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Singapore Telecommunications Ltd
Annual Report 2016

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FY2016 Annual Report · Singapore Telecommunications Ltd
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Transforming
with You

Annual Report 2016

137Years

ofTransforming

with You

Beep 
beep

1879
1879
It all began when 
a trial connection 
was made between 
Raffl  es Square and 
Tanjong Pagar using 
a telegraph line.

1955
1955
The Singapore 
Telephone 
Board (STB) was 
established as a 
statutory board 
to provide local 
telephone services.

1962
1962
Subscriber 
Trunk Dialling 
was introduced, 
enabling calls 
between Singapore 
and Kuala Lumpur 
to be made without 
an operator.

1998
1998
We launched 
Singapore’s 
fi rst satellite, 
ST-1, into 
space.

1997
1997
Singapore’s 
mobile market was 
liberalised to spur 
competition. 

We acquired NCS to 
provide seamless, 
end-to-end 
telecommunications 
and IT services. 

1994
1994
Our internet 
arm – SingNet 
was launched 
to connect 
Singaporeans 
to the World 
Wide Web. 

1993
1993
We made our 
debut on the 
Singapore 
Stock Exchange 
and our fi rst 
overseas 
investment 
by acquiring a 
stake in Globe.

1999
1999
We acquired 
an initial 
stake in AIS.

2000
2000
Singapore’s 
telecoms 
market 
was fully 
liberalised.

2001
2001
We acquired Optus, 
our largest overseas 
acquisition, as well 
as an initial stake in 
Telkomsel.

2007
2007
We ventured into the 
cable television business 
with mio TV, off  ering 
quality entertainment 
to Singaporeans.

We acquired 
an initial stake 
in Airtel.

1965
1965
The Singapore Telecommunication 
Department (STD) took over the 
provision  of telecommunications 
services after Singapore’s 
independence. 

STB and STD looked after 
domestic and international 
telephone services respectively.

1971
1971
We built 
Singapore’s 
fi rst satellite 
earth station on 
Sentosa island 
to connect 
Singaporeans
to the world.

1972
1972
STD became 
known as the 
Telecommunication 
Authority of 
Singapore 
(TAS) after a 
re-organisation.

1998819191119191999999999999991999919999999999919199999999919999999919999199999999999999999888888888888888888888888888888888819988
1911199999999999999999919998888888888888888888
We rolled 
out 
Singapore’s 
fi rst mobile 
network.

1974
1974
STB merged 
with TAS 
to form 
Telecoms.

1973
1973
Paging services 
were launched 
to instant 
success.

1992
1992
We changed 
from a 
statutory 
board to a 
corporate 
company 
known as 
SingTel.

2008
2008
We became 
the fi rst mobile 
operator to provide 
high-speed 3G 
networks in 
Singapore.

2012
2012
We embarked on a 
digital transformation to 
strengthen our overall 
business performance. 

2015
2015
We acquired cyber 
security fi rm Trustwave 
to strengthen our global 
cyber security capabilities. 

We celebrated Singapore’s 
Golden Jubilee amid 
much fanfare.

We also acquired global 
digital marketing fi rm 
Amobee to capture 
growth in the mobile 
advertising space.  

We launched Singapore’s 
fi rst 4G service.

“Hello? Can 
you hear me?”

Celebrating Singapore’s

Golden
Jubilee

2015 was a special year for Singapore, as the nation celebrated a 
much-anticipated coming of age. As a home-grown company, 
Singtel is proud to have played a vital role in helping Singapore 
become a world-class telecommunications hub. We supported a host 
of nation-building activities to commemorate this joyous occasion.

National Day Parade 2015
National Day Parade 2015
Our exuberant Singtel contingent 
Our exuberant Singtel contingent 
put their best foot forward at the 
put their best foot forward at the 
National Day Parade.
National Day Parade.

99%SME Campaign
99%SME Campaign
We launched a nationwide 
We launched a nationwide 
campaign to rally consumers 
campaign to rally consumers 
to use products and services 
to use products and services 
by SMEs.
by SMEs.

Developing the Arts Scene 
Developing the Arts Scene 
We contributed S$20 million 
We contributed S$20 million 
to the National Gallery Singapore 
to the National Gallery Singapore 
to raise the profi le of Southeast 
to raise the profi le of Southeast 
Asian art, furthering Singapore’s 
Asian art, furthering Singapore’s 
ambition to be a global arts hub.
ambition to be a global arts hub.

Supporting the SEA Games
Supporting the SEA Games
We were the key multimedia sponsor 
of the Games, providing over S$15 
million in communications solutions 
and rallying the nation to cheer for 
Team Singapore!

Singtel Carnival
Singtel Carnival
1,500 Singtel staff   put 
1,500 Singtel staff   put 
together a day of fun 
together a day of fun 
for our Singtel Touching 
for our Singtel Touching 
Lives Fund benefi ciaries 
Lives Fund benefi ciaries 
and children from special 
and children from special 
education schools in 
education schools in 
Singapore.
Singapore.

Opening Singtel 
Opening Singtel 
Enabling Innovation 
Enabling Innovation 
Centre 
Centre 
We donated S$1.99 million 
We donated S$1.99 million 
to enhance the employability 
to enhance the employability 
of persons with disabilities 
of persons with disabilities 
and help them lead m ore 
and help them lead m ore 
independent lives.
independent lives.

Contents

Overview
An overview of our business, our performance, key achievements 
and value created, as well as our strategy moving forward

Financial Highlights
Chairman’s Message

01
03
05 GCEO Review
09 Who We Are
The Value We Create
11
13
Board of Directors
18 Organisation Structure
19 Management Committee
Senior Management
22

Business Reviews
Insights into each of our business units

23 Group Consumer
37 Group Enterprise
43 Group Digital Life
49

Key Awards and Accolades

Governance and Sustainability
Our corporate governance, risk management and sustainability eff orts

51 Governance & Sustainability Philosophy
53
81
83
91

Corporate Governance
Investor Relations
Risk Management Philosophy and Approach
Sustainability

Performance
Our fi nancial performance

100 Group Five-year Financial Summary
102 Group Value Added Statements
103 Management Discussion and Analysis

Financials
Audited fi nancial statements

113 Directors’ Statement
122 Independent Auditors’ Report
127 Consolidated Income Statement
128 Consolidated Statement of Comprehensive Income
129 Statements of Financial Position
130 Statements of Changes in Equity
134 Consolidated Statement of Cash Flows
137 Notes to the Financial Statements

Additional Information
Our shareholders, transactions with interested persons and 
other corporate information

222 Interested Person Transactions
223 Shareholder Information
225 Corporate Information
226 Contact Points

1

SINGAPORE TELECOMMUNICATIONS LIMITED 

Financial Highlights

OPERATING REVENUE (1)

EBITDA

2016

2015

S$16,961M

S$17,223M 2%

2016

2015

S$5,013M

S$5,091M

2%

NET PROFIT

UNDERLYING NET PROFIT

2016

2015

S$3,871M

S$3,782M

2%

2016

2015

S$3,805M

S$3,779M

1%

FREE CASH FLOW (2)

DIVIDEND PER SHARE

2016

2015

S$2,718M

S$3,549M

23%

2016

2015

S¢17.5

S¢17.5

Stable

RETURN ON EQUITY

RETURN ON INVESTED CAPITAL

2016

2015

15.6%

15.6%

Stable

2016

2015

11.7%

12.1%

0.4

percentage 
point

Constant Currency (3)

NET PROFIT

UNDERLYING NET PROFIT

2016

2015

S$3,990M

S$3,782M

6%

2016

2015

S$3,929M

S$3,779M

4%

ANNUAL REPORT 2016

2

NET PROFIT
– Contribution by Geography

24%

29%

47%

Australia

Singapore

SHARE PRICE CHANGES
5-year 

1-year 

50

40

30

20

10

0

-10

-20

Apr 
11

31%

26%

-9%

5

0

-5

-10

-15

-20

Mar 
16

Apr 
15

Regional 
Mobile 
Associates

-4%

-13%

-18%

Mar 
16

Singtel 

MSCI APAC Telco Index (4)

Straits Times Index

Singtel 

MSCI APAC Telco Index (4)

Straits Times Index

26%

31%

-9%

-13%

-4%

-18%

SHAREHOLDER PAYOUT
(S$ billion)

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2.8

2.8

2.7

2.7

2.5

2.5

2.3

2.0

2.0

1.6

Singtel has a track record of 
generous shareholder returns.

We pay between 60% and 75% of 
underlying net profi t as ordinary 
dividends.

For the fi nancial year ended 
31 March 2016, the Board has 
recommended a fi nal ordinary 
dividend of 10.7 Singapore cents 
a share. Together with the interim 
dividend of 6.8 Singapore cents, 
the total ordinary dividends for 
the year is 17.5 Singapore cents, 
unchanged from the previous 
year. It also represents 73% of 
the Group’s underlying net profi t.

1.6

1.5

Ordinary 
Dividend

Special
Dividend

Notes: 
(1) 

Impacted by the regulated reduction in Australian mobile termination rates from 1 January 2016, and a 9% decline in the Australian dollar. 
Excluding these factors, operating revenue would be up 5%.

(2)  Decrease is mainly due to mobile customer acquisitions and retentions in Australia, and receipts last year from fi bre rollout completion.   

Concurrently, the Australian dollar and Indonesian rupiah fell signifi cantly.

(3)  Assuming constant exchange rates from FY 2015.
(4)  MSCI Asia Pacific Telecommunications Index.

 
 
Chairman’s Message

 Dear Shareholders, 

Four years ago, we embarked on a journey to 
transform ourselves into a communications 
company operating in a data-centric digital world. 
The reason was simple – the mobile internet 
revolution was taking hold, threatening traditional 
revenue streams from voice and SMS. We saw that 
to stay relevant, we had to put data at the centre of 
our business and transform our telecoms network 
into high-speed data networks so that we could 
capture and monetise this growing demand for 
mobile data. As we take stock of the progress we’ve 
made, we have protected our revenues while 
creating a new set of opportunities around our data 
assets. Our FY 2016 results bear this out. Our net 
profi t for the year was up 2% to S$3.87 billion but 
would have grown 6% in constant currency terms. 

We continue to deliver strong earnings as our core 
businesses performed well. This is despite regional 
currency weakness and the costs of investing in the 
new enterprise services of cloud, cyber security as 
well as our digital businesses. 

TRANSFORMING OUR CORE MOBILE BUSINESS
The steps we’ve taken to transform our core 
telecoms business are increasingly paying off  

as consumers continue to shift from voice 
to data. Data revenues from Singapore and 
Australia have grown signifi cantly as we’ve made 
further investments in network, technology 
and spectrum, and restructured our price plans 
to meet the increasing need for quality mobile 
internet at aff ordable prices. We are among the 
leaders globally in making this successful shift.  

The other piece of good news – the mobile 
internet revolution is only just beginning in the 
emerging markets where prices of smart phones 
and devices are getting more aff ordable for a 
growing middle class. This puts us in an enviable 
position as we have a strong presence across 
Indonesia, the Philippines, Thailand, India and 
Africa, where our regional mobile associates 
operate. Previously priced out of the mobile 
data revolution, these developing markets 
are now making their respective transitions 
from mobile telephony to mobile internet, 
moving up the ladder from 3G to 4G, just as we 
have. With insights and lessons from our own 
transformation, we are well-placed to help steer 
our associates through this exciting move to a 
digital world.  

 
4

American Business Awards, Amobee’s Brand 
Intelligence platform analyses and correlates more 
than 60 billion content engagements daily across 
the web, social media, video and mobile, helping 
businesses optimise their media strategies to 
improve brand awareness and engagement rates. 

Our other businesses will take time to scale and 
mature. Our mobile streaming service, HOOQ, 
can now be found in India, Indonesia, the 
Philippines and Thailand, allowing us to tap into 
the growing demand for online entertainment in 
emerging markets as smartphone adoption rises. 
Our geoanalytics initiative, DataSpark, is securing 
more public contracts as agencies deploy its 
technology to optimise the planning of urban 
spaces and transport networks. 

THE TRANSFORMATION CONTINUES  
Transformation is a journey in which new 
opportunities emerge. Consumer habits are still 
evolving alongside the rapidly merging telecoms 
and internet space. The need for people and 
businesses to be connected is stronger than 
ever, which means more demand for seamless 
connectivity and data services. In short, the same 
motivations that set us on this path at the outset 
– reshaping the business to meet customers’ 
evolving needs – are as strong, if not stronger 
today. So far, we have managed to deepen our 
customer engagement to compete in the new 
digital economy while maintaining our lead in the 
core telecoms business. We intend to continue 
delivering on both those counts going forward. 

I would like to thank our directors, management 
and staff  for their commitment to this 
transformation and also our many partners and 
stakeholders for their confi dence in Singtel. 

Our Board and management are committed to 
the highest standards of corporate governance 
and sustainable long-term value creation.  

Yours sincerely,

 “Consumer habits are still 
evolving alongside the rapidly 
merging telecoms and internet 
space. The need for people and 
businesses to be connected 
is stronger than ever, which 
means more demand for 
seamless connectivity and 
data services.”

A BOOST FOR ICT SERVICES 
This new data paradigm presents opportunities 
for our ICT business. Our assets and capabilities 
have us well-positioned to capitalise on the 
shifts to cloud computing, enterprise mobility 
and smart city initiatives as public agencies and 
businesses look to exploit mobile capabilities to 
spur growth. 

Cyber security has emerged as a critical issue 
for governments and businesses. As cyber 
threats grow in frequency and sophistication, 
company boards and managements are waking 
up to the urgent reality that their fi rms are not 
adequately protected against these threats and 
the associated reputational, business risks and 
costs. In this high-growth emerging market, our 
ambition is to build out a global business to be 
among the leaders in this space. Our acquisition 
of Trustwave last September brings with it a 
global customer base that we intend to build on 
and expand.   

BUILDING OUT DIGITAL  
Since beginning our transformation journey, we 
have refi ned our digital strategy to focus on three 
main areas: digital marketing, OTT video and 
data analytics where our telecom assets give us 
competitive advantage. 

Amobee is our global digital marketing business 
that we continue to invest in as we build global 
scale. Voted the Most Innovative Tech Company, 
as well as Company of the Year, at the 2016 

Simon Israel
Chairman

 
 
 
 
  
 
5

GCEO Review

STAYING RESILIENT 
AMID TRANSFORMATION
Most people shun change. It’s uncomfortable and 
requires serious eff ort and commitment. For us at 
Singtel, change has been an unwavering principle 
over the last four years. As the advent of the digital 
economy brought with it an explosion in data 
usage, we didn’t just keep up with the times but 
strived instead to stay ahead of the curve. To do 
this, we had to pay fresh heed to the changing 
needs and wants of our customers. For the past 
four years, we have been driving a transformation 
across all our businesses as customer habits in 
communication and media consumption radically 
altered and companies too, adjusted how they 
operated. At the close of the 2016 fi nancial year, 
I’m pleased to report that our business has stayed 
resilient in the face of this transformation. 

Our net profi t for FY 2016 was up 2% to S$3.87 
billion and would have been up 6% on a constant 
currency basis. These results have been achieved 
despite our continuous investments in network and 
spectrum, crucial for network capacity and speed, 
and losses from digital and cyber security ventures 
as we scale these businesses. In terms of Total 
Returns to Shareholders, we have been disciplined 
with our dividend payout and outperformed the 
STI index over the past four years. All this bears 
testimony to our restructuring eff orts, our focus on 
execution and our fi nancial strength. 

DIFFERENTIATING OUR CORE 
CONSUMER BUSINESS 
Our core consumer businesses in Singapore and 
Australia performed well in FY  2016 with Singtel 
extending its overall revenue market leadership by 
diff erentiating our products and services. Having 
made substantial network investments over the 
years to provide the foundation of superior 4G 
coverage across both markets, our priority was to 
come up with innovative products and services that 
would create customer loyalty. 

A host of fl exible data plans, marquee content and 
bundled off ers was rolled out to woo customers 
with increasingly data-centric lifestyles and more 
demands for video entertainment on the go. 
Standalone data plans, value-for-money double 
data add-ons and 10Gbps options for heavy data 
users were introduced much to the delight of 
customers. Zero-rated music streaming services 
were a hit with the music fans. Both Optus 

“Our Group results were strongly 
bolstered by our geographical 
diversifi  cation across Asia’s 
fastest growing economies. 
Together with our regional 
mobile associates, all leading 
players in their respective 
markets, we reach over 
600 million mobile subscribers 
across the region.”

and Singtel also struck signifi cant partnerships 
and off ered a range of exciting sports and 
entertainment content, including the English 
Premier League, Cricket Australia and Netfl ix. 

This diff erentiated approach saw Optus retain and 
win more subscribers, repositioning it as more than 
just a mobile company in the eyes of the customer. 
In Singapore, the strategy mitigated declines in 
voice and pricing pressures, helping the business 
defend its turf.  

DIVERSIFICATION KEEPS US STRONG
Our Group results were strongly bolstered by 
our geographical diversifi cation across Asia’s 
fastest growing economies. Together with our 
regional mobile associates, all leading players 
in their respective markets, we reach over 600 
million mobile subscribers across the region. Our 
associates put in another strong showing in 2016, 
also thanks to substantial growth in mobile data. 
As their increasingly affl  uent populations upgraded 
to more aff ordable smart devices, spurring mobile 

internet usage, our associates began to harness 
the benefi ts of extensive investments in 3G and 
4G networks and services. 

Telkomsel was the standout performer, with 
pre-tax earnings for the year jumping 15% to 
S$1.1 billion on the back of increased voice and 
data usage. They also saw a signifi cant increase 
in 3G and 4G subscribers who now make up 
42% of its total customer base. In Thailand, AIS 
continued with its migration of 2G customers 
to 3G or 4G networks, against an accelerated 
network rollout with the 1800MHz spectrum 
acquired last year. Airtel has secured pan-Indian 
spectrum for its 4G services, which allows it 
to provide seamless data services across the 
country. Globe in the Philippines continues 
to take share, thanks to increased network 
investment and innovative off erings. 

Having made our own earlier transition from 
mobile telephony to mobile internet, the 
Group continues to work with our associates 

to navigate and monetise this shift from voice 
to data. We remain confi dent that emerging 
market growth and increased digital adoption 
will continue to see our associates contribute 
positively to our Group. 

NEW GROWTH ON THE 
ENTERPRISE HORIZON
Our Group Enterprise business proved robust 
for the year despite slower economic growth 
and more cautious business spending. Our new 
ICT businesses in cloud and cyber security gave 
us that extra edge, helping us maintain our 
leadership in Singapore while strengthening 
our position in the Asia Pacifi c region. 

Cloud revenues grew as businesses and 
organisations moved rapidly from legacy
on-premise IT systems to fl exible cloud-based 
storage to manage costs and drive productivity. 
We were well-positioned to capture this shift, 
having invested in a suite of cloud migration and 
delivery capabilities over the past two years.  

7

SINGAPORE TELECOMMUNICATIONS LIMITED 

Besides having to host and manage these 
services, we also had to secure them. This is 
where our investments in cyber security are also 
starting to pay off , supported by our ability to 
monitor traffi  c fl ows through our networks, and 
our trusted relationships with existing enterprise 
customers. In September 2015, we made a 
strategic move in acquiring Trustwave, a leading 
independent cyber security player with business 
in the US and around the world. A key priority 
for us this year is to leverage this Trustwave 
acquisition to create a global platform that can 
provide managed security services – 24/7.

Our move into Smart Nation solutions also 
made headway. This year, we secured a 
signifi cant contract from the Singapore 
government to build the Land Transport 
Authority’s next-generation Electronic Road 
Pricing or ERP project. Leading a consortium, 
we will build a system that will harness satellite 
tracking and our 4G network to collect and 
disseminate real-time traffi  c information. This 
will be the fi rst time in the world that these 
capabilities will be implemented nationwide in 
an urban environment.

As Singapore moves towards becoming a Smart 
Nation, the majority of our customers are 
already on fi bre broadband, enjoying ultra-
high speeds and more competitive pricing levels. 
We have, in past years, enabled this nationwide 
fi bre rollout through NetLink Trust, which owns 
our passive fi bre infrastructure but operates as 
an independently managed business trust. This 
nationwide fi bre network which now passes all 
homes in Singapore forms the backbone of the 
Singapore government’s Smart Nation initiative. 
For regulatory reasons, we will progress plans 
to divest our stake in NetLink Trust to less than 
25% by April 2018. 

REFINING OUR DIGITAL STRATEGIES 
Over the past four years, we have refi ned our 
digital strategy to focus on areas that contribute 
back to our core business and best leverage our 
telecom assets: digital marketing, OTT video and 
data analytics. 

Amobee, our global digital marketing business, 
recorded strong growth in FY 2016 as it gained 
further traction among brands looking to 
increase the effi  ciency and eff ectiveness of their 

advertising spend across new and multiple media 
platforms, be it social, mobile, video or email.    

HOOQ, our OTT video joint venture with 
Sony Pictures Television and Warner Bros. 
Entertainment, is now available across Asia’s 
most populous countries: India, Indonesia, the 
Philippines and Thailand, steadily adding more 
video streaming subscribers. 

DataSpark, our advanced analytics start-up, 
is scoring more contracts from both public 
and private sector companies, which are using 
anonymised and aggregated telco data to 
gain insights that sharpen their business and 
operations planning.    

While the results so far have been encouraging, 
it will be some time before all these businesses 
can ramp up to global scale and contribute 
meaningfully to our bottom line. We will 
continually review the progress of these 
investments.     

Meanwhile, Singtel Innov8, our corporate 
venture fund, will continue to identify the latest 
innovations, products and technologies – giving 
the Group fi rst dibs into monetisable new 
businesses that will augment our core business 
or further build on our digital strategy.   

STRENGTHENING OUR TEAM 
Our people are the foundation of our success. 
And I truly believe we have the right people 
and leadership with the necessary instincts for 
collaborating and innovating our way forward. 
Even so, we continue to develop the right talent 
and capabilities to help grow our company.

We have put in place long-term initiatives to 
attract and develop necessary talent in cyber 
security, cloud and analytics, having identifi ed 
these as new growth areas for the business. 
Our employee engagement score for FY 2016 
has improved further, and is quickly closing the 
gap with the benchmarks for top Global High 
Performing Companies. We have an energised 
team, excited about our future, and ready and 
willing to drive our necessary transformations.

CONTRIBUTING TO OUR COMMUNITIES 
Our operations touch millions of lives in 
the region and it is important for us to give 

 
 
 
 
ANNUAL REPORT 2016

8

“It’s not been business as usual at Singtel given 
the plethora of technological and business 
disruptions thrown our way by the digital 
economy. But we have learned much about how 
to handle continuous change while maintaining 
a strong fi  nancial performance.”

back to the communities that support us and 
our businesses. Our CSR activities focus on 
safeguarding the well-being of internet users, 
particularly vulnerable children and youth, as well 
as helping persons with disabilities fi nd gainful 
employment by providing the necessary training 
in new technologies.  

We have a strong volunteerism programme 
across both Singapore and Australia. In Optus, 
this centres on mentoring youth through the 
Australian Business and Community Network. In 
Singapore, we are heartened to see a 15% increase 
in the number of volunteering hours committed 
by staff . This, as we mark the 15th anniversary 
of our corporate philanthropy programme, the 
Singtel Touching Lives Fund. Since we started, 
we have raised over S$33 million to help children 
and young people with special needs. We are 
celebrating this important milestone with our 
staff , and encouraging more of them to get 
involved in our future initiatives.

WINNING IN A DIGITAL WORLD
It’s not been business as usual at Singtel given the 
plethora of technological and business disruptions 
thrown our way by the digital economy. But 
we have learned much about how to handle 
continuous change while maintaining a strong 
fi nancial performance.

I would like to thank the Board for their 
guidance, and our management and staff  
who have applied the best of themselves to 
the job at hand, knowing that nothing worth 
having comes easy. To our partners, thank 
you for staying the course with us.  

I’m confi dent that the changes we have 
made put us in a far stronger position today 
to evolve our large and complex business, 
to answer further challenges so that we 
can continue to create value for you, our 
shareholders. 

Yours sincerely, 

Chua Sock Koong
Group Chief Executive Offi    cer

  
 
9

SINGAPORE TELECOMMUNICATIONS LIMITED 

Who We Are

Singtel, as you know today, had its beginnings more than 130 years ago 
as Singapore’s fi  rst and only telecommunications provider. Today, 
we have become much more than just that. Going beyond Singapore’s 
shores decades ago, we have become a global communications company with 
an expanded presence in many cities worldwide – including Asia, Australia 
and Africa, deriving over three quarters of our revenue(1) from overseas. 
Together with our regional mobile associates, we now reach over 600 million 
customers, shaping how they communicate each day. Over time, we have 
evolved in tandem with the changing face of info-communications and now 
provide more than traditional telco services. We are also involved in emerging 
digital areas that suit the evolving needs of our consumers and businesses. 

Airtel has 
operations in 
17 African 
countries

137 years

of operating
experience

Over

600 million

mobile customers in 25 countries

46

global offi  ces
 in 21 countries
200 points of presence
 in 160 cities
to serve enterprises

Over

ANNUAL REPORT 2016

10

33% ownership 
mobile customers:
251m (India)
10m (South Asia)
81m (International)
24% market share in India

#1 in 

India

Over

70%

of earnings 
from operations
outside of Singapore

4.1m mobile customers
50% market share
0.6m broadband customers
76% market share

#1

in 
Singapore

#2

in 
Philippines

47% eff ective 
economic interest (2)
57m mobile customers
46% market share

#1

in 
Indonesia

35% ownership
154m mobile customers
48% market share

#1

in 
Thailand

23% ownership
39m mobile customers
47% market share

#2 in 

Australia
100% ownership
9.3m mobile customers
30% market share
1.1m broadband customers

Over

25,000

employees
from more than
90 countries

Notes: 
(1)  Proportionate revenue if regional mobile associates are consolidated based on Singtel’s equity interests. 
(2) 

Singtel has a 21.5% eff ective stake in Globe’s voting shares.

 
 
11

SINGAPORE TELECOMMUNICATIONS LIMITED 

The Value We Create

In the midst of disruptive change, Singtel not only focuses on connecting people 
and enabling businesses, but creating value for those who believe in what we do 
– from our customers to our investors to our people and the many societies 
in which we operate.

For Our Customers

Our 4G coverage is 
the widest in Singapore at

99.9%

and covers

94%

of Australia’s population

We are growing our 
global cyber security capability with

We now have

We are going big 
on cloud with 

13 data 

centres

in Asia Pacifi c

Regional Mobile 
Associates

We have invested 

S$13b

over the last 
two years and 
another

S$8b

in FY 2016 to 
build mobile 
data networks

12 
Security 
Operations 
Centres

1,800 
Cyber 
Security 
Professionals

Singtel
Cyber 
Security
 Institute

We were named 
Best Mobile Operator 
& Fibre Broadband 
Services Provider 
in Singapore 
by Hardwarezone Tech

We serve

198m 

mobile data users, 
a 21% increase 
from the year before

For Our Investors

We paid 

S$2,789m

in dividends 

5-year Total Shareholder Return (TSR)

Singtel

MSCI Asia Pacifi c 
Telecommunications 
Index

Straits Times Index

1.2%

 and 

S$360m

in interest 
payments in 
FY 2016

10.3%

9.5%

Source: Bloomberg, 2011–2016

We were ranked

#1

ASEAN Corporate 
Governance Scorecard 
2015

Governance and 
Transparency Index 
2015

FinanceAsia 
Best Managed 
Company for 
Singapore 2015

ANNUAL REPORT 2016

12

For Our People

We invested

S$22m

to train staff   in 
Singapore and Australia

and our staff   clocked

683,000

learning 
hours

We support diversity

Over

25,000 

employees of
more 
than 90
diff erent 
nationalities

1

3

of our Board 
of Directors 
are female

35%

of our 
employees 
are female

We are building a 
talent pipeline

54

students were supported under the
Singtel Cadet Scholarship Programme

30

students are currently sponsored 
under the Singtel Undergraduate 
Scholarship Programme

199

graduates have been hired since 
2008 as Management Associates

110

interns have been hired under the 
Singtel SHINE Internship Programme

For Our Society

We contributed

S$36m 

in community 
investment

and

S$20m 

to National Gallery Singapore

We spent

32,000

hours in
staff   volunteering

We were named as one of the  

for the sixth year running 
by Ethisphere Institute

We helped raise SME 
productivity and innovation 
through ICT with our 

99% 
SME 
campaign

We trained more than

100,000

students

in over

200

schools

to be savvy, responsible 
members of the online 
community through 
our digital citizenship 
programmes in 
Singapore and Australia

13

SINGAPORE TELECOMMUNICATIONS LIMITED 

Board of Directors

SIMON ISRAEL

CHUA SOCK KOONG

•  Non-executive and non-independent Director 
•  Chairman, Singtel Board 
•  Chairman, Finance and Investment Committee 
•  Member, Corporate Governance and 

Nominations Committee 

•  Member, Executive Resource and 

Compensation Committee 

•  Member, Optus Advisory Committee 
•  Date of Appointment: Director on 4 Jul 

2003 and Chairman on 29 Jul 2011 

•  Last Re-elected: 26 Jul 2013 
•  Number of directorships in listed 
companies (including Singtel): 4

Mr Simon Israel, 63, is the Chairman of Singapore Post Limited and a Director 
of CapitaLand Limited, Fonterra Co-operative Group Limited and Stewardship 
Asia Centre Pte. Ltd. He is also a member of the Governing Board of Lee Kuan 
Yew School of Public Policy and Westpac’s Asia Advisory Board. Simon is a 
former Chairman of Asia Pacifi c Breweries Limited. 

Simon was an Executive Director and President of Temasek Holdings (Private) 
Limited before retiring on 1 July 2011. Prior to that, he was Chairman, Asia 
Pacifi c of the Danone Group. Simon also held various positions in Sara Lee 
Corporation before becoming President (Household & Personal Care), 
Asia Pacifi c. 

Simon was conferred Knight in the Legion of Honour by the French 
government in 2007 and awarded the Public Service Medal at the Singapore 
National Day Awards 2011. He holds a Diploma in Business Studies from The 
University of the South Pacifi c.

•  Executive and non-independent Director
•  Member, Optus Advisory Committee
•  Date of Appointment: Director on 12 Oct 
2006 and Group Chief Executive Officer 
(CEO) on 1 Apr 2007

•  Last Re-elected: 21 Jul 2015
•  Number of directorships in listed 
companies (including Singtel): 2

Ms Chua Sock Koong, 58, was appointed Group CEO on 1 April 2007. 
She has overall responsibility for the Group’s businesses. 

Sock Koong joined Singtel in June 1989 as Treasurer before becoming CFO 
in April 1999. She held the positions of Group CFO and CEO, International 
from February 2006 to 12 October 2006, when she was appointed Deputy
Group CEO. 

Sock Koong sits on the boards of Bharti Airtel Limited, Bharti Telecom 
Limited and key subsidiaries of the Singtel Group. She is also a member of 
the Singapore Management University Board of Trustees and the Public 
Service Commission. 

Sock Koong holds a Bachelor of Accountancy (First Class Honours) from 
the University of Singapore. She is a Fellow Member of the Institute of 
Singapore Chartered Accountants and a CFA charterholder.

ANNUAL REPORT 2016

14

VENKY GANESAN

LOW CHECK KIAN

•  Non-executive and independent Director
•  Member, Finance and Investment 

Committee

•  Member, Technology Advisory Panel

•  Date of Appointment: 2 Feb 2015
•  Last Re-elected: 21 Jul 2015
•  Number of directorships in listed 
companies (including Singtel): 1

Mr Venkataraman (Venky) Ganesan, 43, is one of the Managing Partners of 
Menlo Ventures, a 39-year-old top-tier Silicon Valley venture capital fi rm. 
He focuses on investments in the consumer and enterprise sectors. Venky 
sits on the boards of several portfolio companies of Menlo Ventures, namely, 
Avi Networks, Inc., BitSight Technologies, Inc, Gild, Inc., Machine Zone, Inc., 
Rover, Inc., Takipi, Inc., Unravel Inc., UpCounsel Inc. and Waterline Data 
Science, Inc. He is also Chairman of the National Venture Capital Association 
and Board member of Amobee, Inc., a wholly-owned subsidiary of Singtel. 

Prior to joining Menlo Ventures, Venky was a Managing Director at 
Globespan Capital Partners. Before Globespan, he was one of the founders 
of Trigo Technologies. He also worked at McKinsey & Company and 
Microsoft as a Program Manager. He is a former Director of Handle, Inc., 
Palo Alto Networks Inc, Strong View, Inc and Virident Systems (acquired by 
Western Digital Corporation).

Venky holds a Bachelor of Arts in Economics-Mathematics from Reed 
College and a Bachelor of Science in Engineering and Applied Science 
(Honours) from the California Institute of Technology in the US.

•  Non-executive and Lead Independent Director
•  Chairman, Corporate Governance and 

Nominations Committee

•  Date of Appointment: Director on 

9 May 2011 and Lead Independent Director 
on 21 Jul 2015

•  Member, Finance and Investment Committee

•  Last Re-elected: 25 Jul 2014
•  Number of directorships in listed 
companies (including Singtel): 1

Mr Low Check Kian, 57, is a Director of Cluny Park Capital. He was previously 
one of the founding partners of NewSmith Capital Partners LLP (NewSmith), 
an independent partnership providing corporate fi nance advice and 
investment management services with its headquarters based in London. Prior 
to founding NewSmith, he was a Senior Vice President and Member of the 
Executive Management Committee of Merrill Lynch & Co and its Chairman for 
the Asia-Pacifi c region. 

Check Kian also sits on the boards of Singtel Innov8 Pte. Ltd. and Singtel 
Innov8 Holdings Pte. Ltd., and is a trustee of the Singapore London School of 
Economics Trust and the Nanyang Technological University. He was a Director 
of Neptune Orient Lines Limited and Fullerton Fund Management Company Ltd.

Check Kian holds a B. Sc (First Class Honours) and M. Sc in Economics 
from the London School of Economics. He was awarded the Allan Young 
Prize, Baxter-Edey Award and the Henry Luce Foundation Award during his 
time there.

15

SINGAPORE TELECOMMUNICATIONS LIMITED 

Board of Directors

PETER MASON AM

•  Non-executive and independent Director
•  Chairman, Executive Resource and 

Compensation Committee 

•  Chairman, Optus Advisory Committee

•  Date of Appointment: 21 Sep 2010
•  Last Re-elected: 26 Jul 2013
•  Number of directorships in listed 
companies (including Singtel): 2

Mr Peter Mason, 70, is the Chairman of AusNet Services Limited and a Senior 
Advisor to UBS Australia. He is a Trustee of the Sydney Opera House Trust and 
the Chairman of the Centre for Independent Studies and the Centre for 
International Finance and Regulation. 

Peter has more than 40 years’ experience in investment banking, including 
JP Morgan and Schroders. He was the Chairman of AMP Limited and David 
Jones Limited.

Peter is a Member of the Order of Australia. He holds a Bachelor of Commerce 
(First Class Honours), an MBA and an Honorary Doctorate from The University 
of New South Wales, Australia.

CHRISTINA ONG

•  Non-executive and independent Director
•  Member, Audit Committee
•  Member, Corporate Governance and 

Nominations Committee

•  Date of Appointment: 7 Apr 2014
•  Last Re-elected: 25 Jul 2014
•  Number of directorships in listed 
companies (including Singtel): 3

Mrs Christina Ong, 65, is a Partner of Allen & Gledhill LLP as well as Co-Head 
of its Financial Services Department. She is a Director of Oversea-Chinese 
Banking Corporation Limited, SIA Engineering Company Limited, Singapore 
Tourism Board and Trailblazer Foundation Ltd. She also sits on the boards 
of companies and entities which are owned by Allen & Gledhill LLP. She is a 
former Director of ST Asset Management Ltd.

Christina is a lawyer and she provides corporate and corporate regulatory 
and compliance advice, particularly to listed companies. Her areas of practice 
include banking and securities. 

Christina holds a Bachelor of Laws (Second Upper Class Honours) from the 
University of Singapore. She is a member of the Law Society of Singapore and 
the International Bar Association. 

ANNUAL REPORT 2016

16

PETER ONG

TEO SWEE LIAN

•  Non-executive and non-independent 

Director

•  Member, Audit Committee
•  Member, Risk Committee

•  Date of Appointment: 1 Sep 2010
•  Last Re-elected: 25 Jul 2014
•  Number of directorships in listed 
companies (including Singtel): 1

Mr Peter Ong, 54, is the Head of Singapore’s Civil Service and Permanent 
Secretary (Strategy) in the Prime Minister’s Offi  ce. He previously held the 
positions of Permanent Secretary in the Ministry of Finance, the National 
Security and Intelligence Co-ordination Secretariat, Ministry of Trade and 
Industry, Ministry of Transport and Ministry of Defence. Prior to that, he was 
an Executive Vice President of Temasek Holdings (Private) Limited.

Peter currently sits on the boards of the Monetary Authority of Singapore, 
the National Research Foundation, the ASEAN+3 Macroeconomic Research 
Offi  ce and Calvary Community Care. He was the Chairman of the Inland 
Revenue Authority of Singapore.

Peter was conferred the Meritorious Service Medal (Pingat Jasa Gemilang) 
at the Singapore National Day Awards 2010. He was also conferred the 
(Honorary) Knight of the Most Distinguished Order of the Crown by the 
Yang di-Pertuan Agong Malaysia XIV in June 2012 (with the title of “Tan Sri”).

Peter holds a Bachelor of Economics (Honours) from the University of 
Adelaide, Australia and an MBA from Stanford University, US.

•  Non-executive and independent Director
•  Member, Audit Committee
•  Member, Executive Resource and 

Compensation Committee

•  Member, Risk Committee
•  Date of Appointment: 13 Apr 2015
•  Last Re-elected: 21 Jul 2015
•  Number of directorships in listed 
companies (including Singtel): 2

Ms Teo Swee Lian, 56, was Special Advisor in the Managing Director’s Offi  ce 
at the Monetary Authority of Singapore (MAS) until she stepped down in 
early June 2015. Swee Lian is a non-executive and independent Director of 
AIA Group Ltd (AIA) and a member of AIA’s Nomination Committee and Risk 
Committee. She is also a non-executive and independent Director of Avanda 
Investment Management Pte Ltd (Avanda), and is Chairman of Avanda’s 
Audit and Risk Committee. She is also a member of the Singapore Exchange 
Diversity Action Committee.

Swee Lian was formerly the Deputy Managing Director in charge of Financial 
Supervision at the MAS. She oversaw macroeconomic surveillance, regulation 
and supervision of the banking, insurance and capital markets industries 
in Singapore. During her time with MAS, she also worked in reserves 
management, development, external relations and strategic planning.

Swee Lian was awarded the Public Administration Medal (Gold) (Bar) at the 
Singapore National Day Awards 2012. She holds a B. Sc (First Class Honours) 
in Mathematics from Imperial College, London University and a M. Sc in 
Applied Statistics from Oxford University.

17

SINGAPORE TELECOMMUNICATIONS LIMITED 

Board of Directors

BOBBY CHIN

•  Non-executive and independent Director
•  Chairman, Audit Committee
•  Chairman, Risk Committee

•  Date of Appointment: 1 May 2012
•  Last Re-elected: 21 Jul 2015
•  Number of directorships in listed 
companies (including Singtel): 5

Mr Bobby Chin, 64, is a member of the Council of Presidential Advisers 
and the Chairman of NTUC Fairprice Co-operative Limited and NTUC 
Fairprice Foundation Ltd. He is the Deputy Chairman of NTUC Enterprise 
Co-operative Limited and the Housing and Development Board. He serves 
on the boards of the Singapore Labour Foundation and Temasek Holdings 
(Private) Limited. He is also a Director of several listed companies, namely 
Yeo Hiap Seng Limited, Ho Bee Land Limited, SembCorp Industries Ltd and 
AV Jennings Limited. 

Bobby was the Managing Partner of KPMG Singapore from 1992 until his 
retirement in September 2005. He was the Chairman of Singapore Totalisator 
Board and was a Director of Neptune Orient Lines Limited, Oversea-Chinese 
Banking Corporation Limited and Singapore Power Limited. He also served 
as a Board member of the Competition Commission of Singapore.

Bobby holds a Bachelor of Accountancy from the University of Singapore. 
He is an associate member of the Institute of Chartered Accountants in England 
and Wales.

Note: 
Bobby was appointed to the Board of Temasek Holdings (Private) Limited (Temasek), the major 
shareholder of Singtel, on 10 June 2014. After due consideration, Bobby continues to be regarded 
as independent as he does not represent Temasek on the Singtel Board and he is not accustomed or 
under an obligation whether formal or informal, to act in accordance with the directions, instructions 
or wishes of Temasek. As Bobby has demonstrated independence in character and judgement in 
the discharge of his responsibilities, the Singtel Board is satisfi ed that he will continue to exercise 
independent judgement and act in the best interests of Singtel and its security holders generally. 

Note:
Mrs Fang Ai Lian and Mr Kai Nargolwala retired from the Singtel Board following the conclusion of the Annual General 
Meeting on 21 July 2015.

 
 
AnnuAl RePORT 2016

18

Organisation Structure

GrOup ChieF 
exeCutive OFFiCer
ChuA SOCK KOOng

Group Business

Corporate Functions

ChieF exeCutive OFFiCer
COnsumer AustrAliA / 
ChieF exeCutive OFFiCer  
Optus
Allen lew

ChieF exeCutive OFFiCer
COnsumer sinGApOre
Yuen KuAn MOOn

ChieF exeCutive OFFiCer
GrOup enterprise /
COuntry ChieF OFFiCer  
sinGApOre
Bill ChAng

ChieF exeCutive OFFiCer
GrOup DiGitAl liFe
SAMBA nATARAJAn

ChieF exeCutive OFFiCer
internAtiOnAl
MARK ChOng

AuDit COmmittee

GrOup ChieF
internAl AuDitOr
ChOR Khee YAng

GrOup ChieF
COrpOrAte OFFiCer
JeAnn lOw

GrOup ChieF
FinAnCiAl OFFiCer
liM Cheng Cheng

GrOup ChieF 
humAn resOurCes OFFiCer
Aileen TAn

GrOup ChieF
inFOrmAtiOn OFFiCer
wu ChOY Peng

GrOup ChieF
teChnOlOGy OFFiCer
TAY SOO Meng

19

SINGAPORE TELECOMMUNICATIONS LIMITED 

Management Committee

CHUA SOCK KOONG

Ms Chua Sock Koong, 58, was appointed Group CEO on 1 April 2007. She has overall 
responsibility for the Group’s businesses. 

Sock Koong joined Singtel in June 1989 as Treasurer before becoming CFO in April 
1999. She held the positions of Group CFO and CEO, International from February 2006 
to 12 October 2006, when she was appointed Deputy Group CEO. 

Sock Koong sits on the boards of Bharti Airtel Limited, Bharti Telecom Limited and key 
subsidiaries of the Singtel Group. She is also a member of the Singapore Management 
University Board of Trustees and the Public Service Commission. 

Sock Koong holds a Bachelor of Accountancy (First Class Honours) from the University 
of Singapore. She is a Fellow Member of the Institute of Singapore Chartered 
Accountants and a CFA charterholder.

BILL CHANG

ALLEN LEW

Mr Bill Chang, 49, was appointed Chief Executive Offi  cer, Group Enterprise on 16 July 
2012. He leads the team that provides infocomm and technology (ICT) solutions to 
enterprise customers. He also assumed the role of Country Chief Offi  cer Singapore 
on 1 October 2014, and is the principal liaison with local and regulatory bodies.

Bill joined Singtel on 15 November 2005 as Executive Vice President of Corporate 
Business and later assumed the role of Managing Director, Business Group. 

Bill is the Chairman of the Singapore Polytechnic Board of Governors and a Board 
member of Singapore Post serving in their Compensation and Risk & Technology 
Committees. He also co-chairs the Future Jobs and Skills sub-committee of the 
Committee on the Future Economy (CFE) of Singapore. In 2014, he was conferred the 
honorary Fellow of the Singapore Computer Society.

Bill graduated with a Bachelor of Engineering (Honours) in Electrical and Computer 
Systems Engineering from Monash University, Australia.

Mr Allen Lew, 61, was appointed Chief Executive Offi  cer, Consumer Australia and 
Chief Executive Offi  cer, Optus on 1 October 2014.

Prior to that, Allen was CEO, Group Digital Life and also Country Chief Offi  cer 
Singapore.

Allen began his career with Singtel on 7 November 1980 and has served in various senior 
management roles both in Singapore and overseas. His fi rst overseas posting was to 
Advanced Info Service Public Company Limited (AIS), Singtel’s regional mobile associate. 
He was the Chief Operating Offi  cer of AIS for three years before his posting to Optus 
in late 2001, as Managing Director of Optus Mobile and later as Managing Director of 
Optus Consumer Business. He returned to Singapore as CEO Singapore in 2006.

Allen is the Chairman of the AIS Executive Committee.

He holds a Bachelor of Electrical Engineering from the University of Western Australia 
under a Colombo Plan Scholarship and a Master of Science (Management) from the 
Massachusetts Institute of Technology, US.

ANNUAL REPORT 2016

20

LIM CHENG CHENG

JEANN LOW

AILEEN TAN

Ms Lim Cheng Cheng, 44, is Group Chief Financial Offi  cer. She assumed this role on 10 
April 2015 and is responsible for the Singtel Group’s fi nance-related functions including 
tax, treasury and investor relations.

Cheng Cheng has over 23 years of experience in fi nance and mergers and acquisitions. 
She joined Singtel in 2012 as Vice President, Group Strategic Investment and was 
appointed Deputy GCFO on 1 October 2014. Prior to that, she was Managing Director, 
Group Strategic Investments. 

Before joining Singtel, Cheng Cheng was Executive Vice President and CFO at SMRT 
Corporation. She also worked at Singapore Power for 10 years in various corporate 
planning, investments and fi nance roles, the last of which was Head and Vice President 
(Financial Planning and Analysis). She started her career with PricewaterhouseCoopers. 

Cheng Cheng holds a Master of Business Administration from the University of Chicago 
Booth School of Business (formerly known as University of Chicago Graduate School 
of Business) and a Bachelor of Accountancy from Nanyang Technological University. 
She is a Chartered Accountant (Singapore) of the Institute of Singapore Chartered 
Accountants and CPA Australia.

Ms Jeann Low, 55, was appointed Group Chief Corporate Offi  cer on 10 April 2015. 
She is responsible for the Group’s corporate functions including strategy, mergers 
and acquisitions, corporate communications, legal, regulatory and procurement.

Prior to this role, she was Group Chief Financial Offi  cer for seven years. 

Jeann joined Singtel on 12 October 1998 as Group Financial Controller and has 
held several management roles including Executive Vice President of Strategic 
Investments and CFO of Optus. 

Jeann is a member of the Governing Board of the Lee Kong Chian School of 
Medicine. She is also a Director of Advanced Info Service Public Company Limited 
and was a Council Member of the Institute of Singapore Chartered Accountants from 
April 2010 to April 2014. 

Jeann holds an Honours Degree in Accountancy from the National University of 
Singapore and is a Chartered Accountant of Singapore.

Ms Aileen Tan, 49, is Group Chief Human Resources Offi  cer responsible for the 
development of human resources across the Singtel Group, and also leads its 
corporate sustainability function.

Aileen joined Singtel on 2 June 2008 as Group Director, Human Resources. 
Prior to that, she was Group General Manager, Human Resources at WBL Corporation 
Limited and Vice President, Centres of Excellence with Abacus International Pte Ltd. 

Aileen is the Chairperson of the Singapore Workforce Development Agency’s National 
HR Professional Certifi cation Taskforce and co-chairs the Ministry of Manpower’s HR 
Sectoral Tripartite Committee. She is also a member of the Home Nursing Foundation 
Board and the Media Literacy Council.

Aileen graduated with a Bachelor of Arts from the National University of Singapore. 
She also holds a Master of Science in Organisational Behaviour from the California 
School of Professional Psychology, Alliant International University, US.

21

SINGAPORE TELECOMMUNICATIONS LIMITED 

Management Committee

WU CHOY PENG

YUEN KUAN MOON

Ms Wu Choy Peng, 51, joined Singtel as Group Chief Information Offi  cer on 6 August 
2012. She is responsible for driving the Group’s IT vision and roadmap to establish 
excellence in technology management.

Prior to joining Singtel, Choy Peng was Group CIO of Neptune Orient Lines Group 
and Chief Information Offi  cer of the Singapore Government. 

Choy Peng is the Deputy Chairman of IDA International Pte Ltd, a wholly owned 
subsidiary of the Infocomm Development Authority of Singapore. She is also a member 
of the National University Health System (NUHS) Board and the Chairperson of the 
NUHS Information Technology (IT) Committee. 

Choy Peng holds a Bachelor of Science (Honours with Highest Distinction) in 
Computer/Communication Science and Mathematics, and a Master of Science 
in Computer Science/Engineering, both from the University of Michigan, US.

Mr Yuen Kuan Moon, 49, was appointed Chief Executive Offi  cer, Consumer Singapore 
on 1 June 2012. He is responsible for leading the Singapore consumer business to 
deliver a complete and integrated suite of services, including mobile, broadband and 
TV solutions to consumers. 

Moon began his career with Singtel on 1 February 1993 and has over 20 years of 
experience in the consumer business, including Marketing, Business Development, 
Retail and Channel Sales. He has held several leadership roles, including Vice President 
of Regional Operations and Executive Vice President of Digital Consumer.

Earlier in his career, Moon was posted to PT Telekomunikasi Selular (Telkomsel), 
Singtel’s regional mobile associate, as General Manager for Product Development in 
2003 and was appointed Director of Commerce from 2005 to 2007. He has served 
on the Board of Commissioners in Telkomsel since 2009. 

Moon graduated with a First Class Honours degree in Engineering from the 
University of Western Australia. He also holds a Master of Science in Management 
from Stanford University, US.

ANNUAL REPORT 2016

22

Senior Management

CHIA WEE BOON
Chief Executive Officer, NCS
Group Enterprise

MARK CHONG
Chief Executive Officer, 
International

HUI WENG CHEONG
Chief Operating Officer,
AIS

MURRAY KING
Chief Financial Officer,
Optus

ROBERT J. MCCULLEN
Chief Executive Officer and President, 
Trustwave

SAMBA NATARAJAN
Chief Executive Officer,
Group Digital Life

JOHN PAITARIDIS
Managing Director, 
Optus Business

TAY SOO MENG
Group Chief Technology Officer

WILLIAM WOO
Managing Director, 
Enterprise Data & Managed Services
Group Enterprise

Group
Consumer

Technological disruption has totally changed 
the way all of us communicate and consume 
media. As we have moved from a voice-centric 
to a data-centric world, we have adapted 
our suite of services to cater to the changing 
lifestyles of our customers. Through network, 
technology and spectrum investments, as 
well as exclusive and diff  erentiated content, 
we strive to deliver the best quality customer 
experience by off  ering faster speeds, greater 
coverage, and innovative products and services. 

Mobile

Data

Broadband

Pay-TV

Fibre

25

SINGAPORE TELECOMMUNICATIONS LIMITED 

Group Consumer
Singapore

Singtel is reframing our consumer business around data as it has become a big part 
of Singaporeans’ lives. Spending a bulk of their time online and on-the-go means 
Singaporeans now expect seamless connectivity and superior coverage. This is why 
we have created plans and services around data, and are enriching our content 
through over-the-top (OTT) partnerships. We are also accelerating the pace of our 
network upgrades and bolstering our infrastructure for the coming of the Internet 
of Things (IoT) as we step up our journey to 5G. 

Our goal is to deliver diff erentiated, quality content and connect our customers 
to the things and people that matter most to them on any device and at any time 
through our high-speed fi xed and mobile networks.

CONNECTING CUSTOMERS TO 
INNOVATIVE NEW SERVICES
Our new focus on data-centric 
plans and services fi rst started 
with the launch of our SIM Only 
plans in 2015. These contract-free 
plans proved instantly popular 
as it gave our customers greater 
fl exibility in managing their 
communications needs, off ering in 
fact, an unprecedented level of usage 
freedom at very aff ordable prices. 

In 2016, much to the further delight 
of our customers, we launched 
another innovative data product, a 
data add-on called DataX2. This data 
option allows customers to double 
their data for an aff ordable fl at fee, 
giving them better value when they 
sign  up and recontract with us.

We also introduced Singtel Music, 
another breakthrough service and 
the fi rst in Singapore to provide 
data-free music from popular 
providers Spotify, KKBOX, MeRadio 
and AMPed. It was an instant hit 
among music fans.

With our focus on delivering top 
quality content to our customers 
tailored to their entertainment 
consumption habits – be it on 
TV, online or on-the-go, we are 
working closely with traditional 
and non-traditional content 
providers to off er a wider range of 
entertainment options.

We partnered streaming service 
providers Netfl ix and Viu to bring 
millions of hours of top quality 

English language and premium 
Korean movies and TV shows to our 
customers on multiple platforms. 

Continuing our push to provide 
diff erentiated content to our Singtel 
TV customers, we also added key 
channels such as Discovery, Warner 
TV and ethnic channels for our 
multinational audience. We sealed 
our status as the “home of football” 
by scoring a hat trick, and winning 
broadcast rights for the biggest 
football events of 2016 – Barclays 
Premier League, UEFA EURO and 
Copa America. 

In broadband, we led in technology 
innovation when we launched our 
10Gbps fi bre broadband plan for 
residential customers. The ultra-high 

SINGTEL

All the music you could ever want.
None of the data charges.
f the data c

ANNUAL REPORT 2016

26

“I enjoy working on the front line because every 
day comes with diff  erent but rewarding challenges. 
It’s satisfying when customers are pleased with our 
latest mobile off  erings.” 
–  Kelvin Khoo,

Retail Executive, Singtel

speeds of 10Gbps supports bandwidth-
intensive activities and will also ready our 
network to meet the needs of the rapidly 
developing IoT ecosystem.

We were also the fi rst in Singapore to up the 
ante in the mobile payments space, off ering 
an all-in-one mobile payments solution with 
the new version of our popular app Singtel 
Dash. Singtel Dash now provides fast and 
secure transit payments for public transport 
and top-ups, in-store and online retail 
payments, as well as local and overseas 
money transfers to Singaporeans, regardless 
of their telco relationship or device.

27

SINGAPORE TELECOMMUNICATIONS LIMITED 

Group Consumer
Singapore

“Work is never 
boring. I get the 
fi  rst glimpse 
of the best TV 
shows in town 
while ensuring 
customers enjoy 
uninterrupted 
transmissions!”
–  Abdul Hamid Bin Yusoff  , 

Broadcast Operations Manager, 
Singtel TV

INVESTING IN A 
FUTURE-READY NETWORK
We recognise that a good network 
requires broad spectrum holdings, 
effi  cient and fast radio technology, 
leading indoor and outdoor coverage 
and fast low latency transmission. 
Our eff orts to step up on network 
planning, deployment, maintenance 
and innovation have yielded results. 
According to the Infocomm 

Development Authority’s reports, 
Singtel off ers Singapore’s fastest and 
widest 4G experience, and has topped 
the nation’s widest 4G outdoor 
coverage chart for six consecutive 
quarters (Q4 2014 to Q1 2016).

In 2015, we also reinforced our 
market leadership as the fi rst 
operator in Southeast Asia to provide 
a tri-band LTE network using 

900Mhz, 1800Mhz and 2600Mhz 
spectrum. With our tri-band network 
and nationwide deployment of 
900Mhz, we are able to deliver an 
even deeper 4G indoor coverage with 
wider and more consistent network 
performance as well as off er superior 
speeds of up to 337Mbps. 

Another fi rst in Singapore, our carrier 
grade WiFi, Singtel Premium WiFi, 

Delivering the Best Integrated Network Experience

First telco in 
Southeast
Asia to launch 
tri-band 4G 
network with 
superior speeds 
of up to 337Mbps

800 
Singtel 
Premium 
WiFi hotspots 
nationwide

Investing in 
the future of 
5G networks 

First telco in 
Singapore to 
launch 10Gbps 
residential fi bre 
broadband 
service

ANNUAL REPORT 2016

28

complements our superior coverage 
in 800 hotspots nationwide, including 
major MRT stations and popular F&B 
outlets such as McDonald’s.

technologies, will pave the way for us 
to implement next generation network 
innovations that are central to our 
Smart Nation ambitions.  

We are also rolling out small cell 
and Hetnet technology to make our 
network smarter and more effi  cient.  

We aspire to be a frontrunner in the 
deployment of 5G globally and are 
well on our journey to making it a 
reality. Our joint trials with Ericsson of 
pre-5G technologies such as License 
Assisted Access and Narrow Band-IoT 

MAKING MEANINGFUL 
CONNECTIONS WITH 
CUSTOMERS
We continue to make meaningful 
connections with our customers 
online, over the phone and in-store, 
to enrich their service experience. 
Enhanced digital engagement via My 
Singtel app, live webchat and social 
media channels has been well-received 

by customers. Additionally, to deliver 
a better in-person retail experience, 
we also improved customer processes 
and revamped several of our Singtel 
Retail Shops.

In a bid to thank customers 
with existing mobile and fi bre 
entertainment plans, we introduced 
the much talked about Singtel 
Circle. This fi rst-of-its-kind benefi ts 
programme in Singapore off ers 
customers free unlimited local mobile 
data on Sundays and a Hollywood 
movie on Singtel TV every weekend. 

“Every customer call is important 
to me. I enjoy talking to all my 
customers and feel a great sense of 
achievement when I’m able to help.”
–  Priyalata Pillay, 

Customer Care Executive & Team Leader, Singtel

29

SINGAPORE TELECOMMUNICATIONS LIMITED 

Group Consumer
Australia

Optus is pursuing a three-year strategy to reposition our business in a competitive 
and rapidly changing market. As Australians move to access unprecedented 
amounts of data through their mobile devices, we are signifi cantly enhancing 
our suite of digital products and content partnerships, and moving beyond our 
traditional provision of voice services. 

Our ambition is simple: to allow our customers to access the content that they 
want on devices that suit their lifestyles, underpinned by a fast and reliable network. 
We are committed to structuring our off erings so that people can enjoy a seamless 
experience no matter how they choose to connect. 

“Working in Optus Retail has taught 
me how to ‘read’ customers so I can 
recommend a product or service that 
best suits their lifestyle.”
–  Dominic Lukaszewicz, 

Retail Consultant, Optus 

ANNUAL REPORT 2016

30

INVESTMENT IN CONTENT
The transformation of Optus into 
a mobile-led multimedia company 
coincides with the growing consumer 
appetite for online entertainment. 
About two-thirds of Australian adults 
currently use the internet to access 
video content. According to Cisco’s 
Visual Networking Index, video on 
demand is forecast to account for 
82% of Australian IP traffi  c and 
more than 77% of mobile data traffi  c 
by 2019.

Anticipating this continued growth, 
we are investing in partnerships, 
including with Cricket Australia and 
the Australian Olympic Committee. In 
November 2015, we won the exclusive 
Australian rights to the next three 
seasons of the English Premier League 
football competition. This marquee 
acquisition represents a milestone 

in the changing nature of content 
delivery to Australian consumers. 

PUTTING CUSTOMERS FIRST
This year, we introduced a range of 
plans to help customers maximise 
their data. We extended data rollover 
to prepaid mobile and prepaid 
mobile broadband plans. We also 
introduced Family Sharing, which 
allows customers to share and 
combine their entire household’s 
mobile data allowance on one bill. 
In August, we extended data sharing 
through Data Pool, which allows 
customers to combine the data 
from both their mobile and mobile 
broadband devices. 

We were the fi rst Australian telco 
to off er a mobile payment facility, 
Cash by Optus. Launched on Android 
in late 2014, the technology has 

been extended to iPhone using a 
Payment Sticker and also includes an 
NFC-enabled wristband which links 
directly to the Cash by Optus app. 

In the home, we are driving the take-
up of great value broadband plans. 
These bundle together unlimited 
data, telephony and compelling 
entertainment off ers such as Yes TV 
by Fetch or subscription off ers to 
video-on-demand services, Netfl ix 
and Stan. 

For customers who may not want, 
or who are unable to receive 
a fi xed broadband service, we 
have introduced Home Wireless 
Broadband. This is an out-of-the-box 
modem that uses mobile technology 
to deliver connectivity straight to a 
customer’s home, and is particularly 
useful for renters. 

Allen Lew, Optus CEO (left), and John Coates, Australian Olympic Committee President (right), celebrating the signing of Optus’ 10-year sponsorship, 
and appointment as the offi  cial telecommunications partner of the Australian Olympic team.

31

SINGAPORE TELECOMMUNICATIONS LIMITED 

Group Consumer
Australia

TRANSFORMING 
CUSTOMER SERVICE 
Optus recognises that our 
customers’ preferred methods 
of engagement are changing. 
Many customers prefer to interact 
through the immediacy of online 
channels using their mobile 
devices, rather than phoning a call 
centre or visiting a store. 

Buoyed by the success of our 
self-service portals, My Optus App 
and My Account, we continue 
to adapt our customer service 
model. We have started a multi-
year transformation to simplify our 
back-end technology and off er 
customers assistance through 
digital channels. This ensures 
issues can be resolved effi  ciently, 
reducing handoff s between 

front-line staff . Our social media 
response team handles up to 1,800 
customer queries a day, while Yes 
Crowd, our peer-to-peer platform 
in which members share and 
resolve customer issues, supervised 
by Optus staff , received 2.7 million 
visits during the year.

We are also improving service 
for our small business customers 
by completing the rollout of 
126 business specialist stores. A 
complementary service we now 
off er is Premium Business Support. 
This is a dedicated advisory centre 
to handle all our customers’ mobile 
and broadband queries.

A GREAT NETWORK
Our products, services and content 
all rely on an outstanding network. 

Recognising the popularity of over-
the-top video streaming services, 
we are focused on future-proofi ng 
our networks.

Our extensive network investment 
of A$1.6 billion in FY 2016, which 
is signifi cantly above our annual 
average of A$1.3 billion, has allowed 
us to deliver 4G mobile coverage 
to 94% of Australians, and optimise 
our fi xed networks for video 
streaming services. 

Our ongoing network investment 
programme is yielding results, with 
the performance of our mobile 
and fi xed networks recognised 
through independent testing. The 
P3 CommsDay Mobile Benchmark 
Australia ranked Optus’ mobile 
network as the best along major 

Share the love, share the  
gigs with Data Pool

6

10

3

23
Data Pool

Every family is different so we won’t pretend we’ve got the perfect 
mobile plan for yours. But there is a way to combine all your individual 
plans into one big Data Pool and share all your gigs. 

So if your kids are always running low on data, any gigs you don’t use  
can go towards keeping them happy.

VISIT US IN STORE

OPTUS.COM.AU/DATAPOOL

FAIR GO POLICY APPLIES.
Data Pool: Available on our latest postpaid mobile and mobile broadband plans. Use within Australia.

ANNUAL REPORT 2016

32

“My team and I are always looking at how 
advances in technology and trends in 
other markets can be adopted locally to 
improve the experience of our customers.”
–  Chris Smith, 

Head of Digital Sales and Service, Optus 

roads and highways, while the 
Australian Netfl ix ISP Speed Index 
has ranked Optus’ fi xed networks as 
the best for prime-time streaming 
for six consecutive months. Stan, a 
major Australian streaming provider, 

rated Optus as providing the fastest 
streaming service for its viewers for 
fi ve consecutive months. 

Acquiring new regional licences 
in the 1800MHz spectrum band 

positions us to expand 4G even further. 
We are the fi rst Australian carrier to 
introduce WiFi Talk, enabling customers 
to call and text over public WiFi 
where mobile coverage is limited or 
non-existent.

33

SINGAPORE TELECOMMUNICATIONS LIMITED 

Group Consumer
Regional Mobile Associates

The data revolution is only just beginning in the emerging markets with the 
increasing availability of aff ordable smartphone devices. As many customers are 
accessing the internet via their mobile phones and devices for the fi rst time, 
there is signifi cant growth potential for mobile data services and tremendous 
opportunities for our regional mobile associates. They are investing heavily in 
mobile infrastructure, moving from 3G to 4G, and introducing innovative 
digital services.

We are sharing insights and lessons from our own transformation eff orts, and 
working closely with them to drive digital empowerment and mobile data growth. 
As a Group with a ready market base of more than half a billion mobile customers 
across Asia Pacifi c and Africa, we are committed to leveraging our scale and 
collective expertise to derive greater synergies and serve our customers better.  

ANNUAL REPORT 2016

34

GROWTH IN MOBILE DATA AND 
DIGITAL SERVICES
The growth in mobile data services 
is a major opportunity for emerging 
market telcos seeking to diversify 
beyond traditional revenue streams 
from voice and text. The number 
of data users across our associates’ 
markets was 198 million as at 31 
March 2016, a 21% increase from 
a year earlier, while data volumes 
increased by 78% over the same 
period. Year-on-year revenue growth 
from mobile data ranged from 21% 
to 65%. 

Innovative pricing is helping to drive 
customer adoption of mobile data. 
In India, Airtel Night was introduced 
last year, where rebates were off ered 
to customers who use mobile data 

between 12am and 6am. This resulted 
in a 33% increase in data usage at 
night. In the Philippines, the Globe 
myLifestyle Plan was launched. It is 
a customisable postpaid plan which 
gives customers the fl exibility to select 
from various promotional packs that 
best suit their lifestyles and mobile 
data needs. 

Expanding the suite of attractive 
digital content through over-the-top 
(OTT) services is another way in which 
our associates are increasing their 
revenue. In Thailand, AIS Playbox was 
launched to provide high quality digital 
entertainment with its extensive range 
of TV channels, movies, cartoons and 
karaoke songs for home broadband 
customers. AIS has extended this to a 
mobile platform, AIS Play. Meanwhile, 

HOOQ, a premium OTT video service 
by Singtel, has been launched in many 
of our associates’ markets, such as 
India, Indonesia, Thailand and the 
Philippines. This has stoked data 
usage, since the latest movies and TV 
shows come at an aff ordable fee. 

Mobile payments are also proving 
popular in the emerging markets, 
where a large part of the population 
do not have credit cards or bank 
accounts. In Africa, Airtel Timiza 
was introduced to allow its 
customers access to short-term 
loans through their mobile phones. 
Telkomsel also off ered the TCash Tap 
sticker – an electronic money service 
that off ers customers a safe, easy 
and fast way to make payments  with 
selected merchants. 

“Regular face time with our regional mobile 
associates is essential when it comes to rolling 
out products and devices successfully. We always 
diff  erentiate our solutions across the region.”
–  Wendy Tan, 

Associate Director for Products and Devices, Singtel International

35

SINGAPORE TELECOMMUNICATIONS LIMITED 

Group Consumer
Regional Mobile Associates

POWERING UP THE NETWORKS
Our associates are signifi cantly 
expanding their 3G and 4G network 
capabilities to meet the rising 
demand for mobile data. Collectively, 
about S$8 billion was spent on capital 
expenditure in FY 2016, following a 
combined investment of more than 
S$13 billion over the previous two 
years. AIS, Airtel India and Globe also 
acquired additional 4G spectrum 
during the year. 

With India’s government and 
youthful population committed to 
transformation via the Digital India 

initiative, mobile data adoption is set 
to grow in both cities and rural areas. 
Airtel is investing INR 600 billion over 
the next three years to improve voice 
and data services for customers as part 
of its Project Leap transformation. Airtel 
was the fi rst to launch 4G in India 
and currently off ers 4G in 14 telecom 
circles. In addition, recent spectrum 
acquisitions will allow Airtel to off er 
4G services across the whole of India.   

Signifi cant network expansions 
are also underway across the rest 
of our footprint. In January 2016, 
AIS launched 4G services across 42 

provinces in Thailand, with the aim of 
achieving 50% population coverage 
by year end. In Indonesia, Telkomsel 
currently off ers 4G in about 40 cities, 
in addition to its 3G coverage, while 
in the Philippines, Globe is expanding 
its 4G coverage and capacity.

Airtel Africa is also investing in 
network infrastructure to support 
its growing mobile data customer 
base. It is currently expanding its 
3G network to become the market 
leader in the various markets where it 
operates. It has also introduced 4G in 
Seychelles, Rwanda and Gabon.

ANNUAL REPORT 2016

36

PROMOTING CLOSER 
GROUP COLLABORATION
Collaboration among Singtel’s 
associates reached new highs in 
2015 as we sought ways to leverage 
the Group’s scale.  

cross-pollination of new ideas and 
tap into local tech ecosystems. 
Group negotiations for entry-level 
handsets as well as SIMs lower our 
operating costs and help to promote 
the adoption of mobile data.

Our Centres of Excellence 
framework provides a platform to 
share business insights, product 
strategies and operational best 
practices across the Group. Group-
wide initiatives such as our annual 
CEO Forum, Product Innovation 
Fair and Mobile App Challenge 
are also designed to encourage 

Our collaborative eff orts also enable 
our content and service partners to 
tap on the Group’s collective billing 
capability, both in direct carrier 
billing as well as mobile wallets. The 
Singtel Open Platform is a common 
payment gateway for Singtel, Optus 
and our regional mobile associates. 
This one-stop shop signifi cantly 

reduces the integration eff ort and 
time for our business partners. In 
FY 2016, we signed agreements 
with online shopping company 
Lazada, gaming company Asiasoft 
and transport booking app 
Grab, which allow customers 
to make payments using our 
associates’ direct carrier billing 
and mobile wallet capabilities. 
Such arrangements will empower 
millions of customers without 
access to credit cards and bank 
accounts to participate in online 
commerce with the security and 
convenience of cashless payments.

Singtel’s Regional Payment Gateway

Content Providers
• Asiasoft

App Stores
• Google Play
• Samsung  
  Galaxy Apps
• Windows  
  Phone Store 

eCommerce
• Grab
• Lazada

Direct 
Carrier Billing

mWallet

Group
Enterprise

As globalisation accelerates and cities become 
smarter and more integrated, network and 
communication technology continues to be 
vital for both businesses and public agencies 
looking to exploit such capabilities as levers 
for growth. The shift to cloud services has 
also created complex demands on infocomm 
technology (ICT) services. This is underlined by 
the need for greater connectivity, cyber security 
and advanced analytics. We off  er our potential 
partners a reliable and progressive suite of 
managed and network infrastructure services 
they can depend on.

Networks

Smart Cities

Cloud Computing

Cyber Security

Business Mobility

IT Services

Data 
Centres

Satellite
Communications

39

SINGAPORE TELECOMMUNICATIONS LIMITED 

Group Enterprise

Singtel is driving growth in our three strategic priorities in the digital economy: cloud, 
cyber security and smart city solutions. We are also strengthening our leadership in 
our core enterprise ICT business with network infrastructure, such as advanced data 
centres, international data networks, next-generation software-defi ned networks and 
info-technology capabilities. 

Our strategy is to deliver solutions that help businesses and governments transform 
the way they market, engage and innovate. To strengthen our market leadership 
in Asia Pacifi c, we are building and acquiring capabilities, deepening our industry 
expertise and forging strategic partnerships.

Investing in 
Key Infrastructure

Connectivity

Southeast Asia – Middle East – 
Western Europe 5 Cable

• Multi-regional data super highway 

- 20,000 km submarine 
communications cable system
linking Southeast Asia to 
Western Europe

• Developed by consortium of 

18 global players

• 100Gbps technology can meet 

demand by bandwidth-intensive 
applications

13 Data Centres
across Asia Pacifi c

Cyber Security

12 Security Operations 
Centres globally 

GROWING OUR ENTERPRISE 
CLOUD CAPABILITIES
As businesses and governments 
migrate their information 
infrastructure and data assets to 
the cloud to operate with greater 
speed and agility, cloud is spurring 
a reinvention of business processes 
and models. This is creating a 
market that is expected to grow 
from US$175 billion in 2015, to 
US$204 billion in 2016, according 
to Gartner. We are capturing this 
market opportunity with a greater 
choice of platforms and cloud-
based solutions for our customers 
through a growing number of 
leading cloud service partners. 

We launched managed public 
and private cloud services to 
complement our virtual private 
cloud service, off ering customers 
cloud platform combinations that 
can support their applications, 
scale their operations securely, 
reliably and cost eff ectively while 
fulfi lling compliance requirements. 
For customers who are at diff erent 
stages of cloud adoption to move to 
the cloud and tap its full potential, 
we introduced Singtel Cloud 
Lifecycle Services. We also launched 
Singtel ConnectPlus Software-
Defi ned Wide Area Network to help 
them simplify and securely manage 
their private networks and public 
internet services. 

