Slide 1: Proposed Investment in Intouch and Bharti Telecom
Proposed Investment in Intouch and Bharti Telecom Chua Sock Koong, Group CEO 18 August 2016
Slide 2: Forward looking statement – important note
Forward looking statement – important note The following presentation contains forward looking statements relating to financial trends for future periods, compared to the results for previous periods. Some of the statements contained in this presentation that are not statements of historical facts a
Slide 3: Agenda
Agenda • Transaction Overview 1 • Transaction Rationale 2 • Proforma Financial Impact 3 • Conclusion 4 3
Slide 4: Transaction Overview
01 • Transaction Overview 02 • Transaction Rationale 03 • Proforma Financial Impact 04 • Conclusion 4
Slide 5: Proposed Transaction
Proposed Transaction Singtel Proposes to Acquire Stakes in Intouch Holdings PCL (“Intouch”) and Bharti Telecom Limited (“BTL”) from Temasek Intouch Transaction BTL Transaction Placement to Temasek Transaction 21.0% stake 7.39% stake 386 million new Singtel shares Overview THB 60.83(1),(2) pe
Slide 6: Overview of Intouch Plc & AIS
Overview of Intouch Plc & AIS Corporate Structure Contribution of Net Profit FY2015 Market Cap(1): S$ 7.7 billion 5.2% THB 873 million 94.8% 40.45% 41.14% THB 15,855 million Others (2) Market Cap(1): Market Cap(1): AIS Thaicom S$ 19.9 billion S$ 0.9 billion Mobile Fixed broadband Digital content L
Slide 7: Overview of Bharti Telecom Ltd & Airtel
Overview of Bharti Telecoms Ltd & Airtel BTL An investment holding company 45.09% (1) Airtel Market Cap(2): S$ 27.8 billion Tower Mobile Home Services Digital TV Airtel Business Infrastructure 342 million mobile 2.0 million Pan-India DTH has Global voice and Bharti Infratel has subscribers
Slide 8: Transaction Rationale
01 • Transaction Overview 02 • Transaction Rationale 03 • Proforma Financial Impact 04 • Conclusion 8
Slide 9: Transaction Rationale
Transaction Rationale Unique opportunity to increase economic exposure to high growth telecom sectors in Thailand & India Increases economic interests in quality assets - AIS & Airtel Enhance Shareholder Value Supports Singtel’s strategy to drive long term earnings growth by maximising the val
Slide 10: AIS
01 • Transaction Overview 02 • Transaction Rationale 03 • Proforma Financial Impact 04 • Conclusion AIS 10
Slide 11: Strong Industry Fundamentals
Strong Industry Fundamentals Large Attractive Market with Improving Fundamentals Thailand’s GDP per Capita (USD) Thailand’s Demography 2.1% Population 11.5% 5,773 28.0% 68 million (1) 5,482 5,607 5,631 19.4% Age 0 - 9 Age 10 - 24 Age 25 - 49 Mobile 5,133 Age 50 - 79 Penetration 39.0% Over 80 126% (2
Slide 12: Well-Positioned for Growth
Well-Positioned for Growth Well-Positioned to Benefit from Trends of AIS has Secured Long-term Spectrum Holding Increasing Data Usage AIS Data Usage Current Bandwidth Status (GB/sub/month) 67% 68% • Fully deployed 3G 2100MHz • Over 98% population coverage 63% 15MHz License until 2027 • 32,000 3G bas
Slide 13: Airtel
01 • Transaction Overview 02 • Transaction Rationale 03 • Proforma Financial Impact 04 • Conclusion Airtel 13
Slide 14: Improving Economic Fundamentals
Improving Economic Fundamentals Large Attractive Market with Improving Economic Fundamentals India’s Projected GDP Growth (%) India’s Demography 0.9% Population 7.24% 7.52% 7.17% 16.8% 19.1% Age 0 - 9 7.01% >1billion Age 10 - 24 (1) Age 25 - 49 6.34% 28.1% Age 50 - 79 35.1% Low Mobile Over 80 Penetr
Slide 15: Leading Spectrum Assets and Network
Leading Spectrum Assets and Network Airtel is Well-Positioned to Benefit from its Strong Spectrum Portfolio and Network Investments Spectrum Portfolio Rising Mobile Data Usage (1) Total Data Volumes on Airtel’s Network (Bn MBs) 4G Footprint 3G Footprint 158 (1) 22 circles 21 circles 102 (2) 5 circle
Slide 16: Maximising Value of Existing Regional Investments
Maximising Value of Existing Regional Investments Owned by BTL Owned by Intouch Singtel Globe Bharti Airtel AIS #1 in Singapore #2 in Philippines #1 in India #1 in Thailand 100% ownership 47% effective economic 33% ownership 23% ownership interest India 39m mobile customers Mobile Mobile 256m mobile
Slide 17: Singtel's Dividend Policy Remains Unchanged
Singtel’s Dividend Policy Remains Unchanged History of Dividends and Other Distributions to Shareholders Singapore cents per share 17.5 17.5 16.8 16.8 15.8 FY2012 FY2013 FY2014 FY2015 FY2016 Payout 68% 74% 74% 74% 73% Ratio (%) Singtel's dividend payout ratio is between 60% to 75% of underlying net
Slide 18: Conclusion
01 • Transaction Overview 02 • Transaction Rationale 03 • Proforma Financial Impact 04 • Conclusion 18
Slide 19: Proforma Financial Impact to Singtel
Proforma Financial Impact to Singtel For illustration only: EPS (Singapore Cents) Earnings Actual Pro-Forma1 24.4 for the year ended 24.3 31 March 2016 Profits attributable to 3,871 3,979 shareholders (SGD million) Actual Pro-Forma (1) Accretion: 0.4% Net Actual Pro-Forma1 tangible NTA (SGD million)
Slide 20: Proforma Financial Impact
01 • Transaction Overview 02 • Transaction Rationale 03 • Proforma Financial Impact 04 • Conclusion 20
Slide 21: Conclusion
Conclusion Unique opportunity to increase economic exposure to high growth telecom sectors in 1 Thailand & India 2 Increases economic interests in quality assets - AIS & Airtel Supports Singtel’s strategy to drive long term earnings growth by maximising the value of 3 its existing regional investmen
Slide 22: Disclaimer
Disclaimer: This material that follows is a presentation of general background information about Singtel’s activities current at the date of the presentation. The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to