Slide 1: Financial Results for the half year ended 30 Sep 2023
a Financial Results For the half year ended 30 Sep 2023 Yuen Kuan Moon, Group CEO 9 November 2023
Slide 2: Forward looking statement – Important note
Forward looking statement – Important note The following presentation contains forward-looking statements by the management of Singapore Telecommunications Limited ("Singtel"), relating to financial trends for future periods, compared to the results for previous periods. Some of the statements conta
Slide 3: H1FY24 at a glance
H1FY24 at a glance Resilient performance against challenging macro economic backdrop ▪ Sustained mobile momentum & growth engine outperformance offsets weakness in enterprise ▪ Continued macro, inflationary & forex pressures Strong 83% growth in NPAT from dilution gains ▪ Regional associates PBT ros
Slide 4: Key financials
Key financials EBIT Operating revenue EBITDA (ex associates’ contribution) S$7,028M S$1,787M S$580M ▼ 3% (▲ 2%1) ▼ 5% (▼ 1%1) Stable (▲ 2%1) Regional associates’ PBT Underlying net profit Net profit S$1,187M S$1,121M S$2,136M ▲ 3% (▲ 9%1) ▲ 12% (▲ 16%1) ▲ 83% (▲ 85%1) 1. On constant currency basis.
Slide 5: Core business
Core business SG Revenue EBIT Revenue EBIT A$4,018M A$141M S$1,893M S$442M YoY ▲ 1% YoY ▼ 14% YoY ▼ 3% YoY ▼ 4% ▪ Mobile service revenue increased 3% on ▪ Mobile service revenue grew 2% on continued o Strong net connections, led by prepaid roaming recovery & customer growth o Higher postpaid ARPU fr
Slide 6: Reinvigorate the core
Reinvigorate the core Compelling value proposition Differentiated service offerings SG >4.2M >1M 5G capable devices in AU 5G subs in SG Strong traction in Launched Singtel CUBΣ to connected cars with 4 accelerate enterprise digital major car brands signed infrastructure transformation Developed Sing
Slide 7: Regional associates’ pre-tax profits
Regional associates’ pre-tax profits S$M Highlights S$66M negative impact from ▪ Regional associates’ PBT rose 9%1 stronger SGD ▪ S$66M negative impact from ▲ 3% (▲ 9%1) stronger SGD 1,155 1,187 ▪ Sustained market repair across all 141 ▼ 18% (▼ 13%1) Globe 172 markets & disciplined cost control 171
Slide 8: Growth engines
Growth engines Digital InfraCo Revenue EBIT Revenue EBIT S$1,396M S$93M S$203M S$39M YoY ▲ 9% YoY ▲ 74% YoY ▲ 13% YoY ▲ 24% (RDC3 ▲ 9%) ▪ Broad based growth momentum across all ▪ Solid revenue growth driven by SBGs1 o RDC3: mainly price uplifts on existing ▪ Focus on improving profitability with 1.4
Slide 9: NCS executing to plan
NCS executing to plan Sustained SBGs1 growth Expanding beyond SG Riding digitalisation trend AU integration progressing as planned, Strong client interest Continue to lead in public building a foundation in Gen-AI & digital service, defence & homeland for future growth trust capabilities security, e
Slide 10: Digital InfraCo – RDC in expansion mode
Digital InfraCo – RDC in expansion mode RDC1 Revenue EBITDA EBITDA margin S$144M S$82M 57.1% YoY ▲ 9% YoY ▼ 4% ▪ Revenue growth to track inflation till late FY26, when 58MW2 of new capacity from DC Tuas comes online ▪ Ramp up in investment capabilities to continue impacting EBITDA margins ▪ S$1.1B i
Slide 11: Reallocate capital, create value
Reallocate capital, create value 1 RDC africa Divested 20% acquired Sale of our US-based Pared down 1.4% stake at attractive cyber-security firm for stake for 10% stake valuation to for through issuance of US$205M2 ~S$95M S$1.1B new shares in Oct 23 in Oct 23 in Nov 23 in Oct 23 1. An Indonesian dig
Slide 12: Strong balance sheet
Strong balance sheet Free cash flow1 (S$M) Highlights ▪ Recycled total of ~S$7B since H1FY24 -136 1,170 155 1,189 FY21 ▪ Lower FCF due to timing of -26% payments & a one-off prepayment related to Optus H1FY23 1,043 505 47 1,595 insurance in H1FY23 ▪ Net debt rose ~S$0.8B mainly SG FCF Optus FCF Asso
Slide 13: Raising the bar in sustainability
Raising the bar in sustainability Environmental sustainability Community impact >200 Endangered species trees planted on Sisters’ Islands ~S$4.5M Raised for charity Launched enhanced Singtel Safe Contractor Accreditation Award Advanced Net Zero to 2045, with updated Singtel Charity Golf Singtel Carn
Slide 14: Value Creation & Returns
4) =a a ‘nD | _ Lu ao oS za O — < Lu a O Lu =) oll << >
Slide 15: Simplified structure
Simplified structure Connectivity Digital InfraCo Digital Services Associates Fully-owned Minority-owned RDC1 SG Satellites 1. Regional data centre platform. 15
Slide 16: Aligned for growth
Aligned for growth Combined consumer Carved out Regional assoc Rationalised non- & enterprise for growth engines creating new core digital assets; operational synergies for scale avenues for growth losses reduced ▪ Affirmed capex guidance ▪ Contribute >20% of Group ▪ Price-ups from market ▪ Divested
Slide 17: Programme to drive ~15% reduction in core costs over next 3 years
Programme to drive ~15% reduction in core costs1,2 over next 3 years Indirect cost1 (S$B) Key drivers Reduce operational complexity ▪ Consolidation of vendors 3.3 Total cost out of S$0.6B ▪ Rationalise IT platforms & sales channels ▪ Streamline products/ categories ▪ Consolidate Network Operations C
Slide 18: Balance sheet strength with asset recycling
Balance sheet strength with asset recycling Unlocked S$7B of capital Strengthened financial position S$B Gross debt (S$B) Net interest expense (S$M) ~6.0 -1.6 -10% 13.1 395 355 11.5 ~5.0 To be ~4.0 unlocked FY21 FY23 FY21 FY23 Total cash1 (S$B) Interest cover2 (X) +17% Proceeds from ~2.0 sale of sta
Slide 19: Boosting shareholder returns
Boosting shareholder returns Improving core dividend S cents Strategic reset Raised interim dividend 14.9 12.3 by 13% to S5.2¢/share 5.0 (S4.6¢/share in H1FY23) 9.3 5.5 7.5 4.8 5.3 2.4 5.2 (▲13%) Revised dividend policy 6.8 5.1 4.5 4.6 between 70% & 90% of underlying NPAT FY20 FY21 FY22 FY23 FY24 Di
Slide 20: Positive momentum from Strategic Reset
Positive momentum from Strategic Reset ✓ Simplified business structure & carved out growth engines ✓ ROIC improved 1.5pp to 8.3% 1,2 ✓ Strengthened financial position with S$7B of capital recycled ✓ Capital requirements secured for future growth plans ✓ ~S$4B of dividends in FY22 & FY23 ✓ Commenced
Slide 21: Singtel
Singtel