26 th Annual General Meeting. Chua Sock Koong Group CEO 24 July 2018

Transcription

1 26 th Annual General Meeting Chua Sock Koong Group CEO 24 July 2018

2 Our strategy We are enabling people & businesses Connectivity.. underpinned by significant investments Network & spectrum.. as we transform ourselves to drive sustainable growth in the digital era. Customer-centric digitalisation Digital services Technology Lean cost structure ICT Talent Growth engines Cyber security Digital marketing OTT video 2

3 Changing telco landscape Technology disruption Voice to data substitution OTT providers Rising competition New mobile entrants Mobile virtual network operators Increasing capital requirement Capex and network investment Singtel Group of companies 1 year total shareholder return 1 Singtel -9.5% PT Telkom -11.3% Airtel 17.7% AIS 22.3% Globe -17.1% Key competitors StarHub -15.3% M1-15.1% Regulatory challenges Spectrum auctions Interconnection rates Key indices Telstra -25.8% MSCI APAC ex Japan MSCI APAC ex Japan Telco Index -4.7% Telco Index Straits Times Index 11.0% 3 1. Source: Bloomberg, 3 April 2017 to 29 March 2018.

4 We have made good progress with our strategy 1 Revenue diversification S$16.8b S$17.5b 1% 6% 13% 18% Robust growth in ICT CAGR 3 in ICT 8% revenue S$530 million in cyber security revenue Scale in digital 86% 76% 61% CAGR 3 in digital business revenue >S$1 billion in digital marketing revenues Decline in traditional carriage 2 business FY14 Digital Businesses ICT FY18 2 Traditional carriage -2% CAGR 3 in traditional carriage 2 revenue Data services as a % of mobile revenues 62% in Singapore 79% in Australia 4 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.

5 Record earnings on NetLink Trust divestment gains Strong core execution and growth in digital services S$17,532m OPERATING REVENUE 5% S$5,089m 2% EBITDA S$2,304m 13% SHARE OF REGIONAL ASSOCIATES EARNINGS S$3,544m UNDERLYING NET PROFIT 8% S$3,606m FREE CASH FLOW S$5,451m 18% 42% NET PROFIT 5 1. All figures based on FY18.

6 Delivering sustained returns 1 Ordinary dividend as % of underlying net profit 74% 74% 73% Dividend per share (cents) % % Dividend policy: 60-75% of underlying net profit FY18: 17.5c FY19 & FY20: ordinary dividend + 3c special dividend Maintain 17.5c payout FY14 FY15 FY16 FY17 FY18 Interim dividend Final dividend Special dividend Robust financial position S$9.8b net debt 2 1.3x net debt2 : EBITDA & share of associates pretax profits 6 1. All figures based on FY18 unless otherwise stated. 2. Gross debt less cash and bank balances adjusted for related hedging balances.

7 Serving the digital customer in Singapore Singapore Consumer S$2,426m S$2,295m Revenue S$2,315m Excite customers with digital services EBITDA S$709m S$774m S$757m Big data offers Digital content Digital lifestyle Mobile market share % 49.8% 48.9% Omni-channel shopping experience Unmanned shops E-shop Revamped shops FY14 FY16 FY18 1. Mobile market share was based on Telco operators published results. 7

8 Positioned for growth in Australia Australia mobile customers ( m) Lead in customer experience My Optus app Revamped store Big data analytics Doubling of SMB footprint Lead in mobile networks Best in test in Australia 1 A$1b in rural & regional Australia 5G fixed wireless commercial launch in 2019 Differentiate with exclusive premium content Lead in business productivity FY14 Postpaid handset FY16 Prepaid handset FY18 Mobile BB Operational excellence BOTS Lean & agile organisation Simplify process & products 1. Based on P3 test in December P3 is a global company which performs independent measurement of mobile network performance. 8

9 Empowering enterprise & government digitalisation Group Enterprise ICT revenue A leader in ICT services in APAC 1 CAGR +8% S$3.1b S$2.3b S$2.5b #1 ICT Provider in Singapore 2 #1 Market Leadership 3 APAC Enterprise Data Services #1 International IPVPN in APeJ IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor s position within a given market. The Capabilities score measures vendor product, go-to-market and business execution in the short-term. The Strategy score measures alignment of vendor strategies with customer requirements in a 3-5-year timeframe. Vendor market share is represented by the size of the icons. Cyber security Smart nation Cloud services 9 FY14 FY16 FY18 1. IDC MarketScape: Asia/Pacific Next-Generation Telcos: Telecom Services Gartner IT Services, Apr IDC Telecom Services Database Asia-Pacific 1H2017, Jan Frost & Sullivan 2016 Asia Pacific Telco Cloud Service Provider of the Year. Top 5 global cyber security service providers among Telcos Largest Smart Nation ICT Partner in Singapore Best Telco Cloud Provider in APAC 4

10 Scaling cyber security to the next level A leader in global managed security services 1 Progress global organisation Drive operational synergies Accelerate path to scale 10 Advanced security ops 10 centres Cyber security >2k experts Gartner Magic Quadrant for Managed Security Services, Worldwide.

11 Creating new growth engines Group Digital Life revenue S$1,163m , $1B S$511m Employees Advertisers Offices Revenue S$184m FY14 FY16 FY18 Group Digital Life EBITDA 5 markets in Asia >20m downloads #1 in Indonesia -S$51m Applications -S$170m -S$137m data to actionable insights Retail Transport Telecoms FY14 FY16 FY All figures based on FY18 unless otherwise stated.

12 Harnessing scale of associates Ecosystem Digital Data OTT video Subs Regional payments Gaming & esports >650m mobile customers Growing adoption of data services Services to meet consumers digital lifestyles New content IoT 12

13 Creating value for our community Accolades #1 in Singapore Governance and Transparency Index 2017 #1 in ASEAN Corporate Governance Scorecard 2018 for Singapore Special Recognition Award for Board Diversity at Singapore Corporate Awards 2017 Global 100 Most Sustainable Corporations in the World 2018 World s Most Ethical Companies 2018 Top Singapore company on Forbes Top Regarded Companies 2017 Responsible Corporate Citizen We invested S$31m in learning and development to train staff in Singapore and Australia and our staff clocked a total of 627,000 training hours We contributed S$17m to the community, and spent 27,628 hours in staff volunteering ReCYCLE, our e-waste recycling programme with SingPost, collected 9,677kg (net weight) of e-waste since its launch in Singapore in June 2017, 250% more than in previous years 13

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