globe equity investment analysis

8/10/2019 Globe Equity Investment Analysis

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SHARE DATA

Fair Value: 2019.00Price, Sep 29 14(Php): 1665.00Upside (%): 21.29%

Outstanding Shares (Mil):Market Cap (Mil Php):52-week Range (Php):Free Float :

Ysabel BansonWendy ChenMaki De JesusEdol JimenezCole TanNicole TorresRenson Yu

Earnings grow above expectation 1H14 core earnings up 18.1%. Globe reported 2Q14 earnings of

Php4.2Bil, up 26.7% from the same period last year. Thisbrought 1H14 earnings to Php7.6Bil, up by 18.1% y/y,exceeding both COL and consensus estimates as it accountedfor 58.3% and 58.6% of full year forecasts, respectively.Earnings growth was driven by higher services revenues whichincreased by 7.1% to Php47.7Bil. This was accompanied by asteep 18% decline in depreciation expenses to Php7.3Bil. Wehave a BUYrating on GLO with a FV estimate of

Php2019/sh.

--MAKI, I GOT THIS FROM THE REPORT YOUGAVE. CHECK MO IF ITS STILL APLICABLE!


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Table of Contents

Financial Summary..................................................... ................................................................. ...................... 3

Investment Summary....................................................................................................................................... 4

Valuation............................................................................................................................................................. 4

Major Assumptions.......................................................... ................................................................. ........... 4

Peer Analysis.................................................................................................................................................. 5

Technical Analysis..................................................................................................................................... 5

Industry Overview & Competitive Positioning.......................................................................................... 7

Porters Five Forces Model................................................................. ....................................................... 7

SWOT Analysis...................................................... ................................................................. ...................... 8

Competitive Positioning and Strategy.......................................................... ............................................ 8

Company Analysis...................................................... ................................................................. ...................... 9Investment Risks............................................................................................................................................... 9

Treading New Waters............................................... ................................................................. .................... 10

APPENDIX A: Financial Statements................................................... ..................................................... 12

Income Statement................................................. ................................................................. .................... 12

Balance Sheet.......................................................... ................................................................. .................... 12

Cash Flow Statement.................................................................................................. ............................... 14

APPENDIX B: KPI and BEM........................................................ Error! Bookmark not defined.


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Financial Summary

Financial Metrics

2011A 2012A 2013A 2014E 2015EEBITDA Growth (%) 4.28

EBIT Growth (%) -20.94

Net Income Growth (%) 2.333000997 13.18199532 12.14599294 7.153822536

EBIT Margn (%) 13.12 9.5

Net Income Margin (%) 11.87 12.21

ROCE (%) 7.722399011 5.680125219

ROA (%) 6.934619724 7.302569131

Net Debt/EV (%)

EV/sales (x)

EV/EBITDA (x)

EBITDA Margin (%) 40.5 38.38

ROE 22.46% 27.90%

Profitabil Mar ins

0

20000

40000

60000

80000

100000

2011A 2012A 2013A 2014E 2015E

Revenues EBITDA

EBITDA Mar in

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2011A 2012A 2013A 2014E 2015E

ROE

Return on E uit


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Investment Summary

Mobile Segments Grow

Mobile segment grows on the back of stronger postpaid and mobile data. 1H14 mobile servicesrevenues grew by 5% to Php24.5Bil. Growth was primarily driven by the stronger contributionof the postpaid segment and mobile data services. During1H14, postpaid revenues reachedPhp14.6Bil, up by 11% from the same period last year. Consequently, postpaid revenues nowaccount for 39% of mobile revenues and 31% of total service revenues, up by two percentagepoints from just 37% and 29% respectively. Globe added that postpaid subscribers alreadyreached 2.1Mil, up by 10% from last year. On the other hand, prepaid revenues reachedPhp23.2Bil, up by 2.2% y/y while its subscriber base grew by 19% y/y to 40.6Mil. However,Globe said that it is looking to churn out around 7% of prepaid subscribers who just signed up

to avail of its free Facebook promo but are non-revenue generating units.

