Singapore Telecommunications Ltd Annual Report 2020

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FY2020 Annual Report · Singapore Telecommunications Ltd

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Singapore Telecommunications Limited

(CRN:199201624D)

31 Exeter Road, Comcentre

Singapore 239732

T +65 6838 3388

www.singtel.com

SUPERCHARGING
THE FUTURE

Annual Report 2020

Group
Enterprise

Group
Consumer
35

Governance and
Sustainability
63

Credit: Orchard Road Business Association

Group
Digital Life
55

Supercharging
the Future

2020 will go down in history as the year COVID-19 put a halt to daily life as we know it.
With staying home and social distancing highlighting the need for digital technology
to keep us all connected, it will also be the year remembered for profound changes in
communication behaviour. The arrival of 5G will not only prove timely in addressing these
changes, it will also supercharge the future by reconfiguring how technology, data and
services are deployed to meet consumers’ needs, transforming industries and cities in
the process. As a leader in communications technology, our goal is to keep innovating to
improve the lives of our customers and stakeholders. We are proud to be advancing the
5G charge and committed to creating a brighter digital future for all.

Table of Contents

PERFORMANCE
Our financial performance

118 Group Five-year

Financial Summary

122 Group Value Added Statements
123 Management Discussion

and Analysis

FINANCIALS
Audited financial statements

133 Directors’ Statement
144 Independent Auditors’ Report
152 Consolidated Income Statement
153 Consolidated Statement of
Comprehensive Income

154 Statements of Financial Position
155 Statements of Changes in Equity
159 Consolidated Statement of

Cash Flows

161 Notes to the Financial Statements

ADDITIONAL INFORMATION
Our shareholders, transactions
with interested persons and other
corporate information

260 Interested Person Transactions
261 Additional Information on

Directors Seeking Re-election

269 Shareholder Information
271 Corporate Information
272 Contact Points

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

01 Financial Highlights
03 FY 2020 Achievements
05 Chairman’s Message
07 GCEO Review
09 Who We Are
11 Our Businesses and Strategy
13 The Value We Create
15 Our Response to COVID-19
19 A 5G Future
22 Board of Directors
27 Organisation Structure
28 Management Committee
34 Senior Management

BUSINESS REVIEWS
Insights into each of our business units

35 Group Consumer
49 Group Enterprise
55 Group Digital Life
61 Key Awards and Accolades

GOVERNANCE AND
SUSTAINABILITY
Our corporate governance, risk
management and sustainability efforts

63 Governance and

Sustainability Philosophy

65 Corporate Governance
97
Investor Relations
99 Risk Management Philosophy

and Approach

111 Sustainability

Scan here to view the
Singtel Annual Report
2020 online.

OPERATING REVENUE

S$16,542m

S$17,372m

FY 2020

FY 2019

EBITDA

EBIT

S$4,541m

S$4,692m

S$3,704m

S$4,006m

UNDERLYING
NET PROFIT

S$2,457m

S$2,825m

NET PROFIT

S$1,075m(2)

S$3,095m

RETURN ON
INVESTED CAPITAL(3)

6.4%

RETURN ON
EQUITY

3.8%(2)

7.7%

10.4%

Notes:
(1) Based on Singapore Financial Reporting Standards (International) (SFRS(I)). Includes the effects from adoption of SFRS(I) 16, Leases, from 1 April 2019 on a prospective basis.
(2) Includes the Group’s share of Airtel’s net exceptional loss of S$1.8 billion mainly for regulatory costs.
(3) Return on invested capital is defined as EBIT (post-tax) divided by average capital.

Financial Highlights(1)EBIT AND SHARE OF ASSOCIATES’ PRE-TAX PROFITS
Contribution by Business

Australia Consumer

Group Enterprise

24%

23%

Singapore Consumer

13%

S$3,704m(4)

Group Digital Life

-4%

Share of associates’
pre-tax profits

OPERATING REVENUE
Contribution by Product and Service

SHAREHOLDER PAYOUT
Dividend Per Share (S¢)

47%

12.25

17.5

Data and
Internet
22%

2020

2019

S$16,542m

Sale of
Equipment
and Leasing
17%

Others(5)
7%

Digital
Businesses
7%

Notes:
(4) Includes costs of S$152 million from International Group and Corporate.
(5) Includes mainly Fixed Voice and Pay Television.

For the financial year ended 31 March 2020, the Board
has recommended a final ordinary dividend of 5.45
Singapore cents a share. Together with the interim
dividend of 6.8 Singapore cents, the total ordinary
dividend for the year is 12.25 Singapore cents, compared
to 17.5 Singapore cents last year.

The reduction in dividend payout is prudent to conserve
financial headroom to cope with uncertainties in the
current COVID-19 operating environment and the
capacity to invest in 5G.

Mobile
Service
29%

ICT
18%

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWS
We are constantly innovating — whether it is investing in next-generation 5G networks
and emerging technologies or enhancing our digital capabilities — we want to bring our
customers best-in-class products and services.

MADE STRIDES IN 5G ACROSS THE REGION

• Singtel submitted its winning bid to operate a 5G network

in Singapore.

• Optus expanded 5G coverage to over 800 fixed wireless

sites in Australia.

• Globe launched the Philippines’ first fixed wireless
5G network.
• AIS debuted Thailand’s first commercial 5G service.

ENHANCED MOBILE FINANCIAL SERVICES

• Expanded Singtel’s mobile wallet Dash’s offerings
and cross-border mobile payment alliance VIA to

include Japan.

• Telkomsel’s TCash integrated with Indonesia’s LinkAja!
app, a digital payment platform that also includes the
e-wallets of several banks.

INNOVATED NEW PRODUCTS AND SERVICES

• Singtel launched StepUp, a digital wellness platform

that rewards customers with local mobile data with every
step they take.

• Optus introduced greater choice and flexibility with its
customisable plans and no lock-in contracts.
• Telkomsel launched Indonesia’s first digital prepaid
mobile service by.U.

EXPANDED REGIONAL GAMING INITIATIVE

• Joined hands with SK Telecom and AIS to launch regional
gaming joint venture and develop new gaming-related

revenue streams.

• Scaled up Singtel’s PVP Esports initiative, taking both PVP
Esports Corporate and Campus Championships regional.

FY 2020 Achievements

DEEPENED CYBER SECURITY CAPABILITIES

• Launched Trustwave’s Fusion platform, a cloud-based
platform that provides enterprises with real-time
visibility of cyber threats and equips them with the
ability to respond swiftly.

INVESTED IN AUSTRALIA-NEW ZEALAND-US
SUBMARINE CABLE SYSTEM

SOUTHERN CROSS
CABLE NETWORK

Hawaii
Hawaii
i

United
United
States
States

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Australia

Fiji
Fiji

New Zealand
New Zeeaalaand

• Enhanced regional connectivity with consortium
partners through Southern Cross NEXT submarine cable,
a new data super-highway between Australia, New
Zealand and the US that will be completed in 2022.

LISTED AIRTEL AFRICA

• Airtel successfully listed Airtel Africa, the second largest
mobile operator in Africa, on the London Stock Exchange
and Nigeria Stock Exchange, raising US$750 million.

RECOGNISED FOR COMMITMENT TO DIVERSITY
AND SUSTAINABILITY

• Won the President’s Award for the Environment 2019,
Singapore’s highest environmental accolade.
• Included in the Bloomberg Gender-Equality Index

for the second year running.

• Singtel was the only Asian telco ranked among Corporate
Knights’ 2020 Global 100 Most Sustainable Corporations.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWS
Dear Shareholders,

This has proven to be the most
challenging year in Singtel’s
history, as we faced a convergence
of intensified competition across
our businesses, adverse regulatory
and court rulings in India and an
unprecedented public health crisis
that has sent economies around
the world reeling. Against this
backdrop, our net profit for FY 2020
declined 65% to S$1.08 billion.
Excluding exceptionals, a key item
being Airtel’s regulatory charges,
underlying net profit would have
dropped 13% to S$2.46 billion.

COMPETITION AND INDUSTRY
HEADWINDS
Intensified competition across
markets is eroding industry profit
pools. In our consumer business,
competition has driven up data
allowances, blunting the ability to
monetise data growth. We have seen
the growth of MVNOs and value-
seeking consumers shift to SIM Only
plans. Given the financial stress
experienced by consumers and
businesses in a COVID-19 world, we
expect this shift to value to become
more pronounced.

Despite the heightened competition,
we gained market share in mobile
and fixed services in Singapore
while our enterprise business
also defended its market leadership
not just in Singapore but across
the region. Looking ahead, our
recent 5G licence win will allow
us to bolster our network leadership
in Singapore and build a 5G
ecosystem across the region with our
associates. This should create new
revenue opportunities as industries
and enterprises use the intelligent
connectivity we provide to transform
their business models and grow
their businesses.

AIRTEL PERFORMANCE
RECOVERING
The Indian telecoms market has
moved past the price war and
consolidation of the last two years
into an improved phase of market
repair. Airtel has begun recording
gains in pricing and market
share in a three-player market,
significantly improving last year’s
performance and carrying this
momentum into the new year.
During the year, it successfully
raised capital and is well positioned
to compete and invest as India
transitions to a digital economy.

As a growth rather than a yield
stock, Airtel does not contribute
materially to Singtel’s cash flow by
way of dividends. The market value
of our stake in Airtel at the end of
FY 2020 was S$15 billion, higher
than the book value of S$6 billion.
Despite the challenges, your
Board takes a long-term view of
the growth potential of the Indian
digital economy and the value of this
business to Singtel.

BETTER POSITIONED
POST-COVID
Singtel’s management continues
to steer the business through the
uncertainty and impact of COVID-19.
Contingency plans for dealing
with the pandemic have been
effective in keeping our people safe
and ensuring business continuity,
particularly the provision of essential
services for our customers. With the
pandemic changing the way we work
and interact and how businesses
engage their customers, the
digitalisation that has been integral
to our transformation these past
years has allowed us to adapt and
pivot seamlessly to the new normal.
Building on our efforts in recent

years to move retail and enterprise
customers to digital channels and
services, we should emerge from this
crisis better positioned overall.

WHERE WE STAND
The uncertainties of COVID-19 make
it hard to forecast the year ahead
and for this reason, Singtel did not
issue any guidance at the financial
year end. The Group has ensured
ample liquidity and debt facilities
to cope with the unpredictability of
the current operating environment
as well as commence our investment
in the rollout of 5G where the returns
are expected to be mid to long term
in nature as applications emerge.
Considering the implications of
COVID-19 and future investment
needs, the Board recommended a
reduced final dividend of 5.45 cents
bringing a total of 12.25 cents to
shareholders for the full year.
I trust you will understand this is
a prudent necessity.

STANDING WITH THE
COMMUNITY
We can be proud of the way Singtel
has come together and stood with
the community during this COVID-19
crisis. The reliance on our networks
to work and learn from home during
the circuit breaker period was a
stark reminder that our services are
critical to both the community and
economy. Through a combination
of employee commitment and
company care, Singtel staff in key
support and frontline roles continued
heading into work, to serve the
community. As a company, we also
raised S$2 million for vulnerable
groups impacted by COVID-19,
besides extending a range of
free services to the broader society
coping with the pressures of
staying at home.

Chairman’s Message
With the pandemic changing
the way we work and
interact and how businesses
engage their customers, the
digitalisation that has been
integral to our transformation
these past years has allowed
us to adapt and pivot
seamlessly to the
new normal.

THANKS AND FAREWELL
I would like to extend my thanks
and the thanks of the Board to all
our frontliners and employees for
holding the fort these past months.
Knowing the Singtel DNA, I have
every confidence they will see the
company through this crisis to
recovery. As I step down as
Chairman, I would like to thank
past and present Directors for
their valuable guidance and
support and our management for
their tireless commitment to the
business over many years. Their
calm and discipline no matter the
circumstances will undoubtedly
lead the Group through the current
volatility towards positive and
progressive outcomes.

I’d also like to welcome
Lee Theng Kiat, Executive Director
of Temasek Holdings and Chairman
of Temasek International, as the
incoming Singtel Chairman.
Theng Kiat’s extensive experience
in mobile communications and
data services and his impeccable
corporate governance and
leadership credentials will be
highly beneficial to Singtel as it
charts its way forward in the new
economy. Lastly, many thanks to
our shareholders for their support
these past years. It has been
a privilege to serve.

Stay safe and keep well.

Yours sincerely,

SIMON ISRAEL
Chairman

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSDear Shareholders,

The world was thrust into unchartered
territory as we moved into the
last quarter of our financial year.
The emergence of COVID-19 has
disrupted not just lives but livelihoods,
upending global supply chains
and throwing already softening
economies off course, many possibly
into recession. This added to the
structural pressures we are facing in
our core business, most keenly felt by
Optus this financial year. Combined
with adverse regulatory outcomes
in India, we’ve had one of our most
trying years.

WORKING TOWARDS
POST-COVID RECOVERY
Travel and movement restrictions
have impacted our roaming
and prepaid revenues while slowing
economic growth has dampened
business spend. While these factors
exacerbated structural shifts in
industry, we did gain market share
across our Singapore mobile and
fixed services as well as our
enterprise business, particularly
as corporations and government
agencies intensified digitalisation,
which also added to NCS’ strong
order book.

Importantly, while the pandemic
has affected our business, it has also
created significant opportunities.
We’ve seen unprecedented
digital adoption by consumers and
enterprises as a result of stay-at-
home and work-from-home provisos.
Having digitalised our operations
and services in recent years, we’ve
responded to this extraordinary shift
online and increased demand for our
services almost seamlessly. As such,
we are well positioned to leverage
this accelerated digitalisation to grow
both our core and digital businesses.
Given the prevailing uncertainties

however, we have strengthened our
liquidity and have secured additional
credit facilities as we work towards a
post-COVID recovery and embark on
our 5G rollout.

LEADING THE WAY IN 5G
5G is going mainstream around the
world this year and we are excited
to lead and shape 5G in Singapore,
having won our licence that will
bring 5G coverage to at least half
the country by end-2022 and
nationwide coverage by 2025. Our
approach to 5G will be differentiated
from 4G as we move beyond
access and connectivity to create
new enterprise use cases and
innovative platforms, applications
and services to reposition ourselves
for growth in the converging
ecosystem of tech and telco.

This multi-year capital commitment
will be a significant investment in not
just our company’s future but that
of the wider community. 5G will be
transformative for industries and
business models, unlock new careers
and create sustainable economic and
social value in the process. Optus in
Australia continues expanding its
5G network having launched a full
suite of 5G services in both mobile
and broadband last November. Our
associates are also advancing their
5G strategies and the Group will
harness its scale to progress this
next-generation technology across
our footprint.

STRONG SHOWING BY
ASSOCIATES
It’s been a tough two years in India
as the latest market entrant brought
unprecedented disruption. The
good news is this has resulted in
consolidation into a three-operator
market where Airtel is emerging a

key beneficiary as it regains market
share. While we have recognised
S$1.6 billion as our share of Airtel’s
regulatory losses this year, we believe
a recovery story is in the making,
particularly as Airtel has successfully
raised capital and strengthened its
balance sheet and the country’s push
towards Digital India shows no signs
of waning.

In Thailand, AIS delivered strong
growth for the year but also managed
to reinforce its network leadership
with its recent 5G spectrum win. In
the Philippines, Globe recorded
double-digit growth in operating
revenue and EBITDA on sustained
data growth. Telkomsel continued to
lead with its superior network
and digital offerings although its
performance was affected by lower
voice and SMS revenues and greater
competition outside Java. We
continue to see immense potential
in our associates’ markets, driven by
increased smartphone penetration
and expanding digital economies.

HEEDING THE CALL TO SERVE
The pandemic and last year’s
bushfires in Australia have made it
clear we play a special role in the
community that requires us to support
society during times of crisis. Each
time a bushfire triggered outages to
fixed line and mobile networks in
Australia, our service staff worked
long hours in difficult conditions to
get our networks back up and
running. Similarly, when COVID-19
rendered most of us homebound, our
staff understood that people rely
on us and much of the essential work
we do cannot be done from home.
I’m grateful that our call centre
and retail staff, network engineers
and technicians, and IT staff serving
other essential services providers

GCEO ReviewOur approach to 5G will
be differentiated from 4G
as we move beyond
access and connectivity
to create new enterprise
use cases and innovative
platforms, applications
and services to reposition
ourselves for growth in
the converging ecosystem
of tech and telco.

have been travelling to work daily
to support our essential and critical
functions. The public’s trust in us
has gone up due to our resilience
and commitment to serve.

EMERGING STRONGER WITH
OUR COMMUNITY
Besides raising S$3 million for
special education schools which have
been the key beneficiaries of the
Singtel Touching Lives Fund for some
years now, we also rendered support
to segments of our society impacted
by COVID-19. By matching staff
contributions dollar for dollar, we
raised another S$2 million in total,
channelling this to 18 charities
including the Courage Fund
supporting healthcare workers and
vulnerable groups. As many worked
from home, we made digitalisation
more accessible by granting free
connectivity and collaboration
software to SMEs in Singapore
and Australia while providing free
entertainment to the Singapore
public. You have my commitment
that we will continue to do our
part to help.

I would like to thank all our staff
for displaying such grace under
pressure at this moment in
time when the work we do is its
most critical. I would also like to
thank our Board for their guidance
and our Management and
Union for their dedication to
navigating the ongoing crisis. It is
my firm belief that we will emerge
stronger with our community.

Yours sincerely,

CHUA SOCK KOONG
Group Chief Executive Officer

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSUNITED STATES

Asia’s leading
communications
technology group

Singtel is Asia’s leading communications technology
group, operating in one of the world’s fastest growing and
most dynamic regions. Together with Optus and our regional
associates Airtel, AIS, Globe and Telkomsel, we have a presence in
21 countries. Besides core telecom services, we provide an extensive range
of digital solutions. This includes cloud, cyber security and digital advertising
to enterprises as well as entertainment and mobile financial services to
millions of consumers. We are dedicated to continuous innovation, harnessing
next-generation technologies to create new and exciting customer
experiences as we shape a more sustainable, digital future.

Who We AreTHAILAND

PHILIPPINES

23.3% of ordinary shares(1)
41.2m mobile customers

21.0% of ordinary shares, an investor
in telcos, media and technology

47.0% of ordinary shares(2)
89.3m mobile customers

INDONESIA

35.0% effective interest
162.6m mobile customers

More than

65%

of underlying
net profit from
operations outside
of Singapore

SINGAPORE

4.3m mobile customers
0.6m broadband customers

AUSTRALIA

10.4m mobile customers
1.1m broadband customers

52
18

enterprise offices in

countries globally

INDIA | SOUTH ASIA | AFRICA

33.3% effective interest
Mobile Customers:
283.7m in India
2.9m in South Asia
110.6m in Africa

Over

mobile customers in

700m
21

countries

Notes:
(1) Based on direct equity interest only.
(2) Singtel has 21.5% interest in Globe’s voting shares.
All figures at 31 March 2020 unless otherwise stated.

Enabling a digital
future to connect our
customers

VISION

MISSION

To be Asia Pacific’s best communications
technology company.

To deliver sustainable long-term growth and shareholder returns,
and generate positive impact for stakeholders.

STRATEGIC PRIORITIES

DIFFERENTIATORS

BUSINESSES

Credit: Orchard Road Business Association

Accelerating
Digital Transformation

Customer
Relationships

Digitalising
Core Businesses

Network
Leadership

Growing New
Digital Services

Data Insights

Building a Regional
Digital Ecosystem

Regional Reach

Championing
Sustainability

Digital
Innovation

Our Businesses and Strategy
With 5G set to unleash the full potential of technologies like AI and IoT, we are
positioning our business for new opportunities in this hyper-connected future.
Anticipating this shift, we have rebuilt our business around data, digitalising our
core business and innovating new digital capabilities. We are prioritising growth
drivers such as cyber security, digital marketing and data analytics that leverage our
existing assets and strengths in connectivity. We are also scaling our regional digital
ecosystem to include mobile financial services and new forms of content to deepen
engagement with the Group’s more than 700 million mobile customers. Even as we
reinvent ourselves, our strategy is grounded in our commitment to sustainability and
digital inclusion.

GROUP CONSUMER

GROUP ENTERPRISE

GROUP DIGITAL LIFE

Offers 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 35 - 48.

Delivers core enterprise ICT services
as well as cloud, IoT, cyber security
and smart city solutions.

Read more about Group Enterprise
from page 49 - 54.

Focuses on digital marketing and
data analytics.

Read more about Group Digital Life
from page 55 - 60.

STAKEHOLDERS

Customers

Investors

Communities

Regulators and
Governments

Employees

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWS
We are guided by our key stakeholder principles of serving our customers; ensuring our
company’s long-term viability for shareholders; looking after our people and supporting
the broader community with our sustainability efforts and other initiatives. Our goal is to
create value for all our stakeholders.

FOR OUR CUSTOMERS

Our regional associates now have

353m mobile data users, an
increase of more than 10%

from a year ago.

Together with our associates, our
capital expenditure was more than

S$10b.

173m

downloads of My Singtel and
My Optus apps and our associates’
apps have been made.

We paid

S$2.86b

in dividends

and

S$462m

in interest.

ACCOLADES

Ranked No.1 on the Singapore
Governance and Transparency Index 2019

for the fifth year running.

SIAS Investors’ Choice Awards 2019: Golden
Circle Award for Most Transparent Company.

FOR OUR INVESTORS

The Value We Create
FOR OUR PEOPLE

FOR OUR COMMUNITIES

We pledged

S$45m

to boost the digital skills of
our Singapore workforce over
three years.

Some 800

employees in Singapore and
Australia have completed skills
conversion and taken on
new roles.

We contributed S$10m

to Esplanade toward the
development of the Singtel
Waterfront Theatre, which
started construction in 2019.

We recycled

26,000kg

of electronic waste in FY 2020
in Singapore and Australia.

We were ranked
one of the

Top 100

most sustainable
corporations in the world
by Corporate Knights.

We contributed over

S$22m

to the community
in Singapore and
Australia.

Since 2016, we’ve invested over

S$5m

in our Future Makers
programmes and supported

start-ups to encourage
social innovation.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSAs a provider of critical telecoms and tech services, our role in keeping
consumers and enterprises connected has taken on new importance in
a time of safe distancing. Since the COVID-19 outbreak, we have moved
quickly to protect the health of our staff and customers, while activating
our business contingency plan to avoid disruption to our services. Our
digitalisation efforts in recent years, to move our customers to digital
channels and enable our employees to work remotely, have helped us
adapt fast. Here is our response to COVID-19.

21
JAN

Singtel’s Pandemic Control
Committee convened for the first
time and started to formulate and
execute action plans. Meeting
daily, the committee implemented
precautionary measures across
work premises in Singapore and
issued safety advisories to guide
staff. Optus followed suit a couple
of days after.

23
JAN

Singapore
reported
its first
imported
case.

28
JAN

Social distancing, travel
declarations and travel
bans were implemented
for all staff and strict
visitor controls kicked in
after the long Chinese
New Year weekend.

Regular drills were
conducted across
customer-facing and
operational sites in
Singapore and
Australia to prepare
staff for situations in
which they’ve been
exposed to suspected
or confirmed COVID-19
cases at work.

06
MAR

The first Singtel
staff tested positive
for COVID-19 in
Singapore. All staff
working on the
same floor were
immediately asked
to work from home
and the office was
thoroughly disinfected.

WEEKS OF
09 and
16 MAR

Contact centres in Malaysia and
the Philippines were affected
due to travel and movement
restrictions in both countries.
Accommodation was arranged
for affected Optus contact centre
staff in the Philippines as well as
Singtel frontline staff who make
daily commutes from Malaysia
to Singapore.

21
FEB

Our Response to COVID-19 30
JAN

Temperature screening
machines were installed
at access points of Singtel’s
Singapore premises and
cleaning frequency was
increased. Hand sanitisers
and masks were distributed
to staff in Singapore
and Australia.

07
FEB

Singapore’s Ministry
of Health declared
DORSCON Orange.
Four days later, the
WHO declared the
COVID-19 outbreak
a pandemic.

11
FEB

Workforce segregation
measures were
implemented in
Singapore, with teams
split across different
locations to minimise
infection risk and
disruption to operations.

16
MAR

Optus
implemented
team
segregation.

25
MAR

The first Optus
staff tested
positive for
COVID-19.
Substantive
preventive
and mitigation
measures were
taken.

01
APR

02
JUN

All Singtel and Optus
non-essential staff
started working from
home. A week later,
Singapore’s circuit
breaker measures
started.

Singapore’s circuit
breaker period was
lifted and some states
in Australia began
easing restrictions.
Most Singtel and Optus
staff continued to work
from home. Site-bound
staff were asked to
adhere to strict social
distancing measures.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSSUPPORTING CUSTOMERS AND COMMUNITIES
As a homegrown company, we want to stand together with the broader community and keep
them supported during this difficult period. We hope our efforts, including providing a care
package of free services such as entertainment and tech solutions, will provide some relief
to vulnerable individuals, families and small businesses and tide them through these
uncertain times.

#StayUnitedSG

may be

but

a p ar

t
we are in

this
together

Who would have thought that it would all
come to this. A world where staying away
.yrassecen emoceb sah rehto hcae morf
It’s a challenging time for us all. But it’s
also the time for us to stay united, now
more than ever.

Over the past few weeks, Singtel has raised
spuorg elbarenluv troppus ot noillim 2$
in the community and our courageous
healthcare workers.

Stay Home Entertained
Free access to 30 channels across 5 Singtel
CAST packs for everyone in Singapore,
and 30 channels on Singtel TV for Singtel
TV customers. These include everything
from news and lifestyle to entertainment.

Stay in Touch
Data-free messaging on WhatsApp* for
all Singtel mobile customers.

During this uncertain period, we will also
sniamer efil ruoy erusne ot nac ew lla od
as connected as ever, by rolling out a care
package of complimentary services.

Stay Protected
30-day COVID-19 insurance coverage for
ohw sremotsuc elibom diaperp letgniS
top up on your hi!App.

$
Stay Open for Business Online
Free 6 months access to tools
like
Microsoft Teams for video conferencing
and AWS Virtual Workspace for remote

on 99SME.sg

Visit singtel.com/stay-united-singapore

care package.

Our nation has overcome many challenges.
With everyone’s support, we will stand
strong and get through this one too.

Because together, we can.

*Available till 7 July 2020. All other initiatives are available from 1 April to 30 June 2020 unless otherwise stated.

Our Response to COVID-19

CONSUMERS & ENTERPRISES

Provided 95,000 hours of free
entertainment, data-free WhatsApp
messaging in Singapore and boosted
mobile data in Australia.

Provided SMEs in Singapore and
Australia free use of business solutions
to enable working from home.

Offered fee waivers on Dash
mobile remittance to 7 countries
for new users and healthcare workers.

COMMUNITIES

Singtel Future Makers 2020
awarded three start-ups
S$40,000
from a Special Pandemic Support
Grant to support innovative solutions
tackling COVID-19 social challenges.

Optus’ Donate Your Data programme saw
200,000
customers contribute over
5m GB
of mobile data to underprivileged youth.

Gave more than
1,000
students from low-income backgrounds
in Singapore mobile data and laptops
to support home-based learning.

Offered more than
800
traineeships under the Singapore
government’s SGUnited
Traineeships programme.

Singtel’s Management Committee joined the nationwide
'Sing Along Singapore!' initiative, and gave their best rendition
of 'Home' to show appreciation for frontline health workers,
volunteers and the migrant workforce.

Donated
S$2m to 18 charities and
social enterprises to help vulnerable
groups and healthcare workers
in Singapore.

WORKFORCE

Recruited over
500
people to fill customer service
positions in Singapore and Australia.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSA 5G Future

Powering a world of
new possibilities

EVOLUTION OF
MOBILE NETWORK
TECHNOLOGY

5G is slated to be a game changer, promising to enable smart
cities and ultimately, transform and improve life as we know
it. In a post-COVID world of accelerated digitalisation, 5G with
its ultra-fast speeds, reliability and low latency will connect
almost everyone and everything, driving innovation at an
unprecedented scale to unlock immense value for consumers and
enterprises alike. This new 5G-enabled era will see advanced
technologies and applications such as self-driving vehicles,
immersive learning and robotic surgery become a reality.

At Singtel, we are gearing up for this 5G-powered world by
building a 5G ecosystem with the requisite infrastructure and
innovative capabilities, empowering enterprises to operate more
creatively and efficiently and delivering exciting new experiences
for consumers.

From 2020
Mixed-reality (virtual
and physical) enterprise
and entertainment
applications and mobile
cloud gaming

2011
Video streaming

2005
Internet browsing

1994
Voice calls and
Short Messaging
Service

1988
Voice calls

5G ApplicationsGSMA highlights that 5G will be commercially available from 180 operators in 62 markets
by end-2020. The Singtel Group embarked on our 5G rollout last year, starting with Optus in
Australia. We plan to leverage the experience and scale of our Group to grow our 5G ecosystem
and to lead and shape 5G.

TIMELINE

JAN 2019

• Optus launched Australia’s first 5G fixed
wireless access network.

JUN 2019

• Globe was the first mobile operator in
Southeast Asia to commercially launch 5G

for homes.

NOV 2019

• Optus rolled out 5G in the home and on

the go.

• Telkomsel expanded trials for 5G use
cases in Indonesia.

MAR 2020

• AIS became Thailand’s first operator to

launch 5G mobile services.

APR 2020

• Singtel awarded provisional 5G licence

in Singapore.

JUN 2020

• Singtel awarded 5G licence; to roll out

standalone network providing coverage
to half of Singapore by end-2022 and

nationwide by 2025.

(Second from left) Ernest Cu, Globe’s President and CEO with senior
Globe executives at the launch of Globe’s Home Air Fibre 5G

Singtel’s management with former IMDA Chief Executive Tan Kiat How
at Singtel’s Bringing 5G to Life showcase.

