Singapore Telecommunications : Q3 Business Updat

Business Update For The Third Quarter And Nine Months Ended 31 December 2022

Singapore, 16 February 2023 - Singtel reported its business update for the third quarter and nine months ended 31 December 2022.

Key highlights for the third quarter

• Underlying net profit was up 18% to S$559 million, driven mainly by Airtel's strong growth momentum
• Net profit was down 28% to S$532 million due to a net exceptional gain in the corresponding quarter last year. The higher base of S$734 million in the comparable quarter was due mainly to the partial divestment of Indara1
• Operating revenue and EBITDA declined 5.1% and 8.0% respectively with the absence of contributions from Amobee2 and steep 8% decline in the Australian Dollar
• On an underlying basis3, operating revenue would have been up 6.0% led by higher NCS' revenue and a rebound in roaming across Singapore and Australia while EBITDA would have been down 3.2% due to Optus and NCS

	Quarter		YOY	Nine Months			YOY
	31 Dec	31 Dec			Chge	31 Dec	31 Dec				Chge
	2022	2021		Chge	in cc (1)	2022	2021		Chge		in cc (1)
	S$ m	S$ m		%	%		S$ m	S$ m		%		%
Operating revenue	3,713	3,913		-5.1	-0.9							-2.4
	10,972	11,566		-5.1
Underlying operating revenue (2)	3,713	3,655		1.6	6.0		10,972	10,766		1.9		4.9
EBITDA				-8.0	-3.9					-4.5		-1.5
911	990			2,788	2,918
Underlying EBITDA (2)	911	983		-7.3	-3.2		2,788	2,852		-2.3		0.8
EBIT (before associates' contributions)	288	313		-8.1	-6.3		867	886		-2.1		-0.5
Underlying EBIT (2)	288	324		-11.0	-9.2		867	869		-0.3		1.4
Share of regional associates' post-tax profits	407	332		22.6	31.2		1,216	1,052		15.6		20.5
Underlying net profit	559	473		18.2	24.5		1,564	1,456		7.5		11.3
Net profit	532	734		-27.6	-23.6		1,701	1,688		0.8		4.0

Notes:

1. Assuming constant exchange rates for the Australian Dollar and United States Dollar and/ or regional currencies from the corresponding periods ended 31 December 2021.
2. Excluded Optus' NBN migration revenue and Amobee' results.

1. Refers to Indara Corporation Pty Ltd (known as Australia Tower Network Pty Limited (ATN) before December 2022).
2. Amobee was classified as a 'subsidiary held for sale' as at 31 March 2022 and ceased to be consolidated on a line-by-line basis from 1 April 2022. In September 2022, the Group completed the sale of Amobee.
3. In constant currency basis and excluding contributions from NBN migration and Amobee.

Message from Group CEO, Mr Yuen Kuan Moon

"It was a challenging quarter but we had distinct positives in the form of the strong roaming recovery across our core consumer and enterprise businesses; a return to customer net adds over the last two months as Optus regained customer trust and confidence after last year's cyber attack; while our Airtel associate continued to show strong growth momentum. As companies accelerate their digital transformation, NCS' order book remains strong although labour and acquisition costs continue to affect margins. However, we expect NCS' margins to improve as the cost of scaling the business eases in the coming quarters. We are keeping a tight rein on the Group's business costs in the current inflationary environment while balancing the need to invest in growth and innovation as we steadily execute on our strategic priorities against this uncertain economic backdrop."

Table Of Contents

Pg

Group Summary Income Statement …....……………………………………………………………… 4

Business Segments Income Statement…................................................................................... 5

Review Of Group Operating Performance …....……………………………………………………… 6

Share Of Results Of Regional Associates…............................................................................... 8

Exceptional Items……......…..….................................................................................................... 9

Appendix 1: Key Product Information	10
Appendix 2: Currency Table…………………………………………………………………………… 12

Singapore Telecommunications Ltd And Subsidiary Companies

Page 4

GROUP SUMMARY INCOME STATEMENT

For The Third Quarter and Nine Months Ended 31 December 2022

	Quarter		YOY	Nine Months		YOY
	31 Dec	31 Dec		Chge	31 Dec	31 Dec		Chge
2022	2021	Chge	in cc (1)	2022	2021	Chge	in cc (1)
	S$ m	S$ m	%	%	S$ m	S$ m	%	%

Operating revenue	3,713	3,913	-5.1	-0.9	10,972	11,566	-5.1	-2.4
EBITDA	911	990	-8.0	-3.9	2,788	2,918	-4.5	-1.5
- EBITDA margin	24.5%	25.3%			25.4%	25.2%

Share of associates' pre-tax profits	572	479	19.3	27.3	1,729	1,526	13.3	17.9
EBITDA and share of associates' pre-tax profits	1,482	1,469	0.9	6.3	4,517	4,444	1.6	5.2
Depreciation & amortisation	(622)	(676)	-7.9	-2.7	(1,921)	(2,032)	-5.5	-2.0
EBIT
860	793	8.5	14.1	2,596	2,412	7.6	11.2
Net finance expense	(91)	(100)	-8.8	-4.5	(287)	(235)	22.5	26.0
Profit before exceptional items and tax	769	693	11.0	16.7	2,308	2,177	6.0	9.6
Taxation	(208)	(217)	-4.3	0.5	(738)	(713)	3.4	6.5
Minority interests	(2)	(3)	-40.0	-40.0	(6)	(8)	-21.3	-21.3
Underlying net profit	559	473	18.2	24.5	1,564	1,456	7.5	11.3
Exceptional items (post-tax)	(28)	261	nm	nm	137	232	-41.1	-41.4
Net profit	532	734	-27.6	-23.6	1,701	1,688	0.8	4.0

"nm" denotes not meaningful.

