Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Investor Day (July 2011)
27 slides from Singapore Telecommunications's investor day presentation, Jul 11, 2011
Slide 1: SingTel Investor Day: Mobile Business Overview
SingTel Investor Day: Mobile Business Overview Michael Smith Managing Director, Consumer 11 July 2011
Slide 2: Forward looking statements - important note
2 Forward looking statements - important note The following presentation may contain forward looking statements by the management of SingTel Group relating to financial trends for future periods, compared to the results for previous periods. Some of the statements contained in this presentation that
Slide 3: Today
3 Today 1 Market overview 2 FY11 performance 3 Future opportunities & strategy
Slide 4: Today
4 Today 1 Market overview 2 FY11 performance 3 Future opportunities & strategy
Slide 5: Growth in the Australian telco market is driven by mobile
5 Growth in the Australian telco market is driven by mobile… TELECOMMUNICATIONS MOBILE MARKET REVENUE MARKET REVENUE UP UP 2.2% 8.5% CY09 CY10 CY09 CY10 Source: JP Morgan
Slide 6: Leading subscriber and strong data revenue growth amongst developed economies
6 …underpinned by leading subscriber and strong data revenue growth amongst world’s developed economies YOY Mobile Subscriber Growth - CY10 YOY Data Revenue Growth - CY10 27.9% 23.4% 21.3% 9.8% 15.0% 15.0% 6.0% 6.2% 9.8% 4.4% 4.4% 2.6% 5.2% 2.7% 0.5% Spain Italy UK Germany France Australia USA Singa
Slide 7: Key drivers of mobile service revenue growth
7 Key drivers of mobile service revenue growth Fixed to Mobile Substitution MBB and handset data growth CAGR UP 9% CAGR 54.4% 15,985 14,733 13,515 52.4% 12,182 6,455 Data: +26% 5,285 11,131 4,204 (40%) 51.4% 3,329 (36%) 2,562 (31%) (27%) (23%) 49.2% 48.6% 9,311 9,448 9,530 8,569 8,853 (64%) (60%) Vo
Slide 8: Sustained fixed to mobile shift for both voice and data
8 Sustained fixed to mobile shift for both voice and data SEQUENTIAL CHANGE IN MOU (MILLIONS), SIX MONTHS TO 1,639 Mobile 1,050 1,145 1,016 Fixed 598 -634 -855 -873 -1,043 -862 Source: Optus estimates based Dec-08 June-09 Dec-09 June-10 Dec-10 on market disclosures SEQUENTIAL CHANGE IN BROADBAND SUB
Slide 9: Smartphone penetration drives growth in use of data products
Smartphone penetration drives growth in use of data products 9 FUNCTIONS USED ON MOBILE PHONES, DEVICES EVER USED TO ACCESS THE INTERNET SPLIT BY TYPE OF PHONE OWNED – 2010 2010 vs 2009 95% 95% 91% 88% 89% 85% 87% 78% 77% 74% 73% 70% 68% 57% 58% 54% 50% 50% 49% 36% 27% 28% 23% 16% 18% 11% 12% 10% 9%
Slide 10: However various headwinds are emerging
However various headwinds are emerging 10 Pricing Pressure Increase in plan inclusions Competitive Aggression A$/Minute (Mob industry minutes / Pre+Post revenue, ex WBB) Included value (A$) Mobile net adds for the quarter („000) OCTOBER 2009 Consumer Telstra CAGR: Optus 8.12 7.81 555 Unlimited calls
Slide 11: Today
11 Today 1 Market overview 2 FY11 performance 3 Future opportunities & strategy
Slide 12: Service revenue growth softens as competitors discount price and plan inclusions increase
Service revenue growth softens as competitors discount price and plan 12 inclusions increase OPTUS MOBILE SERVICE REVENUE GROWTH (YoY) 14.3% 12.5% 11.0% 10.3% 6.7% Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Note: All numbers are HY
Slide 13: Prepaid being impacted by a number of industry dynamics
13 Prepaid being impacted by a number of industry dynamics… Optus Subscriber Growth – Prepaid (‘000) +1% +1% -1% -1% Prepaid subscriber growth under pressure: • Industry prepaid to postpaid migration 4,307 4,359 4,404 4,342 4,295 • Highly competitive market: – Telstra‟s subscriber push – New competi
Slide 14: ...but Postpaid continues to grow
