Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Q2 FY11 Earnings Presentation
27 slides from Singapore Telecommunications's earnings presentation, Nov 11, 2010
Slide 1: Financial results presentation
Financial results presentation Q2 FY11: Quarter ended 30 Sep 2010 11 November 2010
Slide 2: Forward looking statements - important note
Forward looking statements - 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 cont
Slide 3: Asia's Leading Communications Company
Asia’s Leading Communications Company Chua Sock Koong Group CEO
Slide 4: Strong revenue growth
Strong revenue growth Group performance Revenue S$4,436m Underlying NPAT S$891m up 8% down 6% down 3% excl. Bharti Africa Free cash flow S$1,096m stable Singapore Revenue S$1,586m EBITDA1 S$524m up 10% down 6% Optus Revenue2 A$2,322m EBITDA2 A$556m up 5% up 9% Regional Mobile Customers3 368m
Slide 5: Group Q2 FY11 highlights
Group Q2 FY11 highlights Proportionate EBITDA1 Raised dividend payout ratio 55-70%2 76% outside Singapore Group interim dividend up 10% to 6.8¢ Set up S$200m corporate venture capital fund to drive innovation Others 1% Optus Launched high-speed fibre & interactive TV services for 31% Singapore con
Slide 6: Q2 FY11: stable EBITDA
Q2 FY11: stable EBITDA 3 months 3 months YoY % 3 months Sequential S$m to Sep 10 to Sep 09 change to Jun 10 % change Operating revenue 4,436 4,103 8.1% 4,289 3.4% Operational EBITDA 1,188 1,149 3.4% 1,255 (5.4%) - margin 26.8% 28.0% 29.3% Associates (ex exceptionals) 567 606 (6.6%) 551 2.9% EBITDA1
Slide 7: 1H FY11: strong operational EBITDA offset by lower associate earnings
1H FY11: strong operational EBITDA offset by lower associate earnings S$m 6 months to 6 months to YoY % Sep 10 Sep 09 change Operating revenue 8,725 7,951 9.7% Operational EBITDA 2,444 2,278 7.3% - margin 28.0% 28.6% Associates (ex exceptionals) 1,117 1,253 (10.8%) EBITDA1 3,551 3,531 0.6% Depreciat
Slide 8: Foreign exchange movements
Foreign exchange movements Currency appreciation / Exchange rate1 (depreciation) against S$ Currency S$ 1.00 YoY QoQ 2 1 AUD S$ 1.2272 2.3% stable INR 34.2 (1.5%) (4.3%) IDR 6,623 4.6% (1.3%) PHP 33.3 0.3% (1.8%) THB 23.3 1.3% stable BDT 51.3 (6.7%) (3.0%) PKR 63.3 (10.1%) (4.5%) 1. Average exchange
Slide 9: Trends in constant currency terms
Trends in constant currency terms1 2Q FY11 YoY % change YoY % change 3 months to Sep 10 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,436 8.1% 6.6% Group underlying NPAT 891 (6.4%) (7.7%) Optus revenue 2,850 7.1% 4.7% Associates earnings2 567 (6.6%) (8.2%) 1H FY11 YoY % change YoY %
Slide 10: Singapore
Singapore
Slide 11: Singapore: double-digit growth in mobile and IT&E
Singapore: double-digit growth in mobile and IT&E Revenue YoY Q2 FY11 Highlights (S$ m) Change Total revenue 1,586 10% • strong growth in IT & Engineering and Mobile • strong postpaid customer growth and higher Mobile 437 11% ARPU • continued migration to IP VPN and Ethernet Data & Internet 402 2% s
Slide 12: Data & Mobile: leading & shaping the market
Data & Mobile: leading & shaping the market Corporate data services S$293m Mobile revenue S$437m revenue Postpaid ARPU at S$88 3% • up 5% excluding data-only SIMs +3% Wireless BB subs1 670k 293 285 50 Others Data services revenue (S$m) 47 35 3.18 3.17 46 3.10 3.12 3.11 ILC & Prepaid2 93 77 Managed 4
Slide 13: Delivering integrated ICT & multimedia services
Delivering integrated ICT & multimedia services IT & Engineering revenue1 S$374m mio TV revenue S$22m Fibre rollout revenue S$72m mio TV customers2 245k up 25,000 NCS Group revenue S$302m Customers on bundles: up 5% mio Plan & mio Home 211k up 12,000 Infrastructure services 71% 29% Business so
Slide 14: Investing in strategic initiatives
