PHI

The main risks arising from our financial instruments are liquidity risk, foreign currency exchange risk, interest rate risk and credit risk. The importance of managing those risks has significantly increased in light of the considerable change and volatility in both the Philippine and international financial markets. Our Board of Directors reviews and approves policies for managing each of these risks. We also monitor the market price risk arising from all financial instruments. See Note 27 – Financial Assets and Liabilities – Financial Risk Management Objectives and Policies to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for a detailed discussion. Impact of Inflation and Changing Prices Inflation can be a significant factor in the Philippine economy and we are continually seeking ways to minimize its impact. The average inflation rate in the Philippines for the years ended December 31, 2025, 2024 and 2023 were 1.7%, 3.2% and 6.0% respectively. The risks to the inflation outlook are continuing constraints in the supply of key food items, the adverse impact of climate change on food and electricity prices, and the effects of potential increases in transport fares and minimum wages. 116 Table of Contents

A. [Reserved] B. Capitalization and Indebtedness Not applicable. C. Reasons for the Offer and Use of Proceeds Not applicable. D. Risk Factors You should carefully consider all of the information in this annual report and in the other documents we file with or furnish to the SEC, including the risks and uncertainties described below, before deciding to invest in or to maintain an investment in our securities. If any of these risks materialize, they could have a material adverse effect on our business, financial condition or results of operations and may cause the trading price of our ADSs to decline, potentially resulting in the loss of all or part of your investment. Additional risks not presently known to us or that we currently deem immaterial may also impair our business, financial condition and results of operations. Risks Relating to Us Increased competition in the telecommunications sector may diminish our market share and profitability, while changes in the competitive and regulatory landscape could further exacerbate adverse effects on our business. Increasing competition among telecommunications services providers, including new operators, as well as small telecommunications companies, cable TV providers, and P2P resellers with VAS license from the NTC, could significantly impact our business and prospects by, among other factors, necessitating price reductions, hindering growth of our customer base and reducing usage of our services. Competition is intense for both mobile and fixed line services, with factors such as network coverage, service quality, product offerings, and price as considerations for subscriber preference, potentially requiring increased capital expenditures for capacity and coverage expansion. The mobile telecommunications industry has experienced intense price competition as operators have attempted to expand market share, especially in light of a maturing voice and SMS market. Competition has now pivoted to data services, prioritizing customer experience over pricing. Our competitors in fixed line broadband, Globe Telecom, Inc. (Globe), and Converge ICT Solutions, Inc. (Converge), a pure fiber broadband provider, are heavily investing in expanding their respective fiber presence. Meanwhile, DITO Telecommunity Corporation (DITO) is aggressively expanding its footprint. In addition, we face competition from regional and niche service providers, including members of PAPTELCO, cable television operators offering broadband services, small and regional internet service providers (ISPs), and other community-based access providers, whose participation has increased as regulatory developments have lowered barriers to entry, particularly in underserved and rural areas. 7 Table of Contents Our ability to compete depends on factors like network coverage and capacity, government regulations and policies, service quality, pricing, product innovation, sales channels, and financial resources. Our competitive stance hinges on our ability to anticipate and respond to industry shifts, including technological advancements, regulatory changes, evolving consumer preferences, and economic trends. Failure to identify and respond to these challenges could adversely impact our business. In addressing the intense competition, we may need to adjust our pricing strategies and allocate resources to network upgrades, which could lead to lower revenues and higher costs. Moreover, the potential entry of new competitors and customer churn may require increasing marketing and capital expenditures, thereby impacting our overall profitability. We cannot assure you that the number of providers of telecommunications services will not increase in the future or that competition for customers will not result in the loss of customers, including due to our mobile and fixed line subscribers switching to other operators. Any of the foregoing events could reduce our profitability. Developments in law, regulations and/or Government initiatives may increase competition and cause us to lose customers. In the past, the Philippine government has introduced various measures to encourage competition within the telecommunications industry and facilitate and enable the operation of new players, including a tower sharing policy, the Mobile Number Portability (MNP) Act which allows qualified customers to retain their mobile numbers when they move mobile service providers (MSP) or change their subscription package, and removal of mobile interconnect charges. In 2022, the Republic Act No. 11659 or “An Act Amending Commonwealth Act No. 146, otherwise known as the Public Service Act, as amended" (Amendment to the Public Service Act) effectively removed the 40% foreign ownership restriction on telecommunication companies resulting in increased competition. More recently, in 2025, Republic Act 12234, or the Konektadong Pinoy (KP) Act came into effect and further reshaped the competitive landscape by liberalizing the data transmission sector and reducing regulatory barriers for new entrants. The KP Act establishes an open-access regime in the data transmission sector, removes the legislative franchise requirement for such services, mandates infrastructure sharing for items included in the regulators’ Access List, and introduces a Spectrum Management Policy Framework (SMPF) allowing periodic review, potential recall, reassignment and revaluation of spectrum holdings. Spectrum assignments may be subject to review for underutilization or concentration, and future assignments may be influenced by market-based or competition-driven considerations. These regulatory changes may heighten competitive intensity in the Philippine data transmission market, including the entry of new DTIPs, mandatory infrastructure sharing, expanded regulatory reporting obligations, enhanced competition oversight, and possible designation of significant market power (SMP) with corresponding ex-ante obligations. Compliance with eligibility thresholds, rollout commitments, performance standards, pricing disclosure, cybersecurity audits, and spectrum review processes may affect operating flexibility, capital allocation strategies, cost structures, and margins. While Management does not expect the KP Act and related issuances to result in any immediate material impairment of existing assets, the long-term financial and operational impact remains subject to the finalization of the initial Access List, the implementation of the SMPF, spectrum review outcomes, regulatory classification under the DTIP framework, possible SMP designation, future regulatory issuances, and evolving enforcement practices. The Group continues to monitor these developments and assess their potential impact on its business, financial condition, results of operations, and cash flows. In addition, the Data Rollover Bill, which mandates public telecommunications entities to carry over unused data allocations for both prepaid and postpaid users to the next billing cycle, was approved by the House of Representatives in December 2025 and is awaiting action in the Senate. This reduces breakage revenue, affects predictability of consumption behavior, and may diminish the effectiveness of volume-tiered plans. If the bill is passed, it may materially and adversely affect our revenue profile and product‑design strategies. The mandated rollover of unused data could intensify price‑based competition, pressure ARPU and require adjustments to network-capacity planning to accommodate more variable usage patterns. Failure to adapt our service offerings and systems to these requirements may adversely affect customer experience and profitability. We cannot guarantee that in the future, there will not be similar changes in law, regulations or Government initiatives that may adversely affect our competitiveness. The rapid advancement of disruptive innovations by new and emerging technologies may outpace our ability to compete and/or manage the risk appropriately, resulting in a possible decline in demand for our services, significant changes to our business model and a material adverse effect on our business, results of operations, financial condition and prospects. The growing use of mobile data in the Philippines, along with the widespread adoption of OTT services and video conferencing applications, have negatively impacted our traditional revenue sources such as SMS and domestic calling services in recent years. We also face growing competition from providers utilizing alternative wireless technologies and IP-based networks, including the Philippine Government's initiatives to roll-out its free WiFi services in select areas within various municipalities. Moreover, net settlement payments between PLDT and other foreign telecommunications carriers for origination and termination of international call traffic between the Philippines and other countries, which have been our predominant source of foreign currency revenues, are expected to continue declining as a percentage of our total service revenues. While increasing mobile data usage positively impacted our data revenues and is expected to continue driving growth, there is no guarantee that such increase will fully offset the decline in revenues from our traditional services. We may not be able to maintain 8 Table of Contents and attract customers more effectively than our competitors. We must also invest in additional capacity, infrastructure, cybersecurity, systems and personnel to provide high quality services that accommodate increasing mobile data usage. As a result, our capital costs could increase as we phase out outdated and unprofitable technologies and invest in new ones. We may not be able to accurately predict further technological trends or successfully adopt or implement new technologies in our business. Some of our competitors may be more successful than us in the development and implementation of new technologies to address customer demand or improve operations, including services and platforms using artificial intelligence (AI). If we are unable to adequately advance our capabilities in these areas or fail to keep pace with others in our industry, we may be at a competitive disadvantage. In addition, there could be legal or regulatory constraints on our introduction of new services. If our new services fail to gain acceptance in the marketplace, or if costs associated with the implementation and completion of the introduction of these new services is higher than expected and require us to charge a higher price than what customers are willing to pay for such services, our ability to retain and attract customers could be adversely affected and we may not be able to generate a return on investments. Developments in AI technologies, and its governing legal and regulatory frameworks, are rapidly evolving, and could significantly disrupt the telecommunications industry and subject us to increased competition, legal and regulatory risks and compliance costs, which could have a material adverse effect on our business, financial condition and results of operations. The full extent of risks related thereto is difficult to predict. We are integrating AI into pre-identified focused-areas of our operations. In 2025, we deployed AI‑enabled solutions across revenue assurance, customer engagement, and operational support functions, including fraud detection, smart voice and chatbot assistants for collections and customer interactions, and workflow automation to support credit evaluation, payment processing, and selected service inquiries. We have also introduced AI tools to augment employee productivity, with appropriate human oversight. As we continue to assess AI capabilities and associated risks, we are incrementally embedding AI to improve efficiency, enhance customer experience, and support data‑driven decision‑making. Certain AI initiatives are intended to support wireless growth and monetization strategies, including those related to 5G services. Our AI deployments remain selective and use‑case driven, and their long‑term impact and commercial benefits continue to be evaluated. Market demand, acceptance of AI technologies and the business case for AI are uncertain at this point. Potential litigation or government regulation related to AI may also increase the burden and cost of research and development in this area, subjecting us to reputational harm, competitive harm or legal liability. Among other pitfalls, such tools may inadvertently generate or reveal confidential information, or may produce responses that are erroneous, biased, inaccurate, illegal or unethical. Failure to address perceived or actual technical, legal, compliance, privacy, security, ethical or other issues relating to the use of AI technologies could adversely affect our business and operating results. Regulations relating to AI technologies may also impose on us certain obligations and costs related to monitoring and compliance. There is uncertainty around the regulation of AI technologies as the Philippine government is in the process of defining its own laws and policies amidst the creation of new AI-related laws in other jurisdictions. The Department of Trade and Industry has developed the National AI Strategy for the Philippines. Bills have been filed in Congress proposing the creation of an AI regulatory body and are pending with the Committee on Information and Communications Technology. PLDT has an Ethical AI Policy that governs its approach and initiatives involving AI. The success of our business depends on our ability to maintain and enhance our brands. We believe that our reputation and brands in the industry are crucial to the success of our business. To maintain and enhance our reputation and brands, we must continue providing relevant products and services, combined with the best customer experience, such that we not only maintain our current customer base but also attract new subscribers. If we are unsuccessful in maintaining our reputation and improving our brands, our business, financial position and results of operations may be negatively affected. Our reliance on arrangements with technology vendors, other partnerships and/or joint ventures, and any disruptions to such arrangements may result in disruption to our business operations and adversely affect our supply of equipment and results of operations, financial condition, reputation and business prospects. As part of our extensive capital expenditures program to enhance our fixed and wireless networks infrastructure and IT systems to fully support business requirements, we have entered into agreements with vendors, to upgrade and modernize significant portions of our IT infrastructure. However, we cannot guarantee that these initiatives will be completed on schedule, or at all, or as intended. Furthermore, we cannot guarantee that such initiatives will not result in service disruptions, network outages or other issues that may detrimentally affect our service delivery and consumer experience. This may adversely affect our business, financial condition and results of operations. Due to our reliance on third party vendors, our business operations may be negatively impacted by global geopolitical and public health developments (such as COVID-19), which can disrupt supply chains, delay network construction, and impact service delivery. Any adverse changes in import policies, including increases in import duties and tariffs, or any embargo on imports 9 Table of Contents from countries from which our vendors supply or countries supplying our vendors, may also adversely impact our business, prospects, results of operations and cash flows. Trade tensions between the United States and major trading partners continue to escalate following the introduction of a series of tariff measures by the United States and/or its trading partners. Economic and trade sanctions have been threatened and/or imposed by the U.S. government on a number of People’s Republic of China (PRC)-based technology companies, including Huawei Technologies Co., Ltd. (Huawei), a key vendor for our telecommunications equipment and software licenses, and with whom we have partnered with to develop and offer outcome-based cloud solutions. The United States has also in certain circumstances imposed and threatened to impose further sanctions, trade embargoes and other heightened regulatory requirements on the PRC and PRC-based technology companies. The United States government has brought enforcement actions against Huawei and companies who engaged in unauthorized transactions with Huawei. While our partnership with Huawei is not currently subject to such sanctions or trade embargoes, there is no assurance that the United States or other jurisdictions will not impose similar or more expansive restrictions that may materially and adversely affect or restrict our relationships or collaborations with our vendors, including Huawei and its designated entities, thereby adversely affecting our reputation, competitiveness and business operations. Some of our third-party vendors may encounter financial difficulties or consolidate with other vendors. This may result in a shrinking of the already limited pool of qualified vendors which may in turn, materially impact the third-party vendors’ ability to fulfill their obligations and thereby impact our operations. The limited number of available vendors may also result in our dependence on a single vendor to provide critical services. Our ability to generate revenues could be disrupted if our suppliers are no longer able or willing to supply us. In the event that any of our suppliers cannot or will not provide us with the required products, we may be forced to find alternative suppliers. There is no guarantee that we will be able to obtain our products or products of a similar quality from alternate suppliers, in part or at all. Failure to find alternative suppliers will disrupt our operations and hinder our ability to generate revenues. Our vendors/suppliers may be affected by the effects of climate change and extreme weather conditions which could affect their ability to fulfill their commitments to us. This, in turn may disrupt our operations and business continuity. The mobile telecommunications industry in the Philippines may not continue to grow. The majority of our total revenues are derived from mobile services provided to customers in the Philippines, making us highly dependent on the continued development and growth of the local mobile telecommunications industry. We believe the country's mobile penetration rate reached approximately 125% as at December 31, 2025, based on the number of SIM cards issued. Given this penetration level, the market for SMS and domestic voice may be considered mature. Data has emerged as the key driver for revenues. While data traffic on our network has increased, further market expansion depends on many factors beyond our control, including the continued introduction of new and enhanced mobile devices, the price levels of mobile handsets, consumer tastes and preferences, alternative means of access, and the amount of disposable income of existing and potential subscribers. Any economic, technological or other developments resulting in a reduction in demand for mobile services or otherwise causing the Philippine mobile telecommunications industry to stop growing or slow down its growth, could materially harm our business, results of operations, financial condition and prospects. The franchises, licenses and regulatory approvals, upon which PLDT relies, may be subject to revocation or delay in issuance, which could result in the suspension of our services or abandonment of any planned expansions and could thereby have a material adverse effect on our business, results of operations, financial condition and prospects. We operate our business in a highly regulated environment. We cannot assure you that there will be no adverse changes in applicable public ownership requirements or interpretations thereof, or that none of our franchises, permits or licenses will be revoked or fail to be renewed. Any such occurrences could have a material adverse effect on our business, financial conditions and prospects. PLDT has obtained Certificates of Public Convenience and Necessity (CPCN) for its international gateway facilities, local exchange carriers, and interexchange carrier services. While CPCNs are typically co-terminus with the term of a public utility’s franchise, the NTC may amend certain terms of a CPCN, or revoke a CPCN for cause, subject to due process procedures. Following the enactment of the KP Act and the issuance of its Implementing Rules and Regulations (IRR), the requirement for a legislative franchise and CPCN for data transmission services was removed and replaced with a registration-based regulatory regime administered by the relevant government agencies. We cannot guarantee that the NTC will not impose additional obligations on us that, if unmet, could lead to the revocation of our licenses and/or a reduction in our total revenues or profitability. The NTC could amend applicable regulations or implement additional guidelines governing our interconnection with other telecommunications companies or the rates and terms upon which we provide services to our customers. In addition, any future expansions in our services, particularly in our mobile services, could subject us to additional conditions in the granting of our provisional authorities by the NTC and to increased regulatory scrutiny, which could have a material adverse effect on our growth and prospects. The occurrence of any of the foregoing could impose substantial costs on us, cause interruptions or 10 Table of Contents considerable delays in the provision, development or expansion of our services, or materially reduce our revenues and profitability. There is no assurance that the regulatory environment will support increases in our business and financial activity. We continue to hold various provisional authorities, CPCNs, spectrum assignments, and other regulatory approvals, some of which are transitional in nature and will expire between now and 2042. Certain CPCNs and provisional authorities have already expired; however, applications for renewal were filed prior to their expiry. Under Executive Order No. 292 (Philippine Revised Administrative Code of 1987) and Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018), such authorizations are deemed effective until the regulator acts on the renewal applications. Failure to maintain the necessary regulatory authority, approvals, or compliance status may materially and adversely affect our ability to conduct essential business operations, result in penalties, suspension of authority, or increased compliance costs, and adversely affect our financial condition and results of operations. See Item 4. “Information on the Company – Franchises, Licenses and Regulations” for more information. Our business is subject to extensive laws and regulations, including regulations in respect of our public ownership, service rates and taxes, as well as antitrust laws. Any changes in such laws and regulations or interpretations thereto, or failure to comply with regulatory changes, could adversely affect our business, financial performance and prospects. Our business is subject to extensive laws and regulations, including regulations in respect of our public ownership, service rates and taxes, in addition to antitrust laws. Republic Act No. 7925, otherwise known as the “Public Telecommunications Policy of the Philippines” (R.A. 7925), requires a telecommunications entity with regulated types of services to make a bona fide public offering through the stock exchange of its shares representing at least 30% of its aggregate common shares within five years from: (a) the date the law became effective; or (b) the entity’s commencement of commercial operations, whichever date is later. Republic Act No. 10926 provides an exemption from the public listing requirement if the grantee is wholly-owned by a company that has publicly listed at least 30% of its authorized capital stock. PLDT is a publicly listed company and therefore in compliance with this requirement. Smart, as a wholly-owned subsidiary of PLDT, a publicly listed company, is not required to offer any of its shares to the public. Meanwhile, DMPI takes the position that it has satisfied the public offering requirement under R.A. 7925 and Republic Act No. 9180 (R.A. 9180), or the legislative franchise of DMPI (DMPI’s Franchise), by virtue of the fact that PLDT, a publicly listed company, holds a 99.6% equity interest in DMPI’s parent company, Digitel Telecommunications Philippines, Inc. (DTPI), which in turn, holds a 100% equity interest in DMPI. The NTC regulates the rates we are permitted to charge for services that have not been deregulated, such as local exchange services. We are subject to various national and local taxes, and regulatory fees imposed by LGUs through their respective ordinances. We cannot assure you that we will not be subject to new, increased and/or additional taxes or that we will be able to pass on such additional expenses to our customers. See Note 26 – Provisions and Contingencies to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for further discussion. Moreover, we are subject to antitrust laws and regulations. Republic Act No. 10667, otherwise known as the Philippine Competition Act (Philippine Competition Act), came into effect on August 8, 2015, and prohibits practices that restrict market competition through anti-competitive agreements or the abuse of dominant position. The Philippine Competition Act also requires parties to provide notification and obtain clearance for certain mergers and acquisitions. Violators may be subject to administrative and criminal penalties. While our business practices have not in the past been found to have violated any antitrust laws and regulations, we cannot assure you that any new or existing governmental regulators will not, in the future, take the position that our current or past business practices have an anti-competitive effect on the Philippine telecommunications industry. Smart is currently subject to an ongoing inquiry by the Philippine Competition Commission (PCC) involving multiple subpoenas, hearings, and continuing requests for information in relation to its operations as a public telecommunications entity (PTE), interconnection arrangements with other carriers, and International Simple Resale (ISR)-related matters involving DITO. As of this writing, no final ruling has been issued. See Note 26 – Provisions and Contingencies to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for further discussion. In 2025, House Bill 178, otherwise known as the Automatic Refund for Internet and Telecommunications Services Outages and Disruptions Act, was transmitted by Congress to the Senate, where it remained pending. The bill would require PTEs, including ISPs, to automatically refund or adjust a customer's bill when they experience a cumulative internet service outage or interruption lasting twenty-four (24) hours or more within a month. However, the bill provides exemptions in the case of scheduled maintenance (with a 48-hour advance notice and not exceeding 48 hours per month), fortuitous events, or acts of third parties or subscribers. The implementation of House Bill 178 would require PLDT Group to implement granular, per-customer service-quality monitoring and undertake substantial adjustments to operations, processes, and network infrastructure, which could entail significant capital expenditure and operating expenditure, and may present challenges in meeting regulatory transition timelines. 11 Table of Contents The KP Act lapsed into law on August 24, 2025. The IRR, published on December 1, 2025, establishes a comprehensive and liberalized regulatory framework that removes the requirement for a legislative franchise and Certificate of Public Convenience and Necessity (CPCN) for data transmission industry participants, and opens all segments of the data transmission network to competition. Under the IRR, entities classified as Data Transmission Industry Participants must comply with new eligibility, registration, reporting, and performance standards, including mandatory annual submissions, adherence to minimum quality-of-service benchmarks, separate accounting per network segment, and compliance with cybersecurity certification requirements. The IRR also requires access providers, including incumbent operators such as us, to publish Reference Access Offers on open, fair, reasonable, and non‑discriminatory terms, while granting regulators the authority to impose ex‑ante obligations on entities designated as having significant market power. Further, the forthcoming SMPF contemplates periodic spectrum audits and potential recall of unutilized or underutilized spectrum, which may affect network planning and asset utilization. These changes substantially increase compliance obligations and lower barriers for new entrants, thereby intensifying competitive pressures. The KP Act and its IRR may introduce operational, financial, and strategic challenges for incumbent players that may materially affect our business, results of operations, or financial condition. House Bill 87, approved by the House of Representatives in December 2025 and pending Senate action, proposes to mandate a roll-over data allocation scheme requiring ISPs to carry over unused data to the next billing cycle and impose penalties for non‑compliance. The roll-over regime outlined under the bill, if enacted, would require extensive changes to data‑management frameworks, billing systems, and related operational processes to ensure accurate tracking, accumulation, and application of unused data entitlements. These requirements may result in significant capital expenditure and operating expenditure for the PLDT Group, and any failure to meet the prescribed standards or timelines may subject us to penalties or sanctions. On September 29, 2025, the NTC issued Memorandum Order No. ###-##-####. The memorandum requires internet intermediaries under the supervision of the NTC, including us, to submit quarterly compliance reports on the implementation of R.A. No. 11930 or the Anti-Online Sexual Abuse or Exploitation of Children and Anti-Child Sexual Abuse or Exploitation Materials Act, including blocking and preservation of data traffic and any measures adopted to strengthen safeguards. As part of its advocacy on online safety, PLDT has invested in a child protection platform to detect and access malicious sites and URLs, and continually monitors and submits reports as required. It also undertakes regular awareness campaigns on internet safety. However, there is no assurance that our users are fully protected against the dangers of the internet. On January 26, 2026, the SEC issued SEC Memorandum Circular No. 7, Series of 2026 (effective February 1, 2026 after publication in two newspapers of general and national circulation), which covers PSE-listed companies and limits an individual's ability to serve as an independent director in the same company to a maximum cumulative term of nine years, with the maximum term for incumbent independent directors generally reckoned from calendar year 2012. An independent director who has served the maximum cumulative term is perpetually barred from re-election as an independent director of the same company, subject to a transitory provision allowing incumbents who have already reached the maximum term upon effectivity to continue until the 2026 annual stockholders’ meeting (or another date approved by the SEC). Covered companies that breach the maximum cumulative term limit are subject to a basic penalty of Php1,000,000.00 per independent director per year and a continuing penalty of Php30,000.00 for every month that the independent director holds the seat, and a third or succeeding offense for the same violation may result in the suspension or revocation of the company’s secondary or primary license. While the Company is taking steps to comply with the SEC Memorandum Circular and update relevant corporate policies to align with the amended guidelines, nonetheless, if not timely implemented, the Company may be exposed to penalties. Regulators have been increasingly focused on online and mobile payment services, and other developments could reduce the convenience or utility of our payment services for users. Governmental regulation of certain aspects of mobile payment systems which PLDT utilizes could result in obligations or restrictions with respect to the types of products that we may offer to consumers, the payment card systems that link to our mobile payments systems, the jurisdictions in which our payment services or apps may be used, and higher costs, such as fees charged by banks to process funds through our mobile payments systems. We may be subject to more obligations and restrictions as more jurisdictions regulate payment systems. Moreover, if new regulations provide resources, preferential treatment or protection to selected payments and processing providers, we could be displaced, prevented or substantially restricted from participating in the relevant geographies. Any adverse changes in applicable laws and regulations can have an adverse impact on our business, results of operations, financial condition and prospects. For additional details of the impact of regulations on our business, see “Franchises, Licenses and Regulations.” Changes in regulations or user concerns regarding the privacy and protection of user data, or any failure to comply with data privacy laws, could adversely affect our business. We are subject to various laws and regulations regulating data privacy matters, including Republic Act No. 10173, otherwise known as the Data Privacy Act of 2012 (Data Privacy Act). The Data Privacy Act regulates the processing of personal data in the public and private sectors, within and outside the Philippines. Pursuant to Republic Act No. 11934, otherwise known as the SIM Registration Act, we are required to maintain a SIM register of all our end users, exposing us to heightened risks of data breaches 12 Table of Contents and cybersecurity attacks. Bills impacting privacy and the processing of personal data have been filed with the Philippine Congress. While these bills do not directly seek to amend the Data Privacy Act, if signed into law, these legislation could increase our compliance costs and impact business innovation. In addition, various foreign legislative or regulatory bodies continue to enact new or additional laws and regulations concerning privacy, data retention and data protection issues, including laws or regulations mandating disclosure to domestic or international law enforcement bodies, which could adversely impact our results of operations, businesses, brand or reputation with users. Transfers of personal data across jurisdictions subject us to regulation by foreign authorities, which may require us to incur additional costs in complying with such regulations. The interpretation and application of privacy, data protection and data retention laws and regulations in each jurisdiction may be subject to change and such laws and regulations may be interpreted and applied inconsistently from country to country, complicating long-term business planning decisions. Complying with varying international requirements could cause us to incur substantial costs or require us to change our business practices or operating platforms in a manner adverse to our business. While the PLDT Group periodically conducts compliance audits and regularly holds privacy and information security training and awareness campaigns, it cannot guarantee that personal data breaches resulting from failure of our personnel to comply with PLDT policies will not occur. Furthermore, while PLDT periodically releases public advisories to remind our customers of safe online behavior, there is no guarantee that our customers will not be victims of data breaches. If our current policies and practices are found to be incompatible with privacy, data protection or data retention laws, we may be fined or ordered to change our business practices in a manner that adversely impacts our operating results. Any failure, or perceived failure, by us to comply with any privacy, data-retention or data-protection-related laws, regulations, orders or industry self-regulatory principles, including the Data Privacy Act, could result in proceedings or actions against us by governmental entities or affected parties, loss of user confidence, damage to the PLDT brands and reputation, or the loss of users or advertising partners. Any of the foregoing could have a material adverse impact on our business operations, financial conditions and prospects. Limitations in the amount of frequency spectrum or facilities made available to us could negatively affect our ability to maintain and improve our service quality and level of customer satisfaction, increase our costs and reduce our competitiveness. Available radio frequency spectrum is one of the principal constraints on wireless network capacity, and our ability to provide high-quality mobile and data services depends on continued access to adequate spectrum resources. While the NTC grants authorizations and assigns spectrum for specific services and service areas, the KP Act and its IRR introduced a reformed spectrum management regime that may significantly affect future spectrum availability and the conditions under which we operate. Under the KP Act's IRR, the NTC is mandated to periodically review spectrum allocations, assignments, and utilization, and to undertake measures such as spectrum recall, restacking, or reassignment to ensure efficient and optimal use of this finite national resource. The forthcoming SMPF will establish new methodologies for spectrum valuation, pricing, assignment, and renewal, and will require the identification and potential recall of unutilized or underutilized spectrum within defined periods. These regulatory mechanisms may subject us to heightened scrutiny regarding the utilization of our current assignments and expose us to the risk of partial or full spectrum recall if our holdings are determined to be underutilized. The KP Act's IRR also reinforces compliance obligations applicable to all data transmission industry participants, including the requirement to meet performance standards, maintain segment-level reporting, and ensure service availability consistent with quality-of-service benchmarks. Non-compliance may result in administrative penalties, suspension, or revocation of authorizations, including spectrum assignments. Moreover, as all network segments are exposed to greater competition under an open‑access framework pursuant to the KP Act, new entrants may seek access to digital infrastructure, increasing the competitive demand for scarce spectrum resources. If the Philippine Government reallocates spectrum, imposes new conditions for its use, applies updated pricing or valuation mechanisms, or revokes or recalls spectrum previously granted to us, or if we are unable to acquire, retain, or fully utilize sufficient spectrum to meet customer needs, our ability to expand capacity, maintain service quality, and compete effectively in the market may be materially and adversely affected. We may not be successful in our acquisitions of, and investments in, other companies and businesses, and may therefore be unable to fully implement our business strategy. We have in the past made certain acquisitions of, and investments in, various businesses. As our traditional fixed line and mobile businesses mature, and as part of our strategy to grow other business segments, we may continue to make acquisitions and 13 Table of Contents investments in companies or businesses to enter new businesses or defend our existing markets. The success of our acquisitions and investments depends on a number of factors, such as: •our ability to identify suitable opportunities for investment or acquisition; •our ability to reach an acquisition or investment agreement on terms that are satisfactory to us or at all; •the extent to which we are able to influence or exercise control over the acquired or investee company; •the compatibility of the economic, business or other strategic objectives and goals of the acquired or investee company with those of the PLDT Group, as well as the ability to execute the identified strategies to generate fair returns on the investment; •our ability to successfully integrate the acquired company or business with our existing businesses; and •economic and competitive conditions in which the business operates. Any of our contemplated acquisitions and investments may not be consummated due to reasons or factors beyond our control. Even if we successfully consummate contemplated acquisitions and/or investments, we may not be able to realize any or all of the anticipated benefits of such acquisitions and/or investments and we cannot assure you that the consummation of such acquisitions and/or investments will not result in losses for a prolonged period of time. On the other hand, if we are unsuccessful in our contemplated acquisitions and investments, we may not be able to fully implement our business strategy to maintain or grow certain of our businesses and our results of operations and financial position could be materially and adversely affected. We are exposed to the fluctuations in the market values of our investments. Given the nature of our business and our foray into the digital business, we have made investments in various start-up companies which may take several years to become profitable or may not achieve profitability at all. For example, we hold an investment in MIH, an important player in the financial technology space and an integral part of our digital payment ecosystem. In accordance with IAS 28, Investments in Associates and Joint Ventures, we account for our investment in MIH using the equity method, whereby we recognize our proportionate share of MIH’s results. Our share in MIH losses amounted to Php935 million and Php2,277 million for the years ended December 31, 2024 and 2023, respectively. MIH turned profitable in 2025 and our share in MIH’s profit amounted to Php681 million for the year ended December 31, 2025. Credit ratings and the value of this investment and similar investments can be negatively impacted by liquidity, credit deterioration or losses, financial results, foreign exchange rates, or other factors. As a result, our investments could decline and result in a material impairment, which could have a material adverse effect on our financial condition and operating results. If we are unable to install and maintain telecommunications facilities and equipment in a timely manner, we may not be able to maintain our current market share and the quality of our services, which could have a material adverse effect on our results of operations and financial condition. Our business requires the regular installation of new telecommunications facilities and equipment, and the regular maintenance of such facilities and equipment, which are continually being undertaken. The installation and maintenance of these facilities and equipment are subject to a number of risks and uncertainties, such as: •shortages of equipment, materials and labor; •delays in the issuance of national and local government building permits; •theft of telecommunication cables and equipment; •work stoppages and labor disputes; •interruptions resulting from man-made events (e.g., sabotage), outbreak of epidemics, pandemics or other public health crises, severe weather conditions and other natural disasters; •rapid technological obsolescence; •inability of vendors and/or suppliers to deliver on commitments; •unforeseen engineering, environmental/climate-related and geological problems; and •unanticipated cost increases including those resulting from foreign exchange movements. Any of these factors could give rise to delays and/or cost overruns in the installation of new facilities or equipment or prevent us from deploying our networks and properly maintaining the equipment used in our networks, and hence affect our ability to maintain existing services and roll-out new services, for example, which could have a material adverse effect on our results of operations and financial condition. 