functions. The results of the evaluation conducted by the heads are consolidated as input to the Company’s Integrated Annual Corporate Governance Report (I-ACGR) submitted to the SEC and PSE. PLDT likewise confirmed its compliance with its CG Manual which contains relevant provisions of the CG Code for PLCs and certain corporate governance standards under the US Securities Exchange Act and NYSE Listed Company Manual. In compliance with the respective memorandum circulars of the SEC and the PSE, PLDT filed its I-ACGR on July 27, 2020, within the extended deadline of the SEC for submission due to the Covid-19 pandemic. PLDT has incorporated CG standards in the performance evaluation of employees and has included violations of CG rules as a cause for disqualification from incentives and rewards in its Policy on Employee Qualification for Incentives and Rewards. As applicable, PLDT conducts employee surveys to gain insights into the effectiveness of its CG programs and initiatives. Valuable information is additionally obtained and analyzed from the results of and feedback from our education activities, reports from business partners, customer complaints, reported violations and other sources of relevant information. 4 Mr. James L. Go has been granted by the SEC permanent exemption from its corporate governance training requirement. 53 PLDT 2020 ANNUAL REPORT STAKEHOLDER ENGAGEMENT In fulfilling our commitments to our stakeholders, we are guided by our Code of Ethics and Corporate Social Responsibility Statement (CSR Statement). The CSR Statement is the articulation of our belief that helping to improve the overall well-being of the Filipino people is an integral part of our business. The CSR Statement enumerates the broad responsibilities that PLDT assumes as it operates and conducts its business. A copy of the CSR Statement is found at the PLDT website through the QR code: Pursuant to the CSR Statement, the PLDT Group’s social programs leverage its communications and digital services and the volunteer spirit of its employees to implement projects in education, agriculture, livelihood, health, arts, disaster preparedness, the environment, digital tourism, sports, internet safety and digital wellness that aim to help Filipinos change their lives for the better. The Company’s CSR programs and activities are reported in the Company’s Sustainability Report that is released annually since 2016. Investors/Shareholders. PLDT respects, promotes and upholds shareholders’ rights such as, the right to vote; preemptive right; the right to inspect corporate books and records, including minutes of Board meetings and stock registries, subject to certain conditions; right to timely receive relevant information, whether in printed or digital form; right to dividends; and appraisal right. The Board promotes transparency and fairness in the conduct of the annual and special stockholders’ meetings of the Company and explores and implements steps to reduce excessive or unnecessary costs and other administrative impediments to stockholders’ participation in annual and special stockholders’ meetings. Stockholders are encouraged to personally attend such meetings, raise questions and exercise their voting rights. Online voting and participation by remote communication was made available to all stockholders in 2020, consistent with the Revised Corporation Code and related SEC issuances and in keeping with Covid-19 precautions. Within a reasonable period of time before the meeting, stockholders are apprised of their right to appoint a proxy in case they are unable to personally attend such meetings, and give their voting instructions in the proxy form provided. Relevant meeting materials such as the Notice, Agenda, Information Statement and Annual Report are made available to the stockholders in printed or digital form and through the Company’s website to enable them to make a sound and informed judgment on all matters tabled for their consideration or approval. In 2020, pursuant to SEC guidelines, the Company’s Information Statement, Proxy Form, Management Report/Annual Report, SEC Form 17-A and SEC Form 17-Q were posted on the Company’s website instead of physical delivery or distribution to the stockholders. The Company held its Annual Stockholders’ Meeting in virtual format on June 9, 2020, with holders of 92.86% of total outstanding shares of Common, Voting Preferred, and Non-Voting Serial Preferred Stocks as of the record date, April 13, 2020 present or represented by proxy in the meeting. To view the Minutes of the 2020 PLDT Annual Stockholders’ Meeting, please access this QR code: The Board ensures the disclosure and filing of reports with the SEC, PSE and, as applicable, US SEC and NYSE and posting on the Company’s website, immediately after the meeting or the day after the meeting, of all significant actions taken in the meeting and the votes obtained for each of such actions. The Board ensures that material information and transactions that could potentially affect the market price of the Company’s shares are timely disclosed and filed with the SEC, PSE and as applicable, with the US SEC and NYSE. In this regard, information on, among other matters, earnings results, acquisition or disposal of significant assets, off balance-sheet transactions, related party transactions, Board membership changes, shareholdings of directors and officers and any changes thereto, and remuneration of directors and officers are promptly and accurately disclosed. Disclosures/ organizational announcements for the year 2020 may be accessed on the Company’s website through the QR code: 54 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS • Community Quarantine Programs: free NDD & speedboost, payment extension & installment payment In solidarity with customers who grappled with the effects of the pandemic in 2020, the Company offered a payment deadline extension for accounts with overdue balances and proactively implemented a six-month installment payment scheme for accumulated bills. Additionally, customers were given a speedboost of at least 25mbps to support an increase of online activities, including work from home arrangements, remote learning, business and recreation activities. For a limited time, customers were likewise provided free NDD calls to keep them connected during the local community quarantine. • Installation complaints reporting facility To strengthen accountability among business partners, an email address, subsequently converted to an online form was created to cater to reports by existing and prospective customers of alleged illegal installations by contracted partners. This led to the imposition of penalties on the erring vendors and the improvement of checks & balances within the organization. • Sales and Service Center (SSC) online booking through virtual appointment An online booking facility was made available in PLDT Home’s website to give customers the option to conveniently book appointments and facilitate live online transactions through video chat with SSC frontliners. This initiative significantly boosted online appointments for typically in-person transactions to support the well- being and safety needs of customers and employees. For customers who still preferred in-person transactions, health and safety protocols were strictly enforced in stores nationwide. • PLDTHOMEBILL SMS channel launch An SMS Help Channel was launched in November 2020 to cater to simple billing and payment-related concerns of customers. The SMS channel may be used by customers to quickly access information on their outstanding balance, to request for a copy of their e-Statement of Account and to get instructions on how to pay their bills using some of our authorized online payment channels. PLDT regularly conducts analysts and investors’ briefings to discuss financial and operating results for the second quarter and full year, and teleconferences to discuss first and third quarter results. Our Investor Relations Center also conducts regular dialogues with our investors. Shareholders who wish to raise matters or concerns relating to the business of the Company, their investments and rights may elevate such matters to the Corporate Secretary, the Investor Relations Officer, concerned units of PLDT’s Management or the Board. The Company’s dividend policy provides a regular dividend payout rate of 60% of Core Earnings Per Share as regular dividends. The dividend policy takes into account: (i) the elevated levels of capital expenditures to build a robust, superior network to support the continued growth of data traffic; (ii) plans to invest in new adjacent businesses that will complement the current business and provide future sources of profits and dividends; and (iii) management of cash and gearing levels. In the event that no investment opportunities arise, the Company may consider the option of returning additional cash to shareholders in the form of special dividends or share buybacks. PLDT was able to pay out approximately 60% of its core earnings for the year 2020. Information on PLDT’s 2020 Dividend Declarations is available through the QR code: Customers. PLDT serves a broad range of customers from individuals, residential, micro, small and medium enterprise (SME) and large enterprise, including the public sector. PLDT strives to satisfy its customers’ requirements and expectations regarding innovative products and services, quality of service, pricing, application process, service provisioning process, repair and restoration service and the billing process. In 2020, in order to address the heightened needs of customers amid the pandemic, the following projects were initiated: • PLDT Home Facebook Messenger Digital Assistant launch The PLDT Home FB Messenger chatbot was launched in May to provide self-care solutions to prospective and existing customers, including requests for bill access, bills payment, restricted account reconnection, service issue reports, paperless billing enrollment, subscription application or upgrade, among others. • Improvements to PLDT Facebook Page and PLDT Cares Facebook Page launch The PLDT Cares FB page was launched in July to house customer education materials on common billing, payment, troubleshooting and account management topics in the form of instructional videos, text, and graphics. Service advisories for scheduled and emergency outages were posted on the PLDT Facebook page (PLDT Inc.’s official corporate Facebook page) to advise affected customers and the public. • Digital adoption push for paperless billing and bills payment via online channels In keeping with Covid-19 precautions, in March 2020, the Company promoted digital channels for customers to receive and pay their bills, including auto-charge arrangements with partner banks to ensure continued use of our products and services. 