STATEMENT OF FINANCIAL POSITION - HORIZONTAL ANALYSIS

GLOBE TELECOM, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2015 AND DECEMBER 31, 2016
ACCOUNT TITLE 2015 2016 VARIANCE %
ASSETS
Cash and Cash Equivalents 11,814,379.00 8,632,852.00 (3,181,527.00) -26.93%
Receivables - net 21,935,775.00 26,944,645.00 5,008,870.00 22.83%
Inventories and Supplies - net 4,489,182.00 4,579,954.00 90,772.00 2.02%
Derivatives and Assets 600,939.00 68,311.00 (532,628.00) -88.63%
Prepayments and other current assets 8,232,428.00 12,796,892.00 4,564,464.00 55.44%
TOTAL CURRENT ASSETS 47,072,703.00 53,022,654.00 5,949,951.00 12.64%
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Property, Plant and Equipment - net 129,039,522.00 142,251,981.00 13,212,459.00 10.24%
Intangible Assets and Goodwill - net 13,056,925.00 14,833,220.00 1,776,295.00 13.60%
Investments 1,498,565.00 34,181,452.00 32,682,887.00 2180.95%
Deferred Income Taxes - net 1,324,081.00 2,622,703.00 1,298,622.00 98.08%
Derivative Assets 481,342.00 755,137.00 273,795.00 56.88%
Other Long-Term Assets 3,206,613.00 2,195,963.00 (1,010,650.00) -31.52%
TOTAL NON-CURRENT ASSETS 148,607,048.00 196,840,456.00 48,233,408.00 32.46%
TOTAL ASSETS 195,679,751.00 249,863,110.00 54,183,359.00 27.69%
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CURRENT LIABILITIES -
Accounts Payable and Accrued Expenses 49,827,302.00 59,137,686.00 9,310,384.00 18.69%
Notes Payable - 4,500,000.00 4,500,000.00 0.00%
Current Portion of long term debt 7,973,594.00 5,830,319.00 (2,143,275.00) -26.88%
Unearned Revenues 4,938,233.00 5,090,421.00 152,188.00 3.08%
Income Tax Payable 1,519,639.00 1,105,931.00 (413,708.00) -27.22%
Provisions 1,160,118.00 6,631,612.00 5,471,494.00 471.63%
Derivative Liabilities 111,278.00 105,928.00 (5,350.00) -4.81%
TOTAL CURRENT LIABILITIES 65,530,164.00 82,401,897.00 16,871,733.00 25.75%
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LONG TERM LIABILITIES -
Long term Debt - net of current portion 64,255,264.00 95,398,272.00 31,143,008.00 48.47%
Deferred Income Taxes - net 2,211.00 1,916,923.00 1,914,712.00 86599.37%
Other Long-Term Liabilities 6,494,330.00 6,669,716.00 175,386.00 2.70%
TOTAL NON CURRENT LIABILITIES 70,751,805.00 103,984,911.00 33,233,106.00 46.97%
TOTAL LIABILITIES 136,281,969.00 186,386,808.00 50,104,839.00 36.77%
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STOCKHOLDER'S EQUITY -
Paid-up Capital 44,486,976.00 44,505,703.00 18,727.00 0.04%
Cost of Share Based Payment 338,008.00 584,586.00 246,578.00 72.95%
Other Reserves (1,211,513.00) (1,072,925.00) 138,588.00 -11.44%
Retained Earnings 15,778,557.00 19,422,402.00 3,643,845.00 23.09%
Equity attributable to equity holders to the parent 59,392,028.00 63,439,766.00 4,047,738.00 6.82%
Non-controlling Interest 5,754.00 36,536.00 30,782.00 534.97%
TOTAL STOCKHOLDER'S EQUITY 59,397,782.00 63,476,302.00 4,078,520.00 6.87%
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 195,679,751.00 249,863,110.00 54,183,359.00 27.69%

STATEMENT OF FINANCIAL POSITION - VERTICAL ANALYSIS

GLOBE TELECOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2015 AND DECEMBER 31, 2016
ACCOUNT TITLE 2015 % 2016 %
ASSETS
Cash and Cash Equivalents 11,814,379.00 6.04 8,632,852.00 3.46
Receivables - net 21,935,775.00 11.21 26,944,645.00 10.78
Inventories and Supplies - net 4,489,182.00 2.29 4,579,954.00 1.83
Derivatives and Assets 600,939.00 0.31 68,311.00 0.03
Prepayments and other current assets 8,232,428.00 4.21 12,796,892.00 5.12
TOTAL CURRENT ASSETS 47,072,703.00 24.06 53,022,654.00 21.22

Property, Plant and Equipment - net 129,039,522.00 65.94 142,251,981.00 56.93

Intangible Assets and Goodwill - net 13,056,925.00 6.67 14,833,220.00 5.94
Investments 1,498,565.00 0.77 34,181,452.00 13.68
Deferred Income Taxes - net 1,324,081.00 0.68 2,622,703.00 1.05
Derivative Assets 481,342.00 0.25 755,137.00 0.30
Other Long-Term Assets 3,206,613.00 1.64 2,195,963.00 0.88
TOTAL NON-CURRENT ASSETS 148,607,048.00 75.94 196,840,456.00 78.78
TOTAL ASSETS 195,679,751.00 100.00 249,863,110.00 100.00

