Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — DBS Vickers Pulse of Asia Conference 2022
23 slides from Singapore Telecommunications's conference presentation, Jan 5, 2022
Slide 1: DBS Vickers Pulse of Asia Conference 2022
DBS Vickers Pulse of Asia Conference 2022 Arthur Lang, Group CFO 5 January 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: Singtel: Not just Singapore, not just telco
Singtel Not just Singapore, not just telco 764m mobile customers across Singtel Group Intouch AIS Bharti Airtel 21% of ordinary shares #1 in Thailand Investor in telcos, media & technology #2 in India 23% of ordinary shares Singtel 43.7m mobile customers 32% effective interest 46.0% market share #1
Slide 4: Singtel: Not just Singapore, not just telco
Singtel Not just Singapore, not just telco 795m1 mobile customers across Singtel Group Financial Digibank JV Digital media Gaming Others Health Education Others (Data Insights, Ecommerce, Adtech & etc) 4
Slide 5: Financial Highlights
Financial Highlights 5 5
Slide 6: Improved first half profit
Improved first half profit Half year ended 30 Sep 2021 EBIT Operating revenue EBITDA (before associates’ contributions) S$7,653m S$1,929m S$572m ▲ 3% (Stable1) ▲ 1% (▼ 2%1 ) ▼ 4% (▼ 6%1 ) ▲ 5%2 ▲ 16%2 ▲ 71%2 Regional associates’ PBT Underlying net profit Net profit S$1,009m S$983m S$954m ▲ 17% (▲ 19
Slide 7: Strong contribution from regional associates
Strong contribution from regional associates Share of regional associates’ pre-tax profits (S$’m) 1,009 ▲ 21%1 Airtel – marking a turnaround 833 472 Telkomsel ▲ 1% 1H PBT Focus on quality customers have paid off S$1.0b 467 181 Globe Stable Regulatory reforms to support a more sustainable industry &
Slide 8: Strong financial position
Strong financial position Free cash flow (S$’m) Lead in sustainable financing +4% 1,771 ▪ First telco in Asia Pacific to 1,705 53 NBN & JSS launch sustainability-linked 192 Singapore1 bond framework 309 ▪ Aims to cut greenhouse gas 359 Australia1 emissions by 42% by 20302 213 132 1,167 Associates 1,
Slide 9: Executing to our strategic reset
Executing to our strategic reset 9
Slide 10: Bridging the valuation gap
Bridging the valuation gap Potential Upside S$b Shares trading at significant discount to X 51.6 50.7 SOTP4 38.6 Associates 38.6 Multiple levers to unlock value Current value of Current market Consensus price Potential market equity in value2 target2,3 value Associates1,2 Share price2 S$2.34 S$3.07
Slide 11: Our strategic reset
Our strategic reset To be a leading communications & digital services provider Reinvigorate Capitalise on Reallocate capital, Champion people the core growth trends unlock value & sustainability 11 11
Slide 12: Differentiate & win in 5G
Reinvigorate Differentiate & win in 5G the core Excite & win customers S.E.A. Aquarium 4K Livestream 5G-powered night e-Racing Fastest speeds Recent spectrum wins 5G take-up >200k 5G customers in SG Fastest 5G Mobile Operator in Singapore & Australia for Spectrum wins in SG (2.1GHz) & ~1.5m 5G-capab
Slide 13: Lead in customer experience
Reinvigorate the core Lead in customer experience Champion digital sales & service 45% 75% 29% 83% of sales of self-help of sales of self-help transactions1 transactions1 transactions1 transactions1 Unique products & differentiated services 6 The Optus Living Network Unique SubHub on-demand A platfo
Slide 14: Transform NCS into Asian B2B digital services champion
Capitalise on Transform NCS into Asian B2B digital services champion growth trends Strong digital led growth Revenue1 Digital revenue2 Digital as % of total revenue +9% +36% 48% Creating Australia’s leading cloud specialist NCS NEXT Cloud Acquired cloud Centre of Excellence capabilities (Azure, Laun
Slide 15: Capitalise on Digital ASEAN opportunity
Capitalise on Digital ASEAN opportunity growth trends ~US$18b Merger of Gojek1 & Tokopedia to create largest technology valuation2 group in Indonesia rights issue to capture ~US$2.8b exponential growth in India’s digitalisation & 5G journey Grab-Singtel consortium Applied for awarded provisional Mal
Slide 16: Rapid digitalisation fueling infrastructure demand
Capitalise on Rapid digitalisation fueling infrastructure demand growth trends Sizeable data centre (DC) business Annual revenue1 H1 growth rate1 EBITDA margin >S$250m +20% >60% Building a regional DC platform with scale & quality assets Strategic partnerships ~170MW ~70MW >70MW 30-40 MW Current DC
Slide 17: New cable landing station & data centre in Singapore
Capitalise on New cable landing station & data centre in Singapore growth trends ▪ Integrated landing station & data centre Core 1.1 ha (11,196 m2) Site operati ▪ ons ▪ Adjacent site to current Tuas cable landing station ▪ Projected 30-40MW data centre capacity Capacity & ▪ Focus on energy efficienc
Slide 18: Drive monetisation & value crystallisation
Reallocate capital, Drive monetisation & value crystallisation unlock value proceeds from divesting ~A$1.9b 70% stake in Australia Tower Network in Oct 21 proceeds1 from divesting ~S$200m 4,000 towers to Mitratel in Sep 21 valuation based on ~US$2.6b US$500m raised from strategic investors1 ~US$2b v
Slide 19: Key achievements
Champion people Key achievements & sustainability Climate change 2,458 1,053 & environment A- leadership score MWh of energy tonnes of carbon for 5th consecutive generated by our solar emissions year panels reduced People & future of work 2021 Gold winner of One of the first Social companies in Bloo
Slide 20: Looking ahead
Looking ahead 20 20
Slide 21: Capital management framework for sustainable dividends & growth
Capital management framework for sustainable dividends & growth FY22 highlights & guidance Medium to long term capital targets Core operations S$0.2b H1FY22 free cash flow1 Capital recycling S$2b (excludes ~A$1.9b from Optus towers divestment3) Continued focus on profitable growth Regional associate
Slide 22: Progressing on our strategic reset
Progressing on our strategic reset Core operations poised for growth: ▪ Gradual re-opening of economies & resumption of cross-border travels 5G ▪ Increased 5G adoption & rollout of commercial services Favourable trends from digitalisation provide immense market opportunities Opportunities in the eme
Slide 23: 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
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