Singapore Telecommunications Limited And Subsidiary Companies‌‌‌‌‌‌‌‌‌‌‌

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION, RESULTS OF OPERATIONS AND CASH FLOWS

FOR THE FOURTH QUARTER AND YEAR ENDED 31 MARCH 2017

The financial statements of the Group are prepared in accordance with Singapore Financial Reporting Standards, which are the same, in material respects, to International Financial Reporting Standards. The financial statements for the year ended, and as at, 31 March 2017 are audited.

Numbers in all tables may not exactly add due to rounding.

For all pages, "@" denotes more than +/- 500%, "*" denotes less than +/- S$0.5 million or A$0.5 million and "**" denotes less than +/- 0.05%, unless otherwise indicated.

For all tables, a negative sign for year-on-year change denotes a decrease in operating revenue, expense, gain or loss.

Section 1 : Group Pg

Financial Highlights………………….…………………………………………………………………1 Group Summary Income Statements……...……………………………………………………… 3 Business Segments……………………………………………………………………………………4 Final Dividend……..…………………………………………..………………..….………..…………5 Review of Group Operating Performance………………………………………………………… 5 Sequential Quarterly Results…………………………………………………………………………8 Outlook For The Financial Year Ending 31 March 2018………………………………………… 9 Operating Revenue……………………………………………………………………………………11 Operating Expenses………………………………………………………………………………… 13

Staff Costs……………………………………………………………………………………………. 14 Net Finance Expense………………………………………………………………………………… 15 Exceptional Items………………………………………………………………………………………16 Tax Expense……………………………………………………………………………………………17 Summary Statements Of Financial Position……………………………………………………… 18 Liquidity And Gearing………………………………………………………………………………… 19 Cash Flow And Capital Expenditure…………………………………………………………………20 Other Information…………………………………………………………………………………….. 21

Section 2 : Group Consumer

Financial Highlights……………………………………………………………………………………22 Group Consumer Summary Income Statements…..………………………………………………23 Operating Highlights…….……….…………………………………………………………………. 24 Singapore Consumer Summary Income Statements………...……………………………………25 Australia Consumer Summary Income Statements….………..………………………………… 28

Section 3 : Group Enterprise

Financial Highlights……………………………………………………………………………………32 Group Enterprise Summary Income Statements…..………………………………………………33 Operating Highlights……..………...……………………………………………………………… 34 Singapore Enterprise………..…………………………………………………………………………36 Australia Enterprise………….……………………………………………………………………… 37

Section 4 : Group Digital Life

Financial Highlights……………………………………………………………………………………38 Group Digital Life Summary Income Statements…………...…………………………………… 39 Operating Highlights………..…..…………………………………………………………………. 40

Section 5 : Associates/ Joint Ventures Pg

Financial Highlights……………………………………………………………………………… 42 Share Of Results Of Associates/ Joint Ventures………………………………………………43 Group's Proforma Information…………………………………………………………………… 52 Cash Dividends/ Distributions Received From Associates/ Joint Ventures…………………55 Key Operational Data………………………………………………………………………………56

Section 6 : Product Information

Singapore Mobile (Product View)…………………..…………………………………………… 57 Australia Mobile (Product View)………………………………………………………………… 58 Singtel TV (Product View)…………………………………………………………………………59 Singapore Consumer Home………………………………………………………………………59 Other Products…………………………………………………………………………………… 60

Section 7 : Glossary………………………………………………………………………………62

Appendix 1 : Group Summary Income Statements Appendix 2 : Group Statements Of Financial Position Appendix 3 : Cash Flow Statements of Singapore And Optus Appendix 4 : Optus Financials In Australian Dollars Appendix 5 : Currency Risk Management & Other Matters SECTION 1 : GROUP

FINANCIAL HIGHLIGHTS

FOR THE FOURTH QUARTER ENDED 31 MARCH 2017

  • Operating revenue grew 5.2% and would have grown 2.1% in constant currency terms1on higher Data and Internet, Equipment sales and ICT services.
  • EBITDA rose 3.7%. It would have been stable in constant currency terms1.
  • Weaker results at Airtel India on aggressive price competition resulted in stable associates' net profit contributions2and underlying net profit. Excluding Airtel, the associates' net profit contributions2rose 12% and underlying net profit increased 7.0%.
  • With lower exceptional losses, net profit grew 1.8%. Excluding Airtel, net profit was up 9.1%.
  • Free cash flow up 12% to S$764 million due mainly to timing difference in Tekomsel's dividend payment partially offset by higher capital expenditure.

    FINANCIAL HIGHLIGHTS

    FOR THE YEAR ENDED 31 MARCH 2017

  • Operating revenue fell 1.5% impacted by the decline in mobile termination rates3("rates change") in Australia. Excluding the rates change3, operating revenue would have increased 2.0%.
  • EBITDA was stable.
  • The associates' net profit contributions2grew 8.4%, and underlying net profit was up 2.9%. Excluding Airtel, the associates' net profit contributions2rose 13% and underlying net profit grew 4.5%.
  • Net profit was stable, with exceptional losses compared to exceptional gains last year. Excluding Airtel, net profit was up 2.3%.
  • Free cash flow increased by 18% to S$3.20 billion4on working capital movements and higher dividends from associates partly offset by higher capital expenditure.

1 Assuming constant exchange rates for the Australian Dollar, United States Dollar and/or regional currencies (Indian Rupee, Indonesian Rupiah, Philippine Peso and Thai Baht) from the corresponding period/year ended 31 March 2016.

2 Exclude certain exceptional items of Airtel, AIS and SingPost classified under exceptional items of Singtel Group.

3 Effective from 1 January 2016, mobile termination rates in Australia declined and reduced the Group's operating revenue by S$583 million (A$566 million) for FY 2017, with minimal impact on profitability.

4Before S$142 million (A$134 million) paid to the Australian Taxation Office ("ATO") for amended assessments in December 2016 quarter.

SingTel - Singapore Telecommunications Limited published this content on 18 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 18 May 2017 07:48:28 UTC.

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