Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Singtel — Investor Day (August 2023)
12 slides from Singapore Telecommunications's investor day presentation, Aug 24, 2023
Slide 1: Capital Management and Value Creation for Growth
Singtel Investor Day 2023 Capital Management and Value Creation for Growth Arthur Lang, Group CFO 24 August 2023
Slide 2: Key business units
Key business units Core business Growth engines Strategic portfolio of Associates Digital InfraCo 2
Slide 3: On track to creating more shareholder value
On track to creating more shareholder value ROIC needs to Growth engines Value creation keep improving a key focus opportunities still significant 3
Slide 4: Low double digit ROIC by FY26
Low double digit ROIC1 by FY26 Target Group ROIC Increasing efficiencies for Optus & Singtel SG Low double digit Sale/closure of loss-making businesses 8%1 Reduced capital intensity Airtel improvement FY23 FY26F 1. Excluding Optus goodwill. 4
Slide 5: Key drivers of ROIC
Key drivers of ROIC Key drivers Regional Capture fixed opportunity Associates Focus on market repair & cost management Accelerate 5G monetisation Singtel ROIC > Singapore Capitalise on enterprise digital transformation WACC Integration of consumer & enterprise to drive growth & cost synerg
Slide 6: >20% of EBITDA from growth engines by FY28
>20% of EBITDA from growth engines by FY28 Growth engines1 % of Group EBITDA Drivers FY23A FY28F Growth through organic potential & Regional inorganic transactions Data Centre 12% >20% Funded through asset recycling & third-party capital Ability to scale 1. Includes NCS & Regional Data Centre. 6
Slide 7: Leveraging third-party capital across our businesses
Leveraging third-party capital across our businesses Illuminate value Co-investor to Provide industry of assets alleviate funding expertise & networks needs 7
Slide 8: Highly valuable stakes in our associates
Highly valuable stakes in our associates Strategic ? Value of stake1 Non-strategic ~S$49B africa 1. Thomson Reuters, Bloomberg as of 31 July 2023 (Internal estimation for Telkomsel). 8
Slide 9: Successful capital management framework with $3B cash reserves
Successful capital management framework with $3B cash reserves1 (after paying $4B of dividends) Pot 1: Supporting healthy shareholder returns Pot 2: Investments funded through capital recycling S$B S$B Ordinary dividends ~3 ~2 Growth initiatives declared Spectrum, lease ~2 & interest ~1 5G capex ~10
Slide 10: Robust balance sheet with ~S$4B debt headroom
Robust balance sheet with ~S$4B debt headroom1 after successful capital recycling initiatives Net debt to EBITDA Net debt Interest cover Fixed rate debt & assoc PBT S$B -4 12 2.2X 16.8X 90% 81% 14.3X 8 1.4X Mar-21 Mar-23 Mar-21 Mar-23 Mar-21 Mar-23 Mar-21 Mar-23 1. Based on S&P Net Debt/EBITDA ratio
Slide 11: Key focus areas
Key focus areas Drive opex synergies Measured 5G rollout Expand funding Develop pipeline of from consumer & in Australia to keep sources to grow assets for enterprise business pace with demand dividends monetisation integration in Singtel & use cases sustainably & support opportunities SG & Optus pr
Slide 12: Singtel
Singtel