e se ntation e nde d 31 De c 2008 e b rua ry 2009 10 F e sults - - PDF document

10 F e b rua ry 2009

F inanc ial r e sults pr e se ntation

Q3 F Y09: Quar te r e nde d 31 De c 2008

2

F

• r

war d looking state me nts - impor tant note

T he fo llo wing pre se nta tio n c o nta ins fo rwa rd lo o king sta te me nts b y the ma na g e me nt o f Sing a po re T e le c o mmunic a tio ns L imite d ("Sing T e l"), re la ting to fina nc ia l tre nds fo r future pe rio ds, c o mpa re d to the re sults fo r pre vio us pe rio ds. So me o f the sta te me nts c o nta ine d in this pre se nta tio n tha t a re no t histo ric a l fa c ts a re sta te me nts o f future e xpe c ta tio ns with re spe c t to the fina nc ia l c o nditio ns, re sults o f o pe ra tio ns a nd b usine sse s, a nd re la te d pla ns a nd o b je c tive s. F

• rwa rd

lo o king info rma tio n is b a se d o n ma na g e me nt's c urre nt vie ws a nd a ssumptio ns inc luding , b ut no t limite d to , pre va iling e c o no mic a nd ma rke t c o nditio ns. T he se sta te me nts invo lve kno wn a nd unkno wn risks a nd unc e rta intie s tha t c o uld c a use a c tua l re sults, pe rfo rma nc e o r e ve nts to diffe r ma te ria lly fro m tho se in the sta te me nts a s o rig ina lly ma de . Suc h sta te me nts a re no t, a nd sho uld no t b e c o nstrue d a s a re pre se nta tio n a s to future pe rfo rma nc e o f Sing T e l. I n pa rtic ula r, suc h ta rg e ts sho uld no t b e re g a rde d a s a fo re c a st o r pro je c tio n o f future pe rfo rma nc e o f Sing T e l. I t sho uld b e no te d tha t the a c tua l pe rfo rma nc e o f Sing T e l ma y va ry sig nific a ntly fro m suc h ta rg e ts. “S$” me a ns Sing a po re do lla rs a nd "A$" me a ns Austra lia n do lla rs unle ss o the rwise indic a te d. Any disc re pa nc ie s b e twe e n individua l a mo unts a nd to ta ls a re due to ro unding .

Asia’s L e ading Communic ations Company

Chua So c k K

• o ng

Gro up CE O

Unde rlying NPAT

Gr

• up pe r

for manc e

Re ve nue

Q3 F Y09: str

• ng pe r

for manc e in Singapor e and Austr alia

1. E xc lude s Gro up a nd I nte rna tio na l Busine ss c o rpo ra te c o sts 2. I n A$ te rms 3. Gro up mo b ile sub sc rib e rs, inc luding Sing T e l, Optus a nd Re g io na l Mo b ile a sso c ia te s 4. Ba se d o n the Gro up’ s sha re o f Re g io na l Mo b ile a sso c ia te s e a rning s b e fo re ta x a nd e xc e ptio na ls

Singapore

Re ve nue E BI T DA1

Optus Re gional Mobile

Custo me rs3 E a rning s4 Re ve nue 2

4

down 10%

E BI T DA

up 1% down 27% up 10% up 14% down 3% up 21%

S$3,701m S$1,508m A$2,198m S$838m S$561m A$510m S$462m 232m

c o mple te d SCS a c q uisitio n # 1 in the re g io n fo r inte rna tio na l I P VPN so lutio ns

2

stro ng g ro wth in mo b ile sub s hig he r fixe d o n-ne t mix stro ng sub sc rib e r g ro wth Bha rti la unc he d Sri L a nka mo b ile se rvic e s

5

Gr

• up Q3 F

Y09 highlights

30% 27% 42% Singapor e Optus Re gional Mobile

1. Ba se d o n 3 mo nths to De c 08 2. L a rg e st re ve nue ma rke t sha re in Asia Pa c ific e x Ja pa n - b a se d o n I DC’ s Asia / Pa c ific Se mia nnua l F ixe d-L ine T e le c o m Se rvic e s T ra c ke r, F irst Ha lf 2008.

