Singapore Telecommunications (Z74) Status update summary

Strategic reset and transformation

• Completed a strategic reset initiated in 2021, simplifying operations and focusing on growth engines in ICT and data centers.

• Exited or closed loss-making businesses to streamline the business portfolio.

Capital management and growth strategy

• Raised SGD 8 billion through asset recycling and attracted major investors like KKR.

• Focused on execution to grow earnings, improve free cash flow, and target low double-digit returns on capital.

• Plans to use private capital to further expand the capital-intensive data center business.

Dividend policy update

• Revised dividend policy maintains a 70%-90% payout of underlying net profits and introduces a value realization dividend of SGD 0.03–0.06 per year.

• Value realization dividend funded by excess capital from a SGD 6 billion asset recycling pipeline.

• This year’s total ordinary dividend is SGD 0.15, a 52% increase from last year, with the new dividend component embedded for the medium term.