Annual Report 2019
Reimagining
Your Future
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Singapore Telecommunications Limited
(CRN:199201624D)
31 Exeter Road, Comcentre
Singapore 239732
T +65 6838 3388
www.singtel.com
Copyright © 2019
Printed on environmentally friendly paper
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9
Reimagining
Your Future
Much has changed over Singtel’s 140-year history. Technology and innovation has made
the mobile phone central to our daily lives. Fitting into the palm of our hands, they serve as
gateways to an exciting world of entertainment, information and services. We now stand
on the cusp of 5G - an era of hyper-connectivity and newer technologies that will further
revolutionise the way we work and play.
As a leading communications technology provider, we’re proud to be enablers of such
change. Innovation has always been at the core of our business. Our purpose is to keep on
pushing boundaries and making breakthroughs, both in our networks and services, so how
we live our lives, conduct our businesses, entertain ourselves, keep improving. We are here
for the long haul at Singtel, and we’re reimagining your future to bring a better one to you.
Table of Contents
Overview
An overview of our businesses, our performance,
key achievements and value created, as well as our
strategy moving forward
Financial Highlights
FY 2019 Achievements
Chairman’s Message
GCEO Review
1
3
5
7
9 Who We Are
11 Our Businesses and Strategy
13
15 Board of Directors
21 Organisation Structure
22 Management Committee
28 Senior Management
The Value We Create
Business Reviews
Insights into each of our business units
29 Group Consumer
41 Group Enterprise
47 Group Digital Life
53 Key Awards and Accolades
Governance and Sustainability
Our corporate governance, risk management and
sustainability efforts
55 Governance and Sustainability Philosophy
57 Corporate Governance
87
Investor Relations
89 Risk Management Philosophy and Approach
100 Sustainability
29
Group Consumer
41
Group Enterprise
47
Group Digital Life
55
Governance and
Sustainability
Performance
Our financial performance
107 Group Five-year Financial Summary
110 Group Value Added Statements
111 Management Discussion and Analysis
Financials
Audited financial statements
Independent Auditors’ Report
121 Directors’ Statement
131
137 Consolidated Income Statement
138 Consolidated Statement of Comprehensive Income
139 Statements of Financial Position
140 Statements of Changes in Equity
144 Consolidated Statement of Cash Flows
147 Notes to the Financial Statements
Additional Information
Our shareholders, transactions with interested persons
and other corporate information
250 Interested Person Transactions
251 Additional Information on Directors Seeking
Re-election
261 Shareholder Information
263 Corporate Information
264 Contact Points
Scan here to view the
Singtel Annual Report 2019 online.
Financial Highlights (1)
Operating Revenue
S$17,372m
S$17,268m in FY 2018
Net Profit
S$3,095m
S$5,473m in FY 2018 (2)
Free Cash Flow
S$3,650m
S$3,606m in FY 2018
Return on Equity
10.4%
18.9% in FY 2018 (2)
CONSTANT CURRENCY
Net Profit
S$3,186m
S$5,473m in FY 2018 (2)
Notes:
(1) Based on Singapore Financial Reporting Standards (International).
(2)
Includes the gain on disposal of economic interest in NetLink Trust.
(3) Return on invested capital is defined as EBIT (post-tax) divided by average capital.
(4) Excludes the gain on disposal of economic interest in NetLink Trust.
1
EBITDA
S$4,692m
S$5,051m in FY 2018
Underlying Net Profit
S$2,825m
S$3,593m in FY 2018
Shareholder Payout
S$2,857m
S$3,346m in FY 2018
Return on Invested Capital (3)
7.7%
9.6% in FY 2018 (4)
Underlying Net Profit
S$2,908m
S$3,593m in FY 2018
Underlying Net Profit
Contribution by Geography
Operating Revenue
Contribution by Product and Service
8%
7%
S$2,825m
17%
18%
46%
Regional Associates
19%
S$17,372m
31%
25%
Australia
Shareholder Payout
Dividend Per Share (S¢)
2019
2018
17.5
17.5
3.0
Digital Businesses
ICT
Mobile Service
Data and Internet
Sale of Equipment
Others (6)
2017
17.5
29% Singtel has a track record of generous shareholder payouts.
Singapore (5)
Ordinary Dividend
Special Dividend
For the financial year ended 31 March 2019, the Board has recommended
a final ordinary dividend of 10.7 Singapore cents a share. Together with
the interim dividend of 6.8 Singapore cents, the total ordinary dividend for
the year is 17.5 Singapore cents, unchanged from last year.
Refer to page 119 for the Group’s capital management and dividend policy.
Notes:
(5)
(6)
Includes losses from Trustwave and Group Digital Life.
Includes Fixed voice and Pay television.
Singapore Telecommunications Limited | Annual Report 2019
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FY 2019 Achievements
We are focused on connecting and empowering everyone, consumers and businesses
alike, in new and meaningful ways. This means growing our digital capabilities and
investing in innovation and emerging technologies such as 5G and IoT to bring the
smart, connected future closer.
Advanced 5G in Australia
and Singapore
• Optus introduced Australia’s first 5G commercial
fixed wireless service.
• Singtel launched Singapore’s first 5G pilot
network.
Enhanced cyber security
capabilities
• Consolidated cyber assets globally under the
Trustwave brand to form one of the industry’s
most comprehensive cyber security companies.
• Established the first Global Telco Security
Alliance with AT&T, Etisalat, SoftBank and
Telefónica to create one of the world’s biggest
managed security services platforms.
3
Strengthened IoT and
cloud capabilities
• Struck partnerships with Microsoft and China
Mobile to enable enterprises to deploy their IoT
devices across networks seamlessly.
• AIS expanded cloud business and data centres
with the acquisition of CS Loxinfo to provide end-
to-end digital solutions to enterprises in Thailand.
Created regional ecosystem
of digital services
• Launched VIA, Asia’s first cross-border mobile
payment alliance, to create a seamless region-
wide payment network.
• Entered esports with the launch of PVP Esports
Championship, a multi-title and regional league.
Launched platform to accelerate
enterprises’ digital transformation
• Launched the FutureNow Innovation Centre
which combines our experience and expertise
with emerging technologies to help enterprises
digitalise.
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Extended digital marketing
capabilities into TV space
• Amobee acquired Videology, a technology
provider for advanced TV and video advertising,
to unify digital, social and TV advertising on a
single platform.
• Amobee signed an exclusive agreement with
ITV, the UK’s largest commercial broadcaster, to
power ITV’s premium video advertising and make
their inventory exclusively available through the
Amobee technology platform.
Continued to invest in India’s
growth potential
• Deepened relationship with Airtel, which
continues to ride the growth in data in India,
through our participation in its rights issue.
Singapore Telecommunications Limited | Annual Report 2019
4
Chairman’s Message
Dear Shareholders,
FY 2019 was more than just
a challenging year. I would
characterise it as somewhat of a
‘perfect storm’ with intensifying
competition across all markets,
particularly India and Indonesia, plus
the added backdrop of heightened
economic uncertainty. These factors,
coupled with regional currencies
moving significantly against us
and reduced contributions from
our smaller stake in NetLink Trust,
contributed to a 21% decline in our
underlying net profit to S$2.83 billion.
Your Board has proposed the
payment of a final dividend of 10.7
cents per share. If approved, this will
bring the total full year dividend to
17.5 cents per share.
RISING TO CHALLENGES
Last year, I signalled that competition
was escalating across the region,
with operators aggressively
competing for market share.
In India, we have seen an
unprecedented situation, where a
new entrant investing more than
US$40 billion, has waged a price war,
driving the industry into losses.
While this has been painful in the
short term, we have arrived at a
three-player market, creating a
better long-term market structure for
when the market normalises.
Airtel has weathered this storm and
defended its market share. Airtel
undertook a rights issue in May which
Singtel has supported to protect our
investment and ensure Bharti can
fund its growth.
It is your Board’s belief that India
will remain a major driver of
industry growth, supported by the
government’s Digital India initiative.
In Indonesia, Telkomsel weathered
intense price competition, particularly
during the government-mandated
registration exercise for prepaid
SIM cards. With the recovery of the
market, we expect Telkomsel to return
to growth.
STRONG CORE PERFORMANCES
Despite challenges, we had strong
performances in Singapore and
Australia. Our consumer businesses
gained mobile market share in both
countries as our investments in
networks, content and digitalisation
paid off.
Both markets also laid the groundwork
for 5G. Optus introduced Australia’s
first 5G commercial service while
Singtel launched Singapore’s first 5G
pilot network. New technologies like
5G will converge with IoT and AI to
usher in an era of hyper-connectivity
that will redefine whole industries
and consumer lifestyles. Our 5G
investments are part of longer-term
plans to position us for future growth.
GROWING NEW GLOBAL
BUSINESSES
Part of our digital transformation
involved making calculated
investments in new businesses that
would thrive in the future economy.
Building out our digital businesses: in
cyber security, we consolidated the
Group’s operations and resources
into a single global entity under the
Trustwave brand to form one of the
industry’s most comprehensive global
cyber security companies. Our digital
marketing business Amobee has
achieved scale, while the acquisition
of Videology, a software provider for
the high-growth advanced TV and
video advertising segments, positions
us strongly for a converged media
landscape.
Your Board is aware that the value
of these investments is not being
recognised in our share price and
management intends to unlock this
value at the appropriate time. We
are also leveraging our regional
scale and partnerships to drive a
digital ecosystem across our mobile
customer base of more than 690
million.
DEEPENING SUSTAINABILITY
EFFORTS
As the sustainability conversation
evolves, so has Singtel’s efforts in this
space. To reduce our carbon footprint
even further to align with the global
climate agenda, we are exploring
long-term renewable energy supply
options to help us fulfil our aspiration
to be carbon neutral. Our efforts
have not gone unnoticed and we
continue to be recognised globally
in areas such as climate change,
governance and diversity. We were
one of four Singapore firms and the
only Southeast Asian communications
company to be listed in the 2019
Bloomberg Gender-Equality Index.
5
GOVERNANCE
On that note, I am happy to welcome
Gail Kelly, Bradley Horowitz and
Dominic Barton to the Singtel Board.
Their respective backgrounds in
fi nance, technology and consulting
add to our diversity and bring a fresh
infusion of expertise. I would also
like to express my heartfelt thanks to
Peter Mason and Bobby Chin – both
of whom are retiring from the Board.
Their insights and contributions over
the years have been invaluable.
Good governance is fundamental for
long-term business sustainability and
value creation for our stakeholders.
Our eff orts on this front continue to
be recognised as we were named
ASEAN’s Top 5 and Singapore’s Top 3
Publicly Listed Companies at the 2nd
ASEAN Corporate Governance Awards.
We are committed to maintaining the
highest standards of governance and
will continue to improve our policies
and processes.
Yours sincerely,
SIMON ISRAEL
Chairman
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New technologies like 5G will converge
with IoT and AI to usher in an era of
hyper-connectivity that will redefi ne
whole industries and consumer
lifestyles. Our 5G investments are part
of longer-term plans to position us for
future growth.
Singapore Telecommunications Limited | Annual Report 2019
6
GCEO Review
Dear Shareholders,
give us one of the strongest credit
ratings among telecom companies.
TURNING THE CORNER ON A
CHALLENGING YEAR
We have executed well and gained
mobile share in our core markets
in Singapore and Australia against
intense competition. However, the past
year was far from business as usual.
Our results were affected by carriage
pricing erosion in the enterprise
segment and challenging conditions
in India and Indonesia. Competition
intensified across virtually all our
markets as operators jostled for
market share while advances in
technology continued to disrupt the
telco industry, putting more pressure
on prices and return on investment.
With currency headwinds and the
exceptional gain recorded last year
from our NetLink Trust divestment, net
profit dropped 44% to S$3.1 billion. Our
underlying net profit declined 21%.
Against this backdrop of tougher
industry and business conditions,
we stayed the course on digital
transformation which puts us in good
stead. Our efforts to stay relevant
to customers through digitalisation
paid off as our core consumer
business raised the bar in products
and services and customer service
standards. The race by governments
and enterprises to digitalise their
processes and operations also
presented new opportunities for
our enterprise business, particularly
Trustwave and NCS. Having invested
in deepening our capabilities in cyber
security, cloud, data analytics and IoT,
ICT services now constitute 48% of our
enterprise revenue. Amid a difficult
year, we were financially disciplined
and prudent in managing our costs
and investments. Our strong free cash
flow generation and balance sheet
7
REGIONAL MARKET GROWTH
We have a unique regional presence
that is of scale. Our positive long-
term view of our regional assets and
diversification hasn’t changed. While
it was a particularly bruising year for
India which faced such aggressive
competition that only three operators
now stand, Airtel has weathered
the storm and strengthened its
balance sheet with a rights issue to
further compete in a consolidated
market that remains buoyed by the
growth potential of Digital India.
Indonesia had a nationwide SIM card
registration exercise which affected
the industry but the market is now
recovering. Globe had a stellar year
with robust revenue share growth
in mobile and broadband, and AIS
continued to lead the market in
Thailand. We expect our associates
to deliver positive growth fueled by
exponential growth in smartphone
adoption and a plethora of
applications and content.
DIFFERENTIATING A RESILIENT
CORE
The competitive landscapes in our
core markets of Singapore and
Australia have changed with more
players, including MVNOs, in the
industry coupled with increasing
capital intensity with 5G rollout
expectations. Our businesses will
accelerate digitalisation, automation
and robotic processes combining
AI tools and data analytics to drive
productivity, cost savings and
better customer experiences. We
have differentiated with product
innovations, quality content and
partnerships that were well-received
by customers. We remain committed
to providing superior network
coverage and connectivity and
leading the way to 5G. While 5G
spectrum policy is still being finalised
in Singapore, we are piloting the
island’s first 5G network. In Australia,
Optus with its extensive 5G spectrum
portfolio became the first carrier to
provide high-speed home broadband
services on 5G.
DRIVING NEW GROWTH IN DIGITAL
As governments race to build smart
cities and enterprises future-proof
their operations, we will leverage
this rising tide of digitalisation to
drive growth in our ICT and digital
businesses. Both our cyber security
business Trustwave and digital
marketing arm Amobee, while not
yet profitable, have executed their
strategies. We are confident they
will continue their revenue growth
momentum to become leading
players.
We are also pursuing new growth
by developing a regional digital
ecosystem that unlocks the value
of the Group’s 690 million strong
customer base. Given that Singtel,
Optus and all our associates remain
leaders in their respective markets,
we’re jointly tapping into these
markets in the mobile payments,
financial services, esports and
gaming spaces. The size of our
combined markets, our irrefutable
network leadership and product
innovation, and our valuable customer
relationships – position us to drive
synergies and reap benefits from such
an ecosystem.
SUSTAINABILITY AND FUTURE-
READINESS
We remain committed to creating
sustainable business growth
while driving positive change in
our communities. As our digital
transformation accelerates, we
are investing in building a future-
ready team. Our reskilling eff orts
include working with researchers
and partners within the ecosystem
in the areas of cyber security and
5G to develop capabilities for
the new economy. Our diversity
and inclusiveness are vital to our
transformation process. As women
comprise half of the Group’s
customers, women now constitute a
third of our workforce, management
and Board which helps us better
understand and answer to the needs
of our stakeholders. We stay dedicated
to the vulnerable segments in our
society with our fl agship philanthropy
programme, the Singtel Touching
Lives’ Fund, supporting the education
of children and youth with special
needs in Singapore. We are giving
back to the larger society, having
contributed to Perth’s landmark Optus
Stadium last year and most recently,
Esplanade’s new waterfront theatre in
Singapore.
I would like to thank the Board for
their guidance, and our partners
and shareholders for their continued
support for our transformation eff orts.
My appreciation also goes to the
Singtel team and our union leadership
whose unstinting commitment to
change has helped sustain our
successful record thus far.
Yours sincerely,
CHUA SOCK KOONG
Group Chief Executive Offi cer
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We expect our associates to deliver
positive growth fueled by exponential
growth in smartphone adoption
and a plethora of applications and
content.
Singapore Telecommunications Limited | Annual Report 2019
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More than
70%
of earnings from
operations outside of
Singapore
Who We Are
Asia’s leading
communications
technology
group
In the course of our 140-year history,
we have played a key role in Singapore’s
development as a telecommunications
hub for the region. Together with our
regional associates AIS, Airtel, Globe and
Telkomsel, we’ve grown to become Asia’s
leading communications technology
group, providing an extensive range of
telecommunications and digital services
to consumers and businesses across Asia,
Australia, Africa and the US. Through
constant innovation in next-generation
technologies and a deep understanding
of our markets, we are bringing the future
of connectivity closer to our customers.
Over
mobile customers in
690m
21
countries
9
60
Enterprise
global offi ces in
23
countries
Notes:
(1) Based on direct equity interest only.
(2) Singtel has 21.5% interest in Globe’s voting shares.
All fi gures as at 31 March 2019 unless otherwise stated.
India | South Asia | Africa
Thailand
Philippines
39.5% eff ective interest
Mobile customers:
283m (India)
2.6m (South Asia)
99m (Africa)
23.3% of ordinary shares (1)
41m mobile customers
47.1% of ordinary shares (2)
83m mobile customers
21.0% of ordinary shares
An investor in telcos, media
and technology
Indonesia
35.0% eff ective interest
169m mobile customers
Singapore
4.2m mobile customers
0.6m broadband customers
Australia
10.3m mobile customers
1.2m broadband customers
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Our Businesses and Strategy
From telco to global communications
technology company
Vision
Mission
To be Asia Pacific’s best communications
technology company.
To create sustainable long-term growth, deliver superior
shareholder returns and generate positive impact for
stakeholders.
Strategic Priorities
Differentiators
Businesses
Accelerating Digital
Transformation
Customer
Relationships
Digitalising
Core Businesses
Connectivity
Growing New Digital
Services
Network
Leadership
Building a Regional
Digital Ecosystem
Data Insights
Championing
Sustainability
Digital
Innovation
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The digital revolution has brought a slew of new opportunities for Singtel as
consumers and enterprises embrace the connected world. We are accelerating
our digital transformation in preparation for a more intelligent future with the
convergence of technologies such as AI, IoT and 5G that will radically change how we
live and do business. We have developed new digital growth drivers such as cyber
security and digital marketing that leverage our existing assets and strengths in
connectivity and smart data. We are also leveraging our regional scale and reach to
drive a digital ecosystem, that includes mobile fi nancial services and new forms of
content, to unlock the value of our more than 690 million mobile customer base.
Group Consumer
Off ers a range of digital services from music, OTT video, to mobile payments in addition
to voice, messaging, broadband and pay-TV.
Read more about Group Consumer from page 29 - 40.
Group Enterprise
Delivers core enterprise ICT services as well as cloud, IoT, cyber security and
smart city solutions.
Read more about Group Enterprise from page 41 - 46.
Group Digital Life
Focuses on digital marketing, data analytics and OTT video.
Read more about Group Digital Life from page 47 - 52.
Stakeholders
Customers
Investors
Communities
Regulators and
Governments
Employees
Singapore Telecommunications Limited | Annual Report 2019
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The Value We Create
Beyond connecting people and enabling businesses, we believe in creating value for
our customers, our investors, our people, and the communities in which we operate.
For Our Customers
Providing secure
high-speed data
connectivity with
428
points of presence in
362
cities globally.
Our regional associates
now have more than
319m
mobile data users, a
15%
increase from a year ago.
For Our Investors
We paid
S$2,857m
in dividends and
S$393m
in interest.
Accolades
#1 in Singapore Governance and Transparency
Index 2018
ASEAN’s Top 5 Publicly Listed Companies at ASEAN
Corporate Governance Awards 2018
Singapore’s Top 3 Publicly Listed Companies at
ASEAN Corporate Governance Awards 2018
5-year Total Shareholder Return
Singtel
1.0%
Straits Times Index
3.6%
Source: Bloomberg, 2014-2019
13
For Our People
We supported
more than
200
students through
our internship
and scholarship
programmes this year.
In FY 2019,
we invested over
S$26m
to train staff in Singapore
and Australia, clocking an
average of about
29
hours per person.
For Our Communities
Our digital citizenship programmes
taught digital literacy to over
380,000
students in Singapore and Australia
since FY 2016.
We supported more than
8,000
SMEs in their digitalisation
journey since the launch of the
99%SME campaign.
This year we
achieved a
64%
carbon emissions intensity
reduction from baseline year of
FY 2015.
We contributed
S$20.3m
to the community and spent
26,709
hours in staff volunteering
in FY 2019.
Singapore Telecommunications Limited | Annual Report 2019
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Simon Israel
• 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 July 2003 and Chairman on
29 July 2011
• Last re-elected: 29 July 2016
• Number of directorships in listed companies (including Singtel): 3
Mr Simon Israel, 66, is the Chairman of Singapore
Post Limited and a Director of Fonterra Co-
operative Group Limited and Stewardship Asia
Centre CLG Limited. 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 Director of CapitaLand Limited and
Stewardship Asia Centre Pte. Ltd.
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.
Chua Sock Koong
• Executive and non-independent Director
• Member, Optus Advisory Committee
• Date of appointment: Director on 12 October 2006 and Group Chief
Executive Offi cer (CEO) on 1 April 2007
• Last re-elected: 28 July 2017
• Number of directorships in listed companies (including Singtel): 2
Ms Chua Sock Koong, 61, 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, the Defence
Science and Technology Agency, Cap Vista Pte Ltd
and key subsidiaries of the Singtel Group. She is
also Deputy Chair of the GSMA Board.
She is a member of the Singapore Management
University Board of Trustees, the Public Service
Commission, the Research, Innovation and
Enterprise Council and the Indonesia-Singapore
Business Council. She is also an alternate member
of Singapore’s Council of Presidential Advisers.
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.
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Gautam Banerjee
• Non-executive and independent Director
• Member, Audit Committee
• Member, Risk Committee
• Date of appointment: 1 March 2018
• Last re-elected: 24 July 2018
• Number of directorships in listed companies (including Singtel): 4
Dominic Barton
• Non-executive and independent Director
• Member, Finance and Investment Committee
• Member, Risk Committee
• Date of appointment: 25 March 2019
• Number of directorships in listed companies (including Singtel): 2
Mr Gautam Banerjee, 64, is Senior Managing
Director of Blackstone Group and Chairman of
Blackstone Singapore Pte Ltd. Gautam spent over
30 years with PricewaterhouseCoopers (PwC) and
was a Senior Partner and Executive Chairman of
PwC Singapore until he retired on 31 December
2012.
Gautam sits on the boards of Singapore Airlines
Limited, Piramal Enterprises Limited, The Indian
Hotels Company Limited, GIC Private Limited and
EDBI Pte Ltd. He also serves in several not-for-
profi t organisations including Defence Science and
Technology Agency, Listings Advisory Committee of
the Singapore Exchange, Singapore Legal Service
Commission and Yale-NUS College. He was a
Director of The Straits Trading Company Limited.
Gautam holds a Bachelor of Science (Honours) and
an Honorary Doctor of Laws (LLD) from Warwick
University. He is a fellow member of the Institute of
Chartered Accountants in England and Wales, the
Institute of Singapore Chartered Accountants and
the Singapore Institute of Directors.
Mr Dominic Barton, 56, is Senior Partner of
McKinsey & Company. Until July 2018, Dominic
was the Global Managing Partner of McKinsey &
Company. Prior to that, he was based in Shanghai
as McKinsey’s Asia Chairman and also led the
Korea offi ce.
Dominic is the Chairman of Teck Resources Limited.
He is the Chancellor of the University of Waterloo,
the Chairman of the International Integrated
Reporting Council, the Canadian Minister of
Finance’s Advisory Council on Economic Growth
and the Seoul International Business Advisory
Council. He is also a trustee of the Brookings
Institution, a member of the Singapore Economic
Development Board’s International Advisory
Council, and a member of the boards of Memorial
Sloan Kettering in New York City and the Asia
Pacifi c Foundation of Canada. He is one of the
founders of FCLT Global.
Dominic holds a Bachelor of Arts (Honours) in
Economics from the University of British Columbia
and a Master of Philosophy in Economics from
Oxford University, where he studied as a Rhodes
Scholar.
Singapore Telecommunications Limited | Annual Report 2019
16
Board of Directors
Bobby Chin
• Non-executive and independent Director
• Chairman, Audit Committee
• Member, Risk Committee
• Date of appointment: 1 May 2012
• Last re-elected: 24 July 2018
• Number of directorships in listed companies (including Singtel): 4
Venky Ganesan
• Non-executive and independent Director
• Chairman, Technology Advisory Panel
• Member, Finance and Investment Committee
• Date of appointment: 2 February 2015
• Last re-elected: 24 July 2018
• Number of directorships in listed companies (including Singtel): 1
Mr Bobby Chin, 67, is a member of the Council
of Presidential Advisers and Chairman of the
Corporate Governance Advisory Committee, the
Housing & Development Board, NTUC Fairprice Co-
operative Limited and NTUC Fairprice Foundation
Ltd. He is the Deputy Chairman of NTUC Enterprise
Co-operative Limited. He serves on the boards of
the Singapore Labour Foundation and Temasek
Holdings (Private) Limited. He is Chairman of
Frasers Commercial Asset Management Ltd and
also a Director of several listed companies, namely
Yeo Hiap Seng Limited, Ho Bee Land Limited and AV
Jennings Limited.
Bobby was the Managing Partner of KPMG
Singapore from 1992 until his retirement in
September 2005. He was a Director of SembCorp
Industries Ltd.
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.
Mr Venkataraman (Venky) Ganesan, 45, is one of
the Managing Partners of Menlo Ventures, a 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. He is also
a Board member of Amobee, Inc., a wholly-owned
subsidiary of Singtel.
Prior to joining Menlo Ventures, Venky was
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 the former Chair of the National Venture
Capital Association and a former Director of Gild,
Inc., Handle, Inc., Palo Alto Networks Inc and
Virident Systems.
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.
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Bradley Horowitz
• Non-executive and independent Director
• Member, Finance and Investment Committee
• Member, Technology Advisory Panel
• Date of appointment: 26 December 2018
• Number of directorships in listed companies (including Singtel): 1
Gail Kelly
• Non-executive and independent Director
• Member, Audit Committee
• Member, Executive Resource and Compensation Committee
• Member, Optus Advisory Committee
• Date of appointment: 26 December 2018
• Number of directorships in listed companies (including Singtel): 1
Mr Bradley Horowitz, 54, is Vice President of
Product Management at Google, Inc. Over the
past decade, Bradley has led product development
for a wide array of consumer products at Google
including Gmail, Google Drive & Docs, Blogger,
Google Voice, Google News and Google Photos.
Prior to joining Google, he was the Vice President of
Advanced Development at Yahoo, Inc.
Bradley is an independent Director of Issuu, Inc.
and also a member of the Visiting Committee
of Media Lab at the Massachusetts Institute of
Technology.
Bradley holds a Bachelor in Computer Science from
the University of Michigan and a Masters in Media
Science from the Media Lab at the Massachusetts
Institute of Technology.
Mrs Gail Kelly, 63, is a Board Director of Australian
Philanthropic Services. She is also a Senior Global
Adviser to UBS and a member of the Group of
Thirty, Bretton Woods Committee, McKinsey
Advisory Council and PLuS Alliance Advisory Board.
Gail’s executive banking career spanned 35 years.
She was the Group Chief Executive Offi cer and
Managing Director of two banks in Australia –
St.George Bank from 2002 to 2007 and Westpac
Banking Corporation from 2008 to 2015. She was
previously a Director of Woolworths Holdings
Limited in South Africa, Country Road Group, David
Jones and the Business Council of Australia.
Gail holds a Bachelor of Arts and Higher Diploma
of Education from the University of Cape Town
and a Masters of Business Administration
(with Distinction) from the University of the
Witwatersrand. She has been awarded an
Honorary Doctorate of Business by the University
of New South Wales, Macquarie University and
Charles Sturt University and an Honorary Doctorate
of Science in Economics by the University of Sydney.
Singapore Telecommunications Limited | Annual Report 2019
18
Board of Directors
Low Check Kian
Peter Mason AM (1)
• Non-executive and Lead Independent Director
• Chairman, Corporate Governance and Nominations Committee
• Member, Finance and Investment Committee
• Date of appointment: Director on 9 May 2011 and Lead Independent
Director on 21 July 2015
• Last re-elected: 28 July 2017
• Number of directorships in listed companies (including Singtel): 2
• Non-executive and independent Director
• Chairman, Executive Resource and Compensation Committee
• Chairman, Optus Advisory Committee
• Date of appointment: 21 September 2010
• Last re-elected: 29 July 2016
• Number of directorships in listed companies (including Singtel): 2
Mr Low Check Kian, 60, 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 Broadcom
Limited, Singtel Innov8 Pte. Ltd. and Singtel Innov8
Holdings Pte. Ltd., and is a trustee of the Singapore
London School of Economics Trust and 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.
19
Mr Peter Mason, 72, is Chairman of AusNet Services
Limited and a Senior Advisor to UBS Australia. He is
a Director of the Centre for Independent Studies.
Peter has more than 40 years’ experience in
investment banking, including JP Morgan and
Schroders. He has been Chairman and a Director
of a number of Australian companies.
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.
Note:
(1) Member of the Order of Australia.
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Teo Swee Lian
• Non-executive and independent Director
• Member, Audit Committee
• Member, Corporate Governance and Nominations Committee
• Date of appointment: 7 April 2014
• Last re-elected: 29 July 2016
• Number of directorships in listed companies (including Singtel): 4
• Non-executive and independent Director
• Chairman, Risk Committee
• Member, Corporate Governance and Nominations Committee
• Member, Executive Resource and Compensation Committee
• Date of appointment: 13 April 2015
• Last re-elected: 24 July 2018
• Number of directorships in listed companies (including Singtel): 3
Mrs Christina Ong, 67, is Co-Chairman and Senior
Partner of Allen & Gledhill LLP as well as Co-Head of
its Financial Services Department. She is a Director of
Hongkong Land Holdings Limited, Oversea-Chinese
Banking Corporation Limited, SIA Engineering
Company Limited and Epimetheus Ltd. Christina is
a member of the Catalist Advisory Panel and the
Corporate Governance Advisory Committee, a trustee
of The Stephen A. Schwarzman Scholars Trust and
a member of the Supervisory Committee of the ABF
Singapore Bond Index Fund. She also sits on the
boards of companies and entities which are owned
by Allen & Gledhill LLP. She is a former Director of
Singapore Tourism Board and Trailblazer Foundation
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.
Ms Teo Swee Lian, 59, is the Chairman of CapitaLand
Mall Trust, a Director of AIA Group Ltd, Avanda
Investment Management Pte Ltd, Cliff ord Capital Pte.
Ltd. and Dubai Financial Services Authority, a member
of the Governing Board of the Duke-NUS Medical
School and a council member of the Asian Bureau
of Finance & Economic Research of NUS Business
School.
Swee Lian 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. Prior to that, she was the Deputy Managing
Director in charge of Financial Supervision at
the MAS, where she oversaw macroeconomic
surveillance, regulation and supervision of the
banking, insurance and capital markets industries.
Swee Lian was also a member of the Corporate
Governance Council formed by the MAS and the
Singapore Exchange Diversity Action Committee.
Swee Lian holds a B. Sc (First Class Honours)
in Mathematics from Imperial College, London
University and an M. Sc in Applied Statistics from
Oxford University.
Notes:
1.
2. Mr Peter Ong stepped down from the Singtel Board following the conclusion of the Annual General Meeting on 24 July 2018.
Information as at 15 May 2019.
Singapore Telecommunications Limited | Annual Report 2019
20
Organisation Structure
Group Chief Executive Offi cer
Chua Sock Koong
Group Businesses
Corporate Functions
Chief Executive Offi cer
Consumer Australia /
Chief Executive Offi cer Optus
Allen Lew
Chief Executive Offi cer
Consumer Singapore /
Group Chief Digital Offi cer
Yuen Kuan Moon
Chief Executive Offi cer
Group Enterprise / Country
Chief Offi cer Singapore
Bill Chang
Chief Executive Offi cer
Group Digital Life
Samba Natarajan
Chief Executive Offi cer
International
Arthur Lang
21
Audit Committee
Group Chief
Internal Auditor
Craig Young
Group Chief
Corporate Offi cer
Jeann Low
Group Chief
Financial Offi cer
Lim Cheng Cheng
Group Chief
Human Resources Offi cer
Aileen Tan
Group Chief
Information Offi cer
William Woo
Group Chief
Technology Offi cer
Mark Chong
Management Committee
Chua Sock Koong
Bill Chang
Ms Chua Sock Koong, 61, 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, the Defence
Science and Technology Agency, Cap Vista Pte Ltd
and key subsidiaries of the Singtel Group. She is
also Deputy Chair of the GSMA Board.
She is a member of the Singapore Management
University Board of Trustees, the Public Service
Commission, the Research, Innovation and
Enterprise Council and the Indonesia-Singapore
Business Council. She is also an alternate member
of Singapore’s Council of Presidential Advisers.
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.
Mr Bill Chang, 52, was appointed Chief Executive
Offi cer, Group Enterprise on 16 July 2012. He leads
the infocomm and technology (ICT) team, providing
solutions to enterprise customers. He also assumed
the role of Country Chief Offi cer Singapore on
1 October 2014, as principal liaison with local and
regulatory bodies.
Bill joined Singtel in November 2005 as Executive Vice
President of Corporate Business and subsequently as
Managing Director, Business Group.
Bill is the Chairman of the Singapore Polytechnic
Board of Governors and co-chaired the Future
Jobs and Skills Sub-committee of the Committee on
the Future Economy of Singapore. He is a member
of the Australian Institute of Company Directors’
International Advisory Technology Governance
and Innovations Panel, and the Board of Urban
Redevelopment Authority of Singapore.
For his contributions, Bill has won multiple
recognitions including the Public Service Star in
conjunction with National Day Honours, the Singapore
Computer Society’s IT Leader of the Year award in
2017, and the honorary Fellow of the Society in 2014.
Bill graduated with a Bachelor of Engineering
(Honours) in Electrical and Computer Systems
Engineering from Monash University, Australia and
attended the Harvard Business School’s Advanced
Management Program.
Singapore Telecommunications Limited | Annual Report 2019
22
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Management Committee
Mark Chong
Arthur Lang
Mr Mark Chong, 55, was appointed Group Chief
Technology Offi cer on 1 April 2017. He leads the
Group’s technology strategy and innovations in
the transformation of its networks and businesses
across Singapore and Australia. Prior to his
appointment, Mark was CEO, International from
January 2013 to March 2017.
Mark joined Singtel in 1997 and has held various
executive positions in the company including the
roles of EVP (Networks) in Singapore and Chief
Operating Offi cer of Advanced Info Service Public
Company Limited (AIS), Singtel’s associate in
Thailand.
Mark has represented Singtel on the Boards of
public listed companies such as Globe Telecom,
Bharti Infratel, CS Loxinfo PCL and other non-
listed companies such as OpenNet. He is currently
Chairman of Bridge Mobile Alliance and an
Authority member of the Civil Aviation Authority of
Singapore.
He graduated with a Bachelor of Electronics
Engineering and Master in Research in Electronic
Systems from ENSERG, Grenoble, France, on a
Singapore Government scholarship. Mr Chong
obtained his MBA from the National University of
Singapore. He is a Senior Fellow with the Singapore
Computer Society.
Mr Arthur Lang, 47, is CEO, International
having joined Singtel in January 2017. His main
responsibilities are to oversee the growth of the
Group’s regional associates across Africa, India,
Indonesia, the Philippines and Thailand, strengthen
their relationships with overseas partners, and drive
regional initiatives, such as the regional mobile
fi nancial and gaming businesses, for scale and
synergies.
Prior to joining Singtel, Arthur was Group Chief
Financial Offi cer of CapitaLand Limited, where
he also ran CapitaLand’s real estate fund
management business. Prior to CapitaLand, Arthur
was at Morgan Stanley where he was Co-head
of the Southeast Asia investment banking division
and Chief Operating Offi cer of the Asia Pacifi c
investment banking division.
Arthur is a board member of Airtel Africa, Globe
Telecom, Bharti Infratel Limited, NetLink NBN Trust,
the Land Transport Authority of Singapore, the
National Kidney Foundation and the Straits Times
School Pocket Money Fund. He also sits on the
Advisory Board of the Lee Kong Chian School of
Business, SMU. In 2018, Arthur was awarded the
Public Service Medal for his contributions.
Arthur has an MBA from the Harvard Business
School and a BA in Economics (magna cum laude)
from Harvard University.
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Allen Lew
Lim Cheng Cheng
Mr Allen Lew, 64, 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
where he transformed the Group into a leading
player in the digital ecosystem. He was 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
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.
Ms Lim Cheng Cheng, 47, 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 24 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 being Head and Vice
President (Financial Planning and Analysis).
Cheng Cheng is a non-executive, non-independent
Director at SingPost and is the winner of the Best
CFO (big cap) title at the 2018 Singapore Corporate
Awards. Cheng Cheng also serves on the Board of
Governors of Raffl es Girls’ School.
Cheng Cheng holds an MBA from the University of
Chicago Booth 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.
Singapore Telecommunications Limited | Annual Report 2019
24
Management Committee
Jeann Low
Samba Natarajan
Ms Jeann Low, 58, 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.
Mr Samba Natarajan, 53, is Chief Executive Offi cer,
Group Digital Life. He joined Singtel in May 2014 as
Managing Director of Digital Enterprise, leading
a team focused on identifying and executing on
growth opportunities from emerging technology
trends.
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 (AIS) and Intouch Holdings Public Company
Limited.
Jeann holds an Honours Degree in Accountancy
from the National University of Singapore and
is a Fellow Member of the Institute of Singapore
Chartered Accountants.
Samba has more than 25 years of corporate
and consulting experience across a wide range
of senior roles in the areas of strategy, business
development and fi nance. He worked for Citibank
from 1988 to 1997 and McKinsey & Company from
1999 to 2014. In his last role at McKinsey, he was
the Leader of Southeast Asia Technology, Media &
Telecommunications practice.
Samba serves on the Board of Directors of Globe
Telecom in the Philippines. He is also a member of
the Board of the Singapore American School.
Samba holds a Bachelor of Engineering degree in
Electrical Engineering with distinction from the Birla
Institute of Technology and Science in Pilani, India;
a Post Graduate Diploma in Management from the
Indian Institute of Management in Ahmedabad,
India, and an MBA from the Wharton School,
University of Pennsylvania, USA where he was a
Ford Fellow and a Palmer Scholar.
25
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Aileen Tan
William Woo
Ms Aileen Tan, 52, Group Chief Human Resources
Offi cer, is responsible for the development of
human resources across the Singtel Group. She
also leads its corporate sustainability function.
Aileen joined Singtel in 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.
She co-chairs the Ministry of Manpower’s HR
Industry Transformation Advisory Panel and is
a member of the Institute for Human Resource
Professionals (IHRP) Board, Singapore University
of Social Sciences Board of Trustees and the Home
Nursing Foundation Board.
Aileen graduated with a Bachelor of Arts from
the National University of Singapore. She holds a
Master of Science in Organisational Behaviour from
the California School of Professional Psychology,
Alliant International University, US. She is a pioneer
IHRP Master Professional, conferred by the IHRP
in recognition of her being a role model for the HR
profession. She received the Public Service Medal
in 2018 for signifi cant contributions to the human
resources sectors in Singapore.
Mr William Woo, 55, was appointed Group Chief
Information Offi cer from 1 August 2017. William
was Managing Director of Enterprise Data and
Managed Services and Managing Director of
Cyber Security at Group Enterprise.
He joined Singtel in May 2011 from Xchanging PLC,
where he was Managing Director for the Southeast
Asia region.
Prior to that, William spent 20 years at EDS and
had held various senior management roles which
included Managing Director of Southeast Asia &
India and Vice President, Global Service Delivery
of Asia, responsible for leading the Information
Technology Outsourcing, Business Process
Outsourcing and Applications service delivery
across the Asia region. He started his career with
the National Computer Board.
William graduated with a Bachelor of Applied
Science in Computing (Distinction) from the
Queensland University of Technology, Australia,
and holds an Executive MBA from the National
University of Singapore.
Singapore Telecommunications Limited | Annual Report 2019
26
Management Committee
Yuen Kuan Moon
Mr Yuen Kuan Moon, 52, was appointed Chief
Executive Offi cer, Consumer Singapore in June
2012. He leads the Singapore consumer business to
deliver an integrated suite of mobile, broadband
and TV services. Concurrently, Moon is responsible
for driving the Group’s digital transformation as
Group Chief Digital Offi cer, a role that was created
to unlock digital growth opportunities in an era of
disruption.
Since joining Singtel in February 1993, Moon has
held several leadership roles in Marketing, Business
Development and Sales, including VP of Regional
Operations and EVP of Digital Consumer.
In 2003, Moon was posted to Telkomsel as General
Manager for Product Development and appointed
Director of Commerce from 2005 to 2007. He has
served on the Board of Commissioners in Telkomsel
since 2009.
Moon was appointed to the Board of SkillsFuture
Singapore in October 2016, and the Board of
Advisors of the Institute of Service Excellence
at SMU in January 2018. He was appointed a
member of the Digital Readiness Council Steering
Committee in November 2018.
Moon holds a First Class Honours degree in
Engineering from the University of Western
Australia and a Master of Science in Management
from Stanford University.
27
Senior Management
Chia Wee Boon
Chief Excutive Offi cer
NCS, Group Enterprise
Hui Weng Cheong
President & Chief Operating Offi cer
AIS
Murray King
Chief Financial Offi cer
Optus
Ng Kuo Pin
Deputy Chief Executive Offi cer
NCS, Group Enterprise
Kim Perell
Chief Executive Offi cer
Amobee, Group Digital Life
Kelly B Rosmarin
Deputy Chief Executive Offi cer
Optus
Arthur Wong
Chief Executive Offi cer
Global Cyber Security, Group Enterprise
Singapore Telecommunications Limited | Annual Report 2019
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Group Consumer
Connecting
consumers to a
digital future
As consumers’ lives become more digital, we’ll bring them the
convenience they need, connecting them to everything they love just
as they’d want it. With our unparalleled network experience and digital
services, access to mobile fi nancial services and rich entertainment
content, smart living will be even faster and easier. We’re investing
in new technologies and innovations to open up a world of digital
possibilities, enriching their experiences, and connecting them to a
digital future.
29
Singapore Telecommunications Limited | Annual Report 2019
30
Group Consumer
Singapore
As Singapore’s fastest and widest network provider, delivering a great customer
experience is our number one priority. We are committed to going beyond
coverage and connectivity to deepen our relationship with customers. Besides
the latest devices and a wide range of plans, we also offer a host of innovative
digital and lifestyle products and services that enhance their lives.
Engaging
content
Singtel TV subscribers
watched a total of
179,000
hours of television
a month.
Source: SG-TAM
A digital customer experience
More customers are engaging with us
through our digital channels with
1.1m
managing services through
My Singtel app and
26%
of sales transactions carried out online.
CATERING TO CUSTOMERS’
DIGITAL LIFESTYLE NEEDS
To enrich our customers’ digital
lifestyles, we developed exciting
new products and services to
meet their diverse needs. Our all-
digital mobile plan, GOMO caters
to millennials and digital natives
who need huge data allowances
and fuss-free terms which allow
them to sign up for and manage
their plans online. We now offer an
Amazon Prime membership that
comes with 2-hour delivery times
for groceries and entertainment
content perks. We also refreshed
our XO plans with an expanded
line-up, bundled with 24 months
of premium HBO GO content on
us, so customers can watch hugely
popular shows such as Game of
Thrones.
EXTENDING NETWORK LEADERSHIP
On the network front, we continue to
deliver on our commitment to provide
superior connectivity and coverage.
For a record 17 consecutive quarters,
we topped IMDA’s 4G quality of
service chart with a 99.9% outdoor
coverage score.
We are paving the way to 5G by
launching Singapore’s first 5G pilot
network and first live 5G facility
in collaboration with Ericsson and
Singapore Polytechnic. Called 5G
Garage, the facility allows companies
to ideate and test 5G use cases.
We also created network history
with the first Singapore-Australia 5G
augmented reality video call, made
to our Optus colleagues in Sydney,
Australia.
DOUBLING DOWN ON CONTENT AT
HOME AND ON-THE-GO
Quality content is an important
part of our customer engagement
strategy. We continue to enhance our
Singtel TV and Singtel CAST offerings
to connect customers to premium
content at great value and on their
preferred platforms. During the
year, Singtel TV launched e-Le, our
second in-house Asian entertainment
channel, extended our Premier League
rights and added Discovery lifestyle
channels, as well as the full-suite of
HBO channels. We now offer Premier
31
League matches to everyone in
Singapore, with the contract-free
Sports Plus pack on Singtel CAST.
POWERING UP OUR HOME
SERVICES
Singapore’s Open Electricity
Market initiative marked a new
chapter for us. We launched Singtel
Power to offer electricity plans to
our customers for the first time,
partnering Geneco to deliver savings
to residential households. With the
addition of Singtel Power, we are
excited to be a convenient one-stop
shop for our customers’ power and
communications needs.
We know many of our customers are
gamers who count on us for reliable
and secure broadband connectivity.
In 2018, we added an ultrafast
broadband service with a dedicated
1Gbps bandwidth specially designed
for gaming.
TRANSFORMING THE CUSTOMER
SERVICE EXPERIENCE
We are choosing to engage our
customers in new ways, strengthening
our digitalisation efforts across key
touchpoints – at our Singtel shops,
online shop, hotline, web chat and
My Singtel app. In addition to making
purchases online, customers are
increasingly turning to our self-help
platforms such as our 24/7 self-
serve kiosks and My Singtel app
for on-demand assistance. More
than 65% have opted to complete
transactions on these channels.
We will continue harnessing
technologies such as AI, to provide
customers with top-notch service
innovations that add value and
convenience to their lives.
Singtel Consumer Singapore CEO Yuen Kuan Moon with Jonathan Spink, CEO, HBO Asia mark our collaboration in the presence of iconic Game of Thrones
characters, the ‘Night King’ and his ‘White Walkers’.
Singapore Telecommunications Limited | Annual Report 2019
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Group Consumer
Australia
Optus is going further to connect customers with exceptional service, network and
value. These three areas underpin our vision to become a world class digital service
provider and stay ahead of the game.
Leading the
way in 5G
Mobile network
leadership
Launched Australia’s
1st
commercial 5G service.
On our way to deliver
1,200
2020
5G sites by
We have invested
A$5.9b
since 2015 to improve our
networks.
Our 4G network reaches
97.3%
of the population.
LEADING IN 5G TECHNOLOGY
In January 2019, Singtel, Optus and
Ericsson successfully made a 5G
video call between Singapore and
Australia which used augmented
reality - a worldwide first. This proved
our 5G agility and was a key step in
our commitment to lead 5G delivery
in Australia. We also revealed the first
details of our game-changing Optus
5G Home Broadband service in the
Australian Capital Territory and in
the process, became the first carrier
in Australia to offer customers a 5G
fixed wireless access service.
With our comprehensive spectrum
assets and robust plan to deliver 1,200
5G sites by March 2020, more Optus
customers will soon be enjoying the
5G experience.
Fixed wireless access is the first
usable application for 5G. As 5G
infrastructure rolls out, mobile, IoT
and applications yet to be invented
will leverage our next-generation
network and provide Optus customers
with even more amazing experiences.
PROVIDING PREMIUM NETWORK
COVERAGE
Optus continues to deliver premium
network coverage and connectivity
that customers need, where they
need it, at a competitive price.
Since 2015, Optus has invested A$5.9
billion to improve our network reach,
capacity and quality. Our 4G service
now covers 97.3% of the Australian
population and we will continue to
improve our network in the areas
where Australians live, work and play.
In regional Australia, we reinforced
our commitment to a strong
nationwide network with our
executive team striking out on visits
across the nation, including Hobart
and Launceston in Tasmania and
Adelaide and the Barossa Valley in
Southern Australia. The executive
team spoke with customers, local
businesses and community groups,
33
and unveiled investment in the
areas visited. The independent
and respected P3 Connect Mobile
Benchmark for 2018 ranked Optus as
number one across voice and data for
smaller towns and roads –
a recognition of the strength of our
network.
Along with this strong, growing
nationwide network, Optus offers
Australians choice, value, and
competitive pricing.
DELIGHTING CUSTOMERS
WITH CONTENT
We also know many of our customers
value content, and our content
offerings are delighting customers. As
the home of elite European football,
Optus Sport provides customers with
live and on-demand content, along
with expert analysis and highlights.
Optus has doubled down on football
content, extending its Premier League
rights and adding UEFA Champions
League, UEFA Europa League and
UEFA Nations League to Optus Sport.
Along with this, National Geographic’s
enhanced, new-look app, in
partnership with Optus, provides
users with a personalised content
experience that offers live streaming
channels, an immense photo library,
digital articles, National Geographic
magazine archives and more than
3,000 captivating short-form videos
and documentaries, including
new content produced with Optus
exclusively for the app.
CREATING THE OPTUS OF
THE FUTURE
With our business transformation now
in full swing, we are embracing new
technology and looking to efficiencies
through digitalisation, advanced
analytics and AI as we evolve
into a more innovative and agile
organisation.
We are making sure our customers
see the benefits too. We know more
and more customers wish to make
changes and solve issues digitally, so
we continue to provide more digital
options for them to do so, including
in-app features for My Optus app
such as activation, and improved
messaging and engagement.
Singapore Telecommunications Limited | Annual Report 2019
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Group Consumer
The CEO Conversation
Connecting customers to
a digital future
Increasingly connected digital lifestyles have dramatically changed what
customers expect of telcos. Consumer Singapore CEO Yuen Kuan Moon and
Optus CEO Allen Lew share how Singtel and Optus are evolving to better serve the
digital consumer and stay competitive.
As the Singapore and Australia
markets get more crowded, how
are Singtel and Optus staying
ahead of the competition?
Moon: We are upping the ante to
create more value for our customers.
From connectivity to content, we
are creating a range of services
and products that give our diff erent
customer segments what they need
at best value rates. One example is
our XO mobile plans bundled with up
to 24 months of HBO GO which gives
customers the services they need
with the content they want.
As technology evolves, the Singtel
customer experience is being
transformed radically. We have
ramped up digitalisation, making it
faster and easier for customers to
engage with us. 26% of our customers
now make purchases online and
about 65% engage with us through
digital self-help channels.
Allen: Optus continues to
diff erentiate through our premium
national network, exceptional value
off ers and game-changing customer
experiences. Sustained mobile
network investment emphasises
our network leadership claims
particularly with the introduction of
Optus 5G Home Broadband – the
fi rst service of its kind in Australia.
Our exclusive content is a key
diff erentiator. Our customers can’t
get enough of Optus Sport and our
expanded global content off ering
with National Geographic.
Our focus areas of exceptional value,
exceptional network and exceptional
customer service are also resonating
with our customers.
What is the focus of your strategy?
Moon: We are focused on
accelerating the next phase of
our transformation, to go beyond
our core carriage foundations to
deliver the best customer experience
possible, whether it’s online or in-
person. Our customers tell us they
want more content, convenience
and digital engagement, with
none of the fuss. This presents a
great opportunity to deepen our
relationship with them. Customers
can expect us to go bigger on
digital and lifestyle services and
be the one-stop shop for all their
communications and lifestyle needs.
Allen: The telecommunications
industry has undergone signifi cant
disruption and the landscape we face
today is very diff erent from before.
Our world is increasingly reliant on
mobile devices and network access.
Mobile devices are often the fi rst
thing we look at in the morning and
the last thing before we go to bed
– and in between, they allow us to
communicate, share and stream with
our family, friends and co-workers.
With increased dependency on our
services, customers’ expectations are
higher than ever and we’re going
further to deliver against them across
all parts of our business.
What services are important to the
digital consumer and how are you
diff erentiating yourselves in these
areas?
Moon: Exclusive and diff erentiated
content is what sets us apart and
customers are thrilled with our
35
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We are focused on accelerating
the next phase of our
transformation, to go beyond
our core carriage foundations
to deliver the best customer
experience possible.
With increased dependency on our
services, customers’ expectations
are higher than ever and we’re
going further to deliver against
them across all parts of our
business.
Yuen Kuan Moon
CEO, Consumer Singapore
Allen Lew
CEO, Optus
Singtel TV and Singtel CAST off erings
of Premier League football, Discovery
lifestyle channels and ethnic content
on in-house channels Jia Le and e-Le.
On average, each household watches
more than 100 hours of content a
month across multiple platforms
so content is a key priority and we
will continue to invest in boosting
our line-up. In addition, customers
can expect more personalisation,
such as real-time recommendations
on products and services relevant
to their needs, and smarter, on-
demand, digital customer service.
Allen: Globally, there’s a signifi cant
shift in viewing behaviour and
video consumption. Optus has long
recognised that content is king in a
digital world and we are investing
to bring premium content to our
customers where they are, whenever
they want it. For example, with
sports being such a huge pastime
in Australia, I’m proud that Optus is
broadcasting all 52 matches of the
2019 FIFA Women’s World Cup which
commences in June and cements
our reputation as the premium
broadcaster of elite football in
Australia.
As we enter a 5G era, what can
customers expect from you in this
area?
Moon: We are seeing 5G deployed
as fi xed wireless access solutions
in large countries to enable high-
speed internet. In Singapore, it’s
a diff erent story. With residential
fi xed broadband penetration
rates at almost 94%, consumers
already enjoy one of the world’s
fastest connections. We are actively
exploring potential 5G use cases,
building an ecosystem and preparing
our core infrastructure for when
spectrum is allocated and standards
are fi nalised.
Allen: 5G is here, and it’s a game
changer. It presents signifi cant
consumer and enterprise
opportunities, and as a provider of
5G services, I see a major role for
Optus in the digitalisation of the
economy and the economic benefi ts
that will result from it.
We have launched our 5G Home
Broadband plans and set a robust
rollout plan to deliver 1,200 5G
sites by March 2020. Soon, Optus
customers across Australia will be
enjoying the 5G experience.
Singapore Telecommunications Limited | Annual Report 2019
36
Group Consumer
Regional Associates
As consumers in the emerging markets grow increasingly reliant on their phones
for access to essential services, our regional associates have seen the demand for
data and digital services increase dramatically. This has spurred the Singtel Group
to build a regional ecosystem of digital services to serve the some 690 million mobile
customers across our regional footprint.
Asia’s fi rst cross-border
mobile payment alliance
VIA connects
more than
and will soon
add some
6m 14m
mobile wallet
users to over
mobile wallet users and
1.7m 200,000
merchants in
Singapore and
Thailand
merchants in the region.
Game on
Our inaugural PVP
Esports Championship
attracted over
18,000
gamers from around
the region with the
live fi nals watched by
13m
viewers online.
DIGITALISING TO ENHANCE
CUSTOMER EXPERIENCES
The growth in demand for digital
services across the region has seen
our associates respond quickly
with innovative digital products
and services. They are investing
resources to digitalise processes,
developing channels such as online
self-care services and fi elding
virtual assistants to help them better
engage customers and handle the
higher volumes of interactions from a
growing customer base. Digitalisation
has also allowed them to deliver
more targeted and personalised
content such as music, video and
gaming directly through their own
mobile apps, such as My Airtel, AIS
Play and Telkomsel’s MAXstream.
To meet the growing demand for
data, our associates collectively
invested S$8.9 billion in their
networks over the past year to deliver
faster, seamless connections and
prepare for the next generation of
connectivity.
They also continue to push services
and solutions for small homes and
businesses that complement their
mobile off erings, with AIS making
inroads with AIS Fibre in Thailand,
and Globe expanding their fi xed
wireless home base in the Philippines.
IMPROVING MOBILE FINANCIAL
OFFERINGS
As a Group, we are improving our
mobile fi nancial off erings to bring
greater convenience to customers
and drive fi nancial inclusion. We
are enhancing our mobile wallets,
expanding our merchant networks
and introducing more services that
will help our customers, in particular
the unbanked or under-banked, plug
into the digital economy. In Indonesia,
Telkomsel’s Tcash is now LinkAja, a
single mobile payments platform to
37
facilitate cashless transactions, from
utilities and transport payment to
e-shopping, all without the need for
a bank account. In the Philippines,
Globe has embarked on data-driven
lending, assigning a “trust score”
to customers based on their GCash
usage to determine credit worthiness.
In Singapore, Dash partnered
with Apple and VISA, extending its
acceptance network internationally
through ApplePay and VISA
Contactless points, and added
Myanmar to its existing remittance
corridors.
growth potential in the region. To
realise that vision, we debuted VIA,
Asia’s first cross-border mobile
payment alliance. VIA gives travellers
the convenience of using their local
wallets that are part of the alliance at
participating merchants in the region
at competitive exchange rates, and
widens the reach of small merchants
to millions of consumers. Initially
launched between Singapore and
Thailand with AIS and Kasikornbank,
VIA will soon be available in more
countries such as Malaysia through
Axiata Digital’s Boost wallet and Japan
through Netstars.
BUILDING A MOBILE FINANCIAL
SERVICES ECOSYSTEM ACROSS
THE REGION
The Group is leveraging its telco
assets and scale to build a mobile
financial ecosystem that will unlock
ENGAGING CONSUMERS THROUGH
GAMING AND DIGITAL CONTENT
To connect with a millennial audience,
the Group is moving towards
becoming a leader in offering high
quality gaming content. Our inaugural
PVP Esports Championship was a
huge success with the live finals
played before a sold-out audience
and broadcast on major streaming
platforms such as Twitch, Facebook
and Douyu.
We are extending our gaming focus
by exploring opportunities with
like-minded partners to drive the
development of a vibrant gaming
community in the region. We signed
an MOU with South Korean gaming
giant SK Telecom to grow regional
gaming leagues, develop content
and explore game distribution,
with the aim of delivering a more
holistic gaming experience for our
millennial customers.
Singtel and AIS executives with Guest of Honour Thailand’s Minister of Digital Economy and Society, Dr Pichet Durongkaveroj (centre), at the launch of VIA in
Bangkok.
Singapore Telecommunications Limited | Annual Report 2019
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Group Consumer
Regional Associates
The CEO Conversation
Building an ecosystem
of digital services for
the region
Consumers are adopting a more digital lifestyle as the region pushes toward a
connected digital economy. How is Singtel leveraging the strengths of the Group
to stay ahead? International Group CEO Arthur Lang shares his thoughts on our
regional strategy.
Some of Singtel’s associates
are facing fi erce competition
in their markets. What is
the Group’s strategy in this
challenging environment?
Arthur: It remained a challenging
year for Airtel, but the market
in India is starting to stabilise
and return to a healthier and
more sustainable structure.
With customers consuming an
average of 11Gb of data each
month, I remain optimistic about
India’s future in a data-driven
economy. Elsewhere in the region,
we are starting to see reduced
headwinds.
It has always been our strategy
to lead in network superiority
and we are strengthening this
leadership through continued
investment which has seen AIS
39
deliver fi bre broadband in Thailand
and Globe ready to launch 5G fi xed
wireless home broadband services in
the Philippines later this year. We’re
also focused on product and services
innovation to deliver a better customer
experience for our 690 million mobile
customers. For instance, in Indonesia,
a vibrant hub for start-ups, Telkomsel
established an investment fund to
help promising companies accelerate
growth. This is with a view of tapping
into their ideas to enhance our content
and digital services off erings that will
help us monetise data growth.
The associates remain some of the
strongest operators in their markets,
and with high mobile penetration and
mobile-fi rst lifestyles in the region,
I am excited about the tremendous
growth potential of Asia’s emerging
markets as we build a regional
ecosystem of digital services.
Why have you decided to expand
into mobile fi nancial services with
Dash and VIA?
Arthur: The domestic wallet
business is fragmented and hard to
diff erentiate, with demand for mobile
fi nancial services – not just payments
– on the rise. Against this backdrop,
we see the potential for our mobile
wallet Dash to be the foundation on
which to develop a larger ecosystem
of fi nancial services. As we expand
its merchant network and add more
services, Dash is evolving into an
app for all our customers’ everyday
fi nancial and lifestyle needs whether
in-store or online. Our associates are
also executing similar strategies with
their own mobile wallets.
We created VIA, Asia’s fi rst cross-
border mobile payment alliance, to
diff erentiate our wallets from many
pool of customers. The reach of the
network has tremendous potential
to benefi t everyone. With such a
platform, we can branch out to off er
a greater range of fi nancial services.
We look forward to engaging the rest
of our associates and inviting more
partners to VIA as we enter into the
second stage of this journey.
You’ve also made similar bold
moves in esports. How do your
esports initiatives synergise with
your other digital businesses?
Arthur: Our esports initiatives are
part of the Group’s larger eff orts to
grow our digital content business
and engage millennial and Gen Z
audiences. Our services such as
content, high-speed broadband
and payments, along with the
billing relationships we have with
customers, put us in a unique position
to off er digital services, making
gaming more accessible while
improving the experience.
The aim is for PVP, our gaming brand,
to be a major ecosystem partner in
the regional gaming and esports
scene. Through our PVP Esports
leagues and collaboration with like-
minded partners, we hope to bring
gaming into the mainstream and
connect with gamers and youths.
We are excited to be sponsoring
Singapore’s fi rst esports SEA Games
teams in 2019 and look forward
to bigger things to come. We
see tremendous opportunity in
the network eff ect of the gaming
community and believe in the long-
term prospects of this market.
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The associates remain some of the strongest
operators in their markets, and with high
mobile penetration and mobile-fi rst
lifestyles in the region, I am excited about
the tremendous growth potential of Asia’s
emerging markets as we build a regional
ecosystem of digital services.
Arthur Lang
CEO, International Group
localised wallet systems and to
address the fragmented payments
scene in the region. We see both
Dash and VIA as twin engines of
growth in mobile fi nancial services.
How are you building on VIA to
create a larger fi nancial services
ecosystem?
interoperable platform that allows
any wallet to easily tap into a larger
consumer and merchant network
across Asia. This means partners can
access a huge addressable market
with us as we build up the alliance,
just as our customers will enjoy
greater connectivity and shopping
options across the region.
Arthur: VIA is the key to connecting
the region and beyond with an
This also opens up smaller hyper-
local merchants to a much larger
Singapore Telecommunications Limited | Annual Report 2019
40
Group Enterprise
Preparing
enterprises for a
smart future
The convergence of technologies such as 5G, IoT and AI is starting
to disrupt and redefi ne entire industries. The future of logistics,
for example, could see autonomous vehicles that vastly improve
navigation safety and fl eet management. Unmanned robots
and drones would make inventory management and order
fulfi lment faster and more effi cient. With our enterprise services
and advanced cyber security solutions, we’re helping enterprises
leverage the transformative power of technology to get ahead in
the future economy.
41
Singapore Telecommunications Limited | Annual Report 2019
42
Group Enterprise
As advancements in technology continue to disrupt industries, our focus at Group
Enterprise is on helping enterprises prepare for the future by accelerating their digital
transformation, realising the possibilities enabled by new and disruptive technologies,
and unlocking new growth opportunities. Through R&D and innovation, we are
reimagining the future of industries and bringing it closer to customers.
Safeguarding
the future
Redefining
industries
Our FutureNow
Innovation Centre supports
Trustwave has over
2,000
cyber security
professionals and
9
Advanced Security
Operations Centres
globally.
Trustwave is a leader in
the 2019 Gartner Magic
Quadrant for Managed
Security Services,
Worldwide, for the
second year.
Source: Gartner, “Magic Quadrant
for Managed Security Services,
Worldwide” (1) by Toby Bussa, Kelly
Kavanagh, Sid Deshpande, Pete
Shoard, May 2, 2019
6
23
industry clusters covering
key industries in Singapore,
driving innovation and
transformation with new
technologies.
BRINGING THE FUTURE CLOSER
As more nations race to build smart
cities and digitalise their economies,
rapid changes are sweeping
across industries, redefining how
enterprises and their value chains
operate. To help enterprises
transition to and navigate this new
digital economy, we continue to
develop services, solutions and
platforms to spur innovation, rethink
business models, redefine customer
experiences, engage employees
and improve productivity.
We launched the FutureNow Innovation
Centre which showcases the future
of industries powered by innovative
technologies and services like
cloud computing, data analytics, AI,
cyber security, blockchain, robotics,
automation, software defined networks,
IoT and 5G. We are enhancing our
ecosystems and empowering enterprises
to accelerate their digitalisation efforts.
the enhanced 99%SME platform
with IMDA which garnered strong
support from our partners. The
platform combines critical business
intelligence, last-mile delivery
options, and new omni-channel
retail and customer engagement
features to help SMEs grow their
customer base, using both offline
and online presence.
To help SMEs adopt digital technologies
to improve efficiencies and achieve
their growth potential, we launched
Underlying these new technologies
and platforms is high bandwidth
connectivity, which is the
Note:
(1) Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those
vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should
not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of
merchantability or fitness for a particular purpose.
43
cornerstone of a digital economy.
Last year, we launched Singapore’s
first 5G pilot network at one-north
with Ericsson. We also partnered
with Ericsson and Singapore
Polytechnic to open the nation’s first
live 5G facility – 5G Garage – on
campus which serves as a training
centre, test bed and ideation lab
to develop Singapore’s own 5G
ecosystem.
PROTECTING ENTERPRISES
As we move towards a hyper-
connected digital future, the risk of
cyber threats becomes even greater.
To safeguard enterprises against a
growing slew of fast-evolving cyber
threats, we consolidated our cyber
security assets under the Trustwave
brand, to form one of the industry’s
most comprehensive global cyber
security companies. We continue
to develop our cyber security
capabilities to position ourselves to
lead and shape the cyber security
sphere. Our global network of
Advanced Security Operations
Centres is now supported by the
new Trustwave SpiderLabs Fusion
Centre in Chicago, a cutting-edge
cyber security command centre
providing unprecedented threat
hunting capabilities through
pioneering threat intelligence. We
also acquired Hivint, an award-
winning cyber security consulting
company in Australia, enhancing
our consulting capabilities.
To further complement our network,
we welcomed AT&T as a member
to the Global Telco Security
Alliance that we formed with
Etisalat, Softbank and Telefónica,
greatly increasing the Alliance’s
global presence and resources.
We also partnered with Argus, a
global leader in automotive cyber
security, whose solutions are being
integrated into Singtel’s managed
security services. The partnership will
facilitate the future introduction of
connected cars and new technologies
such as autonomous vehicles.
STRENGTHENING CORE
CAPABILITIES
Strong core capabilities are key to
powering new technologies and
helping customers accelerate their
own digital journey. Even as we
develop new services, we continue to
strengthen and digitalise our core. We
launched Liquid Infrastructure, a next-
generation data-driven, highly agile,
intelligent platform that integrates
physical and virtual network services.
The platform, designed for use with
services such as optimised cloud
access, virtual network function and
IoT, allows enterprises to configure
their networks with ease and deploy
resources when needed.
Singtel executives demonstrating how IoT and AI can enhance companies’ competitive advantage to Singapore’s Minister for Communications and
Information S Iswaran (third from left) at MWC Barcelona 2019.
Singapore Telecommunications Limited | Annual Report 2019
44
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Group Enterprise
The CEO Conversation
Empowering customers in
their digital transformation
journeys
The advent of digital has seen Singtel evolve into a technology-led, data-driven,
agile digital services provider. Group Enterprise CEO Bill Chang discusses how,
drawing on our own experience, we are helping enterprise customers to digitally
transform, increase their innovation capacity and outperform their competitors.
Why is it important for
enterprises to digitalise and are
they doing it fast enough?
Bill: Major technological advances
have disrupted industries, making
it easier for companies to enter
new business verticals and
challenge incumbents. This has
turned old notions of competition
on its head, making digital
transformation a necessity rather
than an option.
Our own experience in the telco
industry is a good example. The
smartphone started the mobile
internet and data revolution,
disrupting our traditional telco
revenues in voice services. We had
to respond quickly by developing
new business models around data
and digital while preserving the
value in our core business.
