Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — FY2010 Earnings Presentation
33 slides from Singapore Telecommunications's earnings presentation, May 13, 2010
Slide 1: Financial results presentation
Financial results presentation Q4 and Financial year ended 31 March 2010 13 May 2010
Slide 2: Forward looking statements - important note
Forward looking statements - 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 cont
Slide 3: Asia's Leading Communications Company
Asia’s Leading Communications Company Chua Sock Koong Group CEO
Slide 4: Group Q4 FY10: strong performance
Group Q4 FY10: strong performance Group performance Revenue S$4,471m Underlying NPAT S$1,022m ¾up 25% ¾up 7% Singapore Revenue S$1,640m EBITDA1 S$579m ¾up 13% ¾stable Optus Revenue2 A$2,232m EBITDA2 A$610m ¾up 6% ¾up 5% Regional Mobile Customers3 293m Earnings4 S$546m ¾up 17% ¾up 12% 1. Excludes Gro
Slide 5: Shareholder payout (S$bn)
Total dividends increase 14% Total cash distribution 14.2¢ 10-year cumulative payout1 S$24bn per share • 74% of NPAT Proposed final dividend 8.0¢ Shareholder payout (S$bn)2 • payable Aug 2010 2.3 3.0 1.5 Interim dividend 6.2¢ • paid Jan 2010 1.2 0.8 1.3 1.1 1.1 1.1 1.7 1.1 1.3 0.9 1.0 1.0 0.9 0.9 1.
Slide 6: Group Q4 FY10 highlights
Group Q4 FY10 highlights Proportionate EBITDA1 Successfully completed 75% Group outside Singapore S$600m bond issue mio TV customer reached2 200k Others 1% Optus Singapore Extended lead in international IP-VPN services 3 34% 39% Highest mobile net adds in 5 years 254k Optus Regional 25% Increased da
Slide 7: Q4 FY10: solid revenue growth
Q4 FY10: solid revenue growth 3 months 3 months YoY % 3 months Sequential S$m to Mar 10 to Mar 09 change to Dec 09 % change Operating revenue 4,471 3,566 25.4% 4,450 0.5% Operational EBITDA 1,336 1,150 16.2% 1,233 8.4% - margin 29.9% 32.2% 27.7% Associates (ex exceptionals) 574 514 11.8% 592 (3.1%)
Slide 8: Group FY10: strong execution
Group FY10: strong execution 12 months to 12 months to YoY S$m Mar 10 Mar 09 % change Operating revenue 16,871 14,934 13.0% Operational EBITDA 4,847 4,431 9.4% - margin 28.7% 29.7% Associates (ex exceptionals) 2,420 2,031 19.2% EBITDA1 7,257 6,482 11.9% Net profit 3,907 3,448 13.3% Exclude: Exceptio
Slide 9: Foreign exchange movements
Foreign exchange movements Currency appreciation / Exchange rate1 (depreciation) against S$ Currency S$ 1.00 YoY QoQ 2 1 AUD S$ 1.2686 26.3% - INR 32.7 0.9% 2.1% IDR 6,579 14.5% 3.3% PHP 32.8 (3.8%) 2.4% THB 23.4 - 2.1% BDT 49.3 (8.4%) 0.4% PKR 60.2 (14.4%) (0.5%) 1. Average exchange rates for the q
Slide 10: Trends in constant currency terms
Trends in constant currency terms1 4Q FY10 YoY % change YoY % change 3 months to Mar 10 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,471 25.4% 8.9% Group underlying NPAT 1,022 6.6% (2.0%) Optus revenue 2,831 34.0% 6.1% Associates earnings2 574 11.8% 5.6% FY10 YoY % change YoY % cha
Slide 11: Singapore
Singapore
Slide 12: Singapore FY10: exceeds guidance
Singapore FY10: exceeds guidance FY10 guidance FY10 outcome • Revenue to grow single-digit level Revenue S$5,995m 8% 9 • EBITDA to grow low single-digit level EBITDA S$2,293m 6% 9 • EBITDA margin at around 36 – 38% SG biz margin 38.2% 9 • Capex to be below S$800m Capex : revenue 11% S$652m 9 • Free
Slide 13: Singapore: strong growth in IT&E and mobile
Singapore: strong growth in IT&E and mobile Revenue YoY Q4 FY10 Highlights (S$ m) Change Total revenue 1,640 13% • strong growth in IT & Engineering and Mobile • growth in postpaid customers and improved Mobile 405 10% postpaid ARPU Data & Internet 400 2% • cautious corporate telecom spending • reve
Slide 14: Data & Mobile: leading & shaping the market
Data & Mobile: leading & shaping the market Corporate data services S$294m Mobile revenue S$405m revenue Postpaid ARPU at S$86 • up 6% excluding data-only SIMs 4% +3% Wireless BB subs1 505k 294 285 45 Others Data services revenue (S$m) Prepaid customer 45 101k de-activation2 40 53 3.10 3.18 3.12 ILC
Slide 15: Delivering integrated ICT & multimedia services
Delivering integrated ICT & multimedia services Redefining entertainment IT & Engineering revenue1 S$463m & communications Fibre rollout revenue S$81m mio TV customers2 191k ¾ up 36,000 NCS Group revenue S$382m ¾ up 15% mio Plan & mio Home 187k customers3 Infrastructure ¾ up 18,000 services 69% 31%
Slide 16: Singapore EBITDA stable
Singapore EBITDA stable S’pore Biz EBITDA stable Operating expenses 20% • EBITDA margin 35.3% Cost of sales SG Biz Revenue SG Biz EBITDA 47% • fibre-rollout and higher S$1.6b S$579m handset sales Selling & Admin Telco Telco • higher mobile subscriber 72% 88% IT&E IT&E acquisition & retention costs 2
