Singtel Investor Day 2023
Capital Management and Value Creation for Growth
Arthur Lang, Group CFO
24 August 2023
Key business units
Core business | Growth engines | Strategic portfolio |
of Associates |
Digital InfraCo
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On track to creating more shareholder value
ROIC needs to | Growth engines | Value creation |
keep improving | a key focus | opportunities |
still significant | ||
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Low double digit ROIC1 by FY26
Target Group ROIC
Low double digit
8%1 | |
FY23 | FY26F |
Increasing efficiencies for Optus & Singtel SG
Sale/closure of loss-making businesses
Reduced capital intensity
Airtel improvement
1. Excluding Optus goodwill.
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Key drivers of ROIC | |||
Key drivers | |||
Regional | ▪ | Capture fixed opportunity | |
Associates | ▪ | Focus on market repair & cost management | |
Singtel | ▪ | Accelerate 5G monetisation | |
ROIC > | ▪ | Capitalise on enterprise digital transformation | |
Singapore | |||
WACC | ▪ | Integration of consumer & enterprise to drive growth & cost synergies | |
▪ Grow international & enterprise business | |||
NCS | ▪ | Cost-to-serve optimisation | |
▪ End-to-end digital proposition | |||
ROIC < | ▪ Build on rational market competition & customer gains | ||
Optus | ▪ | Scale integrated consumer & enterprise business to drive growth | |
WACC | |||
▪ | Focus on cost management to mitigate inflation pressures | ||
Negative | Trustwave | ▪ | Complete strategic review |
ROIC | ▪ | Continued focus on cost efficiencies | |
Asset | ▪ Ride wave of demand for cloudification & AI adoption | ||
RDC1 | ▪ | Stabilised yield in mid-teens | |
yield | |||
▪ | Leverage strategic partnerships to scale | ||
1. Regional Data Centre.
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SingTel - Singapore Telecommunications Limited published this content on 23 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 August 2023 10:14:09 UTC.