45
This is a dilemma and challenge
that companies routinely face. While
they recognise the need to digitalise,
they aren’t moving fast enough nor
do they have the digital capabilities
to do so eff ectively. The Singapore
Government has been trying to
address this by throwing its support
behind various initiatives, building
digital ecosystems and pushing for
greater industry collaboration. But
enterprises also need a reliable
partner to help chart their digital
roadmap, and guide and catalyse
their operations.
How is Singtel helping other
enterprises in their digital
transformation journeys?
Bill: Our own transformation
experience, coupled with our
expertise, positions us well to help
enterprises. With our solutions in
data analytics, cloud, cyber security,
robotics, automation, IoT and 5G,
enterprises can kick-start their
digitalisation journey, maximise
effi ciencies and even develop new
business models. The beauty of these
solutions is the fact that it can benefi t
any size of enterprise – from one-
person operations to multinationals.
Enterprises which are already
digitalising can partner and use
our resources to co-create and test
concepts in a secure environment
like our FutureNow Innovation Centre
which we launched in August. They
can also tap into our R&D labs to test
technologies like AI, cyber security,
augmented reality and automation to
reimagine the customer experience
and redefi ne their businesses,
products and services. We have
developed a framework for digital
transformation where design thinking
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by our global cyber security brand
– Trustwave – we not only monitor
but are able to detect, hunt and
coordinate an eff ective response
to address cyber threats within an
enterprise’s infrastructure. This helps
us better secure enterprises and
innovate new services and solutions
to stay ahead of the competition.
Our broad range of digital services
and cyber security capabilities
provides enterprises with the tools to
become agile, digital organisations
that can adapt to a constantly
changing digital economy.
How do these technologies and
services help enterprises prepare
for the industries of the future?
Bill: Cities and industries of the
future will be powered by intelligent
connectivity – a convergence of
5G, IoT and AI that will form the
backbone of a new hyper-connected
era.
This is already playing out in the
maritime space, where analytics,
cloud and IoT are being dovetailed
to monitor the performance of ships
in real time and predict issues before
they occur. This will help enterprises
to be safer and more effi cient when
managing their fl eets. Healthcare is
also undergoing a digital overhaul,
empowering doctors to remotely
perform and monitor complex
surgeries in real time, maximising
effi ciencies and extending their
expertise to patients worldwide.
Backed by actionable data insights,
enterprises will be able to build
digital business systems that will give
them that highly coveted competitive
advantage.
With our solutions in data analytics, cloud,
cyber security, robotics, automation, IoT
and 5G, enterprises can kick-start their
digitalisation journey, maximise effi ciencies
and even develop new business models.
Bill Chang
CEO, Group Enterprise
is applied to understand customers’
needs and develop solutions to
meet them. We can further help
enterprises scale their businesses
with our customer base and reach
across the region.
What capabilities has Singtel
developed to help enterprises
succeed in their digitalisation
eff orts?
Bill: As advanced connectivity is
a prerequisite for digitalisation,
we have strengthened our core
network capabilities with software-
defi ned networks to improve
reliability, resource management
and effi ciency. This has allowed
us to develop capabilities in new
technologies that will change the way
enterprises and industries operate,
such as cloud, cyber security, IoT,
analytics, 5G, AI and robotics.
Critically, with the rise in cyber
attacks globally, the deployment of
these systems needs to be secure.
With our consolidated cyber security
capabilities and resources provided
Singapore Telecommunications Limited | Annual Report 2019
46
Group Digital Life
Building
relationships
in a connected
world
Today’s consumers and enterprises are switching easily between
multiple channels, screens and devices, expecting more seamless
experiences from the brands they engage with. To better reach and
build relationships with our customers, we need to lead disruption
and anticipate their needs. We help marketers gain a unifi ed view
of their audiences and cut through the noise, engage users with the
best content and services, and drive unique insights.
47
Singapore Telecommunications Limited | Annual Report 2019
48
Group Digital Life
Digitisation continues to change how we interact with content and services, and is
increasing consumer expectations of these experiences. Through a series of strategic
market moves, Group Digital Life is improving how these services are delivered in our
home markets and abroad, for consumers, businesses and governments.
Helping advertisers reach
audiences at scale
Amobee has more than
Investing in
the future
150
integrated partners across the advertising ecosystem,
and evaluates over
7.7m
advertising opportunities per second.
Delivering non-stop entertainment
Unlimited access to over
20,000
hours of popular local, Asian and Hollywood movies
and TV series on HOOQ.
Since 2010, Innov8 has
made over
80
investments in areas such
as cyber security, IoT, data
and analytics, fintech, digital
health, gaming and more.
AMOBEE EXPANDS CAPABILITIES
Digital and traditional TV advertising
are converging as advertisers seek to
engage tech-savvy customers across
multiple screens and platforms.
This will have a profound impact on
global advertising as brands and
agencies find new tools and solutions
to improve how they reach digital
consumers. Amobee continues to
enhance its platform as an end-to-
end, unified omnichannel solution
through technology development and
strategic partnerships to empower
marketers to seize this converged
media opportunity.
A key step to this strategy was
the acquisition of Videology, a
technology provider for advanced
TV and video advertising. Amobee
can now unify and optimise critical
consumer intelligence and campaign
spend across traditional TV and
digital channels for advertisers. This
strategy has already gained traction,
attracting new partnerships with
ITV, the UK’s largest commercial
broadcaster and Univision, the
number one Spanish language
broadcaster in the US. Advertisers
can now get advanced solutions and
programmatic access to the portfolio
of premium digital video inventory
across ITV channels, exclusively
through the Amobee platform.
This adds to a strong year
for Amobee as we continued
strengthening our capabilities
through data partnerships with
Nielsen and Oracle Data Cloud,
49
two leading global data providers
and analytics companies. All
these developments have grown
our business with key clients
and enabled us to capture new
opportunities, including a global
agreement with Mastercard.
HOOQ AND DATASPARK CONTINUE
TO GROW
The popularity of media streaming
services has gone up exponentially
and HOOQ aims to be one of the
largest OTT content providers in
Southeast Asia, while maintaining
market leadership in Indonesia. To
do so, we are constantly updating
HOOQ’s content to meet consumer
demand and target mass market
segments more effectively.
Over the past year, HOOQ has
transformed its business model to
offer affordable daily plans, as well
as a freemium layer which includes
free-to-air channels, Advertising
Video on Demand and Subscription
Video on Demand. To drive further
audience growth and scale, HOOQ
established strategic partnerships
with Hotstar in India and Grab in
Southeast Asia to provide in-app
viewing and easy access to HOOQ
content.
DataSpark continues to help
businesses and government
agencies harness the power of
geospatial data for planning and
decision-making. It has developed
Mobility Genomes, a suite of data
products and simulation tools to
address high-impact use cases in
transport, out-of-home advertising,
tourism and radio network
engineering. DataSpark has been
working with various Australian state
transport authorities on innovative
applications of population-wide
mobility data to solve traffic
problems as part of Australia’s
transport infrastructure planning.
INNOV8 DRIVES INNOVATION
Constant innovation is key to staying
relevant in a digital economy. Innov8
remains focused on identifying and
investing in innovative start-ups
with technologies and solutions that
enhance the Group’s capabilities and
drive value for our customers. Some
of the notable investments in 2018
include Halodoc, an Indonesian digital
health platform that aims to simplify
access to healthcare by building an
ecosystem that caters to the entire
patient journey; CXA Group, Asia’s
first population health ecosystem for
employers; and Data Republic, an
inter-organisational data exchange
platform headquartered in Sydney,
that allows businesses to exchange
information securely.
Singapore Telecommunications Limited | Annual Report 2019
50
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Group Digital Life
The CEO Conversation
Upping the
game in digital
Singtel’s investments in digital businesses and assets over the past several
years have matured, gaining scale and traction in Asia. We talk to Group Digital
Life CEO Samba Natarajan to understand how Singtel is upping its game in the
digital economy.
Last year saw a number of
interesting developments for Group
Digital Life. What are your priorities
going forward?
Samba: The developments in our
businesses last year have really
strengthened their foundations
for growth in the coming fi nancial
year. Acquiring Videology and
integrating it into Amobee’s platform
makes Amobee one of the fi rst in
the advertising technology market
to unify TV, digital and social into a
single platform. HOOQ’s strategic
digital partnerships with Grab and
Hotstar will enhance its ability to
scale in their respective markets,
while DataSpark’s focus on out-of-
home advertising, transport and telco
network planning is gaining greater
market acceptance in Southeast Asia
and Australia.
attention towards value realisation
for these businesses. This could be
in the form of additional strategic
partners coming on board as
stakeholders in the entity, or through
an IPO. We also look to better inform
the investment community on the real
value of these businesses, as they are
quite diff erent from our traditional
core businesses and should be
valued with metrics appropriate for
their respective industries.
In addition, we are constantly
evaluating digital opportunities as
new growth engines for the Group,
in current verticals and new verticals
such as digital health and fi ntech.
Amobee had an eventful year with
acquisitions and partnerships. How
will these deals help drive growth?
acquisition of Videology and our
partnerships with data providers such
as Oracle Data Cloud and Nielsen,
will help us to grow our business with
agencies and our strategic accounts.
We also hope to do more broadcaster
deals like the agreement we reached
with the UK’s largest commercial
broadcaster, ITV, to create their own
“walled garden” for advertising,
exclusively within the Amobee
platform. Our technology enables
broadcasters to digitally upgrade
their TV and video advertising
capabilities to create value for
advertisers, and be competitive in
digital advertising markets where
Google and Facebook dominate.
HOOQ has shown positive
momentum in the year, how do you
intend to keep it up?
As we continue to build operating
momentum, we are turning our
Samba: We are focused on
developing a leading platform
for omnichannel advertising. The
Samba: We are now beginning
to leverage telco and non-telco
51
Singtel has made some interesting
investments through Innov8 this
year. Can you talk a bit about them
and your investment strategy?
Samba: In this fast-changing digital
age, we must continue to evolve
to stay relevant. Our investment
strategy for our digital businesses
has often taken the form of in-house
development and strategic buys that
may accelerate our leadership in the
marketplace.
In addition to acquisitions and
organic growth, we are also looking
at other investment strategies in
which we identify and invest in
emerging growth companies through
Innov8, especially those that are
fi lling the gaps left by traditional
infrastructure or are disrupting and
improving service delivery through
their digital solutions. These are
companies that create value for our
customers, particularly in emerging
markets. Given our footprint, we can
by extension, help them scale their
business and expand in the region.
An example this year is Halodoc, an
Indonesian digital health platform
that aims to simplify access to
healthcare by building an ecosystem
that caters to the entire patient
journey. We are working closely
with our investee companies to
support their development, including
providing access to data analytics
and advertising capabilities to
enhance their digital off erings.
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The developments in our businesses last year
have really strengthened their foundations
for growth in the coming fi nancial year... As
we continue to build operating momentum,
we are turning our attention towards value
realisation for these businesses.
Samba Natarajan
CEO, Group Digital Life
partners in our quest to become one
of the largest OTT video providers in
Southeast Asia.
HOOQ has entered into a
partnership with Hotstar which gives
us access to the huge Indian market
where Hotstar has more than 300
million monthly active users. We have
also entered into a partnership with
OVO in Indonesia and a regional
agreement with Grab, where
HOOQ’s streaming service will
be integrated within Grab’s
environment and their customers
will enjoy a seamless video
experience during their Grab
interaction. These partnerships
let us expand our audience, and
when combined with the assets
we’ve built, place us in a strong
position to grow.
Singapore Telecommunications Limited | Annual Report 2019
52
Key Awards & Accolades
Business Excellence
SINGTEL
Asia Communications Awards 2018
• Best Enterprise Service –
Software-defined Hybrid Network
• Cyber Safe Award
• NFV Innovation Award
Computerworld Hong Kong Awards
• Global Wide Area Network Connectivity
Service Provider of the Year (2015 – 2018)
Contact Centre Association Awards 2018
• Most Innovative Productivity Solution
(Gold)
IDC MarketScape: Asia/Pacific Next-Gen
Telcos: Telecom Services 2018 Vendor
Assessment
• Leaders Category
Frost & Sullivan Asia Pacific ICT Awards
2018
• Asia Pacific Telecom Group of the Year
(2016 – 2018)
Frost & Sullivan Asia Pacific Best Practices
Awards 2018
• Southeast Asia Managed Security Service
Provider of the Year
HardwareZone Tech Awards 2019
• Best Mobile, Fibre Broadband & Pay TV
Service Provider
Institute of Advertising Singapore’s Hall of
Fame Awards 2018
• Brand of the Year
IT Pro Corporate Choice 2018
• Managed Security Service Provider of the
Year
NetworkWorld Asia Information
Management Awards
• Disaster Recovery & Business Continuity
(2014 – 2018)
Singapore Manufacturing Federation
Awards 2018
• SMF Collaborative Partnership Award –
Mobile Virtual Network Operator World
Congress
• Most Innovative Wholesaler
Distinguished Winner
Singapore Retailer Association Awards
• Achievement in Customer Excellence
Award – Best in Telecommunications
Category
• Best Retail Concept of the Year
• Service Excellence - 50 Gold, 62 Silver,
and 41 Star awards
Telecom Asia Awards 2018
• Best Cloud-Based Service
• Best Mobile Carrier
• Most Innovative Approach to Customer
Experience
Telecoms World Awards 2018
• Virtualisation and Cloud Infrastructure
Award
TMT Global Excellence Awards 2018
• Recognised Leader in
Telecommunications – Singapore
P3 Connect Mobile Benchmark Australia
• Number One for Data in Australia
• Number One for Voice and Data in
Smaller Towns and Roads
AMOBEE
Digiday Technology Awards 2018
• Best Data Management Platform
• Best Marketing Dashboard Software
Fortune Magazine
• Top 25 Medium and Small Workplaces in
NYC 2018
MediaPost Online Marketing Media and
Advertising Awards 2018
• Best Mobile Integration Cross-Platform,
with Southwest Airlines
• Best Video Single Execution, with
Southwest Airlines
TMT Telecom Awards 2018
• Telecom Group of the Year 2018 – Asia
Mumbrella Asia Awards 2018
• Marketing Technology Company of the
Pacific
OPTUS
Year
TRUSTWAVE
Australian Communications Industry
Awards 2018
• Satellite Provider of the Year Award
2019 Gartner’s Magic Quadrant for MSS,
Worldwide
• Leaders’ Quadrant (2018 - 2019)
Brand Finance Report
• Australia’s Fourth Strongest Brand
• Australia’s Strongest Telecommunications
Brand
• Ninth Most Valuable Brand in the Top 100
List of Australia’s Most Valuable Brands
Frost & Sullivan Australia Excellence Awards
2018
• Australian Mobile Service Provider of the
2018 IDC MarketScape: Asia/Pacific
Managed Security Services 2018 Vendor
Assessment
• Leaders’ Position
Frost & Sullivan APAC Best Practices
Awards
• Southeast Asia Managed Security Service
Provider of the Year (2018)
• Singapore Managed Security Service
Provider of the Year (2016 - 2018)
• Security-as-a-Service (2012 – 2018)
Year
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Digital Impact Awards
• Best Digital Customer Experience by
Technology Brand
• Best Professional, Legal and
Regulatory Brand
• Best Saving and Lending Product
(Digital driven)
• Best Technology Brand on Social Media
TELKOMSEL
Asia Communications Awards 2018
• Digital Lifestyle Winner (Total Telecom)
Frost & Sullivan Awards 2018
• Excellence in Customer Experience –
Telecommunications Industry Indonesia
– Overall Experience
Telecom Asia Awards
• Most Innovative Voice Service or Solution
GLOBE
Stevie Awards 2018
• Great Employers of the Year in
Telecommunication
The Asset Corporate Awards 2018
• Platinum Award for Excellence in
Governance, Corporate and Social
Responsibility & Investor Relations
Benchmarking
REGIONAL ASSOCIATES
AIS
Frost & Sullivan Thailand Excellence Awards
• 2018 Thailand IoT Solutions Provider of
the Year Award
• 2018 Thailand Cloud Services Innovative
Company of the Year Award
Thailand’s Most Admired
Brands 2018
• Thailand’s Most Admired Brand &
Company
AIRTEL
Carriers World Awards 2018
• Best Wholesale Business Transformation
• Best Wholesale Carrier (Global)
Corporate Citizenship
SINGTEL
2019 Bloomberg Gender-Equality Index
2nd ASEAN Corporate Governance Awards
• ASEAN’s Top 5 and Top 50 Publicly Listed
Companies
• Singapore’s Top 3 Publicly Listed
Companies
SIAS Investors’ Choice Awards 2018
• Golden Circle Award for Most
Transparent Company
• Shareholder Communication Excellence
Award for Big-cap Companies
• Singapore Corporate Governance
Awards for Big-cap Companies and
Diversity
• Shareholder Communication Excellence
Thomson Reuters IX Global Diversity and
Inclusion Index 2018
OPTUS
Australian Business Community Network
Award
• Overall Highest Number of ABCN mentors
Award for Big-cap Companies
in 2017
Asia Sustainability Reporting
Awards 2018
• Asia’s Best Diversity Reporting
• Asia’s Best Sustainability Report
• Asia’s Most Transparent Report
Community Chest Awards 2018
• Charity Platinum Award
• Volunteer Partner Award
FTSE4Good Index
Singapore Environment Council’s
Environmental Achievement Awards
• EC-STATS Asia-Pacific Singapore
Environmental Achievement Award
(Services)
Singapore Governance and Transparency
Index 2018
Sustainable Business Awards Singapore
2018
• Best Strategy and Sustainability
SGX Sustainability Leaders Index and
Enhanced Index
Management
• Best Climate Change
Singapore Telecommunications Limited | Annual Report 2019
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Governance and
Sustainability Philosophy
Making the future
better for our
stakeholders
Good governance and responsible business practices are fundamental
to our sustainable, long-term growth and value creation for our
stakeholders. We strive to harness advances in digital technologies
to improve lives and to leave the smallest environmental footprint
possible as part of global eff orts to limit climate change because
reimagining the future means making it better as well.
55
Singapore Telecommunications Limited | Annual Report 2019
56
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
12 DIRECTORS:
10 independent Directors and
2 non-independent Directors
Key Objective
To create value for
shareholders and to ensure the
long-term success of the Group
57
CHAIRMAN
BOBBY CHIN
4 independent Directors
AUDIT COMMITTEE
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
CHAIRMAN
LOW CHECK KIAN
3 independent Directors and
1 non-independent Director
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
CHAIRMAN
PETER MASON AM
3 independent Directors and
1 non-independent Director
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
CHAIRMAN
SIMON ISRAEL
4 independent Directors and
1 non-independent Director
CHAIRMAN
TEO SWEE LIAN
4 independent Directors
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
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,
CEO International,
CEO Group Digital Life,
Group Chief Corporate Officer,
Group CFO,
Group Chief Human Resources
Officer,
Group Chief Information
Officer, and
Group Chief Technology Officer
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.
Singtel is listed on the Singapore Exchange Securities
Trading Limited (SGX) and has complied in all material
respects with the principles and provisions in the
Singapore Code of Corporate Governance 2018
(2018 Code). This report sets out Singtel’s key
corporate governance practices with reference
to the 2018 Code. We provide a summary of our
compliance with the express disclosure requirements
in the 2018 Code on pages 84 to 86.
RECOGNITION OF SINGTEL’S COMMITMENT TO BEST PRACTICES IN CORPORATE GOVERNANCE
ASEAN CORPORATE
GOVERNANCE
AWARDS 2018
(cid:843)(cid:912)(cid:1)(cid:87)(cid:25)(cid:1)(cid:62)(cid:904)(cid:361)(cid:912)(cid:93)(cid:342)(cid:354)(cid:912)(cid:733)(cid:912)(cid:80)(cid:373)(cid:286)(cid:329)(cid:312)(cid:287)(cid:329)(cid:394)(cid:912)
Listed Companies
(cid:843)(cid:912)(cid:1)(cid:87)(cid:25)(cid:1)(cid:62)(cid:904)(cid:361)(cid:912)(cid:93)(cid:342)(cid:354)(cid:912)(cid:733)(cid:728)(cid:912)(cid:80)(cid:373)(cid:286)(cid:329)(cid:312)(cid:287)(cid:329)(cid:394)(cid:912)
Listed Companies
(cid:843)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:271)(cid:354)(cid:342)(cid:357)(cid:296)(cid:904)(cid:361)(cid:912)(cid:93)(cid:342)(cid:354)(cid:912)(cid:731)(cid:912)(cid:80)(cid:373)(cid:286)(cid:329)(cid:312)(cid:287)(cid:329)(cid:394)(cid:912)
Listed Companies
GOVERNANCE AND
TRANSPARENCY
INDEX 2018
(cid:843)(cid:912)(cid:729) st in Singapore
SINGAPORE
CORPORATE
AWARDS 2018
(cid:843)(cid:912)(cid:15)(cid:296)(cid:361)(cid:368)(cid:912)(cid:16)(cid:310)(cid:312)(cid:296)(cid:305)(cid:912)(cid:34)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)
Officer
(Companies with
S$1 billion and above in
market capitalisation)
SIAS INVESTORS’
CHOICE AWARDS 2018
(cid:843)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:271)(cid:354)(cid:342)(cid:357)(cid:296)(cid:912)(cid:16)(cid:342)(cid:357)(cid:354)(cid:342)(cid:357)(cid:271)(cid:368)(cid:296)(cid:912)
Governance Award (Big Cap)
(cid:843)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:271)(cid:354)(cid:342)(cid:357)(cid:296)(cid:912)(cid:16)(cid:342)(cid:357)(cid:354)(cid:342)(cid:357)(cid:271)(cid:368)(cid:296)(cid:912)
Governance Award (Diversity)
(cid:843)(cid:912)(cid:61)(cid:342)(cid:361)(cid:368)(cid:912)(cid:93)(cid:357)(cid:271)(cid:335)(cid:361)(cid:354)(cid:271)(cid:357)(cid:296)(cid:335)(cid:368)(cid:912)
Company Award (Overall)
(cid:843)(cid:912)(cid:61)(cid:342)(cid:361)(cid:368)(cid:912)(cid:93)(cid:357)(cid:271)(cid:335)(cid:361)(cid:354)(cid:271)(cid:357)(cid:296)(cid:335)(cid:368)(cid:912)(cid:16)(cid:342)(cid:334)(cid:354)(cid:271)(cid:335)(cid:394)(cid:912)
Award (Telecommunications Services)
(cid:843)(cid:912)(cid:87)(cid:310)(cid:271)(cid:357)(cid:296)(cid:310)(cid:342)(cid:329)(cid:292)(cid:296)(cid:357)(cid:912)(cid:16)(cid:342)(cid:334)(cid:334)(cid:373)(cid:335)(cid:312)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)
Excellence Award (Big Cap)
DIRECTORS’ ATTENDANCE AT BOARD/GENERAL MEETINGS DURING THE FINANCIAL YEAR ENDED 31 MARCH 2019 (1)
Name of Director
Simon Israel
Chua Sock Koong
Gautam Banerjee
Dominic Barton (2)
Bobby Chin
Venkataraman (Venky) Ganesan
Bradley Horowitz (3)
Gail Kelly (4)
Low Check Kian
Peter Mason AM (5)
Christina Ong
Teo Swee Lian
Peter Ong (6)
Scheduled Board Meetings
Number of
Meetings Attended
Number of
Meetings Held
Independent Directors’ Meeting
Number of
Meetings Held
Number of
Meetings Attended
Annual General Meeting
6
6
6
1
6
6
2
2
6
6
6
6
1
6
6
6
–
6
5
2
2
6
6
6
6
1
–
–
1
–
1
1
–
–
1
1
1
1
–
–
–
1
–
1
1
–
–
1
1
1
1
–
✓
✓
✓
–
✓
✓
–
–
✓
✓
✓
✓
✓
Notes:
(1) Refers to meetings held/attended while each Director was in office.
(2) Mr Dominic Barton was appointed to the Board on 25 March 2019.
(3) Mr Bradley Horowitz was appointed to the Board on 26 December 2018.
(4) Mrs Gail Kelly was appointed to the Board on 26 December 2018.
(5) Member of the Order of Australia.
(6) Mr Peter Ong stepped down from the Board following the conclusion of the AGM on 24 July 2018.
Singapore Telecommunications Limited | Annual Report 2019
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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.
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 Board
also sets aside time for the non-executive Directors to
meet without any executives present. The independent
Directors meet at least once a year, at a meeting chaired
by the Lead Independent Director. The Board holds
approximately six scheduled meetings each year, and
may also hold ad hoc meetings as and when warranted
by particular circumstances. Six Board meetings were
held in the financial year ended 31 March 2019.
Material items that require Board approval include:
(cid:843)(cid:912) (cid:93)(cid:310)(cid:296)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:904)(cid:361)(cid:912)(cid:361)(cid:368)(cid:357)(cid:271)(cid:368)(cid:296)(cid:306)(cid:312)(cid:287)(cid:912)(cid:354)(cid:329)(cid:271)(cid:335)(cid:361)
(cid:843)(cid:912) (cid:93)(cid:310)(cid:296)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:904)(cid:361)(cid:912)(cid:271)(cid:335)(cid:335)(cid:373)(cid:271)(cid:329)(cid:912)(cid:342)(cid:354)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:354)(cid:329)(cid:271)(cid:335)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:286)(cid:373)(cid:292)(cid:306)(cid:296)(cid:368)
(cid:843)(cid:912) (cid:34)(cid:373)(cid:329)(cid:329)(cid:891)(cid:394)(cid:296)(cid:271)(cid:357)(cid:845)(cid:912)(cid:310)(cid:271)(cid:329)(cid:305)(cid:891)(cid:394)(cid:296)(cid:271)(cid:357)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:356)(cid:373)(cid:271)(cid:357)(cid:368)(cid:296)(cid:357)(cid:329)(cid:394)(cid:912)(cid:439)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:357)(cid:296)(cid:361)(cid:373)(cid:329)(cid:368)(cid:361)
(cid:843)(cid:912) (cid:21)(cid:312)(cid:387)(cid:312)(cid:292)(cid:296)(cid:335)(cid:292)(cid:912)(cid:354)(cid:342)(cid:329)(cid:312)(cid:287)(cid:394)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:354)(cid:271)(cid:394)(cid:342)(cid:373)(cid:368)
(cid:843)(cid:912) (cid:41)(cid:361)(cid:361)(cid:373)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:361)(cid:310)(cid:271)(cid:357)(cid:296)(cid:361)
(cid:843)(cid:912) (cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:361)(cid:373)(cid:287)(cid:287)(cid:296)(cid:361)(cid:361)(cid:312)(cid:342)(cid:335)(cid:912)(cid:354)(cid:329)(cid:271)(cid:335)(cid:361)
(cid:843)(cid:912) (cid:87)(cid:373)(cid:287)(cid:287)(cid:296)(cid:361)(cid:361)(cid:312)(cid:342)(cid:335)(cid:912)(cid:354)(cid:329)(cid:271)(cid:335)(cid:361)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:87)(cid:296)(cid:335)(cid:312)(cid:342)(cid:357)(cid:912)(cid:61)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:845)(cid:912)(cid:312)(cid:335)(cid:287)(cid:329)(cid:373)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)
appointment of, and compensation for, Group CEO,
CEOs, Group Chief Corporate Officer and Group CFO
(cid:843)(cid:912) (cid:98)(cid:335)(cid:292)(cid:296)(cid:357)(cid:329)(cid:394)(cid:312)(cid:335)(cid:306)(cid:912)(cid:354)(cid:357)(cid:312)(cid:335)(cid:287)(cid:312)(cid:354)(cid:329)(cid:296)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:329)(cid:342)(cid:335)(cid:306)(cid:891)(cid:368)(cid:296)(cid:357)(cid:334)(cid:912)(cid:312)(cid:335)(cid:287)(cid:296)(cid:335)(cid:368)(cid:312)(cid:387)(cid:296)(cid:912)(cid:361)(cid:287)(cid:310)(cid:296)(cid:334)(cid:296)(cid:361)(cid:912)
for employees
(cid:843)(cid:912) (cid:93)(cid:310)(cid:296)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:904)(cid:361)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:271)(cid:354)(cid:354)(cid:296)(cid:368)(cid:312)(cid:368)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:368)(cid:342)(cid:329)(cid:296)(cid:357)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:292)(cid:312)(cid:431)(cid:296)(cid:357)(cid:296)(cid:335)(cid:368)(cid:912)
categories of risk, as well as risk strategy and the
policies for management of material risks
(cid:843)(cid:912) (cid:1)(cid:287)(cid:356)(cid:373)(cid:312)(cid:361)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:292)(cid:312)(cid:361)(cid:354)(cid:342)(cid:361)(cid:271)(cid:329)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:312)(cid:335)(cid:387)(cid:296)(cid:361)(cid:368)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)(cid:912)(cid:296)(cid:393)(cid:287)(cid:296)(cid:296)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)
certain material limits
(cid:843)(cid:912) (cid:16)(cid:271)(cid:354)(cid:312)(cid:368)(cid:271)(cid:329)(cid:912)(cid:296)(cid:393)(cid:354)(cid:296)(cid:335)(cid:292)(cid:312)(cid:368)(cid:373)(cid:357)(cid:296)(cid:361)(cid:912)(cid:296)(cid:393)(cid:287)(cid:296)(cid:296)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)(cid:287)(cid:296)(cid:357)(cid:368)(cid:271)(cid:312)(cid:335)(cid:912)(cid:334)(cid:271)(cid:368)(cid:296)(cid:357)(cid:312)(cid:271)(cid:329)(cid:912)(cid:329)(cid:312)(cid:334)(cid:312)(cid:368)(cid:361)(cid:912)
Attendance at Board or Board Committee meetings
via telephone or video conference is permitted by
Singtel’s Constitution.
Typically, one Board meeting a year is held in Australia,
where one of Singtel’s key subsidiaries, Optus, is located.
In addition, the Board makes an overseas trip annually to
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. 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.
A record of the Directors’ attendance at Board meetings
during the financial year ended 31 March 2019 is set out
59
on page 58. Directors who are unable to attend a Board
meeting are provided with the briefing materials and can
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 issues relevant 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.
(cid:98)(cid:354)(cid:342)(cid:335)(cid:912)(cid:271)(cid:354)(cid:354)(cid:342)(cid:312)(cid:335)(cid:368)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:845)(cid:912)(cid:296)(cid:271)(cid:287)(cid:310)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:912)(cid:357)(cid:296)(cid:287)(cid:296)(cid:312)(cid:387)(cid:296)(cid:361)(cid:912)
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, 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,
BOARD COMPOSITION, DIVERSITY AND BALANCE
8%
8%
Independence
Independent,
non-executive
directors
(cid:62)(cid:342)(cid:335)(cid:891)(cid:312)(cid:335)(cid:292)(cid:296)(cid:354)(cid:296)(cid:335)(cid:292)(cid:296)(cid:335)(cid:368)(cid:845)(cid:912)
non-executive
directors
Executive director/
GCEO
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 2019, the
development/training programmes for Directors included
the following:
(cid:843)(cid:912)(cid:912)(cid:93)(cid:310)(cid:296)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)(cid:912)(cid:354)(cid:271)(cid:357)(cid:368)(cid:312)(cid:287)(cid:312)(cid:354)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)(cid:312)(cid:335)(cid:912)(cid:271)(cid:335)(cid:912)(cid:271)(cid:335)(cid:335)(cid:373)(cid:271)(cid:329)(cid:912)(cid:342)(cid:431)(cid:361)(cid:312)(cid:368)(cid:296)(cid:912)
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.
(cid:843)(cid:912) (cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)(cid:912)(cid:388)(cid:296)(cid:357)(cid:296)(cid:912)(cid:312)(cid:335)(cid:387)(cid:312)(cid:368)(cid:296)(cid:292)(cid:912)(cid:368)(cid:342)(cid:912)(cid:334)(cid:296)(cid:296)(cid:368)(cid:912)(cid:388)(cid:312)(cid:368)(cid:310)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:93)(cid:296)(cid:287)(cid:310)(cid:335)(cid:342)(cid:329)(cid:342)(cid:306)(cid:394)(cid:912)
Advisory Panel, during which they were also updated
by representatives from companies in the digital/
technology space on emerging trends and technologies
relevant to the Group’s business.
(cid:843)(cid:912) (cid:93)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:387)(cid:312)(cid:361)(cid:312)(cid:368)(cid:296)(cid:292)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:68)(cid:354)(cid:368)(cid:373)(cid:361)(cid:912)(cid:287)(cid:271)(cid:334)(cid:354)(cid:373)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)(cid:87)(cid:394)(cid:292)(cid:335)(cid:296)(cid:394)(cid:845)(cid:912)
Australia, and met with business leaders and key
customers there.
(cid:843)(cid:912) (cid:61)(cid:296)(cid:334)(cid:286)(cid:296)(cid:357)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:271)(cid:368)(cid:368)(cid:296)(cid:335)(cid:292)(cid:296)(cid:292)(cid:912)(cid:305)(cid:342)(cid:357)(cid:373)(cid:334)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:292)(cid:312)(cid:271)(cid:329)(cid:342)(cid:306)(cid:373)(cid:296)(cid:361)(cid:912)
with experts and senior business leaders on issues
facing boards and board practice.
(cid:843)(cid:912) (cid:93)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:388)(cid:271)(cid:361)(cid:912)(cid:373)(cid:354)(cid:292)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)(cid:342)(cid:335)(cid:912)(cid:287)(cid:310)(cid:271)(cid:335)(cid:306)(cid:296)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:342)(cid:292)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)
Corporate Governance and related regulations.
33%
Male directors
Female directors
Gender
Diversity
84%
67%
Singapore Telecommunications Limited | Annual Report 2019
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Corporate Governance
There are 12 Directors on the Board, comprising 10
non-executive independent Directors, one non-executive
non-independent Director and one executive Director.
The Board has appointed a Lead Independent Director.
A summary of the role of the Lead Independent Director
is set out on page 63. The profiles of the Directors are set
out on pages 15 to 20.
The size and composition of the Board are reviewed
from time to time by the Corporate Governance and
(cid:62)(cid:342)(cid:334)(cid:312)(cid:335)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:16)(cid:342)(cid:334)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:296)(cid:912)(cid:873)(cid:16)(cid:35)(cid:62)(cid:16)(cid:874)(cid:850)(cid:912)(cid:93)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:361)(cid:296)(cid:296)(cid:326)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)
ensure that the size of the Board is conducive for effective
discussion and decision making, and that the Board
has an appropriate number of independent Directors.
(cid:93)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:271)(cid:329)(cid:361)(cid:342)(cid:912)(cid:271)(cid:312)(cid:334)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:334)(cid:271)(cid:312)(cid:335)(cid:368)(cid:271)(cid:312)(cid:335)(cid:912)(cid:271)(cid:912)(cid:292)(cid:312)(cid:387)(cid:296)(cid:357)(cid:361)(cid:312)(cid:368)(cid:394)(cid:912)(cid:342)(cid:305)(cid:912)(cid:296)(cid:393)(cid:354)(cid:296)(cid:357)(cid:368)(cid:312)(cid:361)(cid:296)(cid:845)(cid:912)
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 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
(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:287)(cid:342)(cid:334)(cid:354)(cid:342)(cid:361)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:361)(cid:373)(cid:287)(cid:287)(cid:296)(cid:361)(cid:361)(cid:312)(cid:342)(cid:335)(cid:912)(cid:354)(cid:329)(cid:271)(cid:335)(cid:335)(cid:312)(cid:335)(cid:306)(cid:845)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)
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
(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:388)(cid:310)(cid:296)(cid:335)(cid:296)(cid:387)(cid:296)(cid:357)(cid:912)(cid:312)(cid:368)(cid:912)(cid:361)(cid:296)(cid:296)(cid:326)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:312)(cid:292)(cid:296)(cid:335)(cid:368)(cid:312)(cid:305)(cid:394)(cid:912)(cid:271)(cid:912)(cid:335)(cid:296)(cid:388)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)
appointment to the Board, (c) the Board appoints at
(cid:329)(cid:296)(cid:271)(cid:361)(cid:368)(cid:912)(cid:342)(cid:335)(cid:296)(cid:912)(cid:305)(cid:296)(cid:334)(cid:271)(cid:329)(cid:296)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:845)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:873)(cid:292)(cid:874)(cid:912)(cid:368)(cid:310)(cid:296)(cid:357)(cid:296)(cid:912)(cid:312)(cid:361)(cid:912)
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,
six of Singtel’s 12 Directors are from, and have extensive
experience in, jurisdictions outside Singapore, namely, the
Chairman, Mr Simon Israel, and non-executive Directors,
Messrs Dominic Barton, Venky Ganesan, Bradley Horowitz
and Peter Mason AM, and Mrs Gail Kelly. In relation to
gender diversity, 33% of the Singtel Board, or four out
of the 12 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
(cid:93)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:845)(cid:912)(cid:368)(cid:271)(cid:326)(cid:312)(cid:335)(cid:306)(cid:912)(cid:312)(cid:335)(cid:368)(cid:342)(cid:912)(cid:271)(cid:287)(cid:287)(cid:342)(cid:373)(cid:335)(cid:368)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:387)(cid:312)(cid:296)(cid:388)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:845)(cid:912)
assesses the independence of each Director annually
in accordance with the guidance in the 2018 Code.
A Director is considered independent if he has no
relationship with the Company, its related corporations,
its substantial shareholders 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 listing rules of the Singapore Stock Exchange
and related Practice Guidance, 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; a Director
being on the Board for an aggregate period of more
than nine years; a Director providing to or receiving
from the Company or any of its subsidiaries significant
payments or material 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 to which the Company or any
of its subsidiaries made, or from which the Company or
any of its subsidiaries received, significant payments or
material services during the financial year in question or
the previous financial year.
61
The CGNC and the Board have assessed the
independence of each of the Directors in 2019. A summary
of the outcome of that assessment is set out below.
course of business to the Singtel Group. The Board is of
the view that the abovementioned relationships do not
interfere with the exercise of the Directors’ independent
business judgement in the best interests of Singtel.
Based on the declarations of independence provided
by the Directors and taking into account the guidance
in the 2018 Code, the Board has determined that
Ms Chua Sock Koong, Singtel’s Group CEO and Mr Simon
Israel, Chairman of the Singtel Board, are the only non-
independent Directors. All other members of the Board
are considered to be independent Directors. In line with
the Board’s Code of Conduct and Ethics, each member
of the CGNC and the Board recused himself or herself
from the CGNC’s and the Board’s deliberations
respectively on his or her own independence.
Mr Simon Israel is considered non-independent as
he had previously been deemed non-independent by
virtue of his previous roles as a non-executive director,
and subsequently executive director, of Temasek
Holdings (Private) Limited (Temasek). He stepped down
from Temasek in June 2011. Temasek has an interest of
approximately 52% as at 31 March 2019.
Mr Bobby Chin was appointed to the Singtel Board on
1 May 2012 as an independent Director and to the Board
of Directors 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 as a Director, 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.
Mr Bobby Chin, Mrs Christina Ong, Mr Low Check Kian
and Mr Gautam Banerjee are board members of
organisations that purchase services and/or equipment
from the Singtel Group in the ordinary course of
business. The Directors’ roles in those organisations
are non-executive in nature and they are not involved
in the day-to-day conduct of the business of those
organisations. In addition, Mrs Ong is a partner of Allen
& Gledhill LLP (A&G). A&G provides legal services to, and
receives fees from, the Singtel Group. However, Mrs Ong
has an interest of less than 5% in A&G. Mrs Ong is also
on the board of Oversea-Chinese Banking Corporation
Limited, which provides banking services in the ordinary
Mr Venky Ganesan is a director of BitSight Technologies,
Inc (BitSight). Singtel’s subsidiary, Singtel Innov8 Pte
Ltd, has an interest of less than 2% in BitSight. The
investment in BitSight by Singtel Innov8 Pte Ltd was
made independent of Mr Ganesan’s association with
Singtel. The Board is of the view that the abovementioned
relationships do not interfere with the exercise of
Mr Ganesan’s independent business judgement in the
best interests of Singtel.
Conflicts of Interest
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. Where relevant, the Directors have
complied with the provisions of the Code of Conduct and
Ethics, and such compliance has been duly recorded in
the minutes of meeting.
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.
Singapore Telecommunications Limited | Annual Report 2019
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Corporate Governance
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. 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
(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:850)(cid:912)(cid:93)(cid:310)(cid:296)(cid:912)(cid:357)(cid:342)(cid:329)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:56)(cid:296)(cid:271)(cid:292)(cid:912)(cid:41)(cid:335)(cid:292)(cid:296)(cid:354)(cid:296)(cid:335)(cid:292)(cid:296)(cid:335)(cid:368)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:912)
includes meeting with the independent Directors at least
annually. He provides feedback on the meeting(s) to
the Board and/or the Chairman as 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.
Board Membership
(cid:93)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:296)(cid:361)(cid:368)(cid:271)(cid:286)(cid:329)(cid:312)(cid:361)(cid:310)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:361)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:354)(cid:357)(cid:342)(cid:305)(cid:312)(cid:329)(cid:296)(cid:912)(cid:357)(cid:296)(cid:356)(cid:373)(cid:312)(cid:357)(cid:296)(cid:292)(cid:912)
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
(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:912)(cid:271)(cid:357)(cid:312)(cid:361)(cid:296)(cid:361)(cid:845)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:357)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:361)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:271)(cid:335)(cid:306)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:296)(cid:393)(cid:354)(cid:296)(cid:357)(cid:368)(cid:312)(cid:361)(cid:296)(cid:845)(cid:912)
skills and attributes of the Board and the composition of
(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:850)(cid:912)(cid:93)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:368)(cid:310)(cid:296)(cid:335)(cid:912)(cid:312)(cid:292)(cid:296)(cid:335)(cid:368)(cid:312)(cid:305)(cid:312)(cid:296)(cid:361)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:368)(cid:296)(cid:329)(cid:904)(cid:361)(cid:912)(cid:335)(cid:296)(cid:296)(cid:292)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
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.
(cid:93)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:368)(cid:271)(cid:326)(cid:296)(cid:361)(cid:912)(cid:305)(cid:271)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)(cid:912)(cid:361)(cid:373)(cid:287)(cid:310)(cid:912)(cid:271)(cid:361)(cid:912)(cid:271)(cid:368)(cid:368)(cid:296)(cid:335)(cid:292)(cid:271)(cid:335)(cid:287)(cid:296)(cid:845)(cid:912)
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
(cid:287)(cid:342)(cid:335)(cid:368)(cid:357)(cid:312)(cid:286)(cid:373)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:850)(cid:912)(cid:93)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:334)(cid:271)(cid:394)(cid:912)(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:368)(cid:342)(cid:912)
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
(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:845)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:287)(cid:342)(cid:335)(cid:361)(cid:312)(cid:292)(cid:296)(cid:357)(cid:912)(cid:271)(cid:912)(cid:387)(cid:271)(cid:357)(cid:312)(cid:296)(cid:368)(cid:394)(cid:912)
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
63
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 Annual General Meeting (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
(cid:342)(cid:305)(cid:912)(cid:312)(cid:368)(cid:361)(cid:912)(cid:357)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:912)(cid:354)(cid:357)(cid:342)(cid:287)(cid:296)(cid:361)(cid:361)(cid:845)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:292)(cid:296)(cid:287)(cid:312)(cid:292)(cid:296)(cid:361)(cid:912)(cid:388)(cid:310)(cid:296)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)(cid:342)(cid:357)(cid:912)(cid:335)(cid:342)(cid:368)(cid:912)
a Director is able to do so and whether he has been
adequately carrying 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 also provides
that (a) in support of their candidature for directorship
(cid:342)(cid:357)(cid:912)(cid:357)(cid:296)(cid:891)(cid:296)(cid:329)(cid:296)(cid:287)(cid:368)(cid:312)(cid:342)(cid:335)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:368)(cid:342)(cid:912)(cid:354)(cid:357)(cid:342)(cid:387)(cid:312)(cid:292)(cid:296)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:388)(cid:312)(cid:368)(cid:310)(cid:912)
details of other commitments and an indication of the
time involved, and (b) non-executive Directors should
(cid:287)(cid:342)(cid:335)(cid:361)(cid:373)(cid:329)(cid:368)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:310)(cid:271)(cid:312)(cid:357)(cid:334)(cid:271)(cid:335)(cid:912)(cid:342)(cid:357)(cid:912)(cid:287)(cid:310)(cid:271)(cid:312)(cid:357)(cid:334)(cid:271)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:286)(cid:296)(cid:305)(cid:342)(cid:357)(cid:296)(cid:912)
accepting any new appointments as Directors. There are
no alternate Directors on the Board.
The Company’s Constitution provides that a Director must
retire from office at the third 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
(cid:25)(cid:271)(cid:287)(cid:310)(cid:912)(cid:394)(cid:296)(cid:271)(cid:357)(cid:845)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:373)(cid:335)(cid:292)(cid:296)(cid:357)(cid:368)(cid:271)(cid:326)(cid:296)(cid:361)(cid:912)(cid:271)(cid:912)(cid:354)(cid:357)(cid:342)(cid:287)(cid:296)(cid:361)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:271)(cid:361)(cid:361)(cid:296)(cid:361)(cid:361)(cid:912)
the effectiveness of the Board, the Board Committees
and individual Directors. For the financial year ended
31 March 2019, as in previous years, an independent
external consultant (2019: Aon Hewitt Singapore) was
appointed to facilitate this process. The 2019 survey was
designed to provide an evaluation of the effectiveness
of the Board, Board Committees, Chairman and
individual Directors, as well as provide insights on
the Board culture. The Directors were requested to
complete evaluation questionnaires on matters such as
Board composition, Board processes, representation of
shareholders and environmental, social and governance
(ESG) issues, managing company performance, Board
strategy and priorities, Board Committee effectiveness,
CEO performance and succession planning, director
development and management, and risk management.
Senior management were also requested to complete
questionnaires covering the development/monitoring
of strategy, the relationship between the Board and
management, risk management, representation of
shareholders and ESG issues, and Board Committee
effectiveness.
In addition to the appraisal exercise, the contributions
and performance of each Director are assessed by
(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:271)(cid:361)(cid:912)(cid:354)(cid:271)(cid:357)(cid:368)(cid:912)(cid:342)(cid:305)(cid:912)(cid:312)(cid:368)(cid:361)(cid:912)(cid:354)(cid:296)(cid:357)(cid:312)(cid:342)(cid:292)(cid:312)(cid:287)(cid:912)(cid:357)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
composition of the Board and the various Board
(cid:16)(cid:342)(cid:334)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:296)(cid:361)(cid:850)(cid:912)(cid:41)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:354)(cid:357)(cid:342)(cid:287)(cid:296)(cid:361)(cid:361)(cid:845)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:312)(cid:361)(cid:912)(cid:271)(cid:286)(cid:329)(cid:296)(cid:912)(cid:368)(cid:342)(cid:912)(cid:312)(cid:292)(cid:296)(cid:335)(cid:368)(cid:312)(cid:305)(cid:394)(cid:912)
areas for improving the effectiveness of the Board and
Board Committees. The Board is 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
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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 the 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 advising the Board
on corporate and administrative matters, as well as
facilitating orientation and assisting with professional
development as required. 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:
(cid:843)(cid:912) (cid:1)(cid:373)(cid:292)(cid:312)(cid:368)(cid:912)(cid:16)(cid:342)(cid:334)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:296)(cid:912)(cid:873)(cid:1)(cid:16)(cid:874)
(cid:843)(cid:912) (cid:16)(cid:342)(cid:357)(cid:354)(cid:342)(cid:357)(cid:271)(cid:368)(cid:296)(cid:912)(cid:35)(cid:342)(cid:387)(cid:296)(cid:357)(cid:335)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:62)(cid:342)(cid:334)(cid:312)(cid:335)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:16)(cid:342)(cid:334)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:296)(cid:912)
(cid:873)(cid:16)(cid:35)(cid:62)(cid:16)(cid:874)
(cid:843)(cid:912) (cid:25)(cid:393)(cid:296)(cid:287)(cid:373)(cid:368)(cid:312)(cid:387)(cid:296)(cid:912)(cid:83)(cid:296)(cid:361)(cid:342)(cid:373)(cid:357)(cid:287)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:16)(cid:342)(cid:334)(cid:354)(cid:296)(cid:335)(cid:361)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:16)(cid:342)(cid:334)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:296)(cid:912)
(ERCC)
(cid:843)(cid:912) (cid:34)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:41)(cid:335)(cid:387)(cid:296)(cid:361)(cid:368)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:16)(cid:342)(cid:334)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:296)(cid:912)(cid:873)(cid:34)(cid:41)(cid:16)(cid:874)
(cid:843)(cid:912) (cid:83)(cid:312)(cid:361)(cid:326)(cid:912)(cid:16)(cid:342)(cid:334)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:296)(cid:912)(cid:873)(cid:83)(cid:16)(cid:874)
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 2019
is set out on page 70.
Audit Committee
MEMBERSHIP
Bobby Chin, committee chairman and independent
non-executive Director
Gautam Banerjee, independent non-executive
Director
Gail Kelly, independent non-executive Director
(appointed on 15 May 2019)
Christina Ong, independent non-executive Director
Note:
Peter Ong stepped down as a Director and AC member following the
conclusion of the AGM on 24 July 2018.
KEY OBJECTIVE
(cid:843)(cid:912) (cid:1)(cid:361)(cid:361)(cid:312)(cid:361)(cid:368)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:342)(cid:286)(cid:324)(cid:296)(cid:287)(cid:368)(cid:312)(cid:387)(cid:296)(cid:329)(cid:394)(cid:912)(cid:312)(cid:335)(cid:912)(cid:292)(cid:312)(cid:361)(cid:287)(cid:310)(cid:271)(cid:357)(cid:306)(cid:312)(cid:335)(cid:306)(cid:912)(cid:312)(cid:368)(cid:361)(cid:912)(cid:361)(cid:368)(cid:271)(cid:368)(cid:373)(cid:368)(cid:342)(cid:357)(cid:394)(cid:912)
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, 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.
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 AC has explicit authority to investigate any matter
within its terms of reference, and has full cooperation
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,
65
and reasonable resources to enable it to discharge its
functions. 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 objectively 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 external 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, remuneration and terms of engagement
of the external auditors. In addition, the AC approves the
Singtel Internal Audit Charter and reviews the internal
audit function for independence and effectiveness,
adequacy of resourcing, including staff qualifications
and experience, and its 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. Based on this, the AC is satisfied that
the internal audit function is independent, effective and
adequately resourced.
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 can 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 five 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 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.
Directors are also invited to attend relevant seminars
on changes to accounting standards and issues by
leading accounting firms.
Financial matters
The AC reviewed the financial statements of the Group
before the announcement of the Group’s quarterly and
full-year results. In the process, the AC reviewed the
key areas of management’s estimates and judgement
applied for key financial issues including revenue
recognition, taxation, goodwill impairment, and the joint
ventures’ and associates’ contingent liabilities, critical
accounting policies and any other significant matters
that might affect the integrity of the financial statements.
The AC also considered the report from the external
auditors, including their findings on the key areas of
audit focus. Significant matters that were discussed with
management, internal and external auditors have been
included as key audit matters (KAMs) in the Independent
Auditors’ Report for the financial year ended 31 March
2019. Refer to pages 131 to 136 of this Annual Report.
The AC took into consideration the approach and
methodology applied in the valuation of acquired
businesses, as well as the reasonableness of the
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estimates and key assumptions used. In addition to the
views from the external auditors, subject matter experts
including external tax specialists and legal experts,
were consulted. The AC concluded that management’s
accounting treatment and estimates in each of the KAMs
were appropriate.
The information included in the Annual Report, excluding
the Financial Statements and Independent Auditors’
Report, was provided to the external auditors after the
Independent Auditors’ Report date. The external auditors
have provided a written confirmation to the AC that they
have completed the work in accordance with SSA 720
(Revised), The Auditor’s Responsibilities Relating to Other
Information, and they have noted no exception. A copy
of the charter of the AC is available on the corporate
governance page on the Company’s website at www.
singtel.com/about-us/company/corporate-governance.
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
Teo Swee Lian, independent non-executive Director
KEY OBJECTIVES
(cid:843)(cid:912) (cid:25)(cid:361)(cid:368)(cid:271)(cid:286)(cid:329)(cid:312)(cid:361)(cid:310)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:354)(cid:357)(cid:342)(cid:439)(cid:329)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:334)(cid:296)(cid:334)(cid:286)(cid:296)(cid:357)(cid:361)
(cid:843)(cid:912) (cid:61)(cid:271)(cid:326)(cid:296)(cid:912)(cid:357)(cid:296)(cid:287)(cid:342)(cid:334)(cid:334)(cid:296)(cid:335)(cid:292)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:342)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
appointment, re-nomination and retirement of
Directors
(cid:843)(cid:912) (cid:83)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:312)(cid:335)(cid:292)(cid:296)(cid:354)(cid:296)(cid:335)(cid:292)(cid:296)(cid:335)(cid:287)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)
(cid:843)(cid:912) (cid:1)(cid:361)(cid:361)(cid:312)(cid:361)(cid:368)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:312)(cid:335)(cid:912)(cid:296)(cid:387)(cid:271)(cid:329)(cid:373)(cid:271)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
Board, Board Committees and Directors
(cid:843)(cid:912) (cid:21)(cid:296)(cid:387)(cid:296)(cid:329)(cid:342)(cid:354)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:342)(cid:334)(cid:354)(cid:271)(cid:335)(cid:394)(cid:904)(cid:361)(cid:912)(cid:287)(cid:342)(cid:357)(cid:354)(cid:342)(cid:357)(cid:271)(cid:368)(cid:296)(cid:912)
governance practices, taking into account relevant
local and international developments in the area of
corporate governance
(cid:93)(cid:310)(cid:296)(cid:912)(cid:368)(cid:296)(cid:357)(cid:334)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:357)(cid:296)(cid:305)(cid:296)(cid:357)(cid:296)(cid:335)(cid:287)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:354)(cid:357)(cid:342)(cid:387)(cid:312)(cid:292)(cid:296)(cid:912)(cid:368)(cid:310)(cid:271)(cid:368)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:361)(cid:310)(cid:271)(cid:329)(cid:329)(cid:912)(cid:287)(cid:342)(cid:334)(cid:354)(cid:357)(cid:312)(cid:361)(cid:296)(cid:912)(cid:271)(cid:368)(cid:912)(cid:329)(cid:296)(cid:271)(cid:361)(cid:368)(cid:912)(cid:368)(cid:310)(cid:357)(cid:296)(cid:296)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)(cid:845)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:334)(cid:271)(cid:324)(cid:342)(cid:357)(cid:312)(cid:368)(cid:394)(cid:912)
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
(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:850)
67
(cid:93)(cid:310)(cid:296)(cid:912)(cid:334)(cid:271)(cid:312)(cid:335)(cid:912)(cid:271)(cid:287)(cid:368)(cid:312)(cid:387)(cid:312)(cid:368)(cid:312)(cid:296)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:342)(cid:373)(cid:368)(cid:329)(cid:312)(cid:335)(cid:296)(cid:292)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
commentaries on “Board Composition, Diversity and
Balance”, “Board Membership” and “Board Performance”
from pages 60 to 64.
(cid:93)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:912)(cid:334)(cid:296)(cid:368)(cid:912)(cid:368)(cid:310)(cid:357)(cid:296)(cid:296)(cid:912)(cid:368)(cid:312)(cid:334)(cid:296)(cid:361)(cid:912)(cid:292)(cid:373)(cid:357)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:305)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:394)(cid:296)(cid:271)(cid:357)(cid:912)
ended 31 March 2019, 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
Gail Kelly, independent non-executive Director
(appointed on 26 December 2018)
Teo Swee Lian, independent non-executive Director
KEY OBJECTIVES
(cid:843)(cid:912) (cid:68)(cid:387)(cid:296)(cid:357)(cid:361)(cid:296)(cid:296)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:296)(cid:334)(cid:373)(cid:335)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:271)(cid:335)(cid:292)
Senior Management
(cid:843)(cid:912) (cid:87)(cid:296)(cid:368)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:912)(cid:357)(cid:296)(cid:334)(cid:373)(cid:335)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:305)(cid:357)(cid:271)(cid:334)(cid:296)(cid:388)(cid:342)(cid:357)(cid:326)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
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 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.
Finance and Investment Committee
MEMBERSHIP
Simon Israel, committee chairman and
non-executive Chairman of the Singtel Board
Dominic Barton, independent non-executive Director
(appointed on 15 May 2019)
Venky Ganesan, independent non-executive Director
Bradley Horowitz, independent non-executive Director
(appointed on 26 December 2018)
Low Check Kian, independent non-executive Director
KEY OBJECTIVES
(cid:843)(cid:912) (cid:80)(cid:357)(cid:342)(cid:387)(cid:312)(cid:292)(cid:296)(cid:912)(cid:271)(cid:292)(cid:387)(cid:312)(cid:361)(cid:342)(cid:357)(cid:394)(cid:912)(cid:361)(cid:373)(cid:354)(cid:354)(cid:342)(cid:357)(cid:368)(cid:912)(cid:342)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:292)(cid:296)(cid:387)(cid:296)(cid:329)(cid:342)(cid:354)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:342)(cid:305)(cid:912)
the Singtel Group’s overall strategy and on strategic
issues for the Singapore and international businesses
(cid:843)(cid:912) (cid:16)(cid:342)(cid:335)(cid:361)(cid:312)(cid:292)(cid:296)(cid:357)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:387)(cid:296)(cid:912)(cid:312)(cid:335)(cid:387)(cid:296)(cid:361)(cid:368)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:292)(cid:312)(cid:387)(cid:296)(cid:361)(cid:368)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)
(cid:843)(cid:912) (cid:83)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:387)(cid:296)(cid:912)(cid:287)(cid:310)(cid:271)(cid:335)(cid:306)(cid:296)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:368)(cid:296)(cid:329)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:904)(cid:361)(cid:912)
investment and treasury policies
(cid:843)(cid:912) (cid:25)(cid:387)(cid:271)(cid:329)(cid:373)(cid:271)(cid:368)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:387)(cid:296)(cid:912)(cid:271)(cid:335)(cid:394)(cid:912)(cid:439)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:335)(cid:306)(cid:912)(cid:342)(cid:431)(cid:296)(cid:357)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
banking facilities and manage the Singtel Group’s
liabilities in line with the Singtel Board’s policies
and directives
(cid:843)(cid:912) (cid:68)(cid:387)(cid:296)(cid:357)(cid:361)(cid:296)(cid:296)(cid:912)(cid:271)(cid:335)(cid:394)(cid:912)(cid:342)(cid:335)(cid:891)(cid:334)(cid:271)(cid:357)(cid:326)(cid:296)(cid:368)(cid:912)(cid:361)(cid:310)(cid:271)(cid:357)(cid:296)(cid:912)(cid:357)(cid:296)(cid:354)(cid:373)(cid:357)(cid:287)(cid:310)(cid:271)(cid:361)(cid:296)(cid:361)(cid:912)(cid:354)(cid:373)(cid:357)(cid:361)(cid:373)(cid:271)(cid:335)(cid:368)(cid:912)
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 six times during the financial year ended
31 March 2019.
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 76 to 83.
The ERCC met four times during the financial year ended
31 March 2019.
Singapore Telecommunications Limited | Annual Report 2019
68
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Corporate Governance
Risk Committee
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, Mrs Gail Kelly, Mr John Morschel
and Mr Paul O’Sullivan. The OAC reviews strategic
business issues relating to the Australian business.
The TAP advises the Board on developments, issues
and emerging trends in the technology space. The TAP
comprises distinguished international members and is
chaired by Mr Venky Ganesan. The other members of
the Panel are Mr Manik Gupta, Mr Bradley Horowitz
and Mr Koh Boon Hwee.
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,
CEO International, CEO Group Digital Life, Group Chief
Corporate Officer, Group CFO, Group Chief Human
Resources Officer, Group Chief Information Officer and
Group Chief Technology Officer.
The Management Committee meets every week to
review and direct Management on operational policies
and activities.
MEMBERSHIP
Teo Swee Lian, committee chairman and
independent non-executive Director
Gautam Banerjee, independent non-executive
Director
Dominic Barton, independent non-executive Director
(appointed on 15 May 2019)
Bobby Chin, independent non-executive Director
Note:
Peter Ong stepped down as a Director and RC member following the
conclusion of the AGM on 24 July 2018.
KEY OBJECTIVES
(cid:843)(cid:912) (cid:1)(cid:361)(cid:361)(cid:312)(cid:361)(cid:368)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:312)(cid:335)(cid:912)(cid:305)(cid:373)(cid:329)(cid:439)(cid:329)(cid:329)(cid:312)(cid:335)(cid:306)(cid:912)(cid:312)(cid:368)(cid:361)(cid:912)(cid:357)(cid:296)(cid:361)(cid:354)(cid:342)(cid:335)(cid:361)(cid:312)(cid:286)(cid:312)(cid:329)(cid:312)(cid:368)(cid:312)(cid:296)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)
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
(cid:357)(cid:296)(cid:287)(cid:342)(cid:334)(cid:334)(cid:296)(cid:335)(cid:292)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:35)(cid:62)(cid:16)(cid:850)(cid:912)(cid:93)(cid:310)(cid:296)(cid:357)(cid:296)(cid:912)(cid:312)(cid:361)(cid:912)(cid:271)(cid:368)(cid:912)(cid:329)(cid:296)(cid:271)(cid:361)(cid:368)(cid:912)(cid:342)(cid:335)(cid:296)(cid:912)
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 2019.
69
DIRECTORS’ BOARD COMMITTEE MEMBERSHIPS AND ATTENDANCE AT BOARD COMMITTEE MEETINGS
DURING THE FINANCIAL YEAR ENDED 31 MARCH 2019 (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
–
5
5
–
5
–
–
–
–
–
5
–
2
–
5
5
–
5
–
–
–
–
–
5
–
2
3
3
–
–
–
–
–
–
3
–
3
3
–
3
3
–
–
–
–
–
–
3
–
3
3
–
4
4
–
–
–
–
–
1
–
4
–
4
–
4
4
–
–
–
–
–
1
–
4
–
4
–
6
6
–
–
–
6
1
–
6
–
–
–
–
6
6
–
–
–
6
1
–
6
–
–
–
–
–
3
3
–
3
–
–
–
–
–
–
3
–
–
3
3
–
3
–
–
–
–
–
–
3
–
Name of Director
Simon Israel
Chua Sock Koong (2)
Gautam Banerjee
Dominic Barton (3)
Bobby Chin
Venky Ganesan
Bradley Horowitz (4)
Gail Kelly (5)
Low Check Kian
Peter Mason AM
Christina Ong
Teo Swee Lian
Peter Ong (6)
Notes:
(1) Refers to meetings held/attended while each Director was in office.
(2) Ms Chua Sock Koong is not a member of the Board Committees, although she attended meetings of the Committees as appropriate.
(3) Mr Dominic Barton was appointed a member of the Finance and Investment Committee and the Risk Committee on 15 May 2019.
(4) Mr Bradley Horowitz was appointed a member of the Finance and Investment Committee on 26 December 2018.
(5) Mrs Gail Kelly was appointed a member of the Executive Resource and Compensation Committee and the Audit Committee on 26 December 2018 and
15 May 2019 respectively.
(6) Mr Peter Ong stepped down from the Singtel Board following the conclusion of the AGM on 24 July 2018.
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.
Internal Audit (IA)
Singtel IA comprises a team of 63 staff members,
including the Group Chief Internal Auditor. Singtel IA
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.
For the financial year ended 31 March 2019, 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,
compliance and information technology risks. This
certification covers Singtel and the subsidiaries that
are under Singtel’s management control.
Singtel IA has a Quality Assurance programme to ensure
that its audit activities conform to the IIA Standards.
As part of the programme, external Quality Assurance
Reviews are carried out at least once every three years
by qualified professionals from an external organisation.
The external Quality Assurance Review was successfully
completed in 2018 and continues to meet or exceed the
IIA Standards in all key aspects.
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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
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 the performance and quality of its audit and the
independence and objectivity of the auditor, and
recommends its appointment to the Board.
During the year, in line with the Singtel Group policy on
periodic review of the appointment of external auditors,
the AC has recommended, and the Board has endorsed,
the appointment of KPMG as the external auditor for
Singtel Group for shareholders’ approval at the 2018
AGM. In recommending the appointment, an audit tender
exercise was conducted and proposals were considered
against specific evaluation criteria with assigned weights
relevant to Singtel Group’s requirements, taking into
account relevant guidelines on evaluation of external
auditors issued by the Singapore Accounting & Corporate
Regulatory Authority (ACRA), Singapore Exchange
(SGX) and the Audit Committee Guidance Committee
(ACGC) Guidebook. Singtel has complied with Rule 712
and Rule 715 of the SGX Listing Manual in relation to the
appointment of its external auditor.
In order to maintain the independence of the external
auditor, Singtel has developed policies and approval
processes regarding the types of non-audit services that
the external auditor can provide to the Singtel Group.
The AC reviewed the non-audit services provided by
the external auditor during the financial year and the
associated fees. The AC is satisfied that the independence
and objectivity 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 KPMG services for the financial year
ended 31 March 2019
Audit services
(cid:62)(cid:342)(cid:335)(cid:891)(cid:271)(cid:373)(cid:292)(cid:312)(cid:368)(cid:912)(cid:361)(cid:296)(cid:357)(cid:387)(cid:312)(cid:287)(cid:296)(cid:361)
(including audit-related services)
(S$ Mil)
4.9
0.9
Risk Management and Internal Control
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 2019, 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 30 categories of risks ranging from
environmental to operational and management decision-
making risks. The Group’s risk management and internal
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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 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 day-to-day management of
risks rest with Management. 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 ongoing basis.
The Risk Management Committee, including 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 within the Singtel Group, relating to financial,
operational, compliance and information technology
risks. Any material non-compliance or lapses in internal
controls are reported to the AC, including the remedial
measures recommended to address the risks identified.
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
and/or 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
information technology risk impact.
The Board has received assurance from the Group CEO
and Group CFO that, as at 31 March 2019, the Group’s
financial records have been properly maintained,
the financial statements give a true and fair view of
the Group’s financial position, operations and
performance, and that they are prepared in accordance
with accounting standards.
The Board has also received assurance from the
Group CEO, Group CFO and Management Committee
members that the Group’s internal controls and risk
management systems were adequate and effective
as at 31 March 2019 to address financial, operational,
compliance and information technology risks.
Based on the internal controls established and maintained
by the Group, work performed by internal and external
auditors, reviews performed by Management and the
various Board Committees as well as assurances from
members of the Management Committee, the Board,
with the concurrence of the AC, is of the opinion that the
Group’s internal controls and risk management systems
were adequate and effective as at 31 March 2019 to
address financial, operational, compliance and information
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technology risks, which the Group considers relevant and
material to its operations.
The systems of risk management and internal control
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 risk management
and internal control 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 89
to 99.
SHAREHOLDER RIGHTS AND ENGAGEMENT
Communication with Shareholders
Singtel is committed to delivering high standards
of corporate disclosure and transparency in our
communications with shareholders, analysts and other
stakeholders in the investment community. Singtel
provides timely, regular and relevant information
regarding the Group’s strategy, performance and
prospects to aid shareholders and investors in their
investment decisions.
Over the years, Singtel has won recognition from
investors, academia and finance media for its strong
emphasis on corporate governance and proactive
approach to shareholder communication and
engagement. It has also been rated highly on several
indices and rankings for its sustainability practices.
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,
dividend policy, bond programmes, credit ratings and
investor factsheets. Contact details of the IR department
are also listed on the website to facilitate dialogue and
queries from shareholders.
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 affirms or
updates the guidance to accurately reflect prevailing
market conditions at the end of each quarter.
