Financial results presentation Q4 FY08: Quarter ended 31 March 2008 - PowerPoint PPT Presentation

Financial results presentation Q4 FY08: Quarter ended 31 March 2008 FY08: Full Year ended 31 March 2008 14 th May 2008

Forward looking statements - 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that could cause actual results, performance or events to differ materially from those in the statements as originally made.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$” means Singapore dollars and "A$" means Australian dollars unless otherwise indicated. Any discrepancies between individual amounts and totals are due to rounding. 2

Asia’s Leading Communications Company Chua Sock Koong Group CEO

Group FY08: strong revenue and earnings growth Underlying EPS 1 Revenue Group performance 11% 17%  23.15¢ Operational Revenue Singapore 3% 11% EBITDA Operational 4% A$2bn Revenue 2 Optus EBITDA Customers 3 Regional Mobile Earnings up 4 185m 29% 1. Excludes exceptional items, currency translation gains, exceptional tax items & IDA compensation 2. In A$ terms 3. Group mobile subscribers, including SingTel, Optus and Regional Mobile associates 4 4. Based on Group’s share of Regional Mobile associates earnings before tax and exceptionals. Also excludes the additional quarter of Globe’s results recorded in Q1 FY07

Increase in full year ordinary dividend Total cash distribution Cumulative payout since 2000 1 S$22bn 12.5¢ per share � 82% of NPAT Shareholder payout (S$bn) 2 Interim dividend 5.6¢ � paid Jan 08 2.3 3.0 1.5 6.9¢ 1.9 Proposed final dividend 0.8 1.2 1.1 1.1 1.7 1.3 1.1 1.0 1.0 0.9 0.9 0.8 0.7 54% Payout ratio 2000 2001 2002 2003 2004 2005 2006 2007 2008 Ordinary final dividend Special dividend Ordinary interim dividend Capital reduction 1. Cash distribution as % of NPAT 5 2. All dividends paid after the FY07 interim dividends are one-tier exempt dividends without tax credits

Group FY08: strong earnings growth YoY 12 months to 12 months to S$m Mar 08 Mar 07 % change Operating revenue 14,844 13,377 11.0% Operational EBITDA 4,530 4,282 5.8% - margin 30.5% 32.0% NM Associates (ex exceptionals) 2,591 2,072 25.0% IDA compensation - 337 NM EBITDA 1 7,089 6,692 5.9% 3,960 3,779 4.8% Net profit Exceptional Items 103 185 (44.2%) Underlying net profit 2 3,681 3,219 14.3% Underlying earnings per share 2 23.15 19.81 16.9% 6 1. Operational EBITDA+IDA compensation+share of results of associates 2. Excludes exceptional items, currency translation gains, exceptional tax items & IDA compensation

Group Q4 FY08 highlights Proportionate EBITDA 1 77 % Highlights outside Singapore � record growth in 244k mobile subscribers SingTel Optus � submarine cable investment Q1 2010 completion 32% 44% � strong mobile customer 135k acquisitions Optus Regional � strong on-net broadband 23 % 705k Mobile customer growth as at Mar 08 SingTel Regional � impressive subscriber growth 14m Mobile 1. Based on 3 months to Mar 08 7 7

Group Q4 FY08: sustained momentum YoY 3 months to 3 months to 3 months to Sequential S$m Mar 08 Mar 07 Dec 07 % change % change 3,758 3,384 11.0% 3,825 (1.8%) Operating revenue Operational EBITDA 1,155 1,096 5.4% 1,136 1.7% - margin 30.7% 32.4% NM 29.7% NM 646 561 15.1% 656 (1.6%) Associates (ex exceptionals) - 84 NM - - IDA compensation 1,801 1,723 4.5% 1,777 1.3% EBITDA 1 1,093 989 10.5% 952 14.8% Net profit Underlying net profit 2 968 886 9.2% 931 3.9% 1. Operational EBITDA+IDA compensation+share of results of associates 2. Excludes exceptional items, currency translation losses, exceptional tax items & IDA compensation 8

SingTel

SingTel FY08: exceeded targets FY08 Targets FY08 outcome  � Revenue to grow at single-digit level Revenue S$4,904m 11% � Operational EBITDA (ex strategic initiatives)  S$1,996m 5% comparable to previous year  46.5% Telecoms margin � Telecoms margin at mid-40% level  Overall margin 40.1% � Overall EBITDA margin at 40% � Capex as % of revenue at low double digit  Capex: revenue 9% level Free cash flow � Free cash flow (ex associates dividend) to  10% decline slightly S$1,422m 10

