CONVERGE 2020 Annual Report

Reliance IT Building,
99 E. Rodriguez Jr. Ave, EXPLORE A WORLD

OF POSSIBILITIES:
Brgy. Ugong Pasig City
+632 8667 0848
www.convergeict.com
#ExperienceBetter
Annual Report 2020
EXPLORE A WORLD OF POSSIBILITIES: 1
#EXPERIENCEBETTER
About the Cover Contents

A world of possibilities lies just right at our
2 Message from the Chairman
fingertips, waiting to be explored. Seemingly
infinite opportunities to be created, potentials 4 Message from the CEO
to be unleashed, and relations to be nurtured are 8 Message from the President
within reach. We at Converge believe that these 12 Experience Better
should be within reach. Our Company was founded
12 Who We Are
with the vision of empowering Filipinos, especially
the unserved and underserved, to explore their 13 Vision, Mission, Values
possibilities using connectivity as a tool. Through 14 History of Converge
our world-class fiber optic technology, we equip
15 Organizational Structure
individuals to uplift themselves. We enable
enterprises to pursue efficiency and growth. 16 Fiber Internet Technology
We help establish the Philippines as a globally 18 Onwards to the Future: Envisioning Connectivity for all Filipinos
competitive nation. We provide Filipinos the better 20 Experience Excellence
digital experience they deserve.
20 Financial Highlights
The new paradigm created by the pandemic 21 Key Consolidated Financial Highlights
has placed us in a crucial position to support the 22 Operational Highlights
nation in further embracing and adapting to the 28 Experience Superior
new—and increasingly digital—normal. Cognizant
29 Go National
of this pivotal role, Converge moves forward with
an intensified commitment to provide world-class, 30 Products and Services
fast and reliable internet services, and technology 32 Innovations
solutions to every Filipino.
34 World-Class Partnerships
36 Awards and Recognition
38 Experience Commitment
44 Experience Fulfillment
44 Sustainability
46 COVID-19 Response
50 Corporate Governance
52 Risk Management
54 Board of Directors
60 Key Officers
64 Financial Statements
76 Corporate Information
Please refer to our 2020 SEC 17A Report for the Notes to the Financial Statements
(https://corporate.convergeict.com/wp-content/uploads/2020/10/CNVRG_FY20_17A_vF.pdf)
2 CONVERGE ICT SOLUTIONS INC. EXPLORE A WORLD OF POSSIBILITIES: 3
ANNUAL REPORT 2020 #EXPERIENCEBETTER
Message from the Chairman
DEAR FELLOW SHAREHOLDERS, reach over 6.1 million Filipino homes across the country,
representing a quarter of total Philippine households.
Your Company, Converge ICT Solutions, Inc., responds This brings the company closer to its target of reaching
to our country’s urgent need for a world-class digital 55% of the population with world-class fiber internet
highway providing connectivity to our nation and people service by 2025.
in this digital age. Using the latest fiber optic technology
In November 2020, your Company reached a milestone of
to deliver broadband services, your Company has
having one million residential subscribers. Our subscriber
committed itself to delivering the best quality and most
base grew two-fold to 1.04 million at the end of 2020
reliable internet service to the largest number of Filipinos.
compared to its year-ago level.
Amid the pandemic, this commitment has become
With the completion of its submarine cable laying to the
even more critical as more people have had to rely on
Visayas and Mindanao in the first half of 2021, connecting
their home broadband connectivity for remote work
the other major islands in central and southern Philippines
arrangements, online classes for students and teachers,
JOSE P. DE JESUS and entertainment through the lockdowns and quarantine
to its national fiber backbone, Converge expects to start
Chairman commercially launching its services in key cities and
restrictions. The internet has also been our lifeline
provinces in these regions by the second half of the year.
connecting us to our friends and family, in lieu of in-person
gatherings, and facilitating the delivery of vital services To support its fast-growing customer base, your Company
and activities such as tele-medicine, e-commerce, and has also tripled its customer support workforce and
COVID-19 news updates and information. added hundreds of service vehicles for install and repair
teams since the quarantine restrictions were put in place
FIBER-FAST BROADBAND
in March 2020.
As the only pure play, end-to-end fiber broadband network
in the country, your Company has been able to provide the MOST COMMITTED TEAM
fastest and most reliable internet service to our customers. Amid the pandemic, our own frontliners – our linemen
and customer service personnel – are working tirelessly
Global testing leader Ookla has validated that Converge
to install and connect new subscribers and respond to
offers the most consistent fixed internet performance in
customers’ concerns to deliver the reliable high-speed
Metro Manila, Central Luzon, Calabarzon (Cavite-Laguna-
fiber broadband that they need.
Batangas-Rizal-Quezon), Ilocos Region, and the Cordillera
Administrative Region (“CAR”) for the first quarter of On behalf of the Board of Directors and Management,
2021, with consistent average download speeds of up to we would like to thank you, our Shareholders, for your
42.93 Mbps provided to our customers. continued support and inspiring confidence to your
Company! We are grateful to you for taking this journey
Converge has also been consistently topping the Philippine
with us to deliver world-class fiber connectivity to our
ISP Leaderboard of leading online streaming platform
people.
Netflix. In its latest March 2021 report, Converge again led
the Netflix ISP Speed Index among all Philippine internet
service providers.
MASSIVE EXPANSION
To bring its fiber-fast broadband services to more people
across the country, Converge more than doubled its
fiber backbone and distribution network to over 55,000 JOSE P. DE JESUS
kilometers at the end of 2020 from its year-ago level to Chairman of the Board
Message from the CEO
DEAR FELLOW SHAREHOLDERS, from putting in place the government-mandated

health and safety protocols, we also purchased our
Without a doubt, 2020 is a year to be remembered own antigen testing machines for the regular testing
throughout history. A global pandemic brought of our frontliners and all employees needed for
widespread disruption and sweeping changes to critical operations. At the height of the community
every facet of our lives. In a matter of months, people, quarantine regulations, we provided transportation
businesses, industries, and governments had to service to our skeleton staff. For those who live in
relearn a new way of living and functioning while the far-flung areas, we provided lodging facilities within
threat of COVID-19 persists. the vicinity of the offices. Meanwhile, we continued to
encourage work from home arrangements whenever
For us in the Philippine fixed broadband industry, possible. We are also procuring vaccines for our
it meant an explosion in demand as most Filipinos employees and their immediate family members.
required reliable internet connection at home which
DENNIS ANTHONY H. UY became their office, classroom, and entertainment Converge was also among the first to respond to
CEO and Co-Founder center amid the community lockdowns. the needs of our immediate communities when the
pandemic left millions of Filipinos jobless. We donated
While Converge has been aggressively expanding its thousands of sets of personal protective equipment
all-fiber network since 2019, the sudden surge in new for healthcare workers to more than a dozen cities
installations and the resulting doubling of customer and municipalities in Pampanga and Tarlac. We have
base prompted our Company to accelerate plans and continue to distribute relief goods, mostly rice
to immediately serve the connectivity needs of our packs, to the most vulnerable barangays in the areas
subscribers despite the mobility restrictions. where we operate. We also provide fiber connection
for various COVID-related facilities, including the
QUICK CRISIS RESPONSE latest one for the Kamia Residence Hall in UP Diliman
Through our own construction company, Metroworks which has been converted into a quarantine facility
ICT Construction Inc., we were able to intensify fiber through a partnership with the Philippine Red Cross.
optic roll-out activities in areas where high-speed In 2020, we also augmented the government’s
broadband is needed the most. With our micro- response against COVID-19 by providing the Inter-
trenching and horizontal drilling technology, we were Agency Task Force for Emerging Infectious Diseases
able to quickly penetrate even the densest cities with fiber-fast broadband that allowed them to work
with minimum disruption to the community. We were and disseminate important information to the public
also able to scale up our technical teams for new more efficiently.
connections and repairs and add hundreds of service
vehicles to our fleet. Our customer service agents BRIDGING THE DIGITAL DIVIDE
tripled from since the start of the pandemic. As a product of the public school system, I am
overjoyed to see our Company helping bridge the
With the same urgency, we had to protect our digital divide in education by making online learning
employees, especially our frontliners such as the possible for our public school students through
installers and front desks in our business centers, a partnership with the Department of Education
so that we can also keep our customers safe. Aside (DepEd). With the support of local governments, we
are giving access to the learning portals of the DepEd
through our fiber broadband.
“The pandemic is not yet over and the emerging

new normal is pointing towards greater
digitalization that can only be supported by a
reliable, high quality broadband infrastructure.”
We also donated recently digital learning tools to partnership with the Keppel Telecommunications and With sheer grit and determination, we were able to that our pure, end-to-end fiber optic broadband is the
Aeta nursery students through a partnership with the Transportation Inc. of Singapore. Alcatel Submarine branch out from our roots in Pampanga to the capital most superior technology that can deliver the world-
Clark Development Corp. (“CDC”) under the CDC-OB Networks recently announced that they have started Metro Manila and the rest of Luzon. In 2019, we were class quality internet connection which a digitalized
Montessori Pagsasarili Family Care Program. Earlier, construction of the Trans-Pacific submarine cable able to deepen our presence in these areas as we nation needs.
we enabled Wi-Fi connectivity for my alma mater, system that is jointly owned by Keppel, Telin of embraced an equity investor, leading global private
Holy Angels University in Angeles City. Indonesia, and Facebook. When completed in 2024, equity firm Warburg Pincus, who infused $225 million We thank our shareholders for believing in our fiber
it will be the first international cable to directly link into the company. technology and dreaming with us in building a fiber-
PASSION FOR TECHNOLOGY Singapore to the US, with the Philippines in the powered nation!
Trained as an engineer, I have always been interested middle through a landing station in Davao. We will In the middle of the pandemic in October 2020, our
in technology and innovation. Thus, it has been my continue to add international capacity as we gear up Company went public with an offering size of P25
dream to fiber-power the country with world-class to be a data hub in the southeast Asian region. billion in the Philippines’ largest initial public offering
broadband connectivity so that our people can reap (“IPO”) in recent history. The net proceeds from the
the benefits of a digitalized nation. Just before 2020 ended, we also established a third IPO will be used for capital expenditure requirements
core backbone node that enabled a robust and to accelerate our nationwide fiber network rollout
We are moving closer to the realization of that dream redundant traffic routing in our network, making it to achieve our goal of reaching 55% of Filipino
as we connect the whole archipelago to our domestic more fault tolerant, to make our customers’ internet households by 2025.
fiber backbone. In April 2021, we were able to land experience better.
our submarine cables to the Visayas through San The pandemic is not yet over and the emerging new
Remigio in Cebu and to Mindanao through Bonbon in FASTEST GROWING DENNIS ANTHONY H. UY
normal is pointing towards greater digitalization that
Cagayan de Oro. I am still fascinated when I realize how our small Chief Executive Officer and Co-Founder
can only be supported by a reliable, high quality
technology company at the back of the Holiday Inn broadband infrastructure. At Converge, we believe
At the same time, we are futureproofing our network Hotel in Clark has matured to become one of the
with the addition of international capacity through fastest growing companies in the country.
our entry into the Bifrost Cable System under a
MESSAGE FROM THE PRESIDENT
DEAR FELLOW SHAREHOLDERS, income after tax margins from 21.3% in 2019 to 21.6%
in 2020.
2020 has been a pivotal year where we saw a shift
in the lifestyle of Filipinos, as the country entered a With disciplined deployment of capital, the Company’s
series of regional and nationwide lockdowns due to ROIC was at 20% in 2020. Our blended port utilization
the global pandemic. Even now, the different parts rates were at 30% by December 2020, higher than
of the Philippines are in some form of quarantine the 26% the year prior. This contributed significantly
lockdown. Under quarantine, fast and reliable internet to our ROIC despite the significant additions of 1.5
services emerged as a necessity – with growing million new FTTH ports to our network during the
demand for connectivity for work-from-home, year.
education, entertainment, and e-commerce, among
others. KEY OPERATIONAL HIGHLIGHTS
MARIA GRACE Y. UY We, in Converge, continue to be firm on our mission of Innovative Fiber Backbone Technology
President, Chief Resources Officer, providing high-speed internet access to the Filipino In July 2020, the Company has activated the
and Co-Founder people. If anything, this pandemic strengthened that country’s first 400Gb Dense Wavelength Division
commitment of giving reliable fast-speed internet Multiplexing (“DWDM”) metro backbone, which
service to our existing and potential new customers. allows us to increase our data traffic capacity and data
transfer speed without significant additional capital
FISCAL PERFORMANCE expenditure. The advanced DWDM technology allows
With strong residential subscriber growth and solid us to maximize the capacity of each optical fiber
enterprise business performance, the Company was through the use of different wavelengths of laser light
able to achieve industry leading consolidated revenue to transmit digital data.l.
growth of 71%, EBITDA margin of 52.5%, and ROIC of
20% for the full year 2020. Nationwide Expansion and Network Improvements
Converge continued to accelerate the nationwide
Consolidated revenue grew to P15,652 million in rollout of its fiber network under the “Go National”
2020. Revenues from our residential business almost Strategy, in which the Company aims to expand
doubled to P12,628 million on the back of strong coverage areas across the Philippine archipelago.
subscriber growth. We doubled our 2019 residential This will allow Converge to enter new markets in
subscriber base while maintaining our blended Visayas and Mindanao. Our fiber cables have landed
average revenue per user. On the other hand, our in Cebu province (Visayas) and Cagayan de Oro
enterprise business was able to grow revenues by (Mindanao) last April 2021. We are now connecting
9% despite the challenges faced by the Philippine the other islands in the Visayas region to the national
enterprise market, with the pick-up of demand from backbone. This network backbone connection is on
small-to-medium enterprise clients during the second track to be completed during the first half of 2021.
half of the year and the new wholesale contracts we We can then launch our services to the new areas in
entered into with the government and international Visayas and Mindanao.
carriers.
Our mid-term goal of reaching approximately 55%
Our EBITDA grew by 76% from 2019, reaching P8,218 nationwide household coverage by 2025 is on-track
million, with prudent cost management. Net income with both the “Go National” and “Go Deep” Strategies,
after tax increased 74%, resulting to higher Net the latter of which is where we continuously branch
“With strong residential subscriber growth

and solid enterprise business performance, the
Consolidated EBITDA Margin ROIC
Company was able to achieve industry leading
Revenue Growth
consolidated revenue growth of 71%, EBITDA
71% 52.5% 20% margin of 52.5%, and ROIC of 20% for the full
year 2020.”
out and increase our distribution reach and last mile during business hours under work-from-home This serves as a convenient channel for our subscribers in Davao, Philippines, allowing us to increase our
network within existing coverage areas. arrangements can upgrade their service for those to review and pay their bills and log tickets online. speeds and network diversity. In total, we expect to
times for an additional fee. This product is available spend approximately U.S.$100 million for the entire
Apart from the expansion of our network, we are to both residential and enterprise customers and We have ongoing improvements to our customers’ project. The completion of this proposed transaction
also dedicated to improving the quality and ensuring aims to provide better value to address the evolving digital life platform using new technologies for is subject to negotiation and execution of definitive
reliability of our services. We have invested in need of the market. innovation to ensure that we can serve our customers agreements, and relevant regulatory approvals.
hardening our network through the completion of fully and conveniently.
a third core network backbone node in December. One Million Residential Subscribers As we move forward towards our vision of providing
Our end-to-end pure fiber network has become Converge was able to reach the milestone of one In August 2020, we entered into an agreement with highspeed fixed broadband to the unserved and
more resilient with more efficient network traffic million residential subscribers in November 2020, Telstra International Limited to purchase international underserved in the Philippines, we are also committed
distribution and better ability to address outages. ending the year with approximately 1,038,000. We bandwidth capacity of up to 5Tbps at attractive to ensuring that our subscribers #ExperienceBetter
celebrated this milestone with all of our residential cost to the Company. This capacity is comparably with Converge.
International Bandwidth Capacity Investments subscribers by providing free permanent speed lower than our current average leased line costs. In
In our efforts to improve shareholder value through upgrades of up to 300Mbps. These new upgraded September of the same year, we started drawing
effectively managing our costs, Converge has entered plans are extended to our new subscribers, as wel down from this capacity, effectively reducing our
into two agreements to purchase international need for short-term leased line capacity.
bandwidth capacity through long-term Indefeasible Enhancing Customer Experience through Omni-
Right of Use (“IRU”). Channel Initiatives Last April 2021, we have signed a binding term
We have always been committed to providing quality sheet with Keppel Midgard Holdings Pte Ltd
Launched New Innovative Products customer experience for all of our subscribers. We (“KMH”), a wholly owned subsidiary of Keppel
Given the growing demand for more bandwidth from doubled our installation teams and increased the Telecommunications & Transportation, granting
both our residential subscribers and enterprise clients, number of our contact agents to meet the growing Converge an IRU for one fiber pair on the main
the Company has officially launched innovative number and demand of our subscribers. trunk of the Bifrost Cable System. This cable line will MARIA GRACE Y. UY
product plans during the first quarter of 2021. One of directly connect Singapore to North America once President, Chief Resources Officer, and
these is the “Time of Day,” which provides the option Aside from improving real-person customer care, it’s completed by 2024. Co-Founder
to customize and adjust the speed available to them we also launched our mobile application Converge
in accordance with their usage at a given time. For Xperience App during the third quarter of last year. In addition, KMH and Converge will develop a
example, subscribers who require more bandwidth branch on the Bifrost Cable System that will land
Experience better
The origins of Converge and our journey to provide Filipinos a better internet experience
Who We are Vision Values