We are investing in a S$400 million 
data centre to meet increasing 
demand for secure and reliable cloud 
services and support the expansion 
of our cloud platform across Asia. 
The centre is set to be the largest 
in Singapore when completed 
in the third quarter of 2016 and 
will increase our network of data 
centres in Asia Pacifi c to 13. It will 
host new cloud, smart and analytics 
technologies to help businesses of all 
sizes to innovate, scale and connect 
their operations in Singapore and the 
region seamlessly.

BOOSTING CYBER 
SECURITY CAPABILITIES
Cyber security is becoming 
increasingly critical as cloud 
computing and enterprise mobility 
services consume larger amounts 
of complex data over the internet, 
and cities become more connected. 
The growing frequency and 
sophistication of cyber threats 
are making many enterprises and 
governments realise that they are not 
adequately equipped with technical 
and professional resources to 
respond to cyber threats. According 
to Gartner, the urgent need to fi nd 
trusted partners to address their 
cyber vulnerabilities is fuelling the 
growth of the global managed 
security services industry from 
US$15 billion in 2015 to US$27 billion 
in 2019. 

“We customise our solutions as every client has 
diff  erent business needs. With Brussels Sprouts, we 
recommended a cloud solution to help them run their 
operations across various restaurants in Singapore.”
–  Jason Tan Jie Sheng, 

Territorial Sales Manager, Singtel (right) 
with Gavin Chen, CEO of Brussels Sprouts (left)

We have been growing our cyber 
security capabilities organically 
and through investments and 
partnerships with FireEye, Akamai 
and Palo Alto Networks, in 
anticipation of this trend. With 
our 2015 acquisition of Trustwave, 
the largest independent managed 
security services provider in North 
America, we can now provide 
diff erentiated security solutions for 
diff erent markets and industries 
and meet the growing demand for 
real-time, round-the-clock managed 
security services. 

We have also broken new ground 
in maritime cyber security globally 
by partnering global mobile satellite 
communications company Inmarsat 
to deploy Trustwave’s managed 
security services to defend against 
cyber attacks. 

We are growing our leadership in 
the enterprise cyber security space 
with the launch of the Singtel Cyber 
Security Institute or CSI in April 

2016. An advanced cyber range and 
educational institute, the CSI will 
meet the growing regional need for 
skilled cyber security expertise and 
raise cyber preparedness among 
boards and C-suites. It is the fi rst of 

its kind in the region to enhance the 
cyber defence capabilities of cyber 
operations teams and equip company 
boards and senior management 
with cyber awareness, crisis and 
communications management skills.

Reach for the public cloud with 
a faster, private connection.

AN INFECTED COMPUTER 
CAN SERIOUSLY HURT YOUR BUSINESS.

Protect your business with Singtel Managed Security Services, powered by Trustwave.
Beyond just anti-virus, we deliver email protection for your business. With Singtel Managed Security Services, 
you are protected before and during cyber attacks. 

Enjoy a more reliable, direct and secure connection to major cloud computing 

ONLY

platforms with the MPLS-based Singtel Cloud Access. It is now easier for 

your business to create private connections between public cloud, 

data centres and on-premise infrastructure.  

www.ipvpnasia.com

For local requirements: 
bizenquiry@singtel.com

For international requirements: 
g-cplusmktg@singtel.com 

$6.42/mth

per user

Managed Security Services for 
computer and email protection

Defend
24/7 monitoring against all 
(cid:86)(cid:222)(cid:76)(cid:105)(cid:192)(cid:3)(cid:204)(cid:133)(cid:192)(cid:105)(cid:62)(cid:204)(cid:195)(cid:3)(cid:118)(cid:156)(cid:192)(cid:3)(cid:222)(cid:156)(cid:213)(cid:192)(cid:3)(cid:156)(cid:118)(cid:119)(cid:86)(cid:105)(cid:3)
email and computers.

Inform
Daily summary of viruses 
and malware attacks  
that have been blocked. 

Investigate
24/7 helpdesk and 
breach reporting to 
recover from attacks.

Get protection from cyber attacks now, call us at 1800-763-1111
or visit www.singtel.com/SecuritySolutionsSTA

(cid:47)(cid:192)(cid:213)(cid:195)(cid:204)(cid:220)(cid:62)(cid:219)(cid:105)(cid:3)(cid:133)(cid:105)(cid:143)(cid:171)(cid:195)(cid:3)(cid:76)(cid:213)(cid:195)(cid:136)(cid:152)(cid:105)(cid:195)(cid:195)(cid:105)(cid:195)(cid:3)(cid:119)(cid:125)(cid:133)(cid:204)(cid:3)(cid:86)(cid:222)(cid:76)(cid:105)(cid:192)(cid:86)(cid:192)(cid:136)(cid:147)(cid:105)(cid:93)(cid:3)(cid:171)(cid:192)(cid:156)(cid:204)(cid:105)(cid:86)(cid:204)(cid:3)(cid:96)(cid:62)(cid:204)(cid:62)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:192)(cid:105)(cid:96)(cid:213)(cid:86)(cid:105)(cid:3)(cid:195)(cid:105)(cid:86)(cid:213)(cid:192)(cid:136)(cid:204)(cid:222)(cid:3)(cid:192)(cid:136)(cid:195)(cid:142)(cid:176)(cid:3)(cid:55)(cid:136)(cid:204)(cid:133)(cid:3)(cid:86)(cid:143)(cid:156)(cid:213)(cid:96)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:147)(cid:62)(cid:152)(cid:62)(cid:125)(cid:105)(cid:96)(cid:3)(cid:195)(cid:105)(cid:86)(cid:213)(cid:192)(cid:136)(cid:204)(cid:222)(cid:3)(cid:195)(cid:105)(cid:192)(cid:219)(cid:136)(cid:86)(cid:105)(cid:195)(cid:93)(cid:3)(cid:136)(cid:152)(cid:204)(cid:105)(cid:125)(cid:192)(cid:62)(cid:204)(cid:105)(cid:96)(cid:3)
technologies and a team of security experts, ethical hackers and researchers, Trustwave enables businesses to transform the way they manage 
their information security and compliance programs. More than three million businesses are enrolled in the Trustwave TrustKeeper® cloud 
(cid:171)(cid:143)(cid:62)(cid:204)(cid:118)(cid:156)(cid:192)(cid:147)(cid:93)(cid:3)(cid:204)(cid:133)(cid:192)(cid:156)(cid:213)(cid:125)(cid:133)(cid:3)(cid:220)(cid:133)(cid:136)(cid:86)(cid:133)(cid:3)(cid:47)(cid:192)(cid:213)(cid:195)(cid:204)(cid:220)(cid:62)(cid:219)(cid:105)(cid:3)(cid:96)(cid:105)(cid:143)(cid:136)(cid:219)(cid:105)(cid:192)(cid:195)(cid:3)(cid:62)(cid:213)(cid:204)(cid:156)(cid:147)(cid:62)(cid:204)(cid:105)(cid:96)(cid:93)(cid:3)(cid:105)(cid:118)(cid:119)(cid:86)(cid:136)(cid:105)(cid:152)(cid:204)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:86)(cid:156)(cid:195)(cid:204)(cid:135)(cid:105)(cid:118)(cid:118)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:3)(cid:204)(cid:133)(cid:192)(cid:105)(cid:62)(cid:204)(cid:93)(cid:3)(cid:219)(cid:213)(cid:143)(cid:152)(cid:105)(cid:192)(cid:62)(cid:76)(cid:136)(cid:143)(cid:136)(cid:204)(cid:222)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:86)(cid:156)(cid:147)(cid:171)(cid:143)(cid:136)(cid:62)(cid:152)(cid:86)(cid:105)(cid:3)(cid:147)(cid:62)(cid:152)(cid:62)(cid:125)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:176)(cid:3)

A Singtel Company:

Copyright © 2015 Singapore Telecommunications Ltd (CRN:199201624D). 
All rights reserved. All other trademarks mentioned in this document are the property of their respective owners.

1800-SME-1111 (1800-763-1111)             Singtel Shop Comcentre             business.singtelshop.com

Terms and Conditions apply.
Copyright © 2015 Singapore Telecommunications Ltd (CRN: 199201624D). All rights reserved.

41

SINGAPORE TELECOMMUNICATIONS LIMITED 

Group Enterprise

CREATING SOLUTIONS THAT 
POWER SMARTER CITIES
With more than 60% of the world’s 
population expected to live in 
or around a city by 2025, urban 
challenges are set to rise and 
drive the growth of smart cities. 
We are enabling smart cities with 
our advanced capabilities in cloud 
computing, analytics and agile 
application development. 

In Singapore, our solutions are 
adding intelligence and connectivity 
to infrastructure, supporting the 
government’s initiative to transform 
the country into the world’s fi rst 
Smart Nation by 2025.

Electronic Road Pricing system for 
Singapore’s Land Transport Authority. 
Our solution, which uses advanced 
satellite technology for congestion 
management, is the fi rst of its kind 
to be implemented nationwide in an 
urban environment. The new system 
is expected to be implemented 
progressively from 2020.

Our Continuous Care Management 
solution helps healthcare institutions 
and agencies provide better care 
for an ageing population and reduce 
costs. This solution allows doctors and 
caregivers to remotely engage with 
patients and track their condition as 
they recuperate at home. 

In the area of transport, we won the 
bid with Mitsubishi Heavy Industries 
to deliver a next-generation 

We are also investing in the 
development of a talent pool of 
professionals with skills and experience 

in smart city solutions. In 2015, 
we launched the Solutions for 
Urbanised Future (SURF) training 
programme as part of the 
Infocomm Development Authority 
of Singapore’s Company-Led 
Training initiative. This programme 
off ers on-the-job training in 
smart city solutions to 100 entry-
level graduates over one year, 
and refl ects our commitment to 
Singapore’s Smart Nation journey. 

In Australia, we are providing 
advanced location analytics 
for leading retail mall operator 
Scentre Group in partnership 
with Aruba and SkyFii. With this 
solution, Scentre Group can 
deliver personalised content to its 
subscribers’ mobile devices when 
they visit the malls.

Singapore’s Minister for Communications and Information, Dr Yaacob Ibrahim (centre), graced the opening of the Singtel Cyber Security Institute, 
fl anked by Group CEO, Chua Sock Koong (right), and CEO, Group Enterprise, Bill Chang (left).

ANNUAL REPORT 2016

42

“My colleagues and I develop and 
integrate new technology for our 
mobile networks, so customers can 
communicate even in rail tunnels 
and high traffi    c areas.”
–  Richard Fear, 

Manager, Radio Planning Team, Optus

SUPPORTING SMALL AND 
MEDIUM ENTERPRISES
Small and medium enterprises or 
SMEs make up 99% of all registered 
businesses in Singapore, forming 
a vital backbone for the local 
economy. This is why we actively 
help SMEs prepare for the digital 
economy through ICT adoption 
and upgrading. 

In 2015, we launched the nationwide 
99%SME campaign with DBS, 
MediaCorp and other partners, to 
drive innovation for small businesses 
by encouraging them to use ICT and 
social media to generate awareness 
of and demand for their off erings. 

The campaign tapped the Brand 
Intelligence platform of Amobee, 
our global digital marketing 
business, to help SMEs collate and 
analyse online customer sentiment. 
We used social media to publicise 
the off erings of participating SMEs 
to more than 1.1 million consumers. 
Finally, the campaign culminated 
in a four-day 99%SME Week, where 
consumers across Singapore rallied 
around over 1,600 local SMEs by 
buying and using their products 
and services. 

We are committed to this annual 
campaign for the next four years to 
help local SMEs grow.

Singapore’s 1st SME week starts today.

Show your support by shopping with participating SMEs
and get 1GB free local data* from Singtel.

Group
Digital Life

We know that it is not enough to just rely 
on and improve our core services. As the 
landscape begins to radically shift towards a 
data-driven digital economy, we must pursue 
other growth drivers while capitalising on 
our core telco assets. This presents new 
emerging opportunities for us to capture. 
Hence, we continue to invest in three distinct 
digital business strands, besides funding 
and developing new digital services that 
have the potential to go global. 

Digital Marketing

Geoanalytics

Brand Intelligence helps 
clients such as Microsoft, 
Lexus and Fiat engage 
customers better

intelligently interprets
location-based mobile data 
to generate commercial and 
public sector insights

Accessing 
Innovation

Mobile Video 
Streaming

gives the Group early 
access to leading 
innovations through 
investments

provides 35,000 hours of 
premium Hollywood, Asian 
and local entertainment to 
customers in emerging markets

45

SINGAPORE TELECOMMUNICATIONS LIMITED 

Group Digital Life

Group Digital Life is focused on three specifi c areas: digital marketing, advanced data 
analytics and intelligence, and premium over-the-top (OTT) video to lead our push into 
the digital economy. We also drive innovation through our corporate venture capital fund 
Singtel Innov8, which has access to cutting-edge technologies globally.

Digital innovation requires more than an agile mindset and passion for experimentation. 
Singtel’s competitive edge is derived from our extensive customer datasets and 
relationships with more than half a billion customers across Asia, Africa and Australia. 
This unparalleled level of market insight enables us to deliver scalable technology 
breakthroughs and spearhead innovation in conjunction with our regional mobile associates.

THE FUTURE OF 
DIGITAL MARKETING
Brands and advertisers are increasingly 
choosing digital marketing channels 
to reach consumers. Total digital 
ad spending is forecast to reach 
US$301 billion by 2020, according 
to eMarketer, with Asia set to enjoy 
the largest percentage growth. The 
shift in advertising dollars refl ects 
the changing content consumption 
habits of audiences, who are spending 
more time on their mobile devices 
for information and entertainment 

than traditional channels such as 
television and radio.

Amobee, our global digital 
marketing arm, is positioned 
to seize these opportunities. 
The Amobee Brand Intelligence 
platform analyses and correlates 
more than 60 billion content 
engagements daily ac ross the web, 
social media, video and mobile. 
With unique insights into their 
target audience, Amobee’s brand 
and agency clients can optimise 

media strategies in real time to 
increase brand awareness and 
engagement rates. Amobee 
INK, a proprietary technology, 
makes this more precise by 
allowing clients to overcome 
the challenge of audience 
fragmentation across multiple 
devices to eff ectively identify 
and engage consumers with the 
right impressions.

In 2015, Amobee took signifi cant 
steps to extend its reach and 

“Companies are cracking their 
heads to reach customers in 
the brave new world of digital 
advertising. At Amobee, 
we have a nifty Brand 
Intelligence platform that 
will give them the insights 
they need to raise their brand 
awareness and customer 
engagement levels.”

–  Karen Adayo, 

Campaign Manager, Amobee

 
ANNUAL REPORT 2016

46

capabilities. For example, Amobee 
Locate enables clients to target 
mobile and tablet devices using 
location and audience data from 
North America. A further innovation 
is Amobee OutStream, which targets 
audiences with interactive video 
ad formats that are seamlessly 
embedded within relevant editorial 
content and only play when the ads 
are in view. This is achieved through 
a semantic-level understanding 
of editorial content using Brand 
Intelligence technology.

Amobee also signed marketing 
partnerships with Instagram and 
Pinterest, in addition to existing 
Ads API integrations with Facebook 
and Twitter. Clients can use Brand 
Intelligence technology to drive 
customer engagement across the 
world’s four most popular social 
media platforms.   

GENERATING INSIGHTS FROM 
ADVANCED ANALYTICS
DataSpark leads our eff orts to 
interpret the rich and unique 
customer data through geoanalytics 
to give governments and businesses 
the clarity and confi dence to 
act on insights and make more 
eff ective decisions. All data used 
by DataSpark is encrypted, 
anonymised and aggregated to 
protect customer privacy.  

For businesses, the anonymised 
location data helps focus their 
marketing eff orts in areas with 
high footfall, while governments 
can plan better for transport, 
housing, healthcare, education and 
emergency services.

During the year, our telco affi  liates 
started to use DataSpark’s advanced 
analytics tools for the fi rst time 

to optimise network and retail 
shop planning, and enhance their 
marketing eff orts.

In Singapore, DataSpark is helping 
clients in the public sector improve 
mobility and urban planning. By 
providing planners with insights 
on residential and commercial 
districts and the commuting 
patterns of the population 
between these areas, we are 
contributing towards Singapore’s 
Smart Nation vision.

The priority that DataSpark places 
on data science is refl ected in 
the seven geoanalytics patents 
fi led in 2015. DataSpark has 
also signifi cantly improved the 
confi gurability and scalability of 
its software, enabling it to 
handle a more versatile range of 
large datasets.

47

SINGAPORE TELECOMMUNICATIONS LIMITED 

Group Digital Life

MAKING MULTIMEDIA 
ACCESSIBLE
Digital video consumption is 
surging, especially in Asia where the 
proliferation of aff ordable mobile 
devices and a growing middle class 
are allowing consumers to access 
content anytime. It is estimated 
that by 2020, there will be more 
than 100 million paying digital video 
users in Asia (ex-China), creating 
a market worth S$1 billion.

HOOQ, Singtel’s premium OTT 
video solution, was launched with 
Sony Pictures and Warner Bros. 
Entertainment to capture this fast-
growing market and help diversify 
our revenue streams. HOOQ 
recently launched in Indonesia, 
adding to its presence in India, 
the Philippines and Thailand. As 
subscriptions continue to grow, 
we aim to become the largest OTT 

provider in Asia Pacifi c through close 
collaboration with our regional mobile 
associates. This service will also help 
them to drive mobile data adoption in 
their markets.  

HOOQ off ers aff ordable access to 
more than 35,000 hours of Hollywood, 
Asian and local video content, 
supplemented this year by hit TV 
shows such as Mad Men and Supergirl. 
Customers can enjoy unlimited 
streaming on any connected device 
or choose to download their favourite 
shows when it is convenient and watch 
it uninterrupted – a helpful feature in 
markets where mobile networks are 
not able to support 4G speeds yet. In 
addition, viewers can enjoy HOOQ 
content on their television screens 
via Google Chromecast. 

We make billing easier for HOOQ 
subscribers through our associates’ 

carrier billing facility, a vital 
factor in countries where credit 
card penetration is extremely 
low. In India, HOOQ has signed 
innovative distribution and payment 
partnerships with Snapdeal, Paytm 
and Tapp. 

INVESTING IN INNOVATION
Singtel’s success hinges on continuous 
innovation. Complementing our 
in-house eff orts, our US$250 million 
corporate venture fund Singtel Innov8 
(Innov8), focuses its investments in 
innovative start-ups around the world 
with technologies and solutions that 
enhance the Group’s capabilities, 
giving us access to emerging 
technologies.

Innov8 works closely with the 
ecosystem of leading innovators, 
developers, government agencies, 
R&D and capital providers to bring 

“We’re always shopping for quality 
movies and TV content. Our goal is 
to curate the best off  erings – both 
local and international – for our 
subscribers across the region.” 
–  Zafi ra Shareef, 

Associate Director, Content Acquisition, HOOQ 

“I love being a data scientist 
and the thought that my 
work in geoanalytics can 
help urban planners make 
traffi    c congestion a thing 
of the past anywhere in the 
world. How cool is that?”

–  Vinutha Raghavendra, 

Senior Data Engineer, DataSpark

industry-leading cloud-based 
Internet of Things (IoT) platform 
Jasper was acquired by Cisco.

In January 2016, Innov8 launched 
the Innov8 Connect programme, 
which aims to bring start-ups 
and Singtel together to create 
innovative solutions for business 
challenges faced by the Singtel 
Group. Innov8 Connect provides 
start-ups the opportunity to 
collaborate directly with Singtel’s 
business units to tackle real-world 
business challenges and validate 
their solutions at the same time. 
Successful solutions may lead to 
commercialisation and start-ups 
will also have the opportunity to 
seek funding from Innov8 and tap 

into its network of co-investors and 
partners across the globe.

Innov8 also formed a partnership 
with the innovation arms of Orange, 
Telefonica and Deutsche Telekom 
in 2015 to bridge the start-up 
ecosystems across Southeast Asia, 
Africa, Europe, Latin America and the 
Middle East. Branded Go Ignite, the 
alliance aims to better provide go-to-
market support to eligible start-ups 
beyond their home market. This will 
give start-ups the opportunity to tap 
on the resources and network of four 
leading communications companies, 
as well as their collective enterprise 
and consumer customer base of over 
one billion mobile customers across 
fi ve continents.

cutting-edge technologies and 
solutions to the various markets 
we operate in. Its portfolio start-
ups have the opportunity to access 
our mobile customer base and 
enterprise customers from both 
developed and emerging markets 
across 25 countries. In addition, 
start-ups are also able to leverage 
Innov8’s presence in the global 
innovation hubs of Singapore, San 
Francisco and Tel Aviv, as well as 
its partnerships across the globe to 
accelerate their growth.

For example, in FY 2016, Innov8 
invested in HOPE Technik, a leading 
Singapore-based engineering 
company that delivers solutions 
for industries involved in all 
aspects of the supply chain. Its 
portfolio includes the design and 
manufacture of drones, fi re-fi ghting 
and classifi ed vehicles, automated 
guided vehicles and space plane 
demonstrators. HOPE Technik 
and our subsidiary, NCS, are now 
collaborating on government 
and enterprise projects designed 
to further Singapore’s Smart Nation 
initiative such as the use of 
drones and automated guided 
vehicles as part of emergency 
response systems.

A number of Innov8’s portfolio 
companies have been acquired 
during the past year. Notably, 

49

SINGAPORE TELECOMMUNICATIONS LIMITED 

Key Awards and Accolades

Business Excellence

SINGTEL

ASIA COMMUNICATION AWARDS 2015
• Best Brand Campaign for Dash
• Satellite Operator of the Year

COMPUTERWORLD HONG KONG 
AWARDS 2015
• Best Global WAN Connectivity Service 

Provider of the Year

COMPUTERWORLD READERS’ 
CHOICE AWARDS
• Best Managed Connectivity Services 

(2006–2015)

COMPUTERWORLD SINGAPORE 
CUSTOMER CARE AWARDS
• Telecommunications Services 

(2008–2015)

• VOIP/IP Telephony Systems (2015)

CUSTOMER EXPERIENCE 
MANAGEMENT (CEM) ASIA SUMMIT 
2015
• Best Contact Centre for Client Business 

(1st Runner Up)

• Best Customer Experience Team 

(Winner)

• Best Digital Experience for Dash 

(Honorary Mention)

FROST & SULLIVAN SINGAPORE 
EXCELLENCE AWARDS 2015
• Mobile Service Provider 
• Telecom Service Provider of the Year

HWM + HARDWAREZONE.COM TECH 
AWARDS 2015 & 2016
• Best Fibre Broadband Service Provider 
• Best Telco 

IDC ASIA/PACIFIC TELECOM 
SUMMIT AWARDS
• Service Provider of the Future

INTERNATIONAL CONTACT CENTRE 
AWARDS 2015
• Best Customer Experience Delivered for 

Client Business (Bronze) 

• Best Outsourced Programme Contact 

Centre for Client Business (Gold)

NETWORKWORLD ASIA INFORMATION 
MANAGEMENT AWARDS
• Best in Disaster Recovery & Business 

Continuity (2014–2015)

• Best in Security as a Service (2012–2015)

NETWORKWORLD ASIA READERS’ 
CHOICE AWARDS
• Best in Managed Infrastructure Services 

(2012–2015)

• Best in Managed Security Services 

(2014–2015)

SINGAPORE RETAIL ASSOCIATION 
AWARDS 2015
• PREMIUM Service GEM Award – 
Telecommunications category
(May–July 2015)

• Service Excellence Awards – 

57 Star, 52 Gold and 22 Silver award 
recipients

SINGTAO DAILY IT SQUARE EDITORS’ 
CHOICES HK AWARDS 
• Best Managed ICT Service Provider 

(2011–2014)

TELECOMS.COM AWARDS 2015
• Pushing the Mobile Limits Award

WORLD COMMUNICATION 
AWARDS 2015
• Best Enterprise Service: 

Managed Hybrid Network
• Best Mobile Product: Dash

OPTUS

NCS

CIO AWARDS 2015 
• CIO Asia 100 Honourees Award

COMPUTERWORLD SINGAPORE 
CUSTOMER CARE AWARDS
• System Integrator (2014–2015)

MOB-EX AWARDS 2015
• Best Use of Social Platform: 
DBS Business Class (Gold)

• Most Innovative Use of Mobile: 

MyTransport.SG (Gold) 

• Most Informative Use of Mobile: 

Visa Explore (Silver)

• Most Informative Use of Mobile: 

MyTransport.SG (Bronze) 

AMOBEE

2016 AMERICAN BUSINESS AWARDS 
• Most Innovative Tech Company 

of the Year

• Company of the Year

BEST IN BIZ AWARDS 2015
• Innovative Product of the Year – 

Amobee Brand Intelligence

CIO REVIEW 2015
• Top 20 Most Promising Digital 
Marketing Solution Providers

DATASPARK 

2015 GLOBE TELECOMMUNICATIONS 
AWARDS
• Innovation Award

CIO REVIEW 2015
• Top 20 Most Promising GIO Companies 

2015 ACCOM AWARDS 
• Best Mobile Solution for Cash by Optus

TELECOM ASIA AWARD 2015
• Most Advanced Analytics

HOOQ

GLOBAL MOBILE (GLOMO) AWARDS 
2016
• Best Mobile App (Media, Film, TV or 

Video category)

ANNUAL REPORT 2016

50

Corporate Citizenship

REGIONAL MOBILE 
ASSOCIATES

SINGTEL

AIS

FROST & SULLIVAN THAILAND 
EXCELLENCE AWARDS 2015
• Data Service Provider of the Year
• Mobile Service Provider of the Year
• Telecom Service Provider of the Year

SUPERBRANDS AWARDS 2015

BHARTI AIRTEL

CNBC TV18 INDIA RISK MANAGEMENT 
AWARDS 2015
• Firm of the Year – Telecommunication

FROST & SULLIVAN INDIA 
INFORMATION & COMMUNICATIONS 
TECHNOLOGY (ICT) AWARD 2015
• Best Enterprise Telecom Service 

Provider of the Year, SMB (Corporate) 
category

GLOBE

18TH ANNUAL TELECOM ASIA AWARDS
• Best Emerging Market Operator

9TH ANNUAL STEVIE AWARDS FOR 
SALES & CUSTOMER SERVICE
• Gold Stevie in Best Use of Technology 

in Customer Service (All Other 
Industries)

TELKOMSEL

FROST & SULLIVAN ASIA PACIFIC 
ICT AWARD 2015
• Mobile Service Provider of the Year 

RED HAT ASIA PACIFIC INNOVATION 
AWARD 2015 
• Best IT Innovation

ALPHA SOUTHEAST ASIA 
INSTITUTIONAL INVESTOR 
AWARDS 2015
• Most Consistent Dividend Policy
• Most Organised Investor Relations
• Strongest Adherence to Corporate 

Governance 

ASEAN CORPORATE GOVERNANCE 
SCORECARD 2015
• 1st in Singapore
• Top 5 in ASEAN

CDP 2015 INDEX (ASIA EX-JAPAN)

COMMUNITY CHEST AWARDS 2015
• Corporate Platinum Award
• SHARE Corporate Gold Award

FINANCEASIA ASIA’S BEST 
COMPANIES POLL 2015
• Best Managed Company, Singapore

GOVERNANCE AND 
TRANSPARENCY INDEX 2015
• 1st in Singapore

HR EXCELLENCE AWARDS 2015
• Cross-Border HR Programmes – Gold
• HR Social Media – Gold 
• Mature Workforce Practices – Gold
• Compensation & Benefi ts Strategy – 

Silver

• Employee Engagement – Silver
• Employee Development – Silver
• Talent Management – Silver
• Workplace Well-Being – Silver
• Graduate Development – Bronze

HRM AWARDS 2016
• Best Performance Management
• Best Reward & Recognition Strategies
• HR Team of the Year

IR MAGAZINE AWARDS – 
SOUTH EAST ASIA 2015
• Best in Sector: 

Communications & Technology

NEWSWEEK GLOBAL 500 COMPANIES 
GREEN RANKINGS 2015
• Ranked 81st globally (1st in Singapore)

SIAS INVESTORS’ CHOICE AWARDS 2015
• Board Diversity Award

SINGAPORE HR AWARDS 2015
• Leading HR Practices in:

- Compensation & Rewards 

Management

- Lifelong Learning
- Talent Management, Retention & 

Succession Planning

SUSTAINABLE BUSINESS AWARDS 
SINGAPORE 2015
• Stakeholder Engagement and Materiality

WORLD’S MOST ETHICAL 
COMPANIES 2016
• Winner

OPTUS

ETHICAL CORPORATION’S 
SIXTH ANNUAL RESPONSIBLE 
BUSINESS AWARDS 
• Most Eff ective Domestic Community 

Investment 

LEARNX IMPACT AWARDS 2015 
• Best eLearning Design-Rapid Authoring, 

Silver Winner

• Best New Technology Implementation – 

Cloud-based Learning Solution, 
Gold Winner

• Best Talent-Learning Team, 

Platinum Winner

NAPCAN PLAY YOUR PART AWARDS 
2015 
• National Award

RANDSTAD AWARD 2015
• Top 3 Most Attractive ICT Companies

Governance
&
Sustainability
Philosophy

We know our stakeholders and investors are no longer 
just interested in our financial performance. They are also 
interested in how we create long-term value by embracing 
responsible business practices and being transparent with 
our disclosures. We have always aspired to the highest  
level of corporate governance and will continue to do so,  
to bring greater value to our shareholders. 

Our stakeholders are also keen to know more about our 
social performance – how we protect the consumer,  
give back to society, look after the environment and 
address workplace diversity. We believe our reputation  
and long-term success depend not just on business and 
financial indicators, but how we create positive change 
in our society.  We will continue to stay ahead of the 
competition and build a sustainable future for all.

53

SinGaPore telecommunicationS limited 

corporate Governance

Our Governance Framework

Chairman
Simon iSrael

Key Objective
Responsible for leadership of the  
Board and for creating conditions  
for overall Board, Board Committee  
and individual Director effectiveness

The BOard OF SinGTel
9 directorS:
6 independent Directors and  
3 non-independent Directors 

Key Objective
To create value for shareholders  
and to ensure the long-term  
success of the Group

audiT COmmiTTee

3 independent Directors and  
1 non-independent Director

Chairman
BOBBy Chin

Key Objective
Assist the Board in discharging its statutory and 
other responsibilities relating to internal controls, 
financial and accounting matters, compliance, and 
business and financial risk management

COrPOraTe GOVernanCe & nOminaTiOnS COmmiTTee

2 independent Directors and  
1 non-independent Director

Chairman
lOW CheCK Kian

Key Objectives
Establish and review the profile of Board members; 
make recommendations to the Board on the 
appointment, re-nomination and retirement of 
Directors; review the independence of Directors; 
assist the Board in evaluating the performance 
of the Board, Board Committees and Directors; 
and develop and review the Company’s corporate 
governance practices

eXeCuTiVe reSOurCe & COmPenSaTiOn COmmiTTee

2 independent Directors and  
1 non-independent Director

Chairman
PeTer maSOn am

Key Objectives
Oversee the remuneration of the Board and Senior 
Management, and set appropriate remuneration 
framework and policies, including long-term 
incentive schemes, to deliver annual and long-term 
performance of the Group

FinanCe & inVeSTmenT COmmiTTee

2 independent Directors and  
1 non-independent Director 

Chairman
SimOn iSrael

Key Objectives
Provide advisory support on the development of 
the Group’s overall strategy, review strategic issues, 
approve investments and divestments, review the 
Group’s Investment and Treasury Policies, evaluate 
and approve financial offers and banking facilities, 
and manage the Group’s liabilities 

riSK COmmiTTee

2 independent Directors and  
1 non-independent Director 

Chairman
BOBBy Chin

Key Objectives
Ensure that Management maintains a sound system  
of risk management and internal controls to 
safeguard shareholders’ interests and the Group’s 
assets, and determine the nature and extent of the 
material risks that the Board is willing to take in 
achieving the Group’s strategic objectives

GrOuP ChieF eXeCuTiVe OFFiCer

Chua SOCK KOOnG 

Key Objectives
Manage the Group’s business and implement 
strategy and policy 

manaGemenT COmmiTTee

Key Objective
Direct Management on operational policies  
and activities 

Group CEO,  
CEO Group Enterprise,  
CEO Consumer Australia,  
CEO Consumer Singapore,  
Group Chief Corporate Officer,  
Group CFO,  
Group Chief Human  
Resources Officer, and  
Group Chief Information Officer 

annual rePort 2016

54

inTrOduCTiOn
Singtel aspires to the highest standards of corporate 
governance as we believe that good governance supports 
long-term value creation. To this end, Singtel has in  
place a set of well-defined policies and processes to 
enhance corporate performance and accountability,  
as well as protect the interests of stakeholders. The  
Board of Directors is responsible for Singtel’s corporate 
governance standards and policies, and stresses their 
importance across the Group. 

Prior to 5 June 2015, Singtel was listed on both the 
Singapore Exchange Securities Trading Limited (SGX)  
and ASX Limited (ASX), and complied in all material 

respects with the principles, guidelines and 
recommendations in the Singapore Code of Corporate 
Governance 2012 (Code) and the ASX Corporate 
Governance Principles and Recommendations. On  
22 April 2015, Singtel announced its delisting from the 
ASX, which took effect on 5 June 2015. Singtel continues 
to be listed on the SGX and its delisting from the ASX  
has not materially affected Singtel’s compliance 
obligations or corporate governance policies and 
practices. For the financial year ended 31 March 2016, 
Singtel has complied in all material respects with the 
principles and guidelines in the Code. This report sets 
out Singtel’s key corporate governance practices with 
reference to the Code.

recognition of Singtel’s commitment to best practices in corporate governance

aSean Corporate 
Governance Scorecard

Governance and 
Transparency index

ranked

#1

top

5

for Singapore 
(2015 and 
 2014)

aSean 
 companies  
(2015)

ranked

#1

(2015)

SiaS investors’  
Choice awards
Board 
diversity 
award
(2015)

direCTOrS’ aTTendanCe aT BOard/General meeTinGS durinG  
The FinanCial year ended 31 marCh 2016 (1) 

name of director

Simon Israel
Chua Sock Koong
Bobby Chin
Venkataraman (Venky) Ganesan
Low Check Kian
Peter Mason AM (2)
Christina Ong
Peter Ong
Teo Swee Lian (3) 
Fang Ai Lian (4)
Kai Nargolwala (4)

Scheduled Board meetings

ad hoc Board meetings

number of 
meetings held

number  
of meetings 
attended

number of 
meetings held

number  
of meetings 
attended

annual General 
meeting

8
8
8
8
8
8
8
8
7
3
3

8
8
8
8
8
8
8
7
7
3
3

1
1
1
1
1
1
1
1
1
–
–

1
1
1
1
–
1
–
1
1
–
–

3
3
3
3
3
3
3
3
3
3
3

notes:
(1)   Refers to meetings held/attended while each Director was in office.
(2)   Member of the Order of Australia.
(3)   Ms Teo Swee Lian was appointed to the Board on 13 April 2015.
(4)   Mrs Fang Ai Lian and Mr Kai Nargolwala retired from the Board following the conclusion of the AGM on 21 July 2015.

55

SinGaPore telecommunicationS limited 

corporate Governance

BOard maTTerS
The Board’s Conduct of affairs
The Board aims to create value for shareholders and 
ensure the long-term success of the Group by focusing 
on the development of the right strategy, business 
model, risk appetite, management, succession plan 
and compensation framework. It also seeks to align 
the interests of the Board and Management with 
that of shareholders and balance the interests of all 
stakeholders. In addition, the Board sets the tone for 
the entire organisation where ethics and values are 
concerned.

The Board oversees the business affairs of the Singtel 
Group. It assumes responsibility for the Group’s overall 
strategic plans and performance objectives, financial 
plans and annual budget, key operational initiatives, 
major funding and investment proposals, financial 
performance reviews, compliance and accountability 
systems, and corporate governance practices. The Board 
also appoints the Group CEO, approves policies and 
guidelines on remuneration as well as the remuneration 
for the Board and Senior Management, and approves  
the appointment of Directors. In line with best practices 
in corporate governance, the Board also oversees the 
long-term succession planning for Senior Management. 

Singtel has established financial authorisation and 
approval limits for operating and capital expenditure, the 
procurement of goods and services, and the acquisition 
and disposal of investments. The Board approves 
transactions exceeding certain threshold limits, while 
delegating authority for transactions below those limits  
to the Board Committees and the Management 
Committee to optimise operational efficiency.

material items that require Board approval 
include:
•	 The	Group’s	strategic	plans
•	 The	Group’s	annual	operating	plan	and	budget
•	 Full-year,	half-year	and	quarterly	financial	results
•	 Dividend	policy	and	payout
•	 Issue	of	shares
•	 Board	succession	plans
•	 Succession	plans	for	Senior	Management,	 

including appointment of, and compensation for,    
  Group CEO, CEOs, Group Chief Corporate Officer,  
  Group CFO 
•	 Underlying	principles	of	long-term	incentive	 
  schemes for employees
•	 The	Group’s	risk	appetite	and	risk	tolerance	for	 
  different categories of risk, as well as risk strategy  
  and the policies for management of material risks 
•	 Acquisitions	and	disposals	of	investments	 
  exceeding certain material limits 
•	 Capital	expenditures	exceeding	certain	material	 

limits

Board meetings
The Board and Board Committees meet regularly to 
discuss strategy, operational matters and governance 
issues. All Board and Board Committee meetings are 
scheduled well in advance of each year in consultation 
with the Directors. At every scheduled meeting, the 
Board sets aside time for discussion without the presence 
of Management (except the executive Director). The 
non-executive Directors meet separately at least once 
a year without any executives present. The Board holds 
approximately eight scheduled meetings each year, and 
may also hold ad hoc meetings as and when warranted by 
particular circumstances. Nine Board meetings were held 
in the financial year ended 31 March 2016. Attendance 
at Board or Board Committee meetings via telephone or 
video conference is permitted by Singtel’s Constitution.

Typically, at least one Board meeting a year is held 
overseas, in a country where the Group has a significant 
investment or has an interest in investing, or where Board 
members can be exposed to new technology relevant 
to the Group’s growth strategy. On such occasions, 
the Board may meet with local business leaders and 
government officials so as to help Board members gain 
greater insight into such countries. The Board also meets 
Singtel’s partners and key customers in those countries 
to develop stronger relationships with such partners and 
customers. Singtel also arranges for the Board to meet 
with experts in the technology/digital space to enhance 
their knowledge in new growth areas and enable the 
Board to make more informed decisions. In 2015, the 
Board met with the board and management of Singtel’s 
associate, Globe Telecom, Inc. in Manila, and also went 
to Israel to meet with business associates there, as well as 
to visit new technology companies and explore emerging 
technologies relevant to the Group’s business. Board 
meetings may include presentations by senior executives 
and external consultants/experts on strategic issues 
relating to specific business areas, as well as presentations 
by the Group’s associates. This allows the Board to 
develop a good understanding of the Group’s businesses 
and to promote active engagement with the Group’s 
partners and key executives. 

Under	the	Board’s	Code	of	Conduct	and	Ethics,	Directors	
must avoid situations in which their own personal or 
business interests directly or indirectly conflict, or appear 
to conflict, with the interests of Singtel. The Code of 
Conduct and Ethics provides that where a Director 
has a conflict of interest, or it appears that he might 
have a conflict of interest, in relation to any matter, he 
should immediately declare his interest at a meeting of 
the Directors or send a written notice to the Company 
containing details of his interest and the conflict, and 
recuse himself from participating in any discussion and 
decision on the matter.  

A record of the Directors’ attendance at Board meetings 
during the financial year ended 31 March 2016 is set out 
on page 54. Directors who are unable to attend a Board 
meeting are provided with the briefing materials and can 

 
 
 
annual rePort 2016

56

discuss issues relating to the matters to be discussed at 
the Board meeting with the Chairman or the Group CEO.

Director development/training
The Board values ongoing professional development and 
recognises that it is important that all Directors receive 
regular training so as to be able to serve effectively on,  
and contribute to, the Board. The Board has therefore 
adopted a policy on continuous professional development 
for Directors.

All new Directors appointed to the Board are briefed 
by the Chairman, as well as the chairmen of the Board 
Committees on which they will serve, on issues relating  
to the Board and Board Committees. They are also briefed 
by senior management on the Group’s business activities, 
strategic direction and policies, key business risks, the 
regulatory environment in which the Group operates and 
governance practices, as well as their statutory and other 
duties and responsibilities as Directors. 

Upon	appointment	to	the	Board,	each	Director	receives	
a Directors’ Manual, which sets out the Director’s duties 
and responsibilities and the Board governance policies 
and practices. The Directors’ Manual is maintained by 
the Company Secretary. In line with best practices in 
corporate governance and the Code, new Directors also 
sign a letter of appointment from the Company stating 
clearly the role of the Board and non-executive Directors, 
the time commitment that the Director would be 
expected to allocate, and other relevant matters. 

To ensure Directors can fulfil their obligations and to 
continually improve the performance of the Board, all 
Directors are encouraged to undergo continual professional 
development during the term of their appointment. 
Professional development may relate to a particular subject 
area, committee membership, or key developments in 
Singtel’s environment, market or operations. Directors are 
encouraged to consult the Chairman if they consider that 

Board Composition, diversity and Balance

they personally, or the Board as a whole, would benefit 
from specific education or training regarding matters that 
fall within the responsibility of the Board or relate to the 
business of Singtel.

During the financial year ended 31 March 2016,  
the development/training programmes for Directors  
included the following:

•	 The	Directors	participated	in	an	annual	offsite	

workshop with Senior Management to formulate 
and plan the Group’s longer-term strategy, during 
which the Directors were briefed on developments 
in the markets in which the Group operates and were 
introduced to new technologies and advancements 
relevant to the Group.

•	 The	Board	met	with	the	board	and	management	 

of Singtel’s associate, Globe Telecom, Inc. in Manila 
during which the Board was updated on Globe’s 
business and its operating environment. The Board  
also had the opportunity to meet with business  
leaders there.

•	 Members	of	the	Board	went	to	Israel	to	meet	with	
business associates there, as well as to visit new 
technology companies and explore emerging 
technologies relevant to the Group’s business.

•	 The	Board	was	briefed	on	regulatory	changes,	such	

as changes to the Companies Act and the SGX Listing 
Manual.

•	 Members	of	the	Board	attended	forums	and	dialogues	
with experts and senior business leaders on issues 
facing boards and board practice. 

•	 Briefings	were	provided	by	the	Group’s	external	auditor	
to Audit Committee members on new accounting 
standards. Audit Committee members also attended 
relevant seminars such as those organised by the 
Singapore Institute of Directors to keep abreast of 
developments relevant to the Audit Committee’s role.

11%

22%

67%

33%

67%

independence

Independent, non-executive directors

Non-independent, non-executive directors

Executive director/Group CEO

Gender diversity

Male directors

Female directors

57

SinGaPore telecommunicationS limited 

corporate Governance

The size and composition of the Board are reviewed 
from time to time by the Corporate Governance and 
Nominations Committee (CGNC). The CGNC seeks to 
ensure that the size of the Board is conducive to effective 
discussion and decision making, and that the Board has  
an appropriate number of independent Directors. The 
CGNC also aims to maintain a diversity of expertise, skills 
and attributes among the Directors. Any potential conflicts 
of interest are taken into consideration. 

In order to ensure that Singtel continues to be able to 
meet the challenges and demands of the markets in which 
Singtel operates, the Board is focused on enhancing the 
diversity of skills, expertise and perspectives on the Board 
in a structured way by proactively mapping out Singtel’s 
Board composition needs over the short and medium 
term (Board Progression Planning). This is an ongoing 
process facilitated by an independent consultant and is 
informed by a series of detailed interviews between the 
consultant and each member of the Board as well as key 
management members. 

Board diversity
Singtel is committed to building a diverse, inclusive and 
collaborative culture. Singtel recognises and embraces 
the benefits of diversity on the Board, and views diversity 
at the Board level as an essential element in supporting 
the attainment of its strategic objectives and its 
sustainable development. 

The Board’s Diversity Policy provides that, in reviewing 
Board composition and succession planning, the CGNC 
will consider the benefits of all aspects of diversity, 
including diversity of skills, experience, background, 
gender, age, ethnicity and other relevant factors. These 
differences will be considered in determining the optimum 
composition of the Board and when possible should be 
balanced appropriately.  All Board appointments are made 
based on merit, in the context of the skills, experience, 
independence and knowledge which the Board as a whole 
requires to be effective. Diversity is a key criterion in the 
instructions to external search consultants.

The Board is of the view that gender is an important aspect 
of diversity and will strive to ensure that (a) any brief to 
external search consultants to search for candidates for 
appointment to the Board will include a requirement 
to present female candidates, (b) female candidates are 
included for consideration by the CGNC whenever it seeks 
to identify a new Director for appointment to the Board, 
(c) the Board appoints at least one female Director to the 
CGNC, and (d) there is significant and appropriate female 
representation on the Board, recognising that the Board’s 
needs will change over time taking into account the skills 
and experience of the Board.

Reflecting the focus of the Group’s business in the  
region, three of Singtel’s nine Directors are from, and  
have extensive experience in, jurisdictions outside 

Singapore, namely, the Chairman, Mr Simon Israel, and 
non-executive Directors, Messrs Venky Ganesan and Peter 
Mason AM. In relation to gender diversity, approximately 
33% of the Singtel Board, or three out of the nine Board 
members, are female. Other than the Group CEO, none 
of the Directors is a former or current employee of the 
Company or its subsidiaries.

Independence
The Board, taking into account the views of the CGNC, 
assesses the independence of each Director annually 
in accordance with the guidance in the Singapore 
Code. A Director is considered independent if he has 
no relationship with the Group or its officers that could 
interfere, or be reasonably perceived to interfere, with the 
exercise of his independent business judgement in the 
best interests of Singtel. 

The Board takes into account the existence of 
relationships or circumstances, including those 
identified by the Singapore Code, that are relevant in its 
determination as to whether a Director is independent. 
Such relationships or circumstances include the 
employment of a Director by the Company or any of its 
related corporations during the financial year in question 
or in any of the previous three financial years; the 
acceptance by a Director of any significant compensation 
from the Company or any of its related corporations 
for the provision of services during the financial year 
in question or the previous financial year, other than 
compensation for board service; and a Director being 
related to any organisation from which Singtel or any of 
its subsidiaries received significant payments or material 
services during the financial year in question or the 
previous financial year. 

Ms Chua Sock Koong, Singtel’s Group CEO, Mr Simon Israel, 
Chairman of the Singtel Board, and Mr Peter Ong are the 
only non-independent Directors. All other members of the 
Board are considered to be independent Directors.

The Board noted that while Mrs Christina Ong is a partner 
at Allen & Gledhill LLP (A&G) and A&G provides legal 
services to, and receives fees from, the Singtel Group, she 
has an interest of less than 10% in A&G. Mrs Ong is also a 
non-executive independent director of SIA Engineering 
Company Limited (SIAEC), a subsidiary of Temasek 
Holdings (Private) Limited (Temasek). Temasek has an 
interest of approximately 51% in Singtel. The SIAEC group 
obtains telecommunication and telecommunication-
related services from, and makes payments to, the Singtel 
Group in the ordinary course of business. Mrs Ong is also 
a member of the Singapore Tourism Board (STB) and a 
non-executive independent director of Oversea-Chinese 
Banking Corporation (OCBC). STB and the OCBC group 
obtain telecommunication and telecommunication-
related services from, and make payments to, the Singtel 
Group. The Board is of the view that these relationships do 
not affect Mrs Christina Ong’s ability and willingness  
to operate independently.

 
annual rePort 2016

58

The Board noted that Mr Bobby Chin was appointed 
to the Board of Temasek on 10 June 2014. After due 
consideration, the Board continues to regard Mr Chin 
as independent as he does not represent Temasek on 
the Singtel Board and he is not accustomed or under 
an obligation whether formal or informal, to act in 
accordance with the directions, instructions or wishes of 
Temasek. As Mr Chin has demonstrated independence 
in character and judgement in the discharge of his 
responsibilities, the Board is satisfied that he will continue 
to exercise independent judgement and act in the best 
interests of Singtel and its security holders generally. 

The Board also noted that Mr Chin is the deputy chairman 
of the Housing and Development Board (HDB) and the 
chairman	of	NTUC	Fairprice	Co-operative	Limited	(NTUC).	
HDB	and	NTUC	obtain	services	from,	and	make	payments	
to, the Singtel Group in the ordinary course of business. 
The Singtel Group also obtains services from, and makes 
payments	to,	NTUC	in	the	ordinary	course	of	business.	The	
Board is of the view that these relationships do not affect 
Mr Chin’s ability and willingness to operate independently.

The Board noted that Mr Venky Ganesan is a director of 
BitSight Technologies, Inc. Singtel’s subsidiary, Singtel 
Innov8 Pte Ltd, acquired an interest of less than 0.5% in 
BitSight	Technologies,	Inc.	for	USD0.5	million	in	October	
2015. The Board is of the view that this relationship does 
not affect Mr Ganesan’s ability and willingness to operate 
independently.

The profile of each Director and other relevant information  
are set out under “Board of Directors” from pages 13 to 17.

The Chairman and the Group CeO
The Chairman of the Board is a non-executive 
appointment and is separate from the office of the Group 
CEO. The Chairman leads the Board and is responsible for 
ensuring the effectiveness of the Board and its governance 
processes, while the Group CEO is responsible for 
implementing the Group’s strategies and policies, and for 
conducting the Group’s business. The Chairman and the 
Group CEO are not related.

role of the Chairman
The Chairman is responsible for leadership of the Board 
and is pivotal in creating the conditions for overall Board, 
Board Committee and individual Director effectiveness, 
both inside and outside the boardroom. This includes 
setting the agenda of the Board in consultation with 
the Directors and the Group CEO, and promoting active 
engagement and an open dialogue among the Directors, 
as well as between the Board and the Group CEO. 

The Chairman ensures that the performance of the  
Board is evaluated regularly, and guides the development 
needs of the Board. The Chairman leads the evaluation  
of the Group CEO’s performance and works with the 
Group CEO in overseeing talent management to ensure 

that robust succession plans are in place for the senior 
leadership team. 

The Chairman works with the Board, the relevant 
Board Committees and Management to establish the 
boundaries of risk undertaken by the Group and ensure 
that governance systems and processes are in place and 
regularly evaluated.

The Chairman plays a significant leadership role by 
providing clear oversight, advice and guidance to  
the Group CEO and Management on strategy and the 
drive to transform Singtel’s businesses. This involves 
developing a keen understanding of the Group’s diverse 
and complex businesses, the industry, partners, regulators 
and competitors. 

The Chairman provides support and advice to, and acts 
as a sounding board for, the Group CEO, while respecting 
executive responsibility. He engages with other members 
of the senior leadership regularly.

The Chairman also maintains effective communications 
with large shareholders and supports the Group CEO in 
engaging with a wide range of other stakeholders such as 
partners, governments and regulators where the Group 
operates. He travels overseas to visit the Group’s key 
associates in the region and, in the process, fosters strong 
relationships with the Group’s partners and gathers valuable 
feedback for Management to consider and follow up on.

The scope and extent of the Chairman’s and the Board’s 
responsibilities and obligations have been expanding 
due to the increased focus on corporate governance, 
risk management, regulation and compliance. Given the 
increased demands, the Chairman in particular spends 
more time on, and is more hands-on in, the affairs of the 
Group. The Board has agreed with the Chairman that he 
will commit a significant proportion of his time to his role 
and will manage his other time commitments accordingly.

role of the lead independent director
The Lead Independent Director is appointed by the Board 
to serve in a lead capacity to coordinate the activities of 
the non-executive Directors in circumstances where it 
would be inappropriate for the Chairman to serve in such 
capacity. He also assists the Chairman and the Board to 
assure effective corporate governance in managing the 
affairs of the Board and the Company.

The Lead Independent Director serves as chairman of 
the CGNC. The role of the Lead Independent Director 
includes meeting with the non-executive Directors 
without the Chairman present at least annually to appraise 
the Chairman’s performance and on such other occasions 
as are deemed appropriate. He will also be available to 
shareholders if they have concerns relating to matters  
that contact through the Chairman, Group CEO or  
Group CFO has failed to resolve, or where such contact  
is inappropriate.

59

SinGaPore telecommunicationS limited 

corporate Governance

Board membership
The CGNC establishes and reviews the profile required 
of Board members and makes recommendations to the 
Board on the appointment, re-nomination and retirement 
of Directors. 

When an existing Director chooses to retire or is required 
to retire from office by rotation, or the need for a new 
Director arises, the CGNC reviews the range of expertise, 
skills and attributes of the Board and the composition of 
the Board. The CGNC then identifies Singtel’s needs and 
prepares a shortlist of candidates with the appropriate 
profile for nomination or re-nomination. The Board has an 
ongoing process facilitated by an independent consultant 
to map out these needs and to search for candidates to 
join the Board. 

The CGNC takes factors such as attendance, preparedness, 
participation and candour into consideration when 
evaluating the past performance and contributions of a 
Director when making its recommendations to the Board. 
However, the re-nomination or replacement of a Director 
does not necessarily reflect the Director’s performance 
or contributions to the Board. The CGNC may have to 
consider the need to position and shape the Board in line 
with the evolving needs of Singtel and the business. 

When deciding on the appointment of new Directors to 
the Board, the CGNC and the Board consider a variety 
of factors, including the core competencies, skills and 
experience that are required on the Board and Board 
Committees, diversity, independence, conflicts of interest 
and time commitments.

In order to ensure Board renewal, the Board has in place 
guidelines on the tenure of the Chairman and Directors. 
The guidelines provide that Directors are appointed for an 
initial term of three years, and this may be extended to a 
second three-year term. As a general rule, a Director shall 
step down from the Board no later than at the AGM to be 
held in his sixth year of service. Where a Director is not 
appointed at an AGM, the Director’s term will be deemed 
to have commenced on the date of the AGM immediately 
following the date on which the Director was appointed. 
The Committee may, in appropriate circumstances, 
recommend to the Board that a Director’s term be 
extended beyond the second three-year term, for a period 
of up to three years. For Chairman, the same principles 
apply except that the term is determined from the point  
he became Chairman. 

Directors must ensure that they are able to give sufficient 
time and attention to the affairs of Singtel and, as part 
of its review process, the CGNC decides whether or 
not a Director is able to do so and whether he has been 
adequately carrying out his duties as a Director of Singtel. 
The Board has also adopted an internal guideline that 
seeks to address the competing time commitments 
that may be faced when a Director holds multiple 
board appointments. The guideline provides that, as a 
general rule, each Director should hold no more than 

five directorships in public listed companies. However, 
the Board recognises that the individual circumstances 
and capacity of each Director are different and there 
may be circumstances in which a different limit on board 
appointments is appropriate. The guideline includes  
the following: 

•	

In	support	of	their	candidature	for	directorship	or	
re-election, Directors are to provide the CGNC with 
details of other commitments and an indication of the 
time involved. 

•	 Non-executive	Directors	should	consult	the	Chairman	
or chairman of the CGNC before accepting any new 
appointments as Directors.

The Company’s Constitution provides that a Director must 
retire from office at the third Annual General Meeting 
(AGM) after the Director was elected or last re-elected. 
A retiring Director is eligible for re-election by Singtel 
shareholders at the AGM. In addition, a Director appointed 
by the Board to fill a casual vacancy or appointed as an 
additional Director may only hold office until the next 
AGM, at which time he will be eligible for re-election by 
shareholders. If at any AGM, fewer than three Directors 
would retire pursuant to the requirements set out above, 
the additional Directors to retire at that AGM shall be  
those who have been longest in office since their last  
re-election or appointment. The Group CEO, as a Director, 
is subject to the same retirement by rotation, resignation 
and removal provisions as the other Directors, and such 
provisions will not be subject to any contractual terms 
that may have been entered into with the Company. 
Shareholders are provided with relevant information  
in the Annual Report on the candidates for election or  
re-election.

Board Performance
Each year, the CGNC undertakes a process to assess the 
effectiveness of the Board and Board Committees. During 
the financial year ended 31 March 2016, as in previous 
years, an independent external consultant was appointed 
to facilitate this process. The 2016 Board effectiveness 
survey was designed to provide an evaluation of current 
effectiveness of the Board and to support the Chairman 
and Board to proactively consider what can enhance 
the readiness of the Board to address emerging strategic 
priorities for the Singtel Group. The Directors and Senior 
Management were requested to complete an evaluation 
questionnaire focused on four key areas, namely  
(1) how the Board plays an effective role and adds value 
on critical issues, (2) how the Board operates to deliver 
impact and value, (3) Board chair effectiveness and  
(4) committee evaluation. In particular, the survey looked 
at the Board’s performance in shaping and adapting 
strategy, risk and crisis management, overseeing the 
Group’s performance, CEO performance and succession 
management, corporate social responsibility and 
stakeholder communications, as well as areas such as 
strategic alignment and prioritisation, Board composition 
and structure, Board dynamics and culture, the Board’s 
partnership with management, efficiency of core 

annual rePort 2016

60

Board processes, Board chair effectiveness, and Board 
Committee and committee chair effectiveness.

•	 Audit	Committee	(AC)
•		 Corporate	Governance	and	Nominations	Committee	

In addition to the appraisal exercise, the contributions and 
performance of each Director were assessed by the CGNC 
as part of its periodic reviews of the composition of the 
Board and the various Board Committees. In the process, 
the CGNC was able to identify areas for improving the 
effectiveness of the Board and Board Committees. The 
Board was also able to assess the Board Committees 
through their regular reports to the Board on their 
activities.

access to information
Prior to each Board meeting, Singtel’s Management 
provides the Board with information relevant to 
matters on the agenda for the meeting. In general, 
such information is provided a week in advance of the 
Board meeting. The Board also receives regular reports 
pertaining to the operational and financial performance 
of the Group, as well as regular updates, which include 
information on the Group’s competitors, and industry and 
technological developments. In addition, Directors receive 
analysts’ reports on Singtel and other telecommunications 
and digital companies on a quarterly basis. Such reports 
enable the Directors to keep abreast of key issues and 
developments in the industry, as well as challenges 
and opportunities for the Group. In line with Singtel’s 
commitment to conservation of the environment, as 
well as technology advancement, Singtel has done away 
with hard copy Board papers, and Directors are instead 
provided with tablet devices to enable them to access  
and read Board and Board Committee papers prior to  
and at meetings.

The Board has separate and independent access to the 
Senior Management and the Company Secretary at all 
times. Procedures are in place for Directors and Board 
Committees, where necessary, to seek independent 
professional advice, paid for by Singtel.

role of the Company Secretary
The Company Secretary attends all Board meetings 
and is accountable directly to the Board, through the 
Chairman, on all matters to do with the proper functioning 
of the Board, including compliance with the Company’s 
Constitution, the Companies Act, the Securities and 
Futures Act and the SGX Listing Manual. She assists the 
Board in implementing and strengthening corporate 
governance policies and processes. The Company 
Secretary is the primary point of contact between the 
Company and the SGX. The Company Secretary is legally 
trained, with experience in legal matters and company 
secretarial practices. The appointment and removal of  
the Company Secretary is subject to the approval of  
the Board.

Board and management Committees
The following Board Committees assist the Board in 
executing its duties:

(CGNC)

•		 Executive	Resource	and	Compensation	Committee	

(ERCC)

•		 Finance	and	Investment	Committee	(FIC)

•		 Risk	Committee	(RC)

Each Board Committee may make decisions on matters 
within its terms of reference and applicable limits of 
authority. The terms of reference of each committee 
are reviewed from time to time, as are the committee 
structure and membership.

The selection of Board Committee members requires 
careful management to ensure that each committee 
comprises Directors with appropriate qualifications 
and skills, and that there is an equitable distribution of 
responsibilities among Board members. The need to 
maximise the effectiveness of the Board, and encourage 
active participation and contribution from Board 
members, is also taken into consideration.

A record of each Director’s Board Committee 
memberships and attendance at Board Committee 
meetings during the financial year ended 31 March 2016  
is set out on page 64.

audit Committee 

memBerShiP
Bobby Chin, committee chairman and  
independent non-executive Director
Christina Ong, independent non-executive Director 
Peter Ong, non-executive Director
Teo Swee lian, independent non-executive Director 
(appointed to the AC with effect from 13 April 2015)

note: Fang Ai Lian retired as a Director and AC chairman following 
the conclusion of the AGM on 21 July 2015.

Key OBJeCTiVe
•	 Assist	the	Board	in	discharging	its	statutory	and	

other responsibilities relating to internal controls, 
financial and accounting matters, compliance, 
and business and financial risk management

The terms of reference of the AC provide that the AC  
shall comprise at least three Directors, all of whom are 
non-executive Directors and the majority of whom, 
including the chairman, are independent Directors. At 
least two members of the AC, including the AC chairman,  
must have recent and relevant accounting or related 
financial management expertise or experience. The 
chairman of the AC is a Director other than the Chairman 
of the Singtel Board.

61

SinGaPore telecommunicationS limited 

corporate Governance

The AC has explicit authority to investigate any matter 
within its terms of reference, and has the full cooperation 
of and access to Management. It has direct access to the 
internal and external auditors, and full discretion to invite 
any Director or executive officer to attend its meetings. It 
also has the authority to review its terms of reference and 
its own effectiveness annually and recommend necessary 
changes to the Board.

The main responsibilities of the AC are to assist the  
Board in discharging its statutory and other responsibilities 
relating to internal controls, financial and accounting 
matters, compliance, and business and financial risk 
management.

The AC reports to the Board on the results of the audits 
undertaken by the internal and external auditors, the 
adequacy of disclosure of information, and the adequacy 
and effectiveness of the system of risk management and 
internal controls. It reviews the quarterly and annual 
financial statements with Management and the external 
auditors, reviews and approves the annual audit plans for 
the internal and external auditors, and reviews the internal 
and external auditors’ evaluation of the Group’s system of 
internal controls.

The AC is responsible for evaluating the cost effectiveness 
of audits, the independence and objectivity of the 
external auditors, and the nature and extent of the 
non-audit services provided by the external auditors to 
ensure that the independence of the external auditors 
is not compromised. It also makes recommendations 
to the Board on the appointment or re-appointment of 
the external auditors. In addition, the AC reviews and 
approves the Singtel Internal Audit Charter to ensure 
the independence and effectiveness of the internal 
audit function. At the same time, it ensures that the 
internal audit function is adequately resourced and has 
appropriate standing within Singtel. The AC also reviews 
the performance of Internal Audit, including approving 
decisions relating to appointment or removal of Group 
Chief Internal Auditor and approving the performance  
and compensation of the Group Chief Internal Auditor.  
A copy of the charter of the AC is available on the 
corporate governance page on the company’s website at  
http://info.singtel.com/about-us/corporate-governance.

During the financial year, the AC reviewed the 
Management’s and Singtel Internal Audit’s assessment 
of fraud risk and held discussions with the external 
auditors to obtain reasonable assurance that adequate 
measures were put in place to mitigate fraud risk exposure 
in the Group. The AC also reviewed the adequacy of 
the whistle-blower arrangements instituted by the 
Group through which staff and external parties may, in 
confidence, raise concerns about possible improprieties 
in matters of financial reporting or other matters. All 
whistle-blower complaints were reviewed by the AC at its 

quarterly meetings to ensure independent and thorough 
investigation and adequate follow-up.

The AC met four times during the financial year.  
At these meetings, the Group CEO, Group Chief Corporate 
Officer, Group CFO, Vice President (Group Finance), 
Group Chief Internal Auditor and the respective CEOs 
of the businesses were also in attendance. During the 
financial year, the AC reviewed and endorsed the Group’s 
quarterly and full-year financial statements to the Board 
for approval and release. It reviewed the results of audits 
performed by Internal Audit based on the approved audit 
plan, significant litigation and fraud investigations, register 
of interested person transactions and non-audit services 
rendered by the external auditors. The AC also met with 
the internal and external auditors, without the presence of 
Management, during the financial year.

The external auditors provided regular updates and 
periodic briefings to the AC on changes or amendments  
to accounting standards to enable the members of the  
AC to keep abreast of such changes and its corresponding 
impact on the financial statements, if any.

Corporate Governance  
and nominations Committee 

memBerShiP
low Check Kian, committee chairman and  
independent non-executive Director
Simon israel, non-executive Chairman of the  
Singtel Board
Christina Ong, independent non-executive Director 

note: Kai Nargolwala retired as a Director and CGNC chairman 
following the conclusion of the AGM on 21 July 2015. 

Key OBJeCTiVeS
•	 Establish	and	review	the	profile	of	Board	members
•	 Make	recommendations	to	the	Board	on	the	

appointment, re-nomination and retirement of 
Directors

•	 Review	the	independence	of	Directors
•	 Assist	the	Board	in	evaluating	the	performance	of	

the Board, Board Committees and Directors
•	 Develop	and	review	the	Company’s	corporate	
governance practices, taking into account 
relevant local and international developments in 
the area of corporate governance

 
annual rePort 2016

62

The terms of reference of the CGNC provide that the 
CGNC shall comprise at least three Directors, the majority 
of whom, including the chairman, shall be independent.  
As part of its commitment to gender diversity, the Board 
will strive to appoint at least one female Director to  
the CGNC.

The main responsibilities of the ERCC, as delegated by 
the Board, are to oversee the remuneration of the Board 
and Senior Management. It sets appropriate remuneration 
framework and policies, including long-term incentive 
schemes, to deliver annual and long-term performance of 
the Group.

The main activities of the CGNC are outlined in the 
commentaries on “Board Composition, Diversity and 
Balance”, “Board Membership” and “Board Performance” 
from pages 56 to 60.

The CGNC met three times during the financial year ended 
31 March 2016, and also approved various matters by 
written resolution.

executive resource and 
Compensation Committee 

memBerShiP
Peter mason am, committee chairman and  
independent non-executive Director
Simon israel, non-executive Chairman of the  
Singtel Board
Teo Swee lian, independent non-executive  
Director (appointed to the ERCC with effect from  
13 April 2015)

notes: 
Kai Nargolwala retired as a Director and ERCC Chairman following 
the conclusion of the AGM on 21 July 2015. 
Fang Ai Lian retired as a Director and ERCC member following the 
conclusion of the AGM on 21 July 2015.

Key OBJeCTiVeS
•	 Oversee	the	remuneration	of	the	Board	and	Senior	

Management

•	 Set	appropriate	remuneration	framework	and	

policies, including long-term incentive schemes,  
to deliver annual and long-term performance of 
the Group

The ERCC plays an important role in helping to ensure 
that the Group is able to attract, recruit, motivate and 
retain the best talents through competitive remuneration 
and progressive and robust policies so as to achieve the 
Group’s goals and deliver sustainable shareholder value.

The terms of reference of the ERCC provide that the  
ERCC shall comprise at least three Directors, all of whom 
shall be non-executive and the majority of whom shall  
be independent. The ERCC is chaired by an independent  
non-executive Director. 

The ERCC has been tasked by the Board to approve or 
recommend to the Board the appointment, promotion 
and remuneration of Senior Management. The ERCC 
also recommends the Directors’ compensation for the 
Board’s endorsement. Directors’ compensation is subject 
to the approval of shareholders at the AGM. The ERCC’s 
recommendations cover all aspects of remuneration for 
Directors and Senior Management, including but not 
limited to Director’s fees, salaries, allowances, bonuses, 
options, share-based incentives, management awards,  
and benefits-in-kind.

The ERCC seeks expert advice and views on remuneration 
and governance matters from both within and outside 
the Group as appropriate. The ERCC draws on a pool of 
independent consultants for diversified views and specific 
expertise. The ERCC will ensure that existing relationships, 
if any, between the Group and its appointed remuneration 
consultants will not affect the independence and 
objectivity of the remuneration consultants.

The ERCC approves or recommends termination 
payments, retirement payments, gratuities, ex-gratia 
payments, severance payments and other similar 
payments to Senior Management. The ERCC ensures  
that contracts of service for Senior Management contain 
fair and reasonable termination clauses that are not  
overly generous. 

The ERCC also ensures that appropriate recruitment, 
development and succession planning programmes are  
in place for key executive roles, with the objective of 
building strong and sound leadership bench strength 
for long-term sustainability of the business. The ERCC 
conducts, on an annual basis, a succession planning 
review of Senior Management.

The Group CEO, who is not a member of the ERCC, 
may attend meetings of the ERCC but does not 
attend discussions relating to her own performance 
and remuneration. Singtel’s remuneration policy and 
remuneration for Directors and Senior Management  
are discussed in this report from pages 68 to 74.

The ERCC met six times during the financial year ended  
31 March 2016.

 
63

SinGaPore telecommunicationS limited 

corporate Governance

Finance and investment 
Committee

memBerShiP
Simon israel, committee chairman and  
non-executive Chairman of the Singtel Board
Venky Ganesan, independent non-executive Director
low Check Kian, independent non-executive Director

note: Kai Nargolwala retired as a Director and FIC member following 
the conclusion of the AGM on 21 July 2015.

Key OBJeCTiVeS
•	 Provide	advisory	support	on	the	development	 
of the Singtel Group’s overall strategy and  
on strategic issues for the Singapore and 
international businesses 

•	 Consider	and	approve	investments	and	

divestments

•	 Review	and	approve	changes	in	the	Singtel	
Group’s investment and treasury policies

•	 Evaluate	and	approve	any	financing	offers	and	

banking facilities and manage the Singtel Group’s 
liabilities in line with the Singtel Board’s policies 
and directives

•	 Oversee	any	on-market	share	repurchases	

pursuant to Singtel’s share purchase mandate

The terms of reference of the FIC provide that the FIC  
shall comprise at least three Directors, the majority of 
whom shall be independent Directors. Membership of  
the AC and the FIC is mutually exclusive. 

The FIC met five times during the financial year ended  
31 March 2016.

management Committee

In addition to the five Board Committees and the  
two advisory bodies, Singtel has a Management 
Committee that comprises the Group CEO,  
CEO Group Enterprise, CEO Consumer Australia,  
CEO Consumer Singapore, Group Chief Corporate 
Officer (Group CCO), Group CFO, Group Chief  
Human Resources Officer (Group CHRO) and  
Group Chief Information Officer (Group CIO).

The Management Committee meets every week  
to review and direct Management on operational  
policies and activities.

risk Committee

memBerShiP
Bobby Chin, committee chairman and  
independent non-executive Director
Peter Ong, non-executive Director
Teo Swee lian, independent non-executive Director 
(appointed to the RC with effect from 13 April 2015)

Key OBJeCTiVeS
•	 Assist	the	Board	in	fulfilling	its	responsibilities	in	
relation to governance of material risks in the 
Group’s business, which include ensuring that 
Management maintains a sound system of risk 
management and internal controls to safeguard 
shareholders’ interests and the Group’s assets, and 
determining the nature and extent of the material 
risks that the Board is willing to take in achieving 
the Group’s strategic objectives

The terms of reference of the RC provide that the RC 
shall comprise at least three members, the majority of 
whom, including the chairman, shall be independent. 
Members of the RC are appointed by the Board, on the 
recommendation of the CGNC. There is at least one 
common member between the RC and the AC. 

The RC reviews the Group’s strategy, policies, framework, 
processes and procedures for the identification, 
measurement, reporting and mitigation of material risks in 
the Group’s business and reports any significant matters, 
findings and recommendations in this regard to the Board.

The RC meets at least three times a year, with additional 
meetings to be convened as deemed necessary by the 
chairman of the RC. The RC met three times during the 
financial year ended 31 March 2016.

advisory Committee/Panel
Singtel has two advisory bodies, the Optus Advisory 
Committee (OAC) and the Technology Advisory  
Panel (TAP).

The OAC comprises both Board and non-Board 
members, namely Mr Peter Mason AM (committee 
chairman), Ms Chua Sock Koong, Mr David Gonski,  
Mr Simon Israel, Mr John Morschel and Mr Paul 
O’Sullivan. The OAC reviews strategic business issues 
relating to the Australian business.

