CONVERGE 2022 Annual Report

Converge Annual Report 2022
About the Theme:

Championing
Digital Democracy
The 2022 Annual Report theme, “Championing Digital Democracy,”
encapsulates what the Converge ICT Solutions Inc. (Converge or the
Company) has been doing since its inception: to enable Filipinos to
win in technological advancement and life. Converge aims to create a
playing field where no one is left behind.
The pandemic has given Converge an impetus to grow faster and

become stronger. The negative impacts of this event can be felt the
world over, with a significant impact on the economy. What could have
put Converge down gave the company a head start.
By the close of 2022, Converge has expanded its domestic network

- deploying over two million ports in Luzon, Visayas, and Mindanao,
and covering 56% of the Philippines’ total household population. It has
extended its fiber footprint to more than 618,000 kilometers, consisting
of subsea, aerial, and terrestrial fiber optic cable networks nationwide.
Being the country’s only pure end-to-end fiber broadband provider,
Converge has received recognition from local and international
award-giving bodies for improving the country’s overall broadband
connectivity.
Championing Digital Democracy
Providing high-speed broadband connection and affordable services

and products, the aim of Converge to normalize digitalization is slowly
becoming a reality. The year 2022 has seen Converge at the forefront
of advocating digital democracy and concretizing its commitment to
empowering and connecting all Filipinos.
2
Table of Contents
02 About the Theme: Championing Digital Democracy 38 Championing Breakthroughs:
04 Your Team: Corporate Overview Enterprise and Wholesale
41 Timeout: Wilcon Depot pushes for

06 #WeAreCNVRG: Vision, Mission, Values
post-crisis growth
16 Top Moments: 30 Years of Pushing Boundaries
43 Championing People-Centric
18 Season Highlights: Milestones Technological Expansion
22 Message from the Chairman 45 Championing Digital Transformation
24 Message from the CEO 47 Hall of Fame
26 Message from the President 47 Awards
49 Partnerships
28 Season Recap: Financial and Operational Highlights
30 Championing Connections in Every Home: 50 Risk Management
Residential Business 58 Corporate Governance
33 Timeout: Apart But Not Alone 64 Board of Directors
35 Timeout: The Converge FiberXers
71 Key Officers

36 Championing Every Rebound: SME Business
78 Financial Statements
37 Timeout: Coffee-car wash biz makes waves in Bohol
3
Corporate Overview:
Converge at a Glance
Today, Converge Information and Communications Technology Solutions, offers high-speed fixed broadband internet services, private data
Inc. is the Philippines’ only pure-play high-speed fixed broadband network solutions, cloud and colocation services and other connectivity
provider with industry-leading optical fiber-based connectivity services. solutions to enterprise customers of varying sizes, industries and types.
Converge is driven to improve the lives of customers and the community The technological and network investments of Converge, aligned with
by providing them access to advanced network technologies and the environmental, social, and governance practices, aim to create
services that connect people and the world. The Company’s long- positive impacts wherever the people are, from the remotest
standing vision is to provide reliable, affordable, and fair connectivity. of communities to the most urbanized cities in the country, to benefit
all stakeholders.
Converge operates two businesses: residential and enterprise.
Residential business, which primarily offers high-speed fixed broadband
internet services to residential customers and enterprise business, which
14.9 Million
More than 30 years 56% Household A publicly traded Homes Passed
of group operations Coverage as of 2022. company under
Three years ahead stock name - CNVRG
of the original target
of 55% household
40,000 coverage by 2025.
The biggest and
continuously expanding
Business Customer
international network in the
country with participation Established
in the Bifrost Cable System international
presence with
4,500 and the South-East Asia
Converge ICT
employees Hainan-Hongkong Express
Cable System (SEA-H2X), to Singapore Pte.
1.92 come online in 2024 Ltd. (Converge

SG)
Million
Residential 618,762
Customers Kilometers
Total Fiber Assets
Points-of-presence in
as of FY 2022 7.9 Million Singapore,
million ports
deployed as of Hong Kong, Taiwan,
end-2022 Japan, and the USA.
4
Corporate Structure
(Conglomerate map as of 19 October 2022)
PENTASTAR
HOLDING CO. INC.
100% 100%
KGU PYRITE HOLDING CO., INC. PACIFIC KABELNET HOLDING CO. INC.
100%
COMCLARK NETWORK &

TECHNOLOGY CORP.
PUBLIC OTHERS
OWNERSHIP 66% (Non-Public Ownership)
31% 3%
CONVERGE INFORMATION AND

COMMUNICATIONS TECHNLOGY
SOLUTIONS INC.
100% 99% 60% 100%
CONVERGE ICT SOLUTIONS PENTAGON HOLDING CO. INC. ASIA NETCOM PHILIPPINES CONVERGE ICT
(GLOBAL) LIMITED (Formerly Pentagon Real SINGAPORE PTE. LTD.
(Incorporated in Hong Kong) Properties Unlimited, Inc.) CORPORATION (Incorporated in Singapore)

100% 20%
40%
METROWORKS ICT TELSTRA CONVERGE INC.
CONSTRUCTION INC. (Formerly Digitel Crossing, Inc.)
100%
MYRIAD ICT SERVICES, INC.
5
6
Championing Digital Democracy Converge Annual Report 2022
#WeareCNVRG:
Our Winning Mindset
We have always been clear on who we are working for. Deeply embedded in our organization is our genuine concern for every
Filipino and our determination to “leave no one behind.” This propels us to excel in everything we plan, design, innovate, and
implement.
Empowering people, businesses, and the nation through technology will always be our driving force. Our commitment to people
and communities inside and outside our organization is what sets us apart.
We are CNVRG. This is how we make a difference.
Vision
To be a world-class Information and Communications Technology organization that empowers people, businesses, and the nation
to be their best
Mission
Delighting our customers by taking care of our own.

7
Our Values
We live by these CORE VALUES as we continue to serve
the unserved and underserved.
Integrity
We do the right thing. All the time. Period.
Even when it’s hard, or inconvenient, and no one is looking.

We do what’s right not just for ourselves, but for the
customers we serve.
8
Customer Focus
Every customer counts.
We are here because of them. Our reason for being is to

serve them. We are fanatical over their needs, and strive to
give them their wants.

9
Velocity
We get things done. No excuses.
Speed, agility, and timing. We constantly exceed

expectations and adapt to the dynamic transformation
of our fast-paced world. Urgency is our normal.
10
Teamwork
We move forward faster
when we act as one.
We strive to listen to every idea. That’s how

we arrive at the best decisions. Together, our
unique strengths create an advantage that
upholds our vision and mission to be the best.

11
Empowerment
We create rockstars among our ranks.
We nurture, support, and reward our people for

them to reach their full potential. We recognize the
power of technology and use it to improve the lives
of our people and help build the nation.
12
Excellence
We outperform. Disruption is in our blood.
And when our back is against the wall, we push harder

and fight. To Experience Better is not a tagline. It is our
obsession. Our trophy: digital democracy for the country.

13
14
History:
30 Years of Pushing Boundaries
Converge ICT Solutions Inc. was born in Angeles, Pampanga, the Converge has been steadily building its reputation in delivering
country’s northern province where the US military facility, Clark Air world-class broadband connectivity without breaking the Filipino’s
Base, used to be. It is now used as a free port and special economic pocket. The Company’s steady growth continued well into the global
zone after the facility was returned to the Philippine government in pandemic in 2020 when there was sky-high demand for connectivity.
November 1991. Consequently, it debuted on the Philippine Stock Exchange, that year.
In 1992, ComClark Network and Technology Corporation (ComClark) - Forging towards the global arena and never resting on its laurels,
the parent company of Converge - served as the province’s information Converge continues to create history by bringing the country’s digital
and communications technology solutions provider for residential and infrastructure to the fore. In 2021, with an investment cost of over
commercial establishments. PhP6 billion, the Company was able to complete its domestic subsea
cable project - connecting all the major island groups of the country
It was in 1996 that ComClark’s growth became imminent, extending its supported by 20 landing stations.
customer base to the nearby provinces and expanding its services to
include fixed broadband. Thirty years and counting, Converge continues to grow with the
consumers’ dynamic needs. The Company takes pride in being resilient
More than a decade later, in 2009, ComClark gave birth to Converge to the times, agile in service, strong in innovation, and resolute in the
Information and Communications Technology Solutions Inc. through commitment to boost the country’s socioeconomic well-being through
the enactment of Republic Act No. 9707, which gave it the franchise to world-class connectivity.
construct, install, establish, operate, and maintain a telecommunications
system in the country.
Since then, Dennis Anthony H. Uy and his wife, Maria Grace Y. Uy, have
kept pushing boundaries in bringing digitalization through first-rate
products and cost-effective services.

15
History:
30 Years of Pushing Boundaries
ComClark Republic Act No. 9707
introduced granted Converge its
new services franchise from the
Pampanga-based and expanded Philippine Congress
ICT provider into adjacent to construct, install,
ComClark Network provinces such as establish, operate,
and Technology Bulacan, Bataan, and maintain
Corporation was and Zambales. telecommunications
established. systems throughout the
1992 1997-2006 2009
1996 2007 2011

ComClark Network ComClark formed Converge ICT Converge obtained a
and Technology Solutions Inc.as a subsidiary to Provisional Authority
Corporation was provide broadband internet and from the National
founded as an internet other connectivity services to Telecommunications
service provider and residential and enterprise customers Commission to install,
built the first fiber link nationwide. Converge remained operate and maintain a
between Angeles City dormant as it awaited the requisite nationwide broadband
and the Clark Special licenses and approvals to operate. internet network.
Economic Zone.
16
Debuted on the Philippine Stock Exchange
Converge conducted its inaugural Scan to watch under the stock symbol CNVRG. The
Converge began its fixed company reached the 1 million residential
grand media launch, announcing its the video.
broadband internet operations. subscribers mark.
vision to the public.
2012 2016 2020
2013 2019 2021

Launched fixed broadband Warburg Pincus invested US$225 Completed its national subsea cable
services in Metro Manila and million (through Coherent Cloud) to project and became available in
incorporated Metroworks ICT help Converge accelerate its nationwide Visayas and Mindanao.
Construction Inc. to manage network expansion plans.
the network rollout. Qualified for early inclusion in the
Philippine Stock Exchange Index
(PSEi) as one of the 30 blue-chip

Philippine companies.
17
Season Highlights:
Milestones
The long-standing vision is to provide every Filipino with reliable, affordable, and quality connectivity. Converge is a ground-breaking, record-
breaking challenger brand that prioritizes ensuring customers benefit from cost-effective products and services.
X Recognized by the Pacific Telecommunications X Awarded by Ookla as the Most Consistent X Committed to operating with the highest
Council Awards in 2022 as the Outstanding fiber internet provider in five regions for the standards of ethical behavior, Converge
Wireline and Wireless Company. last quarter of 2021 (Metro Manila, Central launched the Whistleblowing Platform.
Luzon, Calabarzon, Ilocos Region, and
Cagayan Valley).
First Quarter
X Upgraded to Mid-Cap index in the London- X Became the newest member X Announced participation in the Southeast
based FTSE Global Equity Index Series of the Philippine Basketball Asia Hainan-Hong Kong Express Cable
(GEIS). Association with the Converge System or SEA-H2X connecting Singapore,
FiberXers, gaining broader Thailand, Malaysia, Philippines, Hainan
market reach and brand China, and Hong Kong SAR.
recognition.
Scan to read
more
18
X Issued the maiden bond offering of P10 X Launched the #UndoFilter X Powered the Pampanga Data Center
billion (5-year-fixed-rate to support the Campaign for Safer Internet with 100% clean energy through a
capital expenditure programs and general Month to take a stand against supply contract with First Gen subsidiary
corporate activities. all forms of child abuse, Greencore Geothermal.
especially the Online Sexual
Abuse and Exploitation of
X Scan to watch
Children (OSAEC). video
Second Quarter

X Launched the Converge GameChanger X Signed up to the United Nations Global X Hosted the 2022 Philippines Virtual
catering to the Filipino gaming community. Compact, the world’s largest corporate FIBERTalk with the Fiber to the Home
social responsibility initiative. Council Asia Pacific (FTTH Council Asia-
Pacific).
19
Converge Annual Report 2022 SEASON HIGHLIGHTS: MILESTONES
X Supported the Metro Manila Pride March and X Won the Ookla Speedtest™ Award for the Top-Rated Fixed
Festival by providing high-speed broadband Network in the Philippines for the first half of 2022.
connectivity during the festival, attended
by 29,000 participants and streamed live,
reaching nearly 30,000 viewers online.
Scan to watch Scan to watch
the video the video
Third Quarter
X Published its Human Rights Policy, aligning with the United Nations
(UN) Guiding Principles of Business and Human Rights.
20
X Joined the Net Zero Carbon Alliance X Doble Na! Dinoble Pa! Increased the X Launched the Secure Access Service Edge
(NZCA), a private-sector-led alliance that speeds of the FiberX plans to respond to (SASE)-based products as a value-added
aims to unite companies and efforts toward customers’ needs for faster and smoother service for Converge Business.
carbon neutrality to mitigate the worsening connection.
effects of climate change.
Fourth Quarter

X Launched #CountdownToZeroWaste, X Announced the first Philippine OTN Service X Joined the Bills Pay PH system that adapts
a group-wide waste management available globally. the national QR standard for bill payment.
campaign focused on proper
waste disposal and recycling.
Scan to watch
the video SCAN TO WATCH THE
2022 VIDEO RECAP
21
MESSAGE FROM
THE CHAIRMAN
Dear Fellow Shareholders,
Amid a very challenging business environment in 2022, Converge

continued to champion digital democracy, responding to the needs
of our people and businesses for world-class connectivity and digital
solutions that made their lives better and enabled a strong recovery
from the pandemic.
Last year, we further deepened our presence in Visayas and

Mindanao as our domestic fiber backbone reached more cities and
municipalities across these regions.
With our aggressive expansion, we achieved early our goal of

reaching 55% of the Philippine population with our fiber connectivity
earlier than our initial plan. We are now the country’s biggest fiber to
the home network as we have already deployed more than 7.0 million
fiber ports as of December 2022.
Meanwhile, we continued to strengthen our corporate governance

as we put in place a Whistleblowing Platform that provided a
secure channel for concerned individuals to report misbehavior and
unethical practices that could affect the Company’s performance in
the long run.
22
We also approved our Human Rights Policy that covered guidelines This year, Converge is further delivering on its commitment to reach
on protecting the rights of customers and our employees as well the underserved and unserved communities as we roll out a prepaid
as those of our business partners and the communities in which fiber internet service that is affordable to the broader segment of the
we operate. We also indicated specific human rights topics that population.
are relevant to an internet service provider, such as freedom of
expression, access to information, data privacy, online sexual abuse On behalf of the Board, we would like to express our sincere
and exploitation of children, and conflict minerals. appreciation for the dedication and hard work of over 4,000 strong
Converge workforce and the continued loyalty and support of our
We have also put our Sustainability Agenda into action as we shifted customers, service providers, and all our partners in the supply chain.
the power consumption of all our data centers and major offices into
100% green, renewable energy. We have also launched a Countdown Finally, we would like to thank all shareholders for your continued
to Zero Waste campaign, starting with the collection and recycling of trust and support as we pursue our mission to deliver stable and
our electronic waste, including the refurbishing of our old modems. reliable connectivity to the broadest number of our people.
We also began upcycling our old tarpaulins used for marketing
and information collaterals into bags and other items through a
Signed,
partnership with a women-led social enterprise. Our goal is to have
zero waste to landfill output by 2030. Jose P. De Jesus
Chairman
As a technology company, we pledge to continue making our
services more accessible to the Filipino people and even the smallest
businesses because we believe that in this digital age, no one should

be left behind.
23
MESSAGE FROM
THE CEO

In 2022, we have strengthened our foothold in the
telecommunications industry with the broadest fiber network
nationwide. In spite of the global challenges, we have made our way
to becoming the fastest-growing telecommunications company in the
country with a solid financial foundation. Our commitment to digitally
empowering communities has brought us to where we are today: in a
competitive position.
We envisioned, designed, and powered our digital solutions to

support home and business owners, enterprises, communities, and
government to equip them with the tools they need to participate
in the growing digital economy. I am delighted with our collective
accomplishments over the year: delivering faster speeds, providing
better value, and outstanding customer service.
DIGITAL TRANSFORMATION, THE NAME OF THE GAME
In 2022, we capitalized on our world-class infrastructure to bring

powerful connectivity to Filipinos.
Our near-term objective is to develop more digital services and

enhance the products we offer to Philippine households. By putting

our customers first, we are more responsive, resilient, and efficient.
CHAMPIONING OUR BRAND
In the fiscal year 2022, we became even more targeted in our

advertising and marketing campaigns. Our expansion in new areas
called for initiatives to make us easily recognizable in the broader
community, especially in new cities and municipalities where we have
not operated before. One of our major marketing investments was
acquiring a basketball franchise.
24
The acquisition of the Alaska Aces to become the Converge FiberXers • In May 2022, Converge announced participation in the SEA-H2X

