Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Q4 FY2011 Earnings Presentation
34 slides from Singapore Telecommunications's earnings presentation, May 12, 2011
Slide 1: Financial results presentation Q4 and Financial year ended 31 March 2011
Financial results presentation Q4 and Financial year ended 31 March 2011 12 May 2011
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, periods compared to the results for previous periods. periods Some of the
Slide 3: Asia's Leading Communications Company
Asia s Leading Asia’s Communications Company Chua Sock Koong Group CEO
Slide 4: Resilient performance
Resilient performance Group performance Revenue S$4,643m Net profit S$992m ¾up 4% ¾down 2% Underlying net profit excl. Bharti Africa S$1,036m ¾up 1% Singapore Revenue S$1,661m EBITDA1 S$551m ¾up 1% ¾down 5% Optus Revenue2 A$2,322m EBITDA2 A$652m ¾up 4% ¾up 7% Regional Mobile Customers3 403m Earnings
Slide 5: FY11: Special dividend brings total payout to S$4.1billion
FY11: Special dividend brings total payout p y to S$4.1billion Record dividend per share 25.8¢ 10-year cumulative payout1 : S$26b • 76% of NPAT ayout (S$bn) 1.6 10.0¢ Special 2.3 3.0 1.5 areholder pa 9.0¢ Final 0.8 1.3 1.4 ordinary 1.1 1.1 1.1 IInterim t i Sha 17 1.7 66% payout ratio2 1.0 1.0 1.1 1.
Slide 6: Group Q4 FY11 highlights
Group Q4 FY11 highlights Proportionate EBITDA1 Successfully completed US$600m & 78% Group outside Singapore HK$620m bond issues Others 1% Record postpaid customer 51K additions Optus Singapore Expanded range of 34% services on fibre 43% ¾ ESC: gaming on- demand ¾ QuickBooks Q ickBooks Online Regiona
Slide 7: Q4 FY11: Strong contribution from Australia
Q4 FY11: Strong contribution from Australia 3 months 3 months YoY % 3 months Sequential S$m to Mar 11 to Mar 10 change to Dec 10 % change Operating revenue 4,643 4,471 3.8% 4,704 (1.3%) Operational EBITDA 1,392 1,336 4.2% 1,284 8.4% - margin 30.0% 29.9% 27.3% Associates pre-tax earnings1 514 574 (10
Slide 8: FY11: Strong growth in revenue and Op EBITDA
FY11: Strong growth in revenue and Op EBITDA 12 months to 12 months to YoY % S$m Mar 11 Mar 10 change Operating revenue 18,071 16,871 7.1% Operational EBITDA 5,119 4,847 5.6% - margin 28.3% 28.7% Associates pre-tax earnings1 2 150 2,150 2 420 2,420 (11 1%) (11.1%) EBITDA2 7,260 7,257 - Depreciation
Slide 9: Foreign exchange movements
Foreign exchange movements Currency appreciation / Exchange rate1 (depreciation) against S$ Currency S$ $ 1.00 YoY QoQ 2 1 AUD S$ 1.2838 1.2% (0.3%) INR 35.5 (8.6%) (2.9%) IDR 6,993 (6.3%) (1.4%) PHP 34.2 (4.3%) (2.4%) THB 23.9 (2.1%) (3.9%) BDT 55.6 (12.8%) (2.8%) PKR 67 1 67.1 (11 5%) (11.5%) (2 0
Slide 10: Trends in constant currency terms
Trends in constant currency terms1 4Q FY11 YoY % change YoY % change 3 months to Mar 11 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,643 3.8% 3.1% Group underlying NPAT 998 (2.4%) (0.5%) Opt s revenue Optus re en e 2 982 2,982 5 3% 5.3% 4 1% 4.1% Associates earnings2 514 (10.4%) (5
Slide 11: Singapore
Singapore
Slide 12: Singapore FY11: exceeded guidance
Singapore FY11: exceeded guidance FY11 guidance FY11 outcome • Revenue to grow mid single-digit level Revenue S$6,401m 9 • EBITDA d decline li within ithi llow tto mid id single-digit i l di it range EBITDA S$2,253m 2% 9 • EBITDA margin to decline to around 35% SG biz margin 35 2% 35.2% 9 • Capex ar