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 500 investors in more than 200 meetings
and conference calls in Singapore, London, Taiwan,
(cid:62)(cid:296)(cid:388)(cid:912)(cid:119)(cid:342)(cid:357)(cid:326)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:342)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)(cid:306)(cid:329)(cid:342)(cid:286)(cid:271)(cid:329)(cid:912)(cid:305)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:287)(cid:296)(cid:335)(cid:368)(cid:357)(cid:296)(cid:361)(cid:850)(cid:912)(cid:113)(cid:310)(cid:312)(cid:329)(cid:296)(cid:912)(cid:368)(cid:310)(cid:296)(cid:361)(cid:296)(cid:912)
meetings are largely undertaken by Singtel’s Senior
Management, the Chairman and certain Board members
also meet with investors.
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
(cid:368)(cid:310)(cid:296)(cid:912)(cid:62)(cid:342)(cid:368)(cid:312)(cid:287)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:1)(cid:35)(cid:61)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:329)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)(cid:312)(cid:335)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:271)(cid:286)(cid:342)(cid:373)(cid:368)(cid:912)(cid:271)(cid:912)
month ahead, providing sufficient time for shareholders
(cid:368)(cid:342)(cid:912)(cid:357)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:62)(cid:342)(cid:368)(cid:312)(cid:287)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:1)(cid:35)(cid:61)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:271)(cid:354)(cid:354)(cid:342)(cid:312)(cid:335)(cid:368)(cid:912)(cid:354)(cid:357)(cid:342)(cid:393)(cid:312)(cid:296)(cid:361)(cid:912)(cid:368)(cid:342)
(cid:271)(cid:368)(cid:368)(cid:296)(cid:335)(cid:292)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:1)(cid:35)(cid:61)(cid:912)(cid:312)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:394)(cid:912)(cid:388)(cid:312)(cid:361)(cid:310)(cid:850)(cid:912)(cid:93)(cid:310)(cid:296)(cid:912)(cid:62)(cid:342)(cid:368)(cid:312)(cid:287)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:1)(cid:35)(cid:61)(cid:912)(cid:312)(cid:361)
also advertised in The Straits Times for the benefit of
shareholders. Singtel holds its general meetings at
central locations in Singapore with convenient access
(cid:368)(cid:342)(cid:912)(cid:354)(cid:373)(cid:286)(cid:329)(cid:312)(cid:287)(cid:912)(cid:368)(cid:357)(cid:271)(cid:335)(cid:361)(cid:354)(cid:342)(cid:357)(cid:368)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:850)(cid:912)(cid:98)(cid:335)(cid:292)(cid:296)(cid:357)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:368)(cid:296)(cid:329)(cid:904)(cid:361)(cid:912)(cid:16)(cid:342)(cid:335)(cid:361)(cid:368)(cid:312)(cid:368)(cid:373)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)
and pursuant to the Companies Act, the Central
Provident Fund Board and relevant intermediaries
(as defined in the Companies Act, Chapter 50) may
appoint more than two proxies to attend and vote
on their behalf. A registered shareholder who is not a
relevant intermediary may appoint up to two proxies.
There are separate resolutions at general meetings
on each substantially separate issue. Singtel currently
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does not implement voting in absentia by mail or
electronic means as the authentication of shareholder
identity and other related security and integrity issues
remain a concern.
At each AGM, the Group CEO delivers a presentation
to update shareholders on Singtel’s progress over the
past year. Directors and Senior Management are in
attendance to address queries and concerns about
Singtel. Singtel’s external auditor and counsel also attend
to help address shareholders’ queries relating to the
conduct of the audit and the auditor’s reports, as well
as clarify any points of law, regulation or meeting
procedure that may arise. Shareholders are informed of
the voting procedures and rules governing the meeting.
The minutes of all general meetings are posted on
Singtel’s IR website. The minutes disclose the names of
the Directors, Senior Management and, where relevant,
the external auditor and advisors 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.
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.
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
results are promptly filed with SGX on the same day
as the meeting.
MANAGING STAKEHOLDER RELATIONSHIPS
Singtel undertakes a formal stakeholder engagement
exercise, which is facilitated by a third party at least
once every three years to determine the environmental,
social and governance issues that are important to the
stakeholders. These issues form the materiality matrix
upon which targets, metrics, programmes and progress
are reviewed by and approved by the Board, before
they are published annually in Singtel’s sustainability
report. Singtel’s executives are also involved in ongoing
engagements with these same stakeholders through
various other channels.
Singtel’s approach to stakeholder engagement and
materiality assessment can be found at page 5 of the
Sustainability Report.
OTHER MATTERS
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
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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 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
(cid:312)(cid:335)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:357)(cid:296)(cid:329)(cid:271)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:342)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:368)(cid:296)(cid:329)(cid:850)(cid:912)(cid:98)(cid:335)(cid:292)(cid:296)(cid:357)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:354)(cid:342)(cid:329)(cid:312)(cid:287)(cid:394)(cid:845)(cid:912)(cid:354)(cid:296)(cid:357)(cid:361)(cid:342)(cid:335)(cid:361)(cid:912)
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 2018, 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 2019, save
(cid:271)(cid:361)(cid:912)(cid:334)(cid:271)(cid:394)(cid:912)(cid:286)(cid:296)(cid:912)(cid:292)(cid:312)(cid:361)(cid:287)(cid:329)(cid:342)(cid:361)(cid:296)(cid:292)(cid:912)(cid:342)(cid:335)(cid:912)(cid:87)(cid:35)(cid:118)(cid:62)(cid:296)(cid:368)(cid:912)(cid:342)(cid:357)(cid:912)(cid:310)(cid:296)(cid:357)(cid:296)(cid:312)(cid:335)(cid:850)
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
250. Singtel Internal Audit regularly reviews the IPT
entered into by the Singtel Group to verify the accuracy
and completeness of the IPT disclosure and ensure
compliance with the SGX reporting requirements under
Chapter 9 of the SGX Listing Manual. The report is
(cid:361)(cid:373)(cid:286)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:292)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:1)(cid:373)(cid:292)(cid:312)(cid:368)(cid:912)(cid:16)(cid:342)(cid:334)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:296)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:357)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:850)(cid:912)(cid:98)(cid:335)(cid:292)(cid:296)(cid:357)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
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 2019,
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 principles,
policies, standards and practices in the Code of Conduct
and Ethics, the Directors’ Manual and 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
75
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. Singtel
adopts a zero tolerance approach to bribery and
corruption in any form and this is set out in the code as
well as the Singtel Anti-Bribery and Corruption Policy
(ABC Policy). The code and the ABC Policy are posted on
Singtel’s internal website and a summarised version of
the code, as well as the ABC Policy, are 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
Singtel undertakes to investigate all complaints of
suspected fraud and corruption in an objective manner,
and has a whistle-blower policy and procedures that
provide employees and 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 loss to the Group or
damage 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 financial year ending 31 March
2020 so that Directors’ fees can be paid on a half-yearly
basis in arrears. No Director decides his own fees.
Save as mentioned below, there are no retirement benefit
schemes or share-based compensation schemes in place
for non-executive Directors.
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 2019
For the financial year ended 31 March 2019, the
Chairman received an all-inclusive fee of S$960,000
Singapore Telecommunications Limited | Annual Report 2019
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Corporate Governance
(excluding car-related benefits). The fee was paid
approximately two-thirds in cash and approximately
(cid:342)(cid:335)(cid:296)(cid:891)(cid:368)(cid:310)(cid:312)(cid:357)(cid:292)(cid:912)(cid:312)(cid:335)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:368)(cid:296)(cid:329)(cid:912)(cid:361)(cid:310)(cid:271)(cid:357)(cid:296)(cid:361)(cid:850)(cid:912)(cid:62)(cid:342)(cid:912)(cid:361)(cid:296)(cid:354)(cid:271)(cid:357)(cid:271)(cid:368)(cid:296)(cid:912)(cid:357)(cid:296)(cid:368)(cid:271)(cid:312)(cid:335)(cid:296)(cid:357)(cid:912)(cid:305)(cid:296)(cid:296)(cid:361)(cid:845)
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 2019
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
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
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)
77
The aggregate Directors’ fees paid to non-executive
Directors for the financial year ended 31 March 2019 was
S$2,432,053 (details are set out in the table below).
Name of Director
Simon Israel (1)
Gautam Banerjee
Dominic Barton (2)
Bobby Chin
Venky Ganesan (3)
Bradley Horowitz (4)
Gail Kelly (5)
Low Check Kian (6)
Peter Mason AM (7)
Christina Ong
Teo Swee Lian
Peter Ong (8)
Total
Director’s Fees
(S$)
960,000
170,000
2,070
195,000
193,000
62,588
47,927
192,000
191,000
170,000
195,000
53,468
2,432,053
Notes:
(1)
In addition to the Director’s fees set out above, Mr Simon Israel also
received car-related benefits (S$24,557).
(2) Mr Dominic Barton was appointed as a Director on 25 March 2019.
(3)
In addition to the Director’s fees set out above, Mr Venky Ganesan received
(cid:305)(cid:296)(cid:296)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:98)(cid:87)(cid:917)(cid:775)(cid:773)(cid:845)(cid:768)(cid:768)(cid:768)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:305)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:394)(cid:296)(cid:271)(cid:357)(cid:912)(cid:296)(cid:335)(cid:292)(cid:296)(cid:292)(cid:912)(cid:731)(cid:729)(cid:912)(cid:61)(cid:271)(cid:357)(cid:287)(cid:310)(cid:912)(cid:730)(cid:728)(cid:729)(cid:737)(cid:912)(cid:312)(cid:335)(cid:912)(cid:310)(cid:312)(cid:361)(cid:912)
capacity as the Chairman of the Technology Advisory Panel.
(4) Mr Bradley Horowitz was appointed as a Director and a member of the
Finance and Investment Committee and the Technology Advisory Panel
on 26 December 2018. In addition to the Director’s fees set out above,
(cid:61)(cid:357)(cid:912)(cid:15)(cid:357)(cid:271)(cid:292)(cid:329)(cid:296)(cid:394)(cid:912)(cid:39)(cid:342)(cid:357)(cid:342)(cid:388)(cid:312)(cid:368)(cid:399)(cid:912)(cid:357)(cid:296)(cid:287)(cid:296)(cid:312)(cid:387)(cid:296)(cid:292)(cid:912)(cid:305)(cid:296)(cid:296)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:98)(cid:87)(cid:917)(cid:773)(cid:768)(cid:845)(cid:768)(cid:768)(cid:768)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:305)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:394)(cid:296)(cid:271)(cid:357)(cid:912)
ended 31 March 2019 in his capacity as a member of the Technology
Advisory Panel.
(5) Mrs Gail Kelly was appointed as a Director and a member of the Executive
Resource and Compensation Committee on 26 December 2018. In addition
to the Director’s fees set out above, Mrs Gail Kelly received fees of S$25,000
for the financial year ended 31 March 2019 in her capacity as a member of
the Optus Advisory Committee.
In addition to the Director’s fees set out above, Mr Low Check Kian received
fees of S$35,000 for the financial year ended 31 March 2019 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 for the financial year ended 31 March 2019 in his
capacity as a member of the Optus Advisory Committee.
(7)
(6)
(8) Mr Peter Ong stepped down as a Director and member of the Audit
Committee and the Risk Committee following the conclusion of the AGM on
24 July 2018.
S$2,000
There is no employee of the Group who is an immediate
family member of a Director or the GCEO, and whose
remuneration exceeded S$100,000 during the financial
(cid:394)(cid:296)(cid:271)(cid:357)(cid:912)(cid:296)(cid:335)(cid:292)(cid:296)(cid:292)(cid:912)(cid:731)(cid:729)(cid:912)(cid:61)(cid:271)(cid:357)(cid:287)(cid:310)(cid:912)(cid:730)(cid:728)(cid:729)(cid:737)(cid:850)(cid:912)(cid:62)(cid:342)(cid:912)(cid:296)(cid:334)(cid:354)(cid:329)(cid:342)(cid:394)(cid:296)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:912)(cid:312)(cid:361)(cid:912)
a substantial shareholder of the Company.
(cid:34)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:119)(cid:296)(cid:271)(cid:357)(cid:912)(cid:25)(cid:335)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)(cid:731)(cid:729)(cid:912)(cid:61)(cid:271)(cid:357)(cid:287)(cid:310)(cid:912)(cid:730)(cid:728)(cid:730)(cid:728)
For the financial year ending 31 March 2020, it is
proposed that aggregate fees of up to S$2,950,000 be
S$3,000
paid to the Directors, which is the same as the amount
approved by shareholders for the financial year ended
31 March 2019. The proposed framework for Directors’
fees for the financial year ending 31 March 2020 is the
same as that for the financial year ended 31 March 2019.
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 of Senior
Management:
ALIGNMENT WITH SHAREHOLDERS’ INTERESTS
(cid:843)(cid:912) (cid:1)(cid:329)(cid:312)(cid:306)(cid:335)(cid:912)(cid:312)(cid:335)(cid:368)(cid:296)(cid:357)(cid:296)(cid:361)(cid:368)(cid:361)(cid:912)(cid:286)(cid:296)(cid:368)(cid:388)(cid:296)(cid:296)(cid:335)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
shareholders
(cid:843)(cid:912) (cid:87)(cid:296)(cid:329)(cid:296)(cid:287)(cid:368)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:912)(cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:334)(cid:296)(cid:368)(cid:357)(cid:312)(cid:287)(cid:361)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:271)(cid:335)(cid:335)(cid:373)(cid:271)(cid:329)(cid:912)
and long-term incentive plans to support business
strategies and ongoing enhancement of shareholder
value
(cid:843)(cid:912) (cid:1)(cid:329)(cid:329)(cid:342)(cid:388)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:335)(cid:287)(cid:296)(cid:891)(cid:357)(cid:296)(cid:329)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)(cid:287)(cid:329)(cid:271)(cid:388)(cid:286)(cid:271)(cid:287)(cid:326)(cid:912)(cid:312)(cid:305)(cid:912)(cid:329)(cid:342)(cid:335)(cid:306)(cid:891)(cid:368)(cid:296)(cid:357)(cid:334)(cid:912)
sustained performance targets are not met
(cid:843)(cid:912) (cid:25)(cid:361)(cid:368)(cid:271)(cid:286)(cid:329)(cid:312)(cid:361)(cid:310)(cid:912)(cid:361)(cid:342)(cid:373)(cid:335)(cid:292)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:361)(cid:368)(cid:357)(cid:373)(cid:287)(cid:368)(cid:373)(cid:357)(cid:296)(cid:292)(cid:912)(cid:305)(cid:373)(cid:335)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:342)(cid:912)(cid:296)(cid:335)(cid:361)(cid:373)(cid:357)(cid:296)(cid:912)
affordability
FAIR AND APPROPRIATE
(cid:843)(cid:912)(cid:912)(cid:68)(cid:431)(cid:296)(cid:357)(cid:912)(cid:287)(cid:342)(cid:334)(cid:354)(cid:296)(cid:368)(cid:312)(cid:368)(cid:312)(cid:387)(cid:296)(cid:912)(cid:354)(cid:271)(cid:287)(cid:326)(cid:271)(cid:306)(cid:296)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:271)(cid:368)(cid:368)(cid:357)(cid:271)(cid:287)(cid:368)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:368)(cid:271)(cid:312)(cid:335)(cid:912)
highly experienced and talented individuals
(cid:843)(cid:912) (cid:56)(cid:312)(cid:335)(cid:326)(cid:912)(cid:271)(cid:912)(cid:361)(cid:312)(cid:306)(cid:335)(cid:312)(cid:439)(cid:287)(cid:271)(cid:335)(cid:368)(cid:912)(cid:354)(cid:357)(cid:342)(cid:354)(cid:342)(cid:357)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)(cid:357)(cid:296)(cid:334)(cid:373)(cid:335)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:368)(cid:342)(cid:912)
performance, both on an annual and long-term basis
(cid:843)(cid:912) (cid:87)(cid:368)(cid:357)(cid:373)(cid:287)(cid:368)(cid:373)(cid:357)(cid:296)(cid:912)(cid:271)(cid:912)(cid:361)(cid:312)(cid:306)(cid:335)(cid:312)(cid:439)(cid:287)(cid:271)(cid:335)(cid:368)(cid:912)(cid:286)(cid:373)(cid:368)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:912)(cid:354)(cid:357)(cid:342)(cid:354)(cid:342)(cid:357)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)
remuneration to be at risk with symmetric upside and
downside
PAY-FOR-PERFORMANCE
(cid:843)(cid:912) (cid:61)(cid:296)(cid:271)(cid:361)(cid:373)(cid:357)(cid:296)(cid:912)(cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:286)(cid:271)(cid:361)(cid:296)(cid:292)(cid:912)(cid:342)(cid:335)(cid:912)(cid:271)(cid:912)(cid:310)(cid:342)(cid:329)(cid:312)(cid:361)(cid:368)(cid:312)(cid:287)(cid:912)(cid:286)(cid:271)(cid:329)(cid:271)(cid:335)(cid:287)(cid:296)(cid:292)(cid:912)
scorecard approach, comprising both financial and
non-financial metrics
(cid:843)(cid:912) (cid:25)(cid:335)(cid:361)(cid:373)(cid:357)(cid:296)(cid:912)(cid:368)(cid:271)(cid:357)(cid:306)(cid:296)(cid:368)(cid:361)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:329)(cid:394)(cid:912)(cid:361)(cid:296)(cid:368)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:368)(cid:310)(cid:357)(cid:296)(cid:361)(cid:310)(cid:342)(cid:329)(cid:292)(cid:845)(cid:912)
target, stretch and exceptional performance levels
EFFECTIVE IMPLEMENTATION
(cid:843)(cid:912) (cid:25)(cid:335)(cid:361)(cid:373)(cid:357)(cid:296)(cid:912)(cid:329)(cid:312)(cid:335)(cid:326)(cid:912)(cid:286)(cid:296)(cid:368)(cid:388)(cid:296)(cid:296)(cid:335)(cid:912)(cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:334)(cid:373)(cid:335)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)
is clear and the framework is simple for employees to
understand
(cid:843)(cid:912) (cid:61)(cid:296)(cid:296)(cid:368)(cid:912)(cid:357)(cid:312)(cid:306)(cid:342)(cid:357)(cid:342)(cid:373)(cid:361)(cid:912)(cid:287)(cid:342)(cid:357)(cid:354)(cid:342)(cid:357)(cid:271)(cid:368)(cid:296)(cid:912)(cid:306)(cid:342)(cid:387)(cid:296)(cid:357)(cid:335)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:357)(cid:296)(cid:356)(cid:373)(cid:312)(cid:357)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)
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. The ERCC
also engaged Willis Towers Watson (Singapore) to
conduct Executive Remuneration Benchmarking for
Senior Management. Aon Hewitt, Willis Towers Watson
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.
If an executive is involved in misconduct or fraud,
resulting in financial loss to the company, the ERCC
has the discretion not to award and to forfeit incentive
components of the executive’s remuneration, to the
extent that such award or incentive has not been
released or disbursed.
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 of the Group CEO, CEOs, Group Chief
Corporate Officer and Group CFO for the Board’s
approval and approves compensation for the other
Senior Management.
Singapore Telecommunications Limited | Annual Report 2019
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Corporate Governance
The key remuneration components for
Senior Management are summarised below:
TOTAL REMUNERATION
=
FIXED COMPONENTS
BASE SALARY
BENEFITS & PROVIDENT/
SUPERANNUATION
+
PERFORMANCE-RELATED COMPONENTS
VARIABLE BONUS
LONG-TERM
INCENTIVES
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.
79
BENEFITS & PROVIDENT/SUPERANNUATION FUND
Benefits and 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-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, Operational and People
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.
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 four broad
categories of targets: Financial, Strategy, Operational
and People. Weightings are assigned to the targets
to encourage a balanced performance and to avoid
over-emphasis on any one measure. 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 2019.
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.
Policy
The number of shares awarded under RSA and PSA is
determined using the valuation of the shares based on
a Monte-Carlo simulation. The RSA share awards have
a service condition, while the PSA share awards are
conditional upon the achievement of predetermined
performance targets over the performance period. The
PSA 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.
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 build up and retain at least the equivalent of two
times their annual base salary in shares. Group CEO
is expected to hold at least the equivalent of three
times her annual base salary as shareholding.
Special provisions for vesting and lapsing of awards
apply for events such as the termination of employment,
misconduct, retirement and any other events approved
(cid:286)(cid:394)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:25)(cid:83)(cid:16)(cid:16)(cid:850)(cid:912)(cid:98)(cid:354)(cid:342)(cid:335)(cid:912)(cid:342)(cid:287)(cid:287)(cid:373)(cid:357)(cid:357)(cid:296)(cid:335)(cid:287)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:271)(cid:335)(cid:394)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:296)(cid:387)(cid:296)(cid:335)(cid:368)(cid:361)(cid:845)(cid:912)
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 2019 to 31 March 2021. 50% of the 2019 RSA
will vest two years from grant date and 50% will vest
three years from grant date, subject to the following
conditions:
(cid:843)(cid:912) (cid:16)(cid:342)(cid:335)(cid:368)(cid:312)(cid:335)(cid:373)(cid:296)(cid:292)(cid:912)(cid:296)(cid:334)(cid:354)(cid:329)(cid:342)(cid:394)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:388)(cid:312)(cid:368)(cid:310)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:368)(cid:296)(cid:329)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:855)(cid:912)(cid:271)(cid:335)(cid:292)
(cid:843)(cid:912) (cid:61)(cid:271)(cid:312)(cid:335)(cid:368)(cid:271)(cid:312)(cid:335)(cid:312)(cid:335)(cid:306)(cid:912)(cid:271)(cid:912)(cid:361)(cid:271)(cid:368)(cid:312)(cid:361)(cid:305)(cid:271)(cid:287)(cid:368)(cid:342)(cid:357)(cid:394)(cid:912)(cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:357)(cid:271)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
financial year preceding each tranche of vesting.
Performance Share Award (PSA)
The PSA has a three-year performance period from
1 April 2019 to 31 March 2022. Vesting of shares is
dependent on the following performance conditions,
subject to the approval of the ERCC:
(cid:843)(cid:912) (cid:732)(cid:728)(cid:961)(cid:912)(cid:286)(cid:271)(cid:361)(cid:296)(cid:292)(cid:912)(cid:342)(cid:335)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:368)(cid:296)(cid:329)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:904)(cid:361)(cid:912)(cid:83)(cid:296)(cid:354)(cid:342)(cid:357)(cid:368)(cid:296)(cid:292)(cid:912)(cid:62)(cid:80)(cid:1)(cid:93)(cid:912)(cid:890)(cid:912)
(cid:83)(cid:296)(cid:354)(cid:342)(cid:357)(cid:368)(cid:296)(cid:292)(cid:912)(cid:62)(cid:80)(cid:1)(cid:93)(cid:912)(cid:271)(cid:287)(cid:310)(cid:312)(cid:296)(cid:387)(cid:296)(cid:292)(cid:912)(cid:271)(cid:306)(cid:271)(cid:312)(cid:335)(cid:361)(cid:368)(cid:912)(cid:354)(cid:357)(cid:296)(cid:292)(cid:296)(cid:368)(cid:296)(cid:357)(cid:334)(cid:312)(cid:335)(cid:296)(cid:292)(cid:912)
targets; and
(cid:843)(cid:912) (cid:734)(cid:728)(cid:961)(cid:912)(cid:286)(cid:271)(cid:361)(cid:296)(cid:292)(cid:912)(cid:342)(cid:335)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:368)(cid:296)(cid:329)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:904)(cid:361)(cid:912)(cid:1)(cid:286)(cid:361)(cid:342)(cid:329)(cid:373)(cid:368)(cid:296)(cid:912)(cid:93)(cid:342)(cid:368)(cid:271)(cid:329)(cid:912)
Shareholder Return (Absolute TSR) – Absolute TSR
achieved against predetermined targets.
The vesting schedule for PSA granted in June 2019 is
shown in Figure A.
Singapore Telecommunications Limited | Annual Report 2019
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Corporate Governance
Figure A: Performance Share Award (PSA) Vesting Schedule
Reported Group NPAT (40%)
Absolute TSR (60%)
Performance
Vesting Level (1)
Performance
Vesting Level (1)
Exceptional
Target
Threshold
Below Threshold
150%
100%
50%
0%
Stretch
Target
Threshold
Below Threshold
150%
100%
50%
0%
Note:
(1) For achievement between these performance levels, the percentage of shares that will vest under this tranche would vary accordingly.
Remuneration of Key Management
For the financial year ended 31 March 2019, 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 2019:
Name
Fixed
Remuneration
(S$) (1)
Variable
Bonus
(S$) (2)
Provident
Fund
(S$) (3)
Benefits
(S$) (4)
Total Cash
& Benefits
(S$) (5)
Chua Sock Koong
Earned
Paid out
1,647,096
1,803,014
3,215,059
9,180
78,011
3,537,301
4,949,346
Performance shares granted, vested and lapsed for Ms Chua as at 31 March 2019 are as follows:
2016 Awards
2017 Awards (7)
2018 Awards (8)
2019 Awards (9)
2016 Awards
2017 Awards (8)
2018 Awards (8)
2019 Awards (9)
Granted
(no. of shares)
Vested
(no. of shares)
Lapsed
(no. of shares)
Released
Date
(no. of shares)
Restricted Share Award (RSA) (6)
201,331
273,408
382,987
444,648
–
–
396,550
202,475
136,704
136,704
222,324
222,324
1-Jun-18
3-Jun-19
3-Jun-19
1-Jun-20
1-Jun-20
1-Jun-21
1-Jun-21
1-Jun-22
Granted
(no. of shares)
Vested
(no. of shares)
Lapsed
(no. of shares)
Released
Date
(no. of shares)
Performance Share Award (PSA) (6)
1,694,657
831,718
633,618
860,127
–
1,694,657
–
3-Jun-19
1-Jun-20
1-Jun-21
1-Jun-22
Notes:
(1) Fixed Remuneration refers to base salary earned for the financial year ended 31 March 2019.
(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 pages 79 to 80. Variable Bonus
Earned is the sum of PB and VSB awarded for the financial year ended 31 March 2019. Variable Bonus Paid Out is the sum of PB and VSB paid out in June 2019.
81
(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 2019. 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 2019.
(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 2017 RSA will be released in June 2020, subject to continued service of the employee.
(8) The vesting of the RSA and PSA are conditional upon the achievement of predetermined performance targets or vesting conditions over the respective
performance period, which are a two-year period for RSA and a three-year period for PSA.
(9) The 2019 grants of RSA and PSA were made in June 2019 for performance for the financial year ended 31 March 2019. The per unit fair values of the RSA and
PSA are S$2.644 and S$1.556 respectively.
Remuneration of Other Key Management
Summary compensation table for the other top five Key Management for the financial year ended 31 March 2019:
Name
Fixed
Remuneration
(S$) (1)
Variable
Bonus
(S$) (2)
Provident
Fund
(S$) (3)
Benefits
(S$) (4)
Total Cash
& Benefits
(S$) (5)
Restricted
Share Award
(RSA) (6)
Performance
Share Award
(PSA) (6)
(no. of shares)
(no. of shares)
The following are in alphabetical order:
Bill Chang
CEO Group
Enterprise
Hui Weng
Cheong (7)
COO, AIS
Allen Lew (8)
CEO Consumer
Australia
Earned
Paid Out
Earned
Paid Out
Earned
Paid Out
Jeann Low
Group Chief
Corporate Officer
Earned
Paid Out
Yuen Kuan Moon
CEO Consumer
Singapore
Total
Earned
Paid Out
Earned
Paid Out
909,996
663,000
A$1,562,369
909,996
909,996
4,937,248
871,748
1,530,734
669,950
895,445
A$1,447,543
A$2,648,656
471,748
1,126,000
931,998
1,241,484
4,376,210
7,411,620
17,340
65,475
9,180
455,238
9,180 A$637,591
13,260
64,088
17,340
64,695
66,300
1,279,697
1,864,559
2,523,545
1,797,368
2,022,863
A$3,656,790
A$4,857,903
1,459,092
2,113,344
1,924,029
2,233,515
10,659,455
13,694,865
106,341
451,745
80,674
159,930
135,023
573,587
106,341
451,745
121,533
516,279
549,912
2,153,286
Singapore Telecommunications Limited | Annual Report 2019
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Performance shares granted, vested and lapsed for the above five executives as at 31 March 2019 are as follows:
2016 Awards
2017 Awards (9)
2018 Awards (10)
2016 Awards
2017 Awards (10)
2018 Awards (10)
Granted
(no. of shares)
Vested
(no. of shares)
Lapsed
(no. of shares)
Released
Date
(no. of shares)
Restricted Share Award (RSA)
425,487
577,815
882,644
1,024,753
994,149
–
–
–
1-Jun-18
3-Jun-19
3-Jun-19
1-Jun-20
1-Jun-20
1-Jun-21
288,908
288,907
512,379
512,374
Granted
(no. of shares)
Vested
(no. of shares)
Lapsed
(no. of shares)
Released
Date
(no. of shares)
Performance Share Award (PSA)
3,032,763
1,700,195
1,509,669
–
3,032,763
3-Jun-19
1-Jun-20
1-Jun-21
–
Notes:
(1) Fixed Remuneration refers to base salary earned for the financial year ended 31 March 2019.
(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 pages 79 to 80. Variable Bonus
Earned is the sum of PB and VSB awarded for the financial year ended 31 March 2019. Variable Bonus Paid Out is the sum of PB and VSB paid out in June 2019.
(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 2019.
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 2019.
(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 2019 for performance for the financial year ended 31 March 2019. The per unit fair values of the
RSA and PSA are S$2.644 and S$1.556 respectively.
(7) Benefits for Mr Hui Weng Cheong include tax equalisation in relation to his assignment to AIS, Thailand.
(8) All remuneration items for Mr Allen Lew are denominated in Australian Dollar, except for his Provident Fund, which is denominated in Singapore Dollar.
(9) The second tranche of the vested 2017 RSA will be released in June 2020, subject to continued service of the employee.
(10) The vesting of the RSA and PSA are conditional upon the achievement of predetermined performance targets or vesting conditions over the respective
performance period, which are a two-year period for RSA and a three-year period for PSA.
83
Summary of Disclosures – Corporate Governance
Rule 710 of the SGX Listing Manual requires Singapore
listed companies to describe their corporate governance
practices with specific reference to the 2018 Code in their
annual reports for financial years commencing on or
after 1 January 2019. As we have elected to adopt Rule
710 of the SGX Listing Manual in advance, this summary
of disclosures describes our corporate governance
practices with specific reference to the express disclosure
requirements in the principles and provisions of the 2018
(cid:16)(cid:342)(cid:292)(cid:296)(cid:850)(cid:912)(cid:62)(cid:342)(cid:912)(cid:357)(cid:296)(cid:305)(cid:296)(cid:357)(cid:296)(cid:335)(cid:287)(cid:296)(cid:361)(cid:912)(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:286)(cid:296)(cid:296)(cid:335)(cid:912)(cid:334)(cid:271)(cid:292)(cid:296)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:342)(cid:292)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)
Corporate Governance 2012.
Key information on each Director in this Annual Report:
(cid:843)(cid:912) (cid:80)(cid:271)(cid:306)(cid:296)(cid:361)(cid:912)(cid:729)(cid:733)(cid:912)(cid:368)(cid:342)(cid:912)(cid:730)(cid:728)(cid:912)(cid:890)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)(cid:904)(cid:912)(cid:312)(cid:335)(cid:292)(cid:296)(cid:354)(cid:296)(cid:335)(cid:292)(cid:296)(cid:335)(cid:287)(cid:296)(cid:912)(cid:361)(cid:368)(cid:271)(cid:368)(cid:373)(cid:361)(cid:845)(cid:912)
appointment dates, length of directorship, academic
and professional qualifications and present and past
directorships details
(cid:843)(cid:912) (cid:80)(cid:271)(cid:306)(cid:296)(cid:361)(cid:912)(cid:733)(cid:736)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:735)(cid:728)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)(cid:904)(cid:912)(cid:334)(cid:296)(cid:296)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:271)(cid:368)(cid:368)(cid:296)(cid:335)(cid:292)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)
(cid:843)(cid:912) (cid:80)(cid:271)(cid:306)(cid:296)(cid:361)(cid:912)(cid:735)(cid:734)(cid:912)(cid:368)(cid:342)(cid:912)(cid:736)(cid:730)(cid:912)(cid:890)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)(cid:904)(cid:912)(cid:357)(cid:296)(cid:334)(cid:373)(cid:335)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)
(cid:843)(cid:912) (cid:80)(cid:271)(cid:306)(cid:296)(cid:361)(cid:912)(cid:730)(cid:733)(cid:729)(cid:912)(cid:368)(cid:342)(cid:912)(cid:730)(cid:734)(cid:728)(cid:912)(cid:890)(cid:912)(cid:1)(cid:292)(cid:292)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:271)(cid:329)(cid:912)(cid:41)(cid:335)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:335)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)(cid:912)
seeking re-election at the Annual General Meeting to
be held on 23 July 2019
Principles and provisions of the 2018 Code –
Express disclosure requirements
Page reference in
Singtel Annual Report 2019
Provision 1.2
The induction, training and development provided to new and existing Directors.
Provision 1.3
Matters that require Board approval.
Page 60
Page 59
Provision 1.4
(cid:62)(cid:271)(cid:334)(cid:296)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:334)(cid:296)(cid:334)(cid:286)(cid:296)(cid:357)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:16)(cid:342)(cid:334)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:296)(cid:361)(cid:845)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:368)(cid:296)(cid:357)(cid:334)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:357)(cid:296)(cid:305)(cid:296)(cid:357)(cid:296)(cid:335)(cid:287)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)
Committees, any delegation of the Board’s authority to make decisions, and a summary
of each Board Committee’s activities.
Pages 65 to 69
Provision 1.5
The number of meetings of the Board and Board Committees held in the year, as well as
the attendance of every Board member at these meetings.
Pages 58 and 70
Provision 2.4
The board diversity and progress made towards implementing the board diversity
policy, including objectives.
Page 61
Provision 4.3
Process for the selection, appointment and re-appointment of Directors to the Board,
including the criteria used to identify and evaluate potential new directors and channels
used in searching for appropriate candidate.
Pages 63 to 64
Provision 4.4
Where the Board considers a Director to be independent in spite of the existence of
a relationship which may affect his or her independence, the nature of the Director’s
relationship and the reasons for considering him or her as independent should be disclosed.
Pages 61 to 62
Singapore Telecommunications Limited | Annual Report 2019
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Corporate Governance
Principles and provisions of the 2018 Code –
Express disclosure requirements
Provision 4.5
The listed company directorships and principal commitments of each director, and
where a director holds a significant number of such directorships and commitments,
(cid:368)(cid:310)(cid:296)(cid:912)(cid:62)(cid:16)(cid:904)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:904)(cid:361)(cid:912)(cid:357)(cid:296)(cid:271)(cid:361)(cid:342)(cid:335)(cid:296)(cid:292)(cid:912)(cid:271)(cid:361)(cid:361)(cid:296)(cid:361)(cid:361)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:271)(cid:286)(cid:312)(cid:329)(cid:312)(cid:368)(cid:394)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:292)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:912)(cid:368)(cid:342)(cid:912)(cid:292)(cid:312)(cid:329)(cid:312)(cid:306)(cid:296)(cid:335)(cid:368)(cid:329)(cid:394)(cid:912)
discharge his or her duties are disclosed.
Page reference in
Singtel Annual Report 2019
Pages 15 to 20 and
Page 64
Provision 5.2
How the assessments of the Board, its Board committees and each Director have been
conducted, including the identity of any facilitator and its connection, if any, with the
Company or any of its Directors.
Provision 6.4
The Company discloses the engagement of any remuneration consultants and their
independence.
Page 64
Page 78
Principle 8
Clear disclosure of remuneration policies, level and mix of remuneration, and procedure
for setting remuneration, and the relationship between remuneration, performance and
value creation.
Pages 78 to 80
Provision 8.1
The Company discloses the policy and criteria for setting remuneration, as well as
names, amounts and breakdown of remuneration of (a) each individual director and
the CEO; and (b) at least the top five key management personnel (who are not Directors
or the CEO) in bands no wider than S$250,000 and in aggregate the total remuneration
paid to these key management personnel.
Provision 8.2
(cid:62)(cid:271)(cid:334)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:334)(cid:373)(cid:335)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)(cid:296)(cid:334)(cid:354)(cid:329)(cid:342)(cid:394)(cid:296)(cid:296)(cid:361)(cid:912)(cid:388)(cid:310)(cid:342)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:361)(cid:373)(cid:286)(cid:361)(cid:368)(cid:271)(cid:335)(cid:368)(cid:312)(cid:271)(cid:329)(cid:912)(cid:361)(cid:310)(cid:271)(cid:357)(cid:296)(cid:310)(cid:342)(cid:329)(cid:292)(cid:296)(cid:357)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
company, or are immediate family members of a Director, the CEO or a substantial
shareholder of the company, and whose remuneration exceeds S$100,000 during the
year, in bands no wider than S$100,000. The disclosure states clearly the employee’s
relationship with the relevant director or the CEO or substantial shareholder.
Provision 8.3
The Company discloses all forms of remuneration and other payments and benefits,
paid by the company and its subsidiaries to directors and key management personnel
of the company, and also discloses details of employee share schemes.
For the CEO and
management:
Pages 78 to 83
For non-executive Directors:
Pages 76 to 77
Page 77
For non-executive Directors:
Page 77
For key management
personnel:
Pages 81 to 83
For employee share
schemes:
Pages 80 to 83
85
Principles and provisions of the 2018 Code –
Express disclosure requirements
Provision 9.2
Whether the Board has received assurance from (a) the CEO and the CFO that the
financial records have been properly maintained and the financial statements give
true and fair view of the Company’s operations and finances; and (b) the CEO and the
other key management personnel who are responsible, regarding the adequacy and
effectiveness of the Company’s risk management and internal control systems.
Page reference in
Singtel Annual Report 2019
Page 72
Provision 11.3
Directors’ attendance at general meetings of shareholders held during the financial
year.
Page 58
Provision 12.1
The steps taken to solicit and understand the views of shareholders.
Provision 13.2
The strategy and key areas of focus in relation to the management of stakeholder
relationships during the reporting period.
Pages 73 to 74 and
Pages 87 to 88
Page 74 and
Pages 100 to 106
Singapore Telecommunications Limited | Annual Report 2019
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Investor Relations
Strive for clear, open and
accurate disclosures to help
investors make informed and
timely decisions about their
Singtel securities
Promote regular two-way
investor communication
through different touchpoints
and forums
Maintain leadership and
set the bar for corporate
governance and sustainability
standards
PROACTIVE AND OPEN
COMMUNICATION WITH THE
INVESTMENT COMMUNITY
During the financial year ended
31 March 2019, the management
and Investor Relations (IR) team
engaged more than 500 investors in
over 200 meetings and conference
calls to discuss the Group’s business
strategy and operational and
financial performance. We also
participated in local and overseas
investor conferences and roadshows
in Europe, Canada, Hong Kong,
Malaysia, Taiwan and the US.
We held briefings and meetings for
major corporate announcements
such as our subscription of Airtel’s
rights issue. We discussed our long-
term investment strategy, the impact
to our gearing and reiterated our
commitment to shareholder returns.
investors a first-hand experience
of cutting-edge technologies like
IoT, data analytics and advanced
networks, we organised regular tours
of our business facilities, including
our FutureNow Innovation Centre and
the revamped Singtel flagship store.
Our annual Singtel Investor Day
in June 2018 attracted over 70
participants. Investors and analysts
interacted directly with the senior
management of Singtel, Optus and
our associates through small group
presentations and a Q&A session.
We also showcased our digital
services, including a simulation of
future 5G solutions. Singtel Innov8,
our venture capital fund, arranged
for investee companies to present
insights into technologies such as
aerial drones and robotic process
automation.
We are focused on helping investors
understand how the Group is
creating sustainable competitive
advantages through investments
in digital businesses, network and
content, as well as building digital
ecosystems in payments, gaming and
esports. In addition, we share with
investors how the use of technology
is lifting efficiency, supporting new
automation in work processes and
improving our cost base. To give
Retail investors are an important
part of our outreach efforts. We
have been a long-term sponsor of
the Securities Investors Association
(Singapore) (SIAS) Investor Education
Programme and leverage the
annual Singtel-SIAS dialogue to
communicate our strategy and
performance with retail shareholders.
Retail investors are welcome to
contact us directly through email or
telephone.
MAINTAIN LEAD IN CORPORATE
GOVERNANCE, TRANSPARENCY
AND INVESTOR RELATIONS
We continue to nurture and maintain
strong links with sell-side research
analysts and are well-covered by
more than 20 analysts, based in
Singapore, Malaysia, Hong Kong,
India and the UK, who issue regular
reports. We monitor analyst, industry
and media reports closely, as part of
our efforts to continuously improve
disclosures and IR practices.
Each year, we commission an
independent study to gather investor
perceptions of our business. The
study, comprising in-depth interviews
with approximately 60 institutional
investors and research analysts,
gives our Board and management
a better understanding of investors’
views and concerns. It also helps the
IR team identify areas of investor
focus, enabling us to tailor our
communications and disclosures
accordingly. The latest study
highlighted the challenges facing
the telco industry but respondents
drew assurance from Singtel’s clear
strategy and strong management
team.
Good corporate governance
also plays a vital role in shaping
investor perception of the integrity,
87
transparency, accountability and
efficiency of a company. We keep
abreast of the latest developments
and benchmark ourselves against
best practices in key areas such
as disclosure, board structure,
shareholder rights and remuneration.
We proactively engage investors
to understand their views on
sustainability and how it influences
their investment decisions. We are
providing more disclosures on our
sustainability initiatives and helping
investors understand our material
issues, policies and efforts in areas
such as the environment and climate
change, data protection, supply
chain, social matters and human
rights. We have endorsed the Task
Force on Climate-Related Financial
Disclosures’ voluntary framework
and are working towards meeting its
standards.
The Singtel IR website is the primary
source of corporate information,
financial data and significant
business developments for the
investment community. All new,
material announcements are
made available on the IR website
immediately after they are released
to the Singapore Exchange to ensure
fair, equal and prompt dissemination
of information. In addition, we
constantly review the level of
disclosure, to align it with global
best practices and take into account
new business initiatives. Information
on Singtel’s credit ratings and bond
programmes were added during the
financial year.
During our quarterly earnings
announcements, we provide
extensive information, including
detailed financial statements,
management discussion and
analyses and presentation slides.
Our management responds to
questions from investors and analysts
over a conference call on the day
of the results announcement and a
transcript of the conference call is
posted on the Singtel IR website the
next work day.
SHAREHOLDER INFORMATION
As at 31 March 2019, Temasek
Holdings (Private) Limited remained
our largest shareholder, with 52% of
issued share capital. Other Singapore
shareholders held approximately 12%.
In terms of geographical distribution,
the US/Canada and Europe
accounted for approximately 12% and
9% of issued shares respectively.
SHARE OWNERSHIP BY GEOGRAPHY (1)
16.3b
shares (2)
Temasek Holdings(3)
US/Canada
Singapore (ex-Temasek)
Europe
Asia (ex-Singapore)
Others
52%
12%
12%
9%
3%
11%
Notes:
(1) These figures do not add up to 100% due
to rounding.
(2) As at 31 March 2019.
(3)
Includes direct and deemed interest.
IR CALENDAR
OF EVENTS
May 2018
• Non-deal Equity Roadshows,
Singapore, Europe and
North America
June 2018
• Singtel Investor Day,
Singapore
• Citi ASEAN C-Suite Investor
Conference, Singapore
July 2018
• 26th Annual General
Meeting, Singapore
August 2018
• Non-deal Equity Roadshow,
Singapore
September 2018
• CLSA Investors’ Forum,
Hong Kong
• Non-deal Equity Roadshow,
Malaysia
November 2018
• Non-deal Equity Roadshows,
Singapore and the UK
February 2019
• Non-deal Equity Roadshow,
Singapore
March 2019
• Investor briefing and
meetings: Airtel Rights Issue,
Singapore
• UOB Kay Hian-SGX
Corporate Day, Taiwan
• Investor Meeting
with Chairman and Board
Members, Singapore
Singapore Telecommunications Limited | Annual Report 2019
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Risk Management
Philosophy and Approach
We identify and manage risks to reduce the uncertainty associated with executing our
business strategies and maximise 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 is aligned with our Group strategy
and an integral part of the annual business planning and budgeting process.
Governance Structure for Managing Risks
(cid:41)(cid:335)(cid:361)(cid:368)(cid:312)(cid:329)(cid:361)(cid:912)(cid:287)(cid:373)(cid:329)(cid:368)(cid:373)(cid:357)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:271)(cid:287)(cid:310)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:306)(cid:342)(cid:387)(cid:296)(cid:357)(cid:335)(cid:271)(cid:335)(cid:287)(cid:296)
THE BOARD
(cid:843)(cid:912)
(cid:843)(cid:912) (cid:80)(cid:357)(cid:342)(cid:387)(cid:312)(cid:292)(cid:296)(cid:361)(cid:912)(cid:342)(cid:387)(cid:296)(cid:357)(cid:361)(cid:312)(cid:306)(cid:310)(cid:368)(cid:912)(cid:342)(cid:305)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:361)(cid:394)(cid:361)(cid:368)(cid:296)(cid:334)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:312)(cid:335)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:329)(cid:912)(cid:287)(cid:342)(cid:335)(cid:368)(cid:357)(cid:342)(cid:329)(cid:361)
(cid:843)(cid:912) (cid:83)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:361)(cid:912)(cid:326)(cid:296)(cid:394)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:334)(cid:312)(cid:368)(cid:312)(cid:306)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:354)(cid:329)(cid:271)(cid:335)(cid:361)
(cid:843)(cid:912) (cid:21)(cid:296)(cid:368)(cid:296)(cid:357)(cid:334)(cid:312)(cid:335)(cid:296)(cid:361)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:271)(cid:354)(cid:354)(cid:296)(cid:368)(cid:312)(cid:368)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:368)(cid:342)(cid:329)(cid:296)(cid:357)(cid:271)(cid:335)(cid:287)(cid:296)
(cid:843)(cid:912) (cid:61)(cid:342)(cid:335)(cid:312)(cid:368)(cid:342)(cid:357)(cid:361)(cid:912)(cid:296)(cid:393)(cid:354)(cid:342)(cid:361)(cid:373)(cid:357)(cid:296)
RISK COMMITTEE
(cid:843)(cid:912) (cid:83)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:287)(cid:342)(cid:334)(cid:334)(cid:296)(cid:335)(cid:292)(cid:361)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:361)(cid:368)(cid:357)(cid:271)(cid:368)(cid:296)(cid:306)(cid:394)(cid:912)(cid:912)
(cid:271)(cid:335)(cid:292)(cid:912)(cid:354)(cid:342)(cid:329)(cid:312)(cid:287)(cid:312)(cid:296)(cid:361)
(cid:843)(cid:912) (cid:68)(cid:387)(cid:296)(cid:357)(cid:361)(cid:296)(cid:296)(cid:361)(cid:912)(cid:292)(cid:296)(cid:361)(cid:312)(cid:306)(cid:335)(cid:845)(cid:912)(cid:312)(cid:334)(cid:354)(cid:329)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:334)(cid:342)(cid:335)(cid:312)(cid:368)(cid:342)(cid:357)(cid:312)(cid:335)(cid:306)(cid:912)(cid:342)(cid:305)(cid:912)(cid:312)(cid:335)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:329)(cid:912)(cid:287)(cid:342)(cid:335)(cid:368)(cid:357)(cid:342)(cid:329)(cid:361)
(cid:843)(cid:912) (cid:83)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:361)(cid:912)(cid:271)(cid:292)(cid:296)(cid:356)(cid:373)(cid:271)(cid:287)(cid:394)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:296)(cid:431)(cid:296)(cid:287)(cid:368)(cid:312)(cid:387)(cid:296)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:912)
(cid:368)(cid:310)(cid:296)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:904)(cid:361)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:305)(cid:357)(cid:271)(cid:334)(cid:296)(cid:388)(cid:342)(cid:357)(cid:326)
(cid:843)(cid:912) (cid:61)(cid:342)(cid:335)(cid:312)(cid:368)(cid:342)(cid:357)(cid:361)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:312)(cid:334)(cid:354)(cid:329)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:912)
(cid:334)(cid:312)(cid:368)(cid:312)(cid:306)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:354)(cid:329)(cid:271)(cid:335)(cid:361)
AUDIT COMMITTEE
(cid:843)(cid:912) (cid:83)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:361)(cid:912)(cid:271)(cid:292)(cid:296)(cid:356)(cid:373)(cid:271)(cid:287)(cid:394)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:296)(cid:431)(cid:296)(cid:287)(cid:368)(cid:312)(cid:387)(cid:296)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:904)(cid:361)(cid:912)(cid:312)(cid:335)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:329)(cid:912)(cid:287)(cid:342)(cid:335)(cid:368)(cid:357)(cid:342)(cid:329)(cid:912)(cid:305)(cid:357)(cid:271)(cid:334)(cid:296)(cid:388)(cid:342)(cid:357)(cid:326)
(cid:843)(cid:912) (cid:68)(cid:387)(cid:296)(cid:357)(cid:361)(cid:296)(cid:296)(cid:361)(cid:912)(cid:439)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:357)(cid:296)(cid:354)(cid:342)(cid:357)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)
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MANAGEMENT COMMITTEE
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RISK MANAGEMENT COMMITTEE
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89
Our Risk Philosophy
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RISK CENTRIC CULTURE
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STRONG CORPORATE
GOVERNANCE STRUCTURE
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PROACTIVE RISK
MANAGEMENT PROCESS
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Risk Appetite
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Risk Management
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90
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R
E
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I
E
W
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G
O
V
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R
N
A
N
C
E
A
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A
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N
A
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L
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T
Y
P
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Risk Management
Philosophy and Approach
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(cid:357)(cid:296)(cid:306)(cid:373)(cid:329)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:286)(cid:296)(cid:361)(cid:368)(cid:912)(cid:354)(cid:357)(cid:271)(cid:287)(cid:368)(cid:312)(cid:287)(cid:296)(cid:361)(cid:845)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:368)(cid:310)(cid:296)(cid:912)(cid:312)(cid:292)(cid:296)(cid:335)(cid:368)(cid:312)(cid:439)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)
(cid:342)(cid:305)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:361)(cid:850)
Risk Factors
(cid:68)(cid:373)(cid:357)(cid:912)(cid:439)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:342)(cid:354)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:312)(cid:335)(cid:440)(cid:373)(cid:296)(cid:335)(cid:287)(cid:296)(cid:292)(cid:912)(cid:286)(cid:394)(cid:912)(cid:271)(cid:912)
(cid:387)(cid:271)(cid:361)(cid:368)(cid:912)(cid:357)(cid:271)(cid:335)(cid:306)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:305)(cid:271)(cid:287)(cid:368)(cid:342)(cid:357)(cid:361)(cid:850)(cid:912)(cid:61)(cid:271)(cid:335)(cid:394)(cid:912)(cid:342)(cid:305)(cid:912)
(cid:368)(cid:310)(cid:296)(cid:361)(cid:296)(cid:912)(cid:271)(cid:431)(cid:296)(cid:287)(cid:368)(cid:912)(cid:335)(cid:342)(cid:368)(cid:912)(cid:324)(cid:373)(cid:361)(cid:368)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:296)(cid:361)(cid:845)(cid:912)
(cid:286)(cid:373)(cid:368)(cid:912)(cid:271)(cid:329)(cid:361)(cid:342)(cid:912)(cid:342)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:296)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:342)(cid:373)(cid:368)(cid:361)(cid:312)(cid:292)(cid:296)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:368)(cid:296)(cid:329)(cid:296)(cid:287)(cid:342)(cid:334)(cid:334)(cid:373)(cid:335)(cid:312)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)
(cid:312)(cid:335)(cid:292)(cid:373)(cid:361)(cid:368)(cid:357)(cid:394)(cid:850)(cid:912)(cid:93)(cid:310)(cid:296)(cid:361)(cid:296)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:361)(cid:912)(cid:387)(cid:271)(cid:357)(cid:394)(cid:912)(cid:388)(cid:312)(cid:292)(cid:296)(cid:329)(cid:394)(cid:912)
(cid:271)(cid:335)(cid:292)(cid:912)(cid:334)(cid:271)(cid:335)(cid:394)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:286)(cid:296)(cid:394)(cid:342)(cid:335)(cid:292)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:904)(cid:361)(cid:912)
(cid:287)(cid:342)(cid:335)(cid:368)(cid:357)(cid:342)(cid:329)(cid:850)(cid:912)(cid:93)(cid:310)(cid:296)(cid:357)(cid:296)(cid:912)(cid:334)(cid:271)(cid:394)(cid:912)(cid:271)(cid:329)(cid:361)(cid:342)(cid:912)(cid:286)(cid:296)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:361)(cid:912)
(cid:368)(cid:310)(cid:271)(cid:368)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:296)(cid:312)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)(cid:354)(cid:357)(cid:296)(cid:361)(cid:296)(cid:335)(cid:368)(cid:329)(cid:394)(cid:912)(cid:373)(cid:335)(cid:326)(cid:335)(cid:342)(cid:388)(cid:335)(cid:912)
(cid:342)(cid:357)(cid:912)(cid:335)(cid:342)(cid:368)(cid:912)(cid:287)(cid:373)(cid:357)(cid:357)(cid:296)(cid:335)(cid:368)(cid:329)(cid:394)(cid:912)(cid:271)(cid:361)(cid:361)(cid:296)(cid:361)(cid:361)(cid:296)(cid:292)(cid:912)(cid:271)(cid:361)(cid:912)
(cid:361)(cid:312)(cid:306)(cid:335)(cid:312)(cid:439)(cid:287)(cid:271)(cid:335)(cid:368)(cid:845)(cid:912)(cid:388)(cid:310)(cid:312)(cid:287)(cid:310)(cid:912)(cid:334)(cid:271)(cid:394)(cid:912)(cid:329)(cid:271)(cid:368)(cid:296)(cid:357)(cid:912)(cid:354)(cid:357)(cid:342)(cid:387)(cid:296)(cid:912)
(cid:368)(cid:342)(cid:912)(cid:286)(cid:296)(cid:912)(cid:334)(cid:271)(cid:368)(cid:296)(cid:357)(cid:312)(cid:271)(cid:329)(cid:850)(cid:912)(cid:39)(cid:342)(cid:388)(cid:296)(cid:387)(cid:296)(cid:357)(cid:845)(cid:912)(cid:388)(cid:296)(cid:912)(cid:271)(cid:312)(cid:334)(cid:912)
(cid:368)(cid:342)(cid:912)(cid:334)(cid:312)(cid:368)(cid:312)(cid:306)(cid:271)(cid:368)(cid:296)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:296)(cid:393)(cid:354)(cid:342)(cid:361)(cid:373)(cid:357)(cid:296)(cid:361)(cid:912)(cid:368)(cid:310)(cid:357)(cid:342)(cid:373)(cid:306)(cid:310)(cid:912)
(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)
(cid:361)(cid:368)(cid:357)(cid:271)(cid:368)(cid:296)(cid:306)(cid:312)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:312)(cid:335)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:329)(cid:912)(cid:287)(cid:342)(cid:335)(cid:368)(cid:357)(cid:342)(cid:329)(cid:361)(cid:850)
ECONOMIC RISKS
(cid:16)(cid:310)(cid:271)(cid:335)(cid:306)(cid:296)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)(cid:292)(cid:342)(cid:334)(cid:296)(cid:361)(cid:368)(cid:312)(cid:287)(cid:845)(cid:912)(cid:357)(cid:296)(cid:306)(cid:312)(cid:342)(cid:335)(cid:271)(cid:329)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:306)(cid:329)(cid:342)(cid:286)(cid:271)(cid:329)(cid:912)(cid:296)(cid:287)(cid:342)(cid:335)(cid:342)(cid:334)(cid:312)(cid:287)(cid:912)(cid:287)(cid:342)(cid:335)(cid:292)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:334)(cid:271)(cid:394)(cid:912)
(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:271)(cid:912)(cid:334)(cid:271)(cid:368)(cid:296)(cid:357)(cid:312)(cid:271)(cid:329)(cid:912)(cid:271)(cid:292)(cid:387)(cid:296)(cid:357)(cid:361)(cid:296)(cid:912)(cid:296)(cid:431)(cid:296)(cid:287)(cid:368)(cid:912)(cid:342)(cid:335)(cid:912)
(cid:368)(cid:310)(cid:296)(cid:912)(cid:292)(cid:296)(cid:334)(cid:271)(cid:335)(cid:292)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:368)(cid:296)(cid:329)(cid:296)(cid:287)(cid:342)(cid:334)(cid:334)(cid:373)(cid:335)(cid:312)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:845)(cid:912)
(cid:312)(cid:335)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:368)(cid:296)(cid:287)(cid:310)(cid:335)(cid:342)(cid:329)(cid:342)(cid:306)(cid:394)(cid:912)(cid:873)(cid:41)(cid:93)(cid:874)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:357)(cid:296)(cid:329)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)(cid:361)(cid:296)(cid:357)(cid:387)(cid:312)(cid:287)(cid:296)(cid:361)(cid:845)(cid:912)(cid:292)(cid:312)(cid:306)(cid:312)(cid:368)(cid:271)(cid:329)(cid:912)(cid:361)(cid:296)(cid:357)(cid:387)(cid:312)(cid:287)(cid:296)(cid:361)(cid:845)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:310)(cid:296)(cid:335)(cid:287)(cid:296)(cid:845)(cid:912)(cid:342)(cid:335)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:439)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)
(cid:271)(cid:335)(cid:292)(cid:912)(cid:342)(cid:354)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:850)(cid:912)(cid:1)(cid:361)(cid:912)(cid:368)(cid:357)(cid:271)(cid:292)(cid:296)(cid:912)(cid:368)(cid:296)(cid:335)(cid:361)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)
(cid:271)(cid:335)(cid:292)(cid:912)(cid:342)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)(cid:306)(cid:329)(cid:342)(cid:286)(cid:271)(cid:329)(cid:912)(cid:310)(cid:296)(cid:271)(cid:292)(cid:388)(cid:312)(cid:335)(cid:292)(cid:361)(cid:912)(cid:312)(cid:335)(cid:368)(cid:296)(cid:335)(cid:361)(cid:312)(cid:305)(cid:394)(cid:912)
(cid:357)(cid:296)(cid:361)(cid:373)(cid:329)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:312)(cid:335)(cid:912)(cid:373)(cid:335)(cid:287)(cid:296)(cid:357)(cid:368)(cid:271)(cid:312)(cid:335)(cid:368)(cid:394)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
(cid:334)(cid:271)(cid:287)(cid:357)(cid:342)(cid:891)(cid:296)(cid:287)(cid:342)(cid:335)(cid:342)(cid:334)(cid:312)(cid:287)(cid:912)(cid:296)(cid:335)(cid:387)(cid:312)(cid:357)(cid:342)(cid:335)(cid:334)(cid:296)(cid:335)(cid:368)(cid:845)(cid:912)(cid:368)(cid:310)(cid:312)(cid:361)(cid:912)
(cid:287)(cid:342)(cid:373)(cid:329)(cid:292)(cid:912)(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:271)(cid:335)(cid:912)(cid:271)(cid:292)(cid:387)(cid:296)(cid:357)(cid:361)(cid:296)(cid:912)(cid:296)(cid:431)(cid:296)(cid:287)(cid:368)(cid:912)(cid:342)(cid:335)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)
(cid:342)(cid:387)(cid:296)(cid:357)(cid:271)(cid:329)(cid:329)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:912)(cid:361)(cid:368)(cid:357)(cid:271)(cid:368)(cid:296)(cid:306)(cid:394)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:306)(cid:357)(cid:342)(cid:388)(cid:368)(cid:310)(cid:850)(cid:912)
(cid:93)(cid:310)(cid:296)(cid:912)(cid:306)(cid:329)(cid:342)(cid:286)(cid:271)(cid:329)(cid:912)(cid:287)(cid:357)(cid:296)(cid:292)(cid:312)(cid:368)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:296)(cid:356)(cid:373)(cid:312)(cid:368)(cid:394)(cid:912)(cid:334)(cid:271)(cid:357)(cid:326)(cid:296)(cid:368)(cid:361)(cid:912)
(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:296)(cid:393)(cid:354)(cid:296)(cid:357)(cid:312)(cid:296)(cid:335)(cid:287)(cid:296)(cid:292)(cid:912)(cid:361)(cid:373)(cid:286)(cid:361)(cid:368)(cid:271)(cid:335)(cid:368)(cid:312)(cid:271)(cid:329)(cid:912)
(cid:292)(cid:312)(cid:361)(cid:329)(cid:342)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:845)(cid:912)(cid:329)(cid:312)(cid:356)(cid:373)(cid:312)(cid:292)(cid:312)(cid:368)(cid:394)(cid:912)(cid:292)(cid:312)(cid:361)(cid:357)(cid:373)(cid:354)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:334)(cid:271)(cid:357)(cid:326)(cid:296)(cid:368)(cid:912)(cid:287)(cid:342)(cid:357)(cid:357)(cid:296)(cid:287)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:850)(cid:912)(cid:93)(cid:310)(cid:296)(cid:361)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:342)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)
(cid:357)(cid:296)(cid:329)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)(cid:296)(cid:387)(cid:296)(cid:335)(cid:368)(cid:361)(cid:912)(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:310)(cid:271)(cid:292)(cid:912)(cid:271)(cid:912)(cid:361)(cid:312)(cid:306)(cid:335)(cid:312)(cid:439)(cid:287)(cid:271)(cid:335)(cid:368)(cid:912)
(cid:312)(cid:334)(cid:354)(cid:271)(cid:287)(cid:368)(cid:912)(cid:342)(cid:335)(cid:912)(cid:296)(cid:287)(cid:342)(cid:335)(cid:342)(cid:334)(cid:312)(cid:287)(cid:912)(cid:306)(cid:357)(cid:342)(cid:388)(cid:368)(cid:310)(cid:912)(cid:271)(cid:361)(cid:912)
(cid:271)(cid:912)(cid:388)(cid:310)(cid:342)(cid:329)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:287)(cid:342)(cid:335)(cid:361)(cid:296)(cid:356)(cid:373)(cid:296)(cid:335)(cid:368)(cid:329)(cid:394)(cid:845)(cid:912)(cid:342)(cid:335)(cid:912)
(cid:287)(cid:342)(cid:335)(cid:361)(cid:373)(cid:334)(cid:296)(cid:357)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:292)(cid:296)(cid:334)(cid:271)(cid:335)(cid:292)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)
(cid:368)(cid:296)(cid:329)(cid:296)(cid:287)(cid:342)(cid:334)(cid:334)(cid:373)(cid:335)(cid:312)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:845)(cid:912)(cid:41)(cid:93)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:329)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)
(cid:361)(cid:296)(cid:357)(cid:387)(cid:312)(cid:287)(cid:296)(cid:361)(cid:845)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:292)(cid:312)(cid:306)(cid:312)(cid:368)(cid:271)(cid:329)(cid:912)(cid:361)(cid:296)(cid:357)(cid:387)(cid:312)(cid:287)(cid:296)(cid:361)(cid:850)(cid:912)
(cid:68)(cid:373)(cid:357)(cid:912)(cid:354)(cid:329)(cid:271)(cid:335)(cid:335)(cid:312)(cid:335)(cid:306)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)
(cid:357)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:912)(cid:354)(cid:357)(cid:342)(cid:287)(cid:296)(cid:361)(cid:361)(cid:296)(cid:361)(cid:912)(cid:312)(cid:335)(cid:387)(cid:342)(cid:329)(cid:387)(cid:296)(cid:912)(cid:326)(cid:296)(cid:296)(cid:354)(cid:312)(cid:335)(cid:306)(cid:912)
(cid:271)(cid:286)(cid:357)(cid:296)(cid:271)(cid:361)(cid:368)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:296)(cid:287)(cid:342)(cid:335)(cid:342)(cid:334)(cid:312)(cid:287)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:334)(cid:271)(cid:357)(cid:326)(cid:296)(cid:368)(cid:912)(cid:292)(cid:296)(cid:387)(cid:296)(cid:329)(cid:342)(cid:354)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:354)(cid:296)(cid:357)(cid:312)(cid:342)(cid:292)(cid:312)(cid:287)(cid:912)(cid:334)(cid:342)(cid:335)(cid:312)(cid:368)(cid:342)(cid:357)(cid:312)(cid:335)(cid:306)(cid:912)(cid:342)(cid:305)(cid:912)(cid:286)(cid:373)(cid:292)(cid:306)(cid:296)(cid:368)(cid:361)(cid:912)
(cid:271)(cid:335)(cid:292)(cid:912)(cid:296)(cid:393)(cid:354)(cid:296)(cid:335)(cid:292)(cid:312)(cid:368)(cid:373)(cid:357)(cid:296)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:342)(cid:354)(cid:368)(cid:312)(cid:334)(cid:312)(cid:361)(cid:296)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
(cid:271)(cid:329)(cid:329)(cid:342)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)(cid:287)(cid:271)(cid:354)(cid:312)(cid:368)(cid:271)(cid:329)(cid:912)(cid:271)(cid:334)(cid:342)(cid:335)(cid:306)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
(cid:387)(cid:271)(cid:357)(cid:312)(cid:342)(cid:373)(cid:361)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:296)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:850)(cid:912)
(cid:25)(cid:271)(cid:287)(cid:310)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:373)(cid:335)(cid:312)(cid:368)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)
(cid:342)(cid:373)(cid:357)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:912)(cid:310)(cid:271)(cid:361)(cid:912)(cid:287)(cid:342)(cid:335)(cid:368)(cid:312)(cid:335)(cid:373)(cid:312)(cid:335)(cid:306)(cid:912)(cid:287)(cid:342)(cid:361)(cid:368)(cid:912)
(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:368)(cid:357)(cid:271)(cid:335)(cid:361)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)
(cid:354)(cid:357)(cid:342)(cid:306)(cid:357)(cid:271)(cid:334)(cid:334)(cid:296)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:292)(cid:357)(cid:312)(cid:387)(cid:296)(cid:912)(cid:312)(cid:334)(cid:354)(cid:357)(cid:342)(cid:387)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)(cid:912)