The TAP advises the Board in the area of digital 
technology. The TAP comprises distinguished 
international members and is chaired by Mr Koh Boon 
Hwee. The other members of the Panel are Messrs 
Venky Ganesan, Doug Haynes, Lim Chuan Poh, 
Jonathan Miller and Erez Ofer.

note: Mr Gregory Becker stepped down as a member of the TAP  
in March 2016.

annual rePort 2016

64

direCTOrS’ BOard COmmiTTee memBerShiPS and aTTendanCe aT BOard COmmiTTee meeTinGS 
durinG The FinanCial year ended 31 marCh 2016 (1)

audit  
Committee

Corporate  
Governance and  
nominations  
Committee

executive  
resource and  
Compensation  
Committee

Finance and  
investment  
Committee

risk  
Committee

number of  
meetings  
held

number of  
meetings  
attended

number of  
meetings  
held

number of  
meetings  
attended

number of  
meetings  
held

number of  
meetings  
attended

number of  
meetings  
held

number of  
meetings  
attended

number of  
meetings  
held

number of  
meetings  
attended

–
4
4
–
–
–
4
4
4
1
–

–
4
4
–
–
–
4
4
4
1
–

3
3
–
–
3
–
3
–
–
–
1

3
3
–
–
3
–
3
–
–
–
1

6
6
–
–
–
6
–
–
5
3
3

6
6
–
–
–
6
–
–
5
3
3

5
5
–
5
5
–
–
–
–
–
1

5
5
–
5
5
–
–
–
–
–
1

–
3
3
–
–
–
–
3
3
–
–

–
3
3
–
–
–
–
3
3
–
–

name of director

Simon Israel
Chua Sock Koong (2)
Bobby Chin
Venky Ganesan 
Low Check Kian
Peter Mason AM
Christina Ong
Peter Ong
Teo Swee Lian (3) 
Fang Ai Lian (4)
Kai Nargolwala (4)

notes:
(1)  Refers to meetings held/attended while each Director was in office. 
(2)  Ms Chua Sock Koong is not a member of the committees, although she attended meetings of those committees as appropriate. 
(3)   Ms Teo Swee Lian was appointed to the Board and as a member of the Audit Committee, the Executive Resource and Compensation Committee and the 

Risk Committee on 13 April 2015.

(4)   Mrs Fang Ai Lian and Mr Kai Nargolwala retired from the Singtel Board following the conclusion of the AGM on 21 July 2015.

aCCOunTaBiliTy and audiT 
accountability
Singtel recognises the importance of providing the 
Board with accurate and relevant information on a timely 
basis. Hence, Board members receive monthly financial 
and business reports from Management. Such reports 
compare Singtel’s actual performance against the budget, 
and highlight key business drivers/indicators and any 
major issues that are relevant to Singtel’s performance, 
position and prospects.

For the financial year ended 31 March 2016, Singtel’s 
Group CEO and Group CFO have provided a written 
confirmation to the Board on the integrity of Singtel’s 
financial statements and on the adequacy and 
effectiveness of Singtel’s risk management and internal 
control systems, addressing financial, operational and 
compliance risks including information technology risks. 
This certification covers Singtel and the subsidiaries that 
are under Singtel’s management control.

internal audit (ia)
Singtel IA comprises a team of 55 staff members, including 
the Group Chief Internal Auditor, who reports to the 
AC functionally and to the Group CEO administratively. 
Singtel IA is a member of the Singapore chapter of 
the Institute of Internal Auditors (IIA) and adopts the 
International Standards for the Professional Practice 
of Internal Auditing (the IIA Standards) laid down in the 
International Professional Practices Framework issued 
by the IIA. Singtel IA successfully completed its external 
Quality Assurance Review in 2014 and continues to meet 
or exceed the IIA Standards in all key aspects.

Singtel IA adopts a risk-based approach in formulating 
the annual audit plan that aligns its activities to the key 

strategies and risks across the Group’s business. This 
plan is reviewed and approved by the AC. The reviews 
performed by Singtel IA are aimed at assisting the Board 
in promoting sound risk management, robust internal 
controls and good corporate governance, through 
assessing the design and operating effectiveness of 
controls that govern key business processes and risks 
identified in the overall risk framework of the Group. 
Singtel IA’s reviews also focus on compliance with Singtel’s 
policies, procedures and regulatory responsibilities, 
performed in the context of financial and operational, 
revenue assurance and information systems reviews.

Singtel IA works closely with Management in its internal 
consulting and control advisory role to promote 
effective risk management, robust internal control and 
good governance practices in the development of new 
products/services, and implementation of new/enhanced 
systems and processes. Singtel IA also collaborates with 
the internal audit functions of Singtel’s regional mobile 
associates to promote joint reviews and the sharing of 
knowledge and/or best practices.

To ensure that the internal audits are performed 
effectively, Singtel IA recruits and employs suitably 
qualified professional staff with the requisite skill sets and 
experience. Singtel IA provides training and development 
opportunities for its staff to ensure their technical 
knowledge and skill sets remain current and relevant.

external auditor
The Board is responsible for the initial appointment of  
external auditor. Shareholders then approve the 
appointment at Singtel’s AGM. The external auditor  
holds office until its removal or resignation. The AC 
assesses the external auditor based on factors such as  

65

SinGaPore telecommunicationS limited 

corporate Governance

the performance and quality of its audit and the 
independence of the auditor, and recommends its 
appointment to the Board. Pursuant to the requirements 
of the SGX, an audit partner may only be in charge of a 
maximum of five consecutive annual audits and may then 
return after two years. Deloitte & Touche LLP has met 
this requirement, and the current Deloitte & Touche LLP 
audit partner for Singtel took over from the previous audit 
partner with effect from 26 July 2013. Singtel has complied 
with Rules 712 and 715 of the Listing Manual issued by SGX 
in relation to the appointment of its auditor.

In order to maintain the independence of the external 
auditor, Singtel has developed policies regarding the 
types of non-audit services that the external auditor can 
provide to the Singtel Group and the related approval 
processes. The AC has also reviewed the non-audit 
services provided by the external auditor during the 
financial year and the fees paid for such services. The AC 
is satisfied that the independence of the external auditor 
has not been impaired by the provision of those services. 
The external auditor has also provided confirmation of its 
independence to the AC.

Fees for deloitte & Touche services for the financial 
year ended 31 march 2016 

Audit services 
Non-audit services  
(including audit-related services) 

(S$ mil)

4.5

0.7

risk management and internal Controls
The Board has overall responsibility for the governance 
of risk and exercises oversight of the material risks in 
the Group’s business. During the financial year ended 
31 March 2016, the Risk Committee (RC) assisted the 
Board in the oversight of the Group’s risk profile and 
policies, adequacy and effectiveness of the Group’s risk 
management system including the framework and process 
for the identification and management of significant risks, 
and reports to the Board on material matters, findings and 
recommendations pertaining to risk management. The AC 
provides oversight of the financial reporting risk and the 
adequacy and effectiveness of the Group’s internal control 
and compliance systems. 

The Board has approved a Group Risk Framework for 
the identification of key risks within the business. This 
Framework defines 28 categories of risks ranging from 
environmental to operational and management decision-
making risks. The Group’s risk management and internal 
control framework is aligned with the ISO 31000:2009 
Risk Management framework and the Committee of 
Sponsoring Organisations of the Treadway Commission 
(COSO) Internal Controls Integrated Framework. Major 
incidents and violations, if any, are also reported to 
the Board to facilitate the Board’s oversight of the 
effectiveness of crisis management and the adequacy  
of mitigating measures taken by Management to address  
the underlying risks. 

The identification and management of risks are delegated 
to Management who assumes ownership and day-to-day 
management of these risks. Management is responsible for 
the effective implementation of risk management strategy, 
policies and processes to facilitate the achievement 
of business plans and goals within the risk tolerance 
established by the Board. Key business risks are proactively 
identified, addressed and reviewed on an on-going basis.

The Risk Management Committee, comprising relevant 
members from the Senior Management team, is 
responsible for setting the direction of corporate risk 
management and monitoring the implementation of 
risk management policies and procedures including the 
adequacy of the Group’s insurance programme. The  
Risk Management Committee reports to the RC on a 
regular basis.

The Board has established a Risk Appetite Statement and 
Risk Tolerance Framework to provide guidance to the 
Management on key risk parameters. The significant risks 
in the Group’s business, including mitigating measures, 
were also reviewed by the RC on a regular basis and 
reported to the Board. Risk registers are maintained by 
the business and operational units which identify the key 
risks facing the Group’s business and the internal controls 
in place to manage those risks. The RC had reviewed the 
Group’s risk management framework during the reporting 
period and was satisfied that it continued to be sound.

Internal and external auditors conduct audits that involve 
testing the effectiveness of the material internal control 
systems in the Group addressing financial, operational 
and compliance risks. Any material non-compliance 
or lapses in internal controls together with remedial 
measures recommended by internal and external auditors 
are reported to the AC. The AC also reviews the adequacy 
and timeliness of the actions taken by Management 
in response to the recommendations made by the 
internal and external auditors. Control self-assessments 
in key areas of the Group’s operations are conducted 
by Management on a periodic basis to evaluate the 
adequacy and effectiveness of the risk management and 
internal control systems, including quarterly and annual 
certifications by Management to the AC and the Board 
respectively on the integrity of financial reporting and 
the adequacy and effectiveness of the risk management, 
internal control and compliance systems. 

The Group has put in place a Board Escalation Process 
where major incidents and violations including major/
material operational loss events and potential breaches 
of laws and regulations by the Company and/or its key 
officers, are required to be reported by Management/
Internal Audit to the Board immediately to facilitate the 
Board’s oversight of crisis management and adequacy and 
effectiveness of follow-up actions taken by Management. 
Through this process, the Board has been kept informed 
promptly of any incidents with potential material financial, 
operational, compliance and technology risk impact.

The Board has received assurance from the Group CEO 
and Group CFO on the effectiveness of the Group’s risk 

annual rePort 2016

66

management and internal control systems, and that the 
financial records have been properly maintained and 
the financial statements give a true and fair view of the 
Group’s operations and finances. 

Based on the internal controls established and maintained 
by the Group, work performed by internal and external 
auditors, and reviews performed by Management 
and various Board Committees, the Board, with the 
concurrence of the AC, is of the opinion that the Group’s 
internal controls and risk management framework and 
systems were adequate and effective as at 31 March 2016 
to address financial, operational and compliance risks, 
including information technology risk, which the Group 
considers relevant and material to its operations.

The system of internal control and risk management 
established by Management provides reasonable, but 
not absolute, assurance that Singtel will not be adversely 
affected by any event that can be reasonably foreseen as  
it strives to achieve its business objectives. However,  
the Board also notes that no system of internal controls 
and risk management can provide absolute assurance in 
this regard, or absolute assurance against poor judgement 
in decision-making, human error, losses, fraud or other 
irregularities.

Further details of the Group’s Risk Management 
Philosophy and Approach can be found on pages  
83 to 90. 

SharehOlder riGhTS and reSPOnSiBiliTieS
Communication with Shareholders 
Singtel remains committed to delivering high standards 
of corporate disclosure and transparency through an 
open and non-discriminatory approach towards our 
communications with shareholders, the investment 
community and other key stakeholders. Singtel provides 
timely, regular and relevant information regarding the 
Group’s performance, progress and prospects to aid 
shareholders and investors in their investment decisions.

Over the year, Singtel has won recognition from leading 
business journals and investor associations for its 
strong emphasis and proactive approach to shareholder 
communication and engagement.

The Singtel Investor Relations (IR) website is a key  
resource of information for the investment community. 
It contains a wealth of investor-related information on 
Singtel, including investor presentations, webcasts of 
earnings presentations, transcripts of earnings conference 
calls, annual reports, upcoming events, shares and 
dividend information and investor factsheets.

Singtel makes timely disclosures of any new material 
information to the SGX. These filings are also posted on 
the Singtel IR website, allowing investors to keep abreast 
of strategic and operational developments.

Singtel reports financial results on a quarterly basis: 
typically within 45 days from the end of each financial 
quarter. The quarterly financial results announcements 

contain detailed financial disclosures and in-depth 
analyses of key value-drivers and metrics for the  
Group’s businesses.

Singtel also provides financial guidance for its businesses 
at the beginning of each financial year and may affirm or 
update the guidance every quarter to accurately reflect 
prevailing market conditions.

Singtel proactively engages shareholders and the 
investment community through group and one-on-
one meetings, conference calls, email communications, 
investor conferences and roadshows. This year, Singtel 
engaged over 400 investors in 230 meetings and 
conference calls in Singapore, London, New York and 
other global financial centres. These events enable us 
to share the Group’s business strategy, operational and 
financial performance and business prospects. While 
these meetings are largely undertaken by Singtel’s Senior 
Management, the Chairman and certain Board members 
also meet with investors every year.

To ensure a two-way flow of information, Singtel 
commissions an annual survey of investors’ perceptions 
to solicit feedback from the investment community 
on a range of strategic and topical issues. The survey 
provides the Singtel Board and Management with 
invaluable insights into investors’ views of the Group and 
helps Singtel identify areas for improvement in investor 
communication.

Shareholder meetings
Singtel strongly encourages and supports shareholder 
participation at general meetings. Singtel delivers the 
Notice of AGM and related information a month ahead, 
providing sufficient time for shareholders to review the 
Notice of AGM and appoint proxies to attend the AGM 
if they wish. The Notice of AGM is also advertised in The 
Straits Times for the benefit of shareholders. Singtel holds 
its general meetings at a central location in Singapore with 
convenient access to public transportation. A registered 
shareholder who is not a relevant intermediary (as defined 
in the Companies Act, Chapter 50) and who is unable to 
attend may choose to appoint up to two proxies to attend 
and	vote	on	his	behalf.	Under	Singtel’s	Constitution	and	
pursuant to the Companies Act, the Central Provident 
Fund Board and relevant intermediaries may appoint more 
than two proxies.

At each AGM, the Group CEO delivers a presentation 
to update shareholders on Singtel’s progress over the 
past year. All the Directors and Senior Management are 
in attendance to address queries and concerns about 
Singtel. Singtel’s external auditor also attend to help 
address shareholders’ queries relating to the conduct of 
the audit and the preparation and content of the auditor’s 
reports. The minutes of all general meetings are posted 
on Singtel’s website. The minutes disclose the names of 
the Directors, Senior Management and, where relevant, 
the external auditor and consultants who attended the 
meetings as well as details of the proceedings, including 
the questions raised by shareholders and the answers 
given by the Board/Management.

67

SinGaPore telecommunicationS limited 

corporate Governance

electronic poll voting at Singtel general meetings 

All resolutions at Singtel’s general meetings are 
voted on by poll so as to better reflect shareholders’ 
shareholding interests and ensure greater 
transparency. Singtel uses electronic poll voting 
devices to register the votes of shareholders who 
attend the general meetings. 

Singtel appoints an independent external party as 
scrutineer for the electronic poll voting process. 
Prior to the general meeting, the scrutineer will 
review the proxies and the electronic poll voting 
system, and attends at the proxy verification process, 
to ensure that the proxy and poll voting information 
is compiled correctly. During the general meeting, 
the scrutineer attends to ensure that the polling 
process is properly carried out.

During the general meeting, the proxy voting results 
for each resolution are disclosed to shareholders 
before voting on the resolution begins. When voting 
on a resolution has closed, the poll voting results, 
including the number and percentage of votes cast 
for and against the resolution, are immediately 
presented to shareholders. The poll voting and proxy 
voting results are promptly filed with SGX on the 
same day as the meeting.

Securities Transactions 
Singtel has in place a Securities Transactions Policy, which 
provides that Directors and Top Management members 
and persons who are in attendance at Board and Top 
Management meetings (Key Officers) should not deal in 
Singtel securities during the period commencing two 
weeks before the announcement of Singtel’s financial 
statements for each of the first three quarters of the 
financial year, and during the period commencing 
one month before the announcement of the financial 
statements for the full financial year and ending on the 
date of the announcement of the relevant results. In 
addition, employees who are involved in the preparation 
of the Group’s financial statements should not deal in 
Singtel securities during the period commencing six weeks 
before the announcement of financial results each quarter. 
The policy also provides that any of the above persons 
who is privy to any material unpublished price-sensitive 
information relating to the Singtel Group should not trade 
in Singtel securities until the information is appropriately 
disseminated to the market, regardless of whether or 
not it is during the abovementioned “closed” periods for 
trading in Singtel securities. The Company Secretary sends 
quarterly reminders of the requirements under the policy 
and the relevant laws and regulations to the Directors and 
Management.

A Director is required to notify Singtel of his interest in 
Singtel securities within two business days after (a) the 

date on which he becomes a Director or (b) the date 
on which he acquires an interest in Singtel securities. A 
Director is also required to notify Singtel of any change 
in his interests in Singtel securities within two business 
days after he becomes aware of such change. Singtel will 
file such disclosure with SGX within one business day of 
receiving notification from the Director.

The Securities Transactions Policy also discourages trading 
on short-term considerations and reminds Directors and 
officers of their obligations under insider trading laws. 
Directors and officers of the Group wishing to deal in 
Singtel securities during a closed period must secure prior 
written approval of the Chairman (in the case of Directors 
of Singtel), the Lead Independent Director (in the case of 
the Chairman) or the Group CEO (in the case of directors 
of Singtel subsidiaries and Key Officers). Requests for 
written approval must contain a full explanation of 
the exceptional circumstances and proposed dealing. 
If approval is granted, trading must be undertaken in 
accordance with the limits set out in the written approval. 
Directors are to inform the Company Secretary before 
trading in Singtel securities. The Board is kept informed 
when a Director trades in Singtel securities. A summary  
of Singtel’s Securities Transactions Policy is available in  
the Corporate Governance section of the Singtel 
corporate website.

Pursuant to recent changes to the SGX Listing Manual, 
the Singtel Group has put in place a policy relating to the 
maintenance of a list(s) of persons who are privy to price 
sensitive	information	relating	to	Singtel.	Under	the	policy,	
persons who are to be included in the privy persons list 
will be reminded not to trade in Singtel securities while in 
possession of unpublished price-sensitive information.

In relation to the shares of other companies, Directors  
are prohibited from trading in shares of Singtel’s listed 
associates when in possession of material price-sensitive 
information relating to such associates. Directors  
are also to refrain from having any direct or indirect 
financial interest in Singtel’s competitors that might or 
might appear to create a conflict of interest or affect  
the decisions Directors make on behalf of Singtel.

Continuous disclosure
There are formal policies and procedures to ensure that 
Singtel complies with its disclosure obligations under the 
listing rules of the SGX. A Market Disclosure Committee 
is responsible for Singtel’s Market Disclosure Policy. The 
policy contains guidelines and procedures for internal 
reporting and decision-making with regard to the 
disclosure of material information.

no material Contracts 
Since the end of the previous financial year ended  
31 March 2015, no material contracts involving the 
interest of the Group CEO, any Director, or the controlling 
shareholder, Temasek Holdings (Private) Limited, has been 
entered into by Singtel or any of its subsidiaries, and no 
such contract subsisted as at 31 March 2016, save as may 
be disclosed on SGXNet or herein.

annual rePort 2016

68

interested Person Transactions
As required by the SGX Listing Rules, details of interested 
person transactions (IPT) entered into by the Group are  
disclosed in this Annual Report on page 222. Singtel 
Internal Audit regularly reviews the IPT entered into by  
the Singtel Group to verify the accuracy and completeness 
of the IPT disclosure and to determine whether the IPT 
reporting requirements under the SGX listing rules have 
been adhered to. The report is submitted to the Audit 
Committee	for	review.	Under	the	SGX	listing	rules,	where	
any IPT requires shareholders’ approval, the interested 
person will abstain from voting and the decision will be 
made by disinterested shareholders.

The Board has adopted a policy that there should be no 
loans to Directors, except for loans to fund expenditure 
to defend Directors in legal or regulatory proceedings, as 
permitted under the Companies Act. As at 31 March 2016, 
there were no loans granted to Directors.

Codes of Conduct and Practice 
The Board has adopted a Code of Conduct and Ethics 
as a means to guide the Directors on the areas of ethical 
risk, and help nurture an environment where integrity and 
accountability are key. The Code of Conduct and Ethics 
sets out the Board’s principles on dealing with conflicts 
of interest, maintaining confidentiality, compliance with 
laws and regulations and fair dealing. The Board also 
has a Directors’ Manual, which sets out specific Board 
governance policies and practices and the Directors’ 
duties and responsibilities. In addition, Singtel has a 
code of internal corporate governance practices, policy 
statements and standards (Singtel Code), and makes this 
code available to Board members as well as employees 
of the Group. The processes and standards in the Singtel 
Code are intended to enhance investor confidence and 
rapport, and to ensure that decision-making is properly 
carried out in the best interests of the Group. The Code  
of Conduct and Ethics, the Directors’ Manual and the 
Singtel Code are maintained by the Company Secretary 
and are provided to Directors when they are appointed  
to the Board.

Singtel also has a strict code of conduct that applies 
to all employees. The code sets out principles to guide 
employees in carrying out their duties and responsibilities 
to the highest standards of personal and corporate 
integrity when dealing with Singtel, its competitors, 
customers, suppliers and the community. The code 
covers areas such as equal opportunity employment 
practices, workplace health and safety, conduct in the 
workplace, business conduct, protection of Singtel’s 
assets, proprietary information and intellectual property, 
data protection, confidentiality, conflict of interest, and 
non-solicitation of customers and employees. The code 
is posted on Singtel’s internal website and a summarised 
version is accessible from the Singtel corporate website. 
Policies and standards are clearly stipulated to guide 
employees in carrying out their daily tasks.

Singtel has established an escalation process so that the 
Board of Directors, Senior Management, and internal and 

external auditors are kept informed of corporate crises  
in a timely manner, according to their severity. Such 
crises may include violations of the code of conduct  
and/or applicable laws and regulations, as well as loss 
events that have or are expected to have a significant 
impact, financial or otherwise, on the Group’s business 
and operations.

Whistle-Blower Policy 
The Group is committed to a high standard of ethical 
conduct and adopts a zero tolerance approach to fraud 
and corruption. 

Singtel undertakes to investigate all complaints of 
suspected fraud and corruption in an objective manner. 
To this end, it has put in place a whistle-blower policy and 
procedures that provide employees and other external 
parties with well-defined and accessible channels within 
the Group. These include a direct channel to Singtel 
IA and whistle-blower hotline services independently 
managed by external service providers, for reporting 
suspected fraud, corruption, unethical practices or other 
similar matters which may cause financial or non-financial 
loss to the Group or damage to the Group’s reputation. 
The policy is aimed at encouraging the reporting of such 
matters in good faith, with the confidence that employees 
and other persons making such reports will be treated 
fairly and, to the extent possible, protected from reprisal. 

On an ongoing basis, the whistle-blower policy is covered 
during staff training and periodic communication to all 
staff as part of the Group’s efforts to promote strong 
ethical values and fraud and control awareness. All 
whistle-blower complaints are investigated independently 
by Singtel IA or an independent investigation committee 
as appropriate, and the outcome of each investigation is 
reported to the AC. 

remuneraTiOn
The broad principles that guide the ERCC in its 
administration of fees, benefits, remuneration and 
incentives for the Board of Directors and Senior 
Management are set out below.

remuneration of non-executive directors 
Singtel’s Group CEO is an Executive Director and is, 
therefore, remunerated as part of Senior Management. 
She does not receive Directors’ fees.

The ERCC recommends the non-executive Directors’ 
fees for the Board’s endorsement and approval by 
shareholders. As Singtel has diverse and complex 
operations and investments internationally and is not just 
a Singapore-based company, the fees are benchmarked 
against fees paid by other comparable companies in 
Singapore and Australia, as well as comparable companies 
in other countries.

Singtel seeks shareholders’ approval at the AGM for 
Directors’ fees for the current financial year so that 
Directors’ fees can be paid on a half-yearly basis in arrears. 
No Director decides his own fees. 

69

SinGaPore telecommunicationS limited 

corporate Governance

Save as mentioned below, there are no retirement benefit 
schemes or share-based compensation schemes in place 
for non-executive Directors.

The aggregate Directors’ fees paid to non-executive 
Directors for the financial year ended 31 March 2016 was 
S$2,430,503 (details are set out in the table below).

To align Directors with shareholders’ interests, Directors 
are encouraged to acquire Singtel shares each year 
from the open market until they hold the equivalent of 
one year’s fees in shares, and to continue to hold the 
equivalent of one year’s fees in shares while they remain 
on the Board.

Financial Year Ended 31 March 2016
For the financial year ended 31 March 2016, the Chairman 
received an all-inclusive fee of S$960,000 (save for  
car-related benefits). The fee was paid approximately 
two-thirds in cash and approximately one-third in  
Singtel shares. No separate retainer fees, committee 
fees, attendance fees or travel allowance were paid to  
the Chairman. 

The fees for non-executive Directors (other than the 
Chairman) comprised a basic retainer fee, additional fees 
for appointment to Board Committees, attendance fees 
for ad hoc Board meetings and a travel allowance for 
Directors who were required to travel out of their country 
or city of residence to attend Board meetings and Board 
Committee meetings that did not coincide with Board 
meetings. The framework for determining non-executive 
Directors’ fees for the financial year ended 31 March 2016 
was the same as the framework for the previous financial 
year and is set out below:

Basic retainer Fee
Board Chairman
Director

S$960,000 per annum
S$110,000 per annum

Fee for appointment to audit 
Committee and Finance and 
investment Committee
Committee chairman 
Committee member

Fee for appointment to executive 
resource and Compensation 
Committee
Committee chairman
Committee member

Fee for appointment to any other 
Board Committee
Committee chairman
Committee member

attendance Fee per ad hoc Board 
meeting

Travel allowance for Board 
meetings and Board Committee 
meetings that do not coincide 
with Board meetings (per day 
of travel required to attend 
meeting)

S$60,000 per annum
S$35,000 per annum

S$45,000 per annum
S$25,000 per annum

S$35,000 per annum
S$25,000 per annum

S$2,000

S$3,000

name of director

Simon Israel (1)
Bobby Chin 
Venky Ganesan (2)
Low Check Kian (3)
Peter Mason AM (4)
Christina Ong
Peter Ong (5)
Teo Swee Lian (6)
Fang Ai Lian (7)
Kai Nargolwala (8)
total 

director’s Fees 
(S$) 

960,000
202,406
219,000
179,962
198,925
173,000
175,000
193,500
59,758
68,952
2,430,503

notes: 
(1) 

In addition to the Director’s fees set out above, Mr Simon Israel also 
received car-related benefits (S$21,879). 

(2)   In addition to the Director’s fees set out above, Mr Venky Ganesan 

(3) 

received	fees	of	US$50,000	for	the	financial	year	ended	31	March	2016	
in his capacity as a member of the Technology Advisory Panel.  
Mr Ganesan also received options in respect of 750,718 ordinary shares 
in Amobee Group Pte. Ltd. (AGPL), a wholly-owned subsidiary of 
Singtel, for the financial year ended 31 March 2016 in his capacity as a 
director of Amobee, Inc., a wholly-owned subsidiary of AGPL.
In addition to the Director’s fees set out above, Mr Low Check Kian 
received aggregate fees of S$35,000 for the financial year ended  
31 March 2016 in his capacity as a director of Singtel Innov8 Pte. Ltd.
In addition to the Director’s fees set out above, Mr Peter Mason AM 
received fees of S$35,000 in his capacity as a member of the Optus 
Advisory Committee for the financial year ended 31 March 2016.
(5)   Fees for the Singapore public sector Director, Mr Peter Ong, are 
processed in accordance with the framework of the Singapore 
Directorship and Consultancy Appointments Council.

(4) 

(6)   Ms Teo Swee Lian was appointed to the Board and as a member of 
the Audit Committee, the Executive Resource and Compensation 
Committee and the Risk Committee on 13 April 2015.

 (7)   Mrs Fang Ai Lian retired as a Director and member of the Audit 

Committee and the Executive Resource and Compensation Committee 
following the conclusion of the AGM on 21 July 2015.

(8)   Mr Kai Nargolwala retired as a Director and member of the Corporate 

Governance and Nominations Committee, the Executive Resource and 
Compensation Committee and the Finance and Investment Committee 
following the conclusion of the AGM on 21 July 2015.

No employee of the Group who is an immediate family 
member of a Director was paid remuneration that 
exceeded S$50,000 during the financial year ended  
31 March 2016.

Financial Year Ending 31 March 2017
For the financial year ending 31 March 2017, it is proposed 
that aggregate fees of up to S$2,950,000 be paid to the 
Directors, which is the same as the amount approved 
by shareholders for the financial year ended 31 March 
2016. The proposed framework for Directors’ fees for the 
financial year ending 31 March 2017 is the same as that for 
the financial year ended 31 March 2016.

annual rePort 2016

70

remuneration of  
executive director and  
Senior management

The remuneration framework and policy is designed 
to support the implementation of the Group’s strategy 
and to enhance shareholder value. The following are 
our guiding principles for remuneration to Senior 
Management:

aliGnmenT WiTh SharehOlderS’ inTereSTS
•	 Align	interests	between	management	and	

shareholders

•	 Select	appropriate	performance	metrics	for	 

annual and long-term incentive plans to support 
business strategies and ongoing enhancement of 
shareholder value

•	 Ensure	targets	are	appropriately	set	for	threshold,	
target, stretch and exceptional performance levels
•	 Establish	sound	and	structured	funding	to	ensure	

affordability

COmPeTiTiVe remuneraTiOn
•		 Offer	competitive	packages	to	attract	and	retain	
highly experienced and talented individuals
•		 Link	a	significant	proportion	of	remuneration	to	
performance, both on an annual and long-term 
basis

Pay-FOr-PerFOrmanCe
•	 Measure	performance	based	on	a	holistic	balanced	
scorecard approach, comprising both financial and 
non-financial metrics

•	 Structure	a	significant	but	appropriate	proportion	of	
remuneration to be at risk, taking into account the 
risk policies of the Group

•		 Build	flexibility	into	the	remuneration	package	to	

allow for performance-related clawback if long-
term performance targets are not met

eFFeCTiVe imPlemenTaTiOn
•		 Meet	rigorous	corporate	governance	requirements

The ERCC recognises that the Group operates in a 
multinational and multifaceted environment and reviews 
remuneration through a process that considers Group, 
business unit and individual performance as well as 
relevant comparative remuneration in the market. The 
performance evaluation for Senior Management has been 
conducted in accordance with the above considerations.

During the year, the ERCC engaged Aon Hewitt Singapore 
Pte Ltd (Aon Hewitt) to provide valuation and vesting 
computation for grants awarded under the Singtel 
Performance Share Plan 2012, and to conduct Executive 
Remuneration Benchmarking for Senior Management. 
The ERCC also engaged Mercer (Singapore) Pte 
Ltd (Mercer) to review the overall remuneration 
framework and key elements of the performance-
related remuneration components to ensure continued 
relevance to strategic business objectives and alignment 
with market practices. Aon Hewitt, Mercer and their 
consultants are independent and not related to the 
Group or any of its Directors.

Singtel may, under special circumstances, compensate 
Senior Management for their past contributions when 
their services are no longer needed, in line with market 
practice; for example, due to redundancies arising from 
reorganisation or restructuring of the Group.

The ERCC has the discretion not to award incentives in 
any year if an executive is involved in misconduct or fraud 
resulting in financial loss to the company.

remuneration Structure
The remuneration structure is designed such that the 
percentage of the performance-related components of 
Senior Management’s remuneration increases as they 
move up the organisation. 

On an annual basis, the ERCC proposes the 
compensation for the Group CEO, CEOs, Group Chief 
Corporate Officer and Group CFO for the Board’s 
approval and approves compensation for the other 
Senior Management.

The key remuneration components for Senior Management are summarised below:

FiXed COmPOnenTS

PerFOrmanCe-relaTed 
COmPOnenTS

TOTal  
remuneraTiOn

=

BaSe
Salary

BeneFiTS & 
PrOVidenT/ 
SuPerannuaTiOn

+

VariaBle 
BOnuS

lOnG-Term 
inCenTiVeS

71

SinGaPore telecommunicationS limited 

corporate Governance

Fixed Components

BaSe Salary
The base salary reflects the market worth of the job 
but may vary with responsibilities, qualifications and 
the experience that the individual brings to the role.

Policy
This is approved by the Board based on ERCC’s 
recommendation and reviewed annually against:
(i)  peers of similar financial size and complexity  

to the Group; 

(ii)  pay and conditions across the Group; and
(iii) the executive’s contribution and experience.

In Australia, consistent with local market practice, 
executives may opt for a portion of their salaries to be 
received in benefits-in-kind, such as superannuation 
contributions and motor vehicles, while maintaining 
the same overall cost to the company.

Performance linkage
The base salary is linked to each executive’s sustained 
long-term performance.

Performance-related 
Components

VariaBle BOnuS
Variable Bonus comprises the Performance Bonus and 
the Value Sharing Bonus. It provides a variable level of 
remuneration dependent on short-term performance 
against the annual plan, as well as relevant market 
remuneration benchmarks. 

Policy
Performance Bonus
Performance Bonus (PB) is designed to support the  
Group’s business strategy and the ongoing 
enhancement of shareholder value through the 
delivery of annual financial strategy and operational 
objectives. On an individual level, the PB will vary 
according to the actual achievement against Group, 
business unit and individual performance objectives.

Value Sharing Bonus
A portion of Senior Management’s annual 
remuneration is tied to the Economic Profit (EP) 
performance of the Group in the form of the Value 
Sharing Bonus (VSB). VSB is used to defer their 
bonuses over a time horizon to ensure alignment 
with sustainable value creation for the shareholders 
over the longer term. VSB is also extended to Top 
Management executives, who are senior executives 
below the Senior Management level, holding positions 
equivalent to Vice President in the organisation.

BeneFiTS & PrOVidenT/SuPerannuaTiOn Fund
Benefits & Provident/Superannuation Fund provided 
are in line with local market practices and legislative 
requirements.

Policy
Singtel contributes towards the Singapore Central 
Provident Fund or the Optus Superannuation Fund or any 
other chosen fund, as applicable. Singtel also provides in-
company medical scheme, club membership, employee 
discounts and other benefits that may incur Australian 
Fringe Benefits Tax, where applicable.

Participation in benefits is dependent on the country 
in which the executive is located. For expatriates 
located away from home, additional benefits such as 
accommodation, children’s education and tax equalisation 
may be provided.

Performance linkage 
Benefits and Provident/Superannuation Fund are not 
directly linked to performance.

Performance linkage
Performance Bonus
The objectives are aligned to the Annual Operating Plan 
and are different for each executive. They are assessed on 
the same principles across two broad categories of targets: 
Business and People. Business targets comprise financials, 
strategy, customer and business processes. People targets 
comprise leadership competencies, core values, people 
development and staff engagement. In addition, the 
executives are assessed on teamwork and collaboration 
across the Group.

Value Sharing Bonus
A “VSB bank” is created for each executive to hold the VSB 
allocated to him or her in any year. One-third of the “bank” 
balance would be paid out in cash provided it is positive. 
The remaining balance will be carried forward and at risk 
as it is subject to performance-related clawback and could 
be reduced in the event of EP underperformance in the 
future years.

lOnG-Term inCenTiVeS
Long-term incentives reinforce the delivery of long-term 
growth and shareholder value to drive an ownership culture 
and retain key talent. These are equity awards provisionally 
granted to Senior Management based on performance for 
the year ended 31 March 2016. 

The long-term incentives consist of two types of awards 
– the Restricted Share Award (RSA) and the Performance 
Share Award (PSA) – with grants made at the discretion 
of the ERCC. The RSA is granted to a broader group of 
executives while the PSA is granted to Senior and Top 
Management.

 
annual rePort 2016

72

Policy
The number of performance shares (RSA and PSA) 
awarded is determined using the valuation of the shares 
based on a Monte-Carlo simulation. The share awards 
are conditional upon the achievement of predetermined 
performance targets over the performance period. The 
performance conditions were chosen as they are key drivers 
of shareholder value creation and aligned to the Group’s 
business objectives. These performance conditions and 
targets are approved by the ERCC at the beginning of the 
performance period. The final number of performance 
shares vested to the recipient will depend on the level of 
achievement of these targets over the performance period, 
subject to the approval of the ERCC.

A significant portion of the remuneration package for 
our Senior Management is delivered in Singtel shares to 
ensure that their interests are aligned with shareholders. 
In particular, the long-term incentives mix is more heavily 
weighted toward PSA for more senior executives to increase 
focus on shareholder returns. This is further supported by 
significant shareholding requirements in which they are 
required to retain at least the equivalent of their annual base 
salary in shares.

Special provisions for vesting and lapsing of awards 
apply for events such as the termination of employment, 
misconduct, retirement and any other events approved by 
the	ERCC.	Upon	occurrence	of	any	of	the	events,	the	ERCC	
will consider, at its discretion, whether or not to release 
any award, and will take into account circumstances on 
a case-by-case basis, including (but not limited to) the 
contributions made by the employee.

Singtel employees are prohibited from entering into 
transactions in associated products which limit the 
economic risk of participating in unvested awards under 
Singtel’s equity-based remuneration schemes.

Performance linkage
Restricted Share Award (RSA)
The RSA has a two-year performance period from  
1 April 2016 to 31 March 2018. Vesting of shares is 
dependent on the following performance conditions:

•	 50%	based	on	Singtel	Group’s	Net	Profit	After	Tax	
(NPAT) – Singtel Group NPAT achieved against 
predetermined targets; and

•	 50%	based	on	Singtel	Group’s	Free	Cash	Flow	(FCF)	

– Singtel Group FCF achieved against predetermined 
targets.

Performance Share Award (PSA)
The PSA has a three-year performance period from  
1 April 2016 to 31 March 2019. Vesting of shares is 
dependent on the following performance conditions:

•	 50%	based	on	Singtel	Group’s	Relative	Total	

Shareholder Return (Relative TSR) – Percentile ranking 
against the component stocks of the MSCI Asia Pacific 
Telecommunications Index; and

•	 50%	based	on	Singtel	Group’s	Absolute	Total	

Shareholder Return (Absolute TSR) – Absolute TSR 
achieved against predetermined targets.

The details of the vesting schedule for RSA and PSA 
granted in June 2016 are shown in Figure A and Figure B 
respectively.

Figure A: Restricted Share Award (RSA) Vesting Schedule

Group nPaT (50%)

Group FCF (50%)

Performance

Vesting level (1)

Performance

Vesting level (1)

Exceptional 
Stretch
Target
Threshold
Below Threshold

150%
130%
100%
50%
0%

Exceptional
Stretch
Target
Threshold
Below Threshold

150%
130%
100%
50%
0%

note:
(1)   For achievement between these performance levels, the percentage of shares that will vest under this tranche would vary accordingly.

Figure B: Performance Share Award (PSA) Vesting Schedule

relative TSr (50%)

absolute TSr (50%)

Performance (2)

Vesting level (3)

Performance

Vesting level (3)

–
≥ 90th percentile
50th – 59th percentile
< 50th percentile

–
100%
50%
0%

Stretch
Target
Threshold
Below Threshold

200%
100%
30%
0%

notes:
(2)   Percentile ranking performance against the component stocks of the MSCI Asia Pacific Telecommunications Index.
(3)   For achievement between these performance levels, the percentage of shares that will vest under this tranche would vary accordingly.

73

SinGaPore telecommunicationS limited 

corporate Governance

remuneration of Key management and Senior management 
For the financial year ended 31 March 2016, there were no termination, retirement and post-employment benefits 
granted to Directors and Key Management.

remuneration of executive director
Summary compensation table for Group CEO (Chua Sock Koong) for the financial year ended 31 March 2016:

name

Chua Sock Koong

Fixed 

remuneration (1)

Variable 

Bonus (2)

Provident 

Fund (3)

Benefits (4)

Total Cash 
& Benefits (5)

Earned

Paid Out

S$1,647,096

S$4,657,661  

S$3,816,775 

S$10,740

S$76,316

S$6,391,813 

S$5,550,927

Performance shares granted, vested and lapsed for Ms Chua as at 31 March 2016 are as follows:

2013 Awards

2014 Awards 

2015 Awards (8)

2016 Awards (8) (9)

2013 Awards
2014 Awards (8)
2015 Awards (8)
2016 Awards (8) (9)

Granted 
(no. of shares)

Vested
(no. of shares)

lapsed
(no. of shares)

released

date

(no. of shares)

restricted Share award (rSa)(6)

98,060

127,478

102,097

132,727

–

–

84,060

201,331

63,739

63,739

66,364

66,363 (7)

2-Jun-15

1-Jun-16

1-Jun-16

1-Jun-17

1-Jun-17

1-Jun-18

1-Jun-18

3-Jun-19

Granted 
(no. of shares)

Vested
(no. of shares)

lapsed
(no. of shares)

released

date

(no. of shares)

Performance Share award (PSa)(6)

1,418,169

1,422,663

1,658,980

1,694,657

212,726

1,205,443

212,726

1-Jun-16

1-Jun-17

1-Jun-18

3-Jun-19      

notes: 
(1)  Fixed Remuneration refers to base salary earned for the financial year ended 31 March 2016.
(2)  Variable Bonus comprises Performance Bonus (PB) and Value Sharing Bonus (VSB). PB varies according to the actual achievement against Group, 
business unit and individual performance objectives for the year. VSB is awarded for individual performance and Group Economic Profit (EP) 
performance for the year. The allocated VSB will be credited into the VSB ‘bank’ and one-third of the ‘bank’ balance is paid out in cash each year provided 
it is positive. The remaining balance is carried forward to the next year and at risk as it is subject to a clawback feature. For more details, please refer to 
page 71. Variable Bonus Earned is the sum of PB and VSB awarded for the financial year ended 31 March 2016. Variable Bonus Paid Out is the sum of PB 
and VSB paid out in June 2016.

(3)  Provident Fund in Singapore represents payments in respect of company statutory contributions to the Singapore Central Provident Fund.
(4)  Benefits are stated on the basis of direct costs to the company and include car benefits, flexible benefits and other non-cash benefits such as medical 

cover and club membership.

(5)  Total Cash & Benefits Earned is the sum of Fixed Remuneration, Provident Fund, Benefits and Variable Bonus awarded for the financial year ended  

31 March 2016. Total Cash & Benefits Paid Out is the sum of Fixed Remuneration, Provident Fund, Benefits and Variable Bonus paid out for the financial 
year ended 31 March 2016.

(6)   Long-term Incentives are awarded in the form of Restricted Share Award (RSA) and Performance Share Award (PSA) under the Singtel Performance Share 

Plan 2012. 

(7)   The second tranche of the vested 2014 RSA will be released in June 2017, subject to continued service of the employee.
(8)   The vesting of the RSA and PSA are conditional upon the achievement of predetermined performance targets over the respective performance period, 

which are a two-year period for RSA and a three-year period for PSA.

(9)   The 2016 grants of RSA and PSA were made in June 2016 for performance for the financial year ended 31 March 2016. The per unit fair values of the RSA 

and PSA are S$3.308 and S$1.572 respectively. The performance conditions for the awards are detailed on page 72. 

annual rePort 2016

74

remuneration of Other Key management and Senior management
Summary compensation table for the other top five Key Management and Senior Management for the financial year 
ended 31 March 2016:

name

Fixed 

remuneration (1)

Variable 

Bonus (2)

Provident 

Fund (3)

Benefits (4)

Total Cash 
  & Benefits (5)

The following are in alphabetical order:

Bill Chang 
CEO Group Enterprise

Hui Weng Cheong (7) 
COO, AIS 

Allen Lew
CEO Consumer Australia

Jeann Low 
Group Chief Corporate 
Officer  

Yuen Kuan Moon 
CEO Consumer Singapore 

Total 

Earned

Paid Out

Earned

Paid Out

Earned

Paid Out

Earned

Paid Out

Earned

Paid Out

earned

Paid Out

S$909,996

S$663,000

A$1,540,933

S$909,996

S$720,000

S$4,771,756

S$2,341,249

S$1,698,580

S$1,198,625

S$1,080,922

A$3,451,390

A$3,366,356

S$1,403,332

S$1,327,711

S$1,470,000

S$1,093,265

S$9,926,931

S$8,627,634

S$14,960

S$66,072

S$7,570

S$446,002

S$7,992

A$490,712

S$13,540

S$62,163

S$14,960

S$61,948

S$59,022

S$1,135,759

S$3,332,277

S$2,689,608

S$2,315,197

S$2,197,494

A$5,490,884

A$5,405,851

S$2,389,031

S$2,313,410

S$2,266,908

S$1,890,173

S$15,893,468

S$14,594,171

restricted 
Share award 

(rSa) (6) 

Performance 
Share award

(PSa) (6) 

(no. of shares)

(no. of shares)

90,690

763,359

74,819

367,367

111,851

941,476

66,506

559,797

81,621

400,764

425,487

3,032,763

Performance shares granted, vested and lapsed for the above five executives as at 31 March 2016 are as follows:

2013 Awards

2014 Awards 

2015 Awards (9)

2013 Awards
2014 Awards (9)
2015 Awards (9)

Granted 
 (no. of shares)

Vested
(no. of shares)

lapsed
(no. of shares)

released

date

(no. of shares)

restricted Share award (rSa) 

205,671

267,375

228,654

297,253

188,260 

–

–

2-Jun-15
1-Jun-16
1-Jun-16
1-Jun-17
1-Jun-17
1-Jun-18

133,689
133,686
148,628  
148,625 (8)

Granted 
(no. of shares)

Vested
(no. of shares)

lapsed
(no. of shares)

released

date

(no. of shares)

Performance Share award (PSa) 

2,281,388
2,421,321
2,823,526

342,211

1,939,177

342,211

1-Jun-16
1-Jun-17
1-Jun-18

notes: 
(1)  Fixed Remuneration refers to base salary earned for the financial year ended 31 March 2016.
(2)  Variable Bonus comprises Performance Bonus (PB) and Value Sharing Bonus (VSB). PB varies according to the actual achievement against Group, 
business unit and individual performance objectives for the year. VSB is awarded for individual performance and Group Economic Profit (EP) 
performance for the year. The allocated VSB will be credited into the VSB ‘bank’ and one-third of the ‘bank’ balance is paid out in cash each year 
provided it is positive. The remaining balance is carried forward to the next year and at risk as it is subject to a clawback feature. For more details, please 
refer to page 71. Variable Bonus Earned is the sum of PB and VSB awarded for the financial year ended 31 March 2016. Variable Bonus Paid Out is the 
sum of PB and VSB paid out in June 2016.

(3)  Provident Fund in Singapore represents payments in respect of company contributions to the Singapore Central Provident Fund.
(4)  Benefits are stated on the basis of direct costs to the company and include overseas assignment benefits, tax equalisation, car benefits, flexible benefits 

and other non-cash benefits such as medical cover and club membership, where applicable.

(5)  Total Cash & Benefits Earned is the sum of Fixed Remuneration, Provident Fund, Benefits and Variable Bonus awarded for the financial year ended  

31 March 2016. Total Cash & Benefits Paid Out is the sum of Fixed Remuneration, Provident Fund, Benefits and Variable Bonus paid out for the financial 
year ended 31 March 2016.     

(6)  Long-term Incentives are awarded in the form of performance shares. Grants of the Restricted Share Award (RSA) and Performance Share Award (PSA) 
under the Singtel Performance Share Plan 2012 were made in June 2016 for performance for the financial year ended 31 March 2016. The per unit fair 
values of the RSA and PSA are S$3.308 and S$1.572 respectively. The performance conditions for the awards are detailed on page 72.

(7)  Benefits for Mr Hui Weng Cheong include tax equalisation in relation to his assignment to AIS, Thailand.
(8)  The second tranche of the vested 2014 RSA will be released in June 2017, subject to continued service of the employee. 
(9)  The vesting of the RSA and PSA are conditional upon the achievement of predetermined performance targets over the respective performance period, 

which are a two-year period for RSA and a three-year period for PSA.

 
75

SinGaPore telecommunicationS limited 

corporate Governance

Code of Corporate Governance 2012

GuidelineS FOr diSClOSure 

General

Q: 

(a)  Has the Company complied with all the 

principles and guidelines of the Code?

members of the Board
Guideline 2.6

legend:
Q:  Questions 
a:  How has the  
Company  
complied?

If not, please state the specific deviations  
and the alternative corporate governance 
practices adopted by the Company in lieu of  
the recommendations in the Code.

Q: 

a: 

a: 

Yes, the Company has complied in all material 
respects with the principles and guidelines of the 
Code of Corporate Governance 2012.

Q: 

(b) 

In what respect do these alternative corporate 
governance practices achieve the objectives of 
the principles and conform to the guidelines in 
the Code?

a:  Not applicable.

Board responsibility
Guideline 1.5

Q:  What are the types of material transactions which 

require approval from the Board?

a:  Material items that require Board approval include:

•	 The	Group’s	strategic	plans
•	 The	Group’s	annual	operating	plan	and	budget
•	 Full-year,	half-year	and	quarterly	financial	results
•	 Dividend	policy	and	payout
•	
•	 Board	succession	plans
•	 Succession	plans	for	Senior	Management,	

Issue	of	shares

including appointment of, and compensation for, 
Group CEO, CEOs, Group CCO and Group CFO 

•	 Underlying	principles	of	long-term	incentive	

schemes for employees

•	 The	Group’s	risk	appetite	and	risk	tolerance	for	

different categories of risk, as well as risk strategy 
and the policies for management of material risks 

•	 Acquisitions	and	disposals	of	investments	

exceeding certain material limits 

•	 Capital	expenditures	exceeding	certain	 

material limits 

(a)  What is the Board’s policy with regard to 
diversity in identifying director nominees?

Singtel is committed to building a diverse, inclusive 
and collaborative culture. Singtel recognises and 
embraces the benefits of diversity on the Board, 
and views diversity at the Board level as an essential 
element in supporting the attainment of its strategic 
objectives and its sustainable development.

The Board’s Diversity Policy provides that, in 
reviewing Board composition and succession 
planning, the CGNC will consider the benefits of 
all aspects of diversity, including diversity of skills, 
experience, background, gender, age, ethnicity 
and other relevant factors.  These differences 
will be considered in determining the optimum 
composition of the Board and when possible should 
be balanced appropriately.  All Board appointments 
are made based on merit, in the context of the skills, 
experience, independence and knowledge which  
the Board as a whole requires to be effective. 
Diversity is a key criterion in the instructions to 
external search consultants.

The Board is of the view that gender is an important 
aspect of diversity and will strive to ensure that (a) 
any brief to external search consultants to search 
for candidates for appointment to the Board will 
include a requirement to present female candidates, 
(b) female candidates are included for consideration 
by the CGNC whenever it seeks to identify a new 
Director for appointment to the Board, (c) the Board 
appoints at least one female Director to the CGNC, 
and (d) there is significant and appropriate female 
representation on the Board, recognising that the 
Board’s needs will change over time taking into 
account the skills and experience on the Board.

Q: 

a: 

(b)  Please state whether the current composition 
of the Board provides diversity on each of 
the following – skills, experience, gender and 
knowledge of the Company, and elaborate with 
numerical data where appropriate.

Reflecting the focus of the Group’s business in the 
region, three of Singtel’s nine Directors are from, and 
have extensive experience in, jurisdictions outside 
Singapore, namely, the Chairman, Mr Simon Israel, 
and non-executive Directors, Messrs Venky Ganesan 
and Peter Mason AM. In relation to gender diversity, 
approximately 33% of the Singtel Board, or three out 
of the nine Board members, are female. 

 
 
 
	
	
	
	
	
	
	
	
	
	
 
 
 
 
annual rePort 2016

76

Q: 

a: 

The individual profiles of the Directors, including 
details of their background and qualifications, are  
set out in the “Board of Directors” section of the 
Annual Report.

(c)  What steps has the Board taken to achieve the 
balance and diversity necessary to maximise its 
effectiveness?

In order to ensure that Singtel continues to be able 
to meet the challenges and demands of the markets 
in which Singtel operates, the Board is focused 
on enhancing the diversity of skills, expertise and 
perspectives on the Board in a structured way by 
proactively mapping out Singtel’s Board composition 
needs over the short and medium term (Board 
Progression Planning). This is an ongoing process 
facilitated by an independent consultant and is 
informed by a series of detailed interviews between  
the consultant and each member of the Board as 
well as key management members. 

Guideline 4.6

Q:  Please describe the board nomination process  

for the Company in the last financial year for  
(i) selecting and appointing new directors and  
(ii) re-electing incumbent directors.

a: 

The CGNC establishes and reviews the profile  
required of Board members and makes 
recommendations to the Board on the appointment, 
re-nomination and retirement of Directors. 

When an existing Director chooses to retire or is 
required to retire from office by rotation, or the 
need for a new Director arises, the CGNC reviews 
the range of expertise, skills and attributes of the 
Board and the composition of the Board. The 
CGNC then identifies Singtel’s needs and prepares 
a shortlist of candidates with the appropriate profile 
for nomination or re-nomination. The Board has 
an ongoing process facilitated by an independent 
consultant to map out these needs and to search  
for candidates to join the Board.

The CGNC takes factors such as attendance, 
preparedness, participation and candour into  
consideration when evaluating the past performance 
and contributions of a Director when making its 
recommendations to the Board. However, the  
re-nomination or replacement of a Director does  
not necessarily reflect the Director’s performance  
or contributions to the Board. The CGNC may have 
to consider the need to position and shape the  
Board in line with the evolving needs of Singtel and 
the business. 

When deciding on the appointment of new Directors 
to the Board, the CGNC and the Board consider a 
variety of factors, including the core competencies, 
skills and experience that are required on the Board 
and Board Committees, diversity, independence, 
conflicts of interest and time commitments.

Guideline 1.6

Q: 

(a)  Are new directors given formal training?  

If not, please explain why.

a: 

Yes, new directors are given formal training. 

Q: 

(b)  What are the types of information and training 

provided to (i) new directors and (ii) existing 
directors to keep them up to date?

a: 

All new Directors appointed to the Board are 
briefed by the Chairman, as well as the chairmen 
of the Board Committees on which they serve, on 
issues relating to the Board and Board Committees. 
They are also briefed by senior management on 
the Group’s business activities, strategic direction 
and policies, key business risks, the regulatory 
environment in which the Group operates and 
governance practices, as well as their statutory and 
other duties and responsibilities as Directors. 

Upon	appointment	to	the	Board,	each	Director	
receives a Directors’ Manual, which sets out the 
Director’s duties and responsibilities and the Board 
governance policies and practices. The Directors’ 
Manual is maintained by the Company Secretary. 
In line with best practices in corporate governance 
and the Code, new Directors also sign a letter of 
appointment from the Company stating clearly 
the role of the Board and non-executive Directors, 
the time commitment that the Director would be 
expected to allocate, and other relevant matters. 

To ensure Directors can fulfil their obligations and to 
continually improve the performance of the Board, 
all Directors are encouraged to undergo continual 
professional development during the term of their 
appointment. Professional development may relate 
to a particular subject area, committee membership, 
or key developments in Singtel’s environment, 
market or operations. Directors are encouraged 
to consult the Chairman if they consider that they 
personally, or the Board as a whole, would benefit 
from specific education or training regarding matters 
that fall within the responsibility of the Board or 
relate to the business of Singtel.

During the financial year ended 31 March 2016, the 
development/training programmes for Directors 
included the following:

 
 
 
 
	
 
 
77

SinGaPore telecommunicationS limited 

corporate Governance

•	 The	Directors	participated	in	an	annual	offsite	

workshop with Senior Management to formulate 
and plan the Group’s longer-term strategy, 
during which the Directors were briefed on 
developments in the markets in which the 
Group operates and were introduced to new 
technologies and advancements relevant to  
the Group.

•	 The	Board	met	with	the	board	and	management	
of Singtel’s associate, Globe Telecom, Inc. in 
Manila during which the Board was updated on 
Globe’s business and its operating environment. 
The Board also had the opportunity to meet with 
business leaders there.

•	 Members	of	the	Board	went	to	Israel	to	meet	with	
business associates there, as well as to visit new 
technology companies and explore emerging 
technologies relevant to the Group’s business.

•	 The	Board	was	briefed	on	regulatory	changes,	
such as changes to the Companies Act and the 
SGX Listing Manual.

•	 Members	of	the	Board	attended	forums	and	
dialogues with experts and senior business 
leaders on issues facing boards and board 
practice. 

•	 Briefings were provided by the Group’s external 

auditors to Audit Committee members on 
new accounting standards. Audit Committee 
members also attended relevant seminars such 
as those organised by the Singapore Institute 
of Directors to keep abreast of developments 
relevant to the Audit Committee’s role.

The Board receives regular reports pertaining to the 
operational and financial performance of the Group, 
as well as regular updates, which include information 
on the Group’s competitors, and industry and 
technological developments. In addition, Directors 
receive analysts’ reports on Singtel and other 
telecommunications and digital companies on a 
quarterly basis. Such reports enable the Directors to 
keep abreast of key issues and developments in the 
industry, as well as challenges and opportunities for  
the Group. 

Guideline 4.4

Q: 

(a)  What is the maximum number of listed 

company board representations that the 
Company has prescribed for its directors?  
What are the reasons for this number?

a: 

The Board has adopted an internal guideline that 
seeks to address the competing time commitments 
that may be faced when a Director holds multiple 
board appointments. The guideline provides that,  

as a general rule, each Director should hold no more 
than five directorships in public listed companies.
However, the Board recognises that the individual 
circumstances and capacity of each Director are 
different and there may be circumstances in which a 
different limit on board appointments is appropriate. 

Q: 

(b) 

If a maximum number has not been determined, 
what are the reasons?

a:  Not applicable.

Q: 

(c)  What are the specific considerations in deciding 

on the capacity of directors?

a: 

In support of their candidature for directorship or  
re-election, Directors are to provide the CGNC with 
details of their other commitments and an indication 
of the time involved. The CGNC and the Board take 
this into account in deciding on the capacity of 
Directors.

Board evaluation
Guideline 5.1

Q: 

(a)  What was the process upon which the Board 

reached the conclusion on its performance for 
the financial year?

a: 

Each year, the CGNC undertakes a process to 
assess the effectiveness of the Board and Board 
Committees. During the financial year ended 31 
March 2016, as in previous years, an independent 
external consultant was appointed to facilitate 
this process. The 2016 Board effectiveness survey 
was designed to provide an evaluation of current 
effectiveness of the Board and to support the 
Chairman and Board to proactively consider what 
can enhance the readiness of the Board to address 
emerging strategic priorities for the Singtel Group. 
The Directors and Senior Management were 
requested to complete an evaluation questionnaire 
focused on four key areas, namely (1) how the  
Board plays an effective role and adds value on 
critical issues, (2) how the Board operates to deliver 
impact and value, (3) Board Chair effectiveness 
and (4) committee evaluation. In particular, the 
survey looked at the Board’s performance in 
shaping and adapting strategy, risk and crisis 
management, overseeing the Group’s performance, 
CEO performance and succession management, 
corporate social responsibility and stakeholder 
communications, as well as areas such as strategic 
alignment and prioritisation, Board composition and 
structure, Board dynamics and culture, the Board’s 
partnership with management, efficiency of core 
Board processes, Board chair effectiveness, and 
Board Committee and committee chair effectiveness.

	
	
	
	
	
	
 
annual rePort 2016

78

In addition to the appraisal exercise, the contributions 
and performance of each Director were assessed 
by the CGNC as part of its periodic reviews of the 
composition of the Board and the various Board 
Committees. In the process, the CGNC was able to 
identify areas for improving the effectiveness of the 
Board and Board Committees. The Board was also 
able to assess the Board Committees through their 
regular reports to the Board on their activities.

Q: 

(b)  Has the Board met its performance objectives?

a: 

Yes.

independence of directors
Guideline 2.1

Q:  Does the Company comply with the guideline on the 

proportion of independent directors on the Board? 
If not, please state the reasons for the deviation and 
the remedial action taken by the Company.

a: 

Yes, six out of nine Directors are independent.

Guideline 2.3

Q: 

(a) 

Is there any director who is deemed to be 
independent by the Board, notwithstanding 
the existence of a relationship as stated in the 
Code that would otherwise deem him not to be 
independent? If so, please identify the director 
and specify the nature of such relationship.

a: 

Please refer to the section “Board Composition, 
Diversity and Balance” in the Corporate Governance 
Report for details on Mrs Christina Ong, Mr Bobby 
Chin and Mr Venky Ganesan. 

Q: 

(b)  What are the Board’s reasons for considering 

him independent? Please provide a detailed 
explanation.

disclosure on remuneration
Guideline 9.2

Q:  Has the Company disclosed each director’s and 

the CEO’s remuneration as well as a breakdown (in 
percentage or dollar terms) into base/fixed salary, 
variable or performance-related income/bonuses, 
benefits in kind, stock options granted, share-
based incentives and awards, and other long-term 
incentives?  If not, what are the reasons for not 
disclosing so?

a: 

Yes, the details of each Director’s and the Group 
CEO’s remuneration are fully disclosed. 

Guideline 9.3

Q: 

(a)   Has the Company disclosed each key 

management personnel’s remuneration, in 
bands of S$250,000 or in more detail, as well 
as a breakdown (in percentage or dollar terms) 
into base/fixed salary, variable or performance-
related income/bonuses, benefits in kind, stock 
options granted, share-based incentives and 
awards, and other long-term incentives? If not, 
what are the reasons for not disclosing so?

a: 

Yes, the details of each key management personnel’s 
remuneration are fully disclosed.

Q: 

(b)   Please disclose the aggregate remuneration 

paid to the top five key management personnel 
(who are not directors or the CEO).

a: 

The aggregate remuneration, comprising total cash 
and benefits, paid to the top five key management 
personnel and Senior Management for FY2016 
amounted to S$14,594,171, as indicated on page 74.

Guideline 9.4

a: 

Please refer to the section “Board Composition, 
Diversity and Balance” in the Corporate Governance 
Report for details on Mrs Christina Ong, Mr Bobby 
Chin and Mr Venky Ganesan. 

Q: 

Is there any employee who is an immediate family 
member of a director or the CEO, and whose 
remuneration exceeds S$50,000 during the year? 
If so, please identify the employee and specify the 
relationship with the relevant director or the CEO.

Guideline 2.4

Q:  Has any independent director served on the Board 

for more than nine years from the date of his first 
appointment? If so, please identify the director and 
set out the Board’s reasons for considering him 
independent.

a:  No. 

a:  No.

Guideline 9.6

Q: 

(a)   Please describe how the remuneration received 
by executive directors and key management 
personnel has been determined by the 
performance criteria.

 
 
 
 
 
79

SinGaPore telecommunicationS limited 

corporate Governance

a: 

The ERCC reviews remuneration through a process 
that considers Group, business unit and individual 
performance as well as relevant comparative 
remuneration in the market.

a: 

Total remuneration for the Group CEO and 
key management personnel comprise fixed 
components and performance-related components. 
The performance-related components include 
Performance Bonus, Value Sharing Bonus and 
Long-term Incentives. Performance Bonus (PB) is 
designed to support the Group’s business strategy 
and the ongoing enhancement of shareholder value 
through the delivery of annual financial strategy 
and operational objectives. Value Sharing Bonus 
(VSB) is used to defer bonuses over a time horizon 
to ensure alignment with sustainable value creation 
for shareholders over the longer term. Long-term 
Incentives refer to Restricted Share Award (RSA) 
and the Performance Share Award (PSA) with 
performance conditions that are tied to key drivers 
of shareholder value creation and aligned to the 
Group’s business objectives.

(b)   What were the performance conditions used to 
determine their entitlement under the short-
term and long-term incentive schemes?

The PB will vary according to the actual achievement 
against Group, business unit and individual 
performance objectives, which can be grouped 
into two broad categories: Business and People. 
Business targets comprise financials, strategy, 
customer and business processes. People targets 
comprise leadership competencies, core values, 
people development and staff engagement. For 
VSB, Economic Profit performance of the Group is 
measured. For RSA, internal performance conditions 
such as the Group’s Net Profit After Tax and Free 
Cash Flow are selected. For PSA, performance 
conditions aligned with shareholders’ interests such 
as Absolute and Relative Total Shareholder Return 
are used.

Q: 

a: 

Q: 

(c)   Were all of those performance conditions met?  

If not, what were the reasons?

a: 

The performance conditions were generally met, 
except for total shareholder return conditions, which 
were impacted by adverse share price movements. 

risk management and internal Controls
Guideline 6.1

Q:  What types of information does the Company 

provide to independent directors to enable them 
to understand its business, the business and 
financial environment as well as the risks faced by 
the Company? How frequently is the information 
provided?

Prior to each Board meeting, Singtel’s Management 
provides the Board with information relevant to 
matters on the agenda for the meeting. In general, 
such information is provided a week in advance 
of the Board meeting. The Board also receives 
regular reports pertaining to the operational and 
financial performance of the Group, as well as 
regular updates, which include information on the 
Group’s competitors, and industry and technological 
developments. In addition, Directors receive analysts’ 
reports on Singtel and other telecommunications 
and digital companies on a quarterly basis. Such 
reports enable the Directors to keep abreast of key 
issues and developments in the industry, as well as 
challenges and opportunities for the Group.

The Board has separate and independent access to 
the Senior Management and the Company Secretary 
at all times. Procedures are in place for Directors 
and Board Committees, where necessary, to seek 
independent professional advice, paid for by Singtel.

Guideline 13.1

Q:  Does the Company have an internal audit function? 

If not, please explain why.

a: 

Yes, the Company has an internal audit function.

Guideline 11.3

Q: 

(a)  

In relation to the major risks faced by the 
Company, including financial, operational, 
compliance, information technology and 
sustainability, please state the bases for the 
Board’s view on the adequacy and effectiveness 
of the Company’s internal controls and risk 
management system.

a: 

Based on the internal controls established and 
maintained by the Group, work performed 
by internal and external auditors, and reviews 
performed by Management and various Board 
Committees, the Board, with the concurrence  
of the AC, is of the opinion that the Group’s internal 
controls and risk management framework and 
systems were adequate and effective as at  
31 March 2016 to address financial, operational  
and compliance risks, including information 
technology risk, which the Group considers relevant 
and material to its operations.

Please refer to the section “Risk Management and 
Internal Controls” in the Corporate Governance 
Report for further details.

 
 
 
annual rePort 2016

80

Q: 

(b)   In respect of the past 12 months, has the  

Board received assurance from the CEO and  
the CFO as well as the internal auditor that:  
(i) the financial records have been properly 
maintained and the financial statements give a 
true and fair view of the Company’s operations 
and finances; and (ii) the Company’s risk 
management and internal control systems are 
effective? If not, how does the Board assure 
itself of points (i) and (ii) above?

Singtel strongly encourages and supports 
shareholder participation at general meetings. At 
each AGM, the Group CEO delivers a presentation to 
update shareholders on Singtel’s progress over the 
past year. All the Directors and Senior Management 
are in attendance to address queries and concerns 
about Singtel. Singtel’s external auditor also attend 
to help address shareholders’ queries relating to 
the conduct of the audit and the preparation and 
content of the auditor’s reports.

a: 

Yes.

Guideline 12.6

Q: 

a: 

(a)   Please provide a breakdown of the fees paid  
in total to the external auditors for audit and 
non-audit services for the financial year.

Please refer to the section “External Auditor” in the 
Corporate Governance Report for the breakdown 
of fees. The Notes to the Financial Statements also 
include information on the fees paid to external 
auditors.

Q: 

(b) 

If the external auditors have supplied a 
substantial volume of non-audit services to the 
Company, please state the bases for the Audit 
Committee’s view on the independence of the 
external auditors.

Q: 

(b)   Is this done by a dedicated investor relations 

team (or equivalent)? If not, who performs this 
role?

a: 

Yes. Singtel has an Investor Relations department.

Q: 

a: 

(c)   How does the Company keep shareholders 
informed of corporate developments, apart 
from SGXNET announcements and the  
annual report?

The Singtel Investor Relations website is a key 
resource of information for the investment 
community. It contains a wealth of investor-
related information on Singtel, including investor 
presentations, webcasts of earnings presentations, 
transcripts of earnings conference calls, annual 
reports, upcoming events, shares and dividend 
information and investor factsheets.

a:  Not applicable.

Guideline 15.5 

Q: 

If the Company is not paying any dividends for the 
financial year, please explain why.

a:  Not applicable.

Communication with Shareholders
Guideline  15.4

Q: 

(a)   Does the Company regularly communicate  

with shareholders and attend to their questions? 
How often does the Company meet with 
institutional and retail investors?

a: 

Yes, Singtel proactively engages shareholders and  
the investment community through group and 
one-on-one meetings, conference calls, email 
communications, investor conferences and 
roadshows. This year, Singtel engaged over 400 
investors in 230 meetings and conference calls 
in Singapore, London, New York and other global 
financial centres. These events enable us to share the 
Group’s business strategy, operational and financial 
performance and business prospects. While these 
meetings are largely undertaken by Singtel’s Senior 
Management, the Chairman and certain Board 
members also meet with investors every year.

 
81

SINGAPORE TELECOMMUNICATIONS LIMITED 

Investor Relations

1 Help investors 
make informed 
and timely 
decisions about 
their Singtel 
securities

2

Foster regular 
two-way 
communication 
with investors 
using various 
touch points

3

Maintain leadership 
in corporate 
governance 
standards; 
champion integrity, 
transparency and 
accountability to 
investors

PROACTIVE COMMUNICATION 
WITH THE INVESTMENT 
COMMUNITY
During the fourth year of our 
business transformation, we 
continued to communicate the 
value of strategic initiatives we 
had taken in the marketplace. 
With a good mix of qualitative 
and quantitative information, our 
discussions helped investors to 
better assess our performance 
and disclosures.

The management and Investor 
Relations (IR) team engaged 
more than 400 investors in 230 
meetings and conference calls 
to discuss the Group’s business 
strategy, operational and fi nancial 
performance and prospects. We 
also participated in local and 
overseas investor conferences 
and roadshows, covering Hong 
Kong, Kuala Lumpur, the US and 
Europe. These platforms are an 
effi  cient and eff ective means of 
promoting Singtel and facilitating 
communication with existing and 
potential new investors.

In addition, we held briefi ngs for 
major corporate announcements, 
such as our acquisition of Trustwave 
in 2015. The same messages 

about the acquisition were also 
consistently communicated 
during our regular calls and 
investor conferences. We received 
positive feedback from investors, 
who generally agreed that the 
acquisition boosts our cloud-based 
services and brings synergies to our 
enterprise business. 

To give investors a better 
understanding of our business 
and operations, we hold an annual 
Investor Day. On this day, senior 
management of Singtel and Optus, 
as well as our regional mobile 
associates, share detailed insights 
into their businesses and respond 
to  queries. The event typically 
attracts more than 50 investors 
and analysts, who appreciate the 
open interaction with management 
across the Group’s entities, as well 
as the opportunity to gain insights 
from industry leaders.

We also organise site visits to 
our business facilities, giving 
investors a fi rst-hand experience 
of our operations and technical 
capabilities. This year, investors 
visited the Singtel-FireEye Advanced 
Security Operations Centre and NCS 
Centre for Solutions for Urbanised 
Future, which showcased our cyber 

security capabilities and Smart Nation 
solutions respectively.

We nurture and maintain strong 
links with sell-side research analysts 
and are well covered by more than 
20 analysts based in Australia, Hong 
Kong, Malaysia, Singapore and the 
UK who issue regular reports. We 
monitor analyst, industry and media 
reports closely as part of our eff orts 
to continuously improve disclosures 
and IR practices.

Retail investors are also an important 
part of our outreach eff orts and 
the IR team continues to engage 
them outside of our general 
meetings. We have renewed our 
long-term sponsorship of the 
Securities Investors Association 
(Singapore) (SIAS) Investor Education 
Programme, hosting events such as 
the annual Singtel-SIAS dialogue. In 
addition, we address the concerns 
of retail investors through email and 
telephone enquiries.

Each year, we commission an 
independent study to gather 
investors’ perceptions of our 
business. The study, comprising in-
depth interviews with approximately 
50 institutional investors and 
research analysts, gives our 

ANNUAL REPORT 2016

82

Board and management a better 
understanding of investors’ views 
and concerns. It also helps the IR 
team identify areas for improvement 
in communications and disclosures. 
In the latest study, investors 
commented that they appreciate 
our geographically diverse operations 
and the balance between yield and 
growth characteristics. They also 
gave feedback on Singtel’s move into 
the digital space and the potential for 
mobile data in regional markets.

As good corporate governance 
also plays a vital role in shaping 
investor perceptions of the integrity, 
transparency, accountability 
and effi  ciency of a company, we 
regularly engage with corporate 
governance specialists. This allows 
us to keep abreast of the latest 
developments and ensures that we 
adopt best practices in key areas 
such as disclosure, board structure, 
shareholder rights and remuneration. 

