Singapore Telecommunications : Management Discussion & AnalysisPDF (493 KB)

Singapore Telecommunications Limited

And Subsidiary Companies

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION, RESULTS OF OPERATIONS AND CASH FLOWS

FOR THE SECOND HALF AND FINANCIAL YEAR ENDED

31 MARCH 2022

The financial statements for the year ended, and as at, 31 March 2022 are audited.

Numbers in all tables may not exactly add due to rounding.

For all pages, "@" denotes more than +/- 500%, "*" denotes less than +/- S$0.5 million or A$0.5 million and "**" denotes less than +/- 0.05%, unless otherwise indicated.

For all tables, a negative sign for year-on-year change denotes a decrease in operating revenue, expense, gain or loss.

Singapore Telecommunications Ltd And Subsidiary Companies

Table Of Contents

Section 1 : GroupPg

Performance At A Glance………………….……………………………………………………………… 1

Financial Highlights……...…………………………………………………………………………………… 2

Group Summary Income Statement……………………………………………………………………… 3

Review Of Group Operating Performance………………………………………………………………… 4

Net Finance Expense………………………………………………………………………………………… 6

Exceptional Items (Post-Tax)……………………………………………………………………………… 7

Tax Expense………………………………………………………………………………………………… 8

Summary Statements Of Financial Position ……………………………………………………………… 9

Capital Management………………………………………………………………………………………… 10

Cash Flow …………………………………………………..………………....…………....……………… 11

Final Dividend…............................................................................................................................... 13

Outlook For The Next Financial Year Ending 31 March 2023………………………………………… 14

Section 2 : Singapore Consumer

Summary Income Statement………...……………………………………………………………………… 15

Financial Performance…..………………………………………………………………………………… 16

Business Highlights…....................................................................................................................... 17

Section 3 : Australia Consumer

Summary Income Statement………...……………………………………………………………………… 18

Financial Performance…..………………………………………………………………………………… 19

Business Highlights…....................................................................................................................... 20

Section 4 : Group Enterprise

Summary Income Statement………...……………………………………………………………………… 21

Financial Performance …..………………………………………………………………………………… 23

Business Highlights…....................................................................................................................... 23

Section 5 : NCS

Summary Income Statement………...……………………………………………………………………… 25

Financial Performance…......…..…………………………………………………………………………… 27

Business Highlights…....................................................................................................................... 27

Section 6 : Trustwave

Summary Income Statement………...……………………………………………………………………… 29

Financial Performance…..………………………………………………………………………………… 29

Section 7 : Associates/ Joint Ventures

Share Of Results Of Associates/ Joint Ventures………...……………………………………………… 30

Financial Performance and Business Highlights …..…………………………………………………… 32

Key Operational Data………...……………………………………………………………………………… 37

Singapore Telecommunications Ltd And Subsidiary Companies

Table Of Contents (continued)

Section 8 : Product Information

Singapore Product Drivers………………….……………………………………………………………… 38

Australia Product Drivers……...…………………………………………………………………………… 40

Group Enterprise Drivers……………………………………………..…...……………………………… 41

Section 9 : Glossary………………….…………………………………………………………………… 42

Appendix 1 : Group Operating Revenue And Expenses

Appendix 2 : FY2021 Business Segment Results (Restated)

Appendix 3 : Business Segment Results

Appendix 4 : Optus Financials In Australian Dollars

Appendix 5 : Group Statements Of Financial Position

Appendix 6 : Group Cash Flow Statement

Appendix 7 : Currency Risk Management And Other Matters

Appendix 8 : Proforma Information And Mobile Customer Base

Singapore Telecommunications Ltd And Subsidiary CompaniesPage 1

SECTION 1 : GROUP

PERFORMANCE AT A GLANCE

		Financial Year					Half Year
	Mar 22	Mar 21	Mar 20		Mar 22		Sep 21		Mar 21		Sep 20
	S$ m	S$ m	S$ m		S$ m		S$ m		S$ m		S$ m
Operating Highlights
Group mobile customer base (million) (1)	779	744	705		779	764	744	716
Mobile customer market share (%)
- Singapore	48.0	51.0	50.4		48.0	49.8	51.0	51.6
- Australia	31.3	31.1	31.8		31.3	31.2	31.1	31.4
- Airtel India	31.6	29.8	28.3		31.6	30.4	29.8	28.4
- Telkomsel (2)	53.6	58.7	59.3		53.6	59.1	58.7	59.2
- AIS	46.0	46.0	45.2		46.0	46.0	46.0	45.6
- Globe	55.4	52.6	55.0		55.4	54.3	52.6	51.9
Group Financials (S$ million)
Operating revenue	15,339	15,644	16,542		7,687	7,653	8,219	7,425
(excluding NBN migration revenue)	15,269	15,336	15,975		7,669	7,601	8,111	7,225
EBITDA	3,767	3,832	4,541		1,839	1,929	1,928	1,903
Share of associates' pre-tax profits	2,136	1,798	1,743		1,090	1,047	913	885
EBIT	3,181	2,945	3,704		1,562	1,619	1,464	1,481
Underlying net profit	1,923	1,733	2,457		941	983	896	837
Net profit	1,949	554	1,075		995	954	88	466
Free cash flow	3,081	3,395	3,781		1,309	1,771	1,689	1,705
Cash capex	2,217	2,214	2,037		1,114	1,103	1,118	1,096
Key Financial Indicators
Proportionate EBITDA from outside Singapore (%)	81	78	79		81	81	79	77
Return on invested capital (%)	5.4	5.0	6.4
Return on equity (%)	7.3	2.1	3.8

Notes:

1. Comprised mobile customers of Singtel, Optus, Airtel, Telkomsel, Globe and AIS.
2. The comparatives had not included Hutchison 3 Indonesia's mobile customer base in the calculation of market shares.

Singapore Telecommunications Ltd And Subsidiary Companies

Page 2

SECTION 1 : GROUP

FINANCIAL HIGHLIGHTS

FOR THE SECOND HALF YEAR ENDED 31 MARCH 2022

• Operating revenue and EBITDA declined by 6.5% and 4.6% respectively.
• In constant currency terms1 and excluding NBN migration revenue and Jobs Support Scheme credits, operating revenue was down 4.5%, but EBITDA rose 1.9% mainly driven by Australia Consumer.
• Associates' post-tax profit contributions grew 18% with strong performance by Airtel.
• Underlying net profit was up 4.9%.
• Net profit increased to S$995 million after including a net exceptional gain.
• Free cash flow declined 23% on lower operating cash flow and stable capital expenditure.

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

• Operating revenue and EBITDA were down 1.9% and 1.7% respectively in another challenging year marked by the COVID-19 pandemic.
• Associates' post-tax profit contributions increased 19% driven by Airtel.
• Underlying net profit was up 11%.
• Net profit increased more than three-fold to S$1.95 billion after including a net exceptional gain compared to a net exceptional loss last year.
• Free cash flow declined 9.2% mainly on lower operating cash flow.

1 Assuming constant exchange rates for the Australian Dollar, United States Dollar and/or regional currencies (Indian Rupee, Indonesian Rupiah, Philippine Peso and Thai Baht) from the corresponding second half year ended 31 March 2021.