Slide 13: Singapore: Mobile and Data driving growth
Singapore: Mobile and Data driving growth Revenue YoY Q4 FY11 Highlights (S$ m) Change Total revenue 1,661 • up 3% excluding fibre rollout • strong g postpaid p p customer growth g and take-up p Mobile 455 of higher rate plans • growth in Managed Services offsets lower Data & Internet 415 Internatio
Slide 14: Mobile: record postpaid customer growth
Mobile: record postpaid customer growth Strong postpaid customer Strong revenue growth growth g Mobile customers (‘m) Mobile Postpaid ARPU at S$87 revenue (S$m) 1% • up 3% excluding data data-only only SIMs 4.0 465 500 455 432 437 419 417 450 3.5 394 380 400 Wireless BB subs up 72%1 869k 3.0 51k 350
Slide 15: Expanding ICT services
Expanding ICT services Data & Internet revenue S$415m NCS Group revenue S$379m • stable Revenue by geography 4% 415 400 12% Internet Overseas enue (S$m ) 107 111 Singapore 88% related 455 49 Others Data & Internet reve 32 ILC 40 Revenue by lines of business Managed 94 110 Services Business 29% solut
Slide 16: Leading the digital home revolution
Leading the digital home revolution mio TV revenue S$23m Strengthen presence in homes mio TV customers1 Customers on bundles: 292k 241k ¾ up 28,000 mio Plan & mio Home ¾ up 17,000 17 000 350 25 300 20 250 Innovative fibre services 15 200 150 292 264 10 eXcite TV: web video 245 220 search h engine i
Slide 17: Investing in strategic initiatives
Investing in strategic initiatives Singapore Biz EBITDA Operating expenses S$551m 5% • down 5% Selling & Admin • higher mio TV content & 17% Telco IT & Engg service costs EBITDA EBITDA • flat mobile acquisition & S$469m S$82m retention costs Cost of sales 5% Telco EBITDA • lower costs for f fibre fi
Slide 18: Optus
Optus
Slide 19: Optus FY11: exceeded guidance
Optus FY11: exceeded guidance FY11 Guidance FY11 Outcomes • Revenue to grow at mid single-digit level Revenue A$9,284m 9 • EBITDA to grow at mid single-digit level EBITDA A$2,334m 9 • Capital expenditure to be approximately A$1.2 billion Capex: revenue 11% A$1.0b 9 • Free cash flow to be above A$1.0
Slide 20: Optus: growth led by mobile
Optus: growth led by mobile Revenue YoY Q4 FY11 Highlights A$m change Total revenue 2,322 4% 4% • service revenue growth driven by enlarged Mobile 1,494 7% postpaid customer base Business & Wholesale 500 2% • higher ICT and Managed Services revenue Fixed Consumer 330 5% • ongoing exit of marginal re
Slide 21: Mobile: strong revenue and EBITDA growth
Mobile: strong revenue and EBITDA growth Service revenue growth Growing customer base > 9m Service Net Adds Revenue (‘000) (A$m) Wireless broadband customers 450 $1,261 1,350 • up 41% 1.3m $1,184 1,200 300 Postpaid ARPU A$68 1,050 • up 2% excluding wireless BB 148 150 139 145 900 Total data % of ARP
Slide 22: Business & Wholesale Fixed: EBITDA growth with higher on-net mix
Business & Wholesale Fixed: EBITDA growth with higher on-net mix Business: growth in ICT & Managed Wholesale: higher Data & IP and Services Satellite revenues +1% +2% 321 177 178 $m) m) d revenue (A$m 314 ed revenue (A$ 37 36 Voice 5% 3% 101 102 Voice 1% 66 67 Data & IP Business Fixed 2% Wholesale F
Slide 23: Consumer & SMB Fixed: on-net strategy delivers improved margins
