Mobile Business Overview

8/2/2019 Mobile Business Overview

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SingTel Investor Day:Mobile Business Overview

Michael Smith

Managing Director, Consumer11 July 2011


2/27

Forward looking statements - important note

The following presentation may contain forward looking statements by the management of SingTto financial trends for future periods, compared to the results for previous periods.

Some of the statements contained in this presentation that are not historical facts are statements of fwith respect to the financial conditions, results of operations and businesses, and related plans and olooking information is based on management's current views and assumptions including, but not limeconomic and market conditions. These statements involve known and unknown risks and uncertaintieactual results, performance or events to differ materially from those in the statements as origistatements are not, and should not be construed as a representation as to future performance

In particular, such targets should not be regarded as a forecast or projection of future performanceIt should be noted that the actual performance of SingTel Group may vary significantly from such targets


3/27

1 Market overview

3 Future opportunities & strategy

2 FY11 performance

Today


4/27

1 Market overview

3 Future opportunities & strategy

2 FY11 performance

Today


5/27

Source: JP Morgan

Growth in the Australian telco market is driven by mobile

TELECOMMUNICATIONSMARKET REVENUE

MOBILEMARKET REVENUE

CY10CY09CY10CY09

UP2.2%

UP8.5%


6/27

Source: Merrill Lynch

YOY Mobile Subscriber Growth - CY10

2.7%

5.2%

9.8%

15.0% 15.0%

GermanySpain Italy UK France

YOY Data Revenue Growth

-4.8%

0.5%

2.6%

4.4% 4.4%

6.0% 6.2%

9.8%

UK

USAFranceSpainItalyGermany AustraliaSingapore

underpinned by leading subscriber and strong datarevenue growth amongst worlds developed economies


7/27

Key drivers of mobile service revenue growth

Source: JP Morgan

52.4%

Dec-10Dec-08

48.6%

Jun-09 Dec-09 Jun-10

54.4%

49.2%

51.4%

Mobile share of total Telco Revenue

Fixed to Mobile Substitution

CY09

14,733

9,448(64%)

5,285(36%)

CY08

13,515

9,311(69%)

4,204(31%)

CY07

12,182

8,853(73%)

3,329(27%)

CY06

11,131

8,569(77%)

2,562(23%)

Voice Revenues ($Data Revenues ($M)

MBB and handset data grow

UP9%

CAGR


8/27

Source: Optus estimon market disclosu

142837580108

774641618

738

560

Dec-10June-10Dec-09June-09Dec-08

SEQUENTIAL CHANGE IN MOU (MILLIONS), SIX MONTHS TO

SEQUENTIAL CHANGE IN BROADBAND SUBSCRIBERS (000), SIX MONTHS TO

Fixed

Mobile

Sustained fixed to mobile shift for both voice and data

Source: JP Morgan

-862-1,043

-873-634

-855

1,639

1,0161,145

5981,050

Dec-10June-10Dec-09June-09Dec-08

FixedMobile


9/27

Smartphone penetration drives growth in use of data products

58%

74%68%70%

87%89%91%

16%

28%

54%49%50%

85%88%

4%9%

23%27%

11%

57%

78%

InternetPhotosSMS GPS Nav.EmailMMSGames

Non-internet capable mobile phone

Internet capable non-smartphone

Smartphone

12%

36%

73%

95%

18%

50%

77%

95%

Mobile Phone Games ConsoleLaptop/NetbookPC/Desktop eRor

20102009

DEVICES EVER USED TO ACCES2010 vs 2009

FUNCTIONS USED ON MOBILE PHONES,SPLIT BY TYPE OF PHONE OWNED 2010

Source: Nielsen The Australian Online Consumer Report, February 2011** Access via devices like tablets, PVRs / internet enabled TV was not captured in 2009

**


10/27

Consumer Confidence

However various headwinds are emerging

CAGR:

-3%

Dec-10Jun-10Dec-09Jun-09Dec-08

A$/Minute (Mob industry minutes / Pre+Post revenue, ex WBB)