INVESTOR RELATIONS 
RESOURCES
The Singtel IR website is the primary 
source for corporate information, 
fi nancial data and signifi cant business 
developments for the investment 
community. All new, material 
announcements are made available 
on the IR website immediately after 
they are released on the Singapore 
Exchange to ensure fair, equal and 
prompt dissemination of information. 
In addition, we continuously review 
the level of disclosure, to align it with 
global best practices and take into 
account new business initiatives. 

During our quarterly fi nancial 
results announcements, we issue 
a comprehensive set of materials, 
including detailed fi nancial 
statements, management discussion 
and analysis and presentation slides. 
Our management also hosts an 
investor conference call for analysts 

and investors on the day of our 
results announcement. A recording 
of the investor presentation 
webcast is posted on the IR website 
on the day we release our results. 
This is followed by a transcript of 
the conference call on the next 
work day.

SHAREHOLDER INFORMATION
As at 31 March 2016, Temasek 
Holdings (Private) Limited remained 
our largest shareholder, with 51% 
of issued share capital. Other 
Singapore shareholders held 
approximately 19%. In terms of 
geographical distribution, the US/
Canada and Europe accounted 
for approximately 15% and 11% of 
issued share capital respectively.

Share Ownership by 
Geography (1)

15.9B
shares (2)

Temasek Holdings

Singapore ex Temasek

US/Canada

Europe

Others

51%

19%

15%

11%

5%

IR CALENDAR EVENTS

Apr 2015
• Investor Meeting with 

Chairman and Board Members

• Conference Calls: Trustwave 

Acquisition

May 2015
• Non-deal Equity Roadshows, 
Singapore, Europe and the US

Jun 2015
• Singtel Investor Day, 

Singapore

• Non-deal Equity Roadshows, 

Kuala Lumpur

Jul 2015
• 23rd Annual General Meeting, 

Singapore

Aug 2015
• Non-deal Equity Roadshows, 

Singapore 

Sep 2015
• CLSA Investors Forum, 

Hong Kong

Nov 2015
• Morgan Stanley Asia Pacific 

Summit, Singapore

• Video Conferences with US 

and European Equity Investors

• Non-deal Equity Roadshows, 

Singapore

Notes:
(1)  These fi gures do not add up to 100% due 

to rounding.

(2)  As at 31 March 2016.

Feb 2016
• Non-deal Equity Roadshows, 

Singapore

83

SingAPoRe TelecoMMunicATionS liMiTed 

Risk Management  
Philosophy and Approach

We identify and manage risks to reduce the uncertainty associated with executing our 
business strategies and maximising opportunities that may arise. Risks can take various 
forms and can have material adverse impact on our reputation, operations, human 
resources and financial performance. 

We have established a comprehensive Risk Management Framework approved by our 
Risk Committee. The Risk Management Framework sets out the governance structure 
for managing risks, our risk philosophy, risk appetite and tolerance levels, our risk 
management approach as well as risk factors. 

In addition, our risk assessment and mitigation strategy are aligned with our Group 
strategy and is an integral part of the annual business planning and budgeting process.

Governance Structure for Managing Risks

THE BOARD

•	 Instils	culture	and	approach	for	risk	governance

•	 Provides	oversight	of	risk	management	systems	and	internal	controls

•	 Reviews	key	risks	and	mitigation	plans

•	 Determines	risk	appetite	and	tolerance

•	 Monitors	exposure

RISK COMMITTEE

AUDIT COMMITTEE

•	 Reviews	and	recommends	risk	strategy	and	policies

•	 Reviews	adequacy	and	effectiveness	of	the	Group’s	

•	 Oversees	design,	implementation	and	monitoring	of	

internal control framework

internal controls

•	 Oversees	financial	reporting	risk	for	the	Group

•	 Reviews	adequacy	and	effectiveness	of	the	Group’s	

•	 Oversees	internal	and	external	audit	processes

risk framework

•	 Monitors	the	implementation	of	risk	mitigation	plans

MANAGEMENT COMMITTEE

•	 Implements	risk	management	practices	within	all	business	units	and	functions

RISK MANAGEMENT COMMITTEE

•  Supports the Board and Risk Committee in terms of risk governance and oversight

•	 Sets	the	direction	and	strategies	to	align	corporate	risk	management	with	the	Group’s	risk	appetite	and	risk	tolerance	

•  Reviews the risk assessments carried out by the business units

•  Reviews and assesses risk management systems and tools

•  Reviews efficiency and effectiveness of mitigations and coverage of risk exposures

AnnuAl RePoRT 2016

84

Our Risk Philosophy

Our	risk	philosophy	and	risk	management	approach	are	based	on	three	key	principles:	

RISK CENTRIC CULTURE

•	 Set	the	appropriate	tone	at	the	top

•	 Promote	awareness,	ownership	 
and proactive management of  
key risks

•	 Promote	accountability

STRONG CORPORATE GOvERNANCE 
STRUCTURE

PROACTIvE RISK MANAGEMENT 
PROCESS

•	 Promote	good	corporate	governance

•	 Provide	proper	segregation	of	duties

•	 Clearly	define	risk-taking	

responsibility and authority

•	 Promote	ownership	and 

accountability for risk taking

•	 Robust	processes	and	systems	 
to	identify,	quantify,	monitor,	
mitigate and manage risks

•	 Benchmark	against	global	best	

practices

Risk Appetite

The	Board	has	approved	the	following	Risk	Appetite	Statement:

•	 The	Group	is	committed	to	delivering	value	to	our	shareholders	achieved	through	sustained	profitable	growth.	However,	
we shall not compromise our integrity, values and reputation by risking brand damage, service delivery standards, severe 
network disruption or regulatory non-compliance.

•	 The	Group	will	defend	our	market	leadership	position	in	Singapore	and	strengthen	our	market	position	in	Australia	and	in	

Asia	Pacific	through	our	regional	mobile	associates.	We	will	continue	to	pursue	business	expansion	in	the	emerging	markets,	
including	acquiring	controlling	stakes	in	the	associates,	and	actively	managing	the	risks.

•	 The	Group	is	prepared	to	take	measured	risks	to	seek	new	growth	in	the	digital	space	by	providing	global platforms	and	

enablers,	targeted	at	a	global	footprint,	while	leveraging	our	current	scale	and	core strengths.

•	 The	Group	targets	an	investment	grade	credit	rating	and	dividend	payout	policy	consistent	with	our	stated	dividend	policy	

and guidance.

Risk Management

We have established a rigorous 
and systematic risk review process 
to identify, monitor, manage 
and report risks throughout the 
organisation based on our risk 
philosophy. Management has 
primary responsibility for identifying, 
managing and reporting to the 
Board the key risks faced by 
the Group. Management is also 
responsible for ensuring that the 
risk management framework is 
effectively implemented within 
the business units. The business 
units are supported by specialised 
functions such as Regulatory, Legal, 
Environment, Insurance, Treasury 

and Credit Management in the 
management of risks. In addition, we 
regularly assess the environmental, 
social and governance risks that exist 
or emerge in our broader value chain 
and address them through various 
corporate sustainability initiatives.

Our	key	risk	management	activities	
also include scenario planning, 
business continuity/disaster recovery 
management and crisis planning 
and management. Close monitoring 
and control processes, including 
the use of appropriate key risk and 
key performance indicators, are 
implemented to ensure the risk 

profiles are managed within  
policy limits.

In addition, we have in place a formal 
programme of risk and control self-
assessment where line personnel 
are involved in the ongoing 
assessment and improvement of 
risk management and controls. The 
effectiveness of our risk management 
policies and processes is reviewed 
on a regular basis and, where 
necessary, improved. Independent 
reviews are conducted by third-
party consultants regularly to ensure 
the appropriateness of the risk 
management framework.  

85

SingAPoRe TelecoMMunicATionS liMiTed 

Risk Management  
Philosophy and Approach

The consultants also report key 
risks to the Board, as well as provide 
periodic support and input when 
undertaking specific risk assessments. 
Furthermore, the risk management 
processes facilitate alignment of our 
strategy and annual operating plan 
with	the	management	of	key risks.

Singtel’s	Internal	Audit	(IA)	carries	
out reviews and internal control 
advisory activities aligned to the 
key risks in our businesses. This 
provides independent assurance 
to	the	Audit	Committee	(AC)	on	
the	adequacy	and	effectiveness	
of our risk management, financial 
reporting processes, and internal 
control and compliance systems. In 
order to provide assurance to the 

Board,	the	CEOs	of	our	business	units	
submit an annual report on the key 
risks and mitigation strategies for 
their respective businesses to the 
Risk	Committee.	Our	Group	CEO	
and	Group	CFO	provide	a	written	
certification to the Board confirming 
the integrity of financial reporting, 
and the efficiency and effectiveness 
of the risk management, internal 
control	and	compliance systems	
every year.

In the course of their statutory audit, 
external auditors review our material 
internal controls to the extent of the 
scope laid out in their audit plans. 
Any material non-compliance and 
internal control weaknesses, together 
with their recommendations to 

address them, are reported to the 
AC.	Our	Management,	with	the	
assistance of Singtel IA, follows 
up	on	the	external	auditors’	
recommendations as part of their 
role in reviewing our system of 
internal controls.

The systems that are in place are 
intended to provide reasonable 
but not absolute assurance against 
material misstatements or loss, as 
well as ensuring the safeguarding 
of assets, the maintenance of 
proper accounting records, the 
reliability of financial information, 
compliance with applicable 
legislation, regulations and best 
practices, and the identification 
and management of business risks.

Risk Factors

Our	financial	performance	and	operations	are	influenced	by	a	vast	range	of	risk	factors.	Many	of	these	affect	not	just	our	
businesses, but also other businesses in and outside the telecommunications industry. These risks vary widely and many 
are	beyond	the	Group’s	control.	There	may	also	be	risks	that	are	either	presently	unknown	or	not	currently	assessed	as	
significant,	which	may	later	prove	to	be	material.	However,	we	aim	to	mitigate	the	exposures	through	appropriate	risk	
management strategies and internal controls.

The section below sets out the principal risk types, which are not listed in the order of significance.

•	 Economic	Risks

•	 Political	Risks

•	 Regulatory	Risks	and	 

Litigation Risks

•	 Competitive	Risks

•	 Expansion	Risks

•	 Project	Risks
•	 New	Business	Risks
•	 Technology	Risks
•	 Vendor/Supply	Chain	Risks
•	
•	 Cyber	Security	Risks

Information	Technology	Risks

•	 Breach	of	Privacy	Risks

•	

Financial	Risks

•	 Electromagnetic	Energy	Risks

•	 Network	Failure	and	 
Catastrophic Risks

•	 Talent	Management	Risks

ECONOMIC RISKS
Changes in domestic, regional and 
global economic conditions may 
have a material adverse effect on the 
demand for telecommunications, 
information	technology	(IT)	and	
related services, digital services, and 
hence, on our financial performance 
and operations.

The	global	credit	and	equity	markets	
have experienced substantial 

dislocations,	liquidity	disruptions	and	
market corrections. These and other 
related events have had a significant 
impact on economic growth as 
a	whole	and	consequently,	on	
consumer and business demand for 
telecommunications, IT and related 
services, and digital services.

Our	planning	and	management	
review processes involve the 
periodic monitoring of budgets 

and expenditures to minimise the 
risk of over-investment. Each of 
the business units in our Group 
has continuing cost management 
programmes to drive improvements 
in their cost structures. 

POLITICAL RISKS
Some of the countries in which 
Group Consumer operates have 
experienced or continue to 
experience political instability. 

AnnuAl report 2016

86

The continuation or re-emergence of 
such political instability in the future 
could have a material adverse effect 
on economic or social conditions 
in those countries, as well as on the 
ownership, control and condition of 
our assets in those areas.

Group Consumer is geographically 
diversified with operations in 
Singapore, Australia and the 
emerging markets. We work closely 
with the Management and our 
partners in the countries where 
we operate to leverage the local 
expertise, knowledge and ability.  
This way, we ensure compliance with 
the laws and are able to implement 
risk mitigation measures.

As Group Enterprise and Group 
Digital Life expand their products 
and services across the region and 
around the world, exposure to  
similar political risks may increase  
in the future.

REGULATORY RISKS AND 
LITIGATION RISKS
Regulatory Risks
Our businesses depend on licences 
issued by government authorities. 
Failure to meet regulatory 
requirements could result in fines or 
other sanctions including, ultimately, 
the revocation of licences. Our  
global operations are subject to 
extensive government regulations, 
which may impact or limit our 
flexibility to respond to market 
conditions, competition, new 
technologies or changes in cost 
structures. Governments may 
alter their policies relating to the 
telecommunications, IT, multimedia 
and related industries, as well as the 
regulatory environment (including 
taxation) in which we operate. Such 
changes could have a material 
adverse effect on our financial 
performance and operations. 

Our overseas investments are also 
subject to the risk of imposition of 
laws and regulations restricting the 
level, percentage and manner of 
foreign ownership and investment,  

as well as the risk of nationalisation.  
Any of these factors can materially 
and adversely affect our overseas 
investments.

Consumer Australia, Consumer 
Singapore and Group Enterprise are 
impacted by the implementation 
of national broadband networks 
in both Australia and Singapore. 
In Singapore, the Infocomm 
Development Authority of Singapore 
(IDA) has, in its implementation of 
the Next Generation Nationwide 
Broadband Network (Next Gen NBN), 
designed a structure to level the 
playing field to make the benefits 
of the Next Gen NBN available to all 
industry players. This has significantly 
altered the existing cost model of the 
industry and increased the level of 
competition from new entrants. In 
Australia, the government is currently 
undertaking a significant reform of 
the fixed-line telecommunications 
sector, including the rollout of a 
national broadband network (NBN) 
to be operated on a wholesale-only 
open access basis. It is possible 
that the Australian government’s 
regulatory reforms, including 
legislation and the deployed NBN and 
commercial transactions relating to 
the NBN, could ultimately lead to a 
sub-optimal or negative outcome  
for Optus.

Our operations are also subject to 
various other laws and regulations 
such as those relating to customer 
data privacy and protection, and 
workplace safety and health. Failure 
to meet these regulations may  
affect our business and/or our 
capacity to operate in line with our 
business objectives. 

We have access to appropriate 
regulatory expertise and staffing 
resources in Singapore and Australia 
and we work closely with the 
management and our partners in the 
countries we operate in. We closely 
monitor new developments and 
regularly participate in discussions 
and consultations with the respective 
regulatory authorities and the 

industry to propose changes and 
provide feedback on regulatory 
reforms and developments in  
the telecommunications and  
media industry.

Access to Spectrum
We may need to access additional 
spectrum to support both organic 
growth and the development of 
new services. Access to spectrum is 
critically important for supporting our 
business of providing mobile voice 
and data. The use of spectrum in 
most countries where we operate is 
regulated by government authorities 
and requires licences. Failure to 
acquire access to spectrum or new 
or additional spectrum on reasonable 
commercial terms or at all could have 
a material adverse effect on our core 
communications business, financial 
performance and growth plans. 

Litigation Risks
We are exposed to the risk of 
regulatory or litigation action by 
regulators and other parties. Such 
regulatory matters or litigation 
actions may have a material effect 
on our financial condition and 
results of operations. Examples of 
such litigation are disclosed in Notes 
to the Financial Statements under 
“Contingent Liabilities”.

We have put in place standard master 
supply agreements with vendors and 
implemented contract policies to 
manage contractual arrangements 
with vendors and customers. The 
policies provide the necessary 
empowerment framework for the 
CEOs, the Management Committee 
and the Board Committees to 
approve any deviations from the 
standard policies.

COMPETITIVE RISKS 
We face competitive risks in all 
markets and business segments in 
which we operate.

Group Consumer Business 
The telecommunications market 
in Singapore is highly competitive. 
As new players enter the market 

87

SingAPoRe TelecoMMunicATionS liMiTed 

Risk Management  
Philosophy and Approach

and	regulation	requires	Singtel	in	
Singapore to allow our competitors 
to have access to our networks, our 
market share in some segments 
and prices for certain products and 
services have declined. These trends 
may continue and intensify.

In the Australian mobile market, in 
addition to the incumbent operator,  
a number of participants are 
subsidiaries of international groups 
and operators, and have made large 
investments which are now sunk  
costs. We are, therefore, exposed 
to the risk of irrational pricing being 
introduced by such competitors. 
The consumer fixed-line services 
market continues to be dominated 
by the incumbent provider, which 
can leverage its scale and market 
position to restrict the development 
of competition. With the deployment 
of	the	Australian	NBN,	competition	is	
expected to increase as new operators 
enter the market.

The operations of our regional  
mobile	associates’	businesses	are	 
also	subject	to	highly	competitive	
market conditions. Their growth 
depends in part on the adoption of 
mobile data services in their markets. 
Some of these markets have and  
could continue to experience 
keen price competition for mobile 
data services from smaller-scale 
competitors, leading to lower 
profitability and potential loss of 
market share for our associates. 

Our	business	models	and	profits	 
are also challenged by disintermediation 
in the telecommunications industry by 
handset providers and non-traditional 
telecommunications service providers 
who provide multimedia content, 
applications and services directly  
on demand.

Group Consumer is focused on  
driving efficiencies and innovation  
via new technologies, products  
and services, processes and  
business models to meet evolving 
customer needs and strengthen 
customer loyalty.

Group Enterprise Business
Business	customers	enjoy	wide	
choices for many of our services, 
including fixed, mobile, cyber 
security, cloud, managed services, IT 
services and consulting. Competitors 
include multinational IT and 
telecommunications companies, 
while in Australia, the enterprise 
market is dominated by the 
incumbent.	The	quality	and	prices	
of	these	services	can	influence	
a	potential	business	customer’s	
decision.	Prices	for	some	of	these	
services have declined significantly 
in recent years as a result of capacity 
additions and price competition. 
Such price declines are expected  
to continue.

Group Enterprise continues to focus 
on offering companies comprehensive 
and integrated infocomm technology 
(ICT)	solutions	and	initiatives	to	
strengthen customer engagement. 
This includes broadening our solution 
portfolio to cover new areas of 
customer needs, such as cloud 
computing, cyber security and 
solutions for smart cities.

Group Digital Life Business
The digital products and services 
we offer are primarily in the areas of 
digital marketing, digital video and 
data analytics. Competition is intense, 
with	many	over-the-top	(OTT)	
operators offering services over the 
internet and facing low entry barriers. 

Group	Digital	Life	aspires	to	become	 
a significant global player in these 
areas by delivering distinctive 
products and services in the target 
markets	and	launching	them	quickly	
to capture market share. We will 
continue to harness our valuable 
assets, such as extensive customer 
knowledge, touch points, intelligent 
networks and the scale of our 
customer base. 

EXPANSION RISKS
Given the size of the Singapore and 
Australia markets, our future growth 
depends, to a large extent, on our 
ability to grow our overseas  

operations in both traditional and 
new digital services. This comes with 
considerable risks.

Partnership Relations 
The success of our strategic 
investments depends, to a large  
extent, on our relationships with, 
and the strength of our investment 
partners. There is no guarantee that 
we will be able to maintain these 
relationships or that our investment 
partners will remain committed to 
their partnerships.

Acquisition Risks 
We continually look for investment 
opportunities that can contribute to 
our expansion strategy and develop 
new	revenue	streams.	Our	efforts	are	
challenged by the limited availability 
of opportunities, competition from 
other potential investors, foreign 
ownership restrictions, government 
and regulatory policies, political 
considerations and the specific 
preferences of sellers. We face 
challenges arising from integrating 
newly	acquired	businesses	with	our	
own operations, managing these 
businesses in markets where we have 
limited experience and/or resources 
and	financing	these	acquisitions.	We	
also risk not being able to generate 
synergies	from	these	acquisitions,	
and	the	acquisitions	becoming	a	
drain on our management and  
capital resources.

The business strategies of some 
of our regional mobile associates 
involve expanding operations 
outside their home countries. These 
associates	may	enter	into	joint	
ventures and other arrangements 
with	other	parties.	Such	joint	
ventures and other arrangements 
involve risks, including, but not 
limited	to,	the	possibility	that	the joint	
venture or investment partner may 
have economic or business interests 
or goals that are not consistent with 
those of the associates. There is no 
guarantee that the regional mobile 
associates can generate total  
synergies and successfully build a 
competitive regional footprint.  

AnnuAl RePoRT 2016

88

We adopt a disciplined approach 
in our investment evaluation and 
decision-making process. Members 
of our management team are also 
directors on the boards of our 
associates. In addition to sharing 
network and commercial experience, 
best practices in the areas of 
corporate governance and financial 
reporting are also shared across  
the Group.

PROJECT RISKS
We incur substantial capital 
expenditure in constructing and 
maintaining our networks and IT 
systems infrastructure. These  
projects	are	subject	to	risks	
associated with the construction, 
supply, installation and operation of 
equipment	and	systems.

The	projects	that	we	undertake	as	
contractors to operate and maintain 
infrastructure	are	subject	to	the	risks	
of	increased	project	costs,	disputes	
and unexpected implementation 
delays, any of which can result 
in	an	inability	to	meet	projected	
completion dates or service levels.

Group	Enterprise	is	a	major	IT	service	
provider to governments and large 
enterprises in the region. We face 
potential	project	execution	risks	
when	projects	are	not	accurately	
scoped	or	the	quality	of	service	
performance	is	not	up	to	customers’	
specifications, resulting in over-
commitments to customers, as well 
as	inadequate	resource	allocation	
and scheduling. These can lead to 
cost	overruns,	project	delays	 
and losses.

We	have	a	project	risk	management	
framework in place, with processes 
for regular risk assessment, 
performance monitoring and 
reporting	of	key	projects.

NEW BUSINESS RISKS
Beyond our traditional carriage 
business in Singapore and Australia, 
we are venturing into new 
growth areas to create additional 
revenue streams, including mobile 

applications and services, pay-
TV,	regional	premium	OTT	video,	
content, managed services, cloud 
services, cyber security, ICT, data 
analytics and digital marketing. 
There is no assurance that we will be 
successful in these ventures, which 
may	require	substantial	capital,	new	
expertise, considerable process 
or systems changes, as well as 
organisational, cultural and mindset 
changes. These businesses may 
also expose us to new areas of risks 
associated	with	the media	and	online	
industries such as media regulation, 
content rights disputes and customer 
data privacy and protection.

As new businesses place new 
demands on people, processes and 
systems, we respond by continually 
updating our organisation structure, 
talent management and development 
programme, reviewing our policies 
and processes, and investing in  
new technologies to meet  
changing needs.

TECHNOLOGY RISKS
Rapid and significant technological 
changes are typical in the 
telecommunications and ICT 
industry. These changes may 
materially affect Group Consumer 
and	Group	Enterprise’s	capital	
expenditure and operating costs,  
as well as the demand for products  
and services offered by our  
business divisions.

Rapid technological advances may 
leave us with infrastructure and 
systems that are technically obsolete 
before the end of their expected 
useful life. Technological changes 
may also reduce costs and expand 
the capacities of new infrastructure. 
In the emerging markets in which 
our associates operate, regulatory 
practices, including spectrum 
availability, may not necessarily 
synchronise with the technology 
progression path and the market 
demand for new technologies.  
These	changes	may	require	us	to	
replace and upgrade our network 
infrastructure to remain competitive 

and, as a result, incur additional 
capital expenditure.

Each business group faces the 
ongoing risk of market entry 
by new operators and service 
providers	(including	non-
telecommunications	players)	
that, by using newer or lower-
cost technologies, may succeed 
in rapidly attracting customers 
away from established market 
participants.

Group Enterprise may incur 
substantial development expenditure 
to gain access to related or enabling 
technologies to pursue new growth 
opportunities in the ICT industry. 
The challenge is to modify our 
network infrastructure in a timely 
and cost-effective manner to 
facilitate such implementation, 
failing which this could adversely 
affect	our	quality	of	service,	
financial condition and results  
of operations.

We continue to invest in upgrading, 
modernising	and	equipping	our	
systems with new capabilities to 
ensure we continue to deliver 
innovative and relevant services to 
our customers. 

vENDOR/SUPPLY CHAIN RISKS
We rely on third-party vendors 
and their extended supply chain in 
many aspects of our business for 
various purposes, including, but 
not limited to, the construction 
of our network, the supply of 
handsets	and	equipment,	systems	
and application development 
services, content provision and 
customer	acquisition.	Accordingly,	
our operations may be affected 
by third-party vendors or their 
supply chain failing to perform their 
obligations. In addition, the industry 
is dominated by a few key vendors 
for	such	services	and	equipment,	
and any failure or refusal by a key 
vendor to provide such services or 
equipment,	or	any	consolidation	of	
the industry, may significantly affect 
our business and operations.

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SingAPoRe TelecoMMunicATionS liMiTed 

Risk Management  
Philosophy and Approach

We monitor our relationships with 
key vendors closely and develop 
new relationships to mitigate supply 
risks. We have in place a Sustainable 
Supply Chain strategy and framework 
to manage risks that may exist in our 
extended supply chain.

INFORMATION  
TECHNOLOGY RISKS
As our businesses and operations rely 
heavily on information technology, 
our Management has established the 
IT	&	Network	Security	Committee	
to provide oversight of all IT and 
network security risks, including 
cyber security threats and data 
privacy breaches. The committee 
comprises members from the various 
IT and network domains, meets  
bi-monthly and reports directly to 
the Risk Management Committee. 
The committee develops appropriate 
policies and frameworks to ensure 
information system security, reviews 
the	projects	and	initiatives	on	IT	and	
network security, and reviews any IT 
security incidents. 

We have established a Group 
Information	Security	Policy	for	
managing risks associated with 
information security in a holistic 
manner. The policy is developed 
based on industry best practices and 
is aligned with international standards 
such	as	ISO	27001.	The	policy	covers	
various aspects of IT risk governance, 
including change management, 
user access management, database 
configuration standards and disaster 
recovery planning, and provides the 
cornerstone for driving robust IT 
security controls across the Group. 

We	have	also	established	a	Project	
Management Methodology to ensure 
that new systems are developed with 
appropriate IT security controls and 
are	subject	to	rigorous	acceptance	
tests, including penetration testing, 
prior to implementation. 

CYBER SECURITY RISKS
The scale and level of sophistication 
of cyber security threats have 
increased especially in recent times. 

We are exposed to the risks of cyber 
attacks that can cause disruptions to 
the network and services provided 
to customers, and cyber thefts 
of sensitive and/or confidential 
information, resulting in litigations 
from customers and/or regulatory 
fines and penalties.

To combat these threats, we adopt a 
holistic approach by keeping abreast 
of the threat landscape and business 
environment as well as implementing 
a multi-layered security framework to 
ensure there are relevant preventive, 
detective	and	recovery	measures. 	

We have developed a security-first 
mindset and have been building 
our capabilities organically, through 
investments as well as partnerships 
with best-of-breed technology 
partners to meet the diverse needs 
of governments and enterprises. 
Group Enterprise has in September 
2015	completed	the	acquisition	
of Trustwave, a leading US cyber 
security services company which 
enhances	the	Group’s	cyber	security	
capabilities. To	date,	we	have	over	
1,800	security	professionals,	global	
security operations and engineering 
centres as well as a specialised 
team of ethical hackers and forensic 
experts in assisting various businesses 
to manage vulnerabilities and threats, 
achieve compliance with regulations 
and implement secure solutions.

BREACH OF PRIvACY RISKS
We seek to protect the privacy of 
our customers in our networks and 
systems infrastructure. Significant 
failure of security measures may 
undermine customer confidence and 
materially impact our businesses. We 
may	also	be	subject	to	the	imposition	
of additional regulatory measures 
relating to the security and privacy of 
customer data.

We have implemented security 
policies, procedures, technologies 
and tools designed to minimise the 
risk of privacy breaches. We have also 
established an escalation process 
for	major	incidents,	which	includes	

security breaches, to ensure timely 
response, internally and externally, to 
minimise impact.

FINANCIAL RISKS
The main risks arising from our 
financial assets and liabilities are 
foreign exchange, interest rate, 
market,	liquidity,	access	to	financing	
sources and increased credit risks. 
Financial markets continue to 
be volatile	and	this	may	heighten	
execution risk for funding activities 
and credit risk premiums for 
market participants.

We are exposed to foreign exchange 
fluctuations	from	our	operations	
and through subsidiaries as well 
as	associated	and	joint	venture	
companies operating in foreign 
countries. These relate to the 
translation of the foreign currency 
earnings and carrying values of our 
overseas operations. Additionally, a 
significant portion of associated and 
joint	venture	company	purchases	and	
liabilities are denominated in foreign 
currencies, versus the local currency 
of the respective operations. 
This gives rise to changes in cost 
structures and fair value gains or 
losses when marked to market.

We have established policies, 
guidelines and control procedures  
to manage and report exposure 
to	such	risks.	Our	financial	risk	
management is discussed further  
on	page	203	in	Note	36	to	the	
Financial Statements.

ELECTROMAGNETIC  
ENERGY RISKS
Health	concerns	have	been	raised	
globally about the potential exposure 
to	Electromagnetic	Energy	(EME)	
emissions through using mobile 
handsets or being exposed to mobile 
transmission	equipment.	While	there	
is no substantiated evidence of 
public health risks from exposure to 
the levels of EME typically emitted 
from mobile phones, perceived 
health risks can be a concern for 
our customers, the community, and 
regulators. The perceived health 

AnnuAl RePoRT 2016

90

significantly disrupt our operations, 
which may materially adversely 
affect our ability to deliver services to 
customers. 

We have business continuity plans 
as well as insurance policies in place. 
There is a defined crisis management 
and	escalation	process	for	our	CEOs	
and senior management to respond 
to emergencies and catastrophic 
events.	However,	our	inability	to	
operate our networks or customer 
support systems may have a material 
impact on our business.

TALENT MANAGEMENT RISKS
As we seek new avenues of growth, 
a key differentiator alongside access 
to innovation will be the ability to 
attract and sustain talent including 
new skills and capabilities. The loss 
of some or all of our key executives 
or the inability to attract or retain key 
talent, could materially and adversely 
affect our business.

We continue to invest in the skills of 
our existing workforce and build up 
our current and emerging capabilities 
through external professional hires 
and targeted campus recruitment. 
In order to develop and retain talent, 
we conduct regular skills assessment 
in the critical business areas and 
set out structured developmental 
roadmaps to fill new and emerging 
skills gaps. We have a targeted 
development approach to cultivate 
young, emerging and future technical 
and business leaders through formal 
learning activities, coaching and 
mentoring as well as providing  
critical experiences such as 
international assignments, rotations 
and	special	projects.	

risks can result in reduced demand 
for mobile communications or 
concerns with local communities on 
the implementation of new mobile 
base stations which may impact 
our mobile business and impact 
revenues or may lead to litigation. 
In addition, government controls 
may be introduced to address 
this perceived risk, restricting 
our ability to deploy our mobile 
communications networks.

We design and deploy our network 
to comply with the relevant 
Government-mandated standards 
for	exposure	to	EME.	Our	standards	
are based upon those recommended 
by the International Commission on 
NonIonizing	Radiation	Protection	
(ICNIRP),	which	is	a	related	agency	
of	the	World	Health	Organisation	
(WHO).	The	ICNRP	standards	are	
adopted by many countries around 
the world and are considered best 
practice. We continue to monitor 
research findings on EME, health 
risks and their implications on 
relevant standards and regulations. 

NETWORK FAILURE AND 
CATASTROPHIC RISKS
The provision of our services  
depends	on	the	quality,	stability,	
resilience and robustness of our 
networks and systems. We face the 
risk of malfunction of, loss of, or 
damage to, network infrastructure 
from natural or other uncontrollable 
events such as acts of terrorism.  
Some of the countries in which we 
and/or our regional mobile associates 
operate have experienced a number 
of	major	natural	catastrophes	over	
the years, including typhoons, 
droughts	and	earthquakes.	In	
addition, other events that are outside 
our control and/or our regional 
mobile associates, such as fire, 
deliberate acts of sabotage, industrial 
accidents, blackouts, terrorist attacks 
or criminal acts, could damage, cause 
operational interruptions or otherwise 
adversely affect any of the facilities 
and activities, as well as potentially 
cause	injury	or	death	to	personnel.	
Such losses or damage may 

91

SINGAPORE TELECOMMUNICATIONS LIMITED 

Sustainability

As Asia Pacifi c’s leading ICT service provider, Singtel recognises that our operations touch 
millions of people’s lives in the region. Unlocking the potential of connectivity and giving 
more people access to technology are some of the ways that our business achieves 
social good. Yet our commitment to the communities we serve runs even broader. As a 
responsible corporate citizen, we believe in building a truly sustainable business – one that 
is a genuine force for social inclusion, with a value chain based on the highest standards of 
ethics and governance.

Our four sustainability pillars revolve around the marketplace and customers, community, 
people and the environment.

Marketplace and Customers

Being accountable in the marketplace 
is central to everything we do. This
includes upholding important 
responsibilities when it comes to 
our customers.

To maintain their trust, we strive to 
meet the highest standards of ethical 
practices and transparency. We work 
closely with our business partners 
and supply chain to ensure that they 
too operate with care.

SAFEGUARDING PRIVACY
In today’s digital world, we 
understand that the privacy and 
safety of personal and corporate 
data are important to our customers. 
We are committed to respecting 
customer privacy and keeping their 
data secure. We strive to comply 
with local laws and regulations, and 
we have implemented additional 
measures to safeguard their 
information.

We extended these privacy measures 
to our key supplier partners in 2015, 
following an information security 
review of our off shore IT and contact 
centre operations. We are also 
enlarging our market footprint as a 
trusted provider of cyber security 

services and continuing to expand our 
capabilities to protect our government 
and enterprise customers.

SUSTAINABLE SUPPLY 
CHAIN MANAGEMENT
Supply chain responsibility is a key part 
of our sustainability strategy. During 
the year, we put in place a Sustainable 
Supply Chain Management strategy 
and framework, with the goal of 
becoming an industry leader in 
this area by 2020. In addition, we 
updated our Group Supplier Code of 
Conduct in Singapore and Australia 
to ensure alignment across the Group 
and with our UN Global Compact 
commitments. We have integrated the 
updated Code into all new supplier 
contracts worth more than $5,000 
since September 2015. 

Understanding the impact of how we 
source is essential to improving our 
sustainable practices. We initiated 
a Group-wide life cycle assessment 
as well as a social hotspot analysis. 
We will incorporate the knowledge 
we have gained into our ongoing 
materiality assessments, allowing us to 
sharpen our focus on the activities that 
are most relevant to us and our supply 
chain. We also developed a supplier 

assessment framework, which 
involved mapping our material 
risks, and are currently conducting 
supplier self-assessments of 
key sustainability impacts and 
compliance requirements 
across 75% of our supply chain 
expenditure. 

The key to solving these challenges 
lies in building greater sustainability 
awareness and expertise among 
our employees. During the year, we 
worked on embedding sustainable 
supply chain management practices 
into our existing policies and 
processes. We have also started 
to educate our employees to 
raise awareness and advocacy of 
sustainable procurement practices.

ANNUAL REPORT 2016

92

We presented a S$3 million cheque to Singtel Touching Lives Fund benefi ciaries and pledged our continued support to help children and young 
people with special needs.

Community

We are committed to empowering 
vulnerable children and youth, 
including persons with disabilities 
and special needs. Our fundraising 
eff orts in this area have now been 
expanded to include hiring and 
training opportunities for young 
people, to support their economic 
potential and capacity to make 
a diff erence. 

Our Singtel Enabling Innovation 
Centre (EIC), opened in October 2015 
at the Enabling Village, refl ects our 
belief that a truly integrated eff ort is 
needed to change lives. Through our 
expertise, advocacy and resources, 
we also seek to serve as a catalyst to 
advance the disability employment 
agenda and to encourage other 

technology innovators and 
entrepreneurs to step forward and 
contribute solutions to address 
social challenges. 

HOLISTIC SUPPORT FOR 
VULNERABLE CHILDREN 
AND YOUTH
Our programmes for vulnerable 
children and youth are designed to 
off er them holistic support. Since 
its launch in 2002, the Singtel 
Touching Lives Fund (STLF) has 
contributed more than S$33 million 
towards charitable organisations 
in Singapore. Our aim is to help 
benefi ciaries with special needs, 
or those experiencing fi nancial 
or social disadvantage, to lead 
productive and independent lives.

We are committed to advancing the 
disability employment agenda in 
Singapore as young people require 
concerted support beyond school. 
In June 2015, we became a founding 
member of the Singapore Business 
Network on DisAbility, together with 
like-minded companies. This group 
aims to promote and create fairer 
access to employment opportunities 
for persons with disabilities through 
networking and advocacy.

Preparing students in special 
education schools for their transition 
to the workforce is also the focus 
of our new Singtel EIC. In addition 
to donating S$1.99 million towards 
the facility and training curriculum 
development, our staff  volunteers 

Our Approach to Helping the Vulnerable and Disabled

Corporate 
philanthropy 
Singtel Touching 
Lives Fund

Collaboration 
and Advocacy 
National agencies, voluntary 
welfare organisations and 
corporate partners

Skills training
Singtel Enabling 
Innovation 
Centre

Social innovation
Singtel Social 
Innovation 
Programme

93

SingApore TelecommunicATionS limiTed 

Sustainability

contributed their specialist expertise 
in call centre management systems 
and training methods. The Singtel 
EIC has also brought in the latest 
assistive technologies from around 
the world, enabling persons with 
disabilities to contribute as equals  
at work.

In late 2015, the first intake of 
trainees graduated from the Singtel 
EIC call centre training programme 
and went on to take up hiring 
opportunities with Singapore-
based companies. Singtel hired two 
graduates, both wheelchair users, 
as webchat call centre officers in 
our Customer Operations unit. We 
anticipate employing more persons 
with disabilities as part of our 
workforce, and continue to work 
closely with disability experts to 
improve the accessibility of our call 
centre and office premises.

Beyond that, we actively seek 
to share innovations in disability 
employment and foster learning and 
collaboration throughout the region. 
This year, we arranged for national 
agency SG Enable, the owner-
operator of the Enabling Village, to 
visit our Thai associate AIS and study 
its call centre, which employs and 
supports persons with disabilities. 
We also referred Singapore 
government agencies involved in 
promoting disability employment to 
our partners in Australia.

Promoting social 
innovation for the 
disability sector
Singtel recognises the opportunities 
for the community sector to 
leverage technology and innovation. 
We also believe that we are 
well-positioned to nurture this 
ecosystem. As a strategic partner 
of the Enabling Change Social 
Innovation Programme, we advised 
entrepreneurs seeking unique 
solutions on ways to address the 
challenges faced by persons  
with disabilities.

This programme, involving 30 
aspiring entrepreneurs, was the first 
of its kind in Singapore. It included 
a 10-week community engagement 
phase and a five-month incubation 
phase designed to support the start-
up development process. Solutions 
were tailored to help people tackle 
mobility and hearing impairments, as 
well as caregiver support needs. Our 
contribution included seed funding 
for the shortlisted start-ups, logistical 
support and mentoring advice such 
as how to pitch ideas to venture 
capital firms.

creating emPowered and 
resPonsible digital citizens
As a market leader in mobile data 
and fixed broadband services, we 
recognise our responsibility to 
promote good digital citizenship. 
The internet brings with it a wealth 
of opportunities, but also inherent 
risks such as device and gaming 
addiction, inappropriate content and 
cyber bullying. We are implementing 
measures to safeguard the well-
being of users, particularly vulnerable 
children and youth, and promoting  
a safe online environment.

The Singtel Enabling Innovation Centre opened its doors in 2015 to help people with special needs 
and disabilities enhance their employability and lead independent lives.

ANNUAL REPORT 2016

94

High school students learn how to be digitally savvy through the Optus Digital Thumbprint programme’s classroom activities.

Our educational resources have been 
meticulously designed to empower 
people in Australia and Singapore to 
be responsible digital citizens. We 
have also created a teaching toolkit 
for special education schools – a fi rst 
in Singapore.

FOSTERING SOCIAL INCLUSION 
THROUGH VOLUNTEERING
Giving back to the community is 
integral to Singtel’s culture. We 
believe that volunteerism not only 
helps the communities we serve, 
but also develops character and 
empathy among our own people 
– including compassion for the 
vulnerable in our society.

Our commitment to these values 
is backed by practical measures 
such as one day of paid volunteer 
leave each year for every employee. 
We also encourage our business 
units to adopt VolunTeaming, a 
concept where employees volunteer 
together for a good cause.

As part of our community outreach, 
we treated about 800 students from 
the STLF benefi ciaries and other 
special education schools to a day 
of fun at our 3rd Singtel Carnival. 
1,500 staff  volunteers organised the 
carnival and supervised the food 
and games stalls. Our annual event 
is one of the largest in Singapore 

organised solely for children with 
special needs. 

This spirit of volunteering now 
extends to programmes that reach 
right across the region. In 2015, 
we held our fi rst skilled Overseas 
Volunteering Programme, the 
inaugural AIS-Singtel English 
Camp, in partnership with our Thai 
associate. About 30 volunteers from 
Singtel, Optus and AIS helped 34 
university students improve their 
English language skills. In Australia, 
our volunteering activities centre 
on mentoring vulnerable youth 
through the Australian Business and 
Community Network.

Our Digital Citizenship Initiatives

notAnoobie
Singapore’s fi rst cyber 
wellness information 
resource mobile application 
to help parents better 
understand and protect their 
children from online risks.

iZ HERO
Digital citizenship programme 
for Singapore primary schools.
More than 70,000 students 
from 170 schools participated 
in school assembly talks 
and iZHERO.net.

Optus Digital Thumbprint 
programme
Digital citizenship programme 
for Australian high school 
students. More than 30,000 
students participated in over 
1,000 sessions.

95

SINGAPORE TELECOMMUNICATIONS LIMITED 

Sustainability

People

We want to be an employer that 
our employees are proud to work 
for. To achieve this, we strive to 
create an equal opportunity working 
environment, and a diverse, inclusive 
and collaborative culture. Knowing 
that our employees are key to our 
successful transformation in this 
fast-changing digital world, we 
invest in our people so that they are 
empowered to grow both personally 
and professionally, to achieve their 
full potential.

CREATING A CARING 
AND SAFE ENVIRONMENT
We promote work-life balance for 
our employees by providing fl exible 
work arrangements and a wide range 

of benefi ts, including fl exi-family 
leave. They can use this time to 
celebrate special occasions or to 
take care of their family.

The health, well-being and safety 
of our workforce are our priority. 
We have been off ering free annual 
health screenings and chronic 
disease management counselling 
for all employees. This enables 
them to identify and address 
emerging health concerns early. 
They and their immediate family 
members also have access to the 
Work-Life Coaching Programme, a 
professional consultancy service for 
work-life and job-related issues, run 
by external consultants to ensure 

confi dentiality. In addition, the 
Singtel Recreation Club organises 
sports, recreational activities, 
workshops and talks to foster 
employee engagement 
and interaction. 

We actively promote workplace 
occupational health awareness 
among our employees to cultivate 
a positive workplace health and 
safety culture. We became a 
bizSAFE Partner in Singapore in 
2016, and we are also on track to 
certify our Workplace Safety 
and Health management system 
to the Singapore Standard 
SS506 certifi cation and 
OHSAS18001 standards. 

In celebration of SG50, Singtel staff  spent an unforgettable evening with their families at Universal Studios Singapore.

AnnuAl report 2016

96

1,500 Singtel staff took time off to arrange a day of fun at the 3rd Singtel Carnival for our beneficiaries and children from special education 
schools in Singapore.

Fostering diversity, 
inclusion and equal 
opportunity
Our global workforce is multicultural 
and multigenerational, consisting of 
more than 25,000 employees from 
over 90 different nationalities. This 
diversity is an innate strength that 
helps foster innovation across  
our organisation.

build a durable pipeline of female 
talent, increase awareness and 
advocacy of equity goals across the 
organisation, and provide women 
with networking, coaching and 
mentoring opportunities. We have 
also established a Female Diversity 
Committee within our Group 
Enterprise business to advance 
these objectives.

We actively promote diversity 
in the following four key areas: 
gender diversity, multigenerational 
workplace, multicultural awareness 
and differing abilities.

gender diversity
Female employees account for 37% of 
our workforce in Singapore and 33% 
in Australia. While women fill 30% of 
our upper and middle management 
positions overall, we recognise 
that more work needs to be done 
to improve the representation of 
female leaders, particularly at Optus. 
Our Women in Leadership Series is 
a multifaceted strategy designed to 

Multigenerational Workplace
We value the contributions of 
all employees, irrespective of 
their age. To ensure that we can 
continue to tap on the wealth of 
knowledge and expertise of mature 
workers, we signed a memorandum 
of understanding with the Union 
of Telecoms Employees of 
Singapore, committing to offer 
re-employment opportunities to 
all Singtel employees approaching 
the retirement age of 62. During 
the year, we re-employed 86 out 
of these 113 employees, bringing 
our current number of employees 
aged over 62 to 290. We encourage 

mature workers to upgrade and equip 
themselves with the skills to adapt as 
our industry rapidly evolves.

Multicultural awareness
Cultural diversity is part of the Singtel 
DNA. Throughout the year, we 
supported awareness and inclusion 
through multicultural celebrations and 
events. In Australia, for instance, we 
hold regular cultural days and fairs at 
our Optus campus in Sydney. These 
events bring together employees from 
different backgrounds to showcase 
their unique culture through food, 
performances and artworks.

differing abilities
We believe in harnessing our 
diverse workforce to serve the 
common good. Our most significant 
community initiatives are targeted 
at groups with special needs, such 
as persons with disabilities or those 
experiencing financial or social 
disadvantage. For more information, 
refer to the Community section on 
page 92.

97

SINGAPORE TELECOMMUNICATIONS LIMITED 

Sustainability

PROVIDING OPPORTUNITIES 
FOR OUR PEOPLE
We actively nurture employees early 
in their careers and seek to develop 
the next generation of leaders at all 
levels of our organisation. 

Our Cadet Scholarship Programme 
grooms high potential diploma 
students in the areas of network 
engineering, cyber security and 
customer experience. We off er a 
Management Associate Programme 
that gives top graduates and 
young professionals access to a 
structured developmental road 
map comprising meaningful job 
rotations, international assignments, 
leadership training, mentoring and 
career coaching. Another important 
initiative is SHINE, which off ers 
internships to promising young 

polytechnic and university students, 
and accelerated pathways for 
top performers.

High potential employees are given 
the chance to build critical skills 
and experiences through rotations, 
overseas assignments with a larger 
scope of responsibilities and to broaden 
their exposure through the Regional 
Leadership in Action and Game for 
Global Growth programmes. These 
initiatives aim to accelerate the creation 
of a strong regional talent pool across 
the Group – one that will support our 
future transformation goals.

With the rapid changes shaping 
our industry, it is important for our 
employees to keep abreast of the 
latest industry developments. We off er 
comprehensive training focused on 

our strategic priorities and business 
needs including cloud services, 
analytics, cyber security and smart 
cities. Employees are also encouraged 
to map out their own professional 
development plans. 

Our annual Learning Fiesta was once 
again a popular training initiative. 
Originally introduced in Singapore, 
we now off er the Learning Fiesta to 
employees in Australia, Malaysia, Hong 
Kong, the Philippines and the US. The 
event enables employees to listen 
to high-profi le speakers, visit new 
business showcases and participate 
in courses and activities. This year, we 
off ered more than 20,000 learning 
places across 170 courses.

In FY 2016, each employee received 
an average of 32.2 hours of training. 

Employee Diversity by Gender and Age

Gender Distribution

Age Distribution

Singtel

Optus

SingtelSingtel

Optus

MALE

FEMALE

MALE

FEMALE

63%

37%

67%

33%

  < 30 years old

  30 – 49 years old

  ≥ 50 years old

22%

60%

18%

  < 30 years old

  30 – 49 years old

  ≥ 50 years old

24%

60%

16%

ANNUAL REPORT 2016

98

Environment

Minimising our environmental 
impact is fundamental as we 
expand our network infrastructure 
to meet the ever-growing demand 
for communications services. As a 
recognised leader in this area, we 
strive to operate as effi  ciently as 
possible and pursue sustainable 
practices throughout our product and 
supply chain. Our longer-term goal 
is also to make our networks resilient 
to the eff ects of climate change.

Addressing Climate Change
In 2015, we commissioned an 
in-depth study on the impact of 
climate change across our operations 
and established an action plan to 
mitigate major impacts. This will 
support our eff orts to minimise 
our carbon footprint and improve 
operational effi  ciency as our overall 
energy consumption increases along 
with our growing network.

Integrating the Environment 
Agenda into our Value Chain
Our 2020 Sustainable Supply Chain 
Management strategy is designed 
to ensure our business continues 

to grow in harmony with the 
environment. For more information, 
refer to the Sustainable Supply Chain 
Management section on page 91.

Engaging our Stakeholders
In Australia, where natural disasters 
are prevalent, Optus is a founding 
member of the Australian Business 
Roundtable for Disaster Resilience 
and Safer Communities. The 
organisation promotes greater 
collaboration between government, 
industry and communities. It also 
conducts research and recommends 
policy changes that will improve 
society’s capacity to withstand future 
climate change disasters.

Product and Resource 
Responsibility
Our commitment to sustainability 
extends to all aspects of our product 
and supply chain. To minimise 
electronic waste, we wipe data and 
resell, reuse or recycle employees’ 
electronic devices that are no longer 
needed. We also off er a buyback 
scheme to encourage customers 
to trade-in used devices. Our retail 

shops in Singapore and Australia off er 
recycling facilities, making it easy 
for customers to drop off  products 
and accessories that have reached 
end-of-life.

OUR PERFORMANCE
Our environmental initiatives have 
received international recognition. We 
were ranked 81st globally and 1st among 
all Singapore companies in Newsweek 
Green Rankings’ Top Green Companies 
in the World 2015. The rankings assess 
the overall environmental performance 
of the 500 largest publicly traded 
companies globally. 

We also received a score of 93C in the 
Carbon Disclosure Project’s Climate 
Performance Leadership Index 2015, 
an improvement on our score of 80B 
in 2014. This index recognises the 
achievements and transparency of 
international companies in their 
eff orts to tackle climate change. Our 
score demonstrates the signifi cant 
progress we have made in disclosure 
and reporting despite our growing 
energy requirements as a result of 
network expansion.

Our Environmental Strategy  

Addressing 
climate 
change

Integrating the 
environment agenda 
into our value chain

Engaging 
our stakeholders

Product and 
resource 
responsibility

99

SINGAPORE TELECOMMUNICATIONS LIMITED 

Sustainability

KEY ENVIRONMENTAL AND SOCIAL PERFORMANCE INDICATORS

Singapore

Australia

2016

2015

2016

2015

Energy use (GJ)

1,379,633

1,338,904

1,657,262

1,533,360

Carbon footprint (tonnes CO2e)

174,112

176,454

420,827

402,750

Water use (cubic metres)

756,398

691,389

70,254(2)

60,422 (2)

Environmental 
Performance (1)

Hazardous and non-hazardous waste  
(tonnes)

4,223

4,015

1,503

1,425

Employee turnover (%)

14.5

13.8

10.7

10.4

Employee turnover by gender (%)

– Male

– Female

Average training hours per employee

Employee health and safety (3)

– Workplace injury rate 

– Accident frequency rate  

– Accident severity rate

14.7

14.3

32.5

1.3

0.6

5.9

14.7

12.3

33.3

1.4

0.6

7.4

9.1

14.1

31.7

1.3

0.8

12.9

9.0

13.0

32.2

2.6

1.3

18.6

Community investment ($ million)

S$26.7 (4)

S$10.1

A$8.7

A$8.7

Total volunteering hours 

15,981

15,109

16,194

11,505

Social 
Performance 
– People

Social 
Performance 
– Community

Notes:
(1)  Please refer to the Singtel Group and Optus sustainability reports for the reporting scope of environmental indicators.
(2)  Water use for Optus Sydney Campus only.
(3)  Workplace Safety and Health (WSH) metrics have been realigned to the International Labour Organization (ILO) definitions. FY 2015 data has been restated.
(4)  This factored in a partial allocation of a one-time donation of S$20 million to National Gallery Singapore. The London Benchmarking Group (LBG) 

guidelines are used to assess and calculate Singtel’s community investment.

For more details, refer to our SUSTAINABILITY REPORT at: singtel.com/sr2016

AnnuAl report 2016

100

Group Five-year Financial Summary

Income Statement (S$ million)
Group operating revenue 
  Singtel
  Optus
  Optus (A$ million)

Group EBITDA 
  Singtel
  Optus
  Optus (A$ million)

Share of associates’ pre-tax profits 
Group EBITDA and share of associates’ pre-tax profits 
Group EBIT
Net profit after tax
Underlying net profit (1)
Exchange rate (A$ against S$) (2)

Cash Flow (S$ million)
Group free cash flow (3)
  Singtel 
  Optus
  Optus (A$ million)
  Associates’ dividends (net of withholding tax)
Cash capital expenditure

Balance Sheet (S$ million)
Total assets 
Shareholders’ funds
Net debt 

Key Ratios
Proportionate EBITDA from outside Singapore (%)
Return on invested capital (%) (4)
Return on equity (%)
Return on total assets (%)
Net debt to EBITDA and share of associates’  
  pre-tax profits (number of times)
EBITDA and share of associates’ pre-tax profits  
  to net interest expense (number of times)

Per Share Information (S cents)
Earnings per share - basic
Earnings per share - underlying net profit (1)
Net assets per share
Dividend per share - ordinary

“Singtel” refers to the Singtel Group excluding Optus.

Financial Year ended 31 March

2016

2015

2014

2013

2012

16,961
7,663
9,298
9,115

5,013
2,187
2,825
2,771

2,791
 7,804 
 5,655 
3,871
3,805
1.020

2,718
869
631
617
1,218
1,930

17,223
7,348
9,875
8,790

5,091
2,146
2,945
2,624

2,579
 7,670 
 5,508 
3,782
3,779
1.123

3,549
1,379
1,070
976
1,100
2,238

16,848
6,912
9,936
8,466

5,155
2,223
2,932
2,502

2,201
 7,357 
 5,224 
3,652
3,610
1.174

3,249
1,181
1,020
903
1,048
2,102

18,183
6,732
11,451
8,934

5,200
2,147
3,053
2,381

2,106
 7,306 
 5,178 
3,508
3,611
1.282

3,759
1,491
1,367
1,068
900
2,059

18,825
6,551
12,275
9,368

5,219
2,128
3,091
2,357

2,005
 7,223 
 5,222 
3,989
3,676
1.310

3,462
1,170
1,451
1,111
841
2,249

43,566
24,989
9,142

42,067
24,733
7,963

39,320
23,868
7,534

39,984
23,965
7,477

40,418
23,428
7,860

 74 
11.7
15.6
9.0

1.2

25.3

24.29
23.88
156.8
17.5

 74 
 12.1 
 15.6 
 9.3 

 73 
 11.6 
 15.3 
 9.2 

 1.0 

 1.0 

 75 
 11.8 
 14.8 
 8.7 

 1.0 

 76 
 12.0 
 16.7 
 10.0 

 1.1 

 29.2 

 28.7 

 24.5 

 20.7 

23.73
23.71
155.2
17.5

22.92
22.65
149.8
16.8

22.02
22.66
150.4
16.8

25.04
23.07
147.1
15.8

Notes:
(1)   Underlying net profit is defined as net profit before exceptional items. 
(2)   Average A$ rate for translation of Optus’ operating revenue.
(3)   Free cash flow refers to cash flow from operating activities, including dividends from associates, less cash capital expenditure.  
(4)   Return on invested capital is defined as EBIT (post-tax) divided by average capital.

101

SinGApore telecommunicAtionS limited 

Group Five-year Financial Summary

FIve-YeaR FINaNCIal RevIew 

FY 2016 
The Group delivered a strong 
performance with resilient core 
business and robust contributions from 
associates. Operating revenue was 
S$16.96 billion, 1.5% lower than FY 2015 
with the Australian Dollar declining 
a steep 9% against the Singapore 
Dollar and the impact of lower mobile 
termination rates in Australia from  
1 January 2016. In constant currency 
terms, operating revenue would have 
grown 4.1% across all business units with 

FY 2015 
The Group delivered a strong set of 
results. Operating revenue was S$17.22 
billion, 2.2% higher than FY 2014 with 
growth across all the business units. 
EBITDA was S$5.09 billion, 1.3% lower 
than FY 2014 with the Australian Dollar 
weakening 4% against the Singapore 
Dollar. In constant currency terms, 
revenue grew 4.8% and EBITDA rose 
1.3% despite operating losses from the 
digital businesses. 

FY 2014
The Group delivered a resilient 
performance against industry challenges 
and currency headwinds. Operating 
revenue was S$16.85 billion, 7.3% lower 
than FY 2013 with the Australian Dollar 
weakening 8% against the Singapore 
Dollar. In constant currency terms, 
revenue would have declined 2.3% with 
lower mobile revenue in Australia and a 
cautious business climate. EBITDA was 

FY 2013 
The Group delivered resilient earnings 
amid significant industry changes while 
it continued to invest in transformational 
initiatives to drive long-term growth. 
Operating revenue was S$18.18 billion, 
3.4% lower than FY 2012 due to lower 
mobile revenue in Australia. EBITDA 
was stable at S$5.20 billion. In constant 
currency terms, revenue declined 2.1% 

first time contribution from Trustwave, 
Inc. (a newly acquired cyber security 
business). EBITDA was S$5.01 billion, 
1.5% lower than FY 2015 and in constant 
currency terms, would have increased 
4.1% with strong cost management. 

The associates’ pre-tax contributions 
rose 8.2% to S$2.79 billion and would 
have increased 9.7% excluding the 
currency translation impact. The 
regional mobile associates recorded 

strong customer growth and robust 
mobile data growth, with higher 
earnings from Telkomsel and Globe 
offsetting the decline in Airtel. 

Underlying net profit was stable and 
net profit including exceptional items 
increased 2.4% to S$3.87 billion. In 
constant currency terms, underlying 
net profit and net profit would have 
increased 4.0% and 5.5% respectively 
from FY 2015. 

The associates’ pre-tax contributions 
rose strongly by 17% to S$2.58 billion 
and would have increased 21% excluding 
the currency translation impact. The 
regional mobile associates registered 
strong customer growth and increased 
demand for mobile data services, with 
earnings growth led by Airtel India, 
Telkomsel and Globe. 

Underlying net profit grew 4.7% and 
net profit including exceptional items 
increased 3.5% to S$3.78 billion. In 
constant currency terms, underlying 
net profit and net profit would have 
increased 7.5% and 6.2% respectively 
from FY 2014. 

relatively stable at S$5.16 billion but in 
constant currency terms increased 4.5% 
on an improved cost structure. 

The associates’ pre-tax contributions 
rose 4.5% to S$2.20 billion and would 
have increased strongly by 13% 
excluding the currency translation 
impact. The regional mobile associates 
registered robust demand for mobile  

data services, with earnings growth led 
by Airtel India. 

Underlying net profit was stable at 
S$3.61 billion and net profit including 
exceptional items grew 4.1% to S$3.65 
billion. In constant currency terms, 
underlying net profit and net profit 
would have increased 5.9% and 10% 
respectively from FY 2013. 

but EBITDA grew 1.0% on strong cost 
management. 

The associates’ pre-tax contributions 
grew 5.0% to S$2.11 billion. Excluding 
the currency translation impact, the 
associates’ pre-tax contributions 
would have increased strongly by 12%, 
underpinned by double-digit earnings 
growth from Telkomsel and AIS. 

Underlying net profit was S$3.61  
billion, a decrease of 1.8% from  
FY 2012. Excluding currency translation 
impact, underlying net profit rose  
1.4%. Including net exceptional losses 
mainly from disposal of Warid Pakistan 
in FY 2013, net profit declined 12% to 
S$3.51 billion in FY 2013. 

FY 2012 
The Group’s operating revenue grew 
4.2% to S$18.83 billion, underpinned  
by robust mobile growth in Singapore 
and 4% appreciation of the Australian 
Dollar. EBITDA rose 1.9% to S$5.22 billion 
with lower customer acquisition costs  
in Australia partly offset by investments 
in TV content and higher mobile 
customer acquisition and retention  
costs in Singapore. 

The associates’ pre-tax contributions 
declined 6.4% to S$2.01 billion. 
Excluding currency translation impact, 
the associates’ pre-tax contributions 
would have been stable, driven by strong 
profit growth from Telkomsel and AIS 
partially offset by Airtel’s lower earnings. 

Underlying net profit was S$3.68 billion, 
3.3% lower than FY 2011. Including net 

exceptional gains and an exceptional 
net tax credit of S$270 million on the 
increase in value of assets transferred 
to an associate, net profit grew 4.3% to 
S$3.99 billion. 

 
AnnuAl report 2016

102

Group Value Added Statements

GRouP value added StateMeNtS

PRoduCtIvItY data

 FY 2016
S$ million

FY 2015 
S$ million

value added  
(S$ million)

value added from:
  Operating revenue 
  Less: Purchase of goods and services 

  Other income 

Interest and investment income (net)
  Share of results of associates (post-tax)
  Exceptional items 

16,961
(9,639)
7,322

148
95
2,027
(45)
2,225

17,223
(9,816)
7,407

151
93
1,735
15
1,994

total value added

9,547

9,401

distribution of total value added 
  To employees in wages, salaries and benefits
  To government in income and other taxes
  To providers of capital on: 

- Interest on borrowings 
- Dividends to shareholders 

2,457
723

360
2,789

2,467
679

309
2,678

total distribution 

6,329

6,133

Retained in business  
  Depreciation and amortisation 
  Retained profits
  Non-controlling interests 

2,149
1,082
(13)
3,218

2,161
1,104
3
3,268

total value added 

9,547

9,401

average number of employees 

25,423

22,967

2016

2015

9,547

9,401

146

value added PeR eMPloYee  
(S$’000)

2016

2015

376

409

33

value added PeR dollaR  
oF eMPloYMeNt CoStS 
(S$)

2016

2015

3.88

3.81

0.07

value added PeR dollaR  
oF tuRNoveR  
(S$)

2016

2015

0.56

0.55

0.01

 
 
 
 
 
 
 
 
103

SinGApore telecommunicAtionS limited 

management discussion 
and Analysis

GRouP

operating revenue
(exclude mobile termination rates decline) (2)

eBItda 

EBITDA margin

Financial Year ended 31 March

2016
(S$ miIlion)

2015
(S$ miIlion)

16,961
17,149

 17,223 
 17,223

5,013

5,091

29.6%

29.6%

Share of associates' pre-tax profits

2,791

 2,579 

eBItda and share of associates' pre-tax profits 

7,804

 7,670 

eBIt
(exclude share of associates' pre-tax profits)

Net finance expense

5,655
2,864

 5,508 
 2,929 

 (265)

 (216)

Taxation
(exclude tax credit on transfer of assets to associate)

 (1,597)
 (1,597)

underlying net profit (3)
(exclude one-off tax credit and Trustwave) (4)

Underlying earnings per share (S cents)

Exceptional items (post-tax)

Net profit 
(exclude one-off tax credit and Trustwave) (4)

3,805
3,832

23.9

66

3,871
3,898

 (1,510)
 (1,549)

 3,779 
 3,740

23.7 

 3 

 3,782 
 3,743

Basic earnings per share (S cents)

24.3

 23.7 

Share of associates' post-tax profits 

1,930

 1,763 

‘’Associate’’ refers to either an associate or a joint venture as defined under Singapore Financial Reporting Standards. 

“@” denotes more than 500%.

Change in 
constant 
currency (1)

(%)

Change (%)

-1.5
-0.4

-1.5

8.2

1.7

2.7
-2.2

22.4

5.8
3.1

0.7
2.4

0.7

@

2.4
4.1

2.4

9.5

4.1
5.2

4.1

9.7

6.0

6.0
2.8

28.6

8.8
6.1

4.0
5.8

4.0

@

5.5
7.3

5.5

11.2

Notes:
(1)  Assuming constant exchange rates for the Australian Dollar and/or regional currencies (Indian Rupee, Indonesian Rupiah, Philippine Peso and Thai Baht) 

from the previous year ended 31 March 2015 (FY 2015). 

(2)  Mobile termination rates in Australia declined effective from 1 January 2016. The decline reduced the Group’s operating revenue by S$188 million  

(A$186 million), with minimal impact on profitability. 

(3)  Underlying net profit refers to net profit before exceptional items.
(4)  Adjusted to exclude Trustwave, Inc. (acquired in September 2015) and a one-off tax credit of S$39 million arising from certain property, plant and 

equipment transferred to an associate recorded in FY 2015.  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AnnuAl report 2016

104

For the year ended 31 March 2016, 
the Group performed in line with the 
guidance issued during the year. 
Net profit grew 5.5% in constant 
currency terms. The strong underlying 
performance was underpinned 
by its core business driven mainly 
by higher mobile data usage and 
improved contributions from the 
associates. With the Singapore Dollar 
strengthening against the Australian 
Dollar and the Indonesian Rupiah, 
net profit increased 2.4% to S$3.87 
billion. Foreign currency movements 
negatively impacted net profit by 
S$119 million or 3.1 percentage points.

Trustwave, Inc. (“trustwave”), a newly 
acquired cyber security company 
consolidated from 30 September 
2015, contributed S$147 million in 
operating revenue, S$5 million in 
EBITDA and S$27 million in net loss (1). 

The Group’s operating revenue 
declined by 1.5% to S$16.96 billion, 
impacted by the steep decline of 9% 
of the Australian Dollar against the 
Singapore Dollar and the reduction 
in mobile termination rates (2) in 
Australia from 1 January 2016 (“rates 
change”). In constant currency terms, 
operating revenue would have  
grown 4.1% with growth across  
all the business units. The rates 
change reduced operating revenue 
by S$188 million but had minimal 
impact on profitability. EBITDA 
declined by 1.5% to S$5.01 billion but 
in constant currency terms would 
have increased by 4.1%. 

Group Consumer, the largest business 
segment, recorded lower operating 
revenue of 4.6%. In constant currency 
terms, operating revenue would have 
grown 3.0% (up 4.8% excluding the 
rates change). EBITDA declined 1.2% but 
in constant currency terms would have 
increased strongly by 6.5% on strong 
cost management, and lower mobile 
customer acquisition and retention 
costs in Australia as penetration of 
device repayment plans increased.   

Group Enterprise saw operating 
revenue grew 1.3% while EBITDA 
declined 3.9%. Excluding fibre rollout 

and Trustwave, both revenue and 
EBITDA were stable. On the same 
basis and in constant currency terms, 
operating revenue grew 2.8% and 
EBITDA remained stable. The higher 
operating revenue, despite the 
slowing global economy, was driven 
mainly by higher ICT and cloud 
services. 

Group Digital Life, which is focused 
on digital marketing, regional 
premium OTT video and data 
analytics, saw a 45% rise in operating 
revenue with full year’s contributions 
from Kontera and Adconion acquired 
in September 2014 quarter. Negative 
EBITDA fell 24% reflecting increased 
scale at Amobee and effective cost 
management, partially offset by 
HOOQ’s start-up losses.

The Group and its associates continued 
to record strong customer growth. 
The combined mobile customer  
base reached 605 million (3) in  
25 countries as at 31 March 2016,  
up 8.8% or 49 million from a year ago.

The associates’ post-tax 
contributions rose 9.5% to S$1.93 
billion, and would have increased 11% 
excluding the currency translation 
impact with higher earnings at 
Telkomsel and NetLink Trust. 

Telkomsel registered strong double-
digit growth in revenue and EBITDA, 
boosted by higher voice and data 
usage. Airtel delivered higher revenue 
and EBITDA on strong data growth, 
improved operating margins in India 
as well as lower fair value losses 
in Africa but was offset by higher 
depreciation and spectrum related 
costs in India. AIS reported stable 
service revenue while earnings were 
impacted by 2G to 3G/4G handset 
migration costs. Globe saw higher 
profits from growth in mobile data 
and customer base, as well as  
one-off gains. NetLink Trust recorded 
higher revenue and EBITDA boosted 
by increased fibre penetration  
in Singapore.  

Depreciation and amortisation 
charges were stable and would have 

increased 5.9% in constant currency 
terms. The higher depreciation 
charges was due to increased 
investments in mobile networks 
including LTE deployment in 
Singapore and Australia, while 
amortisation charges increased due 
mainly to acquired intangibles 
 of Trustwave and investments  
in spectrums. Consequently,  
the Group’s EBIT rose 2.7% to  
S$5.66 billion, and would have been 
up 6.0% in constant currency terms. 

Net finance expense increased 22% 
on higher interest expense from 
higher average borrowings as well 
as an increase in interest rates. 

Excluding the one-off tax credit last 
year, the increase in tax expense 
of 6.1% in constant currency terms 
reflected higher profits and higher 
withholding taxes on increased 
dividends from the associates. 

Underlying net profit was stable 
at S$3.81 billion and in constant 
currency terms would have 
increased 4.0% from last year. 
Excluding Trustwave and the one-
off tax credit last year, underlying 
net profit was up 2.4%, and would 
have increased 5.8% in constant 
currency terms. 

The Group’s net exceptional gain of 
S$66 million mainly comprised gains 
on sale of venture investments of 
S$96 million and share of Airtel’s net 
exceptional gains of S$65 million, 
partially offset by the currency 
translation loss of S$56 million 
reclassified from equity upon loss 
of joint control of PBTL, and various 
one-off charges. 

The Group has successfully 
diversified its earnings base through 
its expansion and investments in 
overseas markets. Hence, the Group 
is exposed to currency movements. 
On a proportionate basis if the 
associates are consolidated line-by-
line, operations outside Singapore 
accounted for three-quarters of  
both the Group’s proportionate 
revenue and EBITDA.

Notes:
(1)   Include amortisation of acquired intangibles and acquisition financing cost. 
(2)   Mobile termination rates are the fees charged by mobile operators for receiving calls and messages on their networks. 
(3)   Excluding Pacific Bangladesh Telecom Limited (“PBtl”) (45%-owned joint venture) which the Group has ceased to exercise joint control.

                                                        
                                                        
                                                        
105

SinGApore telecommunicAtionS limited 

management discussion 
and Analysis

Financial Year ended 31 March

2016
(S$ miIlion)

2015 (1)

(S$ miIlion)

Change (%)

Change in 
constant 
currency (2)

(%)

BuSINeSS SeGMeNt

operating revenue
- Group Consumer 
- Group Enterprise 
Core Business 
- Group Digital Life 

Group 

eBItda 
- Group Consumer 
- Group Enterprise 
Core Business 
- Group Digital Life 
- Corporate 

Group 

EBITDA margin
- Group Consumer 
- Group Enterprise 
- Group 

eBIt (exclude share of associates' pre-tax profits)
- Group Consumer 
- Group Enterprise 
Core Business 
- Group Digital Life 
- Corporate 

10,110
6,397
  16,507 
454

 10,593 
 6,318 
 16,910 
313 

16,961

17,223 

  3,266 
  1,959 
  5,225 
(137)
(76)

 3,304 
 2,039 
 5,343 
(180)
(73)

-4.6
1.3
-2.4
45.3

-1.5

-1.2
-3.9
-2.2
-24.0
4.3

5,013

5,091 

-1.5

32.3%
30.6%
29.6%

1,811
1,337
3,148
(206)
(79)

31.2%
32.3%
29.6%

 1,816 
 1,426
 3,242 
 (237)
 (75)

-0.3
-6.2
-2.9
-13.4
4.9

Group 

2,864

2,929 

-2.2

Group enterprise (exclude fibre rollout and maintenance  

and trustwave)
- Operating revenue 
- EBITDA 
- EBIT

6,250
1,954
1,353

 6,237 
 1,971 
 1,359 

0.2
-0.9
-0.4

Notes:
(1)  From 1 April 2015, certain businesses which were previously within Group Digital Life were transferred to Singapore Consumer. To better reflect the 

underlying performance, the results for FY 2015 have been restated on the basis that the businesses were transferred from 1 April 2014 (instead of  
1 April 2015). The comparatives have also included changes arising from refinement of revenue/ cost allocation methodologies between the various 
business units in Singapore. 

(2)  Assuming constant exchange rate for the Australian Dollar from FY 2015. 

3.0
3.9
3.3
45.6

4.1

6.5
-2.4
3.1
-24.6
4.3

4.1

6.9
-5.2
1.6
-13.9
4.9

2.8

2.8
0.7
0.6

AnnuAl report 2016

106

GRouP CoNSuMeR
Group Consumer contributed 60% 
(FY 2015: 61%) and 65% (FY 2015: 
65%) to the Group’s operating 
revenue and EBITDA respectively. 

