Singapore Telecommunications Limited · SGX:Z74

Singapore Telecommunications — H1 FY2025 Earnings Presentation

14 slides from Singapore Telecommunications's earnings presentation, Nov 13, 2024

  1. Slide 1: Financial Results

    Financial Results Yuen Kuan Moon, Group CEO For the half year ended 30 Sep 2024 13 November 2024 1

  2. Slide 2: Forward looking statement – Important note

    Forward looking statement – 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 conta

  3. Slide 3: H1FY25: Singtel28 bearing fruit

    H1FY25: Singtel28 bearing fruit Singtel28 bearing Lift business fruit performance Sustained value realisation Strong EBIT growth Cost optimisation Scaling up SG Underlying NPAT +58% +40% -3% -3% Strong demand +6% (+9%1) for DC capacity in opex EBIT (ex assoc) +27% Singtel28 bearing Active capital fr

  4. Slide 4: H1FY25 business highlights

    H1FY25 business highlights Growth engines SG Champion people & Finding new growth Positioned for growth Scaling up sustainability +3.4% +2ppt Multiple 5G slicing wins growth in postpaid ARPU improvement in NCS Singtel Charity Golf raised EBITDA margin to 11.8% a record S$1.5M Telco APIs (Singverify)

  5. Slide 5: H1FY25 financial highlights

    H1FY25 financial highlights EBIT Operating revenue EBITDA (ex assoc contribution) S$6.99B S$1.95B S$0.74B Stable (Stable1) ▲ 9% (▲ 9%1) ▲ 27% (▲ 27%1) Ex Trustwave1 Stable Ex Trustwave1 ▲ 6% Ex Trustwave1 ▲ 16% Regional associates’ Underlying net profit Net profit PAT (basis for core dividend payout

  6. Slide 6: Positive revenue trend

    Positive revenue trend Revenue (S$M) 7,028 H1FY25 revenue growth 6,992 77 68 138 Sustained mobile service growth in SG & AU +2% Gov+ led growth at NCS 6,928 6,813 Nxera up mainly on reservation fee & utility pass-through -4 H1FY24 H1FY25 Satellite project-based deployment revenue Trustwave Impact of

  7. Slide 7: Strong Optus performance

    Strong Optus performance SG Revenue EBIT Revenue EBIT A$4,022M A$223M S$1,877M S$439M Stable YoY ▲ 58% Stable Stable  Mobile service revenue increased 4% on postpaid  Mobile service revenue up 4% on roaming & IoT, repricing mitigating legacy decline  EBITDA up 7% & EBIT rose 58%  EBITDA up 3% &

  8. Slide 8: Robust NCS growth

    Robust NCS growth Digital InfraCo Revenue EBIT Revenue EBIT S$1,431M S$130M S$219M S$39M YoY ▲ 3% YoY ▲ 40% YoY ▲ 8% Stable  Revenue growth led by digitalisation demand in  Revenue growth driven by Nxera’s non-recurring Gov+ customer reservation fee & utility pass-through  Improved margins due to

  9. Slide 9: Regional associates' PAT impacted by currency headwinds

    Regional associates’ PAT impacted by currency headwinds S$34M adverse impact from Regional associates’ PAT S$817M stronger SGD S$M ▼ 4% (Stable1) 817 ▼ 4% (Stable1) 850  Improving market dynamics in TH/PH/IN 276 ▼ 18% (▼ 13%1) Telkomsel 336  Telkomsel: Impacted by intense mobile data competition 2

  10. Slide 10: Strong financial position

    Strong financial position Net debt to EBITDA Highlights Net debt Interest rate cover Fixed rate debt & assoc PBT  Solid financial position S$9.7B 1.6x 19.1x 88% o Cash balance of S$2.7B2 (Mar 24: S$7.8B) (Mar 24: 1.3x) (Mar 24: 17.8x) (Mar 24: 88%) o Debt is largely hedged  Net debt increased with

  11. Slide 11: Progressively increasing dividends; yield ~5%

    Progressively increasing dividends; yield ~5%1 Ordinary Dividends declared (S cts) Ordinary dividend to be paid on 9 Dec 24 Strategic reset Singtel28 1.9cts 2nd tranche of FY24 VRD 15.0 VRD 5.6cts FY25 interim core 3.8 1.4cts FY25 interim VRD 9.3 9.9 Core 7.5 6.0 (▲35%) 8.9cts 4.8 5.3 2.4 VRD 1.4 In

  12. Slide 12: Outlook

    Outlook FY25 outlook H1FY25 EBIT growth rate High single digit to Low double digits1 ▲ 27% (Ex assoc contributions) low double digits1 Cost savings2 S$0.2B1 On track (Singtel SG & Optus) Regional Associates’ S$1.1B Met; S$1.1B in H1 dividend Value realisation 3-6cts/share 1.4cts (Interim) dividend 1

  13. Slide 13: H2 focus

    H2 focus Drive EBIT improvement  Enterprise growth in SG & AU  Flow through from mobile price-ups in AU  Scale growth engines  Focus on leaner cost structures Support regional associates  Capture FBB & enterprise opportunity Focus on active capital management | 1313

  14. Slide 14: OF COMMUNICATIONS

    OF COMMUNICATIONS

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