(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:312)(cid:357)(cid:912)(cid:287)(cid:342)(cid:361)(cid:368)(cid:912)(cid:361)(cid:368)(cid:357)(cid:373)(cid:287)(cid:368)(cid:373)(cid:357)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:856)(cid:342)(cid:357)(cid:912)
(cid:287)(cid:310)(cid:271)(cid:335)(cid:306)(cid:296)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:334)(cid:342)(cid:292)(cid:296)(cid:329)(cid:850)(cid:912)
POLITICAL RISKS
(cid:68)(cid:373)(cid:357)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:312)(cid:361)(cid:912)(cid:306)(cid:296)(cid:342)(cid:306)(cid:357)(cid:271)(cid:354)(cid:310)(cid:312)(cid:287)(cid:271)(cid:329)(cid:329)(cid:394)(cid:912)
(cid:292)(cid:312)(cid:387)(cid:296)(cid:357)(cid:361)(cid:312)(cid:439)(cid:296)(cid:292)(cid:912)(cid:388)(cid:312)(cid:368)(cid:310)(cid:912)(cid:342)(cid:354)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)
(cid:87)(cid:312)(cid:335)(cid:306)(cid:271)(cid:354)(cid:342)(cid:357)(cid:296)(cid:845)(cid:912)(cid:1)(cid:373)(cid:361)(cid:368)(cid:357)(cid:271)(cid:329)(cid:312)(cid:271)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
(cid:296)(cid:334)(cid:296)(cid:357)(cid:306)(cid:312)(cid:335)(cid:306)(cid:912)(cid:334)(cid:271)(cid:357)(cid:326)(cid:296)(cid:368)(cid:361)(cid:850)(cid:912)(cid:87)(cid:342)(cid:334)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
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(cid:342)(cid:305)(cid:912)(cid:361)(cid:373)(cid:287)(cid:310)(cid:912)(cid:354)(cid:342)(cid:329)(cid:312)(cid:368)(cid:312)(cid:287)(cid:271)(cid:329)(cid:912)(cid:312)(cid:335)(cid:361)(cid:368)(cid:271)(cid:286)(cid:312)(cid:329)(cid:312)(cid:368)(cid:394)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
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(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:342)(cid:361)(cid:296)(cid:912)(cid:271)(cid:357)(cid:296)(cid:271)(cid:361)(cid:850)(cid:912)
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(cid:61)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:354)(cid:271)(cid:357)(cid:368)(cid:335)(cid:296)(cid:357)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)
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(cid:368)(cid:342)(cid:912)(cid:329)(cid:296)(cid:387)(cid:296)(cid:357)(cid:271)(cid:306)(cid:296)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:329)(cid:342)(cid:287)(cid:271)(cid:329)(cid:912)(cid:296)(cid:393)(cid:354)(cid:296)(cid:357)(cid:368)(cid:312)(cid:361)(cid:296)(cid:845)(cid:912)
(cid:326)(cid:335)(cid:342)(cid:388)(cid:329)(cid:296)(cid:292)(cid:306)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:271)(cid:286)(cid:312)(cid:329)(cid:312)(cid:368)(cid:394)(cid:912)(cid:368)(cid:342)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:912)
(cid:368)(cid:310)(cid:296)(cid:912)(cid:329)(cid:342)(cid:287)(cid:271)(cid:329)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:361)(cid:342)(cid:287)(cid:312)(cid:342)(cid:891)(cid:296)(cid:287)(cid:342)(cid:335)(cid:342)(cid:334)(cid:312)(cid:287)(cid:912)
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(cid:271)(cid:335)(cid:292)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:286)(cid:296)(cid:368)(cid:368)(cid:296)(cid:357)(cid:912)(cid:271)(cid:286)(cid:329)(cid:296)(cid:912)(cid:368)(cid:342)(cid:912)(cid:312)(cid:334)(cid:354)(cid:329)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)
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(cid:271)(cid:357)(cid:342)(cid:373)(cid:335)(cid:292)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:388)(cid:342)(cid:357)(cid:329)(cid:292)(cid:845)(cid:912)(cid:296)(cid:393)(cid:354)(cid:342)(cid:361)(cid:373)(cid:357)(cid:296)(cid:912)(cid:368)(cid:342)(cid:912)
(cid:361)(cid:312)(cid:334)(cid:312)(cid:329)(cid:271)(cid:357)(cid:912)(cid:354)(cid:342)(cid:329)(cid:312)(cid:368)(cid:312)(cid:287)(cid:271)(cid:329)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:361)(cid:342)(cid:287)(cid:312)(cid:342)(cid:891)(cid:296)(cid:287)(cid:342)(cid:335)(cid:342)(cid:334)(cid:312)(cid:287)(cid:912)
(cid:357)(cid:312)(cid:361)(cid:326)(cid:361)(cid:912)(cid:334)(cid:271)(cid:394)(cid:912)(cid:312)(cid:335)(cid:287)(cid:357)(cid:296)(cid:271)(cid:361)(cid:296)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:305)(cid:373)(cid:368)(cid:373)(cid:357)(cid:296)(cid:850)(cid:912)
REGULATORY AND
LITIGATION RISKS
Regulatory Risks
(cid:68)(cid:373)(cid:357)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:296)(cid:361)(cid:912)(cid:292)(cid:296)(cid:354)(cid:296)(cid:335)(cid:292)(cid:912)(cid:342)(cid:335)(cid:912)(cid:329)(cid:312)(cid:287)(cid:296)(cid:335)(cid:287)(cid:296)(cid:361)(cid:912)
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(cid:342)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)(cid:361)(cid:271)(cid:335)(cid:287)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:312)(cid:335)(cid:287)(cid:329)(cid:373)(cid:292)(cid:312)(cid:335)(cid:306)(cid:845)(cid:912)(cid:373)(cid:329)(cid:368)(cid:312)(cid:334)(cid:271)(cid:368)(cid:296)(cid:329)(cid:394)(cid:845)(cid:912)
(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:296)(cid:387)(cid:342)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)(cid:329)(cid:312)(cid:287)(cid:296)(cid:335)(cid:287)(cid:296)(cid:361)(cid:850)(cid:912)(cid:68)(cid:373)(cid:357)(cid:912)
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Risk Management
Philosophy and Approach
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(cid:312)(cid:335)(cid:292)(cid:373)(cid:361)(cid:368)(cid:357)(cid:394)(cid:850)(cid:912)(cid:41)(cid:335)(cid:912)(cid:271)(cid:292)(cid:292)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:368)(cid:342)(cid:912)(cid:312)(cid:335)(cid:361)(cid:368)(cid:312)(cid:368)(cid:373)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)
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(cid:296)(cid:335)(cid:361)(cid:373)(cid:357)(cid:296)(cid:912)(cid:357)(cid:296)(cid:306)(cid:373)(cid:329)(cid:271)(cid:368)(cid:342)(cid:357)(cid:394)(cid:912)(cid:287)(cid:342)(cid:334)(cid:354)(cid:329)(cid:312)(cid:271)(cid:335)(cid:287)(cid:296)(cid:361)(cid:845)(cid:912)
(cid:388)(cid:296)(cid:912)(cid:287)(cid:342)(cid:335)(cid:292)(cid:373)(cid:287)(cid:368)(cid:912)(cid:368)(cid:357)(cid:271)(cid:312)(cid:335)(cid:312)(cid:335)(cid:306)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:357)(cid:296)(cid:305)(cid:357)(cid:296)(cid:361)(cid:310)(cid:296)(cid:357)(cid:912)(cid:361)(cid:296)(cid:361)(cid:361)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:361)(cid:368)(cid:271)(cid:431)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:850)(cid:912)
Access to Spectrum
(cid:1)(cid:287)(cid:287)(cid:296)(cid:361)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:361)(cid:354)(cid:296)(cid:287)(cid:368)(cid:357)(cid:373)(cid:334)(cid:912)(cid:312)(cid:361)(cid:912)(cid:287)(cid:357)(cid:312)(cid:368)(cid:312)(cid:287)(cid:271)(cid:329)(cid:329)(cid:394)(cid:912)
(cid:312)(cid:334)(cid:354)(cid:342)(cid:357)(cid:368)(cid:271)(cid:335)(cid:368)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:361)(cid:373)(cid:354)(cid:354)(cid:342)(cid:357)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)
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(cid:387)(cid:342)(cid:312)(cid:287)(cid:296)(cid:845)(cid:912)(cid:292)(cid:271)(cid:368)(cid:271)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:342)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)(cid:287)(cid:342)(cid:335)(cid:335)(cid:296)(cid:287)(cid:368)(cid:312)(cid:387)(cid:312)(cid:368)(cid:394)(cid:912)
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(cid:334)(cid:342)(cid:361)(cid:368)(cid:912)(cid:287)(cid:342)(cid:373)(cid:335)(cid:368)(cid:357)(cid:312)(cid:296)(cid:361)(cid:912)(cid:388)(cid:310)(cid:296)(cid:357)(cid:296)(cid:912)(cid:388)(cid:296)(cid:912)(cid:342)(cid:354)(cid:296)(cid:357)(cid:271)(cid:368)(cid:296)(cid:912)
(cid:312)(cid:361)(cid:912)(cid:357)(cid:296)(cid:306)(cid:373)(cid:329)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)(cid:286)(cid:394)(cid:912)(cid:306)(cid:342)(cid:387)(cid:296)(cid:357)(cid:335)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)
(cid:271)(cid:373)(cid:368)(cid:310)(cid:342)(cid:357)(cid:312)(cid:368)(cid:312)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:356)(cid:373)(cid:312)(cid:357)(cid:296)(cid:361)(cid:912)(cid:329)(cid:312)(cid:287)(cid:296)(cid:335)(cid:287)(cid:296)(cid:361)(cid:850)(cid:912)
(cid:34)(cid:271)(cid:312)(cid:329)(cid:373)(cid:357)(cid:296)(cid:912)(cid:368)(cid:342)(cid:912)(cid:271)(cid:287)(cid:356)(cid:373)(cid:312)(cid:357)(cid:296)(cid:912)(cid:271)(cid:287)(cid:287)(cid:296)(cid:361)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)
(cid:361)(cid:354)(cid:296)(cid:287)(cid:368)(cid:357)(cid:373)(cid:334)(cid:845)(cid:912)(cid:342)(cid:357)(cid:912)(cid:335)(cid:296)(cid:388)(cid:912)(cid:342)(cid:357)(cid:912)(cid:271)(cid:292)(cid:292)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:271)(cid:329)(cid:912)
(cid:361)(cid:354)(cid:296)(cid:287)(cid:368)(cid:357)(cid:373)(cid:334)(cid:845)(cid:912)(cid:342)(cid:335)(cid:912)(cid:357)(cid:296)(cid:271)(cid:361)(cid:342)(cid:335)(cid:271)(cid:286)(cid:329)(cid:296)(cid:912)
(cid:287)(cid:342)(cid:334)(cid:334)(cid:296)(cid:357)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:368)(cid:296)(cid:357)(cid:334)(cid:361)(cid:845)(cid:912)(cid:342)(cid:357)(cid:912)(cid:271)(cid:368)(cid:912)(cid:271)(cid:329)(cid:329)(cid:845)(cid:912)(cid:912)
(cid:287)(cid:342)(cid:373)(cid:329)(cid:292)(cid:912)(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:271)(cid:912)(cid:334)(cid:271)(cid:368)(cid:296)(cid:357)(cid:312)(cid:271)(cid:329)(cid:912)(cid:271)(cid:292)(cid:387)(cid:296)(cid:357)(cid:361)(cid:296)(cid:912)
(cid:296)(cid:431)(cid:296)(cid:287)(cid:368)(cid:912)(cid:342)(cid:335)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:287)(cid:342)(cid:357)(cid:296)(cid:912)(cid:287)(cid:342)(cid:334)(cid:334)(cid:373)(cid:335)(cid:312)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)
(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:845)(cid:912)(cid:439)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)
(cid:271)(cid:335)(cid:292)(cid:912)(cid:306)(cid:357)(cid:342)(cid:388)(cid:368)(cid:310)(cid:912)(cid:354)(cid:329)(cid:271)(cid:335)(cid:361)(cid:850)(cid:912)
Taxation Risks
(cid:68)(cid:373)(cid:357)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:912)(cid:310)(cid:271)(cid:361)(cid:912)(cid:342)(cid:354)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:271)(cid:287)(cid:357)(cid:342)(cid:361)(cid:361)(cid:912)(cid:912)
(cid:271)(cid:912)(cid:329)(cid:271)(cid:357)(cid:306)(cid:296)(cid:912)(cid:335)(cid:373)(cid:334)(cid:286)(cid:296)(cid:357)(cid:912)(cid:342)(cid:305)(cid:912)(cid:324)(cid:373)(cid:357)(cid:312)(cid:361)(cid:292)(cid:312)(cid:287)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)
(cid:271)(cid:335)(cid:292)(cid:912)(cid:388)(cid:296)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:361)(cid:373)(cid:286)(cid:324)(cid:296)(cid:287)(cid:368)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:368)(cid:271)(cid:393)(cid:912)
(cid:357)(cid:296)(cid:306)(cid:373)(cid:329)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:845)(cid:912)(cid:342)(cid:357)(cid:912)(cid:287)(cid:310)(cid:271)(cid:335)(cid:306)(cid:296)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)
(cid:357)(cid:296)(cid:306)(cid:373)(cid:329)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:845)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:296)(cid:361)(cid:354)(cid:296)(cid:287)(cid:368)(cid:312)(cid:387)(cid:296)(cid:912)
(cid:324)(cid:373)(cid:357)(cid:312)(cid:361)(cid:292)(cid:312)(cid:287)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)(cid:388)(cid:310)(cid:312)(cid:287)(cid:310)(cid:912)(cid:388)(cid:296)(cid:912)(cid:342)(cid:354)(cid:296)(cid:357)(cid:271)(cid:368)(cid:296)(cid:850)(cid:912)
(cid:93)(cid:310)(cid:296)(cid:912)(cid:368)(cid:271)(cid:393)(cid:912)(cid:329)(cid:296)(cid:306)(cid:312)(cid:361)(cid:329)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:342)(cid:357)(cid:912)(cid:287)(cid:310)(cid:271)(cid:335)(cid:306)(cid:296)(cid:361)(cid:912)
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(cid:342)(cid:286)(cid:329)(cid:312)(cid:306)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:287)(cid:342)(cid:361)(cid:368)(cid:361)(cid:850)(cid:912)
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(cid:388)(cid:310)(cid:296)(cid:357)(cid:296)(cid:912)(cid:388)(cid:296)(cid:912)(cid:342)(cid:354)(cid:296)(cid:357)(cid:271)(cid:368)(cid:296)(cid:850)(cid:912)(cid:113)(cid:296)(cid:912)(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:361)(cid:326)(cid:312)(cid:329)(cid:329)(cid:296)(cid:292)(cid:912)
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(cid:388)(cid:312)(cid:368)(cid:310)(cid:912)(cid:296)(cid:393)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:329)(cid:912)(cid:368)(cid:271)(cid:393)(cid:912)(cid:271)(cid:292)(cid:387)(cid:312)(cid:361)(cid:342)(cid:357)(cid:361)(cid:912)(cid:388)(cid:310)(cid:296)(cid:357)(cid:296)(cid:912)
93
(cid:335)(cid:296)(cid:287)(cid:296)(cid:361)(cid:361)(cid:271)(cid:357)(cid:394)(cid:850)(cid:912)(cid:61)(cid:271)(cid:368)(cid:296)(cid:357)(cid:312)(cid:271)(cid:329)(cid:912)(cid:368)(cid:271)(cid:393)(cid:912)(cid:292)(cid:312)(cid:361)(cid:354)(cid:373)(cid:368)(cid:296)(cid:361)(cid:912)(cid:912)
(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:361)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:296)(cid:361)(cid:287)(cid:271)(cid:329)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)(cid:312)(cid:335)(cid:912)
(cid:271)(cid:287)(cid:287)(cid:342)(cid:357)(cid:292)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:388)(cid:312)(cid:368)(cid:310)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)
(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:305)(cid:357)(cid:271)(cid:334)(cid:296)(cid:388)(cid:342)(cid:357)(cid:326)(cid:845)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
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(cid:312)(cid:335)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:439)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:361)(cid:368)(cid:271)(cid:368)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)(cid:850)(cid:912)
Litigation Risks
(cid:113)(cid:296)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:296)(cid:393)(cid:354)(cid:342)(cid:361)(cid:296)(cid:292)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:342)(cid:305)(cid:912)
(cid:357)(cid:296)(cid:306)(cid:373)(cid:329)(cid:271)(cid:368)(cid:342)(cid:357)(cid:394)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:329)(cid:312)(cid:368)(cid:312)(cid:306)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:271)(cid:287)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:286)(cid:394)(cid:912)
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(cid:342)(cid:335)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:439)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:287)(cid:342)(cid:335)(cid:292)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
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COMPETITIVE RISKS
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Group Consumer Business
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Group Enterprise Business
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Group Digital Life Business
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EXPANSION RISKS
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Partnership Relations
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Acquisition Risks
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94
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E
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I
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W
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G
O
V
E
R
N
A
N
C
E
A
N
D
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S
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A
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N
A
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L
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Y
P
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A
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C
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Risk Management
Philosophy and Approach
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PROJECT RISKS
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95
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NEW BUSINESS RISKS
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VENDOR/SUPPLY CHAIN RISKS
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INFORMATION TECHNOLOGY RISKS
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CYBER SECURITY RISKS
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(cid:271)(cid:335)(cid:292)(cid:912)(cid:361)(cid:373)(cid:354)(cid:354)(cid:342)(cid:357)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:361)(cid:394)(cid:361)(cid:368)(cid:296)(cid:334)(cid:361)(cid:845)(cid:912)(cid:388)(cid:296)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)
(cid:296)(cid:393)(cid:354)(cid:342)(cid:361)(cid:296)(cid:292)(cid:912)(cid:368)(cid:342)(cid:912)(cid:287)(cid:394)(cid:286)(cid:296)(cid:357)(cid:912)(cid:361)(cid:296)(cid:287)(cid:373)(cid:357)(cid:312)(cid:368)(cid:394)(cid:912)(cid:368)(cid:310)(cid:357)(cid:296)(cid:271)(cid:368)(cid:361)(cid:912)
(cid:388)(cid:310)(cid:312)(cid:287)(cid:310)(cid:912)(cid:287)(cid:271)(cid:335)(cid:912)(cid:357)(cid:296)(cid:361)(cid:373)(cid:329)(cid:368)(cid:912)(cid:312)(cid:335)(cid:912)(cid:292)(cid:312)(cid:361)(cid:357)(cid:373)(cid:354)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)
(cid:87)(cid:312)(cid:335)(cid:306)(cid:271)(cid:354)(cid:342)(cid:357)(cid:296)(cid:912)(cid:93)(cid:296)(cid:329)(cid:296)(cid:287)(cid:342)(cid:334)(cid:334)(cid:373)(cid:335)(cid:312)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:56)(cid:312)(cid:334)(cid:312)(cid:368)(cid:296)(cid:292)(cid:912)(cid:912)(cid:1011)(cid:912)(cid:912)(cid:1)(cid:335)(cid:335)(cid:373)(cid:271)(cid:329)(cid:912)(cid:83)(cid:296)(cid:354)(cid:342)(cid:357)(cid:368)(cid:912)(cid:730)(cid:728)(cid:729)(cid:737)
96
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V
E
R
V
I
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W
B
U
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I
N
E
S
S
R
E
V
I
E
W
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G
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N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
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F
O
R
M
A
N
C
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F
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A
D
D
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Risk Management
Philosophy and Approach
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(cid:361)(cid:296)(cid:287)(cid:373)(cid:357)(cid:312)(cid:368)(cid:394)(cid:912)(cid:361)(cid:326)(cid:312)(cid:329)(cid:329)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:354)(cid:357)(cid:296)(cid:354)(cid:271)(cid:357)(cid:296)(cid:292)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)
(cid:342)(cid:373)(cid:357)(cid:912)(cid:361)(cid:368)(cid:271)(cid:431)(cid:912)(cid:271)(cid:361)(cid:912)(cid:388)(cid:296)(cid:329)(cid:329)(cid:912)(cid:271)(cid:361)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:287)(cid:373)(cid:361)(cid:368)(cid:342)(cid:334)(cid:296)(cid:357)(cid:361)(cid:845)(cid:912)
(cid:312)(cid:335)(cid:287)(cid:329)(cid:373)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:306)(cid:342)(cid:387)(cid:296)(cid:357)(cid:335)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:1)(cid:361)(cid:312)(cid:271)(cid:912)(cid:80)(cid:271)(cid:287)(cid:312)(cid:439)(cid:287)(cid:850)(cid:912)(cid:93)(cid:310)(cid:296)(cid:912)
(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:912)(cid:271)(cid:329)(cid:361)(cid:342)(cid:912)(cid:312)(cid:335)(cid:387)(cid:296)(cid:361)(cid:368)(cid:296)(cid:292)(cid:912)(cid:312)(cid:335)(cid:912)(cid:271)(cid:912)(cid:357)(cid:296)(cid:361)(cid:296)(cid:271)(cid:357)(cid:287)(cid:310)(cid:912)
(cid:271)(cid:335)(cid:292)(cid:912)(cid:292)(cid:296)(cid:387)(cid:296)(cid:329)(cid:342)(cid:354)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:329)(cid:271)(cid:286)(cid:912)(cid:368)(cid:342)(cid:912)(cid:292)(cid:357)(cid:312)(cid:387)(cid:296)(cid:912)
(cid:312)(cid:335)(cid:335)(cid:342)(cid:387)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:312)(cid:361)(cid:912)(cid:271)(cid:357)(cid:296)(cid:271)(cid:850)(cid:912)
DATA PROTECTION AND
PRIVACY RISKS
(cid:113)(cid:296)(cid:912)(cid:361)(cid:296)(cid:296)(cid:326)(cid:912)(cid:368)(cid:342)(cid:912)(cid:354)(cid:357)(cid:342)(cid:368)(cid:296)(cid:287)(cid:368)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:292)(cid:271)(cid:368)(cid:271)(cid:912)(cid:354)(cid:357)(cid:312)(cid:387)(cid:271)(cid:287)(cid:394)(cid:912)
(cid:342)(cid:305)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:287)(cid:373)(cid:361)(cid:368)(cid:342)(cid:334)(cid:296)(cid:357)(cid:361)(cid:912)(cid:312)(cid:335)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:335)(cid:296)(cid:368)(cid:388)(cid:342)(cid:357)(cid:326)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:361)(cid:394)(cid:361)(cid:368)(cid:296)(cid:334)(cid:361)(cid:850)(cid:912)(cid:87)(cid:312)(cid:306)(cid:335)(cid:312)(cid:439)(cid:287)(cid:271)(cid:335)(cid:368)(cid:912)(cid:305)(cid:271)(cid:312)(cid:329)(cid:373)(cid:357)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:361)(cid:296)(cid:287)(cid:373)(cid:357)(cid:312)(cid:368)(cid:394)(cid:912)
(cid:334)(cid:296)(cid:271)(cid:361)(cid:373)(cid:357)(cid:296)(cid:361)(cid:912)(cid:334)(cid:271)(cid:394)(cid:912)(cid:373)(cid:335)(cid:292)(cid:296)(cid:357)(cid:334)(cid:312)(cid:335)(cid:296)(cid:912)(cid:287)(cid:373)(cid:361)(cid:368)(cid:342)(cid:334)(cid:296)(cid:357)(cid:912)
(cid:287)(cid:342)(cid:335)(cid:439)(cid:292)(cid:296)(cid:335)(cid:287)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:361)(cid:373)(cid:329)(cid:368)(cid:912)(cid:312)(cid:335)(cid:912)(cid:329)(cid:312)(cid:368)(cid:312)(cid:306)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)
(cid:271)(cid:287)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:305)(cid:357)(cid:342)(cid:334)(cid:912)(cid:287)(cid:373)(cid:361)(cid:368)(cid:342)(cid:334)(cid:296)(cid:357)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:856)(cid:342)(cid:357)(cid:912)
(cid:357)(cid:296)(cid:306)(cid:373)(cid:329)(cid:271)(cid:368)(cid:342)(cid:357)(cid:394)(cid:912)(cid:439)(cid:335)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:354)(cid:296)(cid:335)(cid:271)(cid:329)(cid:368)(cid:312)(cid:296)(cid:361)(cid:850)(cid:912)(cid:113)(cid:296)(cid:912)
(cid:334)(cid:271)(cid:394)(cid:912)(cid:271)(cid:329)(cid:361)(cid:342)(cid:912)(cid:286)(cid:296)(cid:912)(cid:361)(cid:373)(cid:286)(cid:324)(cid:296)(cid:287)(cid:368)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:312)(cid:334)(cid:354)(cid:342)(cid:361)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)
(cid:342)(cid:305)(cid:912)(cid:271)(cid:292)(cid:292)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:271)(cid:329)(cid:912)(cid:357)(cid:296)(cid:306)(cid:373)(cid:329)(cid:271)(cid:368)(cid:342)(cid:357)(cid:394)(cid:912)(cid:334)(cid:296)(cid:271)(cid:361)(cid:373)(cid:357)(cid:296)(cid:361)(cid:912)
(cid:357)(cid:296)(cid:329)(cid:271)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:361)(cid:296)(cid:287)(cid:373)(cid:357)(cid:312)(cid:368)(cid:394)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:354)(cid:357)(cid:312)(cid:387)(cid:271)(cid:287)(cid:394)(cid:912)(cid:342)(cid:305)(cid:912)
(cid:287)(cid:373)(cid:361)(cid:368)(cid:342)(cid:334)(cid:296)(cid:357)(cid:912)(cid:292)(cid:271)(cid:368)(cid:271)(cid:850)(cid:912)
(cid:113)(cid:296)(cid:912)(cid:287)(cid:342)(cid:335)(cid:368)(cid:312)(cid:335)(cid:373)(cid:296)(cid:912)(cid:368)(cid:342)(cid:912)(cid:296)(cid:335)(cid:361)(cid:373)(cid:357)(cid:296)(cid:912)(cid:292)(cid:271)(cid:368)(cid:271)(cid:912)(cid:354)(cid:357)(cid:312)(cid:387)(cid:271)(cid:287)(cid:394)(cid:912)
(cid:286)(cid:394)(cid:912)(cid:354)(cid:357)(cid:342)(cid:368)(cid:296)(cid:287)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:354)(cid:296)(cid:357)(cid:361)(cid:342)(cid:335)(cid:271)(cid:329)(cid:912)(cid:292)(cid:271)(cid:368)(cid:271)(cid:912)(cid:342)(cid:305)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)
(cid:287)(cid:373)(cid:361)(cid:368)(cid:342)(cid:334)(cid:296)(cid:357)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:361)(cid:368)(cid:271)(cid:431)(cid:850)(cid:912)(cid:113)(cid:296)(cid:912)(cid:271)(cid:329)(cid:361)(cid:342)(cid:912)(cid:296)(cid:335)(cid:361)(cid:373)(cid:357)(cid:296)(cid:912)
(cid:287)(cid:342)(cid:334)(cid:354)(cid:329)(cid:312)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:388)(cid:312)(cid:368)(cid:310)(cid:912)(cid:271)(cid:354)(cid:354)(cid:329)(cid:312)(cid:287)(cid:271)(cid:286)(cid:329)(cid:296)(cid:912)(cid:354)(cid:357)(cid:312)(cid:387)(cid:271)(cid:287)(cid:394)(cid:912)
(cid:329)(cid:271)(cid:388)(cid:361)(cid:845)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:912)(cid:357)(cid:296)(cid:306)(cid:373)(cid:329)(cid:271)(cid:357)(cid:912)(cid:357)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:361)(cid:912)
(cid:312)(cid:335)(cid:912)(cid:342)(cid:357)(cid:292)(cid:296)(cid:357)(cid:912)(cid:368)(cid:342)(cid:912)(cid:357)(cid:296)(cid:439)(cid:335)(cid:296)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:354)(cid:357)(cid:271)(cid:287)(cid:368)(cid:312)(cid:287)(cid:296)(cid:361)(cid:850)(cid:912)(cid:113)(cid:296)(cid:912)
(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:312)(cid:334)(cid:354)(cid:329)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:296)(cid:292)(cid:912)(cid:361)(cid:296)(cid:287)(cid:373)(cid:357)(cid:312)(cid:368)(cid:394)(cid:912)(cid:354)(cid:342)(cid:329)(cid:312)(cid:287)(cid:312)(cid:296)(cid:361)(cid:845)(cid:912)
(cid:354)(cid:357)(cid:342)(cid:287)(cid:296)(cid:292)(cid:373)(cid:357)(cid:296)(cid:361)(cid:845)(cid:912)(cid:368)(cid:296)(cid:287)(cid:310)(cid:335)(cid:342)(cid:329)(cid:342)(cid:306)(cid:312)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:368)(cid:342)(cid:342)(cid:329)(cid:361)(cid:912)
(cid:292)(cid:296)(cid:361)(cid:312)(cid:306)(cid:335)(cid:296)(cid:292)(cid:912)(cid:368)(cid:342)(cid:912)(cid:334)(cid:312)(cid:335)(cid:312)(cid:334)(cid:312)(cid:361)(cid:296)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:342)(cid:305)(cid:912)
(cid:354)(cid:357)(cid:312)(cid:387)(cid:271)(cid:287)(cid:394)(cid:912)(cid:286)(cid:357)(cid:296)(cid:271)(cid:287)(cid:310)(cid:296)(cid:361)(cid:850)(cid:912)(cid:113)(cid:296)(cid:912)(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:271)(cid:329)(cid:361)(cid:342)(cid:912)
(cid:296)(cid:361)(cid:368)(cid:271)(cid:286)(cid:329)(cid:312)(cid:361)(cid:310)(cid:296)(cid:292)(cid:912)(cid:271)(cid:335)(cid:912)(cid:296)(cid:361)(cid:287)(cid:271)(cid:329)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:354)(cid:357)(cid:342)(cid:287)(cid:296)(cid:361)(cid:361)(cid:912)
(cid:305)(cid:342)(cid:357)(cid:912)(cid:312)(cid:335)(cid:287)(cid:312)(cid:292)(cid:296)(cid:335)(cid:368)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:845)(cid:912)(cid:388)(cid:310)(cid:312)(cid:287)(cid:310)(cid:912)
(cid:312)(cid:335)(cid:287)(cid:329)(cid:373)(cid:292)(cid:296)(cid:361)(cid:912)(cid:361)(cid:296)(cid:287)(cid:373)(cid:357)(cid:312)(cid:368)(cid:394)(cid:912)(cid:286)(cid:357)(cid:296)(cid:271)(cid:287)(cid:310)(cid:296)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:296)(cid:335)(cid:361)(cid:373)(cid:357)(cid:296)(cid:912)
(cid:368)(cid:312)(cid:334)(cid:296)(cid:329)(cid:394)(cid:912)(cid:357)(cid:296)(cid:361)(cid:354)(cid:342)(cid:335)(cid:361)(cid:296)(cid:845)(cid:912)(cid:312)(cid:335)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:329)(cid:329)(cid:394)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)
(cid:296)(cid:393)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:329)(cid:329)(cid:394)(cid:845)(cid:912)(cid:368)(cid:342)(cid:912)(cid:334)(cid:312)(cid:335)(cid:312)(cid:334)(cid:312)(cid:361)(cid:296)(cid:912)(cid:312)(cid:334)(cid:354)(cid:271)(cid:287)(cid:368)(cid:850)(cid:912)
FINANCIAL RISKS
(cid:93)(cid:310)(cid:296)(cid:912)(cid:334)(cid:271)(cid:312)(cid:335)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:361)(cid:912)(cid:271)(cid:357)(cid:312)(cid:361)(cid:312)(cid:335)(cid:306)(cid:912)(cid:305)(cid:357)(cid:342)(cid:334)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)
(cid:439)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:271)(cid:361)(cid:361)(cid:296)(cid:368)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:329)(cid:312)(cid:271)(cid:286)(cid:312)(cid:329)(cid:312)(cid:368)(cid:312)(cid:296)(cid:361)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)
(cid:305)(cid:342)(cid:357)(cid:296)(cid:312)(cid:306)(cid:335)(cid:912)(cid:296)(cid:393)(cid:287)(cid:310)(cid:271)(cid:335)(cid:306)(cid:296)(cid:845)(cid:912)(cid:312)(cid:335)(cid:368)(cid:296)(cid:357)(cid:296)(cid:361)(cid:368)(cid:912)(cid:357)(cid:271)(cid:368)(cid:296)(cid:845)(cid:912)
(cid:334)(cid:271)(cid:357)(cid:326)(cid:296)(cid:368)(cid:845)(cid:912)(cid:329)(cid:312)(cid:356)(cid:373)(cid:312)(cid:292)(cid:312)(cid:368)(cid:394)(cid:845)(cid:912)(cid:271)(cid:287)(cid:287)(cid:296)(cid:361)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)(cid:439)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:335)(cid:306)(cid:912)
(cid:361)(cid:342)(cid:373)(cid:357)(cid:287)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:312)(cid:335)(cid:287)(cid:357)(cid:296)(cid:271)(cid:361)(cid:296)(cid:292)(cid:912)(cid:287)(cid:357)(cid:296)(cid:292)(cid:312)(cid:368)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:361)(cid:850)(cid:912)
(cid:34)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:334)(cid:271)(cid:357)(cid:326)(cid:296)(cid:368)(cid:361)(cid:912)(cid:287)(cid:342)(cid:335)(cid:368)(cid:312)(cid:335)(cid:373)(cid:296)(cid:912)(cid:368)(cid:342)(cid:912)(cid:286)(cid:296)(cid:912)
(cid:387)(cid:342)(cid:329)(cid:271)(cid:368)(cid:312)(cid:329)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:368)(cid:310)(cid:312)(cid:361)(cid:912)(cid:334)(cid:271)(cid:394)(cid:912)(cid:310)(cid:296)(cid:312)(cid:306)(cid:310)(cid:368)(cid:296)(cid:335)(cid:912)
(cid:296)(cid:393)(cid:296)(cid:287)(cid:373)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)(cid:305)(cid:373)(cid:335)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)(cid:271)(cid:287)(cid:368)(cid:312)(cid:387)(cid:312)(cid:368)(cid:312)(cid:296)(cid:361)(cid:912)
(cid:271)(cid:335)(cid:292)(cid:912)(cid:312)(cid:335)(cid:287)(cid:357)(cid:296)(cid:271)(cid:361)(cid:296)(cid:912)(cid:287)(cid:357)(cid:296)(cid:292)(cid:312)(cid:368)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:912)(cid:354)(cid:357)(cid:296)(cid:334)(cid:312)(cid:373)(cid:334)(cid:361)(cid:912)
(cid:305)(cid:342)(cid:357)(cid:912)(cid:334)(cid:271)(cid:357)(cid:326)(cid:296)(cid:368)(cid:912)(cid:354)(cid:271)(cid:357)(cid:368)(cid:312)(cid:287)(cid:312)(cid:354)(cid:271)(cid:335)(cid:368)(cid:361)(cid:850)(cid:912)
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(cid:440)(cid:373)(cid:287)(cid:368)(cid:373)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)(cid:305)(cid:357)(cid:342)(cid:334)(cid:912)(cid:342)(cid:373)(cid:357)(cid:912)(cid:342)(cid:354)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)
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(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:312)(cid:361)(cid:912)(cid:292)(cid:312)(cid:361)(cid:287)(cid:373)(cid:361)(cid:361)(cid:296)(cid:292)(cid:912)(cid:305)(cid:373)(cid:357)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)(cid:342)(cid:335)(cid:912)
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NETWORK FAILURE AND
CATASTROPHIC RISKS
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TALENT MANAGEMENT RISKS
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ELECTROMAGNETIC ENERGY RISKS
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W
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Risk Management
Philosophy and Approach
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CLIMATE CHANGE RISKS
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(cid:361)(cid:368)(cid:271)(cid:335)(cid:292)(cid:271)(cid:357)(cid:292)(cid:361)(cid:845)(cid:912)(cid:287)(cid:271)(cid:357)(cid:286)(cid:342)(cid:335)(cid:912)(cid:368)(cid:271)(cid:393)(cid:296)(cid:361)(cid:845)(cid:912)(cid:312)(cid:335)(cid:287)(cid:357)(cid:296)(cid:271)(cid:361)(cid:312)(cid:335)(cid:306)(cid:912)
(cid:296)(cid:335)(cid:296)(cid:357)(cid:306)(cid:394)(cid:912)(cid:354)(cid:357)(cid:312)(cid:287)(cid:296)(cid:361)(cid:912)(cid:342)(cid:357)(cid:912)(cid:271)(cid:287)(cid:287)(cid:342)(cid:334)(cid:354)(cid:271)(cid:335)(cid:394)(cid:312)(cid:335)(cid:306)(cid:912)
(cid:312)(cid:335)(cid:305)(cid:357)(cid:271)(cid:361)(cid:368)(cid:357)(cid:373)(cid:287)(cid:368)(cid:373)(cid:357)(cid:296)(cid:912)(cid:312)(cid:335)(cid:387)(cid:296)(cid:361)(cid:368)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)
(cid:271)(cid:292)(cid:271)(cid:354)(cid:368)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:357)(cid:912)(cid:334)(cid:312)(cid:368)(cid:312)(cid:306)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:850)(cid:912)(cid:93)(cid:342)(cid:912)(cid:271)(cid:292)(cid:292)(cid:357)(cid:296)(cid:361)(cid:361)(cid:912)
(cid:368)(cid:310)(cid:296)(cid:361)(cid:296)(cid:912)(cid:287)(cid:342)(cid:335)(cid:287)(cid:296)(cid:357)(cid:335)(cid:361)(cid:845)(cid:912)(cid:388)(cid:296)(cid:912)(cid:310)(cid:271)(cid:387)(cid:296)(cid:912)(cid:271)(cid:292)(cid:342)(cid:354)(cid:368)(cid:296)(cid:292)(cid:912)(cid:271)(cid:912)
(cid:368)(cid:388)(cid:342)(cid:891)(cid:354)(cid:357)(cid:342)(cid:335)(cid:306)(cid:296)(cid:292)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:271)(cid:287)(cid:310)(cid:912)(cid:312)(cid:850)(cid:296)(cid:850)(cid:912)(cid:287)(cid:271)(cid:357)(cid:286)(cid:342)(cid:335)(cid:912)
(cid:357)(cid:296)(cid:292)(cid:373)(cid:287)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:368)(cid:271)(cid:357)(cid:306)(cid:296)(cid:368)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:373)(cid:354)(cid:306)(cid:357)(cid:271)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)
99
Sustainability
The Singtel Group remains committed to sustainable growth as we seek to make a positive
impact on our stakeholders, the communities we operate in, and the environment.
We strive to achieve this through a series of initiatives that aims to foster a more inclusive
and diverse workplace and society, support vulnerable groups, reduce our environmental
footprint, and spark positive change through social innovation.
Our efforts have not gone unnoticed, as we continue to be acknowledged globally in areas
such as diversity, governance and climate change. In 2018, we were recognised by awards
and indices including ASEAN’s Top 5 and Singapore’s Top 3 Publicly Listed Companies at the
2nd ASEAN Corporate Governance Awards, Best Strategy and Sustainability Management
and Best Climate Change at the Sustainable Business Awards Singapore 2018, 2019
Bloomberg Gender-Equality Index and FTSE4Good Index for our sustainability initiatives.
Our sustainability strategy is made up of four key pillars, that aim to:
• Leave the smallest environmental footprint;
• Ensure the development and well-being of our people;
• Enable the development and inclusion of vulnerable segments in our community; and
• Catalyse change through responsible business practices and innovation in the marketplace.
Singtel and Optus employees volunteering at schools from the Bharti Foundation’s Satya Bharti School Programme as part of Better Together, our annual
overseas volunteering programme.
Singapore Telecommunications Limited | Annual Report 2019
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Sustainability
Environment
The Smallest Footprint
Reducing e-waste
In Singapore, ReCYCLE saw compounded growth in collection rate of
Recycle
and Reuse
with over
400%
24,000kg
of mobile phones, batteries and
accessories since 2017.
In Australia, we diverted
4,000kg
of e-waste from landfills, saving 10 tonnes of CO2 emissions and
conserving 50 tonnes of mineral resource.
We recycled, reused
and incinerated for energy
recovery
77%
of waste generated within
our operations.
Environmental issues have heightened
in recent years as the impact of
climate change becomes more
evident. We believe that everyone,
from governments and companies
to the person on the street, has a
responsibility to tackle climate change
through mitigation and adaptation
efforts. At Singtel, we aim to do
our part by leaving the smallest
environmental footprint, even as our
business continues to expand.
SETTING THE CLIMATE AGENDA
FROM THE TOP
Singtel is taking a regional leadership
role to steer the industry towards
tackling climate change. We have
set science-based carbon targets
to serve as a guide for all of our
business activities. For instance,
we are searching for renewable
energy sources to help us achieve
and exceed our carbon reduction
targets approved by the Science
Based Targets initiative. Last year,
we also pledged to support 2018
as the Year of Climate Action
for Singapore. In Australia, we
continue to play an active role in
the Australian Business Roundtable
for Disaster Resilience and Safer
Communities, collaborating with
diverse stakeholders in Australia
to help shape government policy
and planning for climate-related
disasters.
MINIMISING THE ENVIRONMENTAL
IMPACT OF OUR PRODUCTS
As a leading communications
technology company, we are
committed to minimising e-waste,
such as metals, plastics and batteries
from mobile phones, that have the
potential to be pollutive. Our ongoing
efforts such as ReCYCLE in Singapore
and Mobile Muster in Australia have
been well-received by customers and
staff and collection rates continue to
grow yearly.
101
People
Ensuring the Development and Well-being of Our Greatest Asset
NURTURING OUR PEOPLE TO
POWER OUR FUTURE
Our people are our most important
asset and we ensure that they are
equipped with the relevant skills to
navigate a fast-changing global
landscape. We take a proactive
approach to the future of work as
we recognise the huge impact on
business from rapid digitisation.
Hence, we continue to improve the
digital literacy and capabilities of
our people through various training
initiatives. By grooming a digital
workforce and workplace, we
enhance our employee experience
and drive Singtel’s overall digital
transformation.
ATTRACTING AND RETAINING
TALENT
We have ramped up our efforts to
attract digitally-savvy candidates
to ensure we remain relevant in the
new economy. Part of this effort
involves promoting Singtel’s thought
leadership in the areas of digital
transformation journey and employer
value proposition at recruitment
events. We also launched a new
Digital Leadership Experience
programme in FY 2019 to develop
leaders of digital businesses.
GENDER DIVERSITY AND
INCLUSION
We strongly believe that diversity in
the workplace is a key competitive
advantage for us, providing a broad
range of insights and opinions
reflective of the diverse markets we
operate in. To foster such diversity,
we are committed to increasing the
representation of women in senior
leadership and technical roles.
Singtel was one of only four
Singapore companies and the only
Southeast Asian communications
company to be recognised for our
gender diversity efforts when we
were listed in the 2019 Bloomberg
Gender-Equality Index. We were also
part of the Thomson Reuters
IX Global Diversity and Inclusion
Index 2018.
Gender
diversity in
management
27%
of female employees in middle
and top management.
Gender Distribution
Age Distribution
Singtel
Optus
Singtel
Optus
Female
Male
35%
65%
Female
Male
32%
68%
< 30 years old
30-49 years old
≥ 50 years old
20%
61%
19%
< 30 years old
30-49 years old
≥ 50 years old
24%
59%
17%
Singapore Telecommunications Limited | Annual Report 2019
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Sustainability
Community
Driving Positive Change in Our Communities
Giving for
good
We have invested
S$90m
into enabling and inclusion
programmes for vulnerable
groups since 2016.
Donated
Singtel Touching Lives Fund
S$3m
S$42m
in 2018, bringing the total funds donated to
since its inception in 2002.
Yes4Good
More than
donated by employees to
A$175k
277
charities in 2018.
More than
A$5.7m
donated since 2005.
As a leading communications group,
we are well-positioned to play a
significant role in supporting the
inclusion and progress of society’s
more vulnerable segments. By
leveraging our technologies and
programmes, we aim to improve
the well-being of vulnerable groups
while helping them realise their
potential. We also invest directly in
the communities we operate in as
part of our sustainability strategy.
Through these efforts, Singtel strives
to be a responsible corporate citizen
that is a force for positive change in
society.
PROVIDING OPPORTUNITIES
THROUGH EDUCATION AND
EMPLOYABILITY
Through various partnerships
and programmes, we equip youth
with disabilities with the skills they
need to enter the workforce and
lead independent lives. One of our
key initiatives in this effort is the
Singtel Touching Lives Fund, our
flagship corporate philanthropy
programme which raises funds for
six schools that provide educational
support for youth with special
needs in Singapore. Another of
our initiatives, the Singtel Enabling
Innovation Centre, works to enhance
employment opportunities for
persons with disabilities by providing
them with customised job training. It
also promotes and showcases the use
of assistive technologies that enable
them to be productive at work.
In Australia, Optus, as a founding
member of the Australian Business
and Community Network (ABCN),
continues to work closely with
other ABCN members to improve
opportunities and outcomes for
vulnerable youth in high-needs
schools across Australia. Our
103
Pathways2Employment Programme
helps young people build confidence
and skills and provides opportunities
for them to secure employment with
Optus Retail. We also collaborated
with the KARI Foundation to help
indigenous young people in Australia
achieve and thrive in society
through mentoring and education
programmes.
ENCOURAGING OUR PEOPLE TO
SERVE OUR COMMUNITIES
We actively encourage our staff to
play their part in making a positive
impact on our communities. Beyond
helping the less fortunate around
them, such activities also build
empathy and character.
Our employees can volunteer their
time and talent for a range of social
and environmental causes, such
as the annual Singtel Carnival –
Singapore’s largest event dedicated
to children with special needs. In
Australia, our online portal Yes4Good
allows our people to donate, sign up
to volunteer and fundraise for their
favourite causes. Meanwhile, Better
Together – our annual overseas
volunteering programme with
our associates – organised three
expeditions in 2018 to India, the
Philippines and Thailand.
INCLUSION AND WELL-BEING
One key focus of our community
strategy involves supporting the
cancer cause. Given its pervasiveness
in society, we strongly believe that
everyone affected by cancer should
have access to care regardless of
their social or financial status. To
this end, we continue to support
and participate in initiatives such
as the Singtel-Singapore Cancer
Society Race Against Cancer, an
event that aims to raise funds to
drive Singapore Cancer Society
programmes. In Australia, Optus
employees continue to participate in
the Tour de Cure to raise awareness
and funds towards cancer research
and prevention.
We also strive to improve outcomes
for disadvantaged groups, such as
vulnerable youth and persons with
disabilities. Through the Singapore
Business Network on DisAbility, we
work with like-minded companies to
boost the employability of persons
with disabilities by raising awareness,
and sharing expertise and resources.
Optus employees participating in the Tour de Cure to raise funds in support of cancer research and prevention.
Singapore Telecommunications Limited | Annual Report 2019
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Sustainability
Marketplace And Customers
A Catalyst for Change Through Responsible Business Practices
and Innovation
In 2018, the third instalment of the
annual programme held in Sydney,
Australia attracted over 3,000 applicants
from Singapore, Australia, Thailand, the
Philippines and Indonesia. 48 selected
start-ups received more than S$1 million
in funding and support, and were
advised by volunteer teams of Singtel
experts and partners from the social
and private sectors on their technology
solutions and business models.
The Singtel Group is committed to
ethical and responsible business
practices, which extend to our
supply chain as well. During the
year, Australia introduced a new
Modern Slavery Legislation, which
we will be using to update our
Supplier Code of Conduct, Supplier
Risk Assessment Questionnaires,
Supplier Service Agreements and
engagement process to ensure that
our supply chain operates at the
highest level of human and labour
rights as well as environmental
practices.
Recognising that building a
sustainable future requires the
work of many hands, Singtel
supports innovative individuals
and businesses that are working to
address social issues for vulnerable
people.
We aim to empower such innovators
through the Singtel Group Future
Makers, our regional accelerator
programme that supports
entrepreneurs. The programme
offers participants workshops,
coaching and mentoring
sessions to help with developing
vision, leveraging technology,
understanding customers, the art
of storytelling and digital marketing
strategies.
105
KEY ENVIRONMENTAL AND SOCIAL PERFORMANCE INDICATORS
Singapore
Australia
2019
2018
2019
2018
1,347,094
164,629
97
753,238
1,395,100
174,391
118
752,207
1,749,622
418,060
160
1,724,106
418,760
195
78,774 (2)
74,235 (2)
7,538
6,289
2,294 (3)
2,197 (3)
35
34
18.3
12.4
5.9
34.8
1.5
0.7
12.9
35
33
17.1
11.1
6.0
30.6
2.1
0.9
14.7
32
22
17.0
10.6
6.4
18.4
2.2
1.3
16.7
32
21
15.4
9.7
5.7
20.6 (5)
4.1
2.8
7.3
Environmental Performance (1)
Energy use (GJ)
Carbon footprint (tonnes CO2 equivalent)
Electricity intensity (kWh/TB)
Water use (cubic metres)
Hazardous and non-hazardous wastes
(tonnes)
Social Performance: People
Gender diversity (% female)
– Total employees
– Middle and Top Management
Employee voluntary turnover (%)
Employee voluntary turnover by gender (%)
– Male
– Female
Average training hours per employee
Employee health and safety (4)
– Workplace injury incidence rate
– Workplace injury frequency rate
– Workplace injury severity rate
Social Performance: Community
Community investment ($ million) (6)
Total volunteering hours
S$11.7
13,503
S$7.5
15,500
A$8.7
13,206
A$9.4
12,128
Notes:
(1) Please refer to the Singtel Group Sustainability Report for the reporting scope of
environmental indicators.
(2) Water use for Optus Sydney Campus only.
(3) Data covers waste directly managed by Optus’ contracted waste vendor.
(4) Workplace safety and health metrics based on International Labour Organization (ILO)
definitions.
(5) Restated.
(6) Community investment has been verified by The London Benchmarking Group (LBG).
Scan here to view
the Singtel Group
Sustainability Report 2019
online.
Singapore Telecommunications Limited | Annual Report 2019
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Group Five-year
Financial Summary
Income Statement (S$ 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 (2)
Underlying net profit (3)
Exchange rate (A$ against S$) (4)
Cash Flow (S$ million)
Group free cash flow (5)
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 (6) (%)
Return on equity (2) (%)
Return on total assets (2) (%)
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 (2)
Earnings per share - underlying net profit (3)
Net assets per share
Dividend per share - ordinary
Dividend per share - special
‘’Singtel’’ refers to Singtel Group excluding Optus.
2019 (1)
2018 (1)
2018
2017
2016
2015
Financial Year ended 31 March
17,372
8,365
9,006
9,099
17,268
8,235
9,033
8,612
17,532
8,396
9,136
8,710
16,711
7,928
8,784
8,425
16,961
7,663
9,298
9,115
17,223
7,348
9,875
8,790
4,692
2,022
2,670
2,699
1,536
6,228
4,006
3,095
2,825
0.990
3,650
1,242
1,006
1,028
1,402
1,718
5,051
2,194
2,856
2,724
2,461
7,511
5,261
5,473
3,593
1.049
3,606
1,126
989
947
1,492
2,349
5,089
2,181
2,909
2,774
2,461
7,550
5,210
5,451
3,544
1.049
3,606
1,126
989
947
1,492
2,349
4,998
2,213
2,784
2,669
2,886
7,884
5,645
3,853
3,871
1.043
3,054
1,040
514
500
1,500
2,261
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
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
48,915
29,838
9,883
48,496
29,737
9,877
48,254
29,679
9,820
48,294
28,214
10,384
43,566
24,989
9,142
42,067
24,733
7,963
76
7.7
10.4
6.3
1.6
76
9.6
18.9
11.2
1.3
77
9.5
18.8
11.2
75
10.9
14.5
8.3
74
11.7
15.6
9.0
74
12.1
15.6
9.3
1.3
1.3
1.2
1.0
16.2
20.1
20.2
23.4
25.3
29.2
18.96
17.31
183
17.5
-
33.53
22.01
182
17.5
3.0
33.40
21.71
182
17.5
3.0
23.96
24.07
173
17.5
-
24.29
23.88
157
17.5
-
23.73
23.71
155
17.5
-
Notes:
(1) Based on Singapore Financial Reporting Standards (International).
(2) FY 2018 included the gain on disposal of economic interest in NetLink Trust of S$2.03 billion.
(3) Underlying net profit is defined as net profit before exceptional items.
(4) Average A$ rate for translation of Optus’ operating revenue.
(5) Free cash flow refers to cash flow from operating activities, including dividends from associates, less cash capital expenditure.
(6) Return on invested capital is defined as EBIT (post-tax) divided by average capital.
107
Group Five-year
Financial Summary
FIVE-YEAR FINANCIAL REVIEW
FY 2019
The Group has executed well on its strategy amid
challenging conditions and gained market share in mobile
across both Singapore and Australia. Operating revenue
was stable at S$17.37 billion while EBITDA declined 7.1%
to S$4.69 billion due partly to a 6% depreciation in the
Australian Dollar. In constant currency terms, operating
revenue grew 3.7% driven mainly by increases in ICT,
digital services and equipment sales. However, EBITDA
was down 3.9% mainly due to lower legacy carriage
services especially voice, and price erosion.
The associates’ pre-tax contributions declined a steep 38%
to S$1.54 billion mainly driven by operating losses at Airtel
and lower contribution from Telkomsel amid aggressive
price competition in India and Indonesia. The decline was
partly mitigated by double-digit profit growth at Globe
with robust revenue growth in mobile and broadband.
With lower contributions from the associates, underlying
net profit declined by 21%. Net profit was S$3.10 billion,
down 44% from FY 2018 which included an exceptional
gain from the divestment of units in NetLink Trust.
FY 2018
The Group delivered record earnings for FY 2018 with net
profit of S$5.45 billion bolstered by exceptional gain of
S$2.03 billion from the divestment of units in NetLink Trust
and a strong core performance. Operating revenue was
S$17.53 billion, 4.9% higher than FY 2017, while EBITDA rose
1.8% to S$5.09 billion reflecting strong customer gains in
Australia and first time contribution from Turn (acquired
by Amobee in April 2017). In constant currency terms,
operating revenue and EBITDA increased by 4.7% and
1.5% respectively.
The associates’ pre-tax contributions declined 15% to
S$2.46 billion on weaker earnings from Airtel India
and Telkomsel impacted by intense competition and
mandated reduction in mobile termination charges in
India, as well as lower contribution from NetLink NBN
Trust following the reduction in economic interest of 75.2%
in July 2017. The decline was partly mitigated by higher
contribution from Intouch (acquired in November 2016).
With lower associates’ contributions, higher depreciation
and amortisation charges on network investments and
spectrum, as well as increased net finance expense,
underlying net profit declined by 8.4%.
FY 2017
The Group delivered resilient earnings amid heightened
competition across all the markets the Group operated in.
Operating revenue was S$16.71 billion, 1.5% lower than
FY 2016 but would have increased 2.0% excluding the
impact of regulatory mobile termination rates change in
Australia from 1 January 2016. EBITDA remained stable
at S$5.0 billion. The Australian Dollar appreciated 2%
against the Singapore Dollar. In constant currency terms,
operating revenue and EBITDA decreased by 2.6% and
1.5% respectively.
The associates’ pre-tax contributions rose 5.4% to
S$2.94 billion despite weakness in Airtel which faced
intense price competition in India. Strong growth
at Telkomsel and NetLink Trust, as well as first time
contribution from Intouch (acquired in November 2016)
was partly offset by lower profits at Airtel, AIS and Globe.
Underlying net profit grew 2.9% and net profit was stable
at S$3.85 billion with an exceptional loss compared to an
exceptional gain in FY 2016.
Singapore Telecommunications Limited | Annual Report 2019
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Group Five-year
Financial Summary
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 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 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.
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.
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
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$3.78 billion. In
constant currency terms, underlying net profit and net
profit would have increased 7.5% and 6.2% respectively
from FY 2014.
109
Group Value Added
Statements
GROUP VALUE ADDED STATEMENTS
PRODUCTIVITY DATA
Value added from:
Operating revenue
Less: Purchases of goods and services
Other income
Interest and investment income (net)
Share of results of associates (post-tax)
Exceptional items (1)
FY 2019
S$ million
FY 2018
S$ million
17,372
(10,307)
7,065
225
38
1,563
68
1,894
17,268
(9,716)
7,552
259
45
1,804
1,895
4,003
Total value added
8,959
11,555
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
Total distribution
Retained in business
Depreciation and amortisation
Retained profits
Non-controlling interests
2,597
675
393
2,857
6,522
2,222
238
(23)
2,437
2,760
703
390
3,346
7,199
2,250
2,127
(21)
4,356
Total value added
8,959
11,555
Average number of employees
24,071
25,614
Note:
(1) FY 2018 included the gain on disposal of economic interest in NetLink Trust of S$2.03 billion.
Value Added
(S$ million)
2019
2018 (1)
8,959
11,555
-2,596
Value Added Per Employee
(S$‘000)
2019
2018 (1)
372
-79
451
Value Added Per Dollar
of Employee Costs
(S$)
2019
2018 (1)
3.45
4.19
-0.74
Value Added Per Dollar
of Turnover
(S$)
2019
2018 (1)
0.52
-0.15
0.67
Singapore Telecommunications Limited | Annual Report 2019
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Management
Discussion and Analysis
GROUP
Operating revenue
EBITDA
EBITDA margin
Financial Year ended 31 March
2019
(S$ million)
2018
(S$ million)
Change
(%)
Change in
constant
currency (1)
(%)
17,372
17,268
4,692
5,051
27.0%
29.2%
Share of associates’ pre-tax profits
1,536
2,461
EBIT
(exclude share of associates’ pre-tax profits)
Net finance expense
Taxation
Underlying net profit (2)
Underlying earnings per share (S cents) (2)
Exceptional items (post-tax)
Net profit
4,006
2,470
5,261
2,801
(355)
(345)
(850)
(1,344)
2,825
3,593
17.3
270
22.0
1,880
3,095
5,473
Basic earnings per share (S cents)
19.0
33.5
Share of associates’ post-tax profits
1,383
1,823
Notes:
(1) Assuming constant exchange rates for the Australian Dollar, United States Dollar and/or regional currencies (Indian Rupee, Indonesian Rupiah, Philippine Peso
and Thai Baht) from the previous year ended 31 March 2018 (FY 2018).
(2) Underlying net profit refers to net profit before exceptional items.
111
0.6
-7.1
-37.6
-23.9
-11.8
2.9
-36.8
-21.4
-21.4
-85.7
-43.5
-43.5
-24.1
3.7
-3.9
-36.2
-21.8
-9.2
6.2
-35.8
-19.1
-19.1
-85.2
-41.8
-41.8
-21.8
The Group has executed well on its
strategy amid challenging industry,
business and economic conditions.
The fundamentals of the core
businesses remained strong and
the Group gained market share in
mobile across both Singapore and
Australia led by product innovations,
content and services. Amobee and
Trustwave continued to scale and
deepen their capabilities, while the
regional associates further monetised
the growth in data as smartphone
adoption increased. Leveraging on the
Group’s strengths and customer base,
Singtel continued to build
digital ecosystems in payments,
gaming and esports.
In constant currency terms, operating
revenue grew 3.7% driven by increases
in ICT, digital services and equipment
sales. However, EBITDA was down
3.9% mainly due to lower legacy
carriage services especially voice, and
price erosion. With 6% depreciation
in the Australian Dollar, operating
revenue was stable while EBITDA
declined 7.1%.
Consequently, the Group’s EBIT
(before the associates’ contributions)
declined 12% and would have been
down 9.2% in constant currency terms.
divestment of units in NetLink Trust.
Consequently, the Group recorded
a net profit of S$3.10 billion, down
44% from last year.
The Group has successfully diversified
its earnings base through its expansion
and investments in overseas markets.
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.
The Group’s financial position and
cash flow generation remained strong
as at 31 March 2019. Free cash flow for
the year was up 1.2% to S$3.65 billion.
In the emerging markets, the
regional associates continued to
invest in network, spectrum and
content to drive data usage. Pre-tax
contributions from the associates
declined a steep 38% mainly due
to Airtel and Telkomsel, the Group’s
two largest regional associates.
Airtel recorded operating losses on
sustained pricing pressures in the
Indian mobile market. Telkomsel’s
earnings fell on lower revenue due to
fierce competition in Indonesia in the
earlier part of the financial year when
the mandatory SIM card registration
exercise took effect. Including
associates’ contributions, the Group’s
EBIT was S$4.01 billion, down 24%
from last year.
Net finance expense was up 2.9%
on lower dividend income from the
Southern Cross consortium and higher
interest expense from increased
borrowings.
Depreciation and amortisation
charges fell 1.2% but rose 2.7% in
constant currency terms, on increased
investments in mobile infrastructure
network, spectrum and project related
capital spending.
With lower contributions from the
associates, underlying net profit
declined by 21%. Exceptional gain
was lower as FY 2018 was boosted
by a S$2.03 billion of gain on the
Singapore Telecommunications Limited | Annual Report 2019
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Management
Discussion and Analysis
BUSINESS SEGMENT
Operating revenue
Australia Consumer
Singapore Consumer
Group Enterprise
Core Business
Group Digital Life
Group
EBITDA
Australia Consumer
Singapore Consumer
Group Enterprise
International Group
Core Business
Group Digital Life
Corporate
Group
EBIT (before share of associates’ pre-tax profits)
Australia Consumer
Singapore Consumer
Group Enterprise
International Group
Core Business
Group Digital Life
Corporate
Group
Financial Year ended 31 March
2019
(S$ million)
2018
(S$ million)
Change
(%)
Change in
constant
currency (1)
(%)
7,579
2,240
6,329
16,148
1,224
7,475
2,236
6,477
16,188
1,080
17,372
17,268
2,456
736
1,695
(25)
4,862
(92)
(78)
2,591
753
1,863
(22)
5,186
(51)
(84)
4,692
5,051
1,164
485
1,080
(27)
2,702
(152)
(81)
1,261
513
1,256
(23)
3,006
(120)
(85)
2,470
2,801
1.4
0.2
-2.3
-0.2
13.3
0.6
-5.2
-2.3
-9.0
16.2
-6.3
78.8
-7.3
-7.1
-7.7
-5.5
-14.0
13.7
-10.1
26.2
-5.5
-11.8
7.4
0.2
-1.0
3.1
13.2
3.7
0.5
-2.3
-8.3
16.2
-3.2
79.1
-7.3
-3.9
-2.1
-5.5
-13.7
13.7
-7.7
26.2
-5.5
-9.2
Note:
(1) Assuming constant exchange rates for the Australian Dollar and United States Dollar from FY 2018.
113
GROUP DIGITAL LIFE
Group Digital Life posted robust
revenue growth of 13% to S$1.22
billion from digital marketing arm
Amobee and video-on-demand
streaming service HOOQ. Amobee’s
revenue rose 12% fuelled by growth
in its programmatic advertising
business, and contributions from
Videology assets (platform for
advanced TV and video advertising
acquired in August 2018) and first
time recognition of technology
licence fees from ITV plc, which
mitigated the decline in its managed
media business. HOOQ’s revenue
more than doubled, boosted by
growth in paying subscribers and
increased scale. Group Digital Life’s
negative EBITDA increased due
mainly to Amobee’s lower revenue
from its higher-margin media
business and inclusion of Videology’s
losses.
GROUP CONSUMER
In Australia, operating revenue
grew 7.4% despite heightened
competition. The increase was
driven mainly by higher equipment
sales and handset leasing, and
customer growth with record net
additions of 454,000 branded
postpaid handset customers for the
year. Mobile service revenue was
stable as postpaid customer gains
was negated by ARPU decline amid
intense data price competition.
Mass Market Fixed revenue
remained stable with higher off-net
revenue, driven by NBN customer
growth of 137,000 from a year ago,
offset by lower on-net revenue. NBN
migration revenues fell 3.6%,
hit by the temporary suspension
in the rollout of HFC services over
the NBN during the financial year.
EBITDA was stable but would
have grown 2.6% excluding NBN
migration revenues and dispute
settlement recorded in FY 2018.
In Singapore, operating revenue
was stable in a highly competitive
market. Including equipment
sales, total Mobile revenue was
flat. Mobile service revenue fell
3.8% from lower voice and ARPU
dilution partially offset by growth in
data. Postpaid continued its strong
momentum with net additions of
125,000 customers for the year.
Fixed broadband revenue rose
1.7% on increased take-up of higher
speed fibre plans. TV revenue,
boosted by the 2018 World Cup
revenue, grew 4.9%. However, with
the steep decline in voice revenues,
EBITDA dipped 2.3%.
GROUP ENTERPRISE
Operating revenue slid 2.3%
impacted by price competition and
longer sales cycle in a cautious
trading environment, particularly
in Australia. Revenue would have
been stable in constant currency
terms with growth in ICT offset by
decline in legacy carriage services
especially voice. ICT revenue, which
constituted 48% (FY 2018: 46%) of
Group Enterprise’s revenue, grew
2.1% in constant currency terms. The
growth was driven by cyber security,
cloud and digital services, which in
total contributed approximately
S$1.3 billion in revenue, up 15%
from last year. EBITDA however
declined 9.0% mainly from price
erosions on renewals of major
public sector ICT contracts, lower
voice revenues and investments in
digitalisation initiatives. Including
higher depreciation charges from
investments in network, data centres
and project related capital spending,
EBIT fell 14%.
Singapore Telecommunications Limited | Annual Report 2019
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Management
Discussion and Analysis
ASSOCIATES (1)
Group share of associates' pre-tax profits (3)
1,536
2,461
Financial Year ended 31 March
2019
(S$ million)
2018
(S$ million)
Share of post-tax profits
Telkomsel
AIS
Globe (3)
- ordinary results
- exceptional items
Intouch (3) (4)
- operating results
- amortisation of acquired intangibles
Airtel (3)
BTL (5)
Regional associates (3)
NetLink NBN Trust/ NetLink Trust (6)
Other associates (3) (7)
843
286
251
-
251
101
(22)
79
(131)
(40)
(171)
1,287
48
47
1,031
292
180
22
202
106
(21)
86
101
(18)
83
1,694
72
57
Group share of associates’ post-tax profits (3)
1,383
1,823
“nm” denotes not meaningful.
Change
(%)
-37.6
Change in
constant
currency (2)
(%)
-36.2
-18.3
-1.7
39.3
nm
23.9
-4.4
8.3
-7.5
nm
127.8
nm
-24.0
-32.9
-17.6
-24.1
-12.4
-3.9
45.3
nm
29.1
-6.5
5.9
-9.5
nm
140.9
nm
-21.5
-32.9
-17.6
-21.8
Notes:
(1) Based on Singapore Financial Reporting Standards (International).
(2) Assuming constant exchange rates for the regional currencies (Indian Rupee, Indonesian Rupiah, Philippine Peso and Thai Baht) from FY 2018.
(3) Share of results excluded the Group’s share of the associates’ significant one-off items which have been classified as exceptional items of the Group.
(4) Singtel holds an equity interest of 21.0% in Intouch which has an equity interest of 40.5% in AIS.
(5) Bharti Telecom Limited (BTL) holds an equity interest of 50.1% in Airtel as at 31 March 2019. In BTL’s standalone books, its loss comprised mainly interest charges
on its borrowings.
(6) Singtel ceased to own units in NetLink Trust following the sale to NetLink NBN Trust in July 2017 but continues to have an interest of 24.8% in NetLink NBN Trust,
the holding company of NetLink Trust. The share of results included Singtel’s amortisation of deferred gain of S$20 million (FY 2018: S$32 million) on assets
previously transferred to NetLink Trust, but excluded the fair value adjustments recorded by NetLink NBN Trust in respect of its acquisition of units in NetLink Trust.
Include the share of results of Singapore Post Limited.
(7)
115
Country mobile penetration rate
Market share, 31 March 2019 (2)
Market share, 31 March 2018 (2)
Market position (2)
Mobile customers (‘000)
- Aggregate
- Proportionate
Growth in mobile customers (3) (%)
Telkomsel
123%
51.1%
48.5%
#1
168,642
59,025
-13%
AIS
139%
45.2%
44.8%
#1
Airtel (1)
90%
28.0%
25.7%
#2
Globe
138%
56.6%
52.1%
#1
41,491
9,676
3.6%
384,078
144,770
-2.9%
83,490
39,307
32%
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 2018 and based on aggregate mobile customers.
The Group’s combined mobile
customer base reached 692 million,
down 14 million from a year ago on
declines in Indonesia and India.
Telkomsel’s revenue fell 4% due to
the steep 24% decline in traditional
voice and SMS revenues on increased
popularity of OTT apps and higher
smartphone penetration. The decline
was partly mitigated by 21% growth
in data and digital services as
Telkomsel’s digital businesses gained
traction. EBITDA fell 9% on lower
revenue and higher network expenses
from the accelerated deployment
of its 4G network. With a weaker
Indonesian Rupiah, Telkomsel’s
post-tax contribution declined 18%.
Its mobile customer base was
impacted by churn due to the SIM
card registration exercise.
AIS’ service revenue (excluding
interconnect and equipment rental)
grew 1%. The increase was driven
by higher fixed broadband revenue
and the consolidation of CS Loxinfo
acquired in January 2018, partly
offset by decline in mobile revenue
due to intense price competition.
