Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Singtel — Investor Day (August 2023)
24 slides from Singapore Telecommunications's investor day presentation, Aug 24, 2023
Slide 1: Singtel Investor Day 2023
Singtel Investor Day 2023 24 August 2023 | The St. Regis, Singapore
Slide 2: Sustained topline improvement on the back of data revenue growth and non-telco services
Sustained topline improvement on the back of data revenue growth as well as robust contribution from non-telco services SERVICE REVENUES EBITDA NORMALIZED NIAT ▲2% ▲14% ▲5% ▲1% ▼3% ▼5% Consolidated revenues rose +2% YoY, EBITDA relatively flat YoY; EBITDA margin Solid topline growth and an expansion
Slide 3: Non-telco businesses sustained YoY growth; Mynt contributes 5.1% of Globe NIBT
Non-telco businesses sustained YoY growth, equivalent to 3.5% of conso GSR; Mynt now contributes 5.1% of Globe NIBT TOTAL 1H23 NON-TELCO REVENUES YoY Change ▲36% ▲123% ▲50% ▲66% ▲52% 2.8Bn in Revenue Php Contribution +52% YoY to GSR 1.6% 0.6% 0.8% 0.5% 3.5% Vega TOTAL 1H23 MYNT EQUITY SHARE Equity S
Slide 4: Mobile business sustained 1% growth YoY driven by increased mobile data consumption
Mobile business sustained 1% growth YoY driven by increased mobile data consumption MOBILE SUBSCRIBERS Solid topline mn 82.9 ▼5% YoY ▼2% QoQ 54.8Bn Php Voice growth despite the extended SMS macroeconomic MOBILE DATA USERS ▲1% YoY ▲2% QoQ Data pressures mn 37.5 ▼2% YoY ▲1% QoQ MOBILE DATA TRAFFIC Dat
Slide 5: Globe logged over 53.7Mn SIM registrants
Globe logged over 53.7Mn SIM registrants, which covers over 99% of its revenue generating base Globe has logged over 53.7Mn SIM registrants as of July 30, 2023 ● Equivalent to 62% of our total number of subscribers as of December 2022 ● Represents over 99% of its revenue generating subscriber base ●
Slide 6: Fiber Broadband expanded by 23% YoY, cushioning decline from legacy products
Fiber Broadband expanded by 23% YoY, cushioning the decline from legacy and fixed wireless products Fixed Fixed Total Home Php Wired Wireless Broadband 12.8Bn Subscribers (in Mn) 1.1 1.1 2.2 ▼7% YoY YoY Change in ▼4% QoQ Subs ▲4% ▼49% ▼31% YoY Change in Revs ▲10% ▼48% ▼7% Fixed Wired Wireless FIBER
Slide 7: Corporate Data revenues up 11% YoY driven by 36% growth in ICT revenues
Corporate Data revenues up 11% YoY driven by 36% YoY growth in ICT revenues 1H23 CORP DATA REVENUES 9.1Bn Php ▲11% YoY | ▲1% QoQ CORE CLOUD BUSINESS APP CYBERSECURITY DATA CENTER BIG DATA & IOT ACCOUNTS SOLUTIONS SOLUTIONS SERVICES SERVICES YoY Change in Revenues = ▲20% ▲45% ▲49% ▲15% ▲37% ICT Reven
Slide 8: Globe invested Php38Bn in CAPEX for infra development
Globe invested Php38Bn in CAPEX for infra development, lower YoY consistent with efforts to deliver positive free cash flow 6M23 542 CAPEX BREAKDOWN (in Php Bn) CAPITAL EXPENDITURES Php 37.7Bn NEW CELL 101.4 SITES BUILT 92.8 5,087 60.3 71.5 55.0 UPGRADED 51.0 MOBILE SITES 356 5G SITES INSTALLED 6M23
Slide 9: Globe PO issuances have significantly dropped in 2023
To ensure CAPEX spend goes down, Globe PO Issuances have likewise significantly dropped in 2023 Purchase Order (PO) Issuances CAPEX BREAKDOWN (in Php Bn) (in Php Bn) Over Php373Bn or S$7.0Bn POs issued 373 from 2019 - 2022 from aggressive and High historical opportunistic network builds PO issuances
Slide 10: Ookla, Brand Finance recognize Globe's commitment to reliable connectivity
Ookla, Brand Finance recognize Globe’s commitment to delivering only the best and most reliable connectivity to all its customers Based on analysis by Ookla® of Globe has been named the Speedtest Intelligence®, Globe Philippines' strongest brand by was deemed the Most Reliable Brand Finance, the wor
Slide 11: Ubiquitous and Relevant
Ubiquitous and Relevant Driving digitalization of the financial ecosystem in the country An essential part of the Largest digital financial Most trusted & loved brand Filipinos’ daily lives ecosystem in the Philippines June Average Daily Active Users, data.ai 6M Clear leader among PH Firms1 Merchant
