Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Investor Day (June 2019)
32 slides from Singapore Telecommunications's investor day presentation, Jun 11, 2019
Slide 1: Scaling our Digital Engines for Growth
Singtel Investor Day 2019 Scaling our Digital Engines for Growth Samba Natarajan CEO, Group Digital Life Jun 11, 2019
Slide 2: Key Questions on your mind
What will it take for Group Digital Life to achieve profitability, and when will this happen? Key Questions What is the plan to crystallize the value of the Group’s digital businesses? on your mind What is Singtel’s appetite for future investments in the digital businesses? What is the plan for Amob
Slide 3: Successful companies are breaking out of traditional industries to build ecosystems
Successful companies are breaking out of traditional industries to build ecosystems Expanded from software to cloud services, hardware, gaming, and business social networks Moving from financial services into B2C commerce, housing, gaming, and others Growing out of publishing into education, adverti
Slide 4: Participating in the digital economy is a non-negotiable strategy
2013 Value of top 10 Telcos was Participating in 70% of Top 10 Internet the digital Companies economy is a non-negotiable 2018 strategy Value of top 10 Telcos was only 20% of Top 10 Internet Companies 4
Slide 5: Particularly when we have a differentiating data proposition
Digital Health Financial Services Singtel Group Particularly Data Assets when we have a differentiating Gaming Advertising Network data Web Intent Location proposition CRM Demographics Entertainment Communication 5
Slide 6: Singtel's Digital Transformation Strategy
Singtel’s Digital Transformation Strategy Partnerships to build the digital ecosystem Digitizing and enhance Building new the core the core standalone operating digital model businesses where we have a right to play 6
Slide 7: We invest in digital businesses that are in fast growing markets
We invest in digital business that are In fast growing markets … where our assets can add significant value >690M Subscribers Customer touch points Carrier billing capabilities Rich telco dataset … and that will eventually move the needle for the Singtel Group 7
Slide 8: GDL Financials
GDL Financials Revenue (S$ millions) EBITDA (S$ millions) 1,289 1,162 626 511 -51 369 -92 -104 -122 184 -137 111 -170 -180 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19 8
Slide 9: Our Vision
Our Vision One of the independent top 3 global digital marketing players, leading at the convergence of TV and digital The leading over the top video platform in SEA and India, creating a million stories for a billion people Software capability that realizes value of our Data, internally for telcos
Slide 10: 10
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Slide 11: Amobee at a Glance
Amobee at a Glance The Business > 2,000 Advertisers Omni-channel platform to automate planning and buying across TV, digital and social > 150 Proprietary audience data for more precise targeting, available even for TV Integrated Partners Powerful, in-depth analytics capabilities to > 900 turn insigh
Slide 12: Amobee Financials
Amobee Financials Revenue (S$ millions) EBITDA (S$ millions) 1,250 31 1,139 1 -16 602 501 -32 -34 348 -45 128 57 -78 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Guidance on FY20: Amobee is expecting to grow its operating revenue by high single digit and improve its EBITDA
Slide 13: Amobee has ambitious plans for the next 3 years
Derive majority of revenues Amobee 1 Completing the shift to programmatic from a scalable programmatic business has Leading the Drive double-digit topline ambitious plans for 2 convergence of Digital and TV CAGR over the next three years the next 3 years Leverage our preferential Improving margins 3
Slide 14: Rebalancing towards programmatic
1 Rebalancing towards programmatic US Digital Ad Spend (US$ billions) Programmatic Digital Display Ad Spend CAGR Non-Programmatic Digital Display Ad Spend 172 19% 151 129 26% 81 109 70 88 59 72 49 36 25 81 91 14% 59 70 46 53 2016 2017 2018 2019 2020 2021 Source: eMarketer 14