55 PLDT 2020 ANNUAL REPORT implemented to enable a standard performance management system across PLDT and Smart. Supporting the objective of shaping a high-performing culture is a Total Rewards Program that is merit-based and addresses both short-term and long-term transformation goals. Compensation and incentives are determined on the bases of performance and accomplishment. Two major rewards programs are in place; the Short-term Incentive Plan (STIP) and the Transformation Incentive Plan (TIP). To ensure that we enable the best integrated telco strategy, PLDT relentlessly pursues its agenda on succession management. Working with our Leaders on present requirements is an urgent groundwork activity while creating a talent pipeline and ecosystem for the next horizon of products and services. This includes the development and implementation of capability building initiatives, series of targeted hiring in local and global markets and the revival of the Management Associate program. A digital environment requires a strong learning culture. This is supported by PLDT’s corporate university that utilizes all learning modalities for the best reach and an internal career opportunity marketplace to enable talent mobility for all its employees. PLDT organizes engagement programs that prioritize the well-being of employees and strengthen the quality of work relationships. These allow employees to engage in a broad range of character-developing and relationship building activities through CSR, sports, special interest groups, and family-oriented programs. Formal channels for employee feedback are made available through engagement surveys conducted at regular intervals to give employees the opportunity to share their perspectives about relevant Company matters. Digital and social platforms are optimized for employee crowdsourcing and internal communication. Management-led digital dialogues provide opportunity for employees across various parts of the country to directly interact and voice out their suggestions and recommendations to top management. Regulators. PLDT operates within relevant legislative and regulatory frameworks and complies with the requirements thereunder which are applicable to it. We participate in public policy forums, conferences and hearings conducted by governmental and regulatory agencies, as well as legislative hearings relative to initiatives and proposed legislation in the fields of Information and Communication Technology (ICT), corporate governance and labor-related matters. Our “Internet for All” advocacy and investments in network infrastructure and technologies to provide the widest coverage and superior quality of service at affordable prices are aligned with and support the Government’s objectives set out in the Public Telecommunications Policy Act. Suppliers. PLDT aspires to maintain mutually beneficial relationships only with like principled suppliers that uphold PLDT’s core values of fairness, accountability, integrity and transparency in their own businesses. Suppliers are required to undergo an accreditation process before they engage in business with PLDT. Among the criteria for accreditation are financial and technical capability, compliance with applicable laws, including those pertaining to industrial relations, environment, health and safety, and intellectual property rights. The Company’s purchases, as a general rule, are made on the basis of competitive bidding among accredited and qualified suppliers. • PLDT Home Express Upgrade hotline 170 launch The PLDT Home Express Upgrade hotline is an agentless hotline that allows eligible customers to easily upgrade the speed of their internet plan without need of an aftersales hotline, visiting our SSCs or applying through the website. Upgrading through this hotline only takes a few digital steps, no documents are required for submission and the upgrade process only takes 24 hours to complete. • Proactive migration to Fibr To ensure that customers enjoy the best quality of internet connection, the Company is continuously expanding the roll-out of the latest fiber-to-the- home (FTTH) technology in various areas nationwide. Customers are offered an upgrade to a Fibr plan as soon as facilities become available. The upgrade is free and will ensure better internet experience. Employees. PLDT respects the dignity, rights, and interests of its employees, among which are the right to self- organization, safe and healthy working conditions, professional development, and community-building social activities. The value of employees to the business is underscored by the inclusion of people and culture transformation among the shared Company goals. Identifying, developing, and retaining talent is a core responsibility and accountability of every leader. Anchored on the foundational premise that the Company’s treatment of its employees will influence how employees, in turn, deliver service to customers, PLDT embeds employee experience at the core of all people initiatives, programs, and processes. Three principles guide the employee experience design: leader- led, employee-owned, digitally-enabled. The vision for digital market leadership is hinged on a high-performing culture, and PLDT continuously engages employees to aspire for this goal by aligning groups and individuals to the Company’s shared goals and ensuring that the Company’s performance management system is performance-driven and coaching centered. A digital platform has been 56 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS Creditors. In accordance with our Code of Ethics, we protect the rights of our creditors by publicly disclosing all material information, such as earnings results and risk exposures relating to loan covenants. Our disclosure controls and procedures also include periodic reports to our creditors such as our latest certified financial statements, no default certification, and certification on compliance with financial ratio limits. PLDT’s credit has been rated at investment grade by the three major international credit rating agencies as of yearend 2020. Communities. In the spirit of service to Filipino communities, the PLDT Group continues to build on its CSR programs by leveraging on its expertise, technological strength, and corporate culture. Serving the community is an integral part of making technology accessible to all. With our technology and services, PLDT and Smart are well-positioned to provide much needed assistance to communities. Our role and core competence is that of an ‘enabler’- providing the technical skills, technologies and resources in key areas where PLDT and Smart have chosen to help develop communities: education, livelihood, health, arts, disaster preparedness and response, environment, agriculture, internet safety and digital wellness. ADVOCACY AND NETWORKING PLDT supports the advocacy for better governance and ethics in business as manifested in the Company’s policy against corruption and bribery set forth in its Code of Ethics and reinforced in specific policies such as the Policy on Gift- Giving Activities, Gifts Policy, Supplier/Contractor Relations Policy, Corporate Governance Guidelines for Suppliers, which prohibit bribery or acts which may be construed as bribery involving third parties in business dealings with the Company. These policies are implemented through anti-corruption programs and measures such as internal controls, training and communication, whistleblowing system, third party due diligence, and support for and participation in multi-sectoral anticorruption initiatives to eliminate graft and corruption. On February 19 and 20, 2020, PLDT Chairman and President & CEO, Mr. Manuel V. Pangilinan and Smart President and CEO, Mr. Alfredo S. Panlilio joined over 1,000 international leaders when they signified their respective companies’ commitments to the United Nations Global Compact (UNGC) by signing the “Statement from Business Leaders for Renewed Global Cooperation”. PLDT and Smart are registered under the UNGC as the only Philippine telco participants, a tier higher than signatories limited to local engagement. Participants actively engage with the UNGC at the global level to integrate into their companies’ operations, the organization’s Ten Principles on human rights, labor, environment and anti-corruption. PLDT continues to work with institutions and organizations engaged in programs and advocacy efforts in the field of corporate governance, compliance and business ethics. As a sponsoring partner member of the Ethics and Compliance Initiative (ECI), PLDT has access to ECI’s vast online library on governance and related topics and opportunities to attend and participate in