14 Table of Contents Our business relies on secure network infrastructure and computer systems, and any successful cyber attacks against them, or the perception of such attacks, may materially adversely affect our operations, financial condition, results of operations and reputation. We need to constantly upgrade our cybersecurity capabilities to support our business needs and keep up with the rapidly changing cyber threat environment. As we rely on information and digital services to run our business and deliver value, we face the following challenges in an era of connectivity, digital identity, decentralized decisions, information monetization, transparency, and variable trust: •An increase in the variety of products and services that we provide to our customers (e.g., customer premise equipment, systems, devices, IoT, data and their dynamic relationships) exposes relevance issues, as well as scalability issues in our existing security control solutions; •Our existing deterrence measures against cybersecurity breaches may become less effective. For instance, defensible gates and impermeable walls that are designed to secure our service and information infrastructure may have become less effective. While such tools and measures make it difficult to breach our system, these tools may not stop breaches altogether; •The infrastructure underpinning the digitalization of consumer and enterprise services has become more complex; •The consequences of a cybersecurity breach could be severe. Breaches resulting in leakage of our Company’s and/or our customers' confidential commercial and/or personal information may result in irreparable damage to our reputation and brand. Moreover, leakage of sensitive personal customer information could, in some cases, result in a threat to personal safety, as well as legal and/or regulatory liability; •Perpetrators are adopting more sophisticated technologies (e.g., AI) in their attempts to breach our defensive security measures; and •While encrypted internet traffic protects private information, it inadvertently hampers cyber protection efforts. Perpetrators could abuse encrypted communication tools and use them in their efforts to breach our systems, with less risk of such efforts being discovered by cybersecurity measures. Our Cybersecurity Operations Group (CSOG) is responsible for managing cyber threats and attacks. While the Company has been able to contain the effects of past cybersecurity attacks on its network and system performance, and such cybersecurity attacks did not have any material financial, legal, reputational or regulatory repercussions for the Company, there is no assurance that we will be able to successfully safeguard our systems against all cyber attacks, particularly as cyber attacks have become more sophisticated and prevalent. Any successful attack on our infrastructure could result in legal and/or regulatory liabilities, disruptions to our business operations, damage to our reputation, and financial losses. See Item 16K. "CyberSecurity" for a detailed discussion of our cybersecurity measures. Climate change could increase the likelihood of natural disasters and environmental legislation and regulations, which may damage our infrastructure and hinder our operations, and also spur the Philippine Government to introduce new regulations that result in higher compliance costs. Climate change poses infrastructural and regulatory risks for telecommunications operators like us. Climate change may exacerbate the severity and frequency of natural disasters, such as typhoons, flooding and earthquakes. The occurrence of such natural disasters increases the likelihood of damage to our infrastructure and failure of our wired and wireless networks. Should severe natural disasters occur in quick succession, we may not have sufficient resources to repair and restore our infrastructure in a timely and cost-effective manner. Natural disasters could also affect and disrupt our supply chain, resulting in delays in the delivery of our supplies, and further hampering efforts to repair and restore our infrastructure. The cost of restoring and/or repair damaged infrastructure and any failure of our networks could have a material adverse impact on our operations, financial performance, reputation and prospects. Climate change and resulting natural disasters may also affect certain communities’ livelihoods and adversely impact our customers' ability to afford our services. The Philippine Government could introduce new and more stringent environmental legislation and regulations. The KP Act and its IRR impose specific obligations on data transmission providers during natural disasters and emergencies. During such times, we are required to design and maintain infrastructure in accordance with nationally and internationally accepted resiliency standards, ensure the prompt restoration of services, and provide temporary shared-access data services where feasible. The IRR also mandates strict outage reporting, including immediate notification to regulators for service interruptions caused by natural events such as typhoons, floods, earthquakes, or cable cuts. Failure to comply with these requirements may subject us to administrative penalties or sanctions, including the suspension or revocation of authorizations. These heightened obligations may increase our operating and capital expenditures as we work to meet strengthened compliance requirements. 15 Table of Contents We are also now subject to expanded sustainability reporting obligations under the Philippine Financial Reporting Standards on Sustainability Disclosures, particularly PFRS S1 and PFRS S2. These standards require entities to disclose material sustainability-related and climate-related risks and opportunities in a manner aligned with global International Sustainability Standards Board (ISSB) expectations. PFRS S2, in particular, introduces extensive climate‑related disclosure requirements covering greenhouse gas emissions, transition risks, physical climate risks, scenario analysis, and the anticipated financial impacts of climate-related events. In addition, Extended Producers Responsibility (EPR) Act (R.A. 11898) requires companies with assets exceeding Php100 million and generating plastic packaging waste to manage the full environmental lifecycle of their products and to recover or remove an equivalent volume of the plastic they introduce into the market. PLDT and Smart have strengthened their commitment to the EPR Act. The Group has engaged PCX Markets Philippines, Inc. as its Producer Responsibility Organization for the implementation of its EPR programs and reporting. Our businesses require substantial capital investment, which we may not be able to finance. Our projects under development and the continued maintenance and improvement of our networks and services, including Smart’s projects, networks, platforms and services, require substantial and sustained capital investment. Our consolidated capital expenditures, net of additions subject to sale and leaseback from tower companies, totaled Php60,336 million, Php78,246 million and Php85,083 million for the years ended December 31, 2025, 2024 and 2023, respectively. In 2026, we will continue to prioritize projects that support the growing demand from our customers, enhance our ability to deliver superior customer experiences, enable our corporate clients to grow their businesses, and respond to changing market preferences and emerging technologies. Adverse changes in global financial markets could limit our ability to access capital or increase the cost of capital needed to fund our business operations. We have obtained and may seek external financing for a portion of our future capital expenditures. There can be no assurance that financing for new projects will be available on terms acceptable to us, or at all. If we cannot complete our development programs or other capital projects due to our failure to obtain the required financing, our growth, results of operations, financial condition and prospects could be materially and adversely affected. Furthermore, if we are unable to monetize our investments and generate the expected revenues, our cash flows and gearing may be negatively impacted. If we face difficulties in funding our capital expenditures or if our capital expenditure requirements exceed our budget, we may opt to postpone our projects which may limit our ability to serve our customers or require us to negotiate with our vendors on revised payment arrangements. Any cancellations or amendments of agreements with vendors may cause us to incur penalties and adversely affect our business, reputation and share prices. See Item 5. “Operating and Financial Review and Prospects". Our results of operations and our financial position could be materially and adversely affected if the Philippine peso significantly fluctuates against the U.S. dollar. A substantial portion of our capital expenditures, a portion of our indebtedness and related interest expense and a portion of our operating expenses are denominated in U.S. dollars and other foreign currencies, whereas most of our revenues are denominated in Philippine pesos, with 15% of revenues denominated in U. S. dollars for the year ended December 31, 2025. Of our total consolidated debts, approximately 13% was denominated in U.S. dollars as at December 31, 2025. A depreciation of the Philippine peso against the U.S. dollar would increase the amount of our U.S. dollar-denominated debt obligations, capital expenditures, and operating and interest expenses in Philippine peso terms. In the event that the Philippine peso depreciates against the U.S. dollar, we may be unable to generate enough funds through operations and other means to offset the resulting increase in our obligations in Philippine peso terms. Moreover, a depreciation of the Philippine peso against the U.S. dollar may result in our recognition of significant foreign exchange losses, which could materially and adversely affect our results of operations. A depreciation of the Philippine peso could also cause us to be non-compliant with the financial covenants imposed on us by our lenders under certain loan agreements and other indebtedness. Further, fluctuations in the Philippine peso value and of interest rates impact the mark-to-market gains/losses of certain of our financial debt instruments, which were designated as non-hedged items. While we have entered into hedging arrangements to hedge our exposure to foreign exchange fluctuations, such arrangements may not adequately protect us against a peso depreciation. The Philippine peso may be subject to fluctuations due to a range of factors, including: •political and economic developments affecting the Philippines, including the level of remittances from overseas Filipino workers and movements in the country's balance-of-payments position; •global economic, political and financial conditions; •the volatility of emerging market currencies; 16 Table of Contents •changes in the Philippines' sovereign credit rating or outlook by major credit rating agencies, which may influence investor sentiment, capital flows and corresponding movements in the Philippine peso; •changes in monetary policy by the United States Federal Reserve Bank and/or the BSP, including any adjustments in interest rates or policy guidance; and •higher demand for U.S. dollars by both banks and domestic businesses to service their maturing U.S. dollar obligations or foreign exchange traders including banks covering their short U.S. dollar positions, among others. Our debt instruments contain restrictive covenants which require us to maintain certain financial tests and our indebtedness could impair our ability to fulfill our financial obligations and service our other debt. Our existing debt instruments contain covenants which, among other things, require PLDT to maintain certain financial ratios and other financial tests, calculated on the basis of IFRS Accounting Standards at relevant measurement dates, principally at the end of each quarter period. In addition, PLDT’s bonds contain covenants that limit our ability to take certain actions. Our indebtedness and the requirements and limitations imposed by our debt covenants could have important consequences. For example, we may be required to dedicate a substantial portion of our cash flow to payments on our indebtedness, which could reduce the availability of our cash flow to fund working capital, capital expenditures and other general corporate requirements. The principal factors that could negatively affect our ability to comply with these financial ratio covenants and other financial tests are the poor operating performance of PLDT and its subsidiaries, the depreciation of the Philippine peso relative to the U.S. dollar, the impairment or similar charges in respect of investments or other long-lived assets that may be recognized by PLDT and its subsidiaries, and increases in our interest expense. Interest expense may increase as a result of various factors including the issuance of new debt, the refinancing of lower cost indebtedness by higher cost indebtedness, the depreciation of the Philippine peso relative to the U.S. dollar, the lowering of PLDT’s credit ratings or the credit ratings of the Philippines, the increase in reference interest rates, and general market conditions. If we are unable to meet our debt service obligations or comply with our debt covenants, we may need to restructure or refinance our indebtedness, seek additional equity capital or sell assets. An inability to implement these measures successfully could result in a declaration of default and an acceleration of maturities of some or all of our indebtedness, which could have a material adverse effect on our business, results of operations and financial condition. Our subsidiaries could be limited in their ability to pay dividends to us due to internal cash requirements and their creditors having superior claims over their assets and cash flows, which could materially and adversely affect our financial condition. A significant part of our total revenues and cash flows from operating activities are derived from our subsidiaries, particularly Smart. Smart has significant internal cash requirements for debt service, capital expenditures and operating expenses and as a result, may be financially unable to pay any dividends to PLDT. Although Smart has been making dividend payments to PLDT regularly since December 2002, there can be no assurance that PLDT will continue to receive these dividends or other distributions, or otherwise be able to derive liquidity from Smart or any other subsidiary or investee in the future. Creditors of our subsidiaries generally have priority claims over our subsidiaries’ assets and cash flows. We and our creditors will effectively be subordinated to the existing and future indebtedness and other liabilities, including trade payables, of our subsidiaries, except that we may be recognized as a creditor with respect to loans we have made to subsidiaries. If we are recognized as a creditor of a subsidiary, our claim will still be subordinated to any indebtedness secured by assets of the subsidiary and any indebtedness of the subsidiary otherwise deemed superior to the indebtedness we hold. We may have difficulty meeting our debt payment obligations if we do not continue to receive cash dividends from our subsidiaries and our financial condition could be materially and adversely affected as a result. A significant number of shares of PLDT’s voting stock are held by four shareholders, which may not act in the interests of other shareholders or stakeholders in PLDT. As at December 31, 2025, the First Pacific and its Philippine affiliates (together, the FP Parties), NTT Communications and NTT DOCOMO and the JG Summit Group, collectively, beneficially own 57.19% in PLDT’s outstanding common stock (representing 33.75% of our overall voting stock). Additionally, all of PLDT’s shares of voting preferred stock, which represent 40.98% of PLDT’s total outstanding shares of voting stock as at December 31, 2025, are owned by a single stockholder, BTF Holdings, Inc. (BTFHI). 17 Table of Contents The FP Parties, NTT Communications, NTT DOCOMO, JG Summit Group and/or BTFHI may exercise their respective voting rights over certain decisions and transactions in a manner that could be contrary to the interests of other shareholders or stakeholders in PLDT. See Note 3 – Key Information to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for further discussion. We are unionized and are vulnerable to work stoppages, slowdowns or increased labor costs. As at December 31, 2025, PLDT has three employee unions, representing in the aggregate 7,533 employees, or 53%, of the employees of the PLDT Group. This unionized workforce could result in demands that may increase our operating expenses and adversely affect our profitability. Each of our different employee unions require separate collective bargaining agreements. If PLDT and any of its unions are unable to reach an agreement on the terms of their collective bargaining agreement or if PLDT were to experience widespread employee dissatisfaction, PLDT could be subject to collective bargaining deadlocks, strikes, work slowdowns or stoppages. Any of these events would be disruptive to our operations and could have a material adverse effect on our business. On February 14, 2024, the Supreme Court resolved the consolidated Petitions relating to a Compliance Order from the Department of Labor and Employment (DOLE), in connection with the non-payment of statutorily required monetary benefits, including the 13th month pay by certain PLDT contractors to their employees, as well as the regularization of 7,344 contractor employees. The Decision set aside the Secretary of Labor's orders for PLDT to regularize the 7,344 workers of its contractors, except those workers performing installation, repair and maintenance services, whose regularization is subject to a remand of proceedings before the Regional Director of the DOLE. PLDT filed a Motion for Partial Reconsideration on April 4, 2024, and received MKP’s separate motion on April 16, 2024. The Supreme Court, First Division, in its Resolution dated November 5, 2025, which was received by counsel on February 24, 2026, resolved to deny with finality the motions for partial reconsideration filed by PLDT and MKP and held that no further pleadings, motions, letters, or other communications will be entertained. Accordingly, the Decision of the Supreme Court to remand the case stands. See Item 8. “Financial Information – Legal Proceedings” and Note 26 – Provisions and Contingencies to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for further discussion. We cannot guarantee that PLDT or its subsidiaries will not be subject to similar proceedings or other labor-related regulatory activities, the results of which may have an adverse reputational and/or financial impact. While we believe that PLDT has a strong legal position in its pending labor cases, we note that labor tribunals are mandated to resolve cases in favor of employees in the case of any doubt. The loss of key personnel or the failure to attract and retain highly qualified personnel could compromise our ability to effectively manage our business and pursue our growth strategy. Our future performance depends on our ability to attract and retain highly qualified key technical, marketing, sales, and management personnel. The loss of key employees could result in significant disruptions to our business, and the integration of replacement personnel could be costly and time consuming, cause additional disruptions to our business and be unsuccessful. We cannot guarantee the continued employment of any of the members of our senior leadership team, who may depart our Company for any number of reasons, such as other business opportunities, differing views on our strategic direction or other personal reasons. Any inability to attract, retain or motivate our personnel could have a material adverse effect on our results of operations and prospects. Adverse results of any pending or future litigation, internal or external investigations and/or disputes may impact PLDT’s cash flows, results of operations and financial condition. We are currently involved in various legal proceedings. Our estimate of the probable costs for the resolution of these claims have been developed in consultation with our counsel and is based upon our analysis of potential results. See Item 8. “Financial Information – Legal Proceedings” and Note 26 – Provisions and Contingencies to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for further discussion. While PLDT believes that the positions it has taken in these cases have strong legal bases, the final outcome of these cases may prove to be different from its expectations. In addition, we cannot assure you that PLDT will not be involved in future litigation or other disputes, the results of which may materially and adversely impact its business and financial conditions. We have and may continue to incur significant expenses defending such suits or government charges and may be required to pay amounts or otherwise change our operations in ways that could materially adversely affect our operations or financial results. 18 Table of Contents Our financial condition and operating results will be impaired if we experience high fraud rates related to device financing, credit cards, dealers, or subscriptions. Our operating costs could increase substantially as a result of fraud, including those arising from device financing, customer credit card, subscription or dealer fraud. If our fraud detection strategies and processes are not successful in detecting and controlling fraud, whether directly or by way of the systems, processes, and operations of third parties such as customers, national retailers, dealers, and others, the resulting loss of revenue or increased expenses could have a material adverse effect on our financial condition and operating results. Escalation of geopolitical tensions in the Middle East, including the Iran regional conflict, could disrupt global energy markets, supply chains, and financial conditions, which may indirectly adversely affect our business, financial condition, and results of operations. Ongoing geopolitical tensions in the Middle East, including the Iran regional conflict, present risks to global economic stability. Any escalation of hostilities could disrupt international energy markets, shipping routes, and supply chains, leading to volatility in fuel prices, inflationary pressures, and tighter global financial conditions. Such developments may adversely affect foreign exchange rates, interest rates, and capital markets, and could reduce consumer and business spending in the Philippines. Although our operations are primarily domestic, we rely on global supply chains for network equipment, technology, fuel, and other critical inputs. Disruptions arising from geopolitical instability, including sanctions, trade restrictions, or logistical constraints, could increase our operating and capital expenditures, delay network deployments or maintenance activities, and impact service delivery. In addition, heightened global risk aversion may increase borrowing costs or limit access to financing. Any of these developments could have a material adverse effect on our business, financial condition, results of operations, and cash flows. There can be no assurance that the Iran regional conflict or related geopolitical tensions will not intensify further. RISKS RELATING TO THE PHILIPPINES Political and social instability in the Philippines may have a negative effect on the general economic conditions in the Philippines which could have a material adverse impact on our results of operations and financial condition. The Philippines has, from time to time, experienced episodes of political uncertainty and unrest, including recent public and political protests arising from alleged misconduct involving the current and prior administrations, as well as ongoing legislative and institutional controversies. Over the past two decades, the Philippines has also faced hearings and investigations into graft and corruption involving senior government officials, impeachment proceedings against two former presidents and a chief justice of the Supreme Court, the nullification of the appointment of another chief justice, allegations of electoral fraud, and instances of extra‑judicial killings. There can be no assurance that acts of election-related or other political violence will not occur in the future, and any such events could negatively impact the Philippine economy. We may be affected by political and social developments in the Philippines and changes in the political leadership and/or government policies in the Philippines. Any major deviation from the policies of the previous administration or fundamental change of direction, including a change in the form of government, may lead to an increase in political or social uncertainty and instability. Such political or regulatory changes may include (but are not limited to) the introduction of new laws and regulations that could impact our business. We cannot assure you that the political environment in the Philippines will be stable or that the current or future administration will adopt economic policies that are conducive to sustained economic growth or which do not materially and adversely impact the current regulatory environment for the telecommunications and other companies. An unstable political or social environment in the Philippines could negatively affect the general economic conditions and business environment in the Philippines which, in turn, could have a material and adverse impact on our business, financial position and financial performance. Natural disasters, terrorist acts or acts of war could cause damage to our infrastructure and/or result in significant disruptions to our operations and financial condition. Our business operations are subject to interruption by natural disasters such as flooding, typhoons, pandemics and epidemics, terrorist or other hostile acts, and other events beyond our control. The Philippines is particularly susceptible to natural hazards, including tropical cyclones, earthquakes and volcanic risks. Any of the aforementioned events could cause significant damage to our infrastructure upon which our business operations rely, resulting in degradation or disruption of service to our customers. While we maintain insurance coverage for most of these events, the potential impact of damage or loss of assets to our financial condition as well as liabilities associated with these events could exceed the insurance coverage we maintain. Our system redundancy may be ineffective or inadequate, and our disaster recovery planning may be insufficient for all eventualities. These events could also damage the infrastructure of the suppliers that provide us with the equipment and services that we need to operate our business and provide products to our customers. A natural disaster or other event causing significant physical damage 19 Table of Contents could cause us to experience substantial losses resulting in significant recovery time and additional expenditures to resume operations. In addition, these occurrences could result in lost revenues from business interruption as well as damage to our reputation. The Philippines has been subject to a number of terrorist attacks over the past decade. The Philippine army has been in conflict with the Abu Sayyaf organization which has been identified as being responsible for kidnapping and terrorist activities in the Philippines, and is also alleged to have ties to the Al-Qaeda terrorist network and, along with certain other organizations, has been identified as being responsible for certain kidnapping incidents and other terrorist activities particularly in the southern part of the Philippines. Furthermore, the Government and the Armed Forces of the Philippines (AFP) have been in conflict with members of several separatist groups seeking greater autonomy, including the Moro Islamic Liberation Front (MILF), the Moro National Liberation Front (MNLF) and the New People’s Army (NPA). There have been numerous bombing incidents in Mindanao and elsewhere in the Philippines, which have resulted in death and injury to the civilian population as well as military and security personnel. An increase in the frequency, severity or geographic reach of these terrorist acts, violent crimes, bombings and similar events could have a material adverse effect on investment and confidence in, and the performance of, the Philippine economy. Any such destabilization could cause interruption to our business and materially and adversely affect our business, financial condition, and results of operations. These continued conflicts between the Government and separatist groups could lead to further injuries or deaths by civilians and members of the AFP, which could destabilize parts of the Philippines and adversely affect the Philippine economy. There can be no assurance that the Philippines will not be subject to further acts of terrorism or violent crimes in the future, which could have a material adverse effect on our business, financial condition, and results of operations. Territorial disputes with China and a number of Southeast Asian countries may disrupt the Philippine economy and business environment. The Philippines, China and several Southeast Asian nations have been engaged in a series of longstanding territorial disputes over certain areas in the West Philippine Sea, also known as the South China Sea. The Philippines maintains that its claim over the disputed territories is supported by recognized principles of international law consistent with the United Nations Convention on the Law of the Sea (UNCLOS). Over the years, tensions have periodically risen in disputed features such as the Scarborough Shoal and other areas within the Philippine exclusive economic zone, with maritime incidents, diplomatic protests, and overlapping patrols contributing to regional uncertainty. These developments have the potential to affect trade flows, investment sentiment, and bilateral relations. In addition, heightened tensions in the Taiwan Strait have emerged as a broader regional geopolitical risk. Given the Philippines’ geographic proximity to Taiwan and its strategic role in regional security dynamics, any escalation of cross-strait tensions – whether involving military activity, blockades, or disruptions to shipping lanes – could affect regional stability, trade routes, labor mobility, supply chains, and investor confidence. Such developments could indirectly impact the Philippine economy and may also disrupt the business environment in ways that affect our operations. Should territorial disputes between the Philippines and other countries in the region continue or escalate further, the Philippines may experience disruptions across key sectors. These include potential impacts on the supply and prices of energy, food and other critical commodities; delays in the delivery of equipment and materials sourced from the affected routes; and volatility in capital markets, foreign-exchange conditions, and investment activity. Heightened geopolitical tensions could also give rise to more restrictive regulatory or governmental actions or reciprocal trade measures, particularly in the context of disputes involving China. Any such escalation may materially and adversely affect the Philippine economy and, in turn, our business, financial condition, and results of operations. There can be no assurance that these regional disputes or tensions will not intensify in the future. If foreign exchange controls were to be imposed, our ability to meet our foreign currency payment obligations could be adversely affected. In general, Philippine residents may freely dispose of their foreign exchange receipts and foreign exchange may be freely sold and purchased outside the Philippine banking system. However, the Monetary Board of the BSP has statutory authority, with the approval of the President of the Philippines, during a foreign exchange crisis or in times of national emergency, to: 1.suspend temporarily or restrict sales of foreign exchange; 2.require licensing of foreign exchange transactions; or 3.require the delivery of foreign exchange to the BSP or its designee banks for the issuance and guarantee of foreign currency-denominated borrowings. 20 Table of Contents The Philippine Government has, in the past, instituted restrictions on the conversion of the Philippine peso into foreign currencies and the use of foreign exchange received by Philippine companies to pay foreign currency-denominated obligations. We cannot assure you that foreign exchange controls will not be imposed in the future. If imposed, these restrictions could materially and adversely affect our ability to obtain foreign currency to service our foreign currency obligations. The credit ratings of the Philippines may restrict the access to capital of Philippine companies, including PLDT. Historically, the Philippines’ sovereign debt has been rated non-investment grade by international credit rating agencies. The Philippines has the following investment grade ratings of Moody’s (Baa2, stable) and S&P Global (BBB, stable). The Philippine Government’s credit ratings directly affect companies domiciled in the Philippines as international credit rating agencies issue credit ratings by reference to that of the sovereign. No assurance can be given that Moody’s, S&P Global, or any other international credit rating agency will not downgrade the credit ratings of the Philippine Government in the future and, therefore, Philippine companies, including PLDT. Any such downgrade could have a material adverse impact on the liquidity in the Philippine financial markets, on the ability of the Philippine Government and Philippine companies, including PLDT, to raise additional financing, and on the interest rates and other commercial terms at which such additional financing is available. Developments outside of the Philippines, including U.S. policies related to global trade and tariffs could adversely affect our business, financial condition and results of operations. The current international political environment, including existing and potential changes to U.S. policies related to global trade and tariffs, have resulted in some uncertainty surrounding the future state of the global economy. Since 2018, the U.S. began to increase or impose tariffs on many products, particularly from China, among other jurisdictions, including, but not limited to, solar panels, steel and aluminum products, consumer electronics, and industrial chemicals. In 2025, President Donald Trump imposed tariffs of at least 10% on goods from a number of countries. In response, the European Union, China and other affected jurisdictions have introduced tariffs on U.S. goods. An escalating trade war may have material adverse effects on the power industry and our business may be impacted by these tariffs. Any further expansion in the types or levels of tariffs implemented has the potential to negatively impact our business, financial condition and results of operations. Additionally, there is a risk that the U.S. tariffs on imports are met with tariffs on U.S. produced exports and that a broader trade conflict could ensue, which has the potential to significantly impact global trade and economic conditions. Potential costs and any attendant impact on pricing arising from these tariffs and any further expansion in the types or levels of tariffs implemented could adversely affect our business, financial condition and results of operations. While there are ongoing discussions between the U.S. and China regarding tariffs, there is no certainty as to the timing and scale of reduction in tariffs, if any, and the overall impact on global markets. Thus, economic disruption in other countries, even in countries in which we do not currently conduct business or have operations, could also adversely affect our businesses and results.