on April 15, 2022 indicates the Company’s goal of becoming a well- cable system, a new high-speed submarine cable connecting the
recognized brand on top of its game. Philippines, Hong Kong, Hainan, China, Thailand, East Malaysia,
and Singapore. At approximately 5,000 kilometers in length,
Entering the Philippine Basketball arena strengthened our visibility the SEA-H2X is set to provide the speed and capacity needed
on a national scale. This ran simultaneously with localized on-the- to digitally transform the region in two years. The cable is a
ground marketing campaigns in new rollout locations to introduce the response to the growing demand for broadband internet and
products and services to residents and to activate new subscriptions the rising data traffic between Hong Kong SAR and Southeast
in areas allowed by the local government. Our webinars and online Asian countries.
event sponsorships, especially for the business sector and other
major industry associations, connected us with existing and potential We are now in an exceptional position to grow our market and pursue
customers to introduce new and enhanced products. our targeted expansion strategy that will translate into revenues
and EBITDA. Together with our Senior Management, we have been
vigorously initiating and building relationships with some of the most
EMPOWERING PEOPLE THROUGH TECHNOLOGICAL
influential global technology leaders.
ADVANCEMENTS
In summary, the future of Converge lies in closing the gap between
Converge has begun an exciting and purposeful expansion plan which
Philippine households and their need to be connected through
means extending and augmenting our end-to-end fiber network,
reliable and world-class technology. Converge is charting its path to
comprising our domestic backbone, distribution, last-mile networks,
greater digital access, expanding our target addressable market to
and international connectivity networks.
include the D&E markets to democratize digitalization.
With the growing subscriber base, we also aim to ensure better
We expect to make significant headway into the lower-income
quality connectivity by investing in redundancy backbone routes.
segments in the medium term through our low-cost, fiber-prepaid
These investments have significantly contributed to reducing
products. The initial reception of the prepaid plans during its soft
subscriber-affecting incidents in 2022.
roll-out in 2022 has been promising, and these products are poised to
Our partnerships with the best equipment providers and access to be the next drivers of growth of the company. We expect to redirect
global technology bolstered our nationwide network presence. By efforts in marketing and sales in customer acquisition in this segment.
allowing us to efficiently position our capital resources and effectively
manage our costs while developing innovation and enhancing To our Board of Directors, I convey my sincerest appreciation
the performance and reliability of our products and services, our for providing solid management directives based on our core
momentum to offer the best connectivity for Filipinos was sustained. values. To our shareholders, my indebtedness for your tremendous
and decisive support for our objectives and goals. And most
The fiscal year 2022 has become even more exciting with the importantly, to all of our valued customers, thank you is not even
definitive execution of all our expansion strategies: enough. You have been our source of inspiration and motivation
to be dynamic, know better, and do better. Finally, to all Converge
• In August 2020, Converge purchased an additional 5 Tbps of
employees, your commitment and contributions are invaluable.
international bandwidth capacity from Telstra International
Limited. The purchase entailed a 15-year Indefeasible Right of

Converge has adapted and evolved in a very competitive business
Use (IRU) on two major intra-Asia networks. ecosystem in a digitally transforming world. As we continue to grow
and acclimate to new realities, it has become more evident that the
• In May 2021, Converge secured its participation in the Bifrost
core of our digital transformation is us.
Cable System by signing definitive agreements with Keppel
Telecommunications & Transportation’s wholly-owned Signed,
subsidiary, Keppel Midgard Holdings Pte. Ltd. (KMH). The
agreement aims to grant Converge an IRU for one fiber pair Dennis Anthony H. Uy
on the main trunk of the Bifrost Cable System, which directly Co-Founder, Executive Director and Chief Executive Officer
connects Singapore to the West Coast of North America. The
Bifrost is currently being constructed and is expected to come
online in 2024.
25
MESSAGE FROM
THE PRESIDENT

We are intentional. We have always been purposive, from the
groundwork we have built to the actual performance of our
strategies, goals, and objectives. There is no undertaking too small or
too big for us. If the vision is there, we will pursue it.
Today, we look back proudly at 2022. It was one of our better years
on record . We had pushed ourselves to become one of the largest
companies in the telecommunications industry despite a looming
post-pandemic national and worldwide crisis. We did this so that
Filipinos can finally have the digital life they deserve.
We are now responsible for our 1,877,361 residential subscribers and

37,563 enterprise customers, yet more has to be done. We are seeing
that there are still people and communities who want and need the
best connectivity and the best service. And that is where we are
headed.
ROBUST DOUBLE-DIGIT GROWTH
Our Company’s residential and enterprise segments continue to

deliver double-digit revenue growth in 2022 by 27.4% and 26.4%,

respectively.
We were able to add 185,811 new residential subscribers during the

year, net of churn. We are delighted to note that net adds per quarter
have trended upwards from the second quarter until the fourth
quarter, despite the overall slowdown in the market. This brings
optimism as we enter 2023.
26
Our Enterprise segment continued its strong growth performance, service coverage ratio (DSCR) was 3.9x, and the net debt-to-total
with all three subsegments improving year-on-year. Our SME business equity was 0.8x, well within the required financial covenants from our
significantly contributed to this growth, with revenues growing by debt facilities.
more than 80% from 2021 to 2022.
Our expansion into new cities and municipalities and new target
In 2023, we established our international presence with the addressable markets will support our continued growth in 2023.
incorporation of Converge ICT Singapore Pte. Ltd. With the expected We look towards improving utilization rates in the mid-term as we
completion of our invested international subsea cable networks monetize our deployed assets in the coming years.
in 2024, our expansion into this new market will help grow our
Wholesale business. LOOKING AHEAD
INDUSTRY-LEADING PROFITABILITY AND STRONG We made sure to meet profit targets while innovating our products
BALANCE SHEET and services. Our balance sheet is in good shape, delivering a
reliable foundation we can build.Remaining true to our values, we will
Our earnings before interest, tax, depreciation, and amortization always seek new ways to make a difference, from advancing digital
(EBITDA) margins and return on invested capital (ROIC) remained democracy to enabling economic mobility. Together, we dare to
strong in 2022 at 57.3% and 15.7%, respectively. With the growing envision the next big thing in technology to make it a better world for
scale and proactive cost management, we were able to beat our our customers and communities. I am honored to work alongside you
corporate guidance of 55%. We also led the market in ROIC with on this.
a disciplined approach to deploying capital as we continued our
expansion nationwide.
Signed,
We had sufficient liquidity and undrawn facilities to fund our capital
requirements. We tapped the bond market in April 2022 for the first Maria Grace Y. Uy
time in our history and raised P10 billion of gross proceeds for our Co-Founder, President, Chief Resource Officer,
capital expenditure requirements. With this, our end-of-year debt Chief Risk Officer, and Executive Director

27%
Consolidated Revenue Growth
57.3%
EBITDA Margin
15.7%
Return On Invested Capital
27
Season Recap:
Financial and Operational Highlights
In 2022, Converge solidified its stance as a formidable player in the ICT and telecommunications space: it deployed nearly 2 million ports
nationwide. It thus became the operator with the broadest fiber-to-the-home (FTTH) network in the Philippines. This resulted in homes passed
network of nearly 15 million homes and a household coverage of 56% nationwide.
ROW ROW
1ROW
Converge 11
achieved a record annual EBITDA (earnings before interest, taxes, depreciation, and amortization) of P19,353 million by year-end,
representing an increase of 30.7% from the previous year.
Annual
Annual
Annual Annual
revenues
Revenues
revenuesrevenues
(inmillions)
(in PHP (in
PHPPHP
millions)
millions) millions) EBITDA
EBITDA
EBITDA
EBITDA (in (inmillions)
(in
PHP (in
PHP
PHP PHP
millions)
millions)
millions) NetNet
Net incomeincome
Netincome(inmillions)
Income
(in PHP (in
PHP
(in PHP
millions)
PHP millions)
millions)
40,000
40,000 52.5%52.5% 55.9%55.9% 57.4%57.4%
40,000
33,696 33,696
33,696 52.5% 52.5% 55.9% 55.9% 57.4% 57.4%
35,000
35,000 7,439
7,439
35,000 25,000
25,000 8,0008,000 7,158
7,158 7,439
25,000 8,000 7,158
26,479 26,479
26,479
30,000
30,000
19,353
19,353 19,353
30,000 7,0007,000
20,000
20,000 7,000
25,000
25,000 20,000 6,0006,000
25,000 14,803
14,803 6,000
20,000
20,000 15,000
15,000 14,803 5,0005,000
20,000 15,652 15,652
15,652 15,000 5,000
4,0004,000 3,388
3,388
15,000
15,000 4,000 3,388
ROW 2ROW 2 2
15,000 10,000
10,000 8,218
8,218
8,218 3,0003,000
ROW 10,000
10,000 10,000 3,000
10,000 2,0002,000
5,0005,000 5,0005,000 2,000
5,000 5,000 1,0001,000
1,000
- - - - - -
- - -
FY2020 FY2020
FY2020FY2021 FY2021
FY2021FY2022 FY2022
FY2022
FY2020 FY2020
FY2020FY2021 FY2021
FY2021FY2022 FY2022
FY2022 FY2020 FY2020
FY2020FY2021 FY2021
FY2021FY2022 FY2022
FY2022
- EBITDA- EBITDA
- EBITDA
margin margin
margin
Return
Return onon on invested
Return
Investment capital
on invested
Capital capital Residential subscribers
Subscribers Enterprise Customers
Return invested capital Residential
Residential subscribers Enterprise customers
Enterprise customers
25% 25% Residential subscribers Enterprise customers
25% 20.90%20.90% 2,000,0002,000,000 1,877,361
1,877,361 40,000 40,000 37,563 37,563
20.90% 2,000,000
1,800,000 1,691,550 1,877,361
1,691,550 40,000 37,563
20% 20% 1,800,000 35,000 35,000
1,800,000 1,691,550
20% 1,600,000 1,600,000 35,000
20.00%20.00% 1,600,000 30,000 30,000 26,038 26,038
15% 20.00% 15.70% 15.70% 1,400,0001,400,000 30,000
15% 1,400,000 25,000 25,000 26,038
15% 15.70% 1,200,000 1,038,321
1,200,000 1,038,321 25,000
ROW ROW
3 ROW
3 3
1,200,000
1,000,000 1,038,321
1,000,000 20,000 20,000
10% 10% 1,000,000 20,000
10% 800,000800,000 15,000 15,00011,090 11,090
800,000
6 00,0006 00,000 15,000
5% 5% 11,090
10,000 10,000
5% 6 00,000
400,000 400,000 10,000
400,000
200,000200,000 5,000 5,000
0% 0% 200,000 - 5,000
0% FY2020FY2020 FY2021FY2021 FY2022FY2022 - - -
FY2020 FY2021 FY2022 - FY2020FY2020FY2021FY2021 FY2022FY2022 - FY2020FY2020 FY2021FY2021 FY2022FY2022
FY2020 FY2021 FY2022 FY2020 FY2021 FY2022
End of Period Port Fiber infrastructure

FiberFiber
infrastructure
(in kms)
(in kms)kms)
End ofEnd
period port Count
of periodcount
port count Household
Household
Household Coverage
coverage
coverage Fiber Infrastracture
infrastructure (in
(in kms)
End of period port count Household coverage 700,000700,000
618,762 618,762
9 ,000,000
9 ,000,000 60% 60% 700,000
9 ,000,000 7,895,785
7,895,785 60% 56.20% 56.20% 6 00,0006 00,000 618,762
8,000,000
8,000,000 7,895,785 6 00,000
8,000,000 50% 50% 56.20%
7,000,0007,000,000 50% 500,000500,000 446,032446,032
7,000,000 5,882,333
5,882,333 42.70% 42.70% 500,000 446,032
6 ,000,000
6 ,000,000 5,882,333 40% 40% 400,000400,000
6 ,000,000 40% 42.70%
5,000,0005,000,000 400,000
5,000,000 30% 30% 300,000300,000
4,000,000
4,000,0003,503,0813,503,081 30% 214,765 214,765
300,000
4,000,000 3,503,081 25.00% 25.00% 200,000200,000 214,765
3,000,0003,000,000 20% 20% 25.00% 200,000
3,000,000 20%
2,000,0002,000,000 100,000 100,000
2,000,000 10% 10% 100,000
1,000,000 1,000,000 10% - -
1,000,000
- - 0% 0% Jan-21- Jan-21 FY2021 FY2021 FY2022FY2022
FY2020 - FY2020FY2021 FY2021FY2022FY2022 0%FY2020 FY2021 FY2021 FY2022FY2022
FY2020 Jan-21 FY2021 FY2022
FY2020 FY2021 FY2022 FY2020 FY2021 FY2022
LEGEND: EBITDA Margin

28
Balance Sheet
Total assets PHP Mn 56,712 81,864 98,098

Total debt PHP Mn 7,950 19,846 38,222
Total Stockholders’ Equity PHP Mn 27,775 35,110 36,111
Income Statement
Revenues PHP Mn 15,652 26,479 33,696

Income Statement (continuation)
Cost of services PHP Mn (7,065) (10,507) (13,438)

Gross profit PHP Mn 8,588 15,971 20,258
General and adminstrative expenses PHP Mn (2,772) (4,771) (6,601)
Provision for impairment of trade and receivables PHP Mn (720) (1,005) (1,660)
Equity share in net income of joint ventures PHP MN - 39 51
Unrealized fair value loss on financial assets, FVTPL PHP Mn (26) (20) (6.40)
Other (expense) income, net PHP Mn 360 (176) (454)
Profit from operations PHP Mn 5,429 10,039 11,588
Finanace costs PHP Mn (550) (486) (1,732)
Profit before income tax PHP Mn 4,878 9,553 9,856
Income tax expense PHP Mn (1,491) (2,395) (2,416)
Profit for the year PHP Mn 3,387 7,158 7,439
Net income margin % 22% 27% 22%
EBITDA PHP Mn 8,218 14,803 19,353

EBITDA margin % 53% 56% 57%

Cash Flow
Net cash from operating activites PHP Mn 7,299 7,648 11,605

Net cash from investing activites PHP Mn (14,507) (19,879) (19,397)
Net cash from financing activites PHP Mn 13,871 7,324 9,639
Net increase (decrease) in cash PHP Mn 6,663 (4,906) 1,848
29
CHAMPIONING CONNECTIONS IN EVERY FiberX is the

flagship consumer
HOME: RESIDENTIAL BUSINESS product of
Converge.
The residential business performance shows consolidated revenue A residential
growth of 27% Year on Year from 2021 to 2022. Through fiber access broadband
networks utilizing FTTH and HFC technologies, our Residential service via FTTH
Business offers high-speed fixed broadband internet services connection that
and other bundled or add-on connectivity services to residential carries a range
customers. While a substantial majority of the residential customers from FiberX 1500
are home users, some of these comprise micro businesses, which are to FiberX 7499 with
small-scale businesses with up to nine employees. speeds from 200
Mbps to 1 Gbps.
Revenues from Residential Business increased from P3,150.70 Converge upgraded
million in 2018 to P29,462.2 million for the entire year of 2022. The its base plan offer
residential segment’s monthly Average Revenue per User (ARPU) of with speeds from 100 Megabits per second (Mbps) to 200 Mbps at
the residential segment remained stable at P1,239 in the fourth the same base price of P1,500 monthly with no data caps.
quarter of 2022.
The Ookla top-rated ISP company upgraded the suite of FiberX
Converge ended 2022 with 1,877,361 residential subscribers. Gross
plans and new packages in 2022 to give Filipinos a faster and better
additions in Visayas and Mindanao improved significantly as we
digital experience.
continued our expansion in these key regions. In 4Q 2022, 18.5% of
gross adds came from VisMin, compared to only 5.4% in 4Q 2021. This
remains a key region for growth as we expand our network into new “Our vision is to make
cities and municipalities across VisMin. Filipinos, businesses, and our
nation to be the best through
The monthly residential churn rate continued to decrease in the last
quarter of the year to 1.75% - a second consecutive decrease from the
fiber connectivity. When we
all-time high of 2.49% in the second quarter of 2022 and 1.96% in the do this, it makes us all very
third quarter. competitive. So to us, it’s not
just about laying down fiber,
Speed Increase it’s about getting our people
We design products that meet the evolving demands of consumers. and our country to a level
The COVID-19 lockdown ushered in a surge in demand for where we become competitive,
connectivity. The fast-paced shift to a digital lifestyle required by where we become a hub
the times has placed utmost importance on the reliability of an and where the prosperity of
internet connection. A shift in consumer activities that required digital
the Filipinos will continually
transformation, such as work from home, distance learning, home
entertainment (like online gaming and video streaming), and the improve over time.”
increased use of features like 4K video (which call for higher speeds) JESUS ROMERO
Senior Executive Vice President and
has fueled the demand for better connectivity pushing Converge to
Chief Operations Officer
serve the community better.
30
Meanwhile, subscribers of FiberX Plan 2000 have speeds of up to The FiberX Plan 3500 and FiberX Plan 7499 subscription allows
400 Mbps. The FiberX Plan 3500, with speeds of up to 800 Mbps, them the privilege of an XCLSV membership as well as other premium
comes with a free Linksys Velop 2-Pack Dual Band. value-added services.
Heavy users of video streaming content now enjoy the FiberX Plan The first ever premium concierge service offering priority handling
2500 with a faster speed of 600 Mbps, coming from 300 Mbps. and unique perks to FiberX Plan 3500 and up existing and new
For homes with multiple sophisticated subscribers. XCLSV members will not only receive the best and
internet users, Converge offers the seamless customer support that Converge has to offer but will also
FiberX Plan 7499, which can provide continue to enjoy strong and consistent internet connectivity.
up to 1 Gigabit per second (Gbps)
and comes with a free Linksys Velop A dedicated support team has been assembled through a
2-Pack Wi-Fi-6 Mesh. personalized direct email and dedicated hotlines exclusive only to
XCLSV members to address their inquiries, concerns, and issues.
Subscribers can also enjoy quarterly service/account checks, same-

day on-site repairs for tech-related concerns, and free delivery of
add-on devices, among other things.
Ensuring fast and easy resolutions, a priority lane at major business

centers nationwide is established for XCLSV members when they
go and visit, allowing them to indulge in the VIP treatment and
#ExperienceBetter.
The FiberX plans with Time of Day

innovation come in two plans:
Time of Day 1699 and Time of Day
3000. With Time of Day innovation,
customers can double their plan
speeds at pre-set periods of the
day, either nighttime or daytime. These plans leverage the GPON
technology, just like the FiberX plans. They offer the same connection
quality as FiberX but with added flexibility. It caters to customers’
specific needs - for faster speeds at particular periods. This
innovation is a first in the broadband market in the Philippines