* A$350, + unlimited on-net calls

Westpac Consumer Confidence Index - June 2011

555

88 74

Dec-10

Source: Company disclosures, Optus analy** VHA branded net adds

Mobile net adds for the quarte

Investment in the resources sector is picking up strongly and the outlook remains verypositive... In other areas, cautious behaviour by households are having a not iceabledampening effect.Statement by Glenn Stevens, Governor RBA: Monetary Policy Decision (5 July 2011)

Pricing PressureCompetitive Aggre

**

Increase in plan inclusions

$250

$350$4

50

Included value (A$)

A$49Mar-10 A$49Mar-10A$49Mar-11A$45Mar-11

Umiecses&

sanwk

*


11/27

1 Market overview

3 Future opportunities & strategy2 FY11 performance

Today


12/27

12.5%

14.3%

11.0%10.3%

6.7%

Mar-11Sep-10Mar-10Sep-09Mar-09

OPTUS MOBILE SERVICE REVENUE GROWTH (YoY)

Service revenue growth softens as competitors discount price inclusions increase

Note: All numbers are HY


13/27

Prepaid being impacted by a number of industry dynamics

4,307 4,359 4,404 4,342 4,295

Mar-10 Sep-10Jun-10 Mar-11Dec-10

Optus Subscriber Growth Prepaid (000)

Prepaid subscriber

growth under press Industry prepaid to postpaid Highly competitive market:

Telstras subscriber push

New competitors (e.g. Leb

Vodafones Infinite offe

Higher churn from Optus Int

for Less customers1

+1% +1% -1% -1%

24.825.825.2

26.4

23.6

20

25

30

Dec-10 Mar-11Sep-10Jun-10Mar-10

Optus Prepaid ARPU (A$) for quarter

1: International Calls for Less plan was launched in N

offering attractive rates for international calls


14/27

but Postpaid continues to grow

POSTPAID SUBSCRIBERS (000s)

+139 (+3%) +143 (+3%) +150 (+3%) +151 (+3%)

WIRELESS BROADBAND SUBSCRIBERS (000s)

4,7734,6224,4734,3304,191

Mar-11Dec-10Sep-10Jun-10Mar-10

+88 (+10%) +101 (+10%) +92 (+8%) +94 (+8%)

POSTPAID ARPU YoY GROWTH EXCLUDINGWIRELESS BROADBAND SUBSCRIBERS

Q1 FY11 2%

Q2 FY11 5%

Q3FY11 2%

Q4 FY11 2%

1,2821,1881,096994907

Mar-11Dec-10Sep-10Jun-10Mar-10


15/27

Smartphone penetration and innovative data services driving data grow

OPTUS DATA SHARE OF SERVICE REVENUE

3%

5%

9% 13%18%

2011

40%

23%

2010

36%

23%

2009

33%

24%

2008

28%

23%

2007

24%

20%

SMS % of Service Rev

Non SMS Data % of Service Rev

Note: All numbers are FY end

389,000 live streamsof the 2010 FIFA World

Cup matches

79% increasein Australian Open

Tennis live streaming

Goo

Helping SMBs managetheir communications

Unlimited mobileaccess, within

Australia, to these sites
http://www.google.com.au/imgres?imgurl=http://mobile.optuszoo.com.au/cmsweb/static/images/site/tvandvideo-100x85.png&imgrefurl=http://mobile.optuszoo.com.au/cocoon/content/displayStatic.do?file=static/ausopen.html&usg=__4-DRic2ZMLTeo58r8ReMFFi6KAk=&h=85&w=100&sz=8&hl=en&start=7&zoom=1&tbnid=cTi8YgbLT32F7M:&tbnh=70&tbnw=82&ei=PkjwTe_hHo6SuAO7rfGYBA&prev=/search?q=optus+TV&hl=en&safe=active&sa=N&gbv=2&tbm=isch&itbs=1


16/27

OPTUS MBB SUBS (000)

