01 Singtel Annual Report 2019
ReimaginingYour FutureAnnual Report 2019Singapore Telecommunications LimitedCopyright 2019Printed on environmentally friendly paper Annual Report 2019Singapore Telecommunications Limited(CRN:199201624D)31 Exeter Road, ComcentreSingapore 239732T 65 6838 3388www.singtel.com
ReimaginingYour FutureMuch has changed over Singtel’s 140-year history. Technology and innovation has madethe mobile phone central to our daily lives. Fitting into the palm of our hands, they serve asgateways to an exciting world of entertainment, information and services. We now standon the cusp of 5G - an era of hyper-connectivity and newer technologies that will furtherrevolutionise the way we work and play.As a leading communications technology provider, we’re proud to be enablers of suchchange. Innovation has always been at the core of our business. Our purpose is to keep onpushing boundaries and making breakthroughs, both in our networks and services, so howwe live our lives, conduct our businesses, entertain ourselves, keep improving. We are herefor the long haul at Singtel, and we’re reimagining your future to bring a better one to you.Table of ContentsOverviewBusiness ReviewsAn overview of our businesses, our performance,key achievements and value created, as well as ourstrategy moving forwardInsights into each of our business units13579111315212228Financial HighlightsFY 2019 AchievementsChairman’s MessageGCEO ReviewWho We AreOur Businesses and StrategyThe Value We CreateBoard of DirectorsOrganisation StructureManagement CommitteeSenior Management29414753Group ConsumerGroup EnterpriseGroup Digital LifeKey Awards and AccoladesGovernance and SustainabilityOur corporate governance, risk management andsustainability efforts55578789100Governance and Sustainability PhilosophyCorporate GovernanceInvestor RelationsRisk Management Philosophy and ApproachSustainability
29414755Group ConsumerGroup Digital LifeGroup EnterpriseGovernance andSustainabilityPerformanceAdditional InformationOur financial performanceOur shareholders, transactions with interested personsand other corporate information107 Group Five-year Financial Summary110 Group Value Added Statements111 Management Discussion and AnalysisFinancialsAudited financial statements121131137138139140144147Directors’ StatementIndependent Auditors’ ReportConsolidated Income StatementConsolidated Statement of Comprehensive IncomeStatements of Financial PositionStatements of Changes in EquityConsolidated Statement of Cash FlowsNotes to the Financial Statements250 Interested Person Transactions251 Additional Information on Directors SeekingRe-election261 Shareholder Information263 Corporate Information264 Contact PointsScan here to view theSingtel Annual Report 2019 online.
Financial Highlights(1)Operating RevenueEBITDAS 17,372mS 4,692mS 17,268m in FY 2018S 5,051m in FY 2018Net ProfitUnderlying Net ProfitS 3,095mS 5,473m in FY 2018S 2,825m(2)S 3,593m in FY 2018Free Cash FlowShareholder PayoutS 3,650mS 2,857mS 3,606m in FY 2018S 3,346m in FY 2018Return on EquityReturn on Invested Capital (3)10.4%7.7%18.9% in FY 2018(2)9.6% in FY 2018 (4)CONSTANT CURRENCYNet ProfitUnderlying Net ProfitS 3,186mS 2,908mS 5,473m in FY 2018 (2)S 3,593m in FY 2018Notes:(1)Based on Singapore Financial Reporting Standards (International).(2)Includes the gain on disposal of economic interest in NetLink Trust.(3)Return on invested capital is defined as EBIT (post-tax) divided by average capital.(4)Excludes the gain on disposal of economic interest in NetLink Trust.1
OVERVIEWOperating RevenueContribution by GeographyContribution by Product and Service7%8%S 2,825mRegional Associates18%17%Digital BusinessesICTMobile ServiceData and InternetSale of EquipmentOthers (6)S 17,372mGOVERNANCE AND SUSTAINABILITY46%BUSINESS REVIEWSUnderlying Net Profit19%31%PERFORMANCE25%Shareholder PayoutDividend Per Share (S )AustraliaSingapore (5)17.5201817.5201717.53.0Ordinary DividendSpecial DividendFINANCIALS29%2019Singtel has a track record of generous shareholder payouts.For the financial year ended 31 March 2019, the Board has recommendeda final ordinary dividend of 10.7 Singapore cents a share. Together withthe interim dividend of 6.8 Singapore cents, the total ordinary dividend forthe year is 17.5 Singapore cents, unchanged from last year.ADDITIONAL INFORMATIONRefer to page 119 for the Group’s capital management and dividend policy.Notes:(5)Includes losses from Trustwave and Group Digital Life.(6)Includes Fixed voice and Pay television.Singapore Telecommunications Limited Annual Report 20192