The GameChanger is tailored for the
growing gaming community that
deserves high prioritization access
and ultra-high-speed connectivity
that suits their unique needs.
Tapping the 48 million gamers in the country, the GameChanger Plan

gives casual and professional gamers a command of the gaming scene.
31
Converge Annual Report 2022 CHAMPIONING CONNECTIONS IN EVERY HOME: RESIDENTIAL BUSINESS
It uses the Converge high-performing, non-blocking domestic Add-ons

network, with 800 Gbps links in key segments and a robust, high-
Vision (in partnership with Pacific
capacity international network.
KabelNet Holding Co., Inc.) A home
The GameChanger delivers high bandwidth and prioritization with low entertainment service providing
packet loss, jitter, and low latency that only pure fiber line can reliably access to pay television channels,
deliver simultaneously. Plus, with a median latency rate of 4ms and a Google apps, and games.
jitter rate of 2ms based on the results from Speedtest.net in the last
quarter of 2021, GameChanger customers can now rise above the
challenges of every game. Fiber Scope is a security solution
that runs on the pure fiber network
The HomeBase plans cater to home- of Converge. It offers fiber-enabled
based businesses/micro businesses high-definition CCTV cameras that
with speeds of 200 to 300 Mbps allow subscribers to monitor their
providing business-level connectivity. home or business for an additional
Small home-based businesses and monthly fee of up to P740 for a
start-ups will benefit from fast package of four cameras.
fiber connectivity that can power their daily operations, online
The equipment allows video and audio monitoring with IR-cut filters
transactions, and office application requirements.
to provide images with minimal distortion.
HomeBase plans come with a dynamic IP address. The plans range
Value-added service, FiberXShare
from P1,500 per month for speeds of up to 200Mbps to P1,899 for
has powered by a Linksys router.
speeds of up to 300Mbps.
A mesh Wi-Fi system that gives the
customers seamless and consistent
Wi-Fi signal and coverage over broad
areas or wherever the people are in
their office or home. It offers three
variants for the Linksys Velop mesh
router: dual-band, tri-band, and Wi-
Fi 6, depending on the number of
streaming devices in the network or
household.
In partnership with Linksys, Converge

was the first to offer Wi-Fi 6 to
subscribers. Wi-Fi 6 is a long-awaited
innovation in wireless technology.
With expanded capabilities in the
said frequency, consumers can enjoy
an improved online experience in the
convenience of their homes.
32
TIMEOUT:
Alone But Not Apart

Living independently is a rite of passage into adulthood, and most
young adults look forward to their newfound freedom from family.
But when separation isn’t a lifestyle choice, and independence is
forced, living alone can be frightening. For a young student-athlete
from Naga, solo living is a day-to-day challenge.
Christian Anthony Bermejo, 20 years old, is a basketball varsity

student at Naga College Foundation who recently found himself living
away from his family.
“ Sa loob ng 20 years na nabubuhay ako sa mundo ngayon lang ako

nalayo sa pamilya ko. Actually, mga limang buwan na ako nahiwalay
sa kanila, [For all my life, this is the first time I’ve been apart from
my family. I’ve been living alone for about five months now]” shared
Christian.
S The Bermejo family attend one of Christian’s games in Naga. Christian
regularly communicates with his family using his Converge fiber line.
Christian’s parents relocated to Bohol due to hardships in finding

opportunities in Bicol. Christian’s education at Naga College
Foundation is free as a student-athlete, so staying in Bicol is the more
practical option.
Through these hardships, Christian’s saving grace is the ability to talk

to his family. Although they are miles apart, small blessings such as
having a stable internet keep him connected and close to his family.
“ Napakahirap sa akin na 20 years na kasama ko sila, at bigla akong

napalayo pero gabi-gabi akong tumatawag sa kanila gamit yung
internet sa bahay kaya kahit papaano nabawasan kalungkutan ko,
tuwing nakakausap ko sila online sa Messenger. Kaya kahit malayo
sila, feeling ko andiyan pa rin sila para sa akin. Sinusuportahan nila
ako palagi kaya di ko nararamdaman na malayo sila, [It’s so hard
for me to be apart from them since I’ve been with them for 20 years.
But every night, I get to talk to them online through Messenger, and
somehow my sadness lessens. Even though they’re far away, I feel
S Christian Anthony Bermejo has been a Converge subscriber since the they’re supporting me in what I do.]” said Christian.
ISP’s entry into the Bicol region in 2021.
33
Encouraged by the hype and word on the street about Converge fiber “ Dati ang experience ko sa internet hindi gaanong kalakas kasi hindi
internet, Christian applied for a line as soon as it became available in Naga. pa fiber, mabagal mag-load, kaya minsan nakakairita pag sobrang
bagal ng internet. Nagpakabit ako ng Converge noong kasagsagan
The strong and consistent connection served as the vital avenue ng pandemic. Kailangan namin mag-adjust bilang estudyante sa
through which he could communicate with his family and helped him online classes. Napakalaking tulong nito dahil kahit bawal lumabas,
cope with schooling. na-meet ko online mga teachers and kaklase ko at nakakapag-aral
kami, [My past experience before with the internet is very laggy since
it wasn’t fiber yet. Loading times are so slow. I got Converge at the
height of the pandemic because of online classes. It’s been a big help,
especially since we can’t go outside. At least I still get to meet my
classmates and teachers for school work.]” he adds.
Living on his own and with two more years in college, Christian
hopes he can save up enough money to reunite with his family and
contribute more to their livelihood.
“Gusto ko buuin uli pamilya ko. Gusto ko maka-graduate at

makapagtrabaho, [I want to be with my family again. I want to
graduate and land a job]” said Christian.
Scan to
read more
34
TIMEOUT:
The Converge FiberXers
S The Converge FiberXers debuted in the 48th Season of the Philippine Basketball Association (PBA), aiming to reinvigorate competition in the
pioneer basketball league in Asia.
The Converge FiberXers may be the newest franchise in the Philippine “This conference, we showed we can stand toe to toe against the
Basketball Association (PBA), but the young team certainly showed league’s strongest teams. We proved our mettle in the elimination
up as one of the league’s most challenging competitors in the 2022- round, underlining the team mantra to ‘never back down,” said
2023 PBA Season. Converge CEO and Co-Founder Dennis Anthony Uy.
As the youngest team in the league, the FiberXers showed passion

and energy in every game during its Philippine Cup run, enabling
them to conclude their first conference with a quarterfinals finish.
Even in their last game in the quarterfinals against the second team
in rankings, TNT Tropang Giga, the FiberXers still showcased the grit
and that contagious fighting spirit that makes this rookie team all too
endearing. Despite the large point gap ahead of them, every player on
the court was visibly driven and refused to back down until the very
end, truly embodying the team’s #NeverBackDown attitude. The team
continuously pushed themselves and powered through to a spot in
the playoffs, securing 7th seed.
During the Commissioner’s Cup, the team’s hard work and discipline
shone through as they skyrocketed to the top and maintained a spot
in the Top 4 of the overall conference standings all throughout the
elimination round.
35
CHAMPIONING EVERY REBOUND: SME Products

SME BUSINESS The Converge FlexiBIZ plans are
Fiber-To-The-Premises (FTTP)
The rise of small and medium-scale businesses, especially during the broadband internet plans tailored
pandemic, has been phenomenal. It paved the way for Converge to for and marketed primarily to SME
look into the potential of empowering these entrepreneurs with the customers.
connectivity that matches their needs and designing products to help
FlexiBIZ offers true symmetric high-speed internet that comes in two
them effectively do their business.
options: Daytime and Peak. The broadband speed will reach double
The SME clients consist of companies with 10 to 199 employees the original plan during the customer’s chosen time option. The plans
with assets valued from P3 million to P100 million. The Philippine provide subscribers with a dedicated IP address, 24-hour service desk
government recognizes SMEs’ roles as vital to economic growth. and support teams, and certain guaranteed service level agreements
(SLAs). This is a first-in-the-market service for SMEs.
Aligned with the government’s commitment to promoting small
enterprises as a policy for growth, Converge also saw the importance The FlexiBIZ Daytime offers a price range of P2,000 per month
of SMEs in economic development by providing them with the for an original speed of 25Mbps that doubles to 50Mbps during the
internet connection suited to keep their business active, thriving, and subscriber’s chosen schedule, to P15,000 per month for the original
at par with modern technology. speed of 150Mbps that doubles to 300Mbps during a preferred
schedule.
In the 4th quarter of 2022, the SME
revenues grew by 82% Year on Year. Meanwhile, the FlexiBIZ Peak offers a price level that starts at
The SME business showed a 91.4% P3,000 per month for 50 Mbps and doubles to 50Mbps during the
Q4FY 2022
increase in revenue from a growing subscriber’s chosen schedule, to P18,000 per month for an initial
customer base. That’s a customer speed of 150Mbps that doubles to 300Mbps during a client’s choice
91.4%
Increase in Revenue
growth of 77% with over SME
customers 31,000. As more SMEs
continue to rise, Converge also rises
schedule.
Workplace Solutions: HR & Payroll Solutions

of the SME to the challenge with innovative
Business products to meet them. HR & Payroll Solution
77%
Is a cloud-based technology solution
for small and medium enterprises
that automates Human Resource
Customer Growth
Management, timekeeping, and
of the SME
payroll processing.
customers
Add-On SME Products

 Part of the package of solutions offered to SMEs are add-on devices:
Converge powers the Fiberscope (security), FiberXShare (multi-user and multi-input device),
POS and internal systems of Linksys Velop dual-band, Triband, and Wi-Fi 6 (Wi-Fi Mesh system)
well-loved Lantaw restaurant
in Cordova, Cebu.
36
TIMEOUT:
Coffee-car wash biz makes waves in Bohol

Coming up with one business is hard enough but bundling two This pivot into a digital-ready establishment was thanks to the pure
businesses together? fiber connection provided by Converge, which was a relatively new
player on the block in Bohol. Even so, word spread quickly about the
Talk about a challenge. But businesswoman Ayressa Tanya Ayeng- high speeds and unbeatable prices, so Your Lounge readily signed on.
Colarines from Tagbilaran had a game plan that proved to be a recipe
for success: setting up an internet-ready cafe to go with the car wash
business. Digital Empowerment for Boholanos
The car wash business was set up in 2019 in the same area where A point of pride for the young businesswoman is that they kept
Tanya’s father ran their 20-year-old gas station. Inheriting her father’s workers connected throughout the pandemic.
business-savviness, she followed up the car wash with the Your
Lounge Cafe two years later. “I have a friend who is an online English teacher. They asked through
the Facebook page if she could teach at the cafe, and we said yes
since we have a fast connection. She’s been coming here almost every
day since that day she inquired,” Tanya said.
At the height of having online events, Your Lounge also offered

live-streaming to go with their catering service, proving they are a
digitally-empowered and forward-looking business. In one instance,
they provided live-streaming for a church service where the guest
preacher was based in Manila. Attendees in Bohol flocked to the cafe
During the blackout following Typhoon Odette, Your Lounge stayed open to attend the event together while enjoying delicious food served in
and offered fiber internet to individuals working from home. the cafe.
“I want customers to have a different experience in Your Lounge.

“With the two businesses complementing each other, car wash sales Aside from enjoying our food, they’ll receive top-notch service from
doubled,” said Tanya. our car wash. So they have a fast wi-fi connection, good food, and
other services,” Tanya ended.
Perhaps the biggest advantage Your Lounge can offer its target
working professional market is its lightning-speed internet
connection. Your Lounge can also be a co-working space where
people can pay an affordable rate of P30 per hour for internet use for
workers who are “working from cafe.”
“Most of our clients are working

professionals, so we allow them to
Scan to work here for long hours at a friendly
read more rate. They like working in a cozy place
with a fast Wi-Fi connection, so they
choose to be here,” shared Tanya.
37
CHAMPIONING BREAKTHROUGHS: “Digitalization has opened

ENTERPRISE BUSINESS a world of opportunity for
everyone. We now have access
As the world gears up for technological advancement, Converge
meets the dynamic demands of businesses by putting forward a
to more information and to
portfolio of innovative digital solutions. the world market that was
not possible before. With the
The Enterprise solutions are delivered over end-to-end fiber
right tools and partnerships,
networks via FTTP technology.
we can all break through the
Converge delivers high-speed challenges and come out more
broadband internet service and successful than before.”
connectivity solutions, including
private data network services, Maria Grace Y. Uy
cloud and colocation services, and Co-Founder
bandwidth leases on a wholesale and President
basis to businesses and governments in the Philippines. The strong
commitment to expanding the availability and capabilities of the
pure fiber broadband for the Enterprise business has been evident Add-ons
in the revenue growth of 26.4% Year on Year growth from the 4th
quarter of 2021 to the 4th quarter of 2022. As a value-added service, Direct Internet Access subscribers can
also enjoy the following add-ons for an additional incremental
The reliability of the network is supported by data privacy and charge:
information security. Converge can deliver world-leading and
dependable networks and services by providing the best broadband • Time of Day offers variable bandwidth based on the pre-set
technology and truly understanding the customers’ needs. time of day
• Upload gives asymmetric download and upload bandwidth

