25 th Annual General Meeting Chua Sock Koong Group CEO 28 July 2017 1
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 contained in this presentation that are not historical facts are statements of future expectations with respect to the financial conditions, results of operations and businesses, and related plans and objectives. Forward looking information is based on management's current views and assumptions including, but not limited to, prevailing economic and market conditions. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made. Such statements are not, and should not be construed as a representation as to future performance of Singtel. In particular, such targets should not be regarded as a forecast or projection of future performance of Singtel. It should be noted that the actual performance of Singtel may vary significantly from such targets. “S $ ” means Singapore dollars, "A$" means Australian dollars and “US $ ” means United States dollars unless otherwise indicated. Any discrepancies between individual amounts and totals are due to rounding. 2
Our group strategy VISION To be Asia Pacific’s best communications technology company TRANSFORMATION STRATEGY Strengthen & drive growth from the core | Create innovative, differentiated digital services STRATEGIC PRIORITIES GROUP CONSUMER GROUP ENTERPRISE GROUP DIGITAL LIFE Digital Data OTT Cyber Smart Cloud Data Content Security Cities Marketing Analytics Video GOALS Create sustainable long-term growth | Deliver superior returns to shareholders | Create positive impact on stakeholders 3
Delivering returns from our transformation 5-Year Total Increased Profit Growth Shareholder Return (TSR) 1 Group underlying net profit (S$m) 3,915 CAGR +2% 3,805 3,779 9.4% 9.3% 3,611 3,610 4.4% Straits MSCI Asia Singtel Times Pacific Telco FY13 FY14 FY15 FY16 FY17 Index Index 1. 5-Year TSR from 2012 to 2017 4
Our transformation journey: 5 years on Diversified Earnings Growing New Capabilities Evolving Staff Profile Singtel Group FY17 Revenue $1B Cyber Security 12% Digital $15.7B Staff in Digital GDL & Cyber Security Carriage Businesses Cloud 70% of earnings from outside Singapore Data Analytics 23% New Network Capabilities Staff Age under 30 5
FY17: Strong core performance $16,711m $3,915m 3% 2% UNDERLYING NET PROFIT OPERATING REVENUE $3,853m $3,054m Stable 12% FREE CASH FLOW NET PROFIT 6
Steady dividends Dividend Policy 5-year ordinary dividends Singapore Cents 60-75% of underlying net profit Dividend Payout Proposed final dividend 10.7 10.7 10.7 10.0 10.0 Payable in August 2017 73% of underlying net profit Interim dividend 6.8 6.8 6.8 6.8 6.8 Paid in FY17 Total Dividend January 2017 FY13 FY14 FY15 FY16 FY17 17.5c / share Interim dividend Final dividend 7
Leading the way in Singapore Maintaining Network Superiority Digitalising Customer Service >1,000 Singtel Faster fibre Maintaining #1 4G broadband coverage & speed WiFi hotspots nationwide Extensive suite of self-help options Innovating With New Products & Services Delighting Customers With Digital Content Singtel Dash 8
Game-changing in Australia Video-ready national Seamless Experience mobile network 96.1% 4G coverage Engaging Our Customers Transforming Our Investing In Our Network Through Content Customer Service Digitising our service 9
Group Enterprise: Extending market leadership Core Carriage: Accelerating Growth Engines Leader in APAC Telco Services Leading global managed security services provider Cyber 9 Advanced Singtel Cyber Security Security Operations Security Institute Centre (ASOC) (CSI) Leading trusted Enterprise cloud service provider Accelerate Cloud Data Centre West Customers’ Digital Tier 3+ Standard Transformation Lead partner for Singapore’s Smart Nation program Smart Source: IDC ITMarketScape: Asia/Pacific Next-Generation Telcos: Telecom & Safe Smart Urban Next-Gen Electronic Services 2016-2017 Vendor Assessment, by Nikhil Batra, Hugh Ujhazy, Sandra ERP Ng and Shiv Putcha, February 2017, IDC #AP42353917 Habitat Master Road Pricing System Cities Plan for HDB for LTA 10
Group Digital Life: Growing capabilities & scale Leading OTT video Advanced analytics player Independent service in emerging markets delivering consumer insights global ad-tech leader Rich insights from geolocation data Comprehensive technology stack with acquisition of Turn Expansive content catalogue Growth in revenue and narrowing losses S$m S$m S$m GDL Revenue GDL EBITDA 900 FY13 FY14 FY15 FY16 FY17 FY18e CAGR +54% 626 0 511 600 369 -50 300 184 -100 111 ~ -100 -104 -150 -122 0 -137 FY13 FY14 FY15 FY16 FY17 -200 -170 -180 11
Regional Associates: Forging ahead Global scale of 638 million mobile customers Winning in Data Leaders in Home Markets Strong Returns 23% #1 Associates’ Post Tax Profit Contribution ( S$m) Post Tax Profit from Associates 1,899 CAGR +8% 1,779 45% #1 1,663 1,411 1,402 48% #2 FY13 FY14 FY15 FY16 FY17 46% #1 Cumulative S$12.2b NB: Associates’ subscriber market share dividends: as of 31 March 2017 12
Responsible corporate citizenship We contributed To encourage social innovation, Singtel & ACCOLADES S$17m Optus Future Makers supported 18 start-ups and non-profit in community investment & spent organisations with over No. 1 in Singapore Governance 34,000 & Transparency Index 2016 S$480,000 hours in staff volunteering Best Managed Company in in cash grants Singapore at FinanceAsia’s Asia’s Best Companies Poll We were ranked amongst 100 Our Digital Citizenship 2016 programmes taught digital literacy to Best Managed Board Award – Gold at Singapore Corporate 60,000 WORLD’S MOST Awards 2016 (Companies with SUSTAINABLE S$1 billion and above in market cap) students in Australia CORPORATIONS and Singapore 13
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 parties outside the presentation. It is information given in summary form and does not purport to be complete. It is not to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. This material should be considered with professional advice when deciding if an investment is appropriate.
Recommend
More recommend