FY 2019 AchievementsWe are focused on connecting and empowering everyone, consumers and businessesalike, in new and meaningful ways. This means growing our digital capabilities andinvesting in innovation and emerging technologies such as 5G and IoT to bring thesmart, connected future closer.Advanced 5G in Australiaand Singapore Optus introduced Australia’s first 5G commercialfixed wireless service. Singtel launched Singapore’s first 5G pilotnetwork.Enhanced cyber securitycapabilities Consolidated cyber assets globally under theTrustwave brand to form one of the industry’smost comprehensive cyber security companies. Established the first Global Telco SecurityAlliance with AT&T, Etisalat, SoftBank andTelefónica to create one of the world’s biggestmanaged security services platforms.Strengthened IoT andcloud capabilities Struck partnerships with Microsoft and ChinaMobile to enable enterprises to deploy their IoTdevices across networks seamlessly. AIS expanded cloud business and data centreswith the acquisition of CS Loxinfo to provide endto-end digital solutions to enterprises in Thailand.3
OVERVIEWCreated regional ecosystemof digital servicesBUSINESS REVIEWS Launched VIA, Asia’s first cross-border mobilepayment alliance, to create a seamless regionwide payment network. Entered esports with the launch of PVP EsportsChampionship, a multi-title and regional league.Extended digital marketingcapabilities into TV spaceGOVERNANCE AND SUSTAINABILITY Amobee acquired Videology, a technologyprovider for advanced TV and video advertising,to unify digital, social and TV advertising on asingle platform. Amobee signed an exclusive agreement withITV, the UK’s largest commercial broadcaster, topower ITV’s premium video advertising and maketheir inventory exclusively available through theAmobee technology platform.PERFORMANCELaunched platform to accelerateenterprises’ digital transformationFINANCIALS Launched the FutureNow Innovation Centrewhich combines our experience and expertisewith emerging technologies to help enterprisesdigitalise.Continued to invest in India’sgrowth potentialADDITIONAL INFORMATION Deepened relationship with Airtel, whichcontinues to ride the growth in data in India,through our participation in its rights issue.Singapore Telecommunications Limited Annual Report 20194
Chairman’s MessageDear Shareholders,FY 2019 was more than justa challenging year. I wouldcharacterise it as somewhat of a‘perfect storm’ with intensifyingcompetition across all markets,particularly India and Indonesia, plusthe added backdrop of heightenedeconomic uncertainty. These factors,coupled with regional currenciesmoving significantly against usand reduced contributions fromour smaller stake in NetLink Trust,contributed to a 21% decline in ourunderlying net profit to S 2.83 billion.Your Board has proposed thepayment of a final dividend of 10.7cents per share. If approved, this willbring the total full year dividend to17.5 cents per share.RISING TO CHALLENGESLast year, I signalled that competitionwas escalating across the region,with operators aggressivelycompeting for market share.In India, we have seen anunprecedented situation, where anew entrant investing more thanUS 40 billion, has waged a price war,driving the industry into losses.While this has been painful in theshort term, we have arrived at athree-player market, creating abetter long-term market structure forwhen the market normalises.Airtel has weathered this storm anddefended its market share. Airtelundertook a rights issue in May whichSingtel has supported to protect our5investment and ensure Bharti canfund its growth.It is your Board’s belief that Indiawill remain a major driver ofindustry growth, supported by thegovernment’s Digital India initiative.In Indonesia, Telkomsel weatheredintense price competition, particularlyduring the government-mandatedregistration exercise for prepaidSIM cards. With the recovery of themarket, we expect Telkomsel to returnto growth.STRONG CORE PERFORMANCESDespite challenges, we had strongperformances in Singapore andAustralia. Our consumer businessesgained mobile market share in bothcountries as our investments innetworks, content and digitalisationpaid off.Both markets also laid the groundworkfor 5G. Optus introduced Australia’sfirst 5G commercial service whileSingtel launched Singapore’s first 5Gpilot network. New technologies like5G will converge with IoT and AI tousher in an era of hyper-connectivitythat will redefine whole industriesand consumer lifestyles. Our 5Ginvestments are part of longer-termplans to position us for future growth.GROWING NEW GLOBALBUSINESSESPart of our digital transformationinvolved making calculatedinvestments in new businesses thatwould thrive in the future economy.Building out our digital businesses: incyber security, we consolidated theGroup’s operations and resourcesinto a