ENTERPRISE BUSINESS PRODUCTS allocation
Direct Internet Access (DIA) • Converge Connect premium service enables businesses to
have a customizable combination of products and resources
The Direct Internet Access services are a dedicated connection to that are best suited to their needs
the global public internet backbone delivered via multiple routes
and diverse fiber optic submarine cables. It is a premium internet • IPT Express and IX Express are innovative and cost-effective
connectivity solution with dedicated and ultra-high-performance IP Transit and IX Connection solutions that give customers
internet connectivity designed and marketed primarily to Enterprise similar benefits of an ISP with an international presence
and Corporate customers.
Local Private Data Network Solutions
The multiple variations of the Direct Internet Access service are
provided with enterprise-grade SLAs, a 24-hour all-in-source One of the transport and private network services, the Local Private
support team, a service desk, and a restoration team, giving the Data Network Solutions, comes with enterprise-grade SLAs, a
customers a premium advantage. The subscribers can enjoy a dedicated 24-hour service desk, and support teams that provide
demand-based bandwidth top-up that allows them to increase point-to-point connectivity between two or more sites nationwide.
bandwidth when needed.
38
• “FAST” and “FASTER” are direct “point-to-point” solutions • Ethernet-International Private Line provides cost-effective
provided on a shared fiber network to deliver private and and secure point-to-point high bandwidth connectivity from
secure connectivity between two or more business locations. the Philippines to international markets; and
This service provides scalability and flexibility at affordable
• International IP provides destination-specific, dedicated
rates compared to traditional private leased lines and is often
internet access designed for enterprises with international
used to connect branches with kiosks, automated teller
IP requirements, such as those in the U.S., Hong Kong,
machines, and point-of-sale machines and as backup Singapore, Taiwan, and China, in partnership with global
connections; service providers.
• Metro Ethernet runs through a globally certified carrier
ethernet network, providing high capacity and secured
Ethernet-Cloud Direct Connect Service
wide area network (WAN) connectivity between
geographically separated sites;
The Ethernet-Cloud Direct Connect Service Service provides a
• Multi-Protocol Label Switching (MPLS) combines video, data private, dedicated, high-throughput network connection between
applications, and voice without the complexities of securing a private enterprise network and public cloud service providers,
“one-to-many-point” network connections, and is often allowing businesses to interact with these clouds privately as if they
used to interconnect a head office with its various branch or were part of its WAN.
regional offices
The Cloud Upload Booth enables Ethernet-Cloud Direct Connect
• Metro Lambda is a dedicated point-to-point connectivity Service customers to upload large files into cloud service provider
service delivered using our DWDM network, and is often platforms at a working space located at Reliance IT Center in Pasig
City. This removes the need to go to cloud regions such as Singapore
used for data center-to-data center connectivity, database
just to upload large files. Users would have access to a Windows PC
disaster recovery, and high capacity, ultra-low latency site-to-
with a LAN-based internet connection of 10Gbps.
site connectivity.
Meanwhile, our Cloud Direct Connect connects the enterprise
International Private Data Network Solutions customer’s local IT infrastructure to a cloud service provider. This link
is done in partnership with global firm Equinix without crossing the
The International Private Data Network Solutions provide point-to- internet.
point connectivity between two or more local and international sites.
These solutions include enterprise-grade SLAs, a dedicated 24-hour
service desk (hotline), and support teams.
Optical Transport Network
The Optical Transport Network’s Layer 1 technology provides a
secure, high bandwidth, reliable, and low latency network service
that runs over Our DWDM network – the youngest and most modern

network in the country.
Leveraging on OTN technology provides enterprise customers with a

fast, stable, and secure way to send different traffic types, such as IP,
Ethernet, storage, digital video, and SDH, over the company’s high-
speed, low-latency backbone network.
39
Converge Annual Report 2022 CHAMPIONING BREAKTHROUGHS: ENTERPRISE BUSINESS
Enterprise Business’ Value Added Services Wholesale
The Colocation offers a reliable data Recognizing that industrial,

center environment for storing data commercial, institutional, or other
and applications.Customers can professional business end-users
benefit from reduced IT infrastructure must purchase bandwidth in bulk,
and management costs, reliability, Converge draws up Wholesale. It
access to various telecommunication provides bandwidth leases on a
requirements, security, required bandwidth at reasonable rates, and wholesale basis, primarily to local telcos, cable TV operators, ISPs,
24/7 dedicated support. and global reseller carriers.
The Microsoft Azure Peering Service improves the Enterprise clients’ Converge started to provide international connectivity services
connection to Microsoft Software as a Service (SaaS) applications in Singapore through its wholly-owned subsidiary, Converge ICT
such as Office 365, Teams, SharePoint, and other products running Singapore Pte. Ltd., on January 3, 2023. Converge SG further
on the Azure Public Cloud. It also offers faster, more reliable network strengthened its optic cable capacity to wholesale and enterprise
connection with consistent performance, dedicated traffic paths on customers in the Southeast Asian city-state.
Converge and Microsoft networks, and route protection over the
public internet, substantially improving business collaboration and
productivity substantially.
S Converge President and Co-Founder Maria Grace Y. Uy addresses

industry captains during ‘Discover the Next’, an event championing
Converge Business products.
40
TIMEOUT:
Wilcon Depot pushes for post-crisis growth,

complements physical stores with a robust digital
S While providing Filipinos with repair and construction needs at the height of home renovation trends during the lockdown, Wilcon saw that innovation
was a key driver for their operations.
Wilcon Depot Inc., the country’s leading home improvement and

construction supply retailer, is one company that hit the ground
running after the pandemic lockdown and moved towards innovation
to drive business growth.
Carrying the resiliency they built from the past and optimism despite
the future uncertainties, the company continues its journey–this time
with the help of a reliable technology partner.
“The big lesson I learned is there is always opportunity in times of

crisis. You have to pursue, and you have to make tough decisions.
You always have to think big,” said Rosemarie Bosch-Ong, Senior
Executive Vice President and Chief Operating Officer of Wilcon Depot.
41
The noticeable shift in customers’ buying behavior prompted if you have a good connection and fast internet speed, then definitely,
the company to enhance its physical and digital footprint. From it also increases our productivity.”
video calls with customers to a VR Store experience, the company
embarked on innovations that opened up more personalized And as Wilcon prepares to take the business to greater heights,
customer experiences. targets are already set, which they aim to fulfill with Converge as
their partner in empowering the business through relevant enterprise
Wilcon maximized its online capabilities to adapt to this shift, digital solutions.
enabling its customers to get the feel of shopping physically at stores
even when browsing their devices. “We are very close to our strategy campaign, which is
#FlyingHighTo100 — it’s a journey to a hundred stores by the year
2025, and we’re close to it already. We’re on our 81st store, so we will
still continue enhancing our physical store coupled with our robust
digital presence,” Bosch-Ong shared.`
Leading fiber broadband provider Converge ICT Solutions Inc. has

been a reliable partner for the business, powering their operations by
boosting their productivity and efficiency.
Since they partnered with Converge in 2014, Wilcon has been

experiencing fast and reliable internet connectivity, which inspired
the company to expand the partnership further, from servicing
two depots and their head office to covering more depots, bargain
centers, and warehouses nationwide.
S Rosemarie Bosch-Ong, Senior Executive Vice President and Chief
“The partnership with Converge has changed our company’s Operating Officer of Wilcon Depot, shares that there is always
opportunity in times of crisis. “Wilcon did fare very well during the
internet connectivity standard. It significantly increased our
pandemic, and even in the presence of challenges and threats, you
business’s internet speed and network diversity,” Bosch-Ong noted. still have to be aggressive.”
“The internet is very vital in our business. Everybody is relying on the

internet so we can communicate easily. Everything is done virtually, so
42
CHAMPIONING PEOPLE-CENTRIC Through the “Go Deep” strategy, Converge continues to build up its
fiber last mile, further strengthening the network in different regions
TECHNOLOGICAL EXPANSION nationwide. The national strategy drives the Company to extend
its fiber links nationwide to reach more isolated communities and
Go Deep, Go National, Go International municipalities in Visayas and Mindanao.
The commitment to reaching the unserved and underserved is Converge now owns and operates an exclusive end-to-end fiber
backed by the network expansion nationwide that extends to millions network in the Philippines that extends from the backbone to the last
of households and businesses in the country. mile. The fiber network is among the newest in the Philippines, with
an average age of 3.5 years at the end of 2022.
By the end of 2022, Converge will have expanded its fiber footprint
to nearly 618,000 kilometers consisting of a subsea, aerial, and The “Go International” blueprint includes investing in international
terrestrial fiber optic cable network that covers the northernmost subsea cables, setting 2024 as the target year for operations. These
tip of Luzon to islands in Visayas and Mindanao. Over 7.9 million cables will provide more excess capacity to Converge that it can sell
fiber ports across the country have also been installed since the through the wholesale business, expanding locally and internationally.
end of 2022, including augmentation in existing coverage areas and Affirming the strategy to reach global content providers, Converge
expansion to new cities and municipalities. has been awarded a Facilities-Based Operations license by the
Infocomm Media Development Authority in Singapore.
Converge built redundancy into the network to deliver the best
possible experience to its customers. Today, the Company has The focus and desire to make connectivity mainstream drives
expanded coverage of more than 14.9 million homes, covering 56% Converge to the offense to become a top player in the industry,
of households nationwide. That is over and above the target of 55% winning for all Filipinos.
in three years - reaching it earlier than guided during the IPO. And
Converge is still growing, which makes it one of the country’s most
advanced and extensive cable systems despite being the newest in “The grant of an FBO license
the industry.
to our Singapore unit
significantly bolsters the
ability of the Converge
Group to sell international
wholesale connectivity and
capacity services, as we can
now directly service clients
in Singapore to cater their
growing needs for intra-Asia

and Trans-Pacific connectivity
requirements.”
DENNIS ANTHONY H. UY
CEO , Co-Founder and
Converge Business Director
43
Converge Annual Report 2022 CHAMPIONING PEOPLE-CENTRIC TECHNOLOGICAL EXPANSION
Augmenting International Cable Systems In 2022, Converge broke ground for the cable landing station of
the Bifrost in Davao, a 745 sqm, one-story facility that is the first
Powering the day-to-day connection of Filipinos to the World Wide fully owned and operated cable landing station of Converge in the
Web are international connections made through expansive networks Philippines.
of submarine cables. For Converge, fortifying global connectivity is
Progress on building the SEA-H2X
as pivotal as expanding the domestic fiber network. So in the recent
past, it has placed key investments in its international bandwidth Converge has acquired the right to 2 fiber pairs on the Hong Kong
portfolio. SAR – Singapore segment of the South East Asia Hainan - Hong Kong
Express Cable System (SEA-H2X). The SEA-H2X is a 5,000-kilometer
Converge has the most diversified international network in the
cable system connecting Hong Kong SAR China, Hainan China, the
country, with access to seven global cable systems and points of
Philippines, Thailand, East Malaysia, and Singapore. It is expected
presence in Singapore, Hong Kong, Taiwan, Japan, and the US.
to go online in 2024 and is seen to enhance intra-Asian connectivity
greatly.
Ongoing construction of the Bifrost cable system
EAC-C2C
With its largest investment to date on a cable system, Converge
secured an IRU for one fiber pair on Bifrost’s main trunk in 2021. This Converge boosted its international network capacity by an additional
augmentation in international capacity is seen to respond to future 1.3 TeraBits per second (Tbps) in the C2C cable system, making its
transpacific demands on its network as new-generation technologies submarine cable configuration fully redundant. The C2C cable system
become more commonly used in the region. is a part of the EAC-C2C (East Asia Crossing-City to City) network,
Asia’s largest privately owned submarine cable network, which
Aside from the IRU, Converge is the designated landing party in the stretches to 17,000 km. This cable system connects the Philippines
Philippines. to major data hubs like Hong Kong, Taiwan, Singapore, Japan, Korea,
and China.
With additional 1.3Tbps capacity on C2C going to Converge PoPs

(points of presence), customers are assured that the connections are
now fully redundant – guaranteeing network availability even in the
event of a submarine cable outage.
S At approximately 5,000 kilometers in length, the SEA-H2X cable

will consist of at least 8-fiber pairs between Hong Kong SAR and
Singapore, with a design capacity of 160 terabits per second to
meet the growing bandwidth requirement in the region.
44
CHAMPIONING DIGITAL TRANSFORMATION

CHAMPIONING A CUSTOMER-CENTRIC DIGITAL JOURNEY
Kickstarting the Converge Digital Transformation too, in a way that what we had planned at the beginning may not
An interview with Ulysses Naguit, Converge Chief be how the outcome will be.
Information Officer A key challenge here is integrating the old systems with the new,
and basically overhauling old practices and replacing them with
As the pandemic magnified the significance of technology to keep new ways of doing and thinking.
businesses resilient against crises, companies across different
industries were driven to fast-track their digital transformation We’re glad to have the support of management in this ambitious
initiatives, implementing several changes in their operations to adapt digital transformation. While there are many birth pains, the
to the increasingly digital world. benefits that we will reap from this venture will definitely be worth
it in the long run.
As a customer-focused organization, Converge began its digital
3. How did you approach the task of digitalizing your company?
transformation during the pandemic that involved its Operations
What was the philosophy behind it?
Support System (OSS), Business Support System (BSS), and
Customer Digital Interactions, rapidly changing how Converge The desire to simplify the customer journey is what drove our
interacts with its nearly 2 million customers. digital transformation.
Converge Chief Information Officer Ulysses Naguit shares how this There are several steps in fulfilling customer needs: from applying
evolution will future proof the business to address scale & growth for a subscription to managing them as a customer, there are so
while providing the best possible customer experience. many moving parts. We embarked on this digital transformation to
make sure their customer journey with Converge is seamless and
convenient.
1. Can you tell us what digital transformation means for your
company? How does it lead to better services for your At the same time, it will also allow the company to be more agile
customers? and able to create products that immediately address customer
needs.
In Converge, our digital transformation approach is built on this
question, ‘How can we make life easier for our customers?’ We
would like to improve the organization’s internal capabilities while
also making it simple, faster, and better.
Transformation of the customer journey is key to keeping our

nearly 2 million subscribers happy with Converge. We want to keep
serving customer needs with the best solutions available in the

market that leverage data-driven insight.
2. Have there been any major challenges to the digital journey?

How has the process been so far?
As our CEO and Co-Founder, Dennis Anthony Uy, says, nothing

worth doing happens overnight.
Our digital transformation journey is a complex and tedious

process that involves multiple departments. Constant collaboration S The customers’ needs are what drove the digital transformation of
the company, said Converge Chief Information Officer Ulysses Naguit.
is needed every step of the way. It’s a continuous learning process,
45
Converge Annual Report 2022 CHAMPIONING DIGITAL TRANSFORMATION
4. What are your thoughts on innovation in the post-lockdown era? has served as a catalyst, accelerating the adoption of digital tools
and forcing companies to rethink their strategies.
The Covid-19 pandemic forced people and companies to embrace
digitization. There is no going back. This is why we constantly For Converge, infrastructure is key. We completed the national
innovate to keep up with the changing demands of customers digital highway to ensure broadband access is possible for people
today. Their needs during the pre, during, and post-lockdown are all over the country. Now that we have the infrastructure in place,
very different and constantly evolving. we can think of products and services that can help others in their
own journeys.
For example, customers now require to have an end-to-end online
application process - they can’t be asked to go to a business center As our mission states, we aim to empower people, businesses, and
to apply or check if their area is serviceable. We have to find ways the nation to be their best with the power of technology. Our work
to do things digitally, using websites and applications. is not yet done.
Of course, we also invest in business centers to address the 6. What are your expectations for the future of connectivity?
area where customers appreciate a live interaction: primarily in
customer concerns like billing, troubleshooting, and repair. We expect further integration of systems - there will be an age of
hyperconnectivity. Concepts such as AI and the Internet of Things
We make sure we are available both digitally and physically. will become more commonplace.
5. What is the significance of ICT and digitalization today? With the Converge national digital highway in place, we can offer
value-added services such as applications in healthcare, security,
The COVID-19 pandemic has undeniably altered our lives in fintech, and the like. We are ready to adapt to the needs of
countless ways. During those uncertain times, the internet customers at a faster pace.
emerged as a lifeline for all. Connectivity has become vital for daily
activities such as education, work, essential purchases, medical Our digital transformation today also future-proofs Converge as we
consultations, banking, and much more. are now able to scale up and address growth.
When the pandemic hit us in 2020, our lives in Converge also

changed drastically. The need for fast, reliable fiber connectivity
at home became imperative. We had to respond promptly and
efficiently because people relied on us.
To address the surge in demand, we acquired a fleet of installation

vehicles and tripled our customer service support. We kickstarted
our digital transformation. And most importantly, we began our
nationwide expansion plan to serve unserved and underserved
communities across the country.
As we embark on the journey of rebuilding and recovering from the

pandemic, one thing has become very clear: we have emerged into
a world where digitalization lies at the core of people’s lives.
Digital transformation is not a buzzword; it represents a

fundamental shift in the way businesses and organizations operate,
communicate, and serve their customers. It encompasses the S In the first quarter of 2022, Converge launched its GoFiber app,
integration of technology into every aspect of an organization, envisioned to be a one-stop shop for payment, application, and
after-sales concerns.
from internal processes to customer interactions. The pandemic
46
Hall of Fame:
Awards
In 2022, Converge proved its mettle, reaping awards locally and internationally for its broadband products and services. Among these are awards
from the global leader in network intelligence and connectivity insights, Ookla, as well as others from established award-giving institutions that
are recognized in the telecommunications industry.
Ookla Top-Rated Fix Network Broadband Telecom of the Year - Philippines
Converge won the Ookla Speedtest™ Award for Top-Rated Fixed For its trailblazing efforts to put connectivity in the hands of Filipinos,
Network in the Philippines for the first half of 2022, reflecting the Converge was recognized by Asian Telecom Awards as Broadband
results of its customer-initiated Speedtest 5 Star Ratings during the Telecom of the Year in 2022. The Asian Business Review presents
six months. The award is given in consideration of the user customer the Asian Telecom Awards, the Singapore-based publication expert
satisfaction survey given after a speed test. Thus it reflects customer ranking Asia-Pacific telecom companies, which operators in the Asia-
sentiment not just on speed but the overall experience Converge Pacific telecommunications industry widely recognize.
provides its subscribers.
Ookla Best Video Experience Outstanding Wireline and/or Wireless Company