Converge Information and Communications Technology residential and enterprise customers. Our fiber internet World class ICT organization that empowers EXCELLENCE
Solutions, Inc. (PSE: CNVRG) is the fastest-growing technology allows for greater speed and bandwidth people, businesses & nation to be their best. Delivering the best possible quality experience at
fiber internet services provider in the Philippines today. that cannot be matched by legacy broadband and any given time, at any given opportunity
We are the only pure-play high-speed fixed broadband wireless technologies.
provider, with an exclusive focus on serving the
Philippines with industry leading optical fiber-based We want to be known as the brand with superior Mission INTEGRITY
Ensuring honesty and transparency at the
connectivity services. products offering the best value. We are the simple, forefront, with nothing but premium service
fast, and reliable choice: simple in the sense that Delighting our customers by taking care of our
delivery at the core
own.
We own and operate the fastest-growing, end-to- our straightforward and uncomplicated products
end fiber network in the Philippines, which is also and processes are designed to provide what the CUSTOMER-FOCUS
one of the newest in the country. With over 55,000 market truly requires; fast in terms of core products, Takes pride in putting the customers’ needs and
kilometers of fiber as of December 31, 2020, our delivery of service, and response time; and reliable by
wants as the main driver in all efforts
network is among the most extensive in the country. consistently delivering the best possible service.
Our network is comprised of a fiber backbone
VELOCITY
that stretches from the northernmost tip of Luzon Our commitment is to reach the underserved and Being able to deliver exceeded expectations with
Island to its southernmost end, as well as a fiber unserved areas in the country and upgrade the
timeliness as a consideration
distribution and last-mile network that covers more Filipino online experience by giving them the world-
than 300 cities and municipalities across Luzon class connectivity they deserve. We want Filipinos to
(including Metro Manila), as of December 31, 2020. #ExperienceBetter. TEAMWORK
Acknowledges that delivering standard-
With our fiber-powered network, we provide the
redefining service to the Filipinos, will take
absolute premium digital experience for both our
everyone’s collective high-quality efforts
EMPOWERMENT
Committed to powering the nation with the
connectivity they need to uplift their lives
History of Converge
In less than a decade, we have evolved into becoming leading optical solutions from a United States-based
the fastest-growing high-speed fixed broadband networking systems, services, and software company.
operator in the Philippines. We have significant This deployment provides us with a programmable,
presence in Luzon and have connected our nationwide dynamic setup of connections that increases
backbone to Visayas and Mindanao in April 2021 adaptability and resiliency. In 2020, we debuted on
the Philippine Stock Exchange with a total offering
In 2019, we executed an agreement with a leading P25 billion. With this infusion of capital,
size of around =
global private equity firm Warburg Pincus for a we are well-placed to further expand nationwide,
U.S.$225 million primary investment (through reach the unserved and underserved, and create
Coherent Cloud) into our Company to accelerate our long-term value for all.
nationwide network expansion plans.
With unwavering commitment, Converge pushes
In July 2020, we activated the Philippines’ first forward to realize our aspiration to bring world-class
400Gbps metro backbone utilizing industry- internet connectivity to the Filipino nation.
Organizational Structure
As of December 31, 2020
Pentastar Holding Co. Inc.

Converge was born out of an advocacy to change In 2007, ComClark evolved into Converge as it is
a status quo. Seeing the nation’s collective dismay known today; our primary purpose is to provide 100% 100%
with regards to internet connectivity, we entered the broadband internet and other connectivity services 20%
KGU Pyrite Holdings Co., Inc. Pacific Kabelnet
market with our sights set on becoming a challenger to residential and enterprise customers nationwide. Holdings Co. Inc.
Cloud Gateway
brand that promises high-speed pure fiber internet 50% Limited
service delivering the best possible experience at the In 2009, by virtue of Republic Act No. 9707, we ComClark Network &
most affordable price. earned our franchise to construct, install, establish, Technology Corp.
20.43% 15.83%
operate and maintain our telecommunications
Public 63.74% Coherent Cloud
Converge traces its roots to Communications Clark systems throughout the Philippines for a term of 25 Ownership Investments B.V
(“ComClark”), a Pampanga-based cable TV provider. years. We then obtained a Provisional Authority from Converge Information
and Communications
In 1996, Mr. Dennis Anthony Uy founded ComClark the National Telecommunications Commission to Technology Solutions Inc.
and built the first fiber link between Angeles City install, operate and maintain a nationwide broadband
and the Clark Special Economic Zone. The company internet network in 2011.
100% 99%
evolved over the years, introducing new services and
expanding to adjacent provinces such as Bulacan, By 2012, we have commenced our fixed broadband Converge ICT Solutions Pentagon Holding Co. Inc.
Bataan, and Zambales. Through his journey, Mr. Uy saw (Global) Limited (Formerly: Pentagon Real
internet operations. The following year, we launched (Incorporated in Hong Kong) Properties Unlimited. Inc.)
a need which he aimed to address—the Philippines’ fixed broadband services in Metro Manila. Our
lagging internet speed. subsidiary, Metroworks ICT Construction Inc., was
incorporated in 2013 to manage the network rollout. Metroworks ICT
100% Construction Inc.
Fiber Internet Technology
Converge is the pioneer in fiber optic installation optic cables so customers can enjoy consistently fast
in the Philippines. The company’s state-of-the-art Internet speeds.
technology delivers end-to-end pure fiber optic
connections to homes and businesses, providing a Fiber optic technology is considered the future of
fast and seamless internet experience. data transmission. It offers the most potential for
high-speed data transmission and is the clear solution
The technology uses fiber-optic cables, which can for customers’ ever-growing demand for bandwidth.
send data at a rate of around 70% the speed of light.
With this, data can travel almost instantaneously to a As a pioneer in Fiber optic installations, Converge has
distance of 80 to 100 kilometers. dedicated its experience and expertise to ensuring
that customers receive the best in networking
Fiber-optic cables are lightweight, durable, and infrastructure, facilities management, broadband
non-flammable and are therefore not as susceptible implementation and full telecommunication
to severe weather conditions as other traditional infrastructure and support.
cables used for internet connections. This helps in
minimizing physical and electrical interference thus Through pure end-to-end fiber internet, Converge is
resulting in very little downtime. able to bring to fruition the vision of co-founder Dennis
Anthony H. Uy to provide first-world connectivity
A fiber connection also allows symmetric connectivity experience to Filipinos.
which lets you download and upload files at the same
time without a loss in bandwidth. There is no data
congestion so data is delivered instantly. Data also
does not degrade when it passes through fiber-
ONWARD TO THE FUTURE: ENVISIONING

CONNECTIVITY FOR ALL FILIPINOS
The strength of a fixed broadband service is anchored the Viasayas and Mindanao. This expansion includes Mr. Uy realizes that although DepEd already has enhances public service nationwide through faster
largely on the extent of its network. With this in mind, the laying down of 1,800 kilometers of submarine the platform and the educational content readily and more reliable access to information and national
Converge CEO and co-founder Dennis Anthony H. sea cables, connecting over 20 landing stations available, it does not have the digital infrastructure to databases.
Uy set a goal to ensure that the Converge network, throughout the country. bring such content to those who need it most---the
which was initially set up in Luzon, would eventually public school students. And this is what his plan aims Converge envisions to be a major player in this national
cover the whole of the Philippines. Converge’s national backbone is expected to be to address. broadband program by providing the highest level of
completed within the first half of 2021 with a service technology that will allow national connectivity to
This grand vision has guided Converge to begin work launch in select regions in Visayas and Mindanao in “A free and reliable fiber-optic connection would happen. In line with this, Converge was able to win a
on extending its fiber footprint to areas yet to be the second half of the year. definitely help in uplifting the country’s public bidding that will allow the company to work with the
covered by fiber internet technology. education system,” Mr. Uy reveals. “Although this DICT and participate in Phase 1 of the NBP.
CONNECTING PUBLIC SCHOOL STUDENTS may take some time, this is what I envision for the
CREATING A NATIONAL FIBER BACKBONE One of Mr. Uy’s long-term plans is to be able to Philippines.” “Our long-term aspiration is to bring to the Philippines
In order to achieve this lofty goal, Converge has to provide a free, stable, and reliable internet connection the newest available technology that will benefit the
build a national backbone that would connect the to public school students, on the road to making the ENVISIONING A NATIONAL BROADBAND entire country,” Mr. Uy shares.
three main island groups of the country--Luzon, country’s public school system digital-ready. A national broadband infrastructure is key to any
Visayas, and Mindanao. This became the objective developing economy. Knowing this, the Department
behind the creation of Converge’s “Go National” Although Mr. Uy admits that this plan would take of Information and Communications Technology
initiative. quite some time to complete, Mr. Uy and Converge (“DICT”) has come up with the National Broadband
have begun striking up partnerships with the Program (“NBP”) with the prime objective of deploying
Through the “Go-National” strategy, Converge has most important stakeholders of this project--the fiber-optic cables and wireless technologies across
been working to expand its domestic backbone Department of Education (“DepEd”) and local the country to provide broader, faster, and more
to reach millions of households and businesses in government units. affordable access to the internet for Filipinos. The
regions previously unserved or underserved, such as program also empowers government agencies and
Experience Excellence
Driving growth and serving more, anchored by a culture of excellence
Financial AND Operational Highlights Key Consolidated Financial Highlights

ANNUAL REVENUES ANNUAL EBITDA ANNUAL EBITDA MARGIN 2018 2019 2020
(In Million Pesos) (In Million Pesos)
16,000 1 5 , 6 52 10,000 55 Income Statement Data (in Million Pesos)

Revenues 5,055 9,140 15,652
3 ,0 24
14,000
Cost of Services (2,329) (4,441) (7,065)
52.5%
8,000 50
12,000
51.0%
50.4%
8,218
12,628
10,000 9,140
6,000 45
Gross Profit 2,726 4,699 8,588
8,000
2,786
40
General and administrative expenses (913) (1,415) (2,772)
4,000
4,665
6,000 5,055
Provision for impairment of trade and other receivables (125) (530) (721)
6,354
4,000
Unrealized fair value loss on financial asset at FVTPL - - (27)
3,151 1,904
2,000 35
2,549
2,000 Other income, net 52 18 360

0 0 30
2018 2019 2020 2018 2019 2020 2018 2019 2020
Profit from operations 1,740 2,772 5,429
Residential Enterprise
Finance costs 71 275 550
PROFIT AFTER INCOME TAX RESIDENTIAL SUBSCRIBERS/ ENTERPRISE CUSTOMERS
(In Million Pesos; after proforma adjustments) CUSTOMERS
Profit before income tax 1,669 2,497 4,879
1,200 12,000
Income tax expense (428) (593) (1,491)
3,500
3,388
3,000 1,000 10,000

Profit for the year 1,242 1,905 3,388
1,038,321
11,090
2,000
Net income margin 24.6% 20.8% 21.6%
10,083
800 8,000
2,500
600 6,000
Profit for the year after proforma adjustments 1,000 1,942 3,388
1,942
6,539
1,500
529,629
400 4,000
1,000
EBITDA 2,549 4,665 8,218
1,000
500 200 2,000

264,865
EBITDA margin 50.4% 51.0% 52.5%

0 0 0
2018 2019 2020 2018 2019 2020 2018 2019 2020
HOUSEHOLD COVERAGE PORTS DEPLOYED RETURN ON INVESTED CAPITAL Balance Sheet Data (in Million Pesos)
(In Million Units)
Total Assets 12,720 31,159 56,712
25 4 25 Total Debt 2,725 7,950 11,314
Total Stockholders’ Equity 4,609 12,168 27,775
24.5%
20 20
3.5
3
20.3%
20%
19.70%
15 15
Cash Flows Data (in Million Pesos)
2
Net cash flow from operating activities 2,032 1,685 7,299
13.0%
10
2.0
10
Net cash flow used in investing activities (4,089) (7,381) (14,507)
1
5 5 Net cash flow from financing activities 2,114 11,474 13,872
1.1
5.8%
0 0 0
Net increase in cash and cash equivalent 56 5,778 6,663
2018 2019 2020 2018 2019 2020 2018 2019 2020
Operational Highlights
HIGH CAPACITY BACKBONE

We activated the Philippines’ first 400Gb DWDM
metro backbone last July 2020, utilizing industry-
leading optical solutions from a United States-
based networking systems, services, and software
company. This deployment provides us with a
programmable, dynamic setup of connections that
increases adaptability and resiliency.
The DWDM technology is triple redundant, thereby

ensuring high levels of reliability and in line with our
design philosophy.
RAPID NATIONWIDE EXPANSION OF