single global entity under theTrustwave brand to form one of theindustry’s most comprehensive globalcyber security companies. Our digitalmarketing business Amobee hasachieved scale, while the acquisitionof Videology, a software provider forthe high-growth advanced TV andvideo advertising segments, positionsus strongly for a converged medialandscape.Your Board is aware that the valueof these investments is not beingrecognised in our share price andmanagement intends to unlock thisvalue at the appropriate time. Weare also leveraging our regionalscale and partnerships to drive adigital ecosystem across our mobilecustomer base of more than 690million.DEEPENING SUSTAINABILITYEFFORTSAs the sustainability conversationevolves, so has Singtel’s efforts in thisspace. To reduce our carbon footprinteven further to align with the globalclimate agenda, we are exploringlong-term renewable energy supplyoptions to help us fulfil our aspirationto be carbon neutral. Our effortshave not gone unnoticed and wecontinue to be recognised globallyin areas such as climate change,governance and diversity. We wereone of four Singapore firms and theonly Southeast Asian communicationscompany to be listed in the 2019Bloomberg Gender-Equality Index.
OVERVIEWNew technologies like 5G will convergewith IoT and AI to usher in an era ofhyper-connectivity that will redefinewhole industries and consumerlifestyles. Our 5G investments are partof longer-term plans to position us forfuture growth.PERFORMANCEYours sincerely,GOVERNANCE AND SUSTAINABILITYGood governance is fundamental forlong-term business sustainability andvalue creation for our stakeholders.Our efforts on this front continue tobe recognised as we were namedASEAN’s Top 5 and Singapore’s Top 3Publicly Listed Companies at the 2ndASEAN Corporate Governance Awards.We are committed to maintaining thehighest standards of governance andwill continue to improve our policiesand processes.BUSINESS REVIEWSGOVERNANCEOn that note, I am happy to welcomeGail Kelly, Bradley Horowitz andDominic Barton to the Singtel Board.Their respective backgrounds infinance, technology and consultingadd to our diversity and bring a freshinfusion of expertise. I would alsolike to express my heartfelt thanks toPeter Mason and Bobby Chin – bothof whom are retiring from the Board.Their insights and contributions overthe years have been invaluable.FINANCIALSSIMON ISRAELChairmanADDITIONAL INFORMATIONSingapore Telecommunications Limited Annual Report 20196
GCEO ReviewDear Shareholders,TURNING THE CORNER ON ACHALLENGING YEARWe have executed well and gainedmobile share in our core marketsin Singapore and Australia againstintense competition. However, the pastyear was far from business as usual.Our results were affected by carriagepricing erosion in the enterprisesegment and challenging conditionsin India and Indonesia. Competitionintensified across virtually all ourmarkets as operators jostled formarket share while advances intechnology continued to disrupt thetelco industry, putting more pressureon prices and return on investment.With currency headwinds and theexceptional gain recorded last yearfrom our NetLink Trust divestment, netprofit dropped 44% to S 3.1 billion. Ourunderlying net profit declined 21%.Against this backdrop of tougherindustry and business conditions,we stayed the course on digitaltransformation which puts us in goodstead. Our efforts to stay relevantto customers through digitalisationpaid off as our core consumerbusiness raised the bar in productsand services and customer servicestandards. The race by governmentsand enterprises to digitalise theirprocesses and operations alsopresented new opportunities forour enterprise business, particularlyTrustwave and NCS. Having investedin deepening our capabilities in cybersecurity, cloud, data analytics and IoT,ICT services now constitute 48% of ourenterprise revenue. Amid a difficultyear, we were financially disciplinedand prudent in managing our costsand investments. Our strong free cashflow generation and balance sheet7give us one of the strongest creditratings among telecom companies.REGIONAL MARKET GROWTHWe have a unique regional presencethat is of scale. Our positive longterm view of our regional assets anddiversification hasn’t changed. Whileit was a particularly bruising year forIndia which faced such aggressivecompetition that only three operatorsnow stand, Airtel has weatheredthe storm and strengthened itsbalance sheet with a rights issue tofurther compete in a consolidatedmarket that remains buoyed by thegrowth potential of Digital India.Indonesia had a nationwide SIM cardregistration exercise which affectedthe industry but the market is nowrecovering. Globe had a stellar yearwith