SingTel: double digit revenue growth YoY Q4 FY08 Highlights Change � strong telco & IT revenue growth Revenue S$1,290m 12% � S&A :increased mobile customer acquisitions & higher unit acquisition / retention costs Operating 18% S$835m � cost of sales :higher IT & equipment sales expenses � staff costs :higher headcount & salary adjustments Op EBITDA � strong revenue growth offsets higher expenses S$469m 1% 42.5% � telco margin : higher selling expenses & strategic initiatives Singapore 4% pt 37.4% margins 1 � IT margin 12.2% 11 1. Excludes International Business and Group corporate costs of S$14m

SingTel: growth across multiple platforms Revenue YoY Q4 FY08 Highlights (S$ m) Change � growth across telco and IT business Total revenue 1,290 12% � strong corporate data and broadband growth Data & Internet 356 12% � strong growth in customer base Mobile 339 15% � higher data usage as % of revenue � higher contributions from systems and network IT & Engineering 217 16% integration projects International 3% � assisted by strong economic performance 156 telephone � higher equipment sales Others 8% 222 � higher satellite revenue 12

Data & Mobile: winning share in growth segments Broadband - Q4 net adds Mobile – Q4 net adds 19K 244K Market share 1 ARPUs increased YoY: 54% � maintained market leadership � postpaid � prepaid $88 $16 2.57 Prepaid 693 2.33 Q4 2.13 647 631 Wireless 1.95 1.82 Broadband subs ('000) @SG 1.77 207K 579 customers 2 Mobile subs ('m) 484 490 433 Postpaid 471 455 Q4 438 421 405 37K 3Q FY07 4Q FY07 1Q FY08 2Q FY08 3Q FY08 4Q FY08 3Q FY07 4Q FY07 1Q FY08 2Q FY08 3Q FY08 4QFY08 13 1. As at 31 Mar 08 2. Unique Wireless@SG customers who do not subscribe to SingTel’s residential broadband services

Fixed: leveraging with mio International telephone Repositioning residential business “Free IDD” promotions for prepaid mobile 8% National telephone plans drove higher traffic and lower rate 0.37 0.36 95% Fixed market share 2 IDD outgoing mins (m mins) 1 0.31 Ave collection rate (S$/min) 1 0.29 0.26 0.24 0.21 mio plan mio TV 67K 44K customers customers 323 368 532 409 463 278 291 Bid for fibre-to-the-home OpenNet network 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY07 FY07 FY07 FY08 FY08 FY08 FY08 1. Excludes Malaysia 2. Includes DEL and mio voice. As at 31 Mar 08 14

Optus

Optus FY08: delivered targets FY08 Targets FY08 Outcomes � Revenue growth comparable to  Revenue A$ 7,760m 4% market growth  1 % � Maintain EBITDA Op EBITDA A$2,002m A$1,130m  �Capital expenditure of $A1.1bn Capex: revenue 15%  �Free cash flow to increase slightly Free cash flow up 22% A$903m 16

Optus: growing sustainable revenue and profits Revenue YoY Q4 FY08 Highlights A$m change � High mobile customer adds offset termination Total revenue 1,935 rate decline and exit from consumer fixed line 5% resale � Solid net adds – uplift from wireless broadband 7% Mobile 1,088 � Strong outgoing service revenue � Expanding 3G HSPA coverage Business & Wholesale � Gaining profitable market share 477 10% Fixed � Solid progress in Data & IP Consumer � Lower resale volumes/revenue 373 7% & SMB Fixed � On-net focus & ULL growth improve margin 17

Mobile: driving net adds with wireless broadband & caps Strong net adds Mobile revenue growth 7% 135k  postpaid net adds 87k +7% Quarterly ARPUs 1,088 1,022 � postpaid � prepaid A$26 A$67 Equipment 28% 146 114 Mobile revenue (A$m) Total data % of ARPU 29% Outgoing � non-sms data % of ARPU 6% 7% 754 702 SAC stable sequentially $145 � up 25% YoY Incoming 9% 206 189 Q4 FY07 Q4 FY08 EBITDA margin 35%  up 3% points sequentially 18