EBITDA rose 3% on revenue growth
and lower marketing spend. Including
higher depreciation charges from
4G network investments and new
spectrum amortisation, AIS’ post-tax
contribution dipped 1.7%.
Globe delivered a solid performance
with double-digit growth in EBITDA
and earnings. Service revenue grew
6% driven by robust data growth
in mobile and broadband. EBITDA
rose 22% on strong revenue growth
and lower selling expenses. Despite
higher depreciation charges and
share of equity losses from its
associates, Globe’s post-tax ordinary
contribution rose strongly by 39%.
The share of Globe’s one-off gain
in FY 2018 arose from the increase
in fair value of its retained interest
in its associate. With the absence of
exceptional gain this year, overall
post-tax contribution grew 24%.
Intouch’s (1) post-tax contribution
decreased 4.4% on lower
contribution from AIS and a
one-off disposal gain on the sale
of an investment last year. After
including amortisation of acquired
intangibles, Intouch’s post-tax
contribution declined by 7.5%.
The Group’s share of Airtel’s post-
tax loss (excluding its net exceptional
gain) was S$131 million, compared to
the share of post-tax profit of
S$101 million in FY 2018. The losses
were mainly due to a steep decline in
ARPU on disruptive price competition.
Airtel Africa reported strong growth in
operating revenue and EBITDA. Airtel’s
total mobile customers declined mainly
from India due to implementation of
minimum recharge plans.
Including the share of Bharti
Telecom Limited’s (BTL) net loss of
S$40 million (FY 2018: S$18 million)
mainly from net finance expense,
total share of post-tax losses
of Airtel and BTL amounted to
S$171 million, compared to
share of net profit of S$83 million
in FY 2018.
Airtel recorded some one-off
items in the current year which
have been classified as exceptional
items of the Group. The exceptional
items comprised mainly fair value
gains on deconsolidation of a
subsidiary and write-back of accruals
on re-assessment of levies partly
offset by other charges. Including
the share of Airtel’s net exceptional
gain of S$206 million, overall
contribution from Airtel and BTL
was a net profit of S$34 million,
down 53% from last year.
Note:
(1)
Intouch is listed on the Stock Exchange of Thailand and has investments in telecommunications via its 40.5% equity interest in AIS, as well as in satellite, internet,
and media and advertising businesses.
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Management
Discussion and Analysis
CASH FLOW
Net cash inflow from operating activities
Net cash outflow for investing activities
Net cash outflow for financing activities
Net change in cash balance
Exchange effects on cash balance
Cash balance at beginning of year
Cash balance at end of year
Singtel (1)
Optus
Associates (net dividends after withholding tax)
Group free cash flow
Optus (in A$ million)
Cash capital expenditure as a percentage of operating revenue
Financial Year ended 31 March
2019
(S$ million)
2018
(S$ million)
5,368
5,955
(2,329)
(1,951)
(3,056)
(4,009)
(16)
4
525
513
1,242
1,006
1,402
(5)
(4)
534
525
1,126
989
1,492
3,650
3,606
1,028
10%
947
14%
Change
(%)
-9.9
19.4
-23.8
248.9
nm
-1.7
-2.3
10.3
1.8
-6.0
1.2
8.5
“nm” denotes not meaningful.
Note:
(1) Refers to Singtel Group excluding Optus.
The Group’s free cash flow grew
1.2% to S$3.65 billion. The increase
was driven by lower capital
expenditure partly offset by
lower operating cash flow,
higher cash taxes and lower
associates’ dividends.
Net cash inflow from operating
activities declined 9.9% to
S$5.37 billion. Dividends received
from the associates fell 6.0% mainly
from Telkomsel, the Southern Cross
consortium and NetLink Trust.
The investing cash outflow was
S$2.33 billion. During the year,
117
Singtel received proceeds of
S$118 million from the disposal of a
property in Singapore. Payments
of S$123 million were made for the
acquisition of Videology assets in
August 2018 and S$344 million for
the acquisition of a 5.7% equity
interest in Airtel Africa in October
2018. Capital expenditure totalled
S$1.72 billion, comprising S$587
million for Singtel and S$1.13 billion
(A$1.14 billion) for Optus. In Singtel,
major capital investments in the year
included S$215 million for fixed and
data infrastructure, S$183 million for
mobile networks and S$189 million
for ICT and other investments.
In Optus, capital investments in
mobile networks amounted to
A$633 million with the balance in
fixed and other investments.
Net cash outflow for financing
activities amounted to S$3.06 billion.
Major cash outflows included net
interest payments of S$385 million,
and payments of S$1.75 billion
for final dividends in respect of
FY 2018 and S$1.11 billion for interim
dividends in respect of FY 2019,
partly offset by increase in net
borrowings of S$222 million.
SUMMARY STATEMENTS OF FINANCIAL POSITION
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Share capital
Retained earnings
Currency translation reserve (1)
Other reserves
Equity attributable to shareholders
Non-controlling interests and other reserve
Total equity
As at 31 March
2019
(S$ million)
7,078
41,837
2018
(S$ million)
6,759
41,737
48,915
48,496
8,794
10,311
8,429
10,355
19,105
18,784
29,810
29,712
4,127
27,513
(1,768)
(35)
29,838
(28)
4,127
27,269
(1,284)
(376)
29,737
(26)
29,810
29,712
Note:
(1)
‘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.
Currency translation losses
increased mainly due to the weaker
Australian Dollar and Indian Rupee
against the Singapore Dollar from
a year ago when translating
the Group’s investments in Optus
and Airtel.
The Group’s financial position
remains healthy.
Total assets were stable with
additions from the acquisitions
of Videology assets and equity
interest in Airtel Africa offset by the
translation impact from a weaker
Australian Dollar. Total liabilities
increased on higher trade payables
related to handset leasing and
network investments.
Singapore Telecommunications Limited | Annual Report 2019
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Management
Discussion and Analysis
CAPITAL MANAGEMENT AND DIVIDEND POLICY
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)
Interest cover (3) (number of times)
Financial Year ended 31 March
2018
2019
10,396
9,883
24.9
1.6
16.2
10,402
9,877
24.9
1.3
20.1
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)
As at 31 March 2019, the Group’s
net debt was S$9.9 billion,
stable from a year ago.
The Group has one of the
strongest credit ratings among
telecommunication companies in
the Asia Pacific region. Singtel is
currently rated A1 by Moody’s and
A+ by S&P Global Ratings. The Group
continues to maintain a healthy
capital structure.
For the financial year ended
31 March 2019, the total ordinary
dividend payout, including the
proposed final dividend, was
17.5 cents per share or 101% of the
Group’s underlying net profit and
88% of the Group’s free cash flow
(after interest and tax payments).
Singtel is committed to delivering
dividends that increase over time
with growth in underlying earnings,
while maintaining an optimal capital
structure and investment grade
credit ratings. Barring unforeseen
circumstances, it expects to maintain
its ordinary dividends at 17.5 cents
per share for the next financial year
ending 31 March 2020.
OUTLOOK FOR THE NEXT
FINANCIAL YEAR ENDING
31 MARCH 2020
For the Group’s outlook for the next
financial year ending 31 March 2020,
please refer to pages 9 to 10 of
the Management Discussion and
Analysis for the fourth quarter
and year ended 31 March 2019
announced on 15 May 2019.
119
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Financials
Independent Auditors’ Report
121 Directors’ Statement
131
137 Consolidated Income Statement
138 Consolidated Statement of Comprehensive Income
139 Statements of Financial Position
140 Statements of Changes in Equity
144 Consolidated Statement of Cash Flows
147 Notes to the Financial Statements
Additional Information
250 Interested Person Transactions
251 Additional Information on Directors
Seeking Re-election
261 Shareholder Information
263 Corporate Information
264 Contact Points
Singapore Telecommunications Limited | Annual Report 2019
120
Directors’ Statement
For the financial year ended 31 March 2019
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 2019.
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 137 to 249 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 2019, 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 statement are –
Simon Claude Israel (Chairman)
Chua Sock Koong (Group Chief Executive Officer)
Gautam Banerjee
Dominic Stephen Barton (appointed on 25 March 2019)
Bobby Chin Yoke Choong
Venkataraman Vishnampet Ganesan
Bradley Joseph Horowitz (appointed on 26 December 2018)
Gail Patricia Kelly (appointed on 26 December 2018)
Low Check Kian
Peter Edward Mason AM (1)
Christina Hon Kwee Fong (Christina Ong)
Teo Swee Lian
Peter Ong Boon Kwee, who served during the financial year, stepped down as a Director of the Company following
the conclusion of the Annual General Meeting on 24 July 2018.
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 2012 (the “Singtel PSP 2012”) and share options granted by Amobee Group
Pte. Ltd. (“Amobee”).
121
Directors’ Statement
For the financial year ended 31 March 2019
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 2019
At 1 April 2018
or date of
appointment,
if later
At 31 March 2019
At 1 April 2018
or date of
appointment,
if later
The Company
Singapore Telecommunications Limited
(Ordinary shares)
Simon Claude Israel
Chua Sock Koong
Gautam Banerjee
Dominic Stephen Barton
Bobby Chin Yoke Choong
Bradley Joseph Horowitz
Gail Patricia Kelly
Low Check Kian
Peter Edward Mason AM
Christina Ong
Teo Swee Lian
1,019,593 (1)
8,229,844 (3)
-
-
-
-
-
1,490
50,000 (5)
-
1,550
919,961
7,540,668
-
-
-
-
-
1,490
50,000
-
1,550
(American Depositary Shares)
Venkataraman Vishnampet Ganesan
3,341.45 (6)
3,341.45
Subsidiary Corporations
Amobee Group Pte. Ltd.
(Options to subscribe for ordinary shares)
Venkataraman Vishnampet Ganesan
1,581,805
750,718
Optus Finance Pty Limited
(A$250,000,000 4% fixed rate notes due 2022)
Simon Claude Israel
A$1,600,000 (7)
(principal amount)
A$1,600,000
(principal amount)
(A$500,000,000 3.25% fixed rate notes due 2023)
Simon Claude Israel
A$1,000,000 (8)
(principal amount)
-
1,360 (2)
4,104,371 (4)
-
-
-
-
-
-
-
-
-
-
-
-
-
1,360
4,852,449
-
-
-
-
-
-
-
-
-
-
-
-
-
Singapore Telecommunications Limited | Annual Report 2019
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Directors’ Statement
For the financial year ended 31 March 2019
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 2019
At 1 April 2018
or date of
appointment,
if later
At 31 March 2019
At 1 April 2018
or date of
appointment,
if later
Related Corporations
Ascendas Funds Management (S) Limited
(Unit holdings in Ascendas Real Estate Investment Trust)
Simon Claude Israel
Chua Sock Koong
Gautam Banerjee
1,000,000 (9)
142,000
20,000
1,000,000
142,000
20,000
Ascendas Property Fund Trustee Pte. Ltd.
(Unit holdings in Ascendas India Trust)
Gautam Banerjee
120,000
120,000
-
-
-
-
-
-
-
-
Mapletree Commercial Trust Management Ltd.
(Unit holdings in Mapletree Commercial Trust)
Simon Claude Israel
Bobby Chin Yoke Choong
4,043,520 (7)
-
4,043,520
-
-
117,000 (2)
-
117,000
Mapletree Greater China Commercial Trust Management Ltd.
(Unit holdings in Mapletree Greater China Commercial Trust)
Simon Claude Israel
Chua Sock Koong
1,000,000 (7)
430,000
1,000,000
430,000
Mapletree Industrial Trust Management Ltd.
(Unit holdings in Mapletree Industrial Trust)
Simon Claude Israel
Chua Sock Koong
Bobby Chin Yoke Choong
990,160 (7)
11,000
129,600
Mapletree Logistics Trust Management Ltd.
(Unit holdings in Mapletree Logistics Trust)
Simon Claude Israel
1,100,000 (7)
Mapletree Real Estate Advisors Pte. Ltd.
(Unit holdings in Mapletree US Logistics Private Trust)
185
Christina Ong
(Unit holdings in Mapletree EU Logistics Private Trust)
185
Christina Ong
990,160
11,000
129,600
1,100,000
-
-
123
-
50,000 (2)
-
50,000
-
-
-
-
-
-
-
-
-
-
-
-
Directors’ Statement
For the financial year ended 31 March 2019
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 2019
At 1 April 2018
or date of
appointment,
if later
At 31 March 2019
At 1 April 2018
or date of
appointment,
if later
Mapletree Treasury Services Limited
(S$625,500,000 4.5% perpetual capital securities)
Simon Claude Israel
S$500,000
(principal amount)
S$500,000
(principal amount)
-
-
Olam International Limited
(Ordinary shares)
Low Check Kian
Singapore Airlines Limited
(Ordinary shares)
Simon Claude Israel
Chua Sock Koong
Bobby Chin Yoke Choong
Low Check Kian
1,024,995
500,000
2,074,518 (10)
2,074,518
Singapore Technologies Engineering Limited
(Ordinary shares)
Christina Ong
1
1
9,000 (11)
2,000
-
5,600
9,000
2,000
-
5,600
-
-
2,000 (2)
-
-
-
-
2,000
-
-
Notes:
(1) 1,015,182 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 and 2,000,000 ordinary shares held jointly with spouse in the name of
DBSN Services Pte Ltd.
(4) Ms Chua Sock Koong’s deemed interest of 4,104,371 shares included:
(a) 28,137 ordinary shares held by Ms Chua’s spouse; and
(b) An aggregate of up to 4,076,234 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 5,847,725 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 Performance Share Plan 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) Held (through custodians) by Burgoyne Investments Pty Ltd as trustee for Burgoyne Superannuation Fund. Both Mr Peter Edward Mason AM
and spouse are directors of Burgoyne Investments Pty Ltd and beneficiaries of Burgoyne Superannuation Fund.
(6) 1 American Depositary Share represents 10 ordinary shares in Singtel.
(7) Held in the name of Citibank Nominees Singapore Pte Ltd.
(8) Held in the name of Citibank N.A. (Hong Kong).
(9) 100,000 units held jointly by Mr Simon Claude Israel and his spouse, and 900,000 units held in the name of Citibank Nominees Singapore Pte Ltd.
(10) Held by Cluny Capital Limited. Mr Low Check Kian is the sole shareholder of Cluny Capital Limited.
(11) 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 2019.
Singapore Telecommunications Limited | Annual Report 2019
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Directors’ Statement
For the financial year ended 31 March 2019
4.
PERFORMANCE SHARES
The Executive Resource and Compensation Committee (“ERCC”) is responsible for administering the Singtel PSP
2012. At the date of this statement, the members of the ERCC are Peter Edward Mason AM (Chairman of the ERCC),
Simon Claude Israel, Teo Swee Lian and Gail Kelly.
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 participants of the Singtel PSP 2012 will receive fully paid Singtel shares free of charge, the equivalent in cash, or
combinations thereof, provided that certain prescribed performance targets or vesting conditions 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 or vesting conditions.
Awards comprising an aggregate of 86.2 million shares have been granted under the Singtel PSP 2012 from its
commencement to 31 March 2019.
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 –
Balance
as at
1 April 2018
(’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 2019
(’000)
Date of grant
Share award for Chairman
(Simon Claude Israel)
14.08.18
Special Share Award
For Group Chief Executive Officer
(Chua Sock Koong)
19.06.18
For other staff
19.06.18
Sub-total
-
-
-
-
Performance shares
(Restricted Share Awards)
For Group Chief Executive Officer
(Chua Sock Koong)
17.06.15
20.06.16
19.06.17
19.06.18
55
201
383
-
639
125
100
498
959
1,457
-
-
-
397
397
-
-
-
-
-
72
-
-
72
(100)
(498)
(959)
(1,457)
(55)
(137)
-
-
(192)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
136
383
397
916
Directors’ Statement
For the financial year ended 31 March 2019
4.
PERFORMANCE SHARES (Cont’d)
Balance
as at
1 April 2018
(’000)
Share
awards
granted
(’000)
Additional
share awards
from targets
exceeded
(’000)
Date of grant
For other staff
17.06.15
28.09.15
05.01.16
20.06.16
20.03.17
19.06.17
21.09.17
18.12.17
14.03.18
19.06.18
21.09.18
18.12.18
21.03.19
Sub-total
For other staff
17.06.15
28.09.15
05.01.16
20.06.16
20.03.17
19.06.17
21.09.17
18.12.17
14.03.18
19.06.18
21.09.18
18.12.18
Sub-total
Total
Performance shares
(Performance Share Awards)
For Group Chief Executive Officer
(Chua Sock Koong)
17.06.15
20.06.16
19.06.17
19.06.18
1,659
1,695
832
-
4,186
Share
awards
vested
(’000)
(2,111)
(15)
(5)
(3,264)
(14)
(201)
-
-
-
(17)
-
-
-
(5,627)
Share
awards
cancelled
(’000)
Balance
as at
31 March 2019
(’000)
(21)
-
-
(206)
-
(474)
-
(48)
(32)
(692)
-
-
-
(1,473)
-
-
-
2,916
14
6,235
87
29
118
8,423
82
77
147
18,128
-
-
-
1,676
8
-
-
-
-
-
-
-
-
1,684
1,756
(5,819)
(1,473)
19,044
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,659)
-
-
-
(1,659)
(6,870)
(125)
(32)
(376)
-
(189)
-
(36)
-
(163)
-
-
(7,791)
-
1,695
832
634
3,161
-
-
-
6,580
91
3,708
24
17
79
3,374
24
12
13,909
(9,450)
17,070
2,132
15
5
4,710
20
6,910
87
77
150
-
-
-
-
14,106
14,745
6,870
125
32
6,956
91
3,897
24
53
79
-
-
-
18,127
22,313
-
-
-
-
-
-
-
-
-
9,132
82
77
147
9,438
9,835
-
-
-
634
634
-
-
-
-
-
-
-
-
-
3,537
24
12
3,573
4,207
37,058
15,599
1,756
(7,376)
(10,923)
36,114
Singapore Telecommunications Limited | Annual Report 2019
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Directors’ Statement
For the financial year ended 31 March 2019
4.
PERFORMANCE SHARES (Cont’d)
During the financial year, awards in respect of an aggregate of 7.4 million shares granted under the Singtel PSP 2012
were vested. The awards were satisfied by the delivery of existing shares purchased from the market as permitted
under the Singtel PSP 2012.
As at 31 March 2019, no participant (other than Ms Chua Sock Koong) has received shares pursuant to the vesting of
awards granted under 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 2012; and
(ii)
the total number of existing shares purchased for delivery of awards released under the Singtel PSP 2012.
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.
There were no unissued shares of the Company under option at the end of the financial year.
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 1 April 2018 to 31 March 2019, options in respect of an aggregate of 62.6 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 2019, options in respect of an aggregate of 112.6 million of ordinary shares in Amobee are outstanding.
The grant dates and exercise prices of the share options were as follows –
Date of grant
For employees
13 April 2015, 14 October 2015
20 January 2016, 10 May 2016, 23 June 2016, 24 August 2016, 25 January 2017,
19 July 2017, 18 August 2017, 12 September 2017, 25 January 2018
21 August 2018, 25 March 2019
For non-executive directors
14 October 2015
21 August 2018
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Exercise price
US$0.54 to US$0.79
US$0.54
US$0.55 to US$0.58
US$0.54
US$0.55
Directors’ Statement
For the financial year ended 31 March 2019
5.
SHARE OPTION PLANS (Cont’d)
The options granted to employees and non-executive directors expire 10 years and 5 years from the date of grant
respectively.
During the financial year, 10,879 ordinary shares of Amobee were issued 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 wholly-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 1 April 2018 to 31 March 2019, options in respect of an aggregate of 0.6 million of common stock in Trustwave
have been granted to the employees of Trustwave and/or its subsidiaries. As at 31 March 2019, options in respect
of an aggregate of 2.2 million of common stock in Trustwave are outstanding.
The grant dates and exercise prices of the stock options were as follows –
Date of grant
1 December 2015, 22 January 2016, 19 May 2016, 12 September 2016
20 January 2017
15 March 2018, 23 May 2018, 12 July 2018, 31 August 2018
The options granted expire 10 years from the date of grant.
Exercise price
US$16.79
US$16.24
US$15.37
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.
HOOQ Digital Pte. Ltd.
In December 2015, HOOQ Digital Pte. Ltd. (“HOOQ”), a 65%-owned subsidiary corporation of the Company,
implemented the HOOQ Digital Employee Share Option Scheme (“the Scheme”). Under the terms of the Scheme,
options to purchase ordinary shares of HOOQ may be granted to employees (including executive directors)
of HOOQ 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 HOOQ on the date
of grant.
From 1 April 2018 to 31 March 2019, options in respect of an aggregate of 9.6 million of ordinary shares in HOOQ
have been granted to the employees of HOOQ and/or its subsidiaries. As at 31 March 2019, options in respect of an
aggregate of 43.3 million of ordinary shares in HOOQ are outstanding.
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Directors’ Statement
For the financial year ended 31 March 2019
5.
SHARE OPTION PLANS (Cont’d)
The grant dates and exercise prices of the share options were as follows –
Date of grant
16 May 2016, 24 April 2017, 2 May 2017, 31 July 2017, 8 September 2017,
23 October 2017, 10 January 2018, 1 April 2018, 1 July 2018, 19 October 2018,
31 January 2019
Exercise price
US$0.07
The options granted expire 10 years from the date of grant.
No ordinary shares of HOOQ were issued during the financial year pursuant to the exercise of options granted
under the Scheme. 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.
6.
AUDIT COMMITTEE
At the date of this statement, the Audit Committee comprises the following members, all of whom are non-executive
and independent –
Bobby Chin Yoke Choong (Chairman of the Audit Committee)
Gautam Banerjee
Christina Hon Kwee Fong (Christina Ong)
Peter Ong Boon Kwee, who served during the financial year, stepped down as a member of the Audit Committee
following the conclusion of the Annual General Meeting on 24 July 2018.
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
Auditors’ Report thereon. In the review of the financial statements of the Company and the Group, the Committee
had discussed with management the accounting principles that were applied and their judgement of items that
might affect the integrity of the financial statements.
129
Directors’ Statement
For the financial year ended 31 March 2019
6.
AUDIT COMMITTEE (Cont’d)
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 KPMG LLP for re-appointment as auditors of the Company at the forthcoming
Annual General Meeting.
7.
AUDITORS
KPMG LLP were appointed as auditors of the Company at the Annual General Meeting of the Company held on
24 July 2018.
The auditors, KPMG LLP, have expressed their willingness to accept re-appointment.
On behalf of the Directors
Simon Claude Israel
Simon Claude Israel
Chairman
Singapore
14 May 2019
Chua Sock Koong
Director
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Independent Auditors’ Report
Members of Singapore Telecommunications Limited
For the financial year ended 31 March 2019
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 2019 and the consolidated income statement, consolidated statement
of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows of
the Group, and the statement of changes in equity of the Company for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, as set out on pages 137 to 249.
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 Singapore Companies Act, Chapter 50 (‘the Act’) and Singapore Financial Reporting Standards (International)
(‘SFRS(I)s’) 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 2019 and of the consolidated financial performance, consolidated changes in equity and
consolidated cash flows of the Group and the 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 ‘Auditors’ 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 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 period. 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.
The key audit matter
Revenue recognition
How the matter was addressed in our audit
For the main Operating Revenues – Mobile Service,
Data and Internet and Sale of Equipment, there is an
inherent risk around the accuracy and timing of revenue
recognition given the complexity of systems and the large
volume of data processed, which are also impacted by
changing pricing models and the introduction of new
products and tariff arrangements.
Significant management judgements and estimates are
required when accounting for revenue from long-term
contracts with respect to the Group Enterprise Infocomm
Technology (“ICT”) Operating Revenues. For some of these
ICT contracts, estimates are required in determining the
completeness and valuation of provisions against contracts
that are expected to be loss-making and the recoverability
of the contract assets.
We obtained an understanding of the nature of the various
revenue streams and the related revenue recording
processes, systems and controls.
Our audit approach included controls testing as well as
substantive procedures. For our procedures over the design
and operating effectiveness of controls over significant IT
systems, we involved our IT specialists.
In particular, our procedures included:
(cid:843)(cid:912) IT systems: Testing of the design and implementation, and
the operating effectiveness of automated controls over
the capture of data at the network switches and interfaces
between relevant IT applications, measurement and
billing of revenue, and the recording of entries in the
general ledger.
131
Independent Auditors’ Report
Members of Singapore Telecommunications Limited
For the financial year ended 31 March 2019
The key audit matter
Revenue recognition (Cont’d)
In addition, the initial application of SFRS(I) 15 Revenue
from Contracts with Customers required the exercise of
significant judgement regarding:
(cid:843)(cid:912) (cid:41)(cid:292)(cid:296)(cid:335)(cid:368)(cid:312)(cid:305)(cid:312)(cid:287)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912) (cid:342)(cid:305)(cid:912) (cid:354)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912) (cid:342)(cid:286)(cid:329)(cid:312)(cid:306)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912) (cid:305)(cid:342)(cid:357)(cid:912) (cid:296)(cid:271)(cid:287)(cid:310)(cid:912)
product and service offering;
(cid:843)(cid:912) (cid:25)(cid:361)(cid:368)(cid:312)(cid:334)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912) (cid:342)(cid:305)(cid:912) (cid:361)(cid:368)(cid:271)(cid:335)(cid:292)(cid:891)(cid:271)(cid:329)(cid:342)(cid:335)(cid:296)(cid:912) (cid:361)(cid:296)(cid:329)(cid:329)(cid:312)(cid:335)(cid:306)(cid:912) (cid:354)(cid:357)(cid:312)(cid:287)(cid:296)(cid:361)(cid:845)(cid:912) (cid:387)(cid:271)(cid:357)(cid:312)(cid:271)(cid:286)(cid:329)(cid:296)(cid:912)
consideration, future customer behaviour with respect to
early contract renewals and terminations; and
(cid:843)(cid:912) (cid:93)(cid:310)(cid:296)(cid:912)(cid:368)(cid:312)(cid:334)(cid:312)(cid:335)(cid:306)(cid:912)(cid:342)(cid:305)(cid:912)(cid:357)(cid:296)(cid:387)(cid:296)(cid:335)(cid:373)(cid:296)(cid:912)(cid:357)(cid:296)(cid:287)(cid:342)(cid:306)(cid:335)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:850)
The accounting policies for revenue recognition are set
out in Note 2.23 to the financial statements and the various
revenue streams for the Group have been disclosed in
Note 4 to the financial statements.
How the matter was addressed in our audit
(cid:843)(cid:912) Manual controls: Testing of the design and implementation,
and the operating effectiveness of manual controls over
the initiation, authorisation, recording, and processing of
revenue transactions. This included evaluating process
controls over authorising new price plans and rate changes
and the adjustments to the relevant billing systems. We had
also tested the access controls and change management
controls over the relevant billing systems.
(cid:843)(cid:912) (cid:93)(cid:296)(cid:361)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912) (cid:342)(cid:305)(cid:912) (cid:287)(cid:342)(cid:335)(cid:368)(cid:357)(cid:271)(cid:287)(cid:368)(cid:361)(cid:912) (cid:312)(cid:335)(cid:912) (cid:368)(cid:310)(cid:296)(cid:912) (cid:41)(cid:16)(cid:93)(cid:912) (cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912) (cid:305)(cid:342)(cid:357)(cid:912) (cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:912)
revenue recognition and provisioning for contracts
that were expected to be loss-making. We challenged
management’s underlying assumptions in making their
judgements on the provisions required.
(cid:843)(cid:912) (cid:1)(cid:361)(cid:361)(cid:296)(cid:361)(cid:361)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:296)(cid:387)(cid:296)(cid:335)(cid:373)(cid:296)(cid:912)(cid:357)(cid:296)(cid:287)(cid:342)(cid:306)(cid:335)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)
policies for the products and services offered by the Group
in adopting SFRS(I) 15, which included but was not limited
to:
- Assessing the appropriateness of the transaction
price and its allocation to performance obligations
identified within bundled contracts based on stand-
alone selling prices;
- Inspection of customer contracts to evaluate whether
performance obligations were satisfied over time or at
a point in time, and assessed the reasonableness of
estimates used in respect to revenue recognition and
deferral of revenue; and
- Assessing the effects of the initial application of SFRS(I)
15 as at 1 April 2018.
(cid:843)(cid:912) (cid:93)(cid:296)(cid:361)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:342)(cid:305)(cid:912)(cid:334)(cid:271)(cid:335)(cid:373)(cid:271)(cid:329)(cid:912)(cid:324)(cid:342)(cid:373)(cid:357)(cid:335)(cid:271)(cid:329)(cid:912)(cid:296)(cid:335)(cid:368)(cid:357)(cid:312)(cid:296)(cid:361)(cid:912)(cid:357)(cid:296)(cid:287)(cid:342)(cid:357)(cid:292)(cid:296)(cid:292)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:306)(cid:296)(cid:335)(cid:296)(cid:357)(cid:271)(cid:329)(cid:912)
ledger relating to revenue recognition.
Findings
We found that the processes and controls to account for revenue were operating effectively.
We found that the key assumptions used and estimates made in regard to the policies for revenue recognition were
reasonable.
Impairment assessment of goodwill
Goodwill is subject to an annual impairment test or more
frequently if there are indications of impairment.
At 31 March 2019, the Group’s statement of financial position
includes goodwill amounting to S$11.5 billion, primarily
related to the following cash-generating units (“CGUs”):
Singtel Optus Pty Limited (“Optus”): S$9.3 billion
Amobee, Inc. (“Amobee”): S$1.1 billion
Global Cyber Security: S$1.0 billion
We evaluated whether CGUs were appropriately identified
by management based on our understanding of the current
business structure of the Group.
involved our valuation specialists
in the overall
We
assessment of the recoverable amounts of the respective
CGUs.
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Independent Auditors’ Report
Members of Singapore Telecommunications Limited
For the financial year ended 31 March 2019
The key audit matter
How the matter was addressed in our audit
Impairment assessment of goodwill (Cont’d)
Global Cyber Security CGU
Subsequent to the reorganisation of the Group’s cyber
security business, with effect from 1 April 2018, management
has assessed and considered the combined cyber security
businesses of the Group, including Trustwave, to constitute
one CGU.
The Group performed impairment assessments for each
of the CGUs by estimating the recoverable amounts. The
recoverable amount is the discounted sum of individually
forecasted cash flows for each year and the value of the
cash flows for the years thereafter using a long-term growth
rate. As the recoverable amount for each of the CGUs
was calculated to be in excess of the respective carrying
amounts, no impairment was determined.
Forecasting of future cash flows is a highly judgmental
process which requires estimation of revenue growth
rates, profit margins, discount rates and future economic
conditions.
Refer to Note 24 to the financial statements for the
impairment assessments.
In particular, our procedures included:
Optus, Amobee and Global Cyber Security
We assessed the reasonableness of the key assumptions
used by management in developing the cash flow forecasts
and the discount rates used in computing the recoverable
amounts, which included but are not limited to:
(cid:843)(cid:912) (cid:1)(cid:306)(cid:357)(cid:296)(cid:296)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:287)(cid:271)(cid:361)(cid:310)(cid:912)(cid:305)(cid:329)(cid:342)(cid:388)(cid:912)(cid:305)(cid:342)(cid:357)(cid:296)(cid:287)(cid:271)(cid:361)(cid:368)(cid:361)(cid:912)(cid:373)(cid:361)(cid:296)(cid:292)(cid:912)(cid:312)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:312)(cid:334)(cid:354)(cid:271)(cid:312)(cid:357)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)
model to Board approved forecasts and budgets;
corroborated
(cid:843)(cid:912) (cid:16)(cid:342)(cid:335)(cid:361)(cid:312)(cid:292)(cid:296)(cid:357)(cid:312)(cid:335)(cid:306)(cid:912) (cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:904)(cid:361)(cid:912) (cid:296)(cid:393)(cid:354)(cid:296)(cid:287)(cid:368)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912) (cid:342)(cid:305)(cid:912) (cid:368)(cid:310)(cid:296)(cid:912) (cid:305)(cid:373)(cid:368)(cid:373)(cid:357)(cid:296)(cid:912)
business developments and
certain
information with market data; we also considered planned
operational improvements to the businesses and how these
plans would impact future cash flows and whether these
were appropriately reflected in the cash flow forecasts used;
(cid:843)(cid:912) (cid:16)(cid:310)(cid:271)(cid:329)(cid:329)(cid:296)(cid:335)(cid:306)(cid:312)(cid:335)(cid:306)(cid:912) (cid:368)(cid:310)(cid:296)(cid:912) (cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912) (cid:342)(cid:305)(cid:912) (cid:287)(cid:271)(cid:361)(cid:310)(cid:912) (cid:305)(cid:329)(cid:342)(cid:388)(cid:912) (cid:305)(cid:342)(cid:357)(cid:296)(cid:287)(cid:271)(cid:361)(cid:368)(cid:361)(cid:912)
used by comparing against historical trends and recent
performance and
trends. Where relevant,
assessing whether budgeted cash flows for prior years
were achieved to assess forecasting accuracy;
industry
(cid:843)(cid:912) (cid:16)(cid:342)(cid:334)(cid:354)(cid:271)(cid:357)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:292)(cid:312)(cid:361)(cid:287)(cid:342)(cid:373)(cid:335)(cid:368)(cid:912)(cid:357)(cid:271)(cid:368)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:368)(cid:296)(cid:357)(cid:334)(cid:312)(cid:335)(cid:271)(cid:329)(cid:912)(cid:306)(cid:357)(cid:342)(cid:388)(cid:368)(cid:310)(cid:912)(cid:357)(cid:271)(cid:368)(cid:296)(cid:361)(cid:912)(cid:368)(cid:342)(cid:912)
observable market data; and
(cid:843)(cid:912) (cid:80)(cid:296)(cid:357)(cid:305)(cid:342)(cid:357)(cid:334)(cid:312)(cid:335)(cid:306)(cid:912) (cid:271)(cid:912) (cid:361)(cid:296)(cid:335)(cid:361)(cid:312)(cid:368)(cid:312)(cid:387)(cid:312)(cid:368)(cid:394)(cid:912) (cid:271)(cid:335)(cid:271)(cid:329)(cid:394)(cid:361)(cid:312)(cid:361)(cid:912) (cid:342)(cid:305)(cid:912) (cid:368)(cid:310)(cid:296)(cid:912) (cid:326)(cid:296)(cid:394)(cid:912) (cid:271)(cid:361)(cid:361)(cid:373)(cid:334)(cid:354)(cid:368)(cid:312)(cid:342)(cid:335)(cid:361)(cid:912)
to
used
assumptions would change the outcome of the impairment
assessment.
to determine which reasonable changes
Findings
We found the identification of CGUs to be reasonable and appropriate.
We found the key assumptions and estimates used in determining the recoverable amounts to be within a supportable
range.
Share of joint ventures’ reported contingent liabilities relating to regulatory litigations and tax disputes
The Group’s significant joint ventures have a number of on-
going disputes and litigations with their local regulators and
tax authorities.
Significant judgement is required by management in
assessing the likelihood of the outcome of each matter and
whether the risk of loss is remote, possible or probable and
whether the matter is considered a contingent liability to be
disclosed.
Please refer to Note 41 to the financial statements for
‘Significant Contingent Liabilities of Associates and Joint
Ventures’.
Our audit procedures included:
(cid:843)(cid:912) (cid:41)(cid:335)(cid:356)(cid:373)(cid:312)(cid:357)(cid:312)(cid:335)(cid:306)(cid:912)(cid:388)(cid:312)(cid:368)(cid:310)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:329)(cid:296)(cid:306)(cid:271)(cid:329)(cid:912)(cid:287)(cid:342)(cid:373)(cid:335)(cid:361)(cid:296)(cid:329)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:324)(cid:342)(cid:312)(cid:335)(cid:368)(cid:912)
ventures to understand the process and internal controls
relating to the identification, assessment and recognition
of the disputes and litigations.
(cid:843)(cid:912) (cid:83)(cid:296)(cid:387)(cid:312)(cid:296)(cid:388)(cid:312)(cid:335)(cid:306)(cid:912) (cid:368)(cid:310)(cid:296)(cid:912) (cid:271)(cid:373)(cid:292)(cid:312)(cid:368)(cid:912) (cid:388)(cid:342)(cid:357)(cid:326)(cid:312)(cid:335)(cid:306)(cid:912) (cid:354)(cid:271)(cid:354)(cid:296)(cid:357)(cid:361)(cid:912) (cid:342)(cid:305)(cid:912) (cid:368)(cid:310)(cid:296)(cid:912) (cid:271)(cid:373)(cid:292)(cid:312)(cid:368)(cid:342)(cid:357)(cid:361)(cid:912) (cid:342)(cid:305)(cid:912)
the joint ventures (‘Component Auditors’), in particular
their assessment on the regulatory litigations and tax
disputes that may have a material impact to the financial
statements.
(cid:843)(cid:912) (cid:21)(cid:312)(cid:361)(cid:287)(cid:373)(cid:361)(cid:361)(cid:312)(cid:335)(cid:306)(cid:912)(cid:388)(cid:312)(cid:368)(cid:310)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:16)(cid:342)(cid:334)(cid:354)(cid:342)(cid:335)(cid:296)(cid:335)(cid:368)(cid:912)(cid:1)(cid:373)(cid:292)(cid:312)(cid:368)(cid:342)(cid:357)(cid:361)(cid:912)(cid:342)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:312)(cid:357)(cid:912)(cid:296)(cid:387)(cid:271)(cid:329)(cid:373)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)
of the probability and magnitude of losses relating to the
disputes and litigations, and their conclusions reached
in accordance with SFRS(I) 1-37 Provisions, Contingent
Liabilities and Contingent Assets.
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For the financial year ended 31 March 2019
The key audit matter
How the matter was addressed in our audit
Findings
We found management’s assessment of the regulatory litigations and tax disputes to be reasonable, and the disclosure of
contingent liabilities to be appropriate.
Taxation
The Group is exposed to tax disputes with local tax
authorities in the jurisdiction it operates in on a regular
basis. The assessment of the outcome of such disputes
requires significant judgement and could have a material
impact on the financial statements.
Australian Tax Office (“ATO”) audit
The Group has been responding to an on-going specific
issue audit by the ATO in connection with the acquisition
financing of Optus.
The Group has engaged external specialists to advise
on this matter and to assist in raising objections to the
amended assessments. Significant judgement is required
in assessing the probability and timing of the outlays
necessary for the resolution of this matter.
Please refer to Note 40 to the financial statements.
Our audit procedures included:
(cid:843)(cid:912) Inquiring with management on the tax issues raised
by the tax authorities and assessing their impact to the
financial statements;
(cid:843)(cid:912) (cid:41)(cid:335)(cid:387)(cid:342)(cid:329)(cid:387)(cid:312)(cid:335)(cid:306)(cid:912) (cid:342)(cid:373)(cid:357)(cid:912)
(cid:368)(cid:310)(cid:296)(cid:912)
appropriateness of the accounting treatments of
significant tax issues for the Group; and
(cid:368)(cid:271)(cid:393)(cid:912) (cid:361)(cid:354)(cid:296)(cid:287)(cid:312)(cid:271)(cid:329)(cid:312)(cid:361)(cid:368)(cid:361)(cid:912)
(cid:312)(cid:335)(cid:912) (cid:271)(cid:361)(cid:361)(cid:296)(cid:361)(cid:361)(cid:312)(cid:335)(cid:306)(cid:912)
(cid:843)(cid:912) (cid:1)(cid:361)(cid:361)(cid:296)(cid:361)(cid:361)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:296)(cid:271)(cid:361)(cid:342)(cid:335)(cid:271)(cid:286)(cid:329)(cid:296)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:904)(cid:361)(cid:912)(cid:354)(cid:342)(cid:361)(cid:312)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)
and the accounting impact to the Group’s consolidated
financial statements.
With respect to the ATO matter:
(cid:368)(cid:271)(cid:393)(cid:912)
(cid:843)(cid:912) (cid:41)(cid:335)(cid:387)(cid:342)(cid:329)(cid:387)(cid:312)(cid:335)(cid:306)(cid:912) (cid:342)(cid:373)(cid:357)(cid:912)
(cid:368)(cid:310)(cid:296)(cid:912)
(cid:361)(cid:354)(cid:296)(cid:287)(cid:312)(cid:271)(cid:329)(cid:312)(cid:361)(cid:368)(cid:361)(cid:912)
appropriateness of management’s judgements taken on
this matter, and the disclosure as a contingent liability,
and that the amount paid continues to represent a
receivable as at 31 March 2019;
(cid:312)(cid:335)(cid:912) (cid:271)(cid:361)(cid:361)(cid:296)(cid:361)(cid:361)(cid:312)(cid:335)(cid:306)(cid:912)
(cid:843)(cid:912) (cid:25)(cid:393)(cid:271)(cid:334)(cid:312)(cid:335)(cid:312)(cid:335)(cid:306)(cid:912) (cid:368)(cid:310)(cid:296)(cid:912) (cid:271)(cid:292)(cid:387)(cid:312)(cid:287)(cid:296)(cid:912) (cid:368)(cid:310)(cid:271)(cid:368)(cid:912) (cid:368)(cid:310)(cid:296)(cid:912) (cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:912) (cid:310)(cid:271)(cid:292)(cid:912) (cid:342)(cid:286)(cid:368)(cid:271)(cid:312)(cid:335)(cid:296)(cid:292)(cid:912)
from external specialists to support the position taken
by management; and
(cid:843)(cid:912) (cid:41)(cid:335)(cid:356)(cid:373)(cid:312)(cid:357)(cid:312)(cid:335)(cid:306)(cid:912)(cid:388)(cid:312)(cid:368)(cid:310)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:296)(cid:393)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:329)(cid:912)(cid:361)(cid:354)(cid:296)(cid:287)(cid:312)(cid:271)(cid:329)(cid:312)(cid:361)(cid:368)(cid:361)(cid:912)
to discuss the merits of the Group’s position on the
specific issue audit by ATO.
Findings
We found the position of management and the basis for it to be appropriate.
We found the disclosures to the consolidated financial statements to be adequate and appropriate in accordance to
SFRS(I) 1-37 Provisions, Contingent Liabilities and Contingent Assets.
Other matter
The consolidated financial statements of the Group and the statement of financial position and statement of changes in
equity of the Company for the year ended 31 March 2018 were audited by another auditor who expressed an unmodified
opinion on those statements on 16 May 2018.
Other information
Management is responsible for the other information contained in the annual report. Other information is defined as
all information in the annual report other than the financial statements and our auditors’ report thereon. We have not
obtained any other information prior to the date of this auditors’ report. The other information is expected to be made
available to us after the date of this auditors’ report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
Singapore Telecommunications Limited | Annual Report 2019
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Independent Auditors’ Report
Members of Singapore Telecommunications Limited
For the financial year ended 31 March 2019
In connection with our audit of the financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the other information, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance and take appropriate actions in accordance with SSAs.
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 SFRS(I)s, 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.
Auditors’ 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 auditors’ 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 financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
(cid:843)(cid:912) (cid:41)(cid:292)(cid:296)(cid:335)(cid:368)(cid:312)(cid:305)(cid:394)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:271)(cid:361)(cid:361)(cid:296)(cid:361)(cid:361)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:312)(cid:361)(cid:326)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:334)(cid:271)(cid:368)(cid:296)(cid:357)(cid:312)(cid:271)(cid:329)(cid:912)(cid:334)(cid:312)(cid:361)(cid:361)(cid:368)(cid:271)(cid:368)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:305)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:361)(cid:368)(cid:271)(cid:368)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)(cid:845)(cid:912)(cid:388)(cid:310)(cid:296)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)(cid:292)(cid:373)(cid:296)(cid:912)(cid:368)(cid:342)(cid:912)(cid:305)(cid:357)(cid:271)(cid:373)(cid:292)(cid:912)(cid:342)(cid:357)(cid:912)(cid:296)(cid:357)(cid:357)(cid:342)(cid:357)(cid:845)(cid:912)(cid:292)(cid:296)(cid:361)(cid:312)(cid:306)(cid:335)(cid:912)
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 controls.
(cid:843)(cid:912) (cid:68)(cid:286)(cid:368)(cid:271)(cid:312)(cid:335)(cid:912)(cid:271)(cid:335)(cid:912)(cid:373)(cid:335)(cid:292)(cid:296)(cid:357)(cid:361)(cid:368)(cid:271)(cid:335)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)(cid:342)(cid:305)(cid:912)(cid:312)(cid:335)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:329)(cid:912)(cid:287)(cid:342)(cid:335)(cid:368)(cid:357)(cid:342)(cid:329)(cid:361)(cid:912)(cid:357)(cid:296)(cid:329)(cid:296)(cid:387)(cid:271)(cid:335)(cid:368)(cid:912)(cid:368)(cid:342)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:271)(cid:373)(cid:292)(cid:312)(cid:368)(cid:912)(cid:312)(cid:335)(cid:912)(cid:342)(cid:357)(cid:292)(cid:296)(cid:357)(cid:912)(cid:368)(cid:342)(cid:912)(cid:292)(cid:296)(cid:361)(cid:312)(cid:306)(cid:335)(cid:912)(cid:271)(cid:373)(cid:292)(cid:312)(cid:368)(cid:912)(cid:354)(cid:357)(cid:342)(cid:287)(cid:296)(cid:292)(cid:373)(cid:357)(cid:296)(cid:361)(cid:912)(cid:368)(cid:310)(cid:271)(cid:368)(cid:912)(cid:271)(cid:357)(cid:296)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:912)
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal controls.
(cid:843)(cid:912) (cid:25)(cid:387)(cid:271)(cid:329)(cid:373)(cid:271)(cid:368)(cid:296)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:271)(cid:287)(cid:287)(cid:342)(cid:373)(cid:335)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:354)(cid:342)(cid:329)(cid:312)(cid:287)(cid:312)(cid:296)(cid:361)(cid:912)(cid:373)(cid:361)(cid:296)(cid:292)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:357)(cid:296)(cid:271)(cid:361)(cid:342)(cid:335)(cid:271)(cid:286)(cid:329)(cid:296)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:271)(cid:287)(cid:287)(cid:342)(cid:373)(cid:335)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:296)(cid:361)(cid:368)(cid:312)(cid:334)(cid:271)(cid:368)(cid:296)(cid:361)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:357)(cid:296)(cid:329)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)
disclosures made by management.
(cid:843)(cid:912) (cid:16)(cid:342)(cid:335)(cid:287)(cid:329)(cid:373)(cid:292)(cid:296)(cid:912)(cid:342)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:334)(cid:271)(cid:335)(cid:271)(cid:306)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:904)(cid:361)(cid:912)(cid:373)(cid:361)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:306)(cid:342)(cid:312)(cid:335)(cid:306)(cid:912)(cid:287)(cid:342)(cid:335)(cid:287)(cid:296)(cid:357)(cid:335)(cid:912)(cid:286)(cid:271)(cid:361)(cid:312)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:271)(cid:287)(cid:287)(cid:342)(cid:373)(cid:335)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)(cid:271)(cid:335)(cid:292)(cid:845)(cid:912)(cid:286)(cid:271)(cid:361)(cid:296)(cid:292)(cid:912)(cid:342)(cid:335)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:271)(cid:373)(cid:292)(cid:312)(cid:368)(cid:912)
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 auditors’ 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 auditors’ report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
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Independent Auditors’ Report
Members of Singapore Telecommunications Limited
For the financial year ended 31 March 2019
(cid:843)(cid:912) (cid:25)(cid:387)(cid:271)(cid:329)(cid:373)(cid:271)(cid:368)(cid:296)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:342)(cid:387)(cid:296)(cid:357)(cid:271)(cid:329)(cid:329)(cid:912)(cid:354)(cid:357)(cid:296)(cid:361)(cid:296)(cid:335)(cid:368)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:845)(cid:912)(cid:361)(cid:368)(cid:357)(cid:373)(cid:287)(cid:368)(cid:373)(cid:357)(cid:296)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:287)(cid:342)(cid:335)(cid:368)(cid:296)(cid:335)(cid:368)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:305)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:361)(cid:368)(cid:271)(cid:368)(cid:296)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)(cid:845)(cid:912)(cid:312)(cid:335)(cid:287)(cid:329)(cid:373)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:292)(cid:312)(cid:361)(cid:287)(cid:329)(cid:342)(cid:361)(cid:373)(cid:357)(cid:296)(cid:361)(cid:845)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:388)(cid:310)(cid:296)(cid:368)(cid:310)(cid:296)(cid:357)(cid:912)
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(cid:843)(cid:912) (cid:68)(cid:286)(cid:368)(cid:271)(cid:312)(cid:335)(cid:912)(cid:361)(cid:373)(cid:305)(cid:305)(cid:312)(cid:287)(cid:312)(cid:296)(cid:335)(cid:368)(cid:912)(cid:271)(cid:354)(cid:354)(cid:357)(cid:342)(cid:354)(cid:357)(cid:312)(cid:271)(cid:368)(cid:296)(cid:912)(cid:271)(cid:373)(cid:292)(cid:312)(cid:368)(cid:912)(cid:296)(cid:387)(cid:312)(cid:292)(cid:296)(cid:335)(cid:287)(cid:296)(cid:912)(cid:357)(cid:296)(cid:306)(cid:271)(cid:357)(cid:292)(cid:312)(cid:335)(cid:306)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:305)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:312)(cid:335)(cid:305)(cid:342)(cid:357)(cid:334)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)(cid:296)(cid:335)(cid:368)(cid:312)(cid:368)(cid:312)(cid:296)(cid:361)(cid:912)(cid:342)(cid:357)(cid:912)(cid:286)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:271)(cid:287)(cid:368)(cid:312)(cid:387)(cid:312)(cid:368)(cid:312)(cid:296)(cid:361)(cid:912)(cid:388)(cid:312)(cid:368)(cid:310)(cid:312)(cid:335)(cid:912)
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 controls 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 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 period and are therefore the key audit matters. We describe these matters in
our auditors’ report unless the law or regulations preclude 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 auditors’ report is Mr Ong Pang Thye.
KPMG LLP
Public Accountants and
Chartered Accountants
Singapore
14 May 2019
Singapore Telecommunications Limited | Annual Report 2019
136
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V
E
R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
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E
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N
A
N
C
E
A
N
D
S
U
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T
A
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A
B
I
L
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Y
P
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F
O
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M
A
N
C
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F
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A
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I
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D
D
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T
I
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N
A
L
I
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F
O
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M
A
T
I
O
N
Consolidated
Income Statement
For the financial year ended 31 March 2019
Operating revenue
Operating expenses
Other income
Depreciation and amortisation
Exceptional items
Profit on operating activities
Share of results of associates and joint ventures
Profit before interest, investment income (net) and tax
Interest and investment income (net)
Finance costs
Profit before tax
Tax expense
Profit after tax
Attributable to:
Shareholders of the Company
Non-controlling interests
Notes
2019
S$ Mil
2018
S$ Mil
4
5
6
7
8
9
17,371.7
17,268.0
(12,904.5)
(12,476.3)
224.7
258.8
4,691.9
5,050.5
(2,222.2)
(2,250.0)
2,469.7
2,800.5
68.2
1,895.1
2,537.9
4,695.6
1,562.7
1,804.0
4,100.6
6,499.6
10
11
38.1
(392.8)
45.5
(390.2)
3,745.9
6,154.9
12
(674.8)
(703.0)
3,071.1
5,451.9
3,094.5
(23.4)
5,473.0
(21.1)
3,071.1
5,451.9
Earnings per share attributable to shareholders of the Company
- basic (cents)
- diluted (cents)
13
13
18.96
18.93
33.53
33.48
Note:
The Group has adopted all applicable new and revised Singapore Financial Reporting Standards (International) (“SFRS(I)”) which became effective from
1 April 2018 and has applied them retrospectively. Accordingly, the comparatives have been restated to take into account adjustments relating to SFRS(I) 1,
First-time Adoption of SFRS(I), SFRS(I) 15, Revenue from Contracts with Customers and SFRS(I) 9, Financial Instruments.
The accompanying notes on pages 147 to 249 form an integral part of these financial statements.
Independent Auditors’ Report – pages 131 to 136.
137
Consolidated Statement of
Comprehensive Income
For the financial year ended 31 March 2019
Profit after tax
Other comprehensive (loss)/ income
Items that may be reclassified subsequently to income statement:
Exchange differences arising from translation of foreign operations
and other currency translation differences
Cash flow hedges
- Fair value changes
- Tax effects
- Fair value changes transferred to income statement
- Tax effects
2019
S$ Mil
2018
S$ Mil
3,071.1
5,451.9
(484.5)
(1,283.0)
182.9
(23.7)
159.2
(122.4)
17.8
(104.6)
(46.9)
(55.2)
(102.1)
35.0
46.8
81.8
54.6
(20.3)
Share of other comprehensive income of associates and joint ventures
283.8
650.3
Items that will not be reclassified subsequently to income statement:
Fair value changes on Fair Value through Other Comprehensive Income
(“FVOCI”) investments
Other comprehensive loss, net of tax
Total comprehensive income
Attributable to:
Shareholders of the Company
Non-controlling interests
13.2
9.6
(132.9)
(643.4)
2,938.2
4,808.5
2,962.3
(24.1)
4,828.9
(20.4)
2,938.2
4,808.5
The accompanying notes on pages 147 to 249 form an integral part of these financial statements.
Independent Auditors’ Report – pages 131 to 136.
Singapore Telecommunications Limited | Annual Report 2019
138
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V
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W
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I
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E
S
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Statements of Financial Position
As at 31 March 2019
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial instruments
Non-current assets
Property, plant and equipment
Intangible assets
Subsidiaries
Joint ventures
Associates
Fair value through other comprehensive
income (“FVOCI”) investments
Derivative financial instruments
Deferred tax assets
Other assets
Loan to an associate
Total assets
Current liabilities
Trade and other payables
Advance billings
Current tax liabilities
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Net deferred gain
Non-current liabilities
Advance billings
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Net deferred gain
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
31 March
2019
S$ Mil
Notes
15
16
17
18
512.7
5,992.7
417.6
155.1
7,078.1
19 11,050.4
20 14,016.7
-
21
22 12,857.9
2,060.2
23
646.9
283.6
276.6
644.4
-
41,836.7
Group
31 March
2018
S$ Mil
524.9
5,813.7
397.4
22.6
6,758.6
11,454.1
13,969.1
-
12,786.5
2,000.2
197.9
388.3
353.0
587.8
-
41,736.9
1 April
2017
S$ Mil
31 March
2019
S$ Mil
Company
31 March
2018
S$ Mil
533.8
5,762.4
352.2
106.1
6,754.5
11,456.1
13,072.8
-
12,285.3
1,946.7
192.9
434.4
634.9
592.0
1,100.5
41,715.6
81.6
1,960.9
37.2
0.7
2,080.4
2,250.0
-
20,009.2
22.8
24.7
5.3
125.9
-
130.7
-
22,568.6
92.0
2,323.9
21.8
70.1
2,507.8
2,259.4
-
19,425.9
22.8
24.7
5.5
130.6
-
144.9
-
22,013.8
1 April
2017
S$ Mil
89.2
1,673.3
23.8
105.9
1,892.2
2,266.6
-
17,441.0
23.0
603.5
37.4
283.5
-
161.0
1,100.5
21,916.5
48,914.8
48,495.5
48,470.1
24,649.0
24,521.6
23,808.7
5,817.1
812.1
255.0
1,846.2
34.0
9.2
20.8
8,794.4
5,371.0
794.1
351.3
1,800.5
23.1
69.3
20.1
8,429.4
5,054.8
861.1
296.3
3,046.6
86.7
15.8
68.8
9,430.1
1,737.5
89.8
83.6
-
4.8
0.5
-
1,916.2
1,468.4
80.1
101.5
-
7.4
84.9
-
1,742.3
197.4
8,734.4
49.5
149.5
375.0
515.1
289.8
10,310.7
221.6
8,586.1
81.5
277.0
357.7
535.6
295.1
10,354.6
241.9
7,898.2
199.6
279.4
1,282.7
572.8
324.2
10,798.8
129.2
786.5
7.7
191.8
-
274.5
26.5
1,416.2
136.7
739.5
68.5
250.9
-
268.2
31.4
1,495.2
1,602.0
74.8
100.6
-
1.5
108.8
-
1,887.7
138.3
802.7
157.2
344.0
-
273.0
23.7
1,738.9
19,105.1
18,784.0
20,228.9
3,332.4
3,237.5
3,626.6
29,809.7
29,711.5
28,241.2
21,316.6
21,284.1
20,182.1
25
18
12
26
27
28
29
18
31
28
29
18
31
12
32
33
4,127.3
25,710.5
4,127.3
25,609.8
4,127.3
24,113.9
4,127.3
17,189.3
4,127.3
17,156.8
4,127.3
16,054.8
29,837.8
(28.1)
-
29,737.1
(3.2)
(22.4)
28,241.2
22.4
(22.4)
21,316.6
-
-
21,284.1
-
-
20,182.1
-
-
29,809.7
29,711.5
28,241.2
21,316.6
21,284.1
20,182.1
The accompanying notes on pages 147 to 249 form an integral part of these financial statements.
Independent Auditors’ Report – pages 131 to 136.
139
Statements of Changes in Equity
For the financial year ended 31 March 2019
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Singapore Telecommunications Limited | Annual Report 2019
140
Statements of Changes in Equity
For the financial year ended 31 March 2019
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141
Statements of Changes in Equity
For the financial year ended 31 March 2019
Company - 2019
Balance as at 1 April 2018,
previously reported
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
4,127.3
(1.0)
39.4
60.1
2.2 17,133.7 21,361.7
Effects of adoption of SFRS(I) 1, 9 and 15
-
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(56.1)
-
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(77.6)
Balance as at 1 April 2018, restated
4,127.3
(1.0)
39.4
4.0
2.2 17,112.2 21,284.1
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 (5)
Final dividend paid (see Note 34)
Interim dividend paid (see Note 34)
Total comprehensive income/ (loss)
for the year
-
-
-
-
-
-
-
-
-
-
(1.8)
1.7
-
-
-
-
-
-
(0.1)
-
(1.7)
13.6
7.8
(0.1)
(13.8)
-
-
5.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1.8)
-
13.6
7.8
-
-
(0.1)
(13.8)
(1,747.2) (1,747.2)
(1,110.4) (1,110.4)
(2,857.6) (2,851.9)
-
-
20.2
(0.2) 2,864.4
2,884.4
Balance as at 31 March 2019
4,127.3
(1.1)
45.2
24.2
2.0 17,119.0 21,316.6
The accompanying notes on pages 147 to 249 form an integral part of these financial statements.
Independent Auditors’ Report – pages 131 to 136.
Singapore Telecommunications Limited | Annual Report 2019
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Statements of Changes in Equity
For the financial year ended 31 March 2019
Company - 2018
Balance as at 1 April 2017,
previously reported
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
4,127.3
(0.9)
38.3
60.3
27.7 16,006.1 20,258.8
Effects of adoption of SFRS(I) 1, 9 and 15
-
-
-
(46.3)
-
(30.4)
(76.7)
Balance as at 1 April 2017, restated
4,127.3
(0.9)
38.3
14.0
27.7 15,975.7 20,182.1
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 (5)
Final dividend paid (see Note 34)
Interim dividend paid (see Note 34)
Special dividend paid (see Note 34)
Reclassification due to disposal of
FVOCI investments
Total comprehensive (loss)/ income
for the year
-
-
-
-
-
-
-
-
-
-
-
-
(2.4)
2.3
-
-
-
-
-
-
-
-
(0.1)
-
(2.3)
11.8
4.2
(0.2)
(12.4)
-
-
-
-
1.1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2.4)
-
11.8
4.2
-
-
(1,747.2)
(1,110.4)
(489.9)
(0.2)
(12.4)
(1,747.2)
(1,110.4)
(489.9)
(25.0)
(25.0)
25.0
(3,322.5)
-
(3,346.5)
-
-
(10.0)
(0.5) 4,459.0
4,448.5
Balance as at 31 March 2018
4,127.3
(1.0)
39.4
4.0
2.2 17,112.2 21,284.1
Notes:
(1)
‘Treasury Shares’ are accounted for in accordance with Singapore Financial Reporting Standards (International) (“SFRS(I)”) 1-32, Financial Instruments:
Presentation.
‘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.
‘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.
(2)
(3)
(4) This amount was a reserve for an obligation which arose from a put option written with the non-controlling shareholder of Trustwave Holdings, Inc. (“Trustwave”).
In May 2018, the put option was exercised for the acquisition of the remaining 2% equity interest in Trustwave.
(5) DBS Trustee Limited (the “Trust”) is the trustee of a trust established to administer the performance share plans.
The accompanying notes on pages 147 to 249 form an integral part of these financial statements.
Independent Auditors’ Report – pages 131 to 136.
143
Consolidated Statement of Cash Flows
For the financial year ended 31 March 2019
Cash Flows From Operating Activities
Profit before tax
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
2019
S$ Mil
2018
S$ Mil
3,745.9
6,154.9
2,222.2
(1,562.7)
(171.7)
(38.1)
392.8
36.3
878.8
2,250.0
(1,804.0)
(1,920.3)
(45.5)
390.2
30.3
(1,099.3)
Operating cash flow before working capital changes
4,624.7
5,055.6
Changes in operating assets and liabilities
Trade and other receivables
Trade and other payables
Inventories
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 from operating activities
Cash Flows From Investing Activities
Payment for purchase of property, plant and equipment
Purchase of intangible assets
Investment in associate/ joint venture (Note 1)
Payment for acquisition of subsidiary, net of cash acquired (Note 2)
Payment for acquisition of intangibles and other assets (Note 3)
Investment in FVOCI investments (Note 4)
Proceeds from disposal of subsidiary
Payment for acquisition of non-controlling interests
Proceeds/ Deferred proceeds from disposal of associates and joint venture (Note 5)
Repayment of loan by an associate (Note 5)
Proceeds from sale of property, plant and equipment
Proceeds from sale of FVOCI investments
Interest received
Dividends received from FVOCI investments (net of withholding tax paid)
Withholding tax paid on intra-group interest income
(431.6)
338.8
(33.6)
(139.1)
58.8
(59.1)
4,498.3
4,916.2
1,548.9
(679.5)
(0.1)
1,647.7
(607.8)
(0.9)
5,367.6
5,955.2
(1,718.1)
(216.7)
(2.3)
(5.8)
(123.1)
(436.9)
15.4
(16.1)
14.8
-
160.9
14.8
7.0
0.3
(22.7)
(2,349.0)
(1,124.4)
(540.6)
(336.5)
-
(59.6)
-
-
1,146.4
1,100.5
142.6
77.7
16.4
1.8
(26.0)
Net cash used in investing activities
(2,328.5)
(1,950.7)
The accompanying notes on pages 147 to 249 form an integral part of these financial statements.
Independent Auditors’ Report – pages 131 to 136.
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Consolidated Statement of Cash Flows
For the financial year ended 31 March 2019
Cash Flows From Financing Activities
Proceeds from term loans
Repayment of term loans
Proceeds from bond issue
Repayment of bonds
Increase in finance lease liabilites
Finance lease payments
Net proceeds from/ (repayment of) borrowings
Final dividend paid to shareholders of the Company
Interim dividend paid to shareholders of the Company
Special dividend paid to shareholders of the Company
Net interest paid on borrowings and swaps
Settlement of swaps for bonds repaid
Purchase of performance shares
Dividend paid to non-controlling interests
Others
Net cash used in financing activities
Net change in cash and cash equivalents
Exchange effects on cash and cash equivalents
Cash and cash equivalents at beginning of year
Note
2019
S$ Mil
2018
S$ Mil
7,157.1
(6,983.1)
1,177.6
(1,139.1)
44.3
(34.5)
222.3
(1,746.7)
(1,109.9)
-
(385.1)
(6.2)
(25.6)
(5.4)
1.1
6,948.6
(6,726.0)
430.2
(936.4)
18.0
(46.3)
(311.9)
(1,746.6)
(1,110.0)
(489.7)
(379.9)
61.4
(25.0)
(5.4)
(2.1)
(3,055.5)
(4,009.2)
(16.4)
4.2
524.9
(4.7)
(4.2)
533.8
Cash and cash equivalents at end of year
15
512.7
524.9
Note 1:
Investment in joint venture
Singtel acquired an additional 1.7% equity interest in Bharti Telecom Limited for S$539.4 million in the previous
financial year.
Note 2: Payment for acquisition of subsidiary
(a) On 28 December 2018, Singtel’s wholly-owned subsidiary, Optus Cyber Security Pty Limited, completed
the acquisition of 100% of shares in Hivint Pty Limited (“Hivint”), a cyber security consulting company in
Australia, for S$16.6 million (A$17 million). The fair values of identifiable net assets and the cash outflow on
the acquisition were as follows –
The accompanying notes on pages 147 to 249 form an integral part of these financial statements.
Independent Auditors’ Report – pages 131 to 136.
145
Consolidated Statement of Cash Flows
For the financial year ended 31 March 2019
Note 2: Payment for acquisition of subsidiary (Cont’d)
Cash and cash equivalents
Trade and other receivables
Total liabilities
Net assets acquired
Goodwill
Total cash consideration
Less: Consideration unpaid as at 31 March 2019
Less: Cash and cash equivalents acquired
Net outflow of cash
31 March 2019
S$ Mil
2.2
2.8
(3.5)
1.5
15.1
16.6
(8.6)
(2.2)
5.8
(b)
The payment of S$336.5 million in the previous financial year was for the acquisition of Turn, Inc. by
Amobee, Inc. (“Amobee”), a wholly-owned subsidiary of the Group.
Note 3: Payment for acquisition of intangibles and other assets
On 22 August 2018, Amobee completed the acquisition of the technology platform, intellectual property and
certain other assets of Videology, Inc. and its subsidiaries for S$123.1 million (US$90 million). The fair values of
identifiable net assets and the cash outflow on the acquisition were as follows –
Identifiable intangible assets
Non-current assets
Trade and other receivables
Total liabilities
Net assets acquired
Goodwill
Net outflow of cash
Note 4:
Investment in FVOCI investments
31 March 2019
S$ Mil
18.8
0.1
11.4
(2.0)
28.3
94.8
123.1
This included a payment of S$344.3 million (US$250 million) for Singtel’s acquisition of 5.7% equity interest in
Airtel Africa Limited on 24 October 2018.
Note 5: Proceeds from disposal of an associate, and repayment of loan by an associate
In the previous financial year, Singtel sold its 100% interest in NetLink Trust to NetLink NBN Trust for an aggregate
consideration of S$1.89 billion comprising a cash consideration of S$1.11 billion and 24.8% interest in NetLink NBN
Trust. In addition, a unitholder loan of S$1.10 billion was repaid by NetLink Trust to Singtel.
The accompanying notes on pages 147 to 249 form an integral part of these financial statements.
Independent Auditors’ Report – pages 131 to 136.
Singapore Telecommunications Limited | Annual Report 2019
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Notes to the Financial Statements
For the financial year ended 31 March 2019
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 significant subsidiaries are disclosed in Note 44.
In Singapore, the Group has the rights to provide fixed national and international telecommunications services to
31 March 2037, and public cellular mobile telephone services to 31 March 2032. In addition, the Group is licensed to
offer Internet services and has also obtained frequency spectrum and licence rights to install, operate and maintain
mobile communication systems and services including wireless broadband systems and services. The Group also
holds the requisite licence to provide nationwide subscription television services.
In Australia, Optus is 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 14 May 2019.
2.
SIGNIFICANT ACCOUNTING POLICIES
2.1
Basis of Accounting
For all periods up to and including the financial year ended 31 March 2018, the financial statements were prepared
in accordance with Financial Reporting Standards in Singapore (“FRS”). With effect from 1 April 2018, the Group
adopted all applicable new and revised Singapore Financial Reporting Standards (International) (“SFRS(I)”) and
Interpretations of SFRS(I) on a mandatory basis. SFRS(I) are identical to the International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The new accounting framework and standards have been retrospectively applied to the financial statements for
the previous financial year ended 31 March 2018 and the opening statement of financial position as at 1 April 2017.