70% Pr

• por

tionate E BIT DA1

• utside Singapor

e 213k 15m Re gional Mobile Optus Singapore Jan 09

Othe r s 1%

De c 08

1. Ope ra tio na l E BI T DA+sha re o f re sults o f a sso c ia te s 2. E xc lude s e xc e ptio na l ite ms a nd c urre nc y tra nsla tio n g a ins 6

S$m 3 months to De c 08 3 months to De c 07 YoY % c hange 3 months to Se p 08

(3.2%) 3,891 Ope ra tio na l E BI T DA 1,057 1,136 (6.9%) 1,079 (2.0%) Unde rlying ne t pro fit2 838 931 (10.1%) 801 4.6%

• ma rg in

28.6% 29.7% NM 27.7% NM Asso c ia te s (e x e xc e ptio na ls) 486 656 (26.0%) 461 5.3% 1,540 868 (13.2%) (16.1%)

Se que ntial % c hange

Ope ra ting re ve nue 3,701 3,825 (4.9%) 0.2% (8.0%) Ne t pro fit 799 952 E BI T DA1 1,542 1,777

Q3 F Y09: str

• ng r

e ve nue gr

• wth

impac te d by c ur r e nc y tr anslation

7 1. Ope ra tio na l E BI T DA+sha re o f re sults o f a sso c ia te s 2. E xc lude s e xc e ptio na l ite ms a nd c urre nc y tra nsla tio n g a ins 7

S$m 9 months to De c 08 9 months to De c 07 YoY % c hange

Ope ra ting re ve nue 11,369 11,086 2.5% Ope ra tio na l E BI T DA 3,282 3,375 (2.8%) Unde rlying ne t pro fit2 2,504 2,713 (7.7%)

• ma rg in

28.9% 30.4% NM Asso c ia te s (e x e xc e ptio na ls) 1,517 1,945 (22.0%) (9.0%) (11.2%) Ne t pro fit 2,545 2,867 E BI T DA1 4,810 5,288

9M F Y09: r e sults impac te d by c ur r e nc y and Indone sian ope r ations

8

F

• r

e ign e xc hange move me nts

Curre nc y

S$ 1.00 Yo Y Qo Q

1 AUD

2

S$ 0.9951 (22.8%) (17.7%)

PHP

32.6 (10.1%) no c hg

PK R

53.8 (28.7%) (1.1%)

I NR

32.8 (20.6%) (4.8%)

I DR

7,266 (14.1%) (10.4%)

T HB

23.4 (9.3%) 3.3%

BDT

46.3 1.9% 5.5%

• 1. Ave ra g e e xc ha ng e ra te s fo r the q ua rte r e nde d 31 De c 08
• 2. Ave ra g e A$ ra te fo r tra nsla tio n o f Optus’ unde rlying ne t pro fit

Cur r e nc y appr e c iation / (de pre c iation) against S$ E xc hange r ate 1

T r e nds in c onstant c ur r e nc y te r ms

Gro up re ve nue 3,701 (3.2%) 13.7% Gro up unde rlying NPAT 838 (10.1%) 0.7% Optus re ve nue 2,193 (14.9%) 10.2% Asso c ia te s e a rning s2 486 (26.0%) (15.0%)

• 1. Assuming c o nsta nt e xc ha ng e ra te s fro m c o rre spo nding pe rio ds in F

Y08

• 2. Ba se d o n the Gro up’ s sha re o f a sso c ia te s e a rning s b e fo re ta x a nd e xc e ptio na ls

YoY % c hange (at c onstant F X)1 YoY % c hange (r e por te d S$) 3 months to De c 08

Gro up re ve nue 11,369 2.5% 8.9% Gro up unde rlying NPAT 2,504 (7.7%) 0.3% Optus re ve nue 7,275 (2.6%) 6.7% Asso c ia te s e a rning s2 1,517 (22.0%) (11.6%)

9M F Y09 (r e por te d S$m) 3Q F Y09 (r e por te d S$m) 9 months to De c 08 YoY % c hange (at c onstant F X)1 YoY % c hange (r e por te d S$)

9

Singapor e

11

Singapor e : str

• ng E

BIT DA gr

• wth

Q3 F Y09 YoY c hange (inc l SCS)

