Singapore Telecommunications Limited · SGX:Z74

Singapore Telecommunications — Investor Day (June 2019)

19 slides from Singapore Telecommunications's investor day presentation, Jun 11, 2019

  1. Slide 1: Singtel Investor Day 2019

    SINGTEL I N V E S T O R D AY 2019 Heri Supriadi Alistair Johnston Singapore, 11 June 2019 1

  2. Slide 2: Table of Contents

    TA B L E O F C O N T E N T S TELKOMSEL 1 PERFORMANCE CHALLENGES & 2 T R A N S F O R M AT I O N D I G I TA L 3 I N I T I AT I V E S 1

  3. Slide 3: Telkomsel Performance

    TELKOMSEL 1 PERFORMANCE CHALLENGES & 2 T R A N S F O R M AT I O N D I G I TA L 3 I N I T I AT I V E S 2

  4. Slide 4: Telkomsel in Brief

    TELKOMSEL IN BRIEF Company’s Profile • Started operations in 1995, Telkomsel is the subsidiary of PT Telekomunikasi Indonesia Tbk (65%) and Singapore Telecom Mobile Pte Ltd (35%) • Within 24 years, Telkomsel has established itself as the leading cellular operator in Indonesia with around 169 million

  5. Slide 5: Telkomsel in Brief

    TELKOMSEL IN BRIEF Population Coverage: ± 99% with 3G Coverage: ± 85% & 4G Coverage: ± 93% Papua, Maluku, Sulawesi, Kalimantan CB portion: 21% Sumatera CB portion: 27% Greater Jakarta & West Java Java & Bali CB portion: 29% CB portion: 23% Indonesia Telco Industry Overview Mature industry with estim

  6. Slide 6: Performance Highlights 1Q-2019

    PERFORMANCE HIGHLIGHTS 1Q-2019 Industry is going toward a healthier and rational condition for the overall telecommunications industry TSEL recorded a positive performance of Revenues, EBITDA & Net Income in 1Q-2019 YEAR-ON-YEAR REVENUES EBITDA NET INCOME CAPEX In Trillion +1.4% In Trillion In Trill

  7. Slide 7: Performance Highlights 1Q-2019

    PERFORMANCE HIGHLIGHTS 1Q-2019 Continue to Focus on Digital Business Engine of growth and accounted for 61% of Total Revenues YEAR-ON-YEAR DIGITAL BUSINESS REVENUE DATA USER DATA TRAFFIC Digital Business: In Trillion In Million In PB +29.5% +2.2% +56.6% 13.6 10.5 1,375.9 108.7 111.1 878.5 +29.7% 11.

  8. Slide 8: Big-3 Performance (1Q-2019 YoY)

    BIG-3 PERFORMANCE (1Q-2019 YoY) Cellular Revenue (Rp.Tn) EBITDA (Rp.Tn) Net Income (Rp.Tn) XL Industry Growth (BIG-3) +3.4% +1.4ppt XL 0.9% -0.6ppt 13.8% -1.5ppt +0.6ppt XL +0.8ppt 18.1% ISAT Net Income +0.1ppt 13.0% EBITDA Rev share TSEL share ISAT share 73.2% TSEL +0.5ppt 14.7% TSEL +1.3% 99.1% +1

  9. Slide 9: 2019 Guidance

    2019 GUIDANCE Revenue Inline with or slightly above market growth EBITDA Margin Slightly decline compared to last year CAPEX Approximately 15-16% over revenue BTS roll out Focus on 4G roll out 8

  10. Slide 10: Challenges & Transformation

    TELKOMSEL 1 PERFORMANCE CHALLENGES & 2 T R A N S F O R M AT I O N D I G I TA L 3 I N I T I AT I V E S 9

  11. Slide 11: Indonesian market facing accelerated Legacy decline alongside Data competition

    Indonesian market is facing accelerated Legacy decline in parallel with competition in Data Top 5 market size1 (2014 – 2018; IDR Tn) -3% Legacy market growth2 (%YoY) 158 +8% 153 148 -3% -2% 135 -10% -13% 126 Legacy decline -21% -24% -27% -29% acceleration Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4

  12. Slide 12: Several market forces require us to transform

    Several market forces require us to transform Increased Changing Customer Digitalization Competition Needs 13

  13. Slide 13: Transformation program focusing on specific drivers and enablers

    We have set up transformation program focusing on specific drivers and enablers linked to our strategic priorities Growth Drivers B2C Enabling the Data B2B Connectivity and Digital growth Compelling services solutions New operating model to support our growth priorities Cost transformation and digit

  14. Slide 14: Digital Initiatives

    TELKOMSEL 1 PERFORMANCE CHALLENGES & 2 T R A N S F O R M AT I O N D I G I TA L 3 I N I T I AT I V E S 9

  15. Slide 15: Our transformation in digital business has shown significant milestones

    Our transformation in digital business has shown significant milestones to become a digital telco company and leading mobile digital business Video Music Games E-money Digital Products  15 Mn downloads  9 Mn music users  5.5 Mn MAU  24 Mn registered  3 Mn MAU  60% of share of  #1 game portal

  16. Slide 16: MyTelkomsel app will be the main channel for personalization

    MyTelkomsel app will be the main channel to deliver personalization to drive business based on customer needs What we have done What’s next Best Deal Program & Payment Expansion  Always Best Deal in MyTelkomsel  Payment expansion  Personalized loyalty reward  Assisted touch point Lifestyle exper

  17. Slide 17: Telkomsel Digital Lifestyle products grew 35% by Q1'19

    Telkomsel Digital Lifestyle products grew 35% by Q1’19 driven by massive growth on Games Games Video Music & VAS  Games revenue Q1’19 grew by 92% YoY  Video revenue Q1’19 grew by 16% YoY  Music revenue Q1’19 grew by 26% YoY Gross rev (IDR Bn) Gross rev (IDR Bn) Gross rev (IDR Bn) +92% +16% +26% 7

  18. Slide 18: Games and Video to scale platforms; Music and VAS to maximize monetization

    To sustain the growth, Games and Video will be focusing on scaling-up platforms, while Music and VAS to maximize monetization What we have done What’s next Take control of Games ecosystem Scale up Dunia Games platform  Deliver E-sport & features for DG resellers  Deliver Dunia Games international

  19. Slide 19: Thank You!

    THANK YOU! 11

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