14 …but Postpaid continues to grow POSTPAID SUBSCRIBERS (000s) POSTPAID ARPU YoY GROWTH EXCLUDING WIRELESS BROADBAND SUBSCRIBERS +139 (+3%) +143 (+3%) +150 (+3%) +151 (+3%) Q4 FY11 2% 4,473 4,622 4,773 4,191 4,330 Q3FY11 2% Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Q2 FY11 5% WIRELESS BROADBAND SUBSCRIBERS
Slide 15: Smartphone penetration and innovative data services driving data growth
Smartphone penetration and innovative data services driving data growth 15 Unlimited mobile OPTUS DATA SHARE OF SERVICE REVENUE access, within Australia, to these sites Non SMS Data % of Service Rev SMS % of Service Rev 40% 36% 389,000 live streams 33% of the 2010 FIFA World 18% Cup matches 28% 13%
Slide 16: Broadband uptake
16 BROADBAND UPTAKE OPTUS MBB SUBS (‘000) +375 1,282 +421 907 +375 486 111 Mar-08 Mar-09 Mar-10 Mar-11
Slide 17: Increased investment leading to network performance improvement
17 Increased investment – leading to network performance improvement OPTUS MOBILE CAPEX (A$ MILLION) Sydney Morning Herald Network Testing 575 • 30 sites around Sydney CBD 536 495 and metro areas • Data transfer speeds only • Tested on iPhone 4 AVERAGE DOWNLOAD TIMES 3MB SONG (SEC) AVERAGE UPLOAD TI
Slide 18: Optus – the leading challenger network
18 Optus – the leading challenger network We’ve delivered We‟ve expanded We‟ve delivered competition to more than covering 1000 14 towns over in-building in the last year 700,000km2 solutions, improving coverage for our metro Fibre backhaul to customers Femtocell over 80% of Leveraging metro sites f
Slide 19: The Customer Experience program continues to deliver improvements
19 The Customer Experience program continues to deliver improvements for our Mobile Customers Reduction in number Outperforming our major competitor in key CE metrics of technical enquiries 30% +5% − through a simplified activation process in Mobile Billing and Activation General enquiries Faster de
Slide 20: Today
20 Today 1 Market overview 2 FY11 performance 3 Future opportunities & strategy
Slide 21: We will breakout in customer experience
21 We will breakout in customer experience Driving a breakthrough in Customer Experience Fix vital service Product is the Network Design for Lifetime Value experience We are resolving the key We will continue to invest in our network We will drive loyalty through our Customer pain points. and will w
Slide 22: Device leadership across handsets, tablets and other devices
Device leadership across handsets, tablets and other devices 22 Number of Applications (‘000) iOS 350 Android 275 Symbian 50 Blackberry 20 Windows 10 Source: Samsung Securities – April 2011
Slide 23: Deliver relevant and personalised digital services to our customers
Deliver relevant and personalised digital services to our customers 23 Optus Smart Safe Lead in online digital experience • secured data with products and VAS of • accessible on any device RELEVANCE • easily shared with friends and family Google Apps Partnership Optus Now Optus Smart Safe Optus Call
Slide 24: Leverage distribution to compete
Leverage distribution to compete 24 Optus Distribution Landscape +241 Regional Metro Mar-10 Mar-11 Branded Retail +41 2009 Mar-11
Slide 25: Mobile 2012 and beyond
25 Increase our investment in the mobile network Mobile 2012 and beyond CONTINUE INVEST COMPLETE FINALISE regional in metro upgrade trial of LTE expansion network depth to HSDPA+ and deploy With the continuing significant investment, Optus is the only carrier capable of challenging the incumbent tel
Slide 26: Video: Network
Video: Network 26
Slide 27: SingTel Investor Day: Mobile Business Overview
SingTel Investor Day: Mobile Business Overview Michael Smith Managing Director, Consumer 11 July 2011
Singapore Telecommunications — Investor Day (July 2011) on 6ix