ValuationUsing the Free Cash Flow to Equity (FCFE) Approach of the Discounted Cash Flow (DCF)

Valuation Model, we estimate the fair value of GLOs stock at Php 2,019.42 per common shareoutstanding. Since Globe Telecom, Inc. is already one of the major players in the mobile, broadbandand fixed line markets of the telecommunications industry, then we believe that GLO stocks shouldbe selling at a higher price that is close or equal to the stocks fair value.Major AssumptionsSummary of Assumptions based on Empirical Data

INPUT VALUE NOTE SOURCERisk-free Rate (rRF) 5% Given Bangko Sentral ng

Pilipinas (BSP)

Market Risk Premium (RPM) 10.13% Given New York

University

Beta (in CAPM) 0.59 Given Reuters

Required Rate of Return (r) 9.9767% rRF+ RPM*

Retention Rate 16% 1Dividend Payout Ratio Topyields.nl

Return On Assets (ROA) 6.53% Given The Financial Times

Ltd. 2014Short-term FCFE Growth

Rate

1.0448 Calculated by

analysts/authors

The Financial Times

Ltd. 2014;

Topyields.nl

GDP Growth Rate (2013) 7.2% Actual; Annual World Bank (WB)

GDP Growth Rate (2019) 6.0% Forecasted; Annual International

Monetary Fund

(IMF)

Constant FCFE Growth Rate 0.8707% Begins after 5 years; year

2019;

Calculated by

analysts/authors


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Peer Analysis

Company Name Country Price/Earnings(TTM)

Price/Book(MRQ)

Price/Sales(TTM)

China Communications Services Corp.Ltd.

Hong Kong 8.76 0.8843 0.28

Dr Peng Telecom & Media Group CoLtd

China 49.17 5.11 3.6

Far EasTone Telecommunications Co.,Ltd.

Taiwan 15.58 2.86 2.14

Globe Telecom, Inc. Philippines 21.37 5.07 2.23

Intouch Holdings PCL Thailand 16.2 9.47 22

LG Uplus Corp South Korea 29.23 1.34 0.4718

PCCW Limited Hong Kong 17.49 3.89 1.3

Spark New Zealand Ltd New Zealand 16.5 3.12 1.46

StarHub Ltd. Singapore 19.85 74.89 3.02

Tower Bersama Infrastructure Tbk PT Indonesia 27.38 9.48 11.91

TPG Telecom Ltd Indonesia 32.32 6.67 5.71

Technical Analysis

As can be seen in the graph a, GLO

stock has hit a support at the 1600+

level. A bearish candle with a

considerably long shadow was formed.

The long shadow indicates that there issufficient demand in the support level

such that it was able to drive up the

stock price higher. The stock price was

driven up to almost half of the

candlesticks body. A bearish marubozu

candlestick was prevented from forming.

A marubozu is a candlestick with full

bullish or bearish trend. This failure to

form a bearish marubozu signals that

the bullish trend (or uptrend) of the GLO stock will likely to continue and that this drop in price islikely just a retracement and not an indicator of trend reversal. Moreover, in general, the trend

mostly contains higher highs and higher lows which is indicative of bullish trend. Furthermore, a

trendline has been drawn to show that such trendline sustained and survived 4 re-tests. The

trendline was able to hold even though it was re-tested four times. One of the basic rules of thumb

in technical analysis is that the more re-tests a trendline, a support, or a resistance is able to survive,

the stronger or sturdier it becomes. As such, with this knowledge of the trendline, we can extract a

supporting insight to our initial proposition that GLO stock will continue to increase. Since the last

candlestick (which is a bearish one with considerably long shadow) hit and re-tested the trendline

but the trendline was able to hold, then we expect that bullish candlesticks will appear as the stock

price will bounce back up and will likely to continue the generally bullish trend.


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Company Profile

Globe Telecom, Inc. is a major providerof telecommunications services in the

Philippines, supported by over 5,900 employeesand over 855,000 retailers, distributors,suppliers, and business partners nationwide.