A. Historical Background and Development PLDT was incorporated in the Philippines under the old Corporation Law of the Philippines (Act 1459, as amended) on November 28, 1928 as Philippine Long Distance Telephone Company, following the merger of four telephone companies under common U.S. ownership. In July 2016, PLDT changed its name to PLDT Inc. Pursuant to Section 11 of the Revised Corporation Code, which states that corporations shall have perpetual existence unless the corporation elects to retain the specific corporate term indicated in its Articles of Incorporation, PLDT has a perpetual corporate term. PLDT’s original franchise was granted in 1928 and was last amended in 1991, extending its term until 2028 and broadening its franchise to permit it to provide virtually every type of telecommunications service. PLDT’s franchise covers the business of providing basic and enhanced telecommunications services in and between the provinces, cities and municipalities in the Philippines and between the Philippines and other countries and territories including mobile, wired or wireless telecommunications systems, fiber optics, multi-channel transmission distribution systems, VAS (including, but not limited to, the transmission of voice, data, audio and video), information services bureau and all other telecommunications systems technologies available. Our subsidiaries, including Smart, SBI and DMPI, also maintain their own franchises with a different range of services and periods of legal effectiveness for their licenses. Our principal executive offices are located at the Ramon Cojuangco Building, Makati Avenue, Makati City, Philippines and our telephone number is +(632) 8250-0254. Investors should submit any inquiries to the address and telephone number of our principal executive offices. Our website address is www.pldt.com. The information contained on, or accessible through, our website is not incorporated by reference into this Annual Report. The SEC maintains an internet site at https://www.sec.gov that contains reports, proxy and information 21 Table of Contents statements, and other information that we file with or furnish electronically to the SEC. For service of process in the United States, PLDT has designated Puglisi & Associates, located at 850 Library Avenue, Suite 204, Newark, Delaware 19711, as its authorized representative. Capital Expenditures and Divestitures See Item 5. “Operating and Financial Review and Prospects – Capital Expenditure Plans” for capital expenditures planned for 2026 and Item 5. “Operating and Financial Review and Prospects – Liquidity and Capital Resources” for information concerning our principal capital expenditures and financing for the years ended December 31, 2023, 2024 and 2025. Between February 17, 2023 and December 21, 2023, PCEV entered into four new subscription agreements with Voyager Finserve Corporation (VFC) and Paymaya Finserve Corporation (PFC, and together with VFC, the Bank HoldCos) to subscribe to a total of 19.6 million Common B shares each at a subscription price of Php0.10 per share, representing 60% voting rights and 1.48% economic interest in the Bank Holdcos. On December 13, 2023, PCEV, along with other existing shareholders KKR, Tencent, SIG, First Pacific Ventures Ltd. and Jumel Holdings, entered into a new subscription agreement with MIH to subscribe to US$80 million Class C2 convertible preferred shares of MIH. On the first closing, PCEV paid a consideration of US$28 million or Php1,563 million for 12.3 million MIH class C2 convertible preferred shares, thereby increasing PCEV’s ownership in MIH from 36.63% as at December 31, 2022 to 36.97% as at December 31, 2023. On various dates in 2022 and 2023, Smart and DMPI signed Sale and Purchase Agreements with Edotco Towers, Inc., Edgepoint Towers, Inc., Unity Digital Infrastructure and Frontier Tower Associates Philippines, Inc., or the TowerCos, in connection with the sale of 7,569 telecom towers and related passive telecommunication infrastructure for Php98 billion. As of December 31, 2025, we have completed the sale of a total of 6,815 telecom towers, or 90% of the towers portfolio under sale, for a total consideration of Php88,387 million. For additional details on the sale and leaseback of the telecom towers, see Note 9 – Property and Equipment and Note 10 – Leases to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. On January 5, 2024, PGIH entered into a Share Purchase Agreement for the sale of 227 common shares of Multisys Technologies Corporation (Multisys), representing a 4.99% equity interest, for a total consideration of Php270 million. The sale transaction was completed and fully paid on January 12, 2024. As a result, PGIH retained ownership of 2,080 common shares representing a 45.73% equity interest in Multisys. On March 24, 2024, PLDT invested Php754.5 million in Kayana to serve as a digital entity designed to harness the data assets of the MVP Group of Companies (MVP Group) and provide a platform for a Group-wide digitalization initiative, and further invested an additional Php85.5 million on September 27, 2024, resulting in a total equity interest of 60%. On September 30, 2024, Kayana entered into share subscription agreements with its shareholders, wherein PLDT subscribed to additional common shares valued at Php46.5 million and the remaining shareholders subscribed to additional shares valued at Php523.5 million. As a result, PLDT’s equity ownership in Kayana was reduced to 45%, leading PLDT to account for its remaining interest as an investment in associate. On September 1, 2025, Kayana entered into another share subscription agreement with its shareholders, wherein PLDT subscribed to additional common shares equivalent to Php594 million. PLDT’s equity ownership in Kayana remains at 45%. On April 5, 2024, PCEV paid the subsequent consideration of US$15.3 million or Php857 million for 6.7 million MIH Class C2 convertible preferred shares and received warrants for 2.7 million MIH Class C2 convertible preferred shares valued at Php152 million, resulting in an increase of PCEV’s ownership in MIH from 36.97% to 37.66%. On April 30, 2024, PLDT Inc. acquired 2,491,516 common shares of Radius, representing a 34.9% equity interest, for a total consideration of Php2,116 million. On April 2, 2025, PGIH entered into a Share Purchase Agreement for the purchase of 228 common shares of Multisys, representing a 5.01% interest, for a total consideration of Php257.5 million. The transaction was completed on April 5, 2025. Following this acquisition, PGIH owns 2,308 common shares representing a 50.74% equity interest in Multisys. B. Business Overview OVERVIEW We are one of the leading telecommunications and digital services providers in the Philippines, serving the fixed line, wireless and broadband markets. Through our three principal business segments, Wireless, Fixed Line and Others, we offer a wide range of telecommunications and digital services across our extensive fiber optic backbone and wireless and fixed line networks. As at December 31, 2025, we served 67.8 million users through the provision of mobile, fixed line and data services. 22 Table of Contents Our common shares are listed and traded on the PSE and our ADSs are listed and traded on the NYSE in the United States. Our three business units are as follows: Wireless. Our Wireless business segment focuses on driving the growth of our data services while managing our legacy business of voice and short messaging services (SMS). We generate data revenues across all segments of our wireless business, whether through the access of mobile internet via smartphones, mobile broadband using pocket WiFi or home WiFi using fixed wireless broadband devices. We provide the following mobile telecommunications services through our wireless business: (i) mobile services, (ii) fixed wireless broadband services, and (iii) other services. Fixed Line. We are the leading provider of fixed line telecommunications services throughout the Philippines, servicing retail, corporate and small and medium-sized enterprises (SME) clients. Our Fixed Line business segment offers data, voice, and miscellaneous services. We also offer secure data center, multi-cloud, cyber security, data and AI solutions through ePLDT Inc. and Vitro Inc. (Vitro), our ICT subsidiaries. Others. Our other business consists primarily of our interests in digital platforms and other technologies, including our interests in MIH and Kayana. We had a market capitalization of approximately Php272,230 million, or US$4,631 million, as at December 31, 2025. We had total revenues of Php218,388 million, or U$$3,715 million, and net income attributable to equity holders of PLDT of Php28,662 million, or US$488 million, for the year ended December 31, 2025. STRENGTHS AND STRATEGIES Strengths We believe our business is characterized by the following competitive strengths: •Exposure to Large and Attractive Markets. Our mobile data and home broadband services are well positioned to serve markets with continuing growth potential. As data adoption continues to grow in a market largely comprised of a young, digitally savvy population, combined with widespread smartphone ownership, the increasing utility of data for everyday activities, and with around 73% of our mobile subscribers being active data users as at December 31, 2025, we believe that demand for mobile data will continue to grow meaningfully. Meanwhile, we believe there is still room to grow in the home broadband market. After the opening of the economy and increased mobility after the pandemic lockdowns, PLDT continues to significantly serve the market demand for connectivity and home broadband services which allow our customers to work, study, conduct business and enjoy entertainment. •Superior Integrated Networks. With our extensive fixed and integrated telecommunications networks in the Philippines, we are able to offer a wide array of communications services. As part of our capital expenditure program, we continue to invest in expanding the reach and capability of our transmission and FTTH network and increasing our international bandwidth capacity. We also continue to invest in capacity and coverage of our mobile network to serve the unabated growth in mobile data traffic and provide our customers with faster, more reliable services and a superior data experience. To supplement our current LTE network and to prepare our network for the future, we continue to rollout 5G base stations. Our network architecture and investments also increase the resiliency and robustness of the network to enable minimum disruption to network services. PLDT’s domestic and international fiber optic networks connect to VITRO’s network of data centers which enables the seamless transfer and secured hosting of massive data flowing in and out of the country. •Recognized Brands. PLDT has a strong and diverse portfolio of brands, including PLDT Home, Smart, TNT, and PLDT Enterprise, among others, which are widely recognized brand names in the Philippines. •Diversified Revenue Sources. We have a diverse portfolio of business lines across our wireless and fixed line business segments, serving a wide spectrum of customer segments, including individuals, households and enterprises. Revenue sources of our wireless business include mobile (mobile data, voice, SMS, and inbound roaming and other mobile services), wireless home broadband, and other services. The revenues from data services, particularly mobile data services, have increased steadily over the past several years and account for 89% of the wireless consumer segment revenues as at December 31, 2025. Our fixed line business derives service revenues from consumer data/broadband, with 98% of service revenues in 2025 attributable to fiber, voice (local exchange, international and domestic services) and miscellaneous services. The fixed line business revenues also include contribution from our enterprise business, which mainly comprises corporate data and ICT services such as data center, cloud and cybersecurity solutions which are considered as an emerging growth driver because of the country’s rapid digital adoption. •Innovative Products and Services. We launched consumer products that answer the need for Connectivity, Entertainment, and e-Games such as the Smart App, our customer management app, Smart Live Stream, our video player app which houses the PBA and FIBA. To allow subscribers easy access to healthcare products and services, Smart has partnered with mWell for convenient access to online doctor consultations and other services via the mWell app, the Philippines’ first fully integrated health app. Smart also partnered with Metro Pacific Tollways Corporation to introduce a simpler and easier way of reloading the Easytrip RFID using the country’s first toll top-up via mobile load service. To 23 Table of Contents support businesses in their journey towards digitalization and cloud, PLDT Enterprise offers a fully-managed Software-Defined Wide Area Networking (SD-WAN) solution which enables customers to securely connect their multiple offices and branches and Smart Internet of Things (IoT) and obtain full control, transparency, visibility, and self-management of their Smart IoT SIMs. We also create and launch platforms, services and solutions in the area of digital financial services through our associated companies MIH, Maya Philippines, Inc. and Maya Bank, which was awarded the sixth and last digital banking license in 2021. •Strong and Experienced Management Team and Key Strategic Relationships. Our senior management combines decades of deep expertise in the telecommunications industry with diverse backgrounds in various industries, including banking, utilities, infrastructure and venture capital. We continue to refresh our talent pool with new hires who have either regional experience or digital expertise, among others. In addition, we have important strategic relationships with our institutional investors, namely, First Pacific, NTT DOCOMO and NTT Communications. We believe the technological support, international experience, and management expertise made available to us through these strategic relationships will enable us to enhance our market leadership and provide/cross-sell a wider range of products and services. Strategies The key elements of our business strategy are: •Focus on the customer and improving customer experience. One of the key pillars of PLDT’s strategy is a greater focus on customer-centricity through the delivery of an improved customer experience. The critical enabler of this is a network that serves our customers’ data and communication needs. In addition to investments in our network, we have also invested in platforms that support after-sales customer support, including call center capability, and data analytics. Our capabilities in the latter also allow us to better understand our customers and design products and plans that are tailored to their specific preferences. •Build on Our Strong Positions in the Fixed Line and Wireless Businesses. We continue to leverage on our strong brand equity in the market to help grow and expand our fixed and wireless businesses. In addition, having an expanded on-ground distribution network of retailers, complemented by our store presence nationwide, allows us to reach existing and potential customers. With the growing adoption of e-commerce, we are expanding our distribution network to include digital channels. We will continue to leverage our unique position of being an integrated network operator to further extract operational efficiencies and economies of scale. •Capitalize on Our Strength as a Fully Integrated Telecommunications Service Provider. We are committed to investing in our integrated fixed and wireless networks in the Philippines as we believe this is key to our ability to continue providing a differentiated experience and value proposition to our customers. We will primarily focus on improving our network capacity, coverage and reliability, areas in which we are market leaders, based on third party surveys. We intend to further enhance our leading position through strategic and synergetic investments in the network and IT platforms. We offer a broad range of telecommunications and ICT services. We plan to capitalize on this position to maximize revenue opportunities by cross-selling our products and services, and by developing convergent products that feature the combined benefits of voice and data, broadband, wireless, data center, cloud, managed services, and other products and services, such as our content portfolio which includes videos, streaming services, entertainment, music, shopping channels, and games. In line with the KP Act and its IRR, we will comply with applicable open access and Reference Access Offer requirements as may be prescribed by regulators, while continuing to focus our commercial strategy on differentiated, VAS delivered through service quality, innovation, and customer experience. •Maintain a Strong Financial Position. We are focused on growing profitability by complementing revenue growth with more effective cost management and operating efficiencies. As at December 31, 2025, we have a well spread out debt maturity profile, with 78% of debt maturing after 2028. We are focused on sequentially reducing our capital expenditure investments and capital intensity as we aim to maintain positive free cash flow and a leverage ratio of 2.0x net debt to EBITDA. We also have in place a dividend payout policy of 60% of core telecommunications income and regularly assess the return of capital to investors vis-à-vis the need to invest to grow the business. 24 Table of Contents •Identifying new areas for growth. As the digital space continues to evolve, PLDT continues to identify trends and evaluate business opportunities as possible sources of new growth, whether in the existing telco space or in adjacent businesses such as fintech, data centers, and AI, among others. •Commitment to sustainability. PLDT recognizes that in order to ensure long-term profitability, it must do business responsibly. As such, PLDT is committed to embedding sustainability in the business, and aims to be a leading ESG telecommunications operator in the region. Its ESG ratings have progressively improved, including its inclusion in the S&P Global Sustainability Yearbook for the second consecutive year. It recognizes its responsibility to identify risks and opportunities in the environmental, social and governance space, including the impact of climate change to the business, and implements the appropriate strategies in response. Part of PLDT's sustainability roadmap is a decarbonization roadmap that aims to reduce Scope 1 and 2 greenhouse gas emissions by 40% by 2030 against a 2019 baseline. It has also included sustainability targets in the organizational scorecard, including that of the CEO. OUR BUSINESSES Our business activities are categorized into three business units: Wireless, Fixed Line and Others. We monitor the operating results of each business unit separately for purposes of making decisions about resource allocation and performance assessment. See Note 4 – Operating Segment Information to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Wireless Our wireless business focuses on driving growth in our data services while managing our legacy business of voice and SMS. We generate data revenues across all segments of our wireless business, whether through the access of mobile internet using smartphones, mobile broadband using pocket WiFi or home WiFi using fixed wireless broadband devices. We provide (1) mobile services, (2) fixed wireless broadband services, and (3) other services, through our wireless business, with mobile services contributing 98% of our 2025 wireless service revenues, and fixed wireless broadband and other services contributing the remaining 2% of our 2025 wireless service revenues. Mobile data usage has surged in the past several years and now accounts for 83% of our mobile service revenues. Wireless revenues, gross of intersegment transactions, contributed 47% of our consolidated revenues for the year ended December 31, 2025 as compared to 49% in 2024 and 2023. Our mobile services, which accounted for 98% of our wireless service revenues for the year ended December 31, 2025, are provided through Smart and DMPI with 59,891,520 total subscribers as at December 31, 2025 as compared to 58,989,807 total subscribers as at December 31, 2024, and 57,827,126 total subscribers as at December 31, 2023. Based on corporate public disclosures, our estimated mobile subscriber market share stood at 42%, 45% and 47% as at December 31, 2025, 2024 and 2023, respectively. As at December 31, 2025, approximately 96% of our mobile subscribers were prepaid service subscribers. The predominance of prepaid service reflects one of the distinguishing characteristics of the Philippine mobile market, allowing us to reduce billing and administrative costs, as well as to control credit risk. Our mobile internet revenues, which primarily consist of our mobile data service revenues, increased to Php76,344 million in 2025 from Php75,061 million in 2024 and from Php71,268 million in 2023, primarily due to the increase in video streaming, gaming and social media data usage by our subscribers driven by the enhanced product offerings, marketing promotions and content partnerships. Migration initiatives also resulted in higher numbers of LTE and 5G device and data users. Our mobile internet revenues contributed 96%, 95% and 94% of our mobile data service revenues in 2025, 2024 and 2023, respectively. Mobile data traffic on Smart’s network increased from 4,898 petabytes in 2023 to 5,359 petabytes in 2024 and 5,550 petabytes in 2025, 13% higher compared to 2023. The following table summarizes key measures of our wireless business as at and for the years ended December 31, 2025, 2024 and 2023: December 31, 2025 2024 2023 Systemwide mobile subscriber base 59,891,520 58,989,807 57,827,126 Prepaid 57,534,812 56,731,489 55,667,880 Postpaid 2,356,708 2,258,318 2,159,246 Fixed Wireless Broadband subscriber base 457,290 446,082 439,815 Growth rate of mobile subscribers Prepaid 1 % 2 % (13 %) Postpaid 4 % 5 % 7 % Growth rate of Fixed Wireless Broadband subscribers 3 % 1 % (41 %) 25 Table of Contents (1) Mobile Services We offer prepaid and postpaid mobile communications services all over the country under the brand names Smart and TNT, each of which focuses on the needs of specific market segments. With a continuous and in-depth consumer understanding program, each of our brands commits to providing relevant products that will cater to the communications, entertainment and services requirements of its respective target market segments. Smart launched new products and network capabilities in 2025. Smart upgraded its core network and provisioned the 4G base for Voice over LTE (VoLTE) and enabled Video over LTE (ViLTE). Prepaid Smart Prepaid data, call and text cards are sold in denominations of Php100, Php300 and Php500, while TNT Prepaid cards are sold in denominations of Php50, Php100 and Php300. Our eLoad’s over-the-air reloads, which range from Php10 to Php1,000, are available through the Smart app, Smart and PLDT online stores, e-wallet providers such as Maya, e-commerce platforms such as Lazada and Shopee and via Smart eLoad retailers nationwide. The stored value of a prepaid card and eLoads remain valid for 365 days regardless of the denomination, pursuant to the MC No. 05-12-2017 issued by the NTC and the DICT. Smart also provides open-access data offers with its Giga Power, Magic Data, All Data and Power All services. These data packages provide access to any app or website and are priced from Php50 to Php499. In view of the SIM Registration Act, we recognize a prepaid mobile subscriber as active upon registration of the SIM card. Beginning in the fourth quarter of 2023, we consider a prepaid mobile subscriber as churned if the subscriber does not reload within 180 days after the full usage or expiry of the last reload and does not latch to the network within 180 days. In the fourth quarter of 2025, Smart launched hyper-personalized offers via Customer Value Management and social media channels to upsell users. In 2025, Smart also launched the multi-eSIM which converts any smartphone into an eSIM-capable device and Smart Travel eSIM which enables Smart subscribers to use their eSIMs while abroad. The Smart Prepaid brands also heavily promoted 5G with the 5G Max launch. Postpaid “Smart Infinity” is our premium mobile postpaid brand, priced from Php3,500 to Php8,000. With “Smart Infinity”, customers can enjoy local non-stop surf and uninterrupted local mobile services with the “Smart Infinity Limitless Plan”. This plan comes with a premium mobile device bundled with exclusive lifestyle perks and privileges accessible through a dedicated concierge. Smart Postpaid offers Signature plans with data priority. Smart Signature subscribers receive real-time billing and usage alerts on Smart app and have access to exclusive rewards, events and latest smartphones. Smart also offers enhance postpaid Signature Plans+ priced from Php999 to Php2,499. It provides higher data allocations with Unlimited 5G promo for 12 months and unlimited texts and calls to all networks including landline in the form of small, medium, large and extra-large plans. In 2025, Smart Postpaid added Plan 799 to its portfolio of postpaid plans and launched the Junior Plan which caters to the youth market as their first postpaid plan. In the same year, Smart Postpaid also introduced call forking for Samsung devices. Plans ranging from Php499 to Php599 were also introduced with unlimited texts and calls to all networks including landline. These fixed monthly plans alleviate concerns of unwanted charges. Smart Enterprise Postpaid is a mobile plan comprised of data, voice, and short message services, with a built-in data bill-cap feature that automatically protects the subscriber from unwanted excess charges, with plans priced up to Php2,500. Postpaid plans may be availed with or without a device bundle at a fixed monthly subscription, defined by a standard contract period. Other Mobile Services For international roaming, we offer various data roaming packages such as GigaRoam with up to 100GB for 10 days on popular travel destinations like Japan, South Korea, Thailand, Saudi Arabia, USA and many more. Data roaming plans range from Php150 to Php9,999, and are open to both prepaid and postpaid subscribers. Our SmartBro Home WiFi 4G devices start at Php599 with free unlimited WiFi valid for 30 days and connectivity of up to five devices, while Smart Bro Home WiFi 5G is offered at Php7,995 with 20GB open access data valid for seven days and connectivity of up to 10 devices. 26 Table of Contents (2) Fixed Wireless Broadband Services Prepaid Home WiFi (PHW) PHW is a wireless internet service introduced to address the growing demand for affordable home broadband in the Philippines. It is a plug-and-play device powered by Smart’s network that can simultaneously connect multiple WiFi-capable devices. In mid-2025, PHW launched Big Data which offers large data allocations for sharing with the family at home. In 2025, Smart launched its first postpaid plans for Fixed Wireless. Wireless revenues are driven and influenced by the following key metrics: (i)Growing data users and usages Our active data users reached 43.2 million as at December 31, 2025, while mobile data traffic as at December 31, 2025 increased by 4% from December 31, 2024 to 5,550 petabytes. Data traffic on Smart's 5G network grew in 2025, increasing by 88% as compared to 2024. This growth was driven by aggressive 5G network roll-outs and 5G product offerings. As part of its program to sustain the growing data usages of subscribers and maintain network quality, Smart continues to roll-out new sites in various locations throughout the Philippines. (ii)Strategic brand building campaigns and product innovations Our strategic brand-building campaigns and product innovations include aggressive 5G handset usage offers, and applications. To further stimulate and maximize the customer experience on 5G network, Smart offers various plans bundled with 5G capable handsets. Smart also offers device financing for prepaid devices including Apple devices for Smart Prepaid and TNT. Brand building and customer engagement hit new strides with Smart App, Smart’s mobile app which enables Smart subscribers to manage their accounts and enjoy exclusive offers and special promotions. Other features and integrations also further enhance customers’ digital lifestyle. Fixed Line We believe we are the leading provider of fixed line telecommunications services throughout the Philippines, servicing retail, corporate and small and medium-sized (SME) clients. Our fixed line business group offers (1) data services; (2) voice services; and (3) miscellaneous services. We had 3,689,997 fixed line voice subscribers as at December 31, 2025, a decrease of 21,374, or 1%, from 3,711,371 fixed line subscribers as at December 31, 2024, while our fixed line broadband subscribers increased by 362,142, or 11%, to 3,793,927 as at December 31, 2025 from 3,431,785 as at December 31, 2024. Revenues, gross of intersegment transactions, from our fixed line business were 60%, 58% and 57% of our consolidated revenues for the years ended December 31, 2025, 2024 and 2023, respectively. Domestic voice revenues have been declining largely due to a drop in call volumes as a result of the availability of alternative calling options and over-the-top (OTT) services, as well as subscribers’ shift to mobile services. An increase in our data service revenues in recent years has mitigated such decline to a certain extent. Recognizing the growth potential of data services, we have put considerable emphasis on the development of new data-capable and IP-based networks. Our fixed line network reaches all major cities and municipalities in the Philippines, with a concentration in the greater Metro Manila area. Our network offers extensive connections to our customers with the FTTH and fiber to the building (FTTB) installations. Our nationwide fiber backbone DFON extends to underground inland and submarine cables. It is a fully resilient network spanning the whole archipelago. Our international network is comprised of various regional and transoceanic submarine cable systems in which we have economic interests. We offer postpaid and prepaid fixed line services. Our prepaid fixed line services are intended to be an affordable alternative telephone service for consumers under difficult economic conditions. 27 Table of Contents The following table summarizes key measures of our fixed line services as at and for the years ended December 31, 2025, 2024 and 2023: December 31, 2025 2024 2023 Systemwide fixed line voice subscriber base 3,689,997 3,711,371 3,766,105 Growth rate of fixed line subscribers (1 %) (1 %) (2 %) Number of LEC employees 9,264 9,543 10,035 Number of LEC subscribers per employee 398 389 375 Systemwide broadband subscriber base 3,794,136 3,432,149 3,269,726 Fixed Line broadband 3,793,927 3,431,785 3,268,996 Fixed Wireless Broadband 209 364 730 Growth rate of broadband subscribers 11 % 5 % 1 % Fixed Line broadband 11 % 5 % 1 % Fixed Wireless Broadband (43 %) (50 %) (67 %) (1) Data Services Our data services include broadband, leased lines, Ethernet-based and IP-based services. These services are used for broadband internet and domestic and international private data networking communications. We also offer secure data center, multi-cloud, cyber security, data and AI solutions. Recognizing the growth potential of data services and their importance to our business strategy, we have placed considerable emphasis on these service segments. Our data services segments registered the highest percentage growth in revenues among our fixed line services from 2023 to 2025. (a)Home Broadband Services PLDT Home serves 3.76 million fiber subscribers nationwide as at December 31, 2025. PLDT’s FTTH fixed line network has an extensive transmission and distribution network infrastructure, providing broadband availability to 19.4 million homes passed in 74% of the country’s towns and 91% of total provinces as at December 31, 2025. The number of homes passed refers to the approximate potential number of residences that could avail of broadband connectivity services provided through PLDT facilities. PLDT’s robust FTTH infrastructure enables customers to enjoy symmetrical internet speeds of up to 10 Gbps, supporting bandwidth-intensive digital activities at home with various broadband solutions. In 2025, PLDT Home expanded into a new growth segment with the launch of Fiber Prepaid, addressing strong demand for flexible, prepaid connectivity solutions. PLDT Home also strengthened its postpaid offerings with the introduction of the Fiber Netflix plan, combining unlimited fiber internet, calls and entertainment in a single subscription. Further enhancing its broadband portfolio, PLDT Home integrated premium entertainment content, including Netflix, HBO Max and Cignal, into its high-speed plans. These value-added bundles continue to support PLDT Home's ARPU. PLDT Home also elevated customer experience with the Speed Add-On, allowing subscribers to boost their existing plans to up to 1 Gbps for an additional Php500 per month. In parallel, all PLDT Home fiber plan speeds were boosted to deliver up to twice the previous speeds, providing customers with enhanced value and enriched digital experiences. To further expand Filipinos’ access to reliable connectivity, PLDT Home rolled out its biggest Fiber Fest program in 2025, offering same-day fiber installations and exclusive digital experiences across Luzon, Visayas and Mindanao. Aligned with the PLDT Group’s long-standing commitment to advancing the United Nations Sustainable Development Goals (UN SDG), particularly UN SDG No. 9: Industry, Innovation, and Infrastructure, PLDT Home continues to accelerate fiber rollout in underserved communities. In 2025, the company expanded its fiber network to previously unfiberized barangays in provinces such as Abra, Aklan, Northern Samar and Southern Leyte, helping to bring reliable connectivity to more Filipino households. (i)PLDT Home Life In 2025, PLDT Home Life transformed PLDT Home to offer a more complete “household experience.” Built around three everyday needs, entertainment, security and smart home living, all powered by reliable connectivity, PLDT Home Life allowed customers to layer upgrades onto their Fiber plans. For example, the reliability of data connection was strengthened with PLDT Home Always On, which keeps households connected even when fiber service is disrupted. Entertainment expanded through IPTV and OTT add-ons, giving access to blockbuster films, award-winning series, premium HD/4K streaming quality, and faster access to titles following theatrical release windows, AAA gaming titles through IGV Game Pass, and Fiber plans bundled with top-tier content streaming partners, Netflix and HBO Max. Home security was strengthened through the Eufy portfolio, while smart living initiatives, such as the Smart Home Starter Kit, accelerating connected home adoption. 28 Table of Contents These upgrades enhanced performance and continuity, expanded content choices, and enabled a safer, smarter, and more modern home. More importantly, this direction laid the foundation for VAS to evolve beyond standalone bolt-ons into a curated ecosystem, one that is easier to discover, understand and adopt, supported by a unified customer journey and consolidated billing. Collectively, these initiatives reinforced PLDT Home’s promise of enriching everyday moments at home, with the VAS portfolio as a key driver of customer value, differentiation, and long-term loyalty. (ii)Home Rewards PLDT Home Rewards remained a key driver of customer value in 2025, providing a simple and benefits-led way for subscribers to earn and redeem Crystals for treats, promotions and discounts from partner brands. Members earn Crystals by paying their PLDT Home bills on time and in full, as well as through plan upgrades and add-ons. Under the program’s clear earn structure, every Php50 paid is equivalent to one Crystal, an approach that helps sustain engagement, encourage consistent on-time payments across the subscriber base and reward loyal customers. Customers can redeem Crystals to access exclusive deals and discounts from participating partners. This ensures that Home Rewards continues to deliver practical, day-to-day savings aligned with the needs of PLDT Home families. The program’s value proposition was strengthened by PLDT Home’s fiber-fast and reliable network, ensuring that rewards engagement, whether through billing, upgrades or add-ons, was anchored on a consistently strong at-home experience. This connectivity foundation supported the steady growth of the Home Rewards program and positioned it for continued expansion of partnerships and offers beyond 2025. (iii)Rates for home broadband services Monthly charges for our home fixed broadband services vary depending on bandwidth, speed, market demand and the competitive landscape. (b)Corporate Data and ICT Services PLDT Enterprise is the corporate business arm of the PLDT Group. It provides integrated digital, connectivity, and ICT solutions to enterprises and government institutions in the Philippines and overseas. Combining PLDT and Smart’s network leadership with the specialized capabilities of its operating subsidiaries, ePLDT, VITRO, PLDT Global, and Multisys, PLDT Enterprise offers fixed line and wireless connectivity, data center services, cloud and cybersecurity solutions, and digital platforms that support operational efficiency, service delivery, and digital transformation across multiple industries and sectors. ICT, Cloud, and Data Center Capabilities ePLDT, as the ICT subsidiary of PLDT, provides cloud, cybersecurity, data, and AI solutions to Philippine enterprises and public sector institutions. Its offerings are designed to address regulatory requirements, data security considerations, and varying business needs. ePLDT operates a multi-cloud portfolio which includes the country’s first sovereign cloud, a locally hosted cloud infrastructure designed to ensure that sensitive data remains within Philippine jurisdiction. The portfolio also covers public, private, and hybrid cloud services, IaaS, SaaS, and CCaaS, as well as AI-enabled platforms. These solutions are supported by professional and managed services. Professional services include cloud assessment, migration, optimization, and cybersecurity enhancement. Managed services involve the ongoing operation, monitoring, and maintenance of customer IT environments, allowing clients to focus on their core business activities. 29 Table of Contents ePLDT’s service capabilities are reinforced by strategic partnerships with global technology providers across cloud computing, cybersecurity, and AI. These commitments earned ePLDT industry awards such as Microsoft’s Solutions Partner for Security recognition and Elite Partner status from leading global technology partners. These partnerships enable ePLDT to support a broad range of enterprise and government requirements while maintaining alignment with international technology standards. In addition, in 2025, ePLDT launched Pilipinas AI, described as the country’s first sovereign AI solutions stack. This allows organizations to develop and deploy AI applications using locally hosted infrastructure, addressing data residency, security, and regulatory compliance requirements. VITRO, the PLDT Group’s data center subsidiary, marked its 25th year of operations in 2025. Since establishing the Philippines’ first commercial data center, VITRO has developed a nationwide network of carrier-neutral facilities, allowing multiple telecommunications providers to interconnect within the same data center, improving redundancy and customer choice. A key milestone during the year was the launch of VITRO Santa Rosa, the Philippines’ first AI-ready hyperscale data center. Hyperscale facilities are designed to support large computing loads, including AI-based and data-intensive workloads. VITRO Santa Rosa currently hosts ePLDT’s Pilipinas AI platform and supports enterprise and hyperscaler requirements. As demand for large-scale and AI-driven computing continues to grow, VITRO continues to invest in data center design, operational resilience, and energy-efficient infrastructure to support long-term digital and economic development. Beyond physical infrastructure, the Group continued to invest in workforce development through the VITRO Academy. Since its launch in 2025, the program has trained more than 400 students across three progressive levels focused on data center operations and related skills. From the inaugural graduating cohort, the majority advanced to paid internships, and selected top performers were offered full-time employment at VITRO. This initiative supports the development of local technical talent in a rapidly growing industry. Core Services: Fixed, Wireless, Satellite, and International Connectivity By integrating ICT, cloud, and data center capabilities with its core connectivity solutions, PLDT Enterprise delivers end-to-end fixed-line and wireless services to enterprises of all sizes across the Philippines. Wireless offerings include: •A2P messaging, which refers to business-generated messages sent to individual users; •IoT connectivity for connected devices; enterprise postpaid mobile services; and •network application programming interfaces (APIs) that allow enterprises to integrate telecommunications functions into their digital platforms. In 2025, to strengthen mobile security, PLDT Enterprise introduced SmartSafe SilentAccess, a silent authentication solution that verifies user identity in the background without requiring one-time passwords (OTPs). The service aligns with regulatory guidance from the BSP on enhancing digital security in financial transactions. During the year, PLDT Enterprise became the first Philippine telecommunications provider to receive Open Gateway API certification from the GSMA, a global mobile industry association. Network coverage was further expanded through 5G Fixed Wireless Access, an enterprise-grade solution that delivers high-speed internet to locations where fiber infrastructure is limited or unavailable. Beyond its wireless services, in 2025, PLDT Enterprise also introduced satellite-enabled enterprise connectivity through Starlink, becoming the first telecommunications provider in the Philippines authorized to resell the service for enterprise use. This offering extends high-speed internet access to remote and underserved areas. International connectivity was strengthened through investments in subsea cable systems, including the Asia Direct Cable (ADC), which reached operational and commercial readiness in the first quarter of 2025. ADC enhances regional connectivity and provides low-latency access to our leading VITRO data centers, including VITRO Santa Rosa. As a result of these investments, PLDT’s total international capacity reached approximately 100 terabits per second (Tbps). Domestically, PLDT operates an extensive fiber optic network which supports enterprise and broadband services for small and medium enterprises, enabling business expansion and digital adoption nationwide. 30 Table of Contents PLDT Enterprise also provides managed network services that integrate connectivity, monitoring, and operational management into a single service model. These services cover network design, deployment, ongoing optimization, and performance monitoring across multiple locations. Digital Inclusion Across Enterprise Markets and Public Sector Support To support digital inclusion, PLDT Enterprise partnered with the DICT, with support from the Private Sector Advisory Council (PSAC), to launch the Bayanihan SIM initiative. The program provides connectivity to students, teachers, and households in geographically isolated and disadvantaged areas (GIDAs), enabling access to digital education and essential online services. During the 2025 national elections, PLDT Enterprise supported the command center of the Parish Pastoral Council for Responsible Voting. The support included nationwide connectivity and technology services that enabled real-time coordination, monitoring, and data transmission for the organization’s parallel vote count. In support of government modernization and public safety initiatives, ePLDT led the rollout of Unified e911, a nationwide emergency response system developed in coordination with national government agencies. The platform integrates telecommunications infrastructure with a world class emergency services platform to improve response coordination and coverage. PLDT Enterprise also serves customers across sectors including SMEs, large enterprises, financial institutions, retail organizations, and government agencies. Internationally, PLDT Global continued to support carriers and multinational enterprises with digital and connectivity solutions, while Multisys delivered nationwide systems integration and software-as-a-service platforms supporting both public and private sector clients. With its integrated portfolio of digital infrastructure, connectivity, and ICT services, PLDT Enterprise remains focused on supporting enterprise resilience, regulatory compliance, and sustainable growth. Through continued investment in infrastructure, partnerships, and talent, the Group is positioned to support the evolving digital requirements of businesses and government institutions in the Philippines and selected international markets. Rates for Corporate Data and ICT Services Charges for our corporate data service vary by customer. (2)Voice Services Our voice services are delivered through our (a) local exchange service; (b) international service; and (c) domestic service. (a)Local Exchange Service Our local exchange service, which consists of the basic voice telephony business, is provided primarily through PLDT. We also provide local exchange services through our subsidiaries. Basic monthly charges for the local exchange service varies according to the type of customer (business or residential) and location, with charges for urban customers generally being higher than those for rural/provincial customers. (b)International Service We have been pursuing a number of initiatives to sustain our international service business, including: (i) rationalizing our inbound voice termination rates; (ii) managing unauthorized voice traffic terminating to our network; (iii) partnering with Saudi Telecom Company for inbound international long distance (ILD) traffic management; and (iv) growing international data sales by leveraging PLDT’s sub-sea cable ownership and PLDT Global’s reach. In addition, PLDT Global is enhancing the presence of PLDT in other international markets by providing high quality communications infrastructure and innovative platforms to global carriers, corporate customers and distribution partners, enabling it to achieve its desired connectivity, reach and business relevance. With offices in key markets abroad, PLDT Global also delivers a full range of digital consumer and enterprise solutions that serve the evolving needs of Filipinos overseas and global enterprises. 