Operating revenue in Singapore 
Consumer declined 1.7% mainly 
from lower Equipment sales and 
International Telephone, partially 
mitigated by higher Mobile 
Communications and Fixed 
Broadband. Equipment sales fell 
8.8% on lower volume of handset 
sales, while International Telephone 
fell 8.9% due to lower call traffic 
on continued data substitution and 
increased popularity of OTT apps. 
Mobile Communications, which 
contributed 54% of Singapore 
Consumer’s revenue, rose 1.6% in 
a highly competitive market with 
robust data growth offsetting 
continued declines in roaming, 
voice and SMS usage. Consumer 
Home revenue, comprising fixed 
broadband and voice, as well as 
Singtel TV, was stable. With strong 
cost management, both EBITDA and 
EBIT increased 6.7%. 

Australia Consumer’s operating 
revenue gained 4.2% (up 6.7% 
excluding the rates change) on 
growth in both mobile and fixed 
services. EBITDA rose 6.1% with lower 
customer acquisition and retention 
costs as penetration of device 

repayment plans increased. Including 
higher depreciation and amortisation 
charges, EBIT grew 6.5%. Mobile 
service revenue declined 2.1% but 
would have been up 2.0% excluding 
the rates change with postpaid 
handset customer gains. Mass 
Market Fixed revenue grew 4.4% 
with increase in National Broadband 
Network (NBN) revenue and higher 
take-up of Pay TV. 

GRouP eNteRPRISe 
Group Enterprise contributed 38%  
(FY 2015: 37%) and 39% (FY 2015: 
40%) to the Group’s operating 
revenue and EBITDA respectively. 

Trustwave contributed S$147 million 
in operating revenue, S$5 million in 
EBITDA and S$16 million in negative 
EBIT including the amortisation of 
acquired intangibles. 

In constant currency terms, operating 
revenue grew 3.9%, due in part to 
contribution from Trustwave, while 
EBITDA was down 2.4%.

In Singapore (4), excluding fibre rollout 
and Trustwave, operating revenue 
increased 3.1% driven by strong 
growth in ICT and Data and Internet 
services, partly offset by decline in 
International Telephone revenue. 
ICT services, which contributed 
42% of operating revenue, grew 
13% driven by increased provision 

of infrastructure services, greater 
G-cloud adoption by Singapore 
government agencies and higher 
application development and 
maintenance projects. 

In Australia, operating revenue was 
up 2.0%. Strong growth from ICT 
services mitigated the decline in 
Data and IP due to continued price 
erosion, migration of legacy data 
services to IP-based solutions, and 
customer-led rationalisation of 
services.

GRouP dIGItal lIFe
With contributions from Kontera and 
Adconion acquired in September 2014 
quarter, Group Digital Life’s operating 
revenue increased strongly by 45%. 

Negative EBITDA decreased 24%, 
reflecting Amobee’s improved 
gross margin and effective cost 
management, as well as the benefits 
of business rationalisation, partially 
offset by HOOQ’s higher start-up 
costs. HOOQ, which offers regional 
premium OTT video, has been 
launched in Indonesia, India, Thailand 
and the Philippines to capitalise on 
Asia’s growing demand for online 
entertainment. Negative EBIT 
declined 13% after accounting for 
higher depreciation and amortisation 
of acquired intangibles for Amobee. 

Note:
(4) 

Includes all geographies other than Australia.

107

SinGApore telecommunicAtionS limited 

management discussion 
and Analysis

aSSoCIateS

Financial Year ended 31 March

2016
(S$ miIlion)

2015
(S$ miIlion)

Change (%)

Group share of associates' pre-tax profits

(excluding fair value losses)

 2,791 
2,919

 2,579 
 2,730 

Share of post-tax profits 
  Regional mobile associates
     Telkomsel 
     AIS (2)
     Airtel (2)

  - ordinary results (India and South Asia)
  - ordinary results (Africa) 
  - exceptional items (3)

  Globe
  - ordinary results
  - exceptional items (4)

  NetLink Trust (5)
  - operating results
  - amortisation of deferred gain

  Other associates

 857 
370

535
(203)
(15)
316

 215 
20
235

1,779

39
56
95

57

 741 
338

 657 
 (243)
 (42)
 372 

 212 
–
212

1,663

(14)
51
37

64

Group share of associates' post-tax profits

1,930

1,763 

“nm” denotes not meaningful.

8.2
6.9

15.8
9.4

-18.6
-16.4
-63.5
-15.0

1.5
nm
11.0

7.0

nm
10.0
158.9

-11.1

9.5

Change in 
constant 
currency (1)

(%)

9.7
8.2

20.8
9.9

-19.0
-16.8
-62.9
-15.5

-1.4
nm
7.8

8.9

nm
10.0
158.9

-11.1

11.2

Notes:
(1)  Assuming constant exchange rates for the regional currencies (Indian Rupee, Indonesian Rupiah, Philippine Peso and Thai Baht) from FY 2015. 
(2)  Share of results of the associates as shown in the table above excluded the Group’s share of certain Airtel’s exceptional items and AIS’ 2G to 3G/4G 

handset subsidy costs which have been classified as exceptional items of the Group in view of their materiality. 

(3)  Exceptional items of Airtel for FY 2016 comprised various non-operational expenses such as termination and restructuring costs, and network  
re-farming and upgrading costs. The exceptional items in FY 2015 mainly comprised fair value losses from translation of liabilities in Nigeria, 
restructuring costs, and various provisions and charges.   

(4)  Exceptional items of Globe relate to its disposal of 51% equity interest in Yondu, Inc. (a former 100% owned subsidiary) and fair valuation of its 

previously held equity interest of 38.3% in Bayan Telecommunications, Inc. 

(5)  NetLink Trust is 100% owned by Singtel and is equity accounted as an associate in the Group as Singtel does not control it. The amortisation of deferred 
gain arose from Singtel’s gain on disposal of assets and business to NetLink Trust in prior years, which was deferred in the Group’s balance sheet and 
amortised over the useful lives of the transferred assets.  

telkomsel

aIS

airtel (1)

Country mobile penetration rate 
Market share, 31 March 2016 (2)
Market share, 31 March 2015 (2)
Market position (2)

Mobile customers ('000) 
- Aggregate 
- Proportionate
Growth in mobile customers (%) (3)

126%
47.6%
46.0%
#1

153,613
53,764
8.6%

126%
45.9%
45.7%
#1

38,928
9,078
-7.2%

81%
24.2%
23.3%
#1

Globe

116%
45.8%
40.0%
#2

342,039
111,127
10%

 57,266
27,024
18%

Notes:
(1)    Mobile penetration rate, market share and market position pertained to India market only. 
(2)  Based on number of mobile customers.
(3)  Compared against 31 March 2015 and based on aggregate mobile customers. Globe has classified mobile broadband customers as part of its mobile 

customers with effect from March 2016. The comparative data as at 31 March 2015 has been restated accordingly.

 
 
 
 
 
 
 
 
 
 
 
 
AnnuAl report 2016

108

The associates’ pre-tax and post-tax 
contributions grew 8.2% and 9.5% 
respectively, on higher profits from 
Telkomsel and NetLink Trust. If the 
regional currencies had remained 
stable from a year ago, the pre-tax 
and post-tax contributions from the 
associates would have increased by 
9.7% and 11% respectively. 

During the year, the regional mobile 
associates continued to transition 
from mobile telephony to mobile 
Internet and harness the benefits of 
their extensive investments in 3G and 
4G networks and services.

Excluding PBTL which Singtel has 
ceased to exercise joint control,  
the Group’s combined mobile 
customer base reached 605 million  
in 25 countries, a growth of 8.8%  
or 49 million from a year ago.  
Telkomsel registered 8.6% increase 
in its customer base to 154 million, 
including 72 million of data 
customers as at end of March 2016. 
Airtel’s total mobile customer base 
covering India, Bangladesh, Sri Lanka 
and across Africa, reached 342 million 
as at 31 March 2016, up 10% from  
a year ago.

telkomsel delivered strong 
double-digit growth in operating 
revenue and EBITDA of 16% and 
19% respectively. The growth was 
fuelled by strong growth in voice, 
data and digital businesses as 
smartphone penetration increased. 

Mobile revenue market share 
improved from a year ago. Including 
higher depreciation charges on the 
accelerated network rollout, the 
Group’s share of Telkomsel’s post-
tax profit grew 21% in Indonesian 
Rupiah terms. With the Indonesian 
Rupiah depreciating 4% against the 
Singapore Dollar, Telkomsel’s  
post-tax contribution grew 16%  
to S$857 million.

aIS’ service revenue (excluding 
interconnect revenue) was stable 
with strong mobile data usage 
offset by decline in voice in a 
highly competitive market. AIS 
continues to maintain its mobile 
market leadership position as well 
as the largest network coverage 
operator in Thailand. EBITDA grew 
2% (5) largely due to regulatory costs 
savings from 3G migration. With 
lower depreciation charges on fully 
depreciated 2G assets, AIS’ post-tax  
contribution rose 9.4% to S$370 million. 

airtel saw strong revenue growth 
of 10% in India with a higher mobile 
revenue market share driven by 
growth in data usage and robust 
customer gains. EBITDA in India 
grew 14% and operational margin 
expanded despite higher costs from 
intensified network expansion. The 
growth was however offset by higher 
depreciation, spectrum amortisation 
charges and related finance costs. 
In Africa, operating revenue rose 
3% in constant currency terms, 

underpinned by continued growth 
in mobile data and ‘Airtel Money’ 
services. However, the depreciation 
of several African currencies had 
negatively impacted Africa’s reported 
results in US Dollar terms resulting 
in the declines in revenue and 
EBITDA by 13% and 19% respectively. 
Consequently, the Group’s share of 
Airtel’s total post-tax profit fell 15%  
to S$316 million, despite lower fair 
value losses and exceptional losses. 

Globe recorded 15% increase in 
service revenue driven by higher 
customer base for both mobile and 
broadband, and growth in mobile 
revenue market share. EBITDA rose 
15% with revenue growth partly 
offset by higher service and network 
costs. Despite higher depreciation 
charges from a larger asset base, 
Globe’s post-tax profit increased 7.8% 
in Philippine Peso terms boosted 
by one-off gains. With the 3% 
strengthening of the Philippine Peso 
against the Singapore Dollar, Globe’s 
post-tax contribution grew 11%  
to S$235 million. 

Netlink trust’s revenue grew 
18% driven by a 30% increase in 
residential fibre customer base, while 
EBITDA increased with improved 
margins. Consequently, NetLink Trust 
recorded a net profit of S$39 million 
(before the Group’s amortisation of 
deferred gain), compared to a net 
loss of S$14 million last year. 

Note:
(5)   Including 2G to 3G/4G handset subsidy costs classified as an exceptional item of the Group, EBITDA would have declined by 3% while post-tax profit 

grew 2% in Thai Baht terms from last year.   

 
109

SinGApore telecommunicAtionS limited 

management discussion 
and Analysis

CaSh Flow

Net cash inflow from operating activities

4,648

5,787 

-19.7

Net cash outflow for investing activities

(2,740)

(3,557)

-23.0

Net cash outflow for financing activities

(2,044)

(2,311)

-11.6

Financial Year ended 31 March

2016
(S$ miIlion)

2015
(S$ miIlion)

Change (%)

net decrease in cash balance 

Exchange effects on cash balance 

Cash balance at beginning of year

Cash balance at end of year

  Singtel (1)
   Optus 
  Associates (net dividends after withholding tax)

  Group free cash flow 

  Optus (in A$)

Cash capital expenditure as a percentage of operating revenue

Note:
(1)  Refers to Singtel Group excluding Optus.

(136)

35 

563 

462 

869
631
1,218

2,718

617 

11%

(81)

21 

623 

563 

1,379 
1,070 
1,100 

67.9

64.2

-9.6

-17.9

-37.0
-41.0
10.7

3,549 

-23.4

976 

-36.8

13%

The Group’s net cash inflow from 
operating activities for the year fell 
20% to S$4.65 billion. The decrease 
was due to unfavourable working 
capital movements and higher cash 
tax payments partly offset by higher 
associates’ dividends. The negative 
working capital movements reflected 
higher vendor payments, increased 
investments in mobile acquisitions 
and retentions in Australia, as well as 
approximately S$280 million received 
from OpenNet last year on fibre 
rollout completion. The dividends 
from associates grew 11% due mainly 
to a one-off special dividend paid by 
Telkomsel during the year. 

The investing cash outflow was 
S$2.74 billion. Capital expenditure 

totalled S$1.93 billion, comprising 
S$825 million for Singtel and  
S$1.11 billion (A$1.08 billion) for 
Optus. In Singtel, major capital 
investments in the year included 
S$324 million for fixed and data 
infrastructure, S$211 million for 
mobile networks and S$149 million 
for information systems. In  
Optus, capital investments in 
mobile networks amounted to 
A$536 million with the balance in 
fixed and other investments. Other 
investing cash flows included 
S$1.05 billion for the acquisition of 
Trustwave, S$214 million for Bharti  
Telecom Limited’s rights issue, and 
a partial loan repayment of S$510 
million from NetLink Trust.  

With lower operating cash 
partially offset by lower cash 
capital expenditure, free cash flow 
amounted to S$2.72 billion, down 
23% from last year.

Net cash outflow of S$2.04 billion 
for financing activities comprised 
mainly the payments of S$1.71 billion 
for final dividends in respect of the 
previous financial year ended  
31 March 2015, and S$1.08 billion  
for interim dividends in respect of  
the current financial year. Other 
major financing cash flows included  
net increase in borrowings of  
S$1.13 billion and interest  
payments of S$336 million. 

 
AnnuAl report 2016

110

SuMMaRY StateMeNtS oF FINaNCIal PoSItIoN 

Current assets 
Non-current assets 

  total assets

Current liabilities 

Non-current liabilities 

  total liabilities

  Net assets

Share capital 
Retained earnings 
Currency translation reserves (1)
Other reserves 

  equity attributable to shareholders 
Non-controlling interests and other reserve

as at 31 March

2016
(S$ miIlion)

2015
(S$ miIlion)

5,165
38,400

 4,768 
 37,299 

43,566

 42,067 

6,540

12,023

 5,757 

 11,542 

18,563

17,299 

25,003

 24,768 

2,634
28,457
 (4,940)
 (1,161)

24,989
13 

 2,634 
 27,471 
 (4,213)
 (1,159)

24,733 
35 

  total equity

25,003

 24,768 

Note:
(1) 

‘Currency translation reserves’ relate mainly to the translation of the net assets of foreign 
subsidiaries, associates and joint ventures of the Group denominated mainly in Australian Dollar, 
Indian Rupee, Indonesian Rupiah, Philippine Peso, Thai Baht and United States Dollar.  

The Group is in a strong financial 
position as at 31 March 2016. Singtel 
is rated Aa3 by Moody’s and A+ by 
Standard & Poor’s.

The net increase in total assets of 
S$1.50 billion from a year ago was 
mainly due to the addition of the 
acquired intangibles of Trustwave. 
The net increase in total liabilities of 
S$1.26 billion from a year ago was 
mainly due to increased borrowings 
for funding needs as well as for the 
acquisition of Trustwave. 

The currency translation losses 
increased by S$727 million to  
S$4.94 billion from a year ago. 
This increase arose mainly from 
the translation of the Group’s 
investments in Airtel and Telkomsel 
with the weaker Indian Rupee and 
Indonesian Rupiah against the 
Singapore Dollar from a year ago. 

111

SinGApore telecommunicAtionS limited 

management discussion 
and Analysis

CaPItal MaNaGeMeNt

GRouP

Gross debt (S$ million)

Net debt (1) (S$ million) 

Net debt gearing ratio (2) (%)

Net debt to EBITDA and share of associates’ pre-tax profits (number of times)

Net debt to EBITDA and cash dividends from associates (number of times)

Interest cover (3) (number of times)

As at 31 March 2016, the Group’s net 
debt was S$9.14 billion, 15% higher 
than a year ago.

The Group has one of the 
strongest credit ratings among 
telecommunication companies in 
the Asia Pacific region. Singtel is 
currently rated Aa3 by Moody’s and 
A+ by Standard & Poor’s. The Group 
continues to maintain a healthy 
capital structure.

Singtel maintained its dividend 
payout ratio at between 60% and 
75% of underlying net profit. For the 

financial year ended 31 March 2016, 
the total dividend payout, including 
the proposed final dividend, was 17.5 
cents per share or 73% of underlying 
net profit. The dividend payout is 
influenced by the Group’s cash flow 
generation, including dividends from 
associates. 

The Group remains committed to 
an optimal capital structure and 
investment grade credit ratings, while 
maintaining financial flexibility to 
pursue growth.

Financial Year ended 31 March

2016

9,604

9,142

26.8

1.2

1.4

25.3

2015

8,526

7,963

24.3

1.0

1.3

29.2

Notes:
(1)   Net debt is defined as gross debt less cash 
and bank balances adjusted for related 
hedging balances.

(2)  Net debt gearing ratio is defined as the 

ratio of net debt to net capitalisation. Net 
capitalisation is the aggregate of net debt, 
shareholders’ funds and non-controlling 
interests.
Interest cover refers to the ratio of EBITDA 
and share of associates’ pre-tax profits to net 
interest expense.

(3) 

SeNSItIvItY aNalYSIS FoR 
CuRReNCY tRaNSlatIoN
If the relevant foreign currency 
changes against the Singapore 
Dollar by 10% with all other 
variables held constant, the 
currency translation impact on the 
Group’s net profit is as follows:

optus’ net profit 
AUD/ S$
  - strengthened 10% 
  - weakened 10% 

Share of telkomsel’s net profit 
IDR/ S$
  - strengthened 10% 
  - weakened 10% 

Share of airtel’s net profit 
INR/ S$
  - strengthened 10% 
  - weakened 10% 

Change in Group’s Net Profit 

FY 2016
S$ million

FY 2015
S$ million

 92 
(92)

 86 
 (86)

 37 
 (37)

 94 
 (94)

 74 
 (74)

 34
 (34)

Financial
Statements

113 Directors’ Statement
122 Independent Auditor’s Report
127 Consolidated Income Statement 
128 Consolidated Statement of 

Comprehensive Income

129 Statements of Financial Position
130 Statements of Changes in Equity
134 Consolidated Statement of  

Cash Flows

137 Notes to the Financial Statements

113

SINGAPORE TELECOMMUNICATIONS LIMITED 

Directors’ 
Statement

For the financial year ended 31 March 2016

The  Directors  present  their  statement  to  the  members  together  with  the  audited  financial  statements  of  the  Company 
(“Singtel”) and its subsidiaries (the “Group”) for the financial year ended 31 March 2016.

In the opinion of the Directors, 

(a) 

the consolidated financial statements of the Group and the statement of financial position and statement of changes 
in equity of the Company as set out on pages 127 to 221 are drawn up so as to give a true and fair view of the financial 
position of the Group and of the Company as at 31 March 2016 and the financial performance, changes in equity and 
cash flows of the Group and changes in equity of the Company for the financial year ended on that date; and

(b) 

at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts 
as and when they fall due.

1. 

DIRECTORS

The Directors of the Company in office at the date of this report are –

Simon Claude Israel (Chairman) 
Chua Sock Koong (Group Chief Executive Officer) 
Bobby Chin Yoke Choong 
Venkataraman Vishnampet Ganesan 
Christina Hon Kwee Fong (Christina Ong) 
Low Check Kian 
Peter Edward Mason AM (1) 
Peter Ong Boon Kwee
Teo Swee Lian (appointed on 13 April 2015)

Fang  Ai  Lian  and  Kaikhushru  Shiavax  Nargolwala,  who  served  during  the  financial  year,  retired  following  the 
conclusion of the Annual General Meeting on 21 July 2015.

Note:
(1)  Member of the Order of Australia 

2. 

ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE BENEFITS BY MEANS OF THE ACQUISITION OF SHARES 
AND DEBENTURES

Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose 
object is to enable the Directors of the Company to acquire benefits by means of the acquisition of shares in, or 
debentures of, the Company or any other body corporate, except for performance shares granted under the Singtel 
Performance Share Plan (the “Singtel PSP 2003”), the Singtel Performance Share Plan 2012 (the “Singtel PSP 2012”) 
and share options granted by Amobee Group Pte. Ltd. (“Amobee”).

 
ANNUAL REPORT 2016

114

Directors’ 
Statement

For the financial year ended 31 March 2016

3. 

DIRECTORS’ INTERESTS IN SHARES AND DEBENTURES

The interests of the Directors holding office at the end of the financial year in the share capital of the Company and 
related corporations according to the register of Directors’ shareholdings kept by the Company under Section 164 
of the Singapore Companies Act were as follows –

Holdings registered in the name of 
Director or nominee

Holdings in which Director is deemed 
to have an interest

At 31 March 2016

At 1 April 2015
or date of
appointment,
if later

At 31 March 2016

At 1 April 2015
or date of
appointment,
if later

The Company

Singapore Telecommunications Limited
(Ordinary shares)
Simon Claude Israel 
Chua Sock Koong 
Bobby Chin Yoke Choong
Low Check Kian
Peter Edward Mason AM
Christina Ong
Peter Ong Boon Kwee
Teo Swee Lian

(American Depositary Shares)
Venkataraman Vishnampet Ganesan 

Subsidiary Corporations

759,338 (1)
6,692,097 (3)

–
1,490
–
–
870
1,550

683,500
5,692,097
–
1,490
100,000
–
870
1,550

3,341.45 (5)

3,200

Amobee Group Pte. Ltd.
(Options to subscribe for ordinary shares)
Venkataraman Vishnampet Ganesan

750,718

Optus Finance Pty Limited
(A$250,000,000 4% fixed rate notes due 2022)
Simon Claude Israel 

1,600,000 (6)

Related Corporations

Ascendas Funds Management (S) Limited
(Unit holdings in Ascendas Real Estate 

Investment Trust)

Simon Claude Israel
Chua Sock Koong

1,000,000 (7)
142,000

(S$300,000,000 4.75% subordinated perpetual 
securities issued by Ascendas Real Estate 
Investment Trust)

Chua Sock Koong

S$250,000
(principal amount)

–

–

–
–

–

1,360 (2)
4,777,845 (4)

–
–
–
–
1,537 (2)
–

1,360
4,458,159
–
–
–
–
1,537
–

–

–

–

–
–

–

–

–

–

–
–

–

 
115

SINGAPORE TELECOMMUNICATIONS LIMITED 

Directors’ 
Statement

For the financial year ended 31 March 2016

3. 

DIRECTORS’ INTERESTS IN SHARES AND DEBENTURES (Cont’d)

Mapletree Commercial Trust Management Ltd. 
(Unit holdings in Mapletree Commercial Trust)
Simon Claude Israel
Bobby Chin Yoke Choong

Mapletree Greater China Commercial Trust 

Management Ltd.

(Unit holdings in Mapletree Greater China 

Commercial Trust)

Simon Claude Israel
Chua Sock Koong
Peter Ong Boon Kwee

Mapletree Industrial Trust Management Ltd.
(Unit holdings in Mapletree Industrial Trust)
Simon Claude Israel
Chua Sock Koong
Bobby Chin Yoke Choong

Mapletree Logistics Trust Management Ltd.
(Unit holdings in Mapletree Logistics Trust)
Simon Claude Israel

Neptune Orient Lines Limited
(Ordinary shares)
Bobby Chin Yoke Choong

Olam International Limited
(S$400,000,000 in principal amount of 4.25% 

bonds due 2019)

Teo Swee Lian

(Warrants over shares)
Low Check Kian

Holdings registered in the name of 
Director or nominee

Holdings in which Director is deemed 
to have an interest

At 31 March 2016

At 1 April 2015
or date of
appointment,
if later

At 31 March 2016

At 1 April 2015
or date of
appointment,
if later

3,456,000 (6)

–

3,456,000 
–

–

100,000 (2)

–
100,000

1,000,000 (6)
430,000
–

1,000,000
430,000
–

–

50,000 (2)
32,000 (2)

–
50,000 
32,000

990,160 (6)
11,000
129,600

990,160 
11,000
129,600

1,000,000 (6)

1,000,000

–
–
–

–

–
–
–

–

–

–

–

–

29,489 (2)

29,489 

S$250,000
(principal amount)

–

–

–

1,932,805 (8)

1,905,907

ANNUAL REPORT 2016

116

Directors’ 
Statement

For the financial year ended 31 March 2016

3. 

DIRECTORS’ INTERESTS IN SHARES AND DEBENTURES (Cont’d)

Holdings registered in the name of 
Director or nominee

Holdings in which Director is deemed 
to have an interest

At 31 March 2016

At 1 April 2015
or date of
appointment,
if later

At 31 March 2016

At 1 April 2015
or date of
appointment,
if later

Singapore Airlines Limited
(Ordinary shares)
Simon Claude Israel
Chua Sock Koong
Bobby Chin Yoke Choong
Low Check Kian 

Singapore Technologies Engineering Limited
(Ordinary shares)
Christina Ong

Tiger Airways Holdings Limited
(Ordinary shares)
Low Check Kian

(Perpetual convertible capital securities)
Low Check Kian

9,000 (9)
2,000
–
5,600

1

–

–

9,000 
2,000
–
5,600

1

8,325,000

937,500

–
–

2,000 (2)

–

–

–

–

–
–
2,000 
–

–

–

–

Notes:
(1)  754,927 ordinary shares held in the name of Citibank Nominees Singapore Pte Ltd and 4,411 ordinary shares held in the name of DBS Nominees 

(Private) Limited.

(2)  Held by Director’s spouse.
(3)  688,750 ordinary shares held in the name of DBS Nominees (Private) Limited.
(4)  Ms Chua Sock Koong’s deemed interest of 4,777,845 shares included:

(a)  28,137 ordinary shares held by Ms Chua’s spouse; and
(b)  An  aggregate  of  up  to  4,749,708  ordinary  shares  in  Singtel  awarded  to  Ms  Chua  pursuant  to  the  Singtel  PSP  2012,  subject  to  certain 
performance  criteria  being  met  and  other  terms  and  conditions.  Depending  on  the  extent  of  the  satisfaction  of  the  relevant  minimum 
performance criteria, up to an aggregate of 7,055,463 ordinary shares may be released pursuant to the conditional awards granted.

According to the Register of Directors’ Shareholdings, Ms Chua had a deemed interest in 10,836,742 shares held by DBS Trustee Limited, the 
trustee of a trust established for the purposes of the Singtel PSP 2003 and the Singtel PSP 2012 for the benefit of eligible employees of the 
Group, as at 19 November 2012, being the date on which the Securities and Futures (Disclosure of Interests) Regulations 2012 (the “SFA (DOI) 
Regulations”) came into operation. Under regulation 6 of the SFA (DOI) Regulations, Ms Chua is exempted from reporting interests, and changes 
in interests, in shares held by the trust, with effect from 19 November 2012.

(5)   1 American Depositary Share represents 10 ordinary shares in Singtel.
(6)  Held in the name of Citibank Nominees Singapore Pte Ltd. 
(7)  100,000 units held jointly by Mr Israel and his spouse, and 900,000 units held in the name of Citibank Nominees Singapore Pte Ltd. 
(8)  Held by Cluny Capital Limited. Mr Low Check Kian is the sole shareholder of Cluny Capital Limited.
(9)  6,200 ordinary shares held in the name of Citibank Nominees Singapore Pte Ltd and 2,800 ordinary shares held in the name of DBS Nominees  

(Private) Limited.

According  to  the  register  of  Directors’  shareholdings,  there  were  no  changes  to  any  of  the  above-mentioned 
interests between the end of the financial year and 21 April 2016.

 
 
117

SINGAPORE TELECOMMUNICATIONS LIMITED 

Directors’ 
Statement

For the financial year ended 31 March 2016

4. 

PERFORMANCE SHARES

The  Executive  Resource  and  Compensation  Committee  (“ERCC”)  is  responsible  for  administering  the  Singtel 
performance  share  plans.  At  the  date  of  this  statement,  the  members  of  the  ERCC  are  Peter  Edward  Mason  AM 
(Chairman of the ERCC), Simon Claude Israel, and Teo Swee Lian. 

The Singtel PSP 2003 was implemented with the approval of shareholders at the Extraordinary General Meeting held 
on 29 August 2003. The duration of the Singtel PSP 2003 was 10 years commencing 29 August 2003. 

At the Extraordinary General Meeting held on 27 July 2012, the shareholders approved the adoption of the Singtel 
PSP 2012. The duration of the Singtel PSP 2012 is 10 years commencing 27 July 2012. This plan gives the flexibility to 
either allot and issue and deliver new Singtel shares or purchase and deliver existing Singtel shares upon the vesting 
of awards.

The Singtel PSP 2003 was terminated following the adoption of the Singtel PSP 2012, without prejudice to the rights 
of holders of awards accepted and outstanding under the Singtel PSP 2003 as at the date of such termination. 

The participants of the performance share plans will receive fully paid Singtel shares free of charge, the equivalent 
in cash, or combinations thereof, provided that certain prescribed performance targets are met within a prescribed 
performance  period.  The  performance  period  for  the  awards  granted  is  three  years,  except  for  Restricted  Share 
Awards which have a performance period of two years. The number of Singtel shares that will vest for each participant 
or category of participants will be determined at the end of the performance period based on the level of attainment 
of the performance targets.

From  the  commencement  of  the  performance  share  plans  to  31  March  2016,  awards  comprising  an  aggregate  
of 229.7 million shares and 42.6 million shares have been granted under the Singtel PSP 2003 and the Singtel PSP 
2012 respectively. 

 
 
 
 
 
 
 
ANNUAL REPORT 2016

118

Directors’ 
Statement

For the financial year ended 31 March 2016

4. 

PERFORMANCE SHARES (Cont’d)

Performance share awards granted, vested and cancelled during the financial year, and share awards outstanding at 
the end of the financial year, were as follows –

Date of grant

Share award for Chairman
(Simon Claude Israel)
13.08.15

Performance shares 
(Restricted Share Awards)
For Group Chief Executive Officer
(Chua Sock Koong)
26.06.12
21.06.13
23.06.14
17.06.15

For other staff
26.06.12
05.10.12
25.03.13
21.06.13
30.09.13
23.06.14
17.09.14
23.12.14
17.06.15
28.09.15
05.01.16

Balance
as at
1 April 2015
(’000)

Share 
awards 
granted
(’000)

Additional
share awards
from targets
exceeded
(’000)

Share 
awards 
vested
(’000)

Share
awards
cancelled
(’000)

Balance
as at
31 March 2016
(’000)

–

76

–

(76)

–

–

116
98
102
–
316

4,048
29
38
4,141
12
4,971
27
18
–
–
–
13,284

–
–
–
84
84

–
–
–
–
–
–
–
–
4,254
23
7
4,284

–
30
–
–
30

–
–
–
1,197
4
1
–
–
–
–
–
1,202

(116)
(64)
–
–
(180)

(3,952)
(29)
(38)
(2,643)
(8)
(72)
–
–
(7)
–
–
(6,749)

–
–
–
–
–

(96)
–
–
(277)
–
(488)
(17)
(14)
(338)
–
–
(1,230)

–
64
102
84
250

–
–
–
2,418
8
4,412
10
4
3,909
23
7
10,791

Sub-total

13,600

4,368

1,232

(6,929)

(1,230)

11,041

 
119

SINGAPORE TELECOMMUNICATIONS LIMITED 

Directors’ 
Statement

For the financial year ended 31 March 2016

4. 

PERFORMANCE SHARES (Cont’d)

Date of grant

Performance shares
(Performance Share Awards)
For Group Chief Executive Officer
(Chua Sock Koong)
26.06.12
21.06.13
23.06.14
17.06.15

For other staff
26.06.12
05.10.12
25.03.13
21.06.13
30.09.13
23.06.14
17.09.14
23.12.14
17.06.15
28.09.15
05.01.16

Sub-total

Total

Balance
as at
1 April 2015
(’000)

Share 
awards 
granted
(’000)

Additional
share awards
from targets
exceeded
(’000)

Share 
awards 
vested
(’000)

Share
awards
cancelled
(’000)

Balance
as at
31 March 2016
(’000)

1,273
1,418
1,423
–
4,114

5,541
146
11
6,992
15
6,891
15
220
–
–
–
19,831

–
–
–
1,659
1,659

–
–
–
–
–
–
–
–
7,652
125
32
7,809

23,945

9,468

–
–
–
–
–

–
–
–
–
–
–
–
–
–
–
–
–

–

(1,273)
–
–
–
(1,273)

(5,522)
(146)
(11)
–
–
–
–
–
–
–
–
(5,679)

–
–
–
–
–

(19)
–
–
(97)
–
(145)
–
(214)

(90)   
    –
–
(565)

–
1,418
1,423
1,659
4,500

–
–
–
6,895
15
6,746
15
6
7,562
125
32
21,396

(6,952) 

(565)

25,896

37,545

13,912

1,232

(13,957)

(1,795)

36,937

During the financial year, awards in respect of an aggregate of 10.9 million and 3.1 million shares granted under the 
Singtel PSP 2003 and the Singtel PSP 2012 respectively were vested. The awards were satisfied in part by the delivery 
of existing shares purchased from the market and in part by the payment of cash in lieu of delivery of shares, as 
permitted under the Singtel PSP 2003 and the Singtel PSP 2012 respectively.

As at 31 March 2016, no participant has received shares pursuant to the vesting of awards granted under the Singtel 
PSP 2003 and the Singtel PSP 2012 which, in aggregate, represents five per cent or more of the aggregate of –

(i) 

the total number of new shares available under the Singtel PSP 2003 and the Singtel PSP 2012; and

(ii) 

the total number of existing shares purchased for delivery of awards released under the Singtel PSP 2003 and 
the Singtel PSP 2012.

 
 
ANNUAL REPORT 2016

120

Directors’ 
Statement

For the financial year ended 31 March 2016

5. 

SHARE OPTION PLANS 

During the financial year, there were:

(a) 

no options granted by the Company to any person to take up unissued shares of the Company; and

(b) 

no shares issued by virtue of any exercise of options to take up unissued shares of the Company. 

The particulars of the share option plans of subsidiary corporations of the Company are as follows:

Amobee Group Pte. Ltd. 

In April 2015, Amobee, a wholly-owned subsidiary corporation of the Company, implemented the 2015 Long-Term 
Incentive Plan (“Amobee LTI Plan”). Under the terms of Amobee LTI Plan, options to purchase ordinary shares of 
Amobee  may  be  granted  to  employees  (including  executive  directors)  and  non-executive  directors  of  Amobee  
and/or any of its subsidiaries. 

Options are exercisable at a price no less than 100% of the fair value of the ordinary shares of Amobee on the date 
of grant. 

From April 2015 to 31 March 2016, options in respect of an aggregate of 55.0 million of ordinary shares in Amobee 
have been granted to the employees and non-executive directors of Amobee and/or its subsidiaries. As at 31 March 
2016, options in respect of an aggregate of 43.3 million ordinary shares in Amobee are outstanding.

Options have been granted on 10 April 2015 with an exercise price of US$0.79 per share and on 14 October 2015 
with an exercise price of US$0.79 per share or US$0.54 per share. The terms of the options granted to employees 
and non-executive directors are 10 years and 5 years from the date of grant respectively. 

No ordinary shares of Amobee were issued during the financial year pursuant to the exercise of options granted 
under the Amobee LTI Plan. The persons to whom the options have been granted do not have the right to participate, 
by virtue of the options, in any share issue of any other company.

Trustwave Holdings, Inc.  

In December 2015, Trustwave Holdings, Inc. (“Trustwave”), a 98%-owned subsidiary corporation of the Company, 
implemented  the  Stock  Option  Incentive  Plan  (“Trustwave  ESOP”).  Under  the  terms  of  the  Trustwave  ESOP, 
options to purchase common stock of Trustwave may be granted to employees (including executive directors) and  
non-executive directors of Trustwave and/or any of its subsidiaries. 

Options are exercisable at a price no less than 100% of the fair value of the common stock of Trustwave on the date 
of grant. 

From  December  2015  to  31  March  2016,  options  in  respect  of  an  aggregate  of  1.5  million  of  common  stock  in 
Trustwave have been granted to the employees of Trustwave and/or its subsidiaries. As at 31 March 2016, options in 
respect of an aggregate of 1.4 million of common stock in Trustwave are outstanding.

Options have been granted to employees of Trustwave and its subsidiaries on 1 December 2015 and 22 January 2016 
with an exercise price of US$16.79 per share. The term of each option granted to such employees is 10 years from 
the date of grant. 

No common stock of Trustwave was issued during the financial year pursuant to the exercise of options granted 
under the Trustwave ESOP. The persons to whom the options have been granted do not have the right to participate, 
by virtue of the options, in any share issue of any other company.

 
 
 
 
 
 
 
 
 
 
 
121

SINGAPORE TELECOMMUNICATIONS LIMITED 

Directors’ 
Statement

For the financial year ended 31 March 2016

6. 

AUDIT COMMITTEE

At the date of this statement, the Audit Committee comprises the following members, all of whom are non-executive 
and the majority of whom, including the Chairman, are independent –

Bobby Chin Yoke Choong (Chairman of the Audit Committee)
Christina Hon Kwee Fong (Christina Ong)
Peter Ong Boon Kwee
Teo Swee Lian 

Fang  Ai  Lian,  who  served  during  the  financial  year,  retired  as  Chairman  of  the  Audit  Committee  following  the 
conclusion of the Annual General Meeting on 21 July 2015. 

The Audit Committee carried out its functions in accordance with Section 201B of the Singapore Companies Act, 
Chapter 50. 

In  performing  its  functions,  the  Committee  reviewed  the  overall  scope  and  results  of  both  internal  and  external 
audits  and  the  assistance  given  by  the  Company’s  officers  to  the  auditors.  It  met  with  the  Company’s  internal 
auditors  to  discuss  the  results  of  the  respective  examinations  and  their  evaluation  of  the  Company’s  system  of 
internal accounting controls. The Committee also held discussions with the internal and external auditors and is 
satisfied that the processes put in place by management provide reasonable assurance on mitigation of fraud risk 
exposure to the Group.

The Committee also reviewed the financial statements of the Company and the Group, as well as the Independent 
Auditor’s Report thereon.

In addition, the Committee had, with the assistance of the internal auditors, reviewed the procedures set up by the 
Company and the Group to identify and report, and where necessary, sought appropriate approval for interested 
person transactions.

The  Committee  has  full  access  to  and  has  the  co-operation  of  management  and  has  been  given  the  resources 
required for it to discharge its function properly. It also has full discretion to invite any executive officer to attend its 
meetings. The external and internal auditors have unrestricted access to the Audit Committee.

The  Committee  has  nominated  Deloitte  &  Touche  LLP  for  re-appointment  as  auditor  of  the  Company  at  the 
forthcoming Annual General Meeting.

7. 

AUDITOR

The auditor, Deloitte & Touche LLP, has expressed its willingness to accept re-appointment.

On behalf of the Directors

Simon Claude Israel 
Chairman 

Singapore
11 May 2016

Chua Sock Koong
Director

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

122

Independent Auditor’s Report
To the Members of Singapore Telecommunications Limited
For the financial year ended 31 March 2016

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

OPINION

We have audited the financial statements of Singapore Telecommunications Limited (the “Company”) and its subsidiaries 
(the “Group”) which comprise the consolidated statement of financial position of the Group and the statement of financial 
position  of  the  Company  as  at  31  March  2016,  and  the  consolidated  income  statement,  statement  of  comprehensive 
income, statement of changes in equity and statement of cash flows of the Group and the statement of changes in equity 
of the Company for the year then ended, and the notes to the financial statements, including a summary of significant 
accounting policies, as set out on pages 127 to 221.

In our opinion, the accompanying consolidated financial statements of the Group and the statement of financial position 
and  statement  of  changes  in  equity  of  the  Company  are  properly  drawn  up  in  accordance  with  the  provisions  of  the 
Companies Act, Chapter 50 (the “Act”) and Financial Reporting Standards in Singapore (“FRSs”) so as to give a true and fair 
view of the consolidated financial position of the Group and the financial position of the Company as at 31 March 2016, and 
of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the Group and 
changes in equity of the Company for the year ended on that date. 

BASIS FOR OPINION

We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those 
standards  are  further  described  in  the  Auditor’s  Responsibilities  for  the  Audit  of  the  Financial  Statements  section  of 
our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority 
(“ACRA”)  Code  of  Professional  Conduct  and  Ethics  for  Public  Accountants  and  Accounting  Entities  (“ACRA  Code”) 
together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we 
have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe 
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

KEY AUDIT MATTERS

Key  audit  matters  are  those  matters  that,  in  our  professional  judgement,  were  of  most  significance  in  our  audit  of  the 
financial statements of the current year. These matters were addressed in the context of our audit of the financial statements 
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 

Key Audit Matters

Our audit performed and responses thereon 

Revenue recognition
We have identified three critical areas in relation to 
revenue set out below that we consider significant 
either because of the complexity of the operation of 
billing systems or because of the required exercise of 
judgement:
(cid:340)(cid:1) (cid:66)(cid:68)(cid:68)(cid:80)(cid:86)(cid:79)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:77)(cid:80)(cid:79)(cid:72)(cid:14)(cid:85)(cid:70)(cid:83)(cid:78)(cid:1)(cid:68)(cid:80)(cid:79)(cid:85)(cid:83)(cid:66)(cid:68)(cid:85)(cid:84)(cid:13)(cid:1)(cid:81)(cid:66)(cid:83)(cid:85)(cid:74)(cid:68)(cid:86)(cid:77)(cid:66)(cid:83)(cid:77)(cid:90)(cid:1)
with respect to Group Enterprise Infocomm 
Technology (“ICT”) projects;

(cid:340)(cid:1) (cid:66)(cid:68)(cid:68)(cid:80)(cid:86)(cid:79)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:79)(cid:70)(cid:88)(cid:1)(cid:81)(cid:83)(cid:80)(cid:69)(cid:86)(cid:68)(cid:85)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:66)(cid:83)(cid:74)(cid:354)(cid:84)(cid:1)(cid:74)(cid:79)(cid:85)(cid:83)(cid:80)(cid:69)(cid:86)(cid:68)(cid:70)(cid:69)(cid:1)

in the year; and
(cid:85)(cid:73)(cid:70)(cid:1)(cid:85)(cid:74)(cid:78)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:71)(cid:1)(cid:83)(cid:70)(cid:87)(cid:70)(cid:79)(cid:86)(cid:70)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:72)(cid:79)(cid:74)(cid:85)(cid:74)(cid:80)(cid:79)(cid:15)

(cid:340)(cid:1)

The accounting policies for revenue recognition are 
set out in Note 2.20 to the financial statements and 
(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:354)(cid:70)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1)(cid:83)(cid:70)(cid:87)(cid:70)(cid:79)(cid:86)(cid:70)(cid:1)(cid:84)(cid:85)(cid:83)(cid:70)(cid:66)(cid:78)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:81)(cid:1)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:67)(cid:70)(cid:70)(cid:79)(cid:1)
disclosed in Note 4 to the financial statements.

Our audit approach included both controls testing and 
substantive procedures as follows:
(cid:340)(cid:1) (cid:56)(cid:70)(cid:1)(cid:81)(cid:70)(cid:83)(cid:71)(cid:80)(cid:83)(cid:78)(cid:70)(cid:69)(cid:1)(cid:81)(cid:83)(cid:80)(cid:68)(cid:70)(cid:69)(cid:86)(cid:83)(cid:70)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:74)(cid:69)(cid:70)(cid:79)(cid:85)(cid:74)(cid:71)(cid:90)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:81)(cid:1)(cid:38)(cid:79)(cid:85)(cid:70)(cid:83)(cid:81)(cid:83)(cid:74)(cid:84)(cid:70)(cid:1)
ICT contracts which may exhibit areas of audit interest 
such as low and/or significant change in margins, loss 
making contracts, and accounts with high accrued 
revenue amongst others. We challenged the assumptions 
and judgements underpinning forecast performance of 
the identified contracts and the adequacy of contract loss 
provisions.

(cid:340)(cid:1) (cid:56)(cid:70)(cid:1)(cid:70)(cid:87)(cid:66)(cid:77)(cid:86)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:83)(cid:70)(cid:77)(cid:70)(cid:87)(cid:66)(cid:79)(cid:85)(cid:1)(cid:42)(cid:53)(cid:1)(cid:84)(cid:90)(cid:84)(cid:85)(cid:70)(cid:78)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:70)(cid:84)(cid:74)(cid:72)(cid:79)(cid:1)

(cid:66)(cid:79)(cid:69)(cid:1)(cid:80)(cid:81)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:70)(cid:354)(cid:70)(cid:68)(cid:85)(cid:74)(cid:87)(cid:70)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:68)(cid:80)(cid:79)(cid:85)(cid:83)(cid:80)(cid:77)(cid:84)(cid:1)(cid:80)(cid:87)(cid:70)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:66)(cid:81)(cid:85)(cid:86)(cid:83)(cid:70)(cid:1)
and recording of revenue transactions.  In doing so, 
we involved our IT specialists to assist in the audit of 
automated controls, including interface controls between 
(cid:69)(cid:74)(cid:354)(cid:70)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1)(cid:42)(cid:53)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:15)

123

SINGAPORE TELECOMMUNICATIONS LIMITED 

Independent Auditor’s Report
To the Members of Singapore Telecommunications Limited
For the financial year ended 31 March 2016

Key Audit Matters

Our audit performed and responses thereon 

Revenue recognition (Cont’d)

(cid:340)(cid:1) (cid:56)(cid:70)(cid:1)(cid:70)(cid:87)(cid:66)(cid:77)(cid:86)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:67)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:81)(cid:83)(cid:80)(cid:68)(cid:70)(cid:84)(cid:84)(cid:1)(cid:68)(cid:80)(cid:79)(cid:85)(cid:83)(cid:80)(cid:77)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:81)(cid:77)(cid:66)(cid:68)(cid:70)(cid:1)(cid:80)(cid:87)(cid:70)(cid:83)(cid:1)

the authorisation of rate changes, the introduction of new 
plans and the input of this information to billing systems. 
We tested the access controls and change management 
controls for the Group’s billing systems.

(cid:340)(cid:1) (cid:56)(cid:70)(cid:1)(cid:85)(cid:70)(cid:84)(cid:85)(cid:70)(cid:69)(cid:1)(cid:84)(cid:66)(cid:78)(cid:81)(cid:77)(cid:70)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:68)(cid:86)(cid:84)(cid:85)(cid:80)(cid:78)(cid:70)(cid:83)(cid:1)(cid:67)(cid:74)(cid:77)(cid:77)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:66)(cid:68)(cid:68)(cid:86)(cid:83)(cid:66)(cid:68)(cid:90)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:79)(cid:70)(cid:88)(cid:1)

(cid:81)(cid:83)(cid:80)(cid:69)(cid:86)(cid:68)(cid:85)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:66)(cid:83)(cid:74)(cid:354)(cid:84)(cid:1)(cid:74)(cid:79)(cid:85)(cid:83)(cid:80)(cid:69)(cid:86)(cid:68)(cid:70)(cid:69)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:15)

(cid:340)(cid:1) (cid:56)(cid:70)(cid:1)(cid:85)(cid:70)(cid:84)(cid:85)(cid:70)(cid:69)(cid:1)(cid:76)(cid:70)(cid:90)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:79)(cid:68)(cid:74)(cid:77)(cid:74)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:86)(cid:84)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:78)(cid:66)(cid:79)(cid:66)(cid:72)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)

to assess the completeness and accuracy of revenue, 
including testing the period in which it is reported.

(cid:340)(cid:1) (cid:56)(cid:70)(cid:1)(cid:85)(cid:70)(cid:84)(cid:85)(cid:70)(cid:69)(cid:1)(cid:84)(cid:86)(cid:81)(cid:81)(cid:80)(cid:83)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:70)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:68)(cid:70)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:78)(cid:66)(cid:79)(cid:86)(cid:66)(cid:77)(cid:1)(cid:75)(cid:80)(cid:86)(cid:83)(cid:79)(cid:66)(cid:77)(cid:1)(cid:70)(cid:79)(cid:85)(cid:83)(cid:74)(cid:70)(cid:84)(cid:1)
posted to revenue accounts to identify any unusual items.

We have validated and are satisfied with the assumptions 
and key management estimates adopted where revenue is 
recognised on a percentage of completion basis.

We have not noted any significant deficiency in the relevant 
IT systems and business process controls of the relevant 
revenue streams. 

No exceptions were noted in the key reconciliations and 
manual journal entries which may result in significant 
misstatements in revenue recorded in the year.

We have discussed with management and their external 
specialists on the purchase price allocation, and engaged 
our valuation specialists to assist in the audit of the 
purchase price allocation, including the identification and 
valuation of intangible assets acquired. We challenged the 
appropriateness of the useful lives assigned to the identified 
intangible assets, having regard to the expected use of  
these assets.   

Based on our procedures, we noted that the purchase price 
allocation has been performed in accordance with FRS 103 
Business Combinations, including the disclosures thereon, 
and that the intangible assets identified are appropriate 
and within expectations for the industry. We also noted 
management’s key assumptions applied in the purchase 
price allocation in arriving at the fair value of the assets 
acquired and liabilities assumed, including the fair valuation 
of identified intangible assets, to be within a reasonable range 
of our audit expectations.

Acquisition of Trustwave  – purchase price 
allocation
In September 2015, the Group completed the 
acquisition of Trustwave Holdings, Inc. (“Trustwave”). 
FRS 103 Business Combinations requires the Group 
to recognise the identifiable assets, liabilities and 
contingent liabilities at fair value at the date of 
acquisition, with the excess of the acquisition cost 
over the identified fair values recognised as goodwill. 
This requires a significant amount of management 
estimation, particularly in relation to the identification 
and valuation of intangible assets and assignment of 
their useful lives. The intangible assets and goodwill 
recognised amounted to S$186.8 million and  
S$1,069.8 million, respectively.

The Group’s disclosure of the business combination 
accounting applied to the acquisition of Trustwave is 
set out in Note 1(a) to the consolidated statement of 
cash flows.

ANNUAL REPORT 2016

124

Independent Auditor’s Report
To the Members of Singapore Telecommunications Limited
For the financial year ended 31 March 2016

Key Audit Matters

Our audit performed and responses thereon 

Taxation
The Group’s subsidiaries, associates and joint ventures 
have operations across a large number of jurisdictions 
and are subject to periodic challenges by local tax 
authorities.  

The Group is currently responding to an ongoing 
specific issue audit by the Australian Taxation Office 
(“ATO”) in connection with the acquisition financing 
of Singtel Optus Pty Limited (“Optus”). The Group has 
engaged and involved external specialists to advise 
management on this specific issue audit and in its 
responses to the ATO.  Evaluation of the outcome of 
the specific issue audit, and whether the risk of loss 
is remote, possible or probable, requires significant 
judgement given the complexities involved.

The Group has made disclosures on the above matter 
in Note 40(b) to the financial statements. 

Goodwill impairment review
Under FRSs, the Group is required to annually test 
goodwill for impairment. This assessment requires the 
exercise of significant judgement about future market 
conditions, including growth rates and discount rates, 
(cid:81)(cid:66)(cid:83)(cid:85)(cid:74)(cid:68)(cid:86)(cid:77)(cid:66)(cid:83)(cid:77)(cid:90)(cid:1)(cid:85)(cid:73)(cid:80)(cid:84)(cid:70)(cid:1)(cid:66)(cid:354)(cid:70)(cid:68)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:67)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:48)(cid:81)(cid:85)(cid:86)(cid:84)(cid:13)(cid:1)
Amobee, Inc. and Trustwave. The aggregated goodwill 
in Optus, Amobee, Inc. and Trustwave constituted 
25.3% of the Group’s total assets at 31 March 2016.

The key assumptions to the impairment test and the 
sensitivity of changes in these assumptions to the risk 
of impairment are disclosed in Note 23 to the financial 
statements.

We have involved our tax specialists to assist us in assessing 
the judgements taken by management in reaching their 
conclusion that the specific issue audit by the ATO represents 
a contingent liability of the Group. We have examined 
the advice obtained by management from the Group’s 
tax specialists to support the judgement taken, and have 
discussed the merits of the case with the specialists.  Based 
on our procedures, we believe that the position taken by the 
Group is appropriate.  

We have also assessed and validated the adequacy and 
appropriateness of the disclosures made in the financial 
statements.

Our audit procedures focused on evaluating and challenging 
the key assumptions used by management in conducting the 
impairment review. These procedures included:
(cid:340)(cid:1) (cid:86)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:86)(cid:83)(cid:1)(cid:87)(cid:66)(cid:77)(cid:86)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:84)(cid:81)(cid:70)(cid:68)(cid:74)(cid:66)(cid:77)(cid:74)(cid:84)(cid:85)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:74)(cid:79)(cid:69)(cid:70)(cid:81)(cid:70)(cid:79)(cid:69)(cid:70)(cid:79)(cid:85)(cid:77)(cid:90)(cid:1)(cid:69)(cid:70)(cid:87)(cid:70)(cid:77)(cid:80)(cid:81)(cid:1)
expectations for the key macro-economic assumptions 
used in the impairment analysis, in particular the discount 
rate and long-term growth rate, and comparing the 
independent expectations to those used by management;

(cid:340)(cid:1) (cid:68)(cid:73)(cid:66)(cid:77)(cid:77)(cid:70)(cid:79)(cid:72)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:66)(cid:84)(cid:73)(cid:1)(cid:356)(cid:80)(cid:88)(cid:1)(cid:71)(cid:80)(cid:83)(cid:70)(cid:68)(cid:66)(cid:84)(cid:85)(cid:84)(cid:1)(cid:86)(cid:84)(cid:70)(cid:69)(cid:13)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)

comparison to recent performance, trend analysis and 
market expectations; and

(cid:340)(cid:1) (cid:67)(cid:90)(cid:1)(cid:83)(cid:70)(cid:71)(cid:70)(cid:83)(cid:70)(cid:79)(cid:68)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:81)(cid:83)(cid:74)(cid:80)(cid:83)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:84)(cid:333)(cid:1)(cid:71)(cid:80)(cid:83)(cid:70)(cid:68)(cid:66)(cid:84)(cid:85)(cid:84)(cid:13)(cid:1)(cid:88)(cid:73)(cid:70)(cid:83)(cid:70)(cid:1)(cid:83)(cid:70)(cid:77)(cid:70)(cid:87)(cid:66)(cid:79)(cid:85)(cid:13)(cid:1)
assessing whether the Group has achieved them.

Based on our procedures, we noted management’s key 
assumptions to be within a reasonable range of our 
expectations.

We have also assessed and validated the adequacy and 
appropriateness of the disclosures made in the financial 
statements.

125

SINGAPORE TELECOMMUNICATIONS LIMITED 

Independent Auditor’s Report
To the Members of Singapore Telecommunications Limited
For the financial year ended 31 March 2016

Key Audit Matters

Our audit performed and responses thereon 

Our audit procedures included the review of relevant working 
papers of the auditors of Airtel (the “Component Auditors”), 
with particular focus on those related to the goodwill 
impairment review and regulatory and tax disputes. We also 
discussed with Airtel management, Component Auditors and 
specialists used by them, including those engaged to assist 
the Component Auditors in evaluating the contingencies and 
those assessing the assumptions adopted in the goodwill 
impairment model prepared by Airtel management.

We also reviewed legal advices received by Airtel for certain 
of the key contingencies that are significant to the Group, 
including evaluating the adequacy of disclosure thereon.

The Group’s share of Airtel’s results is calculated based on 
Airtel’s audited financial statements on which the Component 
Auditors have expressed an unmodified opinion.

Bharti Airtel – goodwill impairment 
evaluation and regulatory and tax disputes  
Bharti Airtel Limited (“Airtel”), a joint venture of the 
Group, has recorded significant goodwill arising 
from the acquisition of Airtel Africa in June 2010 and 
reported contingent liabilities, of which the Group’s 
share is considered material. 

This goodwill recorded by Airtel is required to be tested 
for impairment at least annually. As the amount of 
goodwill recorded is material, an impairment thereof 
(cid:78)(cid:66)(cid:90)(cid:1)(cid:78)(cid:66)(cid:85)(cid:70)(cid:83)(cid:74)(cid:66)(cid:77)(cid:77)(cid:90)(cid:1)(cid:66)(cid:354)(cid:70)(cid:68)(cid:85)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:81)(cid:333)(cid:84)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:75)(cid:80)(cid:74)(cid:79)(cid:85)(cid:1)
venture’s results.  The impairment assessment requires 
the exercise of significant judgement about future 
market conditions, including growth rates and discount 
rates applicable in a number of markets in Africa.  The 
Group’s carrying value in Airtel is disclosed in Note 22 
to the financial statements.

The reported contingent liabilities from Airtel include 
both regulatory and tax disputes that mainly arose 
from its operations in India and certain markets in 
Africa.  Airtel have engaged and involved specialists to 
advise them on such disputes and to assess whether 
the risk of loss is remote, possible or probable. Such 
assessment requires significant judgement given the 
complexities involved.  The Group’s share of Airtel’s 
contingencies have been disclosed in Note 41(a) to the 
financial statements.

RESPONSIBILITIES OF MANAGEMENT AND DIRECTORS FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with 
the provisions of the Act and FRSs, and for devising and maintaining a system of internal accounting controls sufficient 
to  provide  a  reasonable  assurance  that  assets  are  safeguarded  against  loss  from  unauthorised  use  or  disposition;  and 
transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair 
financial statements and to maintain accountability of assets.

In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going 
concern,  disclosing,  as  applicable,  matters  related  to  going  concern  and  using  the  going  concern  basis  of  accounting 
unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The directors’ responsibilities include overseeing the Group’s financial reporting process. 

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our  objectives  are  to  obtain  reasonable  assurance  about  whether  the  financial  statements  as  a  whole  are  free  from 
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable 
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always 
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, 
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on 
the basis of these consolidated financial statements.

ANNUAL REPORT 2016

126

Independent Auditor’s Report
To the Members of Singapore Telecommunications Limited
For the financial year ended 31 March 2016

As  part  of  an  audit  in  accordance  with  SSAs,  we  exercise  professional  judgement  and  maintain  professional  scepticism 
throughout the audit. We also:

(cid:340)(cid:1)

(cid:340)(cid:1)

(cid:340)(cid:1)

(cid:340)(cid:1)

(cid:340)(cid:1)

(cid:340)(cid:1)

(cid:42)(cid:69)(cid:70)(cid:79)(cid:85)(cid:74)(cid:71)(cid:90)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:66)(cid:84)(cid:84)(cid:70)(cid:84)(cid:84)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:83)(cid:74)(cid:84)(cid:76)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:78)(cid:66)(cid:85)(cid:70)(cid:83)(cid:74)(cid:66)(cid:77)(cid:1)(cid:78)(cid:74)(cid:84)(cid:84)(cid:85)(cid:66)(cid:85)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:355)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:84)(cid:85)(cid:66)(cid:85)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:13)(cid:1)(cid:88)(cid:73)(cid:70)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:69)(cid:86)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:71)(cid:83)(cid:66)(cid:86)(cid:69)(cid:1)(cid:80)(cid:83)(cid:1)(cid:70)(cid:83)(cid:83)(cid:80)(cid:83)(cid:13)(cid:1)
design  and  perform  audit  procedures  responsive  to  those  risks,  and  obtain  audit  evidence  that  is  sufficient  and 
appropriate  to  provide  a  basis  for  our  opinion.  The  risk  of  not  detecting  a  material  misstatement  resulting  from 
fraud  is  higher  than  for  one  resulting  from  error,  as  fraud  may  involve  collusion,  forgery,  intentional  omissions, 
misrepresentations, or the override of internal control.

(cid:48)(cid:67)(cid:85)(cid:66)(cid:74)(cid:79)(cid:1) (cid:66)(cid:79)(cid:1) (cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:84)(cid:85)(cid:66)(cid:79)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1) (cid:80)(cid:71)(cid:1) (cid:74)(cid:79)(cid:85)(cid:70)(cid:83)(cid:79)(cid:66)(cid:77)(cid:1) (cid:68)(cid:80)(cid:79)(cid:85)(cid:83)(cid:80)(cid:77)(cid:1) (cid:83)(cid:70)(cid:77)(cid:70)(cid:87)(cid:66)(cid:79)(cid:85)(cid:1) (cid:85)(cid:80)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:66)(cid:86)(cid:69)(cid:74)(cid:85)(cid:1) (cid:74)(cid:79)(cid:1) (cid:80)(cid:83)(cid:69)(cid:70)(cid:83)(cid:1) (cid:85)(cid:80)(cid:1) (cid:69)(cid:70)(cid:84)(cid:74)(cid:72)(cid:79)(cid:1) (cid:66)(cid:86)(cid:69)(cid:74)(cid:85)(cid:1) (cid:81)(cid:83)(cid:80)(cid:68)(cid:70)(cid:69)(cid:86)(cid:83)(cid:70)(cid:84)(cid:1) (cid:85)(cid:73)(cid:66)(cid:85)(cid:1) (cid:66)(cid:83)(cid:70)(cid:1)
(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:81)(cid:83)(cid:74)(cid:66)(cid:85)(cid:70)(cid:1) (cid:74)(cid:79)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:68)(cid:74)(cid:83)(cid:68)(cid:86)(cid:78)(cid:84)(cid:85)(cid:66)(cid:79)(cid:68)(cid:70)(cid:84)(cid:13)(cid:1) (cid:67)(cid:86)(cid:85)(cid:1) (cid:79)(cid:80)(cid:85)(cid:1) (cid:71)(cid:80)(cid:83)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:81)(cid:86)(cid:83)(cid:81)(cid:80)(cid:84)(cid:70)(cid:1) (cid:80)(cid:71)(cid:1) (cid:70)(cid:89)(cid:81)(cid:83)(cid:70)(cid:84)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1) (cid:66)(cid:79)(cid:1) (cid:80)(cid:81)(cid:74)(cid:79)(cid:74)(cid:80)(cid:79)(cid:1) (cid:80)(cid:79)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:70)(cid:354)(cid:70)(cid:68)(cid:85)(cid:74)(cid:87)(cid:70)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1)
Group’s internal control.

(cid:38)(cid:87)(cid:66)(cid:77)(cid:86)(cid:66)(cid:85)(cid:70)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:81)(cid:83)(cid:74)(cid:66)(cid:85)(cid:70)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1) (cid:80)(cid:71)(cid:1) (cid:66)(cid:68)(cid:68)(cid:80)(cid:86)(cid:79)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1) (cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:74)(cid:70)(cid:84)(cid:1) (cid:86)(cid:84)(cid:70)(cid:69)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:83)(cid:70)(cid:66)(cid:84)(cid:80)(cid:79)(cid:66)(cid:67)(cid:77)(cid:70)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1) (cid:80)(cid:71)(cid:1) (cid:66)(cid:68)(cid:68)(cid:80)(cid:86)(cid:79)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1) (cid:70)(cid:84)(cid:85)(cid:74)(cid:78)(cid:66)(cid:85)(cid:70)(cid:84)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1)
related disclosures made by management.

(cid:36)(cid:80)(cid:79)(cid:68)(cid:77)(cid:86)(cid:69)(cid:70)(cid:1)(cid:80)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:81)(cid:83)(cid:74)(cid:66)(cid:85)(cid:70)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:78)(cid:66)(cid:79)(cid:66)(cid:72)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:333)(cid:84)(cid:1)(cid:86)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:72)(cid:80)(cid:74)(cid:79)(cid:72)(cid:1)(cid:68)(cid:80)(cid:79)(cid:68)(cid:70)(cid:83)(cid:79)(cid:1)(cid:67)(cid:66)(cid:84)(cid:74)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:66)(cid:68)(cid:68)(cid:80)(cid:86)(cid:79)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:66)(cid:79)(cid:69)(cid:13)(cid:1)(cid:67)(cid:66)(cid:84)(cid:70)(cid:69)(cid:1)(cid:80)(cid:79)(cid:1)
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast 
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty 
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements 
or,  if  such  disclosures  are  inadequate,  to  modify  our  opinion.  Our  conclusions  are  based  on  the  audit  evidence 
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease 
to continue as a going concern. 

(cid:38)(cid:87)(cid:66)(cid:77)(cid:86)(cid:66)(cid:85)(cid:70)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:80)(cid:87)(cid:70)(cid:83)(cid:66)(cid:77)(cid:77)(cid:1)(cid:81)(cid:83)(cid:70)(cid:84)(cid:70)(cid:79)(cid:85)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:13)(cid:1)(cid:84)(cid:85)(cid:83)(cid:86)(cid:68)(cid:85)(cid:86)(cid:83)(cid:70)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:68)(cid:80)(cid:79)(cid:85)(cid:70)(cid:79)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:355)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:84)(cid:85)(cid:66)(cid:85)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:13)(cid:1)(cid:74)(cid:79)(cid:68)(cid:77)(cid:86)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:84)(cid:68)(cid:77)(cid:80)(cid:84)(cid:86)(cid:83)(cid:70)(cid:84)(cid:13)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)
whether the financial statements represent the underlying transactions and events in a manner that achieves fair 
presentation.

(cid:48)(cid:67)(cid:85)(cid:66)(cid:74)(cid:79)(cid:1) (cid:84)(cid:86)(cid:357)(cid:68)(cid:74)(cid:70)(cid:79)(cid:85)(cid:1) (cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:81)(cid:83)(cid:74)(cid:66)(cid:85)(cid:70)(cid:1) (cid:66)(cid:86)(cid:69)(cid:74)(cid:85)(cid:1) (cid:70)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:68)(cid:70)(cid:1) (cid:83)(cid:70)(cid:72)(cid:66)(cid:83)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:355)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1) (cid:74)(cid:79)(cid:71)(cid:80)(cid:83)(cid:78)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:70)(cid:79)(cid:85)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:67)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)
activities within the Group to express an opinion on the consolidated financial statements. We are responsible for 
the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We  communicate  with  the  directors  regarding,  among  other  matters,  the  planned  scope  and  timing  of  the  audit  and 
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We  also  provide  the  directors  with  a  statement  that  we  have  complied  with  relevant  ethical  requirements  regarding 
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear 
on our independence, and where applicable, related safeguards.

From  the matters  communicated with the directors,  we determine those  matters that were  of  most significance  in the 
audit of the financial statements of the current year and are therefore the key audit matters. We describe these matters 
in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare 
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences 
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiary 
corporations  incorporated  in  Singapore  of  which  we  are  the  auditors  have  been  properly  kept  in  accordance  with  the 
provisions of the Act.

The engagement partner on the audit resulting in this Independent Auditor’s Report is Mr Chaly Mah Chee Kheong. 

Public Accountants and 
Chartered Accountants
Singapore

11 May 2016

127

SINGAPORE TELECOMMUNICATIONS LIMITED 

Consolidated 
Income Statement

For the financial year ended 31 March 2016

Operating revenue

Operating expenses

Other income

Depreciation and amortisation

Exceptional items

Profit on operating activities

Share of results of associates and joint ventures

Notes

2016 
S$ Mil

2015
S$ Mil

4

5

6

7

8

9

 16,961.2 

 17,222.9 

 (12,096.8)

 (12,283.6)

 148.3 

 151.4 

 5,012.7 

 5,090.7 

 (2,148.8)

 (2,161.4)

 (44.8)

 14.8 

 2,819.1 

 2,944.1 

 2,026.6 

 1,735.3 

Profit before interest, investment income (net) and tax

 4,845.7 

 4,679.4 

Interest and investment income (net) 
Finance costs

Profit before tax

Tax expense

Profit after tax

Attributable to -
Shareholders of the Company
Non-controlling interests

10
11

 94.7 
 (359.6)

 92.8 
 (309.2)

 4,580.8 

 4,463.0 

12

 (722.5)

 (678.5)

 3,858.3 

 3,784.5 

 3,870.8 
 (12.5)

 3,781.5 
 3.0 

 3,858.3 

 3,784.5 

Earnings per share attributable to shareholders of  the Company
 - basic (cents)
 - diluted (cents)

13
13

 24.29 
 24.26 

 23.73 
 23.67 

The accompanying notes on pages 137 to 221 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 122 to 126

ANNUAL REPORT 2016

128

Consolidated Statement of 
Comprehensive Income

For the financial year ended 31 March 2016

Profit after tax 

Other comprehensive (loss)/ income:

Items that may be reclassified subsequently to income statement: 

(cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1)(cid:69)(cid:74)(cid:354)(cid:70)(cid:83)(cid:70)(cid:79)(cid:68)(cid:70)(cid:84)(cid:1)(cid:66)(cid:83)(cid:74)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:85)(cid:83)(cid:66)(cid:79)(cid:84)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:80)(cid:71)(cid:1)(cid:71)(cid:80)(cid:83)(cid:70)(cid:74)(cid:72)(cid:79)(cid:1)(cid:80)(cid:81)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)
(cid:1)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:80)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:68)(cid:86)(cid:83)(cid:83)(cid:70)(cid:79)(cid:68)(cid:90)(cid:1)(cid:85)(cid:83)(cid:66)(cid:79)(cid:84)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:69)(cid:74)(cid:354)(cid:70)(cid:83)(cid:70)(cid:79)(cid:68)(cid:70)(cid:84)(cid:1)

Cash flow hedges 
 - Fair value changes during the year 
(cid:1)(cid:14)(cid:1)(cid:53)(cid:66)(cid:89)(cid:1)(cid:70)(cid:354)(cid:70)(cid:68)(cid:85)(cid:84)

 - Fair value changes transferred to income statement 
(cid:1)(cid:14)(cid:1)(cid:53)(cid:66)(cid:89)(cid:1)(cid:70)(cid:354)(cid:70)(cid:68)(cid:85)(cid:84)

Available-for-sale investments 
 - Fair value changes during the year 

2016
S$ Mil

2015
S$ Mil

 3,858.3 

 3,784.5 

 (728.0)

 (519.8)

 (23.3)
 (10.0)
 (33.3)

 21.1 
 11.1 
 32.2 

 499.8 
 (32.4)
 467.4 

 (363.8)
 31.3 
 (332.5)

 (1.1)

 134.9 

 (87.5)

 21.8 

Share of other comprehensive income of associates and joint ventures

 81.5 

 139.0 

Other comprehensive loss, net of tax

Total comprehensive income

Attributable to -
Shareholders of the Company
Non-controlling interests

 (735.1)

 (224.1)

 3,123.2 

 3,560.4 

 3,136.7 
 (13.5)

 3,556.9 
 3.5 

 3,123.2 

 3,560.4 

The accompanying notes on pages 137 to 221 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 122 to 126

129

SINGAPORE TELECOMMUNICATIONS LIMITED 

Statements of 
Financial Position

As at 31 March 2016

Current assets
Cash and cash equivalents
Trade and other receivables
Derivative financial instruments
Inventories

Non-current assets
Property, plant and equipment
Intangible assets
Subsidiaries
Associates
Joint ventures
Available-for-sale (“AFS”) investments
Derivative financial instruments
Deferred tax assets
Loan to an associate
Other non-current receivables

Total assets

Current liabilities
Trade and other payables
Advance billings 
Provision
Current tax liabilities
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Net deferred gain 

Non-current liabilities
Borrowings (unsecured)
Borrowings (secured)
Advance billings 
Net deferred gain
Derivative financial instruments
Deferred tax liabilities
Other non-current liabilities

Total liabilities

Net assets

Share capital and reserves
Share capital
Reserves
Equity attributable to shareholders 
  of the Company
Non-controlling interests
Other reserve

Total equity

Notes

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

Group

Company

15
16
25
17

18
19
20
21
22
24
25
12
26
27

28

29

30
31
25
26

30
31

26
25
12
32

33

 461.8 
 4,366.4 
 17.5 
 319.7 
 5,165.4 

 11,154.0 
 12,968.4 
 – 
 356.3 
 10,729.9 
 147.5 
 622.6 
 692.3 
 1,100.5 
 628.8 
 38,400.3 

 562.8 
 3,885.2 
 29.8 
 289.8 
 4,767.6 

 10,683.2 
 11,948.6 
 – 
 275.2 
 10,571.0 
 268.3 
 742.1 
 803.8 
 1,610.5 
 396.5 
 37,299.2 

 83.7 
 3,029.4 
 9.5 
 21.5 
 3,144.1 

 2,171.4 
 0.3 
 14,182.3 
 603.5 
 21.2 
 35.1 
 321.0 
 – 
 1,100.5 
 175.4 
 18,610.7 

 83.5 
 2,442.4 
 29.9 
 26.8 
 2,582.6 

 2,047.2 
 0.7 
 13,515.0 
 603.5 
 22.1 
 43.6 
 463.5 
 – 
 1,610.5 
 182.6 
 18,488.7 

 43,565.7 

 42,066.8 

 21,754.8 

 21,071.3 

 4,594.0 
 800.2 
 3.1 
 364.4 
 595.5 
 90.2 
 24.6 
 67.9 
 6,539.9 

 9,019.0 
 236.0 
 265.5 
 1,323.3 
 316.2 
 585.3 
 278.0 
 12,023.3 

 4,458.5 
 614.0 
 5.8 
 419.4 
 150.0 
 24.4 
 16.8 
 67.9 
 5,756.8 

 8,590.9 
 213.5 
 265.3 
 1,369.8 
 265.4 
 521.7 
 315.5 
 11,542.1 

 1,582.2 
 76.2 
2.2 
94.1 
 – 
1.5 
13.7 
 – 
 1,769.9 

 747.2 
 158.8 
 139.5 
 – 
 416.7 
 270.5 
 18.4 
 1,751.1 

 18,563.2 

 17,298.9 

 3,521.0 

 1,386.2 
 68.9 
3.4 
140.2 
 – 
1.5 
1.9 
 – 
 1,602.1 

 925.2 
 160.4 
 150.8 
 – 
 447.3 
 248.9 
 30.0 
 1,962.6 

 3,564.7 

 25,002.5 

 24,767.9 

 18,233.8 

 17,506.6 

 2,634.0 
 22,355.2 

 24,989.2 
 35.7 
 (22.4)

 2,634.0 
 22,099.3 

 24,733.3 
 34.6 
 – 

 2,634.0 
 15,599.8 

 18,233.8 
 – 
 – 

 2,634.0 
 14,872.6 

 17,506.6 
 – 
 – 

 25,002.5 

 24,767.9 

 18,233.8 

 17,506.6 

The accompanying notes on pages 137 to 221 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 122 to 126

ANNUAL REPORT 2016

130

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131

SINGAPORE TELECOMMUNICATIONS LIMITED 

Statements of 
Changes in Equity

For the financial year ended 31 March 2016

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I

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

132

Statements of 
Changes in Equity

For the financial year ended 31 March 2016

Company – 2016

Share  
Capital  
S$ Mil

Treasury

Shares (1)
S$ Mil 

Capital
Reserve  
S$ Mil

Hedging
Reserve
S$ Mil

Fair Value
Reserve
S$ Mil

Retained
Earnings
S$ Mil

Total  
Equity  
S$ Mil

Balance as at 1 April 2015

 2,634.0 

 (3.9)

 (70.8)

 12.9 

 34.0 

 14,900.4 

 17,506.6 

Changes in equity for the year

Performance shares purchased  
  by the Company 
Performance shares vested 
Equity-settled share-based payment 
Transfer of liability to equity
Cash paid to employees under  
  performance share plans
Contribution to Trust (6)
Final dividend paid (see Note 34)
Interim dividend paid (see Note 34)

Total comprehensive income/ (loss)  

for the year

 –  
 –
–  
 –  

–  
–  
 –  
 –
 –  

 (4.8)
 7.5 
 –  
 –  

 –  
 –  
–  
 –  
 2.7 

 –  
 (7.5)
 11.3 
 16.4 

 (0.5)
 (20.2)
–  
–  
 (0.5)

 –  
 –  
 –  
 –  

 –  
 –  
 –  
 –  
 –  

 –  
 –  
 –  
 –  

 –  
 –  
 –  
 –  
 –  

 –  
 –  
 –  
 –  

 (4.8)
 – 
 11.3 
 16.4 

 –  
 –  
 (1,705.9)
 (1,084.2)
 (2,790.1)

 (0.5)
 (20.2)
 (1,705.9)
 (1,084.2)
 (2,787.9)

 –

 –  

– 

 33.8 

 (8.5)

 3,489.8 

 3,515.1 

Balance as at 31 March 2016

 2,634.0 

 (1.2)

 (71.3)

 46.7 

 25.5 

 15,600.1 

 18,233.8 

The accompanying notes on pages 137 to 221 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 122 to 126

  
  
 
133

SINGAPORE TELECOMMUNICATIONS LIMITED 

Statements of 
Changes in Equity

For the financial year ended 31 March 2016

Company – 2015

Share  
Capital  
S$ Mil

Treasury

Shares (1)
S$ Mil 

Capital
  Reserve 
S$ Mil

Hedging
Reserve
S$ Mil

Fair Value
Reserve
S$ Mil

Retained
Earnings
S$ Mil

Total  
Equity  
S$ Mil

Balance as at 1 April 2014

2,634.0 

 (1.4)

 (67.4)

 (104.5)

45.3  14,393.3 

 16,899.3 

Changes in equity for the year

Performance shares purchased  
  by the Company 
Performance shares vested 
Equity-settled share-based payment 
Transfer of liability to equity
Cash paid to employees under  
  performance share plans
Contribution to Trust (6)
Final dividend paid (see Note 34)
Interim dividend paid (see Note 34)

Total comprehensive income/ (loss)  

for the year

–
–
–
–

–
–
–
–
–

–

 (5.9)
 3.4 
–
–

–
–
–
–
 (2.5)

–
 (3.6)
 12.8 
 15.2 

(0.2)
 (27.6)
–
–
 (3.4)

–
–
–
–

–
–
–
–
–

–
–
–
–

–
–
–
–
–

–
–
–
–

 (5.9)
 (0.2)
 12.8 
 15.2 

–
–
 (1,594.3)
 (1,084.2)
 (2,678.5)

(0.2)
 (27.6)
 (1,594.3)
 (1,084.2)
 (2,684.4)

–

–

 117.4 

(11.3)

3,185.6

3,291.7

Balance as at 31 March 2015

 2,634.0 

 (3.9)

 (70.8)

 12.9 

 34.0 

 14,900.4 

 17,506.6 

Notes:
(1) 

‘Treasury  Shares’  are  accounted  for  in  accordance  with  Singapore  Financial  Reporting  Standard  (“FRS”)  32,  Financial  Instruments:  Disclosure  and 
Presentation.