Our immediate priority is to roll out 5G to enhance
the quality and flexibility of our mobile networks to
fulfil the needs of early adopters. More importantly at
Singtel, our focus is on integrating 5G with AI, cloud
and data to deliver next-generation services that
will fundamentally change the way companies work
and consumers interact with the internet
and smart objects.

We’ll deliver not only super fast mobile broadband
speeds but also differentiated 5G capabilities
that will allow businesses to accelerate their digital
transformation and consumers to enjoy new digital
services. We’re developing new platforms built upon
5G’s unprecedented flexibility, latency and scalability
to fuel innovations in consumer experience, smart
manufacturing, advanced automation and
smart city solutions.

ALLEN LEW
CEO, Group Strategy and Business Development

MARK CHONG
Group Chief Technology Officer

OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSSingapore Telecommunications Limited | Annual Report 2020

5G Applications

MARITIME OPERATIONS

Faster turnaround of container
ships at ports with efficient
autonomous cranes and
container trailers.

GAMING

Hyper-realistic, seamless mobile
cloud gaming experience using
augmented or virtual reality
headsets.

AUTONOMOUS VEHICLES

Better road safety with
autonomous vehicles outfitted
with safety sensors and the
ability to communicate with
other vehicles or devices.

MANUFACTURING
AND LOGISTICS

Higher efficiency and fewer
defects in smart factories
using machine-learning robots
and video cameras with edge
computing capabilities.

HEALTHCARE

Surgeries performed remotely
using surgical robotic arms and
3D virtual reality headsets to
visualise patient anatomy.

ENERGY AND UTILITIES

Smart building facilities that
power down when not in use for
higher energy efficiency and
smart meters that monitor real-
time power consumption.

5G PERFORMANCE:
THROUGHPUT AND NETWORK
RESPONSE TIME*

NETWORK
RESPONSE TIME:
20 - 40
milliseconds

10 - 20
milliseconds

2x faster network
response time
Up to 10x faster
throughput speed

Note:
* Results obtained from Singtel’s early 5G network trials. Further

latency reduction expected in future 5G releases.

5G Applications
Simon Israel

Lee Theng Kiat

• 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: 23 July 2019
• Number of directorships in listed companies (including Singtel): 2

• Non-executive and non-independent Director
• Chairman-designate, Singtel Board
• Member, Corporate Governance and Nominations Committee
• Member, Executive Resource and Compensation Committee
• Member, Finance and Investment Committee
• Member, Optus Advisory Committee
• Date of appointment: 15 January 2020
• Number of directorships in listed companies (including Singtel): 1

Mr Simon Israel, 67, is the Chairman of Singapore
Post Limited and a Director of Stewardship Asia Centre
CLG Limited. He is also a member of the Governing
Board of Lee Kuan Yew School of Public Policy, Leapfrog
Investments Global Leadership Council and Westpac’s
Asia Advisory Board. Simon is a former Director of
CapitaLand Limited, Fonterra Co-operative Group 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 Pacific
of the Danone Group. Simon also held various positions
in Sara Lee Corporation before becoming President
(Household & Personal Care), Asia Pacific.

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 Pacific.

Mr Lee Theng Kiat, 67, is the Executive Director
of Temasek Holdings (Private) Limited and the Chairman
of Temasek International Pte. Ltd. (collectively Temasek).

Before joining Temasek, Theng Kiat was the
President and Chief Executive Officer of Singapore
Technologies Telemedia Pte Ltd and STT Communications
Ltd. Prior to that, he held several senior level positions in
the Singapore Technologies Group. Theng Kiat served in
the Singapore Legal Service for over eight years before
joining the Singapore Technologies Group.

Theng Kiat holds a Bachelor of Laws (Honours) from the
National University of Singapore.

Board of DirectorsSingapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSChua Sock Koong

Gautam Banerjee

• Executive and non-independent Director
• Member, Optus Advisory Committee
• Date of appointment: Director on 12 October 2006 and Group Chief

Executive Officer (CEO) on 1 April 2007

• Last re-elected: 28 July 2017
• Number of directorships in listed companies (including Singtel): 2

• Non-executive and independent Director
• Chairman, 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): 3

Ms Chua Sock Koong, 62, 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. Sock Koong is the Deputy Chairman of the
Public Service Commission and a member of Singapore’s
Council of Presidential Advisers and the Research,
Innovation and Enterprise Council.

Sock Koong was awarded the Public Service Star at the
Singapore National Day Awards 2019 and the Medal of
Commendation (Gold) at the NTUC May Day Awards
2016. 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 Gautam Banerjee, 65, 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 and GIC Private
Limited. He also serves in several not-for-profit
organisations including Defence Science and Technology
Agency and Yale-NUS College. He was the Chairman
of the Listings Advisory Committee of the Singapore
Exchange, a Director of The Indian Hotels Company
Limited and EDBI Pte Ltd, and a member of the Singapore
Legal Service Commission.

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.

Board of Directors
Venky Ganesan

Bradley Horowitz

• 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

• Non-executive and independent Director
• Member, Finance and Investment Committee
• Member, Technology Advisory Panel
• Date of appointment: 26 December 2018
• Last re-elected: 23 July 2019
• Number of directorships in listed companies (including Singtel): 1

Mr Venkataraman (Venky) Ganesan, 47, is one of the
Managing Partners of Menlo Ventures, a top-tier Silicon
Valley venture capital firm. 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 subsidiary
of Singtel.

Mr Bradley Horowitz, 55, 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.

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 Avi
Networks 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.

Bradley is an independent Director of Issuu, Inc. and Lyst
Ltd. He is 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.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSGail Kelly

Low Check Kian

• Non-executive and independent Director
• Chairman, Executive Resource and Compensation Committee
• Chairman, Optus Advisory Committee
• Member, Audit Committee
• Member, Corporate Governance and Nominations Committee
• Date of appointment: 26 December 2018
• Last re-elected: 23 July 2019
• Number of directorships in listed companies (including Singtel): 1

• Non-executive and Lead Independent Director
• Chairman, Corporate Governance and Nominations Committee
• Member, Executive Resource and Compensation 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

Mrs Gail Kelly, 64, 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 CEO 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 an MBA
(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.

Mr Low Check Kian, 61, 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 finance
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 Pacific 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 Bachelor of Science (First Class
Honours) and Master of Science in Economics from the
London School of Economics.

Board of DirectorsChristina Ong

Teo Swee Lian

• Non-executive and independent Director
• Member, Audit Committee
• Member, Corporate Governance and Nominations Committee
• Member, Risk Committee
• Date of appointment: 7 April 2014
• Last re-elected: 23 July 2019
• 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, 68, is 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.

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, 60, is the Chairman of CapitaLand
Mall Trust, a Director of AIA Group Ltd, Avanda Investment
Management Pte Ltd, Clifford Capital Holdings Pte. Ltd.,
Clifford 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 Office 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.
She was also a member of the Corporate Governance
Council formed by the MAS.

Swee Lian holds a Bachelor of Science (First Class
Honours) in Mathematics from Imperial College, London
University and a Master of Science in Applied Statistics from
Oxford University.

Notes:
(1) Information as at 8 June 2020.
(2) Mr Peter Mason AM and Mr Bobby Chin stepped down from the Singtel Board at the conclusion of the Annual General Meeting on 23 July 2019.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSGroup Chief Executive Officer

CHUA SOCK KOONG

GROUP BUSINESSES

CORPORATE FUNCTIONS

Chief Executive Officer
Consumer Australia/
Chief Executive Officer Optus

KELLY BAYER ROSMARIN

Chief Executive Officer
Consumer Singapore/
Group Chief Digital Officer

YUEN KUAN MOON

Chief Executive Officer
Group Enterprise/
Country Chief Officer Singapore

BILL CHANG

Chief Executive Officer
Group Digital Life

SAMBA NATARAJAN

Chief Executive Officer
International

ARTHUR LANG

Audit Committee

Group Chief Internal Auditor

CRAIG YOUNG

Group Chief Technology Officer

MARK CHONG

Chief Executive Officer
Group Strategy and Business Development/
Country Chief Officer Thailand

ALLEN LEW

Group Chief Financial Officer

LIM CHENG CHENG

Group Chief Corporate Officer

JEANN LOW

Group Chief Human Resources Officer

AILEEN TAN

Group Chief Information Officer

WILLIAM WOO

Organisation StructureChua Sock Koong

Kelly Bayer Rosmarin

Ms Chua Sock Koong, 62, 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.

Ms Kelly Bayer Rosmarin, 44, was appointed as CEO for
both Consumer Australia and Optus on 1 April 2020. She
joined Optus on 1 March 2019, as Deputy CEO, and was
named CEO-designate on 5 December 2019.

Prior to joining Optus, Kelly spent 14 years of service with
Commonwealth Bank of Australia (CBA) where she held
several senior positions and varied portfolios. Kelly’s
last appointment was the Group Executive of Institutional
Banking and Markets at CBA. She also spent time as
a management consultant, in an enterprise software
company and at a venture-backed high-growth
software start-up.

Kelly is recognised for leveraging technology, data and
analytics to develop leading customer services and
experience. Kelly was named in the Top 10 Businesswomen
in Australia and the Top 25 Women in Asia Pacific Finance
and holds a variety of board and advisory responsibilities.

Kelly holds a Bachelor’s Degree in Industrial Engineering
& Engineering Management and a Master of Science
in Management Science & Industrial Engineering from
Stanford University, USA.

OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSManagement CommitteeSingapore Telecommunications Limited | Annual Report 2020
Bill Chang

Mark Chong

Mr Bill Chang, 53, was appointed CEO, 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
Officer Singapore on 1 October 2014, as principal
liaison with local and regulatory bodies.

Mr Mark Chong, 56, was appointed Group Chief
Technology Officer 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.

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
the Urban Redevelopment Authority of Singapore.

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.

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 Officer 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. Mark obtained his MBA from the National
University of Singapore. He is a Senior Fellow with the
Singapore Computer Society.

Management CommitteeArthur Lang

Allen Lew

Mr Arthur Lang, 48, 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 financial and gaming businesses, for
scale and synergies.

Prior to joining Singtel, Arthur was Group Chief Financial
Officer 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 Officer of the Asia
Pacific 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 Harvard Business School
and a BA in Economics (magna cum laude) from
Harvard University.

Mr Allen Lew, 65, was appointed CEO, Group Strategy and
Business Development and Country Chief Officer Thailand
on 1 April 2020.

Prior to that, Allen was CEO for Consumer Australia
and Optus where he led Optus to be the go-to operator
in Australia for great connectivity, innovative services
and exciting content. Before his posting to Australia, Allen
was Country Chief Officer in Singapore and CEO, Group
Digital Life.

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

Allen is a board member of AIS and Chairman of the AIS
Executive Committee.

Allen 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.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWS
Lim Cheng Cheng

Jeann Low

Ms Jeann Low, 59, was appointed Group Chief Corporate
Officer on 10 April 2015. She is responsible for the Group’s
corporate functions including mergers and acquisitions,
corporate communications, legal, regulatory, risk
management and procurement.

Prior to this role, she was Group Chief Financial Officer
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 board 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.

Ms Lim Cheng Cheng, 48, is Group Chief Financial Officer.
She is responsible for Singtel Group’s finance-related
functions including tax, treasury and investor relations.

Cheng Cheng has over 25 years of experience in finance
and mergers and acquisitions. She joined Singtel in 2012
as Vice President, Group Strategic Investment and
was appointed Deputy Group Chief Financial Officer on
1 October 2014 and Group Chief Financial Officer on
10 April 2015.

Before joining Singtel, Cheng Cheng was Executive
Vice President and Chief Financial Officer at SMRT
Corporation. She also worked at Singapore Power for
10 years in various corporate planning, investments and
finance roles, the last being Head and Vice President
(Financial Planning and Analysis).

Cheng Cheng is a non-executive, non-independent
Director at SingPost and was the winner of the Best CFO
(Big Cap) title at the 2018 Singapore Corporate Awards.

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.

Management CommitteeSamba Natarajan

Aileen Tan

Mr Samba Natarajan, 54, is CEO, 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.

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 finance. 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.

Ms Aileen Tan, 53, Group Chief HR Officer, is responsible for
Singtel Group’s human resources development and leads
its corporate sustainability function.

Aileen joined Singtel in June 2008 as Group Director, HR.
Prior to that, she was Group General Manager, HR at WBL
Corporation Limited and VP, Centres of Excellence with
Abacus International Pte Ltd.

She co-chairs the Ministry of Manpower’s (MOM) HR
Industry Transformation Advisory Panel and is a member
of Ministry of Education’s Institute for Adult Learning
Council, Ministry of Finance’s VITAL’s Advisory Panel and
MOM’s Workplace Safety & Health Council. She is also a
member of the Institute for Human Resource Professionals
(IHRP) Board, Singapore University of Social Sciences
Board of Trustees, Home Nursing Foundation Board and
Health Sciences Authority 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 for being a role model for the
HR profession. She received the Public Service Medal in
2018 for significant contributions to Singapore’s human
resources sectors.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSWilliam Woo

Yuen Kuan Moon

Mr William Woo, 56, was appointed Group Chief
Information Officer from 1 August 2017. William was
the 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.

Mr Yuen Kuan Moon, 53, was appointed CEO, Consumer
Singapore in June 2012. He leads the Singapore
consumer business to deliver an integrated suite of
mobile, broadband and TV services. Moon is concurrently
responsible for driving the Group’s digital transformation
as Group Chief Digital Officer, a role that was created
in 2018 to unlock digital growth opportunities in an
era of disruption. Moon has served on the Board of
Commissioners in Telkomsel since 2009.

Since joining Singtel in 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.

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.

Moon was appointed to the Board of SkillsFuture
Singapore in 2016, the Board of Advisors of the Institute
of Service Excellence at SMU and the Digital Readiness
Council Steering Committee in 2018 and the SIM
Governing Council in 2019.

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.

Management CommitteeHui Weng Cheong
President & Chief Operating Officer
AIS

Murray King
Chief Financial Officer
Optus

Lim Seng Kong
Managing Director
Singtel Enterprise Business,
Group Enterprise

Chris Mitchell
Managing Director
Optus Business, Group Enterprise

Ng Kuo Pin
Chief Executive Officer
NCS, Group Enterprise

Arthur Wong
Chief Executive Officer
Global Cyber Security, Group Enterprise

Senior ManagementSingapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSGroup
Consumer

DEEPENING DIGITAL
ENGAGEMENT WITH
CONSUMERS

With consumers increasingly relying on their devices,
we are enhancing their digital lifestyles with a
range of services from content to mobile financial
solutions supported by ever faster connections.
Technological advancements like 5G will produce
new breakthroughs and innovations that will
revolutionise how we engage customers and the
digital experiences that we create for them.

Credit: Orchard Road Business Association

Singapore Telecommunications Limited | Annual Report 2020

Singtel is focused on extending our lead in customer experience, harnessing technology
to deliver innovative products and services and smarter conveniences underpinned by
an exceptional network. With more consumers going digital, we continue to invest in the
solutions needed to make it easier for them to get the most out of the digital world.

DRIVING DIGITAL
CUSTOMER
ENGAGEMENT

KEEPING IN STEP WITH CUSTOMERS’
LIFESTYLE NEEDS

Wellness platform Singtel StepUp attracted over

Our all-digital mobile product
GOMO added

80,000

customers in just one year.

More than

70%

of our customers go digital for
customer service transactions.

300,000

customers who walk an average

8,000

steps a day.

ENTERTAINING SINGAPORE AMID
COVID-19

Singtel CAST app users grew more than

2x and viewership 3x.

DELIGHTING CUSTOMERS WITH
DIGITAL LIFESTYLE SERVICES
We continue to expand the range
of digital services and benefits to
complement customers’ lifestyles
and provide a differentiated
experience. To connect with our
millennial customers on GOMO, our
all-digital mobile product that comes
with generous data allowances, we
introduced GOMO Pass, which

offers dining, shopping and activity
deals and rewards in Singapore and
the region.

them an easy and cost-effective way
to protect themselves and their
loved ones.

We made our first foray into the
insurance market, partnering
Income to introduce Singapore’s first
prepaid data plan that comes with
free personal insurance cover. As
many of our prepaid customers are
sole breadwinners, this plan gives

In addition, we broke new ground
with the launch of the wellness
platform, Singtel StepUp, on My
Singtel app. StepUp lets postpaid
mobile customers earn local mobile
data and redeem fitness products
and shopping vouchers with every

Group ConsumerSingaporestep they take. It has proven highly
popular with more than 300,000
customers signing up and clocking
over 157 billion steps since the launch.

purchase journey, with more options
for customers to interact with us and
switch seamlessly between online
and offline touch points.

island without the need to lay fibre
network cables, and serve
customers with faster and more
seamless transactions.

CONNECTING CUSTOMERS TO
QUALITY CONTENT
We have pulled ahead as Singapore’s
number one pay-TV provider, with
customers responding positively to
quality content offerings including
Hong Kong’s TVB Jade and TVB
Xing He channels at home and on
the go. As more customers turn to
streaming content, Singtel CAST
added seven specially curated
packs to its line-up and doubled its
customer base in just a year.

With people having to stay in as
a result of the prolonged COVID-19
situation, we offered free access
to 95,000 hours of shows for three
months, as part of a care package to
bring some relief and entertainment
to not only our customers but
everyone in Singapore while they
stay safe at home.

DELIVERING A NEXT-
GENERATION SHOPPING AND
CUSTOMER EXPERIENCE
We are also simplifying the

We have seen some of our digital
platforms take off in the past year
as many customers embrace our
chatbot Shirley and My Singtel app
to interact with us. Over 1 million
customers use My Singtel app
while 34% of them prefer to make
purchases online.

Our digitalisation efforts extend to
shaping the future of retail to
deliver added convenience and
a next-generation experience to
customers. Last year, we launched
UNBOXED by Singtel, Singapore’s
first unmanned 24/7 pop-up store
where customers can sign up for
services, instantly replace SIM cards,
purchase prepaid cards, collect
devices and more.

We continue to enhance the
UNBOXED experience, upping the
ante in retail innovation by powering
the store with 5G connectivity.
With 5G’s low latency and high
speeds, UNBOXED can now be
easily relocated anywhere on the

ADVANCING OUR 5G JOURNEY
To ensure our customers keep
enjoying high-quality and reliable
connections, we continue to invest
in our network to enhance our
network superiority. Our efforts have
been recognised by leading crowd-
sourced benchmarking sites which
ranked Singtel as Singapore’s fastest
and widest mobile network.

We are developing new capabilities
in advanced technologies such
as network slicing, which enables
the optimised use of different
applications on the same network
infrastructure. This will pave
the way for new consumer use
cases that we are exploring and
co-developing in anticipation of the
arrival of 5G. Together with IMDA
and Razer, we launched the
nation’s first 5G cloud gaming
trial, focusing on developing 5G
connectivity to support immersive
gaming on mobile devices.

SINGTEL
ST PUP

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWBUSINESS REVIEWSGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONOptus connects more than 10 million customers via our premium mobile and fixed network,
with strong customer value propositions and our commitment to exceptional service. With
our offers for 5G both in the home and on the go, Optus is rolling out 5G at a time when it is
more important than ever for our customers to stay connected.

PREMIUM SPORTS CONTENT

LEADING IN 5G

Optus Sport connects over

820,000

customers to Premier League and
international football content.

More than

800

5G sites in major Australian cities.

INCREASED DIGITAL ENGAGEMENT

STRONG NATIONWIDE NETWORK

Downloads for
My Optus app increased

15%

from a year ago.

Optus currently has more than

8,100

network sites across Australia.

ADJUSTING TO THE NEW NORMAL
In response to COVID-19, the
Australian Government asked people
to stay home, which meant customers
were relying on our network more
than ever to work, learn, entertain
themselves and even socialise.
Our network responded well, and
customers are benefitting from our
strong, nationwide coverage.

Optus Sport’s exclusive live coverage
of the 2019/2020 Premier League,
UEFA Champions League and
Women’s World Cup has continued
to delight viewers and fuelled record
audience numbers for Optus Sport.
The gripping action kept our 820,000
subscribers happy and engaged
during this period.

We have shown our strong
commitment to Australia and our
customers and colleagues as the
impacts are felt around the world.
Optus led the market in offering
customers free bonus data and
waiving frontline healthcare workers’
postpaid mobile access fees for
three months to demonstrate our
appreciation. We also put in place
several measures to assist customers
and businesses facing hardship.

Global restrictions on travel and
people movement have impacted
our call centre capacity. We quickly
retrained our store colleagues,
as well as hired new people from
businesses in affected industries like
travel, in Australia, and have been

encouraging customers to utilise our
digital channels, including messaging,
so they can find the answers they
need quickly.

CREATING THE CUSTOMER-
CENTRIC 5G NETWORK OF
THE FUTURE
We are focused on ensuring our
customers receive reliable excellent
connectivity experiences at home as
well as on the go, and this underpins
our continued investment in the
rollout of capacity in our 4G and
5G networks.

Over 220,000 Australian households
have access to the benefits of 5G
Home Internet. Our service provides
very fast broadband access, with

Group ConsumerAustraliaselect the data that they need, and
add the features — like roaming and
international calls — all in the way
that best suits them. Optus One is
for those customers who simply
want the best of everything: one-
to-one service, dedicated support,
network priority and a massive
500GB of data.

a minimum 50Mbps guaranteed
speed, although most customers
are experiencing average speeds of
around 150Mbps. We have received
very positive feedback on the easy
installation and excellent performance
from Optus 5G Home customers.

We are also stocking select 5G
handsets and will continue to offer
additional 5G handsets as technology
partners launch them, so our
customers can enjoy 5G Mobile
as well.

DELIVERING SPECIALISED,
PERSONALISED SERVICE AND
PRODUCTS
In response to customer feedback,
Optus launched our unique NBN
Concierge Service to support
customers transitioning to the
National Broadband Network (NBN).
As part of this service, each

customer is personally assigned a
dedicated Home Connection Expert
as their primary point of contact
during installation to ensure a
seamless connection experience.
This eases what has proven, in the
past, to be a frustrating NBN transition
process for Australian consumers.

We have also provided our customers
with more control through additional
digital features and options, like the
Optus Assistant. This feature delivers
personalised answers to questions
regarding billing and re-contracting,
anytime a customer wants it, without
having to queue in-store.

Even our new mobile phone plans,
Optus Choice and Optus One,
provide customers with the ability
to tailor their plans. Optus Choice
allows customers to choose the
device they want or bring their own,

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWBUSINESS REVIEWSGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONTHE CEO CONVERSATION

Keeping a pulse on what
customers want

The digital revolution is rapidly transforming the business environment and raising
customers’ demands. We ask Consumer Singapore CEO Yuen Kuan Moon and Optus CEO
Kelly Bayer Rosmarin to share how Singtel and Optus are keeping pace and reinventing
the customer experience.

How have consumer needs been evolving and how have
Singtel and Optus responded to these changes?

Moon: Today’s consumers have become much savvier
and more discerning, looking beyond price to engage
with companies that understand their needs, particularly
their digital lifestyles. Whether it’s running daily errands
or leisure pursuits, consumers are seeking experiences
that are simpler, more effortless and customised to
their needs. Our digital services and benefits are
evolving to appeal to all customer segments. Last year,
we introduced a wellness platform, StepUp, which
has been an overwhelming success with customers
young and old. In the six months since its launch, over
300,000 have signed up to earn free mobile data and
enjoy lifestyle products and services rewards. Having
created this positive digital engagement, we intend
to build on this momentum to deliver more of such
services on My Singtel and GOMO mobile apps.

As competition ramps up, we believe it is more important
than ever to stay ahead by focusing on delivering the best
value, exceptional service and a high-quality network
for our customers.

Kelly: Customers, more than ever, expect seamless
experiences and want choice and transparency. These
expectations are increasingly raised by best-in-class
digital providers across multiple industries.

We have been responding by simplifying our experiences,
digitalising as many interactions as possible, and
introducing new plans that provide options for customers
to choose their own features and price points. We have

also rolled out a ‘signature’ concierge service for
our customers moving to Optus NBN in their homes,
transforming a challenging process into one that is
positive, reliable and has increased customer satisfaction.

Singtel and Optus have spoken about going big on
digital. How has the progress been?

Moon: We have made big strides in shifting customer
engagement to our digital platforms. Over 70% of our
customers prefer the immediacy of interacting with us
through our self-help channels such as our 24/7 web and
WhatsApp digital chats. We will continue to make further
investments, not just in more digital channels, but also in
technology such as analytics, AI and machine learning.
This will help us understand our customers better so we
can provide more intuitive and personalised interactions.

We’ve also harnessed digital to capture more of the
millennial market. Our all-digital mobile product GOMO
has seen more than 80,000 customer sign-ups and
registered an exceptional Net Promoter Score, which
measures customer advocacy, in just one year. GOMO’s
success has been repeated in Indonesia with our regional
associate Telkomsel’s launch of sister brand, by.U.

Kelly: We continually develop the My Optus app to ensure
most of what our customers need can be accessed on the
spot, including sending us messages if help is required.
The app is rated 4.6 stars in the App Store and our
aspiration is to drive it even higher. We are also using
automation to deliver a more personalised, satisfying
service. Our Robotics Operations Centre drives excellence
across our automation initiatives, operating more than

Group Consumer
100 bots that make up our ‘digital workforce’. They help
us with routine queries, allowing our employees to provide
swifter service for more complicated customer requests.
AI and automation are also helping us optimise our
network design, improve our supply chain, find the
best new talent and decrease the time it takes for new
customers to join the Optus network.

Now that the 5G era has arrived, tell us what
customers can look forward to and how you see your
business transforming.

Moon: Singapore is in an ideal position to roll out 5G with
robust infrastructure and backhaul fibre connectivity to
support the deployment of coverage. We are pleased to
be awarded with a 5G licence from IMDA that will see the
rollout of nationwide 5G coverage in Singapore by 2025.

I have seen first-hand, the transitions from 2G to 3G
to 4G during my time at Singtel and each change has
been a catalyst for innovation. I’m excited that Singtel
has the opportunity to take the lead in unlocking exciting
experiences that will bring 5G to life, in areas such as
learning, entertainment, gaming and healthcare.

We are already exploring and co-developing use
cases to identify new 5G consumer innovations that can
enhance customers’ experiences and deliver new and
exciting products and services. For instance, we are
working with IMDA and Razer on a trial to optimise 5G
connectivity for graphics-intense mobile gaming
on the go.

Kelly: 5G will transform the way we live, learn, consume
entertainment, communicate and conduct business. We
are bringing this to life for our customers today through
our 5G home product which is available to 220,000
Australian households. Customers using this 5G service
as an alternative to fixed home internet are experiencing
fantastic speeds. We also offer 5G Mobile and a wide
range of 5G phones.

With the pandemic accelerating
digital adoption, our key priority
is to focus on delivering new services
and experiences in anticipation of
customers’ evolved expectations
and demands. At the same time, we
continue to invest in our networks
so it can handle the huge volume of
video and data traffic that customers
are increasingly consuming.

YUEN KUAN MOON
CEO, Consumer Singapore

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWBUSINESS REVIEWSGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONTHE CEO CONVERSATION

We are creating a 5G virtualised network that detects and
adapts to how it is being used, and we will be working to
tailor features for our customers to choose, delivering the
ultimate, curated experience for customers, businesses
and whole communities.

What impact has the COVID-19 pandemic had on Singtel
and Optus?

Moon: We empathise with our customers, businesses
and the community and recognise the challenges they
are facing during this trying period. Even amid a time
of social distancing, our frontline staff and those in
critical functions are still on the ground ensuring that our
customers are well supported with robust connectivity.

We also put together a care package to hopefully bring
some cheer and relief to the community. This includes
free access to entertainment for everyone in Singapore
and free COVID-19 insurance coverage for our prepaid
customers. We also supported disadvantaged students,
sponsoring SIMs and WiFi dongles to assist in home-based
learning. As a tech company, it’s our duty to ensure no
one gets left behind in the digital era.

This period has triggered a change in consumer behaviour,
driving digitalisation across all ages and groups. Customers
are relying more on digital technologies to keep in touch,
and we’ve seen a growth in broadband and mobile
usage and network traffic. Our digitalisation efforts and
investments have helped us respond to increased digital
adoption and manage the surge in data traffic, putting us
in good stead for a post-COVID world where these
trends continue.

Kelly: Our hearts go out to all the people, businesses
and communities that have been affected. The entire
Optus team is dedicated to ensuring our network is
strong, so we keep all our customers connected. We have
introduced a number of initiatives including offering
bonus data to our customers, providing support for
customers facing challenging times, waiving postpaid
mobile access fees for three months to thank healthcare

workers on the front lines, offering hibernation of
accounts for affected small businesses, and access to
our Loop Live collaboration solutions for our business
customers. We are also playing our role to keep people
positive with a campaign encouraging our communities to
reach out daily to friends, relatives, older people and ask
how they’re doing and share some optimism.

Optus and our charity partners also launched ‘Donate
Your Data’ which empowers customers to support young
people from disadvantaged backgrounds who may not
have access to connectivity. In the five months since the
launch, more than 200,000 customers have donated
5 million GB of mobile data.

Financially, there will be implications as the economic
conditions and global lockdowns affect our customers
and people, but we are stepping up to the challenge and
managing the business to do the right thing for the
long haul.

What are your priorities for the year ahead?

Moon: With the pandemic accelerating digital adoption,
our key priority is to focus on delivering new services
and experiences in anticipation of customers’ evolved
expectations and demands. At the same time, we
continue to invest in our networks so it can handle the
huge volume of video and data traffic that customers
are increasingly consuming.

