Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Shareholder Meeting (July 2022)
20 slides from Singapore Telecommunications's shareholder meeting presentation, Jul 29, 2022
Slide 1: 30th Annual General Meeting
30th Annual General Meeting Yuen Kuan Moon, Group CEO 29 July 2022
Slide 2: FY22: Year in Review
FY22: YEAR IN REVIEW Continued disruption from COVID but Positive price momentum in Australia green shoots emerging & India Growth in NCS & data centre Continued investment to lead in 5G business Unlocked >S$2b of value Higher dividend to shareholders
Slide 3: Strong turnaround in financial performance
EBIT Operating EBITDA (before associates’ revenue contributions) S$15.3b S$3.8b S$1.0b Strong ▼ 2% Stable1 ▼ 2% ▲ 8%1 ▼ 9% ▲ 33%1 turnaround in financial Regional associates’ PBT Underlying net profit Net profit3 performance S$2.1b S$1.9b S$1.9b ▲ 11% ▲ 2.5x ▲ 21% ▲ 33%1 ▲ 7.2x1 1. Excludes Optus’ N
Slide 4: 24% increase in dividends; 80% payout ratio
Dividend per share (S’cts) Interim Final FY22 4.5 4.81 9.3 24% FY21 5.1 2.4 7.5 24% increase in dividends; 80% payout ratio Dividend policy 60-80% of underlying NPAT Sustainable dividend policy in line with earnings & cash flow generation 1. Proposed final dividend.
Slide 5: Strong growth in underlying EBIT
EBIT (before associates’ contributions) (S$’b) SG AU NBN & Others2 GE Cons NCS Cons JSS FY22 -0.4 0.7 0.3 0.2 0.2 0.1 1.0 +33% -9% FY21 0.0 -0.4 0.6 0.3 0.2 0.4 1.1 Strong growth in underlying EBIT1 Key themes Digitalisation Nascent Global driving demand recovery in equipment for DC & IT roaming sho
Slide 6: Associates' earnings turnaround led by Airtel
Regional associates’ PBT (S$’b) Telkomsel Intouch AIS Globe Airtel FY22 0.9 0.1 0.3 0.3 0.4 2.1 21% Associates’ FY21 0.9 0.1 0.3 0.3 0.0 1.7 earnings turnaround led by Airtel Key themes Industry Positive price Transition into 5G consolidation trajectory Expansion into Acceleration Fixed mobile enter
Slide 7: >S$5b of cash generated from operations & capital recycling
Free cash flow1 & capital recycled (S$’b) FCF ex NBN & JSS NBN & JSS Capital recycled FY22 3.0 0.1 2.1 5.2 >S$5b of cash 53% generated from FY21 2.9 0.5 3.4 operations & capital recycling S$3.1b S$2.1b generated from generated from operations1 capital recycling 1. Cash flow from operating activities
Slide 8: Ensuring Sustainable Dividends & Growth
ENSURING SUSTAINABLE DIVIDENDS & GROWTH Cash from core Asset recycling, capital operations partners ▪ Operational cash flows ▪ Unlock value from to fund core operations asset recycling & & dividends capital partnerships to ▪ Protect dividends & fund growth ensure that it grows in- investments Capex
Slide 9: Delivering to our strategic reset
Delivering to our strategic reset
Slide 10: Our Strategic Reset
Reinvigorate the Core Our Capitalise on Growth Trends Strategic Reset Reallocate Capital, Unlock Value Champion People & Sustainability
Slide 11: Executing on 5G
Reinvigorate the core EXECUTING ON 5G Accelerating 5G take-up >480k >2.3m Subs in Singapore Connected devices in Australia Fastest speeds in Singapore & Australia Standalone 5G nationwide coverage in Singapore S$1.5b to secure additional 5G spectrum
Slide 12: Differentiated Products & Services
Reinvigorate the core DIFFERENTIATED PRODUCTS & SERVICES Singtel Paragon Optus Living Network Industry’s first all-in-one 5G & edge cloud Unique network experiences with My Optus app orchestration platform Real-time performance monitoring of IoT devices & network Optus Call Optus Pause Donate Your T
Slide 13: Becoming a regional tech services powerhouse
Capitalise on growth trends Becoming a regional tech services powerhouse Specialise Regionalise Digitalise 26% of revenue from enterprises Gained scale in Australia 49% of revenue from digital S$300m 2,000 Set up to build of revenue1 talents New strategic business digital expertise units Acquired di
Slide 14: Regional Data Centre Platform
Capitalise on growth trends REGIONAL DATA CENTRE PLATFORM Focus on the 3 fastest growing markets in ASEAN Extend market leadership with new DC build Explore buildout & Best of breed partnership acquisition of DCs in ~60MW 30-40MW Indonesia of capacity pipeline
Slide 15: digibank
Capitalise on growth trends DIGIBANK Leverage our unique strengths to build scale & consortium of local partners Launching in 2H22; Acquired Bank Fama; undergoing internal pilot Awarded digibank licence launching in 2023
Slide 16: Reallocate capital, unlock value
Reallocate capital, unlock value Upcoming asset Raised >S$2b in recycling Divested 70% of proceeds Australia Tower Divestment of Monetised partial Network & sold 4k of stake in Airtel Africa Amobee Telkomsel’s towers Expect another Redevelopment of ~S$3b in the mid- Comcentre term Africa Ongoing str
Slide 17: Lead in Sustainability
Champion people & sustainability LEAD IN SUSTAINABILITY Climate change & People & future of Sustainable value Community impact environment work creation A- 20% S$33m 69% of top management’s of community Leadership score in CDP of financing sustainable long-term incentive investment linked to ESG KPI
Slide 18: Why invest in Singtel?
THE ECONOMIC = IMPACT OF 5G s13.2im 5% Singtel
Slide 19: Strong Investment Proposition
STRONG INVESTMENT PROPOSITION Strong cash flow Tailwinds from increased Improving competitive generation fueled by post spending by enterprises on environment in certain Covid recovery digitalisation markets Safe haven in volatility & Strong balance sheet with inflation sustainable dividends
Slide 20: Slide 20
Singapore Telecommunications — Shareholder Meeting (July 2022) on 6ix