CONVERGE’S LEADING FIBER OPTICAL
NETWORK
The Company continued to accelerate the
nationwide rollout of its leading fiber network
throughout 2020. More than 28,300 kilometers
of fiber optic cables were added during the year,
In FY2020, Converge’s expansion to the Visayas network became stronger and more resilient with
expanding our backbone and distribution network
and Mindanao regions has been progressing as a more efficient network traffic distribution and
by 106% from about 26,700 kilometers laid down at
planned and we plan to substantially complete our better ability to address outages.
the end of 2019 to approximately 55,000 kilometers
backbone in these new regions in 1H2021, allowing
at the end of 2020. We started 2020 covering
us to fully commercially launch services by 2H2021. With the improvements we are implementing
167 cities and municipalities. With our network
to our systems, Converge strives to ensure that
expansion, we were able to extend our coverage to
Apart from the regional expansion of our network, subscribers can enjoy the benefits of quality
additional 149 cities and municipalities by end of
Converge is dedicated to improving the quality internet services, including video streaming.
the year.
of services it provides to the existing coverage Converge again ranked first in Netflix’s ISP Speed
areas. The Company has invested in hardening Index for the Philippines in December 2020, which
The Company was able to install its highest number
the network to increase redundancy and network ranks internet service providers in terms of prime-
of ports in a year during 2020, with almost 1.5
quality. Previously, the main network backbone time Netflix performance. “Netflix’s stories are best
million ports installed, 97% of which being FTTH
of Converge was connected to two core nodes delivered on a strong internet network, which is
ports. With our total 3.5 million deployed ports,
located in Metro Manila and Pampanga. With the not only about speed but also about latency, jitter
our network coverage reached 25% of nationwide
completion of a third core network backbone node and packet loss.” said Converge Chief Operations
households. The Company continues to be on track
last December, the Converge end-to-end pure fiber Officer Jesus “Boboy” Romero.
to achieve its target of reaching approximately 55%
of total households in the country by 2025.
NATIONWIDE BACKBONE EXPANSION

as of December 31, 2020
INTERNATIONAL BANDWIDTH CAPACITY LAUNCH OF NEW INNOVATIVE PRODUCTS bandwidth intensive entertainment content such 2020, the Company had approximately 1,038,000
INVESTMENTS The Company recognized the need of our enterprise as online games and video streaming at night. We residential subscribers, which is almost double the
In August 2020, we entered into an agreement with customers for flexibility in connectivity speeds offer Day Plan or Night Plan, which similarly boosts 2019 residential subscriber base of almost 530,000.
Telstra International Limited to purchase 5Tbps of during certain periods of the day. To address their speed to twice of their subscribed plan during In the last quarter we added a total of 176,944 new
international bandwidth capacity, providing a 15- this requirement for flexibility, we launched our their chosen time of day. residential subscribers (gross adds), representing
year IRU on two major intra-Asia networks for an Dedicated Internet Access Time of Day product a 120% increase compared to the total gross
attractive cost. This 5Tbps of bandwidth capacity is in February 2021. This provides our enterprise “Right now, for our customers to better adjust to subscriber additions in the fourth quarter of 2019.
equivalent to approximately seven times our current customers with customized internet options with the changing norms, they need a tool that adjusts In the fourth quarter of 2020, more than 95% of
leased bandwidth capacity, and has been priced at double their subscribed bandwidth during their to them, as well. By introducing our Converge Time these newly connected subscribers continue to be
an aggregate unit cost that is meaningfully lower chosen preset period, without having to double of Day products, we aim to provide our subscribers first time fixed broadband users, highlighting the
compared to our average contracted lease costs at their monthly subscription fee. Likewise, our SME from all segments custom internet options, giving unserved and underserved state of the broadband
present. This IRU is subject to certain conditions. customers can now avail of the FlexiBiz plan where them more bandwidth when needed and, equally market in the Philippines.
internet speeds are doubled during peak working important, enabling them to save on costs.” Mr.
We drew down on this capacity starting September hours of the day (7:00AM – 6:59PM). Romero said. Converge CEO Mr. Dennis Anthony Uy noted that,
2020, which resulted to lower bandwidth costs “As the home became both office and classroom
during the fourth quarter of the year. This We also launched the Converge FiberX Time of RESIDENTIAL SUBSCRIBER BASE amid the global pandemic, we further accelerated
transaction is consistent with our strategy of Day plan for our residential subscribers, to give our DOUBLED IN 2020 our fiber network rollout to deliver high-speed
forming partnerships with global carriers to secure customers the option to avail of higher bandwidth In November 2020, Converge reached the important broadband connectivity to more Filipinos, reaching
proprietary access to bandwidth capacity on during the period of their choosing. Households milestone of one million residential subscribers underserved and unserved areas in the country.”
certain key international network routes. can opt for higher bandwidth for work from home and celebrated by providing free speed increases
and online schooling requirements during the day, to its subscribers of up to 300Mbps. By end of
or alternatively, select seamless consumption of
Converge’s monthly residential churn rate was “We have always been focused on giving our 4Q2020. In December 2020, Converge installed 86% engagement channel. Converge also onboarded
approximately 1.35% during the last three months customers the best possible experience. Thus, of new NCR subscribers within seven days and 64% around 350 new outsourced contact center agents
of 2020, down from 1.63% in the third quarter of the we have doubled our customer contact agents, within one day of application, respectively. These in FY2020, to respond to customer queries, leading
same year. The low rate of voluntary churn (c. 5% bringing our answer call rate to nearly 90% in the augmentations, combined with improvements in to reduced drop call rates for both our customer
of total churn) reflects Converge’s ability to meet fourth quarter of last year. At the same time, we the customer onboarding and installation process, care and service desk teams. By the fourth quarter
or exceed its customers’ expectations on product are continuously scaling up our installation and will allow us to further increase rapid conversion of 2020, our Answer Call Rate stood at an average
quality, value for money and customer service. repair teams. All these initiatives are supported from application to installation. of 87%, up from 76% in the third quarter of the year.
by sustained investments in our customer digital
ENHANCING CUSTOMER EXPERIENCE THROUGH infrastructure to further improve customer During the third quarter, the Company rolled out
OMNI-CHANNEL INITIATIVES experience,” said Converge President and Chief its mobile application Converge Xperience App,
The Company continues to commit to providing a Resources Officer Grace Uy. which offers a convenient channel for its customers
quality customer experience for both existing and to review and pay their bills, and also allows
potential new subscribers. Converge continues To be able to service the surge in demand for our customers to log tickets online. As of December
to be highly focused on enhancing the overall products throughout 2020, the Company more 2020, our Converge Xperience App has been
customer experience by strengthening its customer than doubled the number of installation teams as downloaded more than 348,000 times, allowing us
care functions and digitizing the journey of our compared to before the ECQ lockdown, enabling us to communicate with approximately one third of our
customers. to substantially reduce the backlog of installation in subscriber base through this new mobile customer
Experience Superior
Giving Filipinos the quality connectivity they need and deserve
Go National
Converge’s expansion efforts are anchored on our terms of broadband services by other operators
“Go National” strategy which focuses on our plan to which was why they are seen as attractive markets
expand into new coverage areas in the Philippines. for Converge to expand into. We expect that most
of the new subscribers in these areas to be first-
When we initiated the “Go National” strategy in time high-speed fixed broadband subscribers.
2019, the plan was to expand beyond Luzon. We
kicked off this strategy with the construction of our In 2020, our “Go National” expansion strategy
nationwide domestic backbone that will connect moved forward despite the mobility restrictions
Luzon with Visayas and Mindanao. caused by the COVID-19 pandemic.
The initial plan was to first expand to Cebu City Work continued as we entered the first quarter
while strategically entering other new markets and of 2021. Bold Maverick, our main cable lay vessel,
sub-markets in both the Visayas and Mindanao as commenced cable-laying operations in March
we complete our nationwide backbone. of 2021. Moreover, the construction of our cable
landing stations was substantially completed.
Following the same disciplined and purposeful
approach to our expansion in new locations in the With all these, we were able to connect the Visayas
past, we ventured into new areas by performing and Mindanao regions to our nationwide backbone
data-driven capital efficiency analyses to determine in April 2021. We are aiming for commercial launch
whether we will meet our internal ROIC hurdles if we by the second half of the year.
expand our network into the cities we are eyeing.
There are currently hundreds of attractive pockets

of demand in the Visayas and Mindanao, including
Cebu City and Davao City, which are the second and
third largest cities in the Philippines, respectively.
These areas have been largely under-served in
products and services
Converge offers high-speed fixed broadband internet download speed of 300Mbps and has a price of iBiz/flexiBiz Plans
services to residential customers and high-speed P4,500 a month, while FiberXtreme 7000 has a Our iBiz Plans are FTTP broadband internet plans
fixed broadband internet services, private data download speed of 500Mbps at P7,000 per month. designed for our SME customers. The iBiz plans
network solutions, cloud and colocation services and provide subscribers with a dedicated IP address, 24-
other connectivity solutions to enterprise customers We also launched the Converge FiberX Time of hour service desk and support teams, and certain
of varying sizes, industries and types. Day plan for our residential subscribers, to give our guaranteed service level agreements (“SLAs”). The
customers the option to avail of higher bandwidth flexiBiz plan allows the SME customer the option of
RESIDENTIAL SERVICES during the period of their choosing. Households boosting the speed at a certain specified period of the
can opt for higher bandwidth for work from home day.
FiberX, FiberXtreme, and FiberX Time of Day and online schooling requirements during the day,
FiberX and FiberXtreme are residential broadband or alternatively, select seamless consumption of Direct Internet Access
services via an FTTH connection. Our flagship product bandwidth intensive entertainment content such as Our Direct Internet Access (“DIA”) services
is FiberX1500, an affordable entry-level plan aimed at online games and video streaming at night. We offer are dedicated, ultra-high-performance internet
the middle-income market which is the core of our Day Plan or Night Plan, which similarly boosts their connectivity solutions tailored for our large enterprise clouds privately, as if these were part of their own
customer base. It has a download speed of 25Mbps speed to twice of their subscribed plan during their and corporate customers. We offer multiple variations wide-area network. This service caters specifically to
with no data caps and, as it name suggests, is offered chosen time of day. of the DIA service, all of which are provided with our large enterprise and corporate customers.
at a price of P1,500 per month. enterprise-grade SLAs, 24-hour all in-source support
Air Internet teams and 24-hour service desk and restoration team Colocation Service
We also have the FiberX 2500 and FiberX 3500 plans Our Air Internet brand provides home broadband service. We also offer DIA-Time of Day, which allows Suited for large enterprise and corporate customers,
that cater to the mass-affluent households. FiberX services via hybrid fiber coaxial (“HFC”) connection, boosted speed during their chosen preset period. our colocation service offers a reliable data center
2500 has a download speed of 75Mbps with no data mainly in Central Luzon. Air Internet has plans that environment for storing data and applications.
caps and is priced at P2,500 per month. FiberX 3500 have a fixed monthly fee ranging from P1,000 to Local Private Data Network Solutions It allows customers to benefit from reduced IT
has a download speed of 150Mbps with no data caps P1,350 for maximum download speeds ranging from Our local private data network solutions cater to our infrastructure and management costs, reliability,
and is offered at a price of P3,500 per month. 5Mbps to 15Mbps, with no data caps. large enterprise, corporate, and wholesale customers. access to various telecommunication requirements,
These solutions provide point-to-point connectivity security, required bandwidth at reasonable rates, and
Our two FiberXtreme plans target the more affluent In line with our plans to focus exclusively on our FTTH between two or more sites within the Philippines. They 24/7 dedicated support.
homes in the country. FiberXtreme 4500 has a rollout, we are discontinuing our HFC rollout although come with enterprise-grade SLAs as well as dedicated
we will continue to maintain our existing HFC 24-hour service desk (hotline) and support teams.
network. As such, we will be migrating a significant
number of our Air Internet subscribers to FTTH plans International Private Data Network Solutions
as we continue our FTTH rollout and market FTTH Catering primarily to our large enterprise, corporate,
upgrades to these subscribers. and wholesale customers, our International Private
Data Network Solutions provide point-to-point
ENTERPRISE BUSINESS connectivity between two or more local and
Our Enterprise Business offers high-speed broadband international sites and come with enterprise-grade
internet services and other connectivity solutions to SLAs, as well as dedicated 24-hour service desk and
enterprise customers. Our enterprise solutions are support teams.
delivered through end-to-end fiber networks via fiber-
to-the-premise (“FTTP”) technology. Our Enterprise Ethernet-Cloud Direct Connect Service
Service caters to four target customer groups--large This service provides a private, dedicated and
enterprises, corporates, small- and medium-scale high-throughput network connection between an
enterprises (“SMEs”), and wholesale customers--and enterprise private network and public cloud service
has six variants. providers, allowing businesses to interact with these
innovations
Converge is currently the largest and fastest- capabilities of WiFi 6 allow consumers to enjoy an In the latter part of 2020, the “Time of Day” product backbone to be capable of being scaled to a higher
growing high-speed fixed broadband operator in improved online experience in their homes. was launched for both residential and enterprise 800Gbps capacity to support future growth.
the Philippines, with a 25% household coverage customers. With this product, subscribers who
across the Philippines and 43% household coverage The service is delivered through the Velop MX5300 require more bandwidth during business hours DIA UPLOAD: ENTERPRISE-SPECIFIC
in Luzon. The company’s leading position in the WiFi 6 Mesh system, which comes with the next- under their work-from-home (“WFH”) arrangements INNOVATION
fixed broadband industry, however, was made generation orthogonal frequency-division multiple or during school hours under online schooling Converge also introduced an innovation that caters
possible by the innovations it has introduced since access (“OFDMA”) technology which decreases arrangements can upgrade their service for those specifically to its enterprise customers. Dubbed the
its inception. The year 2020 was no different as latency in high-density environments to deliver high- particular times for an additional fee. DIA Upload, this service provides higher upload
Converge launched several innovative products and speed WiFi to multiple devices simultaneously. The bandwidth than download bandwidth, which is
services. Velop MX5300 pre-order exclusive was launched in Converge launched this innovation to address the best for customer sites where the outbound traffic
October 2020. specific needs of its customer base, particularly is higher than inbound bandwidth. This upload-
ACTIVATION OF A 400GBPS METRO BACKBONE during the pandemic when mobility restrictions priority service is best for servers that host websites
Converge’s key innovations in 2020 include the During the year, Converge also launched the “10-for- have forced workers and students to do most or locations performing regular backup to the cloud
activation in July of the first 400Gbps metro 99” add-on as a regular product that FiberX 1500 of their work at home, using their broadband via an Internet connection.
backbone which utilizes industry-leading optical subscribers can avail anytime. This product allows connection at specific times of the day.
solutions from a United States-based networking the company’s existing FiberX 1500 customers to MORE INNOVATIONS AHEAD
systems, services, and software company. enjoy additional 10 Mbps for an additional service This innovation provides Converge with a With the constant growth in demand for broadband
fee of P99 per month. The bandwidth upgrade programmable, dynamic setup of connections that access and bandwidth, Converge continually
INDUSTRY FIRSTS: ADDRESSING THE NEEDS OF was originally launched for a limited time and, due increases adaptability and resiliency. Knowing the finds ways to enhance its services through future
THE CUSTOMERS to the success of the initial offering period, was continuous growth of demands in broadband in innovations that will make its fixed broadband
Converge, in partnership with Linksys, was the first relaunched in 2019 to address customer demand the Philippines, Converge ensured that this metro service even faster and more reliable.
to offer to its subscribers WiFi 6, a long-awaited for faster speeds. backbone is future-proof and designed the metro
innovation in wireless technology. The expanded
world class partnerships INTERNATIONAL TRANS-PACIFIC BANDWIDTH INVESTMENT: “BIFROST”
North America
Japan
New synergies for greater connectivity and accessibility

