Slide 1: Singtel advances digital infrastructure growth strategy
Singtel advances digital infrastructure growth strategy 1 October 2021
Slide 2: Agenda
Agenda Overview of digital infrastructure strategy Divestment of 70% stake in Australia Tower Network Building a new regional data centre platform End game : Regional digital infrastructure platform 2
Slide 3: Agenda
Agenda Overview of digital infrastructure strategy Divestment of 70% stake in Australia Tower Network Building a new regional data centre platform End game : Regional digital infrastructure platform 3
Slide 4: Taking First Steps In Digital Infrastructure Strategy
Taking First Steps In Digital Infrastructure Strategy Divestment of 70% stake in Australia Tower Network (ATN) Building a regional data centre (DC) platform Developing a regional digital infrastructure platform across multiple asset classes 4
Slide 5: Executing To Our Strategic Reset
Executing To Our Strategic Reset Reinvigorate Accelerate 5G & digitalisation of the core with proceeds from ATN divestment the core Strong value proposition from our large & unique infrastructure portfolio, operating experience & deep customer relationships Capitalise on • Explosive demand for digit
Slide 6: Agenda
Agenda Overview of digital infrastructure strategy Divestment of 70% stake in Australia Tower Network Building a new regional data centre platform End game : Regional digital infrastructure platform 6
Slide 7: Positions Us Well For The Future
Positions Us Well For The Future Significant Reflects high quality assets & tenants ~A$2.3b value Enterprise Significantly above telco multiples driven by strong value unlocked competitive process Provide capital to support 5G rollout & growth of Growth core business capital for 5G Retention of 30%
Slide 8: Transaction Overview
Transaction Overview ▪ Singtel divests 70% interest in ATN to AustralianSuper, raising ~A$1.9 billion1 in expected net proceeds ▪ Enterprise value of ~A$2.3 billion Transaction Summary ▪ Formation of Australia’s leading independent tower company with a portfolio of 2,312 existing Optus mobile teleco
Slide 9: Overview Of ATN
Overview Of ATN Hard to replicate, critical mobile infrastructure network of significant scale & diversity 2,312 Brisbane A$117m mobile tower & rooftop sites Darwin revenue1 across Australia Sydney 1.6x A$62m current tenancy ratio with EBITDA1 room for growth Melbourne Perth 565 Adelaide Hobart 20 y
Slide 10: Partnering With AustralianSuper
Partnering With AustralianSuper AustralianSuper is the largest pension fund in Australia ▪ AustralianSuper is Australia’s largest superannuation fund with over 2.4 +A$233 billion million members & 364,0001 contributing businesses Member Assets1 ▪ AustralianSuper invests the retirement savings of 1 i
Slide 11: Securing Optus' Strategic Advantage & Future Growth
Securing Optus’ Strategic Advantage & Future Growth Accelerating rollout of Australia’s Preserving Optus’ ability to Strong partner to grow fastest 5G network differentiate infrastructure business ▪ Capital released will fund 5G rollout ▪ Optus continues to deliver ▪ Proven track record with diverse
Slide 12: Recycling Capital To Fund Growth & Drive Returns
Recycling Capital To Fund Growth & Drive Returns Strengthen network leadership with accelerated 5G rollout Build-out of features & services that will differentiate Optus, grow customer engagement & drive new revenue streams ~A$1.9b Growth Pursue opportunities in B2B digital services through NCS in S
Slide 13: Agenda
Agenda Overview of digital infrastructure strategy Divestment of 70% stake in Australia Tower Network Building a new regional data centre platform End game : Regional digital infrastructure platform 13
Slide 14: We Are Building A New Regional Data Centre Platform
We Are Building A New Regional Data Centre (DC) Platform Key Platform Goals With strong …propel into Trusted regional one-stop shop Singapore base… the region Single port of call for firms; standardised SLAs, interconnected DC capacity across the region Carrier neutral with access to One of outstand
Slide 15: Singtel: Leading Operator in Singapore with Top Quality Assets
Singtel: Leading Operator in Singapore with Top Quality Assets High Quality Operating Assets Track record 7 >70MW >S$250m >60% • Experienced product & operations teams with 20+ years of DC experience Data Centres IT Capacity Annual Revenue1 EBITDA Margin DC West Kim Chuan DC 2 • Diverse customer seg
Slide 16: Attractive Emerging DC Opportunity in ASEAN
Attractive Emerging DC Opportunity in ASEAN Regional DC Demand¹: Ready for Lift-Off Regional Demand Factors ASEAN DC Market Size 5,742 Young, growing population of heavy data users (US$’m)1 341 CAGR 2020-25, % Online media & content, financial services, new 439 PH 15% applications (e.g. AR/VR) 602 V
Slide 17: We Are Excited To Undertake DC Regional Expansion Together With Partners
We Are Excited To Undertake DC Regional Expansion Together With Partners MOU to build leading DC business in MOU to build leading DC business company in Advanced discussions on strategic Advanced discussions on strategic partnership Thailand Thailand partnership for regional on regional platform pla
Slide 18: Open Invitation To Co-create The Region's Greenest DC
Open Invitation To Co-create The Region’s Greenest DC Potential partners Solutions Markets High AI Green/Clean Research Energy Optimized Energy institutes Efficiency solutions Players Tech Starting with SG DCs as DC Design & Sustainable Build Firms Startups Carbon Design & pilot; replicate across Ne
Slide 19: Agenda
Agenda Overview of digital infrastructure strategy Divestment of 70% stake in Australia Tower Network Building a new regional data centre platform End game : Regional digital infrastructure platform 19
Slide 20: Setting The Stage For Infrastructure Growth Strategy
Setting The Stage For Infrastructure Growth Strategy Build scale • Investments in next-gen Towers infrastructure Unlocked value in Optus’ • Inorganic acquisitions towers at attractive valuations • Strategic partnerships • Regional expansion Data centres Digital infrastructure Developing a regional d
Slide 21: End Game: Regional Digital Infrastructure Platform
End Game: Regional Digital Infrastructure Platform Vision Beyond unlocking value to building platform value • Drive organic growth through strong management, commercial focus • Partner long term patient capital providers to expand regionally o Regional expansion to build on our local networks & oper
Slide 22: Singtel
Singtel