BROWN, Carlitos

GARING, Aivan Jed

TAYAG, Carlos Miguel
YAPTANGCO, Andrea Joy
2 FM1
NOW CORPORATION

1 Establishment Date : June 5, 1996

Representatives : Dr. Thomas G. Aquino, Chairman of the Board

2 Mel V. Velarde, President & CEO

Business Description : With businesses in the Telecommunications,

Media, and Technology (TMT) space. NOW Corporation is a PSE-
3 listed company that is engaged in software licenses and services, IT
manpower and resource augmentation, broadband, and wireless
cable TV.

Inception and
Transformation
Acquired the listed company, Cash
rounds, and renamed to ICTV
Company History
Established IT
Manpower Service
Launched iResource Consulting, Inc.,
a 100% subsidiary of NOW
Corporation, engaged in IT
manpower augmentation and
managed services
Rebranding
Renamed ICTV to NOW Corporation
in preparation for its wireless
broadband connectivity play
Renewed telecom
franchise
NOW Corporation affiliate, NOW
Telecom was granted another 25
years to operate as approved by law

2006 2010 2013 2018

2009 2012 2016

Operational Efficiency R&D Broadband and Cable
• Acquired majority ownership of Heavy R&D on broadband hardware TV
companies in the Media and and digital media platform
Launched Broadband and Cable TV
Information Technology Space
Network focusing on enterprises
• R&D for its digital media platform
bundled with softwares and
• Formed a business partnership with
cybersecurity
IBM to resell Social Collaboration
Software and offer Technical
Maintenance, Systems Integration
and Software Application
Development
FORECAST
 Population Growth Forecast
NOW Corp (in Millions)

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014

Broadband Services $ 33.60 $ 30.27 $ 27.00 $ 23.77 $ 20.61 $ 47.211 $ 24.513 $ 5.981 $ - $ -

Software Licenses and Services $ 219.18 $ 197.45 $ 176.09 $ 155.08 $ 134.43 $ 135.399 $ 81.577 $ 54.279 $ 75.018 $ 38.580

IT Manpower and Augmentation $ 122.85 $ 110.67 $ 98.70 $ 86.92 $ 75.35 $ 35.251 $ 42.274 $ 43.412 $ 39.421 $ 29.686
$ -
Others $ 7.97 $ 7.18 $ 6.40 $ 5.64 $ 4.89 $ 0.610 $ 1.765 $ 0.954 $ 5.513

Consolidated Revenue   $ 383.593 $ 345.574 $ 308.182 $ 271.417 $ 235.278 $ 217.861 $ 148.974 $ 105.437 $ 115.393 $ 73.779

COGS $ (266.463) $ (240.053) $ (214.079) $ (188.540) $ (163.436) $ (155.633) $ (90.215) $ (58.862) $ (79.168) $ (67.063)

Gross Profit   $ 117.130 $ 105.521 $ 94.103 $ 82.877 $ 71.842 $ 62.228 $ 58.759 $ 46.575 $ 36.225 $ 6.716

OPEX $ 102.424 $ 92.648 $ 83.035 $ 73.579 $ 64.29 $ 50.519 $ 49.667 $ 36.187 $ 27.644 $ 25.109

Fixed $ 5.362 $ 5.205 $ 5.054 $ 4.901 $ 4.76 $ 4.638 $ 6.319 $ 4.039 $ 5.232 $ 5.493

Variable $ 97.062 $ 87.442 $ 77.981 $ 68.678 $ 59.53 $ 45.874 $ 43.349 $ 32.148 $ 22.252 $ 19.617

NONOPEX $ 1.758 $ 1.707 $ 1.657 $ 1.607 $ 1.561 $ 1.521 $ (0.080) $ (5.124) $ (0.784) $ (0.962)

EBIT $ 14.706 $ 12.873 $ 11.068 $ 9.297 $ 7.550 $ 11.709 $ 9.092 $ 10.388 $ 8.581 $ (18.393)

Interest $ 5.505 $ 5.505 $ 5.505 $ 5.505 $ 5.51 $ 3.324 $ 0.052 $ 0.573 $ 1.054 $ 19.001

EBT   $ 10.958 $ 9.074 $ 7.220 $ 5.399 $ 3.605 $ 9.906 $ 8.960 $ 4.691 $ 6.743 $ (38.356)

Taxes $ 3.288 $ 2.722 $ 2.166 $ 1.620 $ 1.08 $ 1.769 $ 2.671 $ 2.193 $ 1.508 $ 0.128

NET INCOME $ 7.671 $ 6.352 $ 5.054 $ 3.780 $ 2.523 $ 8.137 $ 6.289 $ 2.497 $ 5.235 $ (38.484)
 Multilinear GDP and Inflation
NOW Corp (in Millions)

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014

Broadband Services $ 103.55 $ 85.35 $ 67.63 $ 51.25 $ 33.59 $ 47.211 $ 24.513 $ 5.981 $ - $ -