Converge once again took home an Ookla award based on customer- PTC Awards 2022: Converge ICT Solutions Inc. brings honor to the
initiated scoring as it received the Ookla® Speedtest® Award for country as it was named the Outstanding Wireline and/or Wireless
*Best ISP Video Experience in the Philippines for the second half of Company during the Pacific Telecommunications Council Awards
2022, with an overall 80.99 video score. The video scoring ranges 2022 in January 2022 for its efforts to improve the quality of Filipinos’
from 0 to 100 and rates users’ real-world experiences while streaming digital life.
videos, such as watching on a streaming app or website.
47
Converge Annual Report 2022 HALL OF FAME
Other Awards Entrepreneur of the Year Philippines (EOYP) 2022 Awards for his
pivotal role in bringing digital connectivity to more Filipinos across
Woman in Telecoms Award the country. The EOYP Awards is organized by EY Philippines through
the SGV Foundation.
Converge President and Co-Founder Maria
Grace Uy won the Woman in Telecoms “It is my distinct honor to receive this top entrepreneur award. We
Award at the World Communications believe, at Converge, that digital access is not a privilege of a few but
Awards, besting four other women a right of everyone. Thank you for recognizing our mission and what
leaders from global companies like US- we’ve been doing to make this a reality for Filipinos,” said Converge
based Verizon Business Group and UK CEO Dennis Anthony Uy during the awards banquet at the Grand
multinational Colt Technology Services. Hyatt Manila.
She is also the first Filipina to bring home
“We operate in an industry
this international telco award.
where access to technology
WCA is the industry’s most prestigious means more opportunities
award, founded in 1999, which recognizes executives, operators, and for growth and wealth.
startups that have proven their excellence in the rapidly evolving We strive to broaden
communications industry. this access and achieve
inclusive digitalization
Maria Grace Uy said that she’s happy to be recognized as a strong because we believe that
voice for women in telecoms all over the world. “But ultimately, I do businesses should serve a
believe that the success of Converge is a team effort. We focused on higher purpose, not just to
the huge demand for quality and reliable internet, we executed our expand their bottom line,”
plan very well and we are committed to deliver what we promise. In Uy added.
every little thing we do, we put our hearts and give our best.”
Converge executives joined in the awarding ceremony, in support of
“This award means so much to me as one of the founders of Converge the company CEO and Co-Founder.
and please allow me to share this award also with all the women who
are striving to succeed, not just in the telecoms industry but also in Uy together with his wife, Grace, founded Converge in 2007 at his
other male-dominated fields,” she added. hometown in Angeles, Pampanga with a vision to provide world-
class ICT services to Filipinos. Using the latest fiber optic technology,
As of end 2022, Converge had already expanded its coverage to Converge started providing internet services in 2012 and eventually
nearly 14.9 million homes, which makes it one of the country’s most expanded from Central Luzon to Metro Manila. In 2021, at the middle
advanced and extensive fiber networks despite being the youngest. of the pandemic, the Pampanga start-up built its own national
domestic fiber broadband network that linked Luzon to the major
Based on its end-September report to the National islands of the Visayas and Mindanao.
Telecommunications Commission (NTC), Converge has already

extended its fiber footprint to nearly 600,000 kilometers, With the theme of “Undaunted.Unstoppable.”, EOYP 2022 gathered
strengthening its position as the leading pure fiber network provider 18 finalists who have exemplified excellence in management and
in the country. leadership amid an increasingly challenging business environment.
Converge CEO Dennis Anthony Uy is EY The Entrepreneur of the Year was founded in the United States by
professional services firm Ernst & Young in 1986 to recognize the
Entrepreneur of the Year 2022 achievements of the most successful and innovative.
Converge CEO and Co-Founder Dennis Anthony Uy was hailed as the
Entrepreneur of the Year and Master Entrepreneur at the prestigious
48
Hall of Fame:
Partnerships
American Chamber of Commerce - Visayas National ICT Confederation of the Philippines
American Chamber of Commerce (AmCham) Nordic Chamber of Commerce of the Philippines (NORDCHAM)
American Chamber of Commerce (North Luzon) Pampanga Chamber of Commerce and Industry Inc. (PAMCHAM)
Association of Building Managers of Ortigas Center, Inc. (ABMOCI) Philippine Association of Building Administrators (PABA)
Australian-New Zealand Chamber of Commerce (ANZCHAM) Philippine Chamber of Commerce Industry (PCCI)
Bank Marketing Association of the Phil. (BMAP) Philippine Chamber of Telecommunications Operators (PCTO)
British Chamber of Commerce (BRITCHAM) Philippine Software Industry Assoc. (PSIA)
Cagayan De Oro Executive Lions Club Semi-Conductor and Electronics Industries of the Phil. Inc. (SEIPI)
Camarines Sur Chamber of Commerce and Industry, Inc. (CSCCI) Subic Bay Freeport Chamber of Commerce
Canada Chamber of Commerce (CANCHAM) Supply Chain Management Association of the Phil. (SCMAP)
Cebu Chamber of Commerce and Industry AmCham Mindanao
Cebu IT BPM Organization Architects Golf Classic
Clark Investors & Locators Association (CILA) Bohol Chambers
Contact Center Association of the Phil. (CCAP) CIOF Foundation, Inc.
European Chamber of Commerce, Phil. (ECCP) Global Compact Network Philippines (GCNP)
Food Chamber (PCFMI) Hotel, Resort & Restaurant Association of Cebu, Inc. (HRRACI)
General Santos City Chamber of Commerce & Industry, Inc. Hoteliers Information Technology Association of the Philippines (HITAP)
Healthcare Information Management Assoc. of the Phil. (HIMAP) Internet & Mobile Marketing Association of the Philippines (IMMAP)
Hotel and Restaurants Association, Pampanga Inc. (HARP) IT Interaction Philippines (ITIP)
Information Technology Assoc. of the Phil. (ITAP) Makati Business Club (MBC)

IT and Business Process Assoc. of the Phil. (IBPAP) Philippine Cable and Telecommunications Association (PCTA), Inc.
Laguna Technopark Association Inc. Philippine Institute of Chemical Engineers (PIChE)
Management Association of the Philippines (MAP) Philippine Retailers Association
Mandaue Chamber of Commerce and Industry Taguig- Bagumbayan Industrial Commercial Association
Metro Angeles Chamber of Commerce and Industry Inc. (MACCII) United States Agency for International Development (USAID)
Metro Clark ICT Council Inc. (MCCCI)
49
50
Risk Management
RISK MANAGEMENT • It also assists the Board in assessing the effectiveness of the
Board’s processes and procedures in the election and
The long-term success of Converge depends on its ability to identify replacement of directors.
and manage the risks that may impact its operations. These risks exist
in various aspects of its business, from the regulatory and competi- • The Remuneration Committee assists the Board in performing
tive environment to its core operations and network expansion. Thus, functions over Management’s recommendations on the
Converge aims to integrate awareness in all areas of its business and remuneration plan, incentive schemes, and other
properly balance risk and reward for sustainable growth. compensation and benefits of the Company.
• The Executive Committee possesses the powers of the Board.

MANAGEMENT APPROACH It has the right to use them in managing the business and
affairs of Converge when the Board is not in session, except for
The Company documented policies and internal controls to ensure it certain actions and decisions.
can reasonably manage process-level risks. At enterprise and project
levels, it also adopted the following management approach: ENTERPRISE RISK MANAGEMENT
Board Committees: establishing and maintaining various Board To achieve its corporate objectives, Converge acknowledges the
Committees are an integral part of the Company’s risk management. need for the active management of the risks inherent in its business
Its Board of Directors created several committees to assist in which should involve the entire organization. For this reason, it set
managing and mitigating the risks the Company faces. These up a dedicated Enterprise Risk Management (ERM) Team led by a
committees are also involved in the overall governance matters of the Risk Management Director, reporting to the President and Chief Risk
Company: Officer.
• The Board Risk Oversight Committee (BROC) oversees the In 2021, an ERM Program was established to manage imminent and
Company’s Enterprise Risk Management (ERM) system, emerging risks in the internal and external operating environments of
including risks originating from subsidiaries, affiliates, and Converge. The ERM Program is aligned with the Company’s Manual
investments. It also ensures the functionality and effectiveness of Corporate Governance, which mandates the Board to ensure
of the ERM system, the sustainability framework, and periodic a sound ERM framework to effectively identify, monitor, assess,
review of this framework to ensure it remains appropriate and manage key business risks. In addition, the Company’s BROC
in light of material changes to the Company’s size, complexity, provides oversight of management functions relating to strategic,
business strategy, and business and regulatory environments. financial, operational, compliance, and other risks of the Company,
which involves periodic disclosure of risk exposures and related risk
• The Audit and Related Party Transactions Committee is
management activities.
responsible for enhancing the Board’s oversight capability
over implementing the Company’s Code of Conduct; and The ERM framework based on ISO 31000:2018 has been adopted
the financial reporting, internal control system, internal and and provides the foundation for the Company’s management of

external audit processes, and compliance with applicable laws risks through the ERM Program. It is anchored on the mandate and
and regulations of Converge. The Committee also reviews commitment from the Board and top management to implement the
and evaluates related-party transactions to enhance corporate ERM process across the organization.
transparency and promote fair transactions.
It is envisioned to be dynamic and shall be continuously improved
• The Corporate Governance Committee is responsible for to be responsive to the needs of the organization and attain the
assisting the Board in performing its corporate governance Company’s desired state.
responsibilities and reviewing and evaluating the qualifications
of all persons nominated to the Board and other appointments
requiring Board approval.
51
Converge Annual Report 2022 RISK MANAGEMENT
Converge also adopted the ERM process defined in ISO 31000:2018 in Evaluation: This involves comparing the level of risk found during
managing risks. At each stage of the risk management process, tools the analysis process with established risk criteria. Based on this
and techniques suited to the Company’s objectives, resources, and comparison, the need for treatment, further analysis, and other
capabilities shall be employed. alternative actions may be considered.
Through the ERM Program, the Company shall embed risk awareness Treatment: The selection and implementation of strategies and
within its culture and effectively communicate to the Board and actions to modify risks that need treatment based on risk analysis and
Management the risks that it could potentially face. Converge also looks evaluation results. Appropriate risk treatment options are selected by
into Environment, Social, and Governance (ESG) risks and assesses balancing the required costs and the benefits derived from implementation.
how these could be incorporated into its ERM framework and eventually
formalized in its applicable business processes, metrics, and targets. Reporting and Monitoring: The implementation of selected options
is planned, constantly monitored, and regularly reviewed. The
The Chief Executive Officer (CEO) is the comprehensive risk executive responsibilities for implementation and monitoring have been defined.
and is ultimately responsible for managing key risks, setting ERM The results of review and monitoring are recorded and reported
priorities, tolerances, and policies, and developing, executing, and internally and externally as appropriate.
monitoring risk management strategies. The CEO directs the design
and implementation of appropriate systems, tools, and methodologies In 2021, Converge formalized the Environment, Social, and
to support ERM processes and other risk management activities. Governance (ESG) Committee, a cross-functional working group
responsible for determining risks and opportunities related to ESG
The Chief Risk Officer (CRO) is the ultimate champion of ERM at and implementing ESG and other sustainability-related initiatives.
Converge. The CRO oversees the entire risk management function The committee also governs its Corporate Social Responsibility
and the development, implementation, maintenance, and continuous (CSR) Team, ensuring CSR activities are planned, implemented,
improvement of ERM processes and tools. Supporting the CRO is and measured. Currently, the key focus areas of the Company’s
the ERM Team responsible for developing risk management tools, CSR activities include the provision of basic needs in response to
methodologies, and processes. It leads the implementation and COVID-19 and natural disasters, greening programs to mitigate the
dissemination of ERM across Converge in coordination with the CRO Company’s impact on the environment, digitalization support for the
and risk owners. education sector, partnerships, and education programs for a safer
internet, and digital learning tools and internet access to marginalized
In 2021, the Company’s Senior Leadership Team (composed of communities. In addition, the Company also put its Sustainability
the CEO, President/CRO, and their direct reports) determined the Framework and Roadmap in place.
most significant risks facing the Company. The management of top
corporate risks, which have been mapped out up to the department Project Risk Management: Project risk management processes are
level, was delegated to the appropriate Risk Owners. The Risk embedded in all key strategic and operational initiatives of Converge.
Owners have formulated and committed to a risk management plan The Company requires each new major project to have a formal
monitored by the ERM Department, which defined specific action project risk assessment and mitigation plan. Risks and issues are part
points, accountability, and timeline. The status of the top corporate of regular status reporting, and action plans to address the identified
risks is regularly discussed and reported to the Board Risk Oversight risks and issues are monitored accordingly.
Committee.
As Converge sets its sights on further expanding its reach and
The identified risks underwent the following phases: footprint, it continues to engage talents in managing risks across
the organization. With active involvement and appreciation of risk
Analysis: This refers to the thorough understanding of each risk. management at all levels within the organization, Converge is geared
This step involves consideration of the causes and sources of risks, up to manage uncertainties in the business, regulatory, and physical
their consequences or impact, the likelihood of the impact, and the environment. It is equipped to achieve and seize new business goals
effectiveness by which the risks are managed. as it continues its pursuit of becoming a world-class ICT organization
that empowers people, businesses, and the nation to be their best.
52
MAJOR RISK FACTORS AND RISK MANAGEMENT MITIGATION
f Establishment of a dedicated Business Continuity and
The Senior Leadership Team determines the most significant risks
Disaster Recovery Team to quickly respond to natural and
facing the Company. The management of top corporate risks, which man-made emergencies
have been mapped to the department level, was delegated to the
appropriate Risk Owners. f Establishment of ISO 22301:2019 Business Continuity
Management System (BCMS) documents and processes
Risk Owners formulate and commit to a risk management plan, f Implementation of Remote Monitoring System to proactively
monitored by the ERM Department, which defines specific action monitor nodes’ operational status in various regions coupled
points, accountability, and timeline. The status of the top corporate by timely and effective troubleshooting and resolution of
risks is regularly discussed and reported to the Board Risk Oversight possible equipment issues
Committee. f Enhancement and improvement network infrastructure
by applying corrections and executing preventive action
The ERM framework based on ISO 31000:2018 has been adopted and through our Project Backbone 6Sigma
provides the foundation for our management of risks through the
ERM Program. It is anchored on the mandate and commitment from f Continuous hardening of our systems, and additional
the Board of Directors and top management to implement the ERM network redundancy to lessen the impact of fiber cuts and
localized equipment failure
process across the organization. It is envisioned to be dynamic and
shall be continuously improved to be responsive to the needs of the f Improvement of insurance programs to cover the key assets
organization and attain our desired state. Converge has also adopted and exposures of Converge as well as its subsidiaries and
the ERM process defined in ISO 31000:2018 in managing risks. At affiliates
each stage of the risk management process, tools and techniques that f Emergency drill and Emergency Call Tree drill actual
are suited to the Company’s objectives, resources, and capabilities activation
shall be employed.
2. CLIMATE CHANGE
1. BUSINESS DISRUPTION RISK The company is exposed to risks resulting from changes in
global climate patterns and affecting natural and human
The continuity of our services and the growth of our business is
systems. These include risks related to the physical impacts of
highly dependent on the proper functioning of our network and
climate change and risks related to the transition to a lower-
infrastructure, our ability to conduct maintenance, upgrades,
carbon economy. may exacerbate the impacts of other risks if
and repairs on our network and infrastructure, and our ability
they materialize, such as business disruption, macroeconomic
to continue our network rollout and expansion. Damage
factors, environment, and regulation.
or disruptions to our network operations, other network
infrastructure, and expansion plans due to natural disasters MITIGATION

and calamities such as typhoons, floods and earthquakes,
f Climate Modelling to determine the physical effects of
public health crises, and other events beyond our control could climate change, particularly the rising sea level on our assets
materially and adversely affect our financial performance based on COP27 (1.5 degrees)
and operations. In addition, our network operations may be
disrupted by accidental damage, including natural disasters f Natural Catastrophe Modeling to determine the potential
losses of the company from key perils such as typhoons and
or environmental elements such as heavy rainfall or typhoons,
extreme weather events, etc.
or by third parties, such as local government authorities
undertaking construction works alongside our underground f Transition in energy source to geothermal energy for our
and aerial network cables. key facilities and with plans to expand the use of renewable
energy across the organization
53
f Continuous investment in network hardening and resilience adversely affect our reputation, business, financial condition,
in anticipation of increased adverse weather events over results of operations, and prospects.
time
MITIGATION
f Monitoring of regulatory changes in response to climate
change f Deployment of a new customer ticketing system
f Deployment of an intelligent and cloud-based solution that
continuously listens, knows, and engages customers across
3. COMPETITION RISK various social media channels
f Continuous improvements (provide consistent availability
We face competition from two major telecommunications and timely support 24/7, system improvements to minimize
companies in the Philippines and other operators. We may downtime) for better customer experience for After-Sales
face competition from potential new entrants. We also face Transactions
competition from technologies from new and existing industry
players.
MITIGATION 5. DATA PRIVACY RISK
We collect data from employees, clients, customers, third-

f Expansion of distribution and last-mile networks toexisting party vendors, and affiliates. We are processed in adherence
and new coverage areas in Visayas and Mindanao
to the general principle of proportionality, transparency, and
f Improved product offerings (e.g., the higher speed at the legitimate purpose in compliance with the Data Privacy Act
same cost), offering customers higher value broadband of 2012. These data can be misused, maliciously disclosed,
plans and customer service or mishandled, or a data subject’s data privacy rights are
f Launched new product offerings (e.g., prepaid internet) to otherwise violated by us or our appointed Personal Information
serve all market segments Processors. Thus, we do our utmost to ensure this information
f Launched XCLSV, a new product that guarantees premium is only used in the provision of safe and quality services on our
experience and the best and personalized customer support part and that no external entities unrelated to these will be able
f Manage and ensure compliance of third-party sales agents to access the data.
and managed service providers with our policies
MITIGATION
f Continue to incentivize our third-party sales agents
appropriately and managed service providers to expand and f Appointment of a Data Protection Officer
optimize our customer penetration in their respective areas f Acquisition and implementation of a Data Privacy
Management Platform and a Consent Management Platform
f Updating the organization’s Record of Process Activities and
4.CUSTOMER SERVICE RISK Registry of Data Processing Systems in line with business
process and system improvements