CURRENT LIABILITIES
Accounts Payable and Accrued Expenses 49,827,302.00 25.46 59,137,686.00 23.67
Notes Payable - 4,500,000.00 1.80
Current Portion of long term debt 7,973,594.00 4.07 5,830,319.00 2.33
Unearned Revenues 4,938,233.00 2.52 5,090,421.00 2.04
Income Tax Payable 1,519,639.00 0.78 1,105,931.00 0.44
Provisions 1,160,118.00 0.59 6,631,612.00 2.65
Derivative Liabilities 111,278.00 0.06 105,928.00 0.04
TOTAL CURRENT LIABILITIES 65,530,164.00 33.49 82,401,897.00 32.98

LONG TERM LIABILITIES

Long term Debt - net of current portion 64,255,264.00 32.83 95,398,272.00 38.18
Deferred Income Taxes - net 2,211.00 0.00113 1,916,923.00 0.77
Other Long-Term Liabilities 6,494,330.00 3.32 6,669,716.00 2.67
TOTAL NON CURRENT LIABILITIES 70,751,805.00 36.15 103,984,911.00 41.62
TOTAL LIABILITIES 136,281,969.00 69.64 186,386,808.00 74.60

STOCKHOLDER'S EQUITY
Paid-up Capital 44,486,976.00 22.73 44,505,703.00 17.81
Cost of Share Based Payment 338,008.00 0.17 584,586.00 0.23
Other Reserves (1,211,513.00) -0.62 (1,072,925.00) (0.43)
Retained Earnings 15,778,557.00 8.06 19,422,402.00 7.77
Equity attributable to equity holders to the parent 59,392,028.00 30.35 63,439,766.00 25.39
Non-controlling Interest 5,754.00 0.00294 36,536.00 0.01
TOTAL STOCKHOLDER'S EQUITY 59,397,782.00 30.35 63,476,302.00 25.40
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 195,679,751.00 100.00 249,863,110.00 100.00
 INCOME STATEMENT - HORIZONTAL ANALYSIS
GLOBE TELECOM, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR DECEMBER 31, 2015 AND DECEMBER 31, 2016
ACCOUNTS 2015 2016 VARIANCES %
Service Revenues 113,679,226.00 119,989,546.00 6,310,320.00 5.55
Nonservice Revenues 6,289,968.00 6,193,657.00 (96,311.00) (1.53)
TOTAL REVENUE 119,969,194.00 126,183,203.00 6,214,009.00 5.18
Interest Income 518,537.00 151,589.00 (366,948.00) (70.77)
Gain on disposal of property, plant and equipment - net 57,642.00 101,232.00 43,590.00 75.62
Other income - net 2,130,853.00 983,186.00 (1,147,667.00) (53.86)
TOTAL INCOME 2,707,032.00 1,236,007.00 (1,471,025.00) (54.34)
General and Administrative Expenses 48,766,962.00 51,872,596.00 3,105,634.00 6.37
Depreciation and Amortization 21,132,698.00 23,848,646.00 2,715,948.00 12.85
Cost of Sales 13,665,203.00 11,914,114.00 (1,751,089.00) (12.81)
Interconnect Cost 9,007,919.00 9,623,127.00 615,208.00 6.83
Financing Cost 3,372,924.00 4,096,826.00 723,902.00 21.46
Impairment Losses and Others 3,109,520.00 3,271,301.00 161,781.00 5.20
Equity in net losses of associates and joint ventures 153,512.00 855,198.00 701,686.00 457.09
TOTAL EXPENSES 99,208,738.00 105,481,808.00 6,273,070.00 6.32
NET INCOME BEFORE TAXES 23,467,488.00 21,937,402.00 (1,530,086.00) (6.52)
Current Tax Expense 6,203,825.00 5,556,965.00 (646,860.00) (10.43)
Deferred Tax Expense 779,213.00 491,938.00 (287,275.00) (36.87)
TOTAL TAX EXPENSE 6,983,038.00 6,048,903.00 (934,135.00) (13.38)
TOTAL NET INCOME 16,484,450.00 15,888,499.00 (595,951.00) (3.62)

INCOME STATEMENT - VERTICAL ANALYSIS

 GLOBE TELECOM, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR DECEMBER 31, 2015 AND DECEMBER 31, 2016
ACCOUNTS 2015 % 2016 %
Service Revenues 113,679,226.00 94.76 119,989,546.00 95.09
Nonservice Revenues 6,289,968.00 5.24 6,193,657.00 4.91
TOTAL REVENUE 119,969,194.00 100.00 126,183,203.00 100.00
Interest Income 518,537.00 0.43 151,589.00 0.12
Gain on disposal of property, plant and equipment - net 57,642.00 0.05 101,232.00 0.08
Other income - net 2,130,853.00 1.78 983,186.00 0.78
TOTAL INCOME 2,707,032.00 2.26 1,236,007.00 0.98
General and Administrative Expenses 48,766,962.00 40.65 51,872,596.00 41.11
Depreciation and Amortization 21,132,698.00 17.62 23,848,646.00 18.90
Cost of Sales 13,665,203.00 11.39 11,914,114.00 9.44
Interconnect Cost 9,007,919.00 7.51 9,623,127.00 7.63
Financing Cost 3,372,924.00 2.81 4,096,826.00 3.25
Impairment Losses and Others 3,109,520.00 2.59 3,271,301.00 2.59
Equity in net losses of associates and joint ventures 153,512.00 0.13 855,198.00 0.68
TOTAL EXPENSES 99,208,738.00 82.70 105,481,808.00 83.59
NET INCOME BEFORE TAXES 23,467,488.00 19.56 21,937,402.00 17.39
Current Tax Expense 6,203,825.00 5.17 5,556,965.00 4.40
Deferred Tax Expense 779,213.00 0.65 491,938.00 0.39
TOTAL TAX EXPENSE 6,983,038.00 5.82 6,048,903.00 4.79
TOTAL NET INCOME 16,484,450.00 13.74 15,888,499.00 12.59