Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Q4 FY12 Earnings Presentation
33 slides from Singapore Telecommunications's earnings presentation, May 10, 2012
Slide 1: Financial Results Presentation Q4 FY12
Financial Results Presentation Q4 FY12: Quarter ended 31 March 2012 10 May 2012 Chua Sock Koong Group CEO
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: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position & Outlook 3
Slide 4: Strong revenue and earnings growth
Strong revenue and earnings growth Group Revenue S$4,780m Net profit S$1,289m performance › up 3% › up 30% › underlying net profit up 3% Singapore Revenue S$1,717m EBITDA1,2 S$583m › up 3% › up 6% Optus Revenue A$2,296m EBITDA1 A$676m › down 1% › up 1% Regional Customers3 445m Pre-tax earnings4 S$51
Slide 5: Final dividend of 9¢ brings total payout to 68% of earnings
Final dividend of 9¢ brings total payout to 68% of earnings 5-year Ordinary dividends1 DPS as % of FCF (after interest & tax payments) 9.0¢ Final ordinary Interim DPS as % of underlying EPS 6.8¢ ordinary Total 15.8¢ ordinary Ordinary dividend per share (DPS) 1.Does not include special dividends in F
Slide 6: Group Q4 FY12 highlights
Group Q4 FY12 highlights Proportionate EBITDA1 79% outside Singapore Group › Restructures organisation to capture growth and lift customer experience Others 1% › Acquisition of Amobee Optus Regional Mobile 35% Singapore › NCS wins government contract for 43% manpower management system Optus › Announ
Slide 7: Q4 FY12: revenue and EBITDA growth
Q4 FY12: revenue and EBITDA growth 3 months 3 months YoY % 3 months Sequential to Mar 12 to Mar 11 change to Dec 11 % change Operating revenue 4,780 4,643 3.0% 4,830 (1.0%) EBITDA 1,430 1,392 2.7% 1,256 13.8% - margin 29.9% 30.0% 26.0% Associates pre-tax earnings1 539 514 4.8% 475 13.4% EBITDA & sha
Slide 8: FY12: strong growth in revenue offset by lower associates' contribution
FY12: strong growth in revenue offset by lower associates’ contribution 12 months 12 months YoY % to Mar 12 to Mar 11 change Operating revenue 18,825 18,071 4.2% EBITDA 5,219 5,119 1.9% - margin 27.7% 28.3% N.M. Associates pre-tax earnings1 2,013 2,150 (6.4%) EBITDA & share of associates’ pre-tax ea
Slide 9: Foreign exchange movements
Foreign exchange movements 1 Currency appreciation / Exchange rate 1 Exchange rate (depreciation) against S$ Currency S$ 1.00 YoY QoQ 2 1 AUD 1.3339 3.9% 2.3% INR 39.7 (11.8%) (0.5%) IDR 7,194 (2.9%) (2.9%) PHP 34.0 0.6% (0.6%) THB 24.5 (2.5%) (1.7%) BDT 65.4 (17.6%) (9.2%) PKR 71.9 (7.2%) (5.7%) 1.
Slide 10: Trends in constant currency terms
Trends in constant currency terms1 4Q FY12 YoY % change YoY % change 3 months to Mar 12 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,780 3.0% 0.5% Group underlying NPAT 1,023 2.5% 2.7% Optus revenue 3,063 2.7% (1.1%) Associates pre-tax earnings2 539 4.8% 9.4% FY12 YoY % change YoY
Slide 11: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position & Outlook 11
Slide 12: Singapore FY12: met guidance
Singapore FY12: met guidance FY12 Guidance FY12 Outcomes Operating revenue to grow at Operating revenue S$6,551m 2% low single digit level EBITDA to be stable EBITDA S$2,259m1 Capital expenditure to be Capex: revenue 12% S$818m approximately S$900m Free cash flow (excl. associates’ Free cash flow S$
Slide 13: Singapore: mobile led growth
Singapore: mobile led growth Revenue YoY Q4 FY12 Highlights S$m Change Total revenue S$1,717m +3% up 4% excluding fibre rollout Mobile S$478m +5% strong customer growth Data & planned price adjustments with S$403m -3% Internet NextGen NBN lower fibre rollout revenue IT & Engg S$440m +2% NCS revenue
Slide 14: Mobile: strong momentum continues
Mobile: strong momentum continues Strong service revenue +5% Postpaid market share 47.9%1 Mobile Mobile customers revenue Postpaid ARPU S$82 (‘m) (S$m) 5.0 $491 500 reported ARPU down 6% $472 $477 $478 $465 down 3% excluding data-only SIMs $455 4.0 450 Wireless BB subs up 44%2 1.3m 3.0 400 1.83 1.87
Slide 15: Data & Internet revenue and NCS Group
Leading in enterprise ICT solutions space Data & Internet revenue S$403m NCS Group revenue S$395m down 3% up 4% -3% 415 Revenue by Revenue by 403 business geography Data & Internet revenue (S$m) 111 Internet 114 related Infrastructure services Overseas 113 71% 106 LLC 11% 29% 89% 110 Managed 110 Ser
Slide 16: Leading the digital revolution
Leading the digital revolution mio TV revenue S$29m Growing our digital presence Customers Revenue (‘000) (S$m) 400 $28 $29 30 Fibre customers2 76k $25 350 $23 $23 25 up 21k 300 20 250 200 368 15 mio TV: launched Hindi Pack 150 292 313 335 353 10 includes 2 first-to- 100 5 market channels 50 0 0 Mar
Slide 17: Strong Q4 EBITDA growth
