Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — FY2022 Earnings Presentation
23 slides from Singapore Telecommunications's earnings presentation, May 27, 2022
Slide 1: Financial Results
Financial Results For the financial year ended 31 Mar 2022 Yuen Kuan Moon, Group CEO 27 May 2022 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: FY22 at a glance
FY22 at a glance Strong turnaround in financial performance Underlying NPAT ▲ 11% NPAT ▲ 2.5x ▪ Growth in market share & ARPU by Optus & Airtel ▪ Digitalisation momentum drove NCS & data centre business ▪ Strength in fixed broadband & nascent roaming recovery Executing to strategic reset ▪ Continued
Slide 4: FY22 financial highlights
FY22 financial highlights Operating revenue EBITDA EBIT Regional associates’ PBT (before associates’ contributions) S$15,339m S$3,767m S$1,045m S$2,067m ▼ 2% (▼ 3%1) ▼ 2% (▼ 3%1 ) ▼ 9% (▼ 10%1 ) ▲ 21% (▲ 23%1 ) Stable2 ▲ 8%2 ▲ 33%2 Underlying net profit Net profit3 Return on equity Return on investe
Slide 5: Australia Consumer
Australia Consumer A$M Revenue EBITDA EBIT 7,088 317 6,627 1,933 296 1,884 69 NBN1 69 NBN1 285 317 Looking ahead: 69 NBN1 ▪ Continued growth in mobile services, driven by: 6,770 6,558 1,864 317 -3% 19% +237m o Growing penetration of ARPU- 1,567 accretive Optus Choice Plans 216 o Prepaid & roaming to
Slide 6: Singapore Consumer
Singapore Consumer S$M Revenue EBITDA EBIT 1,833 1,764 602 582 320 28 2 JSS 28 281 2 JSS Looking ahead: ▪ Prepaid & roaming to strengthen with return of foreign workers & tourists -4% 574 1% 580 292 -5% 279 ▪ Flexi-work arrangements to drive continual demand for home broadband upgrades ▪ Enrich loca
Slide 7: Group Enterprise
Group Enterprise S$M Revenue EBITDA EBIT 3,770 3,728 1,259 1,225 660 653 15 0 JSS 15 0 JSS Looking ahead: 1,042 5% 1,094 ICT ▪ Improving business activity & sentiment to drive customer usage & digital enablement 1,244 -2% 1,225 645 1% 653 2,728 -3% ▪ Higher roaming revenue with increased 2,634 Carri
Slide 8: NCS
NCS S$M Revenue EBITDA EBIT 2,361 258 2,285 41 351 159 302 214 55 55 9 1 2 0 2 Looking ahead: 8 ▪ Leverage innovation engine 2,320 ▪ Scale growth engines 2,126 9% 4% 8% 287 299 195 212 ▪ Build scale & integrate Australia investments FY21 FY22 FY21 FY22 FY21 FY22 o Acquisition of Dialog & ARQ to add
Slide 9: Regional associates
Regional associates Profit before tax S$M Telkomsel Intouch AIS Globe Airtel Looking ahead: ▪ Associates to benefit from opening of FY22 915 95 314 311 432 2,067 economies, easing of Covid restrictions & industry consolidation 21% ▪ Flow through from positive price adjustments in India & Indonesia F
Slide 10: Financial position
Financial position Free cash flow1 & capital recycled (S$M) S$M S$2.1b of capital recycled Highlights: FY22 1,456 690 862 73 2,118 5,199 ▪ Strong cash flow generation due to earnings recovery & capital recycling, 53% including S$1.9b from ATN divestment ▪ Singapore free cash flow impacted by FY21 3,
Slide 11: Capital management framework for sustainable dividends & growth
Capital management framework for sustainable dividends & growth1 Protect the core Invest for ROIC-driven growth Capital partners Digibank/ Asset data centre/ recycling NCS Cash from Core Spectrum, lease & Capex Dividends Funding2 Incremental Current growth Potential growth operations interest paymen
Slide 12: Measures to contain inflation
Measures to contain inflation Operating costs Interest costs 12.0 Borrowings (ex lease liabilities) (S$B) (S$B) Utilities 11.7 1% 10.9 Network 4% 5% 2% Staff costs 21% Floating 19% 24% 8.6 5% COS & others1 74% Revenue-led Fixed 81% 95% 70% costs FY21 FY22 FY21 FY22 Mitigation measures for staff, net
Slide 13: Executing to our strategic reset
Executing to our strategic reset 13
Slide 14: Delivering to our strategic pillars
Delivering to our strategic pillars Reinvigorate Capitalise on Reallocate capital, Champion people the core growth trends unlock value & sustainability ✓Executing on 5G ✓NCS: 4 acquisitions ✓Raised >S$2b proceeds ✓Enhanced linkage with ▪ >480k subs in SG & >2.3m made to establish anchor ▪ ATN 20% of
Slide 15: Regional Data Centre: Capturing sizeable opportunity in the region
Regional Data Centre : Capturing sizeable opportunity in the region Focus on the 3 fastest growing markets in ASEAN Singapore: Leading DC operator Total addressable S$150m ~60MW 30-40MW market annual EBITDA of capacity pipeline US$4.4b Market Size1 Thailand: Best of breed partnership JVCo to be form
Slide 16: Digibank: Leverage our unique strengths to build scale
Digibank: Leverage our unique strengths to build scale Strong ecosystem of partners A unique opportunity ▪ Deepen customer wallet & mindshare ▪ Leverage existing assets of partners ▪ Add value back to Singtel ▪ Forging partnerships for stronger proposition & consortium of local partners ▪ Needle mov
Slide 17: NCS: Focused on growth & building scale
NCS : Focused on growth & building scale 1 Government & Enterprise 2 Singapore & APAC 3 Core & Digital Services Expedite growth with 40%1 Be a Pan-APAC leader with Pivot to digital services with >60%3 business in enterprise sector 40%2 business beyond Singapore in digital, cloud, platforms & cyber G
Slide 18: Lead in sustainability
Lead in sustainability Climate change & the environment People & future of work 7% S$50/ton S$19m A- leadership reduction of Completed SG CO2e internal carbon Training investment Singtel Group Bloomberg score for 5th absolute & AU climate price set in SG in SG & AU Human Rights Gender-Equality 20% c
Slide 19: Future forward financing – going sustainable & digital
Future forward financing – going sustainable & digital Sustainable financing Democratising investor programme, Olives1 participation with digital bonds ✓1linked telco in APAC to launch sustainability- st bond framework ✓Largest foreign currency tokenised bond issuance in Singapore tapping ▪ Linked t
Slide 20: Looking ahead
Looking ahead 20
Slide 21: Outlook & dividend policy
Outlook & dividend policy Regional associates Capital expenditure Dividend policy ~S$1.1b ~S$2.6b 60-80% comprising of dividends of underlying ~A$1.7b in AU net profit for rest of ~S$0.9b the Group 21
Slide 22: Key investment proposition
Key investment proposition Positioned to thrive in 5G & digital world Momentum building in growth drivers Strong cash flow from operations & levers from capital recycling Solid balance sheet to withstand volatility Deep value with sizeable holdco discount 22
Slide 23: Singtel
Singtel
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