We will deepen our digitalisation efforts in product and
service innovation, process optimisation, as well as
expand on our range of digital services. With the success
of our StepUp wellness platform, we are embarking on
more strategic partnerships with lifestyle players to bring
fresh experiences that will enhance our customers’
digital lifestyles.

Retail innovations have proven just as popular with our
customers. Our 24/7 unmanned pop-up store, UNBOXED,
performed very well in the one year since its launch. It has
attracted more than 50,000 customers to date, delivering

Group Consumera customer experience score of 96%. With the greater need
for social distancing, the contactless shopping experience
offered by UNBOXED is especially relevant, and we are
looking to expand this concept in the coming year.

Kelly: Our priorities are clear — keep Australia connected
and ensure our teams and our network, are strong and
operating at the highest possible level. We have launched
a new strategy to help us become Australia’s most loved
everyday brand with lasting customer relationships, which
will require our teams to work together to ensure we focus
on reimagining our customer journeys, digitalising and
simplifying our processes and continuing to invest in our
capabilities. For example, we’ve launched our new Choice
Plans offering customers the ability to tailor plans to their
needs and budgets, and our My Optus app remains the
leading rated telco app in the App Store.

It will be a challenging year. However, we have strong
business fundamentals in place and provide our customers
and communities with an essential service that is more
important now than ever.

Our hearts go out to all the
people, businesses and
communities that have been
affected. The entire Optus team
is dedicated to ensuring our
network is strong, so we keep all
our customers connected.

KELLY BAYER ROSMARIN
CEO, Optus

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWBUSINESS REVIEWSGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONOur regional associates are striving to set new standards of innovation and service and
investing in 5G to deliver better digital experiences for mobile-first customers in their
markets. As a Group, we are drawing on our collective expertise and 700 million-strong
customer base to grow our regional digital ecosystem in mobile financial services, gaming
and digital content.

GROWING THE GROUP’S
MOBILE WALLETS

CONNECTING WITH GEN Z’S AND
MILLENNIALS THROUGH ESPORTS

Singtel, Airtel Africa and India, AIS,
Globe and Telkomsel’s mobile wallets
have a combined total of

119m

users.

PVP corporate and campus
leagues attracted

2,000

participating gamers from across
Southeast Asia and

1.4m

online views in 2019.

FORGING AHEAD WITH
NEXT-GENERATION NETWORKS
As we transition to a 5G future, our
associates continue to strengthen
their core business offerings and
maintain their positions as some of
the leading telcos in their respective
markets, with a collective S$8 billion
invested in network capabilities to
ensure faster, seamless connections
for our growing customer base.

Our associates have made significant
progress in 5G deployment. With
Globe’s launch of Globe at Home
Air Fibre 5G plans, the Philippines
became the first Southeast Asian
country to experience commercial
5G fixed wireless broadband,
allowing customers to enjoy speeds
rivalling those offered by fibre.

AIS acquired 5G spectrum in February
2020 and became the first operator

in Thailand to launch 5G. It is focused
on research and development, testing
and trialling 5G use cases with its
partners to develop commercial
use cases in both the consumer and
enterprise segments. In Indonesia,
Telkomsel successfully conducted
5G trials in Batam and deployed an
additional 24,000 base transceiver
stations. Its LTE network now reaches
95% of the population, ensuring
4G penetration continues to increase.

ENGAGING YOUNG, DIGITAL-
FIRST CUSTOMERS
Over a third of our 700 million
customers are young and digitally
savvy and we continue to engage
them with innovative digital products
and services. Telkomsel launched its
first digital prepaid mobile service
by.U, giving Gen Zs the flexibility of
customising services directly, while
Airtel relaunched #AirtelThanks,

its flagship customer programme
delivering tailored content, lifestyle
rewards and experiences.

Our associates collaborate with
leading brands across e-commerce,
entertainment and games on
exclusive digital content and service
bundles for customers. AIS engages
youth who are heavy data users with
their ZEED Prepaid SIM, partnering
Facebook Gaming and YouTube
to provide unlimited data. Globe and
Telkomsel deliver a growing line-up
of content offerings through their
GoSurf prepaid plans and MAXstream
streaming packages respectively and
Airtel’s Amazon partnership offers
free subscriptions to Prime bundled
with voice, data and SMS.

Singtel also serves the passions of
young gamers through PVP Esports,
which has firmly entrenched itself

Group ConsumerRegional Associatesproviding added convenience and
driving financial inclusion.

complimentary COVID-19 insurance,
in partnership with Income.

as a force for gaming in the region.
In 2019, PVP Esports’ social content
reached over 21.8 million across
Southeast Asia, and as the official
esports presenter of Singapore Comic
Con, PVP Esports attracted 50,000
visitors to its community league finals.
Building on this success, the 2020
edition has been scaled up to two
editions with more game titles.

In Singapore, our mobile wallet
Dash has evolved beyond enabling
payments for everyday activities
like shopping and public transit,
to providing lifestyle services like
restaurant reservations and travel
insurance.

We also announced a regional joint
venture with AIS and South Korean
gaming giant SK Telecom to reinforce
our presence in gaming by developing
new gaming-related revenue
streams with partners’ gaming and
entertainment content offerings.

ENHANCING MOBILE FINANCIAL
SERVICES
As lifestyles become increasingly
digital, we have enhanced our mobile
financial offerings to become a
meaningful part of customers’ lives,

Dash has enabled customers to stay
safe and stay home during COVID-19.
Customers have been able to make
payments for their online purchases
with the Dash Visa Virtual Account
and remit money to their loved ones
in any of the seven countries served
by Dash including Malaysia, the
latest addition to its network. This
led to a 70% spike in remittance and
more than double the number of
new remittance customers in April
compared to February. Dash also
supported remittance customers with

Regionally, we saw the successful
launch of LinkAja!, a merger of
Telkomsel’s e-wallet service with
those of other state-owned banks.
Airtel Africa partnered leading
financial institutions like Finablr
and Mastercard to improve access
to financial services. We have also
strengthened our cross-border
mobile payment alliance VIA,
expanding to welcome new partners
and reach new markets.

Together with Grab, we are taking
a further step in mobile financial
services with a joint application for a
digital full bank licence in Singapore.
We aim to create a differentiated
banking experience to cater to the
underserved needs of both consumers
and enterprises.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWBUSINESS REVIEWSGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONTHE CEO CONVERSATION

Forging ahead in mobile
financial services and digital
entertainment

As consumers embrace increasingly digital lifestyles in the region, customer expectations
have evolved. International Group CEO Arthur Lang talks about the Group’s focus on
technology, content and innovation, and strategic partnerships to gain a stronger
competitive edge.

Singtel’s regional associates continue to face intense
competition amid other challenges. Where are the
bright spots?

Arthur: 2019 was a bumpy year but our associates held
their ground in a highly competitive landscape. Airtel in
particular gained market share and recorded four straight
quarters of growth in its mobile business. The industry-
wide price recovery is encouraging and points to a
possible market turnaround. Despite the unexpected
regulatory decisions in India, we believe Airtel is in a good
position to ride the upturn, with a stronger balance
sheet from over US$7 billion in fresh funds raised last year,
a healthier industry structure and the positive trajectory
of its mobile business.

Airtel Africa also saw positive momentum which topped
off a strong year with two milestone achievements:
crossing the 100 million subscriber mark and a successful
dual listing. AIS, Globe and Telkomsel delivered solid
growth numbers across service and data revenue
year-on-year.

Our associates have been focused on strengthening
their core business offerings and positioning for future
growth. They collectively invested over S$8 billion in
network improvements to ensure faster, seamless
connections for our growing customer base. Last year,
Globe became the first operator in Southeast Asia to
launch 5G fixed wireless home broadband while AIS
also achieved a first in Thailand when it launched 5G
in March 2020.

These investments in networks and digital innovation
are even more important now that many of us are
adapting to a new way of life due to COVID-19. The speed
of digital adoption since the outbreak has solidified our
role in helping consumers and businesses stay connected.
We’ve been supporting customers with the digital services
and connectivity crucial to their day-to-day tasks such as
data top-ups, mobile remittances and collaboration tools
to make working from home easier.

We’re committed to working closely with our associates to
grow their digital and enterprise businesses, leveraging
their leading market positions as well as the Group’s scale
and operating experience.

It has been an eventful year for Dash and VIA with
new offerings and partnerships. What can we expect
to see next?

Arthur: It’s exciting to see Dash grow from strength
to strength and reach over a million registered users.
Our goal is for Dash to become an integral part of our
customers’ lives, whether it’s paying for hawker food or
commuting, remitting money or insurance. We’re planning
to expand Dash’s offerings to include more services in
insurance and cash management.

We will continue to grow VIA, our cross-border mobile
payment alliance. In this digital economy, scale is
really what counts, and partnerships are key to achieving
this scale. We’re pleased to have welcomed two leading
players, OCBC Bank and Thailand’s KASIKORNBANK,

Group Consumerto the alliance. We look forward to more partners joining
in the near future, and we expect VIA to reach some
50 million consumers and 2 million merchants across
Singapore, Thailand, Malaysia, Indonesia and Japan
this year.

Singtel and Grab have teamed up to bid for a digital
banking licence in Singapore. Why is Singtel interested in
exploring this new venture?

Arthur: We believe digital banking would be a natural
extension of the mobile financial services we already
offer. With Grab, we have complementary ecosystems
and combined synergies in digital, fintech know-how and
customer insights, which would enable us to present a
new, digital-first model of banking based on simplicity
and affordability. There is an opportunity here to serve
many other consumers and small businesses underserved
in Singapore, and we are excited about the possibility of
winning one of the first digital bank licences in Singapore
to better meet these needs.

In Southeast Asia, the majority of the adult population is
underbanked or unbanked but mobile adoption is high.
We believe fintech can make the difference, and we hope
to continue driving innovation and financial inclusion
across our regional footprint, just as we’re doing with
Dash and VIA.

Beyond financial services, you also have plans to grow
your digital entertainment businesses. What are some of
the recent initiatives?

Arthur: We’ve been stepping up our gaming and esports
initiatives with our associates as part of our strategy to
grow digital content for millennials and Gen Zs across the
region. We see great potential in Southeast Asia where
over 200 million are gamers. With PVP Esports, we hope to
develop a vibrant and healthy gaming community, uniting
gamers over their passion and providing opportunities to
level up their play.

We’ve also recently joined hands with South Korea’s
SK Telecom and AIS for a regional joint venture. This
exciting strategic investment will see us partner leading
international game developers and leverage our partners’
wealth of knowledge in esports and gaming and their
strong entertainment content offering to engage gamers
across the Asia Pacific. We welcome more strategic
partners and potential investors to join us as we build
something truly unique for Asia’s gaming industry.

Our associates have been focused
on strengthening their core business
offerings and positioning for future
growth. We’re committed to working
closely with them to grow their
digital and enterprise businesses,
leveraging their leading market
positions as well as the Group’s
scale and operating experience.

ARTHUR LANG
CEO, International Group

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWBUSINESS REVIEWSGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATION49

Group
Enterprise

GEARING UP FOR A DIGITAL
AND HYPER-CONNECTED
FUTURE

We are living in exciting times as the arrival of 5G
promises to accelerate digital transformation at an
unparalleled pace, unleashing greater innovation.
Enterprises can harness the power of emerging
technologies such as IoT, AI and the like to reinvent
themselves and future-proof their business. With
our extensive assets and deep ICT capabilities, we
are empowering enterprises with the solutions they
need to thrive in an intelligently connected future.

Singapore Telecommunications Limited | Annual Report 2020

With the onset of COVID-19, digitalisation is no longer a ‘nice to have’ but a ‘must-have’
for enterprises. Group Enterprise has mobilised our resources to help enterprises stay
connected, agile and secure. We are also helping prepare enterprises for the upturn by
enhancing our overall ICT capabilities to accelerate their digital transformation.

ENHANCING OUR
CONNECTIVITY

PREPARING A
CYBER-READY
WORKFORCE

ENABLING
ENTERPRISES TO
GO DIGITAL
DURING COVID-19

INDIGO West and INDIGO
Central submarine cable
systems linking Southeast Asia
to Australia span

9,200km.

15,000

students and professionals
trained at the Singtel Cyber
Security Institute since 2017.

Sign-ups for conferencing
solution Singtel BizConference
have risen more than

2.5x.

SUPPORTING ENTERPRISES
THROUGH COVID-19
The COVID-19 pandemic has
wreaked havoc on companies
worldwide. To keep their operations
going, many companies have
resorted to working remotely and
splitting their teams as part of social
distancing measures to avoid the
COVID-19 spread.

Singtel responded quickly by
bundling a suite of services including
flexible internet connections, mobile
service plans and conferencing
solutions, allowing enterprises to
communicate and collaborate
securely. We also expanded our
network capacity in Singapore and
Australia to cater to the surge in
bandwidth as companies activated
work-from-home arrangements.

With SMEs adversely affected,
we provided free usage of these
productivity, collaboration and security
tools, enabling them to minimise
business disruptions while keeping
their staff safe. In Singapore, we have
also given SMEs access to our 99%SME
e-marketplace at no cost, helping
them build a digital presence and
reach online consumers. In Australia,
we are providing collaboration,
mobility, cyber security and enhanced
network solutions with free trials, no
contract or free cancellation terms.

ENABLING DIGITAL
TRANSFORMATION
The cloud is central to the digital
transformation strategy of enterprises
seeking to scale faster and operate
more efficiently. By moving data,
workloads, and resources to the cloud,

enterprises can easily access them
across devices at any time, giving
them the flexibility and agility to
meet dynamic business needs. We
provide a robust and comprehensive
range of cloud services such as
digital transformation consultation,
application modernisation, workload
migration, and cloud automation and
security, enabling enterprises to fully
reap the benefits of the cloud.

Our industry-leading services are
complemented by our network of
interconnected, secure data centres
where enterprises’ clouds are hosted.
In the past year, we have attracted
several major cloud providers and
financial services and technology
customers requiring resilient, well-
connected and scalable data centres
to host their cloud platforms.

Group Enterprise
STRENGTHENING
CORE CAPABILITIES AND
INFRASTRUCTURE
We continue to strengthen and
enhance the resiliency of our
networks and infrastructure in order
to cater for new technologies that rely
on low latency and high-bandwidth
connectivity. We completed the
construction of the INDIGO West
and INDIGO Central submarine
cable systems linking Southeast Asia
to Perth and Sydney in Australia
respectively. We also expanded our
network in the Southern Hemisphere
with the construction of Southern
Cross NEXT to connect Australia,
New Zealand and the United States.

KEEPING ENTERPRISES SECURE
With cyber threats growing in
frequency and sophistication, we
have reinforced our capabilities

by launching the Trustwave Fusion
Platform which functions as a
‘mobile Security Operations Centre’,
providing enterprises with real-time
insights on their security status.
Together with Trustwave SpiderLabs
Fusion Centre’s global threat
intelligence, they can respond faster
to potential threats, reducing
the window of opportunity for
attackers, as well as minimising
damage caused.

GEARING UP FOR 5G
Our efforts to help enterprises
accelerate their digitalisation will
be boosted with the imminent
arrival of 5G from June 2020, which
promises to power advanced
technologies such as IoT, AI and
augmented or virtual reality.
With our subsidiary Optus, we
are laying the foundation for the

adoption of 5G in Australia and
Singapore by partnering technology,
equipment and solution providers
to create ecosystems where
stakeholders can collaborate to
develop potential use cases
and solutions.

Together with Singapore’s A*STAR
and JTC, we are helping companies
develop next-generation Industry 4.0
manufacturing solutions at the
Advanced Remanufacturing and
Technology Centre. We are also
working with PSA and IMDA to
develop 5G applications for port
operations at the Pasir Panjang
Terminal which could be used at
the future Tuas Port to reinforce
Singapore’s position as a leading
transhipment and container hub.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWBUSINESS REVIEWSGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONTHE CEO CONVERSATION

Digitalising out of COVID-19

Businesses have been massively disrupted by COVID-19 with many opting to go digital to
operate remotely and transact in contactless ways in order to overcome the crisis. Group
Enterprise CEO Bill Chang says this forced digitalisation could well be a silver lining for
companies as they emerge from this disruption.

Should enterprises think about transformation as they
grapple with the impact of COVID-19?

Bill: Enterprises haven’t had a choice. The nature of
the pandemic and the need to socially distance have
forced companies to go digital to connect with their
employees, customers, suppliers and partners. In a
matter of months, this has triggered a massive global
adoption of technologies that enable work-from-home
communication and collaboration. With people turning
to digital solutions for contactless or remote ways to
get through the crisis, cyber risks have also risen,
which is another thing that enterprises are having
to grapple with.

Enterprises should see the COVID-19 crisis as an
opportunity to transform their businesses digitally. The
ones that survive and emerge stronger would undoubtedly
have embraced digital in one way or another. We expect
many of them to continue using digital to evolve and scale
in the post-COVID world, having experienced the benefits
and efficiencies of going digital.

Digital transformation involves more than adopting
the latest technologies. How should enterprises
transform digitally?

Bill: To adopt digital technologies effectively, enterprises
must have a clear vision of how their business will operate
during and post-COVID and develop a transformation
roadmap to achieve their vision.

Investing in the digital skillsets of their workforce is also
critical for enterprises to make the successful transition
to a digital future. Through the Singapore government’s
TechSkills Accelerator scheme, enterprises can train
their workforce in digital technologies.

As companies expand their digital footprint, the risk
of cyber threats is bound to grow. Enterprises must defend
themselves against such risks to prevent data loss which
can impact their operations and damage their branding.

How is Singtel helping enterprises that have embarked
on the digitalisation move to the next level?

Bill: Singtel and our subsidiary NCS can help enterprises
digitalise with our combined deep experience and vast
digital expertise. We can partner any enterprise at any
stage of their digital transformation journey. Our
purpose-built FutureNow Innovation Centre provides
an experiential platform for enterprises to discover how
digital technologies such as cloud, analytics, 5G, IoT
and AI can help them reimagine their operational or
business models. This can help them innovate, enhance
productivity and redefine customer experiences.

We’ve also established a Centre of Digital Excellence
to train and equip enterprises with digital skills such as
design thinking and data analytics to accelerate their
digital transformation. As their transformation partner,
we will help our customers ascertain their digital needs
and, wherever viable, co-create new solutions.

Enterprises can also gain a deeper understanding of
cyber threats at our Advanced Security Centre and work
with us to build a robust cyber defence.

With Australia having launched 5G services
and Singapore to follow later this year, how can
enterprises leverage 5G to innovate and sharpen their
competitiveness?

Bill: 5G is expected to revolutionise industries and
companies. Its combo of higher speed and lower latency

Group Enterprisewill enable the optimisation of a plethora of new
technologies such as AI, augmented, virtual or mixed
reality, robotics, mobile edge computing and massive IoT
deployments. We see 5G serving as the launchpad and
digital acceleration platform for enterprises to produce
even more innovative and transformative solutions.

In Singapore, we’re working with several enterprises on
their 5G proof-of-concept trials and we’ll facilitate the
development of solutions with our 5G platform where
application developers can easily build and distribute
their offerings directly to enterprises and consumers. In
Australia, Optus has begun to roll out its 5G network across
several areas in major cities. We’re engaging businesses
to trial our 5G platform and working with an ecosystem of
partners to co-create 5G solutions. We’re also ramping up
5G research by partnering Curtin University.

As the cyber threat landscape becomes more
sophisticated, how is Singtel protecting enterprises from
these fast-evolving threats?

Bill: Digitalisation and hyper-connectivity allow enterprises
to innovate faster and operate with agility and efficiency.
However, they also increase cyber threats, making
enterprises more vulnerable to social engineering phishing
scams, data loss and disruptions through ransomware and
more sophisticated advanced persistent threats.

To help enterprises strengthen their defences, our global
cyber security arm, Trustwave, hones its capabilities
in managed security, including threat intelligence and
active threat hunting, security consulting and professional
services and advanced technology services. Its global
network of security operations centres and expertise,
including Trustwave SpiderLabs Fusion Centre, a leading-
edge cyber command facility, provide real-time global
threat intelligence, enabling our managed security
services to respond to threats as they happen.

We can also help enterprises review and implement
information security policies and procedures, validate
incident response plans and ensure data compliance.
Additionally, our elite team of specialists including ethical
hackers, threat hunters, forensic investigators and
researchers at Trustwave SpiderLabs and our corporate
lab, have the spectrum of expertise needed to solve
complex, evolving cyber threats.

Enterprises should see the
COVID-19 crisis as an opportunity
to transform their businesses
digitally. The ones that survive and
emerge stronger would undoubtedly
have embraced digital in one way
or another. We expect many of them
to continue using digital to evolve
and scale in the post-COVID world,
having experienced the benefits and
efficiencies of going digital.

BILL CHANG
CEO, Group Enterprise

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWBUSINESS REVIEWSGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGroup
Digital
Life

TRANSFORMING THE
CUSTOMER EXPERIENCE
WITH INNOVATION

Consumers today are more discerning than ever,
expecting much more from brands. On the lookout for
more than just a good deal, they want a seamless and
personalised customer journey that revolves around
their lifestyles. Likewise, citizens and visitors value a
public service experience that’s smooth, easy and fast.
To help businesses and government agencies better
engage with their customers and stakeholders, we
equip them with the tools to create positive experiences
and services based on insights from mobility data
analytics and media consumption patterns.

VIA connects more than

Singapore Telecommunications Limited | Annual Report 2020

Group Digital Life

By forging strategic partnerships and driving innovation, Group Digital Life is providing
businesses deeper and more meaningful customer insights to help them plug into the right
stage of customers’ journeys and optimise the way services are delivered.

EMPOWERING
MARKETERS
TO CAPTURE DIGITAL
OPPORTUNITIES

DRIVING A CYBER-SECURE FUTURE

As a founding partner of the Innovation
Cybersecurity Ecosystem @ Block 71 (ICE71),
Innov8 has accelerated the growth of

cyber security start-ups since 2018, helping
them to go to market and scale in the region.

Amobee’s new data
marketplace gives advertisers
access to more than

60,000

audience segments, arming
them with insights to create
targeted bespoke campaigns
for connected TV.

DELIVERING MOBILITY DATA ANALYTICS
SOLUTIONS

Over
mobility data points are analysed daily in
Australia and Singapore, providing actionable
insights to enterprises.

AMOBEE LEADS IN
CONVERGED TV AND DIGITAL
ADVERTISING
The advertising industry continues
to witness the convergence of
traditional and digital mediums,
especially in TV. However, due to
the fragmented nature of audience
data across mobile, desktop and
connected and linear TV screens,
advertisers struggle to target
common audience groups and
execute cross-channel campaigns.
Building on its acquisition of
Videology in 2018, Amobee is
strengthening its competencies

to bridge this chasm, and equip
businesses to effectively execute
campaigns for specific audience
segments across both traditional and
digital TV.

To enhance its capabilities in this
area, Amobee expanded its
partnership with ITV, the UK’s largest
commercial broadcaster. ITV launched
PlanetV, an advertising platform
powered by Amobee’s technology,
allowing brands to monitor their
campaigns 24/7 in real time and
combine data sets, in order to reach
out to new audience segments.

Another step in deepening Amobee’s
foray into cross-channel TV is
a partnership with Gracenote, a
Nielsen software company. Amobee is
offering Amobee 4Screen, a solution
that applies Nielsen-generated
demographics, the industry standard
for planning and buying ads, to
anonymised smart TV viewership and
ad data. This helps advertisers to
identify target audiences better and
build more accurate campaigns that
drive business results.

Amobee’s strengths in cross-channel
solutions was recognised by Forrester

government enhance visitor experience
and increase visitor arrivals.

digital healthcare, financial services
and next-generation networks.

which named it a leader in The
Forrester New Wave™: Cross-
Channel Video Advertising report.

DATASPARK MAINTAINS POSITIVE
MOMENTUM
Transport, tourism, telco, retail and
commercial property are growth
areas for DataSpark, as data and
mobility analytics play an increasingly
integral role in evolving these
industries. In Australia and Singapore,
DataSpark gained ground in out-
of-home advertising, with large
players taking on Data-as-a-Service
solutions to optimise their assets.
DataSpark Australia recorded wins
in transport, with major transport
authorities signing up for mobility
data services.

DataSpark also worked with Tourism
Research Australia to conduct
predictive analysis, in order to forecast
the impact of recent bushfires on
local and international tourism. These
findings have sparked discussions in
the Australian Parliamentary Senate
on bushfire relief funding.

In the same vein, DataSpark is also
supporting governments in the
region with a predictive method of
tracking the spread of COVID-19 and
understanding the socio-economic
impact of the virus. These use cases
are poised to pick up momentum as
the year progresses.

In support of South Australia’s plan
to grow the state’s visitor economy
to A$12.8 billion by 2030, DataSpark
Australia partnered with the South
Australian government and the
Massachusetts Institute of Technology
to set up a Living Lab at Adelaide’s
Lot Fourteen, the Silicon Valley of
Australia. The Lab will provide social
behaviour insights to help the

INNOV8 RAMPS UP INVESTMENT
IN NEXT-GENERATION
TECHNOLOGIES
Innovation remains a priority for
the Group, as we seek to capture
opportunities in the digital economy.
Innov8 focuses on investments in
technologies with the potential to
enhance the Group’s capabilities in
areas such as big data, cyber security,

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Noteworthy investments in 2019
include Halodoc, a healthcare
platform in Indonesia that enables
patients across the country to have
live consultations with more than
20,000 licensed doctors across the
country. Halodoc also partners
with Gojek, the leading delivery
platform in Indonesia, to deliver
medical prescriptions. In 2019, we
also invested in AiCure, an AI start-
up in the US, which draws insights
from video, audio and behavioural
data to help health practitioners
and pharmaceutical companies
accurately monitor how participants
respond to medication during
clinical trials.

In the area of financial services,
Innov8 invested in Kredivo, a fintech
start-up in Indonesia that allows
consumers to purchase goods online
on credit. Shoppers can apply for
a loan through a mobile app and get
approval in minutes if they qualify.

Singapore Telecommunications Limited | Annual Report 2020

THE CEO CONVERSATION

Harnessing the
power of digital

Singtel’s digital businesses are gearing up to seize opportunities created by an increasingly
connected world. Group Digital Life’s CEO Samba Natarajan shares insights on the digital
landscape and how the Group’s digital investments will continue scaling in Asia.

What were the key developments for Group Digital Life
in the past year and what’s the focus in the year ahead?

Samba: FY 2020 was a challenging year for our
businesses. Amobee faced intense competition as a slew
of new players entered the market, and the integration
of Videology, which we acquired in 2018, took longer
than expected.

We took the difficult decision of closing HOOQ as its
business model was no longer viable. Despite acquiring
millions of customers and becoming a leading platform
in Southeast Asia, HOOQ faced significant structural
changes in the streaming video market. With the high
cost of content and consumers’ willingness to pay
faltering amid an increasing array of choices, HOOQ
was not able to grow sufficiently to provide sustainable
returns nor cover content and operating costs.

In the coming year, we will continue to invest
meaningfully in new technology that will allow us to
create differentiation from our competitors. We are
also seizing opportunities in digital TV for Amobee and
leveraging the increasing demand for mobility data
analytics with DataSpark. Our focus is also to continue
investing in new growth engines through Innov8,
particularly digital health and fintech.

What does the future hold for the marketing
industry, and how is Amobee positioned to capitalise
on these trends?

the convergence of traditional and digital TV is resulting
in a lack of visibility of audiences across these channels.
Second, the imminent removal of third-party cookies from
web browsers will cut off a typical source of insights on
demographics and purchase patterns.

We have had a head start in offering converged
traditional and digital TV advertising solutions, to help
marketers resolve this issue and gain insights on TV
audiences, especially with Videology. This will be
particularly useful for businesses that spend on a mix of
both traditional and digital forms of advertising. With this
lead, we’re innovating ahead of our competitors to create
a full suite of converged advertising solutions.

To help marketers gain insights beyond those provided
by third-party cookies, we’ve built a range of brand
intelligence and data assets by inking significant
partnerships with data providers including Nielsen’s
software company Gracenote, and Vizio. Through these
partnerships, we will be able to give marketers more
accurate insights on audiences in a cookie-less world.

We’ve also launched a new line of business on the back of
a landmark partnership with ITV, one of the UK’s largest
broadcasters, to enable broadcasters to monetise
consumer views as consumption shifts from traditional
linear TV to video streaming.

DataSpark gained ground in FY 2020. How do you
envision continuing this traction in FY 2021?

Samba: Two key industry trends are set to challenge the
way marketers identify and reach their audience. First,

Samba: DataSpark has made positive strides in bringing
mobility data analytics to sectors such as transport and

Group Digital LifeWe’ll continue to invest
meaningfully in new technology
that will allow us to create
differentiation from our
competitors. We are also seizing
opportunities in digital TV for
Amobee and leveraging the
increasing demand for mobility
data analytics for DataSpark.

SAMBA NATARAJAN
CEO, Group Digital Life

out-of-home media in Singapore and Australia. The focus
for FY 2021 is to continue expanding into new areas where
such analytics offers a compelling advantage, such as
providing aggregated visibility on population mobility
patterns for healthcare and government agencies.

We have a good foothold in helping Optus and our
associates optimise spend based on analytics, and we
intend to replicate this for other mobile operators globally.
We will also look at combining insights from telco data
with first-party enterprise data in the consumer goods
sector, to deliver new use cases in advertising and store
inventory optimisation.

Innov8 has been building its investments in areas such
as fintech. Are these new growth drivers for the Group?

Samba: Innov8 continues to be a powerful platform for
the Singtel Group to keep a finger on the pulse of the
digital economy and innovation. It provides access to
leading solutions in areas that are important to us such
as big data, cyber security, digital healthcare, financial
services and next-generation networks.