(2) 

‘Currency  Translation  Reserve’  relates  mainly  to  the  translation  of  the  net  assets  of  foreign  subsidiaries,  associates  and  joint  ventures  of  the  Group 
denominated mainly in Australian Dollar, Indian Rupee, Indonesian Rupiah, Philippine Peso, Thai Baht and United States Dollar.

(3)    In March 2016, the currency translation loss of S$56 million in respect of the translation of Pacific Bangladesh Telecom Limited (45%-owned joint venture) 

(4)   

has been transferred to the income statement upon the loss of joint control (see Note 8).
‘Other Reserves’ relate mainly to goodwill on acquisitions completed prior to 1 April 2001 and the share of other comprehensive income or loss of the 
associates and joint ventures. 

(5)  This  amount  relates  to  a  reserve  for  an  obligation  arising  from  a  put  option  written  with  the  non-controlling  shareholder  of  Trustwave  Holdings,  Inc. 

(“Trustwave”). When exercised under certain conditions, this will require Singtel to purchase the remaining 2% equity interest in Trustwave.

(6)   DBS Trustee Limited (the “Trust”) is the trustee of a trust established to administer the performance share plans. 
(7)     This includes an amount of S$97.4 million arising from re-assessments of future tax benefits on certain items of property, plant and equipment in respect 

of prior years (see Note 12.2).

The accompanying notes on pages 137 to 221 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 122 to 126

 
ANNUAL REPORT 2016

134

Consolidated Statement 
of Cash Flows

For the financial year ended 31 March 2016

Cash Flows From Operating Activities

Profit before tax

 4,580.8 

 4,463.0 

2016 
S$ Mil

2015 
S$ Mil

Adjustments for -
  Depreciation and amortisation 
  Share of results of associates and joint ventures 
  Exceptional items (non-cash)

Interest and investment income (net)

  Finance costs 
  Other non-cash items

 2,148.8 
 (2,026.6)
 (2.4)
 (94.7)
 359.6 
 34.4 
 419.1 

 2,161.4 
 (1,735.3)
 (57.7)
 (92.8)
 309.2 
 36.7 
 621.5 

Operating cash flow before working capital changes

 4,999.9 

 5,084.5 

Changes in operating assets and liabilities
Trade and other receivables
Trade and other payables
Inventories
Currency translation adjustments

Cash generated from operations

Dividends received from associates and joint ventures
Income tax and withholding tax paid
Payment to employees in cash under performance share plans 

Net cash inflow from operating activities

Cash Flows From Investing Activities

Payment for purchase of property, plant and equipment
Payment for acquisition of subsidiaries, net of cash acquired (Note 1)
Investment in associates and joint ventures
Purchase of intangible assets
Investment in AFS investments
Withholding tax paid on intra-group interest income
Payment for acquisition of non-controlling interests
Repayment of loan by an associate
Proceeds from sale of AFS investments 
Interest received
Contribution from non-controlling interests
Deferred proceeds/ proceeds from disposal of associates and joint ventures
Proceeds from capital reduction of associates and joint ventures
Proceeds from sale of property, plant and equipment
Dividends received from AFS investments (net of withholding tax paid)
Proceeds from sale of intangible assets

 (610.0)
 (392.5)
 (28.9)
 (10.2)

 (625.6)
 802.0 
 (107.1)
 16.9 

 3,958.3 

 5,170.7 

 1,350.7 
 (658.2)
 (3.1)

 1,215.2 
 (598.2)
 (1.1)

 4,647.7 

 5,786.6 

 (1,930.0)
 (1,059.4)
 (215.4)
 (173.3)
 (38.6)
 (26.9)
 –  
 510.0 
 81.3 
 68.1 
 21.2 
 15.6 
 – 
 5.7 
 1.7 
–

 (2,237.6)
 (449.5)
 (1.4)
 (966.0)
 (23.1)
 (31.5)
 (2.9)
–  
 75.0 
 42.3 
 13.1 
 –  
 6.0 
 15.2 
 3.2 
 0.3 

Net cash outflow from investing activities

 (2,740.0)

 (3,556.9)

The accompanying notes on pages 137 to 221 form an integral part of these financial statements. 
Independent Auditor’s Report –pages 122 to 126

 
135

SINGAPORE TELECOMMUNICATIONS LIMITED 

Consolidated Statement 
of Cash Flows

For the financial year ended 31 March 2016

Cash Flows From Financing Activities

Proceeds from term loans
Repayment of term loans
Proceeds from bond issue
Proceeds from finance lease liabilites
Finance lease payments
  Net proceeds from borrowings
Final dividend paid to shareholders of the Company
Interim dividend paid to shareholders of the Company 
Net interest paid on borrowings and swaps
Purchase of performance shares
Dividend paid to non-controlling interests
Others

Note 

2016 
S$ Mil

2015 
S$ Mil

 5,849.5 
 (6,058.2)
 1,321.1 
 57.4 
 (41.1)
 1,128.7 
 (1,705.4)
 (1,083.8)
 (335.6)
 (44.1)
 (4.9)
 1.6 

 4,915.0 
 (4,464.8)
 300.0 
 30.4 
 (43.4)
 737.2 
 (1,593.8)
 (1,083.7)
 (307.3)
 (54.7)
 (5.7)
 (2.6)

Net cash outflow from financing activities

 (2,043.5)

 (2,310.6)

Net decrease in cash and cash equivalents
(cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1)(cid:70)(cid:354)(cid:70)(cid:68)(cid:85)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:68)(cid:66)(cid:84)(cid:73)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:68)(cid:66)(cid:84)(cid:73)(cid:1)(cid:70)(cid:82)(cid:86)(cid:74)(cid:87)(cid:66)(cid:77)(cid:70)(cid:79)(cid:85)(cid:84)
Cash and cash equivalents at beginning of year

 (135.8)
 34.8 
 562.8 

Cash and cash equivalents at end of year

15

 461.8 

 (80.9)
 21.2 
 622.5 

 562.8 

The accompanying notes on pages 137 to 221 form an integral part of these financial statements. 
Independent Auditor’s Report –pages 122 to 126

ANNUAL REPORT 2016

136

Consolidated Statement 
of Cash Flows

For the financial year ended 31 March 2016

Note 1:  Payments for acquisition of subsidiaries

(a)  On 1 September 2015, Singtel acquired 98% of the share capital of Trustwave Holdings, Inc. for S$1.08 billion 
(US$769 million). The fair values of identifiable net assets and the net cash outflow on the acquisition were  
as follows – 

Identifiable intangible assets
Non-current assets 
Cash and cash equivalents
Current assets (excluding cash and cash equivalents)
Total liabilities
Non-controlling interests

Net assets acquired
Goodwill 

Total cash consideration 
Less: Cash and cash equivalents acquired 

Net outflow of cash 

Year ended 
31 March 2016 
S$ Mil

 186.8 
 38.7 
 28.7 
 86.8 
 (329.4)
 2.2 

 13.8 
 1,069.8 

 1,083.6 
 (28.7)

 1,054.9 

The above acquisition had no material impact on the Group’s consolidated income statement, both from 
(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:66)(cid:85)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:66)(cid:68)(cid:82)(cid:86)(cid:74)(cid:84)(cid:74)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:66)(cid:84)(cid:1)(cid:88)(cid:70)(cid:77)(cid:77)(cid:1)(cid:66)(cid:84)(cid:1)(cid:66)(cid:84)(cid:84)(cid:86)(cid:78)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:66)(cid:68)(cid:82)(cid:86)(cid:74)(cid:84)(cid:74)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:73)(cid:66)(cid:69)(cid:1)(cid:67)(cid:70)(cid:70)(cid:79)(cid:1)(cid:70)(cid:354)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:66)(cid:84)(cid:1)(cid:66)(cid:85)(cid:1)(cid:18)(cid:1)(cid:34)(cid:81)(cid:83)(cid:74)(cid:77)(cid:1)(cid:19)(cid:17)(cid:18)(cid:22)(cid:15)

(b)  During the financial year, deferred payments of S$4.5 million were made mainly in respect of the acquisition of 

Adconion Media, Inc. and Adconion Pty Limited (together, “Adconion”).

(c) 

In  the  previous  financial  year,  the  Group  made  payments  to  acquire  Kontera  Technologies,  Inc.,  Adconion 
and Ensyst Pty Limited for S$176 million, S$251 million and S$10 million respectively, and also made deferred 
payments of S$12 million in respect of the acquisitions of Amobee, Inc. and Pixable, Inc. 

Note 2:  Non-cash transactions

In March 2016, Singtel received a dividend distribution of S$60 million from NetLink Trust, a 100%-owned associate 
(cid:80)(cid:71)(cid:1)(cid:52)(cid:74)(cid:79)(cid:72)(cid:85)(cid:70)(cid:77)(cid:13)(cid:1)(cid:88)(cid:73)(cid:74)(cid:68)(cid:73)(cid:1)(cid:88)(cid:66)(cid:84)(cid:1)(cid:80)(cid:354)(cid:84)(cid:70)(cid:85)(cid:1)(cid:66)(cid:72)(cid:66)(cid:74)(cid:79)(cid:84)(cid:85)(cid:1)(cid:66)(cid:79)(cid:1)(cid:66)(cid:78)(cid:80)(cid:86)(cid:79)(cid:85)(cid:1)(cid:69)(cid:86)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:47)(cid:70)(cid:85)(cid:45)(cid:74)(cid:79)(cid:76)(cid:1)(cid:53)(cid:83)(cid:86)(cid:84)(cid:85)(cid:15)(cid:1)(cid:1)

In  October  2014,  Singtel  sold  certain  infrastructure  assets  to  NetLink  Trust  for  an  aggregate  consideration  of  
S$280  million.  The  aggregate  consideration  paid  by  NetLink  Trust  was  financed  by  an  interest-bearing  loan  
from Singtel.

The accompanying notes on pages 137 to 221 form an integral part of these financial statements. 
Independent Auditor’s Report –pages 122 to 126

 
 
137

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

1. 

GENERAL

Singtel is domiciled and incorporated in Singapore and is publicly traded on the Singapore Exchange. The address of 
its registered office is 31 Exeter Road, Comcentre, Singapore 239732.

The principal activities of the Company consist of the operation and provision of telecommunications systems and 
services, and investment holding. The principal activities of the subsidiaries are disclosed in Note 43.

Under a licence granted by the Infocomm Development Authority of Singapore (“IDA”), the Group had the exclusive 
rights to provide fixed national and international telecommunications services through 31 March 2000 (with limited 
exceptions) and public cellular mobile telephone services through 31 March 1997. From the expiry of the exclusive rights, 
the Group’s licences for these telecommunications services continue on a non-exclusive basis to 31 March 2017.  

In addition, the Group is licensed to offer Internet services and has also obtained frequency spectrum and licence rights 
from IDA to install, operate and maintain mobile communication systems and services including wireless broadband 
systems and services.  The Group also holds the requisite licence from the Media Development Authority of Singapore 
for the purpose of providing subscription nationwide television services.

In Australia, Optus was granted telecommunication licences under the Telecommunications Act 1991. Pursuant to the 
Telecommunications (Transitional Provisions and Consequential Amendments) Act 1997, the licences continued to have 
effect after the deregulation of telecommunications in Australia in 1997.  The licences do not have a finite term, but are 
of continuing operation until cancelled under the Telecommunications Act 1997.

These financial statements were authorised and approved for issue in accordance with a Directors’ resolution dated  
11 May 2016.

2. 

SIGNIFICANT ACCOUNTING POLICIES

2.1 

Basis of Accounting 

The financial statements are prepared in accordance with Singapore Financial Reporting Standards (“FRS”) including 
related interpretations, and the provisions of the Singapore Companies Act. They have been prepared under the 
historical cost convention, except as disclosed in the accounting policies below. 

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

The preparation of financial statements in conformity with FRS requires management to exercise its judgement in the 
process of applying the Group’s accounting policies. It also requires the use of accounting estimates and assumptions 
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date 
of the financial statements, and the reported amounts of revenues and expenses during the financial year. Although 
these  estimates  are  based  on  management’s  best  knowledge  of  current  events  and  actions,  actual  results  may 
ultimately differ from those estimates. Critical accounting estimates and assumptions used that are significant to the 
financial statements, and areas involving a higher degree of judgement are disclosed in Note 3.

The accounting policies have been consistently applied by the Group, and are consistent with those used in the 
previous financial year. The adoption of the new or revised FRS and Interpretations to FRS (“INT FRS”) which were 
mandatory from 1 April 2015 had no significant impact on the financial statements of the Group or the Company in 
the current financial year.  

 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

138

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.2  Group Accounting

The  accounting  policy  for  investments  in  subsidiaries,  associates  and  joint  ventures  in  the  Company’s  financial 
statements is stated in Note 2.4. The Group’s accounting policy on goodwill is stated in Note 2.15.1.

2.2.1  Subsidiaries

Subsidiaries are entities (including structured entities) controlled by the Group. Control exists when the Group has 
power  over  the  entity,  is  exposed,  or  has  rights,  to  variable  returns  from  its  involvement  with  the  entity  and  has 
the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights 
that give the Group the ability to direct activities that significantly affect the entity’s returns. The Group reassesses 
whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of 
the elements of control listed above. Subsidiaries are consolidated from the date that control commences until the 
date that control ceases. All significant inter-company balances and transactions are eliminated on consolidation.

2.2.2  Associates 

Associates are entities over which the Group has significant influence. Significant influence is the power to participate 
in the financial and operating policy decisions of the investee but is not control or joint control over those policies. 

Investments in associates are accounted for in the consolidated financial statements using the equity method of 
accounting. Equity accounting involves recording the investment in associates initially at cost, and recognising the 
Group’s share of the post-acquisition results of associates in the consolidated income statement, and the Group’s 
share of post-acquisition reserve movements in reserves. The cumulative post-acquisition movements are adjusted 
against the carrying amount of the investments in the consolidated statement of financial position. 

In  the  consolidated  statement  of  financial  position,  investments  in  associates  include  goodwill  on  acquisition 
identified on acquisitions completed on or after 1 April 2001, net of accumulated impairment losses. Goodwill is 
assessed for impairment as part of the investment in associates.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including loans that 
are in fact extensions of the Group’s investment, the Group does not recognise further losses, unless it has incurred 
or guaranteed obligations in respect of the associate.

Unrealised gains resulting from transactions with associates are eliminated to the extent of the Group’s interest in 
the associate. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there 
is no evidence of impairment.

2.2.3  Joint ventures

Joint ventures are joint arrangements whereby the parties that have joint control of the arrangement have rights  
to  the  net  assets  of  the  joint  arrangements.  Joint  control  is  the  contractually  agreed  sharing  of  control  of  an  
arrangement,  which  exists  only  when  decisions  about  the  relevant  activities  require  unanimous  consent  of  the 
parties sharing the control. 

The  Group’s  interest  in  joint  ventures  is  accounted  for  in  the  consolidated  financial  statements  using  the  equity 
method of accounting.

In the consolidated statement of financial position, investments in joint ventures include goodwill on acquisition 
identified on acquisitions completed on or after 1 April 2001, net of accumulated impairment losses. Goodwill is 
assessed for impairment as part of the investment in joint ventures.

The Group’s interest in its unincorporated joint operations is accounted for by recognising the Group’s assets and 
liabilities from the joint operations, as well as expenses incurred by the Group and the Group’s share of income 
earned from the joint operations, in the consolidated financial statements.

Unrealised gains resulting from transactions with joint ventures are eliminated to the extent of the Group’s interest 
in the joint venture. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that 
there is no evidence of impairment.

 
 
 
 
 
 
 
 
 
 
 
 
 
139

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.2.4  Dividends from associates and joint ventures 

Dividends received from an associate or joint venture in excess of the Group’s carrying value of the equity accounted 
investee are recognised as dividend income in the income statement where there is no legal or constructive obligation 
to refund the dividend nor is there any commitment to provide financial support to the investee. Equity accounting 
is then suspended until the investee has made sufficient profits to cover the income previously recognised for the 
excess cash distributions. 

2.2.5  Structured entity

The  Trust  has  been  consolidated  in  the  consolidated  financial  statements  under  FRS  110,  Consolidated  Financial 
Statements.

2.2.6  Business combinations

Business combinations are accounted for using the acquisition method on and after 1 April 2010. The consideration 
for each acquisition is measured at the aggregate of the fair values of assets given, liabilities incurred and equity 
interests issued by the Group and any contingent consideration arrangement at acquisition date. Acquisition-related 
costs, other than those associated with the issue of debt or equity, are expensed as incurred. 

Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration 
is classified as equity, it is not re-measured and settlement is accounted for within equity. Otherwise, subsequent 
changes to the fair value of the contingent consideration are recognised in the income statement.

For business combinations that are achieved in stages, any existing equity interests in the acquiree entity are re-
measured to their fair values at acquisition date and any changes are taken to the income statement.

Non-controlling  interests  in  subsidiaries  represent  the  equity  in  subsidiaries  which  are  not  attributable,  directly 
or indirectly, to the shareholders of the Company, and are presented separately in the consolidated statement of 
comprehensive income, statement of changes in equity and within equity in the consolidated statement of financial 
position.  The  Group  elects  for  each  individual  business  combination  whether  non-controlling  interests  in  the 
acquiree entity are recognised at fair value, or at the non-controlling interests’ proportionate share of the fair value 
of the acquiree entity’s identifiable net assets, at the acquisition date. Total comprehensive income is attributed to 
non-controlling interests based on their respective interests in a subsidiary, even if this results in the non-controlling 
interests having a debit balance. 

Changes  in  the  Group’s  interest  in  subsidiaries  that  do  not  result  in  loss  of  control  are  accounted  for  as  equity 
transactions. 

When the Group loses control of a subsidiary, any interest retained in the former subsidiary is recorded at fair value 
with the re-measurement gain or loss recognised in the income statement. 

2.3 

Share Capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new equity shares 
are taken to equity as a deduction, net of tax, from the proceeds. 

When the Company purchases its own equity share capital, the consideration paid, including any directly attributable 
costs, is recognised as ‘Treasury Shares’ within equity. When the shares are subsequently disposed, the realised gains 
or losses on disposal of the treasury shares are included in ‘Other Reserves’ of the Company.

The  Trust  acquires  shares  in  the  Company  from  the  open  market  for  delivery  to  employees  upon  vesting  of 
performance  shares  awarded  under  Singtel  performance  share  plans.  Such  shares  are  designated  as  ‘Treasury 
Shares’. In the consolidated financial statements, the cost of unvested shares, including directly attributable costs, is 
recognised as ‘Treasury Shares’ within equity. 

Upon  vesting  of  the  performance  shares,  the  weighted  average  costs  of  the  shares  delivered  to  employees, 
whether held by the Company or the Trust, are transferred to ‘Capital Reserve’ within equity in the consolidated  
financial statements.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

140

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.4 

Investments in Subsidiaries, Associates and Joint Ventures 

In the Company’s statement of financial position, investments in subsidiaries, associates and joint ventures, including 
loans that meet the definition of equity instruments, are stated at cost less accumulated impairment losses.  Where 
an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately 
to  its  recoverable  value.  On  disposal  of  investments  in  subsidiaries,  associates  and  joint  ventures,  the  difference 
between the net disposal proceeds and the carrying amount of the investment is recognised in the income statement 
of the Company.

2.5 

Investments

Purchases  and  sales  of  investments  are  recognised  on  trade  date,  which  is  the  date  that  the  Group  commits  to 
purchase or sell the investment.

2.5.1  Available-for-sale (“AFS”) investments

AFS investments are initially recognised at fair value plus directly attributable transaction costs.  

They  are  subsequently  stated  at  fair  value  at  the  end  of  the  reporting  period,  with  all  resulting  gains  and  losses, 
including currency translation differences, taken to the ‘Fair Value Reserve’ within equity. AFS investments for which 
fair values cannot be reliably determined are stated at cost less accumulated impairment losses.   

When AFS investments are sold or impaired, the accumulated fair value adjustments in the ‘Fair Value Reserve’ are 
included in the income statement.

A significant or prolonged decline in fair value below the cost is objective evidence of impairment. Impairment loss  
is  computed  as  the  difference  between  the  acquisition  cost  and  current  fair  value,  less  any  impairment  loss  
previously recognised in the income statement. Impairment losses recognised in the income statement on equity 
investments are not reversed through the income statement until the equity investments are disposed.

2.6  Derivative Financial Instruments and Hedging Activities

Derivative financial instruments are initially recognised at fair value on the date the derivative contract is entered into 
and are subsequently re-measured at their fair values at the end of each reporting period. 

A derivative financial instrument is carried as an asset when the fair value is positive and as a liability when the fair 
value is negative.

Any gains or losses arising from changes in fair value are recognised immediately in the income statement, unless 
they qualify for hedge accounting.

2.6.1  Hedge accounting

At  the  inception  of  a  hedge  relationship,  the  Group  formally  designates  and  documents  the  hedge  relationship 
to  which  the  Group  wishes  to  apply  hedge  accounting,  as  well  as  its  risk  management  objectives  and  strategy 
for  undertaking  the  hedge  transactions.  The  documentation  includes  identification  of  the  hedging  instrument, 
the  hedged  item  or  transaction,  the  nature  of  the  risk  being  hedged  and  how  the  entity  will  assess  the  hedging 
instrument’s  effectiveness  in  offsetting  the  exposure  to  changes  in  the  hedged  item’s  fair  value  or  cash  flows 
attributable to the hedged risk.  Such hedges are expected to be highly effective in achieving offsetting changes 
in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly 
effective throughout the financial reporting periods for which they are designated.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
141

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.6.1  Hedge accounting  (Cont’d)

Fair value hedge
Designated derivative financial instruments that qualify for fair value hedge accounting are initially recognised at fair 
value on the date that the contract is entered into. Changes in fair value of derivatives are recorded in the income 
statement together with any changes in the fair value of the hedged items that are attributable to the hedged risks. 

Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires 
or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. The adjustment to the carrying 
amount of the hedged item arising from the hedged risk is amortised to the income statement from that date. 

Cash flow hedge
The  effective  portion  of  changes  in  the  fair  value  of  the  designated  derivative  financial  instruments  that  qualify 
as cash flow hedges are recognised in ‘Other Comprehensive Income’. The gain or loss relating to the ineffective 
portion  is  recognised  immediately  in  the  income  statement.  Amounts  accumulated  in  the  ‘Hedging  Reserve’  are 
transferred to the income statement in the periods when the hedged items affect the income statement.

Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires 
or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. Any cumulative gain or loss deferred 
in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in 
the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that 
was deferred in equity is recognised immediately in the income statement.

Net investment hedge
Changes  in  the  fair  value  of  designated  derivatives  that  qualify  as  net  investment  hedges,  and  which  are  highly 
effective, are recognised in ‘Other Comprehensive Income’ in the consolidated financial statements and the amounts 
accumulated in ‘Currency Translation Reserve’ are transferred to the consolidated income statement in the period 
when the foreign operation is disposed. 

In the Company’s financial statements, the gain or loss on the financial instrument used to hedge a net investment 
in a foreign operation of the Group is recognised in the income statement.

The Group has entered into the following derivative financial instruments to hedge its risks, namely -

Cross currency swaps and interest rate swaps are fair value hedges for the interest rate risk and cash flow hedges for 
the currency risk arising from the Group’s issued bonds. The swaps involve the exchange of principal and floating or 
fixed interest receipts in the foreign currency in which the issued bonds are denominated, for principal and floating 
or fixed interest payments in the Group’s functional currency.

Certain cross currency swaps relate to net investment hedges for the foreign currency exchange risk on the Group’s 
Australia operations.

Forward foreign exchange contracts are cash flow hedges for the Group’s exposure to foreign currency exchange 
risks arising from forecasted or committed expenditure.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

142

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.7 

Fair Value Estimation of Financial Instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction 
between market participants at the measurement date, regardless of whether that price is directly observable or 
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes 
into account the characteristics of the asset or liability which market participants would take into account when 
pricing the asset or liability at the measurement date.  

The following methods and assumptions are used to estimate the fair value of each class of financial instrument –

Bank balances, receivables and payables, current borrowings
The carrying amounts approximate fair values due to the relatively short term maturity of these instruments.

Quoted and unquoted investments
The fair value of investments traded in active markets is based on the market quoted mid-price (average of offer and 
bid price) or the mid-price quoted by the market maker at the close of business at the end of the reporting period. 

The fair values of unquoted investments are determined by using valuation techniques. These include the use of 
recent arm’s length transactions, reference to the net asset values of the investee companies or discounted cash 
flow analysis.

Cross currency and interest rate swaps
The fair value of a cross currency or an interest rate swap is the estimated amount that the swap contract can be 
exchanged for or settled with under normal market conditions. This fair value can be estimated using the discounted 
cash flow method where the future cash flows of the swap contract are discounted at the prevailing market foreign 
exchange rates and interest rates. Market interest rates are actively quoted interest rates or interest rates computed 
by applying techniques to these actively quoted interest rates.

Forward foreign currency contracts
The  fair  value  of  forward  foreign  exchange  contracts  is  determined  using  forward  exchange  market  rates  for 
contracts with similar maturity profiles at the end of the reporting period.

Non-current borrowings 
For disclosure purposes, the fair values of non-current borrowings which are traded in active markets are based on 
the market quoted ask price. For other non-current borrowings, the fair values are based on valuations provided by 
service providers or estimated by discounting the future contractual cash flows using discount rates based on the 
borrowing rates which the Group expects would be available at the end of the reporting period.

2.8 

Financial Guarantee Contracts

Financial guarantees issued by the Company prior to 1 April 2010 are recorded initially at fair values plus transactions 
costs and amortised in the income statement over the period of the guarantee. Financial guarantees issued by the 
Company on or after 1 April 2010 are directly charged to the subsidiary as guarantee fees based on fair values.

2.9 

Trade and Other Receivables

Trade and other receivables, including loans given by the Company to subsidiaries, associates and joint ventures, 
are  recognised  initially  at  fair  values  and,  other  than  those  that  meet  the  definition  of  equity  instruments,  are 
subsequently measured at amortised cost using the effective interest method, less allowance for impairment. 

An allowance for impairment of trade and other receivables is established when there is objective evidence that 
the  Group  will  not  be  able  to  collect  all  amounts  due  according  to  the  original  terms  of  the  debts.  Loss  events 
include financial difficulty or bankruptcy of the debtor, significant delay in payments and breaches of contracts. The 
impairment loss, measured as the difference between the debt’s carrying amount and the present value of estimated 
future cash flows discounted at the original effective interest rate, is recognised in the income statement. When 
the debt becomes uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts 
previously written off are recognised in the income statement.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
143

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.10  Trade and Other Payables

Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost using the 
effective interest method.

2.11  Borrowings

Borrowings are initially recognised at fair value of the consideration received less directly attributable transaction 
costs. After initial recognition, unhedged borrowings are subsequently stated at amortised cost using the effective 
interest  method.  Hedged  borrowings  are  accounted  for  in  accordance  with  the  accounting  policies  set  out  in  
Note 2.6.1. 

2.12  Cash and Cash Equivalents

For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise cash on hand, 
balances with banks and fixed deposits with original maturity of mainly three months or less, net of bank overdrafts 
which are repayable on demand and which form an integral part of the Group’s cash management.  

Bank overdrafts are included under borrowings in the statement of financial position.

2.13  Foreign Currencies

2.13.1  Functional and presentation currency 

Items  included  in  the  financial  statements  of  each  entity  in  the  Group  are  measured  using  the  currency  of  the 
primary economic environment in which the entity operates (the “functional currency”). The statement of financial 
position and statement of changes in equity of the Company and consolidated financial statements of the Group 
are  presented  in  Singapore  Dollar,  which  is  the  functional  and  presentation  currency  of  the  Company  and  the 
presentation currency of the Group. 

2.13.2 Transactions and balances

Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional 
currency at the exchange rates prevailing at the date of the transactions.  Monetary assets and liabilities denominated 
in foreign currencies at the end of the reporting period are translated at exchange rates ruling at that date. Foreign 
exchange differences arising from translation are recognised in the income statement.  

2.13.3 Translation of foreign operations’ financial statements

In  the  preparation  of  the  consolidated  financial  statements,  the  assets  and  liabilities  of  foreign  operations  are 
translated to Singapore Dollar at exchange rates ruling at the end of the reporting period except for share capital 
and reserves which are translated at historical rates of exchange (see Note 2.13.4 for translation of goodwill and fair 
value adjustments). 

Income and expenses in the income statement are translated using either the average exchange rates for the month 
or year, which approximate the exchange rates at the dates of the transactions. All resulting translation differences 
are taken directly to ‘Other Comprehensive Income’.

On  loss  of  control  of  a  subsidiary,  loss  of  significant  influence  of  an  associate  or  loss  of  joint  control  of  a  joint 
venture, the accumulated translation differences relating to that foreign operation are reclassified from equity to the 
consolidated income statement as part of gain or loss on disposal. 

On partial disposal where there is no loss of control of a subsidiary, the accumulated translation differences relating 
to the disposal are reclassified to non-controlling interests. For partial disposals of associates or joint ventures, the 
accumulated translation differences relating to the disposal are taken to the consolidated income statement.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

144

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.13.4 Translation of goodwill and fair value adjustments

Goodwill and fair value adjustments arising on the acquisition of foreign entities completed on or after 1 April 2005 
are treated as assets and liabilities of the foreign entities and are recorded in the functional currencies of the foreign 
entities and translated at the exchange rates prevailing at the end of the reporting period. However, for acquisitions 
of foreign entities completed prior to 1 April 2005, goodwill and fair value adjustments continue to be recorded at 
the exchange rates at the respective dates of the acquisitions.

2.13.5 Net investment in a foreign entity 

The exchange differences on loans from the Company to its subsidiaries, associates or joint ventures which form 
part  of  the  Company’s  net  investment  in  the  subsidiaries,  associates  or  joint  ventures  are  included  in  ‘Currency 
Translation  Reserve’.  On  disposal  of  the  foreign  entity,  the  accumulated  exchange  differences  deferred  in  the 
‘Currency Translation Reserve’ are reclassified to the consolidated income statement in a similar manner as described 
in Note 2.13.3. 

2.14  Provisions

A  provision  is  recognised  when  there  is  a  present  legal  or  constructive  obligation  as  a  result  of  past  events,  it  is 
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a 
reliable estimate can be made of the amount of the obligation. No provision is recognised for future operating losses.

The provision for liquidated damages in respect of information technology contracts is made based on management’s 
best estimate of the anticipated liability.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.

2.15 

Intangible Assets

2.15.1  Goodwill

Goodwill  on  acquisition  of  subsidiaries  on  and  after  1  April  2010  represents  the  excess  of  the  consideration 
transferred, the recognised amount of any non-controlling interest in the acquiree entity and the fair value of any 
previous equity interest in the acquiree entity over the fair value of the net identifiable assets acquired, including 
contingent liabilities, at the acquisition date. Such goodwill is recognised separately as intangible asset and stated at 
cost less accumulated impairment losses.

Acquisitions completed prior to 1 April 2001
Goodwill on acquisitions  of  subsidiaries, associates and joint  ventures  completed prior  to 1  April  2001 had been 
adjusted  in  full  against  ‘Other  Reserves’  within  equity.  Such  goodwill  has  not  been  retrospectively  capitalised  
and amortised.

The Group also had acquisitions where the costs of acquisition were less than the fair value of identifiable net assets 
acquired. Such differences (negative goodwill) were adjusted against ‘Other Reserves’ in the year of acquisition.

Goodwill which has been previously taken to ‘Other Reserves’, is not taken to income statement when the entity is 
disposed of or when the goodwill is impaired.

 
 
 
 
 
 
 
 
 
 
   
145

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.15.1  Goodwill (Cont’d)

Acquisitions completed on or after 1 April 2001
Prior to 1 April 2004, goodwill on acquisitions of subsidiaries, associates and joint ventures completed on or after 
1 April 2001 was capitalised and amortised on a straight-line basis in the consolidated income statement over its 
estimated useful life of up to 20 years. In addition, goodwill was assessed for indications of impairment at the end of 
each reporting period.

Since 1 April 2004, goodwill is no longer amortised but is tested annually for impairment or whenever there is an 
indication of impairment (see Note 2.16). The accumulated amortisation for goodwill as at 1 April 2004 had been 
eliminated with a corresponding decrease in the capitalised goodwill.

A bargain purchase gain is recognised directly in the consolidated income statement.

Gains or losses on disposal of subsidiaries, associates and joint ventures include the carrying amount of capitalised 
goodwill relating to the entity sold.

2.15.2 Other intangible assets

Expenditure  on  telecommunication  and  spectrum  licences  is  capitalised  and  amortised  using  the  straight-line 
method over their estimated useful lives of 4 to 25 years. 

Other  intangible  assets  which  are  acquired  in  business  combinations  are  carried  at  fair  values  at  the  date  of 
acquisition, and amortised on a straight-line basis over the period of the expected benefits. Customer relationships 
or customer contracts, brand, and technology have estimated useful lives of 4 to 10 years. Other intangible assets 
are stated at cost less accumulated amortisation and accumulated impairment losses.   

2.16 

Impairment of Non-Financial Assets

Goodwill  on  acquisition  of  subsidiaries  is  subject  to  annual  impairment  test  or  is  more  frequently  tested  for 
impairment  if  events  or  changes  in  circumstances  indicate  that  it  might  be  impaired.  Goodwill  is  not  amortised  
(see Note 2.15.1).

Other  intangible  assets  of  the  Group,  which  have  finite  useful  lives  and  are  subject  to  amortisation,  as  well  as 
property, plant and equipment and investments in subsidiaries, associates and joint ventures, are reviewed at the 
end of each reporting period to determine whether there is any indicator for impairment, or whenever events or 
changes in circumstances indicate that the carrying amount may not be recoverable. If any such indication exists, 
the assets’ recoverable amounts are estimated. 

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately 
identifiable cash flows (cash-generating units).

An  impairment  loss  is  recognised  for  the  amount  by  which  the  asset’s  carrying  amount  exceeds  its  recoverable 
amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and value-in-use.  

An impairment loss for an asset, other than goodwill on acquisition of subsidiaries, is reversed if, and only if, there 
has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss 
was recognised. Impairment loss on goodwill on acquisition of subsidiaries is not reversed in the subsequent period.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

146

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.17 

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined on the weighted average 
basis. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of 
completion and selling expenses.

Work-in-progress is stated at costs less progress payments received and receivable on uncompleted information 
technology projects, and fibre rollout. Costs include third party hardware and software costs, direct labour and other 
direct expenses attributable to the project activity and associated profits recognised on projects-in-progress. 

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as 
an expense immediately.

In the consolidated statement of financial position, work-in-progress is included in “Trade and other receivables”, 
and the excess of progress billings over work-in-progress is included in “Trade and other payables” as applicable.

2.18  Property, Plant and Equipment

Property,  plant  and  equipment  is  stated  at  cost  less  accumulated  depreciation  and  accumulated  impairment 
losses, where applicable. The cost of self-constructed assets includes the cost of material, direct labour, capitalised 
borrowing costs and an appropriate proportion of production overheads.

Depreciation is calculated on a straight-line basis to write off the cost of the property, plant and equipment over its 
expected useful life. Property, plant and equipment under finance lease is depreciated over the shorter of the lease 
term or useful life. The estimated useful lives are as follows –

Buildings
Transmission plant and equipment
Switching equipment
Other plant and equipment

No. of years

5 - 40
5 - 25
3 - 10
3 - 20

Other plant and equipment consist mainly of motor vehicles, office equipment, and furniture and fittings.

No  depreciation  is  provided  on  freehold  land,  long-term  leasehold  land  with  a  remaining  lease  period  of  more 
than 100 years and capital work-in-progress. Leasehold land with a remaining lease period of 100 years or less is 
depreciated in equal instalments over its remaining lease period.

In respect of capital work-in-progress, assets are depreciated from the month the asset is completed and ready  
for use.

Costs to acquire computer software which are an integral part of the related hardware are capitalised and recognised 
as assets and included in property, plant and equipment when it is probable that the costs will generate economic 
benefits beyond one year and the costs are associated with identifiable software products which can be reliably 
measured by the Group.

 
 
 
 
 
 
 
 
 
 
 
147

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.18  Property, Plant and Equipment (Cont’d)

The  cost  of  property,  plant  and  equipment  includes  expenditure  that  is  directly  attributable  to  the  acquisition 
of  the  items.  Dismantlement,  removal  or  restoration  costs  are  included  as  part  of  the  cost  if  the  obligation  for 
dismantlement, removal or restoration is incurred as a consequence of acquiring or using the asset. Costs may also 
include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases 
of property, plant and equipment. Subsequent expenditure is included in the carrying amount of an asset when it is 
probable that future economic benefits, in excess of the originally assessed standard of performance of the existing 
asset, will flow to the Group.

The residual values and useful lives of property, plant and equipment are reviewed, and adjusted as appropriate, at 
the end of each reporting period. 

On disposal of property, plant and equipment, the difference between the disposal proceeds and its carrying value 
is taken to the income statement.

2.19  Leases

2.19.1  Finance leases

Finance leases are those leasing agreements which effectively transfer to the Group substantially all the risks and 
benefits incidental to ownership of the leased items. Assets financed under such leases are treated as if they had 
been  purchased  outright  at  the  lower  of  fair  value  and  present  value  of  the  minimum  lease  payments  and  the 
corresponding leasing commitments are shown as obligations to the lessors.

Lease payments are treated as consisting of capital repayments and interest elements. Interest is charged to the 
income  statement  over  the  period  of  the  lease  to  produce  a  constant  rate  of  charge  on  the  balance  of  capital 
repayments outstanding.

2.19.2 Operating leases

Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are 
classified as operating leases. Operating lease payments are recognised as expenses in the income statement on a 
straight-line basis over the period of the lease.

2.19.3 Sales of network capacity 

Sales of network capacity are accounted as finance leases where –

(i) 
(ii) 
(iii) 
(iv) 
(v) 

the purchaser’s right of use is exclusive and irrevocable;
the asset is specific and separable;
the terms of the contract are for the major part of the asset’s economic useful life;
the attributable costs or carrying value can be measured reliably; and
no significant risks are retained by the Group.

Sales of network capacity that do not meet the above criteria are accounted for as operating leases.

2.19.4 Gains or losses from sale and leaseback

Gains on sale and leaseback transactions resulting in finance leases are deferred and amortised over the lease term 
on a straight-line basis, while losses are recognised immediately in the income statement.  

Gains and losses on sale and leaseback transactions established at fair value which resulted in operating leases are 
recognised immediately in the income statement.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

148

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.19.5 Capacity swaps

The Group may exchange network capacity with other capacity or service providers. The exchange is regarded as a 
transaction which generates revenue unless the transaction lacks commercial substance or the fair value of neither 
the capacity received nor the capacity given up is reliably measurable.    

2.20  Revenue Recognition

Revenue for the Group is recognised based on fair value for sale of goods and services rendered, net of goods and 
services tax, rebates and discounts, and after eliminating sales within the Group. 

Revenue includes the gross income received and receivable from revenue sharing arrangements entered into with 
overseas telecommunication companies in respect of traffic exchanged. 

Revenue  from  subscription  contract  is  recognised  ratably  over  the  service,  maintenance  or  subscription  period.

For mobile device repayment plans, the consideration is allocated to its separate revenue-generating activities based 
on the best estimate of the price of each activity in the arrangement. Handset sales are accounted for in accordance 
with  the  sale  of  equipment  accounting  policy  (see  below)  of  the  Group.  As  the  service  credits  under  the  device 
repayment plans are provided over time for services, they are recorded as a reduction of subscription revenue.

For prepaid cards which have been sold, provisions for unearned revenue are made for services which have not been 
rendered as at the end of the reporting period. Expenses directly attributable to the unearned revenue are deferred 
until the revenue is recognised.

Revenue from the sale of equipment is recognised upon the transfer of significant risks and rewards of ownership of 
the goods to the customer which generally coincides with delivery and acceptance of the goods sold.

Revenues for system and network installation and integration projects are recognised based on the percentage of 
completion  of  the  projects  using  cost-to-cost  basis.  Revenues  from  the  rendering  of  services  which  involve  the 
procurement of computer equipment, third party software for installation and information technology professional 
service are recognised upon full completion of the projects.

Revenue from sale of perpetual software licenses and the related hardware are recognised when title passes to the 
customer, generally upon delivery.

Revenue from digital advertising services and solutions is recognised when advertising services are delivered, and 
when digital advertising impressions are delivered or click-throughs occur. Revenue from selling advertising space 
is recognised when the advertising space is filled and sold to customers.

Dividend income is recorded gross in the income statement when the right to receive payment is established.

Interest income is recognised on a time proportion basis using the effective interest method.

Rental income from operating leases is recognised on a straight-line basis over the term of the lease.

2.21  Employees’ Benefits

2.21.1  Defined contribution plans

Defined  contribution  plans  are  post-employment  benefit  plans  under  which  the  Group  pays  fixed  contributions 
into  separate  entities  such  as  the  Central  Provident  Fund.  The  Group  has  no  legal  or  constructive  obligation  to 
pay further contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to 
employee services in the current and preceding financial years.

The Group’s contributions to the defined contribution plans are recognised in the income statement as expenses in 
the financial year to which they relate.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
149

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.21.2 Employees’ leave entitlements

Employees’ entitlements to annual leave and long service leave are recognised when they accrue to employees.  A 
provision is made for the estimated liability of annual leave and long service leave as a result of services rendered by 
employees up to the end of the reporting period.

2.21.3 Share-based compensation

Performance shares and share options
The  performance  share  plans  of  the  Group  are  accounted  for  either  as  equity-settled  share-based  payments  
or cash-settled share-based payments. The share option plans of the subsidiaries are accounted as equity-settled 
share-based payments. Equity-settled share-based payments are measured at fair value at the date of grant, whereas 
cash-settled  share-based  payments  are  measured  at  current  fair  value  at  the  end  of  each  reporting  period.  The 
share-based payment expense is amortised and recognised in the income statement on a straight-line basis over 
the vesting period.  

At the end of each reporting period, the Group revises its estimates of the number of equity instruments that the 
participants are expected to receive based on non-market vesting conditions. The difference is charged or credited 
to the income statement, with a corresponding adjustment to equity or liability for equity-settled and cash-settled 
share-based payments respectively.

The  dilutive  effects  of  the  Singtel  performance  share  plans  are  reflected  as  additional  share  dilution  in  the  
computation of diluted earnings per share.

2.22  Borrowing Costs

Borrowing  costs  include  interest,  amortisation  of  discounts  or  premiums  relating  to  borrowings,  amortisation 
of  ancillary  costs  incurred  in  arranging  borrowings,  and  finance  lease  charges.  Borrowing  costs  are  generally 
expensed as incurred, except to the extent that they are capitalised if they are directly attributable to the acquisition, 
construction, or production of a qualifying asset.

2.23  Customer Acquisition and Retention Costs

Customer  acquisition  and  retention  costs,  including  related  sales  and  promotion  expenses  and  activation 
commissions, are expensed as incurred.

2.24  Pre-incorporation Expenses

Pre-incorporation expenses are expensed as incurred.

2.25  Government Grants

Grants in recognition of specific expenses are recognised in the income statement over the periods necessary to 
match them with the relevant expenses they are intended to compensate. Grants related to depreciable assets are 
deferred and recognised in the income statement over the period in which such assets are depreciated and used in 
the projects subsidised by the grants.

2.26  Exceptional Items

Exceptional items refer to items of income or expense within the income statement from ordinary activities that are 
of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance 
for the financial year.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

150

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

2.27 

Income Tax

Income tax expense comprises current and deferred tax.

The current tax is based on taxable profit for the year. Taxable profit differs from profit as reported in the income 
statement  as  it  excludes  items  of  income  or  expense  that  are  taxable  or  deductible  in  other  years  and  it  further 
excludes items that are not taxable or tax deductible. The Group’s liability for current tax is calculated using tax rates 
(and tax laws) that have been enacted or substantively enacted in countries where the Company and its subsidiaries 
operate by, at the end of the reporting period.

Deferred  taxation  is  provided  in  full,  using  the  liability  method,  on  all  temporary  differences  at  the  end  of  the 
reporting period between the tax bases of assets and liabilities and their carrying amounts in the financial statements.  
However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than 
a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss, it is 
not accounted for. Deferred income tax is also not recognised for goodwill which is not deductible for tax purposes. 
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying 
amount of assets and liabilities, using tax rates (and laws) enacted or substantively enacted in countries where the 
Company and its subsidiaries operate by, at the end of the reporting period.

Deferred  tax  liabilities  are  provided  on  all  taxable  temporary  differences  arising  on  investments  in  subsidiaries, 
associates and joint ventures, except where the timing of the reversal of the temporary difference can be controlled 
and it is probable that the temporary difference will not reverse in the foreseeable future.  

Deferred tax assets are recognised for all deductible temporary differences and carry forward of unutilised tax losses, 
to the extent that it is probable that future taxable profit will be available against which the deductible temporary 
differences and carry forward of unused losses can be utilised.

At  the  end  of  each  reporting  period,  the  Group  re-assesses  unrecognised  deferred  tax  assets  and  the  carrying 
amount of deferred tax assets. The Group recognises a previously unrecognised deferred tax asset to the extent 
that it is probable that future taxable profit will allow the deferred tax asset to be recovered. The Group conversely 
reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient future 
taxable profit will be available to allow the benefit of all or part of the deferred tax asset to be utilised.

Current and deferred tax are charged or credited directly to equity if the tax relates to items that are credited or 
charged, in the same or different period, directly to equity.

2.28  Dividends

Interim dividends are recorded in the financial year in which they are declared payable. Final dividends are recorded 
in the financial year in which the dividends are approved by the shareholders.

2.29  Segment Reporting

An operating segment is identified as the component of the Group that is regularly reviewed by the chief operating 
decision maker in order to allocate resources to the segment and to assess its performance. 

2.30   Non-current Assets (or Disposal Groups) Held for Sale

Non-current  assets  (or  disposal  groups)  are  classified  as  assets  held  for  sale  and  stated  at  the  lower  of  carrying 
amount and fair value less costs to sell if their carrying amounts are recovered principally through sale transactions 
rather than through continuing use.  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
151

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

3. 

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

FRS 1, Presentation Of Financial Statements, requires disclosure of the judgements management has made in the 
process of applying the accounting policies that have the most impact on the amounts recognised in the financial 
statements. It also requires disclosure about the key assumptions concerning the future, and other key sources 
of  estimation  uncertainty  at  the  end  of  the  reporting  period,  that  have  a  significant  risk  of  causing  a  material 
adjustment  to  the  carrying  amounts  of  assets  and  liabilities  within  the  next  financial  year.  The  estimates  and 
assumptions are based on historical experience and other factors that are considered relevant. Actual results may 
differ from these estimates

The following presents a summary of the critical accounting estimates and judgements –

3.1 

Impairment Reviews

The accounting policies for impairment of non-financial assets are stated in Note 2.16.

During  an  impairment  review,  the  Group  assesses  whether  the  carrying  amount  of  an  asset  or  cash-generating 
unit exceeds its recoverable amount. Recoverable amount is defined as the higher of an asset’s or cash generating 
unit’s  fair  value  less  costs  to  sell  and  its  value-in-use.  In  making  this  judgement,  the  Group  evaluates  the  value-
in-use which is supported by the net present value of future cash flows derived from such assets using cash flow 
projections which have been discounted at an appropriate rate. Forecasts of future cash flows are based on the 
Group’s estimates using historical, sector and industry trends, general market and economic conditions, changes in 
technology and other available information.

Goodwill recorded by associates and joint ventures is required to be tested for impairment at least annually. The 
impairment assessment requires the exercise of significant judgement about future market conditions, including 
growth rates and discount rates applicable in a number of markets where the associates and joint ventures operate.

The  assumptions  used  by  management  to  determine  the  value-in-use  calculations  of  goodwill  on  acquisition 
of  subsidiaries  are  disclosed  in  Note 23.  The  carrying  values  of  associates  and  joint  ventures  including  goodwill 
capitalised are stated in Note 21 and Note 22 respectively. 

3.2 

Impairment of Trade Receivables

The Group assesses at the end of each reporting period whether there is objective evidence that trade receivables 
have been impaired. Impairment loss is calculated based on a review of the current status of existing receivables 
and historical collections experience. Such provisions are adjusted periodically to reflect the actual and anticipated 
experience.

3.3 

Estimated Useful Lives of Property, Plant and Equipment

The Group reviews annually the estimated useful lives of property, plant and equipment based on factors such as 
business plans and strategies, expected level of usage and future technological developments. It is possible that 
future results of operations could be materially affected by changes in these estimates brought about by changes 
in the factors mentioned above. A reduction in the estimated useful lives of property, plant and equipment would 
increase the recorded depreciation and decrease the carrying value of property, plant and equipment.

3.4 

Investment in NetLink Trust

Based on facts and circumstances as disclosed in Note 26, although the Company holds 100% of the units in NetLink 
Trust, the Company does not control but has significant influence in the trust in accordance with FRS 28, Investments 
in Associates and Joint Ventures. Therefore, NetLink Trust has been accounted for as an associate of the Group.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

152

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

3.5 

Taxation

3.5.1  Deferred tax asset

The Group reviews the carrying amount of deferred tax asset at the end of each reporting period. Deferred tax asset 
is recognised to the extent that it is probable that future taxable profit will be available against which the temporary 
differences  can  be  utilised.  This  involves  judgement  regarding  the  future  financial  performance  of  the  particular 
legal entity or tax group in which the deferred tax asset has been recognised. 

3.5.2  Income taxes

The Group is subject to income taxes in numerous jurisdictions. Judgement is involved in determining the group-
wide  provision  for  income  taxes.  There  are  certain  transactions  and  computations  for  which  the  ultimate  tax 
determination  is  uncertain  during  the  ordinary  course  of  business.  The  Group  recognises  liabilities  for  expected 
tax issues based on estimates of whether additional taxes will be due. Where the final outcome of these matters is 
different from the amounts that were initially recognised, such differences will impact the income tax and deferred 
tax provisions in the period in which such determination is made.  

3.6 

Fair values of derivative financial instruments

The Group uses valuation techniques to determine the fair values of financial instruments. The valuation techniques 
used  for  different  financial  instruments  are  selected  to  reflect  how  the  market  would  be  expected  to  price  the 
instruments, using inputs that reasonably reflect the risk-return factors inherent in the instruments. Depending upon 
the characteristics of the financial instruments, observable market factors are available for use in most valuations, 
while others involve a greater degree of judgment and estimation.

3.7 

Share-based Payments

Equity-settled share-based payments are measured at fair value at the date of grant, whereas cash-settled share-
based payments are measured at current fair value at the end of each reporting period. In addition, the Group revises 
the estimated number of equity instruments that participants are expected to receive based on non-market vesting 
conditions at the end of each reporting period.

The assumptions of the valuation model used to determine fair values are set out in Note 5.3.

3.8 

Contingent Liabilities

The Group consults with its legal counsel on matters related to litigation, and other experts both within and outside 
the Group with respect to matters in the ordinary course of business. As at 31 March 2016, the Group was involved 
in various legal proceedings where it has been vigorously defending its claims as disclosed in Note 40.

The Group also reported contingent liabilities of its joint ventures. Assessment on whether the risk of loss is remote, 
possible  or  probable  requires  significant  judgement  given  the  complexities  involved.  The  Group’s  share  of  joint 
ventures’ contingent liabilities have been disclosed in Note 41. 

3.9 

Purchase Price Allocation

The Group completed the acquisition of Trustwave in September 2015. Purchase price allocation exercise requires 
a  significant  amount  of  management  estimation,  particularly  in  relation  to  the  identification  and  valuation  of 
intangible assets and assignment of their useful lives. The Group’s disclosure on the above is set out in Note 1(a) to 
the Consolidated Statement of Cash Flows. 

 
 
 
 
 
 
 
 
 
 
 
 
153

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

4. 

OPERATING REVENUE

Mobile communications
Data and Internet (1)
  Managed services
  Business solutions
Infocomm Technology
Sale of equipment
National telephone (1)
International telephone
Digital businesses
Pay television
Others

Operating revenue

Operating revenue
Other income (see Note 6)
Interest and investment income (see Note 10)

Total revenue

Note:
(1)  Comparatives have been reclassified to be consistent with the current year.

5. 

OPERATING EXPENSES

Selling and administrative costs (1) (2)
Staff costs (2)
Cost of equipment sold 
Traffic expenses
Other cost of sales (2)
Repairs and maintenance

2016
S$ Mil

 6,713.5 
 3,138.1 
 2,013.6 
 636.9 
 2,650.5 
 1,801.9 
 1,128.1 
 541.9 
 476.2 
 284.9 
 226.1 

Group

2015
S$ Mil

 7,242.3 
 3,176.9 
 1,801.0 
 603.4 
 2,404.4 
 1,554.6 
 1,279.5 
 627.6 
 333.2 
 301.8 
 302.6 

 16,961.2 

 17,222.9 

 16,961.2 
 148.3 
 95.7 

 17,222.9 
 151.4 
 92.4 

 17,205.2 

 17,466.7 

2016
S$ Mil

 3,388.2 
 2,457.4 
 2,224.5 
 2,211.8 
 1,456.1 
 358.8 

Group

2015
S$ Mil

 3,759.0 
 2,467.3 
 2,147.3 
 2,548.5 
 1,022.2 
 339.3 

 12,096.8 

 12,283.6 

Notes:
(1) 

Includes mobile and broadband subscriber acquisition and retention costs, supplies and services, as well as rentals of properties and mobile  
base stations.

(2)  Comparatives have been reclassified to be consistent with the current year. 

ANNUAL REPORT 2016

154

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

5.1 

Staff Costs

Staff costs included the following -

  Contributions to defined contribution plans
  Performance share and share option expenses (net)

-  equity-settled arrangements
-  cash-settled arrangements

5.2 

Key Management Personnel Compensation

Key management personnel compensation (1)
Executive director (2)
Other key management personnel (3) 

Directors’ remuneration (4)

Group

2016
S$ Mil

2015
S$ Mil

 240.9 

 223.6 

 33.2 
(5.1)

 24.4 
 28.3 

Group

2016
S$ Mil

2015
S$ Mil

6.4
11.3

17.7
 2.6 

20.3

5.6
10.4

16.0
 2.5 

18.5

Notes:
(1)  Comprise base salary, annual wage supplement, bonus, contributions to defined contribution plans and other benefits, but exclude performance 

share and share option expenses disclosed below. 

(2)  The Group Chief Executive Officer, an executive director of Singtel, was awarded up to 1,743,040 (2015: 1,524,760) ordinary shares of Singtel 
pursuant to Singtel performance share plans during the year, subject to certain performance criteria including other terms and conditions being 
met. The performance share expense computed in accordance with FRS 102, Share-based Payment, was S$1.7 million (2015: S$6.0 million).
(3)  The  other  key  management  personnel  of  the  Group  comprise  the  Group  Chief  Corporate  Officer,  the  Chief  Executive  Officer  of  Consumer 

Australia and the Chief Executive Officer of Group Enterprise. 
The other key management personnel were awarded up to 2,216,951 (2015: 1,939,323) ordinary shares of Singtel pursuant to Singtel performance 
share plans during the year, subject to certain performance criteria including other terms and conditions being met. The performance share 
expense computed in accordance with FRS 102, Share-based Payment, was S$2.1 million (2015: S$7.5 million). 

(4)  Directors’ remuneration comprised the following:

(i)  Directors’ fees of S$2.6 million (2015: S$2.5 million), including fees paid to certain directors in their capacities as members of Optus Advisory 

Committee and Technology Advisory Panel, and director of Singtel Innov8 Pte. Ltd.

(ii)  Car-related benefits of Chairman of S$21,879 (2015: S$18,089). 
In addition to the directors’ remuneration, Venkataraman Vishnampet Ganesan, a non-executive director of Singtel, was awarded 750,718 (2015: 
Nil) of share options pursuant to the Amobee LTI Plan during the year, subject to certain terms and conditions being met. The share option 
expense computed in accordance with FRS 102, Share-based Payment, was S$0.1 million (2015: Nil).

 
 
 
 
 
 
155

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

5.3 

Share-based Payments

5.3.1  Performance share plans

With  effect  from  1  April  2012,  Restricted  Share  Awards  and  Performance  Share  Awards  are  given  to  selected 
employees  of  Singtel  and  its  subsidiaries.  The  awards  are  conditional  upon  the  achievement  of  predetermined 
performance targets over the performance period, which is two years for the Restricted Share Awards and three 
years for the Performance Share Awards. Both awards are generally settled by delivery of Singtel shares, with the 
awards for certain senior employees to be settled by Singtel shares or cash, at the option of the recipient. 

Additionally,  early  vesting  of  the  performance  shares  can  also  occur  under  special  circumstances  approved  by 
the Executive Resource and Compensation Committee such as retirement, redundancy, illness and death while in 
employment.

Though the performance shares are awarded by Singtel, the respective subsidiaries bear all costs and expenses in 
any way arising out of, or connected with, the grant and vesting of the awards to their employees.

The  fair  values  of  the  performance  shares  are  estimated  using  a  Monte-Carlo  simulation  methodology  at  the 
measurement  dates,  which  are  the  grant  value  dates  for  equity-settled  awards,  and  at  the  end  of  the  reporting 
period for cash-settled awards.

Restricted Share Awards 
The movements of the number of performance shares for the Restricted Share Awards during the financial year were  
as follows –

Group and Company 
2016

Date of grant 

FY 2013 (1)
  26 June 2012 
  October 2012 to March 2013 

FY 2014
  21 June 2013
  September 2013 to March 2014

FY 2015
  23 June 2014
  September 2014 to March 2015

FY 2016

17 June 2015

  September 2015 to March 2016

Outstanding 
as at 
1 April 2015 
‘000

Awarded 
from targets 
exceeded 
‘000

 Granted 
‘000

Vested 
‘000

Cancelled 
‘000

Outstanding 
as at 
31 March 2016 
‘000

 4,164 
 67 

 4,239 
 12 

 5,073 
 45 

 – 
 – 

 – 
 – 

 – 
 – 

 – 
 – 

4,338
30

–
–

 (4,068)
 (67)

 (96)
 – 

 – 
 – 

1,227
4

 (2,707)
 (8)

 (277)
 – 

 2,482 
 8 

 1 
 – 

 – 
 – 

 (72)
 – 

 (488)
 (31)

 4,514 
 14 

 (7)
 – 

 (338)
 – 

 3,993 
 30 

13,600

4,368

1,232

(6,929)

(1,230)

11,041

Note: 
(1)  “FY2013” denotes financial year ended 31 March 2013.

 
 
 
 
 
 
 
ANNUAL REPORT 2016

156

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

5.3.1  Performance share plans (Cont’d)

Group and Company 
2015

Date of grant 

FY 2013
  26 June 2012 
  October 2012 to March 2013 

FY 2014
  21 June 2013
  September 2013 to March 2014

FY 2015
  23 June 2014
  September 2014 to March 2015

Outstanding 
as at 
1 April 2014 
‘000

Awarded 
from targets 
exceeded 
‘000

 Granted 
‘000

Vested 
‘000

Cancelled 
‘000

Outstanding 
as at 
31 March 2015 
‘000

 4,660 
 69 

 4,721 
 12 

 – 
 – 

 – 
 – 

 – 
 – 

 5,238 
 45 

1,309
21

 (1,599)
 (23)

 (206)
 – 

 4,164 
 67 

 – 
 – 

 – 
 – 

 (89)
 – 

 (393)
 – 

 4,239 
 12 

 (6)
 – 

 (159)
 – 

 5,073 
 45 

9,462

 5,283 

 1,330 

 (1,717)

 (758)

13,600

The  fair  values  of  the  Restricted  Share  Awards  and  the  assumptions  of  the  fair  value  model  for  the  grants  were  
as follows –

Equity-settled

Fair value at grant date

Assumptions under Monte-Carlo Model
  Expected volatility

  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

21 June 2013

23 June 2014

17 June 2015

Date of grant

S$3.28

S$3.48

S$3.79

13.4%
8.2%
36 months 
historical 
volatility 
preceding 
May 2013

15.2%
9.5%
36 months 
historical 
volatility 
preceding 
May 2014

14.8%
10.2%
36 months 
historical 
volatility 
preceding 
May 2015

  Risk free interest rates

  Yield of Singapore Government Securities on 

5 June 2013

4 June 2014

4 June 2015

 
 
 
 
 
 
 
157

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

5.3.1  Performance share plans (Cont’d)

Cash-settled 
2016

21 June 2013

23 June 2014

17 June 2015

Date of grant

Fair value at 31 March 2016

S$3.82

S$3.73

S$3.55

Assumptions under Monte-Carlo Model  
  Expected volatility

  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

16.0%
11.4%

16.0%
11.4%
36 months historical volatility  
preceding March 2016

16.0%
11.4%

  Risk free interest rates

  Yield of Singapore Government Securities on 

31 March 2016

31 March 2016

31 March 2016

Cash-settled 
2015

26 June 2012

21 June 2013

23 June 2014

Date of grant

Fair value at 31 March 2015

S$4.38

S$4.29

S$4.11

Assumptions under Monte-Carlo Model  
  Expected volatility

  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

15.2%
10.6%

15.2%
10.6%
36 months historical volatility  
preceding March 2015

15.2%
10.6%

  Risk free interest rates

  Yield of Singapore Government Securities on 

31 March 2015

31 March 2015

31 March 2015

 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

158

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

5.3.1  Performance share plans (Cont’d)

Performance Share Awards 
The movements of the number of performance shares for the Performance Share Awards during the financial year 
were as follows –

Group and Company 
2016

Date of grant 

FY 2013
  26 June 2012 
  October 2012 to March 2013 

FY 2014
  21 June 2013
  September 2013 to March 2014

FY 2015
  23 June 2014
  September 2014 to March 2015

FY 2016

17 June 2015

  September 2015 to March 2016

Group and Company 
2015

Date of grant 

FY 2013
  26 June 2012 
  October 2012 to March 2013 

FY 2014
  21 June 2013
  September 2013 to March 2014

FY 2015
  23 June 2014
  September 2014 to March 2015

Outstanding 
as at 
1 April 2015 
‘000

 Granted 
‘000

Vested 
‘000

Cancelled 
‘000

Outstanding 
as at 
31 March 2016 
‘000

 6,814 
 157 

 8,410 
 15 

 8,314 
 235 

 – 
 – 

 – 
 – 

 – 
 – 

 – 
 – 

9,311
157

 (6,795)
 (157)

 – 
 – 

 – 
 – 

 – 
 – 

 (19)
 – 

 (97)
 – 

 – 
 – 

 8,313 
 15 

 (145)
 (214)

 8,169 
 21 

 (90)
 – 

 9,221 
 157 

23,945

9,468

(6,952)

(565)

25,896

Outstanding 
as at 
1 April 2014 
‘000

 Granted 
‘000

Vested 
‘000

Cancelled 
‘000

Outstanding 
as at 
31 March 2015 
‘000

 7,058 
 157 

 9,186 
 15 

 – 
 – 

 – 
 – 

 (40)
  – 

 (204)
 – 

 6,814 
 157 

 (8) 
 – 

 (768)
 – 

 8,410 
 15 

 – 
 – 

 8,528 
 235 

 – 
 – 

 (214)
 – 

 8,314 
 235 

16,416

 8,763 

(48)

 (1,186)

23,945

 
 
 
 
159

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

5.3.1  Performance share plans (Cont’d) 

The fair values of the Performance Share Awards and the assumptions of the fair value model for the grants were  
as follows –

Equity-settled

Fair value at grant date

Assumptions under Monte-Carlo Model
  Expected volatility

  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

21 June 2013

23 June 2014

17 June 2015

Date of grant

S$2.16

S$2.36

S$1.17

13.4%
8.2%
36 months 
historical 
volatility 
preceding 
May 2013

15.2%
9.5%
36 months 
historical 
volatility 
preceding 
May 2014

14.8%
10.2%
36 months 
historical 
volatility 
preceding 
May 2015

  Risk free interest rates

  Yield of Singapore Government Securities on 

5 June 2013

4 June 2014

4 June 2015

Cash-settled 
2016

21 June 2013

23 June 2014

17 June 2015

Date of grant

Fair value at 31 March 2016

–

S$1.70

S$0.76

Assumptions under Monte-Carlo Model  
  Expected volatility

  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

16.0%
11.4%

16.0%
11.4%
36 months historical volatility  
preceding March 2016

16.0%
11.4%

  Risk free interest rates

  Yield of Singapore Government Securities on 

31 March 2016

31 March 2016

31 March 2016

Cash-settled 
2015

26 June 2012

21 June 2013

23 June 2014

Date of grant

Fair value at 31 March 2015

S$4.36

S$3.66

S$3.72

Assumptions under Monte-Carlo Model  
  Expected volatility

  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

15.2%
10.6%

15.2%
10.6%
36 months historical volatility  
preceding March 2015

15.2%
10.6%

  Risk free interest rates

  Yield of Singapore Government Securities on 

31 March 2015

31 March 2015

31 March 2015

 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

160

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

5.3.2  Amobee’s share options – equity-settled arrangement 

In April 2015, Amobee Group Pte. Ltd. (“Amobee”), a wholly-owned subsidiary of the Company, implemented the 
2015 Long-Term Incentive Plan (“Amobee LTI Plan”). Selected employees (including executive directors) and non-
executive directors of Amobee group are granted options to purchase ordinary shares of Amobee. 

Options are exercisable at a price no less than 100% of the fair value of the ordinary shares of Amobee on the date of 
grant. Options for employees are scheduled to be fully vested 3.5 years from the earlier of grant date or the vesting 
commencement date. 

Options have been granted on 10 April 2015 with an exercise price of US$0.79 per share and on 14 October 2015 
with an exercise price of US$0.79 per share or US$0.54 per share. The fair values of the options granted on those 
dates were US$0.224 and US$0.217/ US$0.203 respectively. The terms of the options granted to employees and 
non-executive directors are 10 years and 5 years from the date of grant respectively.  

The fair values for the share options granted were estimated using the Black-Scholes pricing model.

From April 2015 to 31 March 2016, options in respect of an aggregate of 55.0 million of ordinary shares in Amobee 
have been granted to the employees and non-executive directors of Amobee group. As at 31 March 2016, options in 
respect of an aggregate of 43.3 million ordinary shares in Amobee are outstanding.

5.3.3  Trustwave’s share options – equity-settled arrangement 

In December 2015, Trustwave Holdings, Inc. (“Trustwave”), a 98%-owned subsidiary of the Company, implemented 
the Stock Option Incentive Plan (“Trustwave ESOP’’). Selected employees (including executive directors) and non-
executive directors of Trustwave group are granted options to purchase common stock of Trustwave. 

Options are exercisable at a price no less than 100% of the fair value of the common stock of Trustwave on the date 
of grant, and are scheduled to be fully vested 4 years from the grant date. 

