Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Q3 FY11 Earnings Presentation
27 slides from Singapore Telecommunications's earnings presentation, Feb 10, 2011
Slide 1: Financial results presentation
Financial results presentation Q3 FY11: Quarter ended 31 Dec 2010 10 February 2011
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: Continued revenue growth
Continued revenue growth Group performance Revenue S$4,704m Net profit S$998m up 6% stable Underlying net profit down 2% Singapore Revenue S$1,634m EBITDA1 S$587m up 7% up 1% Optus Revenue2 A$2,384m EBITDA2 A$553m up 4% up 5% Regional Mobile Customers3 383m Earnings4 S$488m up 34% down 13%
Slide 5: Group Q3 FY11 highlights
Group Q3 FY11 highlights Proportionate EBITDA1 Corporate VC fund makes 74% Group first investments outside Singapore Others 1% mio TV customers cross 264k quarter million mark Optus Singapore Launched De!ite e-magazine 32% reader with interactive 41% capabilities De!ite Updated exclusive digital Reg
Slide 6: Q3 FY11: strength in Singapore & Australia offset by lower associates earnings
Q3 FY11: strength in Singapore & Australia offset by lower associates earnings 3 months 3 months YoY % 3 months Sequential S$m to Dec 10 to Dec 09 change to Sep 10 % change Operating revenue 4,704 4,450 5.7% 4,436 6.0% Operational EBITDA 1,284 1,233 4.1% 1,188 8.1% - margin 27.3% 27.7% 26.8% Associa
Slide 7: 9M FY11: stable EBITDA
9M FY11: stable EBITDA S$m 9 months to 9 months to YoY % Dec 10 Dec 09 change Operating revenue 13,428 12,400 8.3% Operational EBITDA 3,727 3,511 6.2% - margin 27.8% 28.3% Associates (ex exceptionals) 1,636 1,845 (11.4%) EBITDA1 5,354 5,356 * Depreciation & amortisation (1,469) (1,391) 5.6% Net fina
Slide 8: Foreign exchange movements
Foreign exchange movements Currency appreciation / Exchange rate1 (depreciation) against S$ Currency S$ 1.00 YoY QoQ 2 1 AUD S$ 1.2875 1.5% 4.9% INR 34.5 (3.3%) (0.9%) IDR 6,897 (1.4%) (4.1%) PHP 33.4 0.6% (0.3%) THB 23.0 3.8% 1.3% BDT 54.1 (9.3%) (5.5%) PKR 65.8 (9.8%) (3.9%) 1. Average exchange ra
Slide 9: Trends in constant currency terms
Trends in constant currency terms1 3Q FY11 YoY % change YoY % change 3 months to Dec 10 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,704 5.7% 4.7% Group underlying NPAT 968 (2.2%) (2.2%) Optus revenue 3,070 5.1% 3.6% Associates earnings2 518 (12.5%) (11.6%) 9M FY11 YoY % change YoY
Slide 10: Singapore
Singapore
Slide 11: Singapore: broad-based growth, led by mobile
Singapore: broad-based growth, led by mobile Revenue YoY Q3 FY11 Highlights (S$ m) Change Total revenue 1,634 • driven by strong postpaid customer growth, Mobile 465 increased take-up of higher rate plans and higher roaming traffic • strong growth in Managed Services, partially Data & Internet 401 o
Slide 12: Mobile: record postpaid customer additions
Mobile: record postpaid customer additions Strong postpaid cust growth Double digit revenue growth • highest net adds in 2 years Mobile customers (‘m) Mobile Postpaid ARPU at S$92 revenue (S$m) 3% 4.0 500 • up 5% excluding data-only SIMs 465 432 437 3.5 419 417 450 394 370 380 400 Wireless BB subs u
Slide 13: Transforming into an integrated ICT & multimedia solutions company
Transforming into an integrated ICT & multimedia solutions company Corporate data services S$290m IT & Engineering revenue1 S$384m revenue NCS Group revenue +2% S$312m up 1% 285 290 Others NCS Group order book2 S$1.9bn Data services revenue (S$m) 45 49 43 30 ILC & 84 100 Managed 3% mio TV revenue