Our aspiration to elevate the internet connectivity of Upon completion in 2024, the Bifrost Cable System
Filipinos has propelled us forward. And it continues to will bring increased speeds and greater reliability that
guide us as we grow our presence across the country. will significantly elevate our digital experiences. With
We take this aspiration and aim to create a cycle of the advent of change in the way we live—becoming Taiwan
superior online experiences for customers. increasingly dominated by interconnectivity, we Hong Kong
leverage on this world-class advantage in terms of
To realize this, we constantly enhance and expand our capacity and resilience to meet demands, serve more
capabilities—innovating and fostering both national users, and deliver the high-speed connection Filipinos Philippines
and global partnerships that complement our mission deserve. Guam INTERNATIONAL NETWORK
and would enable us to advance our goals.
INNOVATING EDUCATION
A WORLD-CLASS ADVANTAGE Like all sectors, the pandemic triggered a change in
the education system. As schools are forced to adopt Singapore
At Converge, we are always looking ahead. We plan
forward, thinking about the future; how we can further a virtual learning environment, we join hands with the
propel our goals, and how we can deliver the promise we Department of Education (“DepEd”) along with our
Indonesia
set out at the beginning. Supporting our commitment, affiliate, Pacific Kable Net to ensure the delivery of
we partnered with Keppel Telecommunications & digital learning materials.
Transportation; securing Converge a crucial internet
greater internet accessibility in the country, Converge socio-economic opportunities driven by a seamless
capacity through its Bifrost Cable System project. Signing a tripartite Memorandum of Agreement, we
takes part in the Department’s Free Wi-Fi for All internet connection.
commit to supporting the public education sector
Program as a service provider. Paramount particularly
The Bifrost Cable System is a 15,000-km trans- transform as it responds to the challenges underlined
at this time when internet access has become a key ENHANCED PAYMENT CONVENIENCE
pacific undersea cable project that would directly by the sudden shift to online learning. Through
component of our day-to-day, we fast-tracked and Our commitment to superior experiences extends
connect Singapore to North America in the shortest this agreement, we provide DepEd access to our
have completed the building of Wi-Fi infrastructure beyond connectivity. It is a 360-degree commitment
possible route via Indonesia, Philippines, and Guam. fiber connectivity and cable channel. This will aid
in the areas that DICT has contracted us for. that includes how we serve customers. And as part
Furthermore, Bifrost is set to be the largest capacity the agency in making its digital learning platforms
such as DepEd TV, DepEd Commons, Learning of our continuing efforts to improve the end-to-end
high-speed transmission cable across the Pacific
Management System, and Learning Resources Through public bidding, we were awarded a total customer experience, we have partnered with leading
Ocean.
Portal more accessible for learners, especially for of 186 sites including key areas of Manila, Pasay payment kiosk operator BTI Payments to provide
the disadvantaged and marginalized. Additionally, City, and Quezon City. Among the department’s our subscribers a quick and easy additional payment
Entering into a binding term sheet, Converge gains an contracted suppliers, we are the first to fulfill its
we empower DepEd as it pushes forward the Public method.
Indefeasible Right of Use for one fiber pair on the main service requirements. Following the completion of
trunk of the cable system. This will allow us to activate Education Network intended to provide connectivity
to all DepEd offices and public schools, particularly our public wireless broadband infrastructure in those With over 500 self-service Pay & Go kiosks—some
up to 15 Tbps of internet capacity. Additionally, areas, users would be able to access the internet in
those in remote areas. operating 24/7—subscribers can settle their bills in
we commit to joint development of a branch of the strategically mapped public spaces including parks, more locations, with shorter queues, and at any time
Bifrost cable system in the Philippines with Davao as schools, government hospitals, healthcare centers,
Together, we establish a digital education network convenient to them. Moreover, as these kiosks process
a landing station. Consequently, Converge will have an train stations, as well as national and local government
that will not only ensure educational continuity payments in real time, customers can guarantee that
IRU of the entire Davao branch. Thereby earning us a offices among others.
during these times but, more importantly, innovate their payments will go through without delay.
top-notch advantage as an internet service provider.
Complemented by our own nationwide undersea education, particularly in public schools.
Not only will this undertaking aid the nation towards Focusing on our customers’ needs, we continue to
cable system, we would be able to freely distribute our
digitalization but it will also help bridge the evident align ourselves in excellence. From first-rate products
capacity all over the country. A CONNECTED NATION
disparity among Filipinos’ internet connectivity. By to utmost service convenience, Converge brings about
Sharing the Department of Information and
improving accessibility, we help empower the public— a seamless holistic customer experience.
Communications Technology’s (“DICT”) endeavor for
enabling them to stay connected as well as seize
Awards and recognition
As we grow fast, so do we swiftly push our rise to the top. Converge maintains a culture of excellence that
enables us to power through.
‘GROWTH CHAMPION’ by consumer data firm Statista,
For his exemplary leadership and acumen as a business leader, our Chief Executive Officer Mr. Dennis Uy together with international publications Financial Times and
bagged a couple of the most prestigious awards for entrepreneurs in Asia-Pacific. Converge also claimed Nikkei Asia, and the Philippine Daily Inquirer. The survey which
several accolades as local and international organizations recognized our rapid growth. This included covered 2016 to 2019 revenue growth reported Converge as
Fastest Growing Fibre Internet Service Provider from the 2020 International Finance Awards—which was the third fastest-growing company in the country. This landed
conferred to the Company for the second time in a row. Converge on the 135th spot in Statista’s annual ‘500 High Growth
Companies’ list in the whole of Asia.
AWARDS AND RECOGNITIONS (o
2020 ENTREPRENEUR 2020 MASTER ENTREPRENEUR

OF THE YEAR AWARD AWARD
11th Asia CEO Awards 2020 Asia-Pacific Enterprise Awards
AWARDS AND RECOGNITIONS (others)
GROWTH BUSINESS PARTNER OF THE FINALIST -
INTERNATIONAL FINANCE
YEAR BEST BRAND EXPERIENCE
AWARDS 2020
This is to certify that
Converge ICT Solutions

Nordic Chamber of Commerce FINALIST -
Has been awarded
FASTEST GROWING FIBRE INTERNET
SERVICE PROVIDER of the Philippines BEST SOCIAL MEDIA EXPERIENCE
Fastest Growing Fibre Internet
Service Provider
Philippines
PHILIPPINES
HONORARY MENTION -
The Nordic Chamber of Commerce of
International Finance Sunil Bhat, Director
Publications Ltd. International Finance
FINALIST – CONTACT
VBEST CENTRE
Best Brand Experience
the Philippines also lauded Converge at
FINALIST – Best Social Media Experience
the 2021 Nordic Sustainability Awards
HONORARY MENTION – Best
Asia Excellence Contact
Awards Centre
2020
FASTEST GROWING FIBRE INTERNET CIRCLE OF EXCELLENCE– last March. Converge was named the
TECHNOLOGY COMPANY
Technology Company of the Year
SERVICE PROVIDER chamber’s Growth Business Partner of the
OF THE YEAR Year, owing to the company’s momentous
2020 International Finance Awards
FINALIST – Best Brand Experience revenue and employment growth
Asia Circle of Excellence
“Fastest Growing Fiber– Best
FINALIST Social Media
Internet Experience
Service
HONORARY MENTION – Best Contact Centre
Provider” in the 2020 International Finance
Awards
Experience COMMITMENT
Empowering our customers, our people, and our nation
CUSTOMERS the advantages of choosing Converge as internet To complete the simplified and enhanced customer Meanwhile, we recognize the specific requirements
We are all about transforming our subscribers’ provider. According to a Residential Survey by The experience, we launched the Converge Xperience of our Enterprise clients, and have organized
digital experience—from acquisition to retention, we Nielsen Company, 58% of our current subscribers App, a self-service mobile application with three core ourselves to be as responsive as possible. We have
fully commit to ensuring customer satisfaction on learned about Converge via word of mouth. The functions: billing, status monitoring, and aftersales. dedicated teams of key account managers for Large
our products and services. survey also revealed that 84% of our customers are The billing function allows our subscribers to Enterprises and sales agents for SMEs to address
likely to recommend Converge to others. conveniently view their bills and payment postings, their specific connectivity needs, empowering them
We believe the Better Experience starts from the near-real-time. Status monitoring can check the and their businesses to achieve their goals. The
customer acquisition stage. We introduce our In 2020, we conducted several webinars and online number of connected devices, conduct in-app Senior Management, including our CEO, directly
services to potential clients through a variety events catered specifically to our business segments. speed tests, and check the status of modems in real- and actively initiate and build relationships with our
of avenues, including on-the-ground marketing These allowed us to connect with both potential time. The app also serves as a channel for aftersales largest and most strategic accounts.
activities. We do door-to-door and set up booths and existing clients and clearly communicate our support functions such as service relocation and
in new rollout locations. We also deploy Marketing products’ innovations and upgrades. reactivation requests, upgrade requests, request When the pandemic compelled many to adapt to
Service Agents and Marketing Service Providers fulfillment tracker, and other value-added services. remote working and learning setups, demand for
who run their own on-the-ground campaigns. We continuously strive to improve customer service. Approximately one-third of our total residential our products surged. People needed fast internet,
In 2020, we onboarded 350 new contact center subscriber base enjoy the app, as indicated by its installed fast. We deployed twice the number of our
In a roundabout way, the better experience we agents to answer customer queries, pushing our 384,000 total downloads. pre-ECQ installation teams, enabling us to serve new
strive to bring actually benefits us, as we leverage Answer Call Rate to 87% in the last quarter of the customers and substantially reduce our installation
on word-of-mouth advocacy as another acquisition year. This is a significant jump from 76% in the backlog. In December 2020, we installed 86% of new
strategy. Our existing customers, including preceding quarter. NCR subscribers within seven days and 64% within
influencers, provide testimonials that highlight one day of application, respectively.
OUR PEOPLE COVID-19 in the deployment of our training We foster a harmonious working relationship between infrastructure construction) and back-end (office-
We demonstrate our commitment to our almost programs, our Human Resources department the management and employees by practicing an based) personnel as they perform their duties. Our
3,000 employees by creating an environment recorded more than 2,600 training hours for our open-door policy. Prior to the pandemic, we used employees enjoy consultations, first aid treatment
where they are rightfully compensated and given employees in 2020, excluding any informal coaching to conduct regular town hall meetings to update the and other health-related activities, and health
opportunities to grow, with their physical, mental, and training received within their respective work employees on business performance and activities maintenance organization (“HMO”) coverage for
emotional, and social well-being prioritized. groups. Our mandatory training includes sessions on and give them a platform for their concerns. In early regular employees.
New Hire Orientation, Compliance Policies Training 2021, we launched an intranet portal which now
We attract the best talent through fair compensation on Business Ethics and Data Privacy, and Anti- serves as their avenue to voice out their concerns COVID-19 policies
and benefits. Among others, this includes an Bribery and Corrupt Practices Act. and interact with the management and other In light of the pandemic, we immediately
Employee Share Option Plan that incentivizes employees. This portal also gives convenient access implemented measures and drew up policies to be
the performance of deserving executive officers, We open opportunities to our employees who wish to important announcements, events, websites, and proactive in ensuring our people’s health and safety.
employees, and other eligible participants. The to pursue certification programs relevant to their internal systems that are frequently used.
maximum number of share options that may be roles. Moreover, our different departments conduct To reduce the risk of workplace infection,
granted is anticipated to be around 0.85% of the specialized training sessions on skills specific to their We put a premium on workplace diversity and telecommuting and flexible working hours were
Company’s total issued shares. Starting late 2020, positions. These include a comprehensive Converge inclusion. From hiring to promotions to retirement, introduced from March 16—immediately after the
we have developed a corporate performance Learning Academy, fiber-technology training, and we assess our people based on their competence, government’s enforcement of the community
management system to ensure that outstanding project management and presentation skills. Going without prejudice to their background. While we are quarantine—until the end of 2020. The skeletal
employees are rewarded accordingly. into 2021, we expect our Learning & Development still formalizing relevant processes and policies, we workforce who still needed to report to the office
programs to develop further with the onboarding have already appointed a Champion for Diversity were required to undergo antigen testing shouldered
Moreover, we do not stop at just acquiring talent—we of an L&D Manager who would be responsible for and Inclusivity. by the Company. As they serve as the Company’s
develop them further. We invest in our employees’ improving our record keeping and formalizing our front liners, we provided them, on a case-to-
training and development to nurture their technical L&D curricula and syllabi. Occupational safety and health safeguards are case basis, with food, transportation, and living
and interpersonal skills. Despite the impact of always available to our front- (cable installation and arrangements. Work and operating sites are kept
well-ventilated and safety protocols such as wearing Thus, in April 2021, we and our affiliate company
of face masks and shields, frequent disinfection, and Pacific KabelNet signed a tripartite agreement with
physical distancing were strictly observed. the Department of Education designed to innovate
the delivery of educational materials and enable
In April 2021, Converge and its affiliate Pacific
students to adapt to distance learning. Under the The fiber optic connection in all the
We also outlined home quarantine, isolation, and local
KabelNet, entered into a tripartite partnership households of public school students
government reporting procedures for employees agreement, Converge and Pacific KabelNet will
with the Department of Education (DepEd) in living in San Juan is a realization of our
who may have been exposed or are suspected to provide fiber connectivity and cable channels,
boosting the public education system’s access Smart City Initiative and has gained more
be infected. We enhanced our contact tracing respectively, to public schools free of charge.
to learning materials. Through a Memorandum significance amidst the pandemic. We
capabilities. Additionally, we developed a Daily Students will then enjoy access to DepEd’s online
of Agreement, Converge will establish the thank Converge ICT Solutions for taking
Health Checker application to track our employees’ learning platforms such as DepEd Commons, DepEd
digital highway to connect thousands of on this challenge. I am elated because
public school students to the DepEd’s digital health and wellness. Recognizing that the pandemic TV, DepEd Learning Management System, and
Learning Resources Portal. our students and teachers can now safely
platforms to cope with distance learning. has not only affected physical well-being, we held
meet and communicate in the safety of
company-wide lectures on mental health as well.
their respective homes with fast, fiber
Even before the pandemic, the DepEd already San Juan Local Government Unit
optic connection to better facilitate their
knew we needed to tap technology to nurture As of early 2021, we have begun surveying employees Still in line with Converge’s efforts toward making
classes and for the children to better
our students. We know the demand to access and gathering relevant information to start our education more accessible, we inked a partnership
understand their lessons. This is at no
new knowledge is too huge - pandemic or procurement of vaccines. with the San Juan Local Government Unit’s Learn
cost to the students and teachers as the
no pandemic. Education experts from other from Home project.
city government will be shoulding the
countries, years ago, would tell me their NATION BUILDING
subscription cost.
schools were already connected. I thought it We contribute to the nation by providing Filipinos Through the program, Converge provided fiber
was a dream for us. How can we, at our level of quality connectivity as an instrument to reach their connection while the LGU supplied tablets and
development, do that with 61,000 schools? full potential. As the pandemic hit, necessitating the laptops to all young San Juanenos enrolled in San
shift to an internet-dependent new normal, Converge Juan public schools. This covers around 6,000
But this partnership gives us hope that it is households—with over 12,000 students—around the FRANCIS ZAMORA
took major steps in realizing its mission and filled the
possible for us; that I may interact with any city. While the program was officially launched on San Juan City Mayor
gaps to serve the unserved and underserved.
student in any classroom in any part of the May 2021, installation of the internet lines started
country using technology. I believe Converge as early as 2020. The program was awarded with
Department of Education
will be in the position to do this with us. Thank the Digital Governance Award 2020 in the eGOV
The pandemic revealed a gap in our education
you for sharing with us your technology, for the Customer Empowerment category.
system—the country was unequipped to roll
future of our country and our young people. I’m
out distance learning as we were riddled with
sure your organization will make an important
connectivity issues. This digital divide, most apparent The fast and reliable internet service would enable
contribution to education, even beyond the
in disadvantaged and marginalized communities, students to keep up with their online classes,
pandemic.
had to be bridged immediately lest students get left ensuring that no one gets left behind.
behind, further aggravating their woes.
DR. LEONOR MAGTOLIS BRIONES