31 Table of Contents Our rates for outbound international calls are quoted in U.S. dollars and are billed in Philippine pesos. The Philippine peso amounts are determined at the time of billing. We charge a flat rate per minute to retail customers at any time on any day of the week. (c)Domestic Service Our domestic services are provided primarily through PLDT. This service consists of voice services for calls made by our fixed line customers outside of their local service areas within the Philippines and the domestic interconnect access charges by other telecommunications carriers for wireless and fixed line calls carried through PLDT’s backbone network and/or terminating to our fixed line customers. Mobile substitution, OTT voice call alternatives and the widespread availability of free non-voice communications, such as e-mails, SMS, video conferencing applications and social networking sites, have negatively affected our domestic call volumes. Rates for domestic calls traditionally were based on the type of service provided, such as whether the call is operator-assisted or direct-dialed. However, PLDT simplified these rates in recent years for calls originating from and terminating to the PLDT fixed line network and for calls terminating to fixed line networks of other local exchange carriers. PLDT also simplified its rates for calls terminating to mobile subscribers. In addition, PLDT bundles the free PLDT-to-PLDT calls in some promotions and product/service launches to stimulate fixed line usage. (3)Miscellaneous Services Miscellaneous services include the provision of facilities management, rental fees, and other services. We sell and distribute our products and services through the following channels: (a)Distributors and Key Account Partners We sell our fixed line and mobile services primarily through our regional and key account partners who generally have their own direct sales forces and retail networks. We have field sales distribution partners and key account partners for fixed line services, and exclusive regional and provincial distributors and key account partners for wireless services. A number of our trade partners are likewise major distributors of smartphones and devices that are retailed in their own telecommunications outlets. Account managers from our sales force manage the distribution network and regularly update these business partners on upcoming marketing strategies, promotional campaigns and new products. Our distribution network encompasses approximately over one million retailers, a combination of directly served outlets and retailers using e-wallets and loading apps to sell SmartLoad. With the prepaid reloading distribution network extended to corner store and individual retailer levels, Smart’s prepaid service has become even more affordable and accessible to subscribers. (b)Retail Stores Our frontlines enable unique digital experiences through daily customer interaction. We offer enticing products and services based on the customer needs. We also cater to customers’ after-sales requests and inquiries. Our stores accept payment for bills, postpaid and prepaid sales. Satellite branches are partner-owned Smart branded stores operating as auxiliary touchpoints for converged wired and wireless sales, aftersales and bills payment. (c)Enterprise Business PLDT Enterprise, together with its operating subsidiaries, ePLDT, VITRO, PLDT Global, and Multisys, is responsible for the sales and marketing of fixed line, wireless, corporate data, and ICT products and services to corporate partners including large domestic enterprises, SMEs, the public sector, and international customers. (d)Telesales As part of our telesales, we reach out to our subscribers to offer the latest services, solutions and promotions. Our telesales agents, in partnership with different contact center providers, enable new connect application and existing subscribers to avail value-added solutions, upgrade and migrate their fixed line and wireless accounts, as well as recontract their expiring accounts over the phone. All orders are delivered directly to customer’s address for devices and handsets. 32 Table of Contents (e)Online sales Customers can conveniently access our services through our PLDT Home website and Smart Online Store, an end-to-end portal, where they can conduct various online transactions, including selecting fiber broadband or mobile subscription plans, availing of a wide array of the latest 5G and 4G mobile handsets, renewing or upgrading an existing plan, purchasing prepaid SIMs, network devices or Smart Home devices, or subscribing for e-load and various add-on promotions. All orders are delivered directly to the customers’ addresses, while fiber broadband is installed to their respective homes. Smart App is a mobile application which allows users to link and manage multiple prepaid and postpaid accounts. With the Smart App, users can buy load, pay bills, subscribe to promotions, and earn Gigapoints. By offering various marketing promotions and events within the app, the Smart App has gained a lot of traction. Other online channels include My Smart website, Smart Chatbot, and Paywall which allow our mobile subscribers to avail of add-on promotions. For e-Commerce, the PLDT and Smart flagship stores are now available in Lazada, Shopee, Tiktok and NextUpgrade. Our presence in these e-commerce platforms will further enhance the accessibility of our products to customers. Others Our other business consists primarily of our interests in digital platforms and other technologies, including our interests in MIH and Kayana. MIH, Maya Philippines, and Maya Bank MIH is the ultimate parent holding company of Maya Philippines, Inc. (formerly PayMaya Philippines, Inc.). In addition, MIH holds investment in Maya Bank. Maya Philippines is registered with the BSP as an electronic money issuer, remittance and transfer company, operator of payments system, and virtual asset services provider. Maya Bank is one of only six digital banks in the Philippines licensed by the BSP. Together, Maya Philippines and Maya Bank power the platforms under the Maya group, providing the next generation of integrated financial products to both consumers and businesses in the Philippines. Maya continues to scale its consumer and business platforms to grow its ecosystem, expanding its portfolio of fully integrated financial services for its customers. As digital payments and banking adoption accelerate in the country, Maya’s approach enables it to drive financial penetration and reinforce its position as a leading player in the Philippines’ digital financial landscape. In 2025, the Maya group achieved profitability, driven by topline growth, high-engagement savings activity, and disciplined cost management. TECHNOLOGY INFRASTRUCTURE Wireless Network Infrastructure Mobile Our mobile network supports 5G, 4G and other technologies. We continue to expand our LTE capacity, increase our 5G coverage, and roll out more physical sites to widen our coverage in order to sustain the growing demand for our services. We believe our mobile network covers 97% of the population and is present in 97% of the country’s cities and municipalities, as at December 31, 2025. Fixed wireless services are also offered to residential and corporate clients through our high capacity mobile network. This complements our fibered fixed network as our fixed wireless services are able to reach areas that are not currently serviced through wired connections. Fixed Line Network Infrastructure Our fixed line network reaches all major cities and municipalities in the Philippines, with a concentration in the greater Metro Manila area. Our network offers extensive connections to our customers with the FTTH and fiber to the building (FTTB) installations. Our nationwide fiber backbone DFON extends to underground inland and submarine cables. It is a fully resilient network spanning the whole archipelago. Our international network is comprised of various regional and transoceanic submarine cable systems in which we have economic interests. 33 Table of Contents Domestic PLDT’s fixed line infrastructure is comprised of the latest technologies, delivering voice, broadband and ICT services to home and corporate customers. We deliver voice and high-speed broadband to each home through our all-fiber network, FTTH, an IP-based platform. At present, FTTH can deliver 2.5 Gbps and up to 10 Gbps, and we have deployed FTTH in all cities and in the majority of municipalities in the Philippines. This network provides broadband availability to approximately 19.4 million homes passed, as at December 31, 2025. PLDT provides enterprise and ICT services through its Carrier Ethernet network (CEN). PLDT’s CEN is based on Metro Ethernet Forum (MEF) 3.0, the latest standardized, carrier-class service and network. This highly reliable and resilient system provides high capacity and high-speed VPN services for all corporate customers. It supports enterprise requirements such as data storage, headquarter to branch connectivity, headquarter to disaster recovery site connectivity, cloud services and backhaul for mobile/LTE services. PLDT also uses the “Software Defined Wide Area Network” to deliver such enterprise services across different service providers and over the internet in a secured manner. We also have an IP backbone (IPBB) network, composed of high-capacity, high-performance core and edge routers, with capacities of up to 100Gbps per port in key exchanges that provide IP connectivity to the different network elements built for PLDT, Smart and other subsidiaries and affiliates. It serves as a common and highly resilient IP transport platform for all our IP-based services. In 2020, the IPBB underwent a transformation project called the “Transport Network Transformation Project” (TNT Project), which significantly increased the network’s capacity and upgraded its routing technology to the latest technology, including segment routing and software defined network (SDN) technology. All our networks are connected nationwide through PLDT’s nationwide fiber backbone, the DFON. DFON is comprised of transport nodes connected by terrestrial and submarine cable links configured in loops and appendages. The DFON loops provide self-healing and alternative segment route protection for added resiliency against single and multiple fiber breaks along the different segments. The DFON network also connects three of PLDT’s international cable landing stations. Following the implementation of the TNT Project, the DFON network gained added resiliency and network reliability as we implemented an automatic fail capability into the DFON network to automatically transfer traffic to other redundancy links in the event the DFON experiences downtime. The DFON is complemented by a terrestrial microwave backbone network to deliver services to remote areas unreachable by the fixed terrestrial transport network. International PLDT’s international network was designed and built to support IP-based international services, including voice, messaging, international enterprise solutions, and the Internet services of the PLDT Group. The international network also supports in part requirements of the international retail business run by PLDT Global in various locations in Asia, Europe and the United States. For voice services, PLDT operates two IP voice gateways. PLDT’s facilities allow the exchange of traffic with foreign carriers and can reach foreign destinations (including fixed and wireless network destination “breakouts”, or specific areas within a country) worldwide. The Company has international internet gateways to fortify PLDT Group’s infrastructure for internet and IP-based services, as well as connections of our fixed and wireless networks to content and internet services available from, and businesses connected to, the global internet. All these gateways employ high-capacity and high-performance routers. Together with ancillary facilities (such as security against network/service attacks), they provide premium and differentiated internet and/or IP services to all types of customers ranging from ordinary broadband to high bandwidth internet requirements of corporate customers, knowledge processing solution providers, ISPs and even other service providers. PLDT also operates offshore/ forward gateway routers in Hong Kong, Singapore, United States, and Japan to support optimized and direct access to content providers and businesses connected to the internet in Asia, as well as the continental U.S., which we expect to result in faster internet speed. All gateway routers utilize high capacity interface and transmission facilities. To localize international internet content, PLDT employs local transparent caching network, and additionally, a network of content provider/distributor-supplied local caching servers at key locations. With these facilities, high demand content from popular content and content delivery network providers are available locally and are delivered to PLDT customers. PLDT operates the Philippines’ most extensive international submarine cable network. As at December 31, 2025, PLDT maintains and operates three international cable landing stations in La Union and Batangas for international cables coming from the West Philippine Sea, and in Daet in the east for international cables coming from the Pacific Ocean. In May 2023, the NTC issued provisional authority to build new international cable landing stations in Baler, Aurora in the Northeast, which is targeted for completion in 2026, and in Digos, Davao in the Southern coastal borders of the Philippines, which was completed in 2025. These will provide telco carriers new alternative routes which do not traverse the usual West Philippine Sea Waters. 34 Table of Contents In February 2025, ADC went into service and is expected to support new fixed and mobile services requirements. PLDT is also working closely with other Asian carriers and Hyperscalers to build the Apricot Cable. The completion of the Apricot cable in 2028 will further augment PLDT's international capacity for data traffic, particularly to the U.S. and across Asia and the Pacific. PLDT’s international automatic optical transport switching system and carrier ethernet network continues to provide effective redundancy and continuity of service to Hong Kong, Japan, Singapore, and the U.S. Mainland for premium enterprise clients. Additional dedicated submarine cable circuits were provisioned, and capacity of nodes upgraded, to support growing business requirements. INTERCONNECTION AGREEMENTS Since the issuance of Executive Order, or E.O., No. 59 in 1993, which requires the non-discriminatory interconnection of Philippine carriers’ networks, PLDT has entered into bilateral interconnection arrangements with other Philippine fixed line and mobile carriers. See Item 1. “Description of Business – Licenses and Regulations – Regulatory Tariffs” for further discussion. PLDT has direct interconnection agreements with foreign carriers. PLDT also carries international calls terminating to Smart network where it has no direct interconnections. FRANCHISES, LICENSES AND REGULATIONS Franchises The table below provides the expiry dates of franchises for our Company and subsidiaries, renewal of which are subject to the provisions of the KP Act: Company Expiry Dates of Franchises PLDT November 28, 2028 Clarktel(1) June 30, 2024 Smart May 19, 2042 SBI November 11, 2047 DMPI April 1, 2028 CURE May 26, 2026 PDSI January 26, 2026 (1)Clarktel applied for an extension which remains pending with the Congress as at the date of this report. On November 20, 2024, Clarktel was granted a VAS license by the NTC valid until November 2029. However, with the KP Act coming into effect on September 14, 2025, Clarktel no longer requires a legislative franchise. Licenses Pursuant to RA 7925, a franchise holder is required to obtain a CPCN/Provisional Authority (PA) from the National Telecommunications Commission (NTC) to provide specific telecommunications services authorized under its franchise. The NTC, an attached agency of the Department of Information and Communications Technology (DICT) regulates and supervises our business under the provisions of the Public Service Act (RA 11659, as amended), Executive Order (EO) Nos. 59 and 109, and RA 7925. Material Effects of Regulation on our Business In addition to the KP Act, other laws enacted by the Philippine Congress and issuances of certain Philippine Government Agencies regulate the manner in which we conduct our business, including: •Executive Order No. 109, requires operators of international gateway facilities and mobile telephone operators to install a minimum number of local exchange lines. Smart and PCEV were required to install 700,000 and 400,000 rural lines, respectively, and each received a certificate of compliance from the NTC in 1999. •Republic Act No. 11930, otherwise known as the Anti-Online Sexual Abuse or Exploitation of Children (OSAEC) and Anti-Child Sexual Abuse or Exploitation Materials (CSAEM) Act. ISP's are required to develop, establish and install mechanisms or measures designed to prevent, detect, respond or report violations of this Act. •NTC Memorandum Circular No. 5-07-2009, issued on July 23, 2009, amends the mode of billing for voice services from per minute to per pulse billing, with a maximum of 6 seconds per pulse. On December 9, 2009, the NTC issued Show Cause and Cease and Desist Orders against Smart and other providers, alleging non-compliance with the Circular. On appeal, the CA in its December 28, 2010 Decision, reversed and set aside the NTC Orders. This decision was later upheld by the Supreme Court on February 13, 2023, finding that the NTC failed to provide Smart and other providers due process. 35 Table of Contents •NTC Memorandum Order No. 07-07-2011, issued on July 15, 2011, prescribes a formula for computing service reliability and sets the minimum service reliability at 80% for fixed broadband/internet. •NTC Memorandum Circular No. 07-08-2015, issued on August 13, 2015, sets the rules on the measurement of fixed broadband/internet speed. •NTC Memorandum Order No. 10-12-2016, issued on December 13, 2016, sets out the rules for measuring mobile broadband and internet access service, including guidelines for testing mobile broadband and internet speed. •NTC Memorandum Order No. 10-10-2017, issued on October 27, 2017, prescribes the migration of all existing seven-digit telephone numbers to eight-digit telephone numbers for local telephone service within the “02” local exchange area. •Joint Memorandum Circular (JMC) No. 05-12-2017 jointly issued by NTC, DICT and Department of Trade and Industry, (DTI), on December 20, 2017, extends the validity of all prepaid load to one year from the date of the latest top-up. Prepaid loads purchased for promotions and bucket of services with a specific period of use duly approved by the DTI and/or NTC are excluded from the mandatory one-year validity period. •Executive Order No. 56, issued by former President Rodrigo Duterte on May 25, 2018, institutionalized the Emergency 911 Hotline as the nationwide emergency answering point and replaced Patrol 117. •Memorandum No. 2018-055 issued by the National Electrification Administration (NEA) on August 15, 2018, sets the standard pole rental rate of electric cooperatives at Php420 per cable position per pole per annum. •Memorandum Order No. 04, series of 2018 issued by the DICT on December 14, 2018 and NTC Memorandum Circular No 01-05-2019, issued on May 31, 2019, directed PTEs and/or wireless service providers who offer customers mobile phones and devices, free of charge or at a subsidized cost, in exchange for an agreed fixed lock-in period to provide their customers convenient sites, facilities and processes to unlock the mobile phones and devices of customers who wish to change between compatible wireless service providers, provided that such customers must have completed the applicable lock-in periods and have no outstanding obligations under their subscription agreement. •Republic Act No. 11202 or MNP Act and NTC Memorandum Circular No. 03-06-2019 (the IRR of the MNP Act, issued on June 11, 2019), allow qualified customers to retain their mobile numbers when they move from one MSP to another, or change the type of subscription from postpaid to prepaid or vice versa. MNP is completely free of charge. •JMC No. 2019-001, series of 2019 (the IRR of the Ease of Doing Business Act), jointly issued by the Civil Service Commission, (CSC), Anti-Red Tape Authority (ARTA), and DTI on July 17, 2019, directs all agencies which provide Government service to reduce bureaucratic red tape and processing time, and to promote efficiency and simplicity of process. •Rules on the Accelerated Roll-Out of Common Towers, issued by the DICT on May 24, 2019, provides for the speedy roll-out of common towers and/or conversion of common towers including hard-to-access areas. •Department Circular No. 008 issued by the DICT on May 29, 2020, provides for the policy guidelines on the co-location and sharing of passive telecommunication tower infrastructure (PTTIs) for macro cell sites. •Executive Order No. 32 (Streamlining the Permitting Process for the Construction of Telecommunications and Internet Infrastructure) signed by President Ferdinand Marcos, Jr. on July 4, 2023, streamlined the permitting process for the construction of telecommunications and internet infrastructure. Executive Order No. 32 further extends the implementation of streamlined permitting processes and procedures under the Bayanihan to Recover as One Act (RA 11494) and the Joint Memorandum Circulars issued by the Anti Red Tape Authority, et al. which expired in September 2023. On December 1, 2023, ARTA released the signed copy of Executive Order No. 32’s IRR. •RA 11659 or the Amendment to the Public Service Act, which took effect on April 12, 2022, limits the definition of public utilities to the distribution and transmission of electricity, petroleum and petroleum products pipeline transmission systems, water pipeline distribution and wastewater pipeline systems, seaports and public utility vehicles. This law excludes telecommunications from the definition of public utility thereby allowing full foreign ownership in companies engaged in telecommunications. •RA 11934 or the SIM Registration Act took effect on October 28, 2022. Under this law, all end-users are required to register their SIMs with PTEs as a pre-requisite to the activation thereof. On September 18, 2023, the NTC issued Memorandum Order No. 010-09-2023 providing guidelines for PTEs in the conduct of processes to verify submitted information and data by end-users of SIMs under the SIM Registration Act and its IRR. •Memorandum Circular No. 2023-017 issued by the DILG on January 25, 2023, reiterated previous DILG issuance/policy enjoining local officials to exercise their powers to reclaim and clear public roads which are being used for private purposes. Consequently, many PLDT poles, including cables and cabinets, were required to be removed or relocated. •On September 27, 2023, the NTC issued a Memorandum ordering Public Telecommunications Entities to block or deactivate person-to-person text messages with clickable domains, Uniform Resource Locators (URLs), URL shortening services links, Smart Links and/or QR Codes. 36 Table of Contents •NTC Memorandum Circular No. 006-010-2023, issued on October 20, 2023, provides for a Zero Spectrum User Fee (SUF) for the use of radio frequency bands 2400MHz to 2483.5MHz, 5150MHz-5350MH, 5470MHz-5850MHz for wireless connectivity under: (a) short-range devices; (b) wireless data networks; and (c) broadband wireless access. See Item 3. “Key Information – Risk Factors – Risks Relating to Us – Our business is subject to extensive laws and regulations, including regulations in respect of our public ownership, service rates and taxes, as well as antitrust laws. Any changes in such laws and regulations or interpretations thereto, or failure to comply with regulatory changes, could adversely affect our business and prospects.” for further discussion. Regulatory Tariffs Interconnect access charges are paid by one carrier to another for calls originating from a carrier’s network and terminating to another carrier’s network. Pursuant to NTC Memorandum Circular No. 05-07-2018, effective on September 1, 2018, PLDT’s interconnection charges for all calls is uniformly set at Php0.50 per minute. PLDT has continually and actively negotiated with other legitimate Philippine fixed and CMTS carriers for interconnection based on the guidelines issued by the NTC and other authorized government agencies. These carriers include the major fixed and mobile players in the industry with nationwide operations, PAPTELCO and other non-PAPTELCO players, both of which usually operate in selected towns in the countryside. By virtue of RA No. 11202 or the MNP Act, interconnection fees or charges are no longer imposed by MSPs for domestic calls and SMS made by subscribers. Thus, since January 2, 2020, no interconnect fees are charged for mobile domestic calls and SMS. This provision does not cover interconnection fees charged by fixed-line operators. SEASONALITY Our business is not subject to any material seasonal fluctuations. COMPETITION The telecommunications market is competitive. Including us, there are five major local exchange carriers, seven major international gateway facility providers and three major mobile operators in the Philippines. Some new entrants in the Philippine telecommunications market have entered into strategic alliances with foreign telecommunications companies, which provide them with access to technological and funding support, as well as service innovations and marketing strategies. To protect our market position, we need to continually invest in our network infrastructure to comply with regulatory obligations and to ensure that our services remain competitive. We also need to be able to identify market trends and customer preferences for our services to remain relevant. See Item 4. “Information on the Company – Competition” for further discussion. Mobile Services Currently, there are three major mobile operators, namely Smart, Globe and Dito. As at December 31, 2025, mobile market penetration in the Philippines was approximately 125%, based on the number of SIM cards issued. Competition in the mobile telecommunications industry has remained active with greater availability of offers from telecommunications operators including increased data allocations and calls and texts resulting in declining yields. Competition has also increased in the postpaid space with more promotions involving greater handset subsidies. The principal bases of competition are price, including handset prices in the case of postpaid plans, quality of service, network reliability, geographic coverage and attractiveness of packaged services, including video content. In recent years, the prevalence of OTT services, such as social media, instant messaging and internet telephone, also known as VoIP services, has greatly affected our legacy revenues from voice and SMS services. We are also facing growing competition from providers offering services using alternative wireless technologies and IP-based networks, including efforts by the Philippine Government to roll-out its free WiFi services to various municipalities in the country. Data Services In recent years, the market for data services has been the fastest growing segment in the Philippine telecommunications industry. This development has been spurred by the significant growth in demand for consumer and retail broadband internet access, enterprise resource planning applications, customer relationship management, knowledge processing solutions, online gaming and other e-services that drive the need for broadband and internet-protocol based solutions both in the Philippines and abroad. Our major competitors in this area are Globe and Converge ICT Solutions, Inc. The principal bases of competition in the 37 Table of Contents data services market are coverage, price, content, value for money, bundles or free gifts, user experience, and customer service. PLDT remains committed to competing in this segment by leveraging on its overall strategy to focus on customer-centricity, maintain network leadership, broaden its distribution platform and increase its ability to deliver multimedia content. Voice Services Local Exchange Although the growth of the fixed line voice market has been impacted by higher demand for mobile services, we have sustained our leading position in the fixed line market on account of PLDT's extensive fixed line and transmission network nationwide. In most areas, we face one or two competitors. Our principal competitor in the local exchange market, Globe, provides local exchange service through both fixed and fixed wireless landline services. Fixed wireless landline services are delivered using mobile technology to a fixed device in the home with a tariff structure similar to that of a fixed line service such as the charging of monthly service fees. Our major competitor, Globe, offers services in limited areas of Metro Manila such as Makati and Las Piñas, the Visayas region and selected areas of Southern Luzon, such as Cavite and Batangas. International Revenues from this segment of the industry have significantly declined over the years with the advent of: (i) the popularity of alternative and cheaper modes of communication such as e-mail, instant messaging, social-networking (such as Facebook, Twitter and Instagram), including “free services” over the internet (such as Viber, Telegram, Line, Facebook Messenger, Zoom and WhatsApp, and similar services); and (ii) the establishment of VPNs for several corporate entities, which have further heightened competition. With respect to outbound calls from the Philippines the significance of which has also reduced over the years, we generate revenues through our local exchange and mobile businesses, which are the origination points of outbound international calls. We also have introduced a number of marketing initiatives to stimulate growth of outbound call volumes, including tariff reductions and volume discounts for large corporate subscribers. The number of inbound international voice calls into the Philippines continues to be negatively impacted by the popularity of OTT services due to improved internet access and the continued increase of smartphone adoption. One measure to slow down the decline in the remaining ILD traffic is PLDT’s strategic partnership with Saudi Telecom Company. Joint efforts on traffic sales management and anti-fraud programs have resulted in sustained business value for the ILD business. Domestic Our domestic service business has been negatively affected by the widespread availability and growing popularity of alternative economical to free non-voice methods of communication, particularly OTT services, e-mail and social media, resulting in the change in the market’s communications habits as evidenced by the growing number of mobile subscribers in the Philippines. In addition, VAS providers have launched voice services via the internet to their subscribers nationwide. While domestic call volumes have been declining, we have remained the leading provider of domestic service in the Philippines due to our significant subscriber base and ownership of the Philippines’ most extensive transmission network. ENVIRONMENTAL MATTERS Environmental Management and Stewardship Environmental management is a key component to PLDT’s sustainability roadmap and commitment towards responsible business conduct. Beyond regulatory compliance, we strive to continuously embed environmental stewardship principles into our operations, risk management, value creation, governance, and disclosure frameworks. Management Approach The PLDT Board of Directors, through its Governance, Nomination, and Sustainability Committee (GNSC), oversees the Company’s environmental and climate-related management strategies and programs. Additionally, the Board Risk Committee maintains parallel oversight of these matters with respect to the inclusion of climate and nature-related risks into the Company’s top enterprise risks. 38 Table of Contents Various Board-approved PLDT and Smart policies guide our environmental management approach, including our commitments on biodiversity, energy management, and water, as well as our CEO-approved Occupational Safety and Health & Environmental Commitments. These policies recognize the importance of environmental stewardship as a contributor to achieving business goals, as well as strengthening our alignment and compliance with environmental laws and regulations. These also foster alignment of values and commitments with our supply chain and business partners, reinforcing the PLDT Group Supplier Code of Conduct which enjoins suppliers to actively manage their environmental impact and ensure parallel compliance with regulations. To ensure continuous improvement and transparency, we adhere to the ISO 14001:2015 (Environmental Management System) Standards, and align with relevant environmental principles, indicators, and disclosure standards of the United Nations Global Compact, the Philippine Financial Reporting Standards S2 on Climate-related Disclosures, Taskforce on Nature-related Financial Disclosures, and CDP, among others. Operationalizing our commitments, PLDT and Smart Corporate Environment, Health, and Safety (CEHS), Property, Facilities, Asset Resilience Management (PFARM) and Network units implement environmental management processes and mechanisms to assess and manage our environmental impact, as well as ensure regular monitoring of the performance of all facilities, equipment, and generator sets across the country. These teams also create and implement risk mitigation plans for facilities located in or near ecologically protected areas, including reforestation initiatives and stakeholder consultation efforts. In addition, the PLDT Group has also designated Pollution Control Officers (PCOs) assigned to each company facility to reinforce environmental performance review and facilitate reporting on operational progress on a regular basis to the Department of Environment and Natural Resources (DENR), the Laguna Lake Development Authority, and other national and local regulatory bodies. The PCOs monitor compliance with laws and regulations on air, water, and pollution. Across the organization, we conduct various trainings and campaigns for employees to promote awareness and ensure understanding of the impact of workplace operations on the environment and in communities where we operate. To aid in the review and evaluation of our performance, we undertake periodic audits of our environmental management system through trained Internal Auditors and International Register of Certificated Auditors (IRCA)-certified Lead Auditors facilitating the implementation of the Environment, Health, and Safety (EHS) audit program across the different sites. In 2025, PLDT and Smart continued to enforce a Supplier Code of Conduct and complementing sustainability guidelines and EHS manuals. These mandate suppliers to actively manage their environmental impact and comply with applicable environmental laws and regulations as part of their supply chain management processes. CEHS teams successfully renewed relevant ISO certifications, following a surveillance audit conducted by the Group’s independent certifying body BSI Philippines Inc. The audit concluded with zero nonconformity findings, affirming the robustness, consistency, and effective implementation of the integrated Quality, Environmental, and Occupational Health and Safety Management System. This successful renewal builds on the milestones achieved in 2024, when PLDT earned certifications for various international standards, including the ISO 14001:2015 (Environmental Management System). Smart was likewise recommended for these same set of certifications. Opportunities for improvement identified during the audit were proactively addressed to further strengthen system effectiveness, governance, and operational discipline. These actions reinforce the PLDT Group’s culture of continuous improvement and its sustained commitment to high standards of quality, environmental performance, and workplace safety across operations. Beyond our own operations, we work with our supply chain to undertake regular assessments and stakeholder consultations to manage the environmental impact of our facilities and operations. We integrate environmental criteria in the screening performance of our suppliers and hold various engagements to foster alignment of the supply chain with our policies and standards on environmental management. Climate Change The PLDT Group continues to recognize climate change as one of its top enterprise risks. This considers the high-risk profile and vulnerability of the Philippines to the worsening impacts of climate change, including more frequent and severe typhoons and weather disturbances with consequential effects such as flooding. The effects of climate change increase the likelihood of damage to the Group’s physical infrastructure and network equipment, which can consequently disrupt operations and delivery of services. 39 Table of Contents In 2025, we have expanded conduct of a comprehensive analysis to identify the impact of various climate scenarios on our assets and financials. Results guide continuing efforts to integrate climate and nature-related risk mitigation strategies into key aspects of our strategic planning, operational design, resource allocation, employee upskilling, and supply chain management programs. Aside from managing physical impacts, the urgent need to address climate change in the Philippines may lead to the enactment of more stringent laws and regulations, which will further entail necessary investments, resources, and capacity-building efforts for the PLDT Group to remain compliant and competitive. We also continue to support the government in fostering a whole-of-nation approach towards climate action, helping ensure just transition of our key stakeholders and anchoring our climate strategies on human welfare. Operational Resource Efficiency In support of the Philippines' Nationally Determined Contribution under the Paris Agreement and the global ambition to achieve Net Zero by 2050, the PLDT Group developed a decarbonization roadmap that aims to reduce its Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 40% by 2030 against a 2019 baseline. Such target is underpinned by various initiatives that promote energy and operational resource efficiency, as well as the adoption of renewable energy and green technologies across our operations. These measures are also aimed at achieving resource cost-efficiencies and ensuring uninterrupted operations and delivery of services. In line with Republic Act No. 11285 or the Energy Efficiency and Conservation Act, the PLDT Group continues to strengthen its energy efficiency and management initiatives across its network sites and facilities nationwide. We have established dedicated teams and internal experts to manage our energy management performance, including Certified Energy Managers and Certified Energy Auditors. In addition, we have ramped up audits of the energy management performance of our critical network sites and base stations nationwide. These audits evaluate equipment performance, cooling systems, site layouts, and onsite energy practices to identify targeted improvements that enhance energy efficiency and strengthen network reliability. These also serve as capacity-building engagements for our field personnel, reinforcing their ability to apply energy management best practices on the ground. As part of our broader efforts to optimize energy use and advance our decarbonization roadmap, we implement various energy efficiency measures, including the installation of direct current generator sets, solar panels, and photovoltaic cells. These have been designed to enable us to ensure wireless network coverage in remote areas, and reduce our dependence on diesel-fueled generators in cases of power failures and emergency situations. We have also put in place a company-wide mechanism for fuel requests, as well as active tools to validate electricity use and improve resource consumption efficiency. Alongside energy efficiency initiatives, we have also been expanding supply partnerships to further increase the share of renewables in our energy mix, under the Department of Energy’s Green Energy Option Program and the Energy Regulatory Commission’s Retail Aggregation Program. For our fleet, we are advancing a rationalization program which is expected to contribute to reductions in our fuel consumption and GHG emissions. Meanwhile, we also keep track of our water consumption and operationalize water efficiency efforts, recognizing water as a scarce natural resource. These include the use of advanced cooling systems in our data centers and the installation of rainwater catchment systems in key facilities. We also ensure that our wastewater is treated and disposed of in accordance with regulatory requirements, especially for facilities not served by local water utilities. Throughout the year, we also integrate water into our organizational campaigns to promote employee awareness on our consumption and encourage them to contribute to efficiency initiatives. Circularity and Waste Management Circularity and effective waste management are among the key focus areas of the PLDT Group’s environmental management roadmap. With the goal of reducing our overall waste generation, we implement mechanisms continuously to track our waste performance, set targets for programs that minimize waste, capacitate our employees, and leverage innovation and strategic partnerships in support of circularity. To manage solid waste, we have deployed waste segregation mechanisms and refreshed waste bin systems to our facilities nationwide. In parallel, we continuously train our personnel to ensure adherence of each facility with national and local government regulations and waste collection schemes. 