Investing in strategic initiatives Key initiatives Operating expenses 20% drive smartphone adoption & data usage build scale in multimedia & bundled Selling & Admin • mio TV content costs 39% services strengthen competitive edge in integrated • higher mobile acquisition & corporate ICT solutio
Slide 15: Optus
Optus
Slide 16: Optus: building on growth momentum in mobile
Optus: building on growth momentum in mobile Revenue YoY Q2 FY11 Highlights A$m change Total revenue 2,322 5% 5% • continued momentum in mobile • double digit service revenue growth Mobile 1,498 9% • strong growth in Postpaid customers Business & • lower ICT and Managed Services revenue Wholesale 48
Slide 17: Mobile: delivering strong earnings growth
Mobile: delivering strong earnings growth Double digit service revenue Strong EBITDA growth growth 10% • EBITDA margin stable at 25% 8% • 8th consecutive quarter Service Net Adds Revenue (‘000) Strong customer growth (A$m) 189k 450 1,350 • wireless broadband base 1,262 exceeds 1 million 1,204 1,181
Slide 18: Business & Wholesale Fixed: EBITDA growth with higher on-net mix
Business & Wholesale Fixed: EBITDA growth with higher on-net mix Business: growth momentum in voice Wholesale: higher satellite revenue revenue -3% 325 167 Wholesale Fixed revenue (A$m) 316 168 Business Fixed revenue (A$m) 42 37 Voice 5% 12% 98 105 Voice 8% 63 63 119 Data & IP Stable Data & IP Stabl
Slide 19: Consumer & SMB Fixed: on-net strategy delivers improved earnings
Consumer & SMB Fixed: on-net strategy delivers improved earnings Strong EBITDA growth Broadband drives on-net growth 15% 1m • EBITDA margin up 2 ppt to 17% Consumer & SMB Fixed revenue (A$m) 347 343 18% 17% 70 16% 16% 16% 15% 15% 15% 65 14% EBITDA margin (%) EBITDA (A$ m) 269 On-net 12% 57 58 60 279
Slide 20: Operating costs: prudent cost management while maintaining competitiveness
Operating costs: prudent cost management while maintaining competitiveness Continued customer acquisition Operating expenses 4% while managing growth in costs Net adds Operating Costs ('000) (A$m) Selling & Admin •increased customer acquisition / 8% retention costs 400 1,000 1,030 1,010 1,066 1,003
Slide 21: Associates and joint ventures
Associates and joint ventures
Slide 22: SingTel: Pan-Asia & Africa operations covering more than 2 billion population
SingTel: Pan-Asia & Africa operations covering more than 2 billion population #4 in Pakistan 30% #5 in Bangladesh 45% #1 in Thailand #1 in India 21% 32% 4 6 #2 in Philippines 2 3 5 47% 1 11 12 78 9 Africa 13 16 Shareholding 10 14 by Airtel 15 #1 in Singapore 100% 1.Sierra Leone 100% 9.DR Congo 98.5%
Slide 23: Regional Mobile: significant footprint across Asia & Africa
Regional Mobile: significant footprint across Asia & Africa PBTL 70% Africa Mobile 40.1 penetration (%) India, Bangladesh Mobile Sri Lanka 17% customers (m) 187.7 147.6 108% 93.1 91% 82% 1 10% 8% 4% 59% 7% Growth in 57% customers (%) 39% 25.4 30.5 1.9 17.2 Effective 32.0% 35.0% 47.3% 21.3% 45.0% 30.
Slide 24: Regional Mobile Associates
Regional Mobile Associates PBT1 % Change % Change Q2 FY11 Highlights (S$ m) (S$) (local curr) Regional 6% 536 NA Mobile • price competition Telkomsel 230 9% 13% • network upgrades & expansion costs • accelerated depreciation of certain assets • South Asia: stable EBITDA Bharti 209 12% 10% • overall
Slide 25: Financial position & Outlook
Financial position & Outlook
Slide 26: Strong financial position
Strong financial position Generating strong free cash flow1 Strong balance sheet +12% Net debt S$6.0bn 1,872 1,666 554 Net gearing 20% Group free cashflow (S$m) S$4m 550 Singapore Net debt:EBITDA 0.8x 673 491 S$182m Optus EBITDA:net interest 22x expense 625 645 S$20m Assoc div S&P’s Moody’s 1H FY10
Slide 27: Asia's Leading Communications Company
Asia’s Leading SingTel Communications Company www.singtel.com
Singapore Telecommunications — Q2 FY11 Earnings Presentation on 6ix