Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — H1 FY2022 Earnings Presentation
20 slides from Singapore Telecommunications's earnings presentation, Nov 11, 2021
Slide 1: H1 Financial Results
H1 Financial Results For the half year ended 30 Sep 2021 Yuen Kuan Moon, Group CEO 11 Nov 2021 1
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
Slide 3: Improved first half profit
Improved first half profit EBIT Operating revenue EBITDA (before associates’ contributions) S$7,653m S$1,929m S$572m ▲ 3% (Stable1) ▲ 1% (▼ 2%1 ) ▼ 4% (▼ 6%1 ) ▲ 5%2 ▲ 16%2 ▲ 71%2 Regional associates’ PBT Underlying net profit Net profit S$1,009m S$983m S$954m ▲ 17% (▲ 19%1 ) ▲ 105% (▲ 108%1 ) ▲ 21%
Slide 4: Revenue S$7,653m
Revenue S$M 7,653 ▲ 3% (Underlying2 ▲ 5%) S$7,653m 7,425 ▲ 3%1 (Underlying2 ▲ 5%) 3,344 Australia Consumer ▲ 2%3 3,275 ▪ Mobile services rose in Australia, reflecting positive price trajectory ▪ NCS pivot to digital services 1,857 1,863 Group Enterprise Stable ▪ Healthy data centre demand ▪ Challeng
Slide 5: EBITDA S$1,929m
EBITDA S$M 1,929 ▲ 1% (Underlying2 ▲ 16%) S$1,929m 1,903 ▲ 1%1 (Underlying2 ▲ 16%) Australia Consumer ▲ 11%3 (▲ 35%2) 884 979 ▪ Strong 16% increase in underlying2 EBITDA underpinned by: › Optus’ margin expansion from mobile re- 620 pricing & cost control Group Enterprise ▼ 1% (Stable2) 612 › Growth
Slide 6: Regional associates' pre-tax profits S$1,009m
Regional associates’ S$M pre-tax profits 1,009 ▲ 21% S$1,009m 833 472 Telkomsel ▲ 1% ▲ 21%1 467 ▪ Resilient performance by associates amid intense competition & COVID resurgence 181 Globe Stable ▪ Strong turnaround in Airtel lifted associates’ contributions, led by robust operating 182 improvements
Slide 7: Financial position
Financial position Free cash flow (S$’m) Lead in sustainable financing +4% 1,771 ▪ First telco in Asia Pacific to 1,705 53 NBN & JSS launch sustainability-linked 192 Singapore1 bond framework 309 ▪ Aims to cut greenhouse gas 359 Australia1 emissions by 42% by 20302 213 132 1,167 Associates 1,051 Hed
Slide 8: Capital management framework for sustainable dividends & growth
Capital management framework for sustainable dividends & growth FY22 highlights & guidance Medium to long term capital targets Core operations S$0.2b H1FY22 free cash flow1 Capital recycling S$2b (excludes ~A$1.9b from Optus towers divestment3) Continued focus on profitable growth Regional associate
Slide 9: Executing to our strategic reset
Executing to our strategic reset 9
Slide 10: Differentiate & win in 5G
Reinvigorate Differentiate & win in 5G the core S.E.A. Aquarium 4K Livestream 5G-powered night e-Racing Excite & win 5G take-up customers >200k 5G customers in SG Fastest 5G Mobile Operator in Singapore & Australia for H1 20211 ~1.5m 5G-capable device customers in AU Co-create enterprise use cases P
Slide 11: Reinvigorate the core: Champion digital sales & service
Reinvigorate Lead in customer experience the core Champion digital sales & service 45% 75% 29% 83% of sales of self-help of sales of self-help transactions1 transactions1 transactions1 transactions1 Unique products & differentiated services 6 The Optus Living Network Unique SubHub on-demand A platfo
Slide 12: Transform NCS into Asian B2B digital services champion
Capitalise on Transform NCS into Asian B2B digital services champion growth trends Strong digital led growth Revenue1 Digital revenue2 Digital as % of total revenue +9% +36% 48% Creating Australia’s leading cloud specialist NCS NEXT Cloud Acquired cloud Centre of Excellence capabilities (Azure, Laun
Slide 13: Rapid digitalisation fueling infrastructure demand
Capitalise on Rapid digitalisation fueling infrastructure demand growth trends Sizeable data centre (DC) business Annual revenue1 H1 growth rate1 EBITDA margin >S$250m +20% >60% Building a regional DC platform with scale & quality assets Strategic partnerships ~170MW ~70MW >70MW 30-40 MW Current DC
Slide 14: Looking ahead
Looking ahead 14
Slide 15: Progressing on our strategic reset
Progressing on our strategic reset Core operations poised for growth: ▪ Gradual re-opening of economies & resumption of cross-border travels 5G ▪ Increased 5G adoption & rollout of commercial services Favourable trends from digitalisation provide immense market opportunities Opportunities in the eme
Slide 16: Appendices
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Slide 17: Appendix A - NCS: Acquisitions bolster capabilities in cloud & data analytics
Appendix A - NCS : Acquisitions bolster capabilities in cloud & data analytics across its NEXT Innovation Triangle Accelerating growth in digital services Creating unique “best-of-cloud” cloud specialist in Australia Singapore based data Hong Kong based data Melbourne based cloud Sydney based cloud
Slide 18: Appendix B - New cable landing station & data centre in Singapore
Appendix B - New cable landing station & data centre in Singapore ▪ Integrated landing station & data centre Site Core ▪ 1.1 ha (11,196 m2) operations ▪ Adjacent site to current Tuas cable landing station ▪ Projected 30-40MW data centre capacity Capacity & green focus ▪ Focus on energy efficiency, g
Slide 19: Appendix C - Unlocked value of assets
Appendix C - Unlocked value of assets divested 70% stake in Australia Tower Network in Oct 21 Enterprise value EV/EBITDA Net proceeds ~A$2.3b 38x ~A$1.9b divested 4,000 towers to Mitratel in Sep 21 Fair value (FV) FV/tower Proceeds1 ~IDR6.2t IDR1.5b ~S$200m Picture: Optus tower 1. Singtel’s proporti
Slide 20: Singtel
Singtel
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