Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Investor Day (June 2014)
16 slides from Singapore Telecommunications's investor day presentation, Jun 3, 2014
Slide 1: Group Consumer
Group Consumer SingTel Investor Day 3 June 2014 Paul O'Sullivan CEO, Group Consumer 0
Slide 2: Our core businesses have generated strong profitability over the last 3 years
Our core businesses have generated strong profitability over the last 3 years Singapore Consumer Australia Consumer Regional Mobile Associates EBITDA EBITDA Share of Assoc. NPAT S$ M A$ M S$ M Flat +7% +13% at ccy +9% at ccy 2,265 2,117 2,120 +6% +1% +13% +7% 1,316 1,393 1,402 713 590 632 FY12 FY13
Slide 3: Changes in our external environment demand we urgently transform
However, changes in our external environment demand we urgently transform to future-proof our business – OTTs are redefining and improving traditional telco tasks Messaging Collaboration Social Networking 2
Slide 4: A handful of tech giants are emerging, each expanding their reach
A handful of tech giants are emerging, each expanding their reach across the value chain and building up their respective ecosystems B2B (search, advertising etc.) Media / Content Web services / OTT Connectivity Face- SW & devices book phone 3
Slide 5: In Australia, we need to regain trading momentum and market share
In Australia, we have the added challenge of needing to regain trading momentum and market share in mobile and fixed Mobile market service revenue Mobile subscribers A$ M, % ‘000 7,824 7,905 7,723 7,910 30,228 30,635 30,933 30,938 Optus 31.2% 31.0% 30.1% 29.6% Optus 31.5% 31.2% 31.0% 30.5% Telstra 4
Slide 6: The same shifts are hitting our Associate markets
The same shifts affecting our SG & AU markets are similarly hitting our Associate markets Aggregated across Associate markets Data as % of revenue % data users 28 33 24 18 9 13 2012 2013 2014 2012 2013 2014 3G NW roll-out % smartphone uptake (3G BTS as % of 2G + 3G BTS) 35 27 20 18 9 13 2012 2013 20
Slide 7: We are retooling our business to capitalise on data growth
We are retooling our business to capitalise on one thing that is certain: Data growth Data traffic Data contribution Data traffic Data contribution Non-SMS data % of ARPU Non-SMS data % of revenues +7ppt +10 ppt +78% +40% 29% 37% 22% 27% 2013 2014 2013 2014 2013 2014 2013 2014 Data Monetisation init
Slide 8: a. ‘ or 1010* . oe
a. ‘ or 910 1010* . oe 3040010100 100° 4010100101010 4 1040101010111101 = "10010101 " 71891232101 0010 40
Slide 9: We have a 3-year plan to change the business
We have a 3-year plan to change the business Brilliant customer Simple, low cost experience to earn model with a their loyalty customer focused What I buy culture ‘Flexible Simple data- to my based changing products needs’ Tomorrow’s How I interact Customer ‘Easy to use Digitisation of anywhere with
Slide 10: Major shifts in our operating model: 4-S strategy
We are making major shifts in our operating model to cater to the customer of the future : 4-S strategy Examples Deliver highly simplified modular products with a focus on data “Simplify” – “Mix-and-match” constructs that provides flexibility to Product increase data allowance vis-à-vis traditiona
Slide 11: Key transformation metrics we will be tracking
Key transformation metrics we will be tracking Data % of ARPU Product ARPU NPS Service & Sales Online % of sales / care transactions Call-center volume reduction Network NPS Network Mobile Data Capacity Headroom Churn reduction Analytics Upsell / cross-sell improvements Opex savi
Slide 12: Underpinning SG & AU transformation with shared platforms & scale
We are underpinning our SG & AU transformation with shared platforms & scale across operations alternate Core SG lead AU transformation transformation transformation Common billing & customer care systems Shared Single procurement across devices, networks, IT platforms Joint analytics platform Share
Slide 13: Turnaround initiative focused on rebuilding AU market
In parallel, we are implementing a strong turnaround initiative focused on rebuilding AU market In FY15, this includes : Delivering anour Reinforcing innovative set of offers to attack Data Sharing & BYO brand positioning Doubling our Launching Share-of-Voice breakthrough products to attack to 34% D
Slide 14: Unlocking further value at our Associates through Group synergies
To unlock further value at our Associates, we will be increasingly leveraging Group synergies and scale Centres of Excellence across SingTel Group Customer Experience Smart Customer Life using Analytics Cycle Management focused on helping Associates accelerate development of data capabilities Protec
Slide 15: With data growth set to explode, our 4-S strategy will serve us well
With data growth set to explode, our 4-S strategy will serve us well for the future Mobile Data Traffic Exabytes per month x7 6.7 4.4 Asia 2.8 Pacific 1.7 1.0 0.5 2013 2014 2015 2016 2017 2018 Source : CISCO VNI Jan 2014 (ITU) 14
Slide 16: Disclaimer
Disclaimer: This material that follows is a presentation of general background information about SingTel’s activities current at the date of the presentation. The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to
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