Riding the digital wave - Singtel Investor Day 13 June 2018 Chua Sock Koong Group Chief Executive Officer - Singtel Group
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Riding the digital wave
Singtel Investor Day ▪ 13 June 2018
Chua Sock Koong
Group Chief Executive Officer
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results, performance or events to differ materially from those in the statements as originally made.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.
2Our Strategy
Connectivity Digital services ICT
We are enabling
people &
businesses…
Network & spectrum Technology Talent
.. underpinned by
significant
investments…
Customer-centric Lean cost Growth engines
.. as we transform digitalisation structure
ourselves to drive
sustainable growth
in the digital era. Cyber Digital OTT
security marketing video
3We have made good progress with our strategy1
Revenue diversification
S$16.8b S$17.5b Decline in traditional carriage2 business
1%
6% Data services as a % of
-2% mobile revenues
13%
CAGR3 in traditional
18% carriage2 revenue • 62% in Singapore
• 79% in Australia
Robust growth in ICT
Growth drivers
86%
76% 8% CAGR3 in ICT
revenue
• Cyber security
• Smart nation
• Cloud services
Scale in digital
FY14 FY18 61% CAGR3 in digital
business revenue
>S$1 billion in digital
marketing revenues
Digital Businesses
ICT
Traditional carriage 2
1. All figures based on FY18 unless otherwise stated.
2. Comprises Group Consumer & Group Enterprise less ICT.
3. Compound annual growth rate for FY14 to FY18.
4Deepen telco digitalisation
Services
Delighting the
customer
Self-serve
Higher
Livebots/ chatbots
My Singtel/ My Optus efficiency &
apps
lower
operating
Omni-channel costs
Unmanned store E-shop
Revamped shops
5Extend ICT leadership
Group Enterprise ICT revenue
Recognised leader in ICT services in APAC1
S$’b
CAGR Leaders
3.1
+8%
BT Orange
2.5 Singtel
AT&T
2.3 Telstra Vodafone
Major
Verizon NTT Com
players
Tata Communications
Capabilities
GCX
T-Systems
Contenders
FY14 FY16 FY18
Growth Drivers
Participants
Cyber Smart Cloud
Strategies
security nation services
1. IDC MarketScape: Asia/Pacific Next-Generation Telcos: Telecom Services 2018.
6Scaling cyber security to the next level
A leader in global managed
security services1
Progress global
organisation
Drive operational
synergies
Accelerate path
to scale
1. 2018 Gartner “Magic Quadrant for Managed Security Services, Worldwide”.
7Establishing leading ad tech platform
Best technology platform
Gain scale
Working with
>2,000 advertisers
Grow profitability
Revenue EBITDA
>S$1b +ve
8Harnessing scale of our associates
Ecosystem
Digital
Data OTT video
Subs Regional payments
Gaming & eSports
Growing
adoption of data
New content
~700m mobile services
customers Services to meet
consumers’ digital IoT
lifestyles
9Advancing our transformation
Reshaping our revenue
‘Best in class’ execution
Accelerate growth in ad-tech & cyber
17,532
security
24%
Digital services partnerships
76%
New business & capabilities
FY18 FY23E
Non-carriage (ICT & digital businesses)
Traditional carriage
10Delivering shareholder value
20.5
Robust financial position
17.5 17.5
3.0
S$9.8b net debt1
24.9% net debt
Singapore cents per share
gearing2
10.7 10.7 10.7
1.3x
net debt: EBITDA &
share of associates’
pre-tax profits
Expect to maintain 17.5 cents payout
6.8 6.8 6.8
for FY19 & FY20
FY16 FY17 FY18
Interim dividend Final dividend Special dividend
1. Gross debt less cash and bank balances adjusted for related hedging balances.
2. The ratio of net debt to net capitalisation. Net capitalisation is the aggregate of net
debt, shareholders’ funds and minority interests
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