Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Investor Day (August 2022)
16 slides from Singapore Telecommunications's investor day presentation, Aug 31, 2022
Slide 1: Executing on our Strategic Reset
Executing on our Strategic Reset Arthur Lang, Group CFO 31 August 2022
Slide 2: Momentum building
Momentum building Constant currency Revenue growth rate EBIT growth rate1 Key trends 4% 1.2x 2% • Strong rebound in international Group (underlying2) 20% roaming in SG & AU 2% 2.7x • Growing penetration of ARPU- Optus (A$) 1.3x3 (ex. NBN migration rev) Stable accretive Optus Choice plans 3% 25% • On
Slide 3: Significant contribution from associates
Significant contribution from associates Regional associates contribute 65% of EBIT1 47% of free cash flow from associates Key trends • Lifting of Covid-related movement restrictions to drive mobile demand • Improving competitive environment with 65% 47% market consolidation 35% FY22 FY22 • Investin
Slide 4: Executing on our strategic reset
Executing on our strategic reset Reinvigorate Capitalise on Reallocate capital, Champion People the Core growth trends unlock value & Sustainability 4
Slide 5: Core positioned for growth
Reinvigorate the core Core positioned for growth Thrive in post Customer-led Lead in 5G Covid world differentiation Return of travel & foreign Grow 5G share Create unique experiences workers/ students >480k >2.3m Subs in Connected devices Singapore in Australia Support shift to hybrid work Complemen
Slide 6: Becoming a regional tech services powerhouse
Capitalise on growth trends Key milestones Next steps Specialise 3 strategic business groups Tap 5G opportunity with telco partnerships 28% of revenue from Enterprise enterprises Becoming a Regionalise Integrate Australia acquisitions regional tech Gained scale in Australia services S$300m 2,000 pow
Slide 7: Regional data centre platform
Capitalise on growth trends Key milestones Next steps Singapore Building new integrated cable landing & DC facility >60MW >S$250m ~60MW of capacity Annual revenue pipeline Thailand • Formed Thai DC JVCo Regional data • 35% share (Gulf 40%, AIS 25%) • Target to break ground for 1st centre platform Be
Slide 8: Digibank
Capitalise on growth trends Key milestones Next steps Singapore • Media launch on 31 Aug • App release in early-Sep Gearing for public launch Indonesia • Expanding team on the ground Digibank • Leverage shareholders’ ecosystem in product build Acquired Bank Fama in January 2022 • Target to launch in
Slide 9: Creating and sustaining shareholder value
Reallocate capital, unlock value Creating and sustaining shareholder value • Dividend policy: 60-80% of • Target ROE & ROIC : High underlying net profit single digit • Aligned with earnings and • Focus on growth, cash flow generation profitability and capital efficiency in existing • Reviewed regula
Slide 10: Ensuring sustainable dividends & growth
Reallocate capital, unlock value Ensuring sustainable dividends & growth Cash from core Asset recycling, operations capital partners • Operational cash flows • Unlock value from asset to fund core operations recycling & capital Maintenance & dividends partnerships to fund capex Dividends Incremental
Slide 11: 5G & growth investment needs covered for next few years
Reallocate capital, unlock value 5G & growth investment needs covered for next few years1 Annual operating cash Capital recycled support 5G & growth investments S$’b S$’b Potential cash for dividends anchored by Growth dividend policy ~2-3 initiatives Spectrum, lease & ~5 interest payments ~6 Mainte
Slide 12: Driving ROIC increase
Reallocate capital, unlock value Driving ROIC increase Relentless focus on Strategic Reset High single digit Leverage positive price momentum to grow ARPU Catch tailwinds from increasing enterprise spending on digitalisation to 5.4% grow data centre & IT services Ride macro-trends (fixed mobile conv
Slide 13: Solid balance sheet prepared for volatility
Reallocate capital, unlock value Solid balance sheet prepared for volatility Net debt (S$’b) 12.4 Net debt to Interest Net gearing EBITDA & share of associates’ PBT coverage ratio 10.0 26.2% 1.6x 15.5x Mar 22: 26.4% Mar 22: 1.7x Mar 22: 14.8% Average debt Fixed rate debt Credit ratings maturity ~6 y
Slide 14: Currency volatility contained
Currency volatility contained • ~70% of underlying NPAT are non-SGD & hence subject to translation risk Translation • Manageable currency impact due to portfolio effect : -6% to +1% in last 10 years exposure • Regular sensitivity analysis to estimate earnings impact & shareholder value Transactional
Slide 15: Championing people & sustainability
Champion people & sustainability Championing people & sustainability Elevate enterprise Embed purpose-led Purpose-led Reinvent employee leadership, develop & inclusive culture sustainability strategy value proposition inspiring leaders 15
Slide 16: Singtel
Singtel
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