The Company operates one of the largest andmost technologically-advanced mobile, fixedline and broadband networks in the country,providing reliable, superior communications

services to individual customers, small and medium-sized businesses, and corporate and enterpriseclients. Globe currently has about 38.5 million mobile subscribers, over 2,000,000 broadbandcustomers, and over 594,000 million landline subscribers.

Globe is one of the largest and most profitable companies in the country, and has beenconsistently recognized both locally and internationally for its corporate governance practices. It islisted on the Philippine Stock Exchange under the ticker symbol GLO and had a marketcapitalization of US$4.9 billion as of the end of December 2013.

Globe Telecom, Inc. is among the leading integrated telecom services in Philippines. Thecompany is primarily engaged in offering wireline, wireless and broadband services. Its majorshareholders include Singapore Telecom (47.3%) and Ayala Corporation (30.5%). The broadportfolio of services offered by Globe Telecom include Glboe Postpaid, Globe Prepaid, TM (aprepaid service), T@ttoo and Globe Gcash. The company has a network of over 782,000 retailers,distributors, suppliers and business partners.

By 2012, the company had 33.12 million wireless and 1.67 million broadband subscriptionswhich included 1.33 million wireless broadband and 340,560 wireline broadband subscriptions.

For the year ended December 2012, the company generated revenues of PHP 82.7 billion,recording annual growth of 6%, with net income of PHP 6.9 billion. As of 2013, had revenues ofPHP 95 billion, and net income of PHP 4.96 billion.

Globe is committed to being a responsible corporate citizen. Globe BridgeCom, thecompanys umbrella corporate social responsibility program, leads and supports various initiativesthat (1) promote education and raise the level of computer literacy in the country, (2) supportentrepreneurship and micro-enterprise development particularly in the countryside, and (3) ensure

sustainable development through protection of the environment and excellence in operations. Sinceits inception in 2003, Globe BridgeCom has made a positive impact on the lives of thousands ofpublic elementary and high school students, teachers, community leaders, and micro-entrepreneursthroughout the country. For its efforts, Globe BridgeCom has been recognized and conferredseveral awards and citations by various Philippine and international organizations.


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Industry Overview & Competitive Positioning

Porters Five Forces Model

1.Threat of New Entrants: WEAKThe threat of new entrants in this industry is weak because to enter in this market, a largecapital is needed. Furthermore, this capital expenditure is dependent on the level of economicdevelopment of a certain market. To successfully enter into this market, the new entrant mustsecure a large number of customers/subscribers in order to minimize the risk of entry. Theyneed a large number of subscribers because they will have to make up for the large capitalexpenditures. Included in these expenditures are the fixed costs of building and maintenance ofthe required infrastructure.

2.Bargaining Power of Suppliers: MODERATESince the suppliers of telecommunications companies re not exclusive, the firm has the powerto choose among the available suppliers based on quality and price. In this regard, thebargaining power of suppliers is weak. However, since in this industry there is constantemergence of new technologies, telecommunications companies are defenseless when thesuppliers who are able to meet the technological requirements are scarce. Therefore, overall,the bargaining power of suppliers in this industry is moderate.

3.Threats of Substitutes: WEAKPossible substitutes in this industry are mobile landlines and large-scale wi-fi systems. Thesesubstitutes pose a weak threat to this industry because of mobility, coverage, and price. Mobilelandline companies like PLDT and BayanTel pose a weak threat because mobile landlineservices are more expensive and their coverage is limited. Large-scale wi-fi systems likewisepose a weak threat because the coverage is limited therefore mobility is also limited.

4.Bargaining Power of Buyers: MODERATEBack when the only players in the market are Globe and Smart, the bargaining power of buyers

was weak because buyers did not have any choice but to subscribe to these two playersservices even if the prices are high. However, when Sun entered the market and introduced theall-you-can services, Globe and Smart needed to rethink their pricing and servicing strategy tocounter this new entrant. In this regard, the bargaining power of buyers is strong. Therefore,overall, the bargaining power of buyers is moderate.