Department of Education Secretary
Experience Fulfillment
Making a difference by upholding responsible corporate citizenship
Second, our usage of fiber optic cables eradicates the Our company had also supported the My Dream in a
SUSTAINABILITY need for copper cables. Copper is also a limited resource Shoebox project that was organized by the IT and Business
which is quickly running out, and may have an impact Process Association of the Philippines and TeamAsia.
on the environment when mined. On the other hand, Through this project, shoeboxes filled with school supplies
fiber optic strands are made of silica which is a natural were distributed to underprivileged Filipino children in a
compound of silicon and oxygen, two of the earth’s most fun-filled gift-giving day.
abundant materials.
In the middle of the pandemic, Converge partnered with
Finally, fiber optic cables require less frequent repair as it Clark Development Corp. (“CDC”) to provide digital
is hardly susceptible to degradation caused by moisture, learning tools for Aeta nursery students under the CDC-
and electrical interference. Fewer repairs mean lower OB Montessori Pagsasarili Family Care Program. Sixty
material consumption and greenhouse gas emissions. learning tablets were distributed to select students and
nine Large Format Displays (LFDs) were donated to the
AIDING COMMUNITIES school.
When Taal Volcano erupted in January 2020, Converge
donated P5 million worth of relief goods to the victims SUSTAINABILITY GOALS
through the Batangas provincial government. The In 2020, we published our first Sustainability Report that
company also provided P1 million worth of potable identified the areas which we believe impact the most
drinking water to 20,000 households affected by the on our sustainability as a company. From these material
eruption. Aside from the relief donation, Converge economic, environmental, social, and governance factors,
provided internet connectivity in command centers and we have seen that our company will be able to contribute
critical sites that required close monitoring for more to the following UN Sustainable Development Goals (SDG):
efficient relief operations and allowed the displaced
families to communicate with relatives outside of the SDG 1: No Poverty – End poverty in all its forms everywhere.
affected areas.
SDG 4: Quality Education – Ensure inclusive and
In February 2020, in its efforts to contribute to the equitable quality education and promote lifelong learning
improvement of health care, Converge adopted a opportunities for all.
surgical ward at the Oriental Mindoro Provincial Hospital
in Calapan City. The donation allowed the hospital SDG 8: Decent Work and Economic Growth – Promote
to procure the necessary equipment to aid in the sustained, inclusive and sustainable economic growth, full
improvement of their operations. Earlier, the company and productive employment and decent work for all.
also supported the rehabilitation of the Ospital ng
Angeles in Pampanga, the province which it first served SDG 9: Industry, Innovation and Infrastructure – Build
Embedded into our fiber is the commitment to support has far less impact on the environment than copper or with broadband connectivity, with a P5 million donation. resilient infrastructure, promote inclusive and sustainable
the communities where we operate in and protect the coaxial cable networks. industrialization and foster innovation.
environment to ensure the sustainability of our operations SUPPORTING EDUCATION
and create better experiences for the Filipino people. First, fiber optic cables consume less energy. Studies In October 2020, Converge helped improve WiFi Guided by these goals, we will prioritize activities that
showed that fiber optic technology only uses 1 watt to connection in Holy Angel University (HAU) in Angeles will further improve the well-being of our company
GREEN TECHNOLOGY transmit light pulses over 100 meters while coaxial cables City, Pampanga through the donation of 30 access and our employees, support the economic growth and
Fiber optics is said to be among the most sustainable take up to 3.5 watts to do this. Less power consumption points to boost the accessibility of its network. A total development of our country, and protect the environment.
materials currently being used for data transmission. As means reduced carbon emission and heat generation of the latest 30 Huawei WiFi6 modems were turned over
the country’s only pure play, end-to-end fiber broadband which would result in the elimination of the need for the school.
provider, Converge promotes this green technology that cooling systems.
COVID-19 Response
The year 2020 was a year like no other. The disruption
caused by the COVID-19 pandemic not only changed
the way people lived and interacted, it changed the
way companies did their business. Most importantly,
it caused unprecedented challenges in the country’s
economy and health care system.
When the World Health Organization (“WHO”)

declared the COVID-19 outbreak as a pandemic on
March 11, 2020, the Philippine government immediately
responded by implementing measures and regulations
to mitigate the transmission of the disease. The
different regions in the country, including the National
Capital Region (“NCR”), were placed under what was
referred to as the “Enhanced Community Quarantine”
(“ECQ”), which imposed strict stay-at-home orders
for all individuals except those who are involved in
essential activities such as food and health services.
Throughout the year, the government updated the
quarantine classifications to allow or disallow certain
activities, depending on the current infection rate in
the regions at the time.
WFH arrangements for employees and remote requirement. All our broadband plans do not have of the COVID-19 virus within the workplace, which
The quarantine restrictions have forced many learning for students became part of the new normal a data cap, allowing our subscribers to access the includes outlining home quarantine, isolation, and
companies to implement work-from-home (“WFH”) as people started to get used to these over time. In internet without worrying about being throttled or local government reporting procedures for employees
arrangements and all schools were required to go fact, over 80% of respondents in a Nielsen Company disconnected. who may have been exposed to the coronavirus or are
into distance learning. Thus, the demand for fixed Enterprise Survey believed that WFH arrangements suspected to be infected.
would continue to be important even after the lifting To cope with the surge in demand in 2020, Converge
broadband further accelerated during the pandemic.
of mandatory stay-at-home orders. Moreover, over more than doubled the number of installation teams as In terms of the company’s business operations, we
And this created a seemingly permanent paradigm
70% of businesses surveyed were willing to subsidize compared to pre-community quarantine imposition. As diversified the work locations of our contact center staff
shift in connectivity requirements, according to a study
their employees’ home broadband expenses in light of of December 2020, Converge installed nearly 90% of to ensure business continuity in case of disruptions.
by leading regional consulting firm Media Partners
these remote arrangements. new subscribers in Metro Manila within seven days and We also enabled many of our staffers to work from
Asia (“MPA”).
over 60% within one day of application. home depending on the needs of our operations and
their specific tasks. We introduced telecommuting and
This was confirmed by a study conducted by Nielsen The MPA estimated that an average household could
To support the expanding subscriber base, Converge flexible working hours.
Company (Philippines). In its 2020 Residential Survey, it potentially require up to 480Gb of internet data per
tripled its customer service personnel and ramped-up
showed that approximately two-thirds of respondents month to function optimally and that the requirement
its install and repair teams with the addition of over 400 All our business centers strictly enforced health and
reported an increase of over 30% in home internet of a typical household can only be met through high- service vehicles since the start of the pandemic. safety protocols with no-touch temperature checks
usage, and around 70% of respondents indicated that speed broadband with a minimum speed of 25Mbps. done before entry and social distancing measures
they have or are likely to increase internet spending by PROTECTING OUR OWN implemented inside. Our guests are also required to
10% or more. MEETING THE INCREASED DEMAND For our employees, we focused on creating specific accomplish health forms and wear face masks and face
Our entry-level unlimited fiber plan FiberX 1500 with health and safety protocols to contain the spread shields.
speed of 35Mbps is well positioned to meet this
For those who needed to be at the office, we provided We have piloted this program in San Juan City where Floridablanca, Guagua, Lubao, and Sta. Rita. Converge announced this partnership, our CEO Dennis Anthony
service vehicles and also lodging arrangements for Converge provided fiber-powered connection to its also donated 300 PPEs to the province of Tarlac. Uy explained, “We understand and empathize the
those who live far away from the workplace. We also 12,000 public school students and teachers. Through importance of the timely and fast dissemination of
purchased our own antigen testing kits so that our our high-speed broadband, students and teachers Our Company also continuously donates relief goods COVID-19 information for the government during
employees and frontliners, especially those who face are able to interact in a virtual classroom and they to various barangays, mainly in Pampanga, to help the this critical period. A stable and reliable internet
our customers, would be regularly tested. also have access to the learning management system most vulnerable sectors of the community amid the connection is necessary for the success of our
of the city. adverse impact of the pandemic and the quarantine pandemic response and no agency needs it more
We acknowledge that vaccination for COVID-19 is restrictions to their jobs and livelihood. than the IATF. Converge provided this support in
an important way to ensure the health and safety of SUPPORTING OUR COMMUNITIES order to help them fulfill their mandate to keep the
our workforce. As such, we began planning for the Converge was among the first to respond to the PARTNERING WITH RESPONSE TEAMS public informed, healthy, and safe.”
procurement of COVID-19 vaccines for our employees needs of our immediate communities to help combat We have also partnered with the Philippine Red Cross
and their loved ones early on. An information (PRC) to provide fiber connectivity at the Kamia VACCINE EDUCATION
the spread of COVID-19.
campaign about vaccines had also been launched Residence Hall in the University of the Philippines Converge is also collaborating with the Philippine
to keep our employees informed about vaccines and Diliman which has been converted into a quarantine Foundation for Vaccination in its mission to
PPE AND RELIEF GOODS DONATION
increase acceptability within the company. facility. Aside from our own antigen testing activity, communicate the benefits of disease prevention
At the onset of the pandemic, the country’s
we also coordinate with the PRC for needed Reverse through vaccination. This fully supports the
healthcare system faced a massive shortage in critical
AIDING REMOTE LEARNING Transcription-Polymerase Chain Reaction (“RT-PCR”) government’s efforts in preventing and controlling
protective equipment against the virus. Quick to
With all classes now being done remotely, Converge tests for those who tested positive in our antigen vaccine preventable diseases in the country.
action, Converge addressed the shortfall for PPEs,
has partnered with the Department of Education particularly for under-resourced provincial hospitals. testing.
(DepEd) to enable online learning for public schools Our Company is supporting the Foundation’s
across the country. Through the support of local Converge also provided the Inter-Agency Task Force Vaccinology Training Course that covers the basic
In April 2020, Converge donated PPEs to the cities
governments, we are providing fiber connectivity to for Emerging Infectious Diseases (“IATF-EID”) with principles of vaccination, vaccine storage and
of Angeles, Mabalacat, San Fernando, Porac, and
public school teachers and students so that they can fast end-to-end fiber internet connection to help handling, vaccine safety and managing adverse
towns of Apalit, Mexico, Bacolor, Magalang, Arayat,
access DepEd’s digital learning resources such as the the agency manage its communication channels and events, and communication on vaccine hesitancy.
Sta. Ana, Candaba, San Luis, Macabebe, San Simon,
DepEd Commons. data transmissions better. In a statement when we
CORPORATE GOVERNANCE
In compliance with pertinent regulations, the the Management. The Board is mandated to hold its of such board, the Company’s Board of Directors Corporate Governance Committee
Integrated Annual Corporate Governance Report regular and special meetings in person or through includes 3 independent directors (representing Chairman Amando M. Tetangco, Jr.
(“iACGR”) will replace the Corporate Governance teleconferencing. almost 43% of total board representation), all of Members Roman Felipe S. Reyes
section of this Report, the previous SEC Form whom have the necessary qualifications and without Francisco Ed Lim
ACGR and PSE’s CGR-1, and shall be submitted by In adopting the Manual, we understand the any disqualifications. The Board is composed
the Company to pertinent regulatory agencies on responsibilities of the Board and its members, of experienced individuals with different and Board Risk Oversight Committee
or before May 30 of every year. The iACGR will be in governing the conduct of our business, the complementing skills, experiences, perspectives, and Chairman Amando M. Tetangco, Jr.
available in the Company website upon completion Board Committees, in focusing on specific board backgrounds. Members Roman Felipe S. Reyes
and submission to the regulatory agencies. functions to aid in the optimal performance of Francisco Ed Lim
its roles and responsibilities, and the officers, in BOARD COMMITTEES
On June 15, 2020, the Board has adopted the Manual ensuring adherence to corporate principles and best The Board has established board committees that Nominations and Remuneration Committee
on Corporate Governance (“Manual”), in compliance practices. The Manual establishes, among others, the focus on specific board functions to aid in the optimal Chairman Dennis Anthony H. Uy
with SEC Memorandum Circular No. 19, Series of composition of the board committees, and principles performance of its roles and responsibilities: Members Saurabh N. Agarwal
2016, which institutionalizes the principles of good on adequate and timely information, accountability Maria Grace Y. Uy
corporate governance in the entire organization. We and audit, stockholders’ rights and protection of Jose P. de Jesus
believe that it is a necessary component of sound minority stockholders’ interests, communication Audit and Related Party Transactions Committee Francisco Ed Lim
strategic business management, hence, we undertake process, training, disclosures, self-assessment, and Chairman Roman Felipe S. Reyes
efforts to create awareness within the organization. sustainability. Members Jose P. de Jesus BOARD ASSESSMENT
Amando M. Tetangco, Jr. We are in the process of formulating an internal self-
Maria Grace Y. Uy rating system that can measure the performance of
The Manual provides that it is the Board that has In compliance with Section 22 of Republic Act No.
Saurabh N. Agarwal Board and Management in accordance with the criteria
the primary responsibility for the governance of 11232 or the Revised Corporation Code, which
provided for in the Manual. The formal assessment
the corporation. In addition to setting the policies requires, among others, that the board of corporations
process and its summary will be disclosed in the
for the accomplishment of corporate objectives, it vested with public interest shall have independent
subsequent Annual Report.
has the duty to provide an independent check on directors constituting at least twenty percent (20%)
RISK MANAGEMENT
Enterprise Risk Management. We formally disclosed the key risks related to our business in our Prospectus
Management Approach dated October 8, 2020. These and other risks are regularly discussed and reviewed by our management. With
our listing on the Philippine Stock Exchange, it was agreed that a more formal Enterprise Risk Management
We have documented policies and internal controls to reasonably ensure that we are able to manage process- (“ERM”) program was required, in compliance with the SEC’s Code of Corporate Governance. In early 2021,
level risks. In addition, at an enterprise and project levels, we have adopted the following management approach: we initiated a project to build an ERM capability. Our ERM Strategy aims to embed risk awareness within
our company culture and effectively communicate to the board and management the risks that Converge
could potentially face. We also plan to look into potential ESG-related risks and assess how these could
Board Committees. The establishment and maintenance of the various Board Committees is an integral part of be incorporated into our ERM framework and eventually formalized in our applicable business processes,
our risk management. The Board of Directors created several committees to assist in managing and mitigating metrics and targets.
the risks surrounding Converge. These bodies are also deeply involved in the overall governance matters of
the company. These include the Board Risk Oversight Committee, the Audit and Related Party Transactions Our President is responsible for the development, implementation, maintenance, and improvement of risk
Committee, the Corporate Governance Committee, the Nominations and Remuneration Committee, and the management policies, processes, and documentation. We are in the process of setting up a dedicated ERM
Executive Committee. team reporting to the President.
• The Board Risk Oversight Committee oversees handling the various risks that the company could face Identified risks under the proposed ERM framework will go through four phases:
as we try to achieve our strategic goals. The Committee regularly reviews the current risk management
processes to identify areas of weakness and points of improvement to be addressed. • Analysis - This refers to the initial planning of how Converge will identify risks and then execute the fact-
finding process.
• The Audit and Related Party Transactions Committee is responsible for enhancing the Board’s oversight • Evaluation - Risks are assessed and assigned to the appropriate bodies based on their urgency, importance,
capability over the financial reporting, internal control system, internal and external audit processes, and and relevance.
compliance with applicable laws and regulations of Converge. It also reviews and evaluates related party
• Treatment - Developing action plans for mitigating and combating these risks.
transactions to enhance corporate transparency and promote fair transactions.
• Reporting - Risks are disclosed and the process is evaluated to monitor its effectiveness.
• The Corporate Governance Committee has the duty and responsibility to assist the Board in the
In 2020, our management has also established an Environment, Social and Governance (“ESG”) Committee,
performance of its corporate governance responsibilities. a cross-functional working group responsible for determining risks and opportunities related to ESG and
the implementation of our ESG and other sustainability-related initiatives. This committee also governs our
• The Nominations and Remuneration Committee is responsible for reviewing the structure, size, and Corporate Social Responsibility (“CSR”) Team that ensures CSR activities are being planned, implemented,
composition of the Board. It reviews and evaluates the qualifications of the persons nominated to the and measured. Currently, the key focus areas of our CSR activities include the provision of: (1) basic needs
in response to COVID-19 and natural disasters, (2) support to enhance local health facilities, and (3) digital
Board and to other positions requiring appointment by the Board. It also reviews succession plans for
learning tools and internet access to local communities.
the Board and makes recommendations to the Board on the policy and structure of Converge for all
remuneration of the Directors and senior management. Project Risk Management. Project risk management processes are embedded in all of our key strategic and
operational initiatives. We require each new major project to have a formal project risk assessment and
• The Executive Committee possesses the powers of the Board and has the right to use them in managing mitigation plan. Risks and issues are part of regular status reporting.
the business and affairs of Converge when the Board is not in session, except for certain actions and
decisions.
Board of directors
FROM LEFT: DENNIS ANTHONY H. UY AMANDO M. TETANGCO, JR. FRANCISCO ED. LIM
CEO, Co-Founder and Executive Director Independent Non-Executive Director Non-Executive Director
JOSE P. DE JESUS
Chairman, Independent Non-Executive Director MARIA GRACE Y. UY ROMAN FELIPE S. REYES SAURABH NARAYAN AGARWAL
President, Chief Resources Officer, Co-Founder and Independent Non-Executive Director Non-Executive Director
Executive Director
3 CONVERGE ICT SOLUTIONS INC. 3 CONVERGE ICT SOLUTIONS INC. EXPLORE A WORLD OF POSSIBILITIES: 4
ANNUAL REPORT 2020 ANNUAL REPORT 2020 #EXPERIENCEBETTER
JOSE
JOSE P. DE JESUS
PAMINTUAN DE JESUS DENNIS ANTHONY H.JOSE
UY PAMINTUAN DE JESUS DENNISANTHONY
DENNIS ANTHONYH.H.
UYUY MARIA GRACEUY
MARIA GRACE Y. UY
Chairman of the
Independent Board,
Non-Executive Director Founder and Chief Executive
Independent
Officer
Non-Executive Director Founder and Chiefand
CEO, Co-Founder Executive Officer
Executive Director Co-Founder & President
President, Chief Resources Officer, Co-Founder and
Independent Non-Executive Director Chief Resource
Executive Officer
Director
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1989.
and Highwaysof(1990-1993),
Department Transportationand the
andDepartment
Communications of from With
Mr. de an Jesus
eye forcompleted
the future
andand a
Highways
his mind(1990-1993),
graduate forstudies
innovation, inand Mr.the Department of
Human With anutility,
power eye for andthereal
future and Due
estate. a mindto for
his innovation, Mr.
strong leadership Together. The couple gradually scaled up ComClark from
Transportation
2010 to 2011. Other and Communications (2010-2011).
government positions Prior were
he held Uy ventured into
Development fromfiber
theoptic technology
Transportation
University ofand with ComClark
Communications
Chicago, and holds (2010-2011). Prior Uy ventured
that propelled into
thefiber
robustoptic technology
growth with ComClark
of Converge, Mr. Uy earned providing cable television requirements to delivering ICT
to this, his
Cabinet government
Secretary service
during the included leadingofthe
administration President Network
a Master’s and Technology
Degree in to Corporation,
this,
Sociology fromwhich
his government Ateneo gradually
service included leading the
De Manila Network management
several and Technology andCorporation,
leadershipwhich gradually
awards, including and broadcast solutions.
Development
Corazon Aquino, Academy of the Philippines
Undersecretary and serving
of the then as
Department expanded its
University, customer
where base, its suite
Development
he also obtained of services
hisAcademy
BA of and
the Philippines and serving as
in Economics. expanded
the MasteritsEntrepreneur
customer base, its suite
Award of services
at the 2020 Asia and Pacific
Cabinet Secretary
of Education, during
Culture theSports,
and administration
Executive of Corazon
Director of its expertise in the IT industry.
Cabinet Going
Secretary fromduring
strengththeto administration of Corazon its expertiseAwards
Enterprise in the IT(APEA),
industry.and Goingthefrom strength toof the
Entrepreneur With ComClark having evolved into Converge ICT
Aquino. strength, Dennis and Mary Grace Uy evolved ComClark into
Aquino. strength,
Year AwardDennis
handed andout
Mary Grace
at the 11thUy evolved
Asia ComClark
CEO Awards into
(ACA). Solutions Inc. in 2007, Ms. Uy now leads and manages all
Converge ICT Solutions Inc., and incorporated the company Converge ICT Solutions Inc., and incorporated the company aspects of financial planning and resource allocation as
As a leading business personality, Mr. de Jesus holds in 2007 As a leading business personality, Mr. de Jesus holds He earned his degree in BS Electrical Engineering from the
in 2007 Chief Resource Officer. Together with her husband, Ms.
directorships in several corporations including Petron directorships in several corporations including Petron Holy Angel University. Uy steers the overall strategic direction of the company
Corporation and SMC Skyway Corporation. In recognition Mr. Uy’s dream for digital transformation
Corporation and SMC maySkywayhave beganCorporation. In recognition Mr. Uy’s dream for digital transformation may have began as it progressively expands its reach into the broadband
of his leadership and management excellence, Mr. de in Central Luzon, but itof took
his off in Metroand
leadership Manila. In 2013, excellence, Mr. de
management in Central Luzon, but it took off in Metro Manila. In 2013, industry.
Jesus has received the CEO Excel Awards in Leadership Converge launched theJesus Fiber-to-the-Home
has received the (FTTH) fixed Awards in Leadership
CEO Excel Converge launched the Fiber-to-the-Home (FTTH) fixed
Communication, and the Lux in Domino (Most Outstanding broadband services and entered Metro Manila,
Communication, and thethe Luxnation’s
in Domino (Most Outstanding broadband services and entered Metro Manila, the nation’s Ms. Uy is a graduate of De La Salle University, earning her
Alumnus) Award from alma mater Ateneo De Manila capital. From there, Mr.Alumnus)
Uy focused his efforts
Award from alma on building
mater Ateneo De Manila capital. From there, Mr. Uy focused his efforts on building Bachelor of Science in Accountancy in 1988.
University. He was most recently awarded the Ulirang Ama up Converge’s fiber network, whileHe
University. competitors
was most recently were awarded the Ulirang Ama up Converge’s fiber network, while competitors were
Award in the field of Business & Industry in 2019. battling it out in other technology
Award in thespaces field of such as wireless
Business & Industry in 2019. battling it out in other technology spaces such as wireless
broadband or DSL. broadband or DSL.
Mr. de Jesus completed his graduate studies in Human Mr. de Jesus completed his graduate studies in Human
Development from the University of Chicago, and holds The robust fiber network infrastructure
Development fromis envisioned
the University to of Chicago, and holds The robust fiber network infrastructure is envisioned to
a Master’s Degree in Sociology from Ateneo De Manila be ready for any digitalatransformation
Master’s Degree ofinthe companies’
Sociology from Ateneo De Manila be ready for any digital transformation of the companies’
University, where he also obtained his BA in Economics. University, where he also obtained his BA in Economics.

