FY2025 Full-Year Financial Results Briefing

Recording in progress.

Good morning, everyone. Welcome to Singtel’s results briefing for the year ended 31 March 2025. I’m Jeanette Pang Investor Relations and a warm welcome to analysts and investors joining us online and physically here at Singtel’s office.

Let me begin by introducing management present here today. We have Mr Yuen Kuan Moon, Group CEO, Mr Arthur Lang, Group CFO, Mr Stephen Rue, Optus CEO, Mr Bill Chang, CEO Digital InfraCo, Mr Ng Tian Chong, CEO Singtel Singapore and Mr Ng Kuo Pin, CEO of NCS.

We’ll start off today with a short presentation by Moon and Arthur, then we will have time for Q&A. I’ll now invite Moon to share some highlights from the results and how we are delivering to Singtel28 growth plan.

FY25 Results 22 May 2025 Mr Yuen Kuan Moon – Group CEO

Thank you, Jeanette. Good morning, everyone. Thank you for joining us today for our FY25 results. Let me start the FY25 with some key achievements.

Since unveiling our Singtel28 growth plan a year ago, I’m pleased to share that we have made meaningful progress towards our goal for sustained value realisation.

We closed FY25 on a strong note, delivering a 9% increase in underlying net profit, underpinned by Optus, NCS and regional associates growth.

Our focus on cost optimization continues to bear fruit, leading to absolute reductions in OpEx for our connectivity businesses in Singapore and Australia.

We continue to drive Nxera’s expansion with data centers in Singapore and Thailand set to launch within a year.

On active capital management, we have received S$1.9 billion recycling proceeds in FY25, almost one-third of the $6 billion mid-term asset recycling target we announced a year ago.

This mainly came from the divestment of Comcentre and the sale of partial stake in Intouch.

With the improved financial performance and strong capital position, we have announced a final dividend of 10 cents. This brings total dividends to 17 cents for the full year, 13% higher than last year.

The FY25 total dividend comprises a core dividend of 12.3 cents and a VRD of 4.7 cents. I’m also pleased to announce a share buyback programme of up to S$2 billion over the next three years until financial year 2028. Arthur will share more details on this later.

Now, let’s turn to our business highlights. Singtel Singapore continues to build new revenue streams. Empower platform, our AI-enabled self-serve Enterprise portal has secured a number of strategic customer wins, while we bolster our Quantum Safe offerings to fortify enterprises against cyber threats.

Optus maintains its positive operating momentum, supported by rising mobile ARPU and subscriber growth. The regional network sharing with TPG has also gone live in January, enabling Optus to optimize its 5G capex in the region.

On the growth engines, NSC joint venture with Globe in the Philippines will increase our capacity to meet the region’s growing demand for IT services, particularly AI-led solutions.

We are seeing strong demand for our upcoming data centers in Singapore and Thailand, with around 50% and 80% of their respective capacities already pre-sold.

On sustainability, we have reduced emission by around 14% and launched our Responsible Procurement Policy.

On to financial highlights. Operating revenue remains steady, while both EBITDA and EBIT saw a strong growth of 5% and 20% respectively, driven by robust performance of Optus and NCS.

Excluding currency fluctuations, regional associates’ profit after tax increased by 7% to S$1.8 billion, led by Airtel and AIS.

As mentioned earlier, underlying net profit, which is the basis for core dividend payout grew 9% to S$2.5 billion.

FY25 Results 22 May 2025 Net profit grew more than fivefold due to an exceptional gain of S$1.6 billion, mainly from the divestment of Comcentre. This compares to an exceptional loss of S$1.5 billion, mainly from non- cash impairment charges in FY24.

ROIC increased for the fourth straight year, hitting 9.6%. Excluding exceptional items, it would be 9.8%.

Double clicking on revenues, excluding project-based satellite deployment fees, Trustwave and forex, our revenue grew by 2%. This was driven by healthy growth in Optus’ mobile services and our growth engines.

Now a deep dive into the performance of our various businesses.

Optus continued to deliver strong performance with EBIT growth of 55%, driven by improved mobile performance and cost management.

Singtel Singapore remained resilient in a challenging market as new growth and cost control led to a stable financial performance.

Moving on to our growth engines. NCS maintained its growth trajectory with Gov+ driving revenues on demand for Cloud, Data and Digital services. Importantly, a focus on profitability has seen EBIT increase 39% on improved delivery margins and cost to serve optimization.

Digital InfraCo revenue was up 5%, mainly on Nxera’s non-recurring customer reservation fee and utility pass through. EBIT declined 9% due to the impact of lower project-based satellite fees, as well as investment in Enterprise Platforms and RE:AI.

Our regional associates’ profit after tax rose by 4%, mainly driven by AIS in Thailand and Airtel in India. On constant currency terms, the contribution increased by 7%.

Our associates are generally seeing benign market conditions, although Indonesia continues to face strong mobile competition mitigated by growth in the fixed broadband service.

We continue to maintain a robust balance sheet. We hold S$2.8 billion in cash, while almost 90% of debt is hedged into fixed rates, we will average debt maturity of around four years. Net debt rose largely due to spectrum payments by both Optus and Singtel Singapore. At the time we currently have limited US dollars exposure.