discussion groups and training sessions, as well as interact with other governance and ethics professionals around the world. In the process, PLDT is able to benchmark its governance practices against those of leading companies. Locally, PLDT is a premium member of the Integrity Initiative, Inc. and a member of the Good Governance Advocates and Practitioners of the Philippines (GGAPP). PLDT also participates in the activities of the Institute of Corporate Directors (ICD) and its sister institute in the public sector, the Institute for Solidarity in Asia (ISA). “ PLDT is committed to making the UNGC principles part of company strategy, culture, and day-to-day operations, and to engage in collaborative projects in order to attain the UN Sustainable Development Goals (UNSDGs).” - Manuel V. Pangilinan, PLDT Chairman and President & CEO “ The UNGC Statement for Renewed Global Cooperation underscores the commitment of PLDT and Smart to help in nation-building. We are guided by the business basics, espoused in the UNGC Principles, which are essential in creating shared value for business and society.” - Alfredo S. Panlilio, Smart President and CEO and concurrent PLDT Chief Revenue Officer 575757 57 PLDT 2020 ANNUAL REPORT THE PLDT GROUP ENTERPRISE RISK MANAGEMENT 5858 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSWe invest in the future. “Though it’s good to be physically present to meet our customers, whenever we sell our plants online, however, we are able to sell most of what we post which generates better income for us and more convenient for our buyers compared to having a physical store set up.” - Dan Saclangan Agriculturist and Living Gifts Nursery Owner 59 59 PLDT 2020 ANNUAL REPORTThe PLDT Group’s commitment to the proactive management of existing and emerging risks is reinforced by the Group Enterprise Risk Management Department (GRMD). The GRMD, under the leadership of the Chief Risk Management Officer (CRMO), develops and manages a comprehensive integrated risk management program that is implemented across all levels of the organization, with the goal of managing the Group’s risks to an acceptable level, so as to enhance opportunities, reduce threats, and thus create even more value for the business and its stakeholder Group Enterprise Risk Management Department (GRMD) The PLDT Group’s commitment to the proactive management of existing and emerging risks is reinforced by the Group Enterprise Risk Management Department (GRMD). The GRMD, under the leadership of the Chief Risk Management Officer (CRMO), develops and manages a comprehensive integrated risk management program that is implemented across all levels of the organization, with the goal of managing the Group’s risks to an acceptable level, so as to enhance opportunities, reduce threats, and thus create even more value for the business and its stakeholders. In 2019, the GRMD engaged an external industry consultant with the aim of updating its policies and processes and helping navigate an ever-changing risk landscape. The consultant conducted an assessment of GRMD’s current ERM practices and proposed solutions on how PLDT could best move forward with improving its ERM practice as a whole. As a result of this engagement, an updated ERM framework was adopted and related processes and policies were redeveloped accordingly. Enhancements include a revised approach to determining Risk Appetite and the adoption of the 3 Lines of Defense Model - a regulated framework designed to facilitate an effective risk management system by clarifying roles of management, various risk control and compliance oversight functions and Internal Audit. To aid in the implementation of the updated ERM Framework, a new Governance, Risk, and Compliance (GRC) platform was developed to improve the collection of risk information and enhance risk analysis/monitoring capabilities. Implementation of the restructured policies, processes, and tools began in late 2020 with full implementation expected by the end of 2021. These enhancements will help the GRMD to meet regulatory requirements, develop an intelligent risk culture within the company, promote active risk assessment and monitoring, and facilitate real-time reporting of risks. The PLDT Group Risk Management Philosophy Statement The PLDT Group adopts a risk philosophy that recognizes risks as integral to its business thereby committing itself to managing these risks with the aim of attaining its business objectives, thus enhancing shareholder value. The PLDT Group operates in a complex and dynamic business environment which gives rise to a variety of risks that can be both threat and opportunity. Recognizing that these risks are an integral part of its business, the PLDT Group is committed to managing its overall risk exposure in a systematic way and in such a manner that supports its strategic decision-making process. Accordingly, the PLDT Group employs a comprehensive, integrated risk management program, effected across all levels of the organization, with the goal of identifying, analyzing and managing the Group’s risks to an acceptable level, so as to enhance opportunities, reduce threats, and thus sustain competitive advantage. The PLDT Group believes that an effective risk management program will contribute to the attainment of objectives by PLDT and its subsidiaries, thus creating value for the business and its stakeholders. 60 The Enterprise Risk Management Framework and Process The GRMD promulgates and encourages the adoption of a standard risk evaluation process focused on the need to properly identify, analyze, evaluate, treat and monitor risks that may affect the achievement of business objectives. The ERM process implemented is based on the International Standard of ISO 31000. ISO 31000: RISK MANAGEMENT PROCESS C O M M U N I C A T E A N D C O N S U L T ESTABLISH THE CONTEXT IDENTIFY RISKS ANALYZE RISKS EVALUATE RISKS TREAT RISKS R I S K A S S E S S M E N T M O N I T O R I N G A N D R E V I E W The implementation of the ERM process ensures that high- priority risks are well understood and effectively managed across all functions and units within the PLDT Group. Risk Committee The Risk Committee assists the PLDT Board in overseeing Management’s adoption and implementation of a system for identifying, assessing, monitoring and managing key risk areas. The committee reviews Management’s reports on the Company’s major risk exposures as well as Management’s plans and actions to minimize, control or manage the impact of such risks. The GRMD reports to the PLDT Risk Committee on a quarterly basis and to the PLDT Board of Directors on a semi-annual basis on developments with regard to the Group’s risk management activities. PLDT Group Top Risks The GRMD, under the leadership of the Chief Risk Management Officer, promulgates and encourages the adoption of a standard risk evaluation process focused on the need to properly identify, analyze, evaluate, treat and monitor risks that may affect the achievement of business objectives. The ERM process being implemented is based on the International Standard of ISO 31000. A risk assessment exercise was undertaken by the Top Management Team to identify and prioritize the most important risks affecting the PLDT Group for 2020. The top risks, listed in no particular order of criticality, were: (i) prolonged pandemic (ii)customer experience issues and reputational risks; (iii) delivery of transformation initiatives; (iv)competitive situation and economic conditions; (v)rapid speed of disruptive innovations and new technologies; (vi) regulatory changes/ political scrutiny; (vii)cyber security incidents and data privacy breaches; (viii) people risks; (ix) inability to design and prepare future mode of operations; and (x) regular occurrence of natural disasters. Treatment strategies have been developed, and mitigation initiatives have been put in place. Risk management activities are continuously monitored and reviewed to ensure that critical risks are appropriately addressed across the organization. HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS “ We support the frontline offices in the pandemic response--the City Health in Lapu-Lapu and the Lapu-Lapu City Hospital. We do planning, logistical support, and transportation of patients every day. We support them through humanitarian and relief assistance. Effective communication with the aid of technology will help address this problem.” - Nagiel Bañacia, Officer-in-Charge of the Lapu-Lapu City Disaster Risk Reduction Management Office “ Several students needed to transfer as their parents lost income, we couldn’t afford to offer online classes, and we weren’t prepared for modular learning with only four teachers left. Central Visayan Institute and Foundation-Dynamic Learning Program, Smart, and PSF has helped us press on even in the direst of circumstances. We are amazed at how our teachers have set higher standards for themselves, and how our students continue to rise up to the challenges and perform well.” - Olivia Sabacan-Payba, Principal Echelon Development School in Altavas, Aklan 61 6161 “ I’m glad I can rely on Smart’s LTE network for speed and impeccable quality: I get the latest IATF advisories and guidelines online to help the Emergency Management Team formulate programs and policies to better protect our co-employees.” - Paul Labis Smart post-paid subscriber PLDT 2020 ANNUAL REPORTBOARD OF DIRECTORS Manuel V. Pangilinan, 74, Filipino He has been a director of PLDT since November 24, 1998. He was appointed as Chairman of the Board of Directors of PLDT after serving as its President and Chief Executive Officer from November 1998 to February 2004. Since January 1, 2016, he has held the position of President and Chief Executive Officer of PLDT, and