AMANDO M.TETANGCO
AMANDO M. TETANGCOJR.JR. ROMAN FELIPES. S.
ROMAN FELIPE REYES
REYES FRANCISCO ED.
FRANCISCO ED. LIM
LIM SAURABH NARAYAN
SAURABH NARAYAN AGARWAL
AGARWAL
Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive
Non-Executive Director Director Independent Non-Executive
Non-Executive Director Director
Amando “Say” Maglalang

Tetangco Jr., Tetangco
68 yearsJr. old, is an Independent
Filipino, is an “Manny”
Roman Felipe S. Felipe
Reyes, S. 69Reyes
years joined Converge
old, Filipino, has ICT
been an Atty. Francisco
Francisco Ed. LimEd. wasLim, 66 years
appointed old, Filipino, was
as Non-Executive Saurabh N. Agarwal,
Agarwal40is years old, Indian,Director
a Non-Executive has been of a Non-
Director of Converge
Independent ICT Solutions
Non-Executive DirectorInc., of
andConverge
was elected to
since Solutions Inc.’s
Independent Board on 8 June
Non-Executive 2020. of
Director Mr.the
Felipe
Boardis the
since appointed
Director of as theNon-Executive
Company on 17DirectorJune 2020. in June 2020. He Executive ICT
Converge Director of Converge
Solutions, since
Inc., having beenAugust 2019.toHe
appointed
the Board
June 2020. onHe8 June
also 2020.
holds He also holds directorships
directorships in Toyota Motors in Founder
June and He
2020. the ispresent ChairmanPartner
the Founding of Reyes Tacandong
and Chairman is a Senior Partner at leading law firm Angara Abello is a Board
the Partneron at the global
19 August 2019.private equity firm Warburg
Toyotaand
Corp. Motors Corporation
Belle Corporation. andMr. Belle Corporation.
Tetangco served as the & Co
of (RT&Co),
Reyes considered
Tacandong & Co. onePrior
of thetofastest
foundinggrowing
his own Concepcion Regala & Cruz
Mr. Lim, highly regarded as Law Offices
an expert in (ACCRALAW).
commercial lawHe Pincus. He also holds corporate directorship and Board
third Governor of the Bangko Sentral ng Pilipinas and holds professional services firm in the he
company, country.
was withDirector
SycipReyes’
Gorres is also a professional
and dispute resolution,lecturer and the
is the Senior Vice at
Partner Chair of the
leading membership
Mr. Agarwal isinavarious
Partnerfirms such
at the as Circles
global privateAsia Pte.firm,
equity Ltd.
Mr. Tetangco
the distinctionserved as the
of being thethird
firstGovernor of the Bangko
to be appointed for two extensive
Velayo experience
& Co, in the
the Philippine accounting
practice profession
of Ernst & YoungspansGlobal Commercial Law Department at the Philippine Judicial (a
law firm Angara Abello Concepcion Regala & Cruz Law Warburg Pincus. He also holds corporate directorship in
digital telecommunications company that originated
Sentral ng Pilipinas
consecutive and holds
terms (July 2005 the distinction
- July of being
2017). During his the
term,first over 40 years,
Limited marked by afor
(EY Philippines), storied career
25 years in auditing
where he served Academy (PHILJA), and
Offices (ACCRALAW). He ais law
also professor at the
a professional Ateneo
lecturer Singapore), Clean Max Enviro
and Board membership Solutions,
in various MoMo
firms such Payment
as Circles
to be
the appointedenjoyed
Philippines for twoaconsecutive
predictableterms (July
inflation 2005 - July
environment, giant
as SycipPartner
Senior Gorres andVelayo
Vice & Chairman
Co (SGV) where he held
for Client key
Services Law School and the San Beda College Graduate School Services and Techcombank.
and the Vice Chair of the Commercial Law Department Asia Pte. Ltd. (a digital telecommunications company
2017).
a robust During
bankinghis system,
term, theandPhilippines enjoyed a predictable
a vibrant investment climate as management
and Accounts,positions
Head of including
the JapanSenior
BusinessPartner and Vice
Services, and of Law.Philippine
He holdsJudicial
directorships in other companies such
at the Academy (PHILJA), and a law that originated in Singapore), Clean Max Enviro
inflation environment,
reflected by successivea upgrades
robust bankingin the system,
country’s and a vibrant
sovereign President. of the Winning Clients Committee. Mr. Reyes
Chairman as
professor at the Ateneo Law School and the San Bedaand
Alphaland Corp., Energy Development Corp., Prior to joining
Solutions, MoMo Warburg
Payment Pincus,
ServicesMr.
andAgarwal worked at
Techcombank.
investment
debt rating.climate
He has as reflected by
consistently successive
been named upgrades
as one of in thethe is also currently a member of the Board of Directors in Producers SavingsSchool
Bank. Atty. Lim was the President and
College Graduate of Law. McKinsey & Company in New Jersey and New Delhi, and
country’s
world’s sovereign
best central debt
bankersrating.
by financial publication Global Philippine Geothermal Production Company, Pakistan CEO of the Philippine Stock Exchange from 2004-2010
Mr. Felipe obtained his Bachelor’s Degree in Commerce, Temasek Holdings
Prior to joining in Mumbai.
Warburg Pincus,Mr.
Mr.Agarwal
Agarwal has a wealth
worked at
Finance, having earned an “A” rating in its Central Bank International Container
Major in Accounting fromTerminal
San Beda Limited,
College RPN 9, FF Cruz
which during which he also held several senior management
A prominent of experience in investment
in Newmanagement, particularly in
Prior to Cards
Report his appointment
for 2006, to the top
2007, andposition,Mr.
2011-2016.Tetangco
As central & Co. recognized
later Inc., Pasudeco,
him Premium Leisure Corp.,
as an Outstanding and All-Asian
Alumnus. He positions at icon in corporate
Securities circles,
Clearing Mr. Lim was of
Corporation named
the McKinsey
the energy
& Company
sector in the
Jersey and New
Asia-Pacific. He
Delhi, and
obtained both
has spent
bank chief,over
he three decades at country’s
also concurrently served as central
the monetary
Chairman Countertrade. He is also a member of theAdministration,
Board of Trustees President andthe
Philippines, CEOCapital
of the Philippine Stock Exchange
Market Development Center, Temasek Holdings in Mumbai.
authority, rising through the ranks since he joined the earned his Master’s Degree in Business from the
2004-2010 during which he also held severalInc.,
senior his Bachelor’s Degree in Electrical Engineering and his
of the Anti-Money Laundering Council (AMLC), the in San Beda University
concentration in Finance,infrom Manila
the and San Beda
University College
of Detroit. Inc., Philippine Stock Exchange Foundation, the
management positions Master’s in Technology (Microelectronics) from the India
institutionStability
Financial in 1974. Coordination Council, and the Philippine Alabang. Mr. Reyes is a Certified Public Accountant. He Philippine Dealing andatExchange
SecuritiesCorporation,
Clearing Corporation
and the Mr. Agarwal
Institute of has a wealth of
Technology. Heexperience
completed in investment
his MBA from
International Convention Center. Prior to his appointment earned his Bachelor’s degree in Commerce, major in of the Philippines,
Securities Investorsthe Capital Market
Protection Development
Fund. Atty. Lim also served management, particularly
A pillar in the banking industry, Harvard University, USA. in the energy sector in the
as Governor, Mr. Tetangco hasinspent
government,
over three and decades
in Other awardsfrom
Accounting, to Mr.San
Felipe’s
Beda name include
College and thereceived his Center,
in Inc., the Philippine
an extensive capacity in Stock
the Exchange
Supreme Court Foundation,
through Asia-Pacific. He obtained both his Bachelor’s Degree in
business
at circles,
the central Mr. Tetangco
monetary has consistently
authority, rising through been thenamed
ranks Outstanding
Master’s degreeBulakeno Dangal
in Business ng Lipi, Most concentration
Administration, Distinguished Inc., the Philippine
membership Dealing
in several and Exchange Corporation,
sub-committees, taking part in Electrical Engineering and his Master’s in Technology
as onehe
since of joined
the world’s best central
the institution in bankers
1974.Forby financial
his contribution Bedan
in FinanceAwardee, Huwarang
from the UniversityAnakof ng Bulakan
Detroit, in the USA.
Michigan, and creation
the the Securities
of a Investors
number of Protection
Rules ofFund.Court pertaining (Microelectronics) from the India Institute of Technology.
publication
to Global Finance,Mr.
national development, having earned
Tetangco was anconferred
“A” rating within its fieldwas
He of Banking and Finance,
an Asia Pacific and the Asia
Entrepreneurship Pacific
Awardee to commerce and corporate restructuring. Atty. Lim In 2009, Mr. Agarwal completed his MBA from Harvard
Central
the OrderBank Report Cards
of Lakandula, withforthe
2006,
Rank2007, and 2011-2016.
of Bayani in 2009 by Entrepreneurship Awards in the field of Professional and obtained
Given his avaluable
double voice
Bachelor’s Degree
in legal in Arts
matters, Mr. (Cum Laude)
Lim served University.
the President of the Philippines. In 2019, he also received Business Services. Director Felipe, in the service of his and
in aninextensive
Philosophy (MagnainCum
capacity Laude) from
the Supreme thethrough
Court University
For his contribution to national development, Mr. Tetangco in the fieldalso
province, of Professional
engaged in civic and activities,
Business Services
and became in 2016.
the Order of the Rising Sun, Gold and Silver Star from of Santo Tomas.
membership He earned
in several his Bachelorthereby
sub-committees, of Lawstaking
degree
was conferred with the Order of Lakandula, with the Rank of With
Presidenthis of
active participation
the Bulacan in his
Kaunlaran home province
Foundation and theof
the Emperor of Japan for promoting closer cooperation from
part inthe
theAteneo
creationdeofManila
a number University
of Rulesand received his
of Court
Bayan in 2009. Bulacan, he received
Bulacan Chapter numerousInstitute
of Philippine awards of from the province
Certified Public
between the Philippines and Japan in the financial sector. Master’s
pertaining Degree in the same
to commerce field fromrestructuring.
and corporate the University of
including
Accountants. the Huwarang Anak ng Bulakan (Model Son
Prior to joining the central bank, he was with auditing firm Pennsylvania.
During his governorship, he also concurrently served as the of Bulacan Award) in the fields of banking and finance
Sycip Gorres Velayo (SGV) and Co. Mr. Tetangco obtained
Chairman of the Anti-Money Laundering Council (AMLC), the in 2015. He also received the Most Distinguished Bedan Mr. Lim holds directorships in several other companies
his Bachelor’s Degree in Economics (Cum Laude) from Mr. Felipe also
Financial Stability Coordination Council, and the Philippine Award from theholds BoardAlumni
San Beda membership in 6 other
Association in 2004. apart from Converge, such as Alphaland Corporation
the Ateneo de Manila University where he also took up an companies
International Convention Center Energy Development Corporation, Producers Savings
MBA. He then completed a Master’s in Public Policy and
Bank Corporation, to name a few.
Administration Concentration
Prior to his renowned career at in
theDevelopment Economics
BSP, Mr. Tetangco was
from the University of Wisconsin, USA.
connected to auditing firm Sycip Gorres Velayo (SGV) and
Atty. Lim obtained a double Bachelor’s Degree in Arts
Co.
(cum laude) and in Philosophy (Magna Cum Laude)
from the University of Santo Tomas. After which, he
Mr. Tetangco obtained his Bachelor’s Degree in Economics
pursued his Bachelor of Laws from the Ateneo de Manila
(Cum Laude) from the Ateneo de Manila University where
University, and received his Master’s Degree in the same
he also completed his MBA. He further pursued an Master’s
field from the University of Pennsylvania.
Key Officers
FROM LEFT: JESUS C. ROMERO RONALD G. BRUSOLA ALBERTO L. SANTOS

