Singapore Telecommunications (Z74) Investor Day 2025 summary

Financial Performance and Shareholder Returns

• EBIT grew 20% last year and 11% in the latest quarter, with EBIT margin rising to 12.3% in FY25 and high-single digit EBIT growth guidance reaffirmed for this year.

• Achieved robust underlying NPAT growth, with cost savings of S$250M in FY25 as part of a S$0.6B cost-out program from FY24-26, and SGD 200 million targeted for this fiscal year.

• Realized S$4B of a S$9B mid-term asset recycling target, including S$2B from the Value Realisation Share Buyback (VRSB), with a SGD 2 billion share buyback planned through 2028.

• Dividend payout has grown for four consecutive years, more than doubling since FY21, with SGD 1 billion targeted from regional associates this year and a 3-year annualized TSR of 13%.

• Core dividend growth is supported by higher underlying NPAT, with a payout ratio of 70-90% and additional VRD and VRSB programs to provide sustained uplift.

Strategic Growth Engines and Capital Management

• Growth engines (NCS, Nxera, etc.) are scaling, targeting 30-35% EBITDA contribution in the medium term, up from 14% in FY25.

• S$9B of assets identified for recycling, with S$4.3B in cash and dynamic asset recycling funding VRD on a sustainable basis.

• Ample headroom for returns and growth, with up to S$5B for VRD and S$2B for VRSB over the next five years.

• Three-pronged capital return strategy: core dividend (70%-90% payout), value realization dividend (VRD), and share buyback.

• Emphasis on capital partnerships to fund growth engines without diluting public shareholders.

Business Developments and Market Leadership

• Singtel SG leads in the consolidated market with differentiated offerings, premium 5G+ plans, and a digital operating model for value seekers.

• Optus is focused on improving ROIC, margin expansion, disciplined cost management, and leveraging a healthier competitive environment in Australia, including a MOCN partnership with TPG for capex savings.

• Regional associates (Airtel, Telkomsel, AIS, Globe) drive ARPU growth, fiber rollout, enterprise expansion, and digital services, with strong dividend contributions.

• Associates are focusing on ARPU growth, broadband adoption, enterprise penetration, and co-investment in data centers.

• Dividend growth is targeted to be sustainable, driven by operational performance and capital management.