SingTel: Asia’s Leading Communications Company 8 th January 2008 Francis Heng Group CFO
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that could cause actual results, performance or events to differ materially from those in the statements as originally made.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
Agenda � SingTel Group introduction � Singapore – SingTel � Australia – Optus � Regional Mobile � SingTel Group investment strategy & capital structure 3
SingTel Group introduction
SingTel Group: Asia’s Leading Communications Company � Largest company in Singapore by revenues, earnings and market capitalisation (~S$64 billion 1 on SGX) � Asia’s largest multi-market mobile operator with operations in emerging & mature markets � Strong cash flow and track record of high cash returns to shareholders SingTel � leader in Singapore telco market Optus � leading challenger in Australia Regional � driving growth in Asia mobile 5 1. As at 31Dec 2007
SingTel Group: successful transformation Proportionate revenue Proportionate EBITDA 76% 74% outside Singapore 1 outside Singapore 2 1% 1% Others Others Australia Australia Regional Mobile 27% 35% 30% Regional 43% 48% Mobile 24% 26% Singapore Singapore 1. Consolidated revenue plus proportionate share of associates – 6 months to Sep 07 2. Consolidated EBITDA plus proportionate share of associates – 6 months to Sep 07 6
SingTel Group: major mobile operator in Asia SingTel Group’s Asian footprint Total mobile subscribers 158m 30% CAGR: 40% CITYCELL Mobile subscribers (m) 45% 21% 158 45% 101 74 56 41 30% 100% 'Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 35% 100% 7 Numbers denote ownership status as at Sep 07
SingTel Group: strong track record Improving returns on invested Sustained profit growth capital Underlying Net Profit After Tax 1 Returns on Invested Capital Returns on Invested Capital Underlying NPAT ($Sm) 18.3% 3,556 17.2% 3,295 16.2% 3,060 FY05 FY06 FY07 FY05 FY06 FY07 1. Excluding exceptionals and IDA compensation 8
Singapore - SingTel
SingTel : leading and shaping the market in Singapore Integrated telecom operator Revenue composition Mobile Comms IT & � No. 1 mobile service provider Engineering 27% 13% � No. 1 broadband service provider � No. 1 national telephone service 14% Data & International 29% provider Internet telephone 9% � Full range of voice, data, Internet and 8% National ICT solutions for corporates telephone Others 1 1H FY08 10 10 1. Mio TV, maritime & land mobile revenue, lease of satellite transponders, paging services and other misc revenue
Mobile: strong growth in new subscribers 1H FY08 mobile subscribers Strong market share 25% Mobile subscriber market share 2.1 Prepaid subs Mobile subscribers (mil) 1.7 Starhub SingTel 348K 31.9% 40.3% Postpaid subs M1 83K 27.8% Sep 07 1H FY07 1H FY08 Key Mobile Drivers: � Postpaid : Stimulate usage of data services � Prepaid : Address growing population and foreign worker segment 11
Data & Internet: enhancing value proposition Consumer Broadband: Corporate Data: Maintain leadership Grow IP and Managed Services Subscribers market share 1 - 1H FY08 30 25 IP-VPN 34% growth YOY 20 Starhub 46% S$mil SingTel 15 54% Managed Services & Hosting 10 30% growth YOY 5 0 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 Key Drivers Key Drivers � leverage on SingTel’s extensive � no frill plans for lower speeds coverage, and 37 global offices � upsell applications from basic worldwide Internet to integrated service � deliver data security, scalable bundle (mio) network on cost-effective terms 12 1. Total subscribers data from Infocomm Development Authority of Singapore
Fixed line: rejuvenating fixed services mio mio TV � bundles mobile, broadband, � leverages our leadership in telephony entertainment & telephone services and broadband � maximises value of existing � transforms the home telephone infrastructure socket into gateway to a world of: � provides flexibility and greater value � communication to consumers � infotainment � other possibilities Number of mio TV Number of mio 10K 42K customers 1 customers 1 S$30m Capex in first year 95% DEL market share 1 13 1. As at Sep 2007
