Starhub Ltd · SGX:CC3
Starhub — Shareholder Meeting (May 2020)
28 slides from Starhub's shareholder meeting presentation, May 22, 2020
Slide 1: StarHub 22nd Annual General Meeting
STARHUB LTD 22ND ANNUAL GENERAL MEETING 22 May 2020 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The following presentation may contain forward-looking statements by StarHub Ltd (“StarHub”) relating to financial trends for future periods. Some of the statements in this presentation which are not historical facts are statements of future expectations with respect to th
Slide 3: Key Discussion Themes
KEY DISCUSSION THEMES 01 02 03 04 05 COVID-19 COMMITMENT TO FINANCIAL ESG OUTLOOK & COMMENTARY TRANSFORMATION HIGHLIGHTS HIGHLIGHTS STRATEGIES Observations, Recent Financial & Business Holistic Progress = Mitigation Developments / Performance Approach to Change + & Financial Impact DARE Progress Com
Slide 4: StarHub at a Glance
STARHUB AT A GLANCE As at 31 December 2019 unless otherwise stated. 15 Years S$2.5B 6.3% 36.0% Listed since 2004 Market Capitalisation Dividend Yield Return on Equity 20 Years S$2.3B S$178.6M S$218.6M Solid Track Record Total Revenue Net Profit Free Cash Flow Embracing Innovation as Singapore’s CONS
Slide 5: COVID-19 Commentary
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Slide 6: COVID-19: People First
COVID-19 Safeguarding Stakeholders PEOPLE FIRST Protecting the health and safety of our EMPLOYEES & CUSTOMERS; Supporting the COMMUNITY; and Safeguarding SHAREHOLDER interests. 6
Slide 7: COVID-19: Employees
COVID-19 Safeguarding Stakeholders Keeping Employees Engaged EMPLOYEES Robust BCP executed since Feb 2020 90% of employees working from home; all service levels achieved Weekly communication to maintain employee Safe Distancing Measures engagement Proactive re-training and re-skilling for impacted e
Slide 8: COVID-19: Customers
COVID-19 Safeguarding Stakeholders CUSTOMERS Temporary retail store closures Accelerated migration of transactions to online touchpoints Ensure network quality and resilience 39 free channel previews; enhanced VOD content BCP support for Enterprise customers: Free softphones subscription; >70% off u
Slide 9: COVID-19: Community
COVID-19 Safeguarding Stakeholders COMMUNITY Wifi Deployment at Expo >S$1M donations to community: reached >1.8K low- income seniors; ~2K low-income households Prepaid SIM for >60K migrant workers Public health SMS advisories for all migrant workers Unlimited mobile broadband for 550 needy students
Slide 10: COVID-19: Shareholders
COVID-19 Safeguarding Stakeholders SHAREHOLDERS Cash flow / balance sheet discipline Successfully renegotiated refinancing of $407.5M bank loans due this year No refinancing until 2022 Adequate credit facilities available Sustain positive operating cash flow generation Defer non-essential expenditur
Slide 11: COVID-19: 1Q2020 Financial Impact
COVID-19 1Q2020 Financial Impact CONSUMER MOBILE Lower roaming & GUIDANCE Lower Churn Prepaid revenues • Withdraw FY2020 guidance for prudence SALE OF • Guidance will be updated ENTERPRISE EQUIPMENT once there is greater visibility Project and tender on the aggregate nature of the Supply chain impac
Slide 12: Commitment to Transformation
02 COMMITMENT TO TRANSFORMATION
Slide 13: D.A.R.E. to Forge Ahead: Transformation Continues
D.A.R.E. TO FORGE AHEAD Transformation Continues DELIVERING Market-Leading Customer Experiences ACCELERATING DELIVERING Accelerating ENHANCING REALISING Value Creation from Core Businesses REALISING Growth from New Opportunities ENHANCING Efforts to Transform Digitally 13
Slide 14: D.A.R.E.: Delivering Market-Leading Customer Experiences
D.A.R.E. TO FORGE AHEAD Transformation Continues DELIVERING Market-Leading Customer Experiences DELIVERING Accelerating #1 #2 #3 ENHANCING REALISING HELLO CABLE-TO-FIBRE ENHANCE ONLINE CHANGE MIGRATION EXPERIENCE NPS improved Migrated >260K Halved customer 130% YoY customers journey for online trans
