Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — FY2025 Earnings Presentation
25 slides from Singapore Telecommunications's earnings presentation, May 22, 2025
Slide 1: Financial Results
Financial Results For the full year ended 31 Mar 2025 Yuen Kuan Moon, Group CEO 22 May 2025
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: FY25 achievements
FY25 achievements Lift business performance Sustained value realisation Strong EBIT growth Cost optimisation Scaling up Underlying NPAT SG +55% +39% ~$250M Positioning for +9% (+11%2) savings strong DC demand EBIT (ex assoc) +20% Active capital management driven by Optus & NCS Asset recycling procee
Slide 4: Enhancing shareholder value through capital management
Enhancing shareholder value through capital management Total dividend of 17cts Core dividend Value Realisation Value Realisation Dividend (VRD) Share Buyback (VRSB) 12.3cts 4.7cts Up to S$2B Over the course of 3 years till FY28 4
Slide 5: FY25 business highlights
FY25 business highlights SG Champion people New growth Mobile growth Expansion & sustainability +3.4%2 ~14% Unified, AI-enabled self-serve Branded Reduction in GHG Extended Global Delivery Enterprise portal driving key Postpaid ARPU emissions Scope 1&2 Network via JV with Globe strategic wins +40% +
Slide 6: FY25 financial highlights
FY25 financial highlights Operating revenue EBITDA EBIT (ex assoc contribution) S$14.1B S$3.8B S$1.4B Stable (Stable1) ▲ 5% (▲ 6%1) ▲ 20% (▲ 20%1) Ex Trustwave1 ▲1% Ex Trustwave1 ▲ 5% Ex Trustwave1 ▲ 15% Regional Underlying net profit associates’ PAT Net profit (basis for core dividend payout) S$1.8
Slide 7: Broad-based growth from key businesses
Broad-based growth1 from key businesses Revenue (S$M) FY25 revenue growth 14,146 +2% 72 14,128 77 Optus: Mobile service growth 167 14,173 NCS: Fuelled by Gov+ 13,884 Nxera: Driven by price uplifts, reservation fees & utility pass- through -99 FY24 FY25 Satellite project-based deployment revenue Trus
Slide 8: Strong Optus performance
Strong Optus performance SG Revenue EBIT Revenue EBIT A$8,177M A$446M S$3,808M S$833M YoY ▲ 1% YoY ▲ 55% YoY ▼ 2% YoY Stable ▪ Mobile service revenue increased 4% on postpaid ▪ Mobile service revenue flat; roaming & IoT offset repricing by legacy decline ▪ EBITDA up 6% & EBIT rose 55% ▪ EBITDA up 2%
Slide 9: Continued solid NCS growth
Continued solid NCS growth Digital InfraCo Revenue EBIT Revenue EBIT S$2,979M S$254M S$434M S$65M YoY ▲ 5% YoY ▲ 39% YoY ▲ 5% YoY ▼ 9% Nxera ▲ 9% Nxera ▲ 12% ▪ Revenue uplift supported by Gov+ ▪ Revenue growth underpinned by Nxera’s customer reservation fee & utilities pass through ▪ Higher margins
Slide 10: Regional associates' higher PAT driven by TH & IN
Regional associates' higher PAT driven by TH & IN S$46M adverse impact from stronger SGD Regional associates’ PAT S$M ▲ 4% (▲ 7%1) 1,756 S$1,756M 1,685 ▲ 4% (▲ 7%1) 545 ▼ 13% (▼ 9%1) Telkomsel 628 ▪ Telkomsel: Continued mobile competition, mitigated by FBB growth 455 ▪ AIS: Strong mobile & FBB growt
Slide 11: Robust balance sheet
Robust balance sheet Net debt to Net debt Interest Fixed rate ▪ Solid financial position EBITDA & assoc PBT cover debt o Cash balance of S$2.8B2 o Debt is largely hedged into S$9.4B 1.5x 18.1x 88% fixed rates (Mar 24: S$7.8B) (Mar 24: 1.3x) (Mar 24: 17.8x) (Mar 24: 88%) o Average cost of debt: ~3.5%
Slide 12: FY26 priorities
FY26 priorities 12
Slide 13: Successfully delivered FY25 guidance
Successfully delivered FY25 guidance EBIT growth rate High-teens to 20% (Ex assoc contributions) low 20s1 Annual cost savings2 S$0.2B1 On track (FY24-26 for Singtel SG & Optus) Regional Associates’ S$1.3B S$1.3B dividend Capex S$2.8B S$2.4B FY25 total ordinary dividend of 17cts, above ~16.5cts guida
Slide 14: Focus for FY26
