General Announcement::Business Update for the First Quarter ended 30 June 2021

Business Update For The First Quarter Ended 30 June 2021

Singapore, 12 August 2021 - Singtel reported its business update for the first quarter ended 30 June 2021.

Key highlights for the first quarter

• Operating performance lifted by improved operating and business environment and a stronger Australian Dollar
• Revenue up 7.5% to S$3.80 billion despite lower NBN migration revenue
• EBITDA increased 11% to S$997 million driven mainly by Australia Consumer
• Post-taxcontributions from regional associates jumped 37%, due mainly to Airtel's profit turnaround and Globe's better showing
• Underlying net profit up 31%

	Quarter		YOY
	30 Jun	30 Jun		Chge
	2021	2020	Chge	in cc (1)
	S$ m	S$ m	%	%
Operating revenue	3,798	3,534	7.5	2.4
Underlying operating revenue (2)	3,755	3,433	9.4	4.3
EBITDA	997	897	11.1	5.1
Underlying EBITDA (2)
951	727	30.7	24.0
EBIT (before associates' contributions)	312	262	19.1	15.8
Underlying EBIT (before associates' contributions) (2)
266	92	189.5	185.2
Share of associates' pre-tax profits	533	401	33.0	36.5
Underlying net profit	451	345	30.9	32.6
Net profit/ (loss)	445	(20)	nm	nm

"nm" denotes not meaningful.

Notes:

1. Assuming constant exchange rates for the Australian Dollar, United States Dollar and/ or regional currencies from the corresponding quarter ended 30 June 2020.
2. Excluded Optus' NBN migration revenues and Jobs Support Scheme credits from the Singapore government.

Message from Group CEO, Mr Yuen Kuan Moon

"The easing of COVID-19 restrictions has improved the overall operating and business environment and we are seeing the return of growth across the board in the first quarter. Some of the bright spots included Optus' improved performance, continued broad-based growth in NCS' ICT business and Airtel's profit turnaround.

COVID-19 has also underscored the importance and urgency of digital transformation for business resilience and we are seeing good demand from enterprise customers for our services in digital, cloud, data centre and cyber security. NCS, a key growth engine of our strategy, made gains with growth across all lines of business, and we also extended our lead in 5G, as the first to launch 5G standalone network in Singapore and most recently, 5G roaming. While the resurgence of COVID- 19 in many parts of Asia adds to an already challenging environment, we remain focused on investing in 5G and our digital capabilities which underpin our efforts to drive recovery and growth. The strategic reset that we have set in motion, positions us to capitalise on this rising trend of digitalisation to support post-pandemic economic recovery and we continue to be disciplined in capital deployment and focused on delivering shareholder value."

Table Of Contents

	Pg
Group Summary Income Statement …....……………………………………………………………… 1
Business Segments …....……………………………………………………………....…………....	2
Review Of Group Operating Performance …....……………………………………………………… 3
Share Of Results Of Regional Associates…............................................................................... 5
Exceptional Items……......…..….................................................................................................... 6
Appendix 1: Key Product Information..........................................................................................	7
Appendix 2: FY2021 Quarterly Segments Results (Restated)……………………………………… 10
Appendix 3: Currency Table……………………………………………………………………………… 12

Singapore Telecommunications Ltd And Subsidiary Companies

Page 1

GROUP SUMMARY INCOME STATEMENT

For The First Quarter Ended 30 June 2021

	Quarter			YOY
	30 Jun		30 Jun				Chge
	2021	2020		Chge		in cc (1)
	S$ m		S$ m		%		%
Operating revenue	3,798		3,534		7.5		2.4
EBITDA	997	897		11.1		5.1
- EBITDA margin	26.2%	25.4%
Share of associates' pre-tax profits	533		401		33.0		36.5
EBITDA and share of associates' pre-tax profits	1,530	1,298		17.9		14.8
Depreciation & amortisation	(685)	(636)		7.8		0.8
EBIT
845	663		27.5		28.3
Net finance expense	(97)	(101)		-4.2		-8.4
Taxation	(294)	(216)		36.4		38.1
Minority interests	(3)	(1)		123.1		123.1
Underlying net profit	451	345		30.9		32.6
Exceptional items (post-tax)	(6)	(364)		-98.3		-98.8
Net profit/ (loss)	445	(20)		nm		nm

"nm" denotes not meaningful.

Note:

1. Assuming constant exchange rates for the Australian Dollar, United States Dollar and/ or regional currencies from the corresponding quarter ended 30 June 2020.