Our customer satisfaction depends on our customer service’s
f Finalizing a Data Privacy Handbook for employees to serve
effectiveness in our ability to address requests and inquiries,
as a go-to guide for relevant data privacy standards, policies
install services, and deal with complaints and service issues
and procedures
promptly and satisfactorily. Although our Customer Experience
Group maintains various tools and platforms to address f Empowering the team through the recruitment of additional
customer needs and concerns, any unsatisfactory response Compliance Officers for Privacy and mobilizing a team of
or lack of responsiveness by our customer service team could Corporate Governance and Data Privacy Champions
adversely affect customer satisfaction, loyalty, and our business f Conducting a Data Privacy Awareness Campaign across the
reputation. Dissatisfaction with our customer service could organization and third-party partners
54
6. FRAUD RISK 8. MACROECONOMIC FACTORS RISK
We are exposed to the occurrence of fraudulent acts We are exposed to risks associated with any future downturn
committed by employees, customers, business partners, or in the domestic, regional, or global economy that could reduce
other stakeholders that may negatively impact the company’s the demand for our services, affect the ability of our customers
reputation and result in loss of income, property, or other to pay for our services or subscribe to value-added services,
assets. force our customers to downsize bandwidth requirements,
among others, all of which will materially adversely affect
MITIGATION our business, results of operations, financial condition, and
f Implementation of core compliance policies and procedures prospects. We are also exposed to the movements in foreign
such as the Code of Business Ethics, Anti Bribery and Anti- exchange and interest rates, exposing the company to
Corruption Policy, Whistleblower Policy and Procedure, economic and accounting losses.
Compliance Risk Management Policy, and Blacklisting and
Suspension Policy MITIGATION
f Use of a Whistleblowing Platform as an independent tool f Monitoring of Philippine economic assessments (e.g., World
for stakeholders to report any wrongdoing without fear of Bank, BSP) and assessment of the impact on business plans,
retaliation investments, operations, and other key risks
f Continuous improvement and automation of internal controls f Entering into contracts to reduce the impact of foreign
f Strengthening of compliance, internal audit, and security exchange and interest rate movements (e.g., hedge)
capabilities to prevent, detect, and investigate cases of fraud f Ensuring adequate available resources (raised at reasonable
costs) for immediate and long-term investments, capital
repayments, and expenses
7. INFORMATION SECURITY RISK
Our network and systems are potentially exposed to physical 9. OCCUPATIONAL HEALTH, SAFETY,
or electronic break-ins, computer viruses, piracy, hacking, AND ENVIRONMENT RISK
phishing attacks, and other disruptive problems despite
security measures. Furthermore, our operating activities We are subject to various laws and regulations relating to
could be subject to risks caused by misappropriation, misuse, health, safety, and environmental matters. These include laws
leakage, falsification, or accidental release or loss of information relating to the protection of the environment, human health,
maintained in our information technology systems and network and human safety, such as laws and regulations governing
and those of our third-party vendors, including customer, the management and disposal of, and exposure to, hazardous
personnel, and vendor data. Breaches of our network, including materials, for which we could be liable for the costs of
breaches through piracy or hacking, may result in unauthorized removal of certain hazardous substances and clean-up of
access to content carried on our network or a breach of privacy certain hazardous locations. The introduction of, or changes

information transmissions. in, various laws and regulations relating to health, safety,
and environmental matters applicable to our business could
MITIGATION materially adversely affect our business, results of operations,
f Adoption of ISO 27001: 2013 Information Security financial condition, and prospects.
Management System standards
MITIGATION
f Conduct of internal and external vulnerability assessments
and penetration testing of our applications and portals f Establishment of a Safety, Health, Environment, and Security
f Launch of Secure Access Service Edge (SASE)-based (SHES) Committee for the governance of safety, health,
products for enterprise clients environment, and security matters
55
f Conduct of various safety-related training including, but In addition, we may be affected by political and social
not limited to, Safety Officer Training, Working at Heights, developments in the Philippines and changes in the political
Mandatory Eight-Hour Safety and Health Training, and First- leadership and government policies in the Philippines. Such
Aid Training political or social developments may result in introducing new
laws and regulations (e.g., legislation on the open internet
f Establishment of an Energy Management Policy and service levels such as refunds for service outages and
in accordance with ISO 50001:2018 Energy Management
interruptions) that may adversely impact our business.
Systems standard
f Establishment of a Solid and Hazardous Waste Management MITIGATION
Framework f Creation of a Government Relations Group
f Zero Waste Campaign to support solid waste management f Staying abreast with new regulatory mandates and ensuring
target of zero waste to landfill compliance with such mandates in a timely manner
10. REVENUE LEAKAGE RISK 12. TALENT MANAGEMENT RISK
We are exposed to revenue leakage affecting our operating We depend on the availability and continued service of several
results and financial condition as the telecommunications key employees, managers, and other individuals, including our
industry is inherently vulnerable to this risk. The sources of directors and senior management. These key individuals are
leakage are driven by internal and external factors such as heavily involved in the daily operation of our business and make
system limitations, process gaps, and fraudulent behavior of strategic decisions, ensure their implementation, and manage
stakeholders. and supervise our development. Our future operating results
depend, in a significant part, on our ability to attract, develop
MITIGATION and retain talents to meet current and future business needs
f Establishment of a Revenue Assurance Team to develop and objectives. In addition, the sudden vacancy in a senior
controls into existing and new products and controls management role that cannot be filled satisfactorily within
f Implementation of appropriate internal controls covering an acceptable time frame due to the absence of an identified
revenue-impacting processes “Ready Now” successor may adversely affect our operations.
f Implementation of an automated Revenue Assurance tool
MITIGATION
f Implementation of various talent management programs and
11. SOCIO-POLITICAL AND REGULATORY RISK activities that ensure engagement and retention of existing
employees and attract new talents
The broadband, data communications, and internet services f Establishment of Converge University covering internal
we provide are regulated, supervised, and regulated by training programs for continuous learning and development
various regulatory authorities. We are required to obtain and of employees; with specialized training programs for
maintain a franchise from the Philippine Congress to maintain required critical competencies
telecommunications systems throughout the Philippines
f Implementation of a talent management and succession
and numerous regulatory licenses and permits from various
planning program which includes talent reviews,
entities, such as the NTC and local government units, to install
identification of competency gaps and implementation of
our cables and other activities. Our franchise, licenses, and individual development plans
permits are subject to review, interpretation, modification,
or termination by the relevant authorities. The relevant
government authorities have ultimate discretion over whether
licenses or permits will be granted or revoked.
56
13. TECHNOLOGY CHANGE RISK
We operate in an industry driven by technological change. We

may be required to upgrade our network or systems in response
to technological changes, which could increase our capital
expenditure and operating costs materially and adversely
affect our operations and financial condition results. We may
incur more capital expenditure than we currently contemplate.
In addition, advances in technology and electronics and their
impact on our operations and the competitive landscape of our
industry are challenging to predict.
MITIGATION
f Up to date with the latest technological trends in the

industry
f Use of upgradeable technology/infrastructure to cater
to future demand while avoiding significant capital
requirements
14. THIRD-PARTY RISK
We rely on third parties for the supply of network materials

(e.g., fiber optics), equipment (e.g., network terminals,
equipment routers, and equipment for customer premises),
and services (e.g., construction work, outsourcing of certain
operations, and international connectivity). An adequate
and dependable supply of network materials, equipment,
and services is critical to our ability to deliver high-quality
broadband services to our customers.
MITIGATION
f Establishment of a Vendor Management and Development
Team, who plays an integral role in spearheading further

improvements in our supply chain and procurement
guidelines
f Enhancement of our third-party due diligence process
covering vendors, service providers, contractors, and
subcontractors
f Ongoing performance monitoring of key business partners
supporting critical customer- facing processes
57
58
Corporate Governance
Corporate Governance Independent Directors
In compliance with Section 22 of Republic Act No. 11232 or the
In compliance with pertinent regulations, the Integrated Annual
Revised Corporation Code, which requires, among others, that
Corporate Governance Report (iACGR) will replace the Corporate
the board of corporations vested with public interest shall have
Governance section of this Report, the previous SEC Form ACGR and
independent directors constituting at least twenty percent (20%)
PSE’s CGR-1, and shall be submitted by the Company to pertinent
of such board. The Company’s Board of Directors includes 3
regulatory agencies on or before May 30 of every year. The iACGR
independent directors (representing almost 43% of total board
will be available on the Company website upon completion and
representation), all of whom have the necessary qualifications and
submission to the regulatory agencies.
without any disqualifications. The Board comprises experienced
On October 8, 2021, the Board amended the Manual on Corporate individuals with different and complementary skills, experiences,
Governance (Manual) to cover compliance with requirements perspectives, and backgrounds.
under SEC Memorandum Circular No. 19, Series of 2016, which
The Independent Directors, Mr. de Jesus, Mr. Tetangco, and Mr.
institutionalize the principles of good corporate governance in the
Reyes, are independent of management and free from any business
entire organization. We believe that it is a necessary component of
or other relationship which could or could reasonably be perceived
sound strategic business management. Hence, we undertake efforts
to materially interfere with their exercise of independent judgment in
to create awareness within the organization.
carrying out their responsibilities as directors of the Company.
The Manual provides that the Board is primarily responsible for the
corporation’s governance. In addition to setting the policies for Board Performance for FY 2022
accomplishing corporate objectives, it has the duty to provide an
independent check on the Management. The Board must hold regular
and special meetings in person or through teleconferencing. Dennis Anthony H. Uy 92%
In adopting the Manual and its revisions, we understand the
responsibilities of the Board and its members in governing the Maria Grace Y. Uy 92%
conduct of our business, the Board Committees, in focusing on
specific board functions to aid in the optimal performance of its Jose P. De Jesus 92%
roles and responsibilities, and the officers, in ensuring adherence
to corporate principles and best practices. The Manual establishes,
among others, the composition of the board committees and Amado M. Tetangco, Jr. 92%
principles on adequate and timely information, accountability and
audit, stockholders’ rights and protection of minority stockholders’ Roman Felipe S. Reyes 100%
interests, communication process, training, disclosures, self-
assessment, and sustainability. An evaluation process of compliance
Francisco Ed. Lim 100%

with the Manual has likewise been established.
The Company’s Amended Manual on Corporate Governance and Saurabh N. Agarwal 85%
other governance documents are found here:
https://corporate.convergeict.com/corporate-governance/. 1 2 3 4 5 6 7 8 9 10 11 12 13
For further details on the Company’s Corporate Governance

initiatives, please refer to Exhibit 2, Sustainability Report – Number of meetings attended Total number of meetings
Sustainability at Converge section.
59
Converge Annual Report 2022 CORPORATE GOVERNANCE
Board Committees Committee Meetings for FY 2022

The respective committees conducted the required number of
The Board has established board committees that focus on specific
meetings under the Code of Corporate Governance:
board functions to aid in the optimal performance of its roles and
responsibilities:
Name Meetings Held
AUDIT AND RELATED PARTY TRANSACTIONS COMMITTEE
Audit and RPT Committee 9
Roman Felipe S. Reyes Corporate Governance Committee 6
Chairman
Jose P. de Jesus, Amando M. Tetangco, Jr., Maria Grace Y. Uy Board Risk Oversight Committee 5
Members
Renumeration Committee 2
CORPORATE GOVERNANCE COMMITTEE

Continuing Education Programs and Trainings for
Jose P. de Jesus Directors
Chairman
Amando M. Tetangco, Jr., Roman Felipe S. Reyes, Francisco Ed Lim Pursuant to the Code of Corporate Governance, the directors and senior
Members management attended at least four (4) hours of training for FY 2022
Name and Designation Dates and No. of Hours

BOARD RISK OVERSIGHT COMMITTEE
Jose P. De Jesus September 7, 2022 /
Amando M. Tetangco, Jr. Chairman of the Board /
Independent Director 4 hours
Chairman
Roman Felipe S. Reyes, Francisco Ed Lim Dennis Anthony H. Uy November 17, 2022 /
Members Executive Director,
Chief Executive Officer 4 hours
Maria Grace Y. Uy November 17, 2022 /

REMUNERATION COMMITTEE Executive Director, President, Chief
Risk Office, Chief Resource Officer 4 hours
Jose P. de Jesus
Chairman Saurabh N. Agarwal November 17, 2022 /
Dennis Anthony H. Uy, Maria Grace Y. Uy,

Non-Executive Director 4 hours
Francisco Ed Lim, Saurabh N. Agarwal
Members Francisco Ed. Lim November 17, 2022 /
Non-Executive Director 4 hours
Roman Felipe S. Reyes November 17, 2022 /

Scan to read on the Company’s
corporate governance initiatives:
Amando M. Tetangco, Jr. July 20, 2022 /
60
Name and Designation Dates and No. of Hours Nomination and Election Policy
The Company has in place its nomination and election policy
Jesus C. Romero November 17, 2022 /
to ensure transparency of the nomination process to the board.
Chief Operations Officer 4 hours
The policy likewise ensures an alignment between the nominees’
Ronald G. Brusola November 17, 2022 / qualifications and the company’s strategic direction.
Chief Technology Officer 4 hours
Benjamin Rex Emilio Azada November 17, 2022 / Board Diversity Policy
Chief Strategy Officer,
Chief Sustainability Officer 4 hours The Company adopts a Board Diversity Policy. The Company
recognizes the importance of adhering to globally competitive
Ulysses C. Naguit November 17, 2022 / governance frameworks. This includes being at the forefront of
Chief Network Officer 4 hours implementing a fair and diverse culture, particularly in selecting
the members of its Board. The Company eliminates barriers of age,
Alberto L. Santos November 17, 2022 / gender, race, and nationality, with the clear intention of uniting highly
Chief Customer Experience Officer 4 hours skilled and capable individuals to lead. The conglomeration of diverse
Paulo Martin G. Santos directors promotes and empowers appropriate representation.
November 17, 2022 / Women are given equal opportunity and footing without any sense
Chief Network Transformation
Officer 4 hours of discrimination or belittlement. The same principle applies to
different races, nationalities, and gender. The Company realizes that
Christine R. Blabagno November 17, 2022 /
encompassing diversity will yield better sustainability and a stable
Treasurer 4 hours
corporate governance framework. Metrics on the achievements of
Elvira C. Oquendo November 17, 2022 / board diversity will be reported to the Board annually.
Corporate Secretary 4 hours
Owen Kieffer D. Ocampo November 17, 2022 /

Insider Trading Policy
Investor Compliance Officer 4 hours The Company also adopts an Insider Trading Policy. The Insider
Trading Policy aims to safeguard material non-public information
Laurice P. Esteban-Tuason November 17, 2022 / of the Company and ensure that Insiders, while possessing such
Corporate Compliance Officer 4 hours information, shall not gain an unfair advantage in dealing with and
trading the Company’s securities.
Anthony Vergel B. Velasco November 17, 2022 /
Internal Audit Director 4 hours

61
Related Party Transactions Policy Succession Planning Policy

The Board of Directors also adopted a Related Party Transactions
In 2022, the Board approved the Succession Planning Policy, which
Policy pursuant to SEC Memorandum Circular No. 10, Series of 2019.
aims to ensure that the business of the Company will not be affected
This Related Party Transactions Policy aims to ensure the integrity
on account of voluntary or involuntary cessation from office or
and transparency of all Related Party Transactions of the Company, its
position of any member of the Board and Senior Management. To
subsidiaries, affiliates, and related parties. Related Party Transactions
address the foregoing, the Company shall identify and create a
shall be reviewed, approved, ratified, and disclosed as required under
talent pool of candidates and high-performing personnel who can be
relevant laws, rules, and regulations.
considered for nomination, election, or appointment at the Board and
Senior Management Level positions and equip them to assume such
Retirement Plan and Performance Incentive leadership roles.
Framework
The Company has in place a Retirement Plan which is aligned with
the market in order to attract and retain the best talents in the long-
term perspective. The Company also has the Performance Incentive
Framework (PIF), which specifically identifies the relationship
between remuneration and performance. The Company recognizes
the significance of linking performance and pay to create and foster
a “Pay for Performance” culture across the organization. Hence,
it strives to create a rewards system that is directly proportional
to performance contribution and achievement levels. This PIF is
created to drive the Company’s goal to improve performance and
retention with a competitive annual incentive strategy based on
clear performance metrics to motivate and reward to achieve high
performance levels annually.
62
Whistleblower Mechanisms, Conflict of Interest Human Rights Policy and Child Online
Policy, and Anti-Bribery and Anti-Corruption Policy Safeguarding Policy
The Board establishes policies, programs, and procedures that For 2022, the Board has likewise adopted key policies such as the
encourage employees to actively participate in realizing the Human Rights Policy and Child Online Safeguarding Policy, pursuant
company’s goals and governance. The Company is committed to to the United Nations’ key principles. The Human Rights Policy
ensuring that the principles of integrity, fair dealing, and honesty are was created in order to show the Company’s effort to elevate its
incorporated into all its policies and processes. Thus, in 2022, the operational standards to adhere to the best practices of ethics and
Company strengthened its resolve to fight bribery and corruption, integrity, particularly in ensuring that we observe and respect Human
deal with conflicts of interest, and empower all its stakeholders to Rights pursuant to the United Nations (UN) Guiding Principles on
speak up and report any instance of wrongdoing by adopting the Business and Human Rights, International Bill of Human Rights,
Whistleblowing Platform. The Board likewise amended its Anti- and International Labor Organization’s declaration on fundamental
Bribery and Anti-Corruption (ABAC) Policy to signify the Company’s principles and rights at work. The Child Online Safeguarding Policy
commitment to prohibiting acts related to bribery or corruption represents the Company’s mandate to promote and foster a safer
as a participant in the United Nations Global Compact (UNGC). internet experience for its customers and end-users, particularly
The amended ABAC Policy also re-affirms our compliance with children who are vulnerable to malicious content, cyberattacks,
all applicable ABAC laws, including ESG standards enabling the and online exploitation. Converge established this policy to combat
Company to act with the highest standards of integrity and ethics. threats targeting children and build effective prevention and control
Through the ABAC policy, we aim to further guide our employees, measures within Our network. Through implementing this policy, the
stakeholders, and business partners on acting according to our Company aims to uphold children’s rights and protect them against
Company values and understanding how bribery and corruption OSAEC/CSAEM, cyberattacks (including financial fraud), or online
greatly affect our organization, the industry, and the nation. schemes targeting children. This policy signifies the Company’s
commitment to act on negative impacts brought about by the misuse
and abuse of digital space, specifically targeting children.
To know more about the