1

YoY c hange (e x SCS) Highlights

Re ve nue S$1,508m stro ng Da ta & I nte rne t, a nd Mo b ile g ro wth E BI T DA

3

S$561m stro ng re ve nue g ro wth with c o ntro lle d inc re a se in e xpe nse s Sing a po re ma rg ins 37.2% Sing a po re ma rg ins e x-SCS

up fro m 39.4%

Ope ra ting e xpe nse s

2

S$948m b e lo w re ve nue g ro wth ra te

21% 25%

11

2.2% pt

1. Ac q uisitio n o f SCS wa s c o mple te d in De c 2008 2. E xc lude s Gro up a nd I nte rna tio na l Busine ss c o rpo ra te c o sts o f S$16m 3. E xc lude s Gro up a nd I nte rna tio na l Busine ss c o rpo ra te c o sts o f S$16m, a nd o the r inc o me o f S$3m

14%

40.4%

7% 5% 10% 1% pt

12 12

Singapor e : solid r e ve nue gr

• wth

Q3 F Y09 Re ve nue (S$ m) YoY Change Highlights T

• tal r

e ve nue

1,508 I nte rna tio na l te le pho ne 161

• hig he r o utg o ing tra ffic

I T & E ng ine e ring (NCS & SCS) 361 N/ A

• inc lude s c o ntrib utio n fro m SCS
• e xc luding SCS, up 9%

Othe rs 223

• lo we r e q uipme nt sa le s

Da ta & I nte rne t 389

• stro ng upta ke in ma na g e d a nd o the r da ta

se rvic e s Mo b ile 373

• stro ng g ro wth in c usto me r b a se

11% 6% 8% 21% 1% 110%

13

Data & Mobile : le ading the mar ke t

1. As a t 31 De c 08 2. Mo b ile sub sc rib e rs who re g iste re d fo r mo nthly wire le ss b ro a db a nd da ta sub sc riptio n pla ns 3. Bro a db a nd sub sc rib e rs - c o mpa ra tive s ha ve b e e n re sta te d o n a re tro spe c tive b a sis c o nsiste nt with I DA’ s re vise d pub lishe d sta tistic s

F ixe d Br

• adband

3

• Q3 ne t adds

1k

Mobile – Q3 ne t adds

68k

2.94 2.57 2.13 2.87 2.75 2.33

2Q FY08 3Q FY08 4Q FY08 1Q FY09 2Q FY09 3Q FY09 Mobile subs ('m)

38K 30K

Postpaid Pr e paid

46%

postpaid

Mar ke t shar e 1 51% 47%

495 494 487 475 456 442

2Q FY08 3Q FY08 4QFY08 1QFY09 2QFY09 3QFY09

Bro a d b a nd sub s ('0 0 0 )

pre paid

Wir e le ss BB subs2 144k Mar ke t shar e 1

Re de fining home e nte r tainme nt & c ommunic ations Inte r national te le phone

Re shaping the fixe d line mar ke t to de live r multime dia se r vic e s

mio T V c ustome r s 95k 59k

630 610 463 409 368 532 604 0.17 0.19 0.24 0.26 0.29 0.19 0.21 1Q FY08 2Q FY08 3Q FY08 4Q FY08 1Q FY09 2Q FY09 3Q FY09 IDD outgoing mins (m mins)1 Ave collection rate (S$/min)1

mio plan c ustome r s

1. E xc lude s Ma la ysia 14

6% L aunc he d mio home bundle Nov 08 S$100m National te le phone r e ve nue

do wn 5%

39.4% 37.4% 37.5% 40.4% 44.5% 43.1% 41.7%

100 150 200 250 300 350 400 450 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 30% 35% 40% 45% 50% Se lling & a dmin + Cost of sa les Other

• per

a ting expenses 15

Ope r ating e xpe nse s: foc us on c ost manage me nt

1. Sing a po re Busine ss ma rg ins - e xc lude s Gro up a nd I nte rna tio na l Busine ss c o rpo ra te c o sts. Also e xc lude s SCS 2. Sing a po re Busine ss e xc luding SCS

Inve sting to str e ngthe n le ade r ship Ope r ating e xpe nse s

2

lo we r tha n 7% re ve nue g ro wth Se lling & Admin

• hig he r mio T

V c o nte nt & utility e xpe nse s

E BIT DA mar gin1 E xpe nse s (S$’mil)