For example, as we start to explore digital banking,
we are scouting for up-and-coming fintech start-ups
that are developing technology that could complement
core banking services. Through ICE71, the region’s
first cyber security entrepreneur hub founded by
Innov8 and NUS Enterprise, we stay on top of the latest
cyber trends, enabling us to defend our own assets
and those of our enterprise customers amid a rapidly
evolving threat landscape.

Innov8 also positions Singtel as the preferred 5G partner,
bringing us closer to the latest technologies that will
advance networks and use cases.

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Singapore Telecommunications Limited | Annual Report 2020

Business Excellence

Singtel
Asia eCommerce Awards 2019
• Best Use of User Interface / User
Experience Design: Gold (GOMO)
• Best Use of Artificial Intelligence:
Silver (GOMO)

Creative Circle Awards 2019
• Best use of Direct Digital Channels:
Gold (Premier League “Only True
Fans Get It”)
• Best use of Social & Messaging
Platforms: Gold (Premier League “Only
True Fans Get It”)
• Best use of Social Platforms: Gold

(Premier League “Only True Fans Get It”)

Event Marketing Awards 2020
• Best Use of Influencers: Silver (PVP Esports)

Federation of Asia-Pacific Retailers
Associations Awards 2019
• Most Innovative Retail Concept

Frost & Sullivan APAC Best Practices
Awards 2019
• Asia-Pacific Mobile Wallet Provider of

the Year (Dash)

• Singapore IoT Service Provider of the Year
• Secure IoT Service Provider of the Year
• Singapore Cloud Infrastructure
Competitive Strategy, Innovation &
Leadership Award
• Telecom Group of the Year

HardwareZone.com Tech Awards 2020
• Readers’ Choice: Best Broadband and
Mobile Service
• Readers’ Choice: Best Mobile Data
Roaming Service Provider

Marketing Excellence Awards 2019
• Excellence in Marketing Transformation:
Gold (Making Connections that Matter)
• Excellence in Performance Marketing:
Gold (GOMO)

Mob-Ex Awards 2019
• Best Use of Social Media: Bronze (GOMO)

SBR Listed Companies Award 2019
• Telecommunications (UNBOXED)

Singapore Media Awards 2019
• Best Insight-driven Campaign (GOMO)

Telecom Asia Awards 2019
• Best Broadband Carrier

World Communication Awards 2019
• Best Enterprise Service (Singtel
Liquid Infrastructure)
• The Broadband Pioneer (Singtel

Intelligent Fibre Broadband)

NCS
Channel Asia Innovation Awards 2019
• Partner Value — Enterprise

Trustwave
Frost & Sullivan APAC Best Practices
Awards 2019
• Southeast Asia and Singapore
Managed Security Service Provider of

the Year

PC3 Platinum Brand Award 2019
• Managed Security Services Provider
of the Year

SC Awards 2019
• Best Managed Security Service

Telecom Asia Awards 2019
• Best Managed Security Services Provider
of the Year

Optus
Australian Competition and Consumer
Commission: Measuring Broadband
Australia Report 2020
• Highest download speed scores

Australian Defence Magazine Essington
Lewis Awards 2019
• Winner (Repositioning of the Optus
C1 satellite)

Australian Communications Consumer
Action Network Awards 2019
• Challenger Champion of the Decade

Brand Finance Australia Top
100 Rankings
• Australia’s Strongest Brand
• 10th in Brand Value

GTI Group Awards 2020
• Winner: Innovative Breakthrough in
Mobile Technology Award (development
of Optus’ dual band 5G technology on
2300MHz and 3500MHz)
• Winner: Innovative Mobile Service and
Application Award (Optus’ Fixed Wireless
Access Home Broadband)

PEGA Conference Las Vegas 2019
• Business Impact Award: Winner

The CommsDay Edison Awards 2019
• Best Satellite Provider: Winner

Amobee
Adweek Best of Tech Readers’ Choice
Awards 2019
• Winner: Mobile Supply-side Platform

Asia Pacific Stevie Awards 2019
• Innovative Management in Technology
Industries — More than 100 Employees:

Bronze

Business Insider’s Hottest AdTech
Companies of 2019

Internet Advertising Competition
Awards 2019
• Best Transportation Online Campaign

(For Boeing and R&R Partners)

• Outstanding Social Media Campaign

(For Indeed)

International Business
Awards 2019
• Company of the Year — Advertising,
Marketing, & Public Relations —
Medium-size: Bronze

Martech Breakthrough Awards 2019
• Best Overall AdTech Company

Mumbrella Asia Awards 2019
• Marketing Technology Company of

the Year: Highly Commended

Regional Associates

AIS

Customer Experience Professionals
Australia Awards 2020
• Global winner: Innovation Award

Brand Finance Telecoms 300 2019
• World’s Strongest Telecoms
Brand 2019

Key Awards & Accolades

Stevie Awards 2019
• Great Employers of the Year in
Telecommunications: Gold

Telkomsel
Frost & Sullivan Best Practice Awards 2019
• Indonesia Mobile Data Service Provider
of the Year
• Indonesia Telecom Service Provider of

the Year

Influential Brands Awards 2019
• Top Brand in Telecommunications

World Branding Awards 2019
• Brand of the Year in Telecommunications —
Mobile (Indonesia)

Dow Jones Sustainability
Indices 2019
• World Index and Emerging Market

Index in Telecommunication Services

Ookla Speedtest Award
• Fastest mobile and fixed internet
network in Thailand for H1 2019

Airtel

App Annie Rankings October 2019
• Ranked India’s no. 1 music-streaming app
in terms of Daily Active Users (Wynk Music)

EFFIES 2020
• Marketing Campaign Effectiveness:
Bronze (Airtel Thanks campaign)

Marketing Edge Magazine Awards 2019
• Brand of the year (Airtel Nigeria)
• Most customer-centric brand (Airtel Nigeria)

TMT Finance Awards 2019
• EMEA TMT IPO of the Year 2019

Globe

ASEAN Corporate Governance
Scorecard 2019
• One of the Top Performing Publicly-
Listed Companies in the Philippines

Asia Corporate Excellence and
Sustainability Awards 2019
• Asia’s Best Workplace of the Year
• Industry Champion

Frost & Sullivan Asia Pacific Best Practices
Awards 2019
• Philippines Mobile Services Provider
of the Year
• Philippines Mobile Data Service Provider
of the Year
• Philippines Telecoms Service Provider
of the Year

OpenSignal Mobile Network Experience
Report 2019
• Ranked No. 1

HR Asia Awards 2019
• Best Company to Work for in Asia

Sustainability and Corporate Citizenship

Singtel
2020 Bloomberg Gender-Equality Index

2020 Global 100 World’s Most Sustainable
Corporations

Alpha Southeast Asia 9th Annual
Institutional Investor Awards for
Corporates (Singapore)
• Best Annual Report

CDP 2019
• A- Leadership score in Climate Change

Enabling Champion Award 2019
• Certificate of Recognition

FTSE4Good Index 2019

Health Promotion Board Singapore
HEALTH Award 2019
• Corporate Award: Excellence

President’s Award for the
Environment 2019

President’s Challenge Social Enterprise
Award 2019
• Social Enterprise Champion of the Year:
Finalist

The Leonie Awards 2019
• Top 10 Best Companies for
Gender Diversity

Women Corporate Directors Foundation
Visionary Award 2019
• Leadership and Governance for
a Public Company

Optus
APCO Awards 2019
• Industry Sector — Telecommunications:
Winner

GoodCompany Top 40 Best Workplaces to
Give Back in 2019
• 5th Place

Refinitiv’s Diversity and Inclusion Index 2019
• Listed in Top 100

SkillsFuture Employer Awards
(Non-SME) 2019

SIAS Investors’ Choice Awards 2019
• Golden Circle Award for Most
Transparent Company

Singapore Corporate Awards 2019
• Best Annual Report

Singapore Governance and Transparency
Index 2019
• Ranked 1st

Sustainable Business Awards 2019
• Best in Stakeholder Engagement
and Materiality

OVERVIEWBUSINESS REVIEWSGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONSingapore Telecommunications Limited | Annual Report 2020

Governance and
Sustainability
Philosophy

CREATING AN
INCLUSIVE DIGITAL-
FIRST FUTURE

At Singtel, we believe that the digital revolution
should benefit everyone. As we seize digital
opportunities, we strive to ensure that technology
not only creates value for our stakeholders, but
also results in a better and more sustainable
future for all. We emphasise responsible business
practices and good governance standards that
guide our long-term growth, enable us to drive
positive change in communities and leave the
smallest environmental footprint possible.

Singapore Telecommunications Limited | Annual Report 2020

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
10 DIRECTORS:

7 independent Directors and
3 non-independent Directors

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

AUDIT COMMITTEE

CHAIRMAN
GAUTAM BANERJEE

3 independent Directors

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

4 independent Directors and
2 non-independent Directors

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
GAIL KELLY

3 independent Directors and
2 non-independent Directors

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, and has oversight of the Group’s culture
and human capital health

FINANCE & INVESTMENT COMMITTEE

CHAIRMAN
SIMON ISRAEL

3 independent Directors and
2 non-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

CHAIRMAN
TEO SWEE LIAN

3 independent Directors

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/
Group Chief Digital Officer,
CEO International,
CEO Group Digital Life,
CEO Group Strategy and
Business Development,
Group Chief Corporate Officer,
Group Chief Financial Officer,
Group Chief Human Resources
Officer,
Group Chief Information Officer,
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 94 to
96.

RECOGNITION OF SINGTEL’S COMMITMENT TO BEST PRACTICES IN CORPORATE GOVERNANCE

Singapore Governance
and Transparency
Index 2019

• Ranked 1st

Singapore Corporate
Awards 2019

SIAS Investors’
Choice Awards 2019

• Best Annual Report

• Golden Circle Award
for Most Transparent
Company

Alpha Southeast Asia
9th Annual Institutional
Investor Awards for
Corporates (Singapore)

• Best Annual Report
• Most Organised Investor

Relations (#2)

DIRECTORS’ ATTENDANCE AT BOARD/GENERAL MEETINGS DURING THE FINANCIAL YEAR ENDED 31 MARCH
2020(1)

Scheduled Board
Meetings

Ad Hoc Board
Meetings

Independent Directors’
Meetings

Annual General
Meeting

Number of
Meetings Held

Number of
Meetings
Attended

Number of
Meetings Held

Number of
Meetings
Attended

Number of
Meetings Held

Number of
Meetings
Attended

Name of Director

Simon Israel
Lee Theng Kiat(2)
Chua Sock Koong

Gautam Banerjee

Venkataraman (Venky) Ganesan
Bradley Horowitz(3)
Gail Kelly

Low Check Kian
Christina Ong(3)
Teo Swee Lian
Dominic Barton (4)
Bobby Chin(5)
Peter Mason AM(6)

1
1

-
-

–

1
1

–

1
1

Notes:
(1) Refers to meetings held/attended while each Director was in office.
(2) Mr Lee Theng Kiat was appointed to the Board as Chairman-designate on 15 January 2020.
(3) Mr Bradley Horowitz and Mrs Christina Ong recused themselves and did not participate at the ad hoc Board Meetings due to conflicts of interest.
(4) Mr Dominic Barton stepped down from the Board with effect from 26 November 2019.
(5) Mr Bobby Chin stepped down from the Board at the conclusion of the AGM on 23 July 2019.
(6) Mr Peter Mason AM retired from the Board at the conclusion of the AGM on 23 July 2019.

✓

–

✓

✓
✓

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWS
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 the Management Committee, and
approves the appointment of Directors. In line with
best practices in corporate governance, the Board also
oversees the long-term succession planning for the
Management Committee.

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 circumstances. A total
of eight Board meetings (including ad hoc Board meetings)
and three independent Directors' meetings were held in
the financial year ended 31 March 2020. With the

adoption of half-yearly reporting of financial results from
the financial year ending 31 March 2021, there will be
four scheduled Board meetings for the year.

Material items that require Board approval include:

• The Group’s strategic plans
• The Group’s annual operating plan and budget
• Full-year and half-year financial results
• Dividend policy and payout
• Issue of shares
• Board succession plans
• Succession plans for Management Committee

positions, including appointment of, and compensation
for, Management Committee members

• Underlying principles of long-term incentive schemes

for employees

• The Group’s risk appetite and risk tolerance for

different categories of risk, as well as risk strategy
and the policies for management of material risks
• Acquisitions and disposals of investments exceeding

certain material limits

• Capital expenditures exceeding certain material

limits

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 2020 is set out
on page 66. 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.

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

To ensure Directors can fulfil their obligations and to
continually improve the performance of the Board,

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

During the financial year ended 31 March 2020, the
development/training programmes for Directors included
the following:
• The Directors participated in an annual offsite

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

• Directors were invited to meet with the Technology

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.

• The Board visited the Optus campus in Sydney,

Australia, and met with business leaders and key
customers there.

• The Board made a trip to the People's Republic of China

to visit and engage with leading companies there,
particularly in the technology space.

• During scheduled Board meetings, the Board was
briefed on pertinent topics, including updates on
corporate governance rules, guidelines, and best
practices, and developments in technology.

BOARD COMPOSITION, DIVERSITY AND BALANCE

10%

20%

Independence

Independent,
non-executive directors

Non-independent,
non-executive directors

Executive director/GCEO

40%

Gender
Diversity

Male directors

Female directors

70%

60%

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSCorporate Governance

There are 10 Directors on the Board, comprising 7
non-executive independent Directors, two non-executive
non-independent Directors 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 pages 71 to 72. The profiles of the Directors
are set out on pages 22 to 26.

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

In order to ensure that Singtel continues to be able to
meet the challenges and demands of the markets in which
Singtel operates, the Board is focused on enhancing the
diversity of skills, expertise and perspectives on the Board
in a structured way by proactively mapping out Singtel’s
Board composition needs over the short and medium
term.

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

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

The Board is of the view that gender is an important
aspect of diversity and will strive to ensure that (a)
any brief to external search consultants to search for
candidates for appointment to the Board will include a

requirement to present female candidates, (b) female
candidates are included for consideration by the
CGNC whenever it seeks to identify a new Director for
appointment to the Board, (c) the Board appoints at
least one female Director to the CGNC, and (d) there is
significant and appropriate female representation on the
Board, recognising that the Board’s needs will change
over time taking into account the skills and experience of
the Board.

Reflecting the focus of the Group’s business in the region,
four of Singtel’s 10 Directors are from, and have extensive
experience in, jurisdictions outside Singapore, namely,
the Chairman, Mr Simon Israel, and non-executive
Directors, Messrs Venky Ganesan and Bradley Horowitz,
and Mrs Gail Kelly. In relation to gender diversity, 40% of
the Singtel Board, or four out of the 10 Board members,
are female. Other than the Group CEO, none of the
Directors is a former or current employee of the Company
or its subsidiaries.

Independence
The Board, taking into account the views of the CGNC,
assesses the independence of each Director annually,
and as and when circumstances require, in accordance
with the 2018 Code. A Director is considered independent
if he has no relationship with the company, its related
corporations, substantial shareholders or its officers that
could interfere or be reasonably perceived to interfere,
with the exercise of the director’s independent business
judgement in the best interests of the company.

The Board considers the existence of relationships or
circumstances, including those identified by the listing
rules of the Singapore Stock Exchange and the 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; the
acceptance by a Director of any significant compensation
from the Company or any of its subsidiaries for the
provision of services during the financial year in question
or the previous financial year, other than compensation
for board service; and a Director being related to
any organisation 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.

The CGNC and the Board have assessed the independence
of each of the Directors in 2020. A summary of the outcome
of that assessment is set out below.

Based on the declarations of independence provided by
the Directors and taking into consideration the guidance
in the 2018 Code, the listing rules and (where relevant)
the Practice Guidance and the Code of Corporate
Governance 2012, the Board has determined that
Ms Chua Sock Koong, Singtel’s Group CEO, Mr Simon Israel,
Chairman of the Singtel Board and Mr Lee Theng Kiat,
Chairman-designate 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 Business Conduct and Ethics, each of the
members of the CGNC and the Board abstained in respect
of the confirmation or his/her independence status.

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 53% in Singtel as at 31 March 2020.

Mr Lee Theng Kiat is deemed non-independent given his
current roles as Executive Director of Temasek and the
Chairman of Temasek International Pte. Ltd. He is not
a nominee of Temasek on the Singtel board and does not
act for Temasek in respect of his board role at Singtel.

Mr Low Check Kian, Mrs Christina Ong, Ms Teo Swee Lian
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.
Their 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. The CGNC
and the Board are of the view that such relationships
do not interfere with the exercise of the Directors’
independent business judgement in the best interests
of Singtel.

Mr Low Check Kian has served as an Independent
Director for more than nine years since the date of his first
appointment. The Code of Corporate Governance 2012
states that the independence of any director who has
served on the board beyond nine years from the date
of his first appointment should be subject to particularly
rigorous review. Taking into consideration, among
other things, Mr Low’s active participation and actual

performance on the Board and Board Committees and
as Lead Independent Director, the CGNC and the Board
are of the view that Mr Low has at all times exercised
independent judgement in the best interests of the
Company in the discharge of his director’s duties and
should therefore continue to be deemed an Independent
Director.

Mrs Christina Ong is a partner of Allen & Gledhill LLP
(A&G), which provides legal services to, and receives fees
from, the Singtel Group. However, Mrs Ong does not hold
a 5% or more interest in A&G. Mrs Ong is also on the
board of Oversea-Chinese Banking Corporation Limited,
which provides banking services in the ordinary course of
business to the Singtel Group. The CGNC and the Board
are of the view that the abovementioned relationships do
not interfere with the exercise of Mrs Ong’s independent
business judgement in the best interests of Singtel and
that she is therefore an Independent Director.

Ms Teo Swee Lian is the Chairman of CapitaLand Mall
Trust (CMT). Singtel is a tenant of some shopping malls
in CMT’s portfolio. These transactions are conducted in
the ordinary course of business, at arm’s length and
based on normal commercial terms and market rates.
In addition to her directorship in CMT, which is a
subsidiary of Temasek, Ms Teo is also a director of an
associated company of Temasek. Ms Teo’s roles in these
organisations are non-executive in nature and she is
not involved in the day-to-day conduct of the business
of these organisations. The CGNC and the Board are
of the view that the relationships described above do
not interfere with the exercise of Ms Teo’s independent
business judgement in the best interests of Singtel and
that she is therefore an Independent Director.

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.
Also, BitSight provided services and equipment in the
ordinary course of business to the Singtel Group during
the financial year. The CGNC and the Board are 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 and
that he is therefore an Independent Director.

Mr Bradley Horowitz is an executive of Google, Inc., which
provided services to the Singtel Group in the ordinary
course of business during the financial year. The CGNC

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSCorporate Governance

and the Board are of the view that the abovementioned
relationship does not interfere with the exercise of
Mr Horowitz’s independent business judgement in the
best interests of Singtel and that he is therefore an
Independent Director.

Mrs Gail Kelly does not have any of the relationships and
is not faced with any of the circumstances identified in
the 2018 Code, the SGX Listing Manual and the Practice
Guidance that could interfere, or be reasonably perceived
to interfere, with the exercise of her independent business
judgement in the best interests of Singtel. The CGNC and
the Board are of the view that Mrs Kelly has demonstrated
independence in the discharge of her duties and
responsibilities as a Director and that she is therefore an
Independent Director.

Conflicts of Interest
Under the Board’s Code of Business 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 Business 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 Business
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.

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

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

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

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

In order to ensure Board renewal, the Board has in place
guidelines on the tenure of the Chairman and Directors.
The guidelines provide that Directors are appointed for
an initial term of three years, and this may be extended
to a second three-year term. As a general rule, a Director

shall step down from the Board no later than at the 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 Chairman, the same principles apply
except that the term is determined from the point he
became Chairman.

Directors must ensure that they are able to give sufficient
time and attention to the affairs of Singtel and, as part
of its review process, the CGNC decides whether or not
a Director is able to do so and whether he has been
adequately carrying 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
or re-election, Directors are to provide the CGNC with
details of other commitments and an indication of the time
involved, and (b) non-executive Directors should consult
the Chairman or chairman of the CGNC before 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

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSCorporate Governance

that may have been entered into with the Company.
Shareholders are provided with relevant information
in the Annual Report on the candidates for election or
re-election.

Board Performance
Each year, the CGNC undertakes a process to assess
the effectiveness of the Board, the Board Committees
and individual Directors. For the financial year ended
31 March 2020, as in previous years, an independent
external consultant (2020: Aon Hewitt Singapore) was
appointed to facilitate this process. The 2020 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 and senior management were requested
to complete evaluation questionnaires on matters such
as Board composition, Board processes, the relationship
between the Board and management, representation of
shareholders and environmental, social and governance
(ESG) issues, development and monitoring of strategy
and priorities, Board Committee effectiveness, CEO
performance management and succession, director
development and management, and risk management.

In addition to the appraisal exercise, the contributions
and performance of each Director are assessed by the
CGNC as part of its periodic reviews of the composition
of the Board and the various Board Committees. In the
process, the CGNC is able to identify 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
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:
• Audit Committee (AC)
• Corporate Governance and Nominations Committee

(CGNC)

• Executive Resource and Compensation Committee

(ERCC)

• Finance and Investment Committee (FIC)
• Risk Committee (RC)

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

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

active participation and contribution from Board
members, is also taken into consideration.

and accounting matters, compliance, and business and
financial risk management.

A record of each Director’s Board Committee
memberships and attendance at Board Committee
meetings during the financial year ended 31 March 2020
is set out on page 78.

Audit Committee

MEMBERSHIP
Gautam Banerjee, committee chairman and
independent non-executive Director
(appointed AC Chairman on 23 July 2019)
Gail Kelly, independent non-executive Director
(appointed AC member on 15 May 2019)
Christina Ong, independent non-executive Director

Note:
Bobby Chin stepped down as a Director and AC Chairman at the conclusion of the AGM
on 23 July 2019.

KEY OBJECTIVE
• 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 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.

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,
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

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.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWS
Corporate Governance

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
2020. Refer to pages 144 to 151 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 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
Lee Theng Kiat, non-executive Chairman-designate
of the Singtel Board (appointed CGNC member on
1 February 2020)
Gail Kelly, independent non-executive Director
(appointed CGNC member on 13 November 2019)
Christina Ong, independent non-executive Director
Teo Swee Lian, independent non-executive 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

• Develop and review the Company’s corporate

governance practices, taking into account relevant
local and international developments in the area of
corporate governance

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

The main activities of the CGNC are outlined in the
commentaries on “Board Composition, Diversity and
Balance”, “Board Membership” and “Board Performance”
from pages 68 to 73.

The CGNC met three times during the financial year
ended 31 March 2020, and also approved various matters
by written resolution.

Executive Resource and
Compensation Committee

MEMBERSHIP
Gail Kelly, committee chairman and independent
non-executive Director (appointed ERCC Chairman
on 23 July 2019)
Simon Israel, non-executive Chairman of the Singtel
Board
Lee Theng Kiat, non-executive Chairman-designate
of the Singtel Board (appointed ERCC member on
1 February 2020)
Low Check Kian, independent non-executive Director
(appointed ERCC member on 4 May 2020)
Teo Swee Lian, independent non-executive Director

Note:
Peter Mason AM retired as a Director and ERCC Chairman at the conclusion of the AGM
on 23 July 2019.

KEY OBJECTIVES
The ERCC will ensure that competitive and effective
compensation, and progressive policies are in place to
attract, motivate and retain a pool of talented executives
to meet the current and future growth of the Group.
This includes an oversight of the Group’s culture and
human capital health, ensuring:
• Appropriate recruitment, development, retention

and succession planning programs are in place; and

• An appropriate Corporate Culture (incorporating

inclusion, diversity and ethical health), underpinned
by the Singtel core values, is fostered within the Group.

The ERCC plays an important role in helping to ensure
that the Group is able to attract, motivate and retain
the best talents through competitive and effective
remuneration, as well as progressive and robust policies
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.

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
reviews the targets of Senior Management across four
broad categories of financial, strategy, operational
and people at the beginning of the financial year and
assesses the performance against these targets at the
end of the financial year. 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.

The ERCC reviews and ensures 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. In addition, the ERCC oversees
the Group’s culture and human capital health through
the following:

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWS
Corporate Governance

• Reviews effectiveness of talent management

programmes, including for emerging and niche
capabilities;

• Reviews policies, actions and progress made to
promote the Group’s diversity and inclusion
objectives;

• Reviews results, trends and actions taken to address

issues raised from employee engagement and culture
surveys; and

• Reviews the sufficiency of the ongoing measures

being adopted to improve employee engagement
and instill appropriate culture within the Group

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 85 to 94.

The ERCC met six times during the financial year ended
31 March 2020.

Finance and Investment Committee

MEMBERSHIP
Simon Israel, committee chairman and non-executive
Chairman of the Singtel Board
Lee Theng Kiat, non-executive Chairman-designate
of the Singtel Board (appointed FIC member on
1 February 2020)
Venky Ganesan, independent non-executive Director
Bradley Horowitz, independent non-executive Director
Low Check Kian, independent non-executive Director

Note:
Dominic Barton was appointed a Director and FIC member on 25 March 2019 and
15 May 2019 respectively. He stepped down as a Director and FIC member with effect
from 26 November 2019.

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

• Consider and approve investments and divestments
• Review and approve changes in the Singtel Group’s

investment and treasury policies

• Evaluate and approve any financing offers and

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

• Oversee any on-market share repurchases pursuant

to Singtel’s share purchase mandate

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

The FIC met five times during the financial year ended
31 March 2020.

Risk Committee

MEMBERSHIP
Teo Swee Lian, committee chairman and independent
non-executive Director
Gautam Banerjee, independent non-executive Director
Christina Ong, independent non-executive Director
(appointed RC member on 25 November 2019)

Notes:
(1) Dominic Barton was appointed a Director and RC member on 25 March 2019 and

15 May 2019 respectively. He stepped down as a Director and RC member with effect
from 26 November 2019.

(2) Bobby Chin stepped down as a Director and RC member at the conclusion of the AGM

on 23 July 2019.

KEY OBJECTIVES
• Assist the Board in fulfilling its responsibilities in

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

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

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

The RC meets at least three times a year, with additional
meetings to be convened as deemed necessary by the
chairman of the RC. The RC met three times during the
financial year ended 31 March 2020.

Advisory Committee/Panel

Management Committee

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 Mrs Gail Kelly (committee chairman),
Mr Simon Israel, Mr Lee Theng Kiat, Ms Chua Sock Koong,
Mr John Arthur, Mr David Gonski, Mr John Morschel and
Mr Paul O’Sullivan. The OAC discusses strategic business
issues relating to the Australian businesses.

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.

In addition to the five Board Committees and the two
advisory bodies, Singtel has a Management Committee
that comprises the Group CEO, CEO Group Enterprise,
CEO Consumer Australia, CEO Consumer Singapore/
Group Chief Digital Officer, CEO International, CEO Group
Digital Life, CEO Group Strategy and Business
Development, 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.

DIRECTORS’ BOARD COMMITTEE MEMBERSHIPS AND ATTENDANCE AT BOARD COMMITTEE MEETINGS
DURING THE FINANCIAL YEAR ENDED 31 MARCH 2020(1)

Audit
Committee

Corporate
Governance and
Nominations
Committee

Executive
Resource and
Compensation
Committee

Finance and
Investment
Committee

Risk
Committee

Number of
Meetings
Held
–
–
5
5
–
–
3
–
5
–
–
2
–

Number of
Meetings
Attended
–
–
5
5
–
–
3
–
4
–
–
2
–

Number of
Meetings
Held
3
1
3
–
–
–
1
3
3
3
–
–
–

Number of
Meetings
Attended
3
1
3
–
–
–
1
3
3
3
–
–
–

Number of
Meetings
Held
6
1
6
–
–
–
6
–
–
6
–
–
3

Number of
Meetings
Attended
6
1
6
–
–
–
6
–
–
6
–
–
3

Number of
Meetings
Held
5
1
5
–
5
5
–
5
–
–
4
–
–

Number of
Meetings
Attended
5
1
5
–
5
3
–
5
–
–
4
–
–

Number of
Meetings
Held
–
–
3
3
–
–
–
–
1
3
2
1
–

Number of
Meetings
Attended
–
–
3
3
–
–
–
–
1
3
2
1
–

Name of Director
Simon Israel
Lee Theng Kiat(2)
Chua Sock Koong(3)
Gautam Banerjee
Venky Ganesan
Bradley Horowitz(4)
Gail Kelly(5)
Low Check Kian(6)
Christina Ong(7)
Teo Swee Lian
Dominic Barton(8)
Bobby Chin(9)
Peter Mason AM(10)

Notes:
(1) Refers to meetings held/attended while each Director was in office.
(2) Mr Lee Theng Kiat was appointed to the Board as Chairman-designate on 15 January 2020 and a member of the Corporate Governance and Nominations Committee, the Executive

Resource and Compensation Committee and the Finance and Investment Committee on 1 February 2020.

(3) Ms Chua Sock Koong is not a member of the Board Committees, although she attended meetings of the Committees as appropriate.
(4) Mr Bradley Horowitz recused himself and did not participate in certain Finance and Investment Committee meetings due to conflicts of interest.
(5) Mrs Gail Kelly was appointed a member of the Audit Committee and the Corporate Governance and Nominations Committee on 15 May 2019 and 13 November 2019 respectively.
(6) Mr Low Check Kian was appointed a member of the Executive Resource and Compensation Committee on 4 May 2020.
(7) Mrs Christina Ong was appointed a member of the Risk Committee on 25 November 2019.
(8) Mr Dominic Barton was appointed a member of the Finance and Investment Committee and the Risk Committee on 15 May 2019. He stepped down from the Board with effect from

26 November 2019.

(9) Mr Bobby Chin stepped down from the Board at the conclusion of the AGM on 23 July 2019.
(10) Mr Peter Mason AM retired from the Board at the conclusion of the AGM on 23 July 2019.