Slide 15: D.A.R.E.: Accelerating Value Creation from Core Businesses
D.A.R.E. TO FORGE AHEAD Transformation Continues ACCELERATING Value Creation from Core Businesses #1 #2 #3 DELIVERING Accelerating DRIVE MAXIMISE VALUE RENEGOTIATE ENHANCING REALISING OPERATIONAL FROM EXPIRING EFFICIENCIES CORE ASSETS CONTRACTS Ongoing digitalisation & Most Pay TV Realised simplific
Slide 16: D.A.R.E.: Realising Growth from New Opportunities
D.A.R.E. TO FORGE AHEAD Transformation Continues REALISING Growth from New Opportunities #1 #2 #3 DELIVERING Accelerating ENHANCING ACCELERATING 5G GROWTH REALISING CYBERSECURITY FORERUNNER THROUGH GROWTH M&A 79% YoY cybersecurity Obtained 5G Strateq acquisition in revenue growth in Provisional Lice
Slide 17: D.A.R.E.: Enhancing Efforts to Transform Digitally
D.A.R.E. TO FORGE AHEAD Transformation Continues ENHANCING Efforts to Transform Digitally #1 #2 #3 DELIVERING Accelerating ENHANCING ONGOING REALISING LAUNCHED ENHANCED DIGITAL ONLINE TRANSFORMATION TOUCHPOINTS Strong momentum since Multi-year IT Improved My StarHub app launch transformation rating
Slide 18: FY2020 Milestones
FY2020 MILESTONES Recent Developments DELIVERING Market-Leading 29 April: 5G Provisional Customer Experiences Licence 17 April: IT Transformation • Complement existing • Optimise IT operations, ACCELERATING wireless capabilities with 5G lower costs and accelerate 11 Mar: Acquired Strateq Value Creat
Slide 19: Financial Highlights
03 FINANCIAL HIGHLIGHTS <Document Classification> 19
Slide 20: Financial Performance: Revenue
FINANCIAL PERFORMANCE Revenue FY2019 vs FY2018 (S$’M) 1Q2019 vs 1Q2020 (S$’M) 2,362.0 2,330.6 Total 1.3% 596.8 Revenue Total 15.2% 506.2 Revenue Service 3.7% 8.9% Service Revenue 1,832.4 1,765.1 Revenue 444.3 404.9 FY2018 FY2019 1Q2019 1Q2020 • Mobile declined 7.2% due to lower ARPU • Mobile decline
Slide 21: Financial Performance: Disciplined Capital Management
FINANCIAL PERFORMANCE Disciplined Capital Management Opex (S$’M) Free Cash Flow (S$’M) 2,089.7 2,085.8 218.6 145.3 118.9 524.7 448.4 21.4 FY2018 FY2019 1Q2019 1Q2020 31 Dec 2018 31 Dec 2019 31 Mar 2019 31 Mar 2020 • FY2019 vs FY2018: • Higher FY2019 & 1Q2020 FCF due to higher cash from – Excluding C
Slide 22: Financial Performance: EBITDA / Service EBITDA
FINANCIAL PERFORMANCE EBITDA / SERVICE EBITDA EBITDA (S$’M) • FY2019 EBITDA increased YoY due to 567.1 617.1 impact from SFRS(I) 16 Leases 161.9 • 1Q2020 EBITDA declined in tandem with 136.2 lower revenues FY2018 FY2019 1Q2019 1Q2020 SERVICE EBITDA (S$’M) / MARGIN (%) 31.7% 33.7% 31.1% 28.4% • FY201
Slide 23: Financial Performance: Profit Highlights
FINANCIAL PERFORMANCE Profit Highlights PROFIT FROM OPERATIONS (S$’M) • FY2019 profit from operations would have grown $4.5M YoY excluding Cybersecurity losses 273.4 255.9 • 1Q2020 decrease was due to lower consumer revenues and sales of equipment margin; 72.1 59.3 offset by higher other income and
Slide 24: ESG Highlights
04 ESG HIGHLIGHTS <Document Classification> 24
Slide 25: Corporate Sustainability
CORPORATE SUSTAINABILITY Creating & Aligning Business Value Environment Social Governance Community Investment Fair Employment Climate Change A signatory of the Adaptation Tripartite Alliance for Renewable energy Fair Employment target Practices Employability & Connectivity Diversity & E-waste (RENE
Slide 26: Outlook & Strategies
05 OUTLOOK & STRATEGIES <Document Classification> 26
Slide 27: Outlook: Key Strategies Remain Relevant
OUTLOOK Key Strategies Remain Relevant • Dedicated to supporting all stakeholders Diversi- • Continually assess Progress Change fication market conditions closely • Exercise prudence and proactivity in navigating Agility, Resilience Ongoing Digital Horizontal: challenging landscape & Innovation Tran
Slide 28: 22nd Annual General Meeting
STARHUB LTD 22ND ANNUAL GENERAL MEETING Investor Relations: Amelia LEE | IR@StarHub.com 28