40 Table of Contents To manage plastic packaging waste, PLDT and Smart have strengthened commitment to the Extended Producers Responsibility Act (EPR) as registered Obliged Enterprises. In accordance with the law, the Group has engaged PCX Markets Philippines, Inc. as its Producer Responsibility Organization (PRO) for the implementation of its EPR programs and reporting. During the year, we continued to train our employees and enable communities to reduce waste that end up in landfills, particularly through our participation in the X-Trash Challenge of the Philippine Business for Social Progress and Basic Environmental Systems and Technologies. PLDT and Smart employees participated by segregating their waste and exchanging recyclables, such as plastics, paper, and metals for environmental points. Accumulated points were subsequently used to procure grocery packs, which were consequently donated to an indigent community in Quezon City. To promote circular use of network assets and better organize workplaces, we have strengthened our 5S Program and launched “AYOS 5S” in 2025. Under this program, we conducted a full inventory of network assets such as cables, radio equipment, modules, electrical and electronic components, computers, routers, servers, and power racks. Functional and reusable decommissioned network equipment were segregated for redeployment in new rollouts, sold, and repurposed, while non-usable assets were properly retired in accordance with environmental regulations. This initiative not only strengthened waste reduction and circularity practices, but also generated substantial cost savings, highlighting the business value of efficient asset utilization and responsible waste management. To manage our hazardous and electronic waste (e-waste), we have maintained partnerships with various hazardous waste transporters and treaters accredited by the DENR. These covered used lead acid batteries from company vehicles, as well as e-wastes generated within our facilities and own operations. Beyond our organization, we continued to expand our “Be Kind. Recycle.” program to encourage employees, customers, and stakeholder communities to properly dispose and recycling their e-wastes. While PLDT and Smart may not be producers of electronics, we recognize that the delivery of our services contributes to the generation of e-waste. To address this, we have set a target to make proper e-waste disposal and recycling accessible to PLDT and Smart employees, customers, and the public nationwide. Through partnerships with commercial establishments, schools, enterprise clients, and local government units like Baguio City where we continue to support a TSD facility, we have increased roll-out of e-waste collection bins and activated over 200 community partners from June 2023 to December 2025. INTELLECTUAL PROPERTY RIGHTS We do not own any material intellectual property rights apart from our brand names and logos. We are not dependent on patents, licenses or other intellectual property which are material to our business or results of operations, other than licenses to use the software that accompany most of our equipment purchases and licenses for certain contents used in VAS of our wireless business. See Note 14 – Goodwill and Intangible Assets to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. C. Organizational Structure See Exhibit 8. “List of Subsidiaries” for a listing of PLDT’s significant subsidiaries, including name, country of incorporation, proportion of ownership interests and, where different, proportion of voting power held. D. Properties and Equipment As at December 31, 2025, the PLDT Group owns three office buildings located in Makati City and owns and operates fixed line exchanges nationwide. As at December 31, 2025, our principal properties, excluding property under construction, consisted of the following, based on net book values: •45% consisted of central office equipment and network facilities, including IGFs, pure national toll exchanges and combined local and toll exchanges; •40% consisted of cable, wire and mobile facilities, including our DFON, subscriber cable facilities, inter-office trunking and toll cable facilities and mobile facilities; •7% consisted of land and improvements and buildings and improvements, which we acquired to house our telecommunications equipment, personnel, inventory and/or fleet; and •8% consisted of other work equipment. 41 Table of Contents For more information on these properties, see Note 9 – Property and Equipment to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. These properties are located in areas where our subscribers are being served. In our opinion, these properties are in good condition, except for ordinary wear and tear, and are adequately insured. The majority of our connecting lines are above or under public streets and properties owned by others. For example, for many years, the PLDT Group has been using the power pole network of Manila Electric Company (Meralco) in Metro Manila for PLDT’s fixed line aerial cables in this area pursuant to short-term lease agreements with Meralco with typically five-year and more recently one-year terms. The PLDT Group has various lease contracts for periods ranging from one to thirty years covering various items of sites, buildings, leased circuits and poles used in our operations. For more information on the obligations relating to these properties and long-term obligations, see Note 10 – Leases, Note 20 – Interest-Bearing Financial Liabilities and Note 27 – Financial Assets and Liabilities to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. We expect that in 2026, cash from operating activities should enable us to fund our capital expenditures for the continued expansion and upgrading of our network infrastructure. We expect to make additional investments in our core facilities to leverage existing technologies and increase capacity. Our current estimate for consolidated capital expenditures in 2026 will be in the mid-Php50 billion range. See Item 5. “Operating and Financial Review and Prospects – Capital Expenditure Plans” for further discussion on our capital expenditures.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements (and the related notes) as at December 31, 2025 and 2024 and for each of the three years ended December 31, 2025, 2024 and 2023 included elsewhere in this report. This discussion contains forward-looking statements that reflect our current views with respect to future events and our future financial performance. These statements involve risks and uncertainties, and our actual results may differ materially from those anticipated in these forward-looking statements as a result of particular factors such as those set forth under "Forward-Looking Statements" and Item 3. "Key Information – Risk Factors" and elsewhere in this report. Our consolidated financial statements, and the financial information discussed below, have been prepared in accordance with IFRS Accounting Standards. For convenience, certain Philippine peso financial information in the following discussions have been converted to U.S. dollars at the exchange rate at December 31, 2025 of Php58.79 to US$1.00, as quoted through the BAP. A. Operating Results Overview We are one of the leading telecommunications and digital services providers in the Philippines, serving the fixed line, wireless and broadband markets. Through our three principal business segments, Wireless, Fixed Line and Others, we offer a wide range of telecommunications and digital services across our extensive fiber optic backbone and wireless and fixed line networks. See Note 4 – Operating Segment Information to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for further information on each of these segments. Key performance indicators and drivers that our management uses to monitor and direct the operation of our businesses include, among others, the general economic conditions in the Philippines; market trends, such as customer demands, behavior and satisfaction parameters; technological developments; network performance (in terms of speed, coverage and capacity); market share; and profitability. In addition, our results of operations and financial position are affected by fluctuations of the Philippine peso against the U.S. dollar. 42 Table of Contents Key Factors Affecting our Results of Operations The key factors that have affected and that we expect will continue to affect our results of operations are set out below. Competition The telecommunications market is competitive. Including us, there are five major local exchange carriers, seven major international gateway facility providers and three major mobile operators in the Philippines. Some new entrants in the Philippine telecommunications market have entered strategic alliances with foreign telecommunications companies, which provide them with access to technological and funding support, as well as service innovations and marketing strategies. To protect our market position, we need to continually invest in our network infrastructure to comply with regulatory obligations and to ensure that our services remain competitive. We also need to be able to identify market trends and customer preferences for our services to remain relevant. See Item 4. “Information on the Company – Competition” for further discussions. Technology Developments and Capital Expenditures Improvements in technology influence our customers’ demand for services and equipment. For example, demand for fixed line telecommunications services has been affected by continued significant growth in the mobile data services. The increase in broadband adoption has also proven to be a critical factor in facilitating the offering of value-added services to customers and the combination of products made available to customers. In providing data services, we must constantly upgrade our access technology and software, embrace emerging transmission technologies and improve the responsiveness, functionality, coverage and features of our services. In the mobile data business, to provide our subscribers with new and better services, we must enhance our mobile network and extend 5G technology and bandwidth for mobile data transmission. In addition, as new technologies develop, equipment may need to be replaced or upgraded, and network facilities may need to be rebuilt in whole or in part, at substantial cost, to remain competitive. These enhancements and the implementation of new technologies will require increased capital expenditures. Regulations We are significantly affected by laws and regulations, particularly those relating to service rates, taxes, labor and antitrust, and may incur significant capital expenditures to ensure compliance with such laws and regulations. For example, the NTC regulates the rates we are permitted to charge for services that have not yet been deregulated, such as local exchange services. We are also subject to a number of local and national taxes. We are also subject to antitrust and labor laws. We have an on-going petition with the PCC with respect to our acquisition of the telecommunications business of SMC in 2016, as well as an outstanding petition pending resolution by the Philippine Supreme Court with respect to the regularization orders by the DOLE. For more details of the regulations to which we are subject and their impacts on our business, see Item 4. “Information on the Company – Franchises, Licenses and Regulations”. Financial Instruments While a certain percentage of our revenues are either linked to or denominated in U.S. Dollars, a substantial portion of our capital expenditures, a portion of our indebtedness and related interest expense and a portion of our operating expenses are denominated in foreign currencies, mostly in U.S. Dollars. As such, a strengthening or weakening of the Philippine Peso against the U.S. Dollar will decrease or increase in Philippine Peso terms both the principal amount of our foreign currency-denominated debts and the related interest expense, our foreign currency-denominated capital expenditures and operating expenses as well as our U.S. Dollar-linked and U.S. Dollar-denominated revenues. In addition, many of our financial ratios and other financial tests are affected by the movements in the Philippine Peso to U.S. Dollar exchange rate. To manage our foreign exchange risks and to stabilize our cash flows in order to improve investment and cash flow planning, we enter into forward foreign exchange contracts, currency swap contracts, currency option contracts and other hedging products aimed at reducing and/or managing the adverse impact of changes in foreign exchange rates on our operating results and cash flows. We use forward foreign exchange purchase contracts, currency swap contracts and currency option contracts to manage the foreign currency risks associated with our foreign currency-denominated financial liabilities. See Note 27 – Financial Assets and Liabilities – Financial Risk Management Objectives and Policies to the accompanying consolidated financial statements in Item 18. “Financial Statements” for a detailed discussion of our foreign currency exchange risk and hedging instruments. 43 Table of Contents Key Components of Results of Operations Revenues We generate revenues primarily from providing the following telecommunications services: cellular voice, SMS and data services in the wireless business; and local exchange, international and national long distance, data and other network, and information and communications services in the fixed line business. Revenue from contracts with customers for the provision of the aforementioned services comprise service revenue and non-service revenue. Services may be rendered separately or bundled with goods or other services. In each of the years ended December 31, 2025, 2024 and 2023, the majority of our revenues are derived from our operations within the Philippines. Our revenues derived from outside the Philippines consist primarily of revenues from incoming international calls to the Philippines. See Note 2 – Summary of Material Accounting Policies – Revenues from contracts with customers to the accompanying consolidated financial statements in Item 18. “Financial Statements” for a detailed discussion of our revenues. Expenses Our expenses comprise (i) general operating costs, (ii) depreciation and amortization expenses, (iii) cost of devices, accessories and contract-specific services, (iv) asset impairment and (v) interconnection costs. General Operating Costs We incur general operating costs comprising the cost of repairs and maintenance, employee compensation and benefits, fees for professional and other contracted services, selling and promotions, taxes and licenses, insurance and security services, rent, communication, training and travel, and other expenses. Depreciation and Amortization Expenses We incur depreciation and amortization expenses in relation to our property and equipment, lease for our properties and subscriber contract cost to fulfill. Cost of Devices, Accessories and Contract-specific Services Cost of devices and accessories comprise the cost of mobile handsets, phone units and broadband data modems and devices which we purchase for sale to customers. Cost of contract-specific services comprise the costs from third-party vendors that are directly identifiable and distinct to specific customer contracts where we are the principal, such as content, license, and maintenance/warranty costs. Asset Impairment Asset impairment primarily comprises impairment on trade and other receivables, inventories and supplies, contract assets, property and equipment and other non-current assets. Other Income (Expenses) – Net Other income (expenses) – net primarily comprises gains (losses) on derivative financial instruments, gains on sale and leaseback of telecom towers, interest income, equity share in net income (losses) of associates and joint ventures, financing costs, foreign exchange gains (losses), and other miscellaneous income. 44 Table of Contents Results of Operations The following table sets forth a summary of our consolidated statements of operations for the years presented, both in millions and as a percentage of our revenues for the years presented. This information should be read together with our consolidated financial statements and related notes included elsewhere in this Annual Report. The results of operations in any period are not necessarily indicative of our future trends. 2025 % 2024 % 2023 % (amounts in million Php) Revenues from contracts with customers Service Revenues 212,186 97 208,382 96 201,832 96 Non-service Revenues 6,202 3 8,451 4 9,121 4 218,388 100 216,833 100 210,953 100 Expenses General operating costs 75,789 35 78,068 36 81,655 39 Depreciation and amortization 59,487 27 56,228 26 58,662 28 Cost of devices, accessories and contract-specific services 12,784 6 14,011 6 15,092 7 Asset impairment 3,970 2 4,321 2 4,432 2 Interconnection costs 16,010 7 13,718 6 10,418 5 168,040 77 166,346 77 170,259 81 50,348 23 50,487 23 40,694 19 Other Expenses – net (12,658 ) (6 ) (9,943 ) (5 ) (5,984 ) (3 ) Income Before Income Tax from Continuing Operations 37,690 17 40,544 19 34,710 16 Provision for Income Tax 8,821 4 9,601 4 9,170 4 Net Income from Continuing Operations 28,869 13 30,943 14 25,540 12 Net Loss from Discontinued Operations — — — — (41 ) — Net Income 28,869 13 30,943 14 25,499 12 The following table shows the contribution by each of our business segments to our consolidated statement of operations for the years presented. Wireless Fixed Line Others Intersegment and Consolidation Entries Consolidated (amounts in million Php) For the year ended December 31, 2025 Revenues 103,316 130,810 — (15,738 ) 218,388 Expenses 86,583 95,585 7 (14,135 ) 168,040 Other income (expenses) – net (4,587 ) (2,816 ) 546 (5,801 ) (12,658 ) Income (loss) before income tax 12,146 32,409 539 (7,404 ) 37,690 Provision for (benefit from) income tax 2,709 6,810 (29 ) (669 ) 8,821 Net income/Segment profit 9,437 25,599 568 (6,735 ) 28,869 For the year ended December 31, 2024 Revenues 105,734 126,490 — (15,391 ) 216,833 Expenses 86,653 95,357 90 (15,754 ) 166,346 Other income (expenses) – net (5,504 ) 6,370 (988 ) (9,821 ) (9,943 ) Income (loss) before income tax 13,577 37,503 (1,078 ) (9,458 ) 40,544 Provision for (benefit from) income tax 3,086 6,154 (9 ) 370 9,601 Net income (loss)/Segment profit (loss) 10,491 31,349 (1,069 ) (9,828 ) 30,943 For the year ended December 31, 2023 Revenues 104,401 120,734 — (14,182 ) 210,953 Expenses 82,827 102,352 18 (14,938 ) 170,259 Other income (expenses) – net 1,169 10,696 (2,251 ) (15,598 ) (5,984 ) Income (loss) before income tax 22,743 29,078 (2,269 ) (14,842 ) 34,710 Provision for income tax 5,458 3,652 1 59 9,170 Net income (loss)/Segment profit (loss) 17,285 25,426 (2,270 ) (14,901 ) 25,499 Continuing operations 17,285 25,426 (2,270 ) (14,901 ) 25,540 Discontinued operations — — — — (41 ) 45 Table of Contents The following table shows the breakdown of our consolidated revenues by service and non-service revenues for the years ended December 31, 2025, 2024 and 2023: Wireless Fixed Line Intersegment and Consolidation Entries Consolidated (amounts in million Php) For the year ended December 31, 2025 Service Revenues Wireless 97,568 (699 ) 96,869 Mobile 95,619 (646 ) 94,973 Fixed Wireless broadband 1,896 — 1,896 Other services 53 (53 ) — Fixed Line 130,355 (15,038 ) 115,317 Voice(1) 31,226 (1,254 ) 29,972 Data 99,068 (13,784 ) 85,284 Home broadband 53,375 (17 ) 53,358 Corporate data and ICT 45,693 (13,767 ) 31,926 Miscellaneous 61 — 61 Total Service Revenues 97,568 130,355 (15,737 ) 212,186 Non-Service Revenues Sale of devices and accessories 5,748 455 (1 ) 6,202 Total Non-Service Revenues 5,748 455 (1 ) 6,202 Total Revenues 103,316 130,810 (15,738 ) 218,388 For the year ended December 31, 2024 Service Revenues(2) Wireless 97,779 (790 ) 96,989 Mobile 96,246 (738 ) 95,508 Fixed Wireless broadband 1,481 — 1,481 Other services 52 (52 ) — Fixed Line 125,994 (14,601 ) 111,393 Voice(1) 29,660 (1,560 ) 28,100 Data 96,269 (13,041 ) 83,228 Home broadband 51,759 (18 ) 51,741 Corporate data and ICT 44,510 (13,023 ) 31,487 Miscellaneous 65 — 65 Total Service Revenues 97,779 125,994 (15,391 ) 208,382 Non-Service Revenues Sale of devices and accessories 7,955 496 — 8,451 Total Non-Service Revenues 7,955 496 — 8,451 Total Revenues 105,734 126,490 (15,391 ) 216,833 For the year ended December 31, 2023 Service Revenues(2) Wireless 95,677 (683 ) 94,994 Mobile 94,007 (642 ) 93,365 Fixed Wireless broadband 1,629 — 1,629 Other services 41 (41 ) — Fixed Line 120,336 (13,498 ) 106,838 Voice(1) 26,686 (1,526 ) 25,160 Data 93,597 (11,972 ) 81,625 Home broadband 50,876 (24 ) 50,852 Corporate data and ICT 42,721 (11,948 ) 30,773 Miscellaneous 53 — 53 Total Service Revenues 95,677 120,336 (14,181 ) 201,832 Non-Service Revenues Sale of devices and accessories 8,724 398 (1 ) 9,121 Total Non-Service Revenues 8,724 398 (1 ) 9,121 Total Revenues 104,401 120,734 (14,182 ) 210,953 (1) Consolidated voice services revenues include wholesale international voice of Php15,151 million, Php12,772 million and Php9,304 million with corresponding costs of Php14,887 million, Php12,535 million and Php9,258 million for the years ended December 31, 2025, 2024 and 2023, respectively. (2)Certain amounts for the year ended December 31, 2024 and 2023 were reclassified to conform with the current presentation. 46 Table of Contents Comparison of Years Ended December 31, 2025 and 2024 On a Consolidated Basis Revenues We reported consolidated revenues of Php218,388 million in 2025, an increase of Php1,555 million, or 1%, as compared with Php216,833 million in 2024, primarily due to higher consolidated revenues from data and voice services, partially offset by lower consolidated non-service revenues. Our consolidated service revenues of Php212,186 million in 2025, increased by Php3,804 million, or 2%, from Php208,382 million in 2024. Our consolidated non-service revenues of Php6,202 million in 2025, decreased by Php2,249 million, or 27%, from Php8,451 million in 2024. Consolidated service revenues, net of interconnection costs of Php16,010 million, amounted to Php196,176 million in 2025, an increase of Php1,512 million, or 1%, from Php194,664 million in 2024. The following table shows the breakdown of our consolidated revenues by business segment for the years ended December 31, 2025 and 2024: Change 2025 % 2024 % Amount % (amounts in million Php) Wireless 103,316 47 105,734 49 (2,418 ) (2 ) Fixed Line 130,810 60 126,490 58 4,320 3 Inter-segment transactions (15,738 ) (7 ) (15,391 ) (7 ) (347 ) (2 ) Consolidated 218,388 100 216,833 100 1,555 1 Expenses Consolidated expenses increased by Php1,694 million, or 1%, to Php168,040 million in 2025 from Php166,346 million in 2024, primarily due to higher depreciation and amortization, and interconnection costs, partially offset by lower expenses related to general operating costs, cost of devices, accessories and contract-specific services, and asset impairment. The following table shows the breakdown of our consolidated expenses by business segment for the years ended December 31, 2025 and 2024: Change 2025 % 2024 % Amount % (amounts in million Php) Wireless 86,583 51 86,653 52 (70 ) — Fixed Line 95,585 57 95,357 57 228 — Others 7 — 90 — (83 ) (92 ) Inter-segment transactions (14,135 ) (8 ) (15,754 ) (9 ) 1,619 10 Consolidated 168,040 100 166,346 100 1,694 1 Other Income (Expenses) – Net Consolidated other expenses – net amounted to Php12,658 million in 2025, an increase of Php2,715 million, or 27%, from Php9,943 million in 2024, primarily due to the combined effects of the following: (i) higher net financing costs by Php2,668 million; (ii) net losses on derivative financial instruments of Php41 million in 2025 as against net gains on derivative financial instruments of Php1,641 million in 2024; (iii) higher net foreign exchange losses by Php514 million; (iv) lower interest income by Php197 million; (v) lower equity share in net losses by Php562 million; and (vi) higher other miscellaneous income – net by Php1,784 million. 47 Table of Contents The following table shows the breakdown of our consolidated other income (expenses) – net by business segment for the years ended December 31, 2025 and 2024: Change 2025 2024 Amount % (amounts in million Php) Wireless (4,587 ) (5,504 ) 917 17 Fixed Line (2,816 ) 6,370 (9,186 ) (144 ) Others 546 (988 ) 1,534 155 Inter-segment transactions (5,801 ) (9,821 ) 4,020 41 Consolidated (12,658 ) (9,943 ) (2,715 ) (27 ) Net Income Consolidated net income decreased by Php2,074 million, or 7%, to Php28,869 million in 2025 from Php30,943 million in 2024. The decrease was mainly due to the combined effects of the following: (i) higher consolidated other expenses – net by Php2,715 million; (ii) higher consolidated expenses by Php1,694 million; (iii) higher consolidated revenues by Php1,555 million; and (iv) lower provision for income tax by Php780 million. Our consolidated basic and diluted EPS decreased to Php132.38 in 2025 from Php141.80 in 2024. Our weighted average number of outstanding common shares was approximately 216.06 million for each of the years ended December 31, 2025 and 2024. The following table shows the breakdown of our consolidated net income by business segment for the years ended December 31, 2025 and 2024: Change 2025 % 2024 % Amount % (amounts in million Php) Wireless 9,437 33 10,491 34 (1,054 ) (10 ) Fixed Line 25,599 88 31,349 101 (5,750 ) (18 ) Others 568 2 (1,069 ) (3 ) 1,637 153 Inter-segment transactions (6,735 ) (23 ) (9,828 ) (32 ) 3,093 31 Consolidated 28,869 100 30,943 100 (2,074 ) (7 ) On a Business Segment Basis Wireless Revenues We generated revenues of Php103,316 million from our Wireless business segment in 2025, a decrease of Php2,418 million, or 2%, from Php105,734 million in 2024. The following table summarizes our total revenues by service from our Wireless business segment for the years ended December 31, 2025 and 2024: Increase (Decrease) 2025 % 2024 % Amount % (amounts in million Php) Service Revenues: Mobile 95,619 92 96,246 91 (627 ) (1 ) Fixed Wireless broadband 1,896 2 1,481 1 415 28 Other services(1) 53 — 52 — 1 2 Total Wireless Service Revenues 97,568 94 97,779 92 (211 ) — Non-Service Revenues: Sale of devices and accessories 5,748 6 7,955 8 (2,207 ) (28 ) Total Wireless Revenues 103,316 100 105,734 100 (2,418 ) (2 ) (1)Includes facility service fees. Service Revenues Our wireless service revenues decreased by Php211 million to Php97,568 million in 2025 as compared with Php97,779 million in 2024, primarily due to lower revenues from our legacy mobile services (voice and SMS), partially offset by higher revenues from 48 Table of Contents mobile data and fixed wireless broadband services. As a percentage of our total wireless revenues, service revenues accounted for 94% and 92% in 2025 and 2024, respectively. Wireless service revenues, net of interconnection costs, amounted to Php96,527 million in 2025, a decrease of Php281 million from Php96,808 million in 2024. Mobile Services Our mobile service revenues amounted to Php95,619 million in 2025, a decrease of Php627 million, or 1%, from Php96,246 million in 2024. Mobile service revenues accounted for 98% of our wireless service revenues in each of 2025 and 2024. The following table shows the breakdown of our mobile service revenues for the years ended December 31, 2025 and 2024: Increase (Decrease) 2025 % 2024(1) % Amount % (amounts in million Php) Mobile Services: Data 79,604 83 78,971 82 633 1 Voice 8,446 9 9,374 10 (928 ) (10 ) SMS 6,401 7 6,761 7 (360 ) (5 ) Others(2) 1,168 1 1,140 1 28 2 Total 95,619 100 96,246 100 (627 ) (1 ) (1)Certain amounts for the year ended December 31, 2024 were reclassified to conform with the current year presentation. (2)Refers to other non-subscriber-related revenues. Data Services Mobile revenues from our data services, which include mobile internet, mobile broadband and other data services, increased by Php633 million, or 1%, to Php79,604 million in 2025 from Php78,971 million in 2024 due to higher mobile internet revenues, partially offset by lower mobile broadband data revenues. Data services accounted for 83% and 82% of our mobile service revenues for the years ended December 31, 2025 and 2024, respectively. The following table shows the breakdown of our mobile data service revenues for the years ended December 31, 2025 and 2024: Increase (Decrease) 2025 % 2024 % Amount % (amounts in million Php) Data Services: Mobile internet(1) 76,344 96 75,061 95 1,283 2 Mobile broadband 1,677 2 2,255 3 (578 ) (26 ) Other data 1,583 2 1,655 2 (72 ) (4 ) Total 79,604 100 78,971 100 633 1 (1)Includes revenues from web-based services, net of discounts and content provider costs. Mobile Internet Mobile internet service revenues increased by Php1,283 million, or 2%, to Php76,344 million in 2025 from Php75,061 million in 2024, primarily due to our mobile data offerings, such as Power All, Magic Data and Unli 5G offers. Smart continues to drive usage and top-ups via Smart App, the Smart Online Store, digital touchpoints and its retailer network. The increase in data traffic was driven by the 5G network expansion, growth of 5G devices, leading to higher 5G data usage. Smart has also rolled out 5G offers and device financing through partnerships with credit card companies to drive more users on 5G. Smart also launched iPhones on prepaid to drive 5G adoption in the prepaid category. Mobile internet services accounted for 80% and 78% of our mobile service revenues in 2025 and 2024, respectively. Mobile Broadband Mobile broadband revenues generated from the use of pocket WiFi, amounted to Php1,677 million in 2025, a decrease of Php578 million, or 26%, from Php2,255 million in 2024, primarily due to lower demand for pocket WiFi devices. Mobile broadband services accounted for 2% of our mobile service revenues in each of 2025 and 2024. 49 Table of Contents Other Data Revenues from our other data services, which include VAS and domestic leased lines, decreased by Php72 million, or 4%, to Php1,583 million in 2025 from Php1,655 million in 2024. Voice Services Mobile revenues from our voice services, which include all voice traffic, decreased by Php928 million, or 10%, to Php8,446 million in 2025 from Php9,374 million in 2024, due to subscribers’ shift to alternative calling options, digital teleconferencing solutions, and other OTT services. Nevertheless, our core modernization phase 1, which was finished in the fourth quarter of 2025 has enabled better voice services such as VoLTE, Voice over WiFi (VoWiFi) and ViLTE which has improved our voice revenues despite our 3G shutdown. Mobile voice services accounted for 9% and 10% of our mobile service revenues in 2025 and 2024, respectively. SMS Services Mobile revenues from our SMS services, which include all SMS-related services, decreased by Php360 million, or 5%, to Php6,401 million in 2025 from Php6,761 million in 2024, mainly on account of the decline in SMS volumes resulting from the increased adoption of alternative messaging solutions such as OTT messaging, social media and chat applications. Mobile SMS services accounted for 7% of our mobile service revenues in each of 2025 and 2024. Other Mobile Services Mobile revenues from other services increased by Php28 million, or 2%, to Php1,168 million in 2025 from Php1,140 million in 2024 mainly due to higher other subscriber-related revenues. Subscriber Base, ARPU and Churn Rates The following table shows our mobile subscriber base as at December 31, 2025 and 2024: Increase (Decrease) 2025 2024 Amount % Mobile subscriber base(1) Prepaid 57,534,812 56,731,489 803,323 1 Smart(2) 21,713,502 21,759,728 (46,226 ) — TNT 35,821,310 34,971,761 849,549 2 Postpaid 2,356,708 2,258,318 98,390 4 Total 59,891,520 58,989,807 901,713 2 (1)Includes mobile broadband subscribers. (2)Includes KIQ subscribers. In view of the SIM Registration Act, we recognize a prepaid mobile subscriber as active upon registration of the SIM card. We consider a prepaid mobile subscriber as churned if the subscriber does not reload within 180 days after the full usage or expiry of the last reload. The average monthly churn rates for Smart Prepaid subscribers were 2.5% and 2.2% in 2025 and 2024, respectively, while the average monthly churn rates for TNT subscribers were 2.3% and 2.0% in 2025 and 2024, respectively. The average monthly churn rates for Postpaid subscribers were 1.2% and 1.1% in 2025 and 2024, respectively. The following table summarizes our average monthly ARPUs for the years ended December 31, 2025 and 2024: Gross(1) Increase (Decrease) Net(2) Increase (Decrease) 2025 2024 Amount % 2025 2024 Amount % (amounts in Php) Prepaid Smart 132 137 (5 ) (4 )% 119 123 (4 ) (3 )% TNT 112 115 (3 ) (3 )% 102 105 (3 ) (3 )% Postpaid 719 729 (10 ) (1 )% 670 688 (18 ) (3 )% (1)Gross monthly ARPU is calculated by dividing gross mobile service revenues for the year, including interconnection income, but excluding inbound roaming revenues, gross of discounts, and content provider costs, by the average number of subscribers for the period. 50 Table of Contents (2)Net monthly ARPU is calculated by dividing gross mobile service revenues for the year, including interconnection income, but excluding inbound roaming revenues, net of discounts, and content provider costs, by the average number of subscribers for the period. Fixed Wireless Broadband Revenues from our Fixed Wireless Broadband services amounted to Php1,896 million in 2025, an increase of Php415 million, or 28%, from Php1,481 million in 2024. Other Services Revenues from our other services amounted to Php53 million in 2025, an increase of Php1 million, or 2%, from Php52 million in 2024. Non-Service Revenues Our wireless non-service revenues consist of sale of mobile handsets, broadband data routers and devices. Our wireless non-service revenues decreased by Php2,207 million, or 28%, to Php5,748 million in 2025 from Php7,955 million in 2024, primarily due to tighter credit parameters resulting in lower number of mobile handsets issued. Expenses Expenses associated with our Wireless business segment amounted to Php86,583 million in 2025, a decrease of Php70 million from Php86,653 million in 2024. The decrease was attributable to lower cost of devices, accessories and contract-specific services, general operating costs and asset impairment, partially offset by higher expenses related to depreciation and amortization and interconnection costs. As a percentage of our total wireless revenues, expenses associated with our Wireless business segment accounted for 84% and 82% in 2025 and 2024, respectively. The following table summarizes the breakdown of our total wireless-related expenses for the years ended December 31, 2025 and 2024 and the percentage of each expense item in relation to the total: Increase (Decrease) 2025 % 2024 % Amount % (amounts in million Php) Depreciation and amortization 40,560 47 36,483 42 4,077 11 General operating costs 36,637 42 37,813 44 (1,176 ) (3 ) Cost of devices, accessories and cost-specific services 7,693 9 10,480 12 (2,787 ) (27 ) Asset impairment 652 1 906 1 (254 ) (28 ) 85,542 99 85,682 99 (140 ) — Interconnection costs 1,041 1 971 1 70 7 Total 86,583 100 86,653 100 (70 ) — General operating costs decreased by Php1,176 million, or 3%, from 2024 to Php36,637 million in 2025, primarily due to lower expenses related to selling and promotions, compensation and employee benefits, and professional and other contracted services, partially offset by higher expenses related to taxes and licenses, and repairs and maintenance. Depreciation and amortization charges increased by Php4,077 million, or 11%, from 2024 to Php40,560 million in 2025, mainly on account of higher accelerated depreciation recognized in 2025 for the modernization of certain technology equipment, combined with the depreciation of newly capitalized property and equipment, and higher amortization of capitalized leases arising from the sale and leaseback of telecom towers. Cost of devices, accessories and contract-specific services decreased by Php2,787 million, or 27%, from 2024 to Php7,693 million in 2025, primarily due to lower number of units issued for mobile handsets and lower SIM printing costs. Asset impairment decreased by Php254 million, or 28%, from 2024 to Php652 million in 2025, primarily due to lower provision for inventory obsolescence. Interconnection costs increased by Php70 million, or 7%, from 2024 to Php1,041 million in 2025. 51 Table of Contents Other Income (Expenses) – Net The following table summarizes the breakdown of our total wireless-related other income (expenses) – net for the years ended December 31, 2025 and 2024: Change 2025 2024 Amount % (amounts in million Php) Other Income (Expenses) – Net: Interest income 554 698 (144 ) (21 ) Equity share in net earnings (losses) of associates and joint ventures (11 ) — (11 ) (100 ) Foreign exchange gains (losses) – net (12 ) 775 (787 ) (102 ) Gains (losses) on derivative financial instruments – net (27 ) 885 (912 ) (103 ) Financing costs – net (9,941 ) (9,763 ) (178 ) (2 ) Other income – net 4,850 1,901 2,949 155 Total (4,587 ) (5,504 ) 917 17 Our Wireless business segment’s other expenses – net amounted to Php4,587 million in 2025, a decrease of Php917 million, or 17%, from Php5,504 million in 2024, primarily due to the combined effects of the following: (i) net losses on derivative financial instruments of Php27 million in 2025 as against net gains on derivative financial instruments of Php885 million in 2024 mainly due to lower depreciation of the Philippine peso relative to the U.S. dollar in 2025 as compared to 2024; (ii) net foreign exchange losses of Php12 million in 2025 from net foreign exchange gains of Php775 million in 2024 mainly on account of revaluation of net foreign currency-denominated liabilities; (iii) higher net financing costs by Php178 million; (iv) lower interest income by Php144 million; (v) equity share in net losses of associates of Php11 million; and (vi) higher other income – net by Php2,949 million, which includes reversal of excess LTIP accrual. Provision for Income Tax Provision for income tax amounted to Php2,709 million in 2025, a decrease of Php377 million, or 12%, from Php3,086 million in 2024, mainly due to lower net income before tax. Net Income As a result of the foregoing, our Wireless business segment’s net income decreased by Php1,054 million, or 10%, to Php9,437 million in 2025 from Php10,491 million in 2024. Fixed Line Revenues Revenues generated from our Fixed Line business segment amounted to Php130,810 million in 2025, an increase of Php4,320 million, or 3%, from Php126,490 million in 2024. The following table summarizes our total revenues by service from our Fixed Line business segment for the years ended December 31, 2025 and 2024: Increase (Decrease) 2025 % 2024(1) % Amount % (amounts in million Php) Service Revenues: Data 99,068 76 96,269 76 2,799 3 Voice 31,226 24 29,660 24 1,566 5 Miscellaneous 61 — 65 — (4 ) (6 ) Total Fixed Line Service Revenues 130,355 100 125,994 100 4,361 3 Non-Service Revenues: Sale of devices and accessories 455 — 496 — (41 ) (8 ) Total Fixed Line Revenues 130,810 100 126,490 100 4,320 3 (1)Certain amounts for the year ended December 31, 2024 were reclassified to conform with current presentation. 52 Table of Contents Service Revenues Our fixed line service revenues increased by Php4,361 million, or 3%, to Php130,355 million in 2025 from Php125,994 million in 2024, primarily due to higher revenues from our data and voice services. Fixed Line service revenues, net of interconnection costs, amounted to Php114,122 million in 2025, an increase of Php2,447 million, or 2%, from Php111,675 million in 2024. Data Services Our data services, which include Home broadband, corporate data, and ICT, posted revenues of Php99,068 million in 2025, an increase of Php2,799 million, or 3%, from Php96,269 million in 2024, primarily due to higher revenues from Home broadband and ICT services, partially offset by lower revenues from corporate data and leased lines. The percentage contribution of this service segment to our fixed line service revenues accounted for 76% in each of 2025 and 2024. The following table shows information of our data service revenues for the years ended December 31, 2025 and 2024: Increase (Decrease) 2025 % 2024 % Amount % (amounts in million Php) Data service revenues Home broadband 53,375 54 51,759 54 1,616 3 Corporate data and ICT 45,693 46 44,510 46 1,183 3 Total 99,068 100 96,269 100 2,799 3 Home Broadband Home broadband data revenues amounted to Php53,375 million in 2025, an increase of Php1,616 million, or 3%, from Php51,759 million in 2024, mainly driven by the increasing demand for broadband services. Home broadband revenues accounted for 54% of fixed line data service revenues in each of 2025 and 2024. Corporate Data and ICT Corporate data services amounted to Php36,278 million in 2025, a decrease of Php398 million, or 1%, as compared with Php36,676 million in 2024, mainly due to lower revenues from legacy data networking services. Corporate data revenues accounted for 37% and 38% of our total data service revenues in 2025 and 2024, respectively. ICT revenues increased by Php1,581 million, or 20%, to Php9,415 million in 2025 from Php7,834 million in 2024, mainly due to higher revenues from data center, managed IT services, data center, and data and AI solutions. The percentage contribution of this service segment to our total data service revenues accounted for 9% and 8% in 2025 and 2024, respectively. Voice Services Revenues from our voice services increased by Php1,566 million, or 5%, to Php31,226 million in 2025 from Php29,660 million in 2024, primarily due to higher revenues from wholesale international voice of PLDT Global driven by higher traffic volume. Excluding wholesale international voice revenues of Php15,533 million and Php13,224 million in 2025 and 2024, respectively, our voice services decreased by Php743 million, or 5%, to Php15,693 million in 2025 from Php16,436 million in 2024. The percentage contribution of voice service revenues to our fixed line service revenues accounted for 24% in each of 2025 and 2024. Miscellaneous Services Miscellaneous service revenues are derived mostly from rentals and management fees. These service revenues decreased by Php4 million, or 6%, to Php61 million in 2025 from Php65 million in 2024. Non-service Revenues Non-service revenues decreased by Php41 million, or 8%, to Php455 million in 2025 from Php496 million in 2024. 