SingTel Mobile Group Asias leading multi-market operator Lucas - PowerPoint PPT Presentation

SingTel Mobile Group Asia’s leading multi-market operator Lucas Chow EVP Consumer Business CEO – SingTel Mobile September 2002

SingTel – Asia’s leading communications company � Focused on maximising value of existing business • Integrated operator Singapore � Fixed data & voice Cash flow � Mobile engine • Clear Market leader • Integrated operator Growth and Australia � Fixed data & voice improving � Mobile returns • Challenger to incumbent • Leading strategic investor in � Thailand Regional Earnings � India mobile driver � Philippines � Indonesia

Asia’s leading multi-market operator � Balance of exposure – developed and developing markets 25m aggregate 10.3m proportionate subs mobile customers Telkomsel SingTel Bharti 7.8M 0.9M 5.4M 21% 0.4M 1.5M 29% AIS 1.7M 4.2M 1.6M 1.6M Optus Globe 28% 1.5M 4.2M 100% 35% 4.2M All information as at Jun 02 except Telkomsel shareholding (increased to 35% in Jul 02) 100%

Optus acquisition doubles revenue base � Business mix now biased to mobile and data – up from 31% to 54% Postal & others 9% IT & Eng Mobile 5% Postal & 34% others Mobile 13% 18% Int'l IT & Eng 13% Data 7% 13% Int'l Nat'l Nat'l 38% 11% 19% Data 20% $4.9bn annualised $9.8bn annualised revenues revenues FY99 Q1 FY03

Group financial profile has been transformed � Positioned for faster growth than “typical incumbent” 63% of proportionate revenues Revenue mix: bias to growth outside Singapore* 54 Belgacom 54 Data & mobile revenue as & others 12% 36 % of total** 32 SingTel Regional 32 30 30 37% mobile 12% Optus 39% TCNZ SBC Telstra Telecom PCCW Verizon SingTel France * Based on 3 months to June 02. SingTel and Optus revenues as per reported results. Others on notional ** Based on last reported full year results except SingTel (3 “proportionate” basis months to Jun 02)

Q1 FY03: Financial highlights � Good progress towards full year goals AA- Group performance NPAT Strong credit $534m on track pre-goodwill ratings A1 Operational Strong free SingTel – cashflow 54% $466m EBITDA margin cashflow engine maintained generation Operational Substantial Optus – challenger 22% 19% EBITDA reduction in focused on returns margin expansion capex:revenue Regional mobile – Mobile Strong earnings 164% 175% earnings driver customers growth* All comparisons with Q1FY02; regional mobile earnings growth excludes exceptionals

Mobile – key growth driver � 36% of proportionate revenues* Markets to grow at 27% CAGR Subscribers up 180% 2001-2006 2001 – 47M 180% 2006 – 157M Singapore 3 4 Regional mobile subscribers 25M Australia 15 11 Indonesia 7 22 9M 24 Philippines 11 Thailand 32 9 India 6 60 Q1 FY02 Q2 FY02 Q3 FY02 Q4 FY02 Q1 FY03 Subscribers (M) in each market– 2001 & 2006 Globe AIS Bharti Telkomsel SingTel Optus Source : SSB * Excludes Belgacom

Quality franchises in balanced competitive environments Presence in rational mobile Profitable market leaders markets 80 Monopoly =1.0 70 Telkomsel EBITDA margin % 60 Herfindahl-Hirschman Index SingTel 50 Globe 0.6 AIS 40 Bharti Optus 30 20 0.2 10 “perfect 0 competition” Philippines Australia Malaysia India Zealand Singapore Indonesia China Thailand Korea Hong Kong Taiwan =0.2 0 20 40 60 80 100 New market share of subscribers % Source: ABN AMRO - India based on average of Bharti * EBITDA margins for each company as at Jun 02 except Bharti (existing licence areas mobile circles margin) and Optus (mobile margin as of Mar 02). AIS adjusted for non cash charges. Bharti market share in existing circles.

Developed markets – Singapore and Australia � 5.7 million customers in total Common characteristics Common strategies • Deregulated market • Focus on profitability and free cash flow • Rational competition by major • Maintain market leadership players • Increase revenue by managing • Low cost 3G spectrum ARPU • Control cost • Sophisticated and highly penetrated � Reduce churn � 74% Singapore � Leverage scale advantages � 64% Australia � Cautious on 3G

SingTel Mobile – Singapore market leader � Healthy margins – positive free cash flow Postpaid 8% mobile revenue growth 9% customers up* Postpaid ARPU 8% $74 stabilising $238m Postpaid churn 1.5% down Acquisition cost 7% down* Q1 FY02 Q1 FY03 * Q1 FY03 vs Q1 FY02

Optus Mobile – Challenger with focus on returns � Healthy margins – positive free cash flow Revenue momentum sustained Customers up* 13% 15% Postpaid ARPU A$63 A$651m stabilising Postpaid churn 1.6% down Acquisition cost 15% down** Q1FY02 Q1FY03 * Q1 FY03 vs Q1 FY02 ** Q1 FY03 vs FY02

Developing markets � Regional mobile contributed 26% of SingTel EBT (Q1 FY03) Successive waves of growth in Pre-paid essential for each market profitable growth 50 Thailand 100 Pre-paid as % of customers Jun 02 Mobile penetration 90 40 80 70 Jun 01 30 Philippines 60 50 20 40 30 Indonesia 10 20 India 10 0 0 1996 2001 2006 Globe Bharti Telkomsel AIS Source: SSB Source: ABN AMRO

Thailand and the Philippines Penetration 20% 16% 62% 54%* Market share Customer growth 159% 58% Revenue growth** 38% 45% SingTel earnings $53m $25m + 48% + 117% contribution*** ** Results for AIS & Globe for 6mths to Jun 02. *** Contribution to SingTel results is for 3 mths to Jun 02, * Estimated revenue share excludes FX items

Indonesia and India Penetration 0.7% 3.7% 52%* 51% Market share Customer growth 128% 93% Revenue growth** 95% 62% SingTel earnings $(10)m $43m loss profit contribution*** * Market share is 52% in existing circles. ** Results for Bharti 3mths to June 02 & *** Contribution to SingTel results is for Overall India is 22% Telkomsel for 6mths to Jun 02. 3 mths to Jun 02

Working together to create value Data expertise shared Aggregate base of 25m across group helps supplier negotiations 80 36% 41 Aggregate subs Data as % of revenue 34 11% 25 11% 9% 16 6 2% Telstra SKT SingTel Unicom DoCoMo Mobile China China Optus Globe Bharti Telkomsel SingTel Grp NTT

Leveraging scale with vendors Capex spend driven by Major vendors growth rates Network Handset Ericsson Ericsson 120 Capex : Revenue % Bharti Motorola Motorola 100 80 Nokia Nokia Telkomsel 60 Nortel Siemens Globe 40 AIS Siemens 20 Optus SingTel Upcoming vendors 0 0 20 40 60 80 100 Huawei Samsung Revenue growth %

SingTel Mobile Group Asia’s leading multi-market operator Lucas Chow EVP Consumer Business CEO – SingTel Mobile September 2002