Slide 15: The Trade Desk's Historical Valuation
The Trade Desk’s (“TTD”) Historical Valuation TEV in US$ millions 11,000 10,723 40x Total Enterprise Value (TEV) 10,000 Total Enterprise Value (TEV) / Net revenue 35x 9,000 8,000 30x 7,000 25x 20.9x 6,000 20x 5,000 4,000 15x 3,000 8.2x 10x 2,000 5x 1,000 1,262 0 0x September June 2016 2018 15
Slide 16: Few Scaled Players Left beyond GFA
Few Scaled Players Left beyond GFA 2013 2019 74 New Companies 122 Acquired GFA refers to Google, Facebook, Amazon 16
Slide 17: Leading the convergence of Digital and TV
2 Leading the convergence of Digital and TV Premium Content Brand Relationships TV and Digital Convergence is Integrated workflow Inevitable $70B $36B TAM for Linear TV Programmatic Platforms TAM for Digital Targeting technology Video, Addressable Attribution / Analytics TV, OTT 17
Slide 18: US Digital Ad Spend and Converged TV and Digital Ad Spend
US Digital Ad Spend1 Others US Converged TV and Digital Ad Spend1 37% 63% Others 2018: $107b 2020: $170b 46% US TV Ad Spend2 54% 5% Others 95% 2020: $238b 2018: $69b 2020: $68b 1 Digital Ad Spend includes Video ad spend (in-banner, in-stream, and in-text across desktop, laptop, mobile and tablets) 2
Slide 19: Amobee Broadcaster Solutions
Amobee Broadcaster Solutions Supporting Recurrent, Differentiated Broadcasters stable Inventory to go Digital fees 19
Slide 20: Leveraging differentiated data and analytics
3 Leveraging differentiated data and analytics First Party Unique Making Data Data Capabilities Easy to Use Brand Simplified UI/UX Intelligence Telco DataMine Recommendation Analytics Engine Enterprise Preferential Customer Partnerships Data New Data Products 20
Slide 21: And we are committed to realizing value
Private Market Net Rev Multiple 4.6x 3.3x And we are committed 7.9x to realizing value Public Market 20.9x 5.4x 21
Slide 22: 22
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Slide 23: One of 3 independent, at-scale platforms remaining in SEA
One of 3 independent, at-scale platforms remaining in SEA 23
Slide 24: Driving scale through differentiated distribution and improved customer engagement
Driving scale through differentiated distribution and improved customer engagement Cumulative Millions of Total Minutes per Partner downloads Active User (SEA) Integrations *indexed at 100 for 2017 24 115 130 116 90 100 13 6 17 April 2017 April 2018 April 2019 April 2017 April 2018 April 2019 April
Slide 25: AVOD/SVOD
AVOD/SVOD Rolled out freemium layer across SEA Completed new partnership deals and scaled existing channels 25
Slide 26: SEA's leading Digital Platforms, India's leading VOD Apps
SEA’s leading India’s leading Digital Platforms VOD Apps 26
Slide 27: Region where multiple global and regional players are seeking partners
Region where multiple global and regional players are seeking partners in 2020 27
Slide 28: Products addressing 3 key use cases
has built out products addressing 3 key use cases Telco Network Out-of-Home Transport Planning & Capex Optimisation Planning Operations Management 28
Slide 29: FY19 in review
FY19 in review 8 new investments, 11 follow-on investments, 2 exits New investments Follow-on investments Exits Enterprise Security (6) Big Data and AI (4) Fintech (2) Smart/Safe Cities (1) Endpoint threat platform Computer vision and deep learning Autonomous mobile robots Ecommerce (1) 1,098 Startu
Slide 30: New Growth Engines
New Growth Engines Digital Health Fintech An integrated, consumer-centric A mobile-centric digital health platform financial services platform 30
Slide 31: Digital Health
Digital Health ecosystem that Digital simplifies healthcare access Health Employee benefits platform powered by analytics 31
Slide 32: Revisiting the Key Questions
What will it take for Group Digital Life to achieve profitability, and when will this happen? Revisiting the What is the plan to crystallize the value of the Group’s digital businesses? Key Questions What is Singtel’s appetite for future investments in the digital businesses? What is the plan for Am
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