Singapore Telecommunications (Z74) Status update summary

Strategic transformation and operational reset

• Simplified operating structure by consolidating consumer and business units in Singapore and Australia, driving synergies and launching a SGD 600 million cost reduction program for FY2024-2026.

• Carved out NCS (IT services) and Nxera (data center) as growth engines to scale rapidly and unlock 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 partnerships.

• Optimized capital use to fund growth, pay down debt, and return value to shareholders.

Capital recycling and partnerships

• Divested Optus Tower assets for SGD 1.9 billion and established capital partnerships, such as KKR's 20% stake in the data center business for SGD 1.1 billion.

• Redeveloped Comcentre headquarters with Lendlease, unlocking property value.

• Capital recycling initiatives have unlocked SGD 8 billion to date, supporting growth and shareholder returns.

ST28 strategy and growth blueprint

• ST28 addresses investor feedback: improving core business, scaling growth engines, sustaining dividends, and linking capital recycling to dividends.

• Two-pronged approach: lift business performance (core and growth engines) and smart capital management for better shareholder rewards.

• Plans to grow core business via consolidation, product simplification, and cost efficiency.

• Growth engines focus on AI, digitalization, and expanding data center capacity from 62 MW to over 200 MW regionally.

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