These are the Group’s first set of financial statements prepared in accordance with SFRS(I), of which SFRS(I) 1,
First-time Adoption of Singapore Financial Reporting Standards (International) has been applied. The adoption
of SFRS(I) has no material effect on the financial statements prepared under FRS, except for SFRS(I) 1, SFRS(I) 9,
Financial Instruments, and SFRS(I) 15, Revenue from Contracts with Customers. The summarised impact of adopting
SFRS(I) 1, SFRS(I) 9 and SFRS(I) 15 for the previous financial year ended 31 March 2018, and as at 31 March 2018
and 1 April 2017, are shown in Note 42.
The financial statements have been prepared under the historical cost basis, except as disclosed in the accounting
policies below, and are drawn up in accordance with the provisions of the Singapore Companies Act and SFRS(I).
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 SFRS(I) requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
147
Notes to the Financial Statements
For the financial year ended 31 March 2019
2.1
Basis of Accounting (Cont’d)
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.
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.
2.2
Foreign Currencies
2.2.1 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.
2.2.2 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.
2.2.3 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 below for translation of goodwill and fair
value adjustments).
Income and expenses in the consolidated 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 proportionate accumulated translation differences relating to the disposal are taken to the consolidated
income statement.
2.2.4 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.
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Notes to the Financial Statements
For the financial year ended 31 March 2019
2.2.5 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’ in the consolidated financial statements. 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 2.2.3.
2.3
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.
2.4
Contract Assets
Where revenue recognised for a customer contract exceeds the amount received or receivable from a customer, a
contract asset is recognised. Contract assets arise from bundled telecommunications contracts where equipment
delivered at a point in time are bundled with services delivered over time. Contract assets also arise from information
technology contracts where performance obligations are delivered over time (see Note 2.23). Contract assets are
transferred to trade receivables when the consideration for performance obligations are billed. Contract assets are
included in ‘Trade and other receivables’ under current assets as they are expected to be realised in the normal
operating cycle. Contract assets are subject to impairment review for credit risk in accordance with the expected
loss model.
2.5
Trade and Other Receivables
Trade and other receivables, including contract assets and receivables from subsidiaries, associates and joint
ventures, are initially recognised at fair values and subsequently measured at amortised cost using the effective
interest method, less an allowance for expected credit loss (“ECL”).
The Group applied the ‘simplified approach’ for determining the allowance for ECL for trade receivables and
contract assets, where lifetime ECL are recognised in the income statement at initial recognition of receivables
and updated at each reporting date. Lifetime ECL represents the expected credit losses that will result from all
possible default events over the expected life of the receivable. When determining the allowance for ECL, the Group
considers reasonable and supportable information that is relevant and available for customer types. This includes
both qualitative and quantitative information based on the Group’s historical experience and forward looking
information such as general economic factors as applicable. Loss events include financial difficulty or bankruptcy of
the debtor, significant delay in payments and breaches of contracts.
Trade and other receivables are written off against the allowance for ECL when there is no reasonable expectation
of recovery. Subsequent recoveries of amounts previously written off are recognised in the income statement.
2.6
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.
149
Notes to the Financial Statements
For the financial year ended 31 March 2019
2.7
Contract Liabilities
Where the amounts received or receivable from customers exceed the revenues recognised for contracts, contract
liabilities or advance billings are recognised in the statement of financial position. Contract liabilities or advance
billings are recognised as revenues when services are provided to customers.
2.8
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.
2.9
Borrowings
Borrowings are initially recognised at fair value of the consideration received less directly attributable transaction
costs. After initial recognition, borrowings are subsequently stated at amortised cost using the effective interest
method.
2.10 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.
For information technology contracts, a provision for expected project loss is made when it is probable that total
contract costs will exceed total contract revenue.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.
2.11 Contingencies
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Group; or a present obligation that arises from past events but is not recognised because it is not probable that
an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount of the
obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognised on the statement of financial position of the Group, except for contingent
liabilities assumed in a business combination that are present obligations and for which fair values can be
reliably determined.
2.12 Group Accounting
The accounting policy for investments in subsidiaries, associates and joint ventures in the Company’s financial
statements is stated in Note 2.13. The Group’s accounting policy on goodwill is stated in Note 2.19.1.
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Notes to the Financial Statements
For the financial year ended 31 March 2019
2.12.1 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.
2.12.2 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.
Where the Group’s interest in an associate reduces as a result of a deemed disposal, any gain or loss arising as a
result of the deemed disposal is taken to the consolidated income statement.
Where the Group increases its interest in its existing associate and it remains as an associate, the incremental cost of
investment is added to the existing carrying amount without considering the fair value of the associate’s identifiable
assets and liabilities.
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.
2.12.3 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.
Where the Group’s interest in a joint venture reduces as a result of a deemed disposal, any gain or loss arising as a
result of the deemed disposal is taken to the consolidated income statement.
151
Notes to the Financial Statements
For the financial year ended 31 March 2019
2.12.3 Joint ventures (Cont’d)
Where the Group increases its interest in its existing joint venture and it remains as a joint venture, the incremental
cost of investment is added to the existing carrying amount without considering the fair value of the joint venture’s
identifiable assets and liabilities.
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.
2.12.4 Dividends from associates and joint ventures
Dividends are recognised when the Group’s rights to receive payment have been established. 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 consolidated 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.
2.12.5 Structured entity
The Trust has been consolidated in the consolidated financial statements under SFRS(I) 10, Consolidated
Financial Statements.
2.12.6 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 consolidated 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 consolidated
income statement.
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For the financial year ended 31 March 2019
2.12.6 Business combinations (Cont’d)
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, consolidated 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 consolidated income statement.
2.13
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.
2.14 Fair Value Through Other Comprehensive Income (“FVOCI”) investments
On initial recognition, the Group has made an irrevocable election to designate all equity investments (other than
investments in subsidiaries, associates or joint ventures) as FVOCI investments as these are strategic investments
held for the long term. They are initially recognised at fair value plus directly attributable transaction costs,
with subsequent changes in fair value and translation differences recognised in ‘Other Comprehensive Income’
and accumulated within ‘Fair Value Reserve’ in equity. Upon disposal, the gain or loss accumulated in equity is
transferred to retained earnings and is not reclassified to the income statement. Dividends are recognised in the
income statement when the Group’s right to receive payments is established.
Purchases and sales of investments are recognised on trade date, which is the date that the Group commits to
purchase or sell the investment.
2.15 Derivative Financial Instruments and Hedging Activities
The Group enters into the following derivative financial instruments to hedge its risks, namely –
Cross currency swaps and interest rate swaps as fair value hedges for interest rate risk and cash flow hedges
for 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 entities’ functional currencies.
Forward foreign exchange contracts as cash flow hedges for the Group’s exposure to foreign currency
exchange risks arising from forecasted or committed expenditure.
153
Notes to the Financial Statements
For the financial year ended 31 March 2019
2.15 Derivative Financial Instruments and Hedging Activities (Cont’d)
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.
2.15.1 Hedge accounting
At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument
and the hedged item, along with the risk management objectives and strategy for undertaking various hedge
transactions. At inception and on an ongoing basis, the Group documents whether the hedging instrument is
effective in offsetting the changes in fair values or cash flows of the hedged item attributable to the hedged risk. To
be effective, the hedging relationships are to meet all of the following requirements:
(i)
there is an economic relationship between the hedged item and the hedging instrument;
(ii)
(iii)
the effect of credit risk does not dominate the fair value changes that result from that economic relationship;
and
the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item
that the Group hedges and the quantity of the hedging instrument that the Group uses to hedge that quantity
of the hedged item.
If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk
management objective for that designated hedging relationship remains the same, the Group adjusts the hedge
ratio of the hedging relationship (i.e. rebalances the hedge) so that it meets the qualifying criteria again.
The Group designates the full change in the fair value of a forward currency contract (i.e. including the forwards
elements) as the hedged risk for all its hedging relationships involving forward currency contracts.
Note 18.1 sets out the details of the fair values of the derivative instruments used for hedging purposes.
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 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 in the income statement from that date.
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Notes to the Financial Statements
For the financial year ended 31 March 2019
2.15.1 Hedge accounting (Cont’d)
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’ within
equity are transferred to the income statement in the periods when the hedged items affect the income statement.
However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial
liability, the gain or loss previously recognised in ‘Other Comprehensive Income’ and accumulated in equity are
removed from equity and included in the initial measurement of the cost of the non-financial asset or non-financial
liability. This transfer does not affect ‘Other Comprehensive Income’. Furthermore, if the Group expects some or all the
loss accumulated in ‘Other Comprehensive Income’ will not be recovered in the future, that amount is immediately
reclassified to the income statement.
Hedge accounting is discontinued when 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 transferred to the income statement when the forecast transaction is 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.
2.16 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 maturity of these instruments.
Quoted and unquoted investments
The fair values of investments traded in active markets are based on the market quoted price or the 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 primarily using recent arm’s length transactions.
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.
155
Notes to the Financial Statements
For the financial year ended 31 March 2019
2.16 Fair Value Estimation of Financial Instruments (Cont’d)
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 quoted market 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.
2.17
Financial Guarantee Contracts
Financial guarantees issued by the Company prior to 1 April 2010 are recorded initially at fair values plus transaction
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.
2.18 Property, Plant and Equipment
Property, plant and equipment are 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 - 15
2 - 20
Other plant and equipment consist mainly of finance-leased handsets, 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.
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Notes to the Financial Statements
For the financial year ended 31 March 2019
2.18 Property, Plant and Equipment (Cont’d)
Costs of 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.
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
Intangible Assets
2.19.1 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 the consolidated income statement
when the entity is disposed of or when the goodwill is impaired.
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.
157
Notes to the Financial Statements
For the financial year ended 31 March 2019
2.19.1 Goodwill (Cont’d)
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 2.20). 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.
2.19.2 Other intangible assets
Expenditure on telecommunication and spectrum licences are capitalised and amortised using the straight-line
method over their estimated useful lives of 11 to 16 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.
2.20
Impairment of Non-Financial Assets
Goodwill on acquisition of subsidiaries is subject to an 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 2.19.1).
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 its 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.
2.21 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 their carrying
amounts and fair value less costs to sell if their carrying amounts are recovered principally through sale transactions
rather than through continuing use.
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Notes to the Financial Statements
For the financial year ended 31 March 2019
2.22 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 financial statements.
2.23 Revenue Recognition
Revenue is recognised when the Group satisfies a performance obligation by transferring control of a promised
good or service to the customer. It is measured based on the amount of the transaction price allocated to the
satisfied performance obligation, and are net of goods and services tax, rebates, discounts and sales within
the Group.
Revenue from service contracts (e.g. telecommunications or pay TV) are recognised ratably over the contract
periods as control over the services passes to the customers as services are provided. Service revenue is also
recognised based on usage (e.g. minutes of traffic/ bytes of data).
For prepaid cards which have been sold, revenue is recognised based on usage. A contract liability is recognised for
advance payments received from customers where services 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 (primarily handsets and accessories) is recognised upon the transfer of control
to the customer or third party dealer which generally coincides with delivery and acceptance of the equipment sold.
Goods and services deliverable under bundled telecommunication contracts are identified as separate performance
obligations to the extent that the customer can benefit from the goods or services on their own. The transaction
price is allocated between goods and services based on their relative standalone selling prices. Standalone
selling prices are determined by assessing prices paid for standalone equipment and for service-only contracts
(e.g. arrangements where customers bring their own equipment). Where standalone selling prices are not directly
observable, estimation techniques are used.
Contracts with customers generally do not include a material right. In cases where material rights are granted such
as the award of mobile price plan discount vouchers, a portion of the transaction price is deferred as a contract
liability (see Note 2.7) and is not recognised as revenue until this additional performance obligation has been
satisfied or has lapsed.
Incentives given to customers are recognised as a reduction from revenue in accordance with the specific terms
and conditions of each contract.
159
Notes to the Financial Statements
For the financial year ended 31 March 2019
2.23 Revenue Recognition (Cont’d)
Non-refundable, upfront service activation and setup fees associated with service arrangements are deferred and
recognised over the associated service contract period or customer life.
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.
When the Group has control of goods or services prior to delivery to a customer, the Group is the principal in the sale
to the customer. If another party has control of goods and services prior to transfer to a customer, then the Group is
acting as an agent for the other party and revenue is recognised net of any related payments. The Group typically
acts as an agent for digital mobile content such as music and video.
For information technology projects, revenue is recognised over time based on the cost-to-cost method, i.e. based
on the proportion of contract costs incurred for work performed to date relative to the estimated total contract
costs, while invoicing is typically based on milestones. A contract asset is recognised for work performed. Any
amount previously recognised as a contract asset is transferred to trade receivable upon invoicing to the customer.
If the milestone payment exceeds the revenue recognised to date, then the Group recognises a contract liability
for the difference.
Revenues from sale of perpetual software licences and the related hardware are recognised when title passes to
the customer, generally upon delivery.
Revenues from digital advertising services and solutions are recognised when advertising services are delivered,
and when digital advertising impressions are delivered or click-throughs occur. Revenue from sale of advertising
space is recognised when the advertising space is filled and sold to customers. The Group is generally the principal
in transactions carried out through Amobee’s advertising platforms and therefore reports gross revenue based on
the amount billed 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.
Revenue recognition for leases is described in Note 2.24.2.
2.24 Leases
2.24.1 Where the Group is the lessee
Operating leases
Leases where substantially all the risks and rewards of ownership are not transferred to the Group are classified as
operating leases. Operating lease payments are recognised as operating expenses in the income statement on a
straight-line basis over the lease term.
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Notes to the Financial Statements
For the financial year ended 31 March 2019
2.24.1 Where the Group is the lessee (Cont’d)
Finance leases
Finance leases are those leasing agreements which effectively transfer substantially all the risks and benefits
incidental to ownership of the leased items to the Group. 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. The
liabilities to the lessor are recognised as finance lease obligations in the statement of financial position. Lease
payments are apportioned between finance expenses and reduction of the lease liability to achieve a constant
periodic rate of interest on the remaining balance of the liability.
2.24.2 Where the Group is the lessor
Operating leases
Leases where the Group retains substantially all the risks and rewards of ownership of the assets are classified as
operating leases.
Income from operating leases are recognised on a straight-line basis over the lease terms as the entitlement to the
fees accrues. The leased assets are included in the statement of financial position as property, plant and equipment.
Finance leases
Leases of assets where substantially all the risks and rewards incidental to ownership of the assets are transferred
by the Group to the lessees are classified as finance leases. Receivables under finance leases are presented in the
statement of financial position at an amount equal to the net investment in the leases and the leased assets are
derecognised. Finance income is allocated using a constant periodic rate of return on the net investment over the
lease term.
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.
2.24.3 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.
2.25 Contract Costs
Sales commission and the costs of customer premise equipment directly attributable to obtaining and fulfilling a
customer’s contract are capitalised in the statement of financial position and amortised as operating expenses over
the contract period or expected customer relationship period.
161
Notes to the Financial Statements
For the financial year ended 31 March 2019
2.25 Contract Costs (Cont’d)
Costs to obtain contracts in the form of handset subsidies given to mobile customers via indirect channels are also
capitalised in the statement of financial position but are amortised as a reduction of mobile service revenue over the
contract period or expected customer relationship period. The contract period or expected customer relationship
period typically ranges from 1 year to 2 years.
Capitalised contract costs are included in ‘Other Assets’ under non-current assets.
2.26 Employees’ Benefits
2.26.1 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.
2.26.2 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.
2.26.3 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 for 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.
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Notes to the Financial Statements
For the financial year ended 31 March 2019
2.27 Borrowing Costs
Borrowing costs comprise interest, amortisation of discounts or premiums relating to borrowings, amortisation of
ancillary costs incurred in arranging the 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.
2.28 Pre-incorporation Expenses
Pre-incorporation expenses are expensed as incurred.
2.29 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.
2.30
Income Tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in the income
statement except to the extent that it relates to a business combination, or items recognised directly in equity or in
‘Other Comprehensive Income’.
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, 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/ loss, it is
not recognised. 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 tax laws) enacted or substantively enacted in countries where
the Company and its subsidiaries operate, 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.
163
Notes to the Financial Statements
For the financial year ended 31 March 2019
2.30
Income Tax (Cont’d)
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.
2.31 Dividends
Interim and special 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.
2.32 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.
2.33 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.
3.
CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will,
by definition, seldom be equal to the future actual results. As accounting standards are principles-based,
professional judgement is required under certain circumstances. The estimates, assumptions and judgements
that bear a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are
discussed below.
3.1
Impairment Reviews
The accounting policies for impairment of non-financial assets are stated in Note 2.20.
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 or cash-generating
units 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.
Singapore Telecommunications Limited | Annual Report 2019
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Notes to the Financial Statements
For the financial year ended 31 March 2019
3.1
Impairment Reviews (Cont’d)
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 24. The carrying values of joint ventures and associates including goodwill
capitalised are stated in Note 22 and Note 23 respectively.
3.2
Expected Credit Loss (“ECL”) of Receivables
At each reporting date, the Group assesses whether trade and other receivables are credit-impaired. The
allowance for ECL is based on management’s assessment of the collectability of individual customer accounts
taking into consideration the credit worthiness and financial condition of those customers. The Group also records
an allowance for all other receivables based on management’s collective assessment of their collectability taking
into consideration multiple factors including historical experience of credit losses, forward looking information as
applicable and the aging of the receivables with allowances generally increasing as the receivable ages. If there
is a deterioration of customers’ financial condition or if future default rates in general differ from those currently
anticipated, the Group may have to adjust the allowance for credit losses, which would affect earnings in the
period that adjustments are made.
The exposure to credit risk for receivables is disclosed in Note 16.
3.3
Estimated Useful Lives of Property, Plant and Equipment
Property, plant and equipment balances represent a significant component of the Group’s assets. Property, plant
and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the
assets. The Group reviews the estimated useful lives of property, plant and equipment on an annual basis 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 would increase the recorded
depreciation and decrease the carrying value of property, plant and equipment.
3.4
Taxation
3.4.1 Deferred tax asset
The Group reviews the carrying amount of deferred tax assets at each reporting date. A 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 for which the deferred tax asset has been recognised.
3.4.2 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, including the tax matters disclosed in Note 40(b). 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.
165
Notes to the Financial Statements
For the financial year ended 31 March 2019
3.5
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.
3.6
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 Group uses expert valuation services to determine the fair values. The assumptions of the valuation model used
to determine fair values are set out in Note 5.3.
3.7
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 2019, the Group was
involved in various legal proceedings where it has been vigorously defending its claims as disclosed in Note 40.
Assessment on whether the risk of loss is remote, possible or probable requires significant judgement given the
complexities involved.
The Group’s associates and joint ventures also report significant contingent liabilities. The significant contingent
liabilities of the Group’s associates and joint ventures are disclosed in Note 41.
3.8
Revenue Recognition
The accounting policies for revenue recognition are stated in Note 2.23.
The application of SFRS(I) 15 requires the Group to exercise judgement in identifying distinct or non-distinct
performance obligations. For bundled telecommunications contracts, the Group is required to estimate the
standalone selling prices of performance obligations, which materially impacts the allocation of revenue between
performance obligations. Where the Group does not sell equivalent goods or services in similar circumstances on a
standalone basis, it is necessary to estimate the standalone selling price. Changes in estimates of standalone selling
prices can significantly influence the allocation of the transaction price between performance obligations. When
estimating the standalone selling price, the Group maximises the use of observable inputs.
The assessment of whether the Group presents operating revenue as the principal, or net after deduction of costs as
an agent, is a matter of judgement which requires an analysis of both the legal form and the substance of contracts.
Depending on the conclusion reached, there may be material differences in the amounts of revenues and expenses,
though there is no impact on profit.
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Notes to the Financial Statements
For the financial year ended 31 March 2019
4.
OPERATING REVENUE
Mobile service (1)
Sale of equipment
Handset operating lease income
Mobile
Data and Internet
Business solutions
Cyber security
Other managed services
Infocomm Technology (“ICT”) (2)
Digital businesses (3)
Fixed voice
Pay television
Others (4)
Operating revenue
Operating revenue
Other income
Interest and investment income (see Note 10)
Total
2019
S$ Mil
5,395.7
2,876.7
140.5
8,412.9
3,340.9
604.1
548.7
1,880.8
3,033.6
1,245.3
899.0
372.7
67.3
Group
2018
S$ Mil
5,737.3
2,414.5
25.2
8,177.0
3,435.7
560.7
527.1
1,920.0
3,007.8
1,113.1
1,084.3
369.4
80.7
17,371.7
17,268.0
17,371.7
224.7
38.1
17,268.0
258.8
45.5
17,634.5
17,572.3
Notes:
(1)
Includes revenues from subscription (prepaid/postpaid), interconnect, outbound and inbound roaming, wholesale revenue from MVNOs (Mobile
Virtual Network Operators) and mobile content services such as music and video.
Includes equipment sales related to ICT services.
(2)
(3) Mainly from provisions of digital marketing and advertising services and regional premium OTT video.
(4)
Includes energy reselling fees.
As at 31 March 2019, the transaction price attributable to unsatisfied performance obligations for ICT services
rendered by NCS Pte. Ltd. is approximately S$3 billion which will be recognised as operating revenue mostly over
the next 5 years.
Service contracts with consumers typically range from a month to 2 years, and contracts with enterprises typically
range from 1 to 3 years.
5.
OPERATING EXPENSES
Cost of equipment sold (1)
Other cost of sales
Staff costs
Selling and administrative costs (2)
Traffic expenses
Repair and maintenance
Notes:
(1)
(2)
Includes equipment costs related to ICT services.
Includes supplies and services, as well as rentals of properties and mobile base stations.
167
2019
S$ Mil
3,106.1
2,767.1
2,597.3
2,472.6
1,573.4
388.0
Group
2018
S$ Mil
2,696.7
2,499.2
2,760.1
2,536.6
1,615.8
367.9
12,904.5
12,476.3
Notes to the Financial Statements
For the financial year ended 31 March 2019
5.1
Staff Costs
Staff costs included the following –
Contributions to defined contribution plans
Performance share and share option expenses
- 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)
2019
S$ Mil
225.1
38.0
3.3
2019
S$ Mil
3.5
15.9
19.4
2.7
22.1
Group
Group
2018
S$ Mil
237.3
32.7
1.9
2018
S$ Mil
6.1
22.4
28.5
2.5
31.0
Notes:
(1) Comprise base salary, 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 1,030,168 (2018: 1,712,538) ordinary shares of Singtel pursuant
to Singtel performance share plans, subject to certain performance criteria including other terms and conditions being met. The performance share
award in the previous financial year included a one-off Special Share Award (“SSA”). The performance share expense computed in accordance with
SFRS(I) 2, Share-based Payment, was S$1.5 million (2018: S$3.3 million).
(3) The other key management personnel of the Group comprise the Chief Executive Officers of Consumer Singapore, Consumer Australia, Group
Enterprise, Group Digital Life and International Group, as well as the Group Chief Corporate Officer, Group Chief Financial Officer, Group Chief Human
Resources Officer, Group Chief Information Officer and Group Chief Technology Officer.
The other key management personnel were awarded up to 3,537,119 (2018: 4,391,498) ordinary shares of Singtel pursuant to Singtel performance share
plans, subject to certain performance criteria including other terms and conditions being met. The performance share award in the previous financial
year included a one-off SSA. The performance share expense computed in accordance with SFRS(I) 2 was S$6.1 million (2018: S$8.5 million).
(4) Directors’ remuneration comprises the following:
(i) Directors’ fees of S$2.7 million (2018: S$2.5 million), including fees paid to certain directors in their capacities as members of the Optus Advisory
Committee and the Technology Advisory Panel, and as director of Singtel Innov8 Pte. Ltd.
(ii) Car-related benefits of the Chairman of S$24,557 (2018: S$20,446).
In addition to the Directors’ remuneration, Venkataraman Vishnampet Ganesan, a non-executive director of Singtel, was awarded 831,087 (2018: Nil)
of share options pursuant to the Amobee Long-Term Incentive Plan during the financial year, subject to certain terms and conditions being met.
The share option expense computed in accordance with SFRS(I) 2 was S$104,278 (2018: S$21,607).
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 or vesting conditions 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 executives to be settled by Singtel shares or cash, at the option of
the recipient.
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Notes to the Financial Statements
For the financial year ended 31 March 2019
5.3.1 Performance share plans (Cont’d)
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.
In recognition of the value created from the development and operation of Singapore’s nationwide fibre network
infrastructure and the successful IPO of NetLink NBN Trust in July 2017, Senior Management received a one-off
Special Share Award in July 2018.
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
2019
Date of grant
FY2016 (1)
17 June 2015
September 2015 to March 2016
FY2017
20 June 2016
September 2016 to March 2017
FY2018
19 June 2017
September 2017 to March 2018
FY2019
19 June 2018
September 2018 to March 2019
Outstanding
as at
1 April 2018
‘000
Awarded
from targets
exceeded
‘000
Granted
‘000
Vested
‘000
Cancelled
‘000
Outstanding
as at
31 March 2019
‘000
2,187
20
4,911
20
7,293
314
-
-
-
-
-
-
-
-
9,529
306
-
-
(2,166)
(20)
(21)
-
1,748
8
(3,401)
(14)
(206)
-
-
-
-
-
(201)
-
(474)
(80)
(17)
-
(692)
-
-
-
3,052
14
6,618
234
8,820
306
14,745
9,835
1,756
(5,819)
(1,473)
19,044
Note:
(1) “FY2016” denotes financial year ended 31 March 2016.
169
Notes to the Financial Statements
For the financial year ended 31 March 2019
5.3.1 Performance share plans (Cont’d)
Group and Company
2018
Date of grant
FY2015
23 June 2014
September 2014 to March 2015
FY2016
17 June 2015
September 2015 to March 2016
FY2017
20 June 2016
September 2016 to March 2017
FY2018
19 June 2017
September 2017 to March 2018
Outstanding
as at
1 April 2017
‘000
Awarded
from targets
exceeded
‘000
Granted
‘000
Vested
‘000
Cancelled
‘000
Outstanding
as at
31 March 2018
‘000
2,707
9
3,679
30
5,319
87
-
-
-
-
-
-
-
-
7,701
314
-
-
(2,690)
(9)
(17)
-
1,094
10
(2,406)
(20)
(180)
-
1
-
-
-
(67)
(67)
(15)
-
(342)
-
(393)
-
-
-
2,187
20
4,911
20
7,293
314
11,831
8,015
1,105
(5,274)
(932)
14,745
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 Component Stocks
20 June 2016
Date of grant
19 June 2017
19 June 2018
S$3.46
S$3.34
S$2.85
15.6%
36 months
historical
volatility
preceding
May 2016
14.3%
36 months
historical
volatility
preceding
May 2017
14.6%
36 months
historical
volatility
preceding
May 2018
Risk free interest rates
Yield of Singapore Government Securities on
1 June 2016
7 June 2017
7 June 2018
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U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
5.3.1 Performance share plans (Cont’d)
Cash-settled
2019
20 June 2016
Date of grant
19 June 2017
19 June 2018
Fair value at 31 March 2019
S$3.02
S$2.93
S$2.77
Assumptions under Monte-Carlo Model
Expected volatility
Singtel
MSCI Asia Pacific Telco Component Stocks
12.1%
12.1%
12.1%
36 months historical volatility
preceding March 2019
Risk free interest rates
Yield of Singapore Government Securities on
31 March 2019
31 March 2019
31 March 2019
Cash-settled
2018
17 June 2015
Date of grant
20 June 2016
19 June 2017
Fair value at 31 March 2018
S$3.37
S$3.28
S$3.10
Assumptions under Monte-Carlo Model
Expected volatility
Singtel
MSCI Asia Pacific Telco Index
MSCI Asia Pacific Telco Component Stocks
14.4%
10.2%
14.4%
NA
14.4%
NA
36 months historical volatility
preceding March 2018
Risk free interest rates
Yield of Singapore Government Securities on
31 March 2018
31 March 2018
31 March 2018
“NA” denotes Not Applicable.
171
Notes to the Financial Statements
For the financial year ended 31 March 2019
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
2019
Date of grant
FY2016
17 June 2015
September 2015 to March 2016
FY2017
20 June 2016
September 2016 to March 2017
FY2018
19 June 2017
September 2017 to March 2018
FY2019
19 June 2018
September 2018 to March 2019
Outstanding
as at
1 April 2018
‘000
Granted
‘000
Cancelled
‘000
Outstanding
as at
31 March 2019
‘000
8,529
157
8,651
91
4,729
156
-
-
-
-
-
-
-
-
4,171
36
(8,529)
(157)
(376)
-
(189)
(36)
(163)
-
-
-
8,275
91
4,540
120
4,008
36
22,313
4,207
(9,450)
17,070
Singapore Telecommunications Limited | Annual Report 2019
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R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
5.3.1 Performance share plans (Cont’d)
Group and Company
2018
Date of grant
FY2015
23 June 2014
September 2014 to March 2015
FY2016
17 June 2015
September 2015 to March 2016
FY2017
20 June 2016
September 2016 to March 2017
FY2018
19 June 2017
September 2017 to March 2018
Outstanding
as at
1 April 2017
‘000
Granted
‘000
Vested
‘000
Cancelled
‘000
Outstanding
as at
31 March 2018
‘000
7,947
21
8,976
157
9,068
91
-
-
-
-
-
-
-
-
4,804
156
(1,285)
(3)
(6,662)
(18)
-
-
-
-
-
-
(447)
-
(417)
-
(75)
-
-
-
8,529
157
8,651
91
4,729
156
26,260
4,960
(1,288)
(7,619)
22,313
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 Component Stocks
20 June 2016
Date of grant
19 June 2017
19 June 2018
S$1.81
S$1.28
S$1.77
15.6%
36 months
historical
volatility
preceding
May 2016
14.3%
36 months
historical
volatility
preceding
May 2017
14.6%
36 months
historical
volatility
preceding
May 2018
Risk free interest rates
Yield of Singapore Government Securities on
1 June 2016
7 June 2017
7 June 2018
173
Notes to the Financial Statements
For the financial year ended 31 March 2019
5.3.1 Performance share plans (Cont’d)
Cash-settled
2019
20 June 2016
Date of grant
19 June 2017
19 June 2018
Fair value at 31 March 2019
-
S$0.07
S$1.23
Assumptions under Monte-Carlo Model
Expected volatility
Singtel
MSCI Asia Pacific Telco Component Stocks
12.1%
12.1%
12.1%
36 months historical volatility
preceding March 2019
Risk free interest rates
Yield of Singapore Government Securities on
31 March 2019
31 March 2019
31 March 2019
Cash-settled
2018
17 June 2015
Date of grant
20 June 2016
19 June 2017
Fair value at 31 March 2018
-
S$0.91
S$0.80
Assumptions under Monte-Carlo Model
Expected volatility
Singtel
MSCI Asia Pacific Telco Index
MSCI Asia Pacific Telco Component Stocks
14.4%
10.2%
14.4%
NA
14.4%
NA
36 months historical volatility
preceding March 2018
Risk free interest rates
Yield of Singapore Government Securities on
31 March 2018
31 March 2018
31 March 2018
Special Share Award
The movements of the number of performance shares for the Special Share Award during the financial year
were as follows –
Group and Company
2019
Date of grant
FY2019
19 June 2018
Outstanding
as at
1 April 2018
‘000
Granted
‘000
Vested
‘000
Outstanding
as at
31 March 2019
‘000
-
-
1,457
(1,457)
1,457
(1,457)
-
-
Singapore Telecommunications Limited | Annual Report 2019
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R
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I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
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 and/or its subsidiaries 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 in either 3 years or 3.5 years from the vesting
commencement date.
The grant dates, exercise prices and fair values of the share options were as follows –
Equity-settled
Date of grant
For employees
13 April 2015
14 October 2015
20 January 2016, 10 May 2016, 24 August 2016, 25 January 2017
23 June 2016
19 July 2017, 18 August 2017, 12 September 2017, 25 January 2018
21 August 2018, 25 March 2019
For non-executive directors
14 October 2015
21 August 2018
Exercise price
US$
Fair value at
grant/ repriced date
US$
0.79
0.54 to 0.79
0.54
0.54
0.54
0.55 to 0.58
0.224 to 0.261
0.217 to 0.287
0.287
0.273 to 0.287
0.260 to 0.268
0.259 to 0.266
0.54
0.55
0.203
0.181
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 1 April 2018 to 31 March 2019,
(a)
(b)
options in respect of an aggregate of 62.6 million of ordinary shares in Amobee have been granted to the
employees and non-executive directors of Amobee and/or its subsidiaries.
10,879 ordinary shares of Amobee were issued pursuant to the exercise of options granted under the
Amobee LTI Plan.
As at 31 March 2019, options in respect of an aggregate of 112.6 million of ordinary shares in Amobee are
outstanding.
175
Notes to the Financial Statements
For the financial year ended 31 March 2019
5.3.3 Trustwave’s share options - equity-settled arrangement
In December 2015, Trustwave Holdings, Inc. (“Trustwave”), a wholly-owned subsidiary of the Company, implemented
the Stock Option Incentive Plan (“Trustwave ESOP”). Selected employees (including executive directors) and
non-executive directors of Trustwave and/or its subsidiaries 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 vesting commencement date.
The grant dates, exercise prices and fair values of the stock options were as follows –
Equity-settled
Date of grant
1 December 2015
22 January 2016
19 May 2016
12 September 2016
20 January 2017
15 March 2018
23 May 2018
12 July 2018
31 August 2018
Exercise price
US$
16.79
16.79
16.79
16.79
16.24
15.37
15.37
15.37
15.37
Fair value
at grant date
US$
6.57
6.28
6.16 to 6.27
6.03 to 6.10
5.93 to 6.57
6.71 to 6.92
6.80 to 7.05
6.97
6.17
The term of each option granted is 10 years from the date of grant.
The fair values for the stock options granted were estimated using the Black-Scholes pricing model.
From 1 April 2018 to 31 March 2019, options in respect of an aggregate of 0.6 million of common stock in Trustwave
have been granted. As at 31 March 2019, options in respect of an aggregate of 2.2 million of common stock in
Trustwave are outstanding.
Singapore Telecommunications Limited | Annual Report 2019
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I
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W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
5.3.4 HOOQ’s share options - equity-settled arrangement
In December 2015, HOOQ Digital Pte. Ltd. (“HOOQ”), a 65%-owned subsidiary of the Company, implemented the
HOOQ Digital Employee Share Option Scheme (the “Scheme”). Selected employees (including executive directors)
of HOOQ and/or its subsidiaries are granted options to purchase ordinary shares of HOOQ.
Options are exercisable at a price no less than 100% of the fair value of the ordinary shares of HOOQ on the date of
grant, and are scheduled to be fully vested 4 years from the vesting commencement date.
The grant dates, exercise prices and fair values of the share options were as follows –
Equity-settled
Date of grant
16 May 2016
24 April 2017
2 May 2017
31 July 2017
8 September 2017
23 October 2017
10 January 2018
1 April 2018
1 July 2018
19 October 2018
31 January 2019
Exercise price
US$
Fair value
at grant date
US$
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.0445 to 0.0463
0.0301 to 0.0315
0.0292 to 0.0313
0.0313 to 0.0315
0.0296 to 0.0298
0.0309 to 0.0320
0.0316 to 0.0318
0.0360 to 0.0366
0.0368 to 0.0373
0.0371 to 0.0374
0.0367 to 0.0369
The term of each option granted is 10 years from the date of grant.
The fair values for the share options granted were estimated using the Black-Scholes pricing model.
From 1 April 2018 to 31 March 2019, options in respect of an aggregate of 9.6 million of ordinary shares in
HOOQ have been granted. As at 31 March 2019, options in respect of an aggregate of 43.3 million of
ordinary shares in HOOQ are outstanding.
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 –
2019
S$ Mil
28.0
0.5
28.5
Group
Company
2018
S$ Mil
29.1
0.6
29.7
2019
S$ Mil
26.0
0.4
26.4
2018
S$ Mil
27.2
0.6
27.8
Cost of Singtel shares, net of vesting
Cash at bank
177
Notes to the Financial Statements
For the financial year ended 31 March 2019
5.4
Structured Entity (Cont’d)
The details of Singtel shares held by the Trust were as follows –
Number of shares
Amount
Group
Balance as at 1 April
Purchase of Singtel shares
Vesting of shares
2019
‘000
7,613
5,504
(4,886)
2018
‘000
7,404
4,255
(4,046)
Balance as at 31 March
8,231
7,613
2019
S$ Mil
29.1
17.5
(18.6)
28.0
2018
S$ Mil
29.0
15.9
(15.8)
29.1
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 2.22.
5.5 Other Operating Expense Items
Operating expenses included the following –
Auditors’ remuneration
- KPMG LLP, Singapore
- KPMG, Australia
- Other KPMG offices
- Deloitte & Touche LLP, Singapore
- Deloitte Touche Tohmatsu, Australia
- Other Deloitte & Touche offices
Non-audit fees (1) paid to
- KPMG LLP, Singapore
- KPMG, Australia
- Other KPMG offices
- Deloitte & Touche LLP, Singapore
- Deloitte Touche Tohmatsu, Australia
- Other Deloitte & Touche offices
Impairment of trade receivables
Allowance for inventory obsolescence
Operating lease payments
Group
2019
S$ Mil
2018
S$ Mil
2.4
1.2
1.3
-
-
-
0.4
0.4
0.1
-
-
-
-
-
-
1.5
1.2
2.1
-
-
-
0.3
0.3
0.2
121.8
1.1
437.2
128.0
7.1
470.7
Note:
(1) The non-audit fees for the current financial year ended 31 March 2019 included S$0.4 million and S$0.2million paid to KPMG LLP, Singapore and
KPMG, Australia in respect of tax services, certification and review for regulatory purposes. In the previous financial year, the non-audit fees included
S$0.2 million and S$0.3 million paid to Deloitte & Touche LLP, Singapore, and Deloitte Touche Tohmatsu, Australia, respectively in respect of tax services,
certification and review for regulatory purposes.
The Audit Committee had undertaken a review of the non-audit services provided by the auditors, KPMG LLP, and
in the opinion of the Audit Committee, these services did not affect the independence of the auditors.
Singapore Telecommunications Limited | Annual Report 2019
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I
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W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
6.
OTHER INCOME
Other income included the following items –
Rental income
Net gains on disposal of property, plant and equipment
Net foreign exchange gains/ (losses)
7.
DEPRECIATION AND AMORTISATION
Depreciation of property, plant and equipment
Amortisation of intangible assets
Amortisation of deferred gain on sale of a joint venture
8.
EXCEPTIONAL ITEMS
Exceptional gains
Gain on disposal of property
Gain on sale and leaseback
Gain on disposal of a subsidiary
Gain on disposal of joint ventures
Gain on disposal of an associate
Disputes settlement
Exceptional losses
Staff restructuring costs
Provision for contingent claims and other charges
Impairment of non-current assets
Impairment of an associate
179
Group
2019
S$ Mil
3.3
5.3
3.4
2018
S$ Mil
3.3
4.3
(9.1)
Group
2019
S$ Mil
1,896.1
326.1
-
2018
S$ Mil
1,951.0
300.5
(1.5)
2,222.2
2,250.0
2019
S$ Mil
105.5
42.4
19.2
0.3
-
-
167.4
(88.4)
(10.8)
-
-
(99.2)
Group
2018
S$ Mil
-
-
-
6.5
2,030.9
54.8
2,092.2
(57.7)
(57.1)
(77.3)
(5.0)
(197.1)
68.2
1,895.1
Notes to the Financial Statements
For the financial year ended 31 March 2019
9.
SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
Share of ordinary results
- joint ventures
- associates
Group
2019
S$ Mil
2018
S$ Mil
1,338.2
197.7
1,535.9
2,213.3
240.3
2,453.6
Share of net exceptional gains/ (losses) of associates and joint ventures (post-tax)
301.1
(9.5)
Share of tax of ordinary results
- joint ventures
- associates
10.
INTEREST AND INVESTMENT INCOME (NET)
Interest income from
- bank deposits
- others
Dividends from joint ventures
Gross dividends from FVOCI investments
Other foreign exchange gains/ (losses)
Other fair value gains
Fair value (losses)/ gains on fair value hedges
- hedged items
- hedging instruments
Fair value (losses)/ gains on cash flow hedges
- hedged items
- hedging instruments
(241.7)
(32.6)
(274.3)
(602.0)
(38.1)
(640.1)
1,562.7
1,804.0
Group
2019
S$ Mil
7.6
0.7
8.3
13.0
0.5
21.8
5.9
10.3
(35.0)
35.1
0.1
(122.4)
122.4
-
38.1
2018
S$ Mil
7.6
9.0
16.6
30.3
2.3
49.2
(11.1)
6.9
65.4
(64.9)
0.5
35.0
(35.0)
-
45.5
Singapore Telecommunications Limited | Annual Report 2019
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I
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W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
11.
FINANCE COSTS
Interest expense on
- bonds
- bank loans
- finance leases
Financing related costs
Effects of hedging using interest rate swaps
12.
TAXATION
12.1
Tax Expense
Current income tax
- Singapore
- Overseas
Deferred tax expense/ (credit)
2019
S$ Mil
308.4
56.5
8.2
373.1
17.0
2.7
Group
2018
S$ Mil
302.8
49.7
10.3
362.8
20.6
6.8
392.8
390.2
2019
S$ Mil
223.5
223.7
447.2
36.2
Group
2018
S$ Mil
237.6
318.4
556.0
(49.7)
Tax expense attributable to current year’s profit
483.4
506.3
Adjustments in respect of prior years –
Current income tax
Deferred income tax
Withholding and dividend distribution taxes on dividend
income from associates and joint ventures
5.0
12.4
174.0
674.8
(17.9)
36.5
178.1
703.0
181
Notes to the Financial Statements
For the financial year ended 31 March 2019
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 (2018: 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
Change in tax rate of other country
Others
2019
S$ Mil
3,745.9
(1,562.7)
2,183.2
Group
2018
S$ Mil
6,154.9
(1,804.0)
4,350.9
371.1
739.7
36.3
(29.5)
29.4
79.1
-
(3.0)
79.4
(342.7)
33.7
39.6
(27.5)
(15.9)
Tax expense attributable to current year’s profit
483.4
506.3
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 –
TWDV (1) in
excess of
NBV (2) of
depreciable
assets
S$ Mil
Tax losses
and unutilised
capital
allowances
S$ Mil
Group - 2019
Deferred tax assets
Provisions
S$ Mil
Balance as at 1 April 2018, previously reported
Effects of adoption of SFRS(I) 1, 9 and 15
Balance as at 1 April 2018, restated
Credited/ (Charged) to income statement
Charged to other comprehensive income
Transfer to current tax
Translation differences
Balance as at 31 March 2019
43.1
-
43.1
2.3
-
(5.3)
(2.7)
37.4
79.2
-
79.2
(25.6)
-
-
(2.9)
50.7
Others
S$ Mil
237.2
(2.7)
234.5
(9.6)
(5.9)
-
(5.7)
Total
S$ Mil
382.3
(7.1)
375.2
(51.9)
(5.9)
(5.3)
(10.7)
22.8
(4.4)
18.4
(19.0)
-
-
0.6
-
213.3
301.4
Singapore Telecommunications Limited | Annual Report 2019
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S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
12.2 Deferred Taxes (Cont’d)
Group - 2019
Deferred tax liabilities
Balance as at 1 April 2018, previously reported
Effects of adoption of SFRS(I) 1 and 15
Balance as at 1 April 2018, restated
(Charged)/ Credited to income statement
Transfer to current tax
Disposal of subsidiary
Translation differences
Accelerated
tax
depreciation
S$ Mil
Offshore
interest and
dividend
not
remitted
S$ Mil
(470.9)
59.0
(411.9)
(47.2)
-
(0.1)
(0.7)
(5.2)
-
(5.2)
(0.1)
-
-
-
Others
S$ Mil
(66.5)
(74.2)
(140.7)
47.6
19.7
-
(1.3)
Total
S$ Mil
(542.6)
(15.2)
(557.8)
0.3
19.7
(0.1)
(2.0)
Balance as at 31 March 2019
(459.9)
(5.3)
(74.7)
(539.9)
Group - 2018
Deferred tax assets
Provisions
S$ Mil
Balance as at 1 April 2017, previously reported
Effects of adoption of SFRS(I) 1, 9 and 15
Balance as at 1 April 2017, restated
Credited/ (Charged) to income statement
Charged to other comprehensive income
Transfer from current tax
Translation differences
Balance as at 31 March 2018
40.3
-
40.3
5.2
-
1.0
(3.4)
43.1
TWDV (1) in
excess of
NBV (2) of
depreciable
assets
S$ Mil
Tax losses
and
unutilised
capital
allowances
S$ Mil
137.8
-
137.8
(53.1)
-
-
(5.5)
21.7
(2.1)
19.6
-
-
-
(1.2)
Others
S$ Mil
469.6
(20.8)
448.8
(198.5)
(8.4)
-
(7.4)
Total
S$ Mil
669.4
(22.9)
646.5
(246.4)
(8.4)
1.0
(17.5)
79.2
18.4
234.5
375.2
183
Notes to the Financial Statements
For the financial year ended 31 March 2019
12.2 Deferred Taxes (Cont’d)
Group - 2018
Deferred tax liabilities
Balance as at 1 April 2017, previously reported
Effects of adoption of SFRS(I) 1 and 15
Balance as at 1 April 2017, restated
Acquisition of a subsidiary
(Charged)/ Credited to income statement
Transfer to current tax
Translation differences
Accelerated
tax
depreciation
S$ Mil
Offshore
interest and
dividend
not
remitted
S$ Mil
(457.8)
74.3
(383.5)
-
(29.2)
0.5
0.3
(5.1)
-
(5.1)
-
(0.1)
-
-
Others
S$ Mil
(123.3)
(72.5)
(195.8)
(21.4)
71.7
1.3
3.5
Total
S$ Mil
(586.2)
1.8
(584.4)
(21.4)
42.4
1.8
3.8
Balance as at 31 March 2018
(411.9)
(5.2)
(140.7)
(557.8)
Company - 2019
Deferred tax assets
Balance as at 1 April 2018
Effects of adoption of SFRS(I) 15
Balance as at 1 April 2018, restated
(Charged)/ Credited to income statement
Balance as at 31 March 2019
Company - 2019
Deferred tax liabilities
Balance as at 1 April 2018
Effects of adoption of SFRS(I) 1
Balance as at 1 April 2018, restated
Charged to income statement
Provisions
S$ Mil
0.5
-
0.5
(0.1)
0.4
Others
S$ Mil
11.0
(0.2)
10.8
1.1
11.9
Accelerated tax
depreciation
S$ Mil
(287.1)
7.6
(279.5)
(7.3)
Total
S$ Mil
11.5
(0.2)
11.3
1.0
12.3
Total
S$ Mil
(287.1)
7.6
(279.5)
(7.3)
Balance as at 31 March 2019
(286.8)
(286.8)
Singapore Telecommunications Limited | Annual Report 2019
184
O
V
E
R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
12.2 Deferred Taxes (Cont’d)
Company - 2018
Deferred tax assets
Balance as at 1 April 2017
Effects of adoption of SFRS(I) 15
Balance as at 1 April 2017, restated
Credited to income statement
Balance as at 31 March 2018
Company - 2018
Deferred tax liabilities
Balance as at 1 April 2017
Effects of adoption of SFRS(I) 1
Balance as at 1 April 2017, restated
Charged to income statement
Provisions
S$ Mil
0.3
-
0.3
0.2
0.5
Others
S$ Mil
2.8
(1.0)
1.8
9.0
Total
S$ Mil
3.1
(1.0)
2.1
9.2
10.8
11.3
Accelerated tax
depreciation
S$ Mil
(285.3)
10.2
(275.1)
(4.4)
Total
S$ Mil
(285.3)
10.2
(275.1)
(4.4)
Balance as at 31 March 2018
(279.5)
(279.5)
Notes:
(1) TWDV – Tax written down value
(2) NBV – Net book value
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.
The amounts, determined after appropriate offsetting, are shown in the statements of financial position as follows –
Deferred tax assets
Deferred tax liabilities
31 March
2019
S$ Mil
276.6
(515.1)
Group
31 March
2018
S$ Mil
353.0
(535.6)
1 April
2017
S$ Mil
634.9
(572.8)
31 March
2019
S$ Mil
-
(274.5)
Company
31 March
2018
S$ Mil
-
(268.2)
1 April
2017
S$ Mil
-
(273.0)
(238.5)
(182.6)
62.1
(274.5)
(268.2)
(273.0)
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 2019, the subsidiaries of the Group had estimated unutilised income tax losses of approximately
S$1.65 billion (31 March 2018: $1.35 billion), of which S$25 million (31 March 2018: S$16 million) will expire in the next
five years and S$960 million (31 March 2018: S$700 million) will expire from 2024 to 2037.
185
Notes to the Financial Statements
For the financial year ended 31 March 2019
12.2 Deferred Taxes (Cont’d)
As at 31 March 2019, the subsidiaries of the Group also had estimated unutilised investment allowances of
S$46 million (31 March 2018: S$48 million), unutilised capital tax losses of S$69 million (31 March 2018: S$91 million)
and unabsorbed capital allowances of approximately S$19 million (31 March 2018: S$10 million).
These unutilised income tax losses and investment allowances, and unabsorbed capital allowances are available
for set-off against future taxable profits, subject to the agreement of the relevant tax authorities and compliance
with certain provisions of the income tax regulations of the respective countries in which the subsidiaries operate.
The unutilised capital tax losses are available for set-off against future capital gains of a similar nature subject to
compliance with certain statutory tests in Australia.
As at the end of the reporting period, the potential tax benefits arising from the following items were not
recognised in the financial statements due to uncertainty on their recoverability –
Unutilised income tax losses and investment allowances,
and unabsorbed capital allowances
Unutilised capital tax losses
13.
EARNINGS PER SHARE
Weighted average number of ordinary shares in issue for calculation
of basic earnings per share (1)
Adjustment for dilutive effects of performance share plans
Weighted average number of ordinary shares for calculation
of diluted earnings per share
Note:
(1) Adjusted to exclude the number of performance shares held by the Trust and the Company.
Group
2019
S$ Mil
2018
S$ Mil
1,711.8
1,405.1
69.3
90.9
Group
2019
‘000
2018
‘000
16,322,339
19,963
16,322,581
21,748
16,342,302
16,344,329
‘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 includes 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.
Singapore Telecommunications Limited | Annual Report 2019
186
O
V
E
R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
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 –
Group
2019
S$ Mil
2018
S$ Mil
Income
Subsidiaries of ultimate holding company
Telecommunications
Rental and maintenance
Associates
Telecommunications
Interest on loan
Joint ventures
Telecommunications
Expenses
Subsidiaries of ultimate holding company
Telecommunications
Utilities
Associates
Telecommunications
Postal
Rental
Joint ventures
Telecommunications
Transmission capacity
Others
Associates
Sale and leaseback gain from associate
Proceeds from sale of property, plant and equipment
Joint ventures
Acquisition of shares in a joint venture
Proceeds from disposal of a joint venture
Proceeds from disposal of FVOCI investments
Due from subsidiaries of ultimate holding company
Due to subsidiaries of ultimate holding company
100.3
28.8
8.8
-
48.3
35.2
80.9
149.3
7.8
6.5
32.8
7.5
42.4
2.4
-
-
-
37.1
11.0
93.7
29.0
19.8
8.2
45.8
34.6
68.7
144.0
7.9
6.3
32.0
4.6
-
137.8
539.4
15.0
27.0
28.0
1.6
All the above transactions were on normal commercial terms and conditions and at market rates.
Please refer to Note 5.2 for information on key management personnel compensation.
187
Notes to the Financial Statements
For the financial year ended 31 March 2019
15.
CASH AND CASH EQUIVALENTS
Fixed deposits
Cash and bank balances
31 March
2019
S$ Mil
153.5
359.2
Group
31 March
2018
S$ Mil
122.7
402.2
1 April
2017
S$ Mil
164.1
369.7
512.7
524.9
533.8
31 March
2019
S$ Mil
42.4
39.2
81.6
Company
31 March
2018
S$ Mil
28.0
64.0
92.0
1 April
2017
S$ Mil
27.6
61.6
89.2
The carrying amounts of the cash and cash equivalents approximate their fair values.
Cash and cash equivalents denominated in currencies other than the respective functional currencies of the
Group’s entities were as follows –
USD
HKD
AUD
31 March
2019
S$ Mil
106.5
22.3
17.9
Group
31 March
2018
S$ Mil
87.5
15.6
14.8
The maturities of the fixed deposits were as follows –
Less than three months
Over three months
31 March
2019
S$ Mil
142.9
10.6
Group
31 March
2018
S$ Mil
105.7
17.0
1 April
2017
S$ Mil
140.7
8.0
16.9
1 April
2017
S$ Mil
147.8
16.3
153.5
122.7
164.1
31 March
2019
S$ Mil
48.6
0.1
6.0
31 March
2019
S$ Mil
42.4
-
42.4
Company
31 March
2018
S$ Mil
30.3
0.3
0.3
Company
31 March
2018
S$ Mil
28.0
-
28.0
1 April
2017
S$ Mil
34.6
0.3
8.1
1 April
2017
S$ Mil
27.6
-
27.6
As at 31 March 2019, the weighted average effective interest rate of the fixed deposits of the Group and the
Company were 2.1 per cent (31 March 2018: 1.6 per cent) per annum and 2.2 per cent (31 March 2018: 1.7 per cent)
per annum respectively.
The exposure of cash and cash equivalents to interest rate risks is disclosed in Note 36.3.
Singapore Telecommunications Limited | Annual Report 2019
188
O
V
E
R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
16.
TRADE AND OTHER RECEIVABLES
Current
Trade receivables
Contract assets
Less: Allowance for ECL
31 March
2019
S$ Mil
2,341.3
2,591.0
4,932.3
(259.7)
4,672.6
Group
31 March
2018
S$ Mil
2,247.6
2,601.3
4,848.9
(263.8)
4,585.1
1 April
2017
S$ Mil
31 March
2019
S$ Mil
2,084.7
2,603.7
4,688.4
(248.9)
4,439.5
422.2
22.0
444.2
(94.3)
349.9
Company
31 March
2018
S$ Mil
452.7
34.9
487.6
(96.4)
391.2
1 April
2017
S$ Mil
459.3
33.0
492.3
(90.7)
401.6
Other receivables
421.9
430.0
525.0
22.8
20.6
18.9
Loans to subsidiaries
Less: Allowance for ECL
Amount due from subsidiaries
- trade
- non-trade
Less: Allowance for ECL
Amount due from associates
and joint ventures
- trade
- non-trade
Prepayments
Interest receivable
Others
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
122.4
(9.3)
113.1
120.6
(9.3)
111.3
127.6
(12.7)
114.9
828.8
585.6
(45.4)
1,369.0
722.3
1,029.0
(45.4)
1,705.9
717.0
363.3
(45.4)
1,034.9
30.3
98.9
129.2
685.0
70.3
13.7
16.6
140.9
157.5
552.3
73.4
15.4
13.6
155.2
168.8
540.3
74.9
13.9
1.3
2.0
3.3
73.5
29.3
-
1.9
4.0
5.9
57.6
31.4
-
4.4
4.0
8.4
60.2
34.4
-
5,992.7
5,813.7
5,762.4
1,960.9
2,323.9
1,673.3
“ECL” denotes expected credit loss.
Trade receivables are non-interest bearing and are generally on 14-day or 30-day terms, while balances due from
carriers are on 60-day terms. There was no significant change in contract assets during the year.
As at 31 March 2019, the effective interest rate of an amount due from a subsidiary of S$331.0 million (31 March 2018:
S$824.5 million) was 0.33 per cent (31 March 2018: 0.12 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.
An amount of S$6.8 million (31 March 2018: S$18.8 million) under other receivables of the Group is guaranteed by
a third party and repayable by 31 March 2020.
189
Notes to the Financial Statements
For the financial year ended 31 March 2019
16.
TRADE AND OTHER RECEIVABLES (Cont’d)
The age analysis of trade receivables and contract assets (before allowance for expected credit loss) was as
follows –
Less than 60 days
61 to 120 days
More than 120 days
31 March
2019
S$ Mil
4,344.5
222.2
365.6
Group
31 March
2018
S$ Mil
4,324.2
198.7
326.0
1 April
2017
S$ Mil
4,263.6
114.4
310.4
31 March
2019
S$ Mil
297.1
61.2
85.9
Company
31 March
2018
S$ Mil
327.4
45.1
115.1
1 April
2017
S$ Mil
332.9
32.4
127.0
4,932.3
4,848.9
4,688.4
444.2
487.6
492.3
The movements in the allowance for expected credit losses of trade receivables and contract assets were as
follows –
Balance as at 1 April
Acquisition of a subsidiary
Allowance
Utilisation of allowance
Write-back of allowance
Translation differences
Group
Company
2019
S$ Mil
263.8
0.9
146.4
(120.3)
(24.6)
(6.5)
2018
S$ Mil
248.9
2.2
141.2
(103.9)
(13.2)
(11.4)
2019
S$ Mil
96.4
-
30.5
(26.6)
(6.0)
-
2018
S$ Mil
90.7
-
35.3
(29.3)
(0.3)
-
Balance as at 31 March
259.7
263.8
94.3
96.4
The maximum exposure to credit risk for trade receivables and contract assets were as follows –
Individuals
Corporations and others
31 March
2019
S$ Mil
2,269.4
2,403.2
Group
31 March
2018
S$ Mil
2,366.8
2,218.3
1 April
2017
S$ Mil
2,409.4
2,030.1
31 March
2019
S$ Mil
131.8
218.1
Company
31 March
2018
S$ Mil
141.8
249.4
1 April
2017
S$ Mil
145.9
255.7
4,672.6
4,585.1
4,439.5
349.9
391.2
401.6
The expected credit losses for debts which are collectively assessed are estimated based on a provision matrix by
reference to historical credit loss experience of the different segments, adjusted as appropriate to reflect current
conditions and estimates of future economic conditions as applicable. The expected credit losses for debts which
are individually assessed are based on an analysis of the debtor’s current financial position and are adjusted for
factors that are specific to the debtors.
Singapore Telecommunications Limited | Annual Report 2019
190
O
V
E
R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
17.
INVENTORIES
Equipment held for resale
Maintenance and capital
works’ inventories
31 March
2019
S$ Mil
379.1
38.5
Group
31 March
2018
S$ Mil
374.1
23.3
1 April
2017
S$ Mil
320.1
32.1
417.6
397.4
352.2
31 March
2019
S$ Mil
0.1
37.1
37.2
Company
31 March
2018
S$ Mil
0.1
21.7
21.8
18.
DERIVATIVE FINANCIAL INSTRUMENTS
Balance as at 1 April, previously reported
Effects of adoption of SFRS(I) 9
Balance as at 1 April, restated
Fair value gains/ (losses)
- included in income statement
- included in ‘Hedging Reserve’
Settlement of swaps for bonds repaid
Translation differences
Group
Company
2019
S$ Mil
60.6
4.0
64.6
163.5
59.6
6.2
(13.9)
2018
S$ Mil
243.6
1.7
245.3
(97.5)
(10.3)
(61.4)
(11.5)
2019
S$ Mil
(159.7)
24.6
(135.1)
50.1
19.3
-
-
1 April
2017
S$ Mil
0.2
23.6
23.8
2018
S$ Mil
(88.0)
24.6
(63.4)
(63.5)
(8.2)
-
-
Balance as at 31 March
280.0
64.6
(65.7)
(135.1)
Disclosed as –
Current asset
Non-current asset
Current liability
Non-current liability
31 March
2019
S$ Mil
155.1
283.6
(9.2)
(149.5)
Group
31 March
2018
S$ Mil
22.6
388.3
(69.3)
(277.0)
1 April
2017
S$ Mil
31 March
2019
S$ Mil
106.1
434.4
(15.8)
(279.4)
0.7
125.9
(0.5)
(191.8)
Company
31 March
2018
S$ Mil
70.1
130.6
(84.9)
(250.9)
1 April
2017
S$ Mil
105.9
283.5
(108.8)
(344.0)
280.0
64.6
245.3
(65.7)
(135.1)
(63.4)
191
Notes to the Financial Statements
For the financial year ended 31 March 2019
18.1
Fair Values
The fair values of the currency and interest rate swap contracts exclude accrued interest of S$16.3 million
(31 March 2018: S$16.8 million). The accrued interest is separately disclosed in Note 16 and Note 27.
The fair values of the derivative financial instruments were as follows –
2019
Fair value and cash flow hedges
Cross currency swaps
Interest rate swaps
Forward foreign exchange contracts
Derivatives that do not qualify for hedge accounting
Cross currency swaps
Interest rate swaps
Forward foreign exchange contracts
Disclosed as –
Current
Non-current
Group
Fair values
Company
Fair values
Assets
S$ Mil
Liabilities
S$ Mil
Assets
S$ Mil
Liabilities
S$ Mil
414.6
11.1
12.9
-
-
0.1
95.5
59.8
1.5
-
1.9
-
1.0
-
3.3
104.7
17.5
0.1
60.2
8.9
1.0
104.7
17.5
-
438.7
158.7
126.6
192.3
155.1
283.6
9.2
149.5
0.7
125.9
0.5
191.8
438.7
158.7
126.6
192.3
Singapore Telecommunications Limited | Annual Report 2019
192
O
V
E
R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
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A
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A
T
I
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N
Notes to the Financial Statements
For the financial year ended 31 March 2019
18.1
Fair Values (Cont’d)
2018
Fair value and cash flow hedges
Cross currency swaps
Interest rate swaps
Forward foreign exchange contracts
Group
Fair values
Company
Fair values
Assets
S$ Mil
Liabilities
S$ Mil
Assets
S$ Mil
Liabilities
S$ Mil
397.3
13.5
0.1
228.4
88.3
25.2
-
-
-
111.1
7.2
16.8
182.5
18.2
Derivatives that do not qualify for hedge accounting
Cross currency swaps
Interest rate swaps
-
-
-
4.4
182.5
18.2
Disclosed as –
Current
Non-current
2017
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
410.9
346.3
200.7
335.8
22.6
388.3
69.3
277.0
70.1
130.6
84.9
250.9
410.9
346.3
200.7
335.8
Group
Fair values
Company
Fair values
Assets
S$ Mil
Liabilities
S$ Mil
Assets
S$ Mil
Liabilities
S$ Mil
509.1
29.1
2.1
-
-
0.2
129.0
131.5
27.1
-
7.6
-
2.5
-
2.1
346.5
38.3
-
50.3
7.5
10.2
346.5
38.3
-
540.5
295.2
389.4
452.8
106.1
434.4
15.8
279.4
105.9
283.5
108.8
344.0
540.5
295.2
389.4
452.8
193
Notes to the Financial Statements
For the financial year ended 31 March 2019
18.1
Fair Values (Cont’d)
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 2020, 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 28.
As at 31 March 2019, the details of the outstanding derivative financial instruments were as follows –
31 March
2019
Group
31 March
2018
1 April
2017
31 March
2019
Company
31 March
2018
1 April
2017
Interest rate swaps
Notional principal
(S$ million equivalent)
Fixed interest rates
Floating interest rates
Cross currency swaps
Notional principal
(S$ million equivalent)
Fixed interest rates
Floating interest rates
Forward foreign exchange
Notional principal
(S$ million equivalent)
2,557.4
4,639.6
2.0% - 6.2% 2.0% - 6.2% 1.2% - 6.2% 2.0% - 4.5% 2.0% - 4.5% 1.2% - 4.5%
1.8% - 3.6% 2.0% - 3.2% 1.8% - 2.3% 1.8% - 3.6% 1.1% - 3.2% 1.1% - 2.3%
3,680.9
2,702.5
2,838.4
2,663.4
4,600.2
7,543.6
2.6% - 7.5% 1.9% - 7.5% 1.9% - 7.5% 2.4% - 5.2% 0.9% - 5.2% 0.9% - 5.2%
2.3% - 4.0% 1.5% - 3.5% 1.5% - 3.3% 2.3% - 4.0% 1.5% - 3.3% 1.5% - 3.2%
6,073.3
5,256.8
4,794.9
5,014.4
705.7
846.5
1,358.2
306.3
304.1
713.3
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.
Singapore Telecommunications Limited | Annual Report 2019
194
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Notes to the Financial Statements
For the financial year ended 31 March 2019
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Notes to the Financial Statements
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Singapore Telecommunications Limited | Annual Report 2019
196
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Singapore Telecommunications Limited | Annual Report 2019
198
Notes to the Financial Statements
For the financial year ended 31 March 2019
19.
PROPERTY, PLANT AND EQUIPMENT (Cont’d)
Property, plant and equipment included the following –
31 March
2019
S$ Mil
Group
31 March
2018
S$ Mil
1 April
2017
S$ Mil
31 March
2019
S$ Mil
Company
31 March
2018
S$ Mil
1 April
2017
S$ Mil
14.4
188.3
37.0
204.6
78.6
235.4
6.9
25.9
10.8
31.2
29.2
35.6
Net book value of property,
plant and equipment
Assets acquired under
finance leases
Staff costs capitalised
20.
INTANGIBLE ASSETS
31 March
2019
S$ Mil
11,538.3
2,116.2
183.9
178.3
Group
31 March
2018
S$ Mil
11,372.2
2,355.5
204.6
36.8
1 April
2017
S$ Mil
11,164.6
1,565.5
302.5
40.2
14,016.7
13,969.1
13,072.8
Group
2019
S$ Mil
2018
S$ Mil
11,372.2
109.9
56.2
11,164.6
347.5
(139.9)
11,538.3
11,372.2
Goodwill on acquisition of subsidiaries
Telecommunications and spectrum licences
Technology and brand
Customer relationships and others
20.1 Goodwill on Acquisition of Subsidiaries
Balance as at 1 April
Acquisition of subsidiaries
Translation differences
Balance as at 31 March
199
Notes to the Financial Statements
For the financial year ended 31 March 2019
20.2 Telecommunications and Spectrum Licences
Balance as at 1 April
Additions
Amortisation for the year
Reclassification
Translation differences
Group
2019
S$ Mil
2,355.5
130.2
(210.0)
(71.8)
(87.7)
2018
S$ Mil
1,565.5
1,118.3
(221.6)
-
(106.7)
Balance as at 31 March
2,116.2
2,355.5
Cost
Accumulated amortisation
Accumulated impairment
3,622.9
(1,500.5)
(6.2)
3,817.1
(1,455.4)
(6.2)
Net book value as at 31 March
2,116.2
2,355.5
20.3 Technology and Brand
Balance as at 1 April
Acquisition of a subsidiary
Amortisation for the year
Impairment charge for the year
Translation differences
Balance as at 31 March
Cost
Accumulated amortisation
Accumulated impairment
Net book value as at 31 March
Company
2019
S$ Mil
2018
S$ Mil
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8.4
(8.4)
-
-
Group
2019
S$ Mil
204.6
18.8
(46.5)
-
7.0
2018
S$ Mil
302.5
53.3
(58.5)
(75.8)
(16.9)
183.9
204.6
611.7
(334.8)
(93.0)
586.3
(288.6)
(93.1)
183.9
204.6
O
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W
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D
I
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I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Singapore Telecommunications Limited | Annual Report 2019
200
Notes to the Financial Statements
For the financial year ended 31 March 2019
20.4 Customer Relationships and Others
Balance as at 1 April
Additions
Amortisation for the year
Disposals
Reclassification/ adjustment
Translation differences
Balance as at 31 March
Cost
Accumulated amortisation
Net book value as at 31 March
21.
