Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Singtel — Investor Day (August 2024)
24 slides from Singapore Telecommunications's investor day presentation, Aug 29, 2024
Slide 1: Singtel Investor Day 2024
Singtel Investor Day 2024 29 August 2024 | Grand Hyatt Singapore
Slide 2: Core net income surges 21% in 1H, buoyed by exceptional business performance
Core net income surges 21% in 1H, buoyed by exceptional business performance, effective cost management CONSOLIDATED GROSS EBITDA¹ CORE NET INCOME¹ SERVICE REVENUES¹ ▲21% YoY to Php11.7 Bn ▲4% YoY ▲7% YoY 11.7 82.2 43.0 9.7 = QoQ 79.2 40.1 ▲1% QoQ ▲2% QoQ 5.8 5.9 41.1 41.1 21.4 21.6 1Q24 2Q24 1H23 1
Slide 3: Mobile extends momentum, growing by 7% YoY
Mobile extends momentum, growing by 7% YoY; improving data consumption growth across all brands Php 58Bn = ALL TIME HIGH! TOTAL 1H24 MOBILE SMS: 7% Php 48Bn = ALL TIME HIGH! REVENUES 48.0 MOBILE DATA Voice: 11% ▲9% YoY php ▲1% QoQ 58.4 billion php bn ▲7% YoY | = QoQ Data: 82% MOBILE VOICE ▼2% YoY ▼2
Slide 4: Growing mobile subscriber base generating stable ARPUs
Growing mobile subscriber base generating stable ARPUs reflective of MOBILE SUBSCRIBERS* Globe’s quality customers ▼28% YoY 59.5 mn ▲1% QoQ MOBILE ARPU BY BRAND MOBILE ARPU MOBILE DATA USERS 846 864 876 886 BY REVENUE ▼1% YoY SMS 37.0 12 12 mn ▲2% QoQ Postpaid 11 10 Voice 21 20 3Q23 4Q23 1Q24 2Q24 1
Slide 5: Fiber Broadband expanded by 4%, decline in Legacy and 4G FWA
Fiber Broadband expanded by 4%, decline in Legacy and 4G FWA continue deceleration TOTAL 1H24 Fixed Fixed Total Home BROADBAND REVENUES Wired Wireless Broadband 12.1 1.2 0.5 1.7 Subscribers (in Mn) php bn ▼6% YoY |▼2% QoQ YoY Change in ▲6% ▼49% ▼21% Subs Fixed Wireless revs and other operating metri
Slide 6: GFiber Prepaid accelerates growth in Q2
GFiber Prepaid accelerates growth in Q2 combined with highest ARPU and reload rate across Globe prepaid brands Acqui jumps to 3.5X growth QoQ. Reload Rate shows quality acqui GSR accelerates with quality subs Payment channels includes Gcash, with reload rate of 71% with 78% of the revs on 30-day and
Slide 7: Corporate Data revenues up 8% YoY
Core Cloud Business App Cybersecurity Data Center Big data Accounts Solutions Solutions Services Services & IOT YoY Change in Revenues ▲ 7% ▲ 5% ▲ 22% ▲ 7% ▼ 52% ▲ 19% Corporate Data TOTAL 1H24 CORPORATE DATA REVENUES revenues up 8% YoY driven by growth in 9.8 php core accounts and bn ICT-related se
Slide 8: Non-telco revenues and Mynt equity share
1H24 TOTAL NON-TELCO REVENUES¹ Mynt contribution now at 12% of Globe’s NIBT from last year’s 6%, equity share 1.2 more than doubled php bn ▼26% YoY | ▲9% QoQ Mynt² Vega STT 1H24 MYNT EQUITY SHARE² Equity Share in 2,263 286 280 2.26 Affiliates (Php Mn) php bn Contribution to ▲114% YoY | ▲21% QoQ NIBT
Slide 9: Capital expenditures at Php28.3 Bn, lower by 25% YoY
Capital expenditures as of end-June stood at Php28.3 Bn, lower by 25% YoY and on track with our guidance of lower spending CAPITAL EXPENDITURES (in PhP Bn) 31% 61% 64% 44% 34% CAPEX-to-Revenue Ratio 1H24 CAPITAL EXPENDITURES 101 93 71 28.3 php 60 bn ▼25% YoY 28 Lower CAPEX spend on track with our gu
Slide 10: 1H24 PO issuances down to 57% of actual Cash CAPEX
Cash CAPEX vs. Purchase Orders (in USD Mn) 2,263 1,852 1,858 1,846 1,712 2024 Guidance: CAPEX: USD 1Bn 1,218 1,253 POs: USD 600 Mn 1H24 PO issuances of 600 Opportunistic PO issuances USD 279Mn down to 57% of actual Cash CAPEX, Free Cash Flow after Interest Payments (in Php Bn)* well in line with Glo
Slide 11: CAPEX spending predominantly on data; efficient rollout
CAPEX spending predominantly on data; efficient rollout ensures quality network customer experience 1H24 CAPEX Breakdown Business Core: 1% Support: 7% Others: 1% 352 new cell sites built 256 Data: 91% 5g sites installed 1,942 upgraded mobile sites
Slide 12: STT GDC Philippines On Track with its Data Center Builds