served as President and Chief Executive Officer of Smart Communications, Inc. (“Smart”) until August 7, 2019. Mr. Pangilinan is the Chairman of the Governance, Nomination and Sustainability, Executive Compensation, Technology Strategy, and Data Privacy and Information Security Committees of the Board of Directors of PLDT. He also serves as Chairman of Metro Pacific Investments Corporation (“MPIC”), Manila Electric Company (“Meralco”), PXP Energy Corporation and Philex Mining Corporation, and Vice Chairman of Roxas Holdings, Inc., all of which are PSE-listed companies, and of several subsidiaries or affiliates of PLDT or MPIC, including, among others, Smart, Digitel Mobile Philippines, Inc. (“DMPI”), Digital Telecommunications Phils, Inc., (“Digitel”) PLDT Communications & Energy Ventures, Inc., ePLDT, Inc., Beacon Electric Assets Holdings Inc., Philex Petroleum Corporation, Manila North Tollways Corporation, Maynilad Water Services Corporation, Landco Pacific Corporation, Metro Pacific Hospital Holdings, Inc., Medical Doctors Incorporated (Makati Medical Center), Colinas Verdes Corporation (Cardinal Santos Medical Center), Davao Doctors Incorporated, Riverside Medical Center Incorporated, Our Lady of Lourdes Hospital and Asian Hospital Incorporated. He is also the Chairman of MediaQuest Holdings Inc., TV5 Network, Inc. and PLDT-Smart Foundation. He founded First Pacific Company Limited (“First Pacific”), a Hongkong Stock Exchange-listed company, in 1981 and serves as its Executive Chairman, Managing Director and Chief Executive Officer. Within the First Pacific Group, he also holds the position of President Commissioner of P.T. Indofood Sukses Makmur Tbk, the largest food company in Indonesia. Outside the First Pacific Group, Mr. Pangilinan is the Chairman of the Board of Trustees of San Beda College and Amateur Boxing Association of the Philippines, a governing body of amateur boxers in the country, and the Chairman Emeritus of the Samahang Basketbol ng Pilipinas. He is also the Chairman of Philippine Business for Social Progress, the largest private sector social action organization made up of the country’s largest corporations and a Co-Chairman of the Philippine Disaster Resilience Foundation, Inc., a non-stock, non-profit foundation established to formulate and implement a reconstruction strategy to rehabilitate and rebuild areas devastated by floods and other calamities, and of the US-Philippine Business Society, a non-profit society which seeks to broaden the relationship between the United States and the Philippines in the areas of trade, investment, education, foreign and security policies and culture. He has received numerous prestigious awards including the Business Icon Gold Award for having greatly contributed to the Philippine economy through achievements in business and society by Biz News Asia magazine (2008), Global Filipino Executive of the Year for 2010 by Asia CEO Awards, and Philippines Best CEO for 2012 by Finance Asia. He graduated cum laude from the Ateneo de Manila University, with a Bachelor of Arts Degree in Economics. He received his Master’s Degree in Business Administration from Wharton School of Finance & Commerce at the University of Pennsylvania, where he was a Procter & Gamble Fellow. He was conferred a Doctor of Humanities Degree (Honoris Causa) by the San Beda College (2002), Xavier University (2007), Holy Angel University (2009) and Far Eastern University (2010). Manuel L. Argel, Jr., 71, Filipino He has been a director of PLDT since January 28, 2020. He is a member of the Social Security Commission, the Governing Board of the Social Security System (“SSS”) and shares the responsibility for the governance of the SSS in terms of providing policy directions, monitoring, and overseeing management actions. He is member of the Risk Management and Investment and Audit Committees of the SSC. He also performs quasi-judicial functions through decisions rendered on cases involving SSS coverage, benefits, contributions and penalties. He started his law career as an associate of private full-service law firms until he formed his own law firm in 1981. While in private practice, Retired Judge Argel was accredited in 1995 as a Voluntary Labor Arbitrator of the National Conciliation and Mediation Board. He also served as President of the Integrated Bar of the Philippines (Ilocos Chapter) from 1993 to 1995, Provincial Secretary of the National Citizens’ Movement for Free Elections, Chairman of the Ilocos Sur Local Amnesty Board, and member of the People’s Assistance Development Action Center, Inc. His stint in the government started when he was elected as a member of the Sangguniang Bayan of Vigan City in 1980. In 2008, he received the Legislator’s award given by the City Government of Vigan in recognition of his accomplishments and contributions as former legislator of Vigan City. In 1995, he was appointed as Regional Trial Court (RTC) Judge of Laoag City, and served as Executive Judge from 2005 to 2007 and Presidential Assistant for Region 1 in the Philippine Judges Association. He retired from the Judiciary in 2015. His record of public service as a judge was marked by a very high degree of competence, integrity, dedication and independence. He obtained his Bachelor of Arts in Philosophy and Bachelor of Laws Degrees from San Beda College. MANUEL V. PANGILINAN MANUEL L. ARGEL, JR. HELEN Y. DEE ALBERT F. DEL ROSARIO 6262 62 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSHelen Y. Dee, 77, Filipino She has been a director of PLDT since June 18, 1986. She is the Chairperson of EEI Corporation, House of Investments, Petro Energy Resources Corporation, Rizal Commercial Banking Corporation, all of which are PSE-listed companies. She is the Chairperson, Vice Chairperson or a director of several companies engaged in banking, insurance and real property businesses. Ms. Dee received her Master’s Degree in Business Administration from De La Salle University. Albert F. Del Rosario, 81, Filipino He has been a director of PLDT since July 11, 2016 and is a member of the Technology Strategy Committee of the Board of Directors of PLDT. He was the former Secretary of Foreign Affairs of the Philippines from February 2011 to March 2016 and also served as Philippine Ambassador to the United States of America from October 2001 to August 2006. Prior to entering public service, he was on the Board of Directors of various firms. His business career for over four decades has spanned the insurance, banking, real estate, shipping, telecommunications, advertising, consumer products, retail, pharmaceutical and food industries. Ambassador del Rosario is the Chairman of Philippine Stratbase Consultancy, Inc., Gotuaco del Rosario Insurance Brokers, Inc., Stratbase ADR Institute, Inc., Citizens for Promoting Human Rights, Inc. and a director of Metro Pacific Investments Corporation and Rockwell Land Corporation (both PSE-listed companies), Indra Philippines, Inc., Metro Pacific Tollways Corporation, Two Rivers Pacific Holdings Corporation, Metro Pacific Resources, Inc., Metro Pacific Holdings, Inc., Metro Pacific Asset Holdings, Inc., Philippine Telecommunications Investment Corporation, Enterprise Investments Holdings, Inc. and Asia Insurance (Phil.) Corp. He is also a trustee of the Carlos P. Romulo Foundation for Peace & Development and Philippine Cancer Society, Inc. and a member of Asia Society Global Council and an Advisory Board of CSIS Southeast Asia Program and Metrobank Foundation, Inc. He received numerous awards and recognition for his valuable contributions to the Philippines and abroad. In September 2004, he was conferred the Order of Sikatuna, Rank of Datu, by H.E. President Gloria Macapagal-Arroyo for his outstanding efforts in promoting foreign relations for the Philippines and the Order of Lakandula with a Rank of Grand Cross (Bayani) for acting as Co- Chair of the 2015 APEC in December 2015. He was a recipient of the EDSA II Presidential Heroes Award in recognition of his work in fostering Philippine democracy in 2001 and the Philippine Army Award from H.E. President Corazon Aquino for his accomplishments as Chairman of the Makati Foundation for Education in 1991. He was awarded as 2013 Professional Chair for Public Service and Governance by Ateneo School of Government and the Metrobank Foundation, 2014 Management Man of the Year by Management Association of the Philippines, 2016 Outstanding Government National Official by Volunteers Against Crime and Corruption (VACC), 2016 Asia CEO Award as Life Contributor, and Manuel L. Quezon Gawad Parangal as Quezon City’s Most Outstanding Citizens for 2016. He was elevated to the Xavier Hall of Fame in New York City in 2006. He received the AIM Washington Sycip Distinguished Management Leadership Award in 2011, Doctor of Laws (Honoris Causa) for “principled commitment to democracy, integrity and the rule of law both at home and around the globe” conferred by the College of Mount Saint Vincent, New York City in September 2015, Rotary Club Makati West’s First “Albert del Rosario Award” (Tungo sa Makatarungang Pamumuhay) in August 2016, Outstanding Leadership in Diplomatic Service by Miriam College Department of International Studies and Philippine Tatler’s Diamond Award both in November 2016. On September 25, 2018, he was conferred the Honorary Degree of Doctor for Humanities by the Ateneo de Manila University for staunchly defending the sovereignty and territorial integrity of the country, raising the standards of economic diplomacy and proactively ensuring the safety and security of overseas Filipinos everywhere. Ambassador del Rosario graduated from New York University with a Bachelor of Science Degree in Economics. Ray C. Espinosa, 65, Filipino He has been a director of PLDT