Strong Q4 EBITDA growth EBITDA S$583m Operating expenses +3% up 6%1 Selling & Admin +6% Telco IT & Engg EBITDA1 84% 16% higher mobile customer EBITDA retention costs S$488m S$95m higher costs to service growing multimedia business Cost of sales -5% Telco EBITDA1 S$488m lower fibre rollout up 4% EBIT
Slide 18: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position & Outlook 18
Slide 19: Optus FY12: met guidance in a highly competitive environment
Optus FY12: met guidance in a highly competitive environment FY12 Guidance FY12 Outcomes › Revenue to grow at low single-digit level Revenue A$9,368m › EBITDA to grow at low single-digit level EBITDA A$2,357m › Capital expenditure to be approximately Capex: revenue 12% A$1.1b A$1.2 billion › Free ca
Slide 20: Optus: Business & Wholesale growth offset by lower Mobile revenue
Optus: Business & Wholesale growth offset by lower Mobile revenue YoY Q4 FY12 A$m Highlights Change Total revenue A$2,296m -1% lower mobile revenue impacted by mobile termination rates Mobile A$1,456m -3% and device repayment plans Business & higher ICT & Managed Services and Wholesale A$530m +6% sa
Slide 21: Mobile: revenue impacted by lower termination rates and device repayment plans
Mobile: revenue impacted by lower termination rates and device repayment plans Service revenue -2% Continuing postpaid customer up 3% excluding termination rate reduction growth and device repayment plans Service Net Adds Revenue Net adds (‘000) +82k (A$m) Postpaid customers $1,279 $1,292 Prepaid cu
Slide 22: Business & Wholesale Fixed: growth in ICT & Managed Services and Satellite
Business & Wholesale Fixed: growth in ICT & Managed Services and Satellite Business: growth in ICT & Wholesale: higher satellite revenue Managed Services +4% +7% Wholesale Fixed revenue (A$m) 345 185 Business Fixed revenue (A$m) 178 321 37 Voice 36 98 102 Voice 67 66 Data & IP 119 Data & IP 119 ICT
Slide 23: Consumer & SMB Fixed: lower traffic costs lift margins
Consumer & SMB Fixed: lower traffic costs lift margins On-net customer growth in a Higher margins from lower traffic competitive market costs Customers ARPU EBITDA EBITDA (‘000s) (A$) (A$m) margin (%) $50 $49 20% $48 $48 $47 80 20% 1,000 50 18% 18% 18% 18% 990 45 70 980 978 972 40 60 64 15% 970 965
Slide 24: Managing cost while driving strategic differentiation
Managing cost while driving strategic differentiation Operating expenses -2% Understanding and meeting customer needs Selling & Admin -9% lower handset subsidies on device repayment plans Cost of sales +1% lower mobile equipment costs was offset by higher satellite & ICT equipment costs Traffic expe
Slide 25: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position & Outlook 25
Slide 26: Significant footprint across Asia & Africa
Significant footprint across Asia & Africa #5 in Pakistan 30% #5 in Bangladesh 45% #1 in Thailand #1 in India 23% 4 32% 6 #2 in Philippines 2 3 5 47% 1 11 13 78 9 12 Africa 14 17 Shareholding 10 15 by Airtel 16 #1 in Singapore 100% 1.Sierra Leone 100% 10.Zambia 96.4% 2.Burkina Faso 100% 11.Uganda 10
Slide 27: Growing our Pan-Asia & Africa customer base
Growing our Pan-Asia & Africa customer base 12% 11% Mobile customers (m) 20% Growth in customers (%) 7% 14% 19% South Asia Africa Effective stake (%) 32.3% 35.0% 23.3% 47.3% 30.0% 45.0% Mobile penetration 75%1 105% 119% 102% 67% 54% Market position #11 #1 #1 #2 #5 #5 Market share (%) 20%1 43% 45% 32
Slide 28: Regional mobile associates – strong operating performance
Regional mobile associates – strong operating performance PBT1 % Change % Change Q4 FY12 Highlights (S$m) (S$) (local curr) Regional 510 +6% N.A. › up 11% in constant currency Mobile Telkomsel 229 +20% +24% › revenue growth across voice, SMS and data › ongoing cost management Airtel 139 -20% -10% ›
Slide 29: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position & Outlook 29
Slide 30: Sound financial position
Sound financial position Free cash flow S$3,462m Solid balance sheet Net debt S$7.9b 4,038 -14% Group free cash flow (S$m) 3,462 Net gearing2 25% 1,436 1,170 Singapore Net debt: EBITDA & share of 1.1x › down S$266m associates’ pre-tax profits 1,519 Optus EBITDA & share of 21x 1,451 › down S$68m asso
Slide 31: FY13 Outlook
FY13 Outlook GDP Growth Singapore : 1.0 – 3.0% India : 7% Australia : 3.0 – 3.5%1 Indonesia : 6% Africa 2 : 5 – 7% Consolidated May be impacted by exchange rate movements of Australian Dollar revenue & regional currencies & EBITDA Exchange rates The Group’s Outlook is prepared based on these market
Slide 32: FY13 Outlook
FY13 Outlook Group revenue1 Grow at low single digit level • Group Consumer : grow at low single digit level • Group ICT : grow at low single digit level • Digital L!fe : strong revenue growth, with start-up losses Group EBITDA1 Stable Group Free Cash Flow1,2 (excluding dividends from Around S$2.6 b
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Singapore Telecommunications — Q4 FY12 Earnings Presentation on 6ix