Chief Operations Officer Chief Technology Officer Chief Customer Experience Officer
DENNIS ANTHONY H. UY
Chief Executive Officer and Co-Founder BENJAMIN REX EMILIO B. AZADA ULYSSES C. NAGUIT CHRISTINE RENEE R. BLABAGNO
Chief Strategy Officer Chief Information Officer Treasurer (Appointed March 10, 2021)
MARIA GRACE Y. UY
President, Chief Resources Officer, and
Co-Founder
ATTY. MARIA GRACE C. DE JESUS

Compliance Officer OWEN KIEFFER D. OCAMPO SUBSIDIARIES:
(until April 12, 2021) Investor Relations Officer
(Appointed January 11, 2021) MILES TONN C. CHUA
ATTY. LAURICE P. ESTEBAN-TUASON President and Chief Operations Officer,
Compliance Officer ATTY. ELVIRA C. OQUENDO Metroworks ICT Solutions Inc.
(Appointed April 12, 2021) Corporate Secretary
MATTHIAS VUKOVICH
Chief Financial Office Adviser, Director of
Converge ICT Solutions (Global)
Financial STATEMENT OF MANAGEMENT’S

RESPONSIBILITY FOR FINANCIAL STATEMENTS
Statements The management of CONVERGE INFORMATION & COMMUNICATIONS TECHNOLOGY, INC. & SUBSIDIARIES
(the “Group”) is responsible for the preparation and fair presentation of the consolidated financial statements
including the schedules attached therein, as at and for the years ended December 31, 2020 and 2019, in
accordance with the prescribed financial reporting framework indicated therein, and for such internal control
as management determines is necessary to enable the preparation of the consolidated financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing as applicable matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Group or cease
operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Group’s financial reporting process.
The Board of Directors reviews and approves the consolidated financial statements including the schedules
attached therein, and submits the same to the stockholders.
Isla Lipana & Co., the independent auditor appointed by the stockholders, has audited the consolidated
financial statements of the Group in accordance with Philippines Standards on Auditing, and in its report to
the stockholders, has expressed its opinion on the fairness of presentation upon completion of such audit.
JOSE P. DE JESUS
Chairman of the Board
DENNIS ANTHONY H. UY CHRISTINE RENEE R. BLABAGNO

Chief Executive Officer Deputy Chief Financial Officer
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors and Shareholders of We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the
Converge Information and Communications Technology Solutions, Inc. consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and
New Street Bldg., Mc Arthur Highway, controls, and the industry in which the Group operates.
Balibago, Angeles City, Pampanga
Key Audit Matters
Report on the Audits of the Consolidated Financial Statements Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
Our Opinion consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated
financial position of Converge Information and Communications Technology Solutions, Inc. (the “Parent Company”) and Key audit matter identified in our audit is revenue recognition.
its subsidiaries (together, the “Group”) as at December 31, 2020 and 2019, and their consolidated financial performance
and their consolidated cash flows for each of the three years in the period ended December 31, 2020 in accordance with
Revenue recognition How the matter was addressed in our audit
Philippine Financial Reporting Standards (PFRS).
What we have audited Refer to Note 12 and accounting policies in Note 23.19 Our audit procedures to address relevant assertions over
to the consolidated financial statements. revenue recognition included the following:
The consolidated financial statements of the Group comprise:
The Group recognized revenues amounting to P15,652 • We obtained an understanding of the revenue recognition
million for the year ended December 31, 2020. The policy in accordance with PFRS 15 and the related business
• the consolidated statements of financial position as at December 31, 2020 and 2019;
Group’s revenue comprises primarily income from processes, including an understanding of the related
• the consolidated statements of total comprehensive income for each of the three years in the period ended
fixed broadband services. Information and Technology (IT) environment.
December 31, 2020;
• the consolidated statements of changes in equity for each of the three years in the period ended December 31, 2020; • With the assistance of our IT specialists, we evaluated
Revenue recognition has been identified as a key
• the consolidated statements of cash flows for each of the three years in the period ended December 31, 2020; and the design and tested the operating effectiveness of the
audit matter primarily due to the large volume of data
• the notes to the consolidated financial statements, which include a summary of significant accounting policies. controls surrounding the relevant IT systems, as well as the
and transactions processed through various complex
related application controls over the capture and recording
systems.
Basis for Opinion of the revenue transactions.
• We tested the operating effectiveness of key controls
We conducted our audits in accordance with Philippine Standards on Auditing (PSA). Our responsibilities under those with particular emphasis on the capture and recording
standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements of revenue transactions, initiation and authorization of
section of our report. rate changes, introduction of new plans and calculating
amounts billed to customers.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
• We tested reconciliation of revenue recognized in the
business support systems to the general ledger and
Independence assessed whether the reconciling items were properly
supported by underlying documentation, on a sample
We are independent of the Group in accordance with the Code of Ethics for Professional Accountants in the Philippines basis.
(Code of Ethics), together with the ethical requirements that are relevant to our audit of the consolidated financial
statements in the Philippines, and we have fulfilled our other ethical responsibilities in accordance with these requirements • We assessed on a sample basis, the accuracy of customer
and the Code of Ethics. bills for existing plans as well as for new plans introduced
in the year.
Our Audit Approach • We performed substantive procedures to gain
comfort over residential and enterprise service revenues.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the • We evaluated journal entries posted to revenue accounts,
consolidated financial statements. In particular, we considered where management made subjective judgements; for on a specific risk-based sample basis, and compared the
example, in respect of significant accounting estimates that involved making assumptions and considering future events details of these journal entries with relevant underlying
that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, documentation.
including among other matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
INDEPENDENT AUDITOR’S REPORT
Other Information • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
Management is responsible for the other information. The other information comprises the information included in the SEC
Form 20-IS (Definitive Information Statement), SEC Form 17-A, but does not include the consolidated financial statements • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
and our auditor’s report thereon. The SEC Form 20-IS (Definitive Information Statement) and SEC Form 17-A are expected the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
to be made available to us after the date of this auditor’s report. significant doubt on the ability of each entity within the Group to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
Our opinion on the consolidated financial statements does not cover the other information and we will not express any consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
form of assurance conclusion thereon. based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause an entity within the Group to cease to continue as a going concern.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is materially • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a
materially misstated. manner that achieves fair presentation.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance audit.
with PFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
In preparing the consolidated financial statements, management is responsible for assessing the ability of each entity thought to bear on our independence, and where applicable, related safeguards.
within the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate or to cease operations of an entity within From the matters communicated with those charged with governance, we determine those matters that were of most
the Group, or has no realistic alternative but to do so. significance in the audit of the consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the
Those charged with governance are responsible for overseeing the Group’s financial reporting process. matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements such communication.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are The engagement partner on the audit resulting in this independent auditor’s report is Jan Michael L. Reyes.
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with PSA
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered Isla Lipana & Co.
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
As part of an audit in accordance with PSA, we exercise professional judgment and maintain professional skepticism Jan Michael L. Reyes
throughout the audit. We also: Partner
CPA Cert. No. 104972
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud PTR No. 0011393, issued on January 5, 2021, Makati City
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient SEC A.N. (individual) as general auditors 1484-AR-1, Category A; effective until July 4, 2021
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting SEC A.N. (firm) as general auditors 0142-SEC, Category A;
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, valid to audit 2020 to 2024 financial statements
misrepresentations, or the override of internal control. TIN 215-692-059
BIR A.N. 08-000745-122-2019, issued on September 18, 2019; effective until September 17, 2022
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are BOA/PRC Reg. No. 0142, effective until January 21, 2023
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s
internal control.
Makati City
March 9, 2021
CONSOLIDATED STATEMENTS OF CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION
As at December 31, 2020 and 2019
TOTAL COMPREHENSIVE INCOME
For each of the three years in the period ended December 31, 2020
(All amounts in Philippine Peso) (All amounts in Philippine Peso)
December 31, December 31, January 1, Notes 2020 2019 2018