MNP iPho ne la unc h

Cost of sale s

• lo we r e q uipme nt sa le s

4%

T r affic e xpe nse s

• hig he r inte rna tio na l

c a ll tra ffic & c o rpo ra te da ta re ve nue 6% 5% 10%

Staff c osts

• inc re a se d he a dc o unt

11% Yo Y 7%

Optus

17

Optus: double digit r e ve nue gr

• wth

Q3 F Y09 Re ve nue A$m YoY c hange Highlights T

• tal r

e ve nue

2,198

• drive n b y a c c e le ra te d to p line pe rfo rma nc e in

mo b ile

Mo b ile 1,331

• stro ng c usto me r a c q uisitio ns in wire le ss b ro a db a nd,

iPho ne a nd hig h va lue unlimite d pla ns

• g ro wth a c ro ss se rvic e a nd e q uipme nt re ve nue

Busine ss & Who le sa le F ixe d 515

• c o ntinue d g ro wth in Da ta & I

P

• stro ng g ro wth in I

CT a nd ma na g e d se rvic e s

Co nsume r & SMB F ixe d 355

• c o nsume r fixe d o n-ne t re ve nue g ro wth o f 14%
• ma na g e d e xit o f unpro fita b le re sa le

17% 9% 10% 8%

18 1 27 65 52 87 87 128 104 59 38 27 56 48 14 54 109 500 600 700 800 900 1,000 1,100 Mar-07 Jun-07 Sep-07Dec-07Mar-08 Jun-08 Sep-08Dec-08 Service Revenue (A$m)

• 50

100 150 200 250 Net Adds ('000)

Postpaid net adds Prepaid net adds Total Service Revenue

Mobile : inc r e ase d mome ntum

Str

• ng c ustome r

ac quisition

12%

T

• tal data % of ARPU
• 9% no n-sms da ta

34%

E BIT DA margin

26%

• do wn 6 pe rc e nta g e po ints yo y
• ma rg in e xc l. iPho ne impa c t: 31%

Mobile se r vic e r e ve nue

1. Adjusting fo r o ne -o ff c hurn in the b usine ss c usto me r b a se , unde rlying ne t a dds we re 246k 2. Sub sc rib e rs pro visio ne d with HSPA b ro a db a nd se rvic e o n b o th po stpa id a nd pre pa id. E xc lude s da ta pa c ks a tta c he d to vo ic e se rvic e s

213k1

Mobile ne t adds

• po stpa id ne t a dds 104k

A$179

Subsc ribe r ac quisition c ost

• up 25% yo y a nd do wn 9% q o q

388k

Wire le ss broadband subs2

• ne t a dds o f 102k

1,063 952

19

Whole sale : str

• ng dome stic voic e

growth Busine ss: growing on- ne t Data & IP

Busine ss & Whole sale F ixe d: gr

• wing E

BIT DA with inc r e ase d on- ne t busine ss

19

110 98 117 127 85 112

B usiness F ixed r evenue (A$m)

Vo ic e I CT & Ma na g e d Se rvic e s Da ta & I P

312 338 +8%

9% 32%

Q3 F Y08 Q3 F Y09

11% 40 54 59 62 61 62

Who lesale F ixed r evenue (A$m)

Vo ic e Sa te llite Da ta & I P

161 177 +10%

4% 1%

Q3 F Y08 Q3 F Y09

5% 35%

E BIT DA

• up 21%
• ma rg in up 2% po ints to 24%

A$124m

20

Q3 F Y08 Q3 F Y09 Q3 F Y08 Q3 F Y09

C o nsume r Re ve nue (A$m )

On- ne t broa dba nd subsc r ibe r gr

• wth

+14%

• 54%

Off-ne t

226 259 49 106

On- ne t

Consume r & SMB F ixe d: maximising on- ne t yie ld

On- ne t te le phony subsc ribe rs

• up 17%

E BIT DA margin

• up 1 pe rc e nta g e po int

13% 938k

165k

On- ne t

+25%

• 51%

Off-ne t

125k

650 815 243 118

De c - 07 De c - 08 De c - 07 De c - 08 Bro a db a nd c usto me rs(000s)

25%

21

60 65 92 108 135 101 182 213 674 746 803 818 780 829 928 666 682 664 669 617 645 664 1,000 705

• 50

100 150 200 250 300 350 400 450 500 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Net adds ('000)

• 200

400 600 800 1,000 1,200 Operating costs (A$m)