53 Table of Contents Expenses Expenses related to our Fixed Line business segment totaled Php95,585 million in 2025, an increase of Php228 million as compared with Php95,357 million in 2024. The increase was primarily due to higher interconnection costs, and cost of devices, accessories and contract-specific services, partly offset by lower depreciation and amortization, and general operating costs. As a percentage of our total fixed line revenues, expenses associated with our Fixed Line business segment accounted for 73% and 75% in 2025 and 2024, respectively. The following table shows the breakdown of our total fixed line-related expenses for the years ended December 31, 2025 and 2024 and the percentage of each expense item in relation to the total: Increase (Decrease) 2025 % 2024 % Amount % (amounts in million Php) General operating costs 43,867 46 44,850 47 (983 ) (2 ) Depreciation and amortization 26,928 28 29,132 30 (2,204 ) (8 ) Cost of devices, accessories and contract-specific services 5,239 6 3,641 4 1,598 44 Asset impairment 3,318 3 3,415 4 (97 ) (3 ) 79,352 83 81,038 85 (1,686 ) (2 ) Interconnection costs 16,233 17 14,319 15 1,914 13 Total 95,585 100 95,357 100 228 — General operating costs decreased by Php983 million, or 2%, from 2024 to Php43,867 million in 2025, primarily due to lower expenses related to compensation and employee benefits, professional and other contracted services, and communication, training and travel, partially offset by higher expenses related to selling and promotions, rent and repairs and maintenance. Depreciation and amortization charges decreased by Php2,204 million, or 8%, from 2024 to Php26,928 million in 2025, mainly due to lower accelerated depreciation recognized in 2025 for the modernization of certain technology equipment, partially offset by higher amortization of subscriber contract cost to fulfill and capitalized leases. Cost of devices, accessories and contract-specific services increased by Php1,598 million, or 44%, from 2024 to Php5,239 million in 2025, primarily due to higher cost of content and services from third-party vendors. Asset impairment decreased by Php97 million, or 3%, from 2024 to Php3,318 million in 2025. Interconnection costs increased by Php1,914 million, or 13%, from 2024 to Php16,233 million in 2025, primarily due to higher cost of wholesale international voice of PLDT Global driven by higher traffic volume. Excluding cost of wholesale international voice of Php15,269 million and Php12,987 million in 2025 and 2024, respectively, our interconnection costs decreased by Php368 million, or 28%, to Php964 million in 2025 from Php1,332 million in 2024. Other Income (Expenses) – Net The following table summarizes the breakdown of our total fixed line-related other income (expenses) – net for the years ended December 31, 2025 and 2024: Change 2025 2024 Amount % (amounts in million Php) Other Income (Expenses) – Net: Gains on derivative financial instruments – net (14 ) 756 (770 ) (102 ) Interest income 171 230 (59 ) (26 ) Foreign exchange gains (losses) – net (545 ) (819 ) 274 (33 ) Equity share in net losses of associates and joint ventures (924 ) (67 ) (857 ) (1,279 ) Financing costs – net (9,411 ) (7,456 ) (1,955 ) (26 ) Other income – net 7,907 13,726 (5,819 ) (42 ) Total (2,816 ) 6,370 (9,186 ) (144 ) Our Fixed Line business segment’s other expenses – net amounted to Php2,816 million in 2025, a change of Php9,186 million from other income – net of Php6,370 million in 2024, primarily due to the combined effects of the following: (i) lower other income – net by Php5,819 million mainly due to lower dividend income recognized from the subsidiaries of our wireless business segment; (ii) higher net financing costs by Php1,955 million mainly due to higher weighted average outstanding principal amounts, higher interest rates, and lower capitalized interest; (iii) net losses on derivative financial instruments of Php14 million in 2025 as against net gains on derivative financial instruments by Php756 million in 2024 mainly due to lower depreciation of the Philippine peso to the U.S. dollar in 2025 as compared with 2024; (iv) higher equity share in net losses of associates by Php857 54 Table of Contents million mainly from Radius Telecoms (Radius) and Cignal TV; (v) lower interest income by Php59 million; and (vi) lower net foreign exchange losses by Php274 million. Provision for (Benefit from) Income Tax Provision for income tax amounted to Php6,810 million in 2025, an increase of Php656 million, or 11%, from Php6,154 million in 2024, mainly due to higher taxable income. Net Income As a result of the foregoing, our Fixed Line business segment registered a net income of Php25,599 million in 2025, a decrease of Php5,750 million, or 18%, as compared with Php31,349 million in 2024. Others Revenues Revenues generated from our Other business segment amounted to nil for each of the years ended December 31, 2025 and 2024. Expenses Expenses related to our Other business segment decreased by Php83 million to Php7 million in 2025 from Php90 million in 2024. Other Income (Expenses) – Net The following table summarizes the breakdown of other income (expenses) – net for Other business segment for the years ended December 31, 2025 and 2024: Change 2025 2024 Amount % (amounts in million Php) Other Income (Expenses) – Net: Equity share in net gains (losses) of associates and joint ventures 507 (923 ) 1,430 155 Interest income 11 15 (4 ) (27 ) Foreign exchange gains (losses) – net 4 (75 ) 79 105 Other income – net 24 (5 ) 29 580 Total 546 (988 ) 1,534 155 Our Other business segment’s other income – net amounted to Php546 million in 2025, a change of Php1,534 million from other expenses – net of Php988 million in 2024, primarily due to equity share in net income of MIH in 2025 as against equity share in net losses in 2024. Net Loss As a result of the foregoing, our Other business segment registered a net income of Php568 million in 2025, a change of Php1,637 million as against net loss of Php1,069 million in 2024. Comparison of Years Ended December 31, 2024 and 2023 On a Consolidated Basis Revenues We reported consolidated revenues of Php216,833 million in 2024, an increase of Php5,880 million, or 3%, as compared with Php210,953 million in 2023, primarily due to higher consolidated revenues from data, voice and SMS services, partially offset by lower consolidated non-service revenues and fixed wireless broadband service revenues. Our consolidated service revenues of Php208,382 million in 2024, increased by Php6,550 million, or 3%, from Php201,832 million in 2023. Our consolidated non-service revenues of Php8,451 million in 2024, decreased by Php670 million, or 7%, from Php9,121 million in 2023. 55 Table of Contents Consolidated service revenues, net of interconnection costs of Php13,718 million, amounted to Php194,664 million in 2024, an increase of Php3,250 million, or 2%, from Php191,414 million in 2023. The following table shows the breakdown of our consolidated revenues by business segment for the years ended December 31, 2024 and 2023: Change 2024 % 2023 % Amount % (amounts in million Php) Wireless 105,734 49 104,401 50 1,333 1 Fixed Line 126,490 58 120,734 57 5,756 5 Inter-segment transactions (15,391 ) (7 ) (14,182 ) (7 ) (1,209 ) (9 ) Consolidated 216,833 100 210,953 100 5,880 3 Expenses Consolidated expenses decreased by Php3,913 million, or 2%, to Php166,346 million in 2024 from Php170,259 million in 2023, primarily due to lower expenses related to general operating costs, depreciation and amortization, cost of devices, accessories and contract-specific services, and provisions, partially offset by higher interconnection costs and asset impairment. The following table shows the breakdown of our consolidated expenses by business segment for the years ended December 31, 2024 and 2023: Change 2024 % 2023 % Amount % (amounts in million Php) Wireless 86,653 52 82,827 49 3,826 5 Fixed Line 95,357 57 102,352 60 (6,995 ) (7 ) Others 90 — 18 — 72 400 Inter-segment transactions (15,754 ) (9 ) (14,938 ) (9 ) (816 ) (5 ) Consolidated 166,346 100 170,259 100 (3,913 ) (2 ) Other Income (Expenses) – Net Consolidated other expenses – net amounted to Php9,943 million in 2024, an increase of Php3,959 million, or 66%, from Php5,984 million in 2023, primarily due to the combined effects of the following: (i) lower other income – net from our Wireless business segment mainly on account of a lower gain on sale and leaseback of telecom towers, and from our Fixed Line business segment owing mainly to lower dividend income recognized from the subsidiaries of Wireless business segment; (ii) higher net financing costs from our Fixed Line and Wireless business segments; (iii) net foreign exchange losses from our Fixed Line business segment in 2024 as compared with net foreign exchange gains in 2023; (iv) higher net gains on derivative financial instruments from our Fixed Line and Wireless business segments; and (v) lower equity share in net losses from our Fixed Line and Other business segments. The following table shows the breakdown of our consolidated other income (expenses) – net by business segment for the years ended December 31, 2024 and 2023: Change 2024 2023 Amount % (amounts in million Php) Wireless (5,504 ) 1,169 (6,673 ) (571 ) Fixed Line 6,370 10,696 (4,326 ) (40 ) Others (988 ) (2,251 ) 1,263 56 Inter-segment transactions (9,821 ) (15,598 ) 5,777 37 Consolidated (9,943 ) (5,984 ) (3,959 ) (66 ) Net Income Consolidated net income increased by Php5,444 million, or 21%, to Php30,943 million in 2024 from Php25,499 million in 2023. The increase was mainly due to the combined effects of the following: (i) higher consolidated revenues by Php5,880 million; (ii) lower consolidated expenses by Php3,913 million; (iii) higher consolidated other expenses – net by Php3,959 million; (iv) higher provision for income tax by Php431 million; and (v) net loss from discontinued operations of Php41 million in 2023. Our consolidated basic and diluted EPS increased to Php141.80 in 2024 from Php116.77 in 2023. Our weighted average number of outstanding common shares was approximately 216.06 million for each of the years ended December 31, 2024 and 2023. 56 Table of Contents The following table shows the breakdown of our consolidated net income by business segment for the years ended December 31, 2024 and 2023: Change 2024 % 2023 % Amount % (amounts in million Php) Wireless 10,491 34 17,285 68 (6,794 ) (39 ) Fixed Line 31,349 101 25,426 100 5,923 23 Others (1,069 ) (3 ) (2,270 ) (9 ) 1,201 53 Inter-segment transactions (9,828 ) (32 ) (14,901 ) (58 ) 5,073 34 Continuing operations 30,943 100 25,540 100 5,403 21 Discontinued operations — — (41 ) — 41 100 Consolidated 30,943 100 25,499 100 5,444 21 On a Business Segment Basis Wireless Revenues We generated revenues of Php105,734 million from our Wireless business segment in 2024, an increase of Php1,333 million, or 1%, from Php104,401 million in 2023. The following table summarizes our total revenues by service from our Wireless business segment for the years ended December 31, 2024 and 2023: Increase (Decrease) 2024 % 2023 % Amount % (amounts in million Php) Service Revenues: Mobile 96,246 91 94,007 90 2,239 2 Fixed Wireless broadband 1,481 1 1,629 2 (148 ) (9 ) Other services(1) 52 — 41 — 11 27 Total Wireless Service Revenues 97,779 92 95,677 92 2,102 2 Non-Service Revenues: Sale of devices and accessories 7,955 8 8,724 8 (769 ) (9 ) Total Wireless Revenues 105,734 100 104,401 100 1,333 1 (1) Includes facility service fees. Service Revenues Our wireless service revenues increased by Php2,102 million, or 2%, to Php97,779 million in 2024 as compared with Php95,677 million in 2023, primarily due to higher revenues from mobile, partially offset by lower revenues from fixed wireless broadband. As a percentage of our total wireless revenues, service revenues accounted for 92% in each of 2024 and 2023. Wireless service revenues, net of interconnection costs, amounted to Php96,808 million in 2024, an increase of Php1,965 million, or 2%, from Php94,843 million in 2023. Mobile Services Our mobile service revenues amounted to Php96,246 million in 2024, an increase of Php2,239 million, or 2%, from Php94,007 million in 2023. Mobile service revenues accounted for 98% of our wireless service revenues in each of 2024 and 2023. The following table shows the breakdown of our mobile service revenues for the years ended December 31, 2024 and 2023: Increase (Decrease) 2024(1) % 2023(1) % Amount % (amounts in million Php) Mobile Services: Data 78,971 82 75,725 81 3,246 4 Voice 9,374 10 11,474 12 (2,100 ) (18 ) SMS 6,761 7 5,733 6 1,028 18 Others(2) 1,140 1 1,075 1 65 6 Total 96,246 100 94,007 100 2,239 2 57 Table of Contents (1)Certain amounts for the years ended December 31, 2024 and 2023 were reclassified to conform with the current presentation. (2)Refers to other non-subscriber-related revenues. Data Services Mobile revenues from our data services, which include mobile internet, mobile broadband and other data services, increased by Php3,204 million, or 4%, to Php78,971 million in 2024 from Php75,725 million in 2023 due to higher mobile internet revenues driven mainly by the continued strength of our mobile network, and promotion of data offers such as Power All, Double Giga and Magic Data, which cater to the needs of prepaid subscribers, partially offset by lower mobile broadband data revenues. Data services accounted for 82% and 81% of our mobile service revenues for the years ended December 31, 2024 and 2023, respectively. The following table shows the breakdown of our mobile data service revenues for the years ended December 31, 2024 and 2023: Increase (Decrease) 2024 % 2023 % Amount % (amounts in million Php) Data Services: Mobile internet(1) 75,061 95 71,268 94 3,793 5 Mobile broadband 2,255 3 2,900 4 (645 ) (22 ) Other data 1,655 2 1,557 2 98 6 Total 78,971 100 75,725 100 3,246 4 (1)Includes revenues from web-based services, net of discounts and content provider costs. Mobile Internet Mobile internet service revenues increased by Php3,793 million, or 5%, to Php75,061 million in 2024 from Php71,268 million in 2023, primarily due to our mobile data offerings, such as All Access+, Power All, Magic Data, TNT's Saya All, and Smart Postpaid's Unli 5G plans. Smart continues to drive usage and top-ups via Smart App, the Smart Online Store and its retailer network. Smart has also rolled out 5G offers and device financing through partnerships with credit card companies to drive more users on 5G. Smart also launched iPhones on prepaid to drive 5G adoption in the prepaid category. Mobile internet services accounted for 78% and 76% of our mobile service revenues in 2024 and 2023, respectively. Mobile Broadband Mobile broadband revenues generated from the use of pocket WiFi, amounted to Php2,255 million in 2024, a decrease of Php645 million, or 22%, from Php2,900 million in 2023, primarily due to lower mobile broadband subscriber base. Mobile broadband services accounted for 2% and 3% of our mobile service revenues in 2024 and 2023, respectively. Other Data Revenues from our other data services, which include VAS and domestic leased lines, increased by Php98 million, or 6%, to Php1,655 million in 2024 from Php1,557 million in 2023. Voice Services Mobile revenues from our voice services, which include all voice traffic, decreased by Php2,100 million, or 18%, to Php9,374 million in 2024 from Php11,474 million in 2023, due to subscribers’ shift to alternative calling options, digital teleconferencing solutions, and other OTT services. To adapt to these evolving consumer behaviors, PLDT is accelerating its transition toward a mobile-data-centric ecosystem, leveraging its extensive 4G and 5G networks and investing in next-generation voice technologies. To enhance call quality and improve customer experience, Smart has been providing its mobile users with Voice over LTE (VoLTE) and Voice over WiFi (VoWiFi) services, enabling voice calls to be transmitted over high-speed digital networks. These technologies provide superior voice clarity and better integration with mobile data service, ensuring continued relevance of voice offerings within a data-first environment. 58 Table of Contents PLDT is also optimizing its network investments to sustain growth in high-speed connectivity and digital voice solutions, ensuring long-term revenue stability despite the industry-wide decline in traditional voice services. Mobile voice services accounted for 10% and 12% of our mobile service revenues in 2024 and 2023, respectively. SMS Services Mobile revenues from our SMS services, which include all SMS-related services, increased by Php1,028 million, or 18%, to Php6,761 million in 2024 from Php5,733 million in 2023, mainly due to the increase in application-to-person (A2P) messaging services. While traditional person-to-person (P2P) SMS volumes continue to decline due to the rise of OTT messaging, social media, and chat applications, A2P messaging remains a key growth driver. Businesses are increasingly utilizing SMS for secure authentication, customer engagement, and real-time notifications, reinforcing its role as a critical communication channel for enterprises. Mobile SMS services accounted for 7% and 6% of our mobile service revenues in 2024 and 2023, respectively. Others Mobile revenues from other services increased by Php65 million, or 6%, to Php1,140 million in 2024 from Php1,075 million in 2023 mainly due to higher other subscriber-related revenues. Subscriber Base, ARPU and Churn Rates R.A. No. 11934 or the SIM Registration Act took effect on October 28, 2022. Under this law, all end-users are required to register their SIMs with public telecommunications entities (PTEs) as a pre-requisite to the activation thereof. On September 18, 2023, the NTC issued Memorandum Order No. ###-##-#### providing for guidelines for PTEs in the conduct of processes to verify submitted information and data by end-users of SIMs under the SIM Registration Act and its IRR. The following table shows our mobile subscriber base as at December 31, 2024 and 2023: Increase (Decrease) 2024 2023 Amount % Mobile subscriber base(1) Prepaid 56,731,489 55,667,880 1,063,609 2 Smart 21,759,728 21,530,993 228,735 1 TNT 34,971,761 34,136,887 834,874 2 Postpaid 2,258,318 2,159,246 99,072 5 Total 58,989,807 57,827,126 1,162,681 2 (1)Includes mobile broadband subscribers. In view of the SIM Registration Act, we recognize a prepaid mobile subscriber as active upon registration of the SIM card. Beginning the fourth quarter of 2023, we consider a prepaid mobile subscriber as churn if the subscriber does not reload within 180 days after the full usage or expiry of the last reload, and does not latch to the network within 180 days. The average monthly churn rates for Smart Prepaid subscribers were 2.2% and 2.6% in 2024 and 2023, respectively, while the average monthly churn rates for TNT subscribers were 2.0% and 2.8% in 2024 and 2023, respectively. The average monthly churn rates for Postpaid subscribers were 1.1% and 1.4% in 2024 and 2023, respectively. Smart introduced the first prepaid eSIM in the country in July 2023 and introduced digital delivery of eSIMs in September 2023. Smart enabled physical SIM to eSIM upgrades in the second quarter of 2024 to help mitigate churn. The following table summarizes our average monthly ARPUs for the years ended December 31, 2024 and 2023: Gross(1) Increase (Decrease) Net(2) Increase (Decrease) 2024 2023 Amount % 2024 2023 Amount % (amounts in Php) Prepaid Smart 137 135 2 1 % 123 119 4 3 % TNT 115 110 5 5 % 105 99 6 6 % Postpaid 729 727 2 — 688 688 — — (1)Gross monthly ARPU is calculated by dividing gross mobile service revenues for the year, including interconnection income, but excluding inbound roaming revenues, gross of discounts, and content provider costs, by the average number of subscribers for the period. (2)Net monthly ARPU is calculated by dividing gross mobile service revenues for the year, including interconnection income, but excluding inbound roaming revenues, net of discounts, and content provider costs, by the average number of subscribers for the period. 59 Table of Contents Fixed Wireless Broadband Revenues from our Fixed Wireless Broadband services amounted to Php1,481 million in 2024, a decrease of Php148 million, or 9%, from Php1,629 million in 2023. Other Services Revenues from our other services amounted to Php52 million in 2024, an increase of Php11 million, or 27%, from Php41 million in 2023. Non-Service Revenues Our wireless non-service revenues consist of sale of mobile handsets, broadband data routers and devices. Our wireless non-service revenues decreased by Php769 million, or 9%, to Php7,955 million in 2024 from Php8,724 million in 2023, primarily due to a lower sale of postpaid mobile handsets. Expenses Expenses associated with our Wireless business segment amounted to Php86,653 million in 2024, an increase of Php3,826 million, or 5%, from Php82,827 million in 2023. The increase was attributable to higher expenses related to depreciation and amortization, provisions, general operating costs, and interconnection costs, partially offset by lower cost of devices, accessories and contract-specific services. As a percentage of our total wireless revenues, expenses associated with our Wireless business segment accounted for 82% and 79% in 2024 and 2023, respectively. The following table summarizes the breakdown of our total wireless-related expenses for the years ended December 31, 2024 and 2023 and the percentage of each expense item in relation to the total: Increase (Decrease) 2024 % 2023 % Amount % (amounts in million Php) General operating costs 37,813 44 37,643 45 170 — Depreciation and amortization 36,483 42 31,684 38 4,799 15 Cost of devices, accessories and contract-specific services 10,480 12 12,018 15 (1,538 ) (13 ) Asset impairment 906 1 648 1 258 40 85,682 99 81,993 99 3,689 4 Interconnection costs 971 1 834 1 137 16 Total 86,653 100 82,827 100 3,826 5 General operating costs increased by Php170 million from 2023 to Php37,813 million in 2024, primarily due to higher expenses related to repairs and maintenance, and rent, partially offset by lower professional and other contracted services, compensation and employee benefits, selling and promotions, and communication, training and travel. Depreciation and amortization charges increased by Php4,799 million from 2023, or 15%, to Php36,483 million in 2024, mainly on account of accelerated depreciation recognized for the modernization of certain technology equipment resulting mainly from the migration to cloud-based platform, combined with the depreciation of newly capitalized property and equipment, and the higher amortization of capitalized leases of telecom towers. Cost of devices, accessories and contract-specific services decreased by Php1,538 million from 2023, or 13%, to Php10,480 million in 2024, primarily due to lower number of units issued for mobile handsets, and lower SIM registration and SIM printing costs. Asset impairment increased by Php258 million from 2023, or 40%, to Php906 million in 2024, primarily due to higher provision for expected credit losses and provision for inventory obsolescence. Interconnection costs increased by Php137 million from 2023, or 16%, to Php971 million in 2024, primarily due to higher interconnection costs on A2P transactions. 60 Table of Contents Other Income (Expenses) – Net The following table summarizes the breakdown of our total wireless-related other income (expenses) – net for the years ended December 31, 2024 and 2023: Change 2024 2023 Amount % (amounts in million Php) Other Income (Expenses) – Net: Gains on derivative financial instruments – net 885 (376 ) 1,261 335 Foreign exchange gains – net 775 981 (206 ) (21 ) Interest income 698 720 (22 ) (3 ) Financing costs – net (9,763 ) (9,034 ) (729 ) (8 ) Other income – net 1,901 8,878 (6,977 ) (79 ) Total (5,504 ) 1,169 (6,673 ) (571 ) Our Wireless business segment’s other expenses – net amounted to Php5,504 million in 2024, a change of Php6,673 million as against other income – net of Php1,169 million in 2023, primarily due to the combined effects of the following: (i) lower other income – net by Php6,977 million mainly due to lower gain on sale and leaseback of telecom tower, gross of transactions, which decreased by Php6,335 million to Php1,442 million in 2024 from Php7,777 million in 2023; (ii) higher net financing costs by Php729 million mainly due to higher interest rates and lower capitalized interest; (iii) lower net foreign exchange gains by Php206 million mainly on account of revaluation of net foreign currency-denominated liabilities due to depreciation of the Philippine peso relative to the U.S. dollar in 2024 as compared to the appreciation of the Philippine peso relative to the U.S. dollar in 2023; (iv) lower interest income by Php22 million; and (v) higher net gains on derivative financial instruments by Php1,261 million mainly due to the depreciation of the Philippine peso relative to the U.S. dollar in 2024 as compared to the appreciation of the Philippine peso relative to the U.S. dollar in 2023. Provision for Income Tax Provision for income tax amounted to Php3,086 million in 2024, a decrease of Php2,372 million, or 43%, from Php5,458 million in 2023, mainly due to lower net income before tax. Net Income As a result of the foregoing, our Wireless business segment’s net income decreased by Php6,794 million, or 39%, to Php10,491 million in 2024 from Php17,285 million in 2023. Fixed Line Revenues Revenues generated from our Fixed Line business segment amounted to Php126,490 million in 2024, an increase of Php5,756 million, or 5%, from Php120,734 million in 2023. The following table summarizes our total revenues by service from our Fixed Line business segment for the years ended December 31, 2024 and 2023: Increase (Decrease) 2024(1) % 2023(1) % Amount % (amounts in million Php) Service Revenues: Data 96,269 76 93,597 78 2,672 3 Voice 29,660 24 26,686 22 2,974 11 Miscellaneous 65 — 53 — 12 23 Total Fixed Line Service Revenues 125,994 100 120,336 100 5,658 5 Non-Service Revenues: Sale of devices and accessories 496 — 398 — 98 25 Total Fixed Line Revenues 126,490 100 120,734 100 5,756 5 61 Table of Contents Service Revenues Our fixed line service revenues increased by Php5,658 million, or 5%, to Php125,994 million in 2024 from Php120,336 million in 2023, primarily due to higher revenues from our voice, data and miscellaneous services. Fixed Line service revenues, net of interconnection costs, amounted to Php111,675 million in 2024, an increase of Php2,469 million, or 2%, from Php109,206 million in 2023. Data Services Our data services, which include Home broadband, corporate data, and ICT portfolio with data center, cloud, cybersecurity, and managed IT offerings, posted revenues of Php96,269 million in 2024, an increase of Php2,672 million, or 3%, from Php93,597 million in 2023, primarily due to higher revenues from Home broadband, corporate data and leased lines, and ICT services, inclusive of intersegment transactions. The percentage contribution of this service segment to our fixed line service revenues accounted for 76% and 78% in 2024 and 2023, respectively. The following table shows information of our data service revenues for the years ended December 31, 2024 and 2023: Increase (Decrease) 2024 % 2023 % Amount % (amounts in million Php) Data service revenues Home broadband 51,759 54 50,876 54 883 2 Corporate data and ICT 44,510 46 42,721 46 1,789 4 Total 96,269 100 93,597 100 2,672 3 Home Broadband Home broadband data revenues amounted to Php51,759 million in 2024, an increase of Php883 million, or 2%, from Php50,876 million in 2023, mainly driven by the increasing demand for broadband services. Home broadband revenues accounted for 54% of fixed line data service revenues in each of 2024 and 2023. Corporate Data and ICT Corporate data services amounted to Php36,676 million in 2024, an increase of Php1,087 million, or 3%, as compared with Php35,589 million in 2023, mainly due to the sustained demand for broadband internet and data networking services. Corporate data revenues accounted for 38% of our total data service revenues in each of 2024 and 2023. ICT revenues increased by Php702 million, or 10%, to Php7,834 million in 2024 from Php7,132 million in 2023, mainly due to higher revenues from managed IT, data center and cloud services. The percentage contribution of this service segment to our total data service revenues accounted for 8% in each of 2024 and 2023. Voice Services Revenues from our voice services increased by Php2,974 million, or 11%, to Php29,660 million in 2024 from Php26,686 million in 2023, primarily due to higher revenues from wholesale international voice of PLDT Global driven by higher traffic volume. Excluding wholesale international voice revenues of Php13,224 million and Php9,323 million in 2024 and 2023, respectively, our voice services decreased by Php927 million, or 5%, to Php16,436 million in 2024 from Php17,363 million in 2023. The percentage contribution of voice service revenues to our fixed line service revenues accounted for 24% and 22% in 2024 and 2023, respectively. Miscellaneous Services Miscellaneous service revenues are derived mostly from rentals and management fees. These service revenues increased by Php12 million, or 23%, to Php65 million in 2024 from Php53 million in 2023. 62 Table of Contents Non-service Revenues Non-service revenues increased by Php98 million, or 25%, to Php65 million in 2024 from Php53 million in 2023, primarily due higher sale of devices. Expenses Expenses related to our Fixed Line business segment totaled Php95,357 million in 2024, a decrease of Php6,995 million, or 7%, as compared with Php102,352 million in 2023. The decrease was primarily due to lower depreciation and amortization, general operating costs and provisions, partly offset by higher interconnection costs, cost of devices, accessories and contract-specific services and asset impairment. As a percentage of our total fixed line revenues, expenses associated with our Fixed Line business segment accounted for 75% and 85% in 2024 and 2023, respectively. The following table shows the breakdown of our total fixed line-related expenses for the years ended December 31, 2024 and 2023 and the percentage of each expense item in relation to the total: Increase (Decrease) 2024 % 2023 % Amount % (amounts in million Php) General operating costs 44,850 47 47,434 46 (2,584 ) (5 ) Depreciation and amortization 29,132 30 36,890 36 (7,758 ) (21 ) Cost of devices, accessories and contract-specific services 3,641 4 3,114 3 527 17 Asset impairment 3,415 4 3,784 4 (369 ) (10 ) 81,038 85 91,222 89 (10,184 ) (11 ) Interconnection costs 14,319 15 11,130 11 3,189 29 Total 95,357 100 102,352 100 (6,995 ) (7 ) General operating costs decreased by Php2,584 million, or 5%, to Php44,850 million in 2024, primarily due to lower expenses related to selling and promotions, repairs and maintenance, professional and other contracted services, and communication, training and travel. This is partly offset by higher expenses related to rent and compensation and employee benefits. Depreciation and amortization charges decreased by Php7,758 million, or 21%, to Php29,132 million in 2024, mainly due to accelerated depreciation and amortization in 2023 of subscriber contract cost to fulfill, partially offset by accelerated depreciation recognized in 2024 for the modernization of some core and transport network equipment, and depreciation of newly capitalized property and equipment. Cost of devices, accessories and contract-specific services increased by Php527 million, or 17%, to Php3,641 million in 2024, primarily due to higher cost of services, mainly from higher cost of content, and managed IT solutions and services. Asset impairment decreased by Php369 million, or 10%, to Php3,415 million in 2024, primarily due to lower provision for expected credit losses, mainly on account of higher collection efficiency for Home. Interconnection costs increased by Php3,189 million, or 29%, to Php14,319 million in 2024, primarily due to higher international interconnection costs of PLDT Global driven by higher traffic volume. Excluding cost of wholesale international voice of Php12,987 million and Php9,277 million in 2024 and 2023, respectively, our interconnection costs decreased by Php521 million, or 28%, to Php1,332 million in 2024 from Php1,853 million in 2023. Other Income (Expenses) – Net The following table summarizes the breakdown of our total fixed line-related other income (expenses) – net for the years ended December 31, 2024 and 2023: Change 2024 2023 Amount % (amounts in million Php) Other Income (Expenses) – Net: Gains on derivative financial instruments – net 756 (367 ) 1,123 (306 ) Interest income 230 324 (94 ) (29 ) Equity share in net losses of associates and joint ventures (67 ) (595 ) 528 89 Foreign exchange gains (losses) – net (819 ) 138 (957 ) (693 ) Financing costs – net (7,456 ) (6,824 ) (632 ) (9 ) Other income – net 13,726 18,020 (4,294 ) (24 ) Total 6,370 10,696 (4,326 ) (40 ) 63 Table of Contents Our Fixed Line business segment’s other income – net amounted to Php6,370 million in 2024, a decrease of Php4,236 million, or 40%, from Php10,696 million in 2023, primarily due to the combined effects of the following: (i) lower other income – net by Php4,294 million mainly due to lower dividend income recognized from the subsidiaries of Wireless business segment; (ii) net foreign exchange losses of Php819 million in 2024 as against net foreign exchange gains of Php138 million in 2023 mainly due to the depreciation of the Philippine peso relative to the U.S. dollar in 2024 as compared to the appreciation of the Philippine peso relative to the U.S. dollar in 2023; (iii) higher net financing costs by Php632 million mainly due to higher interest rates and higher accretion on lease liabilities, partly offset by higher capitalized interest; (iv) lower interest income by Php94 million; (v) lower equity share in net losses of associates by Php528 million mainly due to lower equity share in net losses of Cignal TV; (vi) net gains on derivative financial instruments of Php756 million in 2025 as against net losses on derivative financial instruments of Php367 million in 2024 mainly due to the depreciation of the Philippine peso relative to the U.S. dollar in 2024 as compared to the appreciation of the Philippine peso relative to the U.S. dollar in 2023. Provision for (Benefit from) Income Tax Provision for income tax amounted to Php6,154 million in 2024, an increase of Php2,502 million, or 69%, from Php3,652 million in 2023, mainly due to higher net income before tax. Net Income As a result of the foregoing, our Fixed Line business segment registered a net income of Php31,349 million in 2024, an increase of Php5,923 million, or 23%, as compared with Php25,426 million in 2023. Others Revenues Revenues generated from our Other business segment amounted to nil for each of the years ended December 31, 2024 and 2023. Expenses Expenses related to our Other business segment increased by Php72 million to Php90 million in 2024 from Php18 million in 2023. Other Income (Expenses) – Net The following table summarizes the breakdown of other income (expenses) – net for Other business segment for the years ended December 31, 2024 and 2023: Change 2024 2023 Amount % (amounts in million Php) Other Income (Expenses) – Net: Interest income 15 7 8 114 Foreign exchange losses – net (75 ) (76 ) 1 1 Equity share in net losses of associates and joint ventures (923 ) (2,211 ) 1,288 58 Other income (expenses) – net (5 ) 29 (34 ) (117 ) Total (988 ) (2,251 ) 1,263 56 Our Other business segment’s other expenses – net amounted to Php988 million in 2024, a decrease of Php1,263 million, or 56%, from Php2,251 million in 2023, primarily due to lower equity share in net losses of associates and joint ventures by Php1,288 million mainly on account of lower equity share in net losses in MIH. Net Loss As a result of the foregoing, our Other business segment registered a net loss of Php1,069 million in 2024, a decrease of Php1,201 million, or 53%, from Php2,270 million in 2023. Key Non-IFRS Financial Measures 64 Table of Contents In addition to the measures presented in our consolidated financial statements, we use the following key non-IFRS financial measures to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions. However, the definitions of our non-IFRS financial measures may be different from those used by other companies, and therefore, may not be comparable. Furthermore, these non-IFRS financial measures have certain limitations in that they do not include the impact of certain expenses reflected in our consolidated financial statements that are necessary to run our business. Thus, these non-IFRS financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with IFRS. We compensate for these limitations by providing a reconciliation of these non-IFRS financial measures to the related IFRS financial measures under the section titled “Reconciliation of Non-IFRS Financial Measures.” We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-IFRS financial measures in conjunction with their respective related IFRS financial measures. Wireless Fixed Line Others Intersegment and Consolidation Entries Consolidated (amounts in million Php) For the year ended December 31, 2025 Adjusted EBITDA 57,589 63,253 (7 ) (9,604 ) 111,231 Adjusted EBITDA margin 59 % 49 % — — 52 % Telco core income 13,025 27,877 (113 ) (6,864 ) 33,925 Core income 13,025 27,877 598 (6,864 ) 34,636 For the year ended December 31, 2024 Adjusted EBITDA 55,634 61,953 (48 ) (9,024 ) 108,515 Adjusted EBITDA margin 57 % 49 % — — 52 % Telco core income 10,852 34,372 (32 ) (10,054 ) 35,138 Core income 10,852 34,518 (1,084 ) (10,054 ) 34,232 For the year ended December 31, 2023 Adjusted EBITDA 54,369 59,102 (18 ) (9,156 ) 104,233 Continuing operations 54,369 59,102 (18 ) (9,156 ) 104,297 Discontinued operations — — — — (64 ) Adjusted EBITDA margin(1) 57 % 49 % — — 52 % Telco core income 11,750 37,590 65 (15,064 ) 34,341 Core income 11,750 37,886 (2,110 ) (15,064 ) 32,421 Continuing operations 11,750 37,886 (2,110 ) (15,064 ) 32,462 Discontinued operations — — — — (41 ) Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA is measured as net income excluding depreciation and amortization, asset impairment on noncurrent assets, financing costs – net, interest income, equity share in net earnings (losses) of associates and joint ventures, foreign exchange gains (losses) – net, gains (losses) on derivative financial instruments – net, provision for (benefit from) income tax, other income (expense) – net, manpower rightsizing program (MRP) and non-recurring income (expenses). Adjusted EBITDA is monitored by management for each business unit separately for purposes of making decisions about resource allocation and performance assessment. Adjusted EBITDA Margin is measured as Adjusted EBITDA divided by service revenues. Adjusted EBITDA and Adjusted EBITDA Margin are presented because our management believes that it is widely used by investors in their analysis of the performance of PLDT and can assist them in their comparison of PLDT’s performance with those of other companies in the technology, media and telecommunications sector. Companies in the technology, media and telecommunications sector have historically reported such measures as a supplement to financial measures in accordance with IFRS Accounting Standards. Adjusted EBITDA should not be considered as alternative to net income as an indicator of our performance, nor should Adjusted EBITDA be considered as an alternative to cash flows from operating activities, as a measure of liquidity or as an alternative to any other measure determined in accordance with IFRS Accounting Standards. Unlike net income, Adjusted EBITDA does not include depreciation and amortization, or financing costs and, therefore, does not reflect current or future capital expenditures or the cost of capital. We compensate for these limitations by using Adjusted EBITDA and Adjusted EBITDA Margin as only some of several comparative tools, together with IFRS Accounting Standards-based measurements, to assist in the evaluation of operating performance. Such IFRS Accounting Standards-based measurements include income before income tax, net income, and operating, investing and financing cash flows. We have significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in Adjusted EBITDA. Our calculation of Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. 