Notes 2020 2019 2019 Revenues 12 15,652,332,331 9,139,488,571 5,054,584,471
ASSETS
Cost of services 13 (7,064,620,829) (4,440,734,408) (2,328,496,703)
Current assets Gross profit 8,587,711,502 4,698,754,163 2,726,087,768
Cash and cash equivalents 2 12,957,408,688 6,233,043,005 476,652,551
Trade and other receivables, net 3 2,172,669,790 2,105,517,180 918,010,088
General and administrative expenses 14 (2,772,068,574) (1,414,843,269) (912,662,382)
Due from related parties, current portion 17 1,408,259,424 586,606,839 474,441,542
Network materials and supplies, net 4 2,031,358,171 963,409,462 1,158,728,413
Deferred contract costs, current portion 12 1,109,716,644 489,441,350 176,729,005 Provision for impairment of trade and other receivables 3 (720,474,218) (529,944,733) (124,913,466)
Other current assets 5 1,591,424,876 475,483,492 141,588,478
Total current assets 21,270,837,593 10,853,501,328 3,346,150,077 Unrealized fair value loss on financial asset at FVTPL 22.1 (26,489,855) – –
Non-current assets
Property, plant and equipment, net 6 28,127,033,243 15,939,903,622 8,047,931,391
Advances to fixed assets suppliers 5 2,507,879,161 1,213,869,929 336,269,516 Other income, net 15 360,342,042 18,339,988 51,141,607
Right-of-use assets, net 18 1,859,298,827 1,638,441,692 191,796,785 Profit from operations 5,429,020,897 2,772,306,149 1,739,653,527
Intangible assets, net 7 1,154,646,550 669,869,002 537,265,790
Deferred contract costs, net of current portion 12 543,161,211 229,286,221 80,311,626 Finance costs 9,18 (550,310,967) (275,051,087) (70,555,628)
Deferred input value-added tax, net of current portion 5 138,911,552 75,484,851 104,881,765
Deferred income tax assets, net 16 788,364,030 539,129,762 56,801,788
Profit before income tax 4,878,709,930 2,497,255,062 1,669,097,899
Due from related parties, net of current portion 17 163,422,374 - -
Financial asset at fair value through profit or loss (FVTPL) 22.1 71,904,900 - 18,749,900 Income tax expense 16 (1,490,881,430) (592,522,061) (427,475,338)
Other non-current assets 5 86,623,893 - - Profit for the year 3,387,828,500 1,904,733,001 1,241,622,561
Total non-current assets 35,441,245,741 20,305,985,079 9,374,008,561
Total assets 56,712,083,334 31,159,486,407 12,720,158,638
Other comprehensive income
LIABILITIES AND EQUITY Item that will not be reclassified to profit or loss
Remeasurement (loss) gain on retirement benefit
Current liabilities obligation, net of tax 10 (47,110,560) 45,167,798 8,463,140
Trade and other current liabilities 8 13,252,779,907 7,175,641,361 4,342,087,170
Total comprehensive income for the year 3,340,717,940 1,949,900,799 1,250,085,701
Loans payable, current portion 9 731,214,286 1,098,250,000 1,521,464,954
Lease liabilities, current portion 18 325,737,209 355,097,271 84,443,057
Due to related parties 17 217,976,119 166,816,540 422,642,935 Profit attributable to:
Deferred revenue, current portion 12 463,619,256 199,477,561 105,226,020 Owners of the Parent Company 3,387,828,500 1,960,019,346 1,257,116,045
Income tax payable 393,924,516 357,559,511 155,064,024 Non-controlling interest – (55,286,345) (15,493,484)
Dividends payable 11 - 807,651,604 -
Total current liabilities 15,385,251,293 10,160,493,848 6,630,928,160 3,387,828,500 1,904,733,001 1,241,622,561
Non-current liabilities
Deferred revenue, net of current portion 12 205,105,237 81,955,912 47,067,265 Total comprehensive income attributable to:
Loans payable, net of current portion 9 10,582,607,143 6,851,625,000 1,203,208,334 Owners of the Parent Company 3,340,717,940 2,005,187,144 1,265,579,185
Lease liabilities, net of current portion 18 1,507,853,434 1,374,860,357 70,927,569
Non-controlling interest – (55,286,345) (15,493,484)
Retirement benefit obligation 10 123,146,658 30,940,684 64,915,090
Subscribers’ deposits, net of current portion 8 1,132,965,276 491,831,373 94,604,975 3,340,717,940 1,949,900,799 1,250,085,701
Total non-current liabilities 13,551,677,748 8,831,213,326 1,480,723,233
Total liabilities 28,936,929,041 18,991,707,174 8,111,651,393 Earnings per share 19
Equity
Attributable to owners of the Parent Company Basic 0.61 0.31 0.25
Share capital 11 Diluted 0.48 0.31 0.25
Common shares 1,881,573,615 1,250,000,000 1,250,000,000
Convertible preferred shares - 306,818,180 - Please refer to our 2020 SEC 17A Report for the Notes to the Financial Statements
Additional paid-in capital 11 18,746,088,245 6,541,191,820 - (https://corporate.convergeict.com/wp-content/uploads/2020/10/CNVRG_FY20_17A_vF.pdf)
Retained earnings 11
Appropriated - 2,200,000,000 2,200,000,000
Unappropriated 7,139,049,614 1,814,215,854 1,028,202,624
Reserve for remeasurements of retirement benefit
obligation, net of tax 10 8,130,319 55,240,879 10,073,081
Other reserves 1.7, 11 - - 83,000,000
27,774,841,793 12,167,466,733 4,571,275,705
Non-controlling interest 23.7.4 312,500 312,500 37,231,540
Total equity 27,775,154,293 12,167,779,233 4,608,507,245
Total liabilities and equity 56,712,083,334 31,159,486,407 12,720,158,638
CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY
(All amounts in Philippine Peso)
Reserve for
remeasurements
Share capital (Note 11) of retirement
benefit obligation, Other
Convertible Additional Retained earnings (Note 11) net of tax equity Non-controlling
Common shares preferred shares paid-in capital Appropriated Unappropriated (Note 10) reserves interest Total
Balances at January 1, 2018 1,250,000,000 - - - 1,971,086,579 1,609,941 - 3,725,024 3,226,421,544
Transactions with owners
Acquisition of a subsidiary (Notes 1.7, 11) - - - - - - 83,000,000 - 83,000,000
Non-controlling interest on acquisition of subsidiaries
(Note 1.7) - - - - - - - 49,000,000 49,000,000
Total transactions with owners for the year - - - - - - 83,000,000 49,000,000 132,000,000
Comprehensive income
Profit for the year - - - - 1,257,116,045 - - (15,493,484) 1,241,622,561
Other comprehensive income for the year - - - - - 8,463,140 - - 8,463,140
Total comprehensive income for the year - - - - 1,257,116,045 8,463,140 - (15,493,484) 1,250,085,701
Appropriation of retained earnings (Note 11) - - - 2,200,000,000 (2,200,000,000) - - - -
Balances at December 31, 2018 1,250,000,000 - - 2,200,000,000 1,028,202,624 10,073,081 83,000,000 37,231,540 4,608,507,245
Direct investment in a subsidiary (Note 1.7) - - - - - - (83,000,000) - (83,000,000)
Disposal of subsidiaries (Note 1.8) - - - - (213,795,663) - - 18,367,305 (195,428,358)
Issuance of shares (Note 11) - 306,818,180 6,541,191,820 - - - - - 6,848,010,000
Declaration of dividends (Note 11) - - - - (960,210,453) - - - (960,210,453)
Total transactions with owners for the year - 306,818,180 6,541,191,820 - (1,174,006,116) - (83,000,000) 18,367,305 5,609,371,189
Profit for the year - - - - 1,960,019,346 - - (55,286,345) 1,904,733,001
Other comprehensive income for the year - - - - - 45,167,798 - - 45,167,798
Total comprehensive income for the year - - - - 1,960,019,346 45,167,798 - (55,286,345) 1,949,900,799
Balances at December 31, 2019 1,250,000,000 306,818,180 6,541,191,820 2,200,000,000 1,814,215,854 55,240,879 - 312,500 12,167,779,233
Balances at January 1, 2020 1,250,000,000 306,818,180 6,541,191,820 2,200,000,000 1,814,215,854 55,240,879 - 312,500 12,167,779,233
Issuance of shares (Note 11) 120,209,985 204,545,450 12,204,896,425 - - - - - 12,529,651,860
Conversion of preferred shares (Note 11) 511,363,630 (511,363,630) - - - - - - -
Declaration of dividends by Pentagon (Note 11) - - - - (262,994,740) - - - (262,994,740)
Total transactions with owners for the year 631,573,615 (306,818,180) 12,204,896,425 - (262,994,740) - - - 12,266,657,120
Profit for the year - - - - 3,387,828,500 - - - 3,387,828,500
Other comprehensive loss for the year - - - - - (47,110,560) - - (47,110,560)
Total comprehensive income for the year - - - - 3,387,828,500 (47,110,560) - - 3,340,717,940
Release of appropriation of retained earnings (Note 11) - - - (2,200,000,000) 2,200,000,000 - - - -
Balances at December 31, 2020 1,881,573,615 - 18,746,088,245 - 7,139,049,614 8,130,319 - 312,500 27,775,154,293
CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in Philippine Peso)
Notes 2020 2019 2018 Notes 2020 2019 2018

Cash flows from operating activities Cash flows from investing activities
Profit before income tax 4,878,709,930 2,497,255,062 1,669,097,899 Acquisitions of property plant, and equipment 6 (13,597,488,927) (6,770,861,062) (3,918,133,275)
Adjustments for: Acquisitions of intangible assets 7 (672,925,662) (510,833,563) (170,797,621)
Depreciation and amortization 13,14 2,459,439,570 1,666,356,774 976,357,520 Acquisitions of right-of-use assets 18 (126,991,800) – –
Amortization of deferred contract costs 12 826,710,561 355,363,899 129,127,968 Acquisition of investment in financial asset at FVTPL 22.1 (104,510,000) – –
Provision for impairment of trade and other receivables 3 720,474,218 529,944,733 124,913,466 Acquisition of investment in short-term government
Finance costs 9,18 550,310,967 275,051,087 70,555,628 securities 5 (5,500,000) – –
Provision for contingencies 14 110,925,384 – – Acquisition of investment in a subsidiary 1.7 – (83,000,000) –
Loss on disposal of property, plant and equipment 15 50,887,121 – – Net cash outflow from disposal of subsidiaries 1.8 – (16,375,116) –
Unrealized loss on FVTPL 22.1 26,489,855 – – Net cash used in investing activities (14,507,416,389) (7,381,069,741) (4,088,930,896)
Retirement benefit expense 13,14 23,292,511 23,532,149 20,895,159 Cash flows from financing activities
Provision for inventory obsolescence 13 2,049,102 27,716,510 – Proceeds from issuance of common shares 11 8,078,111,008 – –
Unrealized foreign exchange gain, net 20 (231,668,353) (1,289,198) (3,766,967) Proceeds from issuance of convertible preferred shares 11 4,567,949,670 7,056,450,000 –
Interest income on cash and cash equivalents 15 (35,912,375) (4,352,743) (918,101) Payment of share issuance costs 11 (116,408,818) (208,440,000) –
Interest income on finance lease receivable 15 (10,414,835) – – Proceeds from loans payable 9 5,462,196,429 6,788,971,272 2,706,821,623
Interest income on financial asset at FVTPL 15 (2,034,258) – – Payments of loans payable 9 (2,098,250,000) (1,563,769,559) (608,523,335)
Loss on disposal of financial asset at FVTPL 15 – 18,749,900 – Payment of dividends 11 (1,088,307,791) (134,897,402) –
Loss on direct write-off of receivables 14 – – 29,494,445 Interest paid on loans payable 9 (568,800,065) (272,564,640) (61,834,194)
Loss on direct write-off of network materials and Payments on lease liabilities 18 (249,480,556) (155,924,039) –
supplies 15 – – 4,889,322 Interest paid on lease liabilities 18 (115,173,554) (35,810,288) –
Gain on sale of property, plant and equipment 15 – – (511,444) Proceeds from issuance of subsidiaries’ interest to NCI 1.7 – – 49,000,000
Gain on reversal of provision for contingencies 15 – – (8,250,269) Proceeds from capital infusion 1.7 – – 83,000,000
Operating income before changes in assets and liabilities 9,369,259,398 5,388,328,173 3,011,884,626 Payments on finance leases 18 – – (49,763,689)
(Increase) decrease in assets: Interest paid on finance leases 18 – – (5,112,896)
Trade and other receivables (787,626,828) (2,335,748,385) (601,068,074) Net cash from financing activities 13,871,836,323 11,474,015,344 2,113,587,509
Due from related parties (806,523,552) (105,984,062) (434,003,113) Net increase in cash and cash equivalents 6,662,958,439 5,777,760,255 56,259,887
Network materials and supplies (2,720,770,791) (1,386,425,328) (1,516,178,300) Cash and cash equivalents, beginning 6,233,043,005 476,652,551 420,518,826
Deferred contract costs (1,760,860,845) (817,050,839) (288,055,253) Effects of exchange rate changes in cash and
Other current assets and non-current assets (1,197,065,277) (357,537,352) (108,171,801) cash equivalents 61,407,244 (21,369,801) (126,162)
Deferred input valued-added tax (63,426,701) 29,396,914 (97,907,369) Cash and cash equivalents, ending 2 12,957,408,688 6,233,043,005 476,652,551
Increase (decrease) in liabilities:
Trade and other current liabilities 5,833,616,677 1,854,992,995 1,865,042,270
Subscribers deposits 641,133,903 397,226,398 58,458,551
Due to related parties 51,159,579 (255,826,395) 393,007,779
Deferred revenue 387,291,020 129,140,189 106,070,345
Provision for contingencies – – (32,017,834)
Cash from operations 8,946,186,583 2,540,512,308 2,357,061,827
Interest received 35,912,375 4,352,743 918,101
Income taxes paid (1,683,560,453) (859,780,599) (325,876,654)
Retirement benefits paid 10 – (269,800) (500,000)
Net cash from operating activities 7,298,538,505 1,684,814,652 2,031,603,274
(Forward)
76 CONVERGE ICT SOLUTIONS INC.
ANNUAL REPORT 2020
Corporate information
CORPORATE OFFICE
Reliance IT Building 99 E. Rodriguez Jr. Ave. Brgy. Ugong, Pasig City
(02) 8667 0848
Website: https://corporate.convergeict.com/
INVESTOR RELATIONS
For institutional/retail investors, financial analysts, portfolio managers, etc.
requiring information:
Email: investors.relations@convergeict.com
Website: https://corporate.convergeict.com/investor-relations/
SALES/CUSTOMER SERVICE
NCR – Sales: (02) 8667 0848
NCR – Customer Care: (02) 8667 0850
North Luzon: (045) 598 3000
Laguna: 0928 769 7292/ 0967 372 1336
Batangas: 0995 235 4780/ 0998 381 3076
Cavite: 0905 665 0845/ 0921 748 0975/ 0927 852 4101/ 0918 542 9485
Twitter: @Converge_CSU
Website: https://www.convergeict.com/
Facebook: Converge ICT Support page @CICTSupport
MEDIA RELATIONS
For media partners requiring information:
Email: corpcomm@convergeict.com
Website: https://corporate.convergeict.com/news/
TRANSFER AGENT
Philippine National Bank
PNB Financial Center, Diosdado Macapagal Blvd.,Pasay City

CONVERGE 2020 Annual Report

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Reliance IT Building,

99 E. Rodriguez Jr. Ave, EXPLORE A WORLD

About the Cover Contents

Message from the Chairman

Message from the CEO

DEAR FELLOW SHAREHOLDERS, from putting in place the government-mandated

“The pandemic is not yet over and the emerging

MESSAGE FROM THE PRESIDENT

“With strong residential subscriber growth

Who We are Vision Values

Pentastar Holding Co. Inc.

Fiber Internet Technology

ONWARD TO THE FUTURE: ENVISIONING

Financial AND Operational Highlights Key Consolidated Financial Highlights

16,000 1 5 , 6 52 10,000 55 Income Statement Data (in Million Pesos)

2,000 Other income, net 52 18 360

3,000 1,000 10,000

500 200 2,000

EBITDA margin 50.4% 51.0% 52.5%

2018 2019 2020 2018 2019 2020 2018 2019 2020

HIGH CAPACITY BACKBONE

The DWDM technology is triple redundant, thereby

RAPID NATIONWIDE EXPANSION OF

NATIONWIDE BACKBONE EXPANSION

There are currently hundreds of attractive pockets

products and services

world class partnerships INTERNATIONAL TRANS-PACIFIC BANDWIDTH INVESTMENT: “BIFROST”

New synergies for greater connectivity and accessibility

Awards and recognition

AWARDS AND RECOGNITIONS (o

2020 ENTREPRENEUR 2020 MASTER ENTREPRENEUR

This is to certify that

Converge ICT Solutions

DR. LEONOR MAGTOLIS BRIONES

When the World Health Organization (“WHO”)

5 CONVERGE ICT SOLUTIONS INC. EXPLORE A WORLD OF POSSIBILITIES: 6

Amando “Say” Maglalang

FROM LEFT: JESUS C. ROMERO RONALD G. BRUSOLA ALBERTO L. SANTOS

ATTY. MARIA GRACE C. DE JESUS

Financial STATEMENT OF MANAGEMENT’S

DENNIS ANTHONY H. UY CHRISTINE RENEE R. BLABAGNO

INDEPENDENT AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT

CONSOLIDATED STATEMENTS OF CONSOLIDATED STATEMENTS OF

December 31, December 31, January 1, Notes 2020 2019 2018

CONSOLIDATED STATEMENTS OF CASH FLOWS

Notes 2020 2019 2018 Notes 2020 2019 2018

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