Focus for FY26 SG ▪ Scale Enterprise business ▪ Reinvigorate brand trust & fortify core ▪ Strengthen mobile & FBB Regional Associates ▪ Focus on customer value ▪ Focus on telco APIs, quantum-safe ▪ Simplification & efficiency network & 5G slicing ▪ Growing fixed broadband & enterprise Digital InfraC
Slide 15: Continued cost efficiency
Continued cost efficiency 2/3rd of target achieved: Cost out target: Cumulative savings ~S$400M S$600M1 FY24: FY25: FY23 ~S$150M ~S$250M FY26 FY26 cost out Cost out initiatives launched initiatives Operational efficiency • Product & portfolio simplification • Workforce optimisation; streamlined stru
Slide 16: FY26 guidance
FY26 guidance EBIT growth rate High single digits1 (Ex assoc contributions) Annual Cost savings2 S$0.2B (Singtel SG & Optus) Regional Associates’ dividend S$1.0B3,4 Capex S$2.5B Reiterating our low double-digit ROIC target in the mid-term 1. Based on average exchange rate during FY2025 of A$1: S$0.8
Slide 17: Capex outlook
Capex outlook S$B 2.8 FY26 core capex 2.5 2.4 ▪ Optus: Rebalancing of capex, broadly 1.0 in line with prior year 0.7 0.8 S$0.6B fully funded ▪ ST SG: Capex on network & subsea cables expected to increase 1.21 1.11 FY26 growth capex (AU) 1.21 (AU) (AU) ▪ Scaling up Nxera’s regional DC3 & satellites ▪
Slide 18: Active capital management: From assets to advantage
Active capital management: From assets to advantage Arthur Lang, Group CFO 22 May 2025 18
Slide 19: Committed to long-term dividend growth
Committed to long-term dividend growth Ordinary Dividends declared (S cts) Strategic reset Singtel28 (▲13%) 17.0 FY25 total ordinary dividend: 15.0 3.3 17cts (12.3cts core & 4.7cts VRD) VRD VRD 4.7cts 3.8 1.4 9.9 VRD Core payout ratio at 82% of 9.3 Core FY25 underlying NPAT Core 6.7 7.5 6.0 4.8 5.3
Slide 20: Stepping up on capital management to drive returns
Stepping up on capital management to drive returns S$B ~9.0 Raising pipeline target ▪ Allocated for: o Growth opportunities ~6.0 o Possible debt pay-down 2.1 ▪ Excess capital to be returned to May 25: Divestment of shareholders: 2.0 1.2% stake in Airtel o VRD (3-6cts/share annually) FY25 cash procee
Slide 21: Delivering sustained value creation for shareholders
Delivering sustained value creation for shareholders Lift EPS & DPS on sustained basis; drive long-term returns on capital Up to S$2B Value Realisation Share Buyback programme ▪ Shares bought back will be cancelled; purchases subject to market conditions Over the course of 3 years ▪ Over & above exi
Slide 22: Sustainable returns reflect improving core business & continued capital management
Sustainable returns reflect improving core business & continued capital management 3-pronged approach to deliver higher returns Reaffirmed Reaffirmed NEW Core dividend Programmatic Value Realisation VRD Share Buyback (VRSB) Between 3-6cts per 3-year 70% - 90% of share annually in programme of underl
Slide 23: Reinforcing ST28 strategy
Reinforcing ST28 strategy Lift business Active capital Sustained value performance management realisation • Continued EBITDA & • Focus on capital EBIT growth recycling • Further scaling up • Value creation & growth engines unlocking • New operating model • Dividend policy (core Dividend + Growth & i
Slide 24: Anchored in stability amidst global market volatility
Anchored in stability amidst global market volatility Resilient cash flows • Stable & diversified cash generation; no direct impact from tariff war • Disciplined capex • Cost efficiencies Healthy balance sheet • All foreign currency debts are fully hedged • Well-positioned for a benign interest rate
Slide 25: app, linkedin, logo, media, popular, social A black and white logo Description automatically generated
app, linkedin, logo, media, popular, social A black and white logo Description automatically generated
Singapore Telecommunications — FY2025 Earnings Presentation on 6ix