STT GDC Philippines On Track with its 22MW IT Capacity today, >3,200 racks Data Center Builds 33 MW by 2025, 52MW by 2026 80% rack utilization* *includes contracted space Construction Updates STT FAIRVIEW ● Completion by April 2025 ● Structural completion within 2024, building power up start of 2025
Slide 13: $5B Valuation
MYNT UPDATES GCash is the first and only $5B unicorn in the Philippines $5B Valuation More than doubling its $2B valuation in 2021! One of the largest and most Japan’s largest banking group and enduring conglomerates in one of the largest financial the Philippines institutions globally This deal val
Slide 14: Championing financial inclusion in everyday moments
MYNT UPDATES Championing financial inclusion in everyday moments Sustaining relevance in Filipino lives Trailblazing industry excellence 8 in 10 Filipinos have Customer Experience Solution Award used GCash* PHILIPPINES *as of 2023 SME Solution Award PHILIPPINES Monthly Active Users June data from Da
Slide 15: Creating more opportunities through financial services
MYNT UPDATES Creating more opportunities through financial services Lending Wealth Management Insurance Loans Disbursed (LTD) ▲73% GStocks Users ▲7969% Policies Sold (LTD) ▲156% Php 155B YoY 682K YoY 28.3M YoY Unique Borrowers (Jun ‘24) GSave Users GInsure Users (AAU) ▲71% ▲27% ▲140% 5.4M YoY 10.9M
Slide 16: Unlocking new ways for Filipinos to maximize GCash
MYNT UPDATES Unlocking new ways for Filipinos to maximize GCash Sakto Loans GStocks PH Send Money Protect Enabling eligible Boosting number Providing extra borrowers to avail of investors in PH protection from high-ticket loans stock market scammers Graduate from Sakto to Easy and affordable Protect
Slide 17: Financial Highlights
GP Globe ae — | Financial Highlights =—_ “ 42 2 a
Slide 18: Topline expansion driven by data; Core NIAT higher on controlled costs
Topline expansion driven by data; Core NIAT higher on controlled costs, strong EBITDA improvement 1H 2024 1H 2023* YoY % 2Q 2024 1Q 2024 QoQ % Gross Service Revenues 82,226 79,153 ▲4% 41,077 41,148 = OPEX and Subsidy (39,262) (39,004) ▲1% (19,465) (19,798) ▼2% EBITDA 42,964 40,149 ▲7% 21,613 21,351
Slide 19: EBITDA margin tracking above guidance on effective cost management
EBITDA margin tracking above guidance on the back of effective cost management; lower OPEX complementing strong topline performance 1,825 726 822 523 312 827 42,964 YoY 66 in PhP Mn 40,493 ▲7% YoY 1H23 EBITDA Inc. in Inc. in Inc. in Staff Dec. in Inc. in Network Dec. in Dec. in 1H24 EBITDA Revenues
Slide 20: Total gross proceeds at P72.1 billion; Frontier portfolio fully turned over
Total gross proceeds as of end-June 2024 at P72.1 billion; Frontier portfolio fully turned over as of July 31.6 php MIDC php FRONTIER bn bn 17.0 3.4 php php PHILTOWER bn UNITY bn Closed out Frontier Towers last July 23, 2024 (100% turnover), bringing total closings-to-date proceeds to P85.2 billion
Slide 21: Globe BOD approved 3Q24 dividend of Php25/share
Globe BOD approved 3Q24 dividend of Php25/share underlying our commitment to sustainable and competitive returns 3Q24 CASH DIVIDENDS 25.00 php /sh PAYMENT DATE: 09/05/2024 RECORD DATE: 08/20/2024
Slide 22: Balance sheet remains healthy despite challenging macro environment
Balance sheet remains healthy despite challenging macro environment; improving gearing ratios, well within bank covenants 1H 2024 FY 2023 Cash (in Php Bn) 18.6 16.6 Gross Debt (in Php Bn) 248.7 250.0 Gross Debt to Equity¹ 1.49x 1.56x (Max of 3:1) Net Debt to Equity 1.38x 1.46x Gross Debt to EBITDA 2
Slide 23: Reaffirming Globe's consolidated 2024 outlook
Reaffirming Globe’s consolidated 2024 outlook; all things largely on track REVENUES CASH CAPEX Low- to mid-single digit % growth USD 1.0Bn EBITDA MARGIN PO ISSUANCES ~50% USD 600Mn OTHER CONSIDERATIONS: ⚬ Ongoing completion of tower turnover, majority of the proceeds expected to come within the year
Slide 24: Thank you!
—_——— : fone @ & Thank you! ~