SUBSIDIARIES
Unquoted equity shares, at cost
Shareholders’ advances
Deemed investment in a subsidiary
Less: Allowance for impairment losses
Group
2019
S$ Mil
36.8
86.6
(69.6)
(0.1)
125.3
(0.7)
2018
S$ Mil
40.2
17.9
(20.4)
-
-
(0.9)
178.3
36.8
437.1
(258.8)
135.8
(99.0)
178.3
36.8
31 March
2019
S$ Mil
14,259.7
5,733.0
32.5
20,025.2
(16.0)
Company
31 March
2018
S$ Mil
13,676.4
5,733.0
32.5
19,441.9
(16.0)
1 April
2017
S$ Mil
11,001.2
6,423.3
32.5
17,457.0
(16.0)
20,009.2
19,425.9
17,441.0
The advances given to subsidiaries were interest-free and 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 44.1 to Note 44.3.
201
Notes to the Financial Statements
For the financial year ended 31 March 2019
22.
JOINT VENTURES
Quoted equity shares, at cost
Unquoted equity shares, at cost
31 March
2019
S$ Mil
2,798.4
5,777.9
8,576.3
Group
31 March
2018
S$ Mil
2,798.4
5,778.7
8,577.1
1 April
2017
S$ Mil
31 March
2019
S$ Mil
2,798.4
5,240.8
8,039.2
-
22.8
22.8
Company
31 March
2018
S$ Mil
-
22.8
22.8
1 April
2017
S$ Mil
-
23.0
23.0
Goodwill on consolidation adjusted
against shareholders’ equity
Share of post-acquisition reserves
(net of dividends, and accumulated
amortisation of goodwill)
Translation differences
(1,225.9)
(1,225.9)
(1,225.9)
9,635.7
(4,098.2)
4,311.6
9,414.8
(3,949.5)
4,239.4
8,717.6
(3,215.6)
4,276.1
Less: Allowance for impairment losses
(30.0)
(30.0)
(30.0)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,857.9
12,786.5
12,285.3
22.8
22.8
23.0
As at 31 March 2019,
(i)
(ii)
The market value of the quoted equity shares in joint ventures held by the Group was S$18.89 billion
(31 March 2018: S$21.29 billion).
The Group’s proportionate interest in the capital commitments of joint ventures was S$1.97 billion
(31 March 2018: S$2.14 billion).
The details of joint ventures are set out in Note 44.5.
Optus has an interest in an unincorporated joint operation to share certain 4G network sites and radio infrastructure
across Australia whereby it holds an interest of 50% (31 March 2018: 50%) in the assets, with access to the shared
network and shares 50% (31 March 2018: 50%) of the cost of building and operating the network.
The Group’s property, plant and equipment included the Group’s interest in the property, plant and equipment
employed in the unincorporated joint operation was S$1.10 billion (31 March 2018: S$1.08 billion).
Singapore Telecommunications Limited | Annual Report 2019
202
O
V
E
R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
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W
S
G
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R
N
A
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C
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A
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S
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S
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A
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B
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P
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F
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M
A
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C
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F
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D
I
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N
A
L
I
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F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
22.
JOINT VENTURES (Cont’d)
The summarised financial information of the Group’s significant joint ventures namely Bharti Airtel Limited
(“Airtel”), PT Telekomunikasi Selular (“Telkomsel”), Globe Telecom, Inc. (“Globe”) and Advanced Info Service Public
Company Limited (“AIS”), based on their financial statements and a reconciliation with the carrying amounts of the
investments in the consolidated financial statements were as follows –
Airtel
S$ Mil
Telkomsel
S$ Mil
Globe
S$ Mil
AIS
S$ Mil
Group - 2019
Statement of comprehensive income
Revenue
Depreciation and amortisation
Interest income
Interest expense
Income tax credit/ (expense)
Profit after tax
Other comprehensive (loss)/ income
15,671.4
(4,141.4)
276.3
(2,123.0)
663.3
183.5
(202.3)
8,461.0
(1,265.9)
50.1
(99.3)
(816.1)
2,407.6
36.0
Total comprehensive (loss)/ income
(18.8)
2,443.6
Statement of financial position
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Less: Non-controlling interests
6,448.6
47,339.4
(18,236.1)
(19,113.3)
16,438.6
(2,558.1)
2,614.3
5,893.0
(2,138.8)
(913.0)
5,455.5
*
3,980.2
(793.7)
13.6
(166.6)
(249.4)
532.5
5.3
537.8
1,724.0
5,838.9
(1,981.4)
(3,606.5)
1,975.0
0.6
7,146.6
(1,455.6)
6.8
(141.0)
(243.5)
1,228.3
-
1,228.3
1,965.8
10,700.0
(3,388.7)
(6,853.1)
2,424.0
(5.4)
Net assets attributable to equity holders
13,880.5
5,455.5
1,975.6
2,418.6
Proportion of the Group’s ownership
Group’s share of net assets
Goodwill capitalised
Others (2)
39.5%
5,484.2
1,508.4
427.8
35.0%
1,909.4
1,403.6
-
47.1%
930.1
375.1
(129.5)
23.3% (1)
564.0
308.1
(8.1)
Carrying amount of the investment
7,420.4
3,313.0
1,175.7
864.0
Other items
Cash and cash equivalents
Non-current financial liabilities excluding trade
and other payables
Current financial liabilities excluding trade
and other payables
1,588.5
1,267.3
427.0
960.5
(18,359.7)
(560.9)
(3,352.2)
(482.1)
(7,732.5)
(78.8)
(224.8)
(3,929.1)
Group’s share of market value
10,309.9
NA
3,130.5
5,447.4
Dividends received during the year
58.7
954.4
144.1
211.2
‘‘NA’’ denotes Not Applicable.
“*” denotes amount of less than S$0.05 million
Notes:
(1) Based on the Group’s direct equity interest in AIS.
(2) Others include adjustments to align the respective local accounting standards to SFRS(I).
203
Notes to the Financial Statements
For the financial year ended 31 March 2019
22.
JOINT VENTURES (Cont’d)
Group - 2018
Statement of comprehensive income
Revenue
Depreciation and amortisation
Interest income
Interest expense
Income tax expense
Profit after tax
Other comprehensive (loss)/ income
Airtel
S$ Mil
Telkomsel
S$ Mil
Globe
S$ Mil
AIS
S$ Mil
17,574.5
(4,041.1)
283.5
(1,958.4)
(227.5)
191.4
(234.8)
9,384.0
(1,399.4)
81.5
(55.8)
(974.5)
2,946.4
(39.6)
3,724.4
(757.2)
4.4
(172.4)
(184.9)
420.6
29.5
6,564.2
(1,286.7)
7.4
(137.7)
(239.7)
1,249.8
33.6
Total comprehensive (loss)/ income
(43.4)
2,906.8
450.1
1,283.4
Statement of financial position
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Less: Non-controlling interests
6,746.1
43,560.9
(15,756.0)
(19,002.1)
15,548.9
(1,684.8)
2,979.5
5,759.2
(2,295.3)
(693.3)
5,750.1
-
1,446.2
5,543.2
(2,112.2)
(3,165.0)
1,712.2
0.9
1,499.3
10,597.9
(3,107.5)
(6,916.1)
2,073.6
(13.6)
Net assets attributable to equity holders
13,864.1
5,750.1
1,713.1
2,060.0
Proportion of the Group’s ownership
Group’s share of net assets
Goodwill capitalised
Others (2)
39.5%
5,477.7
1,548.8
426.6
35.0%
2,012.5
1,403.6
-
47.1%
807.4
373.4
(126.4)
23.3% (1)
480.4
303.0
(7.7)
Carrying amount of the investment
7,453.1
3,416.1
1,054.4
775.7
Other items
Cash and cash equivalents
Non-current financial liabilities excluding trade
and other payables
Current financial liabilities excluding trade
and other payables
964.3
1,634.3
158.3
457.7
(18,146.6)
(354.5)
(2,619.5)
(4,207.4)
(5,320.4)
(168.5)
(281.5)
(29.2)
Group’s share of market value
12,680.9
NA
2,551.3
6,054.8
Dividends received during the year
47.9
1,017.8
152.8
217.1
‘‘NA’’ denotes Not Applicable.
Notes:
(1) Based on the Group’s direct equity interest in AIS.
(2) Others include adjustments to align the respective local accounting standards to SFRS(I).
Singapore Telecommunications Limited | Annual Report 2019
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E
R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
22.
JOINT VENTURES (Cont’d)
Group - 2017
Statement of financial position
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Less: Non-controlling interests
Airtel
S$ Mil
Telkomsel
S$ Mil
Globe
S$ Mil
AIS
S$ Mil
4,378.4
45,611.2
(13,568.3)
(20,676.7)
15,744.6
(1,399.0)
3,546.3
6,169.6
(2,547.9)
(886.5)
6,281.5
-
1,481.6
5,548.1
(2,344.3)
(2,909.5)
1,775.9
0.4
1,368.4
10,027.2
(2,994.1)
(6,816.6)
1,584.9
(5.7)
Net assets attributable to equity holders
14,345.6
6,281.5
1,776.3
1,579.2
Proportion of the Group’s ownership
Group’s share of net assets
Goodwill capitalised
Others (2)
36.5%
5,230.4
1,229.0
387.6
35.0%
2,198.5
1,403.6
-
47.1%
837.4
381.7
(139.9)
23.3% (1)
368.2
293.3
(2.4)
Carrying amount of the investment
6,847.0
3,602.1
1,079.2
659.1
Other items
Cash and cash equivalents
Non-current financial liabilities excluding trade
and other payables
Current financial liabilities excluding trade
and other payables
348.7
2,371.9
229.1
522.0
(19,774.0)
(570.2)
(2,658.7)
(3,690.1)
(3,884.7)
(76.6)
(353.6)
(187.4)
Group’s share of market value
10,995.3
NA
3,544.1
5,013.9
‘‘NA’’ denotes Not Applicable.
Notes:
(1) Based on the Group’s direct equity interest in AIS.
(2) Others include adjustments to align the respective local accounting standards to SFRS(I).
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
Share of total comprehensive income
Aggregate carrying value
“*” denotes amount of less than S$0.05 million
205
Group
2019
S$ Mil
9.3
*
9.3
84.8
2018
S$ Mil
12.2
*
12.2
87.2
Notes to the Financial Statements
For the financial year ended 31 March 2019
23.
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
31 March
2019
S$ Mil
1,733.4
79.2
-
1,812.6
Group
31 March
2018
S$ Mil
1,733.4
77.2
-
1,810.6
1 April
2017
S$ Mil
31 March
2019
S$ Mil
1,589.9
742.6
1.7
2,334.2
24.7
-
-
24.7
Company
31 March
2018
S$ Mil
24.7
-
-
24.7
1 April
2017
S$ Mil
24.7
578.8
-
603.5
29.4
29.4
(28.3)
135.1
138.6
303.1
135.5
104.6
269.5
(159.2)
65.0
(122.5)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Less: Allowance for impairment losses
(5.0)
(5.0)
-
Reclassification to ‘Net deferred gain’
(see Note 31)
(50.5)
(74.9)
(265.0)
2,060.2
2,000.2
1,946.7
24.7
24.7
603.5
As at 31 March 2019,
(i)
The market values of the quoted equity shares in associates held by the Group and the Company
were S$2.98 billion (31 March 2018: S$3.13 billion) and S$494.0 million (31 March 2018: S$676.8 million)
respectively.
(ii)
The Group’s proportionate interest in the capital commitments of the associates was S$139.9 million
(31 March 2018: S$166.6 million).
The details of associates are set out in Note 44.4.
Singapore Telecommunications Limited | Annual Report 2019
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R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
23.
ASSOCIATES (Cont’d)
The summarised financial information of the Group’s significant associate namely Intouch Holdings Public
Company Limited (“Intouch”), based on its financial statements and a reconciliation with the carrying amount
of the investment in the consolidated financial statements was as follows –
Statement of comprehensive income
Revenue
Profit after tax
Other comprehensive (loss)/ income
Total comprehensive income
Statement of financial position
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Less: Non-controlling interests
2019
S$ Mil
250.1
451.7
(0.9)
450.8
743.1
1,532.5
(305.1)
(205.5)
1,765.0
(304.6)
2018
S$ Mil
353.9
488.2
10.9
499.1
720.0
1,554.3
(444.4)
(313.4)
1,516.5
(342.2)
2017
S$ Mil
144.1
166.1
(1.6)
164.5
701.9
1,629.3
(483.6)
(395.3)
1,452.3
(411.6)
Net assets attributable to equity holders
1,460.4
1,174.3
1,040.7
Proportion of the Group’s ownership
Group’s share of net assets
Goodwill and other identifiable intangible assets
Others (1)
21.0%
306.7
1,441.7
(46.8)
21.0%
246.6
1,417.6
(23.0)
21.0%
218.5
1,371.7
(8.4)
Carrying amount of the investment
1,701.6
1,641.2
1,581.8
Other items
Group’s share of market value
Dividends received during the year
1,653.2
78.5
1,639.6
77.8
1,525.0
-
Note:
(1) Others include adjustments to align the respective local accounting standards to SFRS(I).
The aggregate information of the Group’s investments in associates which are not individually significant were
as follows –
Share of profit after tax
Share of other comprehensive income/ (loss)
Share of total comprehensive income
207
Group
2019
S$ Mil
49.7
0.4
50.1
2018
S$ Mil
90.2
(2.2)
88.0
Notes to the Financial Statements
For the financial year ended 31 March 2019
24.
IMPAIRMENT REVIEWS
Goodwill arising on acquisition of subsidiaries
The carrying values of the Group’s goodwill on acquisition of subsidiaries as at 31 March 2019 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 testing.
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 the Global Cyber Security business which were based on cash flow projections of thirteen years and
ten years respectively to better reflect their stages of growth. Cash flows beyond the terminal year are extrapolated
using the estimated growth rates stated in the table below. Key assumptions used in the calculation of value-in-use
are growth rates, operating margins, capital expenditure and discount rates.
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.
The details of other subsidiaries are shown in the table below:
Group
Carrying value of goodwill in –
31 March
2019
S$ Mil
31 March
2018
S$ Mil
1 April
2017
S$ Mil
Terminal growth rate (1)
31 March
31 March
2018
2019
Pre-tax discount rate
31 March
31 March
2018
2019
Optus Group
9,272.2
9,279.1
9,288.4
3.0%
3.0%
8.4%
9.0%
Global Cyber Security business (2)
1,046.6
999.1
1,064.2
4.0%
4.0%
12.0%
11.9%
Amobee, Inc.
1,137.3
1,011.8
729.8
3.0%
3.5%
14.3%
14.1%
SCS Computer Systems Pte. Ltd.
82.2
82.2
82.2
2.0%
2.0%
7.8%
7.4%
Notes:
(1) Weighted average growth rate used to extrapolate cash flows beyond the terminal year.
(2) Global Cyber Security business, which comprises the cyber security businesses across the Group including Trustwave, is considered a single CGU for
the purpose of goodwill impairment testing.
Singapore Telecommunications Limited | Annual Report 2019
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V
E
R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
24.
IMPAIRMENT REVIEWS (Cont’d)
As at 31 March 2019, 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.
25.
FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (“FVOCI”) INVESTMENTS
Group
Company
Balance as at 1 April
Additions
Disposals/ Write-offs
Net fair value gains/ (losses) included in
'Other Comprehensive Income'
Translation differences
2019
S$ Mil
197.9
437.1
(9.6)
13.2
8.3
2018
S$ Mil
192.9
59.6
(68.3)
9.6
4.1
Balance as at 31 March
646.9
197.9
2019
S$ Mil
5.5
-
-
(0.2)
-
5.3
Cost
Fair value changes
31 March
2019
S$ Mil
646.5
0.4
Group
31 March
2018
S$ Mil
214.9
(17.0)
1 April
2017
S$ Mil
182.8
10.1
646.9
197.9
192.9
31 March
2019
S$ Mil
Company
31 March
2018
S$ Mil
3.3
2.0
5.3
3.3
2.2
5.5
FVOCI investments included the following –
Quoted equity securities
- Singapore
- United States of America
- Thailand
Unquoted
Equity securities
Others
31 March
2019
S$ Mil
Group
31 March
2018
S$ Mil
1 April
2017
S$ Mil
31 March
2019
S$ Mil
Company
31 March
2018
S$ Mil
5.3
16.6
-
21.9
600.8
24.2
625.0
5.5
4.5
-
10.0
168.2
19.7
187.9
7.7
4.2
21.4
33.3
149.4
10.2
159.6
5.3
-
-
5.3
-
-
-
5.5
-
-
5.5
-
-
-
2018
S$ Mil
37.4
-
(31.4)
(0.5)
-
5.5
1 April
2017
S$ Mil
9.7
27.7
37.4
1 April
2017
S$ Mil
7.7
-
21.4
29.1
8.3
-
8.3
646.9
197.9
192.9
5.3
5.5
37.4
209
Notes to the Financial Statements
For the financial year ended 31 March 2019
26. OTHER ASSETS
Non-current
Capitalised contract costs (net)
Prepayments
Tax recoverable from ATO (1)
Other receivables
31 March
2019
S$ Mil
273.4
157.8
128.5
84.7
Group
31 March
2018
S$ Mil
235.0
198.3
134.9
19.6
1 April
2017
S$ Mil
239.5
194.5
143.2
14.8
31 March
2019
S$ Mil
0.1
130.6
-
-
Company
31 March
2018
S$ Mil
1.2
143.7
-
-
1 April
2017
S$ Mil
5.9
155.1
-
-
644.4
587.8
592.0
130.7
144.9
161.0
Note:
(1)
In November 2016, the Group paid A$134 million to the Australian Taxation Office (“ATO”) for amended tax assessments received in respect of the
acquisition financing of Optus. This payment has been recorded as a tax recoverable from the ATO pending outcome of its objections to the ATO
(see Note 40(b)).
The movements in capitalised contract costs (net) were as follows –
Balance as at 1 April
Contract costs incurred
Amortisation to operating expenses
Amortisation to mobile service revenue
Translation differences
2019
S$ Mil
235.0
296.4
(132.9)
(121.4)
(3.7)
Group
2018
S$ Mil
239.5
252.7
(145.0)
(108.0)
(4.2)
Balance as at 31 March
273.4
235.0
Company
2019
S$ Mil
2018
S$ Mil
1.2
0.2
(1.3)
-
-
0.1
5.9
0.2
(4.9)
-
-
1.2
Singapore Telecommunications Limited | Annual Report 2019
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V
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R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
27.
TRADE AND OTHER PAYABLES
Trade payables
Accruals
Interest payable on borrowings and swaps
Contract liabilities (handset sales)
Deferred income
Customers’ deposits
Due to associates and joint ventures
- trade
- non-trade
Due to subsidiaries
- trade
- non-trade
Other payables
“*” denotes amount of less than S$0.05 million.
31 March
2019
S$ Mil
4,393.8
844.3
132.1
111.7
54.5
33.6
47.7
0.1
47.8
-
-
-
199.3
Group
31 March
2018
S$ Mil
3,994.0
877.0
137.9
136.4
38.3
26.6
31.0
*
31.0
-
-
-
129.8
1 April
2017
S$ Mil
31 March
2019
S$ Mil
Company
31 March
2018
S$ Mil
3,590.7
985.9
142.7
129.9
31.3
26.2
27.9
*
27.9
-
-
-
120.2
657.2
226.0
40.3
-
26.6
19.3
21.5
-
21.5
371.9
340.4
712.3
34.3
585.5
245.9
41.7
-
12.6
15.3
23.9
-
23.9
294.3
214.4
508.7
34.8
1 April
2017
S$ Mil
592.9
160.4
43.6
-
11.5
15.8
22.3
-
22.3
263.8
458.2
722.0
33.5
5,817.1
5,371.0
5,054.8
1,737.5
1,468.4
1,602.0
The trade payables are non-interest bearing and are generally settled on 30 or 60 days terms, with some payables
relating to handset and network investments having payment terms of up to a year.
The interest payable on borrowings and swaps are mainly settled on a quarterly or semi-annual basis.
The amounts due to subsidiaries are unsecured, repayable on demand and interest-free.
28.
BORROWINGS (UNSECURED)
31 March
2019
S$ Mil
Group
31 March
2018
S$ Mil
1 April
2017
S$ Mil
31 March
2019
S$ Mil
Company
31 March
2018
S$ Mil
1 April
2017
S$ Mil
Current
Bonds
Bank loans
Non-current
Bonds
Bank loans
678.5
1,167.7
1,129.0
671.5
978.4
2,068.2
1,846.2
1,800.5
3,046.6
7,267.5
1,466.9
6,755.9
1,830.2
7,748.2
150.0
8,734.4
8,586.1
7,898.2
Total unsecured borrowings
10,580.6
10,386.6
10,944.8
211
-
-
-
786.5
-
786.5
786.5
-
-
-
739.5
-
739.5
739.5
-
-
-
802.7
-
802.7
802.7
1 April
2017
S$ Mil
-
802.7
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Notes to the Financial Statements
For the financial year ended 31 March 2019
28.1 Bonds
Principal amount
US$2,100 million (1)
( 31 March 2018: US$1,600 million
31 March 2017: US$2,300 million)
US$500 million (1)
US$500 million (1) (2)
US$400 million
€700 million (1) (2)
A$1,150 million (2)
31 March
2019
S$ Mil
Group
31 March
2018
S$ Mil
1 April
2017
S$ Mil
31 March
2019
S$ Mil
Company
31 March
2018
S$ Mil
2,832.0
786.5
678.5
-
2,088.8
739.5
659.5
525.1
3,201.4
802.7
711.2
559.2
-
786.5
-
-
-
739.5
-
-
1,076.8
1,150.2
1,071.0
( 31 March 2018: A$1,025 million
31 March 2017: A$625 million)
1,100.1
1,028.2
665.0
S$600 million (1)
S$550 million
S$150 million (2)
¥10,000 million
HK$1,000 million (2)
HK$620 million
Classified as –
Current
Non-current
599.8
549.8
149.9
600.0
550.0
149.9
600.0
550.0
149.9
-
123.0
124.9
172.6
-
167.1
103.6
179.8
111.5
7,946.0
7,884.9
8,726.6
786.5
739.5
802.7
678.5
7,267.5
1,129.0
6,755.9
978.4
7,748.2
-
786.5
-
739.5
-
802.7
7,946.0
7,884.9
8,726.6
786.5
739.5
802.7
Notes:
(1) The bonds are listed on the Singapore Exchange.
(2) The bonds, issued by Optus Group, are subject to a negative pledge that limits the amount of secured indebtedness of certain subsidiaries of Optus.
Singapore Telecommunications Limited | Annual Report 2019
212
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V
E
R
V
I
E
W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
28.2 Bank Loans
Current
Non-current
28.3 Maturity
31 March
2019
S$ Mil
1,167.7
1,466.9
Group
31 March
2018
S$ Mil
671.5
1,830.2
1 April
2017
S$ Mil
2,068.2
150.0
2,634.6
2,501.7
2,218.2
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
28.4
Interest Rates
31 March
2019
S$ Mil
3,116.0
2,811.3
2,807.1
Group
31 March
2018
S$ Mil
1,009.5
5,533.9
2,042.7
1 April
2017
S$ Mil
31 March
2019
S$ Mil
Company
31 March
2018
S$ Mil
1,346.0
3,698.2
2,854.0
-
-
786.5
-
-
739.5
1 April
2017
S$ Mil
-
-
802.7
8,734.4
8,586.1
7,898.2
786.5
739.5
802.7
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
31 March
2019
%
31 March
2018
%
31 March
2019
%
31 March
2018
%
3.9
-
2.5
3.9
3.0
1.9
7.4
-
-
7.4
-
-
213
Notes to the Financial Statements
For the financial year ended 31 March 2019
28.5 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 2019
Net-settled interest rate swaps
Cross currency interest rate swaps (gross-settled)
- Inflow
- Outflow
Borrowings
As at 31 March 2018
Net-settled interest rate swaps
Cross currency interest rate swaps (gross-settled)
- Inflow
- Outflow
Borrowings
Company
As at 31 March 2019
Net-settled interest rate swaps
Cross currency interest rate swaps (gross-settled)
- Inflow
- Outflow
Borrowings
As at 31 March 2018
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
36.3
13.4
3.3
9.0
(339.4)
289.9
(13.2)
2,033.8
(307.8)
250.7
(43.7)
3,237.8
(570.2)
509.5
(57.4)
3,220.7
(881.4)
746.5
(125.9)
3,524.0
2,020.6
3,194.1
3,163.3
3,398.1
45.3
37.2
20.3
17.3
(301.3)
259.4
3.4
2,143.8
(252.5)
210.8
(4.5)
1,185.6
(458.5)
363.4
(74.8)
5,846.2
(624.9)
464.4
(143.2)
2,768.7
2,147.2
1,181.1
5,771.4
2,625.5
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
1.0
1.0
2.9
7.8
(183.6)
168.8
(13.8)
50.0
(183.6)
168.9
(13.7)
50.0
(419.2)
375.2
(41.1)
149.9
(715.0)
597.8
(109.4)
1,281.1
36.2
36.3
108.8
1,171.7
1.3
1.3
4.0
12.0
(157.1)
139.2
(16.6)
48.4
(125.4)
107.2
(16.9)
48.4
(308.2)
253.9
(50.3)
145.2
(562.6)
399.7
(150.9)
1,316.9
31.8
31.5
94.9
1,166.0
Singapore Telecommunications Limited | Annual Report 2019
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W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
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A
I
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A
B
I
L
I
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Y
P
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F
O
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A
N
C
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F
I
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A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
29.
BORROWINGS (SECURED)
31 March
2019
S$ Mil
Group
31 March
2018
S$ Mil
1 April
2017
S$ Mil
31 March
2019
S$ Mil
Company
31 March
2018
S$ Mil
Current
Finance lease
Bank loans
Non-current
Finance lease
Bank loans
34.0
-
34.0
49.5
-
49.5
23.1
-
23.1
81.5
-
29.4
57.3
86.7
168.8
30.8
81.5
199.6
4.8
-
4.8
7.7
-
7.7
1 April
2017
S$ Mil
1.5
-
1.5
7.4
-
7.4
68.5
-
157.2
-
68.5
157.2
Total secured borrowings
83.5
104.6
286.3
12.5
75.9
158.7
Finance lease liabilities included lease liabilities in respect of certain assets leased from NetLink Trust.
29.1 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
31 March
2019
S$ Mil
31 March
2018
S$ Mil
31 March
2019
S$ Mil
31 March
2018
S$ Mil
38.2
52.6
-
90.8
28.8
58.4
268.0
355.2
5.5
8.0
-
13.5
11.9
44.9
268.0
324.8
Less: Future finance charges
(7.3)
(250.6)
(1.0)
(248.9)
83.5
104.6
12.5
75.9
215
Notes to the Financial Statements
For the financial year ended 31 March 2019
29.2 Maturity
The maturity periods of the non-current secured borrowings at the end of the reporting period were as follows –
Between one and two years
Between two and five years
Over five years
29.3
Interest Rates
31 March
2019
S$ Mil
37.3
12.2
-
49.5
Group
31 March
2018
S$ Mil
18.3
29.0
34.2
1 April
2017
S$ Mil
11.0
33.2
155.4
81.5
199.6
31 March
2019
S$ Mil
Company
31 March
2018
S$ Mil
1 April
2017
S$ Mil
0.9
0.9
155.4
7.9
26.4
34.2
68.5
157.2
5.1
2.6
-
7.7
The weighted average effective interest rates per annum at the end of the reporting period were as follows –
Finance lease liabilities
30.
RECONCILIATION OF LIABILITIES FROM FINANCING ACTIVITIES
Group
Company
31 March
2019
%
31 March
2018
%
31 March
2019
%
31 March
2018
%
7.1
7.2
7.3
7.3
Group - 2019
As at 1 April 2018
Financing cash flows (1)
Non-cash changes:
Fair value adjustments
Amortisation of bond discount
Foreign exchange movements
Additions of finance lease
Interest expense
Adjustment
Bonds
S$ Mil
Bank loans
S$ Mil
Finance
lease
liabilities
S$ Mil
Interest
payable
S$ Mil
Derivative
financial
instruments
S$ Mil
7,884.9
2,501.7
104.6
137.9
(64.6)
38.5
174.0
9.8
(385.1)
(6.2)
35.0
2.0
(7.2)
-
-
(7.2)
22.6
-
-
(41.1)
-
-
-
(41.1)
-
-
-
25.5
-
(56.4)
(30.9)
-
-
(8.2)
-
387.5
-
379.3
(223.1)
-
13.9
-
-
-
(209.2)
As at 31 March 2019
7,946.0
2,634.6
83.5
132.1
(280.0)
Note:
(1) The cash flows comprise the net amount of proceeds from borrowings and repayments of borrowings, net interest paid on borrowings, and settlement
of swaps for bonds repaid in the statement of cash flows.
Singapore Telecommunications Limited | Annual Report 2019
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R
V
I
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W
B
U
S
I
N
E
S
S
R
E
V
I
E
W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
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A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
30.
RECONCILIATION OF LIABILITIES FROM FINANCING ACTIVITIES (Cont’d)
Group - 2018
As at 1 April 2017
Bonds
S$ Mil
Bank loans
S$ Mil
Finance
lease
liabilities
S$ Mil
Interest
payable
S$ Mil
Derivative
financial
instruments
S$ Mil
8,726.6
2,306.3
198.2
142.7
(245.3)
Financing cash flows (1)
(506.2)
222.6
(28.3)
(379.9)
61.4
Non-cash changes:
Fair value adjustments
Amortisation of bond discount
Foreign exchange movements
Acquisition of subsidiary
Additions of finance lease
Interest expense
Adjustment
(65.4)
3.2
(273.3)
-
-
-
-
(335.5)
-
-
(58.5)
31.3
-
-
-
(27.2)
-
-
(0.5)
8.7
4.8
-
(78.3)
(65.3)
-
-
(8.5)
-
-
383.6
-
375.1
107.8
-
11.5
-
-
-
119.3
As at 31 March 2018
7,884.9
2,501.7
104.6
137.9
(64.6)
Note:
(1) The cash flows comprise the net amount of proceeds from borrowings and repayments of borrowings, net interest paid on borrowings, and settlement
of swaps for bonds repaid in the statement of cash flows.
31.
NET DEFERRED GAIN
Unamortised deferred gain
Reclassification from ‘Associates’ (see Note 23)
Net deferred gain
Classified as –
Current
Non-current
217
31 March
2019
S$ Mil
Group
31 March
2018
S$ Mil
1 April
2017
S$ Mil
446.3
(50.5)
452.7
(74.9)
1,616.5
(265.0)
395.8
377.8
1,351.5
20.8
375.0
20.1
357.7
68.8
1,282.7
395.8
377.8
1,351.5
Notes to the Financial Statements
For the financial year ended 31 March 2019
31.
NET DEFERRED GAIN (Cont’d)
NetLink Trust (“NLT”) is a business trust established as part of the Info-communications Media Development Authority
of Singapore’s effective open access requirements under Singapore’s Next Generation Nationwide Broadband
Network.
In prior years, Singtel had sold certain infrastructure assets, namely ducts, manholes and exchange buildings
(“Assets”) to NLT. At the consolidated level, the gain on disposal of Assets recognised by Singtel is deferred in the
Group’s statement of financial position and amortised over the useful lives of the Assets. The unamortised deferred
gain is released to the Group’s income statement when NLT is partially or fully sold, based on the proportionate
equity interest disposed.
Singtel sold its 100% interest in NLT to NetLink NBN Trust (the “Trust”) in July 2017 for cash as well as a 24.8% interest in
the Trust. Net deferred gains of S$1.10 billion were correspondingly released to the Group’s income statement in the
previous financial year upon this sale. Following the divestment, Singtel ceased to own units in NLT but continues to
have an interest of 24.8% in the Trust which owns all the units in NLT.
32. OTHER NON-CURRENT LIABILITIES
Performance share liability
Other payables
31 March
2019
S$ Mil
5.4
284.4
Group
31 March
2018
S$ Mil
7.0
288.1
1 April
2017
S$ Mil
7.0
317.2
289.8
295.1
324.2
31 March
2019
S$ Mil
5.4
21.1
26.5
Company
31 March
2018
S$ Mil
7.0
24.4
31.4
1 April
2017
S$ Mil
7.0
16.7
23.7
Other payables mainly relate to accruals of rental for certain network sites, long-term employee entitlements and
asset retirement obligations.
33.
SHARE CAPITAL
Group and Company
Balance as at 31 March 2019, 31 March 2018 and 1 April 2017
Number of
shares
Mil
Share
capital
S$ Mil
16,329.1
4,127.3
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.
Singapore Telecommunications Limited | Annual Report 2019
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A
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I
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I
O
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A
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O
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O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
33.
SHARE CAPITAL (Cont’d)
Capital Management
The Group is committed to delivering dividends that increase over time with growth in underlying earnings, while
maintaining an optimal capital structure and investment grade credit ratings. The Group monitors capital based on
gross and net gearing ratios. 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.
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
(2018: 10.7 cents) per share, paid
1,746.7
1,746.6
1,747.2
1,747.2
Group
Company
2019
S$ Mil
2018
S$ Mil
2019
S$ Mil
2018
S$ Mil
Interim dividend of 6.8 cents
(2018: 6.8 cents) per share, paid
Special dividend of nil
1,109.9
1,110.0
1,110.4
1,110.4
(2018: 3.0 cents) per share, paid
-
489.7
-
489.9
2,856.6
3,346.3
2,857.6
3,347.5
During the financial year, a final one-tier tax exempt ordinary dividend of 10.7 cents per share, totalling S$1.75 billion
was paid in respect of the previous financial year ended 31 March 2018. In addition, an interim one-tier tax exempt
ordinary dividend of 6.8 cents per share totalling S$1.11 billion was paid in respect of the current financial year ended
31 March 2019.
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$1.75 billion in respect of the current financial year ended 31 March 2019 for approval at the
forthcoming Annual General Meeting.
These financial statements do not reflect the above final dividend payable of approximately S$1.75 billion, which will
be accounted for in the ‘Shareholders’ Equity’ as an appropriation of ‘Retained Earnings’ in the next financial year
ending 31 March 2020.
219
Notes to the Financial Statements
For the financial year ended 31 March 2019
35.
FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES
The Group classifies fair value measurements using a fair value hierarchy which reflects the significance of the
inputs used in determining the measurements. The fair value hierarchy has the following levels –
(a)
quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(b)
(c)
inputs other than quoted prices included within Level 1 which are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and
inputs for the asset or liability which are not based on observable market data (unobservable inputs)
(Level 3).
35.1 Financial assets and liabilities measured at fair value
Group
31 March 2019
Financial assets
FVOCI investments (Note 25)
- Quoted equity securities
- Unquoted investments
Derivative financial instruments (Note 18)
Financial liabilities
Derivative financial instruments (Note 18)
Group
31 March 2018
Financial assets
FVOCI investments (Note 25)
- Quoted equity securities
- Unquoted investments
Derivative financial instruments (Note 18)
Financial liabilities
Derivative financial instruments (Note 18)
Level 1
S$ Mil
Level 2
S$ Mil
Level 3
S$ Mil
Total
S$ Mil
21.9
-
21.9
-
21.9
-
-
Level 1
S$ Mil
10.0
-
10.0
-
10.0
-
-
-
-
-
438.7
438.7
158.7
158.7
Level 2
S$ Mil
-
-
-
410.9
410.9
346.3
346.3
-
625.0
625.0
-
21.9
625.0
646.9
438.7
625.0
1,085.6
-
-
158.7
158.7
Level 3
S$ Mil
Total
S$ Mil
-
187.9
187.9
-
187.9
-
-
10.0
187.9
197.9
410.9
608.8
346.3
346.3
Singapore Telecommunications Limited | Annual Report 2019
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B
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S
S
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I
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S
G
O
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N
A
N
C
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A
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D
S
U
S
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A
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A
B
I
L
I
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Y
P
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F
O
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A
N
C
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F
I
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A
N
C
I
A
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S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
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M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
35.1 Financial assets and liabilities measured at fair value (Cont’d)
Group
1 April 2017
Financial assets
FVOCI investments (Note 25)
- Quoted equity securities
- Unquoted investments
Derivative financial instruments (Note 18)
Financial liabilities
Derivative financial instruments (Note 18)
Company
31 March 2019
Financial assets
FVOCI investments (Note 25)
- Quoted equity securities
Derivative financial instruments (Note 18)
Financial liabilities
Derivative financial instruments (Note 18)
Company
31 March 2018
Financial assets
FVOCI investments (Note 25)
- Quoted equity securities
Derivative financial instruments (Note 18)
Financial liabilities
Derivative financial instruments (Note 18)
221
Level 1
S$ Mil
Level 2
S$ Mil
Level 3
S$ Mil
Total
S$ Mil
33.3
-
33.3
-
33.3
-
-
Level 1
S$ Mil
5.3
-
5.3
-
-
Level 1
S$ Mil
5.5
-
5.5
-
-
-
-
-
540.5
540.5
295.2
295.2
Level 2
S$ Mil
-
126.6
126.6
192.3
192.3
Level 2
S$ Mil
-
200.7
200.7
335.8
335.8
-
159.6
159.6
-
159.6
-
-
33.3
159.6
192.9
540.5
733.4
295.2
295.2
Level 3
S$ Mil
Total
S$ Mil
-
-
-
-
-
5.3
126.6
131.9
192.3
192.3
Level 3
S$ Mil
Total
S$ Mil
-
-
-
-
-
5.5
200.7
206.2
335.8
335.8
Notes to the Financial Statements
For the financial year ended 31 March 2019
35.1 Financial assets and liabilities measured at fair value (Cont’d)
Company
1 April 2017
Financial assets
FVOCI investments (Note 25)
- Quoted equity securities
- Unquoted investments
Derivative financial instruments (Note 18)
Financial liabilities
Derivative financial instruments (Note 18)
Level 1
S$ Mil
Level 2
S$ Mil
Level 3
S$ Mil
Total
S$ Mil
29.1
-
29.1
-
29.1
-
-
-
-
-
389.4
389.4
452.8
452.8
-
8.3
8.3
-
8.3
-
-
29.1
8.3
37.4
389.4
426.8
452.8
452.8
See Note 2.16 for the policies on fair value estimation of the financial assets and liabilities.
The following table presents the reconciliation for the unquoted FVOCI investments measured at fair value based on
unobservable inputs (Level 3) –
FVOCI investments - unquoted
Balance as at 1 April, previously reported
Effects of adoption of SFRS(I) 9
Balance as at 1 April, restated
Total gains/ (losses) included in
‘Fair Value Reserve’
Additions
Disposals
Transfer out from Level 3
Translation differences
2019
S$ Mil
86.1
101.8
187.9
4.1
437.1
(2.3)
(10.1)
8.3
Group
2018
S$ Mil
90.3
69.3
159.6
(6.3)
59.6
(24.2)
-
(0.8)
Balance as at 31 March
625.0
187.9
Company
2019
S$ Mil
2018
S$ Mil
-
-
-
-
-
-
-
-
-
8.3
-
8.3
0.3
-
(8.6)
-
-
-
Singapore Telecommunications Limited | Annual Report 2019
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S
S
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I
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W
S
G
O
V
E
R
N
A
N
C
E
A
N
D
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
F
I
N
A
N
C
I
A
L
S
A
D
D
I
T
I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
35.2 Financial assets and liabilities not measured at fair value (but with fair value disclosed)
Carrying Value
S$ Mil
Level 1
S$ Mil
Level 2
S$ Mil
Level 3
S$ Mil
Total
S$ Mil
Fair value
As at 31 March 2019
Financial liabilities
Group
Bonds (Note 28.1)
Company
Bonds (Note 28.1)
As at 31 March 2018
Financial liabilities
Group
Bonds (Note 28.1)
Company
Bonds (Note 28.1)
As at 1 April 2017
Financial liabilities
Group
Bonds (Note 28.1)
Company
Bonds (Note 28.1)
7,946.0
6,235.4
2,013.0
786.5
936.4
-
7,884.9
5,459.8
2,680.4
739.5
879.1
-
8,726.6
6,722.9
2,402.9
802.7
957.0
-
-
-
-
-
-
-
8,248.4
936.4
8,140.2
879.1
9,125.8
957.0
See Note 2.16 on the basis of estimating the fair values and Note 18 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.
223
Notes to the Financial Statements
For the financial year ended 31 March 2019
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 2019, 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 the United States of America. Additionally,
the Group’s joint venture in India, Bharti Airtel Limited, is primarily exposed to foreign exchange risks from its
operations in Sri Lanka and 14 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 intended to be 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.
Singapore Telecommunications Limited | Annual Report 2019
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Notes to the Financial Statements
For the financial year ended 31 March 2019
36.2 Foreign Exchange Risk (Cont’d)
The critical terms (i.e. the notional amount, maturity and underlying) of the derivative financial instruments and
their corresponding hedged items are the same. The Group performs a qualitative assessment of effectiveness
and it is expected that derivative financial instruments and the value of the corresponding hedged items will
systematically change in opposite direction in response to movements in the underlying exchange rates.
The main source of hedge ineffectiveness in these hedging relationships is the effect of the counterparty and the
Group’s own credit risk on the fair value of the derivative financial instruments, which is not reflected in the
fair value of the hedged items attributable to changes in foreign currency rates. No other source of ineffectiveness
emerged from these hedging relationships.
All hedge relationships remain effective and there is no hedge relationship in which hedge accounting is no
longer applied.
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 2019, after taking into account the effect of interest rate swaps, approximately 66%
(31 March 2018: 67%) of the Group’s borrowings were at fixed rates of interest.
As at 31 March 2019, 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$15.4 million
(2018: S$15.5 million).
The critical terms (i.e. the notional amount, maturity and underlying) of the derivative financial instruments and their
corresponding hedged items are the same. The Group performs a qualitative assessment of effectiveness and it is
expected that derivative financial instruments and the value of the corresponding hedged items will systematically
change in opposite direction in response to movements in the underlying interest rates.
The main source of hedge ineffectiveness in these hedging relationships is the effect of the counterparty and
the Group’s own credit risk on the fair value of the interest rate swaps, which is not reflected in the fair value of
the hedge items attributable to changes in interest rates. No other source of ineffectiveness emerged from these
hedging relationships.
Interest rate swap contracts paying fixed rate interest amounts are designated and effective as cash flow hedges
in reducing the Group’s cash flow exposure resulting from variable interest rates on borrowings. The interest rate
swaps and the interest payments on the borrowings occur simultaneously and the amount accumulated in equity is
reclassified to the income statement over the period that the floating rate interest payments on borrowings affect
the income statement.
225
Notes to the Financial Statements
For the financial year ended 31 March 2019
36.3
Interest Rate Risk (Cont’d)
Interest rate swap contracts paying floating rate interest amounts are designated and effective as fair value
hedges of interest rate movements. During the year, the hedge was fully effective in hedging the fair value
exposure to interest rate movements. The carrying amount of the bond decreased by S$23.5 million which
was included in the income statement at the same time that the fair value of the interest rate swap was included
in the income statement.
As at 31 March 2019, S$2.54 billion of borrowings was designated in fair value hedge relationships. All hedge
relationships remained effective and there was no hedge relationship in which hedge accounting could no longer
be applied.
36.4 Credit Risk
Financial assets that potentially subject the Group to concentrations of credit risk consist primarily of trade
receivables, contract assets, cash and cash equivalents and financial instruments used in hedging activities.
The Group has no significant concentration of credit risk from trade receivables and contract assets 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’s exposure to credit risk and the measurement
bases used to determine expected credit losses is disclosed in Note 16.
The Group places its cash and cash equivalents with a number of major commercial banks and other financial
institutions with high credit ratings. 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 to mitigate the effects of fluctuations
in cash flows. Due to the dynamic nature of the underlying business, the Group aims at maintaining funding
flexibility with adequate committed and uncommitted credit lines available to ensure that the Group is able to
meet the short-term obligations of the Group as they fall due.
The maturity profile of the Group’s borrowings and related swaps based on expected contractual undiscounted
cash flows is disclosed in Note 28.5.
36.6 Market Risk
The Group has investments in quoted equity shares. The market value of these investments will fluctuate with
market conditions.
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Notes to the Financial Statements
For the financial year ended 31 March 2019
37.
SEGMENT INFORMATION
Segment information is presented based on the information reviewed by senior management for performance
measurement and resource allocation.
Singtel Group is organised by three business segments, 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, mainly AIS and Intouch (which has an equity interest of 40.5% in AIS) in Thailand, Airtel in India,
Africa and Sri Lanka, 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.
Group Enterprise comprises the business groups across Singapore, Australia, the 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 services
and professional consulting.
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 into adjacent businesses where it has a
competitive advantage. It focuses on three key businesses in digital life – 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.
Corporate comprises the costs of Group functions not allocated to the 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 the business segments using established
methodologies.
227
Notes to the Financial Statements
For the financial year ended 31 March 2019
37.
SEGMENT INFORMATION (Cont’d)
The Group’s reportable segments by the three business segments for the financial years ended 31 March 2019
and 31 March 2018 were as follows –
Group - 2019
Operating revenue
Operating expenses
Other income/ (expense)
Earnings before interest,
tax, depreciation and
amortisation (“EBITDA”)
Share of pre-tax results of associates
and joint ventures
- Airtel
- Telkomsel
- Globe
- AIS
- Intouch
- Others
Group
Consumer
S$ Mil
9,818.6
(6,803.9)
151.6
Group
Enterprise
S$ Mil
6,329.3
(4,701.7)
67.6
Group
Digital Life
S$ Mil
1,223.8
(1,315.2)
(0.3)
Corporate
S$ Mil
Group
Total
S$ Mil
-
(83.7)
5.8
17,371.7
(12,904.5)
224.7
3,166.3
1,695.2
(91.7)
(77.9)
4,691.9
(511.2)
1,128.3
367.8
343.2
96.1
1.0
1,425.2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
110.7
110.7
(511.2)
1,128.3
367.8
343.2
96.1
111.7
1,535.9
EBITDA and share of pre-tax results of
associates and joint ventures
4,591.5
1,695.2
(91.7)
32.8
6,227.8
Depreciation and amortisation
Earnings before interest and
tax (“EBIT”)
Segment assets
Investment in associates and
joint ventures
- Airtel
- Telkomsel
- Globe
- AIS
- Intouch
- Others
(1,544.5)
(614.8)
(60.3)
(2.6)
(2,222.2)
3,047.0
1,080.4
(152.0)
30.2
4,005.6
7,420.4
3,313.0
1,175.7
864.0
1,701.6
24.3
14,499.0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
419.1
419.1
7,420.4
3,313.0
1,175.7
864.0
1,701.6
443.4
14,918.1
Goodwill on acquisition of subsidiaries
Other assets
9,190.0
13,512.4
1,211.0
5,705.6
1,137.3
949.0
-
2,291.4
11,538.3
22,458.4
37,201.4
6,916.6
2,086.3
2,710.5
48,914.8
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Notes to the Financial Statements
For the financial year ended 31 March 2019
37.
SEGMENT INFORMATION (Cont’d)
Group - 2018
Operating revenue
Operating expenses
Other income
Group
Consumer
S$ Mil
9,711.0
(6,595.5)
206.9
Group
Enterprise
S$ Mil
6,476.7
(4,658.1)
44.8
Group
Digital Life
S$ Mil
1,080.3
(1,133.4)
1.8
Corporate
S$ Mil
Group
Total
S$ Mil
-
(89.3)
5.3
17,268.0
(12,476.3)
258.8
EBITDA
3,322.4
1,863.4
(51.3)
(84.0)
5,050.5
Share of pre-tax results of associates
and joint ventures
- Airtel
- Telkomsel
- Globe
- AIS
- Intouch
- Others
199.3
1,372.4
289.1
347.4
103.0
0.9
2,312.1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
148.7
148.7
199.3
1,372.4
289.1
347.4
103.0
149.6
2,460.8
EBITDA and share of pre-tax results of
associates and joint ventures
5,634.5
1,863.4
(51.3)
64.7
7,511.3
Depreciation and amortisation
(1,571.9)
(607.8)
(69.1)
(1.2)
(2,250.0)
EBIT
4,062.6
1,255.6
(120.4)
63.5
5,261.3
Segment assets
Investment in associates and
joint ventures
- Airtel
- Telkomsel
- Globe
- AIS
- Intouch
- Others
7,453.1
3,416.1
1,054.4
775.7
1,641.2
23.6
14,364.1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
422.6
422.6
7,453.1
3,416.1
1,054.4
775.7
1,641.2
446.2
14,786.7
Goodwill on acquisition of subsidiaries
Other assets
9,192.9
13,742.3
1,167.5
5,844.7
1,011.8
725.6
-
2,024.0
11,372.2
22,336.6
37,299.3
7,012.2
1,737.4
2,446.6
48,495.5
229
Notes to the Financial Statements
For the financial year ended 31 March 2019
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
Exceptional items
Profit before interest, investment income (net) and tax
Interest and investment income (net)
Finance costs
Profit before tax
Group
2019
S$ Mil
2018
S$ Mil
4,005.6
5,261.3
301.1
(274.3)
68.2
4,100.6
38.1
(392.8)
(16.7)
(640.1)
1,895.1
6,499.6
45.5
(390.2)
3,745.9
6,154.9
The Group’s revenue from its major products and services are disclosed in Note 4.
The Group’s revenue is mainly derived from Singapore and Australia which respectively accounted for approximately
38% (2018: 38%) and 52% (2018: 52%) of the total revenue for the financial year ended 31 March 2019, with the
remaining 10% (2018: 10%) from the United States of America and other countries where the Group operates in.
The geographical information on the Group’s non-current assets is not presented as it is not used for segmental
reporting purposes.
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 2019
and 31 March 2018.
38. OPERATING LEASE COMMITMENTS
As at 31 March 2019, the future aggregate lease payments for the remaining lease periods (including renewal
periods where the Group is reasonably certain to exercise the renewals) under operating leases but not recognised
as liabilities, were as follows:
Not later than one year
Later than one but not later than five years
Later than five years
Group
S$ Mil
Company
S$ Mil
430.2
1,517.0
1,471.1
82.5
308.5
495.6
3,418.3
886.6
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Notes to the Financial Statements
For the financial year ended 31 March 2019
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 and Note 39.3, were as follows –
Authorised and contracted for
Group
Company
31 March
2019
S$ Mil
1,334.7
31 March
2018
S$ Mil
865.3
31 March
2019
S$ Mil
250.3
31 March
2018
S$ Mil
87.5
39.2 As at 31 March 2019, the Group’s commitments for the purchase of broadcasting programme rights were
S$926 million (31 March 2018: S$693 million). The commitments included only the minimum guaranteed
amounts payable under the respective contracts and did 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.
39.3 On 7 March 2019, Singtel announced that it will subscribe to Airtel’s rights issue based on its rights entitlement
for its direct stake of 15%. The total consideration for the subscription is approximately S$735 million. The rights
issue will close on 17 May 2019 and is expected to complete in early June 2019.
40. CONTINGENT LIABILITIES OF SINGTEL AND ITS SUBSIDIARIES
(a) Guarantees
As at 31 March 2019,
(i)
(ii)
The Group and Company provided bankers’ and other guarantees, and insurance bonds of
S$592.4 million and S$109.1 million (31 March 2018: S$570.4 million and S$146.4 million) respectively.
The Company provided guarantees for loans of S$1.24 billion (31 March 2018: S$1.18 billion) drawn
down under various loan facilities entered into by Singtel Group Treasury Pte. Ltd. (“SGT”), a wholly-
owned subsidiary, with maturities between December 2019 and September 2021.
(iii)
The Company provided guarantees for SGT’s notes issue of an aggregate equivalent amount of
S$3.95 billion (31 March 2018: S$4.04 billion) due between April 2020 and August 2028.
(b)
In 2016 and 2017, Singapore Telecom Australia Investments Pty Limited (“STAI”) received amended
assessments from the Australian Taxation Office (“ATO”) in connection with the acquisition financing of
Optus. The assessments comprised primary tax of A$268 million, interest of A$58 million and penalties of
A$67 million. STAI’s holding company, Singtel Australia Investment Ltd, would be entitled to refund of
withholding tax estimated at A$89 million. STAI has objected to the amended assessments. In accordance
with the ATO administrative practice, STAI paid a minimum amount of 50% of the assessed primary tax on
21 November 2016. This payment continued to be recognised as a receivable as at 31 March 2019.
In December 2018, Singtel Group received additional assessments amounting to S$120 million from the Inland
Revenue Authority of Singapore for reduction in group relief claims in Year of Assessment 2014. Singtel has
objected to the additional assessments. The final payment due date has not been indicated by the Inland
Revenue Authority of Singapore.
The Group has received advice from external experts in relation to the above matters and will vigorously
defend its position. Accordingly, no provision has been made as at 31 March 2019.
231
Notes to the Financial Statements
For the financial year ended 31 March 2019
40. CONTINGENT LIABILITIES OF SINGTEL AND ITS SUBSIDIARIES (Cont’d)
(c)
The Group is contingently liable for claims arising in the ordinary course of business and from certain tax
assessments which are being contested, the outcome of which are not presently determinable. The Group is
vigorously defending all these claims.
41.
SIGNIFICANT CONTINGENT LIABILITIES OF ASSOCIATES AND JOINT VENTURES
(a)
Airtel, a 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 (S$1.02 billion) towards levy of one time spectrum charge, which was further revised
on 27 June 2018 to Rs. 84.14 billion (S$1.65 billion).
In the opinion of Airtel, inter-alia, the above demand amounts to alteration of the terms of the licences 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 2019, other taxes, custom duties and demands under adjudication, appeal or disputes
amounted to approximately Rs. 166 billion (S$3.25 billion). In respect of some of the tax issues, pending final
decisions, Airtel had deposited amounts with statutory authorities.
(b)
AIS, a joint venture of the Group, has various commercial disputes and significant litigations.
In 2008, CAT Telecom Public Company Limited (“CAT”) demanded that AIS’ subsidiary, Digital Phone
Company Limited (“DPC”) pay additional revenue share of THB 3.4 billion (S$146 million) arising from the
abolishment of excise tax. CAT’s claim is still pending appeal before the Supreme Administrative Court.
In 2015, TOT Public Company Limited (“TOT”) demanded that AIS pays additional revenue share of
THB 62.8 billion (S$2.68 billion) 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.
Between 2011 and 2016, TOT demanded that AIS pays additional revenue share based on gross interconnection
income from 2007 to 2015 amounting to THB 36.2 billion (S$1.55 billion) plus interest. On 17 August 2018, the
Arbitration Institute awarded in favour of AIS in deciding that TOT has no right to claim for revenue share on gross
interconnection income for the period from 2007 to 2010 amounting to THB 17.8 billion (S$760 million). The claims
for the remaining period from 2011 to 2015 amounting to THB 18.4 billion (S$784 million) are pending arbitration.
Between 2014 to 2016, TOT demanded that AIS pays THB 41.1 billion (S$1.76 billion) plus interest for the porting
of subscribers from 900 MHz to 2100 MHz network. In February 2019, the Arbitration Institute resolved the
dispute in favour of AIS. TOT is eligible to file a petition within 90 days.
Singapore Telecommunications Limited | Annual Report 2019
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O
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Notes to the Financial Statements
For the financial year ended 31 March 2019
41.
SIGNIFICANT CONTINGENT LIABILITIES OF ASSOCIATES AND JOINT VENTURES (Cont’d)
In March 2018, CAT demanded DPC to transfer the telecommunications systems which would have been
supplied under the Concession Agreement between CAT and DPC of THB 13.4 billion (S$573 million) or to pay
the same amount plus interest. This case is pending arbitration.
In September 2018, TOT demanded that AIS pays additional revenue share from disputes on roaming rates
from July 2013 to September 2015, amounting to THB 16.3 billion (S$694 million).
As at 31 March 2019, there are a number of other claims against AIS and its subsidiaries amounting to
THB 30.1 billion (S$1.28 billion) 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.
(c)
In October 2017, Intouch and its subsidiary, Thaicom Public Company Limited (“Thaicom”) received letters
from the Ministry of Digital Economy and Society (the “Ministry”) stating that Thaicom 7 and Thaicom 8
satellites (the “Satellites”) are governed under the terms of a 1991 satellite operating agreement between
Intouch and the Ministry which entails the transfer of asset ownership, procurement of backup satellites,
payment of revenue share, and procurement of property insurance. Intouch and Thaicom have obtained
legal advice and are of the opinion that the Satellites are not covered under the Agreement but instead
under the licence from the National Broadcasting and Telecommunications Commission. This case is pending
arbitration.
(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.
In June 2016, the Philippine Competition Commission (“PCC”) claimed that the Joint Notice of Acquisition
filed by Globe, PLDT Inc. (“PLDT”) and San Miguel Corporation (“SMC”) on the acquisition of SMC’s
telecommunications business was deficient and cannot be claimed to be deemed approved. In July 2016,
Globe filed a petition with the Court of Appeals of the Philippines (“CA”) to stop the PCC from reviewing the
acquisition. In October 2017, the CA ruled in favour of Globe and PLDT, and declared the acquisition as valid
and deemed approved. PCC subsequently elevated the case to the Supreme Court to review the CA’s rulings.
(e)
As at 31 March 2019, Telkomsel, a joint venture of the Group, has filed appeals and cross-appeals amounting
to approximately IDR 71 billion (S$7 million) for various tax claims arising in certain tax assessments which are
pending final decisions, the outcome of which is not presently determinable.
233
Notes to the Financial Statements
For the financial year ended 31 March 2019
42.
RECONCILIATIONS OF PROFIT, COMPREHENSIVE INCOME AND EQUITY
The adoption of SFRS(I) had no material effect on the financial statements prepared under FRS, except as
described below:
SFRS(I) 1, First-time Adoption of Singapore Financial Reporting Standards (International)
The Group has made the following adjustments to the opening statement of financial position as at 1 April
2017 arising from the transition options:
(a)
The cumulative currency translation loss of the Group has been transferred to retained earnings.
(b)
Fair value has been used as the ‘deemed cost’ for certain property, plant and equipment.
SFRS(I) 9, Financial Instruments
SFRS(I) 9 introduces new requirements for classification and measurement of financial assets and financial
liabilities, general hedge accounting and impairment requirements for financial assets. Equity investments
previously accounted for as ‘Available-For-Sale’ (AFS) investments are accounted for as ‘Fair Value through
Other Comprehensive Income’ (FVOCI) investments. Lifetime expected credit losses are recognised for trade
receivables and contract assets.
SFRS(I) 15, Revenue from Contracts with Customers
SFRS(I) 15 establishes a single comprehensive model of accounting for revenue arising from contracts with
customers. The standard requires companies to apportion revenue earned from contracts to performance
obligations based on a five-step model on a relative standalone selling price basis. It also introduces new
contract cost guidance and requires certain additional disclosures.
The Group has applied the retrospective method in the initial application of SFRS(I) 15, including the use of
practical expedients. Contracts that ended before 1 April 2017 (the first comparative reporting period) were
not restated. The adoption of SFRS(I) 15 resulted in the following key effects at the consolidated level:
(a)
An increase in revenue allocated to sales of equipment, which are based on their relative standalone
selling prices, and a reduction in mobile service revenue over the customer contract term.
(b)
An increase in cost of sales and a reduction in mobile customer acquisition costs.
(c)
(d)
(e)
Commission paid to dealers and own sales force are capitalised and amortised as operating expenses
over the customer contract term in the income statement. Capitalised contract costs are included in
‘Other assets’ under non-current assets.
An increase in contract assets, comprising mainly unbilled equipment receivables arising from upfront
recognition of revenue from sales of equipment. Contract assets are included in ‘Trade and other
receivables’ under current assets as they are expected to be realised in the normal operating cycle.
An increase in contract liabilities, comprising mainly deferred revenue in respect of mobile price
plan discount vouchers given. Contract liabilities are included in ‘Trade and other payables’ under
current liabilities.
There are no material differences between the consolidated statement of cash flows presented under SFRS(I)
and FRS.
Singapore Telecommunications Limited | Annual Report 2019
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B
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S
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I
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S
G
O
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R
N
A
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C
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A
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D
S
U
S
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A
I
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A
B
I
L
I
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Y
P
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F
O
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A
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C
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I
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A
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C
I
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I
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I
O
N
A
L
I
N
F
O
R
M
A
T
I
O
N
Notes to the Financial Statements
For the financial year ended 31 March 2019
42.
RECONCILIATIONS OF PROFIT, COMPREHENSIVE INCOME AND EQUITY (Cont’d)
The tables below summarised the impact of adopting SFRS(I) 1, SFRS(I) 9 and SFRS(I) 15 for the previous financial
year ended, and as at 31 March 2018 and 1 April 2017.
Income statement for the financial year ended 31 March 2018
Group
Operating revenue
Operating expenses
Other income
Depreciation and amortisation
Exceptional items
Profit on operating activities
Share of results of associates and joint ventures
Profit before interest, investment income (net) and tax
Interest and investment income (net)
Finance costs
Profit before tax
Tax expense
Profit after tax
Attributable to:
Shareholders of the Company
Non-controlling interests
Earnings per share attributable to shareholders of the Company
- basic
- diluted
Adjustments
S$ Mil
(263.8)
225.2
-
(38.6)
90.1
51.5
(45.3)
6.2
17.3
23.5
(0.1)
-
23.4
(1.8)
21.6
21.6
-
21.6
Previously
reported
S$ Mil
17,531.8
(12,701.5)
258.8
5,089.1
(2,340.1)
2,749.0
1,940.4
4,689.4
1,786.7
6,476.1
45.6
(390.2)
6,131.5
(701.2)
5,430.3
5,451.4
(21.1)
5,430.3
33.40¢
33.35¢
Statement of comprehensive income for the financial year ended 31 March 2018
Group
Profit after tax
Other comprehensive loss, net of tax
Total comprehensive income
Attributable to:
Shareholders of the Company
Non-controlling interests
235
Previously
reported
S$ Mil
5,430.3
(652.1)
4,778.2
4,798.6
(20.4)
4,778.2
Adjustments
S$ Mil
21.6
8.7
30.3
30.3
-
30.3
Restated
S$ Mil
17,268.0
(12,476.3)
258.8
5,050.5
(2,250.0)
2,800.5
1,895.1
4,695.6
1,804.0
6,499.6
45.5
(390.2)
6,154.9
(703.0)
5,451.9
5,473.0
(21.1)
5,451.9
33.53¢
33.48¢
Restated
S$ Mil
5,451.9
(643.4)
4,808.5
4,828.9
(20.4)
4,808.5
Notes to the Financial Statements
For the financial year ended 31 March 2019
42.
RECONCILIATIONS OF PROFIT, COMPREHENSIVE INCOME AND EQUITY (Cont’d)
Statement of Financial Position as at 31 March 2018
Group
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial instruments
Non-current assets
Property, plant and equipment
Intangible assets
Joint ventures
Associates
Available-for-sale investments
Fair value through other comprehensive income investments
Derivative financial instruments
Deferred tax assets
Trade and other receivables
Other assets
Total assets
Current liabilities
Trade and other payables
Advance billings
Current tax liabilities
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Net deferred gain
Non-current liabilities
Advance billings
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Net deferred gain
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
Previously
reported
S$ Mil
Adjustments
S$ Mil
Restated
S$ Mil
524.9
5,035.4
397.4
23.2
5,980.9
11,800.8
13,969.1
12,782.6
2,005.5
197.9
-
409.6
360.1
747.2
-
42,272.8
48,253.7
5,233.9
794.1
351.3
1,800.5
23.1
70.0
20.1
8,293.0
225.1
8,525.1
81.5
302.2
357.7
520.4
295.1
10,307.1
18,600.1
29,653.6
4,127.3
25,551.9
29,679.2
(3.2)
(22.4)
29,653.6
-
778.3
-
(0.6)
777.7
(346.7)
-
3.9
(5.3)
(197.9)
197.9
(21.3)
(7.1)
(747.2)
587.8
(535.9)
241.8
137.1
-
-
-
-
(0.7)
-
136.4
(3.5)
61.0
-
(25.2)
-
15.2
-
47.5
183.9
57.9
-
57.9
57.9
-
-
57.9
524.9
5,813.7
397.4
22.6
6,758.6
11,454.1
13,969.1
12,786.5
2,000.2
-
197.9
388.3
353.0
-
587.8
41,736.9
48,495.5
5,371.0
794.1
351.3
1,800.5
23.1
69.3
20.1
8,429.4
221.6
8,586.1
81.5
277.0
357.7
535.6
295.1
10,354.6
18,784.0
29,711.5
4,127.3
25,609.8
29,737.1
(3.2)
(22.4)
29,711.5
Singapore Telecommunications Limited | Annual Report 2019
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A
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A
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A
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I
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N
Notes to the Financial Statements
For the financial year ended 31 March 2019
42.
RECONCILIATIONS OF PROFIT, COMPREHENSIVE INCOME AND EQUITY (Cont’d)
Statement of Financial Position as at 31 March 2018
Previously
reported
S$ Mil
92.0
2,323.9
21.8
70.1
2,507.8
2,303.9
19,425.9
22.8
24.7
5.5
-
134.1
143.7
-
22,060.6
24,568.4
1,468.4
80.1
101.5
7.4
84.9
1,742.3
136.7
673.2
68.5
279.0
275.6
31.4
1,464.4
3,206.7
21,361.7
4,127.3
17,234.4
21,361.7
Adjustments
S$ Mil
Restated
S$ Mil
-
-
-
-
-
(44.5)
-
-
-
(5.5)
5.5
(3.5)
(143.7)
144.9
(46.8)
92.0
2,323.9
21.8
70.1
2,507.8
2,259.4
19,425.9
22.8
24.7
-
5.5
130.6
-
144.9
22,013.8
(46.8)
24,521.6
-
-
-
-
-
-
-
66.3
-
(28.1)
(7.4)
-
30.8
30.8
(77.6)
-
(77.6)
(77.6)
1,468.4
80.1
101.5
7.4
84.9
1,742.3
136.7
739.5
68.5
250.9
268.2
31.4
1,495.2
3,237.5
21,284.1
4,127.3
17,156.8
21,284.1
Company
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial instruments
Non-current assets
Property, plant and equipment
Subsidiaries
Joint ventures
Associates
Available-for-sale investments
Fair value through other comprehensive income investments
Derivative financial instruments
Trade and other receivables
Other assets
Total assets
Current liabilities
Trade and other payables
Advance billings
Current tax liabilities
Borrowings (secured)
Derivative financial instruments
Non-current liabilities
Advance billings
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Deferred tax liabilities
Other non-current liabilities
Total liabilities
Net assets
Share capital and reserves
Share capital
Reserves
Total equity
237
Notes to the Financial Statements
For the financial year ended 31 March 2019
42.
RECONCILIATIONS OF PROFIT, COMPREHENSIVE INCOME AND EQUITY (Cont’d)
Statement of Financial Position as at 1 April 2017
Group
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial instruments
Non-current assets
Property, plant and equipment
Intangible assets
Joint ventures
Associates
Available-for-sale investments
Fair value through other comprehensive income investments
Derivative financial instruments
Deferred tax assets
Trade and other receivables
Other assets
Loan to an associate
Total assets
Current liabilities
Trade and other payables
Advance billings
Current tax liabilities
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Net deferred gain
Non-current liabilities
Advance billings
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Net deferred gain
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
Previously
reported
S$ Mil
Adjustments
S$ Mil
Restated
S$ Mil
533.8
4,924.2
352.2
107.3
5,917.5
11,892.9
13,072.8
12,282.9
1,952.2
192.9
-
455.2
657.8
769.5
-
1,100.5
42,376.7
48,294.2
4,922.4
835.4
296.3
3,046.9
86.7
15.8
68.8
9,272.3
245.7
7,852.7
199.6
303.1
1,282.7
574.6
349.9
10,808.3
20,080.6
28,213.6
4,127.3
24,086.3
28,213.6
22.4
(22.4)
28,213.6
-
838.2
-
(1.2)
837.0
(436.8)
-
2.4
(5.5)
(192.9)
192.9
(20.8)
(22.9)
(769.5)
592.0
-
(661.1)
175.9
132.4
25.7
-
(0.3)
-
-
-
157.8
(3.8)
45.5
-
(23.7)
-
(1.8)
(25.7)
(9.5)
148.3
27.6
-
27.6
27.6
-
-
27.6
533.8
5,762.4
352.2
106.1
6,754.5
11,456.1
13,072.8
12,285.3
1,946.7
-
192.9
434.4
634.9
-
592.0
1,100.5
41,715.6
48,470.1
5,054.8
861.1
296.3
3,046.6
86.7
15.8
68.8
9,430.1
241.9
7,898.2
199.6
279.4
1,282.7
572.8
324.2
10,798.8
20,228.9
28,241.2
4,127.3
24,113.9
28,241.2
22.4
(22.4)
28,241.2
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A
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N
Notes to the Financial Statements
For the financial year ended 31 March 2019
42.