Options have been granted on 1 December 2015 and 22 January 2016 with an exercise price of US$16.79 per share. 
The fair value of the options granted on those dates was US$6.56. The term of each option granted is 10 years from 
the date of grant. 

The fair value for the share options granted was estimated using the Black-Scholes pricing model. 

From  December  2015  to  31  March  2016,  options  in  respect  of  an  aggregate  of  1.5  million  of  common  stock  in 
Trustwave have been granted. As at 31 March 2016, options in respect of an aggregate of 1.4 million of common 
stock in Trustwave are outstanding. 

 
 
 
 
 
 
 
 
 
 
161

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

5.4 

Structured Entity

The Trust’s purpose is to purchase the Company’s shares from the open market for delivery to the recipients upon 
vesting of the share-based payments awards. 

As at the end of the reporting period, the Trust held the following assets –

Cost of Singtel shares, net of vesting
Cash at bank

Group

Company

2016
S$ Mil

 26.8 
 0.4 

2015
S$ Mil

 32.7 
 0.4 

2016
S$ Mil

 24.8 
 0.4 

2015
S$ Mil

 29.7 
 0.4 

 27.2 

 33.1 

 25.2 

 30.1

The details of Singtel shares held by the Trust were as follows –

Group

Balance as at 1 April
Purchase of Singtel shares
Vesting of shares

Number of shares

       Amount

2016
‘000

 8,629 
 5,762 
 (7,467)

2015
‘000

 10,127 
 8,561 
 (10,059)

2016
S$ Mil

 32.7 
 23.5 
 (29.4)

2015
S$ Mil

 34.6 
 32.8 
 (34.7)

Balance as at 31 March

 6,924 

 8,629 

 26.8 

 32.7 

Upon consolidation of the Trust in the consolidated financial statements, the weighted average cost of vested Singtel 
shares  is  taken  to  ‘Capital  Reserve’  whereas  the  weighted  average  cost  of  unvested  shares  is  taken  to  ‘Treasury 
Shares’ within equity. See Note 2.3. 

 
 
 
 
 
 
ANNUAL REPORT 2016

162

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

5.5  Other Operating Expense Items

Operating expenses included the following -
  Auditors’ remuneration

-  Deloitte & Touche LLP, Singapore 
-  Deloitte Touche Tohmatsu, Australia
-  Other Deloitte & Touche offices

  Non-audit fees paid to 

-  Deloitte & Touche LLP, Singapore (1)
-  Deloitte Touche Tohmatsu, Australia (1)
-  Other Deloitte & Touche offices

Impairment of trade receivables

  Allowance for inventory obsolescence 
  Provision for liquidated damages and warranties
  Operating lease payments for properties and mobile base stations

”*” denotes amount of less than S$50,000.

     Group

2016
S$ Mil

2015
S$ Mil

 1.4 
 1.1 
 2.0 

 0.3 
 0.4 
 * 

 1.4 
 1.1 
 1.1 

 0.2 
 0.5 
 0.1 

 122.6 
 17.6 
 0.8 
 412.1 

 97.3 
 2.7 
 4.3 
 398.9

Note:
(1)  The non-audit fees for the current financial year ended 31 March 2016 included S$0.1 million (2015: S$0.1 million) and S$0.4 million (2015: S$0.4 
million) paid to Deloitte & Touche LLP, Singapore, and Deloitte Touche Tohmatsu, Australia, respectively in respect of tax service, certification 
and review for regulatory purposes. 

The Audit Committee had undertaken a review of the non-audit services provided by the auditors, Deloitte & Touche 
LLP, and in the opinion of the Audit Committee, these services did not affect the independence of the auditors.

6. 

OTHER INCOME

Access fees from network facilities 
Rental income
Bad trade receivables recovered
Net foreign exchange gains/ (losses) - trade related
Net (losses)/ gains on disposal of property, plant and equipment
Others

Group

2016
S$ Mil

 70.9 
 3.8 
 3.2 
 6.0
 (6.3) 
 70.7 

2015
S$ Mil

 64.8 
 3.8 
 3.1 
 (0.6)
 2.7 
 77.6 

 148.3 

 151.4

 
 
 
 
 
 
 
 
 
163

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

7. 

DEPRECIATION AND AMORTISATION

Depreciation of property, plant and equipment
Amortisation of intangible assets
Amortisation of deferred gain on sale of a joint venture

8. 

EXCEPTIONAL ITEMS

Exceptional gains
  Gain on sale of AFS investments
  Gain on dilution of interest in associates and joint ventures
  Gain on disposal of a joint venture 

Exceptional losses

Reclassification of translation loss of a joint venture from equity
Net expense from legal disputes
Impairment of carrying value of a subsidiary
Impairment of AFS investments
Ex-gratia costs on staff restructuring 
Impairment of other non-current assets
Loss on sale of AFS investments
Write-off of other non-current assets

Group

2016
S$ Mil

 1,892.1 
 259.8 
 (3.1)

2015
S$ Mil

 1,964.8 
 199.7 
 (3.1)

 2,148.8 

 2,161.4 

Group

2016
S$ Mil

 95.9 
 2.2 
 1.7 
 99.8 

 (55.9)
 (37.0)
 (29.9)
 (11.6)
 (10.2)
 –  
 –  
 –  
 (144.6)

2015
S$ Mil

 37.9 
 68.9 
 –  
 106.8 

–
 –  
 –  
 (25.3)
 (42.9)
 (12.9)
 (8.7)
 (2.2)
 (92.0)

 (44.8)

 14.8 

ANNUAL REPORT 2016

164

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

9. 

SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES

Share of ordinary results

–  joint ventures
–  associates

Share of net exceptional gains/ (losses) of associates and joint ventures (post-tax) (1)

Write-back of impairment provision on an associate

Share of tax of ordinary results

–  joint ventures
–  associates

Note:
(1)  Share of net exceptional gains/ (losses) comprised –

Divestment gains on investments
Handset subsidy costs
Accelerated depreciation
Divestment gains on telecom tower assets and other items

10. 

INTEREST AND INVESTMENT INCOME (NET)

Interest income from
–  bank deposits 
–  others

Dividends from joint venture 
Gross dividends from AFS investments

Net foreign exchange gains – non-trade related
Other fair value (losses)/ gains 
Fair value gains/ (losses) on fair value hedges 

–  hedged items 
–  hedging instruments

Fair value gains/ (losses) on cash flow hedges 

–  hedged items 
–  hedging instruments

“*” denotes loss of less than S$50,000.

Group

2016
S$ Mil

2015
S$ Mil

 2,616.7 
 171.3 
 2,788.0 

 70.0 

 31.7 

 2,504.4 
 111.8 
 2,616.2 

 (69.1)

–

 (834.7)
 (28.4)
 (863.1)

 (790.1)
 (21.7)
 (811.8)

 2,026.6 

 1,735.3 

 25.3
 (24.9)  

 – 
69.6

 –  
 –  
 (10.5)
 (58.6)

 70.0 

 (69.1)

Group

2016
S$ Mil

 6.3 
 44.3 
 50.6 

 42.9 
 2.2 

 95.7 

 2.1 
 (1.8)  

 177.7 
 (179.0)  
 (1.3)  

 21.1 
 (21.1)  
 –  

2015
S$ Mil

 8.8 
 37.4 
 46.2 

 41.5 
 4.7 

 92.4 

 8.2 
 3.5 

 (132.9)
 121.6 
 (11.3)

 (363.8)
 363.8 
 * 

 94.7 

 92.8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
165

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

11. 

FINANCE COSTS

Interest expense on

–  bonds
–  bank loans
–  others

Less: Amounts capitalised 

Effects of hedging using interest rate swaps
Unwinding of discounts (including adjustments)

Group

2016
S$ Mil

2015
S$ Mil

 283.3 
 45.4 
 31.7 
 360.4 

 (0.8)  

 359.6 

 (4.2)  
 4.2 

 255.1 
 28.8 
 27.3 
 311.2 

 (6.7)
 304.5 

 0.5 
 4.2 

 359.6 

 309.2 

The interest rate applicable to the capitalised borrowings was 5.4 per cent as at 31 March 2016 (31 March 2015:  
6.1 per cent).

12. 

TAXATION

12.1  Tax Expense

Current income tax
–  Singapore
–  Overseas

Deferred tax (credit)/ expense 

Tax expense attributable to current year’s profit

Recognition of deferred tax credit (1)

Adjustments in respect of prior year (2) –
  Current income tax 
–  over provision 

  Deferred income tax 
–  under provision 

Withholding and dividend distribution taxes on dividend  

income from joint ventures

2016
S$ Mil

 239.6 
 356.8 
 596.4 

Group

2015
S$ Mil

 237.7 
 354.1 
 591.8 

 (5.7)  

 3.4 

 590.7 

 595.2 

 –  

 (47.6)

 (18.7)  

 (13.6)

 6.0 

 11.3 

 144.5 

133.2

 722.5 

678.5 

Notes:
(1)  This related to deferred tax credit recognised on certain property, plant and equipment transferred to an associate. 
(2)  This included certain tax credits upon finalisation of earlier years’ tax assessments.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

166

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

12.1  Tax Expense (Cont’d)

The tax expense on profits was different from the amount that would arise using the Singapore standard rate of 
income tax due to the following –

Profit before tax
Less: Share of results of associates and joint ventures

Tax calculated at tax rate of 17 per cent (2015: 17 per cent)
Effects of –
Different tax rates of other countries
Income not subject to tax
Expenses not deductible for tax purposes
Deferred tax asset not recognised
Deferred tax asset previously not recognised now recognised
Others

Group

2016
S$ Mil

2015
S$ Mil

 4,580.8 
 (2,026.6)
 2,554.2 

 4,463.0 
 (1,735.3)
 2,727.7 

 434.2 

 463.7 

 92.0 
 (28.6)
 39.4 
 42.5 
 –  
 11.2 

 90.9 
 (21.3)
 40.9 
 24.7 
 (0.2)
 (3.5)

Tax expense attributable to current year’s profit

 590.7 

 595.2 

 
 
 
 
167

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

12.2  Deferred Taxes

The  movements  of  the  deferred  tax  assets  and  liabilities  (prior  to  offsetting  of  balances  within  the  same  tax 
jurisdiction) during the financial year were as follows –

Group – 2016
Deferred tax assets

Balance as at 1 April 2015
Acquisition of a subsidiary
Charged to income statement 
Credited to other 

comprehensive income 
Transfer to retained earnings
Transfer from current tax
Translation differences

TWDV (1) in
excess of NBV (2)  
of depreciable
assets
S$ Mil

Tax losses
and unutilised
capital
allowances
S$ Mil

 Provisions
S$ Mil 

 48.3 
 –  
 (0.7)

 – 
 –
0.2
 (0.8) 

 231.3 
 –  
 (6.3)

 –  
 (97.4)
 –  
 (2.7)

 22.0 
 –  
 –  

 –  
 –  
 –  
 1.4 

Others
S$ Mil 

 513.5 
 6.1 
 (9.2)

 1.1 
 –  
 0.5 
 (4.9)

 Total
S$ Mil 

 815.1 
 6.1 
 (16.2)

 1.1 
 (97.4)
 0.7 
 (7.0)

Balance as at 31 March 2016

47.0

 124.9 

 23.4 

 507.1 

 702.4 

Group – 2016
Deferred tax liabilities

Balance as at 1 April 2015
Acquisition of a subsidiary
(Charged)/ Credited to income statement 
Transfer from current tax 
Translation differences 

Accelerated
tax
depreciation
S$ Mil 

 (416.8)
 –  
 (19.3)
 (9.2)
 0.6 

Offshore
interest and
dividend
not
remitted
S$ Mil 

 (5.3)
 – 
 – 
 – 
 – 

Others
S$ Mil 

 (110.9)
 (68.1)
 23.2 
 –  
 10.4 

Total
S$ Mil 

 (533.0)
 (68.1)
 3.9 
 (9.2)
 11.0 

Balance as at 31 March 2016

 (444.7)

 (5.3)

 (145.4)

 (595.4)

 
ANNUAL REPORT 2016

168

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

12.2  Deferred Taxes (Cont’d)

Group – 2015
Deferred tax assets

Balance as at 1 April 2014
(Charged)/ Credited to 
income statement 

Charged to other 

comprehensive income 
Transfer from/ (to) current tax
Translation differences

TWDV (1) in
excess of NBV (2)  
of depreciable
assets
S$ Mil

Tax losses
and unutilised
capital
allowances
S$ Mil

 Provisions
S$ Mil 

 61.6 

 280.6 

 20.2 

 (7.5)

 –  
 3.4 
 (9.2)

 (22.6)

 –  
 –  
 (26.7)

 –  

 –  
 –  
 1.8 

Others
S$ Mil 

 470.6 

 Total
S$ Mil 

 833.0 

 65.9 

 35.8 

 (1.1)
 (0.5)
 (21.4)

 (1.1)
 2.9 
 (55.5)

Balance as at 31 March 2015

 48.3 

 231.3 

 22.0 

 513.5 

 815.1 

Group – 2015
Deferred tax liabilities

Balance as at 1 April 2014
Acquisition of subsidiaries
(Charged)/ Credited to income statement 
Transfer from current tax 
Translation differences 

Accelerated
tax
depreciation
S$ Mil 

Offshore
interest and
dividend not
remitted
S$ Mil 

 (401.3)
 –  
 (15.3)
 (0.1)
 (0.1)

 (5.3)
 – 
 – 
 – 
 – 

Others
S$ Mil 

 (42.8)
 (62.3)
 1.5 
 –  
 (7.3)

Total
S$ Mil 

 (449.4)
 (62.3)
 (13.8)
 (0.1)
 (7.4)

Balance as at 31 March 2015

 (416.8)

 (5.3)

 (110.9)

 (533.0)

169

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

12.2  Deferred Taxes (Cont’d)

Company – 2016
Deferred tax assets

Balance as at 1 April 2015
Charged to income statement 

Provisions
S$ Mil

 0.5 
 (0.1) 

Others
S$ Mil

 6.8 
 (3.5) 

Total
S$ Mil

 7.3 
 (3.6) 

Balance as at 31 March 2016

 0.4 

 3.3 

 3.7 

Company – 2016
Deferred tax liabilities

Balance as at 1 April 2015
Charged to income statement

Balance as at 31 March 2016

Company – 2015
Deferred tax assets

Balance as at 1 April 2014
Credited to income statement 

Balance as at 31 March 2015

Company – 2015
Deferred tax liabilities

Balance as at 1 April 2014
Charged to income statement

Balance as at 31 March 2015

Notes:
(1)  TWDV – Tax written down value
(2)  NBV – Net book value

 Accelerated tax
depreciation
S$ Mil

(256.2)
(18.0)

 Total
S$ Mil

(256.2)
(18.0)

(274.2)

(274.2)

Provisions
S$ Mil

Others
S$ Mil

 0.5 
 – 

 0.5 

 1.4 
 5.4 

6.8

 Accelerated tax
depreciation
S$ Mil

 (244.4)
 (11.8)

Total
S$ Mil

1.9
 5.4 

7.3

 Total
S$ Mil

 (244.4)
 (11.8)

 (256.2)

 (256.2)

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set-off current tax assets 
against current tax liabilities, and when deferred income taxes relate to the same fiscal authority.

 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

170

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

12.2  Deferred Taxes (Cont’d)

The amounts, determined after appropriate offsetting, are shown in the statements of financial position as follows –

Deferred tax assets
Deferred tax liabilities

Group

Company

2016
S$ Mil

 692.3 
 (585.3)

2015
S$ Mil

 803.8 
 (521.7)

2016
S$ Mil

 –  
 (270.5)

2015
S$ Mil

 – 
 (248.9)

 107.0 

 282.1 

 (270.5)

 (248.9)

Deferred tax assets are recognised to the extent that realisation of the related tax benefits through future taxable 
profits is probable.

As  at  31  March  2016,  the  subsidiaries  of  the  Group  had  estimated  unutilised  income  tax  losses  of  approximately 
S$831 million (2015: $426 million), unutilised investment allowances of S$51 million (2015: S$53 million), unutilised 
capital tax losses of S$91 million (2015: S$92 million) and unabsorbed capital allowances of approximately S$6.2 
million (2015: S$5.4 million).  

These  unutilised  income  tax  losses  and  investment  allowances,  and  unabsorbed  capital  allowances  are  available 
for set-off against future taxable profits, subject to the agreement of the relevant tax authorities and compliance 
with certain provisions of the income tax regulations of the respective countries in which the subsidiaries operate. 
The unutilised capital tax losses are available for set-off against future capital gains of a similar nature subject to 
compliance with certain statutory tests in Australia.

As at the end of the reporting period, the potential tax benefits arising from the following items were not recognised 
in the financial statements due to uncertainty on their recoverability –

Unutilised income tax losses and investment allowances,  

and unabsorbed capital allowances

Unutilised capital tax losses

Group 

2016
S$ Mil

2015
S$ Mil

 887.9 

 484.0 

 91.2 

 92.2 

 
 
 
 
 
 
171

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

13. 

EARNINGS PER SHARE

Weighted average number of ordinary shares in issue for  

calculation of basic earnings per share (1)

Group

2016
‘000

2015
‘000

 15,937,017 

 15,936,654 

Adjustment for dilutive effects of performance share plans

15,012

40,354

Weighted average number of ordinary shares for calculation of 

diluted earnings per share

 15,952,029 

 15,977,008 

Note:
(1)  Adjusted to exclude the number of performance shares held by the Trust.

‘Basic earnings per share’ is calculated by dividing the Group’s profit attributable to shareholders of the Company by 
the weighted average number of ordinary shares in issue during the financial year.

For ‘Diluted earnings per share’, the weighted average number of ordinary shares in issue included the number of 
additional shares outstanding if the potential dilutive ordinary shares arising from the performance shares granted 
by the Group were issued. Adjustment is made to earnings for the dilutive effect arising from the associates and joint 
ventures’ dilutive shares.

 
 
 
 
 
ANNUAL REPORT 2016

172

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

14. 

RELATED PARTY TRANSACTIONS

In  addition  to  the  related  party  information  disclosed  elsewhere  in  the  financial  statements,  the  Group  had  the 
following significant transactions and balances with related parties – 

Income
Subsidiaries of ultimate holding company 
  Telecommunications
  Rental and maintenance

Associates and joint ventures
  Telecommunications
Interest on loan 

Expenses
Subsidiaries of ultimate holding company 
  Telecommunications
  Utilities

Associates and joint ventures
  Telecommunications
  Transmission capacity
  Postal
  Rental

Acquisition of shares in a joint venture

Due from subsidiaries of ultimate holding company

Due to subsidiaries of ultimate holding company

Group 

2016
S$ Mil

2015
S$ Mil

 110.2 
 29.5 

 100.7 
 29.5 

 41.8 
 40.5 

 157.3 
 35.3 

 54.1 
 95.2 

 61.4 
 109.4 

 189.0 
 30.8 
 8.3 
 4.3 

 214.2 

 24.3 

 13.3 

 193.4 
 18.7 
 8.7 
 4.0 

 –  

 18.3 

 15.8 

All the above transactions were on normal commercial terms and conditions and market rates.

Please refer to Note 5.2 for information on key management personnel compensation.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
173

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

15. 

CASH AND CASH EQUIVALENTS

Fixed deposits
Cash and bank balances

Group

Company

2016
S$ Mil

 79.2 
 382.6 

2015
S$ Mil

 148.5 
 414.3 

 461.8 

 562.8 

2016
S$ Mil

 18.3 
 65.4 

 83.7 

The carrying amounts of the cash and cash equivalents approximate their fair values.

Cash and cash equivalents denominated in the non-functional currencies of the Group were as follows –

USD
EUR
HKD

The maturities of the fixed deposits were as follows –

Less than three months
Over three months

Group

Company

2015
S$ Mil

 133.0 
 6.6 
 5.6 

2016
S$ Mil

 22.4 
 2.2 
 0.2 

Group

Company

2015
S$ Mil

 131.1 
 17.4 

2016
S$ Mil

 18.3 
 –  

2016
S$ Mil

 74.1 
 8.2 
 6.4 

2016
S$ Mil

 59.2 
 20.0 

 79.2 

 148.5 

 18.3 

2015
S$ Mil

 26.1 
 57.4 

 83.5 

2015
S$ Mil

 29.6 
 1.5 
 0.1 

2015
S$ Mil

 26.1 
 – 

 26.1 

As at 31 March 2016, the weighted average effective interest rate of the fixed deposits of the Group and the Company 
were 1.0 per cent (2015: 0.9 per cent) per annum and 0.5 per cent (2015: 0.3 per cent) per annum respectively.

The exposure of cash and cash equivalents to interest rate risks is disclosed in Note 36.3.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

174

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

16. 

TRADE AND OTHER RECEIVABLES

Trade receivables
Accrued receivables (1)

Less: Allowance for impairment of  
trade receivables

Group

Company

2016
S$ Mil

 2,277.2 
 1,130.8 
 3,408.0 

 (245.9)
 3,162.1 

2015
S$ Mil

 2,299.1 
 673.6 
 2,972.7 

 (236.9)
 2,735.8 

2016
S$ Mil

 504.0 
–
 504.0 

 (84.0)
 420.0 

2015
S$ Mil

 490.2 
 –  
 490.2 

 (79.7)
 410.5 

Other receivables

 471.5 

 458.6 

 13.1 

 14.7 

Loans to subsidiaries
Less:  Allowance for impairment of loans due

Amount due from subsidiaries

–  trade
–  non-trade

Less:  Allowance for impairment of amount due

Amount due from associates and joint ventures

–  trade
–  non-trade

Prepayments
Interest receivable
Others

 – 
 – 
 – 

 – 
 – 
 – 
 – 

 16.3 
 159.0 
 175.3 

 477.2 
 68.8 
 11.5 

 – 
 – 
 – 

 – 
 – 
 – 
 – 

 40.5 
 158.8 
 199.3 

 393.3 
 86.1 
 12.1 

 890.3 
 (12.7)
 877.6 

 126.7 
 (12.7)
 114.0 

 634.6 
 1,058.4 
 (45.4)
 1,647.6 

 567.5 
 1,272.2 
 (45.4)
 1,794.3 

 7.6 
 –  
 7.6 

 37.8 
 25.7 
 –  

 26.9 
 –  
 26.9 

 36.7 
 45.3 
 –  

 4,366.4 

 3,885.2 

 3,029.4 

 2,442.4 

Note:
(1)  This comprises accrued revenue under device repayment plans and other handset repayment plans which are generally on 14-day to 30-day 

terms when billed.

As at 31 March 2016, the effective interest rate of an amount due from a subsidiary of S$865.4 million (2015: S$1,080.5 
million) was 0.01 per cent (2015: 0.01 per cent) per annum. The loans to subsidiaries and amounts due from other 
subsidiaries, associates and joint ventures were unsecured, interest-free and repayable on demand. 

Trade receivables are non-interest bearing and are generally on 14-day to 30-day terms, while balances due from 
carriers are on 60-day terms. 

An amount of S$30.4 million (2015: S$51.6 million) under ‘Other receivables’ and an amount of S$62.3 million (2015: 
S$51.3 million) under ‘Other non-current receivables’ (see Note 27) of the Group are guaranteed by a third party and 
are repayable in several tranches up to financial year ending 31 March 2018. The weighted average effective interest 
rate was 3.5% (2015: 2.0%). 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
175

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

16. 

TRADE AND OTHER RECEIVABLES (Cont’d)

The maximum exposure to credit risk for trade and accrued receivables by customer type was as follows –

Individuals
Corporations and others

Group

Company

2016
S$ Mil

 1,786.3 
 1,375.8 

2015
S$ Mil

 1,011.2 
 1,724.6 

2016
S$ Mil

 139.4 
 280.6 

2015
S$ Mil

 152.9 
 257.6 

 3,162.1 

 2,735.8 

 420.0 

 410.5 

The age analysis of trade receivables before allowance for impairment was as follows –

Not past due or less than 60 days overdue 
Past due 
–  61 to 120 days
–  more than 120 days 

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

 1,802.9 

 1,872.7 

 326.8 

 321.5 

 120.2 
 354.1 

 134.6 
 291.8 

 22.9 
 154.3 

 32.9 
 135.8 

 2,277.2 

 2,299.1 

 504.0 

 490.2 

Based  on  historical  collections  experience,  the  Group  believes  that  no  allowance  for  impairment  is  necessary  in 
respect of certain trade receivables which are not past due as well as certain trade receivables which are past due 
but not impaired.

The movement in the allowance for impairment of trade receivables was as follows – 

Balance as at 1 April 
Acquisition of a subsidiary
Allowance for impairment 
Utilisation of allowance for impairment
Write-back of allowance for impairment
Translation differences

Group

Company

2016
S$ Mil

 236.9 
 7.2 
 128.2 
 (119.9)  
 (5.6)
 (0.9)

2015
S$ Mil

 274.7 
 0.7 
 108.8 
 (115.2)
 (11.5)
 (20.6)

2016
S$ Mil

 79.7 
 –  
 37.1 
 (31.3)  
 (1.5)
 –  

2015
S$ Mil

 82.8 
 –  
 33.8 
 (29.6)
 (7.3)
 –  

Balance as at 31 March

 245.9 

 236.9 

 84.0 

 79.7 

17. 

INVENTORIES 

Equipment held for resale
Maintenance and capital works’ inventories

Group

Company

2016
S$ Mil

 299.8 
 19.9 

2015
S$ Mil

 266.6 
 23.2 

 319.7 

 289.8 

2016
S$ Mil

 2.1 
 19.4 

 21.5 

2015
S$ Mil

 3.1 
 23.7 

 26.8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

176

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

18. 

PROPERTY, PLANT AND EQUIPMENT

Group – 2016

Cost

Freehold
land
S$ Mil

Leasehold
land
S$ Mil

Buildings
S$ Mil

 Transmission
plant and
equipment
S$ Mil

 Switching
equipment
S$ Mil

 Other
plant and
equipment
S$ Mil

 Capital
work-in-
progress
S$ Mil

 Total
S$ Mil

Balance as at 1 April 2015

 22.0 

 266.1 

 774.7 

 18,224.8 

 2,919.8 

 5,889.8 

 1,199.3 

 29,296.5 

Additions (net of rebates)

Disposals/ Write-offs

Acquisition of a subsidiary

Reclassifications/ Adjustments

 –  

 –  

 –  

 –  

Translation differences

 (0.2)

 –  

 –  

 –  

 (0.6)

 (0.3)

 7.7 

 (5.3)

 –  

 119.3 

 50.6 

 171.7 

 2,081.3 

 2,430.6 

 (698.4)

 (248.3)

 (549.4)

 –  (1,501.4)

 –  

 –  

 27.8 

 –  

 2.8 

 1,367.9 

 81.1 

 358.4   (1,818.6)

 27.8 

 (9.0)

 (3.2)

 (146.6)

 (13.5)

 (51.3)

 4.2 

 (210.9)

Balance as at  

31 March 2016

Accumulated depreciation

 21.8 

 265.2 

 776.7 

 18,867.0 

 2,789.7 

 5,847.0 

 1,466.2   30,033.6 

Balance as at 1 April 2015

 –  

 69.9 

 301.4 

 11,779.8 

 2,168.6 

 4,253.6 

 –    18,573.3 

Depreciation charge  

for the year

Disposals/ Write-offs

Reclassifications/ Adjustments

Translation differences

Balance as at  

31 March 2016

Accumulated impairment

Balance as at 1 April 2015

Disposals

Translation differences

Balance as at  

31 March 2016

Net Book Value as at  
31 March 2016

 –  

 –  

 –  

 –  

 4.8 

 18.9 

 1,121.9 

 168.5 

 578.0 

 –  

 (5.3)

 (692.0)

 (244.5)

 (536.5)

 (0.3)

 (0.3)

 –  

 –  

 (0.6)

 (97.9)

 –  

 (8.3)

 (8.7)

 (27.2)

 –  

 1,892.1 

 –  

 (1,478.3)

 –  

 –  

 (9.2)

 (134.1)

 –  

 74.1 

 315.0 

 12,111.2 

 2,083.9 

 4,259.6 

 –    18,843.8 

 –  

 –  

 –  

 –  

 2.0 

 7.3 

 –  

 –  

 –  

 –  

 7.6 

 (0.2)

 –  

 5.2 

 (3.3)

 –  

 17.9 

 (0.4)

 (0.3)

 –  

 –  

 –  

 40.0 

 (3.9)

 (0.3)

 2.0 

 7.3 

 7.4 

 1.9 

 17.2 

 –  

 35.8 

 21.8 

 189.1 

 454.4 

 6,748.4 

 703.9 

 1,570.2 

 1,466.2   11,154.0 

 
 
 
 
 
 
 
 
 
 
177

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

18. 

PROPERTY, PLANT AND EQUIPMENT (Cont’d)

Group – 2015

Cost

Freehold
land
S$ Mil

Leasehold
land
S$ Mil

Buildings
S$ Mil

 Transmission
plant and
equipment
S$ Mil

 Switching
equipment
S$ Mil

 Other
plant and
equipment
S$ Mil

 Capital
work-in-
progress
S$ Mil

 Total
S$ Mil

Balance as at 1 April 2014

 24.5 

 249.2 

 795.2 

 18,381.0 

 3,019.3 

 5,983.4 

 1,081.9   29,534.5 

Additions (net of rebates)

Disposals/ Write-offs

Acquisition of subsidiaries

Reclassifications/ Adjustments

 –  

 –  

 –  

 –  

 –  

 –  

 –  

 1.2 

 (0.1)

 –  

 180.8 

 45.0 

 197.4 

 1,975.2 

 2,399.6 

 (166.9)

 (121.7)

 (110.9)

 –  

 –  

 2.8 

 –  

 –  

 (399.6)

 2.8 

 15.7 

 8.9 

 1,318.0 

 98.1 

 210.3 

 (1,771.6)

 (120.6)

Translation differences

 (2.5)

 1.2 

 (30.5)

 (1,488.1)

 (120.9)

 (393.2)

 (86.2)  (2,120.2)

Balance as at  

31 March 2015

Accumulated depreciation

 22.0 

 266.1 

 774.7 

 18,224.8 

 2,919.8 

 5,889.8 

 1,199.3   29,296.5 

Balance as at 1 April 2014

 –  

 64.4 

 283.1 

 11,726.3 

 2,183.3 

 4,148.9 

 –    18,406.0 

Depreciation charge  

for the year

Disposals/ Write-offs

Reclassifications/ Adjustments

Translation differences

Balance as at  

31 March 2015

Accumulated impairment

Balance as at 1 April 2014

Impairment charge  

for the year 

Disposals

Translation differences

Balance as at  

31 March 2015

Net Book Value as at  
31 March 2015

 –  

 –  

 –  

 –  

 4.5 

 –  

 –  

 18.5 

 (0.1)

 –  

 1,170.5 

 179.5 

 591.8 

 (150.9)

 (120.2)

 (102.7)

 –  

 –  

 (91.5)

 1.0 

 (0.1)

 (966.1)

 (74.0)

 (292.9)

 –  

 1,964.8 

 –  

 –  

 (373.9)

 (91.5)

 –    (1,332.1)

 –  

 69.9 

 301.4 

 11,779.8 

 2,168.6 

 4,253.6 

 –    18,573.3 

 –  

 –  

 –  

 –  

 –  

 2.0 

 7.3 

 7.7 

 5.2 

 10.0 

 –  

 32.2 

 –  

 –  

 –  

 –  

 –  

 –  

 –  

 (0.1)

 –  

 –  

 –  

 –  

 9.7 

 (1.2)

 (0.6)

 –  

 –  

 –  

 9.7 

 (1.3)

 (0.6)

 2.0 

 7.3 

 7.6 

 5.2 

 17.9 

 –  

 40.0 

 22.0 

 194.2 

 466.0 

 6,437.4 

 746.0 

 1,618.3 

 1,199.3   10,683.2 

 
ANNUAL REPORT 2016

178

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

18. 

PROPERTY, PLANT AND EQUIPMENT (Cont’d)

Company – 2016

Cost

Freehold
land
S$ Mil

Leasehold
land
S$ Mil

Buildings
S$ Mil

 Transmission
plant and
equipment
S$ Mil

 Switching
equipment
S$ Mil

 Other
plant and
equipment
S$ Mil

 Capital
work-in-
progress
S$ Mil

 Total
S$ Mil

Balance as at 1 April 2015

 0.4 

 228.2 

 431.5 

 3,143.5 

 998.1 

 1,486.0 

 310.0 

 6,597.7 

Additions (net of rebates)

Disposals/ Write-offs

Reclassifications 

Balance as at  

31 March 2016

Accumulated depreciation

Balance as at 1 April 2015

Depreciation charge  

for the year

Disposals/ Write-offs

Balance as at  

31 March 2016

Accumulated impairment

Balance as at 1 April 2015

Disposals/ Write-offs

Balance as at  

31 March 2016

Net Book Value as at  
31 March 2016

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 –

 1.4 

 47.6 

 12.1 

 55.0 

 361.5 

 476.2 

 (56.9)

 (105.2)

 (47.4)

 –  

 (209.5)

 54.5 

 20.2 

 70.3 

 (146.4)

 –  

 0.4 

 228.2 

 432.9 

 3,188.7 

 925.2 

 1,563.9 

 525.1 

 6,864.4 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 51.1 

 256.8 

 2,277.6 

 895.3 

 1,052.4 

 –  4,533.2 

 2.7 

 – 

 11.4 

 156.9 

 48.7 

 125.9 

 –  

 (51.4)

 (105.2)

 (45.9)

 – 

 – 

 345.6 

 (202.5)

 53.8 

 268.2 

 2,383.1 

 838.8 

 1,132.4 

 – 

 4,676.3 

 2.0  

 –  

 7.2 

 – 

 6.1 

 (0.2)

 1.2 

 – 

 0.8 

 (0.4)

 2.0 

 7.2

5.9

 1.2 

 0.4 

 – 

 – 

 – 

 17.3 

 (0.6)

 16.7 

 0.4 

 172.4 

157.5

 799.7 

 85.2 

 431.1 

 525.1 

 2,171.4 

 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
179

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

18. 

PROPERTY, PLANT AND EQUIPMENT (Cont’d)

Company – 2015

Cost
Balance as at 1 April 2014
Additions (net of rebates)
Disposals/ Write-offs
Reclassifications 
Balance as at  

31 March 2015

Accumulated depreciation
Balance as at 1 April 2014
Depreciation charge  

for the year

Disposals/ Write-offs
Balance as at  

31 March 2015

Accumulated impairment
Balance as at 1 April 2014
Additions 
Disposals/ Write-offs
Balance as at  

31 March 2015

Net Book Value as at  
31 March 2015

Freehold
land
S$ Mil

Leasehold
land
S$ Mil

Buildings
S$ Mil

 Transmission
plant and
equipment
S$ Mil

 Switching
equipment
S$ Mil

 Other
plant and
equipment
S$ Mil

 Capital
work-in-
progress
S$ Mil

 Total
S$ Mil

 0.4 
 – 
 – 
 – 

 212.5 
 –  
 –  
 15.7 

 431.6 
 –  
 (0.1)
 –  

 3,113.3 
 64.1 
 (81.4)
 47.5 

 1,063.2 
 13.1 
 (101.3)
 23.1 

 1,408.8 
 57.6 
 (40.5)
 60.1 

 217.5 
 238.9 
 –  
 (146.4)

 6,447.3 
 373.7 
 (223.3)
 –  

 0.4 

 228.2 

 431.5 

 3,143.5 

 998.1 

 1,486.0 

 310.0 

 6,597.7 

 – 

 – 
 – 

 – 

 – 
 – 
 – 

 – 

 48.5 

 245.6 

 2,185.5 

 943.8 

 968.2 

 – 

 4,391.6 

 2.6 
 –  

 11.3 
 (0.1)

 161.2 
 (69.1)

 52.7 
 (101.2)

 121.2 
 (37.0)

 – 
 – 

 349.0 
 (207.4)

 51.1 

 256.8 

 2,277.6 

 895.3 

 1,052.4 

 – 

 4,533.2 

 2.0 
 –  
 –  

 7.2 
 –  
 –  

 6.2 
 –  
 (0.1)

 1.2 
 –  
 –  

 1.6 
 0.4 
 (1.2)

 2.0 

 7.2 

 6.1 

 1.2 

 0.8 

 – 
 – 
 – 

 – 

 18.2 
 0.4 
 (1.3)

 17.3 

 0.4 

 175.1 

 167.5 

 859.8 

 101.6 

 432.8 

 310.0 

 2,047.2 

Property, plant and equipment included the following –

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

Net book value of property, plant and equipment

Assets acquired under finance leases

 102.0 

 78.5 

 37.7 

  44.2  

Interest charges capitalised during the year

 –  

 4.0 

 –  

 – 

Staff costs capitalised during the year

 236.9 

 215.6 

 33.9 

 21.1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

180

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

19. 

INTANGIBLE ASSETS

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

 11,090.3 
 1,439.8 
 374.1 
 64.2 

 10,123.0 
 1,488.2 
 296.9 
 40.5 

 12,968.4 

 11,948.6 

 – 
 0.3 
 – 
 – 

 0.3 

 – 
 0.7 
 – 
 – 

 0.7 

Goodwill on acquisition of subsidiaries
Telecommunications and spectrum licences
Technology and brand
Customer relationships and others

19.1  Goodwill on Acquisition of Subsidiaries

Balance as at 1 April 
Acquisition of subsidiaries 
Impairment of a subsidiary
Translation differences

Balance as at 31 March

19.2  Telecommunications and Spectrum Licences

Balance as at 1 April 
Additions
Amortisation for the year
Disposals/ Write-offs
Translation differences

2016
S$ Mil

 1,488.2 
 146.6 
 (180.5)
 (0.3)
 (14.2)

Group

2015
S$ Mil

 832.3 
 933.2 
 (148.2)
 (3.1)
 (126.0)

Balance as at 31 March

 1,439.8 

 1,488.2 

Cost
Accumulated amortisation
Accumulated impairment

 2,523.5 
 (1,077.5)
 (6.2)

 2,399.6 
 (905.2)
 (6.2)

Net book value as at 31 March

 1,439.8 

 1,488.2 

2016
S$ Mil

 10,123.0 
 1,069.8 
 (29.2)
 (73.3)

Group

2015
S$ Mil

 9,703.6 
 367.3 
 –  
 52.1 

 11,090.3 

 10,123.0 

Company

2016
S$ Mil

2015
S$ Mil

 0.7 
 –  
 (0.4)
 –  
 –  

 0.3 

 8.4 
 (8.1)
 –  

 0.3 

 1.0 
 –  
 (0.3)
 –  
 –  

 0.7 

 8.4 
 (7.7)
 –  

 0.7 

 
 
 
 
 
181

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

19.3  Technology and Brand

Balance as at 1 April 
Acquisition of subsidiaries
Additions 
Amortisation for the year
Impairment of a subsidiary
Impairment charge for the year 
Translation differences

Balance as at 31 March

Cost
Accumulated amortisation
Accumulated impairment 

Net book value as at 31 March

19.4  Customer Relationships and Others

Balance as at 1 April
Acquisition of subsidiaries 
Additions
Amortisation for the year
Translation differences

Balance as at 31 March

Cost
Accumulated amortisation

Net book value as at 31 March

2016
S$ Mil

 296.9 
 171.0 
 –  
 (73.8)
 (5.0)
 –  
 (15.0)

Group

2015
S$ Mil

 160.4 
 149.1 
 4.9 
 (43.1)
 –  
 (3.2)
 28.8 

 374.1 

 296.9 

 550.6 
 (168.4)
 (8.1)

 394.6 
 (94.5)
 (3.2)

 374.1 

 296.9 

Group

2016
S$ Mil

 40.5 
 15.8  
 14.2 
 (5.5)
 (0.8)

2015
S$ Mil

 43.4 
 8.1 
 1.6 
 (8.4)
 (4.2)

 64.2 

 40.5 

 128.8 
 (64.6)

 100.0 
 (59.5)

 64.2 

 40.5 

 
 
 
 
 
 
ANNUAL REPORT 2016

182

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

20. 

SUBSIDIARIES

Unquoted equity shares, at cost
Shareholders’ advances 
Deemed investment in a subsidiary 

Less: Allowance for impairment losses

Company

2016
S$ Mil

7,742.5 
6,423.3 
32.5 
14,198.3 
(16.0)

2015
S$ Mil

7,109.6 
6,423.3 
32.5 
13,565.4 
(50.4)

14,182.3 

13,515.0 

The advances given to subsidiaries were interest-free except for an amount of S$678.3 million (2015: S$678.3 million) 
where the effective interest rate as at 31 March 2016 was 1.6 per cent (2015: 0.8 per cent) per annum. The advances 
were unsecured with settlement neither planned nor likely to occur in the foreseeable future. 

The deemed investment in a subsidiary, Singtel Group Treasury Pte. Ltd. (“SGT”), arose from financial guarantees 
provided by the Company for loans drawn down by SGT prior to 1 April 2010. 

The significant subsidiaries of the Group are set out in Note 43.1 to Note 43.3.

21. 

ASSOCIATES

Quoted equity shares, at cost
Unquoted equity shares, at cost
Shareholder’s loan (unsecured)

Goodwill on consolidation adjusted against 

shareholders’ equity

Share of post-acquisition reserves (net of dividends, 

and accumulated amortisation of goodwill)

Translation differences

2016
S$ Mil

74.3 
164.4 
1.7 
240.4 

Group

2015
S$ Mil

74.3 
143.2 
1.7 
219.2 

Company

2016
S$ Mil

2015
S$ Mil

            24.7 
          578.8 
                 –  
          603.5 

            24.7 
          578.8 
                 –  
          603.5 

(28.3)

(28.3)

                 –  

                 –  

162.0 
(17.8)
115.9 

130.2 
(14.2)
87.7 

                 –  
                 –  
                 –  

                 –  
                 –  
                 –  

Less: Allowance for impairment losses

–  

(31.7)

                 –  

                 –  

356.3 

275.2 

          603.5 

          603.5 

As at 31 March 2016,

(i) 

(ii) 

The  market  values  of  the  quoted  equity  shares  in  associates  held  by  the  Group  and  the  Company  were  
S$862.4 million (2015: S$1.02 billion) and S$807.7 million (2015: S$968.2 million) respectively.

The Group’s proportionate interest in the capital commitments of the associates was S$154.3 million (2015: 
S$76.8 million).

The Group does not have any individually significant associates. The details of associates are set out in Note 43.4.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
183

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

21. 

ASSOCIATES (Cont’d)

The aggregate summarised financial information of associates were as follows –

Share of profit after tax 
Share of other comprehensive (loss)/ income

Group

2016
S$ Mil

2015
S$ Mil

           112.2 
             (1.8)

             39.1 
               0.4 

Share of total comprehensive income 

           110.4 

             39.5 

22. 

JOINT VENTURES

Quoted equity shares, at cost
Unquoted equity shares, at cost

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

        2,798.4 
        4,393.6 
        7,192.0 

        2,798.4 
        4,179.3 
        6,977.7 

                 –  
             21.2 
             21.2 

                 –  
             22.1 
             22.1 

Goodwill on consolidation adjusted against 

shareholders’ equity

      (1,225.9)

      (1,225.9)

                 –  

                 –  

Share of post-acquisition reserves (net of dividends, 

and accumulated amortisation of goodwill)

Translation differences

        8,431.2 
      (3,637.4)
        3,567.9 

        7,887.4 
      (3,038.2)
        3,623.3 

                 –  
                 –  
                 –  

                 –  
                 –  
                 –  

Less: Allowance for impairment losses

           (30.0)

           (30.0)

                 –  

                 –  

      10,729.9 

      10,571.0 

             21.2 

             22.1 

As at 31 March 2016, 

(i) 

(ii) 

The market value of the quoted equity shares in joint ventures held by the Group was S$19.15 billion (2015:  
S$22.04 billion).

The Group’s proportionate interest in the capital commitments of joint ventures was S$1.53 billion (2015:  
S$3.48 billion).

The details of joint ventures are set out in Note 43.5.

Optus has an interest in an unincorporated joint operation to share certain 3G network sites and radio infrastructure 
across Australia whereby it holds an interest of 50% (2015: 50%) in the assets, with access to the shared network and 
shares 50% (2015: 50%) of the cost of building and operating the network.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

184

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

22. 

JOINT VENTURES (Cont’d)

The  Group’s  property,  plant  and  equipment  included  the  Group’s  interest  in  the  property,  plant  and  equipment 
employed in the unincorporated joint operations of S$811.0 million (2015: S$644.4 million).

The carrying amounts of the Group’s significant joint ventures namely Bharti Airtel Limited (“Airtel”), PT Telekomunikasi 
Selular  (“Telkomsel”),  Globe  Telecom,  Inc.  (“Globe”)  and  Advanced  Info  Service  Public  Company  Limited  (“AIS”), 
were as follows –

Airtel 
Telkomsel 
Globe 
AIS
Other joint ventures 

2016
S$ Mil

5,478.7
3,471.0
1,079.9
605.7
94.6

Group

2015
S$ Mil

5,323.3
3,410.1
1,049.8
686.3
101.5

10,729.9

10,571.0

 
 
185

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

22. 

JOINT VENTURES (Cont’d)

The  summarised  financial  information  of  the  significant  joint  ventures  based  on  their  financial  statements  and  a 
reconciliation with the carrying amounts of the investments in the consolidated financial statements were as follows –

Group – 2016

Statement of comprehensive income 
Revenue 
Depreciation and amortisation 
Interest income
Interest expense 
Income tax expense 

Airtel 
S$ Mil

Telkomsel
S$ Mil

Globe 
S$ Mil

AIS
S$ Mil

   20,460.8 
   (3,697.3)
        677.1 
   (2,136.7)
   (1,259.7)

     8,069.1 
   (1,352.6)
          99.1 
        (90.3)
      (806.4)

     3,704.1 
      (687.3)
          11.2 
      (102.4)
      (212.4)

     6,020.9 
      (758.3)
            7.9 
        (89.2)
      (331.5)

Profit after tax 
Other comprehensive loss

     1,162.8 
      (175.7)

     2,449.6 
               –  

        498.5 
        (11.0)

     1,479.6 
        (20.4)

Total comprehensive income 

        987.1 

     2,449.6 

        487.5 

     1,459.2 

Statement of financial position 
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets 
Less: Non-controlling interests 

     4,651.5 
   41,075.9 
 (11,841.7)
 (19,482.6)
   14,403.1 
   (1,057.1)

     3,823.9 
     5,708.6 
   (2,370.6)
   (1,255.1)
     5,906.8 
               –  

     1,381.8 
     4,353.6 
   (1,976.4)
   (1,975.4)
     1,783.6 
 0.1 

     1,540.1 
     5,864.0 
   (3,102.0)
   (2,876.2)
     1,425.9 
          (4.5)

Net assets attributable to equity holders

   13,346.0 

     5,906.8 

     1,783.7 

     1,421.4 

Proportion of the Group’s ownership 
Group’s share of net assets 
Goodwill capitalised
Other adjustments 

32.9%
     4,390.8 
        805.0 
        282.9 

35.0%
     2,067.4 
     1,403.6 
               –  

47.2%
        841.9 
        386.5 
      (148.5)

23.3%
        331.2 
        276.4 
          (1.9)

Carrying amount of the investment 

     5,478.7 

     3,471.0 

     1,079.9 

        605.7 

Other items
Cash and cash equivalents 
Non-current financial liabilities excluding trade 

        754.2 

     2,442.0 

        302.6 

        609.4 

and other payables and provisions

(18,648.4)

   (1,010.5)

   (1,779.0)

(1,978.6)

Current financial liabilities excluding trade and 

other payables and provisions

(1,699.9)

(66.8)

(281.7)

(163.2)

Group’s share of market value 

   10,244.3 

 NA 

     4,073.9 

     4,827.5 

Dividends received during the year

          28.0 

        721.6 

        156.6 

        346.2 

 
 
 
 
 
 
 
ANNUAL REPORT 2016

186

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

22. 

JOINT VENTURES (Cont’d)

Group – 2015

Airtel 
S$ Mil

Telkomsel
S$ Mil

Globe 
S$ Mil

AIS
S$ Mil

Statement of comprehensive income 
Revenue 
Depreciation and amortisation 
Interest income
Interest expense 
Income tax expense 

Profit after tax 
Other comprehensive (loss)/ income 
Total comprehensive income 

Statement of financial position 
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets 
Less: Non-controlling interests 

   19,397.7 
    (3,272.9)
        523.8 
    (1,552.3)
    (1,136.4)

     1,091.9 
       (837.9)
        254.0 

     5,884.3 
   37,157.4 
  (13,947.7)
  (14,406.3)
   14,687.7 
    (1,066.8)

     7,251.2 
    (1,246.9)
          73.8 
         (66.8)
       (690.6)

     2,115.9 
           (9.4)
     2,106.5 

     2,771.7 
     5,945.8 
    (2,121.3)
       (863.3)
     5,732.9 
               –  

     3,111.4 
       (560.6)
          20.8 
         (78.0)
       (189.1)

        425.6 
           (8.3)
        417.3 

     1,435.1 
     4,080.1 
    (1,803.0)
    (1,989.2)
     1,723.0 
           (0.2)

     6,090.3 
       (799.0)
          15.6 
         (68.6)
       (398.6)

     1,449.3 
            0.1 
     1,449.4 

     2,044.6 
     3,820.4 
    (2,698.0)
    (1,516.8)
     1,650.2 
           (4.8)

Net assets attributable to equity holders

   13,620.9 

     5,732.9 

     1,722.8 

     1,645.4 

Proportion of the Group’s ownership 
Group’s share of net assets 
Goodwill capitalised
Other adjustments 

32.4%
     4,413.2 
        866.7 
          43.4 

35.0%
     2,006.5 
     1,403.6 
               –  

47.2%
        813.2 
        391.0 
       (154.4)

23.3%
        383.7 
        305.0 
           (2.4)

Carrying amount of the investment 

     5,323.3 

     3,410.1 

     1,049.8 

        686.3 

Other items
Cash and cash equivalents 
Non-current financial liabilities excluding trade 

257.6 

1,402.1 

513.3 

        989.5 

and other payables and provisions

(13,490.0)

(542.0)

(1,815.9)

    (1,423.9)

Current financial liabilities excluding trade and 

other payables and provisions

(4,661.1)

       (254.2)

       (172.2)

       (136.1)

Group’s share of market value 

   11,214.8 

 NA 

     3,882.2 

     6,942.4 

Dividends received during the year

          42.5 

        665.7 

        105.6 

        313.7 

“NA” denotes Not Applicable.

 
 
 
 
 
 
 
 
 
 
187

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

22. 

JOINT VENTURES (Cont’d)

The aggregate information of the Group’s investments in joint ventures which are not individually significant were  
as follows –

Share of profit after tax 
Share of other comprehensive (loss)/ income

Share of total comprehensive income 

Aggregate carrying value 

23. 

IMPAIRMENT REVIEWS

Goodwill arising on acquisition of subsidiaries 

Group

2016
S$ Mil

2015
S$ Mil

               8.2 
             (0.4)

             10.1 
               0.1 

               7.8 

             10.2 

94.6

101.5

The carrying values of the Group’s goodwill on acquisition of subsidiaries as at 31 March 2016 were assessed for 
impairment during the financial year.  

Goodwill  is  allocated  for  impairment  testing  purposes  to  the  individual  entity  which  is  also  the  cash  generating  
unit (“CGU”).  

The Group is structured into three business segments, Group Consumer, Group Enterprise and Group Digital Life. 
Based on the relative fair value approach, the goodwill of Optus was fully allocated to Consumer Australia included 
in the Group Consumer segment for the purpose of goodwill impairment test.

Group

2016
S$ Mil

2015
S$ Mil

2016

2015

2016

2015

Terminal  
growth rate (1)

Pre-tax 
discount rate

Carrying value of goodwill in -

- Optus Group 

9,283.0 

9,284.8 

3.0%

3.0%

9.5%

10.4%

- Amobee, Inc. 

703.3 

727.6 

4.0%

4.8%

15.1%

15.8%

- SCS Computer Systems Pte. Ltd.

82.2 

82.2 

2.0%

2.0%

7.9%

8.0%

- Trustwave Holdings, Inc. 

1,021.8 

 – 

4.0%

–

14.2%

–

Note:
(1)  Weighted average growth rate used to extrapolate cash flows beyond the terminal year.

The  recoverable  values  of  cash  generating  units  including  goodwill  are  determined  based  on  value-in-use 
calculations.

The value-in-use calculations apply a discounted cash flow model using cash flow projections based on financial 
budgets and forecasts approved by management. The Group has used cash flow projections of five years except 
for Amobee and Trustwave which were based on cash flow projections of ten years to better reflect their stages 
of growth. Cash flows beyond the terminal year are extrapolated using the estimated growth rates stated in the 
table above. Key assumptions used in the calculation of value-in-use are growth rates, operating margins, capital 
expenditure and discount rates.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

188

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

23. 

IMPAIRMENT REVIEWS (Cont’d)

The terminal growth rates used do not exceed the long term average growth rates of the respective industry and 
country in which the entity operates and are consistent with forecasts included in industry reports. 

The discount rates applied to the cash flow projections are based on Weighted Average Cost of Capital (WACC) 
where the cost of a company’s debt and equity capital are weighted to reflect its capital structure. 

As at 31 March 2016, no impairment charge was required for goodwill arising from acquisition of subsidiaries, with 
any reasonably possible change to the key  assumptions  applied not likely to cause  the recoverable values to  be 
below their carrying values.

24. 

AVAILABLE-FOR-SALE (“AFS”) INVESTMENTS

Balance as at 1 April 
Additions 
Disposals/ Write-offs
Provision for impairment
Write-off against provision for impairment
Net fair value (losses)/ gains included in  

‘Other Comprehensive Income’

Reclassified to ‘Associates’
Translation differences

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

           268.3 
             38.8 
           (40.8)
           (11.6)
                 –  

           291.3 
             34.2 
           (87.2)
           (25.3)
             32.4 

             43.6 
                 –  
                 –  
                 –  
                 –  

             54.9 
                 –  
                 –  
                 –  
                 –  

           (87.5)
           (21.6)
               1.9 

             21.8 
                 –  
               1.1 

             (8.5)
                 –  
                 –  

           (11.3)
                 –  
                 –  

Balance as at 31 March

           147.5 

           268.3 

             35.1 

             43.6 

AFS investments included the following –

Quoted equity securities

- Thailand
- United States of America
- Singapore

Unquoted
  Equity securities 
  Others

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

              18.7 
              14.1 
                8.7 
              41.5 

            24.5 
            67.2 
              9.1 
          100.8 

              18.7 
                   –  
                8.7 
              27.4 

            24.5 
              0.5 
              9.1 
            34.1 

              95.0 
              11.0 
            106.0 

          153.1 
            14.4 
          167.5 

                7.7 
                   –  
                7.7 

              9.5 
                 –  
              9.5 

147.5 

          268.3 

              35.1 

            43.6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
189

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

25.  DERIVATIVE FINANCIAL INSTRUMENTS

Balance as at 1 April
Fair value (losses)/ gains

- included in income statement 
- included in ‘Hedging Reserve’

Translation differences

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

           489.7 

         (122.9)

             44.2 

         (198.9)

         (186.5)
             (2.2)
             (1.7)

           486.6 
           138.7 
           (12.7)

         (178.3)
             34.2 
                 –  

           126.0 
           117.1 
                 –  

Balance as at 31 March

           299.3 

           489.7 

           (99.9)

             44.2 

Disclosed as -
  Current asset
  Non-current asset
  Current liability
  Non-current liability

25.1  Fair Values

             17.5 
           622.6 
           (24.6)
         (316.2)

             29.8 
           742.1 
           (16.8)
         (265.4)

               9.5 
           321.0 
           (13.7)
         (416.7)

             29.9 
           463.5 
             (1.9)
         (447.3)

           299.3 

           489.7 

           (99.9)

             44.2 

The fair values of the currency and interest rate swap contracts exclude accrued interest of S$18.1 million (2015: 
S$20.0 million). The accrued interest is separately disclosed in Note 16 and Note 28.

The fair values of the derivative financial instruments were as follows –

2016

Fair value and cash flow hedges
  Cross currency swaps
Interest rate swaps

  Forward foreign exchange contracts

Derivatives that do not qualify for hedge accounting

Cross currency swaps
Interest rate swaps
Forward foreign exchange contracts

Disclosed as -
  Current
  Non-current

Group
Fair values 

Company
Fair values

Assets
S$ Mil

Liabilities
S$ Mil

Assets
S$ Mil

Liabilities
S$ Mil

579.2 
47.6 
10.7 

–  
2.6 
–  

121.7 
158.2 
46.7 

–  
12.7 
1.5 

–  
–  
2.7 

266.4 
61.4 
–  

72.0 
8.7 
21.6 

266.4 
61.4 
0.3 

640.1 

340.8 

330.5 

430.4 

17.5 
622.6 

24.6 
316.2 

9.5 
321.0 

13.7 
416.7 

640.1 

340.8 

330.5 

430.4 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

190

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

25.1  Fair Values (Cont’d)

2015

Fair value and cash flow hedges
  Cross currency swaps
Interest rate swaps

  Forward foreign exchange contracts

Derivatives that do not qualify for hedge accounting

Cross currency swaps
Interest rate swaps
Forward foreign exchange contracts

Disclosed as -
  Current
  Non-current

Group
Fair values 

Company
Fair values

Assets
S$ Mil

Liabilities
S$ Mil

Assets
S$ Mil

Liabilities
S$ Mil

662.4 
52.8 
51.7 

–  
4.7 
0.3  

65.5 
188.4 
15.2 

–  
13.0 
0.1 

33.2  
–  
32.4 

362.5 
65.0 
0.3  

12.8 
8.1 
0.2 

362.5 
65.4 
0.2 

771.9 

282.2 

493.4 

449.2 

29.8 
742.1 

16.8 
265.4 

29.9 
463.5 

1.9 
447.3 

771.9 

282.2 

493.4 

449.2 

The cash flow hedges are designated for foreign currency commitments and repayments of principal and interest of 
foreign currency denominated bonds. 

The forecast transactions for the foreign currency commitments are expected to occur in the financial year ending 
31 March 2017, while the forecast transactions for the repayment of principal and interest of the foreign currency 
denominated bonds will occur according to the timing disclosed in Note 30.

As at 31 March 2016, the details of the outstanding derivative financial instruments were as follows –

Group

Company

2016

2015

2016

2015

Interest rate swaps

Notional principal (S$ million equivalent)
Fixed interest rates
Floating interest rates

3,484.7 
1.2% to 6.2%
1.8% to 2.3%

3,608.5 
1.2% to 6.2%
1.3% to 2.7%

          4,336.9 
1.2% to 4.5%
1.5% to 1.8%

          4,454.3 
1.2% to 4.5%
0.3% to 1.3%

Cross currency swaps

Notional principal (S$ million equivalent)
Fixed interest rates
Floating interest rates

          5,327.3 
1.8% to 7.5%
1.4% to 3.8%

          5,259.9 
1.8% to 7.5%
0.7% to 4.1%

          6,208.0 
0.9% to 5.2%
1.3% to 3.5%

          6,326.0 
0.9% to 5.2%
0.7% to 2.5%

Forward foreign exchange

Notional principal (S$ million equivalent)

          2,122.8 

          1,623.8 

             611.1 

             559.8 

The interest rate swaps entered into by the Group are re-priced at intervals ranging from monthly to six-monthly 
periods. The interest rate swaps entered by the Company are re-priced every six months.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
191

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

26. 

LOAN TO AN ASSOCIATE/ NET DEFERRED GAIN 

Loan to an associate

1,100.5 

        1,610.5 

        1,100.5 

        1,610.5 

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

Net deferred gain
Classified as -
  Current
  Non-current

67.9 
1,323.3 

             67.9 
        1,369.8 

                 –  
                 –  

                 –  
                 –  

1,391.2 

        1,437.7 

                 –  

                 –  

In July 2011, Singtel established a business trust, NetLink Trust, as part of the IDA’s effective open access requirements 
under  Singapore’s  Next  Generation  Nationwide  Broadband  Network.  In  September  2011,  Singtel  sold  certain 
infrastructure assets, namely ducts and manholes used by OpenNet Pte. Ltd., and 7 exchange buildings (“Assets”), 
and Singtel’s business of providing duct and manhole services in relation to the Assets (“Business”) to NetLink Trust, 
for an aggregate consideration of approximately S$1.89 billion. Singtel also completed its subscription for a further 
567,380,000 units at S$1 each in NetLink Trust. 

The aggregate consideration paid by NetLink Trust for the purchase of the Assets and Business was financed by the 
issue of units to Singtel of S$567.4 million and loan from Singtel of S$1.33 billion. 

Although  currently  100%  owned  by  Singtel,  NetLink  Trust  is  managed  and  operated  by  CityNet  Infrastructure 
Management Pte. Ltd. in its capacity as trustee-manager. Singtel does not have effective control in NetLink Trust, 
and hence it is equity accounted as an associate at the Group. 

At the consolidated level, the gain on disposal of Assets and Business recorded by Singtel was deferred in the Group’s 
statement of financial position and is being amortised over the useful lives of the Assets. The unamortised deferred 
gain in the Group’s statement of financial position will be released to the Group’s income statement when NetLink 
Trust is partially or fully sold, based on the proportionate equity interest disposed. In addition, Singtel’s lease expenses 
paid to NetLink Trust and interest income earned from NetLink Trust are not eliminated on a line-by-line basis in  
the Group. 

In  November  2013,  the  Group  paid  S$142.6  million  to  NetLink  Trust  in  consideration  of  its  transfer  of  tax  benefits 
utilised by the Group, and S$11.4 million for additional investment in NetLink Trust. The monies were subsequently 
utilised by NetLink Trust for its acquisition of 100% equity interest in OpenNet Pte. Ltd. 

In October 2014, Singtel sold certain infrastructure assets to NetLink Trust for an aggregate consideration of S$280 
million. The aggregate consideration paid by NetLink Trust was financed by a loan from Singtel.   

The loan to NetLink Trust carries a fixed interest rate and is repayable on 22 April 2017. The loan is secured by a 
fixed and floating charge over NetLink Trust’s assets and business undertakings. Under the loan agreement, unpaid 
interest are included as part of the loan. 

As at 31 March 2016, the loan principal was S$1.10 billion (2015: S$1.61 billion) and interest included as part of the 
loan was S$5.5 million (2015: S$5.5 million), following a partial repayment of S$510 million during the financial year. 

As  at  31  March  2016,  the  unamortised  gross  deferred  gain  was  S$1.66  billion  (2015:  S$1.73  billion),  of  which  
S$273.6 million (2015: S$295.1 million) was applied to the Group’s carrying value of NetLink Trust and the remaining 
S$1.39 billion (2015: S$1.44 billion) was classified as ‘Net deferred gain’ in the Group’s statement of financial position.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

192

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

27.  OTHER NON-CURRENT RECEIVABLES

Prepayments
Receivable (see Note 16)
Other receivables

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

             193.0 
              62.3 
           373.5 

           162.8 
             51.3 
           182.4 

           175.4 
                 –  
                 –  

           182.6 
                 –  
                 –  

             628.8 

           396.5 

           175.4 

           182.6 

Other receivables comprise mainly accrued receivables in Australia under the device repayment plans and other 
handset repayment plans.

28. 

TRADE AND OTHER PAYABLES

Trade payables
Accruals
Interest payable on borrowings
Due to subsidiaries

- trade
- non-trade

Due to associates and joint ventures

- trade
- non-trade

Customers’ deposits
Other deferred income
Other payables

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

       3,409.9 
          916.1 
          130.5 

       3,305.6 
          805.6 
          115.6 

          616.6 
          171.5 
            35.8 

          698.3 
          164.9 
            34.4 

                –  
                –  
                –  

                –  
                –  
                –  

          271.8 
          394.9 
          666.7 

          247.8 
          137.7 
          385.5 

            27.8 
              0.1 
            27.9 

            27.2 
            18.4 
            64.0 

            26.0 
            12.8 
            38.8 

            21.3 
              0.1 
            21.4 

            25.3 
              0.2 
            25.5 

            25.9 
            20.6 
          146.4 

            16.5 
            11.8 
            41.9 

            16.1 
            14.2 
            47.3 

       4,594.0 

       4,458.5 

       1,582.2 

       1,386.2 

The trade payables are non-interest bearing and are generally settled on 30 to 60 days terms, with some payables 
relating to handset and network investments having payment terms of up to 365 days.

The interest payable on borrowings are generally settled on a half-year or annual basis except for interest payable 
on certain bonds and syndicated loan facilities which are settled on quarterly and monthly basis respectively. 

The amounts due to subsidiaries are repayable on demand and interest-free.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
193

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

29. 

PROVISION

The provision mainly relates to provision for liquidated damages and warranties. The movements were as follows –

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

Balance as at 1 April
Provision
Amount written off against provision

               5.8 
               0.8 
             (3.5)

               1.6 
               4.3 
             (0.1)

               3.4 
               0.5 
             (1.7)

                 –  
               3.5 
             (0.1)

Balance as at 31 March

               3.1 

               5.8 

               2.2 

               3.4 

30. 

BORROWINGS (UNSECURED)

Current
  Bonds
  Bank loans

Non-current
  Bonds
  Bank loans

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

           395.5 
           200.0 

                 –  
           150.0 

                 –  
                 –  

                 –  
                 –  

           595.5 

           150.0 

                 –  

                 –  

        7,952.1 
        1,066.9 

        7,240.7 
        1,350.2 

           747.2 
                 –  

           925.2 
                 –  

        9,019.0 

        8,590.9 

           747.2 

           925.2 

Total unsecured borrowings

        9,614.5 

        8,740.9 

           747.2 

           925.2 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

194

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

30.1  Bonds

Principal amount

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

US$500 million (1)(2)
US$1,800 million (2) (2015: US$1,300 million)
US$500 million (2)
US$400 million

           697.5 
        2,515.9 
           747.2 
           538.7 

           713.2 
        1,885.5 
           925.2 
           550.3 

                 –  
                 –  
           747.2 
                 –  

                 –  
                 –  
           925.2 
                 –  

€700 million (1)(2) 

        1,104.2 

        1,066.9 

                 –  

                 –  

A$625 million (1) (2015: A$375 million)

           642.0 

           390.8 

                 –  

                 –  

S$800 million (2015: S$550 million)
S$600 million (2) 
S$150 million (1) 

           800.0 
           600.0 
           149.9 

           550.0 
           600.0 
                 –  

                 –  
                 –  
                 –  

                 –  
                 –  
                 –  

¥10,000 million  

HK$1,450 million 
HK$1,000 million (1) 

Classified as -
  Current
  Non-current

           122.3 

           116.2 

                 –  

                 –  

           256.3 
           173.6 

           265.4 
           177.2 

                 –  
                 –  

                 –  
                 –  

        8,347.6 

        7,240.7 

           747.2 

           925.2 

           395.5 
        7,952.1 

                 –  
        7,240.7 

                 –  
           747.2 

                 –  
           925.2 

        8,347.6 

        7,240.7 

           747.2 

           925.2 

Notes:
(1)  The bonds, issued by Optus Group, are subject to a negative pledge that limits the amount of secured indebtedness of certain subsidiaries of Optus.
(2)  The bonds are listed on the Singapore Exchange. 

30.2  Bank Loans

Current
Non-current 

Group

2016
S$ Mil

2015
S$ Mil

           200.0 
        1,066.9 

           150.0 
        1,350.2 

        1,266.9 

        1,500.2 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
195

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

30.3  Maturity

The maturity periods of the non-current unsecured borrowings at the end of the reporting period were as follows –

Between one and two years
Between two and five years
Over five years

30.4   Interest Rates

Group

Company

2016
S$ Mil

2015
S$ Mil

2,014.1 
        3,883.8 
3,121.1 

620.5 
        3,986.4 
3,984.0 

2016
S$ Mil

–  
–  
747.2 

2015
S$ Mil

–  
–  
925.2 

        9,019.0 

        8,590.9 

           747.2 

           925.2 

The weighted average effective interest rates at the end of the reporting period were as follows –

Bonds (fixed rate)
Bonds (floating rate)
Bank loans (floating rate)

Group

Company

2016
%

3.8
1.7
2.3

2015
%

3.9
1.3
1.9

2016
%

7.4  
–  
–  

2015
%

7.4  
–  
–

 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

196

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

30.5  The  tables  below  set  out  the  maturity  profile  of  borrowings  and  related  swaps  based  on  expected  contractual 

undiscounted cash flows. 

Group

As at 31 March 2016
Net-settled interest rate swaps 
Cross currency interest rate swaps (gross-settled) 

- Inflow
- Outflow

Borrowings

As at 31 March 2015
Net-settled interest rate swaps 
Cross currency interest rate swaps (gross-settled) 

- Inflow
- Outflow

Borrowings

Company 

As at 31 March 2016
Net-settled interest rate swaps 
Cross currency interest rate swaps (gross-settled) 

- Inflow
- Outflow

Borrowings

As at 31 March 2015
Net-settled interest rate swaps 
Cross currency interest rate swaps (gross-settled) 

- Inflow
- Outflow

Borrowings

Less than
1 year
S$ Mil

Between 
1 and 2 years
S$ Mil

Between 
2 and 5 years
S$ Mil

Over 
5 years
S$ Mil

           30.7 

                34.7 

                76.9 

          10.2 

       (191.0)
         162.8 
             2.5 
         905.1 

            (177.0)
             147.9 
                  5.6 
     1,703.9 

            (432.2)
              337.1 
              (18.2)
         4,867.2 

      (559.0)
        365.8 
      (183.0)
     3,408.5 

         907.6 

         1,709.5 

         4,849.0 

     3,225.5 

           42.2 

              42.5 

              97.0 

          21.5 

       (188.4)
         142.0 
           (4.2)
         429.8 

           (188.5)
            139.7 
               (6.3)
            883.2 

          (483.5)
            374.6 
            (11.9)
        4,403.9 

      (687.8)
        340.4 
      (325.9)
     4,444.8 

         425.6 

            876.9 

        4,392.0 

     4,118.9 

Less than
1 year
S$ Mil

Between 
1 and 2 years
S$ Mil

Between 
2 and 5 years
S$ Mil

Over 
5 years 
S$ Mil

1.2 

1.2 

3.6 

13.2 

(171.7)
154.4 
(16.1)
49.7 

(145.7)
128.2 
(16.3)
49.7 

(301.7)
249.4 
(48.7)
149.0 

(567.3)
375.6 
(178.5)
1,427.5 

33.6 

33.4 

100.3 

1,249.0 

3.0 

1.7 

5.2 

20.8 

(158.1)
132.1 
(23.0)
50.7 

(158.1)
132.1 
(24.3)
50.7 

(332.0)
253.9 
(72.9)
152.2 

(662.6)
350.0 
(291.8)
1,490.1 

27.7

26.4

79.3

1,198.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
197

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

31. 

BORROWINGS (SECURED)

Current
  Finance lease
  Bank loans 

Non-current
  Finance lease
  Bank loans 

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

             30.7 
             59.5 

             24.4 
                 –  

               1.5 
                 –  

               1.5 
                 –  

             90.2 

             24.4 

               1.5 

               1.5 

           189.9 
             46.1 

           180.7 
             32.8 

           158.8 
                 –  

           160.4 
                 –  

           236.0 

           213.5 

           158.8 

           160.4 

Total secured borrowings

           326.2 

           237.9 

           160.3 

           161.9 

Secured borrowings of the Group and the Company comprise finance lease liabilities including lease liabilities in 
respect of certain assets leased from NetLink Trust. 

In addition, the Group’s secured borrowings as at 31 March 2016 included –

(a) 

certain bank loans of Adconion, secured on the assets and shares in Adconion Media, Inc. and its subsidiary, 
Adconion Direct, Inc., and a fixed and floating charge on the assets in Adconion Pty Ltd; and 

(b) 

certain bank loans of Trustwave, secured on the assets of Trustwave and shares in certain of its subsidiaries.   