Slide 12: Unlocking Financial Services for Filipinos
Unlocking Financial Services for Filipinos Empowering Filipinos to build a Better & Brighter Future Building Lives Providing Fostering Trust through Lending Peace of Mind through Wealth Management GCredit, GLoans GInsure GSave GFunds and GGives 9M 5M 3M 11M Registered Registered LTD Policies Sold ▲
Slide 13: Sustaining Trust of Filipinos
Sustaining Trust of Filipinos through innovation, education and collaboration Bringing Trust and Security to the Forefront Strengthened Collaboration 4M Double Safe with Government Agencies Heightened alert against cybercrimes, Fraud accounts Providing another layer and going after fraudsters and sc
Slide 14: Innovating to Provide Greater Access
Innovating to Provide Greater Access For Democratizing Financial Services Local Stocks GCrypto + Trading NFTs For Bringing Families Together GCash Global Regional Regional Overseas Pay Pera Outlets BIllers For Levelling Up Customer Experience Double Safe 14
Slide 15: STT GDC Philippines broke ground on STT Data Centre campus
STT GDC Philippines broke ground on STT Data Centre campus with designed IT capacity of 124 MW once fully built out STT FAIRVIEW Ground Breaking last May 2023 • To span over 83,000sqm & will be rolled out in four phases • Strategically located in one of the largest cities in Metro Manila • Has a des
Slide 16: 917Ventures expanding ecosystem with 14 portfolio companies
917Ventures continue to build the group’s future through an expanding ecosystem with 14 companies now in its portfolio Spun-off 3 new Notable highlights of portfolio companies some of our current portfolio Fast and accessible pet Broken 1,400 merchants care and pet lifestyle acquired/served this yea
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS Xx
Slide 18: Topline expansion driven by data; Core NIAT of Php10Bn down YoY
Topline expansion driven by data; Core NIAT of Php10Bn down YoY due to higher OPEX and lower non-operating income Sequential 1H 2022 2H 2022 1H 2023 %Change 1Q 2023 2Q 2023 QoQ % Gross Service Revenues 78,880 79,099 80,401 +2% 39,982 40,419 +1% OPEX and Subsidy1 (38,334) (40,553) (39,908) -2% (19,45
Slide 19: EBITDA margin still well within guidance for the year
EBITDA margin still well within guidance for the year as network cost increases were partly offset by strong topline performance YoY (in Php Mn) QoQ (in Php Mn) 19
Slide 20: Globe achieved first closing of 115 towers with Unity for Php1.4Bn
Globe achieved the first closing of 115 towers with Unity for Php1.4Bn last July PhilTower MIDC Frontier Unity Total February April 1,306 towers in 2,180 towers in Luzon; Portfolio Luzon 2,223 guyed towers 1,350 Towers in Visayas and Mindanao 447 towers in Luzon 7,509 nationwide Closings to Date 1,0
Slide 21: 3Q23 Dividends
Globe BOD approved 3Q23 dividend of Php25.00/sh, proof of commitment to a sustainable dividend policy Globe Telecom distributes cash 3Q23 DIVIDENDS dividends to it shareholders at 25.00 the rate of 60% to 75% of prior PhP/ sh year’s core net income, and is committed to a sustainable RECORD DATE: 08/
Slide 22: Key ratios still healthy and in-line with peers
Key ratios still healthy and in-line with peers despite the challenging environment; comfortably within bank covenants 2Q 2023 FY 2022 Cash (in Php Bn) 25.4 18.0 Gross Debt (in Php Bn) 250.0 233.2 Gross Debt to Equity (Max of 3:1) 1.57x 1.53x Net Debt* to Equity 1.41x 1.43x Gross Debt to EBITDA (Max
Slide 23: Revised 2023 Consolidated Outlook
Revised 2023 Consolidated Outlook; tempered topline but significant steps taken to achieve sustainable positive cash flows sooner SERVICE REVENUES EBITDA MARGINS CAPEX Mid to Low single digit growth ~50% USD 1.3B OTHER CONSIDERATIONS ● Tower turnover and sale proceeds spread out over the year ● SIM
Slide 24: Thank you!
Thank you! Xx