5.Rivalry Among Competitors: INTENSEThere is a struggle to differentiate their products. Since firms in this market have similarproducts, there is intense competition. The only chance of companies to differentiatethemselves from the rest is to offer affordable and innovative services to subscribers.


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SWOT Analysis

Competitive Positioning and StrategyGlobe Telecom has had the advantage over its competitors because of their use of a digital

infrastructure to support its cellular network. Even though this is more expensive for GlobeTelecom, they were able to gain more due to the wide range of services that are offered. However,Smart has recently transitioned into the same digital infrastructure as Globe. Because of this, success

will be dependent on who will dominate the market segment.

Along with this advantage over other telecommunication companies, Globe is currentlydoing technological innovations to make life easier for its customers. The G-pass has beendeveloped to make riding the MRT easier for the public, it uses an electronic chip system and theHypercash Payment System. Globe believes the G-pass will be much appreciated by its subscribersdue to the daily use of the MRT. It is seen that Globe innovates past the cellular service to makelives of their subscribers much easier.

Strengths- well-established brandidentity

- innovative offerings- growing subscriber base

Weaknesses- signal location, cellsitesacquisition

- poor brand marketingcommunications

- high rate of employee turnoverOpportunities- expand reach to include

rural, overseasconsumer base

- new mobile applications,

browsing plans, etc.- heavy reliance oninformation technology

S-O Strategies- take advantage of

expansion opportunitiesboth locally and abroad

- investment in research and

development to tap intonew innovations

W-O Strategies- improve satellite facilities as well

as other kinds oftelecommunications equipment

- increase advertising presence

- continued and introduction ofnew services addressingchanging needs of clients

Threats- lowered service

performance- strategies of competitors- rise of social media as a

provider of connectivity

S-T Strategies- more attractive rates and

pricing- partnerships with

companies offeringsystems using the mobilephone

W-T Strategies- competitive assessment and

benchmarking to better fine-tune own strategies


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Company Analysis

TAX INCENTIVESForeign investors of the mobile telecommunications sector are given tax incentives for giving fundsto site roll outs and technology upgrades. Globe Telecom being a part of this industry allows themto have more funds for their research and development of new services, to compensate for theirbeing second place in holding the market.

RISING COMPETITORSmart Communications was able to garner 58.68% of the market during 2005, While Globe

Telecom came in second with only 35.94%. Consumers care more about the prices and packagesthat are being offered, hence Smart being able to cater to the masses with their low prices andpackages that they were able to garner the largest portion of the market. However, Globe is

compensating by innovating more services such as the G-cash.

INCREASE OF SUBSCRIBERSA significant increase of subscribers was seen during the 3rdquarter of 2006 for both Globe andSmart. For globe it was from 12,403,575 in 2005 to 14,467,985 in 2006. Globe plans to tap thelower segment of the market hoping to reach 50% of the total population. Smart which is currentlythe major player in that segment will have a new competitor when Globe starts gearing its marketingefforts towards the rural area/lowersegment.


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Risks

INVESTMENT RISKS

Foreign Exchange Risk-this risk basically arises from the volatile

movement of the Philippine Peso value

against the US Dollars with respect toGlobes US Dollar denominated revenues,

expenditures, assets, and liabilities. Globe

heavily relies on the Philippine Peso USDollar values because a almost Globes entire

capital expenditures are in US Dollars.

-Globe minimizes this risk by passing theeffects of local currency depreciation to its

subscribers. They can do this because they

bill and settle with their subscribers in

foreign currency. Another way how Globe

minimizes this risk is by entering into short-

term currency forwards and long-term

foreign currency swap contracts.

INDUSTRY RISKS

Competition in the Industry-there is intense competition in the

Philippine telecommunications industry

because current players in the market are

still continuing to aggressively increase

market share. If Globes competitors gets aslight advantage by any significant economic,

technological, or regulatory development, it

could negatively impact Globes business,

revenues, and net income. Highly Regulated Environment

-Globe and other telecommunications

companies are regulated by the NTC. This is

considered a risk because changes in laws

and regulations may affect Globesoperations.