31.1  Finance Lease Liabilities

The minimum lease payments under the finance lease liabilities were payable as follows –

Not later than one year
Later than one but not later than five years
Later than five years

Group

Company

2016
S$ Mil

45.3 
81.0 
613.0 
739.3 

2015
S$ Mil

38.2 
71.4 
624.7 
734.3 

2016
S$ Mil

13.0 
48.5 
613.0 
674.5 

2015
S$ Mil

13.0 
49.8 
624.7 
687.5 

Less: Future finance charges

(518.7)

(529.2)

(514.2)

(525.6)

220.6 

205.1 

160.3 

161.9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

198

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

31.2  Maturity

The maturity periods of the non-current secured borrowings at the end of the reporting period were as follows –

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

Between one and two years
Between two and five years
Over five years

             28.2 
             52.1 
           155.7 

             15.2 
             42.3 
           156.0 

               1.6 
               1.5 
           155.7 

               1.6 
               2.8 
           156.0 

           236.0 

           213.5 

           158.8 

           160.4 

31.3 

Interest Rates

The weighted average effective interest rates per annum at the end of the reporting period were as follows –

Finance lease liabilities
Bank loans

                  5.9 
                  6.2 

                 6.2 
                 3.9 

               7.3 
                 –  

               7.3 
                 –  

Group

2016
%

2015
%

Company

2016
%

2015
%

31.4  The tables below set out the maturity profile of the secured bank loans based on expected contractual undiscounted 

cash flows. 

Group

As at 31 March 2016
Bank loans

Group

As at 31 March 2015
Bank loans

Less than
1 year
S$ Mil

Between 
1 and 2 years
S$ Mil

Between 
2 and 5 years
S$ Mil

62.2 

2.7 

51.6 

Less than
1 year
S$ Mil

Between 
1 and 2 years
S$ Mil

Between 
2 and 5 years
S$ Mil

1.9 

1.9 

36.7 

32.  OTHER NON-CURRENT LIABILITIES

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

Performance share liability
Other payables

               7.8 
           270.2 

             19.0 
           296.5 

               7.8 
             10.6 

             19.0 
             11.0 

           278.0 

           315.5 

             18.4 

             30.0 

Other payables mainly relate to accruals of rental for certain network sites, long-term employee entitlements and 
asset retirement obligations. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
199

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

33. 

SHARE CAPITAL

Group and Company

2016

2015

Number of
shares
Mil

Share 
capital
S$ Mil

Number of
shares
Mil

Share 
capital
S$ Mil

Balance as at 1 April and 31 March

     15,943.5 

       2,634.0 

     15,943.5 

       2,634.0 

All  issued  shares  are  fully  paid  and  have  no  par  value.  The  issued  shares  carry  one  vote  per  share  and  a  right  to 
dividends as and when declared by the Company. 

Capital Management

The  Group  is  committed  to  an  optimal  capital  structure  while  maintaining  financial  flexibility  and  investment 
grade credit ratings. In order to achieve an optimal capital structure, the Group may adjust the amount of dividend 
payment, return capital to shareholders, issue new shares, buy back issued shares, obtain new borrowings or reduce 
its borrowings.

The Group monitors capital based on gross and net gearing ratios, and the dividend payout ratio ranges from 60% to 
75% of underlying net profit. Underlying net profit is defined as net profit before exceptional and other one-off items.

From time to time, the Group purchases its own shares from the market. The shares purchased are primarily for 
delivery to employees upon vesting of performance shares awarded under Singtel performance share plans. The 
Group can also cancel the shares which are repurchased from the market.

There were no changes in the Group’s approach to capital management during the financial year.

34.  DIVIDENDS

Final dividend of 10.7 cents  

(2015: 10.0 cents) per share, paid

Interim dividend of 6.8 cents 

(2015: 6.8 cents) per share, paid

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

     1,705.4 

     1,593.8 

     1,705.9 

     1,594.3 

     1,083.8 

     1,083.7 

     1,084.2 

     1,084.2 

     2,789.2 

     2,677.5 

     2,790.1 

     2,678.5 

During the financial year, a final one-tier tax exempt ordinary dividend of 10.7 cents per share, totalling S$1.71 billion 
was paid in respect of the previous financial year ended 31 March 2015, and an interim one-tier tax exempt ordinary 
dividend of 6.8 cents per share totalling S$1.08 billion was paid in respect of the current financial year ended 31 
March 2016. 

The amount paid by the Group differed from that paid by the Company due to dividends on performance shares held 
by the Trust that were eliminated on consolidation of the Trust.

The  Directors  have  proposed  a  final  one-tier  tax  exempt  ordinary  dividend  of  10.7  cents  per  share,  totalling 
approximately  S$1.71  billion  in  respect  of  the  current  financial  year  ended  31  March  2016  for  approval  at  the 
forthcoming Annual General Meeting.  

These financial statements do not reflect the above final dividend payable of approximately S$1.71 billion, which 
will be accounted for in the shareholders’ equity as an appropriation of ‘Retained Earnings’ in the next financial year 
ending 31 March 2017.

 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

200

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

35. 

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

The Group classifies fair value measurements using a fair value hierarchy which reflects the significance of the inputs 
used in making the measurements. The fair value hierarchy has the following levels -  

(a) 

quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);

(b) 

inputs other than quoted prices included within Level 1 which are observable for the asset or liability, either 
directly (i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and

(c) 

inputs for the asset or liability which are not based on observable market data (unobservable inputs) (Level 3).

35.1  Financial assets and liabilities measured at fair value 

Group 
2016

Financial assets 
  AFS investments (1) (Note 24)
- Quoted equity securities 
- Unquoted investments 

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

              41.5 
                  –  
              41.5 

                  –  
                  –  
                  –  

                  –  
              42.9 
              42.9 

              41.5 
              42.9 
              84.4 

  Derivative financial instruments (Note 25.1)

                  –  

            640.1 

                  –  

            640.1 

              41.5 

            640.1 

              42.9 

            724.5 

Financial liabilities
  Derivative financial instruments (Note 25.1)

                  –  

            340.8 

                  –  

            340.8 

Group 
2015

Financial assets 
  AFS investments (1) (Note 24)
- Quoted equity securities 
- Unquoted investments 

                  –  

            340.8 

                  –  

            340.8 

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

100.8
                  –  
100.8

                  –  
                  –  
                  –  

                  –  
100.5
100.5

100.8
100.5
201.3

771.9

973.2

  Derivative financial instruments (Note 25.1)

                  –  

771.9

–

100.8 

771.9 

100.5 

Financial liabilities
  Derivative financial instruments (Note 25.1)

                  –  

282.2

                  –  

282.2

                  –  

282.2

                  –  

282.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
201

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

35.1  Financial assets and liabilities measured at fair value (Cont’d)

Company 
2016

Financial assets 
  AFS investments (Note 24)
- Quoted equity securities 
- Unquoted equity securities  

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

27.4
                  –  
27.4

                  –  
                  –  
                  –  

                  –  
7.7
7.7

27.4
7.7
35.1

  Derivative financial instruments (Note 25.1)

                  –  

330.5

                  –  

330.5

Financial liabilities
  Derivative financial instruments (Note 25.1)

                  –  

430.4

                  –  

430.4

27.4

330.5

7.7

365.6

Company 
2015

Financial assets 
  AFS investments (Note 24)
- Quoted equity securities 
- Unquoted equity securities 

                  –  

430.4

                  –  

430.4

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

34.1
                  –  
34.1

                  –  
                  –  
                  –  

                  –  
9.5
9.5

34.1
9.5
43.6

493.4

537.0

  Derivative financial instruments (Note 25.1)

                  –  

493.4

34.1

493.4

–

9.5

Financial liabilities
  Derivative financial instruments (Note 25.1)

                  –  

449.2

                  –  

449.2

                  –  

449.2

                  –  

449.2

Note:
(1)  Excluded AFS investments stated at cost of S$63.1 million (2015: S$67.0 million). 

See Note 2.7 for the policies on fair value estimation of the financial assets and liabilities. 

The fair values of the unquoted AFS investments included within Level 3 were estimated using the net asset values 
as reported in the statements of financial position in the management accounts of the AFS investments or the use of 
recent arm’s length transactions. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

202

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

35.1  Financial assets and liabilities measured at fair value (Cont’d)

The following table presents the reconciliation for the unquoted AFS investments measured at fair value based on 
unobservable inputs (Level 3) –

AFS investments - unquoted
Balance as at 1 April 
Total (losses)/ gains included in 

‘Fair Value Reserve’

Additions 
Provision for impairment
Disposals  
Transfer from Level 3
Transfer to Level 3

Group

Company

2016
S$ Mil

2015
S$ Mil

2016
S$ Mil

2015
S$ Mil

          100.5 

          108.2 

              9.5 

            10.5 

           (43.4)
              1.9 
             (6.4)
           (13.3)
                 –  
              3.6 

              4.9 
                 –  
                 –  
           (15.6)
             (5.8)
              8.8 

             (1.8)
                 –  
                 –  
                 –  
                 –  
                 –  

             (1.0)
                 –  
                 –  
                 –  
                 –  
                 –  

Balance as at 31 March 

            42.9 

          100.5 

              7.7 

              9.5 

35.2  Financial assets and liabilities not measured at fair value (but with fair value disclosed)

2016

Financial liabilities

  Group
  Bonds (Note 30.1) 

  Company 
  Bonds (Note 30.1) 

2015

Financial liabilities

  Group
  Bonds (Note 30.1) 

  Company 
  Bonds (Note 30.1) 

Carrying Value 

Fair value 

S$ Mil

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

8,347.6 

6,100.1 

2,746.3 

–  

8,846.4 

747.2 

969.0 

–  

–  

969.0 

Carrying Value 

Fair value 

S$ Mil

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

7,240.7

5,478.3

2,101.8

–  

7,580.1

925.2

1,015.7

–  

–  

1,015.7

See  Note  2.7  on  the  basis  of  estimating  the  fair  values  and  Note  25  for  information  on  the  derivative  financial 
instruments used for hedging the risks associated with the borrowings.

Except as disclosed in the above tables, the carrying values of other financial assets and liabilities approximate their 
fair values. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
203

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

36. 

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

36.1   Financial Risk Factors

The Group’s activities are exposed to a variety of financial risks: foreign exchange risk, interest rate risk, credit risk, 
liquidity risk and market risk. The Group’s overall risk management seeks to minimise the potential adverse effects of 
these risks on the financial performance of the Group.

The  Group  uses  financial  instruments  such  as  currency  forwards,  cross  currency  and  interest  rate  swaps,  and  
foreign currency borrowings to hedge certain financial risk exposures. No financial derivatives are held or sold for 
speculative purposes.

The Directors assume responsibility for the overall financial risk management of the Group. For the financial year 
ended 31 March 2016, the Risk Committee and Finance and Investment Committee (“FIC”), which are committees 
of the Board, assisted the Directors in reviewing and establishing policies relating to financial risk management in 
accordance with the policies and directives of the Directors.

36.2   Foreign Exchange Risk

The foreign exchange risk of the Group arises from subsidiaries, associates and joint ventures operating in foreign 
countries,  mainly  Australia,  India,  Indonesia,  the  Philippines,  Thailand  and  United  States  of  America.  Additionally, 
the Group’s joint venture in India, Bharti Airtel Limited, is exposed to foreign exchange risks from its operations in 
Bangladesh, Sri Lanka and 17 countries across Africa. Translation risks of overseas net investments are not hedged 
unless approved by the FIC. 

The Group has borrowings denominated in foreign currencies that have primarily been hedged into the functional 
currency of the respective borrowing entities using cross currency swaps in order to reduce the foreign currency 
exposure on these borrowings. As the hedges are perfect, any change in the fair value of the cross currency swaps 
has minimal impact on profit and equity. 

The  Group  Treasury  Policy,  as  approved  by  the  FIC,  is  to  substantially  hedge  all  known  transactional  currency 
exposures.  The  Group  generates  revenue,  receives  foreign  dividends  and  incurs  costs  in  currencies  which  are 
other than the functional currencies of the operating units, thus giving rise to foreign exchange risk.  The currency 
exposures are primarily for the Australian Dollar, Euro, Hong Kong Dollar, Indian Rupee, Indonesian Rupiah, Philippine 
Peso, Pound Sterling, Thai Baht, United States Dollar and Japanese Yen. 

Foreign currency purchases and forward currency contracts are used to reduce the Group’s transactional exposure 
to  foreign  currency  exchange  rate  fluctuations.  The  foreign  exchange  difference  on  trade  balances  is  disclosed 
under Note 6 and the foreign exchange difference on non-trade balances is disclosed under Note 10.

36.3 

Interest Rate Risk

The Group has cash balances placed with reputable banks and financial institutions which generate interest income 
for  the  Group.  The  Group  manages  its  interest  rate  risks  on  its  interest  income  by  placing  the  cash  balances  on 
varying maturities and interest rate terms.

The Group’s borrowings include bank borrowings and bonds. The borrowings expose the Group to interest rate 
risk. The Group seeks to minimise its exposure to these risks by entering into interest rate swaps over the duration 
of its borrowings.  Interest rate swaps entail the Group agreeing to exchange, at specified intervals, the difference 
between  fixed  and  variable  rate  interest  amounts  calculated  by  reference  to  an  agreed-upon  notional  principal 
amount. As at 31 March 2016, after taking into account the effect of interest rate swaps, approximately 76% (2015: 
72%) of the Group’s borrowings were at fixed rates of interest.

 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

204

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

36.3 

Interest Rate Risk (Cont’d)

As at 31 March 2016, assuming that the market interest rate is 50 basis points higher or lower and with no change to 
the other variables, the annualised interest expense on borrowings would be higher or lower by S$14.1 million (2015: 
S$12.8 million). 

36.4  Credit Risk

Financial  assets  that  potentially  subject  the  Group  to  concentrations  of  credit  risk  consist  primarily  of  trade 
receivables, cash and cash equivalents, marketable securities and financial instruments used in hedging activities.

The Group has no significant concentration of credit risk from trade receivables due to its diverse customer base.  
Credit  risk  is  managed  through  the  application  of  credit  assessment  and  approvals,  credit  limits  and  monitoring 
procedures. Where appropriate, the Group obtains deposits or bank guarantees from customers or enters into credit 
insurance arrangements. 

The Group places its cash and cash equivalents and marketable securities with a number of major and high credit 
rating commercial banks and other financial institutions. Derivative counter-parties are limited to high credit rating 
commercial banks and other financial institutions. The Group has policies that limit the financial exposure to any one 
financial institution.

36.5  Liquidity Risk

To manage liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate 
by the management to finance the Group’s operations and mitigate the effects of fluctuations in cash flows.  Due to 
the dynamic nature of the underlying business, the Group aims at maintaining flexibility in funding by keeping both 
committed and uncommitted credit lines available. 

36.6  Market Risk

The  Group  has  investments  in  quoted  equity  shares.  The  market  value  of  these  investments  will  fluctuate  with  
market conditions.

37. 

SEGMENT INFORMATION

Segment  information  is  presented  based  on  the  information  reviewed  by  senior  management  for  performance 
measurement and resource allocation.

Singtel Group is structured into three business segments, namely Group Consumer, Group Enterprise and Group 
Digital Life.

Group  Consumer  comprises  the  consumer  businesses  across  Singapore  and  Australia,  as  well  as  the  Group’s 
investments, namely AIS in Thailand, Airtel in India, Africa and South Asia, Globe in the Philippines, and Telkomsel in 
Indonesia. It focuses on driving greater value and performance from the core carriage business including mobile, 
pay TV, fixed broadband and voice, as well as equipment sales. From 1 April 2015, certain businesses which were 
previously with Group Digital Life were transferred to Group Consumer. 

Group Enterprise comprises the business groups across Singapore, Australia, United States of America, Europe  
and  the  region,  and  focuses  on  growing  the  Group’s  position  in  the  enterprise  markets.  Key  services  include 
mobile,  equipment  sales,  fixed  voice  and  data,  managed  services,  cloud  computing,  cyber  security,  IT  and  
professional consulting.

 
 
 
 
 
 
 
 
 
 
 
205

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

37. 

SEGMENT INFORMATION (Cont’d)

Group  Digital  Life  (“GDL”)  focuses  on  using  the  latest  internet  technologies  and  assets  of  the  Group’s  operating 
companies to develop new revenue and growth engines by entering adjacent businesses where it has a competitive 
advantage. From 1 April 2015, GDL had sharpened its strategy to focus on three key businesses - digital marketing 
(Amobee),  regional  premium  over-the-top  video  (HOOQ)  and  advanced  analytics  and  intelligence  capabilities 
(DataSpark),  in  addition  to  strengthening  its  role  as  Singtel’s  digital  innovation  engine  through  Innov8.  Certain 
businesses which were previously within GDL were transferred to Group Consumer. 

Corporate comprises the costs of Group functions not allocated to the three business segments. 

The  measurement  of  segment  results  which  is  before  exceptional  items,  is  in  line  with  the  basis  of  information 
presented to management for internal management reporting purposes. 

The costs of shared and common infrastructure are allocated to business segments using established methodologies. 

The Group’s reportable segments by the three business segments for the financial year ended 31 March 2016 and  
31 March 2015 were as follows –

Group – 2016

Group 
Consumer 
S$ Mil

Group 
Enterprise 
S$ Mil

Group 
Digital Life
S$ Mil

Corporate
S$ Mil

Group 
Total
S$ Mil

Operating revenue

   10,110.2 

     6,396.9 

            454.1 

                     –  

   16,961.2 

Operating expenses 
Other income
Earnings before interest, tax, depreciation 

    (6,969.7)
         125.8 

    (4,466.6)
           28.4 

           (587.7)
               (3.1)

             (72.8)
                (2.8)

 (12,096.8)
         148.3 

and amortisation (“EBITDA”)

3,266.3 

1,958.7 

           (136.7)

              (75.6)

     5,012.7 

Share of pre-tax results of associates and 

joint ventures 

- Airtel
- Telkomsel 
- Globe
- AIS
- Others 

         678.1 
     1,139.6 
         335.4 
         453.4 
             1.1 
     2,607.6 

                 –  
                 –  
                 –  
                 –  
                 –  
                 –  

                    –  
                    –  
                    –  
                    –  
                    –  
                    –  

                     –  
                     –  
                     –  
                     –  
             183.2 
             183.2 

         678.1 
     1,139.6 
         335.4 
         453.4 
         184.3 
     2,790.8 

EBITDA and share of pre-tax results of 

associates and joint ventures 

     5,873.9 

     1,958.7 

           (136.7)              107.6 

     7,803.5 

Depreciation and amortisation 

    (1,455.4)

       (621.6)

             (68.8)

                (3.0)

    (2,148.8)

Earnings before interest and tax (“EBIT”)

     4,418.5 

     1,337.1 

           (205.5)              104.6 

     5,654.7 

Segment assets 
Investment in associates and joint ventures
- Airtel
- Telkomsel 
- Globe 
- AIS 
- Others 

     5,478.7 
     3,471.0 
     1,079.9 
         605.7 
           24.7 
   10,660.0 

                 –  
                 –  
                 –  
                 –  
                 –  
                 –  

                    –  
                    –  
                    –  
                    –  
                    –  
                    –  

                     –  
                     –  
                     –  
                     –  
             426.2 
             426.2 

     5,478.7 
     3,471.0 
     1,079.9 
         605.7 
         450.9 
   11,086.2 

Goodwill on acquisition of subsidiaries
Other assets

     9,191.2 
   11,728.9 

     1,195.8 
     5,228.5 

            703.3 
            608.8 

                     –  
         3,823.0 

   11,090.3 
   21,389.2 

   31,580.1 

     6,424.3 

         1,312.1 

         4,249.2 

   43,565.7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

206

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

37. 

SEGMENT INFORMATION (Cont’d)

Group – 2015

Operating revenue

Operating expenses 
Other income
EBITDA

Share of pre-tax results of associates and 

joint ventures 

- Airtel
- Telkomsel 
- Globe
- AIS
- Others 

Group 
Consumer 
S$ Mil

Group 
Enterprise 
S$ Mil

Group 
Digital Life
S$ Mil

Corporate
S$ Mil

Group 
Total
S$ Mil

   10,559.4 

     6,320.4 

            343.1 

                   –  

   17,222.9 

    (7,354.3)
         111.5 
     3,316.6 

    (4,296.1)
           36.9 
     2,061.2 

           (554.8)
               (4.2)
           (215.9)

             (78.4)
                 7.2 
             (71.2)

 (12,283.6)
         151.4 
     5,090.7 

         735.7 
         982.3 
         305.6 
         431.0 
             1.1 
     2,455.7 

                 –                       –                       –  
                 –                       –                       –  
                 –                       –                       –  
                 –                       –                       –  
                 –                       –                123.1 
                 –                       –                123.1 

         735.7 
         982.3 
         305.6 
         431.0 
         124.2 
     2,578.8 

EBITDA and share of pre-tax results of 

associates and joint ventures 

     5,772.3 

     2,061.2 

           (215.9)

               51.9 

     7,669.5 

Depreciation and amortisation 

    (1,478.0)

       (608.4)

             (72.9)

                (2.1)

    (2,161.4)

EBIT

     4,294.3 

     1,452.8 

           (288.8)

               49.8 

     5,508.1 

Segment assets 
Investment in associates and joint ventures
- Airtel
- Telkomsel 
- Globe 
- AIS 
- Others 

     5,323.3 
     3,410.1 
     1,049.8 
         686.3 
           24.1 
   10,493.6 

                 –                       –                       –  
                 –                       –                       –  
                 –                       –                       –  
                 –                       –                       –  
                 –                       –                352.6 
                 –                       –                352.6 

     5,323.3 
     3,410.1 
     1,049.8 
         686.3 
         376.7 
   10,846.2 

Goodwill on acquisition of subsidiaries
Other assets

     9,191.9 
   10,869.2 

         175.1 
     4,897.9 

            756.0 
            781.8 

                    –  
         4,548.7 

   10,123.0 
   21,097.6 

   30,554.7 

     5,073.0 

         1,537.8 

         4,901.3 

   42,066.8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
207

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

37. 

SEGMENT INFORMATION (Cont’d)

A reconciliation of the total reportable segments’ EBIT to the Group’s profit before tax was as follows –

EBIT 

  Share of exceptional items of associates and joint ventures (post-tax)
  Share of tax expense of associates and joint ventures 
  Write-back of impairment provision on an associate
  Exceptional items 

Profit before interest, investment income (net) and tax 

Interest and investment income (net)

  Finance costs 

Profit before tax 

Group

2016
S$ Mil

2015
S$ Mil

5,654.7 

5,508.1 

67.2 
(863.1)
31.7 
(44.8)

4,845.7 
94.7 
(359.6)

(31.7)
(811.8)
–  
14.8 

4,679.4 
92.8 
(309.2)

4,580.8 

4,463.0 

The Group’s revenue from its major products and services are disclosed in Note 4. 

The Group has a large and diversified customer base which consists of individuals and corporations. There was no 
single customer that contributed 10% or more of the Group’s revenue for the financial years ended 31 March 2016 
and 31 March 2015.  

38.  OPERATING LEASE COMMITMENTS

The future aggregate minimum lease payments under non-cancellable operating leases contracted for at the end of 
the reporting period but not recognised as liabilities, were as follows –

Group

2016
S$ Mil

2015
S$ Mil

Company

2016
S$ Mil

2015
S$ Mil

Not later than one year
Later than one but not later than five years
Later than five years

           349.7 
        1,220.6 
        1,773.3 

           400.4 
        1,033.4 
        1,668.1 

           101.7 
           298.7 
           427.2 

             99.7 
           296.2 
           502.2 

        3,343.6 

        3,101.9 

           827.6 

           898.1 

Sale and operating leaseback contracts were entered into for certain property, plant and equipment for a period of 
20 years commencing on 2 March 2005 and 1 November 2010. The above commitments included the minimum 
amounts  payable  of  S$41.8  million  (2015:  S$41.2  million)  per  annum  under  those  contracts.  The  operating  lease 
payments under such contracts are subject to review every year with a general increase not exceeding the higher of 
2% or Consumer Price Index percentage of the preceding year.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

208

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

39. 

COMMITMENTS

39.1  The commitments for capital and operating expenditures, and investments which had not been recognised in the 

financial statements, excluding the commitments shown under Note 39.2, were as follows –

Authorised and contracted for

        1,618.7 

           686.2 

           346.5 

           248.2 

Group

2016
S$ Mil

2015
S$ Mil

Company

2016
S$ Mil

2015
S$ Mil

39.2  As at 31 March 2016, the Group’s commitments for the purchase of broadcasting programme rights were S$904 
million (2015: S$362 million). The commitments included only the minimum guaranteed amounts payable under the 
respective contracts and do not include amounts that may be payable based on revenue share arrangement which 
cannot be reliably determined as at the end of the reporting period. 

40.  CONTINGENT LIABILITIES OF SINGTEL AND ITS SUBSIDIARIES

(a) 

Guarantees

As at 31 March 2016,

(i) 

(ii) 

The Group and Company provided bankers’ and other guarantees, and insurance bonds of S$337.1 
million and S$103.2 million (31 March 2015: S$413.8 million and S$225.4 million) respectively.

The  Company  provided  guarantees  for  loans  of  S$740  million  (31  March  2015:  S$800  million)  drawn  
down  under  various  loan  facilities  entered  into  by  Singtel  Group  Treasury  Pte.  Ltd.  (“SGT”)  with 
maturities between December 2016 and May 2017.

(iii) 

The  Company  provided  guarantees  for  SGT’s  notes  issue  of  an  aggregate  equivalent  amount  of  
S$4.63 billion (31 March 2015: S$3.70 billion) due between July 2016 and June 2025.

(b) 

(c) 

Consistent with other large groups, Singapore Telecom Australia Investments Pty Limited (“STAI”), the head 
tax entity in Australia, has been subject to information requests from the Australian Taxation Office (“ATO”). 
In  December  2013,  STAI  received  a  tax  position  paper  from  the  ATO  in  connection  with  the  acquisition 
financing of Optus and subsequently, on 22 October 2014, STAI received a Statement of Audit Position. On 
30 November 2015, STAI received the final Statement of Audit Position from the ATO. STAI has requested the 
final Statement of Audit Position to be subject to an Independent Review within the ATO. STAI has received 
advice  from  external  experts  in  relation  to  the  matter  and  intends  to  defend  its  position.  Accordingly,  no 
provision has been made as at 31 March 2016.

Optus (and certain subsidiaries) is in dispute with third parties regarding certain transactions entered into in 
the ordinary course of business. Some of these disputes involve legal proceedings relating to the contractual 
obligations of the parties and/or representations made, including the amounts payable by Optus’ companies 
under the contracts and claims against Optus’ companies for compensation for alleged breach of contract 
and/or representations. Optus is vigorously defending all these claims. 

 
 
 
209

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

41. 

SIGNIFICANT CONTINGENT LIABILITIES OF JOINT VENTURES 

(a) 

Airtel, a 32.9% joint venture of the Group, has disputes with various government authorities in the respective 
jurisdictions where its operations are based, as well as with third parties regarding certain transactions entered 
into in the ordinary course of business. 

On  8  January  2013,  the  local  regulator,  Department  of  Telecommunications  (“DOT”)  issued  a  demand  on 
Airtel Group for Rs. 52.01 billion (Singtel’s share: S$348 million) towards levy of one time spectrum charge. 
The  demand  included  a  retrospective  charge  of  Rs.  9.09  billion  (Singtel’s  share:  S$61  million)  for  holding 
GSM spectrum beyond 6.2 MHz for the period from 1 July 2008 to 31 December 2012 and also a prospective 
charge of Rs. 42.92 billion (Singtel’s share: S$287 million) for GSM spectrum held beyond 4.4 MHz for the 
period from 1 January 2013, till the expiry of the initial terms of the respective licenses. 

In the opinion of Airtel, inter-alia, the above demand amounts to alteration of the terms of the licenses issued 
in the past. Airtel believes, based on independent legal opinion and its evaluation, that it is not probable that 
any material part of the claim will be awarded against Airtel and therefore, pending outcome of this matter, 
no provision has been recognised. 

As  at  31  March  2016,  other  taxes,  custom  duties  and  demands  under  adjudication,  appeal  or  disputes 
amounted  to  approximately  Rs.  102  billion  (Singtel’s  share:  S$683  million).  In  respect  of  some  of  the  tax 
issues, pending final decisions, Airtel had deposited amounts with statutory authorities.

Airtel  Group  has  79.05%  shareholding  in  Airtel  Networks  Limited  (“ANL”),  whose  principal  activity  is  the 
provision of mobile telecommunication services in Nigeria.

Econet  Wireless  Limited  (“EWL”)  has  claimed  for  entitlement  to  a  5%  stake  in  ANL  in  2004  and  a  claim 
alleging breach of a shareholders’ agreement between EWL and former shareholders of ANL in 2006. Airtel is 
appealing earlier court and arbitral decisions and is defending its positions vigorously. Under the terms of the 
acquisition by Airtel of these assets from Zain International B.V. in 2010, Airtel has the benefit of applicable 
seller’s indemnities in respect of such matters.

(b) 

The Group holds an equity interest of 23.3% in AIS. 

In 2008, TOT Public Company Limited (“TOT”) and CAT Telecom Public Company Limited (“CAT”) demanded 
that AIS and its subsidiary, Digital Phone Company Limited (“DPC”) respectively pay additional revenue shares 
of THB 31.5 billion (Singtel’s share: S$281 million) and THB 3.4 billion (Singtel’s share: S$30 million) arising from 
the abolishment of excise tax. These claims were dismissed by the lower tribunals and are now pending appeal 
by TOT and CAT before the Supreme Administrative Court and Central Administrative Court respectively.

In 2011 and in 2014, TOT demanded that AIS pays additional revenue share based on gross interconnection 
income from 2007 to 2012 amounting to THB 27.8 billion (Singtel’s share: S$248 million) plus interest. The 
claims are pending arbitration.

In 2015, TOT demanded that AIS pays additional revenue share of THB 62.8 billion (Singtel’s share: S$560 
million)  arising  from  what  TOT  claims  to  be  an  illegality  of  two  amendments  made  to  the  Concession 
Agreement, namely, Amendment 6 (regarding reduction in prepaid revenue share rate) made in 2001 and 
Amendment  7  (regarding  deduction  of  roaming  expense  from  revenue  share)  made  in  2002,  which  have 
resulted in lower revenue share. This case is pending arbitration.

In 2016, TOT revised an earlier demand made in 2014 to THB 41.1 billion (Singtel’s share: S$367 million) plus 
interest for the porting of subscribers from 900MHz to 2100MHz network. This case is pending arbitration. 

As at 31 March 2016, there are a number of other claims filed by third parties against AIS and its subsidiaries 
amounting to THB 23.6 billion (Singtel’s share: S$211 million) which are pending adjudication.

AIS  believes  that  the  above  claims  will  be  settled  in  favour  of  AIS  and  will  have  no  material  impact  to  its 
financial statements.

 
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT 2016

210

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

41. 

SIGNIFICANT CONTINGENT LIABILITIES OF JOINT VENTURES (Cont’d)

(c) 

(d) 

Globe, a joint venture of the Group, is contingently liable for various claims arising in the ordinary conduct of 
business and certain tax assessments which are either pending decision by the Courts or are being contested, 
the  outcome  of  which  are  not  presently  determinable.  In  the  opinion  of  Globe’s  management  and  legal 
counsel, the eventual liability under these claims, if any, will not have a material or adverse effect on Globe’s 
financial position and results of operations.

The Group holds an equity interest of 35% in Telkomsel. As at 31 March 2016, Telkomsel has filed appeals and 
cross-appeals amounting to approximately IDR 511 billion (Singtel’s share: S$18 million) for various tax claims 
arising in certain tax assessments which are pending final decisions, the outcome of which is not presently 
determinable. 

42. 

EFFECTS OF FRS AND INT FRS ISSUED BUT NOT YET ADOPTED

Certain new or revised FRS and INT FRS are mandatory for adoption by the Group for financial year beginning on or 
after 1 April 2016. 

(a) 

(b) 

FRS 115 Revenue from Contracts with Customers
FRS 115 was issued in November 2014, which established a single comprehensive model for entities to use in 
accounting for revenue arising from contracts with customers. FRS 115 will supersede the revenue recognition 
guidance under FRS 18, Revenue and FRS 11, Construction Contracts as well as the related interpretations 
when it becomes effective. This will take effect from financial year beginning on or after 1 April 2018, with 
retrospective application. 

FRS 109 Financial Instruments
FRS 109 was issued in December 2014 to replace FRS 39, Financial Instruments: Recognition and Measurement. 
The  Standard  introduced  new  requirements  for  classification  and  measurement  of  financial  assets  and 
financial liabilities, general hedge accounting and impairment requirements for financial assets. This will take 
effect from financial year beginning on or after 1 April 2018, with retrospective application. 

The  Group  is  currently  assessing  the  impact  of  the  above  FRS  on  the  financial  statements  of  the  Group  and  the 
Company in the period of initial application. 

The other new or revised FRS and INT FRS are not expected to have a significant impact on the financial statements 
of the Group and the Company in the period of initial application.

43. 

COMPANIES IN THE GROUP

The  Company’s  immediate  and  ultimate  holding  company  is  Temasek  Holdings  (Private)  Limited,  a  company 
incorporated in Singapore. The following were the significant subsidiaries as well as associates and joint ventures as 
at 31 March 2016 and 31 March 2015.

 
 
 
 
 
 
 
211

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.1  Significant subsidiaries incorporated in Singapore

1.

2.

Name of subsidiary 

Principal activities

Amobee Group Pte Ltd

Provider of digital marketing services

Computer Systems Holdings  
Pte Ltd 

Investment holding

Percentage of effective equity 
interest held by the Group

2016
%

100

100

2015
%

100

100

3.

DataSpark Pte. Ltd.

Develop and market data analytics and 
insights products and services

100

100

4.

5.

6.

7.

8.

9.

Hawk Digital Holding Co Pte. Ltd.

Investment holding

Hawk Digital Pte. Ltd.

Investment holding

HOOQ Digital Holdings Pte. Ltd.

Investment holding

HOOQ Digital Pte. Ltd.

Provision of regional premium over-the-top 
video services

HOOQ Digital SG1 Pte. Ltd.

Investment holding

HOOQ Digital SG2 Pte. Ltd.

Investment holding

10. HOOQ Holdings Pte. Ltd.

Investment holding

11. NCS Communications  

Engineering Pte. Ltd.

Provision of facilities management and 
consultancy services, and distributor of 
specialised telecommunications and data 
communication products

100

100

100

65

65

65

100

100

100

100

100

65

65

65

100

100

12. NCS Pte. Ltd. 

Provision of information technology and 
consultancy services

100

100

13. NCSI Holdings Pte. Ltd. 

Investment holding

14. NCSI Solutions Pte. Ltd. 

Provision of information technology services

15.

SCS Computer Systems Pte. Ltd.

Provision of information technology and 
consultancy services

16.

Singapore Telecom Mobile  
Pte Ltd 

Investment holding and provision of 
consultancy services

17.

SingNet Pte Ltd

Provision of internet access and pay 
television services

100

100

100

100

100

100

100

100

100

100

ANNUAL REPORT 2016

212

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.1  Significant subsidiaries incorporated in Singapore (Cont’d)

Name of subsidiary 

Principal activities

18.

Singapore Telecom International 
Pte Ltd

Holding of strategic investments and 
provision of technical and management 
consultancy services 

Percentage of effective equity 
interest held by the Group

2016
%

100

2015
%

100

19.

Singtel Asia Pacific Investments  
Pte. Ltd.

Investment holding and provision of 
consultancy services

100

100

20.

Singtel Asian Investments Pte Ltd

Investment holding 

21.

Singtel Enterprise Security Pte. Ltd.

Investment holding

22.

Singtel Digital Life Pte. Ltd. 

Investment holding

23.

Singtel Group Treasury Pte. Ltd. 

Provision of finance and treasury services to 
Singtel and its subsidiaries

24.

Singtel Idea Factory Pte. Ltd. 

Engaged in research and development, 
products and services development and 
business partnership

25.

Singtel Innov8 Pte. Ltd.

Venture capital investment holding

26.

27.

Singtel International Investments 
Private Limited

Investment holding

Singtel Mobile Singapore Pte. Ltd.  Operation and provision of cellular mobile 
telecommunications systems and services, 
resale of fixed line and broadband services

100

100

100

100

100

  –

100

100

100

100

100

100

100

100

100

100

28.

SingtelSat Pte Ltd 

Provision of satellite capacity for 
telecommunications and video broadcasting 
services

100

100

29.

Singtel Singapore Pte. Ltd. 

Investment holding

30.

31.

Singtel Strategic Investments  
Pte Ltd

Investment holding

ST-2 Satellite Ventures 
Private Limited 

Provision of satellite capacity for 
telecommunications and video broadcasting 
services

100

100

100

100

61.9

61.9

32.

Subsea Network Services Pte Ltd

Provision of storage facilities for submarine 
telecommunication cables and related 
equipment

100

100

213

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.1  Significant subsidiaries incorporated in Singapore (Cont’d)

Name of subsidiary 

Principal activities

33.

Sembawang Cable Depot Pte Ltd

Provision of storage facilities for submarine 
telecommunication cables and related 
equipment

Percentage of effective equity 
interest held by the Group

2016
%

60

2015
%

60

34.

Singtel Digital Media Pte Ltd 

Development and management of on-line 
internet portal

100

100

35

Telecom Equipment Pte Ltd 

Engaged in the sale and maintenance of 
telecommunications equipment, and mobile 
finance services

100

100

All companies are audited by Deloitte & Touche LLP.

43.2  Significant subsidiaries incorporated in Australia

1.

2.

3.

4.

5.

6.

7.

8.

Name of subsidiary 

Principal activities

Amobee ANZ Pty Ltd

Provider of digital marketing services

Alphawest Services Pty Ltd (1)

Provision of information technology services

Ensyst Pty Limited

Provision of cloud services

Inform Systems Australia Pty Ltd (1) Provision of information technology services 

NCSI (Australia) Pty Limited

Provision of information technology services

Optus Administration  
Pty Limited (1)

Provision of management services to the 
Optus Group

Percentage of effective equity 
interest held by the Group

2016
%

100

100

100

100

100

100

2015
%

100

100

100

100

100

100

Optus Backbone Investments  
Pty Limited

Investment in telecommunications network 
infrastructure in Australia

100

100

Optus Billing Services  
Pty Limited (*)

Provision of billing services to the  
Optus Group

9.

Optus Broadband Pty Limited (1)

Provision of high speed residential  
internet service

10.  Optus C1 Satellite Pty Limited (1)

C1 Satellite contracting party

11. Optus Data Centres Pty Limited (1) Provision of data communication services

100

100

100

100

100

100

100

100

ANNUAL REPORT 2016

214

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.2  Significant subsidiaries incorporated in Australia (Cont’d)

Name of subsidiary 

Principal activities

12. Optus Finance Pty Limited (1)

Provision of financial services to the  
Optus Group

13. Optus Fixed Infrastructure  

Pty Limited (formerly known as 
XYZed Pty Ltd) (1)

Provision of telecommunications  
services

14. Optus Insurance Services  

Pty Limited 

Provision of handset insurance and  
related services

15. Optus Internet Pty Limited (1)

Provision of internet services to  
retail customers

16. Optus Mobile Pty Limited (1)

Provision of mobile phone services

17. Optus Narrowband Pty Limited (*)

Provision of narrowband portal content 
services

18. Optus Networks Pty Limited (1)

Provision of telecommunications services

19. Optus Rental & Leasing  

Pty Limited (*)

Provision of equipment rental services to 
customers

Percentage of effective equity 
interest held by the Group

2016
%

100

2015
%

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

20. Optus Stockco Pty Limited (*)

Purchases of Optus Group network 
inventory 

100

100

21. Optus Systems Pty Limited (1)

Provision of information technology services 
to the Optus Group

100

100

22. Optus Vision Interactive  

Provision of interactive television services

100

100

Pty Limited (*)

23. Optus Vision Media Pty Limited (*) (2) Provision of broadcasting related services

24. Optus Vision Pty Limited (1)

Provision of telecommunications services

25. Perpetual Systems Pty Ltd (1)

Provision of IT disaster recovery services 

26. Prepaid Services Pty Limited (1)

Distribution of prepaid mobile products

27. Reef Networks Pty Ltd (1)

Operation and maintenance of fibre optic 
network between Brisbane and Cairns

20

100

100

100

100

20

100

100

100

100

28.

Singapore Telecom Australia 
Investments Pty Limited 

Investment holding 

100

100

29.

Simplus Mobile Pty Limited (1)

Provision of mobile phone services 

100

100

215

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.2  Significant subsidiaries incorporated in Australia (Cont’d)

Name of subsidiary 

Principal activities

30.

Singtel Enterprise Security 
(Australia) Pty Limited

Investment holding

31.

Singtel Optus Pty Limited

Investment holding 

32.

Source Integrated Networks  
Pty Limited (1)

Provision of data communications and 
network services

Percentage of effective equity 
interest held by the Group

2016
%

100

100

100

2015
%

–

100

100

33. Uecomm Operations  

Provision of data communication services

100

100

Pty Limited (1)

34. Virgin Mobile (Australia)  

Provision of mobile phone services

100

100

Pty Limited (1) 

35. Vividwireless Group Limited

Provision of wireless broadband services

36. XYZed LMDS Pty Limited (*)

Holder of telecommunications licence

100

100

100

100

All companies are audited by Deloitte Touche Tohmatsu, Australia, except for those companies denoted (*) where 
no statutory audit is required.

Notes:
(1)  These entities are relieved from the Australian Corporations Act 2001 requirements for preparation, audit and lodgement of financial reports 

pursuant to ASIC Class Order 98/1418 (as amended) dated 13 August 1998.
(2)  Optus Vision Media Pty Limited is deemed to be a subsidiary by virtue of control.

43.3  Significant subsidiaries incorporated outside Singapore and Australia

Name of subsidiary

Principal activities

1.

Adconion Media, Inc. 

Provision of digital marketing 
services

2.

Amobee, Inc. (2) 

Provision of digital marketing 
services

Country of 
incorporation/
operation

USA

USA

Percentage of effective equity 
interest held by the Group

2016
%

100

2015
%

100

100

100

3.

GB21 (Hong Kong) Limited  Provision of telecommunications 

Hong Kong

100

100

services and products

4.

HOOQ Digital (India) Inc.

Provision of internet video and 
related activities and services

India

5.

HOOQ Digital (Philippines) 
Inc.

Provision of marketing support

Philippines

65

65

–

–

ANNUAL REPORT 2016

216

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.3  Significant subsidiaries incorporated outside Singapore and Australia (Cont’d)

Name of subsidiary

Principal activities

Country of 
incorporation/
operation

HOOQ Digital (Thailand) 
Company Limited

Provision of marketing support

Thailand

Percentage of effective equity 
interest held by the Group

2016
%

65

2015
%

–

HOOQ Digital Mauritius 
Private Limited

Content operations and 
procurement

Mauritius

    65

  65

Information Network  
Services Sdn Bhd 

Provision of marketing and 
administrative support

Malaysia

100

100

6.

7.

8.

9.

Kontera Technologies, Inc.

Provision of digital marketing 
services

USA

100

100

10.

Lanka Communication 
Services (Pvt) Limited 

Provision of telecommunications 
services

Sri Lanka

82.9

82.9

11. NCS Information Technology 

(Suzhou) Co., Ltd. (3)

Software development and 
provision of information 
technology services

12. NCSI (Chengdu) 
Co., Ltd (3)

13. NCSI (HK) Limited 

14. NCSI (Korea) Co., Limited 

15. NCSI Lanka 

(Private) Limited 

Provision of information 
technology research and 
development, and other 
information technology  
related services

Provision of information 
technology services

Provision of information 
technology consultancy and 
system integration services

Provision of information 
technology and communication 
engineering services

People’s 
Republic of 
China

People’s 
Republic of 
China

100

100

100

100

Hong Kong

100

100

South Korea

100

100

Sri Lanka

100

100

16. NCSI (Malaysia) 
Sdn Bhd 

Provision of information 
technology services

Malaysia

100

100

17. NCSI (ME) W.L.L. 

18. NCSI (Philippines) Inc. 

Provision of information 
technology and communication 
engineering services

Provision of information 
technology and communication 
engineering services

Bahrain

100

100

Philippines 

100

100

217

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.3  Significant subsidiaries incorporated outside Singapore and Australia (Cont’d)

Name of subsidiary

Principal activities

19. NCSI (Shanghai), 

Co. Ltd (3)

Provision of system integration, 
software research and 
development and other 
information technology-related 
services

Country of 
incorporation/
operation

People’s 
Republic of 
China 

20. Pastel Limited

Investment holding

Mauritius

Singtel Enterprise Security 
(US), Inc.

Investment holding

USA

Percentage of effective equity 
interest held by the Group

2016
%

100

100

100

2015
%

100

100

–

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

Singtel Global  
Private Limited

Provision of infotainment products 
and services, and investment 
holding  

Mauritius

100

    100

Singtel Global India  
Private Limited 

Provision of telecommunications 
services and all related activities

India

100

    100

Singtel Mobile Marketing,  
Inc.

Investment holding 

USA

   100

100

Singapore Telecom Hong 
Kong Limited 

Provision of telecommunications 
services and all related activities 

Hong Kong

   100

100

Singapore Telecom India 
Private Limited 

Engaged in general liaison and 
support services

India

   100

100

Singapore Telecom Japan 
Co Ltd 

Provision of telecommunications 
services and all related activities

Japan

100

100

Singapore Telecom Korea 
Limited

Provision of telecommunications 
services and all related activities

South Korea

100

100

Singapore Telecom USA,  
Inc. 

Provision of telecommunications, 
engineering and marketing services

USA

100

100

Singtel Australia  
Investment Ltd  

Investment holding 

British Virgin 
Islands

100

100

31.

Singtel (Europe) Limited 

Provision of telecommunications 
services and all related activities

United 
Kingdom

100

100

32.

SingTel (Philippines), Inc. 

Engaged in general liaison and 
support services

Philippines

100

100

ANNUAL REPORT 2016

218

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.3  Significant subsidiaries incorporated outside Singapore and Australia (Cont’d)

Name of subsidiary

Principal activities

Country of 
incorporation/
operation

33.

Singtel Taiwan Limited 

Provision of telecommunications 
services and all related activities

Taiwan

Percentage of effective equity 
interest held by the Group

2016
%

100

2015
%

100

34.

Singtel Ventures (Cayman) 
Pte Ltd  

Investment holding

Cayman 
Islands

100

100

35.

Sudong Sdn. Bhd. 

Management, provision and 
operations of a call centre for 
telecommunications services

Malaysia

100

100

36. Trustwave Holdings, Inc. 

37. Trustwave Limited

Provision of managed  
security services

Provision of managed  
security services

USA

United 
Kingdom

98

98

–

–

38. Viridian Limited

Investment holding

Mauritius

100

100

All companies are audited by a member firm of Deloitte Touche Tohmatsu Limited except for the company denoted (*) 
which is audited by another firm. 

Notes:
(1)  The place of the business of the subsidiaries are the same as their country of incorporation, unless otherwise specified. 
(2)  The company has operations mainly in the USA, Australia, Israel, Singapore and the United Kingdom.
(3)  Subsidiary’s financial year-end is 31 December.

43.4  Associates of the Group

Name of associate

Principal activities

1.

2359 Media Pte. Ltd. (2)

Development and design of 
mobile-based advertising

Country of 
incorporation/
operation

Singapore

Percentage of effective equity 
interest held by the Group

2016
%

28.6

2015
%

–

2.

3.

4.

ADSB Telecommunications 
B.V. (3)

Dormant 

Netherlands 

–

25.6

APT Satellite Holdings 
Limited (4)

Investment holding 

Bermuda

20.3

20.3

APT Satellite International 
Company Limited (4)

Investment holding 

British Virgin 
Islands

28.6

28.6

5.

HOPE Technik Pte Ltd

Provision of high performance 
unique engineering solutions

Singapore

21.3

–

219

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.4  Associates of the Group (Cont’d)

Name of associate

Principal activities

6.

IGA Limited (2)

7.

Kai Square (2)

Provision of online digital 
advertising platform

Provision of next generation 
cloud-based video surveillance 
services, monitoring and analytics 
based on a unified platform

Percentage of effective equity 
interest held by the Group

Country of 
incorporation/
operation

Cayman 
Islands

2016
%

22.1

Singapore

39.2

2015
%

–

–

–

8. MassiveImpact International

Ltd

Provision of performance based 
mobile advertising platform

British Virgin 
Islands

48.9

9.           NetLink Trust (5) 

To own, install, operate and 
maintain the passive infrastructure 
for Singapore’s Next Generation 
Nationwide Broadband Network    

Singapore

100.0

100.0

10.

Sentilla Corporation (2)

Provision of energy management 
services for data centres

USA

23.4

–

11.

Singapore Post Limited (6)

Operation and provision of postal, 
logistics and retail services

Singapore

22.8

23.0

12. Viewers Choice Pte Ltd 

Provision of services relating to 
motor vehicle rental and retail of 
general merchandise

Singapore

49.2

49.2

Notes:
(1)  The place of business of the associates are the same as their country of incorporation. 
(2)  These companies were reclassified from ‘Available-for-sale Investments’ during the year. 
(3)  The company was liquidated during the year.  
(4)  The company has been equity accounted for in the consolidated financial statements based on results ended, or as at, 31 December 2015, the 

financial year-end of the company. 

(5)  Audited by Deloitte & Touche LLP, Singapore. NetLink Trust is a business trust established as part of IDA’s effective open access requirements 
under Singapore’s Next Generation Nationwide Broadband Network, and is currently 100% owned by Singtel. It is regarded as an associate as 
Singtel does not have effective control in the trust.
(6)  Audited by PricewaterhouseCoopers LLP, Singapore.

ANNUAL REPORT 2016

220

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.5  Joint Ventures of the Group

1.

2.

Name of joint venture

Principal activities

Abacus Travel Systems  
Pte Ltd (3)

Marketing and distributing certain 
travel-related services through 
on-line airline computerised 
reservations systems

Acasia Communications  
Sdn Bhd (4)

Provision of networking services 
to business customers operating 
within and outside Malaysia

Country of 
incorporation/
operation

Singapore

Percentage of effective equity 
interest held by the Group

2016
%

–

2015
%

30.0

Malaysia

14.3

14.3

3.

ACPL Marine Pte Ltd

To own, operate and manage 
maintenance-cum-laying cableships

Singapore

41.7

41.7

4.

Advanced Info Service  
Public Company Limited (5)

5.

ASEAN Cableship Pte Ltd

Provision of mobile, broadband,  
international telecommunications 
services, call centre and data 
transmission

Operation of cableships for 
laying, repair and maintenance of 
submarine telecommunication 
cables

Thailand

23.3

23.3

Singapore

16.7

16.7

6.

7.

8.

ASEAN Telecom Holdings  
Sdn Bhd (4)

Investment holding 

Malaysia

14.3

14.3

Asiacom Philippines, Inc. (4)

Investment holding 

Philippines

Bharti Airtel 
Limited (6)  

Provision of mobile, long distance, 
broadband and telephony 
telecommunications services, 
enterprise solutions, pay television 
and passive infrastructure

India 

40.0

32.9

40.0

32.4

9.

Bharti Telecom 
Limited (6) 

Investment holding 

India

39.8

39.8

10. Bridge Mobile Pte. Ltd. 

Provision of regional mobile 
services

Singapore

33.8

33.8

11. Globe Telecom, Inc. (7) (8)

Provision of mobile, broadband, 
international and fixed line 
telecommunications  services

Philippines

21.5

21.5

12. Grid Communications  

Pte. Ltd. (4)

Provision of public trunk radio 
services

Singapore

50.0

50.0

13.

Indian Ocean Cableship  
Pte. Ltd.

Leasing, operating and managing  
of maintenance-cum-laying 
cableship

Singapore

50.0

50.0

221

SINGAPORE TELECOMMUNICATIONS LIMITED 

Notes to the 
Financial Statements

For the financial year ended 31 March 2016

43.5  Joint Ventures of the Group (Cont’d)

Name of joint venture

Principal activities

14.

International Cableship  
Pte Ltd

Ownership and chartering of 
cableships

Country of 
incorporation/
operation

Singapore

Percentage of effective equity 
interest held by the Group

2016
%

45.0

2015
%

45.0

15. Main Event Television  

Pty Limited

Provision of cable television 
programmes 

Australia

33.3

33.3

16. OPEL Networks Pty Limited  Dormant 

17. Pacific Bangladesh Telecom 

Limited 

Provision of mobile 
telecommunications, broadband 
and data transmission services

18. Pacific Carriage Holdings 

Limited (9)

Operation and provision of 
telecommunications facilities and 
services utilising a network of 
submarine cable systems

Australia 

Bangladesh

50.0

45.0

50.0

45.0

Bermuda

39.99

39.99

19. PT Telekomunikasi Selular (10) Provision of mobile 

Indonesia

35.0

35.0

telecommunications and related 
services

20. Radiance Communications 

Pte Ltd (4)

Sale, distribution, installation 
and maintenance of 
telecommunications equipment 

21.

Southern Cross Cables 
Holdings Limited (9) (11)

Operation and provision of 
telecommunications facilities and 
services utilising a network of 
submarine cable systems

22.

SSBI Pte. Ltd.

Dormant

23. Telescience Singapore  

Pte Ltd

Sale, distribution and installation  
of telecommunications  
equipment   

Singapore

50.0

50.0

Bermuda

39.99

39.99

Singapore

Singapore

50.0

50.0

50.0

50.0

24. VA Dynamics Sdn. 

Bhd. (4)

Distribution of networking cables 
and related products

Malaysia

49.0

49.0

Notes:
(1)  The place of business of the joint ventures are the same as their country of incorporation, unless otherwise specified. 
(2)  The Group holds substantive participating rights over the significant financial and operating decisions of the above joint ventures, which enables 

the Group to exercise joint control with the other shareholders. 

(3)  The company has been disposed during the year.
(4)  The company has been equity accounted for in the consolidated financial statements based on the results ended, or as at, 31 December 2015, the 

financial year-end of the company.

(5)  Audited by KPMG Phoomchai Audit Ltd, Bangkok. The company changed its auditor to Deloitte Touche Tohmatsu Jaiyos Audit Co. Ltd, Bangkok 

from January 2016.

(6)  Audited by S.R.Batliboi & Associates, New Delhi (a member firm of Ernst & Young). The company has operations in India, Bangladesh, Sri Lanka, 

and 17 countries across Africa. 

(7)  Audited by Navarro Amper & Co. (a member firm of Deloitte Touche Tohmatsu Limited).
(8)  The Group has a 47.2% effective economic interest in Globe.
(9)  The Southern Cross Cable Consortium operates through two separate companies. Southern Cross Cables Holdings Limited owns a cable network 

between Australia and the USA, with operations outside the USA. Pacific Carriage Holdings Limited has operations within the USA.

(10)   Audited by Purwantono, Sungkoro & Surja (a member firm of Ernst & Young).
(11)  Audited by KPMG, Bermuda. 

 
ANNUAL REPORT 2016

222

Interested Person 
Transactions

The  aggregate  value  of  all  interested  person  transactions  during  the  financial  year  ended  31  March  2016  (excluding 
transactions less than S$100,000) were as follows –

Name of interested person

Advanced Info Service Public Company Limited
Aetos Security Management Pte Ltd
APL Global Service Center (ChongQing) Co. Ltd
AusNet Electricity Services Pty Ltd 
Bharti Telecom Limited
Fullerton Fund Management Company Ltd
iShopAero Pte Ltd
MediaCorp Pte Ltd
MediaCorp TV Singapore Pte Ltd
NexWave Technologies Pte Ltd
Nucleus Connect Pte Ltd
Radiance Communications Pte Ltd
Singapore Technologies Aerospace Ltd
Singapore Technologies Electronics Limited
SingEx Exhibition Ventures Pte Ltd
SMRT Trains Ltd
SMM Pte Ltd
SP Services Ltd
StarHub Ltd
StarHub Cable Vision Ltd
StarHub Mobile Pte Ltd
ST Electronics (Info-Comm Systems) Pte Ltd
Temasek Holdings Consulting (Shanghai) Co. Ltd.
Trusted Source Pte Ltd

S$ Mil

3.1
 2.8 
 0.1 
 1.0 
 214.2 
 0.3 
 0.9 
 0.3 
 0.2 
 0.4 
 5.3 
 0.6 
 0.5 
 6.7 
 0.1 
 0.1 
 0.3 
 0.3 
 20.3 
 29.5 
 5.9 
 0.8 
 0.5 
 0.2 

 294.4

223

SINGAPORE TELECOMMUNICATIONS LIMITED 

Shareholder
Information

As at 30 May 2016

ORDINARY SHARES

Number of ordinary shareholders

303,732

Voting rights:
On a show of hands – every member present in person and each proxy shall have one vote
On  a  poll  –  every  member  present  in  person  or  by  proxy  shall  have  one  vote  for  every  share  he  holds  or  represents  
(The Company cannot exercise any voting rights in respect of shares held by it as treasury shares)

Singtel shares are listed on Singapore Exchange Securities Trading Limited. Prior to 5 June 2015, Singtel shares were listed on  
ASX Limited (ASX) (in the form of CHESS Depositary Interests). Singtel delisted from the ASX on 5 June 2015. 

SUBSTANTIAL SHAREHOLDERS

No. of shares

Direct
interest

Deemed
interest

Temasek Holdings (Private) Limited

8,132,818,602

18,761,561 (1)

Note:

(1)  Deemed through interests of subsidiaries and associated companies.  

MAJOR SHAREHOLDERS LIST – TOP 20

No.

Name

Temasek Holdings (Private) Limited
1
Citibank Nominees Singapore Pte Ltd
2
DBS Nominees (Private) Limited
3
DBSN Services Pte Ltd
4
Central Provident Fund Board
5
HSBC (Singapore) Nominees Pte Ltd
6
United Overseas Bank Nominees (Private) Limited
7
BNP Paribas Securities Services
8
9
Raffles Nominees (Pte) Ltd
10 DB Nominees (Singapore) Pte Ltd
11
Bank of Singapore Nominees Pte Ltd
12 OCBC Nominees Singapore Private Limited
13 Morgan Stanley Asia (Singapore) Securities Pte Ltd 
14 Merrill Lynch (Singapore) Pte Ltd
15
16 Chua Sock Koong
17 OCBC Securities Private Ltd
18 Macquarie Capital Securities (Singapore) Pte Limited
19
20

Yeo Kok Seng
Lew Yoong Keong Allen

Societe Generale Singapore Branch

No. of
shares held

% of issued
share capital (1)

8,132,818,602 
1,847,055,901 
1,716,685,982 (2)
1,393,743,842 
870,587,133 
651,142,118 
336,189,021 
202,529,466 
122,526,550 
19,820,202 
17,539,443 
16,921,393 
14,527,654 
9,110,313 
8,554,068 
6,001,987 
5,920,794 
5,703,188 
4,872,110 
4,772,876 
15,387,022,643 

51.01
11.58
10.77
8.74
5.46
4.08
2.11
1.27
0.77
0.12
0.11
0.11
0.09
0.06 
0.05
0.04
0.04
0.04
0.03
0.03
96.51

Notes:
(1)  The percentage of issued ordinary shares is calculated based on the number of issued ordinary shares of the Company as at 30 May 2016, excluding 

593,494 ordinary shares held as treasury shares as at that date.

(2)  Excludes 593,494 ordinary shares held by DBS Nominees (Private) Limited as treasury shares for the account of the Company.

 
 
ANNUAL REPORT 2016

224

Shareholder 
Information

As at 30 May 2016

ANALYSIS OF SHAREHOLDERS 

Range of holdings

1 - 99
100 - 1,000
1,001 - 10,000
10,001 - 1,000,000
1,000,001 and above

No. of
holders

2,666
244,980
48,599
7,441
46
303,732 

% of 
holders

0.88
80.66
16.00
2.45
0.01
100.00 

No. of
shares

% of issued 
share capital

104,424
59,114,979
158,634,794
282,075,845
15,443,646,907
15,943,576,949 

0.00
0.37
0.99
1.77
96.87
100.00

Note:
Based on information available to the Company as at 30 May 2016, approximately 49% of the issued ordinary shares of the Company is held by the public and, 
therefore, Rule 723 of the Listing Manual issued by the Singapore Exchange Securities Trading Limited is complied with. The percentage of issued ordinary 
shares held by the public is calculated based on the number of issued ordinary shares of the Company as at 30 May 2016, excluding 593,494 ordinary shares 
held as treasury shares as at that date. The percentage of such treasury shares against the total number of issued ordinary shares (excluding ordinary shares 
held as treasury shares) is 0.004%.

SHARE PURCHASE MANDATE
At the 23rd Annual General Meeting of the Company held on 21 July 2015 (2015 AGM), the shareholders approved the 
renewal of a mandate to enable the Company to purchase or otherwise acquire not more than 5% of the issued ordinary 
share capital of the Company as at the date of the 2015 AGM. As at 30 May 2016, there is no current on market buy-back 
of shares pursuant to the mandate.

225

SINGAPORE TELECOMMUNICATIONS LIMITED 

Corporate
Information (1)

BOARD OF DIRECTORS

TECHNOLOGY ADVISORY PANEL

Koh Boon Hwee (Chairman)
Venky Ganesan
Doug Haynes
Lim Chuan Poh
Jonathan Miller
Erez Ofer

ASSISTANT COMPANY SECRETARY

Lim Li Ching

REGISTERED OFFICES

In Singapore:
31 Exeter Road
Comcentre
Singapore 239732
Republic of Singapore
Tel: +65 6838 3388
Fax: +65 6732 8428
Website: www.singtel.com

In Australia:
Level 4, Building C
1 Lyonpark Road, Macquarie Park
NSW 2113 Australia
Tel: +61 2 8082 7800
Fax: +61 2 8082 7100
Website: www.optus.com.au

SHARE REGISTRAR

 M & C Services Private Limited
112 Robinson Road
#05-01
Singapore 068902
Republic of Singapore
Tel: +65 6228 0544
Fax: +65 6225 1452
Email: annualreports@mncsingapore.com
Website: www.mncsingapore.com

Simon Israel (Chairman)
Bobby Chin
Chua Sock Koong (Group CEO)
Venky Ganesan
Low Check Kian
Peter Mason AM (2)
Christina Ong
Peter Ong
Teo Swee Lian

AUDIT COMMITTEE

Bobby Chin (Chairman)
Christina Ong
Peter Ong
Teo Swee Lian

CORPORATE GOVERNANCE AND 
NOMINATIONS COMMITTEE

Low Check Kian (Chairman)
Simon Israel
Christina Ong

EXECUTIVE RESOURCE AND 
COMPENSATION COMMITTEE

Peter Mason AM (2) (Chairman)
Simon Israel
Teo Swee Lian

FINANCE AND INVESTMENT 
COMMITTEE

Simon Israel (Chairman)
Venky Ganesan
Low Check Kian

RISK COMMITTEE

Bobby Chin (Chairman)
Peter Ong
Teo Swee Lian

OPTUS ADVISORY COMMITTEE

Peter Mason AM (2) (Chairman)
Chua Sock Koong
David Gonski AC (3)
Simon Israel
John Morschel
Paul O’Sullivan

SINGTEL AMERICAN  
DEPOSITARY RECEIPTS

Citibank Shareholder Services
PO Box 43077
Providence, Rhode Island 02940-3077
USA
Tel: 1 877 248 4237
(Toll free within USA)
Tel: +1 781 575 4555 (Outside USA)
Email: citibank@shareholders-online.com
Website: www.citi.com/dr

AUDITOR 

Deloitte & Touche LLP
(appointed on 28 July 2006)
6 Shenton Way
OUE Downtown 2
#33-00
Singapore 068809
Republic of Singapore
Tel: +65 6224 8288
Fax: +65 6538 6166

Audit Partner: Chaly Mah Chee Kheong

INVESTOR RELATIONS 

31 Exeter Road
#19-00 Comcentre
Singapore 239732
Republic of Singapore
Tel: +65 6838 2123
Email: investor@singtel.com

Notes:

(1) As at 25 May 2016.

(2) Member of the Order of Australia.

(3) Companion of the Order of Australia.

ANNUAL REPORT 2016

Contact
Points

SINGAPORE 

Singtel Headquarters 
31 Exeter Road, Comcentre
Singapore 239732
Republic of Singapore 
Tel: +65 6838 3388 
Fax: +65 6732 8428 
Website: www.singtel.com 

NCS Pte. Ltd 
5 Ang Mo Kio Street 62 
NCS Hub, Singapore 569141 
Republic of Singapore
Tel: +65 6556 8000 
Fax: +65 6556 7000 
Email: reachus@ncs.com.sg 

AUSTRALIA      

Singtel Optus Pty Limited 
Sydney (Head Office)  
Optus Centre Sydney 
1 Lyonpark Road, Macquarie Park 
NSW 2113, Australia 
Tel: +61 2 8082 7800 
Fax: +61 2 8082 7100
Website: www.optus.com.au      

Adelaide 
Level 6, 108 North Terrace
Adelaide, SA 5000, Australia 
Tel: +61 87328 5114 
Fax: +61 1800 500 261

Brisbane 
Level 21, 12 Creek Street
Brisbane, QLD 4000, Australia
Tel: +61 7 3317 3700 
Fax: +61 7 3317 3320   

Canberra 
Level 3, 10 Moore Street
Canberra, ACT 2601, Australia
Tel: +61 2 6222 3800 
Fax: +61 2 6222 3838   

Darwin 
Optus Centre Darwin
49 Woods Street Darwin 
NT 0800, Australia 
Tel: +61 8 8901 4500 
Fax: +61 8 8901 4505  

226

Melbourne 
367 Collins Street 
Melbourne, VIC 3000, Australia
Tel: +61 3 9233 4000
Fax: +61 3 9233 4900 

Perth 
Level 3, 1260 Hay Street 
West Perth, WA 6005, Australia 
Tel: +61 8 9288 3000 
Fax: +61 8 9288 3030 

BANGLADESH  

Dhaka 
Singapore Telecommunications 
Limited (Bangladesh Liaison Office) 
Bay’s 50, 15th Floor, South Block 
50 Mohakhali 
Dhaka 1212, Bangladesh
Tel: +880 2 883 5120
Fax: +880 2 988 0037 
Email: SGOBLDSH@singtel.com

CHINA  

Beijing 
Unit 1503, Beijing Silver Tower 2 
Dongsanhuanbei Road
Chaoyang District, Beijing 100027 
People’s Republic of China 
Tel: +86 10 6410 6193 / 4 / 5 
Fax: +86 10 6410 6196 
Email: singtel-beij@singtel.com 

Guangzhou 
Room 3615,36F, BLK B, China Shine 
No.9, Lin He Xi Road
Tian He District, Guangzhou 510610 
People’s Republic of China
Tel: +86 20 3886 3887 
Fax: +86 20 3882 5545

Shanghai 
Unit 707, 7F, KIC Plaza No 333 
Song Hu Road, Shanghai 200433 
People’s Republic of China 
Tel: +86 21 3362 0388 
Fax:+86 21 3362 0389 
Email: singtel-sha@singtel.com  

EUROPE 

Frankfurt  
Platz der Einheit 1 
60327 Frankfurt am Main, Germany 
Tel: +49 69 975 03 445 
Fax: +49 69 975 03 200 
Email: singtel-germany@singtel.com 

London 
Birchin Court 
20 Birchin Lane 
London EC3V 9DU
United Kingdom 
Tel: +44 20 7122 8000 
Fax: +44 20 7122 8088 
Email: singtel-uk@singtel.com 

HONG KONG  

Quarry Bay
21/F., 1063 King’s Road
Quarry Bay, Hong Kong
Tel: +852 2877 1500 
Fax: +852 2802 1500 
Email: singtel-hk@singtel.com 

INDIA  

Bangalore 
Suite no.304 DBS Business Centre
26 Cunningham Road
Bangalore 560052, India
Tel: +91 80 2226 7272
Fax: +91 80 2225 0509
Email: singtel-ind@singtel.com

Chennai 
20/30, Paras Plaza 
3rd Floor, Cathedral Garden Road 
Nungambakkam 
Chennai 600034, India
Tel: +91 44 4264 9410 
Fax: +91 44 4264 9414 
Email: singtel-ind@singtel.com 

Hyderabad 
Reliance Business Centre
303 Swapna Lok Complex 
92 Sarojini Devi Road 
Secunderabad 500003, India 
Tel: +91 40 2781 2699 
Fax: +91 40 2781 2724 
Email: singtel-ind@singtel.com

227

SINGAPORE TELECOMMUNICATIONS LIMITED 

Contact
Points

Mumbai 
301-303, 3rd Floor, Midas 
Sahar Plaza Complex, Mathuradas 
Vasanji Road, Andheri East
Mumbai 400059, India
Tel: +91 22 2824 4999 / 

+91 22 4075 7777 
Fax: +91 22 2824 4996 
Email: singtel-ind@singtel.com 

New Delhi 
5th Floor, A Wing, Statesman House 
148 Barakhamba Road 
New Delhi 110001, India 
Tel: +91 11 4152 1199 / 

+91 11 4362 1199 
Fax: +91 11 4152 1683 
Email: singtel-ind@singtel.com 

INDONESIA 

Jakarta 
Noble House, 9th Floor Unit.5
Jl. Dr. Ide Anak Agung Gde Agung 
Kav. E 4.2 No. 2
Jakarta 12950, Indonesia 
Tel: +62 21 2978 3058
Email: singtel-ina@singtel.com 

JAPAN 

Tokyo  
Arco Tower 9F
1-8-1 Shimomeguro
Meguro-ku 
Tokyo 153-0064, Japan
Tel: +81 3 5437 7033
Fax: +81 3 5437 7066 
Email: singtel-jpn@singtel.com 

Osaka  
3F Shin-Osaka Hankyu Building
1-1-1 Miyahara
Yodogawa-ku
Osaka 530-0003, Japan
Tel: +81 6 7668 8417 
Email: singtel-jpn@singtel.com 

KOREA 

THAILAND 

Seoul
06236, 11 Flr, Capital Tower
736-1, Yeoksam-dong, Kangnam-Gu 
Seoul, Korea
Tel: +82 2 3287 7575
Fax: +82 2 3287 7589
Email:  singtel-kor@singtel.com

Bangkok 
9th Floor, Unit 6
500 Amarin Tower 
Ploenchit Road, Lumpini Pathumwan 
Bangkok 10330, Thailand
Tel: +66 2 256 9875 / 6
Fax: +66 2 256 9808
Email: Sophida@singtel.com

MALAYSIA   

Kuala Lumpur 
602B, Level 6, Tower B, Uptown 5
5, Jalan SS21/39, Damansara Uptown 
47400 Petaling Jaya 
Selangor Darul Ehsan, Malaysia
Tel: +603 7728 2813
Fax: +603 7727 6186
Email: sgomals@singtel.com 

MIDDLE EAST  

Dubai
Dubai Internet City Building #1
#1 Floor, #110
P O Box 502430
Dubai, United Arab Emirates
Tel: +971 4363 6705
Fax: +971 4361 1063
Email: g-singtel-me@singtel.com

PHILIPPINES 

Manila 
Unit 1504 Liberty Center 
104 H V de la Costa Street  
Salcedo Village, Makati City 1227 
Philippines
Tel: +63 2 887 2791
Fax: + 63 2 887 2763 
Email: singtel-phil@singtel.com 

TAIWAN 

Taipei 
2F, No 290, Section 4
Chung Hsiao East Road, Taipei 
Taiwan, Republic of China 
Tel: +886 2 2741 1688
Fax: +886 2 2778 6083 
Email: singtel-twn@singtel.com 

USA  

San Francisco (Head Office)
100 Marine Parkway Suite 450 
Redwood City, CA 94065, USA 
Tel: +1 650 508 6800 
Fax: +1 650 508 1578 
Email: singtel-usa@singtel.com

Chicago 
8770 West Bryn Mawr Avenue 
Suite 1314 
Chicago, IL 60631, USA
Tel: +1 773 867 8122
Fax: +1 773 867 8121 
Email:  singtel-usa@singtel.com 

New York 
140 Broadway 
Suite 2110 
New York, NY 10015, USA
Tel: +1 212 269 7920
Fax: +1 212 269 7939
Email: singtel-usa@singtel.com 

VIETNAM 

Hanoi 
Suite 704, CMC Tower 
7th Floor
Duy Tan Street
Dich Vong Hau Ward
Cau Giay District 
Hanoi City, Vietnam
Tel: +84 4 3943 2161
Fax: +84 4 3943 2163
Email: singtel-vn@singtel.com

 
 
Singapore  
Telecommunications
Limited 

31 Exeter Road 
Comcentre
Singapore 239732
Republic of Singapore

  +65 6838 3388

  +65 6732 8428

  www.singtel.com

Copyright © 2016
Singapore Telecommunications Limited
(CRN:199201624D)
All rights reserved

Printed on environmentally friendly paper