65 Table of Contents Our consolidated Adjusted EBITDA amounted to Php111,231 million in 2025, an increase of Php2,716 million, or 3%, as compared with Php108,515 million in 2024. Our consolidated Adjusted EBITDA in 2024 represented an increase of Php4,282 million, or 4%, as compared with Php104,233 million in 2023. Our Wireless business segment’s Adjusted EBITDA increased by Php1,955 million, or 4%, to Php57,589 million in 2025 from Php55,634 million in 2024, which in turn, represented an increase of Php1,265 million, or 2% from Php54,369 million in 2023. Adjusted EBITDA margin increased to 59% in 2025 from 57% in 2024 and 2023. Our Fixed Line business segment’s Adjusted EBITDA increased by Php1,300 million, or 2%, to Php63,253 million in 2025 from Php61,953 million in 2024, which in turn, represented an increase of Php2,851 million, or 5%, from Php59,102 million in 2023. Adjusted EBITDA margin remained stable at 49% in 2025, 2024 and 2023. Core Income and Telco Core Income Core income is measured as net income attributable to equity holders of PLDT (net income less net income attributable to noncontrolling interests), excluding foreign exchange gains (losses) – net, gains (losses) on derivative financial instruments – net (excluding hedge costs), asset impairment on noncurrent assets, non-recurring gains (losses), net of tax effect of aforementioned adjustments, as applicable, and similar adjustments to equity share in net earnings (losses) of associates and joint ventures. Core income results are monitored by management for each business unit separately for purposes of making decisions about resource allocation and performance assessment. Meanwhile, telco core income is measured as net income attributable to equity holders of PLDT (net income less net income attributable to noncontrolling interests), excluding foreign exchange gains (losses) – net, gains (losses) on derivative financial instruments – net (excluding hedge costs), asset impairment on noncurrent assets, non-recurring gains (losses), net of tax effect of aforementioned adjustments, as applicable, and similar adjustments to equity share in net earnings (losses) of associates and joint ventures, adjusted for the effect of the share in Maya Innovations Holdings, Pte. Ltd. (MIH) (formerly Voyager Innovations Holdings, Pte. Ltd.) and Kayana Solutions, Inc. (Kayana) (formerly Limitless Growth Ventures, Inc.) income (losses), asset sales, and depreciation due to change in accounting estimate. Telco core income is used by the management as a basis for determining the level of dividend payouts to shareholders and one of the bases for granting incentives to employees. Core income and telco core income should not be considered as alternatives to income before income tax or net income determined in accordance with IFRS Accounting Standards as an indicator of our performance. Unlike net income, core income and telco core income do not include certain items, among others, foreign exchange gains and losses, gains and losses on derivative financial instruments, impairment on non-current assets and non-recurring gains and losses. We compensate for these limitations by using core income and telco core income as a few of several comparative tools, together with IFRS Accounting Standards-based measurements, to assist in the evaluation of operating performance. Such IFRS Accounting Standards-based measurements include income before income tax and net income. Our calculation of core income may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Our consolidated telco core income amounted to Php33,925 million in 2025, a decrease of Php1,213 million, or 3%, as compared with Php35,138 million in 2024, mainly due to higher financing costs and depreciation and amortization, partially offset by higher Adjusted EBITDA and other miscellaneous income. Our consolidated telco core income in 2024 recorded an increase of Php797 million, or 2%, as compared with Php34,341 million in 2023, mainly due to higher Adjusted EBITDA and lower equity share in net losses of associates and joint ventures, partially offset by higher depreciation and amortization and financing costs. Our consolidated core income amounted to Php34,636 million in 2025, an increase of Php404 million, or 1%, as compared with Php34,232 million in 2024, mainly on account of higher Adjusted EBITDA, equity share in net earnings of associates and joint ventures in 2025 as against equity share in net losses of associates and joint ventures in 2024, and higher other miscellaneous income, partially offset by higher depreciation and amortization and financing costs. Our consolidated core income in 2024 was an increase of Php1,811 million, or 6%, as compared with Php32,421 million in 2023, mainly on account of higher Adjusted EBITDA and lower equity share in net losses of associates and joint ventures, partially offset by higher depreciation and amortization and financing costs. Our consolidated basic and diluted core EPS increased to Php160.04 in 2025 from Php158.17 in 2024 and Php149.78 in 2023. Our Wireless business segment’s core income increased by Php2,173 million, or 20%, to Php13,025 million in 2025 from Php10,852 million in 2024, mainly on account of higher EBITDA and other miscellaneous income, partially offset by higher depreciation and amortization, and financing costs. Our Wireless business segment’s core income in 2024 represented a decrease of Php898 million, or 8%, from Php11,750 million in 2023, mainly on account of higher depreciation and amortization, and financing costs, partially offset by higher Adjusted EBITDA and lower provision for income tax. Our Fixed Line business segment’s core income decreased by Php6,641 million, or 19%, to Php27,877 million in 2025 from Php34,518 million in 2024, primarily due to lower other miscellaneous income and higher financing costs, partially offset by higher Adjusted EBITDA. Our Fixed Line business segment’s core income represented a decrease of Php3,368 million, or 9%, 66 Table of Contents from Php37,886 million in 2023, primarily due to lower other miscellaneous income and higher financing costs, partially offset by higher Adjusted EBITDA. Our Other business segment’s core income amounted to Php598 million in 2025, a change of Php1,682 million as against core loss of Php1,084 million in 2024. Our Other business segment’s core loss amounted to Php1,084 million in 2024, a decrease of Php1,026 million, or 49%, from core loss of Php2,110 million in 2023. 67 Table of Contents Reconciliation of Non-IFRS Financial Measures The following table shows the reconciliation of our consolidated net income to our consolidated Adjusted EBITDA and Adjusted EBITDA Margin for the years ended December 31, 2025, 2024 and 2023: For the year ended December 31, 2025 Wireless Fixed Line Others Intersegment and Consolidation Entries Consolidated (amounts in million Php) Consolidated net income 9,437 25,599 568 (6,735 ) 28,869 Add (deduct) adjustments: Depreciation and amortization 40,560 26,928 — (8,001 ) 59,487 Financing costs – net 9,941 9,411 — (1,184 ) 18,168 Provision for income tax 2,709 6,810 (29 ) (669 ) 8,821 Manpower rightsizing program (MRP) 296 1,092 — — 1,388 Foreign exchange losses (gains) – net 12 545 (4 ) (3 ) 550 Equity share in net losses (earnings) of associates and joint ventures 11 924 (507 ) — 428 Losses on derivative financial instruments – net 27 14 — — 41 Impairment of non-current assets — 8 — — 8 Interest income (554 ) (171 ) (11 ) 17 (719 ) Income from prescription of liability on subscriber investment plan deposits and other non-recurring income (501 ) (229 ) — — (730 ) Gain on sale and leaseback of telecom towers – net of transaction costs (871 ) — — — (871 ) Others – net (3,478 ) (7,678 ) (24 ) 6,971 (4,209 ) Total adjustments 48,152 37,654 (575 ) (2,869 ) 82,362 Consolidated Adjusted EBITDA 57,589 63,253 (7 ) (9,604 ) 111,231 Service Revenues 97,568 130,355 — (15,737 ) 212,186 Adjusted EBITDA Margin 59 % 49 % — 61 % 52 % For the year ended December 31, 2024 Consolidated net income 10,491 31,349 (1,069 ) (9,828 ) 30,943 Add (deduct) adjustments: Depreciation and amortization 36,483 29,132 — (9,387 ) 56,228 Financing costs – net 9,763 7,456 — (1,719 ) 15,500 Provision for income tax 3,086 6,154 (9 ) 370 9,601 MRP 69 1,619 — — 1,688 Equity share in net losses of associates and joint ventures — 67 923 — 990 Impairment of non-current assets 1 68 — — 69 Foreign exchange losses (gains) – net (775 ) 819 75 (83 ) 36 Income from prescription of liability on redeemable preferred shares — (71 ) — — (71 ) Interest income (698 ) (230 ) (15 ) 27 (916 ) Gain on sale and leaseback of telecom towers – net of transaction costs (951 ) — — — (951 ) Gains on derivative financial instruments – net (885 ) (756 ) — — (1,641 ) Others – net (950 ) (13,654 ) 47 11,596 (2,961 ) Total adjustments 45,143 30,604 1,021 804 77,572 Consolidated Adjusted EBITDA 55,634 61,953 (48 ) (9,024 ) 108,515 Service Revenues 97,779 125,994 — (15,391 ) 208,382 Adjusted EBITDA Margin 57 % 49 % — 59 % 52 % For the year ended December 31, 2023 Net income from continuing operations 17,285 25,426 (2,270 ) (14,901 ) 25,540 Net loss from discontinued operations — — — (41 ) Consolidated net income 17,285 25,426 (2,270 ) (14,901 ) 25,499 Add (deduct) adjustments to continuing operations: Depreciation and amortization 31,684 36,890 — (9,912 ) 58,662 Financing costs – net 9,034 6,824 — (2,103 ) 13,755 Provision for income tax 5,458 3,652 1 59 9,170 Equity share in net earnings of associates and joint ventures — 595 2,211 — 2,806 Additional amortization of subscriber contract cost to obtain — 2,135 — — 2,135 MRP 327 1,694 — — 2,021 Losses on derivative financial instruments – net 376 367 — — 743 Interest income (720 ) (324 ) (7 ) 35 (1,016 ) Foreign exchange losses (gains) – net (981 ) (138 ) 76 (106 ) (1,149 ) Gain on sale and leaseback of telecom towers – net of transaction costs (6,992 ) — — — (6,992 ) Others – net (1,102 ) (18,019 ) (29 ) 17,772 (1,378 ) Total adjustments 37,084 33,676 2,252 5,745 78,757 Adjusted EBITDA from continuing operations 54,369 59,102 (18 ) (9,156 ) 104,297 Adjusted EBITDA from discontinued operations — — — — (64 ) Consolidated Adjusted EBITDA 54,369 59,102 (18 ) (9,156 ) 104,233 Service Revenues 95,677 120,336 — (14,181 ) 201,832 Adjusted EBITDA Margin 57 % 49 % — 65 % 52 % 68 Table of Contents The following table shows the reconciliation of our consolidated net income to our consolidated core income and consolidated telco core income for the years ended December 31, 2025, 2024 and 2023: For the year ended December 31, 2025 Wireless Fixed Line Others Intersegment and Consolidation Entries Consolidated (amounts in million Php) Consolidated net income 9,437 25,599 568 (6,735 ) 28,869 Add (deduct) adjustments: Accelerated depreciation and amortization 5,776 981 — — 6,757 MRP 296 1,092 — — 1,388 Core income adjustment on equity share in net losses of associates and joint ventures — 610 33 — 643 Foreign exchange losses (gains) – net 12 545 (4 ) (3 ) 550 Amortization of debt discount from debt modification 113 49 — — 162 Impairment of non-current assets — 8 — — 8 Net income attributable to noncontrolling interests (15 ) (65 ) — (127 ) (207 ) Income from prescription of liability on subscriber investment plan deposits and other non-recurring income (501 ) (229 ) — — (730 ) Gain on sale and leaseback of telecom towers – net of transaction costs (871 ) — — — (871 ) Gains on derivative financial instruments – net, excluding hedge costs (22 ) (135 ) — — (157 ) Net tax effect of aforementioned adjustments (1,200 ) (578 ) 1 1 (1,776 ) Total adjustments 3,588 2,278 30 (129 ) 5,767 Consolidated core income 13,025 27,877 598 (6,864 ) 34,636 Add (deduct) adjustments: Share in Kayana losses — — 92 — 92 Share in MIH income — — (716 ) — (716 ) Gain on asset sales, net of tax — — (87 ) — (87 ) Total adjustments — — (711 ) — (711 ) Consolidated telco core income 13,025 27,877 (113 ) (6,864 ) 33,925 For the year ended December 31, 2024 Consolidated net income 10,491 31,349 (1,069 ) (9,828 ) 30,943 Add (deduct) adjustments: Accelerated depreciation and amortization 2,787 2,899 — — 5,686 MRP 69 1,619 — — 1,688 Amortization of debt discount from debt modification 124 59 — — 183 Impairment of non-current assets 1 68 — — 69 Foreign exchange losses (gains) – net (775 ) 819 75 (83 ) 36 Core income adjustment on equity share in net loss (income) of associates and joint ventures — 66 (71 ) — (5 ) Income from prescription of liability on redeemable preferred shares and other non-recurring expenses (income) 210 (363 ) — — (153 ) Net income attributable to noncontrolling interests (16 ) (66 ) — (166 ) (248 ) Gain on sale and leaseback of telecom towers – net of transaction costs (951 ) — — — (951 ) Gains on derivative financial instruments – net, excluding hedge costs (943 ) (927 ) — — (1,870 ) Net tax effect of aforementioned adjustments (145 ) (1,005 ) (19 ) 23 (1,146 ) Total adjustments 361 3,169 (15 ) (226 ) 3,289 Consolidated core income 10,852 34,518 (1,084 ) (10,054 ) 34,232 Add (deduct) adjustments: Share in MIH losses — — 1,006 — 1,006 Share in Kayana losses — — 46 — 46 Gain on deconsolidation of Kayana — (146 ) — — (146 ) Total adjustments — (146 ) 1,052 — 906 Consolidated telco core income 10,852 34,372 (32 ) (10,054 ) 35,138 For the year ended December 31, 2023 Net income from continuing operations 17,285 25,426 (2,270 ) (14,901 ) 25,540 Net loss from discontinued operations — — — — (41 ) Consolidated net income 17,285 25,426 (2,270 ) (14,901 ) 25,499 Add (deduct) adjustments to continuing operations: Accelerated depreciation and amortization(1) — 13,924 — — 13,924 MRP 327 1,694 — — 2,021 Core income adjustment on equity share in net loss (income) of associates and joint ventures — 364 102 — 466 Other non-recurring expenses (income) (174 ) 433 — — 259 Amortization of debt discount from debt modification 125 52 — — 177 Impairment of investments 70 — — — 70 Net income attributable to noncontrolling interests (19 ) (129 ) — (62 ) (210 ) Foreign exchange losses (gains) – net (981 ) (142 ) 77 (106 ) (1,152 ) Losses on derivative financial instruments – net, excluding hedge costs 310 195 — — 505 Gain on sale and leaseback of telecom towers – net of transaction costs (6,992 ) — — — (6,992 ) Net tax effect of aforementioned adjustments 1,799 (3,931 ) (19 ) 5 (2,146 ) Total adjustments (5,535 ) 12,460 160 (163 ) 6,922 Core income from continuing operations 11,750 37,886 (2,110 ) (15,064 ) 32,462 Core loss from discontinued operations — — — — (41 ) Consolidated core income 11,750 37,886 (2,110 ) (15,064 ) 32,421 Core income from continuing operations 11,750 37,886 (2,110 ) (15,064 ) 32,462 Add (deduct) adjustments: Share in MIH losses — — 2,175 — 2,175 Gain on asset sales, net of tax — (296 ) — — (296 ) Total adjustments — (296 ) 2,175 — 1,879 Consolidated telco core income 11,750 37,590 65 (15,064 ) 34,341 (1) In 2023, accelerated depreciation and amortization includes subscriber contract cost to obtain of Php2,135 million and cost to fulfill of Php11,789 million. 69 Table of Contents The following table shows the reconciliation of our consolidated basic and diluted earnings per share (EPS) attributable to common equity holders of PLDT to our consolidated basic and diluted core EPS for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 Basic Diluted Basic Diluted Basic Diluted (amounts in Php) EPS from continuing operations 132.38 132.38 141.80 141.80 116.96 116.96 EPS from discontinued operations — — — — (0.19 ) (0.19 ) Consolidated EPS attributable to common equity holders of PLDT 132.38 132.38 141.80 141.80 116.77 116.77 Add (deduct) adjustments: Accelerated depreciation and amortization 23.45 23.45 19.74 19.74 48.34 48.34 MRP 4.82 4.82 5.86 5.86 7.02 7.02 Foreign exchange losses (gains) – net 1.91 1.91 0.13 0.13 (4.00 ) (4.00 ) Core income adjustment on equity share in net (income) losses of associates and joint ventures 2.98 2.98 (0.02 ) (0.02 ) 2.16 2.16 Net losses on debt modification 0.56 0.56 0.64 0.64 0.61 0.61 Impairment of investments/noncurrent assets 0.03 0.03 0.31 0.31 0.32 0.32 Gains on derivative financial instruments – net, excluding hedge costs (0.54 ) (0.54 ) (6.49 ) (6.49 ) 1.75 1.75 Gain on sale and leaseback of telecom towers (3.02 ) (3.02 ) (3.31 ) (3.31 ) (24.59 ) (24.59 ) Income from prescription of liability on redeemable preferred shares/subscriber investment plan deposits and other non-recurring expenses (income) (2.53 ) (2.53 ) (0.49 ) (0.49 ) 1.40 1.40 Total adjustments 27.66 27.66 16.37 16.37 33.01 33.01 Core EPS from continuing operations 160.04 160.04 158.17 158.17 149.97 149.97 Core EPS from discontinued operations — — — — (0.19 ) (0.19 ) Consolidated core EPS 160.04 160.04 158.17 158.17 149.78 149.78 B. Liquidity and Capital Resources The following table shows our consolidated cash flows for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (amounts in million Php) Cash Flows Net cash flows provided by operating activities 98,738 81,731 85,765 Net cash flows used in investing activities (60,979 ) (65,704 ) (55,118 ) Payment for purchase of property and equipment, including capitalized interest (62,864 ) (68,257 ) (78,435 ) Net cash flows used in financing activities (35,927 ) (22,331 ) (39,418 ) Net increase (decrease) in cash and cash equivalents 1,855 (6,166 ) (9,034 ) The following table shows our consolidated capitalization and other consolidated selected financial data as at December 31, 2025 and 2024: 2025 2024 (amounts in million Php) Capitalization Interest-bearing financial liabilities: Long-term financial liabilities: Long-term debt 278,868 258,246 Current portion of interest-bearing financial liabilities: Long-term debt maturing within one year 16,180 23,340 Total interest-bearing financial liabilities 295,048 281,586 Total equity attributable to equity holders of PLDT 126,889 115,419 421,937 397,005 Other Selected Financial Data Total assets 634,828 623,275 Property and equipment 327,989 318,069 Cash and cash equivalents 11,866 10,011 Short-term investments 10 136 Our principal sources of liquidity are our cash and cash equivalents, cash flows from operating activities and investing activities, and proceeds from long-term debt. Our consolidated cash and cash equivalents and short-term investments totaled Php11,876 million, Php10,147 million and Php16,568 million as at December 31, 2025, 2024 and 2023, respectively. 70 Table of Contents In 2025, we had (i) cash flows from operating activities amounting to Php98,738 million, (ii) proceeds from availment of long-term debt of Php36,150 million, (iii) proceeds from availment of short-term debt of Php1,322 million, (iv) proceeds from the disposal of property and equipment of Php1,220 million, mainly comprising proceeds from the sale and leaseback of telecom towers, (v) proceeds from the disposal of investment in associates and joint ventures of Php775 million, mainly comprising return of capital from investment in Vega Telecom, Inc. (VTI) of Php600 million, (vi) proceeds from the disposal of AppCard shares of Php175 million; (vii) interest received of Php686 million, and (viii) proceeds from maturity of short-term investment of Php126 million. These funds were used principally for: (1) the purchase of property and equipment, including capitalized interest, of Php62,864 million; (2) long-term debt principal and interest payments of Php23,712 million and Php13,233 million, respectively; (3) cash dividends paid of Php20,590 million; (4) settlement of obligations under lease liabilities of Php14,328 million; (5) payment of short-term debt of Php1,022 million; (6) settlement of derivative financial instruments of Php243 million; and (7) payment for acquisition of investment in associates and joint ventures of Php186 million, mainly Smart’s investment in Dream Fearlessly Technologies, Inc. (DFTI). In 2024, we had (i) cash flows from operating activities amounting to Php81,731 million, (ii) proceeds from availment of long-term debt of Php37,000 million, (iii) proceeds from disposal of property of equipment of Php4,827 million, mainly comprising proceeds from the sale and leaseback of telecom towers, (iv) interest received of Php881 million, (v) collection of derivative financial instruments of Php704 million, and (vi) proceeds from redemption of investment in debt securities of Php200 million. These funds were used principally for: (1) the purchase of property and equipment, including capitalized interest, of Php68,257 million; (2) long-term debt principal and interest payments of Php12,059 million and Php10,740 million, respectively; (3) cash dividends paid of Php20,750 million; (4) settlement of obligations under lease liabilities of Php12,079 million; (5) payment for redemption of perpetual notes of Php4,200 million; (6) payment for acquisition of investment in associates and joint ventures of Php3,770 million, mainly PLDT's respective investments in Radius and Kayana, PCEV’s additional investment in MIH, and Smart’s investment in DFTI. In 2023, we had (i) cash flows from operating activities amounting to Php85,765 million, (ii) proceeds from availment of long-term debt of Php38,000 million, (iii) proceeds from disposal of property of equipment of Php23,971 million, mainly comprising proceeds from the sale and leaseback of telecom towers, and (iv) interest received of Php973 million and proceeds from maturity of short-term investments of Php440 million. These funds were used principally for: (1) the purchase of property and equipment, including capitalized interest, of Php78,435 million; (2) long-term debt principal and interest payments of Php22,611 million and Php9,715 million, respectively; (3) cash dividends paid of Php23,328 million; (4) payment of short-term debt of Php10,000 million; (5) settlement of obligations under lease liabilities of Php10,707 million; (6) payment for acquisition of investment in associates and joint ventures of Php1,636 million, mainly PCEV’s additional investment in MIH’s preferred shares; (7) settlement of derivative financial instruments of Php607 million; and (8) payment for purchase of short-term investments of Php449 million. Capital Expenditure Plans We are one of the leading telecommunications and digital services providers in the Philippines. We are committed to reinforcing our leading position by offering a broader range and higher quality products and services. Our consolidated capital expenditures, net of additions subject to sale and leaseback from tower companies, totaled Php60,336 million, Php78,246 million and Php85,083 million for the years ended December 31, 2025, 2024 and 2023, respectively. Our capex spending was primarily focused on Wireless LTE (4G) coverage and capacity expansion, and rollout of new sites and 5G base stations in key business areas and dense communities nationwide, and Fixed Line’s install, rollout, expansion and modernization of fiber optic transport network and backbone resiliency, and expansion of international submarine cable network. PLDT Group’s capital expenditures were financed from internally generated funds, complemented by our borrowings and proceeds from sale of assets. Our current estimate for our consolidated capital expenditures in 2026 will be in the mid-Php50 billion range, which is expected to be spent on network maintenance and expansion and IT projects, mainly to support the exponential rise in mobile data traffic, for broadband installations, and investments to support the growth of the corporate data and ICT businesses, including data centers. Our capital spending is focused on our objective of supporting the changing demand profile of our customers, allowing the delivery of a superior customer experience, and helping corporate customers to grow their businesses. We plan to expand our LTE network in line with our intention to expand capacity in step with the growth in customer usage, and our desire to provide coverage to substantially all of the country’s cities and municipalities. We are also heeding the government's call to expand telecommunications facilities to reach GIDAs. Furthermore, we are investing in building our 5G network to support an identified growth area in the mobile space. We intend to expand and upgrade our national and domestic transport network for cable fortification and resiliency in various locations. We continue to invest to expand capacity and improve resiliency of our international cable network which is critical in connecting the Philippines to the world. The design of our integrated network architecture optimizes the ability of PLDT to deliver diverse products and services offering to as wide a market as possible in the most cost-effective manner. We also plan to continue upgrading our IT and service delivery platforms in order to facilitate real-time, on demand and personalized customer experience across all touch points and channels. 71 Table of Contents Our capital expenditure budget includes projects addressing the following objectives: (1)Commercial expansion of capacity and footprint of our wired and wireless services, as well as new platforms to expand service offerings; (2)Technical modernization of the PLDT Group’s service delivery platform in order to realize operating and cost efficiencies, provision of greater resilience and redundancy for the network, and investments in additional cable systems; (3)Continuing investments to expand our LTE and 5G network coverage and capacity; (4)IT/Support Systems –upgrade of our IT and support systems, including investments to reinforce our cybersecurity platforms; and (5)Investments to support the growth of our corporate data and ICT businesses, including data centers. See also “- Contractual Obligations and Commercial Commitments.” We expect to fund incremental capital expenditures from internally generated funds and debt financing. We have adopted and implemented various operational enhancements to our policies, procedures and controls relating to our capital expenditure management processes, and we continue to review the same for any appropriate enhancements. Financing Requirements We believe that our available cash, including cash flows from operations, will provide sufficient liquidity to fund our projected operating, investment, capital expenditures and debt service requirements for the next 12 months and in the long-term. However, we may finance a portion of these costs from external sources if we consider it prudent to do so. See Note 27 – Financial Assets and Liabilities – Financial Risk Management Objectives and Policies to the accompanying consolidated financial statements in Item 18. “Financial Statements” for a detailed discussion on our financing requirements. Cash Flows from Operating Activities Our consolidated net cash flows provided by operating activities increased by Php17,007 million, or 21%, to Php98,738 million in 2025 from Php81,731 million in 2024 primarily due to lower level of settlement of accounts payable, higher level of collection of receivables and higher operating income, partially offset by higher pension and other employee benefits, and higher level of settlement of accrued expenses and other current liabilities. Our consolidated net cash flows provided by operating activities decreased by Php4,034 million, or 5%, to Php81,731 million in 2024 from Php85,765 million in 2023 primarily due to lower level of collection of receivables, higher level of settlement of accounts payable and accrued expenses and other current liabilities, and higher income taxes paid, partially offset by lower prepayments and higher operating income. Cash flows provided by operating activities of our Wireless business segment decreased by Php1,581 million, or 3%, to Php56,512 million in 2025 from Php58,093 million in 2024, primarily due to higher level of settlement of accrued expenses and other current liabilities and higher pension and other employee benefits, partially offset by lower level of settlement of accounts payable and higher level of collection of receivables. Cash flows provided by operating activities of our Fixed Line business segment increased by Php7,475 million, or 16%, to Php54,072 million in 2025 from Php46,597 million in 2024 primarily due to higher collection of receivables and lower level of settlement of accrued expenses and other current liabilities, partially offset by lower operating income. Cash flows used in operating activities of our Other business segment amounted to Php614 million in 2025 as against cash flows provided by operating activities of Php3,299 million in 2024 primarily due to higher level of settlement of accounts payable. Cash flows provided by operating activities of our Wireless business segment decreased by Php8,866 million, or 13%, to Php58,093 million in 2024 from Php66,959 million in 2023, primarily due to higher level of settlement of accounts payable, and accrued expenses and other current liabilities, and lower level of collection of receivables, partially offset by higher operating income and lower prepayments. Cash flows provided by operating activities of our Fixed Line business segment decreased by Php7,175 million, or 13%, to Php46,597 million in 2024 from Php53,772 million in 2023, primarily due to higher level of settlement of accounts payable, accrued expenses and other current liabilities, higher prepayments and lower level of collection of accounts receivables, partially offset by higher operating income. Cash flows provided by operating activities of our Other business segment amounted to Php3,299 million in 2024 as against cash flows used in operating activities of Php133 million in 2023, primarily due to higher level of collection of receivables and lower level of settlement of accounts payable. 72 Table of Contents Cash Flows Used in Investing Activities Our consolidated net cash flows used in investing activities amounted to Php60,979 million in 2025, a decrease of Php4,725 million, or 7%, from Php65,704 million in 2024, primarily due to the combined effects of the following: (1) lower payment for purchase of property and equipment, including capitalized interest, by Php5,393 million; (2) net proceeds from investments in associates and joint ventures of Php589 million in 2025 due to return of capital in investment in VTI and proceeds from disposal of AppCard Inc. shares, net of Smart’s additional investment in DFTI, as against payments for investments in associates and joint ventures of Php3,770 million in 2024, mainly PLDT’s respective investments in Radius and Kayana, PCEV’s additional investment in MIH and Smart's investment in DFTI; (3) lower proceeds from disposal of property and equipment by Php3,607 million, mainly lower proceeds from the sale and leaseback of telecom towers; (4) lower interest received by Php195 million; and (5) lower net proceeds from redemption of investment in debt securities by Php175 million. Our consolidated net cash flows used in investing activities amounted to Php65,704 million in 2024, an increase of Php10,586 million, or 19%, from Php55,118 million in 2023, primarily due to the combined effects of the following: (1) lower proceeds from disposal of property and equipment by Php19,144 million, mainly lower proceeds from the sale and leaseback of telecom towers; (2) higher payment for acquisition of investments in associates and joint ventures by Php2,134 million, mainly PLDT's respective investments in Radius and Kayana, PCEV's additional investment in MIH, and Smart’s investment in DFTI; (3) lower payment for purchase of property and equipment, including capitalized interest, by Php10,178 million; and (4) proceeds from redemption of investment in debt securities on Php200 million in 2024. Our consolidated payment for purchase of property and equipment, including capitalized interest, in 2025 totaled Php62,864 million, a decrease of Php5,393 million, or 8%, as compared with Php68,257 million in 2024. Smart’s payment for purchase of property and equipment, including capitalized interest, decreased by Php4,900 million, or 15%, to Php28,482 million in 2025 from Php33,382 million in 2024. PLDT’s payment for purchase of property and equipment, including capitalized interest, decreased by Php853 million, or 3%, to Php27,236 million in 2025 from Php28,089 million in 2024. The balance represents other subsidiaries’ capital spending. Our consolidated payment for purchase of property and equipment, including capitalized interest, in 2024 totaled Php68,257 million, a decrease of Php10,178 million, or 13%, as compared with Php78,435 million in 2023. Smart’s payment for purchase of property and equipment, including capitalized interest, decreased by Php8,701 million, or 21%, to Php33,382 million in 2024 from Php42,083 million in 2023. PLDT’s payment for purchase of property and equipment, including capitalized interest, decreased by Php4,727 million, or 14%, to Php28,089 million in 2024 from Php32,816 million in 2023. The balance represents other subsidiaries’ capital spending. As part of our growth strategy, we may from time to time, continue to make acquisitions and investments in companies or businesses. Cash Flows Used in Financing Activities On a consolidated basis, cash flows used in financing activities amounted to Php35,927 million in 2025, an increase of Php13,596 million, or 61%, from Php22,331 million in 2024, primarily due to the combined effects of the following: (1) higher payment of long-term debt by Php11,653 million; (2) higher interest paid by Php2,493 million; (3) higher settlement of obligations under capital lease by Php2,249 million; (4) settlements of derivative financial instruments of Php243 million in 2025 as against collections from derivative financial instruments of Php704 million in 2024; (5) lower proceeds from availment of long-term debt by Php850 million; and (6) payment for redemption of perpetual notes of Php4,200 million in 2024. On a consolidated basis, cash flows used in financing activities amounted to Php22,331 million in 2024, a decrease of Php17,087 million, or 43%, from Php39,418 million in 2023, primarily due to the combined effects of the following: (1) lower payment of long-term debt by Php10,552 million; (2) payment of short-term debt of Php10,000 million in 2023; (3) lower cash dividends paid by Php2,578 million; (4) collection from derivative financial instruments of Php704 million in 2024 as against settlement of Php607 million in 2023; (5) payment for redemption of perpetual notes of Php4,200 million in 2024; (6) higher settlement of obligations under lease liabilities by Php1,372 million; (7) higher interest paid by Php1,025 million; and (8) lower proceeds from availment of long-term debt by Php1,000 million. See Note 27 – Financial Assets and Liabilities – Financial Risk Management Objectives and Policies to the accompanying consolidated financial statements in Item 18. “Financial Statements” for a detailed discussion on our treasury policies and objectives in terms of the manner in which treasury activities are controlled. 73 Table of Contents Debt Financing Proceeds from availment of long-term and short-term debts for the year ended December 31, 2025 amounted to Php36,150 million and Php1,322 million, respectively, mainly from PLDT, Smart, Vitro and Multisys' drawings related to refinancing of maturing debt obligations and financing of capital expenditure requirements. Payments of principal on our long-term and short-term debts amounted to Php23,712 million and Php1,022 million, respectively, while payments of interest on our total debt amounted to Php13,223 million for the year ended December 31, 2025. Proceeds from availment of long-term debt for the year ended December 31, 2024 amounted to Php37,000 million mainly from PLDT, Smart and ePLDT’s drawings related to financing of capital expenditure requirements. Payments of principal on long-term debt amounted to Php12,059 million, while payments of interest on our total debt amounted to Php10,679 million for the year ended December 31, 2024. Proceeds from availment of long-term debt for the year ended December 31, 2023 amounted to Php38,000 million mainly from PLDT, Smart and ePLDT’s drawings related to financing of capital expenditure requirements. Payments of principal on long-term and short-term debts amounted to Php22,611 million and Php10,000 million, respectively, while payments of interest on our total debt amounted to Php9,596 million for the year ended December 31, 2023. Our consolidated long-term and short-term debts increased by Php13,462 million, or 5%, to Php295,048 million as at December 31, 2025 from Php281,586 million as at December 31, 2024 primarily due to drawings from our long-term facilities and the revaluation of foreign currency-denominated debt, partially offset by debt amortizations. As at December 31, 2025, PLDT’s long-term and short-term debt level increased by Php4,469 million, or 3%, to Php174,971 million from Php170,502 million as at December 31, 2024, Smart’s long-term and short-term debt level increased by Php3,654 million, or 4%, to Php107,147 million from Php103,493 million as at December 31, 2024, ePLDT's long-term debt level increased by Php5,039 million, or 66%, to Php12,630 million from Php7,591 million as at December 31, 2024, and Vitro's short-term debt of Php300 million as at December 31, 2025. Our consolidated long-term and short-term debts increased by Php26,788 million, or 11%, to Php281,586 million as at December 31, 2024 from Php254,798 million as at December 31, 2023 primarily due to drawings from our long-term facilities and the revaluation of foreign currency-denominated debt, partially offset by debt amortizations. As at December 31, 2024, PLDT’s long-term and short-term debt level increased by Php14,630 million, or 9%, to Php170,502 million from Php155,872 million as at December 31, 2023, Smart’s long-term and short-term debt level increased by Php9,531 million, or 10%, to Php103,493 million from Php93,962 million as at December 31, 2023, and Vitro's long-term debt level increased by Php2,627 million, or 53%, to Php7,591 million from Php4,964 million as at December 31, 2023. See Note 20 – Interest-bearing Financial Liabilities – Long-term Debt to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for a more detailed discussion of our long-term and short-term debts. Credit Ratings None of our existing indebtedness contains provisions under which credit rating downgrades would trigger a default, changes in applicable interest rates or other similar terms and conditions. As at February 25, 2026, PLDT maintained its investment grade credit ratings as follows: Rating Agency Credit Rating Moody’s Investors Service, or Moody’s Baa2 with stable outlook (most recently published on February 24, 2026) S&P Global (formerly Standard & Poor’s Ratings Services) BBB with stable outlook (most recently published on November 23, 2025) CRISP previously rated PLDT's retail peso bonds "AAA with stable outlook" and the credit rating agreement ended in 2024 following the full redemption of those bonds. Contractual Obligations and Commercial Commitments Various Trade and Other Obligations PLDT Group has various obligations to suppliers for the acquisition of phone and network equipment, contractors for services rendered on various projects, foreign administrations and domestic carriers for the access charges, shareholders for unpaid dividends distributions, employees for benefits and other related obligations, and various business and operational related agreements. Total obligations under these various agreements amounted to approximately Php116,304 million and Php133,811 million as at December 31, 2025 and 2024, respectively. See Note 22 – Accounts Payable and Note 23 – Accrued Expenses and Other Current Liabilities to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. 74 Table of Contents For a detailed discussion of our consolidated contractual undiscounted obligations as at December 31, 2025, see Note 27 – Financial Assets and Liabilities to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Commercial Commitments Major Network Vendors Significant commitment in respect of major network vendors, net of advances and deliveries, amounted to about Php19,700 million and Php15,900 million as at December 31, 2025 and 2024, respectively. Other Capital Expenditure Vendors Commitments related to non-major capital expenditure vendors, net of advances and deliveries, amounted to Php16,900 million and Php11,200 million as at December 31, 2025 and 2024, respectively. We have no outstanding commercial commitments, in the form of letters of credit, as at December 31, 2025 and 2024. C. Research and development, patents and licenses, etc. See Item 4. “Information on the Company – Business Overview – Intellectual Property Rights”. D. Trend Information Please refer to Item 5. “Operating and Financial Review and Prospects — A. Operating Results” for a discussion of the most recent trends in our services, sales and expenses. In addition, please refer to Item 3. “Key Information,” Item 4. “Information on the Company,” and Item 11. “Quantitative and Qualitative Disclosures About Market Risk” for a discussion of known trends, uncertainties, demands, commitments or events that we believe are reasonably likely to have a material effect on our net sales or revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future results of operations or financial conditions. E. Critical Accounting Estimates The preparation of our consolidated financial statements in conformity with IFRS Accounting Standards requires us to make judgments, estimates and assumptions that affect the reported amounts of our revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the end of each reporting period. The uncertainties inherent in these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets or liabilities affected in the future year. Judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Judgments, key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period are consistent with those applied in the most recent annual financial statements. Selected critical judgments and estimates applied in the preparation of the consolidated financial statements are discussed below: Judgments In the process of applying our accounting policies, management has made judgments, apart from those involving estimations which have the most significant effect on the amounts recognized in our consolidated financial statements. Revenue Recognition Identifying performance obligations We identify performance obligations by considering whether the promised goods or services in the contract are distinct goods or services. A good or service is distinct when the customer can benefit from the good or service on its own or together with other resources that are readily available to the customer and our promise to transfer the good or service to the customer is separately identifiable from the other promises in the contract. 