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

For the financial year ended 31 March 2020, 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.

Internal Audit (IA)
Singtel IA comprises a team of 66 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.

Singtel IA has a Quality Assurance programme to ensure
that its audit activities conform to the IIA Standards.
As part of the programme, internal Quality Assurance
Reviews are conducted quarterly, and external Quality
Assurance Reviews are carried out at least once every
five years by qualified professionals from an external
organisation. The last external Quality Assurance Review
was successfully completed in 2018 and continues to meet
or exceed the IIA Standards in all key aspects.

Singtel IA adopts a risk-based approach in formulating
the annual audit plan that aligns its activities to the key
strategies and risks across the Group’s business. This
plan is reviewed and approved by the AC. The reviews
performed by Singtel IA are aimed at assisting the Board
in promoting sound risk management, robust internal
controls and good corporate governance, through
assessing the design and operating effectiveness of
controls that govern key business processes and risks
identified in the overall risk framework of the Group.

Singtel IA’s reviews also focus on compliance with Singtel’s
policies, procedures and regulatory responsibilities,
performed in the context of financial and operational,
revenue assurance and information systems reviews.

In line with leading practices, a dedicated Data Analytics
and Robotics function has been established in 2020
within Singtel IA to deploy data analytics and robotics
automation to increase audit efficiency and effectiveness
as well as design and implement the training roadmap for
the global audit function to increase capabilities.

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 the 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.

Pursuant to the requirements of the SGX, an audit partner
may only be in charge of a maximum of five consecutive
annual audits and may then return after two years. KPMG
has met this requirement. 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 2020

(S$ Mil)

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

4.9

0.8

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 2020, 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 Management
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 control framework is aligned
with the ISO 31000:2018 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.

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. With the outbreak

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSCorporate Governance

of the Coronavirus Disease 2019 (COVID-19) pandemic,
an ongoing pandemic which resulted in countries taking
containment and mitigation measures to minimise
cross-border and local transmission of the virus, the
Board was provided with timely and regular updates
on Singtel Group’s response plans, covering Singapore,
Australia and countries where the Group operates in.
Singtel has established the Pandemic Control Committee
(PCC) and Emergency Management Team (EMT) to
oversee Singtel and Optus response plans respectively,
with the objectives of protecting staff and minimising
business disruption. The Group’s Associates have also
established Emergency Management Teams and
implemented comprehensive pandemic response
measures to minimise operation disruption and ensure
staff well-being. The response plans are constantly
updated to adapt to the pandemic situation.

The Board has received assurance from the Group CEO
and Group CFO that, as at 31 March 2020, 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
2020 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
2020 to address financial, operational, compliance and
information technology risks, which the Group considers
relevant and material to its operations.

The systems of risk management and internal control
established by Management provide 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 99
to 110.

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 on
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 for investor queries.

In line with amendments to Rule 705 of the SGX
Listing Manual, Singtel will be adopting half-yearly
announcement of its financial results with effect from
the financial year starting 1 April 2020. The half-year and
full-year financial results will contain detailed financial
statements, key business drivers and management
commentaries on the financial performance of the
Group. They will be announced within 45 and 60 days
from the end of each respective financial period.
However, quarterly business updates will be published
to give investors insight into the Group's business
performance between the half-year and full-year results
announcements.

To allow investors to keep abreast of strategic and
operational developments, Singtel will continue to make
timely disclosures of material information to the SGX.

with convenient access to public transportation. Under
Singtel’s Constitution 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 and Singtel provides
the necessary information on each resolution to enable
shareholders to exercise their vote on an informed basis.
Singtel currently 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.

In view of the unprecedented disruption from COVID-19,
Singtel will not be providing guidance for the next
financial year unlike in previous years. It will update the
market when there are material developments or when
there is greater clarity in the operating environment.

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 160 meetings
and conference calls. Meetings were largely undertaken
by Singtel’s Senior Management and the IR officers.

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
In view of the COVID-19 pandemic, the 28th Annual
General Meeting (AGM 2020) to be held in July 2020 will
be held via electronic means pursuant to the COVID-19
(Temporary Measures) (Alternative Arrangements for
Meetings for Companies, Variable Capital Companies,
Business Trusts, Unit Trusts and Debenture Holders) Order
2020 (Emergency Legislation). Alternative arrangements
relating to attendance at the AGM 2020 via electronic
means (including arrangements by which the meeting
can be electronically accessed via live audio-visual
webcast or live audio-only stream), submission of
questions in advance of the AGM 2020, addressing
of substantial and relevant questions at the AGM 2020
and voting by appointing the chairman of the meeting
as proxy at the AGM 2020, are set out in Singtel’s
announcement dated 1 July 2020. The description below
sets out Singtel's usual practice for shareholder meetings
when there are no pandemic risks and the Emergency
Legislation is not in operation.

Singtel strongly encourages and supports shareholder
participation at general meetings. Singtel delivers the
Notice of AGM and related information about a month
ahead, providing sufficient time for shareholders to review
the Notice of AGM and appoint proxies to attend the AGM
if they wish. The Notice of AGM is also advertised in The
Straits Times for the benefit of shareholders. Singtel holds
its general meetings at central locations in Singapore

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Electronic Poll Voting at
Singtel General Meetings

In view of the COVID-19 pandemic, voting by
shareholders at the AGM 2020 will be done by way of
appointing the chairman of the meeting as proxy in
accordance with the Emergency Legislation and the
related guidelines or directives issued by government
agencies or regulatory authorities relating to the
conduct of meetings during the pandemic.

The description below sets out Singtel's usual practice
for voting at shareholder meetings when there are no
pandemic risks and the Emergency Legislation is not
in operation.

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 are 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
one month before the announcement of the financial
statements for the half-year and 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 for the half-year and full financial year,
and ending on the date of the announcement of the
relevant results. 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 it is during the abovementioned “closed” periods
for trading in Singtel securities. The Company Secretary
sends regular reminders of the requirements under
the policy and the relevant laws and regulations to the
Directors and Management.

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

The Securities Transactions Policy also discourages
trading on short-term considerations and reminds
Directors and officers of their obligations under insider
trading laws. Directors and officers of the Group wishing
to deal in Singtel securities during a closed period must
secure prior written approval of the Chairman (in the
case of Directors of Singtel), the Lead Independent
Director (in the case of the Chairman) or the Group CEO
(in the case of directors of Singtel subsidiaries and Key
Officers). Requests for written approval must contain a

full explanation of the exceptional circumstances and
proposed dealing. If approval is granted, trading must
be undertaken in accordance with the limits set out in the
written approval. Directors are to inform the Company
Secretary before trading in Singtel securities. The Board is
kept informed when a Director trades in Singtel securities.
A summary of Singtel’s Securities Transactions Policy is
available in the Corporate Governance section of the
Singtel corporate website.

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

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

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

No Material Contracts
Since the end of the previous financial year ended
31 March 2019, 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 2020, save as may
be disclosed on SGXNet or herein.

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 260. 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 submitted to the Audit
Committee for review. Under the SGX listing rules, where
any IPT requires shareholders’ approval, the interested
person will abstain from voting and the decision will be
made by disinterested shareholders.

The Board has adopted a policy that there should be no
loans to Directors, except for loans to fund expenditure
to defend Directors in legal or regulatory proceedings, as
permitted under the Companies Act. As at 31 March 2020,
there were no loans granted to Directors.

Codes of Conduct and Practice
The Board has adopted a Code of Business 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 Business 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 Business 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 of Business 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.

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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 for reporting
such concerns. The policy identifies those authorised to
receive complaints, including a direct channel to Singtel
IA and whistle-blower hotline services independently
managed by external service provider. The policy provides
mechanisms for reporting suspected fraud, corruption,
other illegal or 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 with the
confidence that employees and other persons making
such reports will be treated fairly and, to the extent
possible, protected from detrimental conduct.

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 another appropriately skilled and
knowledgeable independent investigation team 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 2021
so that Directors’ fees can be paid on a half-yearly basis
in arrears. No Director can decide his or her own fees.

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

Directors are encouraged, but not required, 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 2020
For the financial year ended 31 March 2020, the Chairman
received an all-inclusive fee of S$960,000 (excluding
car-related benefits). The fee was paid approximately
two-thirds in cash and approximately one-third in Singtel
shares. No separate retainer fees, committee fees,
attendance fees or travel allowance were paid to the
Chairman.

The fees for non-executive Directors (other than the
Chairman) comprised a basic retainer fee, additional fees
for appointment to Board Committees, attendance fees
for ad hoc Board meetings and a travel allowance for

Directors who were required to travel out of their country
or city of residence to attend Board meetings and Board
Committee meetings that did not coincide with Board
meetings. The framework for determining non-executive
Directors’ fees for the financial year ended 31 March 2020
was the same as the framework for the previous financial
year and is set out below:

Basic Retainer Fee
Board Chairman
Director

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)

The aggregate Directors’ fees paid to non-executive
Directors for the financial year ended 31 March 2020 was
S$2,551,039 (details are set out in the table below).

Name of Director

Simon Israel(1)
Lee Theng Kiat(2)
Gautam Banerjee
Venky Ganesan(3)
Bradley Horowitz(4)
Gail Kelly(5)
Low Check Kian(6)
Christina Ong
Teo Swee Lian
Dominic Barton(7)
Bobby Chin(8)
Peter Mason AM(9)
Total

Director’s Fees
(S$)

960,000
-
195,271
147,000
193,000
211,166
190,000
184,750
205,000
143,713
60,806
60,333
2,551,039

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

Notes:
(1) In addition to the Director’s fees set out above, Mr Simon Israel also received car-related

benefits (S$37,679).

(2) Mr Lee Theng Kiat was appointed Chairman-designate on 15 January 2020 and a member
of the Corporate Governance and Nominations Committee, the Executive Resource and
Compensation Committee, the Finance and Investment Committee and the Optus
Advisory Committee on 1 February 2020.

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

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

US$75,000 and US$100,000 for the financial year ended 31 March 2020 in his capacity as
the Chairman of the Technology Advisory Panel and a director of Amobee, Inc
respectively.

S$2,000

S$3,000

(4) In addition to the Director’s fees set out above, Mr Bradley Horowitz received fees of

US$50,000 for the financial year ended 31 March 2020 in his capacity as a member of the
Technology Advisory Panel.

(5) In addition to the Director’s fees set out above, Mrs Gail Kelly received fees of S$31,909 for
the financial year ended 31 March 2020 in her capacity as the Chairman/a member of the
Optus Advisory Committee.

(6) 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 2020 in his capacity as a director of
Singtel Innov8 Pte. Ltd.

(7) Mr Dominic Barton was appointed a member of the Finance and Investment Committee
and the Risk Committee on 15 May 2019. He stepped down as a Director and member of
the Finance and Investment Committee and the Risk Committee with effect from
26 November 2019.

(8) Mr Bobby Chin stepped down as a Director and member of the Audit Committee and the

Risk Committee at the conclusion of the AGM on 23 July 2019.

(9) In addition to the Director’s fees set out above, Mr Peter Mason AM received fees of

S$10,914 in his capacity as the Chairman of the Optus Advisory Committee for the financial
year ended 31 March 2020. He retired as a Director and member of the Executive Resource
and Compensation Committee and the Optus Advisory Committee at the conclusion
of the AGM on 23 July 2019.

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
year ended 31 March 2020. No employee of the Group is
a substantial shareholder of the Company.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSCorporate Governance

Financial Year Ending 31 March 2021
For the financial year ending 31 March 2021, it is proposed
that aggregate fees of up to S$2,350,000 (2020: up
to S$2,950,000) be paid to Directors. The proposed
framework for Directors’ fees for the financial year ending
31 March 2021 is the same as that for the financial year
ended 31 March 2020. The decrease in the maximum
amount of Directors' fees for the financial year ending
31 March 2021 of S$600,000 as compared to that for the
previous financial year is largely due to the fact that
Mr Lee Theng Kiat has requested that he not be paid
any Directors' fees. Mr Lee will assume the position of
Chairman of the Board following the conclusion of the

28th Annual General Meeting (AGM 2020) to be held
in July 2020, subject to shareholders approving his
re-appointment as a Director at the AGM.

In a show of solidarity with Singtel and its wider
community of stakeholders, the Board of Directors have
volunteered a 10% cut in the basic retainer fees for the
financial year ending 31 March 2021. The 10% voluntary
cut has not been factored in the sum of S$2,350,000 being
tabled for shareholders' approval at the AGM 2020, but
will be applied when determining the actual amount of
Directors' fees payable for the financial year ending
31 March 2021.

Remuneration Strategy and Principles

Our remuneration strategy is designed to attract, motivate and retain employees to drive the current and future
growth of the Company. The following are our guiding principles for remuneration of Senior Management.

ALIGNMENT WITH SHAREHOLDERS’ INTERESTS

FAIR AND APPROPRIATE

• Align interests between management and

• Offer competitive packages to attract and retain

shareholders

• Select appropriate performance metrics for

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

• Allow for performance-related clawback if long-
term sustained performance targets are not met
• Establish sound and structured funding to ensure

affordability

highly experienced and talented individuals

• Link a significant proportion of remuneration to
performance, both on an annual and long-term
basis

• Structure a significant but appropriate proportion
of remuneration to be at risk with symmetric upside
and downside

PAY-FOR-PERFORMANCE

EFFECTIVE IMPLEMENTATION

• Measure performance based on a holistic

• Ensure link between performance and

balanced scorecard approach, comprising both
financial and non-financial metrics

• Ensure targets are appropriately set for threshold,
target, stretch and exceptional performance levels

remuneration is clear and the framework is simple
for employees to understand

• Meet rigorous corporate governance requirements

REMUNERATION GOVERNANCE
The effectiveness of our remuneration strategy is
underpinned by a robust governance. The ERCC
reviews remuneration of Senior Management through
a process that considers Group, business unit and
individual performance as well as relevant comparative
remuneration in the market. On an annual basis, the
ERCC proposes the compensation of the Management
Committee for the Board’s approval and approves
compensation for the other Senior Management.

During the year, the ERCC engaged Willis Towers
Watson (Singapore) to conduct Executive Remuneration
Benchmarking for Senior Management. The ERCC also
engaged Aon Hewitt Singapore Pte Ltd (Aon Hewitt)
to provide valuation and vesting computation for grants
awarded under the Singtel Performance Share Plan 2012.
Willis Towers Watson, Aon Hewitt 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 FRAMEWORK
Our remuneration framework is designed to incentivise
executives to deliver the Group’s strategic priorities and
enhance shareholder value over the short, medium and
long term.

Balanced Scorecard
We use a balanced scorecard approach to measure how
successful we are in serving stakeholders and executing

our long-term strategy. Our scorecard comprises key
performance indicators (KPIs) in four broad categories:
Financial, Strategy, Operational and People. These KPIs
are aligned to the objectives of our Annual Operating
Plan and longer-term strategy plan, which are discussed
and approved by the Board. Weightings are allocated
to the KPIs for each Senior Management to ensure a
balanced approach in assessing individual’s performance
and determining the appropriate remuneration.

Remuneration Components
Our total remuneration provides an appropriate
balance between fixed and performance-related
components. The remuneration structure is such that
the percentage of the performance-related
components increases for the more senior levels
to reflect their greater accountabilities and impact
on business performance. The key remuneration
components for Senior Management are indicated
in the following diagram and tables.

TOTAL REMUNERATION

=
FIXED COMPONENTS

BASE SALARY

BENEFITS & PROVIDENT/
SUPERANNUATION

+
PERFORMANCE-RELATED COMPONENTS

VARIABLE BONUS

LONG-TERM
INCENTIVES

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Fixed Components

BASE SALARY

Purpose and Linkage
to Performance

Reflects the market worth of the job and considers the responsibilities, competencies and
experience of the individual. Linked to each executive’s sustained long-term performance.

Policy

Approved by the Board based on ERCC’s recommendation and reviewed annually against:

• Peers of similar financial size and complexity to the Group
• Pay and conditions across the Group
• 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.

For 2020, Singtel has implemented a wage freeze across the company, except for
operational and support staff, to conserve financial headroom to cope with the
unprecedented uncertainties.

BENEFITS & PROVIDENT/SUPERANNUATION FUND

Purpose and Linkage
to Performance

Provisions are in line with local market practices and legislative requirements, and not
directly linked to performance.

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-Related Components

VARIABLE BONUS
Variable bonuses comprise Performance Bonus and Value Sharing Bonus. In determining the final variable bonus
payments, the ERCC considers the overall Group, business unit and individual performance as well as relevant market
remuneration benchmarks.

PERFORMANCE BONUS (PB)

Reward short-term performance against annual targets set in the balanced scorecard
(Financial, Strategy, Operational and People KPIs) for each executive.

Cash bonus

Annual payout that will vary based on actual achievement against Group, business unit and
individual performance targets.

All employees

Purpose

Award Type

Linkage to
Performance

Participants

VALUE SHARING BONUS (VSB)

Purpose

Award Type

Linkage to
Performance

Participants

Vesting Mechanism
and Schedule

Defer Senior Management’s bonuses over a time horizon to ensure alignment with
sustainable value creation for shareholders over the medium term.

Cash bonus

Tied to the Economic Profit (EP) performance of the Group

Senior Management

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.

LONG-TERM INCENTIVES
Long-term incentives comprise Restricted Share Award (RSA) and Performance Share Award (PSA). These are equity
awards provisionally granted to Senior Management based on performance at the end of each financial year at the
discretion of the ERCC. A significant portion of the remuneration 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 towards PSA for more senior executives to increase focus on shareholder returns.

LONG-TERM INCENTIVES (LTI)

Purpose

Award Type

Linkage to
Performance

Reinforce the delivery of long-term growth and shareholder value to drive an ownership
culture and retain key talent.

2020 Restricted Share Award (RSA)

2020 Performance Share Award (PSA)

Individual Performance

Group and Individual Performance

PSA performance conditions are key drivers
of shareholder value creation and aligned to
the Group’s business objectives

Participants

Broader group of executives

Senior and Top Management

Vesting Mechanism
and Schedule

Time-based schedule and subject to
individual’s performance.

Over a three-year performance period.

50% of the RSA will vest two years from grant
date and remaining 50% will vest three years
from grant date, subject to the following
conditions:

• Continued employment with the

Singtel Group

• Maintaining a satisfactory performance
rating for the financial year preceding
each tranche of vesting

• Singtel Group’s Absolute Total

Shareholder Return achieved against
predetermined targets (60%)

• Singtel Group’s Reported NPAT achieved
against predetermined targets (20%)
• Environmental, Social and Governance

indicators against predetermined
targets (20%)

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Policy and
Governance

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 and
targets are approved by the ERCC at the beginning of the performance period.

Minimum Shareholding Requirement
To further strengthen alignment with shareholders, Senior Management 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.

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

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

LONG-TERM INCENTIVES VESTING OUTCOMES FOR THE YEAR
For the financial year ended 31 March 2020, the overall vesting outcome for 2017 PSA is 0% as the performance hurdles
were not met. Details of the 2017 PSA vesting conditions and outcomes are outlined in the table below.

2017 PSA
Performance Period: 1 April 2017 to 31 March 2020

KPI Vesting Conditions

Weighting

Vesting
Outcome %

Singtel Group’s Relative Total Shareholder Return
(Relative TSR) – Percentile ranking against the telco component stocks of the
MSCI Asia Pacific Communication Services Index

Singtel Group’s Absolute Total Shareholder Return
(Absolute TSR) – Absolute TSR achieved against predetermined targets

50%

Overall outcome:

Remuneration for Key Management

Remuneration of Key Management
For the financial year ended 31 March 2020, 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 2020:

Name

Chua Sock Koong

Fixed
Remuneration

(S$) (1)

Variable
Bonus

(S$) (2)

Provident
Fund
(S$) (3)

Benefits

(S$) (4)

Earned
Paid out

1,647,096

1,366,562
2,896,537

9,180

77,094

Total Cash
& Benefits

(S$) (5)

3,099,932
4,629,907

Performance shares granted, vested and lapsed for Ms Chua as at 31 March 2020 are as follows:

Granted
(no. of shares)

Vested
(no. of shares)

Lapsed
(no. of shares)

Released

Date

(no. of shares)

Restricted Share Award (RSA)(6)

2017 Awards

2018 Awards(7)(8)

2019 Awards(8)

2020 Awards(8)(9)

2017 Awards
2018 Awards(8)
2019 Awards(8)
2020 Awards(8)(9)

382,987

444,648

396,550

198,275

–

222,324
222,324
198,275

3-Jun-19
1-Jun-20
1-Jun-20
1-Jun-21
1-Jun-21
1-Jun-22
1-Jun-22
1-Jun-23

Performance Share Award (PSA)(6)
Vested
(no. of shares)

Lapsed
(no. of shares)

Date

–

831,718

1-Jun-20
1-Jun-21
1-Jun-22
1-Jun-23

Released

(no. of shares)

–

202,475

230,468

Granted
(no. of shares)

831,718
633,618
860,127
818,567

Notes:
(1) Fixed Remuneration refers to base salary earned for the financial year ended 31 March 2020.
(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 89 to 90. Variable Bonus Earned is the sum of PB and VSB awarded for the financial year ended 31 March 2020. Variable Bonus Paid Out is the sum
of PB and VSB paid out in June 2020.

(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 2020. 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 2020.

(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 RSA granted in 2018 will vest and be released in June 2021, subject to continued employment and meeting of performance conditions.
(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.
(9) The 2020 grants of RSA and PSA were made in June 2020 for performance for the financial year ended 31 March 2020. The per unit fair values of the RSA and PSA are S$2.168 and

S$1.526 respectively.

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Remuneration of Other Key Management
Summary compensation table for the other top five Key Management for the financial year ended 31 March 2020:

Name

Fixed
Remuneration(1)

(S$)

Variable

Provident

Bonus(2)
(S$)

Fund(3)
(S$)

Benefits (4)
(S$)

Total Cash
& Benefits(5)

(S$)

Restricted
Share Award
(RSA)
(no. of shares)

(6)(9)

Performance
Share Award
(PSA)
(no. of shares)

(6)(9)

The following are in alphabetical order:

Allen Lew(7)
CEO Group
Strategy and
Business
Development

Arthur Lang
CEO
International

Bill Chang
CEO Group
Enterprise

Jeann Low
Group Chief
Corporate Officer

Yuen Kuan Moon
CEO Consumer
Singapore

Total

Earned

A$558,768

A$2,769,797

A$1,569,231

9,180 A$631,947

94,096

334,208

Paid Out

Earned

Paid Out

Earned

Paid Out

Earned

Paid Out

Earned

Paid Out

Earned

Paid Out

792,000

909,996

4,984,285

A$2,062,741

A$4,273,770

365,196

590,196

417,971

1,344,647

487,632

963,210

557,294

1,238,421

2,348,784

6,058,652

17,340

53,714

17,340

63,493

13,260

60,911

17,340

62,858

74,460

829,861

1,228,250

1,453,250

1,408,800

2,335,476

1,471,799

1,947,377

1,547,488

2,228,615

8,237,390

11,947,258

101,707

168,578

111,162

394,822

129,689

460,626

148,216

526,429

584,870

1,884,663

Performance shares granted, vested and lapsed for the above five executives as at 31 March 2020 are as follows:

Restricted Share Award (RSA)

Granted
(no. of shares)

Vested
(no. of shares)

Lapsed
(no. of shares)

20,448

27,769

867,985

1,007,734

999,251

499,626

545,487

–

Released

(no. of shares)
13,885
13,884
503,869
503,865
499,626

Date
1-Feb-19
3-Feb-20
3-Jun-19
1-Jun-20
1-Jun-20
1-Jun-21

1-Jun-21

1-Jun-22

2016 Awards

2017 Awards

2018 Awards(8)(9)

2019 Awards(9)

2016 Awards

2017 Awards

2018 Awards(9)

2019 Awards(9)

Performance Share Award (PSA)

Granted
(no. of shares)

Vested
(no. of shares)

Lapsed
(no. of shares)

Released

Date

(no. of shares)

90,815

1,678,971

1,515,104

2,144,513

–

90,815

3-Feb-20

1,678,971

1-Jun-20

–

1-Jun-21

1-Jun-22

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 89 to 90. Variable Bonus Earned is the sum of PB and VSB awarded for the financial year ended 31 March 2020. Variable Bonus
Paid Out is the sum of PB and VSB paid out in June 2020.

Paid Out is the sum of Fixed Remuneration, Provident Fund, Benefits and Variable Bonus paid out for the financial year ended 31 March 2020.

(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. The 2020 grants of

RSA and PSA were made in June 2020 for performance for the financial year ended 31 March 2020. The per unit fair values of the RSA and PSA are S$2.168 and S$1.526 respectively.

(7) All remuneration items for Allen Lew are denominated in Australian Dollar, except for his Provident Fund, which is denominated in Singapore Dollar.
(8) The second tranche of the RSA granted in 2018 will vest and be released in June 2021, subject to continued employment and meeting of performance conditions.
(9) The vesting of the RSA and PSA are conditional upon the achievement of predetermined performance targets or vesting conditions over the respective performance period.

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. 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 Code.

Key information on each Director in this Annual Report:
• Pages 22 to 26 – Directors’ independence status,

appointment dates, length of directorship, academic
and professional qualifications and present and past
directorships details

• Pages 66 and 78 – Directors’ meeting attendance
• Pages 85 to 92 – Directors’ remuneration
• Pages 261 to 268 – Additional Information on Directors
seeking re-election at the Annual General Meeting
to be held on 30 July 2020

Principles and provisions of the 2018 Code –
Express disclosure requirements

Page reference in
Singtel Annual Report 2020

Provision 1.2
The induction, training and development provided to new and existing Directors.

Provision 1.3
Matters that require Board approval.

Provision 1.4
Names of the members of the Board Committees, the terms of reference of the Board
Committees, any delegation of the Board’s authority to make decisions, and a summary
of each Board Committee’s activities.

Page 68

Page 67

Pages 73 to 78

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Principles and provisions of the 2018 Code –
Express disclosure requirements

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.

Page reference in
Singtel Annual Report 2020

Pages 66 and 78

Provision 2.4
The board diversity and progress made towards implementing the board diversity policy,
including objectives.

Page 69

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 72 to 73

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 69 to 71

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,
the NC’s and Board’s reasoned assessment of the ability of the director to diligently
discharge his or her duties are disclosed.

Pages 22 to 26 and
Page 72

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 73

Page 87

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 87 to 91

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.

For the CEO and
management:
Pages 87 to 94

For non-executive Directors:
Pages 85 to 87

Principles and provisions of the 2018 Code –
Express disclosure requirements

Provision 8.2
Names and remuneration of employees who are substantial shareholders of the
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.

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 2020

Page 86

For non-executive Directors:
Pages 85 to 87

For key management
personnel:
Pages 92 to 94

For employee share
schemes:
Pages 90 to 94

Page 81

Provision 11.3
Directors’ attendance at general meetings of shareholders held during the financial year.

Page 66

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 81 to 83 and
Pages 97 to 98

Page 83 and
Pages 111 to 117

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSStrive 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
touch points 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 2020, the management and
Investor Relations (IR) team engaged
more than 500 investors in over
160 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, Malaysia and the US.

A key focus of the year’s investor
communications programme was
to help investors understand the
progress made in the digitalisation
of our operations and in growing
new revenue streams. Management
from our digital marketing, cyber
security and payment businesses
presented their strategies and
initiatives. We also continued to
organise tours of our business
facilities, including our FutureNow
Innovation Centre and the newly
launched UNBOXED, Singapore’s
first unmanned retail pop-up store.

The annual Singtel Investor Day
attracted over 70 participants,
who appreciated the opportunity
to interact directly with the senior

management of Singtel, Optus and
our regional associates. Participants
also gained first-hand experience
of our digital services through demos
of our mobile financial services, IoT
solutions and customer service bots.

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 the annual Singtel-SIAS dialogue
provides a regular platform for us
to communicate our strategy and
performance with retail shareholders.
Retail investors are welcome to
contact us directly through email
or telephone.

Despite the COVID-19 situation,
we have not stopped our active
engagement with investors. We
continue to maintain contact
with them using video and audio
conferencing facilities.

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 on investor
perceptions of our businesses.
The study, comprising in-depth
interviews with approximately 70
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 investors’ concerns
over the challenging market
conditions in Singapore and Australia
although this was partly alleviated
by our regional associates’ improved
competitive positions in their
respective markets. Respondents
also paid greater attention to the
Group’s capital allocation and
balance sheet, which have supported
Singtel’s strong dividend payouts.

Good corporate governance also
plays a vital role in shaping investor
perception of the integrity,
transparency, accountability and

Investor Relationsefficiency 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 provide disclosures
on our sustainability initiatives
and help 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 both bond
and equity investors. All 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.

During our 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 2020, Temasek
Holdings (Private) Limited remained
our largest shareholder, with 53%
of issued share capital. Other
Singapore shareholders held
approximately 12%. In terms of
geographical distribution, the US/
Canada and Europe accounted
for approximately 11% and 9%
of issued shares respectively.

IR CALENDAR OF EVENTS

SHARE OWNERSHIP BY GEOGRAPHY(1)

May 2019
• Non-deal Equity Roadshows, Singapore,

Europe and North America

June 2019
• Singtel Investor Day, Singapore

July 2019
• 27th Annual General Meeting, Singapore

August 2019
• Non-deal Equity Roadshows, Singapore

and Malaysia

November 2019
• Non-deal Equity Roadshows, Singapore

and the UK

• Citi Access Day, Singapore

February 2020
• Non-deal Equity Roadshow, Singapore

May 2020
• Non-deal Equity Roadshows, Singapore,

Europe and North America

US/Canada
11%

Europe
9%

Singapore
(ex-Temasek)
12%

16.3b
shares(2)

Asia
(ex-Singapore)
5%

Others
11%

Temasek
Holdings(3)
53%

Notes:
(1) These figures do not add up to 100% due to rounding.
(2) As at 31 March 2020.
(3) Includes direct and deemed interest.