RECONCILIATIONS OF PROFIT, COMPREHENSIVE INCOME AND EQUITY (Cont’d)
Statement of Financial Position as at 1 April 2017
Company
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial instruments
Non-current assets
Property, plant and equipment
Subsidiaries
Joint ventures
Associates
Available-for-sale investments
Fair value through other comprehensive income investments
Derivative financial instruments
Trade and other receivables
Other assets
Loan to an associate
Total assets
Current liabilities
Trade and other payables
Advance billings
Current tax liabilities
Borrowings (secured)
Derivative financial instruments
Non-current liabilities
Advance billings
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Deferred tax liabilities
Other non-current liabilities
Total liabilities
Net assets
Share capital and reserves
Share capital
Reserves
Total equity
239
Previously
reported
S$ Mil
89.2
1,673.3
23.8
107.1
1,893.4
2,326.5
17,441.0
23.0
603.5
37.4
-
284.9
155.1
-
1,100.5
21,971.9
23,865.3
1,602.0
74.8
100.6
1.5
110.0
1,888.9
138.3
746.2
157.2
370.0
282.2
23.7
1,717.6
3,606.5
Adjustments
S$ Mil
Restated
S$ Mil
-
-
-
(1.2)
(1.2)
(59.9)
-
-
-
(37.4)
37.4
(1.4)
(155.1)
161.0
-
(55.4)
89.2
1,673.3
23.8
105.9
1,892.2
2,266.6
17,441.0
23.0
603.5
-
37.4
283.5
-
161.0
1,100.5
21,916.5
(56.6)
23,808.7
-
-
-
-
(1.2)
(1.2)
-
56.5
-
(26.0)
(9.2)
-
21.3
20.1
1,602.0
74.8
100.6
1.5
108.8
1,887.7
138.3
802.7
157.2
344.0
273.0
23.7
1,738.9
3,626.6
20,258.8
(76.7)
20,182.1
4,127.3
16,131.5
20,258.8
-
(76.7)
(76.7)
4,127.3
16,054.8
20,182.1
Notes to the Financial Statements
For the financial year ended 31 March 2019
43.
EFFECTS OF ACCOUNTING PRONOUNCEMENTS ISSUED BUT NOT YET ADOPTED
The new and revised accounting standards effective from 1 April 2019 are not expected to have a significant
impact on the financial statements of the Group in the next financial year ending 31 March 2020 except for
SFRS(I) 16, Leases.
SFRS(I) 16 requires lessees to adopt a single lease accounting model with leases recognised as lease liabilities in
the statement of financial position, with corresponding “right-of-use” assets. In the income statement, depreciation
charges on the “right-of-use” assets and interest expense on the lease liability will be recorded. In the statement of
cash flows, lease payments will be classified as financing cash flows. The new standard also specifies new accounting
rules for sales and leaseback of assets, as well as for subleases of leased assets under certain circumstances. The
standard continues to adopt a dual accounting lease model for lessor accounting.
The Group will apply SFRS(I) 16 using the modified retrospective approach where the cumulative effect of initial
application will be reflected as an adjustment to the opening statement of financial position as at 1 April 2019. The
standard will be applied prospectively with no restatement of financial statements for the comparative periods.
On transition, the Group will elect the practical expedients permitted by the new standard, including carrying
forward the historical lease classification, as well as excluding all leases with original maturities of one year or less,
and leases of low value assets.
The Group is a lessee mainly for operating leases of facilities such as central offices, data centres, corporate offices,
retail stores, network equipment, ducts and manholes.
In Australia, the Group sells and leases back handsets (as a lessee) from a bank for subleasing to its customers
(as an intermediate lessor). Before the adoption of SFRS(I) 16, the profit on sale of handset is accounted in full
upon delivery, the lease payments made (as a lessee) are accounted as operating lease expenses over the
contract period, and the lease income received (as an intermediate lessor) are recognised as operating lease income
over the contract period. Under SFRS(I) 16, however, the profit on sale and leaseback of handset to be recognised
is subject to the proportion attributable to the bank and an upfront gain or loss on finance lease of leased handsets
will be recognised.
The Group is still in the process of quantifying the impact of SFRS(I) 16 on the financial statements.
44. 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 2019 and 31 March 2018.
Singapore Telecommunications Limited | Annual Report 2019
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I
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Notes to the Financial Statements
For the financial year ended 31 March 2019
44. COMPANIES IN THE GROUP (Cont’d)
44.1 Significant subsidiaries incorporated in Singapore
Name of subsidiary
Principal activities
1.
2.
Amobee Asia Pte. Ltd.
Provision of internet advertising solutions
DataSpark Pte. Ltd.
Develop and market data analytics and
insights products and services
3.
Group Enterprise Pte. Ltd.
Telecommunications resellers and third party
telecommunications providers
4.
HOOQ Digital Pte. Ltd.
Provision of regional premium over-the-top
video services
5.
NCS Communications
Engineering Pte. Ltd.
6.
NCS Pte. Ltd.
Provision of facilities management and
consultancy services, and distributor of
specialised telecommunications and data
communication products
Provision of information technology and
consultancy services
7.
8.
9.
NCSI Solutions Pte. Ltd.
Provision of information technology services
SCS Computer Systems Pte. Ltd.
Provision of information technology services
Singapore Telecom International
Pte Ltd
Holding of strategic investments and provision
of technical and management consultancy
services
10. SingNet Pte Ltd
Provision of internet access and pay television
services
11. Singtel Cyber Security
(Singapore) Pte. Ltd.
Provision of information security services and
products
12. Singtel Innov8 Ventures Pte. Ltd.
Provision of fund management services
13. Singtel Mobile Singapore
Pte. Ltd.
Operation and provision of cellular mobile
telecommunications systems and services, and
sale of telecommunications equipment
Percentage of effective equity
interest held by the Group
2019
%
100
100
100
65
2018
%
100
100
100
65
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
14. ST-2 Satellite Ventures
Private Limited
Provision of satellite capacity for
telecommunications and video broadcasting
services
61.9
61.9
15. Sembawang Cable Depot Pte Ltd Provision of storage facilities for submarine
60
60
telecommunication cables and related
equipment
241
Notes to the Financial Statements
For the financial year ended 31 March 2019
44.1 Significant subsidiaries incorporated in Singapore (Cont’d)
Name of subsidiary
Principal activities
16. Singtel Digital Media Pte Ltd
Development and management of on-line
internet portal
17. SingtelSat Pte Ltd
Provision of satellite capacity for
telecommunications and video
broadcasting services
Percentage of effective equity
interest held by the Group
2019
%
100
100
2018
%
100
100
18. Telecom Equipment Pte Ltd
Engaged in the sale and maintenance of
telecommunications equipment, and mobile
finance services
100
100
19. Trustwave Pte. Ltd.
Provision of information security services
and products
100
98
All companies are audited by KPMG LLP.
44.2 Significant subsidiaries incorporated in Australia
Name of subsidiary
Principal activities
1.
2.
3.
4.
Amobee ANZ Pty Ltd
Provision of internet advertising solutions
Alphawest Services Pty Ltd (1)
Provision of information technology services
Ensyst Pty Limited
Provision of cloud services
Hivint Pty Limited
Provision of information security services
and products
5.
NCSI (Australia) Pty Limited
Provision of information technology services
6. Optus Administration
Pty Limited (1)
Provision of management services to the
Optus Group
7. Optus ADSL Pty Limited (1)
Provision of carriage services
8. Optus Billing Services
Provision of billing services to the Optus Group
Pty Limited (*) (1)
9. Optus C1 Satellite Pty Limited (1)
C1 Satellite contracting party
10. Optus Content Pty Limited (1)
Provision of digital content acquisition
11. Optus Data Centres
Provision of data communication services
Pty Limited (1)
Percentage of effective equity
interest held by the Group
2019
%
100
100
100
100
100
100
100
100
100
100
100
2018
%
100
100
100
-
100
100
100
100
100
100
100
Singapore Telecommunications Limited | Annual Report 2019
242
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S
S
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Notes to the Financial Statements
For the financial year ended 31 March 2019
44.2 Significant subsidiaries incorporated in Australia (Cont’d)
Percentage of effective equity
interest held by the Group
Name of subsidiary
Principal activities
12. Optus Fixed Infrastructure
Provision of telecommunications services
Pty Limited (1)
13. Optus Insurance Services
Pty Limited
Provision of handset insurance and related
services
14. Optus Internet Pty Limited (1)
Provision of services over Hybrid Fibre Co-Axial
network and National Broadband Network
15. Optus Mobile Pty Limited (1)
Provision of mobile phone services
16. Optus Networks Pty Limited (1)
Provision of telecommunications services
17. Optus Satellite Pty Limited (1)
Provision of satellite services
18. Optus Systems Pty Limited (1)
Provision of information technology services to
the Optus Group
19. Optus Vision Media
Pty Limited (*) (2)
Provision of broadcasting related services
20. Optus Vision Pty Limited (1)
Provision of telecommunications services
21. Optus Wholesale Pty Limited (1)
Provision of services to wholesale customers
22. Prepaid Services Pty Limited (1)
Distribution of prepaid mobile products
23. Reef Networks Pty Ltd (1)
Operation and maintenance of fibre optic
network between Brisbane and Cairns
24. TWH Australia Pty. Ltd.
Provision of information security services and
products
25. Uecomm Operations
Provision of data communication services
Pty Limited (1)
26. Virgin Mobile (Australia)
Provision of mobile phone services
Pty Limited (1)
27. Vividwireless Group Limited (1)
Provision of wireless broadband services
2019
%
100
100
100
100
100
100
100
20
100
100
100
100
100
100
100
100
2018
%
100
100
100
100
100
100
100
20
100
100
100
100
98
100
100
100
All companies are audited by KPMG, 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 2016/785 (as amended) dated 30 March 2007.
(2) Optus Vision Media Pty Limited is deemed to be a subsidiary by virtue of control.
243
Notes to the Financial Statements
For the financial year ended 31 March 2019
44.3 Significant subsidiaries incorporated outside Singapore and Australia
Name of subsidiary
Principal activities
1.
Amobee EMEA Limited
2.
Amobee, Inc.
Provision of internet advertising
solutions
Provision of internet advertising
solutions
Country of
incorporation/
operation
United
Kingdom
USA
3.
4.
5.
6.
7.
8.
9.
Amobee Ltd
Research and development centre
Israel
Breach Security, Ltd.
Provision of information security
services and products
Israel
GB21 (Hong Kong)
Limited (2)
Provision of telecommunications
services and products
Hong Kong
Global Enterprise
International Malaysia
Sdn. Bhd.
HOOQ Digital (India)
Private Limited
Provision of data communication and
value added network services
Malaysia
Provision of over-the-top video
services and related activities and
services
India
HOOQ Digital Mauritius
Private Limited
Content operations and procurement Mauritius
HOOQ Digital
(Philippines) Inc.
Provision of market research, sales
and marketing support services
Philippines
10. HOOQ Digital (Thailand)
Company Limited
Provision of market research,
sales and marketing support services
Thailand
Percentage of effective equity
interest held by the Group
2019
%
100
100
100
100
-
100
65
65
65
65
2018
%
100
100
100
98
100
100
65
65
65
65
11.
Lanka Communication
Services (Pvt) Limited
Provision of telecommunications
services
Sri Lanka
82.9
82.9
12. M86 Security
International, Ltd.
Provision of information security
services and products
13. M86 Security Israel, Ltd.
Provision of information security
services and products
14. NCS Information
Technology (Suzhou)
Co., Ltd. (3)
15. NCSI (Chengdu)
Co., Ltd (3)
Software development and provision
of information technology services
Provision of information technology
research and development, and
other information technology related
services
United
Kingdom
Israel
People’s
Republic of
China
People’s
Republic of
China
100
100
100
98
98
100
100
100
Singapore Telecommunications Limited | Annual Report 2019
244
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Notes to the Financial Statements
For the financial year ended 31 March 2019
44.3 Significant subsidiaries incorporated outside Singapore and Australia (Cont’d)
Name of subsidiary
Principal activities
16. NCSI (HK) Limited
Provision of information technology
services
Country of
incorporation/
operation
Hong Kong
17. NCSI (Malaysia) Sdn Bhd
Provision of information technology
services
Malaysia
18. NCSI (Philippines) Inc.
19. NCSI (Shanghai),
Co. Ltd (3)
Provision of information technology
and communication engineering
services
Philippines
Provision of system integration,
software research and development
and other information technology
related services
People’s
Republic of
China
Percentage of effective equity
interest held by the Group
2019
%
100
100
100
2018
%
100
100
100
100
100
20. SCS Information
Technology Sdn Bhd
Consultancy, sale of computer
equipment and software including
provision of marketing, maintenance
and other related services
Brunei
100
100
21. Singtel Global
Private Limited
Provision of infotainment products and
services, and investment holding
Mauritius
22. Singtel Global India
Private Limited
Provision of telecommunications
services and all related activities
23. Singtel Innov8
Ventures LLC
Provision of investment consulting
services
India
USA
24. Singapore Telecom
Hong Kong Limited
Provision of telecommunications
services and all related activities
Hong Kong
25. Singapore Telecom
Japan Co Ltd
Provision of telecommunications
services and all related activities
Japan
100
100
100
100
100
26. Singapore Telecom
Korea Limited
Provision of telecommunications
services and all related activities
South Korea
100
27. Singapore Telecom
USA, Inc.
Provision of telecommunications,
engineering and marketing services
USA
28. Singtel (Europe) Limited
Provision of telecommunications
services and all related activities
29. Singtel Taiwan Limited
Provision of telecommunications
services and all related activities
30. STI Solutions (Shanghai)
Co., Ltd
Provision of telecommunications
services and all related activities
United
Kingdom
Taiwan
People’s
Republic of
China
100
100
100
100
100
100
100
100
100
100
100
100
100
100
245
Notes to the Financial Statements
For the financial year ended 31 March 2019
44.3 Significant subsidiaries incorporated outside Singapore and Australia (Cont’d)
Name of subsidiary
Principal activities
31. Sudong Sdn. Bhd.
Management, provision and
operations of a call centre for
telecommunications services
Country of
incorporation/
operation
Malaysia
32. Trustwave Canada, Inc.
Provision of information security
services and products
Canada
33. Trustwave Government
Solutions, LLC
Provision of information security
services and products
34. Trustwave Holdings, Inc.
Provision of information security
services and products
USA
USA
35. Trustwave Limited
Provision of information security
services and products
United
Kingdom
36. Trustwave SecureConnect
Inc.
Provision of information security
services and products
USA
37. Turn Europe (UK) Limited
Provision of internet advertising
solutions
United
Kingdom
Percentage of effective equity
interest held by the Group
2019
%
100
100
100
100
100
100
100
2018
%
100
98
98
98
98
98
100
All companies are audited by a member firm of KPMG.
Notes:
(1) The place of business of the subsidiaries are the same as their country of incorporation.
(2) The company has been disposed during the year.
(3) Subsidiary’s financial year-end is 31 December.
44.4 Associates of the Group
Name of associate
Principal activities
2359 Media
Pte. Ltd.
Development and design of mobile-
based advertising
Country of
incorporation/
operation
Singapore
Percentage of effective equity
interest held by the Group
2019
%
28.3
2018
%
28.3
APT Satellite Holdings
Limited (2)
Investment holding
Bermuda
20.3
20.3
APT Satellite International
Company Limited (2)
Investment holding
British Virgin
Islands
28.6
28.6
1.
2.
3.
4.
HOPE Technik Pte Ltd
Provision of high performance unique
engineering solutions
Singapore
21.3
21.3
Singapore Telecommunications Limited | Annual Report 2019
246
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Notes to the Financial Statements
For the financial year ended 31 March 2019
44.4 Associates of the Group (Cont’d)
Name of associate
Principal activities
5.
Intouch Holdings Public
Company Limited (3)
Investment holding
6.
Kai Square
Provision of next generation cloud-
based video surveillance services,
monitoring and analytics based on
unified platform
Country of
incorporation/
operation
Thailand
Percentage of effective equity
interest held by the Group
2019
%
21.0
2018
%
21.0
Singapore
39.2
39.2
7. MassiveImpact
International Ltd
Provision of performance based
mobile advertising platform
British Virgin
Islands
48.9
48.9
8.
NetLink Trust (4)
To own, install, operate and
maintain the passive infrastructure
for Singapore’s Next Generation
Nationwide Broadband Network
Singapore
24.8
24.8
9.
NetLink NBN Trust (4)
Investment holding
Singapore
10. Sentilla Corporation
Provision of energy management
services for data centres
USA
24.8
31.0
24.8
31.0
11. Singapore Post
Limited (4)
Operation and provision of postal,
eCommerce logistics and retail
services
Singapore
21.7
21.7
12. SESTO Robotics Pte Ltd
Provision of autonomous mobile robots Singapore
13. Viewers Choice Pte Ltd
Provision of services relating to motor
vehicle rental and retail of general
merchandise
Singapore
28.5
49.2
-
49.2
Notes:
(1) The place of business of the associates are the same as their country of incorporation.
(2) The company has been equity accounted for in the consolidated financial statements based on results ended, or as at, 31 December 2018, the financial
year-end of the company.
(3) Audited by Deloitte Touche Tohmatsu Jaiyos Audit Co. Ltd, Bangkok.
(4) Audited by Deloitte & Touche LLP, Singapore.
44.5
Joint ventures of the Group
Name of joint venture
Principal activities
1.
Acasia Communications
Sdn Bhd (3)
Provision of networking services to
business customers operating within
and outside Malaysia
Country of
incorporation/
operation
Malaysia
Percentage of effective equity
interest held by the Group
2019
%
14.3
2018
%
14.3
2.
ACPL Marine Pte Ltd
To own, operate and manage
maintenance-cum-laying cableships
Singapore
16.7
16.7
247
Notes to the Financial Statements
For the financial year ended 31 March 2019
44.5
Joint ventures of the Group (Cont’d)
Name of joint venture
Principal activities
Advanced Info Service
Public Company
Limited (4) (5)
Provision of mobile, broadband,
international telecommunications
services, call centre and data
transmission
Country of
incorporation/
operation
Thailand
Percentage of effective equity
interest held by the Group
2019
%
23.3
2018
%
23.3
ASEAN Cableship
Pte Ltd
Operation of cableships for laying,
repair and maintenance of submarine
telecommunication cables
Singapore
16.7
16.7
ASEAN Telecom Holdings
Sdn Bhd (3)
Asiacom Philippines,
Inc. (3)
Investment holding
Malaysia
14.3
14.3
Investment holding
Philippines
40.0
40.0
3.
4.
5.
6.
7.
Bharti Airtel Limited (6)
Provision of mobile, long distance
broadband and telephony
telecommunications services,
enterprise solutions, pay television and
passive infrastructure
India
39.5
39.5
8.
9.
Bharti Telecom Limited (6)
Investment holding
India
Bridge Mobile Pte. Ltd.
Provision of regional mobile services
Singapore
10. Globe Telecom, Inc. (7) (8)
Provision of mobile, broadband,
international and fixed line
telecommunications services
Philippines
48.9
34.5
21.5
48.9
34.5
21.5
11. Grid Communications
Provision of public trunk radio services Singapore
50.0
50.0
Pte. Ltd. (3)
12.
13.
Indian Ocean Cableship
Pte. Ltd.
Leasing, operating and managing of
maintenance-cum-laying cableship
Singapore
50.0
50.0
International Cableship
Pte Ltd
Ownership and chartering of
cableships
Singapore
45.0
45.0
14. Main Event Television
Pty Limited
Provision of cable television
programmes
Australia
33.3
33.3
15. Pacific Bangladesh
Telecom Limited
Provision of mobile
telecommunications, broadband and
data transmission services
Bangladesh
45.0
45.0
16. Pacific Carriage Holdings
Limited (9)
Operation and provision of
telecommunications facilities and
services utilising a network of
submarine cable systems
Bermuda
39.99
39.99
Singapore Telecommunications Limited | Annual Report 2019
248
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Notes to the Financial Statements
For the financial year ended 31 March 2019
44.5
Joint ventures of the Group (Cont’d)
Name of joint venture
Principal activities
Country of
incorporation/
operation
17. PT Telekomunikasi
Selular (10)
Provision of mobile telecommunications
and related services
Indonesia
Percentage of effective equity
interest held by the Group
2019
%
35.0
2018
%
35.0
18. Radiance Communications
Pte Ltd (3)
Sale, distribution, installation and
maintenance of telecommunications
equipment
Singapore
50.0
50.0
19. Southern Cross Cables
Holdings Limited (9) (11)
Operation and provision of
telecommunications facilities and
services utilising a network of
submarine cable systems
Bermuda
39.99
39.99
20. Telescience Singapore
Pte Ltd (12)
Sale, distribution and installation of
telecommunications and information
technology equipment and services
Singapore
-
50.0
21. VA Dynamics Sdn. Bhd. (3)
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 equity accounted for in the consolidated financial statements based on the results ended, or as at, 31 December 2018, the
financial year-end of the company.
(4) Audited by Deloitte Touche Tohmatsu Jaiyos Audit Co. Ltd, Bangkok.
(5) This represents the Group’s direct interest in AIS.
(6) Audited by Deloitte Haskins & Sells LLP, New Delhi. Bharti Airtel Limited has business operations in India, Sri Lanka, and 14 countries across Africa.
(7) Audited by Navarro Amper & Co. (a member firm of Deloitte Touche Tohmatsu Limited).
(8) The Group has a 47.1% 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.
(12) The company has been disposed during the year.
249
Interested Person Transactions
The aggregate value of all interested person transactions during the financial year ended 31 March 2019 (excluding
transactions less than S$100,000) were as follows -
Name of interested person
Ascendas - Singbridge Pte Ltd
Certis CISCO Auxiliary Police Force Pte Ltd
Ensign InfoSecurity (Systems) Pte Ltd
Grid Communications Pte. Ltd.
HarbourFront Centre Pte Ltd
Human Capital Leadership Institute
Mediacorp Pte Ltd
Mediacorp VizPro International Pte Ltd
Nexwave Technologies Pte Ltd
Power Gas Ltd
PSA Corporation Ltd
Radiance Communications Pte Ltd
SP Digital Pte. Ltd.
ST Electronics (Info-Security) Pte Ltd
ST Engineering Electronics Ltd.
ST Electronics (Satcom & Sensor Systems) Pte Ltd
StarHub Cable Vision Ltd
StarHub Ltd
StarHub Mobile Pte Ltd
Surbana Jurong Consultants Pte Ltd
Synergy FMI Pte Ltd
S$ Mil
0.2
8.8
0.1
0.3
0.2
0.1
16.0
0.2
0.1
0.3
0.3
2.5
0.3
3.6
5.9
0.3
36.6
7.7
1.7
1.4
0.2
86.8
Singapore Telecommunications Limited | Annual Report 2019
250
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Additional Information on
Directors Seeking Re-election
Name of Director
Christina Hon Kwee Fong
(Mrs Christina Ong)
Simon Claude Israel
Date of appointment
7 April 2014
Date of last re-appointment
(if applicable)
Age
29 July 2016
67
Country of principal residence
Singapore
4 July 2003 (as Director)
29 July 2011 (as Chairman)
29 July 2016
66
Singapore
The Board’s comments on this
re-election/appointment
After reviewing the recommendation
of the Corporate Governance
and Nominations Committee and
Mrs Ong’s qualifications and
experience (as set out below), the
Board has confirmed Mrs Ong’s
independence and approved that
Mrs Ong stands for re-election as a
non-executive/independent Director.
Mrs Ong will, upon re-election,
continue to serve as a member of
the Corporate Governance and
Nominations Committee and the
Audit Committee.
After reviewing the recommendation
of the Corporate Governance and
Nominations Committee and Mr Israel’s
qualifications and experience (as set out
below), the Board has approved that
Mr Israel stands for re-election as a non-
executive and non-independent Director.
Mr Israel will, upon re-election, continue
to serve as Chairman of the Board,
Chairman of the Finance and Investment
Committee, and a member of the
Corporate Governance and Nominations
Committee, the Executive Resource and
Compensation Committee and the Optus
Advisory Committee.
Whether appointment is executive,
and if so, the area of responsibility
Non-executive
Non-executive
Job title (e.g. Lead ID, AC Chairman,
AC Member etc.)
Non-executive and independent
Director
Non-executive and non-independent
Director
Member of the Corporate Governance
and Nominations Committee
Member of the Audit Committee
Chairman of the Board
Chairman of the Finance and
Investment Committee
Member of the Corporate Governance
and Nominations Committee
Member of the Executive Resource and
Compensation Committee
Member of the Optus Advisory
Committee
Diploma in Business Studies from
The University of the South Pacific
Professional qualifications
Bachelor of Laws (Second Upper
Class Honours) from the University
of Singapore
Member of the Law Society of
Singapore and the International Bar
Association
251
Additional Information on
Directors Seeking Re-election
Dominic Stephen Barton
Bradley Joseph Horowitz
Gail Patricia Kelly
25 March 2019
26 December 2018
26 December 2018
Not applicable
Not applicable
Not applicable
56
Canada
54
United States of America
63
Australia
After reviewing the recommendation
of the Corporate Governance and
Nominations Committee and
Mr Barton’s qualifications and
experience (as set out below), the
Board has confirmed Mr Barton’s
independence and approved that
Mr Barton stands for re-election as a
non-executive/independent Director.
After reviewing the recommendation
of the Corporate Governance
and Nominations Committee and
Mr Horowitz’s qualifications and
experience (as set out below), the
Board has confirmed Mr Horowitz’s
independence and approved that
Mr Horowitz stands for re-election as a
non-executive/independent Director.
After reviewing the recommendation
of the Corporate Governance and
Nominations Committee and
Mrs Kelly’s qualifications and
experience (as set out below), the
Board has confirmed Mrs Kelly’s
independence and approved that
Mrs Kelly stands for re-election as a
non-executive/independent Director.
Mr Barton will, upon re-election,
continue to serve as a member of
the Finance and Investment
Committee and the Risk Committee.
Mr Horowitz will, upon re-election,
continue to serve as a member of the
Finance and Investment Committee
and the Technology Advisory Panel.
Mrs Kelly will, upon re-election,
continue to serve as a member of the
Executive Resource and Compensation
Committee, the Audit Committee and
the Optus Advisory Committee.
Non-executive
Non-executive
Non-executive
Non-executive and independent
Director
Member of the Finance and
Investment Committee
Member of the Risk Committee
Non-executive and independent
Director
Non-executive and independent
Director
Member of the Finance and
Investment Committee
Member of the Executive Resource
and Compensation Committee
Member of the Technology Advisory
Panel
Member of the Audit Committee
Member of the Optus Advisory
Committee
Bachelor of Arts (Honours) in
Economics from the University of
British Columbia
Master of Philosophy in Economics
from Oxford University
Bachelor in Computer Science from
the University of Michigan
Masters in Media Science from the
Media Lab at the Massachusetts
Institute of Technology
Bachelor of Arts and Higher Diploma
of Education from the University of
Cape Town
Masters of Business Administration
(with Distinction) from the University
of the Witwatersrand
Honorary Doctorate of Business from
the University of New South Wales,
Macquarie University and Charles
Sturt University
Honorary Doctorate of Science in
Economics from the University of Sydney
Singapore Telecommunications Limited | Annual Report 2019
252
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Additional Information on
Directors Seeking Re-election
Name of Director
Christina Hon Kwee Fong
(Mrs Christina Ong)
Simon Claude Israel
Working experience and
occupation(s) during the past
10 years
Temasek Holdings (Private) Limited
2006 to 2011
Executive Director and President
Allen & Gledhill LLP
1987 to present
Mrs Ong joined Allen & Gledhill LLP
in 1987 as a Partner. She is now the
Co-Chairman and Senior Partner, a
member of EXCO and Co-Head of
the Financial Services Department.
Mrs Ong currently also serves as a
Director/Member/Trustee of various
entities including those which are
owned by Allen & Gledhill LLP. Please
refer to her present directorships/
principal commitments provided
below for further information.
Shareholding interest in the listed
issuer and its subsidiaries
No
Any relationship (including immediate
family relationships) with any existing
director, existing executive officer, the
issuer and/or substantial shareholder
of the listed issuer or of any of its
principal subsidiaries
Conflict of interests (including any
competing business)
Undertaking (in the format set out in
Appendix 7.7) under Rule 720(1) has
been submitted to the listed issuer
No
No
Yes
Yes
1,019,593 ordinary shares in Singapore
Telecommunications Limited
(Direct interest)
1,360 ordinary shares in Singapore
Telecommunications Limited
(Deemed interest)
No
No
Yes
Other Principal Commitments* Including Directorships
* “Principal Commitments” has the same meaning as defined in the Code of Corporate Governance 2018.
Past (for the last 5 years)
Other principal commitments:
(cid:843)(cid:912) (cid:87)(cid:312)(cid:335)(cid:306)(cid:271)(cid:354)(cid:342)(cid:357)(cid:296)(cid:912)(cid:93)(cid:342)(cid:373)(cid:357)(cid:312)(cid:361)(cid:334)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:912)
(cid:843)(cid:912) (cid:93)(cid:357)(cid:271)(cid:312)(cid:329)(cid:286)(cid:329)(cid:271)(cid:399)(cid:296)(cid:357)(cid:912)(cid:34)(cid:342)(cid:373)(cid:335)(cid:292)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:56)(cid:368)(cid:292)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)
Other listed company:
(cid:843)(cid:912) (cid:16)(cid:271)(cid:354)(cid:312)(cid:368)(cid:271)(cid:56)(cid:271)(cid:335)(cid:292)(cid:912)(cid:56)(cid:312)(cid:334)(cid:312)(cid:368)(cid:296)(cid:292)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)
Other principal commitment:
(cid:843)(cid:912) (cid:87)(cid:368)(cid:296)(cid:388)(cid:271)(cid:357)(cid:292)(cid:361)(cid:310)(cid:312)(cid:354)(cid:912)(cid:1)(cid:361)(cid:312)(cid:271)(cid:912)(cid:16)(cid:296)(cid:335)(cid:368)(cid:357)(cid:296)(cid:912)(cid:80)(cid:368)(cid:296)(cid:850)(cid:912)(cid:56)(cid:368)(cid:292)(cid:850)(cid:845)(cid:912)
Director
253
Additional Information on
Directors Seeking Re-election
Dominic Stephen Barton
Bradley Joseph Horowitz
Gail Patricia Kelly
McKinsey & Company
2009 to present
Senior Partner, former Global
Managing Partner
Google, Inc.
2008 to present
Vice President of Product
Management
Yahoo, Inc.
2004 to 2008
Vice President of Advanced
Development
Westpac Banking Corporation
2008 to 2015
Group Chief Executive Officer and
Managing Director
No
No
No
Yes
Other principal commitment:
(cid:843)(cid:912) (cid:61)(cid:287)(cid:54)(cid:312)(cid:335)(cid:361)(cid:296)(cid:394)(cid:912)(cid:1003)(cid:912)(cid:16)(cid:342)(cid:334)(cid:354)(cid:271)(cid:335)(cid:394)(cid:845)(cid:912)(cid:35)(cid:329)(cid:342)(cid:286)(cid:271)(cid:329)(cid:912)
Managing Partner
No
No
No
Yes
Nil
No
No
No
Yes
Other listed companies:
(cid:843)(cid:912) (cid:113)(cid:342)(cid:342)(cid:329)(cid:388)(cid:342)(cid:357)(cid:368)(cid:310)(cid:361)(cid:912)(cid:39)(cid:342)(cid:329)(cid:292)(cid:312)(cid:335)(cid:306)(cid:361)(cid:912)(cid:56)(cid:312)(cid:334)(cid:312)(cid:368)(cid:296)(cid:292)(cid:845)(cid:912)
South Africa, Director
(cid:843)(cid:912) (cid:113)(cid:296)(cid:361)(cid:368)(cid:354)(cid:271)(cid:287)(cid:912)(cid:15)(cid:271)(cid:335)(cid:326)(cid:312)(cid:335)(cid:306)(cid:912)(cid:16)(cid:342)(cid:357)(cid:354)(cid:342)(cid:357)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:845)(cid:912)
Australia, Executive Director (in role
as Group Chief Executive Officer
and Managing Director)
Other principal commitments:
(cid:843)(cid:912) (cid:15)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:16)(cid:342)(cid:373)(cid:335)(cid:287)(cid:312)(cid:329)(cid:912)(cid:342)(cid:305)(cid:912)(cid:1)(cid:373)(cid:361)(cid:368)(cid:357)(cid:271)(cid:329)(cid:312)(cid:271)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)
(cid:843)(cid:912) (cid:16)(cid:342)(cid:373)(cid:335)(cid:368)(cid:357)(cid:394)(cid:912)(cid:83)(cid:342)(cid:271)(cid:292)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)
(cid:843)(cid:912) (cid:21)(cid:271)(cid:387)(cid:312)(cid:292)(cid:912)(cid:52)(cid:342)(cid:335)(cid:296)(cid:361)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)
(cid:843)(cid:912) (cid:34)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:312)(cid:271)(cid:329)(cid:912)(cid:61)(cid:271)(cid:357)(cid:326)(cid:296)(cid:368)(cid:361)(cid:912)(cid:34)(cid:342)(cid:373)(cid:335)(cid:292)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)
Children, Director
(cid:843)(cid:912) (cid:68)(cid:361)(cid:312)(cid:357)(cid:312)(cid:361)(cid:912)(cid:39)(cid:342)(cid:329)(cid:292)(cid:312)(cid:335)(cid:306)(cid:361)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)(cid:912)
(cid:843)(cid:912) (cid:112)(cid:296)(cid:329)(cid:271)(cid:912)(cid:41)(cid:335)(cid:387)(cid:296)(cid:361)(cid:368)(cid:334)(cid:296)(cid:335)(cid:368)(cid:361)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)
Singapore Telecommunications Limited | Annual Report 2019
254
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Additional Information on
Directors Seeking Re-election
Name of Director
Present
Christina Hon Kwee Fong
(Mrs Christina Ong)
Simon Claude Israel
Other listed companies:
(cid:843)(cid:912) (cid:39)(cid:342)(cid:335)(cid:306)(cid:326)(cid:342)(cid:335)(cid:306)(cid:912)(cid:56)(cid:271)(cid:335)(cid:292)(cid:912)(cid:39)(cid:342)(cid:329)(cid:292)(cid:312)(cid:335)(cid:306)(cid:361)(cid:912)(cid:56)(cid:312)(cid:334)(cid:312)(cid:368)(cid:296)(cid:292)(cid:845)(cid:912)
Other listed companies:
(cid:843)(cid:912) (cid:34)(cid:342)(cid:335)(cid:368)(cid:296)(cid:357)(cid:357)(cid:271)(cid:912)(cid:16)(cid:342)(cid:891)(cid:342)(cid:354)(cid:296)(cid:357)(cid:271)(cid:368)(cid:312)(cid:387)(cid:296)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:912)
Director
(cid:843)(cid:912) (cid:68)(cid:387)(cid:296)(cid:357)(cid:361)(cid:296)(cid:271)(cid:891)(cid:16)(cid:310)(cid:312)(cid:335)(cid:296)(cid:361)(cid:296)(cid:912)(cid:15)(cid:271)(cid:335)(cid:326)(cid:312)(cid:335)(cid:306)(cid:912)
Corporation Limited, Director
(cid:843)(cid:912) (cid:87)(cid:41)(cid:1)(cid:912)(cid:25)(cid:335)(cid:306)(cid:312)(cid:335)(cid:296)(cid:296)(cid:357)(cid:312)(cid:335)(cid:306)(cid:912)(cid:16)(cid:342)(cid:334)(cid:354)(cid:271)(cid:335)(cid:394)(cid:912)(cid:56)(cid:312)(cid:334)(cid:312)(cid:368)(cid:296)(cid:292)(cid:845)(cid:912)
Director
Other principal commitments:
(cid:843)(cid:912) (cid:1)(cid:15)(cid:34)(cid:912)(cid:87)(cid:312)(cid:335)(cid:306)(cid:271)(cid:354)(cid:342)(cid:357)(cid:296)(cid:912)(cid:15)(cid:342)(cid:335)(cid:292)(cid:912)(cid:41)(cid:335)(cid:292)(cid:296)(cid:393)(cid:912)(cid:34)(cid:373)(cid:335)(cid:292)(cid:845)(cid:912)
Limited, Director
(cid:843)(cid:912) (cid:87)(cid:312)(cid:335)(cid:306)(cid:271)(cid:354)(cid:342)(cid:357)(cid:296)(cid:912)(cid:80)(cid:342)(cid:361)(cid:368)(cid:912)(cid:56)(cid:312)(cid:334)(cid:312)(cid:368)(cid:296)(cid:292)(cid:845)(cid:912)(cid:16)(cid:310)(cid:271)(cid:312)(cid:357)(cid:334)(cid:271)(cid:335)
Other principal commitments:
(cid:843)(cid:912) (cid:35)(cid:342)(cid:387)(cid:296)(cid:357)(cid:335)(cid:312)(cid:335)(cid:306)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:912)(cid:342)(cid:305)(cid:912)(cid:56)(cid:296)(cid:296)(cid:912)(cid:54)(cid:373)(cid:271)(cid:335)(cid:912)(cid:119)(cid:296)(cid:388)(cid:912)
School of Public Policy, Member
(cid:843)(cid:912) (cid:87)(cid:368)(cid:296)(cid:388)(cid:271)(cid:357)(cid:292)(cid:361)(cid:310)(cid:312)(cid:354)(cid:912)(cid:1)(cid:361)(cid:312)(cid:271)(cid:912)(cid:16)(cid:296)(cid:335)(cid:368)(cid:357)(cid:296)(cid:912)(cid:16)(cid:56)(cid:35)(cid:912)
Limited, Director
Member of the Supervisory Committee
(cid:843)(cid:912) (cid:113)(cid:296)(cid:361)(cid:368)(cid:354)(cid:271)(cid:287)(cid:904)(cid:361)(cid:912)(cid:1)(cid:361)(cid:312)(cid:271)(cid:912)(cid:1)(cid:292)(cid:387)(cid:312)(cid:361)(cid:342)(cid:357)(cid:394)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:845)(cid:912)
(cid:843)(cid:912) (cid:1)(cid:329)(cid:329)(cid:296)(cid:335)(cid:912)(cid:1003)(cid:912)(cid:35)(cid:329)(cid:296)(cid:292)(cid:310)(cid:312)(cid:329)(cid:329)(cid:912)(cid:56)(cid:56)(cid:80)(cid:845)(cid:912)(cid:16)(cid:342)(cid:891)(cid:16)(cid:310)(cid:271)(cid:312)(cid:357)(cid:334)(cid:271)(cid:335)(cid:912)(cid:1003)(cid:912)
Member
Senior Partner
(cid:843)(cid:912) (cid:1)(cid:329)(cid:329)(cid:296)(cid:335)(cid:912)(cid:1003)(cid:912)(cid:35)(cid:329)(cid:296)(cid:292)(cid:310)(cid:312)(cid:329)(cid:329)(cid:912)(cid:83)(cid:296)(cid:306)(cid:373)(cid:329)(cid:271)(cid:368)(cid:342)(cid:357)(cid:394)(cid:912)(cid:1003)(cid:912)
Compliance Pte. Ltd., Director
(cid:843)(cid:912) (cid:16)(cid:271)(cid:368)(cid:271)(cid:329)(cid:312)(cid:361)(cid:368)(cid:912)(cid:1)(cid:292)(cid:387)(cid:312)(cid:361)(cid:342)(cid:357)(cid:394)(cid:912)(cid:80)(cid:271)(cid:335)(cid:296)(cid:329)(cid:845)(cid:912)(cid:61)(cid:296)(cid:334)(cid:286)(cid:296)(cid:357)
(cid:843)(cid:912) (cid:16)(cid:342)(cid:357)(cid:354)(cid:342)(cid:357)(cid:271)(cid:368)(cid:296)(cid:912)(cid:35)(cid:342)(cid:387)(cid:296)(cid:357)(cid:335)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:1)(cid:292)(cid:387)(cid:312)(cid:361)(cid:342)(cid:357)(cid:394)(cid:912)
Committee, Member
(cid:843)(cid:912) (cid:25)(cid:271)(cid:361)(cid:368)(cid:296)(cid:357)(cid:335)(cid:912)(cid:21)(cid:296)(cid:387)(cid:296)(cid:329)(cid:342)(cid:354)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:39)(cid:342)(cid:329)(cid:292)(cid:312)(cid:335)(cid:306)(cid:361)(cid:912)
Pte. Ltd., Director
(cid:843)(cid:912) (cid:25)(cid:271)(cid:361)(cid:368)(cid:296)(cid:357)(cid:335)(cid:912)(cid:21)(cid:296)(cid:387)(cid:296)(cid:329)(cid:342)(cid:354)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)(cid:80)(cid:357)(cid:312)(cid:387)(cid:271)(cid:368)(cid:296)(cid:912)(cid:56)(cid:312)(cid:334)(cid:312)(cid:368)(cid:296)(cid:292)(cid:845)(cid:912)
Director
(cid:843)(cid:912) (cid:25)(cid:354)(cid:312)(cid:334)(cid:296)(cid:368)(cid:310)(cid:296)(cid:373)(cid:361)(cid:912)(cid:56)(cid:368)(cid:292)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)
(cid:843)(cid:912) (cid:93)(cid:310)(cid:296)(cid:912)(cid:87)(cid:368)(cid:296)(cid:354)(cid:310)(cid:296)(cid:335)(cid:912)(cid:1)(cid:850)(cid:912)(cid:87)(cid:287)(cid:310)(cid:388)(cid:271)(cid:357)(cid:399)(cid:334)(cid:271)(cid:335)(cid:912)(cid:87)(cid:287)(cid:310)(cid:342)(cid:329)(cid:271)(cid:357)(cid:361)(cid:912)
Trust, Trustee
No
No
Information required
Disclose the following matters concerning an appointment of director.
No
No
(a) Whether at any time during the
last 10 years, an application or a
petition under any bankruptcy law
of any jurisdiction was filed against
him or against a partnership of
which he was a partner at the time
when he was a partner or at any
time within 2 years from the date
he ceased to be a partner?
(b) Whether at any time during the last
10 years, an application or a petition
under any law of any jurisdiction
was filed against an entity (not being
a partnership) of which he was a
director or an equivalent person or
a key executive, at the time when
he was a director or an equivalent
person or a key executive of that
entity or at any time within 2 years
from the date he ceased to be a
director or an equivalent person or
a key executive of that entity, for the
winding up or dissolution of that entity
or, where that entity is the trustee of a
business trust, that business trust, on
the ground of insolvency?
255
Additional Information on
Directors Seeking Re-election
Dominic Stephen Barton
Bradley Joseph Horowitz
Gail Patricia Kelly
Other listed company:
(cid:843)(cid:912) (cid:93)(cid:296)(cid:287)(cid:326)(cid:912)(cid:83)(cid:296)(cid:361)(cid:342)(cid:373)(cid:357)(cid:287)(cid:296)(cid:361)(cid:912)(cid:56)(cid:312)(cid:334)(cid:312)(cid:368)(cid:296)(cid:292)(cid:845)(cid:912)(cid:16)(cid:310)(cid:271)(cid:312)(cid:357)(cid:334)(cid:271)(cid:335)(cid:912)
Other principal commitments:
(cid:843)(cid:912) (cid:35)(cid:342)(cid:342)(cid:306)(cid:329)(cid:296)(cid:845)(cid:912)(cid:41)(cid:335)(cid:287)(cid:850)(cid:845)(cid:912)(cid:112)(cid:312)(cid:287)(cid:296)(cid:912)(cid:80)(cid:357)(cid:296)(cid:361)(cid:312)(cid:292)(cid:296)(cid:335)(cid:368)(cid:912)(cid:342)(cid:305)(cid:912)
Other principal commitments:
(cid:843)(cid:912) (cid:1)(cid:329)(cid:329)(cid:312)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)(cid:35)(cid:312)(cid:357)(cid:329)(cid:361)(cid:904)(cid:912)(cid:87)(cid:287)(cid:310)(cid:342)(cid:342)(cid:329)(cid:361)(cid:912)(cid:1)(cid:373)(cid:361)(cid:368)(cid:357)(cid:271)(cid:329)(cid:271)(cid:361)(cid:312)(cid:271)(cid:845)(cid:912)
Other principal commitments:
(cid:843)(cid:912) (cid:41)(cid:335)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:271)(cid:329)(cid:912)(cid:41)(cid:335)(cid:368)(cid:296)(cid:306)(cid:357)(cid:271)(cid:368)(cid:296)(cid:292)(cid:912)(cid:83)(cid:296)(cid:354)(cid:342)(cid:357)(cid:368)(cid:312)(cid:335)(cid:306)(cid:912)
Council, Chairman
(cid:843)(cid:912) (cid:61)(cid:287)(cid:54)(cid:312)(cid:335)(cid:361)(cid:296)(cid:394)(cid:912)(cid:1003)(cid:912)(cid:16)(cid:342)(cid:334)(cid:354)(cid:271)(cid:335)(cid:394)(cid:845)(cid:912)(cid:87)(cid:296)(cid:335)(cid:312)(cid:342)(cid:357)(cid:912)(cid:80)(cid:271)(cid:357)(cid:368)(cid:335)(cid:296)(cid:357)
(cid:843)(cid:912) (cid:68)(cid:329)(cid:271)(cid:394)(cid:271)(cid:335)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:845)(cid:912)(cid:61)(cid:296)(cid:334)(cid:286)(cid:296)(cid:357)(cid:912)(cid:342)(cid:305)(cid:912)(cid:368)(cid:310)(cid:296)(cid:912)
Corporate Board
(cid:843)(cid:912) (cid:98)(cid:335)(cid:312)(cid:387)(cid:296)(cid:357)(cid:361)(cid:312)(cid:368)(cid:394)(cid:912)(cid:342)(cid:305)(cid:912)(cid:113)(cid:271)(cid:368)(cid:296)(cid:357)(cid:329)(cid:342)(cid:342)(cid:845)(cid:912)(cid:16)(cid:310)(cid:271)(cid:335)(cid:287)(cid:296)(cid:329)(cid:329)(cid:342)(cid:357)
(cid:843)(cid:912) (cid:16)(cid:271)(cid:335)(cid:271)(cid:292)(cid:312)(cid:271)(cid:335)(cid:912)(cid:61)(cid:312)(cid:335)(cid:312)(cid:361)(cid:368)(cid:296)(cid:357)(cid:912)(cid:342)(cid:305)(cid:912)(cid:34)(cid:312)(cid:335)(cid:271)(cid:335)(cid:287)(cid:296)(cid:904)(cid:361)(cid:912)
Advisory Council on Economic
Growth, Chairman
(cid:843)(cid:912) (cid:87)(cid:296)(cid:342)(cid:373)(cid:329)(cid:912)(cid:41)(cid:335)(cid:368)(cid:296)(cid:357)(cid:335)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:271)(cid:329)(cid:912)(cid:15)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:1)(cid:292)(cid:387)(cid:312)(cid:361)(cid:342)(cid:357)(cid:394)(cid:912)
Council, Chairman
(cid:843)(cid:912) (cid:15)(cid:357)(cid:342)(cid:342)(cid:326)(cid:312)(cid:335)(cid:306)(cid:361)(cid:912)(cid:41)(cid:335)(cid:361)(cid:368)(cid:312)(cid:368)(cid:373)(cid:368)(cid:312)(cid:342)(cid:335)(cid:845)(cid:912)(cid:93)(cid:357)(cid:373)(cid:361)(cid:368)(cid:296)(cid:296)
(cid:843)(cid:912) (cid:87)(cid:312)(cid:335)(cid:306)(cid:271)(cid:354)(cid:342)(cid:357)(cid:296)(cid:912)(cid:25)(cid:287)(cid:342)(cid:335)(cid:342)(cid:334)(cid:312)(cid:287)(cid:912)(cid:21)(cid:296)(cid:387)(cid:296)(cid:329)(cid:342)(cid:354)(cid:334)(cid:296)(cid:335)(cid:368)(cid:912)
Board’s International Advisory
Council, Member
(cid:843)(cid:912) (cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:361)(cid:912)(cid:342)(cid:305)(cid:912)(cid:61)(cid:296)(cid:334)(cid:342)(cid:357)(cid:312)(cid:271)(cid:329)(cid:912)(cid:87)(cid:329)(cid:342)(cid:271)(cid:335)(cid:912)(cid:54)(cid:296)(cid:368)(cid:368)(cid:296)(cid:357)(cid:312)(cid:335)(cid:306)(cid:912)
in New York City, Member
(cid:843)(cid:912) (cid:1)(cid:361)(cid:312)(cid:271)(cid:912)(cid:80)(cid:271)(cid:287)(cid:312)(cid:305)(cid:312)(cid:287)(cid:912)(cid:34)(cid:342)(cid:373)(cid:335)(cid:292)(cid:271)(cid:368)(cid:312)(cid:342)(cid:335)(cid:912)(cid:342)(cid:305)(cid:912)(cid:16)(cid:271)(cid:335)(cid:271)(cid:292)(cid:271)(cid:845)(cid:912)
Member
Product Management
(cid:843)(cid:912) (cid:41)(cid:361)(cid:361)(cid:373)(cid:373)(cid:845)(cid:912)(cid:41)(cid:335)(cid:287)(cid:845)(cid:912)(cid:21)(cid:312)(cid:357)(cid:296)(cid:287)(cid:368)(cid:342)(cid:357)
(cid:843)(cid:912) (cid:61)(cid:271)(cid:361)(cid:361)(cid:271)(cid:287)(cid:310)(cid:373)(cid:361)(cid:296)(cid:368)(cid:368)(cid:361)(cid:912)(cid:41)(cid:335)(cid:361)(cid:368)(cid:312)(cid:368)(cid:373)(cid:368)(cid:296)(cid:912)(cid:342)(cid:305)(cid:912)
Patron
(cid:843)(cid:912) (cid:1)(cid:373)(cid:361)(cid:368)(cid:357)(cid:271)(cid:329)(cid:312)(cid:271)(cid:335)(cid:912)(cid:80)(cid:310)(cid:312)(cid:329)(cid:271)(cid:335)(cid:368)(cid:310)(cid:357)(cid:342)(cid:354)(cid:312)(cid:287)(cid:912)(cid:87)(cid:296)(cid:357)(cid:387)(cid:312)(cid:287)(cid:296)(cid:361)(cid:845)(cid:912)
Director
Technology, Member of the Visiting
Committee of Media Lab
(cid:843)(cid:912) (cid:15)(cid:357)(cid:296)(cid:368)(cid:368)(cid:342)(cid:335)(cid:912)(cid:113)(cid:342)(cid:342)(cid:292)(cid:361)(cid:912)(cid:16)(cid:342)(cid:334)(cid:334)(cid:312)(cid:368)(cid:368)(cid:296)(cid:296)(cid:845)(cid:912)(cid:61)(cid:296)(cid:334)(cid:286)(cid:296)(cid:357)
(cid:843)(cid:912) (cid:15)(cid:373)(cid:361)(cid:312)(cid:335)(cid:296)(cid:361)(cid:361)(cid:912)(cid:16)(cid:342)(cid:373)(cid:335)(cid:287)(cid:312)(cid:329)(cid:912)(cid:342)(cid:305)(cid:912)(cid:1)(cid:373)(cid:361)(cid:368)(cid:357)(cid:271)(cid:329)(cid:312)(cid:271)(cid:845)(cid:912)
Honorary Member
(cid:843)(cid:912) (cid:16)(cid:1)(cid:83)(cid:25)(cid:912)(cid:1)(cid:373)(cid:361)(cid:368)(cid:357)(cid:271)(cid:329)(cid:312)(cid:271)(cid:845)(cid:912)(cid:1)(cid:334)(cid:286)(cid:271)(cid:361)(cid:361)(cid:271)(cid:292)(cid:342)(cid:357)(cid:912)(cid:305)(cid:342)(cid:357)(cid:912)
Women’s Empowerment
(cid:843)(cid:912) (cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:912)(cid:342)(cid:305)(cid:912)(cid:93)(cid:310)(cid:312)(cid:357)(cid:368)(cid:394)(cid:845)(cid:912)(cid:61)(cid:296)(cid:334)(cid:286)(cid:296)(cid:357)
(cid:843)(cid:912) (cid:61)(cid:287)(cid:54)(cid:312)(cid:335)(cid:361)(cid:296)(cid:394)(cid:912)(cid:1)(cid:292)(cid:387)(cid:312)(cid:361)(cid:342)(cid:357)(cid:394)(cid:912)(cid:16)(cid:342)(cid:373)(cid:335)(cid:287)(cid:312)(cid:329)(cid:845)(cid:912)(cid:61)(cid:296)(cid:334)(cid:286)(cid:296)(cid:357)
(cid:843)(cid:912) (cid:80)(cid:56)(cid:373)(cid:87)(cid:912)(cid:1)(cid:329)(cid:329)(cid:312)(cid:271)(cid:335)(cid:287)(cid:296)(cid:912)(cid:1)(cid:292)(cid:387)(cid:312)(cid:361)(cid:342)(cid:357)(cid:394)(cid:912)(cid:15)(cid:342)(cid:271)(cid:357)(cid:292)(cid:845)(cid:912)
Member
(cid:843)(cid:912) (cid:98)(cid:15)(cid:87)(cid:912)(cid:1)(cid:35)(cid:912)(cid:271)(cid:335)(cid:292)(cid:912)(cid:98)(cid:15)(cid:87)(cid:912)(cid:35)(cid:357)(cid:342)(cid:373)(cid:354)(cid:912)(cid:1)(cid:35)(cid:845)(cid:912)(cid:87)(cid:296)(cid:335)(cid:312)(cid:342)(cid:357)(cid:912)
Global Adviser
(cid:843)(cid:912) (cid:98)(cid:335)(cid:312)(cid:387)(cid:296)(cid:357)(cid:361)(cid:312)(cid:368)(cid:394)(cid:912)(cid:342)(cid:305)(cid:912)(cid:62)(cid:296)(cid:388)(cid:912)(cid:87)(cid:342)(cid:373)(cid:368)(cid:310)(cid:912)(cid:113)(cid:271)(cid:329)(cid:296)(cid:361)(cid:845)(cid:912)
Adjunct Professor
No
No
No
No
No
No
Singapore Telecommunications Limited | Annual Report 2019
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A
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P
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A
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F
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N
Additional Information on
Directors Seeking Re-election
Name of Director
Christina Hon Kwee Fong
(Mrs Christina Ong)
Simon Claude Israel
No
No
No
No
No
No
No
No
No
(c) Whether there is any unsatisfied
judgment against him?
(d) Whether he has ever been
convicted of any offence, in
Singapore or elsewhere, involving
fraud or dishonesty which is
punishable with imprisonment, or
has been the subject of any criminal
proceedings (including any pending
criminal proceedings of which he is
aware) for such purpose?
(e) Whether he has ever been
convicted of any offence, in
Singapore or elsewhere, involving
a breach of any law or regulatory
requirement that relates to the
securities or futures industry in
Singapore or elsewhere, or has
been the subject of any criminal
proceedings (including any pending
criminal proceedings of which he is
aware) for such breach?
(f) Whether at any time during the last
No
10 years, judgment has been entered
against him in any civil proceedings
in Singapore or elsewhere involving
a breach of any law or regulatory
requirement that relates to the
securities or futures industry in
Singapore or elsewhere, or a
finding of fraud, misrepresentation
or dishonesty on his part, or he
has been the subject of any civil
proceedings (including any pending
civil proceedings of which he is
aware) involving an allegation
of fraud, misrepresentation or
dishonesty on his part?
(g) Whether he has ever been convicted
in Singapore or elsewhere of any
offence in connection with the
formation or management of any
entity or business trust?
No
(h) Whether he has ever been
No
disqualified from acting as a director
or an equivalent person of any entity
(including the trustee of a business
trust), or from taking part directly or
indirectly in the management of any
entity or business trust?
257
Additional Information on
Directors Seeking Re-election
Dominic Stephen Barton
Bradley Joseph Horowitz
Gail Patricia Kelly
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Singapore Telecommunications Limited | Annual Report 2019
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A
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A
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A
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A
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N
A
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F
O
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N
Additional Information on
Directors Seeking Re-election
Name of Director
Christina Hon Kwee Fong
(Mrs Christina Ong)
Simon Claude Israel
No
(i) Whether he has ever been the
subject of any order, judgment
or ruling of any court, tribunal or
governmental body, permanently
or temporarily enjoining him from
engaging in any type of business
practice or activity?
(j) Whether he has ever, to his
knowledge, been concerned with
the management or conduct, in
Singapore or elsewhere, of the
affairs of:–
(i) any corporation which has been
investigated for a breach of any
law or regulatory requirement
governing corporations in
Singapore or elsewhere; or
No
(ii) any entity (not being a
No
corporation) which has been
investigated for a breach for any
law or regulatory requirement
governing such entities in
Singapore or elsewhere; or
(iii) any business trust which has
No
been investigated for a breach
of any law or regulatory
requirement governing
business trusts in Singapore
or elsewhere; or
(iv) any entity or business trust
No
which has been investigated
for a breach of any law or
regulatory requirement that
relates to the securities or
futures industry in Singapore
or elsewhere,
No
No
No
No
No
in connection with any matter
occurring or arising during that
period when he was so concerned
with the entity or business trust?
(k) Whether he has been the subject
of any current or past investigation
or disciplinary proceedings, or has
been reprimanded or issued any
warning, by the Monetary Authority
of Singapore or any other regulatory
authority, exchange, professional
body or government agency,
whether in Singapore or elsewhere?
259
Yes
- An enquiry by the Law Society of
No
Singapore in 1986/1987 of a complaint
which was dismissed by the Law
Society of Singapore.
Additional Information on
Directors Seeking Re-election
Dominic Stephen Barton
Bradley Joseph Horowitz
Gail Patricia Kelly
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Note:
The information in this section is as of 15 May 2019.
Singapore Telecommunications Limited | Annual Report 2019
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A
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N
Shareholder Information
As at 27 May 2019
ORDINARY SHARES
Number of ordinary shareholders
328,719
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 or subsidiary holdings (1))
Note:
(1) “Subsidiary holdings” is defined in the Listing Manual to mean shares referred to in Sections 21(4), 21(4B), 21(6A) and 21(6C) of the Companies Act,
Chapter 50 of Singapore.
SUBSTANTIAL SHAREHOLDERS
Temasek Holdings (Private) Limited
8,132,818,602
440,338,370 (1)
No. of shares
Direct
interest
Deemed
interest
Note:
(1) Deemed through interests of subsidiaries and associated companies.
MAJOR SHAREHOLDERS LIST – TOP 20
No.
Name
Temasek Holdings (Private) Limited
Citibank Nominees Singapore Pte Ltd
DBS Nominees (Private) Limited
DBSN Services Pte Ltd
Central Provident Fund Board
HSBC (Singapore) Nominees Pte Ltd
Atrium Investments Pte Ltd
Raffles Nominees (Pte) Limited
BPSS Nominees Singapore (Pte.) Ltd.
1
2
3
4
5
6
7
8
9
10 United Overseas Bank Nominees (Private) Limited
11 OCBC Nominees Singapore Private Limited
Societe Generale Singapore Branch
12
13 Maybank Kim Eng Securities Pte Ltd
14 OCBC Securities Private Ltd
15 DB Nominees (Singapore) Pte Ltd
16
17 Morgan Stanley Asia (Singapore) Securities Pte Ltd
18 UOB Kay Hian Pte Ltd
19 Merrill Lynch (Singapore) Pte Ltd
20
BNP Paribas Nominees Singapore Pte Ltd
Phillip Securities Pte Ltd
No. of
shares held
% of issued
share capital (1)
8,132,818,602
1,890,056,474
1,790,798,738 (2)
1,130,926,449
829,584,324
533,816,595
358,354,351
243,974,170
97,626,252
63,073,194
36,708,110
26,016,159
25,243,038
20,451,725
18,997,965
16,878,383
13,559,279
11,900,982
10,997,368
10,971,140
15,262,753,298
49.81
11.58
10.97
6.93
5.08
3.27
2.19
1.49
0.60
0.39
0.22
0.16
0.15
0.12
0.12
0.10
0.08
0.07
0.07
0.07
93.47
Notes:
(1) The percentage of issued ordinary shares is calculated based on the number of issued ordinary shares of the Company as at 27 May 2019, excluding
808,005 ordinary shares held as treasury shares as at that date.
(2) Excludes 808,005 ordinary shares held by DBS Nominees (Private) Limited as treasury shares for the account of the Company.
261
Shareholder Information
As at 27 May 2019
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
2,981
236,659
71,407
17,616
56
328,719
% of
holders
0.91
71.99
21.72
5.36
0.02
100.00
No. of
shares
% of issued
share capital
122,667
59,906,557
264,977,736
647,344,668
15,356,806,672
16,329,158,300
0.00
0.37
1.62
3.96
94.05
100.00
Note:
As at 27 May 2019, the Company had 808,005 treasury shares and no subsidiary holdings. Based on information available to the Company as at 27 May 2019,
approximately 47% 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 27 May 2019, excluding 808,005 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 0.005%.
SHARE PURCHASE MANDATE
At the 26th Annual General Meeting of the Company held on 24 July 2018 (2018 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 2018 AGM. As at 27 May 2019, there is no current
on-market buy-back of shares pursuant to the mandate.
Singapore Telecommunications Limited | Annual Report 2019
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Corporate Information (1)
BOARD OF DIRECTORS
RISK COMMITTEE
SHARE REGISTRAR
Teo Swee Lian (Chairman)
Gautam Banerjee
Dominic Barton
Bobby Chin
LEAD INDEPENDENT DIRECTOR
Low Check Kian
Email: check.low@clunyparkcapital.com
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
OPTUS ADVISORY COMMITTEE
SINGTEL AMERICAN
DEPOSITARY RECEIPTS
Simon Israel (Chairman)
Gautam Banerjee
Dominic Barton
Bobby Chin
Chua Sock Koong (Group CEO)
Venkataraman (Venky) Ganesan
Bradley Horowitz
Gail Kelly
Low Check Kian
Peter Mason AM (2)
Christina Ong
Teo Swee Lian
AUDIT COMMITTEE
Bobby Chin (Chairman)
Gautam Banerjee
Gail Kelly
Christina Ong
Peter Mason AM (2) (Chairman)
Chua Sock Koong
David Gonski AC (3)
Simon Israel
Gail Kelly
John Morschel
Paul O’Sullivan
CORPORATE GOVERNANCE AND
NOMINATIONS COMMITTEE
TECHNOLOGY ADVISORY PANEL
Low Check Kian (Chairman)
Simon Israel
Christina Ong
Teo Swee Lian
Venky Ganesan (Chairman)
Manik Gupta
Bradley Horowitz
Koh Boon Hwee
ASSISTANT COMPANY SECRETARY
EXECUTIVE RESOURCE AND
COMPENSATION COMMITTEE
Lim Li Ching
Peter Mason AM (2) (Chairman)
Simon Israel
Gail Kelly
Teo Swee Lian
FINANCE AND INVESTMENT
COMMITTEE
Simon Israel (Chairman)
Dominic Barton
Venky Ganesan
Bradley Horowitz
Low Check Kian
REGISTERED OFFICE
31 Exeter Road
Comcentre
Singapore 239732
Republic of Singapore
Tel: +65 6838 3388
Fax: +65 6732 8428
Website: www.singtel.com
263
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
AUDITORS
KPMG LLP
(appointed on 24 July 2018)
16 Raffles Quay
#22-00
Hong Leong Building
Singapore 048581
Republic of Singapore
Tel: +65 6213 3388
Fax: +65 6225 0984
Audit Partner: Ong Pang Thye
INVESTOR RELATIONS
31 Exeter Road
#19-00 Comcentre
Singapore 239732
Republic of Singapore
Tel: +65 6838 2123
Email: investor@singtel.com
Notes:
(1) The information in this section is as at 15 May 2019.
(2) Member of the Order of Australia.
(3) Companion of the Order of Australia.
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 4, 108 North Terrace
Adelaide, SA 5000, Australia
Tel: +61 87328 5114
Fax: +61 1800 500 261
Brisbane
Optus Centre Brisbane
Level 9, 15 Green Squareclose
Fortitude Valley, QLD 4006,
Australia
Tel: +61 7 3304 7000
Fax: +61 7 3174 7087
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
Melbourne
367 Collins Street
Melbourne, VIC 3000, Australia
Tel: +61 3 9233 4000
Fax: +61 3 9233 4900
Perth
Optus Centre Perth
Level 3, 2 Victoria Avenue
Perth, WA 6000, Australia
Tel: +61 8 9288 3000
Fax: +61 8 9288 3030
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
Singapore Telecommunications Limited | Annual Report 2019
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KOREA
THAILAND
Seoul
Room 3501, Trade Tower
511, Yeongdong-daero, Gangnam-gu
Seoul 06164, Korea
Tel: +82 2 3287 7500
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
USA
San Francisco (Head Office)
901 Marshall Street,
Suite 125
Redwood City, CA 94063, USA
Tel: +1 650 508 6800
Fax: +1 650 508 1578
Email: singtel-usa@singtel.com
New York
115 Broadway Street
Suite 07-123
New York, NY 10006, USA
Email: singtel-usa@singtel.com
MALAYSIA
Kuala Lumpur
Unit TA-16-1, Level 16, Tower A
Plaza 33, No. 1 Jalan Kemajuan,
Seksyen 13
46200 Petaling Jaya
Selangor Darul Ehsan, Malaysia
Tel: +603 7931 8798
Fax: +603 7931 9455
Email: sgomals@singtel.com
PHILIPPINES
Manila
Unit 7F, The Curve Tower
32nd St., cor. 3rd Avenue
Bonifacio Global City, Taguig City
Philippines
Tel: +63 2 793 1400
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
Contact Points
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
Mumbai
301-303, 3rd Floor, Midas,
Sahar Plaza Complex,
Mathuradas Vasanji Road,
Andheri East,
Mumbai 400059, India
Tel: +91 22 4075 7777
Fax: +91 22 2824 4996
Email: singtel-ind@singtel.com
New Delhi
13th Floor, B-WingFlat#1307,
Statesman House
148, Barakhamba Road,
New Delhi 110001, India
Tel: +91 11 4362 1199
Fax: +91 11 4152 1683
Email: singtel-ind@singtel.com
JAPAN
Tokyo
Meguro Central Square
8F, 3-1-1 Kamiosaki
Shinagawa-Ku
Tokyo 141-0021, Japan
Tel: +81 3 5795 1077
Fax: +81 3 5795 1088
Email: singtel-jpn@singtel.com
Osaka
3F Shin-Osaka Hankyu Building
1-1-1 Miyahara
Yodogawa-ku
Osaka 532-0003, Japan
Tel: +81 6 7668 8417
Email: singtel-jpn@singtel.com
265
Annual Report 2019
Reimagining
Your Future
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Singapore Telecommunications Limited
(CRN:199201624D)
31 Exeter Road, Comcentre
Singapore 239732
T +65 6838 3388
www.singtel.com
Copyright © 2019
Printed on environmentally friendly paper
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