Australia - Optus
Optus : leading challenger in Australia Revenue composition 1 Only integrated scale challenger Strong overall position Consumer & SMB Fixed � No. 2 national mobile service provider No.1 in metro – opportunity in regional 21% � No. 2 fixed line / broadband service provider 24% Business & Accelerating fixed on–net share to improve scale & profitability Mobile Wholesale 55% Fixed � No. 2 in Corporate market Gaining share in rapidly growing Data & IP- VPN segment, expansion of ICT & managed 1H FY08 services � No.1 Satellite provider Two of three new D-series now in orbit 1. Excluding inter-divisional elimination 15
Optus Mobile: build on and exploit mobile scale Mobile subscriber market share 1 Disruptive product offerings � Optus strong no 2 position Hutch, 7% � stimulate mobile usage - ‘yes time’ Voda, 18% - Capped plans Telstra, 43% � launch of Australia’s first fixed telephony & broadband bundled product - over 3G network � re-launching Optus Wireless Broadband plans - to capture the fast growing wireless broadband Optus, market 33% Drivers � Continue to exploit incumbent’s dilemma with disruptive offerings � Extending 3G HSPA network to cover 96% of Australia population (by end 2008) JPMorgan Australian Mobile market report 10 th Sep 07 16 1.
Optus Fixed: On net expansion to improve scale and profitability Broadband subscriber market share 1 Attack incumbent’s fixed profit pool � Optus strong No 2 position EBITDA FY06/07 Optus & others 100% Others, Optus & 24% 80% others AAPT/ 60% Telstra, Powertel, 47% 4% Telstra 40% Primus, 3% 20% Telstra iiNet, 4% 0% Optus, Fixed Voice & Mobile 18% Data Drivers � On-net expansion to improve scale and profitability � Leverage new products and new technologies - “disruptive” products �Innovative fixed line “caps” – Australia’s 1 st home phone and broadband cap (Fusion) �compete vigorously in Australia’s fast growing wireless broadband market 17 JPMorgan Australian Broadband market report 5 th Sep 07 1.
Regional Mobile
Regional Mobile: world’s fastest growing mobile markets Sept 2007 PBTL Country India Bangladesh Indonesia Pakistan Philippines Thailand Effective 30.5% 45.0% 35.0% 30.0% 44.5% 21.4% stake (%) Market #1 #5 #1 #4 #2 #1 position Market 23% 4% 53% 17% 38% 48% share (%) 77% 55% 44% 35% 23% 18% Mobile penetration Mobile subs 48.9m 1.3m 44.5m 11.9m 19.2m 23.2m & y-o-y (+81%) (+75%) (+37%) (+100%) (+33%) (+31%) growth (%) 19
Regional Mobile: increasing earnings & dividends Net profits 1 Dividends as % of profits 2 55% 26% 2 nd instalment of Telkomsel’s FY2006 final dividends expected in Dec 2007 quarter 713 910 Net profits after tax (S$ m) Telkomsel 497 722 Telkomsel Dividends (S$m) 3 Bharti AIS AIS Globe Globe H1 FY07 H1 FY08 H1 FY07 H1 FY08 1. YoY comparison between H1 FY08 and H1 FY07, excluding exceptionals 2. Based on share of regional mobile post tax earnings for 6 months to Sep 07 20 3. Net of withholding taxes
SingTel Group investment strategy & capital structure
SingTel Group: investment strategy Case study: Investment strategy Warid Telecom Pakistan Focus in Asia while exploring new markets Country � Up stake in existing associates Pakistan has large population base of over 160m and low � Assess large under-penetrated markets cellular penetration Long term, pragmatic approach Strong partner � Strong partner Abu Dhabi Group is one of the � Governance rights & board rep largest foreign investor in Pakistan � Shareholder agreements Add value Add value Synergistic partnership leveraging � Strategic telco partner on SingTel’s expertise in emerging � Cross-sharing of ideas markets � Procurement & other synergies 22
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