Singapore Telecommunications Limited · SGX:Z74

Singapore Telecommunications — 9M FY2002 Earnings Presentation

24 slides from Singapore Telecommunications's earnings presentation, Feb 8, 2002

  1. Slide 1: Financial results presentation

    Financial results presentation Nine months ended 31 December 2001 8 February 2002

  2. Slide 2: Asia's leading communications company

    Asia’s leading communications company Lee Hsien Yang President & Chief Executive Officer

  3. Slide 3: Financial highlights

    Financial highlights 9 months to Dec 2001 vs pcp ƒ Resilient performance in 1% Growth in operating revenue Singapore – operational EBITDA margin held to 53% 21% Growth in data revenue ƒ Optus mobile benefits from 14% Mobile revenue growth sectoral consolidation ƒ Subscriber growth boosts AIS and 156

  4. Slide 4: Successful transformation of SingTel business

    Successful transformation of SingTel business ¾ Focus on execution SingTel has higher proportion Strategic milestones of data & mobile 54 51 ƒ Optus integration planning complete % of revenue* 36 29 30 31 32 28 ƒ Telkomsel investment completed ƒ Bharti IPO ƒ C2C on time / on budget TCNZ SBC Deutsche

  5. Slide 5: Statutory results impacted by Optus consolidation

    Statutory results impacted by Optus consolidation 9 months 9 months Increase/ Statutory results (S$M) to Dec 2001 to Dec 2000 (Decrease) % Operating revenue 4,914 3,663 34% Operational EBITDA 2,233 1,988 12% Operational EBITDA margin 45% 54% N/m EBITDA* 2,727 2,529 8% Profit after tax - before goodw

  6. Slide 6: SingTel (ex-Optus): resilient performance continues

    SingTel (ex-Optus): resilient performance continues 9 months 9 months Increase/ SingTel only (S$M) to Dec 2001 to Dec 2000 (Decrease) % Operating revenue 3,707 3,663 1% Operational EBITDA 1,970 1,988 (1%) Operational EBITDA margin 53% 54% N/m EBITDA* 2,478 2,529 (2%) * Operational EBITDA + IDA compe

  7. Slide 7: SingTel (ex-Optus): Q3 impacted by weak economy

    SingTel (ex-Optus): Q3 impacted by weak economy 3 months 3 months Increase/ Q3FY02 SingTel only (S$M) to Dec 2001 to Sep 2001 (Decrease) % vs Vs Q3FY01 Operating revenue 1,211 1,253 (3%) (2%) Operational EBITDA 628 666 (6%) (8%) Operational EBITDA margin 52% 53% N/m N/m EBITDA* 794 837 (5%) (9%) * O

  8. Slide 8: Powerful data growth sustained – up 21%

    Powerful data growth sustained – up 21% ¾ Supported by strong bandwidth demand PDPN revenue growth Int’l leased circuits growth 9 mths to Dec 2001 vs pcp 9 mths to Dec 2001 vs pcp +21% +25% 935 342 90% plus 774 272 $ million $ million Growth in number of high bandwidth* Int’l circuits Dec 2000 Dec 2

  9. Slide 9: C2C provides low cost regional bandwidth

    C2C provides low cost regional bandwidth ¾ In service and on budget C2C network configuration ƒ Helps SingTel maintain profitable growth of international data revenues Shima Pusan Chikura Shanghai To USA on C2C Pacific ƒ Competitive advantages Hong Kong Tansui • Quality sponsors Fangshan Vietnam Pha

  10. Slide 10: Mobile – focus on post paid

    Mobile – focus on post paid ¾ Cellular revenues rebound: 4% growth Rebound in postpaid Retention - higher ARPU success customers 38,000 Monthly churn - postpaid Monthly average net adds 31,000 Pre-paid < 2% Pre-paid Post-paid 77% of net adds Post-paid 38% Apr-Aug 01 Dec 01 - Jan 02 Jun 00 Dec 00 Jun

  11. Slide 11: International telephone volume grows 8%

    International telephone volume grows 8% ¾ Stabilising market share drives traffic growth Int’l telephone revenue IDD net avg collection rate & mkt share 100% 460 1.14 IDD market share% 87% 258 $ million S$ per min 0.52 FY99* 1Q01 3Q01 1Q02 3Q02 FY00* 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 *FY99 & FY00 :