robust revenue share growthin mobile and broadband, and AIScontinued to lead the market inThailand. We expect our associatesto deliver positive growth fueled byexponential growth in smartphoneadoption and a plethora ofapplications and content.DIFFERENTIATING A RESILIENTCOREThe competitive landscapes in ourcore markets of Singapore andAustralia have changed with moreplayers, including MVNOs, in theindustry coupled with increasingcapital intensity with 5G rolloutexpectations. Our businesses willaccelerate digitalisation, automationand robotic processes combiningAI tools and data analytics to driveproductivity, cost savings andbetter customer experiences. Wehave differentiated with productinnovations, quality content andpartnerships that were well-receivedby customers. We remain committedto providing superior networkcoverage and connectivity andleading the way to 5G. While 5Gspectrum policy is still being finalisedin Singapore, we are piloting theisland’s first 5G network. In Australia,Optus with its extensive 5G spectrumportfolio became the first carrier toprovide high-speed home broadbandservices on 5G.DRIVING NEW GROWTH IN DIGITALAs governments race to build smartcities and enterprises future-prooftheir operations, we will leveragethis rising tide of digitalisation todrive growth in our ICT and digitalbusinesses. Both our cyber securitybusiness Trustwave and digitalmarketing arm Amobee, while notyet profitable, have executed theirstrategies. We are confident theywill continue their revenue growthmomentum to become leadingplayers.We are also pursuing new growthby developing a regional digitalecosystem that unlocks the valueof the Group’s 690 million strongcustomer base. Given that Singtel,Optus and all our associates remainleaders in their respective markets,we’re jointly tapping into thesemarkets in the mobile payments,financial services, esports andgaming spaces. The size of ourcombined markets, our irrefutablenetwork leadership and productinnovation, and our valuable customerrelationships – position us to drivesynergies and reap benefits from suchan ecosystem.SUSTAINABILITY AND FUTUREREADINESSWe remain committed to creatingsustainable business growth
OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEWe expect our associates to deliverpositive growth fueled by exponentialgrowth in smartphone adoptionand a plethora of applications andcontent.FINANCIALSI would like to thank the Board fortheir guidance, and our partnersand shareholders for their continuedsupport for our transformation efforts.My appreciation also goes to theSingtel team and our union leadershipwhose unstinting commitment tochange has helped sustain oursuccessful record thus far.BUSINESS REVIEWSwhile driving positive change inour communities. As our digitaltransformation accelerates, weare investing in building a futureready team. Our reskilling effortsinclude working with researchersand partners within the ecosystemin the areas of cyber security and5G to develop capabilities forthe new economy. Our diversityand inclusiveness are vital to ourtransformation process. As womencomprise half of the Group’scustomers, women now constitute athird of our workforce, managementand Board which helps us betterunderstand and answer to the needsof our stakeholders. We stay dedicatedto the vulnerable segments in oursociety with our flagship philanthropyprogramme, the Singtel TouchingLives’ Fund, supporting the educationof children and youth with specialneeds in Singapore. We are givingback to the larger society, havingcontributed to Perth’s landmark OptusStadium last year and most recently,Esplanade’s new waterfront theatre inSingapore.Yours sincerely,ADDITIONAL INFORMATIONCHUA SOCK KOONGGroup Chief Executive OfficerSingapore Telecommunications Limited Annual Report 20198
Who We AreAsia’s leadingcommunicationstechnologygroupMore than70%of earnings fromoperations outside ofSingaporeIn the course of our 140-year history,we have played a key role in Singapore’sdevelopment as a telecommunicationshub for the region. Together with ourregional associates AIS, Airtel, Globe andTelkomsel, we’ve grown to become Asia’sleading communications technologygroup, providing an extensive range oftelecommunications and digital servicesto consumers and businesses across Asia,Australia, Africa and the US. Throughconstant innovation in next-generationtechnologies and a deep understandingof our markets, we are bringing the futureof connectivity closer to our customers.Over690m21mobile customers incountries960Enterpriseglobal offices in23countriesNotes:(1)Based on direct equity interest only.(2)Singtel has 21.5% interest in Globe’s voting shares.All figures as at 31 March 2019 unless otherwise stated.