Economic Factors

-in 2013, the Philippines GDP growth was7.2%. In the last quarter of 2013, the

Philippines was recognized as one of the best

in the Asian region in terms of economic

performance. However, external risks like

the debt and fiscal problem in the US and the

continued debt crisis in the Euro Zone will

likely remain and could stall regional trade

and capital flows. Events like these could

negatively affect the Philippines, which in

turn could affect Globes business andfinancial condition.

Political Factors

-There is no way of assuring political stabilityin the Philippines even if there was a recent

successful national election. Because of this,

political stability is a risk for companies like

Globe who depend on the overall political

and economic performance of the country.

Any political instability could potentially

affect Globes business negatively becausepolitical instability will affects economic

performance.


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Whats Next For Globe?As part of its strategy to take over its competitors and widen its consumer reach,

Globe has recently tied up with Allphones, an Australian-based telecommunications

retailer, to mainly attract postpaid subscribers and encourage their continued use of

Globes products and services. Allphones will be the one providing the phones tied up with

Globes bundle plans, wherein customers are also given the flexibility of options from Plan299 to the higher-end plans, as well as contract periods from 6 to 24 months.

We are one with Allphones in their commitment to superior service, as well asensuring that we empower customers with customizable products that better fit their

needs, budget, and lifestyle, shared Peter Bithos, Chief Operating Advisor at Globe. Thepartnership between Globe and Allphones is yet another milestone in the industry as we

bring the future of telecoms and mobile retailing in the Philippines. We are excited to see

how Allphones will continue to trailblaze the industry by providing a game-changing retailexperience to Filipino mobile phone users.(Globe Telecom).

Despite aggressive switching campaigns and attractive price offerings of its

competitors, Globe is still the postpaid leader after posting a double-digit growth both inrevenues and in subscriber base last 2013. Its postpaid base is currently at 2.03 million,

17% more than last years 1.7 million, while the number of new subscribers has likewiseincreased by 21%, closing in at 711,000 as of December 2013. This leads to Globes total

mobile subscriber base now being at 38.5 million, an impressive 16% rise from 33.1

million the previous year. Meanwhile, there has been a gross addition of 51% signing up

for monthly postpaid plans of P999 and above, as against 44% in 2012. Noting the surge in

subscriber base, Globes postpaid revenues have also improved by 18% year -on-year, nowat P27.1 billion.


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APPENDIX A: Financial Statements

