Slides
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Financial Results For the full year ended 31 Mar 2025 Yuen Kuan Moon, Group CEO 22 May 2025
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2 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 and are subject to known and unknown risks and uncertainties, some of which are outside Singtel’s control, that could cause actual results, performance or events to differ materially from those in the statements as originally made.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. No reliance should therefore be placed on these forward-looking statements, which are based on the current view of the management of Singtel on future events. The presentation is also 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. “S$” means Singapore dollars and "A$" means Australian dollars. Any discrepancies between individual amounts and totals are due to rounding. Forward looking statement – Important note
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3 1. Comprising 12.3cts core & 4.7cts value realisation dividend (VRD). 2. On constant currency terms. SG Positioning for strong DC demand Sustained value realisation Underpin higher returns Underlying NPAT Strong EBIT growth +55% +39% Cost optimisation ~$250M Scaling up savings Asset recycling proceeds 17cts 1 +13% +9% (+11% 2 ) EBIT (ex assoc ) +20% driven by Optus & NCS Regional Assoc PAT +7% 2 FY25 achievements Lift business performance Active capital management S$1.9B
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4 Enhancing shareholder value through capital management Core dividend 12.3cts Value Realisation Dividend (VRD) 4.7cts Value Realisation Share Buyback (VRSB) Up to S$2B Over the course of 3 years till FY28 Total dividend of 17cts
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5 | 5 FY25 business highlights Prepaid subs largely driven by amaysim Network sharing goes ‘live’ Champion people & sustainability Extended Global Delivery Network via JV with Globe Reduction in GHG emissions Scope 1&2 Launched Responsible Procurement Policy DC Tuas in SG SG New growth Mobile growth Expansion Branded Postpaid ARPU +3.4%2 1. IoT: Internet of Things; CPaaS: Communications Platform-as-a-Service. 2. Excludes Wholesale MVNOs. ~50% ~14% Received the President’s Volunteerism & Philanthropy Awards4 Rated with highest all-rounder score by Analysys Mason Industry-leading Cyber Quantum Safe Solutions +40% +5.0%3 ~80% Thai DC presold capacity Enterprise revenue growth in IoT1 and CPaaS1 3. Excluding transfer of Circles.Life’s customers to amaysim. 4. Under Organisations of Good (Large Enterprise) category. Unified, AI-enabled self-serve Enterprise portal driving key strategic wins
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6 | 6 FY25 financial highlights Stable (Stable1) S$14.1B ▲ 5% (▲ 6%1) S$3.8B ▲ 20% (▲ 20%1) S$1.4B ▲ 4% (▲ 7%1) S$1.8B ▲ 9% (▲ 11%1) S$2.5B ▲ 405%3 (▲ 412%1) Net profit S$4.0B Ex Trustwave1 ▲1% Ex Trustwave1 ▲ 5% Ex Trustwave1 ▲ 15% (basis for core dividend payout) 1. On constant currency basis. 2. Underlying ROIC excluding exceptional items is 9.8%. Operating revenue EBITDA EBIT (ex assoc contribution) Regional associates’ PAT Underlying net profit ROIC 7.3% (FY22) 8.3% (FY23) 9.3% (FY24) 9.6%2 (FY25) 3. Including Comcentre divestment gain of S$1.3B in FY25, compared to exceptional gain of S$2B from Tsel dilution & Airtel partial stake sale as well as non-cash impairment charges of S$3B in FY24.
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7 | 7 Broad-based growth1 from key businesses 167 72 77 -99 13,884 FY24 14,173 FY25 14,128 14,146 Satellite project-based deployment revenue Trustwave Impact of forex fluctuations NCS: Fuelled by Gov+ Nxera: Driven by price uplifts, reservation fees & utility pass- through Optus: Mobile service growth Revenue (S$M) +2% FY25 revenue growth 1. Excluding Trustwave & satellite project-based deployment revenue.
