Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Investor Day (September 2002)
26 slides from Singapore Telecommunications's investor day presentation, Sep 17, 2002
Slide 1: Paul O'Sullivan, Chief Operating Officer
Paul O’Sullivan Chief Operating Officer 17 September 2002
Slide 2: 'yes' OPTUS
Slide 3: Optus' role within the SingTel Group
Optus’ role within the SingTel Group
Slide 4: Optus has transformed SingTel's growth profile
Optus has transformed SingTel’s growth profile Majority of SingTel group revenues Optus’ contribution is now from mobile and data* significant** 54 54 51% of total Group revenues Data & mobile revenue as 72% of Group mobile revenues 36 % of total** 32 32 30 30 36% of Group data revenues larg
Slide 5: Our role in the Group is to deliver growth and margin improvement
Our role in the Group is to deliver growth and margin improvement SingTel Group Asia’s leading communications company strategic goal SingTel group Blue chip growth Medium term - double digit financial goal investment growth in NPAT pre-goodwill* Free cash flow of at least SingTel Cashflow engine $1b
Slide 6: The 'Challenger' approach to the Australian marketplace
The ‘Challenger’ approach to the Australian marketplace
Slide 7: We are the only scale player to challenge the incumbent in Australia
We are the only scale player to challenge the incumbent in Australia… Darwin B1 B3 A3 C Satellite Satellite Satellite Satellite Cairns APCN/Jasurau s Katherine Broom Townsville e Adels Grove Port Hedland NT Alice Mt Isa Emerald Rockhampton Springs QLD Yulara WA Geraldton Brisbane PR SA W SMW 3 Kalgo
Slide 8: The 'Challenger' approach underpins our success
The ‘Challenger’ approach underpins our success Successful ‘challenger ‘ initiatives: Leveraging size to expedite technology to customers, and with better satisfaction Behavioural marketing: providing customers a new and better way to use technology Demonstrating a better understanding of cust
Slide 9: Market strength focus on delivering returns
Market strength focus on delivering returns Optus’ investment criteria • Invest only where scale & • Maximise yield in segments returns are attainable within 3-4 where we have a strong presence years • Maintain cash positive presence • Exit businesses which do not in attractive segments with fit thi
Slide 10: Trading division update (ex mobile)
Trading division update (ex mobile)
Slide 11: We re-aligned Optus Business to focus on corporate and wholesale segments
We re-aligned Optus Business to focus on corporate and wholesale segments….. Growing share of market segments Optus Business Leveraging combined strength of the SingTel Group Growing share of larger accounts Optus Wholesale Managing regional satellite operations for the SingTel Group
Slide 12: Optus Business revenue: early corporate successes in a tough market
…with early corporate successes in a tough market Focus on corporate Corporate data & market succeeding 30% IP grows 19% A$222m More buildings Optus Business revenue 15% connected by DSL Market consolidation drives decline in 32% Wholesale revenues Q1 FY02 Q1 FY03 All comparisons are Q1FY03 vs Q1FY0
Slide 13: Operational trends in Consumer & Multimedia remain positive
Operational trends in Consumer & Multimedia remain positive Strong revenue growth Broadband 12% customers up 22% Optus Consumer revenue A$289m Broadband ARPU up $83 Dial-up customers up 34% Q1 FY02 Q1 FY03 All comparisons are Q1FY03 vs Q1FY02
Slide 14: Optus: delivering what we promised you
Optus: delivering what we promised you What we said What we delivered Full year guidance we would do Q1 FY03 • Maintain challenger • Maintain growth culture & benefit from • Revenue growth of 11% momentum consolidation • Operational EBITDA • Retain strong cost • Expand margins - margin increase to 2
Slide 15: Slide 15
Slide 16: Optus mobile: Key earnings driver for SingTel Group
Optus mobile: Key earnings driver for SingTel Group
Slide 17: Optus mobile: a key earnings driver
Optus mobile: a key earnings driver Optus mobile 25% of 39% of proportionate Group Q1 SingTel Group revenues* mobile subscribers* Optus Optus mobile mobile Optus mobile ex S$607m ile e ob ile 4.266m subs ob nu ile m ob O nat oup m ve us m us re ex tio l gr pt e pt p O rou bs or Te su op g lg pr Sin
Slide 18: Australia: an attractive developed mobile market
Australia: an attractive developed mobile market Propensity to spend Penetration at the lower on telecoms end of developed markets Telecoms spending as % of GDP (2001) 5 100 4.5 90 Penetration (%) 3.9% 4 80 3.5 70 64% 3 60 2.5 50 2 40 1.5 30 1 20 0.5 10 0 0 Switzerland Australia Switzerland Australi
Slide 19: Our approach continues to deliver results
Our approach continues to deliver results Growth Costs Subscriber Revenue growth 15% 15% acquisition costs Market share Churn under 19% 34% maintained control post MNP Customers up 13% Capex:revenue <15% All comparisons Q1FY03 vs Q1FY02 except subscriber acquisition costs which caompare Q1FY03 to FY
Slide 20: Committed to delivering profitable future growth
Committed to delivering profitable future growth
Slide 21: Future growth: gain share in business mobile
Future growth: gain share in business mobile hTarget valuable segments with differentiated products & services hUse recognised customer service strength for superior customer management hEnhance channel & distribution efficiencies Progress • Business revenues increasing* 22% • Major account wins Bri
Slide 22: Future growth: grow ARPU of existing customers
Future growth: grow ARPU of existing customers • Leverage FutureLab and joint development with SingTel •Excite customers with communication, information and entertainment services Progress • ARPU increases 2% 18% Post-paid Pre-paid • Mobile data as % of revenue 9% • Picture messaging launched Aug 02
Slide 23: Future growth: attract new to market customers at the right cost
Future growth: attract new to market customers at the right cost • Capitalise on our leadership in consumer post-paid and pre-paid • Maximise profit by careful management of cost to acquire and serve Progress Market share maintained 34% Subscriber acquisition costs* 15% *Blended per customer Q1FY03
Slide 24: Future growth: retain flexibility in cost base
Future growth: retain flexibility in cost base The proof is in the margin • Maintain economies of scale to compete with the incumbent 33% EBITDA margin • Retain alternative cost base 29% model to compete with sub-scale operators FY 2001 FY2002
Slide 25: Optus mobile: positioned for future growth
Optus mobile: positioned for future growth Australian Attractive operating environment mobile market Consistent track record of delivering results Optus mobile Demonstrated progress on strategies for future growth
Slide 26: 'yes' OPTUS
Singapore Telecommunications — Investor Day (September 2002) on 6ix