Singapore Telecommunications : Singtel Investor Day 2023 - Group CFO

Singtel Investor Day 2023

Capital Management and Value Creation for Growth

Arthur Lang, Group CFO

24 August 2023

Key business units

Core business	Growth engines	Strategic portfolio
		of Associates

Digital InfraCo

2

On track to creating more shareholder value

ROIC needs to	Growth engines	Value creation
keep improving	a key focus	opportunities
		still significant

3

Low double digit ROIC1 by FY26

Target Group ROIC

Low double digit

8%1
FY23	FY26F

Increasing efficiencies for Optus & Singtel SG

Sale/closure of loss-making businesses

Reduced capital intensity

Airtel improvement

1. Excluding Optus goodwill.

4

			Key drivers of ROIC
		Key drivers
	Regional	▪	Capture fixed opportunity
	Associates	▪	Focus on market repair & cost management
	Singtel	▪	Accelerate 5G monetisation
ROIC >	▪	Capitalise on enterprise digital transformation
Singapore
WACC	▪	Integration of consumer & enterprise to drive growth & cost synergies
		▪ Grow international & enterprise business
	NCS	▪	Cost-to-serve optimisation
		▪ End-to-end digital proposition
ROIC <		▪ Build on rational market competition & customer gains
Optus	▪	Scale integrated consumer & enterprise business to drive growth
WACC
	▪	Focus on cost management to mitigate inflation pressures
Negative	Trustwave	▪	Complete strategic review
ROIC	▪	Continued focus on cost efficiencies
Asset		▪ Ride wave of demand for cloudification & AI adoption
RDC1	▪	Stabilised yield in mid-teens
yield
	▪	Leverage strategic partnerships to scale

1. Regional Data Centre.

5