Company’s Whistleblowing
Platform, you may scan this
QR code
63
BOARD OF DIRECTORS
JOSE P. DE JESUS MARIA GRACE Y. UY DENNIS ANTHONY H. UY

Chairman, Independent Co-Founder, President, Chief Resource Officer, Co-Founder, Chief Executive
Non-Executive Director Chief Risk Officer, and Executive Director Officer, and Executive Director
64
SAURABH N. AGARWAL FRANCISCO ED. LIM ROMAN FELIPE S. REYES AMANDO M. TETANGCO JR.
Non-Executive Director Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director
65
JOSE P. DE JESUS | Chairman, Independent Non-Executive Director
Jose P. de Jesus, Filipino, 88, is the Chairman and As a leading business personality, Mr. de Jesus
Independent Director of Converge since June holds directorships in several corporations,
2020. including Petron Corporation and SMC Skyway
Corporation. In recognition of his leadership
Mr. de Jesus is currently a corporate consultant and management excellence, Mr. de Jesus has
for diversified Philippine conglomerate San Miguel received the CEO Excel Awards in Leadership
Corporation and serves on multiple boards. Communication and the Lux in Domino (Most
Throughout his executive career, Mr. Jesus held Outstanding Alumnus) Award from alma mater
senior positions in Manila Waterworks & Sewerage Ateneo De Manila University. He was most recently
System (MWSS), Philippine Long Distance awarded the Ulirang Ama Award in the field of
Telephone Co. (PLDT). He was President and Business & Industry in 2019.
Chief Executive Officer of Manila North Tollways
Corporation and MERALCO (Manila Electric Mr. de Jesus completed his graduate studies in
Company). Human Development at the University of Chicago.
He held a Master’s Degree in Sociology from
Mr. de Jesus utilized his skills in strategic Ateneo De Manila University and obtained his BA
management in government when he was in Economics.
appointed to the helm of two major agencies,
the Department of Public Works and Highways Expertise: General Management, Technology,
(1990-1993) and the Department of Transportation Media and Telecommunications Industries, Legal,
and Communications (2010-2011). Prior to Regulatory, and Human Resource Management
this, his government service included leading
the Development Academy of the Philippines
and serving as Cabinet Secretary during the
administration of the late Corazon Aquino.
66
DENNIS ANTHONY H. UY | Co-Founder, Chief Executive Officer, and
Executive Director
Dennis Anthony H. Uy, Filipino, 55, is the Founder fiber network while competitors were battling it
and CEO of Converge. out in other technology spaces such as wireless
broadband or DSL.
A self-made industrialist and a recognized pioneer
in fiber technology in the Philippines, Mr. Uy In 2021, proving his foresight into emerging
has grown a small, Pampanga-based cable TV technologies, Mr. Uy invested in an AI-driven
solutions provider into the only pure-play high- hardware security firm based in Silicon Valley,
speed fixed broadband operator in the Philippines earning a directorship in the said firm. In that
over the span of 25 years. same year, given his rising prominence as a
business tycoon,
Mr. Uy started the cable business with Angeles Mr. Uy was selected to be a mentor-judge in the
City Cable Television Network, the first TV service start-up mentorship show, “The Final Pitch,”
provider in the city. With his wife Grace, he began lending much-needed advice and expertise to
acquiring other cable TV providers in Pampanga fledgling companies.
on the strength of their service innovations.
A game-changer and a futurist in his field,
With an eye for the future and a mind for Mr. Uy has garnered several awards and
innovation, Mr. Uy implemented the first-ever recognitions, including the following in 2021:
data-over-cable service interface specification in “Men Who Matter” by People Asia; Global
Region 3 with ComClark Network and Technology Excellence Award by the International Chamber
Corporation. The Company gradually expanded of Commerce - Philippines; “Entrepreneur of
its customer base, its suite of services, and its the Year” at The Asia CEO Awards; Master
expertise in ICT. Entrepreneur Award by The Asia Pacific
Enterprise Awards; and “Best Entrepreneur -
Going from strength to strength, the Uy couple
ICT Category” in the Global Economics Awards.
evolved ComClark into Converge ICT Solutions Inc.

over a decade and incorporated the company in Most recently, he received the Entrepreneur of
2007. the Year award from EY and SGV Foundation,
simultaneously winning the Master Innovator
Mr. Uy’s dream for digital transformation may have
award.
begun in Central Luzon, but it took off in Metro
Manila. In 2013, Converge launched the Fiber-to- Expertise: General Management, Economics,
the-Home (FTTH) fixed broadband services and Technology, Media and Telecommunications
entered Metro Manila, the nation’s capital. From Industries, Information Technology, Risk
there, Mr. Uy focused his efforts on building up our Management, Regulatory, Strategy
67
MARIA GRACE Y. UY | Co-Founder, President, Chief Resource Officer, Chief

Risk Officer, and Executive Director
Maria Grace Y. Uy, Filipino, 55, is the Co-Founder, Since the Converge ICT Solutions Inc. launch in
President, Chief Resource Officer, and Chief Risk 2007, Ms. Uy has led and managed all aspects of
Officer of Converge. financial planning and resource allocation as Chief
Resource Officer. She is also in charge of assessing
Prior to this position, she was the Chief Financial and helping to mitigate the Company’s operational,
Officer and Executive Vice President of ComClark compliance, regulatory and strategic risks as
Network and Technology Corp. and the Angeles Chief Risk Officer. As President, Ms. Uy steers
City Cable Television Network. the company’s overall strategic direction as it
progressively expands its reach into the broadband
Having notched 16th place in the Certified Public industry.
Accountant (CPA) Licensure Board Examination
in 1989, Ms. Uy secured a management role at IBM Together with her husband, Ms. Uy has led
Philippines. After seven years at IBM, Ms. Uy served the Company to new heights, particularly in
as CFO and VP at Savers Mall in Pampanga. accelerating its rapid growth in 2020. Her
contributions to our remarkable trajectory
Having notched 16th place in the Certified Public have been recognized in Forbes Asia’s “Power
Accountant (CPA) Licensure Board Examination BusinessWomen 2021” and as one of two Filipinos
in 1989, Ms. Uy secured a management role at IBM in its “50 Over 50: Asia 2022” list. Telecom Review
Philippines. After seven years at IBM, Ms. Uy Asia Pacific also cited her as an influential female
served as CFO and VP at Savers Mall in Pampanga. leader in the telco industry.
Already with a foot in the IT industry, Ms. Uy In 2022, Grace garnered the ‘Woman in Telecoms’
founded ComClark Network and Technology award from the World Communication Awards for
Corp. with her husband, Converge CEO Dennis her exemplary leadership in Converge.
Anthony Uy. Together, the couple gradually scaled
up ComClark from providing cable television Expertise: General Management, Technology,

requirements to delivering ICT Media and Telecommunications Industries,
and broadcast solutions. Accounting and Financial Reporting, Corporate
Finance, Risk Management
68
SAURABH N. AGARWAL | Non-Executive Director
Saurabh N. Agarwal, Indian, 42, is a Non-Executive Mr. Agarwal holds a B. Tech. in Electrical
Director of Converge, having been appointed to Engineering, an M.S. in Microelectronics from
the Board on 19 August 2019. IIT Bombay, and an M.B.A. from Harvard
Business School.
Mr. Agarwal joined Warburg Pincus in 2009 and
is based in Singapore, where he relocated from Expertise: Technology, Media and
New York in 2016 to focus on the firm’s investment Telecommunications Industries, Information
activities in Asia. Before joining Warburg Pincus, Technology, Corporate Finance, Strategy
Mr. Agarwal worked at McKinsey & Company in
New Jersey, New Delhi, and Temasek Holdings in
Mumbai. Aside from being a Director in Converge,
Mr. Agarwal is currently also a Director of Advance
Intelligence Group, Circles.Life, MoMo Pay, and
Techcombank (HOSE: TCB), and previously served
on the boards of several companies, including AAG
Energy (HKG:2686), Competitive Power Ventures,
Mosaic Inc., RimRock, RSEG Inc., and Trident.

69
FRANCISCO ED. LIM | Non-Executive Director
Francisco Ed. Lim, Filipino, 68, was appointed Non- Court through membership in several sub-
Executive Director of Converge on 17 June 2020. committees, thereby creating a number of Rules
of Court pertaining to commerce and corporate
Mr. Lim, highly regarded as an expert in commercial restructuring.
law and dispute resolution, is the Senior Partner
at leading law firm Angara Abello Concepcion Mr. Lim holds directorships in several other
Regala & Cruz Law Offices (ACCRALAW). He is companies apart from Converge, such as
also a professional lecturer and the Vice Chair of Alphaland Corporation, Energy Development
the Commercial Law Department at the Philippine Corporation, and Producers Savings Bank
Judicial Academy (PHILJA.) He is also a law Corporation.
professor at the Ateneo Law School and the San
Beda College Graduate School of Law. Mr. Lim is Atty. Lim graduated from the University of Sto.
currently President of the Management Association Tomas, Manila, Philippines, in 1975, where he
of the Philippines. obtained a Bachelor of Philosophy (Magna Cum
Laude) and a Bachelor of Arts (Cum Laude). He
A prominent icon in corporate circles, Mr. Lim was received a Bachelor of Laws (Second Honors)
named President and CEO of the Philippine Stock from the Ateneo de Manila University, Quezon City,
Exchange from 2004-2010, during which he also Philippines, in 1981. He received his Master of Laws
held several senior management positions at Capital from the University of Pennsylvania, USA, in 1987.
Market Development Center Inc.; Securities Clearing He is currently a member of the Philippine Bar and
Corporation of the Philippines; the Capital Market the New York State Bar.
Development Center, Inc.; the Philippine Stock
Exchange Foundation, Inc.; the Philippine Dealing Expertise: Corporate Finance, Legal, Regulatory,
and Exchange Corporation; and the Securities Labor Law, Human Rights Law, Corporate
Investors Protection Fund. Governance
Given his valuable voice in legal matters, Mr. Lim

served in an extensive capacity in the Supreme
70
ROMAN FELIPE S. REYES | Independent Non-Executive Director
Roman Felipe S. Reyes, Filipino, 71, joined the Asia Pacific Entrepreneurship Awards in the
Converge ICT Solutions Inc.’s Board on 8 June area of Professional and Business Services. In
2020. Mr. Reyes is the Founding Partner and his province’s service, Mr. Felipe also engaged
Chairman of Reyes Tacandong & Co (RT&Co), in civic activities. He became President of the
considered one of the fastest-growing professional Bulacan Kaunlaran Foundation and the Bulacan
services firms in the country. His extensive Chapter of the Philippine Institute of Certified
experience in the accounting profession spans over Public Accountants.
40 years, marked by a storied career in auditing
giant Sycip Gorres Velayo & Co. (SGV), where he Mr. Reyes also holds Board membership in six
held key management positions, including Senior other companies.
Partner and Vice Chairman.
Expertise: Accounting and Financial Reporting,
Mr. Reyes obtained his Bachelor’s Degree in Risk Management, Corporate Governance
Commerce, majoring in Accounting, from San
Beda College, which later recognized him as an
Outstanding Alumnus. He earned his Master’s
Degree in Business Administration, concentration
in Finance, from the University of Detroit.
Other awards to Mr. Reyes’ name include the

Outstanding Bulakenyo Dangal ng Lipi, Most
Distinguished Bedan Awardee, Huwarang Anak ng
Bulakan in the field of Banking and Finance, and

71
AMANDO M. TETANGCO JR. | Independent Non-Executive Director

Amando M. Tetangco Jr., Filipino, 70, is an Coordination Council, and the Philippine
Independent Director of Converge and was International Convention Center.
elected to the Board on 8 June 2020. He also holds
directorships in Toyota Motors Corporation and Prior to his appointment to the top position,
Belle Corporation. Mr. Tetangco spent over three decades at
the country’s central monetary authority,
Mr. Tetangco served as the third Governor of the rising through the ranks since he joined the
Bangko Sentral ng Pilipinas and was the first to institution in 1974. For his contribution to
be appointed for two consecutive terms (July national development, Mr. Tetangco was
2005 - July 2017). During his term, the Philippines conferred with the Order of Lakandula, with
enjoyed a predictable inflation environment, a the Rank of Bayan in 2009
robust banking system, and a vibrant investment
climate, as reflected by successive upgrades in the Mr. Tetangco obtained his Bachelor’s
country’s sovereign debt rating. Degree in Economics (Cum Laude) from the
Ateneo de Manila University, where he also
Mr. Tetangco has consistently been named one of completed his MBA. He further pursued a
the world’s best central bankers by the financial Master’s in Public Policy and Administration
publication Global Finance, earning an “A” rating in Concentration in Development Economics
its Central Bank Report Cards for 2006, 2007, and from the University of Wisconsin.
2011-2016. He was also named by The Banker as
Central Bank Governor of the Year for Asia-Pacific Expertise: Corporate Finance, Economics,
in 2013. Risk Management, Legal, Regulatory,
Corporate Governance
During his governorship, he also concurrently
served as the Anti-Money Laundering Council
(AMLC) Chairman, the Financial Stability
72
CORPORATE GOVERNANCE

Skills Matrix
EXPERTISE
BOARD OF DIRECTORS
JOSE P. DE JESUS
Chairman, Independent
Non-Executive Director
DENNIS ANTHONY H. UY
Co-Founder, Chief Executive Officer,
and Executive Director
MARIA GRACE Y. UY
Co-Founder, President,
Chief Resource Officer, Chief Risk
Officer, and Executive Director
SAURABH N. AGARWAL
FRANCISCO ED. LIM

ROMAN FELIPE S. REYES

Independent Non-Executive Director
AMANDO M. TETANGCO JR.