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8 Strong Optus performance A$8,177M ▪ Mobile service revenue increased 4% on postpaid repricing ▪ EBITDA up 6% & EBIT rose 55% o Improved mobile performance o Cost management A$446M YoY ▲ 55% SG ▪ Mobile service revenue flat; roaming & IoT offset by legacy decline ▪ EBITDA up 2% & stable EBIT o SME & ICT growth; cost-out o Offset by higher amortisation from acquisition of 700Mhz spectrum S$3,808M S$833M YoY StableYoY ▼ 2% Revenue EBIT Revenue EBIT YoY ▲ 1%
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9 Continued solid NCS growth S$2,979M YoY ▲ 5% ▪ Revenue uplift supported by Gov+ ▪ Higher margins driven by improved delivery margin & cost optimisation ▪ Robust bookings of S$3.2B in FY25, up 5% S$254M YoY ▲ 39% ▪ Revenue growth underpinned by Nxera’s customer reservation fee & utilities pass through ▪ EBIT impacted by lower project-based satellite revenue & investment in Enterprise Platforms & RE:AI S$434M S$65M YoY ▼ 9%YoY ▲ 5% Revenue EBIT Revenue EBIT Digital InfraCo Nxera ▲ 9% Nxera ▲ 12%
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10 Regional associates' higher PAT driven by TH & IN S$M 117 466 703 222 221 395 455 628 545 -144 -237 FY24 68 FY25 Telkomsel AIS & Intouch Globe Airtel (India) Airtel (Africa & South Asia) Airtel (BTL) 1,685 1,756 ▲ 4% (▲ 7%1) S$46M adverse impact from stronger SGD ▼ 13% (▼ 9%1) Stable (▲ 3%1) 1. On constant currency basis. ▲ 51% (▲ 55%1) ▲ 15% (▲ 14%1) ▪ Telkomsel: Continued mobile competition, mitigated by FBB growth ▪ AIS: Strong mobile & FBB growth momentum driven by economic recovery & ARPU uplift ▪ Globe: Controlled cost & improved Mynt, offset by higher depreciation & interest ▪ Airtel: Market repair led by mobile price increase effective Jul 2024 o Airtel India PAT up 55%1 o Partially offset by higher BTL cost (interest & dividend tax) ▲ 4% (▲ 7%1) S$1,756M ▼ 42% (▼ 41%1) Regional associates’ PAT
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11 Robust balance sheet S$9.4B (Mar 24: S$7.8B) Strong cash flows from multiple sources Net debt 1.5x (Mar 24: 1.3x) Net debt to EBITDA & assoc PBT 18.1x (Mar 24: 17.8x) Interest cover 88% (Mar 24: 88%) Fixed rate debt 1,085 1,095 663 973 569 324 160FY25 176FY24 Optus FCFSG FCFAssoc div 4,330 3,939 +10% Intouch special dividend S$M ▪ Solid financial position o Cash balance of S$2.8B2 o Debt is largely hedged into fixed rates o Average cost of debt: ~3.5% o Average total debt maturity: ~4 years ▪ Higher net debt mainly due to spectrum payments by Optus & ST SG ▪ Limited exposure to US$ o All foreign currency borrowings hedged into functional currencies ▪ FCF was impacted by higher capex in SG & one-off S$0.2B tax payment 1. FCF: Cash flow from operating activities, including dividends from associates, less cash capital expenditure. 2. Comprised cash & bank balances & fixed deposits as at 31 Mar 2025. Tsel special dividend Asset recycling proceeds S$1.9B of cash recycledFCF1
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12 FY26 priorities
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13 Successfully delivered FY25 guidance 1. Based on average exchange rate of A$1: S$0.8845. 2. Gross savings before impact of inflation. EBIT growth rate (Ex assoc contributions) High-teens to low 20s1 20% Annual cost savings2 (FY24-26 for Singtel SG & Optus) S$0.2B1 On track Regional Associates’ dividend S$1.3B S$1.3B Capex S$2.8B S$2.4B FY25 total ordinary dividend of 17cts, above ~16.5cts guidance
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14 Focus for FY26 SG Digital InfraCo ▪ Scale Enterprise business ▪ Strengthen mobile & FBB ▪ Focus on telco APIs, quantum-safe network & 5G slicing ▪ Reinvigorate brand trust & fortify core ▪ Focus on customer value ▪ Simplification & efficiency ▪ Strengthen margins ▪ Continue focus on 3-axis strategy ▪ Gear up for growth in AU ▪ Nxera: Turning on DC Tuas in Jan 2026 & TH DC in Jun 2025 ▪ RE:AI: Forge National Sovereign AI partnerships, grow AI ecosystem ▪ Scale Paragon beyond Asian telcos ▪ Growing fixed broadband & enterprise ▪ Focus on cost optimisation & simplification Regional Associates
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15 Continued cost efficiency 2/3rd of target achieved: Cumulative savings ~S$400M FY23 FY24: ~S$150M FY25: ~S$250M Cost out target: S$600M1 Operational efficiency • Product & portfolio simplification • Workforce optimisation; streamlined structure • Network & IT cost rationalisation Corporate cost reduction • Procurement & third-party spend optimisation • Holistic shared service efficiencies AI, digitalisation & automation • AI chatbots & virtual assistants • Improved self-service capabilities FY26 cost out initiativesCost out initiatives launched • Further simplification of products • System & process efficiencies • Continued procurement optimisation FY26 1. Gross savings before impact of inflation.