Mobile net adds Selling costs Non-selling costs

Non-se lling c osts2 gr

• wth within

r e ve nue gr

• wth r

ate Mobile c ustome r gr

• wth dr

ive s inc r e ase in se lling c osts1

Ope r ating c osts: inve sting in mobile c ustome r ac quisition

Se lling c osts1

• hig he r c usto me r a c q uisitio n c o sts
• inc re me nta l impa c t fro m iPho ne

a nd hig he r vo lume s

21

1. Selling costs include: Selling & Admin and Cost of sales 2. Non-selling costs include: traffic, staff costs, repair & maintenance and capitalised costs

22% Non- se lling c osts2

• ma rg ina l inc re a se in sta ff c o sts

due to he a dc o unt fre e ze

• hig he r tra ffic e xpe nse due to

inc re a se d tra ffic vo lume a nd de pre c ia tio n o f A$

5% T

• tal ope rating c osts

15% YoY c hange

Assoc iate s and joint ve ntur e s

23 23

35.0% #1 46% 30.0% #4 19% 47.3% Mar ke t position #1 #2 #1 #5 37% 21.4% 45% 30.4% 25% E ffe c tive stake (% ) 45.0% Mar ke t shar e (% ) 4%

Re gional Mobile : wor ld’s faste st gr

• wing mobile mar

ke ts

36% 55% 13% 22%

Mo b ile pe ne tra tio n (%)

65.3 85.7 27.5 30% 59% 73% 97% 1.8 29%

PBT L

28% 16.9 56% 24.7 29%

Gro wth in sub sc rib e rs (%) Mo b ile sub sc rib e rs (m)

24

Q3 F Y09 PBT

1

(S$ m) % Change (S$) % Change (loc al c urr)

Re g io na l Mo b ile 462 NA

• re sults impa c te d b y stro ng S$

Bha rti 224

• stro ng re ve nue a nd sub sc rib e r g ro wth
• fa ir va lue lo sse s o n USD & Ye n de no mina te d

b o rro wing s (S$21m) T e lko mse l 156

• pric e pre ssure s a nd hig he r ne two rk re la te d

e xpe nse s

• fa ir va lue lo sse s fro m USD a nd E

uro ve ndo r pa ya b le s (S$28m) Glo b e 57

• we a ke r e c o no mic c o nditio n a nd c o nsume r

se ntime nts

• hig he r ne two rk c o sts fro m b ro a db a nd e xpa nsio n

AI S

2

59

• stro ng re ve nue g ro wth fro m pre pa id, da ta a nd

inte rna tio na l c a lls Wa rid (29)

• hig he r ne two rk c o sts a nd fa ir va lue lo sse s o n USD

lia b ilitie s

Highlights

24

Re gional Mobile : impac te d by c ur r e nc y volatility & T e lkomse l

• 1. E

xc luding e xc e ptio na l ite ms – c o mpa re d to 3 mo nths to De c 07

• 2. Sing T

e l a c c o unts fo r AI S Se p 08 q ua rte r re sults in the se re sults

29% 49% 42% 27% 17% 7% 22% 29% 132% 198% 7%

F inanc ial position

26

918 874 657 628 1,071 766

YT D De c 07 YT D De c 08

G ro up fre e c a shflo w (S$m )

Singapor e

S$305m

2,268 2,646

Optus Assoc div

1. Ope ra ting c a sh inc luding a sso c ia te s divide nds le ss c a sh c a pe x

Str

• ng financ ial position

S&P’s rating A+ Moody’s rating Aa2

S$29m

Ne t de bt Ne t ge ar ing Ne t de bt:E BIT DA E BIT DA:ne t inte r e st e xpe nse S$6.6bn 26% 1.0x 19x

S$44m

Str

• ng balanc e she e t

F r e e c ash flow1 r e fle c ts highe r c ape x & c ur r e nc y we akne ss

27 27

F Y09 T ar ge ts YT D De c 08 Ope r ating r e ve nue Singapore : to grow mid- single digit1 Australia (A$) : to gr

• w single digit

+8.5% +6.7%

E BIT DA Singapore : to grow1 Austr alia (A$) : to gr

• w

+2.2% +1.3%

Re gional Mobile Assoc iate s Ove r all pr e - tax c ontr ibutions to be lowe r

• 22.7%

F Y09 guidanc e : affir me d

1. Excluding SCS

SingTel

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