Independent Non-Executive Director

Accounting and Financial
LEGEND Reporting
Corporate Finance Corporate Governance
Human Rights and

Economics General Management Human Resource Management
Labor Law
Media and Telecommunication

Information Technology Legal Regulatory
Industries
Risk Management Strategy Technology
73
CORPORATE GOVERNANCE
KEY OFFICERS
DENNIS ANTHONY H. UY MARIA GRACE Y. UY JESUS C. ROMERO BENJAMIN B. AZADA

Co-Founder, Chief Executive Officer, Co-Founder, President, Chief Resource Officer, Senior Executive Vice President, Executive Vice President,
and Executive Director Chief Risk Officer, and Executive Director and Chief Operations Officer Chief Strategy Officer
and Chief Sustainability Officer
74
RONALD G. BRUSOLA ULYSSES C. NAGUIT ALBERTO L. SANTOS
Executive Vice President, Executive Vice President, Executive Vice President,
and Chief Technology Officer and Chief Information Officer and Chief Customer Experience Officer
75
PAULO MARTIN SANTOS CHRISTINE RENEE R. BLABAGNO ATTY. ELVIRA C. OQUENDO
Executive Vice President, and Senior Vice President, Treasurer, Senior Vice President, and
Chief Network Transformation Officer and Deputy Chief Finance Officer Corporate Secreatary
76
ATTY. LAURICE P. ESTEBAN-TUASON ANTHONY VERGEL B. VELASCO OWEN KIEFFER D. OCAMPO
Senior Vice President, and Vice President, and Vice President, and
Corporate Compliance and Data Internal Audit Director Investor Relations Officer
Protection Officer
77
RELATED PARTIES
MILES TONN C. CHUA MATTHIAS VUKOVICH BENEDICTO O. BULATAO

President and Chief Operations Officer, Chief Financial Office Adviser, Chief Operations Officer,
Metroworks ICT Solutions Inc. Director of Converge ICT Solutions (Global) ComClark Network and Technology Corporation
78
Consolidated Financial Statements
As of December 31, 2022 and 2021 and for each of
the three years in the period ended December 31, 2022

79
80
AUDITOR’S REPORT
Converge Annual Report 2022 Championing Digital Democracy
81
82
AUDITOR’S REPORT
Converge Annual Report 2022 Championing Digital Democracy
83
84
AUDITOR’S REPORT
FINANCIAL STATEMENTS

Converge Information and Communications Technology Solutions, Inc. and Subsidiaries
Consolidated Statements of Financial Position
As at December 31, 2022 and 2021
(All amounts in Philippine Peso)
ASSETS
Notes 2022 2021
Current assets
Cash and cash equivalents 2 10,214,065,832 8,083,906,349
Trade and other receivables, net 3 3,337,086,807 3,032,769,151
Due from related parties, net, current portion 19 609,474,295 1,183,275,618
Network materials and supplies, net 4 4,385,141,938 3,484,885,991
Deferred contract costs, current portion 14 1,006,635,118 1,866,849,146
Other current assets 5 3,046,106,952 3,388,584,319

Total current assets 22,598,510,942 21,040,270,574
Non-current assets
Property, plant and equipment, net 6 62,534,015,908 48,340,951,349
Right-of-use assets, net 20 3,293,570,678 3,446,201,150
Intangible assets, net 7 2,384,612,202 1,968,644,352
Due from related parties, net of current portion 19 157,017,606 160,317,198
Advances to fixed assets suppliers 5 4,317,314,821 4,317,379,907
Deferred contract costs, net of current portion 14 263,810,800 673,543,634
Deferred input value-added tax, net of current portion 5 208,975,509 400,111,566
Deferred income tax assets, net 18 1,792,658,901 997,642,914
Financial asset at fair value through profit or loss (FVTPL) 24.1 56,757,340 57,177,481
Investment in associate and joint ventures 8 458,303,302 402,050,965

Other non-current assets 5 32,789,344 59,706,619
Total non-current assets 75,499,826,411 60,823,727,135
Total assets 98,098,337,353 81,863,997,709
85
Converge Annual Report 2022 FINANCIAL STATEMENTS
LIABILITIES AND EQUITY

Notes 2022 2021
Current liabilities
Trade and other current liabilities 9 17,055,361,194 18,598,375,374
Due to related parties 19 111,090,994 555,312,534
Subscribers’ deposits, current portion 14 2,064,852,500 2,141,578,673
Deferred revenue, current portion 14 815,226,352 1,041,948,093
Borrowings, current portion 10 3,239,562,775 2,999,210,061
Lease liabilities, current portion 20 615,765,230 544,559,322
Income tax payable 821,343,264 1,002,612,908
Total current liabilities
24,723,202,309 26,883,596,965
Non-current liabilities
Deferred revenue, net of current portion 14 48,631,750 313,018,102
Borrowings, net of current portion 10 35,000,207,710 16,847,022,739
Lease liabilities, net of current portion 20 2,001,846,291 2,396,174,377
Retirement benefit obligation 11 153,027,875 121,650,104
Subscribers’ deposits, net of current portion 14 60,602,199 191,576,422
Total non-current liabilities 37,264,315,825 19,869,441,744
Total liabilities 61,987,518,134 46,753,038,709
Equity
Attributable to owners of the Parent Company
Share capital 13 1,881,573,615 1,881,573,615
Additional paid-in capital 13 18,746,088,245 18,746,088,245
Treasury shares 13 -6,498,544,185 -
Retained earnings 13 21,736,512,003 14,297,177,227

Share-based compensation reserve 12 199,463,422 141,843,597
Reserve for remeasurements of retirement benefit obligation, net of tax 11 45,413,619 43,963,816
36,110,506,719 35,110,646,500
Non-controlling interest 1.6 312,500 312,500
Total equity 36,110,819,219 35,110,959,000
Total liabilities and equity 98,098,337,353 81,863,997,709
86
Consolidated Statements of Total Comprehensive Income
For each of the three years in the period ended December 31, 2022 (All amounts in Philippine Peso)
Notes 2022 2021 2020
Revenues 14 33,695,628,358 26,478,774,386 15,652,332,331
Cost of services 15 -13,437,644,340 -10,507,427,671 -7,064,620,829

Gross profit 20,257,984,018 15,971,346,715 8,587,711,502
General and administrative expenses 16 -6,601,012,294 -4,770,512,186 -2,772,068,574
Provision for impairment of trade and other receivables 3 -1,660,327,091 -1,005,100,394 -720,474,218
Equity share in net income of joint ventures 8 50,969,004 38,585,965 -
Unrealized fair value loss on financial asset at FVTPL 24.1 -6,404,519 -19,614,667 -26,489,855
Other (expense) income, net 17 -453,665,249 -176,021,996 360,342,042

Profit from operations 11,587,543,869 10,038,683,437 5,429,020,897
Finance costs 10,20 -1,731,899,699 -485,518,412 -550,310,967

Profit before income tax 9,855,644,170 9,553,165,025 4,878,709,930
Income tax expense 18 -2,416,309,394 -2,395,037,412 -1,490,881,430

Profit for the year 7,439,334,776 7,158,127,613 3,387,828,500
Other comprehensive income (loss)

Item that will not be reclassified to profit or loss
Remeasurement gain (loss) on retirement benefit obligation, net of tax 11 1,449,803 35,833,497 -47,110,560
Total comprehensive income for the year 7,440,784,579 7,193,961,110 3,340,717,940
Profit attributable to:

Owners of the Parent Company 7,439,334,776 7,158,127,613 3,387,828,500
Non-controlling interest - - -

7,439,334,776 7,158,127,613 3,387,828,500
Total comprehensive income attributable to:

Owners of the Parent Company 7,440,784,579 7,193,961,110 3,340,717,940
Non-controlling interest - - -
7,440,784,579 7,193,961,110 3,340,717,940
Earnings per share 21

Basic 1.01 0.95 0.61
Diluted 1.01 0.95 0.48
87

Consolidated Statements of Changes in Equity
For each of the three years in the period ended December 31, 2022
Reserve for
remeasurements
Share capital (Note 13) of retirement Share-based
Additional benefit compensation
Convertible
paid-in capital Retained earnings (Note 13) obligation, reserve Non-controlling
Common shares preferred shares
(Note 13) net of tax (Note 12) interest Total
Appropriated Unappropriated
(Note 11)
Balances at January 1, 2020 1,250,000,000 306,818,180 6,541,191,820 2,200,000,000 1,814,215,854 55,240,879 - 312,500 12,167,779,233
Transactions with owners
Issuance of shares (Note 13) 120,209,985 204,545,450 12,204,896,425 - - - - - 12,529,651,860
Conversion of preferred shares 511,363,630 (511,363,630) - - - - - - -

(Note 13)
Declaration of dividends by - - - - (262,994,740) - - - (262,994,740)

Pentagon (Note 13)
Total transactions with owners for 631,573,615 (306,818,180) 12,204,896,425 - (262,994,740) - - - 12,266,657,120
the year
Comprehensive income
Profit for the year - - - - 3,387,828,500 - - - 3,387,828,500
Other comprehensive loss - - - - - (47,110,560) - - (47,110,560)

for the year
Total comprehensive income for - - - - 3,387,828,500 (47,110,560) - - 3,340,717,940

the year
Release of appropriation of - - - (2,200,000,000) 2,200,000,000 - - - -

retained earnings (Note 13)
Balances at December 31, 2020 1,881,573,615 - 18,746,088,245 - 7,139,049,614 8,130,319 - 312,500 27,775,154,293
Profit for the year - - - - 7,158,127,613 - - - 7,158,127,613
Other comprehensive income -

for the year - - - - - 35,833,497 - 35,833,497
Total comprehensive income -

for the year - - - - 7,158,127,613 35,833,497 - 7,193,961,110
Share-based compensation 141,843,597 141,843,597

(Note 12) - - - - - - -
Balances at December 31, 2021 1,881,573,615 - 18,746,088,245 - 14,297,177,227 43,963,816 141,843,597 312,500 35,110,959,000
88
Consolidated Statements of Changes in Equity
For each of the three years in the period ended December 31, 2022
Reserve for
remeasurements
of retirement Share-based
Additional Treasury shares Retained benefit compensation
Share capital paid-in capital (Note 13) earnings obligation, reserve Non-controlling
(Note 13) (Note 13) (Note 13) net of tax (Note 12) interest Total
(Note 11)
Balances at 1,881,573,615 18,746,088,245 - 14,297,177,227 43,963,816 141,843,597 312,500 35,110,959,000
January 1, 2022
Transaction with owners
Acquisition of treasury - - (6,498,544,185) - - - - (6,498,544,185)
shares
Share-based - - - - - 57,619,825 - 57,619,825
compensation (Note 12)
Profit for the year - - - 7,439,334,776 - - - 7,439,334,776
Other comprehensive - - - - 1,449,803 - - 1,449,803
income for the year
Total comprehensive - - - 7,439,334,776 1,449,803 - - 7,440,784,579
income for the year
Balances at 1,881,573,615 18,746,088,245 (6,498,544,185) 21,736,512,003 45,413,619 199,463,422 312,500 36,110,819,219
December 31, 2022

89
Consolidated Statements of Cash Flows
For each of the three years in the period ended December 31, 2022 (All amounts in Philippine Peso)
Notes 2022 2021 2020

Cash flows from operating activities
Profit before income tax 9,855,644,170 9,553,165,025 4,878,709,930
Adjustments for:
Depreciation and amortization 15,16 6,557,895,271 4,085,160,072 2,459,439,570
Amortization of deferred contract costs 15 2,823,468,773 1,759,860,945 826,710,561
Provision for impairment of trade and other receivables 3 1,660,327,091 1,005,100,394 720,474,218
Finance costs 10,20 1,731,899,699 485,518,412 550,310,967
Provision for impairment of property, plant and equipment 17 543,586,332 - -
Loss on disposal of property, plant and equipment 17 163,598,622 673,860 50,887,121
Share-based compensation expense 12 57,619,825 141,843,597 -
Retirement benefit expense 15,16 34,911,308 42,938,432 23,292,511
Unrealized loss on FVTPL 24.1 6,404,519 19,614,667 26,489,855
Interest income on financial asset at FVTPL 17 (3,656,500) (3,491,219) (2,034,258)
Interest income on finance lease receivable 17 (10,037,460) (10,231,874) (10,414,835)
Interest income on cash and cash equivalents 17 (38,986,327) (30,770,432) (35,912,375)
Equity share in net income of joint venture 8 (50,969,004) (38,585,965) -
Unrealized foreign exchange (gain) loss, net 22 (238,102,720) 164,671,773 (231,668,353)
Gain on lease terminations 17 - (12,491,353) -
Provision for inventory obsolescence 15 - - 2,049,102
Provision for probable losses 16 - 41,849,609 110,925,384
Operating income before changes in assets and liabilities 23,093,603,599 17,204,825,943 9,369,259,398
(Increase) decrease in assets:
Trade and other receivables (1,961,584,807) (1,861,708,536) (787,626,828)
Due from related parties 587,138,375 238,320,857 (806,523,552)
Network materials and supplies (2,276,974,391) (4,082,261,648) (2,720,770,791)
Deferred contract costs (1,553,521,911) (2,647,375,870) (1,760,860,845)
Other current assets and non-current assets 369,394,642 (1,775,742,169) (1,197,065,277)
Deferred input valued-added tax 191,136,057 (261,200,014) (63,426,701)
(Decrease) increase in liabilities:

Trade and other current liabilities (2,332,836,617) 1,500,373,213 5,833,616,677
Subscribers deposits (207,700,396) 289,973,245 641,133,903
Due to related parties (444,221,540) 336,962,074 51,159,579
Deferred revenue (491,108,093) 686,241,702 387,291,020
Cash from operations 14,973,324,918 9,628,408,797 8,946,186,583
Interest received 38,986,327 30,770,432 35,912,375
Income taxes paid (3,391,969,862) (2,006,798,278) (1,683,560,453)
Retirement benefits paid 11 (15,167,141) (3,911,305) -
Net cash from operating activities 11,605,174,242 7,648,469,646 7,298,538,505
90
Notes 2022 2021 2020
Cash flows from investing activities
Acquisitions of property plant, and equipment 6 (18,387,721,961) (18,146,811,312) (13,597,488,927)
Acquisitions of intangible assets 7 (804,432,401) (1,102,274,964) (672,925,662)
Acquisitions of right-of-use assets 20 (243,007,375) (272,237,895) (126,991,800)
Acquisitions of investment in associates 8 (5,283,333) (363,465,000) -
Cash from acquisition of a subsidiary 1.6 619,345 - -
Proceeds from disposals of property, plant and equipment -
and intangible assets
43,078,518 -
Proceeds from sale of investment in short-term government
securities - 5,500,000 -
Acquisition of investment in financial asset at FVTPL 24.1 - - (104,510,000)
Acquisition of investment in short-term government
securities - - (5,500,000)
Net cash used in investing activities (19,396,747,207) (19,879,289,171) (14,507,416,389)
Cash flows from financing activities
Proceeds from borrowings 10 21,500,000,000 10,818,250,000 5,462,196,429
Payments of borrowings 10 (2,986,848,218) (2,285,838,629) (2,098,250,000)
Interest paid on borrowings 10 (1,525,677,307) (621,996,106) (568,800,065)
Payments on lease liabilities 20 (428,798,689) (451,465,520) (249,480,556)
Interest paid on lease liabilities 20 (188,146,259) (134,343,664) (115,173,554)
Payment of debt issuance costs 10 (232,472,589) - -
Acquisition of treasury shares 13 (6,498,544,185) - -
Proceeds from issuance of common shares 13 - - 8,078,111,008
Proceeds from issuance of convertible preferred shares 13 - - 4,567,949,670
Payment of share issuance costs 13 - - (116,408,818)
Payment of dividends 13 - - (1,088,307,791)
Net cash from financing activities 9,639,512,753 7,324,606,081 13,871,836,323
Net increase (decrease) in cash and cash equivalents 1,847,939,788 (4,906,213,444) 6,662,958,439

Cash and cash equivalents, beginning 8,083,906,349 12,957,408,688 6,233,043,005
Effects of exchange rate changes in cash and cash
equivalents 282,219,695 32,711,105 61,407,244
Cash and cash equivalents, ending 2 10,214,065,832 8,083,906,349 12,957,408,688
91
The 2022 Converge Annual Report cover and main pages
were printed on FSC-certified paper using soy-based ink. The
financial report was printed on PEFC-certified paper (Program
for the Endorsement of Forest Certification). Primex Printers,
Inc. utilized process-free plates and a carbon-neutral offset in
the production of this report.
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Converge Annual Report 2022

About the Theme:

The pandemic has given Converge an impetus to grow faster and

By the close of 2022, Converge has expanded its domestic network

Providing high-speed broadband connection and affordable services

04 Your Team: Corporate Overview Enterprise and Wholesale

41 Timeout: Wilcon Depot pushes for

22 Message from the Chairman 45 Championing Digital Transformation

24 Message from the CEO 47 Hall of Fame

26 Message from the President 47 Awards

Championing Digital Democracy

1.92 come online in 2024 Ltd. (Converge

COMCLARK NETWORK &

CONVERGE INFORMATION AND

100% 99% 60% 100%

Championing Digital Democracy

MYRIAD ICT SERVICES, INC.

We are CNVRG. This is how we make a difference.

Championing Digital Democracy

Even when it’s hard, or inconvenient, and no one is looking.

We are here because of them. Our reason for being is to

Championing Digital Democracy

Speed, agility, and timing. We constantly exceed

We strive to listen to every idea. That’s how

Championing Digital Democracy

We nurture, support, and reward our people for

And when our back is against the wall, we push harder

Championing Digital Democracy

Championing Digital Democracy

1992 1997-2006 2009

1996 2007 2011

2012 2016 2020

2013 2019 2021

Championing Digital Democracy

Championing Digital Democracy

Championing Digital Democracy

Dear Fellow Shareholders,

Amid a very challenging business environment in 2022, Converge

Last year, we further deepened our presence in Visayas and

With our aggressive expansion, we achieved early our goal of

Meanwhile, we continued to strengthen our corporate governance

the long run.

Championing Digital Democracy

Dear Fellow Shareholders,

We envisioned, designed, and powered our digital solutions to

DIGITAL TRANSFORMATION, THE NAME OF THE GAME

In 2022, we capitalized on our world-class infrastructure to bring

Our near-term objective is to develop more digital services and

enhance the products we offer to Philippine households. By putting

CHAMPIONING OUR BRAND

In the fiscal year 2022, we became even more targeted in our

Converge Annual Report 2022

Championing Digital Democracy

Dear Fellow Shareholders,

We are now responsible for our 1,877,361 residential subscribers and

ROBUST DOUBLE-DIGIT GROWTH

Our Company’s residential and enterprise segments continue to

deliver double-digit revenue growth in 2022 by 27.4% and 26.4%,

We were able to add 185,811 new residential subscribers during the

Championing Digital Democracy

End of Period Port Fiber infrastructure

LEGEND: EBITDA Margin

Total assets PHP Mn 56,712 81,864 98,098

Revenues PHP Mn 15,652 26,479 33,696