since November 24, 1998, and is a member of the Technology Strategy and Data Privacy and Information Security Committees of the Board of Directors of PLDT. He is Senior Advisor to the President and CEO of PLDT since January 28, 2019. He was PLDT’s Chief Corporate Services Officer from December 2016 until January 28, 2019, and previously served as President and CEO of ePLDT, Inc. and its subsidiaries from July 2000 until April 2010 and as President and CEO of TV5 Network Inc. and Cignal TV, Inc. from December 2009 until May 2013. In June 2013, he joined First Pacific Company Limited as Associate Director. Atty. Espinosa is also the President and CEO of Meralco. He is a director of Roxas Holdings Inc., an independent director of Lepanto Consolidated Mining Company and chairman of its Audit Committee, and an independent director of Maybank Philippines Inc. and chairman of its Risk Management Committee. He is the chairman of the Philstar Group of Companies and BusinessWorld Publication Corporation. He is a trustee of the PLDT-Smart Foundation Inc. and the Beneficial Trust Fund of PLDT. He has a Master of Laws degree from the University of Michigan School of Law and a Bachelor of Laws degree from the Ateneo de Manila University School of Law, and is a member of the Integrated Bar of the Philippines. He was a partner at SyCip Salazar Hernandez & Gatmaitan from 1982 to 2000, a foreign associate at Covington and Burling (Washington, D.C.) from 1987 to 1988, and a law lecturer at the Ateneo de Manila University School of Law from 1983 to 1985 and 1989. He placed first in the 1982 Philippine Bar Examinations. James L. Go, 82, Filipino He has been a director of PLDT, Inc. (PLDT) since November 3, 2011. He is a member of the Technology Strategy and Risk Committees and Advisor of the Audit Committee of the Board of Directors of PLDT. He is also the Chairman of JG Summit Holdings, Inc. (JGSHI) and Cebu Air, Inc. Mr. Go holds the position of Chairman and Chief RAY C. ESPINOSA JAMES L. GO SHIGEKI HAYASHI JUNICHI IGARASHI 6363 63 PLDT 2020 ANNUAL REPORTExecutive Officer of Oriental Petroleum and Minerals Corporation. He is also the Chairman Emeritus of Universal Robina Corporation, Robinsons Land Corporation, JG Summit Petrochemical Corporation, and JG Summit Olefins Corporation. He is the Vice Chairman of Robinsons Retail Holdings, Inc. and a Director of the Manila Electric Company and Meralco Powergen Corporation. He is also the President and Trustee of the Gokongwei Brothers Foundation, Inc. Mr. James L. Go obtained his Bachelor of Science Degree and Master of Science Degree in Chemical Engineering from Massachusetts Institute of Technology, USA. Shigeki Hayashi, 53, Japanese He has been a director of PLDT since August 10, 2017. He is assigned as the Senior Vice President, Corporate Planning, NTT Ltd Japan Corporation since NTT Group’s global reorganization in 2019. He handles corporate strategy and planning of the global business previously operated by NTT Communications Corporation (“NTT Com”). His previous positions in NTT Com were Vice President, Global Business (2016 to 2019), Director-Planning, Global Business (2012 to 2016), Senior Manager-Overseas Business Management, Global Business (2007 to 2012) and Senior Manager-Tax Accounting Division, Accounts and Finance Department (1999 to 2004). He was the Deputy General Manager-Corporate Management Department of NTT Europe Ltd. from 2004 to 2007. Mr. Hayashi obtained his Bachelor of Economics Degree from Osaka University. Junichi Igarashi, 57, Japanese He has been a director of PLDT since August 9, 2018. He is a member of the Board of Directors of PLDT and Chief Operating Advisor. He is also a member of the Governance, Nomination and Sustainability, Executive Compensation, Technology Strategy, Audit, Risk, and Data Privacy and Information Security Committees. From 2016 to 2018, he served as a Director of NTT DOCOMO, Smart Life Business Division in Tokyo, Japan. He developed and sold a language translation & travel mobile application (Jspeak: Japanese – 10 languages) for inbound travelers to Japan. From 2006 to 2016, he represented NTT DOCOMO as a GSMA PSMC (Product & Service Management Committee) member and exchanged strategic views about mobile industry with top 25 largest MNOs. On top of that, from 2013 to 2016, he was assigned in London, UK as General Manager for DOCOMO Europe, Inc. (a subsidiary of NTT DOCOMO) and worked with GSMA executives in GSMA London HQ. From 2006-2013, he served as a Director of NTT DOCOMO, Global Business Division in Japan. He conducted the PoC of WiMax Service in Canada (with Primus Communications, Inc.) and in Singapore (with InterTouch, Inc.). Prior to that, he served as a Director of Business Development and Head of Japanese Corporate Sales Division from 2003-2006 in StarHub, Singapore. Mr. Igarashi received his Master’s Degree in Mechanical Engineering from Tokyo University and Master’s Degree in Business Administration from the University of Michigan Ann Arbor, USA. Bernido H. Liu, 58, Filipino He has been an independent director of PLDT since September 28, 2015 and is an independent member of the Audit, Governance, Nomination and Sustainability, Executive Compensation, Risk, and Data Privacy and Information Security Committees of the Board of Directors of PLDT. He is the Chairman and Chief Executive Officer of GOLDEN ABC, Incorporated. (“GABC”), a fashion retail company which creates and sells its own clothing, personal care and accessory lines marketed and retailed under a dynamic portfolio of well-differentiated proprietary brands. He is the Group Chairman of LH Paragon Incorporated, a business holdings company which has under its management GABC and other companies in various industries, namely, Matimco Incorporated, Oakridge Realty Development Corporation, Basic Graphics Incorporated, Essentia Medical Group Incorporated, Red Logo Lifestyle Inc., Greentree Food Solutions, Inc., and a director of GABC International Pte Limited (SG) and GABC Singapore Retail Pte Ltd. He is a trustee for Children’s Hour Philippines, and until March 27, 2018, was an independent member of the Board of Trustees of the PLDT-SMART Foundation, Inc. Mr. Liu graduated with a Bachelor of Science Degree in Architecture from the University of San Carlos, Cebu, and completed the Executive Education Owner/President Management Program of the Harvard Business School. Over the years, Mr. Liu and GABC under his leadership have been recognized by different award- giving bodies. Awards include, among others, the Agora Award for Outstanding Achievement in Entrepreneurship from the Philippine Marketing Association, Ten Outstanding Young Men for Entrepreneurship, Global Retailer of the Year from the Philippine Retailers Association and the Department of Trade and Industry, and the ASEAN Business Award of Excellence for Priority Integration Sector in Retail. Artemio V. Panganiban, 84, Filipino He has been an independent director of PLDT since April 23, 2013 and is serving as an independent member of the Audit, Governance, Nomination and Sustainability, and Executive Compensation Committees, and Chairman of the Risk Committee, of the Board of Directors of PLDT. He was appointed as Lead Independent Director effective March 21, 2019. He served as an independent member of the Advisory Board and an independent non-voting member of the Governance and Nomination Committee of the Board of Directors of PLDT from June 9, 2009 to May 6, 2013. Currently, he is also an independent director of Meralco, Petron Corporation, First Philippine Holdings Corporation, Metro Pacific Investments Corporation, Robinsons Land Corporation, GMA Network, GMA Holdings, and Asian Terminals, Inc., and a regular director of Jollibee Foods Corporation, all of which are PSE-listed companies, as well as Senior Adviser of Metropolitan Bank and Trust Company, a member of the Advisory Council of the Bank of the Philippine Islands and an adviser of Double Dragon Properties, Corp. He BERNIDO H. LIU ARTEMIO V. PANGANIBAN MA. LOURDES C. RAUSA-CHAN PEDRO E. ROXAS MARIFE B. ZAMORA 64 6464 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSis also Chairman of the Board of Trustees of the Foundation for Liberty and Prosperity, and of the Board of Advisers of Metrobank Foundation, Inc., a trustee of Tan Yan Kee Foundation and Claudio Teehankee Foundation, President of the Manila Metropolitan Cathedral-Basilica Foundation, a member of the Advisory Board of World Bank (Philippines), Chairman-Emeritus of the Philippine Dispute Resolution Center, Inc., Chairman of the Philippine National Committee of the Asean Law Association, a member of the Permanent Court of Arbitration in The Hague, Netherlands, and a column writer of the Philippine Daily Inquirer. Hon. Panganiban served the Supreme Court of the Philippines for more than 11 years, first as Associate Justice (October 10, 1995 to December 20, 2005) and later, as Chief Justice (December 21, 2005 to December 6, 2006) during which he sat concurrently as Chairperson of the Presidential Electoral Tribunal, Judicial and Bar Council and Philippine Judicial Academy. He has received over 250 awards in recognition of his role as jurist, practicing lawyer, professor, civic leader, Catholic lay worker and business entrepreneur, including “The Renaissance Jurist of the 21st Century” given by the Supreme Court on the occasion of his retirement from the Court. Hon. Panganiban graduated cum laude from Far Eastern University with a Bachelor of Laws Degree in 1960, and was conferred a Doctor of Laws Degree (Honoris Causa) by the University of Iloilo (1997), Far Eastern University (2002), University of Cebu (2006), Angeles University (2006) and Bulacan State University (2006). He was co-founder and past president