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSWe identify and manage risks to reduce the uncertainty associated with executing our
business strategies and to 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

THE BOARD
•
Instils culture and approach for risk governance
• Provides oversight of risk management systems

and internal controls

• Reviews key risks and mitigation plans
• Determines risk appetite and tolerance
• Monitors exposure

RISK COMMITTEE
• Reviews and recommends risk strategy and policies
• Oversees design, implementation and monitoring

of internal controls

• Reviews adequacy and effectiveness of the Group’s

risk framework

• Monitors the implementation of risk mitigation plans

AUDIT COMMITTEE
• Reviews adequacy and effectiveness of the

Group’s internal control framework

• Oversees financial reporting risk for the Group
• Oversees internal and external audit processes
• Monitors exposure

MANAGEMENT COMMITTEE
•

Implements risk management practices within all business units and functions

RISK MANAGEMENT COMMITTEE
• Supports the Board and Risk Committee in terms

of risk governance and oversight

• Sets the direction and strategies to align risk

management and monitoring with the Group’s
risk appetite and tolerance

• Reviews the risk assessments carried out by

the business units

• Reviews and assesses risk management systems

and tools

• Reviews efficiency and effectiveness of

mitigation and coverage of risk exposure

Risk ManagementPhilosophy and ApproachOur Risk Philosophy

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

RISK-CENTRIC CULTURE
• Set the appropriate tone at

the top

• Promote awareness,

ownership and productive
management of key risks

• Promote accountability

STRONG CORPORATE
GOVERNANCE STRUCTURE
• Promote good corporate

governance

• Provide proper segregation

of duties

• Clearly define risk-taking

responsibility and authority

• Promote ownership and

accountability for risk-taking

PROACTIVE RISK
MANAGEMENT PROCESS
• Robust processes and systems
to identify, quantify, monitor,
mitigate and manage risks
• Benchmark against global

best practices

Risk Appetite

The Board has approved the following risk appetite statement:

• The Group is committed to delivering value to our shareholders achieved through sustained profitable growth.

However, we shall not compromise our integrity, values and reputation by risking brand damage, service
delivery standards, severe network disruption or regulatory non-compliance.

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

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

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

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

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

dividend policy and guidance.

Risk Management

We have established a rigorous and
systematic risk review process to identify,
monitor, manage and report risks
throughout the organisation based on
our risk philosophy. Management has
the primary responsibility for identifying,
managing and reporting to the Board
the key risks faced by the Group.
Management is also responsible for
ensuring that the risk management

framework is effectively implemented
within the business units. The business
units are supported by specialised
functions such as Regulatory, Legal,
Tax, Cyber Resilience, Environment
and Sustainability, Insurance, Treasury
and Credit Management in the
management of risks. In addition,
through stakeholder engagement and
materiality assessments, we regularly

review and assess the environmental,
social and governance (ESG) risks
that exist or emerge in our broader
value chain, and we address them
with various corporate sustainability
initiatives. Our corporate sustainability
initiatives are discussed further on
page 111 and in our Group Sustainability
Report.

100

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSOur key risk management activities
also include scenario planning,
business continuity/disaster recovery
management and crisis planning
and management. Close monitoring
and control processes, including
the use of appropriate key risk and
key performance indicators, are
implemented to ensure the risk profiles
are managed within policy limits.

In addition, we have in place a formal
programme of risk and control self-
assessment where line personnel are
involved in the ongoing assessment
and improvement of risk management
and controls. The effectiveness of
our risk management policies and
processes is reviewed on a regular
basis and, where necessary, improved.
Independent reviews are conducted
by third-party consultants regularly
to ensure the appropriateness of the
risk management framework.
The consultants also report key risks
to the Board, as well as provide
periodic support and input when
undertaking specific risk assessments.
Overall, the risk management
processes facilitate alignment of our
strategy and annual operating plan
with the management of key risks.

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

In order to provide assurance to
the Board, the CEOs of our business
units submit an annual report on the
key risks and mitigation strategies
for their respective businesses to
the Risk Committee. Our Group CEO

101

and Group CFO, with assurance
from the Management Committee
members, provide an annual written
certification to the Board confirming
the integrity of financial reporting,
and the efficiency and effectiveness
of the risk management, internal
control and compliance systems.

In the course of their statutory audit,
external auditors review our material
internal controls to the extent of the
scope laid out in their audit plans.
Any material non-compliance and
internal control weaknesses, together
with their recommendations to
address them, are reported to the AC.
Our Management, with the assistance
of Singtel IA, follows up on the
auditors’ recommendations as part
of their role in reviewing our system
of internal controls.

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

Risk Factors

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

However, we aim to mitigate the
exposure through appropriate
risk management strategies and
internal controls.

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

• Pandemic Risks/COVID-19

• Economic Risks

• Political Risks

• Regulatory and Litigation Risks

• Competitive Risks

• Expansion Risks

• Project Risks

• New Business Risks

• Technology Risks

• Vendor/Supply Chain Risks

• Information Technology Risks

• Data Protection and

Privacy Risks

• Cyber Security Risks

• Network Failure and
Catastrophic Risks

• Financial Risks

• Talent Management Risks

• Electromagnetic Energy Risks

• Climate Change Risks

PANDEMIC RISKS/COVID-19
The Group could be adversely
impacted by global pandemics,
and the Group’s business and
operations have been affected by the
unprecedented disruption caused by
the COVID-19 pandemic, which has
shaken governments, health systems,
economies and societies around the
world. Since its outbreak, COVID-19
has spread with alarming speed across
various countries and territories, and
resulted in a significant number of
infections and fatalities. The economic
consequences of the outbreak are yet to

Risk ManagementPhilosophy and Approachunfold although governments in many
countries are implementing budgetary
interventions and economic stimulus
programmes. The outbreak of such
infectious diseases together with the
restrictions on travel and imposition of
quarantine and/or lockdown measures
may have an adverse effect on various
aspects of our business and operations,
impacting mobile roaming revenue
and business continuity. The disruptions
of such pandemic outbreaks to global
supply chains of network systems,
equipment, handsets, devices and
content, could impact or lead to
delays in the deployment, installation,
upgrading, operation and maintenance
of network infrastructure, and/or
delivery of equipment, handsets,
devices and content. The imposition
of movement restriction measures on
a nationwide or at a city level in the
countries that we operate in, could
lead to access and workforce
constraints and impede our ability
to operate and serve our customers,
resulting in deterioration in service
levels and/or quality, delays to projects
and deliverables to customers, inability
to meet contractual obligations and/
or failure to comply with regulatory
requirements. Such measures could
significantly dampen both consumer
and enterprise spending, and adversely
affect revenues. Decline in revenues
and delay in payments or non-payments
from customers’ default may lead to
funding constraints for the Group.

A prolonged and widespread pandemic
outbreak may result in a global
recession with severe impact to various
sectors such as telecommunication,
aviation, travel, retail, tourism, auto,
manufacturing and oil and gas;
reduced investment and spending;
and severe unemployment. An economic
downturn of this scale, coupled with
the uncertainties around disruption to
business models posed by technology,

changes in enterprise and consumer
behaviours, and government and
regulatory actions, may pose significant
challenges to the management of
capital investments, working capital
and business changes.

As the COVID-19 situation develops,
the consequences of the COVID-19
outbreak or any future outbreak of
infectious disease are unpredictable
and there can be no assurance that
any precautionary or other measures
taken against such infectious diseases
would be effective. The effectiveness
of the measures adopted by various
governments in response to the
COVID-19 outbreak and the extent to
which these can mitigate the adverse
economic impacts from the pandemic
remain uncertain. There can be no
assurance that the business
environment and/or customer demand
will fully recover post-COVID.
However, we will continue to monitor
the impact on our business, financial
condition, results of operations and
prospects, and institute the necessary
measures to protect the health and
safety of our workforce, and to mitigate
the risks to our business. We will also
plan and adjust our strategies to
adapt to the post-COVID scenario,
as telecommuting and digitalisation
accelerate, and telecommunications
infrastructure becomes even more
critical.

ECONOMIC RISKS
Changes in domestic, regional and
global economic conditions may
have a material adverse effect on
the demand for telecommunications,
information technology (IT) and related
services, digital services, and hence,
on our financial performance and
operations. Global headwinds such
as trade tensions and the COVID-19
pandemic outbreak have resulted
in significant uncertainty in the

macroeconomic environment and this
could have an adverse effect on our
overall Group strategy and growth.

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

Our planning and management
review processes involve keeping
abreast of the economic and market
developments and periodic monitoring
of budgets and expenditures to
optimise the allocation of capital
among the various businesses in our
Group. Each of the business units
in our Group has continuing cost
management and transformation
programmes to drive improvements
in their cost structures and/or
changes in their business model.

POLITICAL RISKS
Our business is geographically
diversified with operations in
Singapore, Australia and the emerging
markets. Some of the countries in
which we operate have experienced
or continue to experience political
instability. The continuation or
re-emergence of such political
instability in the future could have a
material adverse effect on economic or
social conditions in those countries, as
well as on the ownership, control and
condition of our assets in those areas.

We work closely with the Management
and our partners in the countries
where we operate, to leverage the
local expertise, knowledge and
ability to manage the local and
socio-economic conditions and risks.

102

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSThis way, we ensure compliance
with the laws and are better able to
implement risk mitigation measures.

As our Enterprise and Digital Life
businesses expand their business
operations across the region and
around the world, exposure to
similar political and socio-economic
risks may increase in the future.

REGULATORY AND
LITIGATION RISKS
Regulatory Risks
Our businesses depend on licences
issued by government authorities.
Failure to meet regulatory requirements
could result in fines or other sanctions
including ultimately, the revocation of
licences. Our operations are subject
to extensive government regulations,
which may impact or limit our flexibility
to respond to market conditions,
competition, new technologies or
changes in cost structures. Governments
may alter their policies relating to the
telecommunications, IT, multimedia
and related industries, as well as the
regulatory environment (including
taxation) in which we operate. Such
changes could have a material
adverse effect on our financial
performance and operations.

Our overseas investments are also
subject to the risk of imposition of
laws and regulations restricting the
level, percentage and manner of
foreign ownership and investment,
as well as the risk of nationalisation.
Furthermore, judicial developments
in various jurisdictions can be
unpredictable. Any of these factors
can materially and adversely
affect our overseas investments.

Consumer Australia, Consumer
Singapore and Group Enterprise
are impacted by the implementation
of national broadband networks in
both Australia and Singapore.

In Singapore, the Infocomm Media
Development Authority (IMDA) has,
in its implementation of the Next
Generation Nationwide Broadband
Network (Next Gen NBN), designed
a structure to level the playing field
to make the benefits of the Next
Gen NBN available to all industry
players. This Next Gen NBN structure
has significantly altered the existing
cost model of the industry and
increased the level of competition
in the broadband market.

In Australia, the government has
implemented a significant reform
of the fixed line telecommunications
sector, including the rollout of a
national broadband network by
the government-owned entity,
NBN Co, operated on a wholesale-only
open access basis. It is possible that
the Australian government’s policy
decisions relating to the national
broadband network or commercial
decisions taken by NBN Co could
ultimately lead to a sub-optimal
or negative outcome for Optus.

Our operations are also subject
to various other laws and regulations
such as those relating to customer
data privacy and protection,
payment services and anti-money
laundering, anti-bribery and
corruption, workplace safety and
health, public order and safety,
cyber security, online falsehoods
and national security. The regulatory
landscape for the media and
telecommunications industry has
seen changes with recent
developments applicable to cyber
security and consumer protection.
These changes, together with
increasing scrutiny and regulators
inclined to strong enforcement
actions, may lead to additional
compliance costs to the business.
Failure to meet regulations may
adversely affect our businesses.

In Australia, the government
has adopted security legislation
and made decisions which have
affected the industry. In particular,
equipment vendors from countries
with certain legal structures or
power have been excluded from
participating in the supply of
equipment for 5G infrastructure.

We have access to appropriate
regulatory expertise and staffing
resources in Singapore and Australia
and we work closely with the various
stakeholders and our partners in the
countries we operate in. We monitor
new developments closely and
participate regularly in discussions
and consultations with the respective
regulatory authorities and the industry
to propose changes and provide
feedback on regulatory reforms
and developments in the
telecommunications and media
industry. In addition to instituting
measures and processes to ensure
regulatory compliances, we conduct
training and refresher sessions
for staff and management.

Access to Spectrum
Access to spectrum is critically
important for supporting our business
of providing mobile voice, data and
other connectivity services. The
use of spectrum in most countries
where we operate is regulated by
government authorities and requires
licences. Failure to acquire access
to spectrum, or new or additional
spectrum, on reasonable commercial
terms, or at all, could have a material
adverse effect on our core
communications business, financial
performance and growth plans.

Taxation Risks
Our Group has operations across
a large number of jurisdictions, and
we are subject to the tax regulations,
or changes in regulations, in the

103

Risk ManagementPhilosophy and Approachrespective jurisdictions in which
we operate. The tax legislations or
changes may increase our compliance
obligations and business costs.

We are committed to comply with
applicable tax laws in countries
where we operate. We have skilled
staff in taxation matters and work
with external tax advisors where
necessary. Material tax disputes and
risks are escalated in accordance
with the risk management framework,
and appropriate disclosures are
made in our financial statements.

Litigation Risks
We are exposed to the risk of regulatory
and litigation action by regulators
and other parties. Such regulatory
matters and litigation actions may
have a material effect on our financial
condition and results of operations.
Examples of such litigation are
disclosed as contingent liabilities in
the Notes to the Financial Statements.

We have put in place master supply
agreements with key vendors,
master services agreements with key
customers, and implemented contract
policies to manage contractual
arrangements with our vendors and
customers. The policies also set out
the necessary risk empowerment
framework and principles for the
Management Committee, CEOs,
and Management to approve
deviations from the standard terms.

COMPETITIVE RISKS
We face competitive risks in all
markets and business segments
in which we operate.

Group Consumer Business
The telecommunications market
in Singapore is highly competitive.
As competition further intensifies
with the entry of a fourth mobile
network operator and mobile virtual

network operators (MVNOs), industry
revenue may decrease further and
our market share may decline.
Singapore’s Next Gen NBN allows
Retail Service Providers (RSPs)
equal and open access to Netlink
Trust’s fibre network and in turn, has
increased competitive pressure in
fixed broadband and home services.

In the Australian mobile market,
in addition to the incumbent
operator, a number of participants
are subsidiaries of international
groups and operators, and have
made large investments which are
now sunk costs. We are, therefore,
exposed to the risk of irrational
pricing being introduced by such
competitors. The consumer fixed
line services market continues to
be dominated by the incumbent
provider, which can leverage its
scale and market position to restrict
the development of competition.
With the deployment of the Australian
national broadband network,
competition is expected to increase
further as new operators enter
the market. With the impending
merger of two existing operators,
mobile competition is expected
to further intensify.

The operations of our regional
associates’ businesses are also
subject to highly competitive market
conditions. Their growth depends
in part on the adoption of mobile
data services in their markets. Some
of these markets have and could
continue to experience intensifying
price competition for mobile data
services from new competitors
and/or smaller scale competitors,
leading to lower profitability and
potential loss of market share for
our associates.

in the telecommunications industry
by handset providers and other
digital service providers and
non-traditional telecommunications
service providers, including social
media networks and over-the-top
(OTT) players which provide
multimedia and video content,
applications and services directly
on demand.

We continue to invest in our
networks to ensure that they
have the coverage, capacity and
speed that will provide our
customers with the best network
and connectivity experience.
Group Consumer is focused
on driving efficiencies and
innovation via new technologies,
products, services, processes
and business models to meet
evolving customer needs and
enhance customer experiences.

Group Enterprise Business
Business customers enjoy a wide
range of choices for many of our
services, including fixed, mobile,
cloud, managed services and
hosting, IT services and consulting.
Competitors include multinational
IT and telecommunications
companies, technology companies
that introduce new communication
services, as well as other
non-traditional players, while the
enterprise market in Australia
is dominated by the incumbent.
The quality and prices of these
services can influence a potential
business customer’s decision.
Prices for some of these services
have declined significantly in
recent years as a result of capacity
additions, technology innovations
and price competition. Such price
declines are expected to continue.

Our business models and profits are
also challenged by disintermediation

Group Enterprise continues to
focus on offering companies

104

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWScomprehensive and integrated
infocomm technology (ICT) solutions
and initiatives to strengthen
customer engagement. This includes
broadening our solution portfolio
to cover new areas of customer
needs, such as cloud computing,
cyber security and digital solutions
for smart cities and enterprises.

Group Digital Life Business
The digital products and services
we offer are primarily in the areas of
digital marketing and data analytics.
Competition is intense, with many
OTT operators offering these services
and facing low barriers to entry.

Group Digital Life aspires to become
a significant global player in these
areas by delivering distinctive
products and services in the target
markets and launching them
quickly to capture market share.
We will continue to scale our digital
businesses, leveraging our valuable
assets, such as extensive customer
knowledge, touch points, intelligent
networks and our customer base.

EXPANSION RISKS
Given the size of the Singapore and
Australia markets, our future growth
depends, to a large extent, on our
ability to grow our overseas operations
in both core communications and
new digital services. This comes with
considerable risks.

Partnership Relations
The success of our strategic
investments depends, to a large extent,
on our relationships with, and the
strength of our partners. There is no
guarantee that we will be able to
maintain these relationships or that
our partners will remain committed
to the partnerships.

Acquisition Risks
We continually look for investment
opportunities that can contribute to

105

our expansion strategy and develop
new revenue streams. Our efforts are
challenged by the limited availability
of opportunities, competition from
other potential investors, foreign
ownership restrictions, government
and regulatory policies, political
considerations and the specific
preferences of sellers. We face
challenges arising from integrating
newly acquired businesses with our
own operations, managing these
businesses and talent in markets
where we have limited experience
and/or resources and financing
these acquisitions. We also risk not
being able to generate synergies
from these acquisitions, and the
acquisitions becoming a drain on our
management and capital resources.

The business strategies of some
of our regional associates involve
expanding operations outside their
home countries, as well as in-country
mergers and acquisitions. These
associates may enter into joint
ventures and other arrangements
with other parties. Such joint ventures
and other arrangements involve
risks, including, but not limited to,
the possibility that the joint venture or
investment partner may have economic
or business interests or goals that
are not consistent with those of the
associates. There is no guarantee that
the regional associates can generate
synergies and successfully build a
competitive regional footprint.

We adopt a disciplined approach
in our investment evaluation and
decision-making process. Members
of our management team are also
directors on the boards of our
associates and joint ventures. In
addition to sharing network expertise,
product innovation and development,
and commercial experience, best
practices in the areas of corporate
governance and financial reporting
are shared across the Group.

PROJECT RISKS
We incur substantial capital expenditure
in constructing and maintaining our
networks and IT systems infrastructure.
These projects are subject to risks
associated with the construction,
supply, installation and operation
of equipment and systems.

The projects that we undertake as
contractors to operate and maintain
infrastructure are subject to the risks
of increased project costs, disputes
and unexpected implementation
delays, any of which can result
in an inability to meet projected
completion dates or service levels.

Group Enterprise is a major IT service
provider to governments and large
enterprises in the region. We face
potential project execution risks such
as effort estimation or technical
complexities which can result in cost
overruns, project delays and losses.

We have a risk management framework
in place for systematic assessment,
monitoring and reporting of project
risks. Risk profiling of the projects is
performed from bid qualification and
participation and reviewed throughout
project execution. This is to ensure
that appropriate attention and quality
assurance and focus are given by
management to high risk projects.

NEW BUSINESS RISKS
Beyond our traditional carriage
business in Singapore and Australia,
we are venturing into new growth
areas to create additional revenue
streams, including 5G, regional
premium OTT video, mobile payment
and remittance services, gaming and
content, managed services, cloud
services, cyber security, ICT, data
analytics and digital marketing.
There is no assurance that we will be
successful in these ventures and gain
market share, and these businesses
may require substantial capital,

Risk ManagementPhilosophy and Approach
new expertise, considerable process
or system changes, as well as
organisational, cultural and mindset
changes. These businesses may also
expose us to regulatory and IT security
risks, along with the risks associated
with industries like cyber security,
media, online content, such as media
regulation, brand safety, intellectual
property infringement, content rights
disputes, online falsehood, and data
protection regulations and legislation.

As new businesses place new demands
on people, processes and systems,
we respond by continually updating
our organisation structure, talent
management and development
programmes, reviewing our policies
and processes, and investing in new
technologies to meet changing needs.
We will constantly stay abreast of new
trends and build strategic partnerships
with market players to stay competitive.

5G Risks
In Singapore, IMDA has announced
Singtel Mobile Singapore Pte Ltd
as one of the winners of its 5G Call-
For-Proposal and will allocate radio
frequency spectrum for us to deploy
nationwide 5G networks. In Australia,
new spectrum licences for the 26GHz
band are likely to be auctioned in late
2020. Failure to acquire the licences
in Australia could have an adverse
effect on our core communications
business and our competitiveness.
The business case for investment in
5G network and related systems
has risks of uncertainty and may
be earnings dilutive. There may
also be a long payback period as
5G use cases and revenue and
monetisation opportunities are not
yet fully developed. The existing
high quality 4G networks may also
limit the perceived value of 5G and
impact its monetisation potential.

In addition, the Australian government
has implemented security legislation to

restrict vendors from certain countries
from participating in the supply of 5G
network equipment to mobile network
operators. This limits the available
vendor sources and may lead to higher
investment costs.

With 5G, as with the deployment of our
various networks, we will continue to
monitor health and safety concerns
around exposure to electromagnetic
energy emissions (EME), ensure full
compliance with government mandated
standards and institute the necessary
precautionary measures to safeguard
the health and safety of the public and
our customers.

Digital Banking Risks
In June 2019, the Monetary Authority
of Singapore (MAS) announced that
it will issue up to two digital full bank
(DFB) licences and three digital
wholesale bank (DWB) licences.
The digital bank licences will allow
companies (including non-bank players)
to conduct digital banking businesses in
Singapore and this marks a new chapter
in the liberalisation of Singapore’s
banking industry. We have formed a
consortium with Grab Holdings Inc. to
apply for a DFB licence, which will allow
the digital bank to take deposits from
and provide banking services to retail
and non-retail customer segments.

including compliance with existing
and/or new laws and regulations,
and associated increased cost of
compliance. The digital bank may not
be able to attract, integrate and retain
the right talent with the appropriate
skillsets and expertise to develop
and/or execute the bank’s business
strategies and plans, or effectively
manage risks arising from the bank’s
activities. The digital bank may lose
its licence to continue operations
if its financial performance does not
meet expectations or deteriorates.
There could also be a misalignment
of interests, goals and cultures between
the members of the consortium, and/
or with the management of the digital
bank, resulting in an inability to
resolve disputes in an effective and
timely manner.

We will collaborate with our partners
and the digital bank to drive synergies
from the combined strengths, digital
assets and know-how, and other
resources of the Group and partners.
We will have appropriate board
representation and shareholders’
agreement to ensure governance
and rights protection and oversee
the establishment of sound risk
management principles, policies
and procedures and sustainable
business practices.

Should our consortium be awarded
the licence, there is no assurance that
the consortium will be successful in its
digital banking venture. The digital
bank requires substantial capital outlay
and could be subjected to investment
and/or financial losses arising from
failure to scale and acquire customers
and/or the failure to manage the
various risk exposure related to the
digital banking business, including
credit risks, market risks, liquidity
risks, technology risks and/or other
operational risks. The business is
also exposed to the regulatory risks
associated with the banking industry,

TECHNOLOGY RISKS
Rapid and significant technological
changes are typical in the
telecommunications and ICT industry.
Technological changes may reduce
costs, expand the capacity of new
infrastructure, bring new sources
of revenue, and/or result in shorter
periods for investment recovery, all
of which present both opportunities
aswell as disruptions and challenges.
These changes may materially affect
the Group’s capital expenditure
and operating costs, as well as
thedemand for products and services
offered by our business divisions.

106

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSThe rapid advancements in wireless
communications and new digital
technologies such as 5G, AI, Application
Programming Interfaces, cloud and
blockchain are driving the development
of entirely new ecosystems and
business models. This may leave
us with infrastructure and systems
that are technically obsolete before
the end of their expected useful life
and may require us to replace and
upgrade our network and systems to
remain competitive, and as a result,
incur additional capital expenditure.

On the other hand, these changes also
present opportunities for us to build
upon our connectivity advantage,
depending on our ability to apply
these technologies to relevant services.
In the emerging markets in which
our associates operate, regulatory
practices, including spectrum
availability, may also not necessarily
synchronise with the technology
progression path and the market
demand for new technologies.

Each business unit faces the ongoing
risk of market entry by new operators
and service providers (including non-
telecommunications players) that, by
using newer or lower cost technologies,
may succeed in rapidly attracting
customers away from established
market participants. Our business may
also incur substantial development
expenditure to gain access to related
or enabling technologies to pursue
new growth opportunities in the
business, e.g. the ICT industry. The
challenge is to modify our existing
infrastructure and processes in a
timely and cost-effective manner to
facilitate such implementation, failing
which, this could adversely affect our
quality of service, financial condition
and operational performance.

We continue to invest in upgrading,
modernising through digital
transformation initiatives and
equipping our people and systems
with new capabilities to ensure we
are able to deliver innovative and
relevant services to our customers.

VENDOR/SUPPLY CHAIN RISKS
We rely on third-party vendors
and service providers and their
extended supply chain in many
aspects of our business for various
purposes, including, but not limited
to, the construction, operations and
maintenance of our network, the
supply of handsets and equipment,
systems and application development
services, customer service operations,
content provision and customer
acquisition. Accordingly, our operations
and reputation may be affected by
third-party vendors or their supply
chains failing to perform their
obligations or failing to operate in
line with increased expectations of
key stakeholders such as government,
regulators and customers on a
broadening set of ESG issues.
In addition, the industry is dominated
by a few key vendors for such
services, handsets and equipment.
Any severe delays, failure or refusal
by a key vendor to provide such
services, handsets or equipment
arising from disruptions caused
by global pandemics including the
COVID-19 situation, government-
imposed bans on vendors and/or
sanctions due to security and other
concerns, or any consolidation of
the industry, may significantly affect
our business and operations.

We monitor new legislation introduced
such as the recent Australian
Modern Slavery Act, as well as the
developments and restrictions by

governments and regulators on
various vendors to ensure our key
vendors comply with the relevant laws
and regulations. We also monitor our
relationships with key vendors closely
and develop new relationships to
mitigate supply risks. We have in place a
Sustainable Supply Chain Management
strategy and approach, including a
Supplier Code of Conduct, which is
regularly updated to manage risks that
may exist in our supply chain (Refer to
the Singtel Group Sustainability Report
for more details on how we address
these risks and issues).

INFORMATION TECHNOLOGY RISKS
Our businesses and operations rely
heavily on information technology
and we have established the Cyber
Security Resiliency Committee to
provide oversight of all IT and network
security risks, including cyber security
threats and data privacy breaches.
The committee is chaired by CEO,
Group Enterprise and comprises senior
members from the businesses, various
IT and network domains, and meets on
a regular basis. The committee develops
appropriate policies and frameworks
to ensure information system security,
reviews the projects and initiatives
on IT and network security, reviews
IT security incidents, and establishes
overall governance by performing
audits and cyber security drills.

We have established a Group Cyber
Security Policy for managing risks
associated with information security.
The policy is developed based on
industry best practices and is aligned
with international standards such as
ISO 27001. The policy covers holistically
various aspects of IT risk governance,
including change management,
user access management, database
configuration standards and disaster

107

Risk ManagementPhilosophy and Approachrecovery planning, and provides
the cornerstone for driving robust
IT security controls across the Group.

We have also established a Project
Management Methodology to ensure
that new systems are developed with
appropriate IT security controls and
are subject to rigorous acceptance
tests, including penetration testing,
prior to implementation.

DATA PROTECTION
AND PRIVACY RISKS
We seek to protect the data privacy
of our customers in our networks and
systems. Significant failure of security
measures or lapses in established
processes may undermine customer
confidence and result in litigation
actions from customers and/or
regulatory fines and penalties. We may
also be subject to the imposition of
additional regulatory measures relating
to the security and privacy of customer
data, which may impact the way we
conduct our business and/or market
our products and services to customers.

Regulators in various countries have
strengthened existing legislation
and introduced new laws to protect
consumer privacy. In Australia,
regulators are increasingly active
in enforcing existing laws and are
examining options to extend these
laws to address public concern over
data breaches and the activities of
social media platforms. In the United
States, regulators in California
have implemented new legislation
governing consumer data and privacy.

order to refine our practices. We have
implemented security policies,
procedures, technologies and tools
designed to minimise the risk of privacy
breaches. We have also established
an escalation process for incident
management, which includes security
breaches to ensure timely response,
internally and externally,
to minimise impact.

CYBER SECURITY RISKS
The scale and level of sophistication
of cyber security threats have
increased with the changing tactics
and tools by cyber attackers, ranging
from terrorist attacks, state-sponsored
hacking, black-hat hacking or even
internal threats and ransomware.
As our business is heavily dependent
on the resiliency of our network
infrastructure, and supporting systems,
we are exposed to cyber security
threats which can result in disruptions
to our network and services provided
to customers, and leakage of sensitive
and/or confidential information.
The exposure is further intensified
with the growing dependency on
connectivity and smart devices by
our customers, and can lead to
impact on our reputation, litigation
actions from customers and/or
regulatory fines and penalties.

Group Enterprise is growing our cyber
security business globally. The failure
to keep up with and counteract
increasing cyber security threats can
materially and adversely affect our
reputation, cyber security business
and growth strategy.