Slide 14: Investing in strategic initiatives
Investing in strategic initiatives Singapore Biz EBITDA S$587m Operating expenses 12% • up 1% Selling & Admin • mio TV content costs 20% Telco IT & Engg • partially offset by lower mobile EBITDA EBITDA acquisition & retention costs S$527m S$60m Cost of sales • Higher handset sales and 14% Telco EBIT
Slide 15: Optus
Optus
Slide 16: Optus: growth underpinned by mobile
Optus: growth underpinned by mobile Revenue YoY Q3 FY11 Highlights A$m change Total revenue 2,384 4% 4% • growth driven by mobile • service revenue growth driven by increase in Mobile 1,561 7% postpaid customers Business & • lower ICT and Managed Services revenue Wholesale 490 2% • higher corporate
Slide 17: Mobile: driving revenue and EBITDA growth
Mobile: driving revenue and EBITDA growth Service revenue growth Postpaid net adds 150k Service Net Adds Revenue (‘000) (A$m) Wireless broadband subs 450 $1,261 1,350 • net adds of 92k 1.2m $1,181 1,200 300 Postpaid ARPU A$69 1,050 • up 2% excluding wireless BB 148 150 139 145 900 Total data % of AR
Slide 18: Business & Wholesale Fixed: EBITDA growth with higher on-net mix
Business & Wholesale Fixed: EBITDA growth with higher on-net mix Business: growth in voice revenue Wholesale: higher Satellite revenue +2% -4% 330 170 Wholesale Fixed revenue (A$m) 317 173 Business Fixed revenue (A$m) 39 36 5% Voice 5% 97 104 Voice 7% 64 65 122 Data & IP 1% Data & IP 2% 121 ICT & 67
Slide 19: Consumer & SMB Fixed: on-net strategy delivers improved margins
Consumer & SMB Fixed: on-net strategy delivers improved margins Improving on-net yield On-net growth continues • On-net broadband ARPU growth 5% 18% 17% 17% 70 Consumer & SMB Fixed revenue (A$m) 16% 16% 346 336 16% 15% 15% 65 14% EBITDA margin (%) EBITDA (A$ m) 12% 57 58 60 55 56 10% On-net 55 271 1
Slide 20: Operating costs: investing in customer growth
Operating costs: investing in customer growth Continued postpaid acquisition Operating expenses while managing cost growth • opex excl selling down 1% Net Add Operating (‘000) Costs (‘000) Selling & Admin 400 1,140 •increased customer acquisition / 12% 1,030 1,010 1,066 1,003 1,050 retention costs 9
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 5 47% 1 3 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 68% Africa Mobile 42.1 penetration (%) India, Bangladesh Mobile Sri Lanka 199.6 157.5 customers (m) 15% 111% 94.0 86% Growth in 1 7% 7% 63% 8% 91% 14% 61% customers (%) 41% 31.2 26.5 1.8 17.5 Effective 32.2% 35.0% 21.3% 47.3% 45.0% 30.
Slide 24: Regional Mobile Associates
Regional Mobile Associates PBT1 % Change % Change Q3 FY11 Highlights (S$ m) (S$) (local curr) Regional 13% 488 NA Mobile 10% • Increased market competition and aggressive Telkomsel 214 9% price promotions • India: recovery in mobile traffic and slower Bharti 184 22% 19% tariff decline • Africa: S$7m
Slide 25: Financial position & Outlook
Financial position & Outlook
Slide 26: Strong financial position
Strong financial position Generating strong free cash flow1 Strong balance sheet +28% Net debt S$5.9bn 2,864 Group free cashflow (S$m ) 2,246 Net gearing 20% 875 Singapore 770 Net debt : EBITDA 0.8x 979 Optus 751 EBITDA:net interest 22x 1,010 expense Assoc div 726 9M FY10 9M FY11 S&P’s Moody’s A+ Aa
Slide 27: Asia's Leading Communications Company
Asia’s Leading SingTel Communications Company www.singtel.com
Singapore Telecommunications — Q3 FY11 Earnings Presentation on 6ix