Software Licenses and Services $ 675.47 $ 556.75 $ 441.14 $ 334.31 $ 219.12 $ 135.399 $ 81.577 $ 54.279 $ 75.018 $ 38.580

IT Manpower and Augmentation $ 378.60 $ 312.06 $ 247.26 $ 187.38 $ 122.82 $ 35.251 $ 42.274 $ 43.412 $ 39.421 $ 29.686

Others $ 24.55 $ 20.23 $ 16.03 $ 12.15 $ 7.96 $ - $ 0.610 $ 1.765 $ 0.954 $ 5.513

Consolidated Revenue   $ 1,182.167 $ 974.388 $ 772.063 $ 585.083 $ 383.494 $ 217.861 $ 148.974 $ 105.437 $ 115.393 $ 73.779

COGS $ (821.194) $ (676.859) $ (536.314) $ (406.428) $ (266.395) $ (155.633) $ (90.215) $ (58.862) $ (79.168) $ (67.063)

Gross Profit   $ 360.974 $ 297.528 $ 235.749 $ 178.654 $ 117.100 $ 62.228 $ 58.759 $ 46.575 $ 36.225 $ 6.716

OPEX $ 304.492 $ 251.760 $ 200.413 $ 152.948 $ 101.80 $ 50.519 $ 49.667 $ 36.187 $ 27.644 $ 25.109

Fixed $ 5.362 $ 5.205 $ 5.054 $ 4.901 $ 4.76 $ 4.638 $ 6.319 $ 4.039 $ 5.232 $ 5.493

Variable $ 299.130 $ 246.555 $ 195.359 $ 148.047 $ 97.04 $ 45.874 $ 43.349 $ 32.148 $ 22.252 $ 19.617

NONOPEX $ 1.758 $ 1.707 $ 1.657 $ 1.607 $ 1.561 $ 1.521 $ (0.080) $ (5.124) $ (0.784) $ (0.962)

EBIT $ 56.482 $ 45.768 $ 35.336 $ 25.706 $ 15.303 $ 11.709 $ 9.092 $ 10.388 $ 8.581 $ (18.393)

Interest $ 0.291 $ 0.291 $ 0.291 $ 0.291 $ 0.29 $ 3.324 $ 0.052 $ 0.573 $ 1.054 $ 19.001

EBT $ 57.949 $ 47.184 $ 36.702 $ 27.023 $ 16.573 $ 9.906 $ 8.960 $ 4.691 $ 6.743 $ (38.356)

Taxes $ 17.385 $ 14.155 $ 11.011 $ 8.107 $ 4.972 $ 1.769 $ 2.671 $ 2.193 $ 1.508 $ 0.128

NET INCOME   $ 40.564 $ 33.029 $ 25.691 $ 18.916 $ 11.60 $ 8.137 $ 6.289 $ 2.497 $ 5.235 $ (38.484)
 Population Regression
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.891296998
R Square 0.794410339
Adjusted R Square 0.691615509
Standard Error 28.22814274
Observations 4

ANOVA

  df SS MS F Significance F

Regression 1 6157.979274 6157.979 7.728115662 0.108703002

Residual 2 1593.656085 796.828
Total 3 7751.635359      

  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

Intercept -2027.246802 782.2147732 -2.59168 0.122185945 -5392.845331 1338.352 -5392.85 1338.352

Population 20.88934524 7.514291195 2.779949 0.108703002 -11.44204028 53.22073 -11.442 53.22073

 Multilinear Regression
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.902389153
R Square 0.814306183
Adjusted R Square 0.442918549
Standard Error 0.216404965
Observations 4

ANOVA
  df SS MS F Significance F
Regression 2 0.205364196 0.102682098 2.192604462 0.430922054
Residual 1 0.046831109 0.046831109
Total 3 0.252195305     

  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%
Intercept 6.873907076 3.856168075 1.782574552 0.325464783 -42.12335398 55.87116813 -238.5971859 252.3450001
GDP -97.63146401 55.73574695 -1.751684858 0.330234844 -805.8212759 610.5583479 -3645.587481 3450.324553
Inflation -9.836474244 13.58981631 -0.723812156 0.60113915 -182.5114626 162.8385141 -874.9198937 855.2469452

RESIDUAL OUTPUT

Observation Predicted Y Residuals

1 0.662419458 -0.098383621
 Multilinear Regression

GDP Growth Rate (annual) Inflation rate (annual) Popuation Growth Rate
2014 6.15% 5.20% 1.650%
2015 6.07% 2.90% 1.580%
2016 6.88% 1.30% 1.510%
2017 6.68% 0.70% 1.450%
2018 6.24% 4.10% 1.400%
2019 6.00% 2.60% 1.604%
2020 6.20% 3.00% 1.597%
2021 6.40% 3.11% 1.599%
2022 6.47% 3.00% 1.601%
2023 6.52% 3.00% 1.602%

2019 108.31
2020 110.04
2021 111.8
2022 113.59
2023 115.41
BROWN, Carlitos
GARING, Aivan Jed
TAYAG, Carlos Miguel
YAPTANGCO, Andrea Joy
2 FM1