Singapore Telecommunications (Z74) Status update summary

Strategic transformation and operational reset

• Consolidated consumer and business units in Singapore and Australia to drive synergies and launched a SGD 600 million cost reduction program for FY2024–2026.

• Carved out NCS (IT services) and Nxera (data centers) as growth engines to scale rapidly and highlight their value.

• Exited loss-making digital investments, removing SGD 200 million in annual EBIT losses.

• Raised SGD 8 billion through a capital recycling program, including major divestments and capital partnerships.

• Used unlocked capital to fund growth, pay down debt, and return value to shareholders.

Capital management and shareholder returns

• Sold Optus Tower assets for AUD 1.9 billion and secured a SGD 1.1 billion investment from KKR in the data center business.

• Established partnerships, such as with Lendlease, to unlock property value.

• Introduced a revised dividend policy with a core dividend (70%-90% of underlying net profit) and a value realisation dividend (VRD) of SGD 0.03–0.06 per share annually.

• Increased total ordinary dividend by 52% to SGD 0.15 per share in FY2024.

• Identified a further SGD 6 billion in capital recycling pipeline to support growth and dividends.

Growth strategy and ST28 blueprint

• ST28 strategy focuses on lifting business performance and smart capital management.

• Plans to grow both core business and growth engines, leveraging consolidation and cost efficiencies.

• NCS is investing in AI and digital resilience, while Nxera aims to expand data center capacity from 62MW to over 200MW regionally.

• Regional associates to drive growth in fixed broadband and enterprise services in under-penetrated markets.

• Sustained value realization targeted through higher growth and dividends.