OVERVIEWIndia South Asia AfricaPhilippines23.3% of ordinary shares (1)41m mobile customers47.1% of ordinary shares (2)83m mobile customersBUSINESS REVIEWS39.5% effective interestMobile customers:283m (India)2.6m (South Asia)99m (Africa)ThailandGOVERNANCE AND SUSTAINABILITY21.0% of ordinary sharesAn investor in telcos, mediaand technologyIndonesiaPERFORMANCESingapore35.0% effective interest169m mobile customers4.2m mobile customers0.6m broadband customersFINANCIALSAustraliaADDITIONAL INFORMATION10.3m mobile customers1.2m broadband customers10
Our Businesses and StrategyFrom telco to global communicationstechnology companyVisionMissionTo be Asia Pacific’s best communicationstechnology company.To create sustainable long-term growth, deliver superiorshareholder returns and generate positive impact forstakeholders.Strategic Priorities11DifferentiatorsAccelerating singCore BusinessesConnectivityGrowing New DigitalServicesNetworkLeadershipBuilding a RegionalDigital EcosystemData Businesses
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S 17,268m in FY 2018 S 5,051m in FY 2018 S 3,095m Net Profit S 2,825m Underlying Net Profit S 5,473m in FY 2018 (2) S 3,593m in FY 2018 S 3,650m Free Cash Flow S 2,857m Shareholder Payout S 3,606m in FY 2018 S 3,346m in FY 2018 10.4% Return on Equity 7.7% Return on Invested Capital (3) 18.9% in FY 2018 (2) 9.6% in FY 2018 (4)
Singtel_Home_Protect_FAQ_Dec 2022 FREQUENTLY ASKED QUESTIONS Singtel Home Protect Policy Number: F0239635 Product Coverage 1. What is Singtel Home Protect? Singtel Home Protect is a household contents insurance plan underwritten by Great Eastern General Insurance Limited ("GE") and offered specially to customers of Singtel. 2.
Singapore Telecommunications Limited Sustainability Report 2018 3 In 2017, our social innovation programme, Singtel Future Makers, then in its second year, was completed successfully at regional level with support from Singtel, Optus and Globe. This culminated in the Singtel Group
look out as we will constantly award phones with the Singtel 5G coins. 7. Where can I use Singtel 5G service? Our 5G network covers the whole of Central Business District including areas such as Orchard, Somerset, Tanjong Pagar, Harbourfront and more, where our customers use their data services frequently.
Combo, XO, and XO Plus 50 mobile plans on a 5G handset will be able to subscribe to this add-on. Customers who sign up/recontract on XO Plus 68 / 88 / 118 / 168 mobile plans on a 5G handset will be able to enjoy FREE 5G NOW market trial access automatically. Singtel 5G NSA Market Trial is valid until further notice from Singtel.
2. How is Singtel Mobile Leasing different from buying a phone with a Combo Plan? The main difference is that you are leasing a phone from Singtel instead of buying the phone. The leased phone is Singtel's property and you must return the leased phone after the leasing term ends on the 24th month. You pay 0 upfront to lease the phone and .
About this Report and Contents This is the fi fth Group Sustainability Report by Singapore Telecommunications Limited (Singtel). It covers the sustainability performance of our operations in Singapore, where Singtel is headquartered, and Optus, our wholly-owned subsidiary in Australia, for the fi nancial year 1 April 2018 to 31 March 2019 .
CORPORATE SOCIAL RESPONSIBILITY Over 800 SingTel employees, their family members and friends raised S 80,000 through a flag day . SINGAPORE TELECOMMUNICATIONS LIMITED AND SUBSIDIARY COMPANIES / ANNUAL REPORT 2012 Our regional mobile associates also played their part in going green. All eight SingTel Group operators collaborated with GSMA
The ADVANTAGES of being a Singtel fan Singtel Circle Bundle your mobile (up to 5 lines), Fibre Broadband and Singtel TV to get: Up to 30% off monthly mobile subscriptions Annual handset upgrade fee waiver (worth 350) Free local data on Sundays CIS lines can be used as a line count to enjoy higher savings on other mobile lines.