Singapore Telecommunications Ltd And Subsidiary Companies

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BUSINESS SEGMENTS

	Quarter		YOY
	30 Jun	30 Jun			Chge
	2021	2020 (1)	Chge		in cc (2)
	S$ m	S$ m	%		%
Operating revenue
Singapore Consumer	414	409	1.3		1.3
Australia Consumer	1,717	1,595	7.7		-2.6
Group Enterprise (3)	920	900	2.2		-1.1
NCS-originated	500	461	8.5		8.5
Singtel-originated(4)	28	39	-27.1		-27.1
NCS (3)	528	499	5.7		5.7
Trustwave (3)	98	96	2.6		3.1
Amobee	236	151	56.2		65.5
Less: Intercompany eliminations (5)	(114)	(115)	-1.0		-2.8
Group	3,798	3,534	7.5		2.4
Underlying operating revenue (6)	3,755	3,433	9.4		4.3
EBITDA
Singapore Consumer	149	156	-4.3		-4.3
Australia Consumer	506	410	23.5		11.9
Group Enterprise (3)	307	306	0.1		-1.0
NCS (3)	84	83	1.9		1.9
Trustwave (3)	(24)	(27)	-10.0		-4.4
Amobee	5	(12)	nm		nm
Corporate (7)	(28)	(17)	65.5		65.5
Less: Intercompany eliminations (5)	(1)	(1)	**		**
Group	997	897	11.1		5.1
Underlying EBITDA (6)	951	727	30.7		24.0
EBIT (before associates' contributions)
Singapore Consumer	74	90	-18.3		-18.3
Australia Consumer	86	41	111.6		95.3
Group Enterprise (3)	164	166	-1.5		-0.2
NCS (3)	63	59	6.1		6.1
Trustwave (3)(8)	(33)	(41)	-20.4		-15.8
Amobee (8)	(11)	(33)	-66.7		-64.4
Corporate (7)	(30)	(19)	58.5		58.5
Less: Intercompany eliminations (5)	(1)	(1)	**		**
Group	312	262	19.1		15.8
Underlying EBIT (before associates' contributions) (6)	266	92	189.5		185.2

"**" denotes less than +/-0.05% and "nm" denotes not meaningful.

Notes:

1. Segment results have been restated to be consistent with the organisation chart in FY2022.
2. Assuming constant exchange rates for the Australian Dollar and United States Dollar from the corresponding quarter ended 30 June 2020.
3. Based on statutory view, which include revenue earned as a vendor to the other entities in the Singtel Group.
4. Singtel-originatedbusiness have been progressively transferred to Singtel from 1 April 2021 as part of the Singtel Group's restructuring. The transfers are expected to be substantially completed by September 2021.
5. Comprised eliminations of intercompany transactions between Group Enterprise, NCS and Trustwave.

Singapore Telecommunications Ltd And Subsidiary Companies

Page 3

1. Excluded Optus' NBN migration revenues (Q1 FY2022: A$42 million, Q1 FY2021: A$108 million) and Jobs
   Support Scheme credits from the Singapore government (Q1 FY2022: S$3 million, Q1 FY2021: S$69 million).
2. Excluding Jobs Support Scheme credits, EBITDA loss would be S$28 million (Q1 FY2021: S$25 million)
   and EBIT loss would be S$31 million (Q1 FY2021: S$27 million).
3. With impairment provisions made for acquired intangibles as at 31 March 2021, Trustwave's amortisation of acquired intangibles was nil (Q1 FY2021: S$6 million) and Amobee's amortisation of acquired intangibles was nil (Q1 FY2021: S$7 million).

REVIEW OF GROUP OPERATING PERFORMANCE

For The First Quarter Ended 30 June 2021

The Group's operating revenue, EBITDA and EBIT1 for the first quarter ended 30 June 2021 rose strongly by 7.5%, 11% and 19% respectively on improved operating and business environment as COVID-19 lockdowns and restrictions eased from last year. The results were also lifted by the 11% appreciation of the Australian Dollar. In constant currency terms and excluding NBN migration revenue and Jobs Support Scheme ("JSS") credits, operating revenue and EBITDA were up 4.3% and 24% respectively, mainly driven by the Australia Consumer business. Consequently, EBIT1 increased by 185% reflecting the improved EBITDA and stable depreciation and amortisation charges.

In Singapore Consumer, operating revenue increased 1.3% year-on-year despite price competition amid the entry of more MVNOs2. The increase was driven by higher mobile service, fixed broadband and equipment sales but was partially offset by lower voice. Mobile service revenue grew 1.8% and outperformed competition as postpaid mobile revenue rose on increased adoption of higher ARPU 5G plans, offsetting declines in prepaid sales and usage. Fixed broadband revenue grew as a result of higher equipment sales and an increased mix of higher speed fibre plans. Roaming and prepaid mobile revenues continued to be muted on the back of the ongoing travel restrictions and reduced number of overseas visitors and foreign workers. Excluding JSS credits of S$1 million (Q1 FY2021: S$18 million), EBITDA increased 7.2% reflecting higher operating revenue and lower TV content cost. Singtel continued to make strides since the launch of its 5G standalone network in May with the introduction of 5G roaming to 13 destinations with 18 global partners in July.

In Australia, the consumer business reported a strong first quarter with good momentum and market traction. While operating revenue was down 2.6%, EBITDA grew by double digits to 12%, a result of improved mobile postpaid ARPU, cessation of COVID-19 related customer fee waivers and rebates and lower bad debts provision. Mobile service revenue was up 11%, driven by higher penetration of Optus Choice plans which partially offset the impact of lower roaming and prepaid mobile revenues from the lower number of travellers. NBN migration revenue fell to A$42 million from A$108 million in the same quarter last year as migrations near completion and NBN implemented a 'stop-sell' on account of global chipset shortages. Excluding NBN migration revenue, operating revenue and EBITDA rose by 1.4% and 36% respectively. Optus' 5G speed leadership continued in Australia with leading speeds in Sydney, Melbourne and Newcastle.

Group Enterprise recorded a resilient set of results, delivering stable EBITDA with a 2.2% increase in operating revenue. ICT revenue increased on higher demand for data centre and cyber security services. The growth was partially offset by lower legacy carriage business. Voice usage fell as a result of data substitution and lower roaming from the drop in business travel. Excluding JSS credits of S$10 million in the first quarter last year, EBITDA would have been up 3.3%.

1. Before associates' contributions.
2. 'MVNO' refers to Mobile Virtual Network Operator.