We continue to ensure data privacy
by protecting the personal data of our
customers and staff. We also ensure
compliance with applicable privacy
laws, and perform regular reviews in

We adopt a holistic approach in
managing and addressing risks of
cyber threats and attacks by keeping
abreast of the threat landscape and
business environment as well as

implementing a multi-layered security
framework to ensure there are
relevant preventive, detective and
recovery measures. This includes
training our people to adopt a
security-first mindset and security
by design principle, being vigilant
to existing and new cyber threats,
deploying the tools and resources
to mitigate risks and ensuring
compliance reviews on third-party
service providers are conducted.

We have been building our capabilities
organically, as well as partnerships
with best-of-breed technology partners.
We have approximately 1,800 cyber
security professionals, global security
operations and engineering centres
and a specialised team of ethical
hackers and forensic experts assisting
the businesses to manage vulnerabilities
and threats, achieve regulatory
compliance and implement secure
solutions. The Group’s Cyber Security
Institute conducts regular training
programmes to enhance the cyber
security skills and preparedness of our
staff as well as our customers, including
businesses and governments in the
Asia Pacific. The Group also invested
in a research and development lab
to drive innovation in this area.

NETWORK FAILURE AND
CATASTROPHIC RISKS
The telecommunications industry faces
a continuous challenge of providing
fast, secure and reliable networks to
an increasingly digital and connected
world. The provision of our services
depends on the quality, stability,
resilience and robustness of our networks
and systems. We face the risk of
malfunction of, loss of, or damage to,
network infrastructure from natural or
other uncontrollable events such as
acts of terrorism.

108

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSSome of the countries in which we and/
or our regional associates operate
have experienced a number of major
natural catastrophes over the years,
including typhoons, droughts, floods,
fires and earthquakes. Some of these
catastrophes have also increased
in intensity and frequency due to
climate change factors, causing
prolonged and exacerbated impact
on our infrastructure and operations.

In addition, other events that are/are
not within our control and/or our
regional associates’ control, such as
fire, deliberate acts of sabotage,
vendor failure/negligence, pandemic
shutdowns, industrial accidents,
blackouts, terrorist attacks, criminal
acts or large scale cyber attacks
on our network and systems,
could damage, cause operational
interruptions or otherwise adversely
affect any of the facilities and
activities, as well as potentially cause
injury or death to personnel. Such
losses or damages may significantly
disrupt our operations, which may have
a materially adverse effect on our
ability to deliver services to customers.
Sustained or significant disruption
to our services can also significantly
impact our reputation with our
customers. Our inability to operate
our networks or customer support
systems may have a material impact
on our business.

We continue to make our networks
robust and resilient, and continually
review our processes to prevent
any network disruptions and to have
an effective communication process
for timely updates to our stakeholders
during any incident and/or crisis.
There is a defined crisis management
and escalation process for our CEOs
and senior management to respond
to emergencies and catastrophic
events. In addition to key network

109

infrastructure, we have business
continuity plans and insurance
programmes and policies in place.

FINANCIAL RISKS
The main risks arising from our
financial assets and liabilities are
foreign exchange, interest rate, market,
liquidity, access to financing sources
and increased credit risks. Financial
markets continue to be volatile, and
with the unprecedented global
recessionary impacts arising from the
uncertainties posed by the COVID-19
situation, may heighten execution risk
for funding activities and increase credit
risk premiums for market participants.

We are exposed to foreign exchange
fluctuations from our operations
and through subsidiaries as well
as associates and joint ventures
operating in foreign countries. These
relate to our dividend receipts and
the translation of the foreign currency
earnings and carrying values of our
overseas operations. Additionally,
a significant portion of associates and
joint venture purchases and liabilities
are denominated in foreign currencies,
versus the local currency of the
respective operations. This gives rise
to changes in cost structures and fair
value gains or losses when marked
to market.

We have established policies, guidelines
and control procedures to manage
and report exposure to such risks.
Our financial risk management is
discussed further on page 239 in
Note 37 to the Financial Statements.

TALENT MANAGEMENT RISKS
As we seek new avenues of growth,
it is pertinent to be able to attract,
develop and sustain talent with new
skills and capabilities. We also identify,
develop and build the next generation
of leaders from both internal and

external talent pools to ensure a robust
succession pipeline. The loss of some
or all of our key executives or the
inability to attract, build and retain
key talent and leaders, could materially
and adversely affect our business.

We continue to invest in the skills of
our existing workforce and build up
our current and emerging capabilities
through external professional hires
and targeted recruitment. In order
to develop and retain talent, we
conduct regular skills assessment
in the critical business areas and
set out structured developmental
roadmaps to fill new and emerging
skills gaps. We have a targeted
development approach to develop
young, emerging and future
technical and business leaders
through formal learning activities,
coaching and mentoring, as well
as providing critical experiences
such as international assignments,
rotations and special projects.

Succession management is key
to ensuring that the Group effectively
manages the short-term and
long-term risks associated with
critical roles. A robust annual
succession planning review by the
businesses and the Management
Committee, with the involvement of
the Board for senior leadership roles,
ensures that leadership succession
plans are current and relevant to
support the business strategies.

ELECTROMAGNETIC
ENERGY RISKS
Health concerns have been raised
globally about the potential exposure
to EME emissions from using mobile
handsets or being exposed to mobile
transmission equipment. While there
is no substantiated evidence of public
health risks from exposure to the levels
of EME typically emitted from mobile

Risk ManagementPhilosophy and Approachphones, perceived health risks can
be a concern for our customers, the
community, and regulators. Perceived
health risks in terms of environmental
exposure from mobile base station
equipment can impact and cause
concern for the local communities
on the implementation of new or
upgrading of existing mobile base
stations. This may impact the mobile
coverage at that locality and also,
our mobile business. In addition,
government legislations and industry
requirements may be introduced to
address this perceived risk, affecting
our ability to deploy the mobile
communications infrastructure.
These perceived health risks could
result in reduced demand for mobile
communications services and/or
litigation actions against us.

We design and deploy our network
to comply with the relevant
government-mandated standards
for exposure to EME. Our standards
are based upon those recommended
by the International Commission on
Non-Ionizing Radiation Protection
(ICNIRP), which is a related agency of
the World Health Organisation. The
ICNIRP standards are adopted by many
countries around the world and are
considered best practices. We continue
to monitor research findings on EME,
health risks and their implications on
relevant standards and regulations.

CLIMATE CHANGE RISKS
Climate change is one of the key
long-term global risks that has the
potential to impact our operations,
infrastructure and supply chain.
Some of the countries in which we
and/or our regional associates
operate have experienced several
extreme weather events, including
typhoons, droughts, floods and
bushfires, which have increased in
intensity and frequency due to climate

change factors. Apart from physical
risk, damage to our networks and
disruptions to our operations, there
are also other energy security and
regulatory risks associated with
climate change, which could result
in stricter greenhouse gas emission
standards, ‘carbon’ taxes, and/or
changes in energy prices or
accompanying infrastructure
investments for adaptation or mitigation.
To address these concerns, we have
adopted a two-pronged approach,
an absolute greenhouse emissions
reduction goal and the adaptation
of our infrastructure to continue building
resilience against climate change risks.

We have set absolute carbon reduction
targets approved by the Science Based
Target initiative in 2017 to address
the continued impact of carbon and
increasing temperatures. This approach
progressively aligns our 2030 carbon
contribution and reduction target with
the agreements made at Paris COP 21
and the Intergovernmental Panel on
Climate Change reports. Our aspiration
is to meet the more aggressive 1.5°C
target and net zero by 2050. We
adapt our infrastructure design and
standards progressively to long-term
scenarios related to climate change,
such as increased risk of inundation
and stronger cyclonic activities, rising
temperatures and higher frequency
and severity of bushfires in Australia.
We have also supported a global
agreement for the ICT industry through
our active participation at the GSM
Association to align the efforts of this
sector and we continue working with our
stakeholders to prepare our disclosures
on climate-related risks to align to the
recommendations of the Task Force for
Climate-Related Financial Disclosures.

110

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWS
The Singtel Group is committed to creating a lasting positive impact for all our stakeholders.
We aim to do this by leveraging our resources and working closely with our strategic
partners to build a sustainable future in four key areas: Environment, People, Community,
and Marketplace and Customers.

Some of the ways we are working towards achieving these commitments include initiatives
that accelerate our shift to renewable energy to make our goal of net zero emissions
a reality by 2050; support vulnerable groups in our communities such as those affected by
the devastating Australian bushfires last year; and develop our people by deepening their
digital skills.

Reflecting the success of our efforts, we were once again recognised in areas such as
governance, diversity and climate change over the past year. We were the only Asian telco
named in Corporate Knights’ 2020 Global 100 Most Sustainable Corporations in the World
index. For our initiatives to promote inclusivity, we were included in Bloomberg's global
Gender-Equality Index for the second year running. In Singapore, we were honoured with
the President’s Award for the Environment 2019, the highest environmental accolade
in the country.

111

Sustainability
ENVIRONMENT
LEAVING THE SMALLEST FOOTPRINT

CLIMATE ACTION

We achieved carbon emissions avoidance of

3,498 tCO2e/year

and an improvement in electricity intensity of

105 kWh/TB.

RECYCLE & REUSE

We recycled, reused and
incinerated for energy recovery

84%

of waste generated
within our operations.

Extreme weather events over the past
year have starkly highlighted the
growing reality and urgency of climate
change. We have made concerted
efforts in recent years to minimise
our environmental impact and build
operational resilience to the effects
of climate change for our business and
communities by focusing on climate
action and product stewardship.

For our dedication to climate
action, carbon emissions reduction
and engagement of the wider
community on sustainability, Singtel
won the President’s Award for the
Environment 2019, Singapore’s
highest environmental accolade.

RALLYING FOR CLIMATE ACTION
AND ADAPTATION
Recognising the urgency of the
climate emergency, we want to
take the lead in charting a course
to tackle this global issue. In July 2019,
Singtel was the only Southeast Asian
firm in a pioneering group of 28
global companies to commit to
keeping global temperature increase
within 1.5°C above pre-industrial
levels and reaching net zero emissions
by 2050. Reducing emissions involves
accelerating our use of renewable
energy, such as the installation

of a 1.65 MWp solar panel system
on NCS Bedok data centre’s rooftop.

initiatives ReCYCLE in Singapore
and Mobile Muster in Australia.

Our next step is to reduce our
packaging wherever possible.
Sustainable packaging helps
lower our carbon footprint and
environmental impact on our value
chain, from resource utilisation
to product packaging and all the
way to their waste streams.

In Australia, we consolidated our
sustainable packaging strategy into
10 targets for 2019-2021 and aligned
them with the National Packaging
Waste targets to make all packaging
100% reusable, recyclable or
compostable by 2025. As part of this
journey, all components that make
packaging unrecyclable have been
removed from our products. We
received an Australian Packaging
Covenant Organisation Award
for the third consecutive year in
recognition of Optus’ sustainable
packaging achievements.

In the area of climate adaptation,
we continue to play an active role
in the Australian Business Roundtable
for Disaster Resilience and Safer
Communities (ABR), working to
ensure that communities across
Australia are better able to prepare
for, respond to and recover from
disasters triggered by natural
hazards such as the recent bushfires.
Together with ABR members,
we kickstarted the development of
a Resilience Index Priority Initiative
to improve decision-making that
prioritises the future prosperity
and safety of our communities.

To help communities rebuild
following the devastating bushfires
in Australia in 2019, we supported
volunteer firefighters’ mobile services
and set up the Green Shoots grants
programme to help small businesses
in affected areas restore connectivity.

REDUCING WASTE THROUGH
RECYCLING
We are committed to resource
conservation and reducing pollution
by recovering and recycling e-waste
through our e-waste recycling

112

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWS
PEOPLE
BUILDING OUR CAPABILITIES FOR THE FUTURE

UPSKILLING OUR STAFF

We invested more than

S$22m in staff training,

clocking an average of

32.7 hours per person

Our people are our most important
asset, and we strive to equip them
with the digital skills needed to support
the Group’s business priorities and
thrive in today’s fast-changing
economy. We advocate continuous
learning among our employees by
investing in their development.

INVESTING IN OUR STAFF FOR
A DIGITAL FUTURE
In September 2019, we announced that
we would invest S$45 million over three
years to deepen the digital skills of
employees in Singapore. Dubbed ACT, the
initiative aims to Accelerate employees’
learning and skills development, empower
them to Co-create their skills pathways,
and Transform employee roles to ensure
that they remain relevant. We launched
a learning app called #CURIOUS,
featuring learning channels with over
100,000 courses and videos, enabling
staff to develop new competencies in
fields such as analytics.

Our investments in our people have paid
off. Close to 800 employees in Singapore
and Australia have undergone skills
conversion to take on new roles.

Besides upskilling our workforce,
developing young talent is also a crucial
part of our strategy to build Singtel’s

113

GENDER DIVERSITY
IN MANAGEMENT

for our 19,800

employees in Singapore
and Australia.

28%

of female employees in
middle and top management.

future capabilities amid the global
competition for talent. We placed
724 students in our scholarship and
internship programmes and hired
another 70 students for our
Management Associate and Optus
Graduate programmes in the past
year. In particular, we have stepped
up efforts to increase the proportion
of students specialising in technology-
related fields in order to nurture more
young talent with digital skills.

EMBRACING DIVERSITY
We are committed to promoting
diversity in our workplace. A culture
of diversity and inclusion is essential
to staying relevant to our stakeholders
as it offers a range of viewpoints
and improves our creativity and
overall performance.

In Singapore, women represent a third
of staff and 40% of our board. We
established Gender Diversity Councils
in Singapore and Australia with senior
leadership representation to drive
greater progress towards gender
balance. In Australia, we became
a Workplace Gender Equality Agency
Pay Equity Ambassador, committing
to the pay equity pledge to promote
and improve gender equality.

For the second year running, we were
one of five Singapore companies to
be recognised in the Bloomberg
Gender-Equality Index for advancing
gender equality. We were also named
one of the top 10 employers for Gender
Diversity at the Leonie Awards 2019 and
were included in the Refinitiv Global
Diversity & Inclusion Index 2019.

Workforce Age Distribution

Singtel

Optus

< 30 years old
30-49 years old
≥ 50 years old

20%
61%
19%

< 30 years old
30-49 years old
≥ 50 years old

23%
59%
18%

SustainabilityCOMMUNITY
THE MOST CONNECTED COMMUNITIES

SINGTEL TOUCHING
LIVES FUND

STAFF
VOLUNTEERISM

BOOSTING DIGITAL
LITERACY

Raised

S$3m

in 2019, bringing the
total funds donated to

S$45m

since its inception in 2002.

Clocked

28,226

hours in volunteering in FY 2020.

Taught more than

114,000

students how to be
safe, responsible and
positive in the digital
world in FY 2020.

To drive positive and sustainable change
for communities, we have put in place
various initiatives that enable us to play
a significant role in advancing the
progress, development and inclusion
of vulnerable segments of society.

LENDING A HELPING HAND
Our programmes have helped to equip
the vulnerable with skills that enhance
their employability and ability to live
independently and also bring cheer
to their lives.

Now in its fourth year, our Pathways 2
Employment Programme in Australia
helps youth from disadvantaged
backgrounds improve their future
employability prospects, both within
Optus and the broader retail sector.

Consumer Singapore CEO Yuen Kuan Moon, Group CEO Chua Sock Koong and Group Chief Human Resources Officer Aileen Tan mingling with
children with special needs at the Singtel Carnival 2019.

114

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSMinister for Education Mr Ong Ye Kung and Singtel’s management flag off the 2019 Race Against Cancer.

Optus Retail employees coached
172 students and 20 of them successfully
gained employment with us.

Our staff are also encouraged to
volunteer their time and give back
to the community through initiatives
such as the Singtel Carnival, Singapore’s
largest event designed exclusively
for children with special needs. The
2019 event was organised by 1,800 staff
volunteers and saw more than 1,600
students from 14 special education
schools enjoy a fun-filled day of
games, activities and performances.

We have also been extending our
volunteering outreach to support
communities in countries where

our regional associates operate
through Better Together, our annual
overseas volunteering programme.
About 100 staff volunteers from
Singtel, Optus, Airtel, AIS and Globe
participated in four expeditions
to Australia, India, the Philippines
and Thailand for the ninth edition
of Better Together in 2019.

PROMOTING ONLINE
SAFETY FOR CHILDREN
Educating our children and youth about
online safety has become increasingly
important as digitalisation becomes
a way of life for many. In the past
five years, our Singtel Group Digital
Thumbprint Programme has reached
more than 540,000 students, parents

and educators to support digital safety
and responsibility in Singapore
and Australia.

We have been collaborating with DQ
Institute on its #DQEveryChild initiative,
with the aim of empowering every
child with digital intelligence. On Safer
Internet Day 2020, we supported the
launch of DQ Institute’s Child Online
Safety Index (COSI), the world’s first
real-time analytical platform to help
countries better monitor and
understand the status of children’s
online safety. COSI will enable
stakeholders to identify areas for
improvement and work on coordinated
responses to minimise digital risks
for children.

115

SustainabilityINCLUSION AND WELL-BEING
A key focus of our community strategy
is advancing the disability employment
agenda in Singapore. As a founder
and co-chair of the Singapore
Business Network on DisAbility, we
have been actively supporting SG
Enable’s mentorship and internship
programmes for tertiary students
with disabilities, as well as university
career fairs and CV clinics to help
the students build their resumes.

As a technology company, we
leverage our strengths to drive
digital inclusion for vulnerable
segments. We supported 1,000
disadvantaged seniors in Singapore
with free mobile services under
CareLine’s 24-hour telephone
befriending service. We are also
helping to bridge the digital divide
through our Donate Your Data
initiative, which was scaled up
in December 2019 and has allowed

Optus customers to donate data
from their mobile plan to young
Australians in need.

Fighting cancer is another cause close
to our hearts. We have been the title
sponsor of the Singtel-Singapore
Cancer Society Race Against Cancer
for 11 consecutive years. In 2019, we
donated S$250,000 to the Singapore
Cancer Society to support its Help the
Children and Youth Programme.

MARKETPLACE AND CUSTOMERS
ADVOCATING RESPONSIBLE AND ETHICAL BUSINESS PRACTICES

No person or organisation can go it
alone to build a sustainable future
for all. Since 2016, we have invested
S$5 million in Singtel Future Makers,
our regional accelerator programme,
which was set up to encourage
innovation that addresses social and
environmental issues in the community.
Through the programme, we hope to
spur start-ups that share this same
vision by providing support for them

through capacity building and
mentorship workshops and connecting
them with our ecosystem of partners.

With the COVID-19 outbreak
highlighting the importance of social
enterprises more than ever in tackling
social and community challenges
in this region, Singtel Future Makers
2020 was launched with a special
pandemic support grant on a fast

track to support successful applicants
making innovative use of technology
to address issues arising from the
coronavirus. We recognise start-
ups need more help to find their
footing during this period and hope
our programme will allow them
to scale their solutions for wider
social impact even post-COVID.

116

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWS
KEY ENVIRONMENTAL AND SOCIAL PERFORMANCE INDICATORS

Singapore

Australia

2020

2019

2020

2019

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)

1,466,802

1,347,094

1,834,699

162,566

164,629

427,706

864,646

7,658

753,238

7,538

133

68,737(2)

883(4)

1,749,622

418,060

160

78,774(3)

2,294(4)

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(5)

– Workplace injury incidence rate

– Workplace injury frequency rate

– Workplace injury severity rate

Social Performance: Community

15.7

10.6

5.1

40.2

0.8

0.4

7.9

18.3

12.4

5.9

34.8

1.5

0.7

12.9

15.3

9.4

5.9

19.6

2.1

1.2

8.3

17.0

10.6

6.4

18.4

2.2

1.3

16.7

Community investment ($ million)(6)

Total volunteering hours

S$8.6

11,487

S$11.7

13,503

A$14.7

16,739

A$8.7

13,206

Notes:
(1) Please refer to the Singtel Group Sustainability Report 2020 for the reporting scope of environmental indicators.
(2) Water use for Optus Sydney Campus and Optus Melbourne office only.
(3) Water use for Optus Sydney Campus only.
(4) Data covers waste directly managed by Optus’ contracted waste vendor.
(5) Workplace safety and health metrics based on International Labour Organization (ILO) definitions.
(6) Community investment has been verified by The London Benchmarking Group (LBG).

Scan here to view
the Singtel Group
Sustainability Report 2020
online.

117

SustainabilityGroup Five-year
Financial Summary

Income Statement (S$ million)

Group operating revenue
Australia Consumer
Australia Consumer (A$ million)
Singapore Consumer
Group Enterprise
Group Digital Life
International Group(2)

Group EBITDA

Australia Consumer
Australia Consumer (A$ million)
Singapore Consumer
Group Enterprise
Group Digital Life
International Group
Corporate

Group EBIT (before associates)

Australia Consumer
Australia Consumer (A$ million)
Singapore Consumer
Group Enterprise
Group Digital Life
International Group
Corporate

Share of associates' pre-tax profits(3)

Group EBITDA and share of associates'

pre-tax profits(3)

Group EBIT
Underlying net profit(4)
Net profit(5)
Exchange rate(6) (A$ against S$)

''Associate'' refers to an associate and/or a joint venture under SFRS(I).

Financial Year ended 31 March

2020(1)

2019(1)

2018(1)

2017

2016

16,542
7,251
7,753
2,110
6,026
1,145
10

4,541
2,388
2,553
757
1,587
(48)
(55)
(87)

1,961
898
960
497
858
(140)
(60)
(92)

1,743

6,284
3,704
2,457
1,075
0.935

17,372
7,579
7,659
2,234
6,329
1,224
6

4,692
2,456
2,482
748
1,695
(92)
(38)
(78)

2,470
1,164
1,178
501
1,080
(152)
(43)
(81)

1,536

6,228
4,006
2,825
3,095
0.990

17,268
7,475
7,128
2,236
6,477
1,080
-

5,051
2,591
2,470
753
1,863
(51)
(22)
(84)

2,801
1,261
1,203
513
1,256
(120)
(23)
(85)

2,461

7,511
5,261
3,593
5,473
1.049

16,711
7,192
6,897
2,380
6,600
539
-

4,998
2,521
2,416
792
1,913
(122)
(18)
(88)

2,759
1,283
1,229
508
1,268
(190)
(20)
(90)

2,886

7,884
5,645
3,871
3,853
1.043

16,961
7,684
7,532
2,426
6,397
454
-

5,013
2,510
2,462
774
1,959
(137)
(18)
(76)

2,864
1,326
1,301
504
1,337
(206)
(19)
(79)

2,791

7,804
5,655
3,805
3,871
1.020

Notes:
(1) Based on Singapore Financial Reporting Standards (International) (SFRS(I)). FY 2020 includes the effects from adoption of SFRS(I) 16, Leases, from 1 April 2019 on a prospective basis.
(2) Comprises mainly mobile financial business, and gaming and digital content business.
(3) Excludes the Group's share of the associates' significant one-off items which have been classified as exceptional items of the Group.
(4) Underlying net profit is defined as net profit before exceptional items.
(5) FY 2020 includes the Group's share of Airtel's net exceptional loss of S$1.80 billion mainly for regulatory costs. FY 2018 included the gain on disposal of economic interest in NetLink Trust

of S$2.03 billion.

(6) Average A$ rate for translation of Optus' operating revenue.

118

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWPERFORMANCEFINANCIALSADDITIONAL INFORMATIONGOVERNANCE AND SUSTAINABILITYBUSINESS REVIEWSCash Flow (S$ million)

Group free cash flow(2)

Optus

Optus (A$ million)

Singtel and other subsidiaries

Associates' dividends (net of withholding tax)

Group cash capital expenditure

Balance Sheet (S$ million)

Total assets

Shareholders' funds

Net debt

Key Ratios

Financial Year ended 31 March

2020(1)

2019(1)

2018(1)

2017

2016

3,781

1,285

1,396

1,202

1,294

2,037

3,650

1,006

1,028

1,242

1,402

1,718

3,606

989

947

1,126

1,492

2,349

3,054

514

500

1,040

1,500

2,261

2,718

631

617

869

1,218

1,930

48,955

26,789

12,499

48,915

29,838

9,883

48,496

29,737

9,877

48,294

28,214

10,384

43,566

24,989

9,142

Proportionate EBITDA from outside Singapore (%)

Return on invested capital(3) (%)

Return on equity (%)

Return on total assets (%)

Net debt to EBITDA and share of associates'

pre-tax profits (number of times)

EBITDA and share of associates' pre-tax profits
to net interest expense (number of times)

Per Share Information (S cents)

Earnings per share - underlying net profit

Earnings per share - basic

Net assets per share

Dividend per share - ordinary

Dividend per share - special

6.4

3.8

2.1

2.0

13.8

15.05

6.58

164

12.25

7.7

10.4

6.3

1.6

16.2

17.31

18.96

183

17.50

9.6

18.9

11.2

1.3

20.1

22.01

33.53

182

17.50

3.0

10.9

14.5

8.3

1.3

11.7

15.6

9.0

1.2

23.4

25.3

24.07

23.96

173

17.50

23.88

24.29

157

17.50

Notes:
(1) Based on SFRS(I). FY 2020 includes the effects from adoption of SFRS(I) 16, Leases, from 1 April 2019 on a prospective basis.
(2) Free cash flow refers to cash flow from operating activities, including dividends from associates, less cash capital expenditure.
(3) Return on invested capital is defined as EBIT (post-tax) divided by average capital.

119

Group Five-yearFinancial SummaryFIVE-YEAR FINANCIAL REVIEW

FY 2020
This has been a challenging year, given structural
shifts in the industry, soft economic conditions, adverse
regulatory outcomes in India and the onset of COVID-19
in the fourth quarter. With a 6% depreciation in the
Australian Dollar, operating revenue declined 4.8%
to S$16.54 billion and EBITDA fell 3.2% to S$4.54 billion.
In constant currency terms, operating revenue dipped
2.0% mainly from lower mobile service revenue and
equipment sales while EBITDA remained stable on
reduction in operating lease expenses under the new lease
accounting standard. EBIT (before associates) reduced
19% after including depreciation of right-of-use assets.

Underlying net profit fell 13% to S$2.46 billion, with increased
net losses at Airtel and weakness at Australia Consumer
due to continuing data price competition, lower equipment
sales and margins, and low NBN resale margins.

Net profit declined 65% to S$1.08 billion due to net exceptional
losses of S$1.38 billion mainly arising from share of Airtel’s
exceptional charges for regulatory costs, including the
adjusted gross revenue matter and a one-time spectrum
charge.

FY 2019
The Group 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 caused by operating losses at Airtel
and a lower contribution from Telkomsel amid aggressive
price competition in India and Indonesia respectively. The
decline was partly mitigated by double-digit profit growth
at Globe in the Philippines with robust revenue growth in
mobile and broadband.

With lower contributions from the associates, underlying net
profit declined 21%. Net profit was S$3.10 billion, down 44%
from FY 2018(1).

FY 2018
The Group delivered record earnings for FY 2018 with net
profit of S$5.45 billion bolstered by an 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 the first-time contribution from
Turn, which was acquired by Amobee in April 2017.
In constant currency terms, operating revenue and
EBITDA increased by 4.7% and 1.5% respectively.

Telkomsel due to intense competition and the mandated
reduction in mobile termination charges in India, as well
as a lower contribution from NetLink NBN Trust following
the reduction in economic interest of 75.2% in July 2017.
The decline was partly mitigated by a higher contribution
from Intouch which was 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 8.4%.

The associates’ pre-tax contributions declined 15% to
S$2.46 billion on weaker earnings from Airtel India and

Note:
(1) Included gain on disposal of economic interest in NetLink Trust of S$2.03 billion.

120

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYFINANCIALSADDITIONAL INFORMATIONPERFORMANCEBUSINESS REVIEWSFY 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 the first-time contribution
from Intouch, which was 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.

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 and 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.

121

Group Five-yearFinancial Summary
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 associates' post-tax results(2)(3)

Exceptional items (pre-tax)

FY 2020(1)
(S$ million)

FY 2019
(S$ million)

16,542

(9,753)

6,789

179

180

(530)

416

245

17,372

(10,314)

7,058

225

1,563

1,894

Total value added

7,034

8,952

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 (losses)(3)/profits

Non-controlling interests

2,426

513

462

2,857

6,258

2,580

(1,782)

(22)

776

2,590

675

393

2,857

6,515

2,222

238

(23)

2,437

Total value added

7,034

8,952

Average number of employees

23,080

24,071

"Associate" refers to an associate and/or a joint venture under SFRS(I).

Notes:
(1) Includes the effects from adoption of SFRS(I) 16, Leases, from 1 April 2019 on a prospective basis.
(2) Includes the Group's share of the associates' significant one-off items.
(3) FY 2020 includes the Group's share of Airtel's net exceptional loss of S$1.80 billion mainly for regulatory costs.

Value Added
(S$ million)

2020

2019

7,034

8,952

-1,918

Value Added Per Employee
(S$‘000)

2020

2019

305

372

-67

Value Added Per Dollar
of Employee Costs
(S$)

2020

2019

2.90

3.46

-0.56

Value Added Per Dollar
of Turnover
(S$)

2020

2019

0.43

0.52

-0.09

122

Group Value AddedStatementsSingapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYFINANCIALSADDITIONAL INFORMATIONPERFORMANCEBUSINESS REVIEWS
GROUP

Financial Year ended 31 March

2020(1)
(S$ million)

2019
(S$ million)

Change
(%)

Change in
constant
currency(2)
(%)

Operating revenue

16,542

17,372

EBITDA

EBITDA margin

Share of associates’ pre-tax profits(3)

EBIT

(exclude share of associates’ pre-tax profits(3))

4,541

4,692

27.5%

1,743

3,704

1,961

27.0%

1,536

4,006

2,470

Net finance expense

(282)

(355)

Taxation

(988)

(850)

Underlying net profit(4)

2,457

2,825

Underlying earnings per share(4) (S cents)

Exceptional items (post-tax)

Net profit

Basic earnings per share (S cents)

Share of associates’ post-tax profits(3)

“Associate” refers to an associate and/or a joint venture under SFRS(I).