of the National Union of Students of the Philippines. Ma. Lourdes C. Rausa-Chan, 67, Filipino She has been serving as Corporate Secretary and Chief Governance Officer since November 1998 and March 2008, respectively. She has been a director of PLDT since March 29, 2011 and will continue to serve as such until the expiration of her term immediately prior to the Annual Meeting. She was the Head of Corporate Affairs and Legal Services until November 30, 2018. She is a director and the Corporate Secretary of ePLDT, PLDT Global Investments Holdings, Inc., PLDT Communications and Energy Ventures, Inc., ACeS Philippines Cellular Satellite Corporation and Mabuhay Investments Corporation, and also serves as Corporate Secretary of several other subsidiaries of PLDT, and of PLDT-Smart Foundation Inc. and Philippine Disaster Resilience Foundation, Inc. Prior to joining PLDT, she was the Group Vice President for Legal Affairs of Metro Pacific Corporation and the Corporate Secretary of some of its subsidiaries. Ms. Rausa-Chan received her Bachelor of Arts Degree in Political Science and Bachelor of Laws Degree from the University of the Philippines. Pedro E. Roxas, 65, Filipino He has been a director of PLDT since March 1, 2001 and qualified as an independent director since 2002. He is the Chairman of the Audit Committee and serves as an independent member of the Risk, Governance, Nomination and Sustainability and Executive Compensation Committees of the Board of Directors of PLDT. He is the Chairman of Roxas Holdings, Inc. and Roxas and Company, Inc., and an independent director of Meralco, BDO Private Bank and CEMEX Holdings Phil. Inc., which are reporting or PSE-listed companies. He is also the Chairman, President or a director of companies or associations in the fields of agri-business, sugar manufacturing and real estate development including Brightnote Assets Corporation, Club Punta Fuego, Inc., and Philippine Sugar Millers Association, and a member of the Board of Trustees of Philippine Business for Social Progress and Fundacion Santiago (where he is also the President) and Roxas Foundation, Inc.. Mr. Roxas received his Bachelor of Science Degree in Business Administration from the University of Notre Dame, Indiana, U.S.A. Marife B. Zamora, 68, Filipino She has been a director of PLDT since November 14, 2016. She is the Chairman of the Board of Willis Towers Watson Insurance Brokers, Inc., and a member of the Board of Trustees of the Asian Institute of Management and ABS-CBN Foundation Inc. She is the President of the UP Sigma Delta Phi Alumnae Association and co-founded the Filipina CEO Circle. She was Chairman of Convergys Philippines until December 2018, Managing Director for Asia Pacific, Europe, Middle East, Africa for Convergys Corporation, and served as the first Country Manager of Convergys Philippines, setting up its first contact center in 2003 and leading its growth as the country’s largest private employer. Prior to this, Ms. Zamora served as Managing Director of Headstrong Phils. She was also with IBM Philippines where she held a number of sales, marketing and management positions during her 18-year tenure with the company. She is the 3rd woman President and the 68th President of the Management Association of the Philippines. Honors conferred on Ms. Zamora include the Asia CEO Awards 2011 Global Filipino Executive of the Year, the ‘Go Negosyo’ Woman STARpreneuer Award 2012, and the 100 Most Influential Filipino Women in the World 2013. Ms. Zamora received her Bachelor of Arts Degree (major in Mathematics & History) from the College of the Holy Spirit and studied in the University of the Philippines and the Wharton School of the University of Pennsylvania. ADVISORY BOARD COMMITTEE OSCAR S. REYES ROBERTO R. ROMULO BENNY S. SANTOSO ORLANDO B. VEA CHRISTOPHER H. YOUNG 65 6565 PLDT 2020 ANNUAL REPORT EXECUTIVE OFFICERS Alfredo S. Panlilio, 58, Filipino He has been the PLDT Group Chief Revenue Officer since July 1, 2019 and the President and CEO of Smart Communications, Inc. since August 8, 2019. He is also an Advisor of the Data Privacy and Information Security Committee of the Board of Directors of PLDT. He is the President and CEO of Digitel, DMPI and Talas Data Intelligence, Inc., and the Chairman, President and CEO of Asia Netcom Philippines Corporation, Digitel Crossing, Inc., and Mabuhay Investments Corporation, the Chairman and President of Telesat, Inc., ACeS Philippines Cellular Satellite Corporation, and Smart Broadband, Inc., the President of MVP Rewards and Loyalty Solutions, Inc., Airborne Access Corporation, I-Contacts Corporation, PLDT Communications and Energy Ventures, Inc., and Primeworld Digital Systems, Inc., and the Chairman of ePLDT, Inc., ePDS, Inc., IP Converge Data Services, Inc., IPC Rack It Data Center, Inc., Bonifacio Communications Corporation, PLDT Clark Telecom, Inc., , PLDT Subic Telecom, Inc., ABM Global Solutions, Inc., Curo Tecknika, Inc., PLDT-Maratel, Inc., and PLDT-Philcom, Inc. He also serves as Director of Cignal TV, Inc., Asean Telecom Holdings Sdn. Bhd., PLDT Global Corporation, Chikka Holdings Limited, Connectivity Unlimited Resources Enterprises, Inc., Wifun, Inc., and Vega Group of Companies, Independent Director of CEMEX Holdings Philippines, Inc., Board Member of Makati Central Estate Association, Inc. (MACEA) and Trustee of PLDT-Smart Foundation, Inc., Asian Carrier Conference, Inc., Kapampangan Development Foundation, and Philpop Musicfest Foundation, Inc. He is the President of Samahang Basketbol ng Pilipinas, Inc., MVP Sports Foundation, Inc., First Vice President of Philippine Olympic Committee, Second Vice President of FIBA Asia Central Board, Treasurer of National Golf Association of the Philippines and Manila Golf Country Club, Inc., Philippine Basketball Association Governor for the Meralco Bolts, and a member of the Management Association of the Philippines. Prior to joining PLDT and Smart, Mr. Panlilio was Meralco’s Senior Vice President and Head of Customer Retail Services and Corporate Communications from September 2010 to June 2019 championing innovation and transformation for the customers. He served as Chairman of Radius Telecoms, Inc., e-Meralco Ventures Inc., Paragon Vertical Corporation, Powersource First Bulacan Solar, Inc. and Pure Meridian Hydropower Corporation. He was also a Vice Chairman of Aclara Meters Philippines, Inc., and director of CIS Bayad Center Inc., Corporate Information Solutions, Inc., Customer Frontline Solutions, Inc., Meralco Energy, Inc., MRAIL Inc., Meralco Industrial Engineering Services Corporation, Comstech Integration Alliance, Inc. and MSpectrum, Inc. He was a trustee of One Meralco Foundation, Inc. and Meralco Power Academy, and Associate Board Member of Semiconductor and Electronics Industries in the Philippines, Inc. He was the 2013 CEO Excel Awardee of the International Association of Business Communicators Philippines. He was one of seven finalists in the Rising Star (individual) category of the PLATTS Global Energy Awards 2015 held in New York, and has received multiple local and international awards for customer management and business communication excellence. Mr. Panlilio holds a Bachelor of Science Degree in Business Administration (Computer Information Systems) from California State University-San Francisco State University and obtained his Master in Business Administration at J. L. Kellog School of Management of Northwestern University/ the Hongkong University of Science and Technology. Alejandro O. Caeg, 61, Filipino He is the Head of PLDT Smart Consumer Sales Group and a member of the Smart Management Committee. Currently, he is a director of PLDT Global Corporation and was its CEO from 2010 to 2017, a director of MVP Rewards & Loyalty Solutions from 2019, and a director of Inspiro Philippines from 2018. He previously served as Head of Wireless Consumer Sales and Distribution of Smart from 2016 to 2017, Head of International & Carrier Business from 2009 until 2016, and PLDT’s representative to the ITW Global Leaders Forum as well as to the Pacific Telecommunications Council. He was Smart’s representative to the Conexus Mobile Alliance (one of Asia’s largest cellular roaming alliances), where he was also designated as its Deputy Chairman until 2012 and eventually as Conexus Chairman until 2014. Prior to joining PLDT in 2009, he was appointed by PT Smart Telecom Tbk (Indonesia) as its Chief Commercial Strategy Officer from July to December 2008 and as Chief Commercial Officer from 2006 to 2008. Since joining Smart in 1993, he has held various sales, marketing and customer experience-related positions including that of Group Head of Sales and Distribution (2003- 2005), Group Head of Customer Care and National Wireless Centers (1998-2001) and Marketing Head of International Gateway Facilities and Local Exchange Carrier (1997-1998). He also served as CEO of Telecommunications Distributors Specialist, Inc. (TSI) in 2002 and as Chief Operations Adviser of I-Contacts Corporation (Smart’s Call Center subsidiary) from 2001 to 2002. Mr. Caeg graduated with a Bachelor’s Degree in AB Applied Economics and obtained MBA credits from De La Salle University. Anabelle L. Chua, 60, Filipino Chief Financial Officer and Chief Risk Management Officer of the PLDT Group, is also concurrently the Chief Financial Officer of Smart. She holds directorships in several subsidiaries of PLDT, Smart, Digitel, as well as in Voyager Innovations and PayMaya Philippines. She is a member of the Board of Directors and Audit Committee of the Philippine Stock Exchange and Securities Clearing Corporation of the Philippines. She is also a member of the Board of Directors of Meralco, where she chairs the Finance Committee and is a member of the Audit, Risk and