111

486

907

1,282

Mar-11Mar-10Mar-09Mar-08

+375

+421

+375

BROADBAND UPTAKE


17/27

8 9 13

AVERAGE DOWNLOAD TIMES 3MB SONG (SEC)

OPTUS MOBILE CAPEX (A$ MILLION)

575

536495

201120102009

Note: All numbers are FY end

8

AVERAGE UPLOA

Sydney Morni

30 sitesand met

Data tra Tested o

Increased investment leading to network performance improvemen


18/27

Weve deliveredcompetition to

more than14 townsin the last year

Our networkcoverage reaches

97% ofAustralians

Weve expanded

covering

over700,000km2

Fibre backhaul to

over 80% of

metro sites

Weve delivered

1000

in-buildingsolutions,

improving coveragefor our metro

customers

Over

660 mobilesites built

during FY11

In the last three yearsweve invested over

$1.6 billionin the Open

Network

FemtocellLeveraging

fixed network

Optus the leading challenger network


19/27

The Customer Experience program continuesto deliver improvements for our Mobile Customers

Reduction in numberof technical enquiries

through a simplified activatioprocess in Mobile Billing andGeneral enquiries

Faster delivery of onlineorders for mobile handsets

Reduction in early tenurechurn in Post Paid Mobile

Outperforming our major competitor in key CE metrics

+5%

+4%

+7%

Activation

Billing

CustomerService


20/27

1 Market overview

3

2 FY11 performance

Today

Future opportunities & strategy


21/27

Driving a breakthrough in Customer Experience

Driving a Customer-centric attitude

Fix vital serviceexperience Design for LifeProduct is the Network

Understand the CustomerLink Cust

Experience tClosed Loop Feedback

We are resolving the keyCustomer pain points.

We will continue to investin systems and our people toexceed customer expectations.

We will continue to invest in our networkand will work to close our customersperception gap of our performance.

We will empower our people to drive continuousimprovement by ensuring Customerfeedback is achieved on a timely basis.

We will drive loyaltacquisition, reterewarding of our

We will link CExperience to pe

We will breakout in customer experience


22/27

Device leadership across handsets, tablets and other devices

Number of App

Source: Samsung Secu

10

20

50

iOS

Windows

Blackberry

Android

Symbian
http://images.google.com.au/imgres?imgurl=http://pulse2.com/wp-content/uploads/2009/02/kindle21.jpg&imgrefurl=http://pulse2.com/2009/02/28/the-text-to-speech-feature-on-the-kindle-2-is-legal/&usg=__C8FUWFE_gxCtAihOigM2AFxwgUQ=&h=504&w=504&sz=58&hl=en&start=34&um=1&tbnid=OyDHAi1btQhlcM:&tbnh=130&tbnw=130&prev=/images?q=kindle&ndsp=18&hl=en&sa=N&start=18&um=1


23/27

Deliver relevant and personalised digital services to our customers

Lead in online digital experiencewith products and VAS of

RELEVANCE

Optus Smart Safe

secured data accessible on any device easily shared with friends and family

Google Apps Partnership

helping small medium businesses manage range of integrated business tools accessible via a single web portal on a ran dedicated IT helpdesk offering up to 24/7 s

Optus Smart Safe Optus Call BuddyOptus Now


24/27

Leverage distribution to compete

Mar-112009

Branded Retail

Metro

Regional

Mar-11Mar-10

+241

Optus Distribution Landscape

+41
http://www.virginmobile.com.au/index.html


25/27

FItran

COMPLETEupgrade

to HSDPA+

CONTINUEregional

expansion

INVESTin metro

network depth

Mobile 2012 and beyond

Increase our investment in the mobile network

With the continuing significant investment, Optus is the only carrier capaof challenging the incumbent telcos network on both coverage and spee


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26

Video: Network


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SingTel Investor Day:Mobile Business Overview

Michael Smith

Managing Director, Consumer

11 July 2011

Documents

Mobile Business Overview