Consumer & SMB Fixed: on-net strategy delivers improved margins On-net customer growth Improving on-net yield On-net broadband custom ers ('000) 960 20% 70 18% 18% 17% 17% 16% 16% 946 16% 15% 65 61 BITDA margin (%) 14% EBIITDA (A$ m) 58 60 935 12% 57 56 55 926 10% 55 8% 51 6% 50 4% EB 45 2% 0% 40 Q1
Slide 24: Operating costs: good cost management
Operating costs: good cost management Continued postpaid acquisition Operating expenses and cost management Net Adds Operating Costs ('000) (A$m) Selling & Admin 400 1,140 •higher selling costs offset by lower 1% 1,030 1,010 1 066 1,066 1,003 1 050 1,050 975 administrative i i i expenses 945 1,000 3
Slide 25: Associates and joint ventures
Associates and joint ventures
Slide 26: Associates FY11: met guidance
Associates FY11: met guidance FY11 guidance Bharti Earnings to be diluted by acquisition financing costs for Bharti Africa and investment in 3G spectrum Operating revenue to grow at single-digit level Telkomsel EBITDA margin to decline slightly 58% Down 3 ppts Dividends from Regional Mobile Ordinary
Slide 27: SingTel: Pan-Asia & Africa operations covering more than 2 billion population
SingTel: Pan-Asia & Africa operations covering more than 2 billion population #4 in Pakistan 30% #5 in Bangladesh 45% #1 in Thailand #1 in India 21% 32% 4 6 #2 in Philippines 2 3 5 47% 1 11 12 78 9 Africa 13 16 Shareholding 10 14 by Airtel 15 #1 in Singapore 100% 1.Sierra Leone 100% 9.DR Congo 98.5%
Slide 28: Regional Mobile: significant footprint across Asia & Africa
Regional Mobile: significant footprint across Asia & Africa PBTL 66% Africa Mobile 44.2 penetration (%) India, d a, Bangladesh Mobile Sri Lanka 211.9 167.7 customers (m) 21% 113% 99.4 89% Growth in 1 6% 68% 8% 93% 14% 63% 9% customers (%) 44% 32.0 27.3 1.8 17.8 Effective 32.3% 35.0% 21.3% 47.3% 45.0
Slide 29: Regional Mobile Associates
Regional Mobile Associates PBT1 % Change % Change Q4 FY11 Highlights (S$ m) (S$) (local curr) Regional • weaker regional currencies 479 12% NA Mobile • lower profits from Bharti 7% 1% • revenue growth offset by increased Telkomsel 190 marketing spend • India: mobile traffic growth driven by higher 2
Slide 30: Financial position & Outlook
Financial position & Outlook
Slide 31: Strong financial position
Strong financial position Record free cash flow1 S$4b Strong balance sheet +19% 4,038 Net debt S$6.0bn 3 406 3,406 ashflow (S$m) 1,436 Singapore Net gearing 20% 1,290 Group free ca Net debt : EBITDA 0.8x 1,519 Optus 1,258 Assoc div EBITDA : net interest expense 22x 858 1,084 FY10 FY11 S&P’s Moody’s
Slide 32: FY12 Outlook: Group
FY12 Outlook: Group GDP Growth Singapore : 4.0 – 6.0% India : 8% Australia : 4.5%1 Indonesia : 6% Africa 2 : 5 – 7% Consolidated May be impacted by exchange rate revenue, movements of Australian Dollar & regional currencies EBITDA & earnings Dividends Ordinary dividends expected to be stable from Re
Slide 33: FY12 Outlook: Singapore & Australia
FY12 Outlook: Singapore & Australia FY12 Guidance Revenue SIN & AUS: Grow at low single digit level SIN : Stable EBITDA AUS : Grow at low single digit levels SIN : Approx. S$900 million Capex AUS : Approx. A$1.2 billion SIN : Approx. S$1.3 billion Free cash flow 1 AUS : Above A$1 billion 33 1. Opera
Slide 34: Asia's Leading Communications Company
Asia’s Leading SingTel Communications Company www.singtel.com
Singapore Telecommunications — Q4 FY2011 Earnings Presentation on 6ix