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16 FY26 guidance 1. Based on average exchange rate during FY2025 of A$1: S$0.8725. 2. Gross savings before impact of inflation. EBIT growth rate (Ex assoc contributions) High single digits1 Annual Cost savings2 (Singtel SG & Optus) S$0.2B Regional Associates’ dividend S$1.0B3,4 Capex S$2.5B Reiterating our low double-digit ROIC target in the mid-term 3. Intouch ceased to be an associate on 1 April 2025. Singtel received S$0.3B in dividend from Intouch in FY25. 4. Dividends from Gulf Development are excluded and will be reported separately.
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17 Capex outlook 1. A$1.4B in FY25 actual & A$1.3B in FY26F. 2. Rest of Singtel Group. 0.6 0.5 0.6 1.0 0.7 0.8 1.21 FY25 guidance 1.21 FY25 actual 1.11 FY26 outlook 2.8 2.4 2.5 Core capex Growth capex 3. Fully funded by external capital partners and advance satellite receipts from customers. FY26 core capex FY26 growth capex ▪ Optus: Rebalancing of capex, broadly in line with prior year ▪ ST SG: Capex on network & subsea cables expected to increase ▪ Scaling up Nxera’s regional DC3 & satellites ▪ Investments in AI S$0.6B fully funded (AU) (ST2) (AU) (ST2)(ST2) (AU) S$B
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18 Active capital management: From assets to advantage Arthur Lang, Group CFO 22 May 2025
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19 5.1 4.5 4.6 5.2 5.6 2.4 4.8 5.3 6.0 6.7 FY21 FY22 FY231 FY24 FY25 7.5 9.3 9.9 15.0 17.0 Strategic reset Ordinary Dividends declared (S cts) Singtel28 (▲13%) Final Interim VRD Core VRD 3.8 Committed to long-term dividend growth 3-year annualised TSR2: 13% vs STI 9% vs MSCI Asia (ex Japan) Telco Index 3% 1. Excludes 5cts/share special dividend declared in FY23. 2. Total Shareholder Return from FY23-25. FY25 total ordinary dividend of 17cts, above ~16.5cts guidance Core payout ratio at 82% of FY25 underlying NPAT FY25 total ordinary dividend: 17cts (12.3cts core & 4.7cts VRD) Core 1.4 VRD 4.7cts Core dividend 12.3cts 3.3
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20 Stepping up on capital management to drive returns 1.9 2.0 2.1 Target set in 2024 for asset recycling in mid-term1 New target for asset recycling in mid-term1 ~6.0 ~9.0 S$B FY25 cash proceeds from recycling Raising pipeline target ▪ Allocated for: o Growth opportunities o Possible debt pay-down ▪ Excess capital to be returned to shareholders: o VRD (3-6cts/share annually) o Share buyback (up to S$2B over 3 years) 1. Next 3 to 4 years. May 25: Divestment of 1.2% stake in Airtel
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21 Delivering sustained value creation for shareholders Underscores our commitment to Singtel28 strategy; Reflects management’s confidence in the Group’s long-term value Over the course of 3 years ▪ Shares bought back will be cancelled; purchases subject to market conditions ▪ Over & above existing dividend1 policy & periodic share buybacks for employee share plans Lift EPS & DPS on sustained basis; drive long-term returns on capital Value Realisation Share Buyback programme Up to S$2B 1. Including Value Realisation Dividend. Funding from excess capital Till FY28
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22 Sustainable returns reflect improving core business & continued capital management Core dividend Between 70% - 90% of underlying NPAT 3-6cts per share annually in the medium term Programmatic VRD 3-year programme of up to S$2B Value Realisation Share Buyback (VRSB) NEW 3-pronged approach to deliver higher returns Reaffirmed Reaffirmed
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23 Reinforcing ST28 strategy Champion people & sustainability • Continued EBITDA & EBIT growth • Further scaling up growth engines • New operating model & investments in innovation Active capital management • Focus on capital recycling • Value creation & unlocking • Dividend policy (core plus VRD), enhanced with inaugural Value Realisation Share Buyback programme Sustained value realisation Dividend + Growth Lift business performance
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24 | 24 Anchored in stability amidst global market volatility Resilient cash flows • Stable & diversified cash generation; no direct impact from tariff war • Disciplined capex • Cost efficiencies Healthy balance sheet • All foreign currency debts are fully hedged • Well-positioned for a benign interest rate environment Commitment to grow dividends on a sustainable basis • Robust asset recycling pipeline reinforces the Group’s flexibility to support higher returns • Value Realisation Share Buyback programme, over & above existing dividend policy, to enhance sustained shareholder returns Multiple growth drivers • Optus building on positive momentum; Singtel SG’s Enterprise expanding internationally • NCS seeing growth in delivery margins • Nxera expected to increase DC capacity by end-FY26
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