Nomination and Governance Committees. Further, Ms. Chua is a director of the Philippine MANUEL V. PANGILINAN ALFREDO S. PANLILIO ALEJANDRO O. CAEG ANABELLE L. CHUA 66 6666 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSTelecommunications Investment Corporation and a member of the Board of Trustees of the PLDT-Smart Foundation and PLDT Beneficial Trust Fund (“PLDT-BTF”), and a director of the companies owned by PLDT-BTF. Ms. Chua has over 30 years of experience in the areas of corporate finance, treasury, financial control and credit risk management and was a Vice President at Citibank, N.A. where she worked for 10 years prior to joining PLDT in 1998. She graduated magna cum laude from the University of the Philippines with a Bachelor of Science Degree in Business Administration and Accountancy. Mary Rose L. Dela Paz, 49, Filipino She is Chief Procurement Officer and was PLDT-Smart Program Director for the Business Transformation Office (Technology, Transformation Program Management) from August 2016 until June 2019. She also served as Smart’s Vice President for Supply Chain from April 2009 to May 2014, and for Program Management in Technology Services and New Business Streams from 2000 to 2009. She held various positions in the field of marketing in Smart when she joined the company in 1998. Ms. Dela Paz obtained her Bachelor of Arts Degree in Economics from the University of the Philippines. Gil Samson D. Garcia, 49, Filipino He was appointed Officer-in-Charge of Financial Reporting and Controllership effective January 1, 2021, and is concurrently the Group Chief Financial Officer (CFO) of ePLDT since May 2015 which includes ePLDT, Inc., Curo Teknika (Curo), ABM Global Solutions Inc.(AGS), IP Converge Data Services, Inc.(IPC), IPC RACK I.T. Data Center, Inc.(RACK IT), and ePDS, Inc. (ePDS). He has been the CFO of MVP Rewards & Loyalty Solutions, Inc. (MRSI) since September 2018, and director of ePDS since June 2019. He served as CFO of Curo, AGS, IPC and RACK IT from May 2015 to August 2019. He joined PLDT in February 2007 as Assistant Vice President for Financial Reporting and Controllership and Head of Revenue and Cash Accounting (RevCash) until March 2010, and as Vice President until June 2010. His role was expanded as Head of Revenue Management and Cash (RevManCash) from July 2010 to October 2018, and was promoted to First Vice President in November 2018. Prior to joining PLDT, he was a Senior Director of the Business Risk Services Group of SGV & Co. / Ernst & Young until January 2007, where he started his career in November 1992, gaining a wide-range of experiences in various industries, here and abroad, both for public and private sectors, in external audit, internal audit, finance / accounting, business process review and advisory, Sarbanes- Oxley (SOX) 404 / 302 evaluation & consultancy, risk management, corporate governance, and business fraud investigation, and fraud prevention and detection, among others. Mr. Garcia graduated Cum Laude from the University of Santo Tomas with a Bachelor of Science Degree in Commerce, Major in Accounting. He is a Certified Public Accountant (CPA), and a globally Certified Internal Auditor (CIA) and Certified Fraud Examiner (CFE). He completed the Management Development Program in Asian Institute of Management School of Executive Education in cooperation with PLDT & Smart in August 2016, and the High Potential Program / Leadership Talent Assessment facilitated by Development Dimensions International in October 2020. Juan Victor I. Hernandez, 47, Filipino Head of Enterprise Business Group of PLDT and Smart, the segment that serves the small, medium, large and top tier enterprises in the Philippines, concurrently serves as the President & CEO of ePLDT, as well as its subsidiaries namely, ABM Global Solutions, Inc., ePDS, Inc. and Curo Teknika, Inc. He is the President of Bonifacio Cable Corporation, director and head of the enterprise business of PLDT Global Corporation, with presence in the United States, United Kingdom, Hongkong, Singapore and Australia. Mr. Hernandez is a trustee of IT and Business Processing Association of the Philippines (IBPAP), Chairman of the Board of Asian Carriers Conference Inc., director of ACASIA Communications Sdn Bhd, and Board Adviser of the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI). He obtained his Bachelor of Science Degree in Agricultural Economics from the University of the Philippines and Master’s Degree in Business Management from the Asian Institute of Management. Menardo G. Jimenez, Jr., 58, Filipino Head of Consumer Business – Home, joined PLDT in December 2001 and served in various capacities as Corporate Communications and Public Affairs Head, Retail Business Head, Human Resources Group Head and Fixed Line Business Transformation Office Head. He holds directorships in several subsidiaries of PLDT. Prior to joining PLDT, he had a stint at GMA Network, Inc., where he served as head of a creative services and network promotions. Mr. Jimenez received his AB Economics Degree from the University of the Philippines. Gina Marina P. Ordoñez, 59, Filipino She is Chief People Officer for PLDT and Smart Communications where she drives the effective implementation of people strategies, employee services, HR business partnering and centers of excellence. She ensures a people-centric and quality-driven environment across the company through optimized organizational structures, policies, processes and analytics. She participated in the development and execution of the PLDT Group Talent Management strategy, ensuring alignment with present and future business requirements. Ms. Ordoñez joined the PLDT Group in 2016 under the Business Transformation Office (BTO) and later assumed the Smart People Group Head role before moving back to BTO in 2017 to head Process and Quality Management. Under the MVP Group of Companies, she was appointed Vice President for Service Operations and Quality Management at Makati Medical Center. She also served as Head of Customer Experience for Consumer Banking in Citibank where she held various leadership positions for 16 years and where she was certified Six Sigma Black Belt professional. She is a registered Corporate Coach and Quality Management Consultant who is certified to run coaching clinics. She completed her professional training from Coach U and is currently a member of the International Coach Federation. She has over 20 years of experience in People, Process and Quality Management leadership roles. MARY ROSE L. DELA PAZ GIL SAMSON D. GARCIA JUAN VICTOR I. HERNANDEZ MENARDO G. JIMENEZ LEO I. POSADAS 6767 6767 PLDT 2020 ANNUAL REPORTLeo I. Posadas, 54, Filipino He is Treasurer of the PLDT Group and concurrent Treasury Head of PLDT and Smart, handles the treasury management and treasury operations of several companies under the PLDT Group. He is a director and Treasurer of PLDT Global Investments Holdings, a director and Vice President for Treasury of Mabuhay Investments Corporation, and the Treasurer of the Vega Telecom group. He is the Chief Financial Officer of PLDT Global Corporation. He is also the Treasurer of Smart, ePLDT, Digital Telecommunications, Digitel Mobile, PLDT-Smart Foundation and several other subsidiaries of PLDT and Smart. Prior to joining PLDT in September 2000, he served as Treasury Manager of Total Petroleum Philippines, and as Manager for Foreign Exchange Management of San Miguel Corporation. Mr. Posadas received his Bachelor of Arts Degree in Economics and Bachelor of Science Degree in Commerce Major in Management of Financial Institutions from De La Salle University. June Cheryl A. Cabal-Revilla, 47, Filipino 47 years old, Group Controller, Chief Sustainability Officer of the PLDT Group and the Chief Financial Officer of Smart, PLDT-Smart Foundation, Philippine Disaster Resilience Foundation and in a number of subsidiaries and affiliates of PLDT, Smart & ePLDT until December 31, 2020. She is also the Founding Chairman of Gabay Guro, President of The Outstanding Young Men Foundation, and an Appointed Member of the Financial Reporting Standards Council of the Philippines. Prior to joining PLDT in June 2000 as a Certified Public Accountant and an Executive Trainee in the Finance Group, she was a Senior Associate in the Business Audit and Advisory Group of SGV & Co. She received her Bachelor of Science Degree in Accountancy from De La Salle University and Master’s Degree in Business Management Major in Finance from Asian Institute of Management (“AIM”) where she is an outstanding alumni and a Triple A awardee by the Federation of AIM Alumni Associations, Inc. She also finished her Executive Program in the Stanford Graduate School of Business. With her sterling achievements and advocacies, she received global recognitions here and abroad and frequently invited as speaker by several international organizations. Mario G. Tamayo, 61 Filipino He is Technology Group Head and concurrent Network Planning and Engineering Head, has over 26 years experience in the areas of network planning and engineering, and network build and operations. He was the Senior Vice President and Head of Network Planning & Engineering of Smart and concurrent Officer-in-Charge of Technology of PLDT Group and Smart prior to his appointment in PLDT. He started his career as Shift Engineer for Switch Operations of Eastern Telecommunications Philippines, Inc. in June 1982 and stayed on until December 1994. In January 1995, he joined Smart as Manager for International Gateway Facility, and subsequently held various management roles which include mobile core network planning, build and operations, operations and maintenance of wireless access networks and transmission networks. Mr. Tamayo graduated with a Bachelor of Science Degree