Income StatementMillions of Philippines Pesos as of: 2010 2011 2012 2013

Trend

Revenues 75,735.40 81,518.20 86,446.10 95,141.00

Other Revenues -- 376.8 225.5 302.7

TOTAL REVENUES 75,735.40 81,895.00 86,671.70 95,443.70

Cost Of Goods Sold 17,741.00 19,601.90 20,380.40 23,211.50

GROSS PROFIT 57,994.40 62,293.10 66,291.30 72,232.30

Selling General & Admin Expenses, Total 23,419.60 27,420.60 31,326.40 35,708.70

Depreciation & Amortization, Total 18,085.80 18,941.20 18,502.90 18,411.50

Other Operating Expenses -173.3 -172.5 -172.5 -172.5

OTHER OPERATING EXPENSES, TOTAL 41,332.20 46,189.30 49,656.90 53,947.70

OPERATING INCOME 16,662.20 16,103.80 16,634.50 18,284.50

Interest Expense -1,981.80 -2,059.70 -2,086.10 -2,091.90

Interest And Investment Income 218.5 297.4 579.9 688.2

NET INTEREST EXPENSE -1,763.30 -1,762.30 -1,506.20 -1,403.70

Income (Loss) On Equity Investments -3 -27.3 -83.6 -80

Currency Exchange Gains (Loss) 465.4 -308.6 318.3 -486.3

Other Non-Operating Income (Expenses) -1,153.80 -185.9 -257.8 -333.6

EBT, EXCLUDING UNUSUAL ITEMS 14,207.50 13,819.60 15,105.20 15,981.10

Merger & Restructuring Charges -- -- -5,080.50 -9,066.00

Gain (Loss) On Sale Of Assets 32.5 319.3 42.4 64.3

Other Unusual Items, Total -201.9 -80.7 -315.6 -114.6

Legal Settlements -138.8 47.9 -56.3 -88.3

EBT, INCLUDING UNUSUAL ITEMS 14,038.20 14,058.10 9,751.50 6,864.80

Income Tax Expense 4,293.60 4,253.60 2,906.30 1,904.50

Earnings From Continuing Operations 9,744.60 9,804.60 6,845.30 4,960.20

NET INCOME 9,744.60 9,804.60 6,845.30 4,960.20

NET INCOME TO COMMON INCLUDING EXTRA ITEMS 9,699.20 9,769.30 6,812.10 4,936.40

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS 9,699.20 9,769.30 6,812.10 4,936.40

Balance Sheet


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Currency in

Millions of Philippines Pesos as of: 12/31/2010 1/1/2012 12/31/2012 12/31/2013

Assets

Cash And Equivalents 5,869 5,159 6,759.80 7,420.70

Trading Asset Securities 11.7 -- -- --TOTAL CASH AND SHORT TERMINVESTMENTS

5,880.70 5,159.00 6,759.80 7,420.70

Accounts Receivable 8,170.50 10,119.50

11,426.40 14,140.40

Notes Receivable -- -- 347.9 1,608.00

Other Receivables 658.6 -- 1,104.40 1,280.60

TOTAL RECEIVABLES 8,829.10 10,119.50

12,878.80 17,028.90

Inventory 1,839.30 1,911.20 2,076.20 3,544.90

Prepaid Expenses 983.5 5,586.40 1,050.70 949.2

Other Current Assets 4,052.10 788.1 11,262.90 6,687.40

TOTAL CURRENT ASSETS 21,584.80 23,564.20

34,028.40 35,631.20

Gross Property Plant And Equipment 239,155.50 251,078.00

274,022.50 285,842.00

Accumulated Depreciation -137,318.20 -151,810.

20

-172,600.10

-175,417.90

NET PROPERTY PLANT AND EQUIPMENT 101,837.30 99,267.80

101,422.40 110,424.10

Goodwill 327.1 327.1 327.1 327.1

Long-Term Investments 298.9 249 324.6 385.5Loans Receivable, Long Term 1,263.00 -- 5,811.80 4,556.30

Deferred Tax Assets, Long Term 670.6 864.9 1,016.90 1,916.90

Other Intangibles 2,921.30 3,264.40 3,466.80 3,513.50

Other Long-Term Assets 1,725.00 2,527.90 1,613.80 2,324.40

TOTAL ASSETS 130,628.00 130,065.30

148,011.80 159,078.90

LIABILITIES & EQUITY

Accounts Payable 5,617.40 23,041.40

8,837.70 11,540.60

Accrued Expenses 14,325.40 -- 18,489.10 26,350.00

Short-Term Borrowings -- 1,756.80 2,053.90 5,219.90

Current Portion Of Long-Term Debt/CapitalLease

8,677.20 9,597.40 9,294.90 6,131.80

Current Income Taxes Payable 1,098.50 1,157.90 1,341.60 1,028.30

Other Current Liabilities, Total 1,015.50 958.4 931.7 362.9

Unearned Revenue, Current 4,575.20 2,474.10 4,877.10 4,355.90

TOTAL CURRENT LIABILITIES 35,309.10 38,985.90

45,826.00 54,989.30

Long-Term Debt 41,694.30 37,324.60

50,430.60 58,100.70

Capital Leases 640.9 -- 1,342.30 1,018.00


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Pension & Other Post-Retirement Benefits -- -- 843.9 1,607.30