Note:

1. Assuming constant exchange rates for the Australian Dollar, United States Dollar and/ or regional currencies from the corresponding periods ended 31 December 2021.

Singapore Telecommunications Ltd And Subsidiary Companies

Page 5

BUSINESS SEGMENTS INCOME STATEMENT

For The Third Quarter and Nine Months Ended 31 December 2022

	Quarter		YOY	Nine Months		YOY
	31 Dec	31 Dec			Chge	31 Dec	31 Dec			Chge
	2022		2021 (2)		Chge	in cc (1)	2022	2021 (2)		Chge	in cc (1)
	S$ m	S$ m		%	%		S$ m	S$ m		%	%
Operating revenue
Optus	1,905		1,981		-3.8	4.4		5,748	5,943		-3.3	2.2
Singapore Consumer	497		482		3.0	3.0		1,371	1,349		1.6	1.6
Group Enterprise (2)(3)	645		650		-0.8	-0.8		1,909	1,894		0.8	0.8
NCS-originated	676		559		21.0	21.0		1,959	1,625		20.6	20.6
Singtel-originated(4)	-		-		-	-		-	41		nm	nm
NCS (3)	676		559		21.0	21.0		1,959	1,666		17.6	17.6
Trustwave (3)	40		87		-54.3	-55.1		125	286		-56.4	-57.5
Less: Intercompany eliminations (5)	(49)		(96)		-48.9	-48.9		(139)	(313)		-55.7	-55.7
			3,662		1.4	5.8		10,972	10,825		1.4	4.3
Amobee (6)	3,713
-		251		nm	nm	-	741		nm	nm
			3,913		-5.1	-0.9		10,972	11,566		-5.1	-2.4
Group	3,713
Optus underlying operating revenue (7)	1,905		1,974		-3.5	4.8		5,748	5,884		-2.3	3.2
Group underlying operating revenue (8)	3,713		3,655		1.6	6.0		10,972	10,766		1.9	4.9
EBITDA
Optus	474		558		-15.1	-7.9		1,507	1,607		-6.3	-1.1
Singapore Consumer	175		156		12.5	12.5		504	454		11.0	11.0
Group Enterprise (2)(3)	280		284		-1.3	-1.3		824	826		-0.3	-0.3
NCS (3)	51		71		-28.5	-28.5		161	219		-26.6	-26.6
Trustwave (3)	(32)		(35)		-8.8	-11.1		(90)	(86)		4.8	1.8
Corporate	(28)		(40)		-30.3	-30.3		(96)	(103)		-6.3	-6.3
Less: Intercompany eliminations (5)	(10)		(5)		113.0	113.0		(21)	(6)		237.7	237.7
Amobee (6)	911		990		-8.0	-3.9		2,788	2,911		-4.2	-1.3
-		*		nm	nm	-	7		nm	nm
	911		990			-3.9		2,788	2,918		-4.5	-1.5
Group			-8.0
Optus underlying EBITDA (7)	474		551		-14.0	-6.7		1,507	1,548		-2.7	2.6
Group underlying EBITDA (8)	911		983		-7.3	-3.2		2,788	2,852		-2.3	0.8
EBIT (before associates' contributions)
Optus	61				-37.1	-31.7		220			6.4
	97			207		11.9
Singapore Consumer	99		85		15.8	15.8		272	238		14.2	14.2
Group Enterprise (2)(3)	189		191		-1.2	-1.2		550	556		-1.1	-1.1
NCS (3)	23		50		-53.9	-53.9		76	155		-50.7	-50.7
Trustwave (3)	(36)		(42)		-14.0	-15.9		(103)	(109)		-5.5	-8.2
Corporate	(37)		(46)		-19.0	-19.0		(126)	(111)		13.2	13.2
Less: Intercompany eliminations (5)	(10)		(4)		127.3	127.3		(22)	(7)		228.8	228.8
Amobee (6)	288		331		-12.9	-11.2		867	928		-6.6	-5.1
-		(17)		nm			-	(42)		nm
		nm		nm
	288		313			-6.3		867	886		-2.1	-0.5
Group			-8.1
Optus underlying EBIT (7)	61		90		-32.1	-26.4		220	148		48.9	55.4
Group underlying EBIT (8)	288		324		-11.0	-9.2		867	869		-0.3	1.4

"*" denotes less than +/-S$0.5 million and "nm" denotes not meaningful.

Notes:

1. Assuming constant exchange rates for the Australian Dollar and United States Dollar from the corresponding periods ended 31 December 2021.
2. Segment results have been restated to be consistent with the organisation chart in FY2023.
3. Based on statutory view, which include revenue earned as a vendor to the other entities in the Singtel Group.
4. Singtel-originatedbusiness ceased from 1 October 2021.
5. Comprised eliminations of intercompany transactions between Group Enterprise, NCS and Trustwave.
6. Amobee was classified as a 'subsidiary held for sale' as at 31 March 2022 and ceased to be consolidated on a line-by-line basis from 1 April 2022. In September 2022, the Group completed the sale of Amobee.
7. Excluded Optus' NBN migration revenue (Q3 FY2023: A$0.1 million, Q3 FY2022: A$7 million, YTD Dec
   2023: A$0.4 million, YTD Dec 2022: A$58 million).
8. Excluded Optus' NBN migration revenue and results of Amobee.