Slide 17: Optus
Optus
Slide 18: Optus FY10: in line with guidance
Optus FY10: in line with guidance FY10 Guidance FY10 Outcomes • Revenue to grow at single digit level Revenue A$8,949m 8% 9 • EBITDA to grow at low single-digit level EBITDA A$2,153m 4% 9 • Capital expenditure to be approximately A$1.1 billion Capex: revenue 12% A$1.0b 9 • Free cash flow to be stabl
Slide 19: Optus: strong growth led by mobile
Optus: strong growth led by mobile Revenue YoY Q4 FY10 Highlights A$m change Total revenue 2,232 6% • strong performance in mobile • double digit service revenue growth Mobile 1,398 10% • highest quarterly customer net adds in 5 years Business & • higher data & IP and satellite revenues Wholesale 49
Slide 20: Mobile: strengthened market position
Mobile: strengthened market position Mobile service revenue Strong customer growth 254k • Six quarters of double digit 11% • Highest quarterly net adds growth in 5 years Service Revenue Net Adds Wireless broadband cust1 907k (A$m) ('000) 1,089 1,148 1,181 1,184 • net adds of 108k 1,063 1,068 1,200 9
Slide 21: Business & Wholesale Fixed: strong satellite revenue growth
Business & Wholesale Fixed: strong satellite revenue growth Business: higher data & IP revenue Wholesale: higher satellite revenue 176 177 Wholesale Fixed revenue (A$m) Business Fixed revenue (A$m) 313 314 37 52 Voice 5% 29% 102 101 Voice 1% 66 64 Data & IP 3% 118 124 Data & IP 4% ICT & 73 Satellite
Slide 22: Consumer & SMB Fixed: on-net growth drives margin expansion
Consumer & SMB Fixed: on-net growth drives margin expansion Broadband drives on-net growth On-net yield management 1m Consumer & SMB Fixed revenue (A$m) 348 346 18% 16% 70 16% 15% 15% 15% 15% 65 14% EBITDA m argin (%) EBITDA (A$ m ) 12% 57 60 259 276 On-net 6% 10% 54 55 8% 50 51 51 6% 50 39% 4% 43 2
Slide 23: Operating costs: investing in customer growth
Operating costs: investing in customer growth Mobile postpaid customer growth Operating expenses 7% drives increase in selling costs • Opex excl selling up 3% Net adds Operating Costs Selling costs1 ('000) (A$m) 10% 1,030 1,066 •increased customer acquisition/ 400 928 1,000 1,010 945 1,200 829 860 r
Slide 24: Associates and joint ventures
Associates and joint ventures
Slide 25: Regional Mobile: world's fastest growing mobile markets
Regional Mobile: world’s fastest growing mobile markets PBTL 36% Mobile 127.6 penetration (%) 14% 103% Mobile 82.0 subscribers (m) 80%1 75% 7% 7% 59% Growth in 50% 2% 6% subscribers (%) 29.5 33% 23.9 16.3 1.9 Effective 32.0% 35.0% 47.3% 21.3% 45.0% 30.0% stake (%) Market #1 #1 #2 #1 #5 #4 position M
Slide 26: Strong growth in Regional Mobile Associates earnings
Strong growth in Regional Mobile Associates earnings PBT1 % Change % Change Q4 FY10 Highlights (S$ m) (S$) (local curr) Regional • growth boosted by stronger Indonesian rupiah, 546 12% NA Mobile and fair value gains • strong growth in customers and minutes of use Bharti 245 9% 8% • price pressure mo
Slide 27: Financial position & Outlook
Financial position & Outlook
Slide 28: Strong financial position
Strong financial position Generating strong free cash flow1 Strong balance sheet Net debt S$6.3bn 3,406 3,245 Net gearing 21% Group free cashflow (S$m) Singapore S$59m 1,290 1,231 Net debt:EBITDA 0.9x Optus S$208m 1,050 1,258 EBITDA:net interest 24x expense 963 S$105m 858 Assoc div S&P’s Moody’s FY2
Slide 29: FY11: Outlook and assumptions
FY11 : Outlook and assumptions Singapore • 7 to 9% GDP growth Australia • 3.5% GDP growth1 Regional mobile • 6 to 8% GDP growth in India & Indonesia 1. For the fiscal year ending Jun 2011 29
Slide 30: Singapore: leading and shaping the market
Singapore: leading and shaping the market FY11 Guidance Grow at mid single-digit level Revenue • higher mobile, IT & Engineering and mio TV revenue Decline within low to mid single-digit range EBITDA • EBITDA margin to decline to around 35% Around S$830m Capex • includes S$170m for ST-2 satellite Fr
Slide 31: Optus: building on positive momentum
Optus: building on positive momentum FY11 Guidance Revenue Grow at mid single-digit levels & EBITDA Capex Around A$1.2b Free cash flow Above A$1.0b 31
Slide 32: Associates outlook
Associates outlook FY11 Guidance Earnings to be diluted by acquisition financing costs for Bharti Zain and investment in 3G spectrum Operating revenue to grow at high single-digit level Telkomsel EBITDA margin to decline slightly Dividends from Regional Mobile Ordinary dividends to increase Associat
Slide 33: Asia's Leading Communications Company
Asia’s Leading SingTel Communications Company www.singtel.com
Singapore Telecommunications — FY2010 Earnings Presentation on 6ix