Deferred Tax Liability Non-Current 4,620.50 3,667.40 2,271.30 --

Other Non-Current Liabilities 1,494.10 2,501.60 1,599.70 1,724.30

TOTAL LIABILITIES 83,758.80 82,479.60

102,313.80 117,439.70

Preferred Stock Convertible 792.6 -- 792.6 792.6

TOTAL PREFERRED EQUITY 792.6 -- 792.6 792.6

Common Stock 6,617.40 7,410.20 6,620.30 6,629.80

Additional Paid In Capital 26,536.80 26,557.30

26,683.10 26,980.00

Retained Earnings 12,466.60 13,449.20

11,655.60 7,715.30

Comprehensive Income And Other 455.7 169.1 -53.6 -478.4

TOTAL COMMON EQUITY 46,076.60 47,585.70

44,905.40 40,846.70

TOTAL EQUITY 46,869.10 47,585.70

45,698.00 41,639.30

TOTAL LIABILITIES AND EQUITY 130,628.00 130,065.30

148,011.80 159,078.90

Cash Flow StatementCurrency in 12/31/2010 12/31/2011 12/31/2012 12/31/2103

Millions ofPhilippinesPesos as of:

NET INCOME 9,744.60 9,804.60 6,845.30 4,960.20


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Depreciation &Amortization

17,339 18,941 17,371.10 16,851.50

Amortization OfGoodwill AndIntangibleAssets

842 -- 1,251.70 1,690.10

DEPRECIATION&AMORTIZATION, TOTAL

18,181 18,941.20 18,622.80 18,541.50

Amortization OfDeferredCharges

110.6 116.6 103.5 132

(Gain) LossFrom Sale OfAsset

-32.5 -319.2 -42.4 -64.3

AssetWritedown &RestructuringCosts

63.1 128.6 5,339.70 9,092.30

OtherOperatingActivities

1,444.60 1,555.00 152.8 -1,423.30

(Income) LossOn EquityInvestments

3 27.3 83.6 80

Change InAccountsReceivable

-1,932.40 -1,678.50 -2,235.80 -3,607.90

Change InInventories

-185.6 -67.4 -165 -1,468.30

Change InAccountsPayable

980.1 2,212.50 2,578.70 2,459.10

Change InUnearnedRevenues

-579.1 71.4 28.8 256.7

Change InOther WorkingCapital

-753.8 -954.3 -7,102.90 4,224.90

CASH FROMOPERATIONS

27,148.40 29,887.20 24,220.50 33,232.90

CapitalExpenditure

-17,552.20 -18,007.10 -20,124.50 -28,999.50

Sale OfProperty, Plant,And Equipment

113.3 180.9 70.1 105.8

Sale (Purchase)Of IntangibleAssets

-169.3 -145.2 -152.1 -102

Investments InMarketable &EquitySecurities

2.8 -79 -21 -59

CASH FROMINVESTING

-16,928.80 -18,150.80 -24,616.30 -27,368.00

Short-TermDebt Issued

1,000.00 1,738.60 5,052.40 3,428.90

Long-TermDebt Issued

14,182.00 8,000.00 25,847.80 16,695.00


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TOTAL DEBTISSUED

15,182.00 9,738.60 30,900.20 20,123.90

Short TermDebt Repaid

-3,000.80 -- -4,694.00 -432.1

Long TermDebt Repaid

-8,986.30 -11,552.50 -12,810.10 -13,613.50

TOTAL DEBTREPAID

-11,987.10 -11,552.50 -17,504.10 -14,045.60

Issuance OfCommon Stock

5.5 0.8 16.5 44.7

CommonDividends Paid

-5,293.90 -8,205.60 -8,605.60 -8,876.80

PreferredDividends Paid

-50.5 -45.4 -35.3 -57

TOTALDIVIDEND PAID

-5,344.40 -8,251.00 -8,640.90 -8,933.70

SpecialDividend Paid

-5,293.90 -- -- --

OtherFinancingActivities

-2,734.00 -2,456.80 -2,573.70 -2,665.50

CASH FROMFINANCING

-10,172.00 -12,520.90 2,197.90 -5,476.20

ForeignExchange RateAdjustments

-118.5 74.5 -201.3 272.2

NET CHANGEIN CASH

-70.9 -709.9 1,600.70 661

globe equity investment analysis

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