  12. Slide 12: Margins defended - tight cost control

    Margins defended - tight cost control ¾ Operational EBITDA margin in core business held at 53% ƒ Higher CPF and other staff costs partially offset by lower • Cost of sales • Selling & administration Cost of sales Selling & Admin Staff cost - 8% - 7% +9% 417 389 534 326 489 301 $ million $ million $

  13. Slide 13: Optus results

    Optus results ƒ Strongest challenger in Australia ƒ Market conditions improving • Mobile revenue up 14% ƒ Delivering on cost management • 23% operational EBITDA growth

  14. Slide 14: Optus financial highlights

    Optus financial highlights Sing GAAP 9 mnths to 9 mnths to Increase/ A$M Dec 2001 Dec 2000 Decrease Operating revenue 3,702 3,501 6% Operational EBITDA 794 645 23% Operational EBITDA margin % 21% 18% na EBITDA* 717 594 21% * Operational EBITDA + share of results of associated & joint venture compani

  15. Slide 15: Mobile revenue up 14% to A$1.8bn

    Mobile revenue up 14% to A$1.8bn* Subscriber growth: up 18% ƒ Customer growth rebound 4.0 Total Optus subs (m) ƒ ARPU decline slowing 33.5% • More rational pricing environment market share 3.4 ƒ Successfully secured value of wholesale base • over 80% of the base now retail Dec Mar Jun Sep Dec custom

  16. Slide 16: Business data & IP revenues up 12%

    Business data & IP revenues up 12%* Solid performance given weakness in the wholesale market Business data & IP revenues A$m 12% 491 439 Dec 00 Dec 01 * Sing GAAP

  17. Slide 17: Consumer & multimedia revenue up 6%

    Consumer & multimedia revenue up 6%* • Achieving strategic objectives: scale and returns Strong broadband revenue growth Strong broadband customer growth +24% 17% internet revenues Broadband customers Broadband & 440 559 355 479 44% multiple 34% customers on HFC Dec 00 Dec 01 Dec 00 Dec 01 Continued

  18. Slide 18: Delivering on cost management

    Delivering on cost management • Operational EBITDA margin rises to 21% from 18% • A$100m Win Through savings to fully impact from Q4 • Headcount reduction complete 12% Staff costs in 3 mths to Dec 01 Operating cost growth contained Slower than revenue growth in • 1% 9 mths to Dec 01 • Capex spend $1

  19. Slide 19: Organisational changes underway

    Organisational changes underway ¾ Objective : achieve $300M integration synergies • Regional mobile • Traffic management operations & procurement International Mobile • Cable asset management • Product development infrastructure & network • Satellite business • Network planning & engineering • Accou

  20. Slide 20: Regional mobile – earnings growth engine

    Regional mobile – earnings growth engine ¾ Earnings driven by 69% aggregate subscriber growth + 69% 9 mths to Dec 01 vs 9 mths to Dec 00 19.6M Aggregate subscribers Telkomsel +93% Globe Optus +16% 156% earnings 11.6M Bharti +129% contribution# AIS +163%** AIS earnings Globe +79% 20% contribution Sin

  21. Slide 21: Regional mobile - strong growth prospects

    Regional mobile - strong growth prospects ¾ Quality business – market leaders Market growth forecast 31% 116M CAGR Singapore Australia Attractive Subscribers (M)* Indonesia growth outlook Thailand Philippines 30M India 2000 2005 * Source : Merrill Lynch

  22. Slide 22: Financial strength & flexibility

    Financial strength & flexibility ƒ SingTel is one of most highly rated telcos S&P AA- in Asia Moody’s A1 ƒ Successful US$2.3bn bond issue extends “Deal of the Year” average life of debt to 8 years Net debt $9.5bn ƒ Balance sheet remains strong Net gearing 39% ƒ Singapore business delivers strong Ope

  23. Slide 23: Summary and outlook

    Summary and outlook ƒ Singapore business Resilient performance ƒ Optus mobile Benefits from consolidation ƒ Regional mobile Strong earnings growth ƒ Financial strength Strong cashflows ƒ Strategic focus Execution

  24. Slide 24: Financial results presentation

    Financial results presentation Nine months ended 31 December 2001 8 February 2002

Singapore Telecommunications — 9M FY2002 Earnings Presentation on 6ix