in electronics & Communications Engineering from the University of Santo Tomas. Victorico P. Vargas, 69, Filipino Business Transformation Office Head, is an Associate Director of First Pacific since January 2016, overseeing First Pacific Group businesses operating in the Philippines and its region, with particular focus on leading the Business Transformation of PLDT. Prior thereto, Mr. Vargas was the President and Chief Executive Officer of Maynilad Water Services, Inc. since August 2010. He joined PLDT in 2000 as its Human Resources Group Head and through his stay at PLDT got involved in managing the PLDT Business Transformation Office, Asset Protection and Management Group, and the PLDT International Carrier Business. He has worked in senior roles at Union Carbide, Pepsi Cola, Colgate Palmolive and Citibank, NA (both in Manila and in Southeast Asia). He is a director of Meralco, Smart Communications Inc., PLDT Global Inc., PLDT Subic Telecom, Inc. and PLDT Clark Telecom, Inc., President and Member of the Board of Trustees of the First Pacific Leadership Academy, Trustee of the MVP Sports Foundation, PLDT-Smart Foundation, Inc. and Ideaspace Foundation and President of the PhilPop Music Fest Foundation. Mr. Vargas was educated at Ateneo de Manila and University of Santo Tomas with a Bachelor of Science Degree in Psychology. Marilyn A. Victorio-Aquino, 65, Filipino Chief Legal Counsel, joined First Pacific Company Limited (“First Pacific”) in 2012 as Assistant Director. She holds various positions in Philippine subsidiaries and affiliates of First Pacific and Metro Pacific Investments Corporation (an affiliate of First Pacific), including President of First Coconut Manufacturing Inc., and director of Philex Mining Corporation, PXP Energy Corporation and Lepanto Consolidated Mining Company, which are PSE-listed companies, Philex Gold Philippines, Inc., Silangan Mindanao Mining Company, Inc. and Maynilad Water Services, Inc. Prior to joining First Pacific, Atty. Victorio-Aquino retired as a Senior Partner at SyCip Salazar Hernandez and Gatmaitan Law Offices (SyCipLaw). She joined SyCipLaw in 1980 and was admitted as Partner in 1989. Her practice areas were mining and natural resources, investments, mergers and acquisitions, construction and infrastructure, and project finance and securities, where she acted as legal counsel and represented local and foreign clients in respect of some of the largest projects and transactions in the Philippines. Atty. Victorio-Aquino graduated cum laude (class salutatorian) from the University of the Philippines with a Bachelor of Laws Degree in 1980, placed second in the Philippine Bar Examinations and was admitted to the Philippine Bar in 1981. She obtained her Bachelor of Arts Degree from the University of Santo Tomas. She is a member of the International Pacific Bar Association, Women Lawyers Circle, Federacion International de Abogadas, Philippine Bar Association and Integrated Bar of the Philippines. GINA MARINA P. ORDOÑEZ JUNE CHERYL A. CABAL-REVILLA Retired as of December 31, 2020 MARIO G. TAMAYO VICTORICO P. VARGAS MARILYN A. VICTORIO-AQUINO 686868 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALSTOP MANAGEMENT TEAM MANUEL V. PANGILINAN ALFREDO S. PANLILIO ANABELLE L. CHUA MARY ROSE L. DELA PAZ GINA MARINA P. ORDOÑEZ MARIO G. TAMAYO VICTORICO P. VARGAS MARILYN A. VICTORIO-AQUINO KEY ADVISORS JOACHIM HORN RAY C. ESPINOSA ORLANDO B. VEA JUNICHI IGARASHI MASAHIKO TSUCHIYA 69696969 PLDT 2020 ANNUAL REPORT HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS OFFICERS Manuel V. Pangilinan Chairman of the Board President and Chief Executive Officer Alfredo S. Panlilio Chief Revenue Officer Anabelle L. Chua SVP, Chief Financial Officer and Chief Risk Management Officer Dale M. Ramos FVP and Network Build Head Gene S. De Guzman VP and Enterprise Service Assurance Management-I Head Angel T. Redoble FVP and Chief Info Security Officer and Cyber Security Operations Head John John R. Gonzales VP and Enterprise Digital Solutions Engagement and Technical Services Head Aileen D. Regio FVP and Regulatory and Strategic Affairs Head Leonard A. Gonzales VP and Property, Facilities and Security Management Head Victorico P. Vargas Business Transformation Office Head Victor Y. Tria FVP and Enterprise Revenue Group 1 Head Ma. Lourdes C. Rausa-Chan Corporate Secretary and Chief Governance Officer Jude Michael H. Turcuato FVP and Sports Head Luis S. Reñon FVP and Internal Audit and Fraud Risk Management Head Bernadette C. Salinas FVP and BTO Process Innovation Head Silverio S. Ibay Jr. VP and Spend Management Accounting Head Gary F. Ignacio VP and Enterprise Fixed Business Solutions Head Marven S. Jardiel VP and Enterprise Customer Operations Management Head Alexander S. Kibanoff VP and Learning and Development Head Marilyn A. Victorio-Aquino SVP and Chief Legal Counsel Gina Marina P. Ordoñez SVP and Chief People Officer Mary Rose L. Dela Paz SVP and Chief Procurement Officer Mario G. Tamayo SVP and Technology Group Head Alejandro O. Caeg SVP, Consumer Sales Head Juan Victor I. Hernandez SVP and Enterprise Business Head Menardo G. Jimenez Jr. SVP and Consumer Business – Home Head Leo I. Posadas FVP and Treasurer Gil Samson D. Garcia FVP and OIC-Financial Reporting and Controllership Katrina L. Abelarde FVP and International and Carrier Business and Strategic Partnership & Corporate Development Head Marco Alejandro T. Borlongan FVP and Consumer Business Operations Management Head Mary Julie C. Carceller FVP, Program Management - CRO Bernard H. Castro FVP and Consumer Business Fulfillment Management Head Joan A. De Venecia-Fabul FVP and Deputy Chief Legal Counsel Gil Samson D. Garcia FVP, OIC-Financial Reporting and Controllership Sector Joseph Ian G. Gendrano FVP and Deputy Data Privacy Officer and Core Enterprise Business Solutions Head Victor Emmanuel S. Genuino II1 FVP and Senior BTO Officer Ma Criselda B. Guhit FVP and Tax Management and Advocacy Head Leah Camilla B. Jimenez FVP and Data Privacy and Information Security Governance Head Princesita P. Katigbak FVP and National Key Accounts Group Head Albert Mitchell L. Locsin FVP and Enterprise Revenue Group 2 Head Florentino D. Mabasa Jr.2 Assistant Corporate Secretary Melissa V. Vergel De Dios FVP and Investor Relations Head Javier C. Lagdameo VP and CRM Conglomerate 1 Head John Henri C. Yanez FVP and HOME Marketing Head Joseph Henry S. Lebumfacil3 VP and Enterprise Resource Planning Head Catherine L. Yap-Yang FVP and Group Corporate Communications Officer Maria Cecilia H. Abad VP and Consumer Care Head Minerva M. Agas VP and Logistics Head Benedict Patrick V. Alcoseba VP and Disruptive Business Head Cecille M. Alzona VP and Financial Planning Head Elizabeth S. Andojar VP and Enterprise Business Credit & Collection Management Head Armando Dodjie T. Lim VP and Consumer Service Area - GMM North Head Czar Christopher S. Lopez VP and Technology Strategy and Transformation Office Head Paolo Jose C. Lopez VP and Telesales, Online Stores, and Emerging Channels Head Maria Carmela F. Luque VP and Financial Audit Head Loreevi Gail O. Mercado VP and Talent Management Head Oliver Carlos G. Odulio VP and Enterprise Business Continuity & Resilience Head Roy Victor E. Añonuevo VP and HOME Business Operations and Services Head Jonston Prince W. Ong VP and BTO Executive Tito Rodolfo B. Aquino Jr. VP and Commercial Contracts Management Head Mitchie M. Arcaina VP and Organizational Change Management Head Carlo S. Ople VP and Deputy Head for PLDT-Smart Public Affairs Charles Louis L. Orcena VP and Business and Customer Analytics Head Serviliano L. Padiz Jr. VP and Cost Valuation Head Jerameel A. Azurin VP and Product Management Head of the Disruptive Business Group of PLDT Enterprise Raymond A. Racho VP and RAFM-Revenue Assurance Head Francis A. Bautista VP and Financial Reporting Systems & Controls Head Rafael M. Bejar VP and Medical Services Head Dianne M. Blanco VP and Consumer Credit and Accounts Management Head Genaro C. Sanchez VP and International Facilities Investments Management Head Maria Christina C. Semira VP and Subsidiaries and Affiliates Head Ma. Merceditas T. Siapuatco VP and Treasury Operations and Support Head Arvin L. Siena VP and Technology Strategy and Transformation Office Head Wilson S. Bobier VP and Program Resource and Integration Management Head Carla Elena A. Tabuena VP and Enterprise Business Service Operations Management Head Luis Gregorio D. Casas VP and CRM Conglomerate 2 Head Ma. Magdalene A. Tan VP and Corporate Governance Enforcement Head Joseph Michael Vincent G. Co VP and People Operations Head Patrick S. Tang VP and VisMin Regional Marketing Head Ma. Monica M. Consing VP and Senior Business Transformation Office Executive Branden B. Dean VP and IT Operations Support Systems & Automation Management Head Aniceto M. Franco III VP and Small and Micro Business Head Jecyn Aimee C. Teng VP and CRM Banking and Financial Service Institution Head Milan M. Topacio VP and Network Operations Center Head Radames Vittorio B. Zalameda VP and Wireless/Fixed Network Optimization and Performance Executive 1 Apppointment as First Vice President effective February 1, 2021 was confirmed by the Board of Directors in the meeting held in March 25, 2021 2 Separated as First Vice President effective February 1, 2021 but will continue to serve as Assistant Corporate Secretary for the unexpired term of his appointment to said office or until the Board elects his successor to said office 3 Apppointment as Vice President effective November 1, 2020 was confirmed by the Board of Directors in the meeting held on March 25, 2021 70 707070 HIGHLIGHTS I MESSAGES I AWARDS I OPERATIONS I GOVERNANCE I EXECUTIVES I FINANCIALS

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