75 Table of Contents Revenues earned from multiple-deliverable arrangements offered by our fixed line and wireless businesses are split into separate identifiable performance obligations based on their relative stand-alone selling price in order to reflect the substance of the transaction. The transaction price represents the best evidence of stand-alone selling price for the services we offer since this is the observable price we charge if our services are sold separately. We account for customer contracts in accordance with IFRS 15 and have concluded that the service (telecommunication service) and non-service components (handset or equipment) may be accounted for as separate performance obligations. The handset or equipment is delivered first, followed by the telecommunication service (which is provided over the contract/lock-in period of two to three years). Revenues attributable to the separate performance obligations are based on the allocation of the transaction price relative to the stand-alone selling price. Installation fees for voice and data services that are not custom-built for the subscribers are considered as a single performance obligation together with monthly service fees, recognized over the estimated average customer relationship period since the subscriber cannot benefit from the installation services on its own or together with other resources that are readily available to the subscriber. On the other hand, installation fees of data services that are custom-built for the subscribers are considered as a separate performance obligation and is recognized upon completion of the installation services. Activation fees for both voice and data services are also considered as a single performance obligation together with monthly service fees, recognized over the estimated average customer relationship period. Principal versus agent consideration We enter into contracts with our customers involving multiple deliverable arrangements. We determined that we control the goods before they are transferred to customers, and we can direct the use of the inventory. The following factors indicate that we control the goods before they are being transferred to customers: a)We are primarily responsible for fulfilling the promise to provide the specified equipment; b)We bear inventory risk on our inventory before it has been transferred to the customer; and c)We have discretion in establishing the prices for the other party’s goods or services and, therefore, the benefit that we can receive from those goods or services is not limited. It is incumbent upon us to establish the price of our services to be offered to our subscribers. Based on the foregoing, we are considered the principal in our contracts with other service providers except for certain VAS arrangements. We have a primary obligation to provide the services to the subscriber. Timing of revenue recognition We recognize revenues from contracts with customers over time or at a point in time depending on our evaluation of when the customer obtains control of the promised goods or services and based on the extent of progress towards completion of the performance obligation. For the telecommunication service which is provided over the contract period of two or more years, revenue is recognized monthly as we provide the service because control is transferred over time. For the device, which is sold at the inception of the contract, revenue is recognized at the time of delivery because control is transferred at a point in time. Identifying methods for measuring progress of revenue recognized over time We determine the appropriate method of measuring progress which is either using input or output methods. Input method recognizes revenue based on the entity’s efforts or inputs to the satisfaction of a performance obligation while output method recognizes revenue based on direct measurements of the value to the customer of the goods or services transferred to date. Revenue from telecommunication services is recognized using input method wherein recognition is over time based on the customer subscription period since the customer simultaneously receives and consumes the benefits as the seller renders the services. Significant financing component We concluded that the handset component included in contracts with customers has a significant financing component considering the period between the time of the transfer of control over the handset and the customer’s payment of the price of the handset, which is more than one year. In determining the interest to be applied to the amount of consideration, we concluded that the interest rate is the market interest rate adjusted with credit spread to reflect the customer credit risk that is commensurate with the rate that would be reflected in a separate financing transaction between us and our customer at contract inception. 76 Table of Contents Estimation of stand-alone selling price We assessed that the service and non-service components represent separate performance obligations. Thus, the amount of revenues should be recognized based on the allocation of the transaction price to the different performance obligations based on their stand-alone selling prices. The stand-alone selling price is the price at which we sell the goods or services separately to a customer. However, if goods or services are not currently offered separately, we use the adjusted market or cost-plus margin method to determine the stand-alone selling price to be used in the revenue allocation. Financial Instruments Evaluation of business models in managing financial instruments We determine our business model at the level that best reflects how we manage groups of financial assets to achieve our business objectives. Our business model is not assessed on an instrument-by-instrument basis, but on a higher level of aggregated portfolios and is based on observable factors such as: a.How the performance of the business model and the financial assets held within that business model are evaluated and reported to the entity’s key management personnel; 2.The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way those risks are managed; and 3.The expected frequency, value and timing of sales are also important aspects of our assessment. The business model assessment is based on reasonably expected scenarios without taking ‘worst case’ or ‘stress case’ scenarios into account. If cash flows after initial recognition are realized in a way that is different from our original expectations, we do not change the classification of the remaining financial assets held in that business model but incorporates such information when assessing newly originated or newly purchased financial assets going forward. We have determined that for cash and cash equivalents, short-term investments, investment in debt securities and other long-term investments, and trade and other receivables, the business model is to collect the contractual cash flows until maturity. IFRS 9, however, emphasizes that if more than an infrequent number of sales are made out of a portfolio and those sales are more than insignificant in value, of financial assets carried at amortized cost, we should assess whether and how such sales are consistent with the objective of collecting contractual cash flows. Definition of default and credit-impaired financial assets We define a financial instrument as in default, which is fully aligned with the definition of credit-impaired, when it meets one or more of the following criteria: •Quantitative criteria For trade receivables and all other financial assets subject to impairment, default occurs when the receivable becomes 90 days past due, except for trade receivables from corporate subscribers, which are determined to be in default when the receivables become 120 days past due. •Qualitative criteria The counterparty meets unlikeliness to pay criteria, which indicates the counterparty is in significant financial difficulty. These are instances where: 1.The counterparty is experiencing financial difficulty or is insolvent; 2.The counterparty is in breach of financial covenant(s); 3.An active market for that financial asset has disappeared because of financial difficulties; 4.Concessions have been granted by us, for economic or contractual reasons relating to the counterparty’s financial difficulty; 5.It is becoming probable that the counterparty will enter bankruptcy or other financial reorganization; and 6.Financial assets are purchased or originated at a deep discount that reflects the credit losses incurred. The criteria above have been applied to all financial instruments, except FVPL, held by us and are consistent with the definition of default used for internal credit risk management purposes. The default definition has been applied consistently to the ECL models throughout our expected loss calculation. 77 Table of Contents Significant increase in credit risk At each reporting date, we assess whether there has been a significant increase in credit risk for financial assets since initial recognition by comparing the risk of default occurring over the expected life between the reporting date and the date of initial recognition. We consider reasonable and supportable information that is relevant and available without undue cost or effort for this purpose. This includes quantitative and qualitative information and forward-looking analysis. An exposure will migrate through the ECL stages as asset quality deteriorates. If, in a subsequent period, asset quality improves and also reverses any previously assessed significant increase in credit risk since origination, then the loss allowance measurement reverts from lifetime ECL to 12-month ECL. Using our judgment and, where possible, relevant historical experience, we may determine that an exposure has undergone a significant increase in credit risk based on particular qualitative indicators that we consider are indicative of such and whose effect may not otherwise be fully reflected in its quantitative analysis on a timely basis. As a backstop, we consider that a significant increase in credit risk occurs no later than when an asset is more than 30 days past due. Days past due are determined by counting the number of days since the earliest due date elapsed in respect of which full payment has not been received. Due dates are determined without considering any grace period that might be available to the counterparty. Exposures that have not deteriorated significantly since their origination, or where the deterioration remains within our investment grade criteria, or which are less than 30 days past due, are considered to have a low credit risk. The provision for credit losses for these financial assets is based on a 12-month ECL. The low credit risk exemption has been applied on debt investments that meet the investment grade criteria of the PLDT Group. Determining the lease term of contracts with renewal and termination options – Company as a Lessee We apply a single recognition and measurement approach for all leases, except for short-term leases and leases of ‘low-value’ assets. See Section Leases for the accounting policy. We determine the lease term as the non-cancellable term of the lease, together with any period covered by an option to extend the lease if it is reasonably certain to be exercised, or any period covered by an option to terminate the lease, if it is reasonably certain not to be exercised. We, as the lessee, have the option under some of our lease agreements to lease the assets for additional terms. We apply judgment in evaluating whether it is reasonably certain to exercise the option to renew. That is, we consider all relevant factors that create an economic incentive for us to exercise the renewal. After the commencement date, we reassess the lease term if there is a significant event or change in circumstances that is within our control and affects our ability to exercise or not to exercise the option to renew or to terminate (e.g., a change in business strategy). We included the renewal period as part of the lease term for leases such as sites, leased circuits and poles due to the significance of these assets to our operations. These leases have a non-cancellable period (i.e., one to 30 years) and there will be a significant negative effect on our provision of services if a replacement is not readily available. Furthermore, the periods covered by termination options are included as part of the lease term only when they are reasonably certain not to be exercised. See Note 10 – Leases to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for information on potential future payments relating to periods following the exercise date of extension and termination options that are not included in the lease term. Sale and Leaseback of Telecom Towers The accounting for sale and leaseback transaction depends on whether the transfer of the asset qualifies as a sale. We applied judgment to determine whether the transfer of asset is accounted for as a sale based on the requirements for determining when a performance obligation is satisfied in IFRS 15. We also applied estimates and judgment in determining many aspects, among others, the passive telecom assets and land lease as unit of accounts, the fair value of the towers sold, the measurement of the ROU assets retained by us and determining an appropriate discount rate to calculate the present value of the minimum lease payments. Assets classified as held-for-sale The criteria for held-for-sale classification are regarded as met only when the sale is highly probable, and the asset is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. 78 Table of Contents Smart and DMPI entered into sale and purchase agreements with certain tower companies in connection with the sale of telecom towers and related passive telecom infrastructure. The closing of the agreements is on a staggered basis depending on the satisfaction of closing conditions based on the number of towers transferred. Following the completion of the initial transaction with tower companies, Smart and DMPI plan to proceed with the sale of additional telecom towers and related passive infrastructure within a year. With these agreements, we believe that certain conditions were met that qualified the related assets to be reclassified as held-for-sale. See related discussion in Note 9 – Property and Equipment and Note 10 – Leases to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Accounting for investments in MediaQuest Holdings, Inc., or MediaQuest, through Philippine Depositary Receipts, or PDRs ePLDT made various investments in PDRs issued by MediaQuest in relation to its direct interest in Satventures, Inc., or Satventures, and indirect interest in Cignal TV, Inc., or Cignal TV. Based on our judgment, at the PLDT Group level, ePLDT’s investments in PDRs gives ePLDT a significant influence over Satventures and Cignal TV as evidenced by provision of essential technical information and material transactions among PLDT, Smart, Satventures and Cignal TV, and thus are accounted for as investments in associates using the equity method. See related discussion in Note 11 – Investments in Associates and Joint Ventures – Investments in Associates – Investment of ePLDT in MediaQuest PDRs to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Accounting for investment of PCEV in Maya Bank, Inc., or Maya Bank The shareholders’ agreement of Voyager Finserve Corporation, or VFC, and Paymaya Finserve Corporation, or PFC, (collectively known as the Bank HoldCos) requires affirmative vote of at least one director nominated by both PCEV and MIH to direct the relevant activities of the Bank HoldCos. The Bank HoldCos were incorporated for the sole purpose of holding shares or equity investments in Maya Bank. Because of the contractual arrangement between the parties, the investments in the Bank HoldCos are accounted for as joint venture. Accounting for investments in Vega Telecom Inc., or VTI, Bow Arken Holdings Company, or Bow Arken, and Brightshare Holdings, Inc., or Brightshare PLDT acquired a 50% equity interest in each of VTI, Bow Arken and Brightshare on May 30, 2016. Based on the Memorandum of Agreement, PLDT and Globe Telecom, Inc., or Globe, each has the right to appoint half the members of the Board of Directors of each of VTI, Bow Arken and Brightshare, as well as the (i) co-Chairman of the Board; (ii) co-Chief Executive Officer and President; and (iii) co-Controller where any matter requiring their approval shall be deemed passed or approved if the consents of both co-officers holding the same position are obtained. All decisions of each Board of Directors may only be approved if at least one director nominated by each of PLDT and Globe votes in favor of it. Based on these rights, PLDT and Globe have joint control over VTI, Bow Arken and Brightshare, which is defined in IFRS 11, Joint Arrangements, as a contractually agreed sharing of control of an arrangement and exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Consequently, PLDT and Globe classified the joint arrangement as a joint venture in accordance with IFRS 11 given that PLDT and Globe each has the right to 50% of the net assets of VTI, Bow Arken and Brightshare and their respective subsidiaries. Accordingly, PLDT accounted for the investment in VTI, Bow Arken and Brightshare using the equity method of accounting in accordance with IAS 28. Under the equity method of accounting, the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in the investor’s share of the investee’s net assets. See Note 11 – Investments in Associates and Joint Ventures – Investment in Joint Ventures – Investments of PLDT in VTI, Bow Arken and Brightshare to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Material partly-owned subsidiaries Our consolidated financial statements include additional information about subsidiaries that have non-controlling interest, or NCI, that are material to us. See Note 6 – Components of Other Comprehensive Loss to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. We determined material partly-owned subsidiaries as those with balance of NCI greater than 5% of the total equity as at December 31, 2025 and 2024. 79 Table of Contents Material associates and joint ventures Our consolidated financial statements include additional information about associates and joint ventures that are material to us. See Note 11 – Investments in Associates and Joint Ventures to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. We determined material associates and joint ventures are those investees where our carrying amount of investments is greater than 5% of the total investments in associates and joint ventures as at December 31, 2025 and 2024. Determining Taxable Profit, Tax Bases, Unused Tax Losses, Unused Tax Credits and Tax Rates We assess whether we have any uncertain tax position and apply significant judgment in identifying uncertainties over our income tax treatments. We determined based on our assessment that it is probable that our income tax treatments (including those for the subsidiaries) will be accepted by the taxation authorities. Estimates and Assumptions The key estimates and assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities recognized in our consolidated financial statements within the next financial year are discussed below. We based our estimates and assumptions on parameters available when our consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond our control. Such changes are reflected in the assumptions when they occur. Subscriber contract costs Subscriber contract costs are costs to obtain (i.e., commissions) and costs to fulfill (i.e., installation and CPE costs) in relation to the services we provide to our subscribers. We assessed that these subscriber contract costs are incremental in obtaining and fulfilling our performance obligations. Accordingly, we capitalized subscriber contract costs and amortized as expense over the average customer relationship period. We apply judgment to estimate the amortization period of subscriber contract costs. As at December 31, 2025 and 2024, the estimated useful lives of the subscriber contract costs would range from six to seven years. Further details on subscriber contract costs are disclosed in Note 18 – Prepayments and Other Non-Financial Assets to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Leases – Estimating the incremental borrowing rate, or IBR In calculating the present value of lease payments, we use the IBR at the lease commencement date if the interest rate implicit in the lease is not readily determinable. IBR is the rate of interest that a lessee would have to pay to borrow over a similar term, similar security, the funds necessary to obtain an asset of a similar value to the ROU asset in a similar economic environment. We use benchmark rates from partner banks based on the tenor of our loan borrowings plus a spread adjustment based on our credit worthiness. See Note 10 – Leases to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Impairment of non-financial assets IAS 36 requires that an impairment review be performed when certain impairment indicators are present. In the case of goodwill and intangible assets with indefinite useful life, at a minimum, such assets are subject to an impairment test annually and whenever there is an indication that such assets may be impaired. This requires an estimation of the VIU of the CGUs to which these assets are allocated. The VIU calculation requires us to make an estimate of the expected future cash flows from the CGU and to choose a suitable discount rate in order to calculate the present value of those cash flows. See Note 14 – Goodwill and Intangible Assets – Impairment Testing of Goodwill to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for the key assumptions used to determine the VIU of the relevant CGUs. Determining the recoverable amount of property and equipment, ROU assets, investments in associates and joint ventures, goodwill and intangible assets, prepayments and other noncurrent assets, requires us to make estimates and assumptions in the determination of future cash flows expected to be generated from the continued use and ultimate disposition of such assets. Future events could cause us to conclude that property and equipment, ROU assets, investments in associates and joint 80 Table of Contents ventures, goodwill and intangible assets, and prepayments and other noncurrent assets associated with an acquired business are impaired. Any resulting impairment loss could have a material adverse impact on our financial position and financial performance. The preparation of estimated future cash flows involves significant estimations and assumptions of future market conditions. While we believe that our assumptions are appropriate and reasonable, significant changes in our assumptions may materially affect our assessment of recoverable values and may lead to future impairment charges. See Note 4 – Operating Segment Information, Note 5 – Income and Expenses – Asset Impairment, and Note 9 – Property and Equipment to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. The carrying values of our property and equipment, ROU assets, investments in associates and joint ventures, goodwill and intangible assets, and prepayments and other non-financial assets are separately disclosed in Note 9 – Property and Equipment, Note 10 – Leases, Note 11 – Investments in Associates and Joint Ventures, Note 14 – Goodwill and Intangible Assets and Note 18 – Prepayments and Other Non-Financial Assets, respectively, to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Estimating useful lives of property and equipment We estimate the useful lives of each item of our property and equipment based on the periods over which our assets are expected to be available for use. Our estimation of the useful lives of our property and equipment is also based on our collective assessment of industry practice, internal technical evaluation and experience with similar assets. The estimated useful lives of each asset are reviewed at least every year-end and updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limitations on the use of our assets. It is possible, however, that future results of operations could be materially affected by changes in our estimates brought about by changes in the factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of our property and equipment would increase our recorded depreciation and decrease the carrying amount of our property and equipment. In 2023, PLDT and Smart increased the EUL of Information Technology assets and general computers and peripherals, due to technological advancement allowing extended warranty and Maintenance Agreement. Smart increased the EUL of Self-Supporting Towers due to cost-effective structure which allows future expansion and upgrades of mounting antennas and is designed for durability and resistance to withstand the elements, hence extending the vendor's warranty. Had the affected assets been depreciated using the original EUL, the depreciation would have been higher by Php934 million for the year 2023. In 2024, the PLDT Group launched further initiatives to continuously modernize its property and equipment to enhance operational efficiencies. On this basis, the Group reassessed the EUL of certain assets, including among others, certain legacy network systems replaced by Transport Network Transformation (TNT) and Core Transformation, Operations Support Systems and Optical Line and Terminal Access equipment. As a result of changes in accounting estimates, the PLDT Group recognized additional depreciation expense of Php5,686 million in the income statement for the year ended December 31, 2024. In 2025, based on the internal technical evaluation and assessment of industry practice, PLDT reassessed the EUL of International and Domestic submarine cable systems from 15 years to 25 years, resulting in a reduction in depreciation expense amounting to Php748 million for the year ended December 31, 2025. Conversely, the EUL of certain submarine network cables decreased due to aging and performance issues, resulting in additional depreciation expense of Php237 million. PLDT and Smart also recognized additional depreciation expense amounting to Php744 million and Php5,560 million respectively, in 2025, due to modernization of core network equipment and IT assets. In addition, Smart recognized additional depreciation expense of Php215 million upon the expiration of its lease during the year and the consequent termination of use of and move out from the related office premises. Overall, the total depreciation and amortization of property and equipment from continuing operations amounted to Php41,881 million, Php41,224 million and Php51,543 million for the years ended December 31, 2025, 2024 and 2023, respectively, while that from discontinued operations amounted to nil for the years ended December 31, 2025 and 2024, and Php2 million for the year ended December 31, 2023. Total carrying values of property and equipment, net of accumulated depreciation and amortization, amounted to Php327,989 million and Php318,069 million as at December 31, 2025 and 2024, respectively. See Note 4 – Operating Segment Information and Note 9 – Property and Equipment to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Investment Properties We carry our investment properties at fair value, with changes in fair value being recognized in the consolidated income statements and in other comprehensive income for transfers from owner-occupied property to investment property. The fair 81 Table of Contents values of the investment properties have been determined based on appraisal performed by independent firms of appraisers, industry specialists in valuing these types of investment properties. The valuation for land is based on a market approach valuation technique while the valuation for building and land improvements is based on a cost approach valuation technique using current material and labor costs for improvements based on external and independent reviewers. See Note 13 – Investment Properties to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Recognition of deferred income tax assets We review the carrying amounts of deferred income tax assets at the end of each reporting period and reduce these to the extent that these are no longer probable that sufficient taxable income will be available to allow all or part of the deferred income tax assets to be utilized. Our assessment on the recognition of deferred income tax assets on deductible temporary differences is based on the level and timing of forecasted taxable income of the subsequent reporting years. This forecast is based on our past results and future expectations on revenues and expenses as well as future tax planning strategies. Based on this, management expects that we will generate sufficient taxable income to allow all or part of our deferred income tax assets to be utilized. Based on the above assessment, our consolidated unrecognized deferred income tax assets amounted to Php934 million and Php803 million as at December 31, 2025 and 2024, respectively. Total consolidated provision for deferred income tax amounted to Php3,710 million, Php3,401 million and Php1,206 million for the years ended December 31, 2025, 2024 and 2023, respectively. Total consolidated recognized net deferred income tax assets amounted to Php11,582 million and Php14,643 million as at December 31, 2025 and 2024, respectively. See Note 4 – Operating Segment Information and Note 7 – Income Taxes to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Estimating allowance for ECLs a)Measurement of ECLs ECLs are derived from unbiased and probability-weighted estimates of expected loss, and are measured as follows: •Financial assets that are not credit-impaired at the reporting date: as the present value of all cash shortfalls over the expected life of the financial asset discounted by the EIR. The cash shortfall is the difference between the cash flows due to us in accordance with the contract and the cash flows that we expect to receive; and •Financial assets that are credit-impaired at the reporting date: as the difference between the gross carrying amount and the present value of estimated future cash flows discounted by the EIR. We leverage existing risk management indicators (e.g., internal credit risk classification and restructuring triggers), credit risk rating changes and reasonable and supportable information which allow us to identify whether the credit risk of financial assets has significantly increased. b)Inputs, assumptions and estimation techniques •General approach for cash and cash equivalents, short-term investments, debt securities, and advances and other noncurrent assets The ECL is measured on either a 12-month or lifetime basis depending on whether a significant increase in credit risk has occurred since initial recognition. We consider the probability of our counterparty to default on its obligation and the expected loss at default after considering the effects of collateral, any potential value when realized and time value of money. Based on our assessment, there is no significant increase in credit risk and the ECL for these financial assets under a general approach is measured on a 12-month basis. The assumptions underlying the ECL calculation are monitored and reviewed on a quarterly basis. •Simplified approach for trade and other receivables and contract assets The simplified approach does not require the tracking of changes in credit risk but instead requires the recognition of lifetime ECL. For trade receivables and contract assets, we use the simplified approach for calculating ECL. We have considered similarities in underlying credit risk characteristics and behavior in determining the groupings of various customer segments. We used historically observed default rates and adjusted these historical credit loss experiences with forward-looking information. At every reporting date, the historical default rates are updated and changes in the forward-looking estimates are analyzed. 82 Table of Contents There have been no significant changes in the estimation techniques used for calculating ECL on trade and other receivables and contract assets. •Incorporation of forward-looking information We incorporated forward-looking information into both our assessment of whether the credit risk of an instrument has increased significantly since its initial recognition and our measurement of ECL. To do this, management considered a range of relevant forward-looking macroeconomic assumptions and probability weights for the determination of unbiased general industry adjustments and any related specific industry adjustments that support the calculation of ECLs. The macroeconomic factors are aligned with information used by us for other purposes such as strategic planning and budgeting. The probability weights used in the calculation of ECLs cover a range of possible outcomes based on the current and projected economic conditions. We have identified and documented key drivers of credit risk and credit losses of each portfolio of financial instruments and, using an analysis of historical data, has estimated relationships between macroeconomic variables and credit risk and credit losses. Predicted relationship between the key indicators and default and loss rates on various portfolios of financial assets have been developed based on analyzing historical data over the past three to eight years. The methodologies and assumptions, including any forecasts of future economic conditions are reviewed regularly. Due to lack of reasonable and supportable information, we have not identified any uncertain event that was assessed to be relevant to the risk of default occurring, thus we are not able to estimate the impact on ECL. Total provision for expected credit losses for trade and other receivables from continuing operations amounted to Php3,838 million, Php3,875 million and Php4,119 million for the years ended December 31, 2025, 2024 and 2023, respectively, while that from discontinued operations amounted to nil for the years ended December 31, 2025 and 2024, and Php4 million for the year ended December 31, 2023. Trade and other receivables, net of allowance for expected credit losses, amounted to Php31,367 million and Php31,612 million as at December 31, 2025 and 2024, respectively. See Note 5 – Income and Expenses and Note 16 – Trade and Other Receivables to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Total impairment losses on contract assets amounted to Php101 million, Php181 million and Php224 million for the years ended December 31, 2025, 2024 and 2023, respectively. Contract assets, net of allowance for expected credit losses, amounted to Php1,487 million and Php1,886 million as at December 31, 2025 and 2024, respectively. See Note 5 – Income and Expenses – Contract Balances to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. •Grouping of instruments for losses measured on collective basis A broad range of forward-looking information was considered as economic inputs such as the gross domestic product, or GDP, inflation rate, unemployment rates, export rates, The Group of Twenty, or G20 GDP and G20 inflation rates. For expected credit loss provisions modelled on a collective basis, grouping of exposures is performed on the basis of shared risk characteristics, such that risk exposures within a group are homogeneous. In performing this grouping, there must be sufficient information for the PLDT Group to be statistically acceptable. Where sufficient information is not available internally, then we have considered benchmarking internal/external supplementary data to use for modelling purposes. The characteristics and any supplementary data used to determine groupings are outlined below. Trade receivables – Groupings for collective measurement a)Retail subscribers; b)Corporate subscribers; c)Foreign administrations and domestic carriers; and d)Dealers, agents and others. The following credit exposures are assessed individually: •All stage 3 assets, regardless of the class of financial assets; and •The cash and cash equivalents, short term investments, investment in debt securities and other financial assets. 83 Table of Contents Estimating pension benefit costs and other employee benefits The cost of defined benefit and present value of the pension obligation are determined using the projected unit credit method. An actuarial valuation includes making various assumptions which consist, among other things, discount rates, rates of compensation increases and mortality rates. Further, our accrued benefit cost is affected by the fair value of the plan assets. Key assumptions used to estimate fair value of the unlisted equity investments included in the plan assets consist of revenue growth rate, direct costs, capital expenditures, discount rates and terminal growth rates. See Note 25 – Pension and Other Employee Benefits. Due to complexity of valuation, the underlying assumptions and its long-term nature, a defined benefit obligation is highly sensitive to changes in assumptions. While we believe that our assumptions are reasonable and appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our cost for pension and other retirement obligations. All assumptions are reviewed every year-end. The net consolidated pension benefit costs amounted to Php1,434 million, Php1,441 million and Php1,426 million for the years ended December 31, 2025, 2024 and 2023, respectively. The prepaid benefit costs amounted to Php810 million and Php975 million as at December 31, 2025 and 2024, respectively. The accrued benefit costs amounted to Php3,810 million and Php3,548 million as at December 31, 2025 and 2024, respectively. See Note 5 – Income and Expenses – Compensation and Employee Benefits, Note 18 – Prepayments and Note 25 – Pension and Other Employee Benefits to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Long-term Incentive Plan, LTIP The Executive Compensation Committee (ECC) of the PLDT Board of Directors approved the LTIP covering the years 2022 to 2026, on December 23, 2021. It covers two cycles and is intended to provide incentive compensation in the form of cash to key officers, executives and other eligible participants who are consistent performers, compliant with codes of conduct and contributors to our strategic and financial goals, with defined metrics based on the achievement of telco core income, customer experience and sustainability. The target metrics for sustainability are expected to capture the Company’s performance in various ESG materiality areas, including but not limited to, climate action such as initiatives to reduce energy consumption and greenhouse gas (GHG) emissions, employee and customer welfare, diversity and inclusion, cybersecurity and data privacy, and business ethics. Cycle 1 covered the performance period from 2022 to 2024 and was settled in 2025 based on the achievement of performance targets. Cycle 2, which is intended to cover the performance period from 2025 to 2026, is still subject to the ECC’s evaluation. Accordingly, the expense accrued for the LTIP for the year ended December 31, 2025 amounted to nil. The expense accrued for the years ended December 31, 2024 and 2023 amounted to Php1,136 million and Php839 million, respectively. The accrued incentive payable amounted to nil and Php3,406 million as at December 31, 2025 and 2024, respectively. See Note 5 – Income and Expenses – Compensation and Employee Benefits and Note 25 – Pension and Other Employee Benefits – Other Long-term Employee Benefits to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Provision for asset retirement obligations Provision for asset retirement obligations is recognized in the period in which this is incurred if a reasonable estimate can be made. This requires an estimation of the cost to restore or dismantle on a per square meter basis, depending on the location, and is based on the best estimate of the expenditure required to settle the obligation at the future restoration or dismantlement date, discounted using a pre-tax rate that reflects the current market assessment of the time value of money and, where appropriate, the risk specific to the liability. Total provision for asset retirement obligations amounted to Php1,836 million and Php1,752 million as at December 31, 2025 and 2024, respectively. See Note 21 – Deferred Credits and Other Noncurrent Liabilities to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Provision for legal contingencies and tax assessments We are currently involved in various legal proceedings and tax assessments. Our estimates of the probable costs for the resolution of these claims have been developed in consultation with our counsel handling the defense in these matters and are based upon our analysis of potential results. Based on management’s assessment, appropriate provisions were made. We currently do not believe these proceedings could materially reduce our revenues and profitability. It is possible, however, that future financial position and performance could be materially affected by changes in our estimates or the effectiveness of our strategies relating to these proceedings and assessments. See Note 26 – Provisions and Contingencies to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Determination of fair values of financial assets and financial liabilities When the fair value of financial assets and financial liabilities recorded in our consolidated statements of financial position cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash flows model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as 84 Table of Contents liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Other than those whose carrying amounts are reasonable approximations of fair values, total fair values of noncurrent financial assets and noncurrent financial liabilities as at December 31, 2025 amounted to Php3,322 million and Php274,220 million, respectively, while the total fair values of noncurrent financial assets and noncurrent financial liabilities as at December 31, 2024 amounted to Php3,079 million and Php247,962 million, respectively. See Note 27 – Financial Assets and Liabilities to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Amended Accounting Standards and Interpretations to Existing Standards Effective Subsequent to December 31, 2025 See Note 2 – Summary of Material Accounting Policies to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for the discussion of new accounting standards that will become effective subsequent to December 31, 2025 and their anticipated impact on our consolidated financial statements for the current and future periods. 85 Table of Contents