“**” denotes less than +/-0.05%.
“nm” denotes not meaningful.

15.1

(1,382)

17.3

270

1,075

3,095

6.6

1,277

19.0

1,383

-4.8

-3.2

13.5

-7.5

-20.6

16.3

-13.0

-13.1

-65.3

-7.7

-2.0

8.8

-8.1

-18.6

-17.1

15.5

-14.0

-65.8

-11.6

Notes:
(1) Includes the effects from adoption of Singapore Financial Reporting Standards (International) (SFRS(I)) 16, Leases, from 1 April 2019 on a prospective basis. The adoption has resulted

in lower operating lease expenses and increases in depreciation charge and interest expense.

(2) 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 2019 (FY 2019).

(3) Excludes the Group’s share of the associates’ significant one-off items which have been classified as exceptional items of the Group.
(4) Underlying net profit refers to net profit before exceptional items.

123

ManagementDiscussion and Analysisgain of S$270 million last year. The net
exceptional loss arose mainly from the
share of Airtel’s exceptional charges for
regulatory costs, including the adjusted
gross revenue matter and a one-time
spectrum charge. Consequently,
the Group recorded a net profit of
S$1.08 billion, down 65% from FY 2019.

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 slightly over
three-quarters of both the Group’s
proportionate revenue and EBITDA.

The Group’s combined mobile customer
base reached 705 million, up 13 million
from a year ago, mainly from Airtel.

The Group faced a challenging year
in FY 2020 marked by structural
shifts in the industry, weak economic
conditions, adverse regulatory outcomes
in India, and the onset of COVID-19
from February 2020. Despite these
challenges, the Group remained resilient
and gained customer market share in
mobile and fixed services in Singapore,
and maintained its enterprise market
leadership in Singapore and the
Asia Pacific region. The Group also
strengthened its network position with
ongoing investments, and won 5G
spectrums in Singapore and Thailand,
as well as launched 5G services in
Australia and the Philippines.

In constant currency terms, operating
revenue slid 2.0% on lower mobile
service revenue and equipment sales
across Singapore and Australia,
aggravated by COVID-19. EBITDA,
however, was stable from continued
cost management, wage credits from
the Singapore government and lower
operating lease expenses under the
new lease accounting standard. With
a 6% depreciation in the Australian
Dollar, operating revenue and EBITDA
fell 4.8% and 3.2% respectively.

EBIT (before associates) declined
21% and would have been down
19% in constant currency terms.

The Australia business posted lower
operating revenue and earnings with
its consumer business impacted by
low margins from NBN resale and
equipment sales although this was partly
mitigated by higher NBN migration
revenues. Its enterprise business was
weighed down by lower legacy services
and intense price competition.

The post-tax underlying profit
contributions from the associates fell
7.7% on higher net loss from Airtel which
was partly offset by higher profits
from Telkomsel, AIS and Globe. While
operating performance improved in
India and Africa, Airtel’s net loss widened
due to higher finance costs, foreign
exchange losses and lower tax credits.

Net finance expense fell 21% despite
higher interest expense on lease
liabilities as the Group recorded
S$148 million of income from its
investment as a pre-IPO shareholder
in Airtel Africa.

Including depreciation and amortisation
charges which rose 16% (21% in
constant currency terms) mainly
from right-of-use assets, the Group’s

With the weakness in the Australia
business and higher net losses at Airtel,
underlying net profit declined 13%. Net
exceptional loss was S$1.38 billion for
the year compared to a net exceptional

124

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYFINANCIALSADDITIONAL INFORMATIONPERFORMANCEBUSINESS REVIEWS
BUSINESS SEGMENT

Operating revenue

Australia Consumer

Singapore Consumer(3)

Group Enterprise

Group Digital Life

International Group(3)(4)

Group

EBITDA

Australia Consumer

Singapore Consumer(3)

Group Enterprise

Group Digital Life

International Group(3)(4)

Corporate

Financial Year ended 31 March

2020(1)
(S$ million)

2019
(S$ million)

Change
(%)

Change in
constant
currency(2)
(%)

7,251

2,110

6,026

1,145

16,542

2,388

757

1,587

(48)

(55)

(87)

7,579

2,234

6,329

1,224

17,372

2,456

748

1,695

(92)

(38)

(78)

1.2

-5.5

-3.8

-7.3

60.7

-2.0

2.8

1.2

-6.1

-47.5

47.2

12.2

-18.5

-0.8

-21.2

-8.7

39.9

14.4

-18.6

-4.3

-5.5

-4.8

-6.4

60.7

-4.8

-2.7

1.2

-6.4

-47.4

47.2

12.2

-3.2

-22.8

-0.8

-20.6

-8.0

39.9

14.4

-20.6

230.3

-4.4

-15.4

-64.5

Group

4,541

4,692

EBIT (before share of associates' pre-tax profits)

Australia Consumer

Singapore Consumer(3)

Group Enterprise

Group Digital Life

International Group(3)(4)

Corporate

Group

Australia Consumer (A$ million)

NBN migration revenues

Excluding NBN migration revenues

- Operating revenue

- EBITDA

- EBIT

“**” denotes less than +/-0.05%.

898

497

858

(140)

(60)

(92)

1,961

1,164

501

1,080

(152)

(43)

(81)

2,470

607

184

7,146

1,946

353

7,475

2,299

994

Notes:
(1) Includes the effects from adoption of SFRS(I) 16, Leases, from 1 April 2019 on a prospective basis.
(2) Assuming constant exchange rates for the Australian Dollar and United States Dollar from FY 2019.
(3) Comparatives have been adjusted to exclude certain digital businesses (mainly Singtel Dash) transferred to ‘International Group’ from 1 April 2019.
(4) Comprises mainly mobile financial business, and gaming and digital content business. EBITDA and EBIT include the corporate costs of International Group which also supports the Group’s

regional investments. The results here do not include the equity accounted results of the regional associates which are shown under the ‘Associates’ section.

125

ManagementDiscussion and Analysisdemand streaming service HOOQ,
which was placed under liquidation in
March 2020. Amobee’s revenue fell 7.9%
as growth in programmatic platform
business was negated by continued
declines in legacy managed media
and social businesses, and spending
cuts by certain key customers. Despite
lower operating revenue, negative
EBITDA fell 47% with cost management
and lower losses from HOOQ partly on
cessation of its operations. Including
higher depreciation and amortisation
charges from investments in technology
platform and right-of-use assets,
negative EBIT reduced by 8.0%.

INTERNATIONAL GROUP
Operating revenue increased mainly
from the growth in Dash’s remittance
and payment services as well as
sponsorship revenue for PVP Esports.
Dash’s monthly active user base
rose 84% and remittance transaction
counts grew 71% from a year ago
with increased scale. EBITDA and
EBIT losses increased on continued
ramp-up of the digital businesses.

AUSTRALIA CONSUMER
Operating revenue and EBITDA grew
1.2% and 2.8% respectively, boosted
by NBN migration revenues which
peaked during the year. Excluding
NBN migration revenues, operating
revenue and EBITDA fell 4.4% and
15% respectively, reflecting lower
contributions from retail fixed and
equipment sales. Retail fixed margins
declined on a higher mix of NBN
customers which grew a strong
251,000 from a year ago but resulted
in adverse margin impact. Equipment
sales revenue and margins declined,
reflecting lower sales volume, price
competition and lower handset vendor
rebates. Mobile service revenue
declined 4.7% on higher SIM-only
plan adoption and intense data price
competition. For the year, strong
postpaid additions drove an increase
of 167,000 in total mobile customer
base(1). EBIT fell 19% after including
depreciation and amortisation charges
which rose 22% mainly from right-of-use
assets, and would have declined 65%
excluding NBN migration revenues.

SINGAPORE CONSUMER
In Singapore, competition remained
intense. Mobile operators launched
all-digital brands and the fourth
mobile network operator commercially
launched at end of March 2020.
Operating revenue declined 5.5% with
reductions in mobile, TV and fixed voice
partly mitigated by growth in fixed
broadband. Excluding the 2018 FIFA
World Cup revenue last year, TV revenue
would have been stable. Equipment
sales declined 3.9% due mainly to the
supply disruption for certain premium
handsets and soft consumer sentiment
from COVID-19 in the March quarter.
Mobile service revenue fell 7.5% on
continued voice erosion, lower roaming

and prepaid revenues, as well as the
impact from amortisation of handset
subsidies. For the year, the number of
postpaid customers(1) grew by 130,000
as GOMO and SIM-only plans gained
traction. EBITDA, however, rose 1.2%
on strong cost management, wage
credits and recovery of infrastructure
costs from a telco operator. EBIT
remained stable after including higher
depreciation from right-of-use assets.

GROUP ENTERPRISE
Operating revenue and EBITDA
decreased 4.8% and 6.4% respectively
on continued declines in legacy services
especially voice, aggressive price
competition as well as weak business
sentiment. Excluding Australia, both
operating revenue and EBITDA would
have been stable. ICT revenue, which
constituted 51% (FY 2019: 48%) of Group
Enterprise’s revenue, was stable but
grew 1.5% in constant currency terms
with growth in Singapore offsetting
lower sales in Australia. In Singapore,
ICT revenue grew strongly at 6.7% driven
by NCS and higher data centre revenue
boosted by new wins and service turn-
on for a large customer. NCS delivered
robust revenue growth of 7.0% and
closed the year with a strong order
book of S$3.2 billion from new wins and
key contract renewals. The Australia
business faced challenging market
dynamics, legacy product declines,
pricing pressures as well as weaker
demand especially from the government
and financial sectors. EBIT declined by
21% after including higher depreciation
from right-of-use assets and
amortisation of software intangibles.

GROUP DIGITAL LIFE
Operating revenue declined 6.4% due
mainly to lower revenues from digital
marketing arm Amobee and video-on-

Note:
(1) Includes Enterprise mobile customers.

126

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYFINANCIALSADDITIONAL INFORMATIONPERFORMANCEBUSINESS REVIEWSASSOCIATES(1)

Financial Year ended 31 March

2020
(S$ million)

2019
(S$ million)

Change
(%)

Change in
constant
currency(2)
(%)

Group share of associates' pre-tax profits(3)

(excluding Airtel and BTL)

Share of post-tax profits

1,743

2,146

1,536

2,047

Telkomsel

AIS

Intouch(3)(4)

- operating results

- amortisation of acquired intangibles

Globe

Airtel(3)(5)

- ordinary results (India and South Asia)

- ordinary results (Africa)(6)

- associates

- exceptional items (mainly deferred tax credits)

Bharti Telecom Ltd (BTL)(7)

Regional associates(3)

Other associates(3)(8)

Group share of associates’ post-tax profits(3)

(excluding Airtel and BTL)

“Associate” refers to an associate and/or a joint venture under SFRS(I).

“nm” denotes not meaningful.

885

305

105

(23)

278

(350)

(14)

(296)

(63)

(359)

1,191

1,277

1,636

843

286

101

(22)

251

(368)

145

(30)

121

(131)

(40)

(171)

1,287

1,383

1,554

13.5

4.8

5.0

6.5

3.7

1.4

4.4

11.0

-4.8

-52.9

-52.0

125.3

58.1

109.6

-7.5

-10.4

-7.7

5.3

8.8

1.5

2.5

1.0

-1.6

-3.9

-0.9

6.6

-5.2

-53.3

-51.7

125.2

59.2

109.8

-11.7

-10.4

-11.6

2.0

Notes:
(1) Based on SFRS(I) and includes the adoption of SFRS(I) 16, Leases, from 1 April 2019 on a prospective basis.
(2) Assuming constant exchange rates for the regional currencies (Indian Rupee, Indonesian Rupiah, Philippine Peso and Thai Baht) from FY 2019.
(3) Share of results excludes 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) Singtel’s equity interest in Airtel was 33.3% as at 31 March 2020 (31 March 2019: 39.5%).
(6) Airtel’s equity interest in Airtel Africa was 56.0% as at 31 March 2020 (31 March 2019: 68.3%).
(7) BTL held an equity interest of 38.8% in Airtel as at 31 March 2020 (31 March 2019: 50.1%).
(8) Includes the share of results of Singapore Post Limited and NetLink NBN Trust (holding company of NetLink Trust).

127

ManagementDiscussion and Analysis
Country mobile penetration rate
Market share, 31 March 2020(2)
Market share, 31 March 2019(2)
Market position(2)

Mobile customers ('000)
- Aggregate
- Proportionate
Growth in mobile customers(3) (%)

Telkomsel

120%
59.3%
60.9%
#1

162,567
56,898
-3.6%

AIS

140%
45.2%
45.2%
#1

41,156
9,598
-0.8%

Globe

150%
55.0%
56.6%
#1

89,320
42,007
7.0%

Airtel(1)

88%
28.4%
28.0%
#3

397,200
122,158
3.4%

Notes:
(1) Mobile penetration rate, market share and market position pertain to India market only.
(2) Based on number of mobile customers.
(3) Compared against 31 March 2019 and based on aggregate mobile customers.

The regional associates continued
to ramp up their investments in
network infrastructure, spectrum
and content to drive data and
digital growth during the year.

Intouch’s post-tax profit contribution was
stable as a higher contribution from AIS
offset the decline in Thaicom’s satellite
business. With a stronger Thai Baht,
post-tax profit contribution rose 4.4%.

Telkomsel continued to face intense
competition outside Java and
pressures on its legacy business.
Overall operating revenue rose 2.0%
with growth in data and digital services
offsetting lower voice and SMS revenues.
EBITDA increased on higher revenue
and lower operating lease expenses.
Despite higher depreciation from
right-of-use assets and increased
startup losses from its fintech associate,
Telkomsel’s post-tax profit rose 2.5%
due to the reduction in corporate
tax rate from January 2020. With a
stronger Indonesian Rupiah, Telkomsel’s
post-tax contribution increased
5.0% in Singapore Dollar terms.

AIS’ service revenue (excluding
interconnect and equipment rental)
grew 4.8% from both mobile and
fixed broadband services. EBITDA
increased on revenue growth and
lower payments from a new
partnership agreement with TOT
Public Company Limited signed
in September 2019. Including higher
depreciation and spectrum
amortisation charges, AIS’ post-tax
profit grew 1.0% and in Singapore
Dollar terms rose 6.5% from a
stronger Thai Baht.

Globe delivered a strong performance
with healthy growth in service revenue
and EBITDA of 10% and 11% respectively
from data and home broadband
services, fuelled by the increased
popularity of streaming, on-demand
video content and gaming. Despite
higher depreciation charges from
an expanded network and share
of increased equity losses from its
associates, Globe’s post-tax profit rose
6.6% and in Singapore Dollar terms grew
11% from a stronger Philippine Peso.

Airtel has started to turn the corner
with the consolidation in the Indian
mobile market. The mobile price hikes
in December 2019 have lifted Airtel’s
mobile revenue by 11% and driven strong
4G customer gains. Overall operating
revenue from India and South Asia
grew 7% and EBITDA rose steeply by
47% on revenue growth and lower
operating lease expenses. Despite
higher depreciation and amortisation
charges and increased finance costs,
the Group’s share of ordinary net loss
reduced by 4.8% to S$350 million.

Airtel Africa was listed on the London
Stock Exchange and Nigerian Stock
Exchange in July 2019. It maintained its

strong momentum with revenue and
EBITDA up 14% and 29% respectively in
constant US Dollar terms across voice,
data and mobile money. Airtel’s stake
in Africa was diluted to 56.0% as at 31
March 2020 (31 March 2019: 68.3%).
Consequently, including increased
foreign exchange losses from currency
headwinds and higher tax expense, the
Group’s share of Airtel Africa’s ordinary
net profit declined 53% to S$68 million.

With the absence of large tax credits,
the share of Airtel group’s underlying
net loss increased to S$296 million
(FY 2019: S$131 million). Including the
share of Bharti Telecom Limited’s
("BTL") net loss of S$63 million (FY 2019:
S$40 million) mainly from higher net
finance expense on borrowings, the
total share of underlying net losses
of Airtel group and BTL doubled
from a year ago to S$359 million.

Airtel recorded significant exceptional
charges during the year which have
been classified as exceptional items
of the Group. The exceptional items
comprised mainly regulatory costs
including provisions and interest
relating to the adjusted gross revenue
matter, and a one-time spectrum
charge. Including the share of Airtel’s
net exceptional charges of S$1.80 billion,
the overall contribution from Airtel
and BTL was a net loss of S$2.16 billion,
compared to a net profit of S$34 million
last year.

128

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYFINANCIALSADDITIONAL INFORMATIONPERFORMANCEBUSINESS REVIEWSCASH 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

Optus
Singtel and other subsidiaries
Associates (net dividends after withholding tax)

Group free cash flow

Optus (A$ million)

Cash capital expenditure as a percentage of operating revenue

“nm” denotes not meaningful.
“@” denotes more than 500%.

Financial Year ended 31 March

2020(1)
(S$ million)

2019
(S$ million)

Change
(%)

5,817

(2,921)

(2,447)

450

513

1,000

1,285
1,202
1,294

3,781

1,396

12%

5,368

(2,329)

(3,056)

(16)

525

513

1,006
1,242
1,402

3,650

1,028

10%

8.4

25.4

-19.9

-2.3

95.0

27.7
-3.2
-7.7

3.6

35.8

Note:
(1) Includes the effects from adoption of SFRS(I) 16, Leases, from 1 April 2019 on a prospective basis. The adoption has resulted in higher operating cash flow from lower operating lease

payments now classified as part of financing cash flow.

Net cash inflow from operating
activities grew 8.4% to S$5.82 billion
on positive working capital and lower
tax payments which offset the decline
in earnings and lower associates’
dividends. Dividends received from the
associates fell 7.7% due mainly to a lower
contribution from Telkomsel and the
absence of dividends from Airtel India.

The investing cash outflow was
S$2.92 billion. During the year, Singtel
received proceeds of S$128 million from
the disposal of a property in Singapore
and S$148 million as return from its
investment as a pre-IPO shareholder
in Airtel Africa. Payments were made
for Singtel’s subscription to Airtel’s

rights issue of S$735 million and Optus’
acquisition of 3.6 GHz spectrum for
S$163 million (A$185 million). Capital
expenditure totalled S$2.04 billion,
comprising S$1.36 billion (A$1.45 billion)
for Optus and S$682 million for the
rest of the Group. In Optus, capital
investments in mobile amounted to
A$895 million with the balance in fixed
and other investments. The other
major capital investments for the rest
of the Group included S$318 million
for fixed and data infrastructure,
S$181 million for mobile and the balance
for ICT and other investments.

The Group’s free cash flow grew 3.6%
to S$3.78 billion on higher operating

cash flows partially offset by higher
capital expenditure. On a comparable
basis to last year where operating
lease payments were classified as
part of operating cash flow, free cash
flow would have declined by 8.5%.

Net cash outflow for financing activities
amounted to S$2.45 billion. Major
cash outflows included net interest
payments of S$463 million, and
payments of S$1.75 billion for final
dividends relating to FY 2019 and
S$1.11 billion for interim dividends
relating to FY 2020, partly offset
by net increase in borrowings of
S$726 million.

129

ManagementDiscussion and AnalysisSUMMARY 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(2)

Other reserves

Equity attributable to shareholders

Non-controlling interests

As at 31 March

2020(1)
(S$ million)

2019
(S$ million)

7,176

41,779

7,078

41,837

48,955

48,915

10,579

11,562

8,794

10,311

22,141

19,105

26,814

29,810

4,127
25,448
(2,444)

(342)

26,789

4,127
27,513
(1,768)

(35)

29,838

(28)

Total equity

26,814

29,810

Notes:
(1) Includes the effects from adoption of SFRS(I) 16, Leases, from 1 April 2019 on a prospective basis.
(3) ‘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
due mainly to translation losses
for Optus, Telkomsel and Airtel
partly mitigated by translation
gains for the Group’s US Dollar
denominated subsidiaries.

The Group’s financial position
remains healthy.

Total assets were stable with
recognition of right-of-use assets
under the new lease accounting
standard, offset by reduction in the
carrying value of joint ventures due
mainly to higher losses at Airtel. Total
liabilities increased on borrowings
and inclusion of lease liabilities under
the new lease accounting standard.

130

Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYFINANCIALSADDITIONAL INFORMATIONPERFORMANCEBUSINESS REVIEWSCAPITAL MANAGEMENT AND DIVIDEND POLICY

Gross debt (S$ million)

Net debt(2) (S$ million)

Net debt gearing ratio(3) (%)

Net debt to EBITDA and share of associates’ pre-tax profits (number of times)

Interest cover(4) (number of times)

Financial Year ended 31 March

2020(1)

13,499

12,499

31.8

2.0

13.8

2019

10,396

9,883

24.9

1.6

16.2

Notes:
(1) Includes the effects from adoption of SFRS(I) 16, Leases, from 1 April 2019 on a prospective basis.
(2) Net debt is defined as gross debt adjusted for related hedging balances less cash and bank balances.
(3) 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.
(4) Interest cover refers to the ratio of EBITDA and share of associates’ pre-tax profits to net interest expense.

As at 31 March 2020, the Group’s net
debt was S$12.5 billion, an increase
of S$2.6 billion from a year ago.
The increase was due mainly to
the recognition of S$2.1 billion of
lease liabilities under SFRS(I) 16 and
participation in Airtel’s rights issue.

81% of underlying net profit. This is lower
than the 17.5 cents paid last year, as
the Board took the prudent decision
to conserve financial headroom to
cope with uncertainties in the current
COVID-19 operating environment
and the capacity to invest in 5G.

The Group has one of the strongest
credit ratings among telecommunication
companies in the Asia Pacific region
and continues to maintain a healthy
capital structure. Singtel is currently
rated A1 by Moody’s and A by S&P
Global Ratings.

For the financial year ended 31 March
2020, the total ordinary dividend
payout, including the proposed final
dividend, is 12.25 cents per share or

Given the uncertainty of the impact
of the COVID-19 pandemic on economic
activity and the Group’s business,
the Group has not provided guidance
for the next financial year ending
31 March 2021. The Group continues
to review its financial outlook and
shareholders’ returns. It will update
the market when there are material
developments or when there is greater
clarity in the operating environment.

131

ManagementDiscussion and AnalysisTable of Contents

FINANCIALS

Independent Auditors’ Report

133 Directors’ Statement
144
152 Consolidated Income Statement
153 Consolidated Statement of Comprehensive Income
154
155
159
161

Statements of Financial Position
Statements of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements

ADDITIONAL INFORMATION

Interested Person Transactions
Additional Information on Directors Seeking Re-election
Shareholder Information

260
261
269
271 Corporate Information
272
Contact Points

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 2020.

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 152 to 259 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 2020, 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.

DIRECTORS

The Directors of the Company in office at the date of this statement are -

Simon Claude Israel (Chairman)
Lee Theng Kiat (Chairman-designate) (appointed on 15 January 2020)
Chua Sock Koong (Group Chief Executive Officer)
Gautam Banerjee
Venkataraman Vishnampet Ganesan
Bradley Joseph Horowitz
Gail Patricia Kelly
Low Check Kian
Christina Hon Kwee Fong (Christina Ong)
Teo Swee Lian

Dominic Stephen Barton, who served during the financial year, stepped down as a Director of the Company on 26
November 2019.

Peter Edward Mason AM(1), who served during the financial year, retired following the conclusion of the Annual General
Meeting on 23 July 2019.

Bobby Chin Yoke Choong, who served during the financial year, stepped down as a Director of the Company following
the conclusion of the Annual General Meeting on 23 July 2019.

Note:
(1) Member of the Order of Australia

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”).

133

Directors’ StatementFor the financial year ended 31 March 2020

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 2020

At 1 April 2019
or date of
appointment,
if later

At 31 March 2020

At 1 April 2019
or date of
appointment,
if later

The Company

Singapore Telecommunications Limited
(Ordinary shares)
Simon Claude Israel
Lee Theng Kiat
Chua Sock Koong
Gautam Banerjee
Bradley Joseph Horowitz
Gail Patricia Kelly
Low Check Kian
Christina Ong
Teo Swee Lian

1,114,652(1)

8,588,872(3)

-
-
-
1,490
-
1,550

1,019,593
-
8,229,844
-
-
-
1,490
-
1,550

(American Depositary Shares)
Venkataraman Vishnampet Ganesan

3,341.45(5)

3,341.45

Subsidiary Corporations

Amobee Group Pte. Ltd.
(Options to subscribe for ordinary shares)
Venkataraman Vishnampet Ganesan

1,581,805

Optus Finance Pty Limited
(A$250,000,000 4% fixed rate notes due 2022)
Simon Claude Israel

A$1,600,000(6)

(principal amount)

(A$500,000,000 3.25% fixed rate notes due 2023)
Simon Claude Israel

A$1,000,000(7)

(principal amount)

A$1,600,000
(principal amount)

A$1,000,000
(principal amount)

1,360(2)

3,174,949(4)

-
-
-
-
-
-

1,360
-
4,104,371
-
-
-
-
-
-

134

Directors’ StatementFor the financial year ended 31 March 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSSingapore Telecommunications Limited | Annual Report 2020
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 2020

At 1 April 2019
or date of
appointment,
if later

At 31 March 2020

At 1 April 2019
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

1,160,000(8)
185,600
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

Ascott Residence Trust Management Limited
(Unit holdings in Ascott Residence Trust)
Chua Sock Koong
Teo Swee Lian

384,000
3,000

(S$250,000,000 4.68% perpetual bonds issued by Ascott Residence Trust)
Chua Sock Koong

S$500,000
(principal amount)

CapitaLand Commercial Trust Management Limited
(Unit holdings in CapitaLand Commercial Trust)
Chua Sock Koong

50,000

CapitaLand Limited
(Ordinary shares)
Simon Claude Israel

141,931(6)

(S$1,000,000,000 2.95% convertible bonds due 2022)
Chua Sock Koong

S$500,000
(principal amount)

-
-

-
-
-

-
-

-
-
-

-
-

CapitaLand Mall Trust Management Limited
(Unit holdings in CapitaLand Mall Trust)
Simon Claude Israel
Chua Sock Koong
Gautam Banerjee

65,600(6)

285,000
120,000

-
-
120,000

-
25,000
-

135

Directors’ StatementFor the financial year ended 31 March 20203.

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 2020

At 1 April 2019
or date of
appointment,
if later

At 31 March 2020

At 1 April 2019
or date of
appointment,
if later

Mapletree Commercial Trust Management Ltd.
(Unit holdings in Mapletree Commercial Trust)
Simon Claude Israel

4,330,609(6)

4,043,520

Mapletree Industrial Trust Management Ltd.
(Unit holdings in Mapletree Industrial Trust)
Simon Claude Israel
Chua Sock Koong

Mapletree Logistics Trust Management Ltd.
(Unit holdings in Mapletree Logistics Trust)
Simon Claude Israel

990,160(6)
11,000

990,160
11,000

1,100,000(6)

1,100,000

Mapletree North Asia Commercial Trust Management Ltd.
(Unit holdings in Mapletree North Asia Commercial Trust)
Simon Claude Israel
Chua Sock Koong

1,000,000(6)
430,000

1,000,000
430,000

Mapletree Real Estate Advisors Pte. Ltd.
(Unit holdings in Mapletree US Logistics Private Trust)
Christina Ong

185

(Unit holdings in Mapletree EU Logistics Private Trust)
Christina Ong

185

Mapletree Treasury Services Limited
(S$625,500,000 4.5% perpetual capital securities)
Simon Claude Israel

S$500,000
(principal amount)

-
-

50,000(2)

-
-

-
50,000

Olam International Limited
(Ordinary shares)
Low Check Kian

1,024,995

2,074,518(9)

2,074,518

136

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 2020

At 1 April 2019
or date of
appointment,
if later

At 31 March 2020

At 1 April 2019
or date of
appointment,
if later

Singapore Airlines Limited
(Ordinary shares)
Simon Claude Israel
Chua Sock Koong
Gautam Banerjee
Low Check Kian

9,000(10)
2,000
7,100
5,600

9,000
2,000
-
5,600

Singapore Technologies Engineering Limited
(Ordinary shares)
Christina Ong

-
-
-
-

Notes:
(1)
(2) Held by Director’s spouse.
(3)
(4) Ms Chua Sock Koong’s deemed interest of 3,174,949 shares included:

1,110,241 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.

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.

(a) 28,137 ordinary shares held by Ms Chua’s spouse; and
(b) An aggregate of up to 3,146,812 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 4,309,544 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.
1 American Depositary Share represents 10 ordinary shares in Singtel.

(5)
(6) Held in the name of Citibank Nominees Singapore Pte Ltd.
(7) Held in the name of Citibank N.A. (Hong Kong).
(8)
(9) Held by Cluny Capital Limited. Mr Low Check Kian is the sole shareholder of Cluny Capital Limited.
(10) 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.

116,000 units held jointly by Mr Simon Claude Israel and his spouse, and 1,044,000 units held in the name of Citibank Nominees Singapore Pte Ltd.

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 2020.

137

Directors’ StatementFor the financial year ended 31 March 2020

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 Gail Kelly (Chairman of the ERCC), Simon Claude Israel, Lee
Theng Kiat, Low Check Kian and Teo Swee Lian.

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 from 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 101.4 million shares have been granted under the Singtel PSP 2012 from its
commencement to 31 March 2020.

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 2019
(’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 2020
(’000)

Date of grant

Share award for Chairman
(Simon Claude Israel)
14.08.19

Performance shares
(Restricted Share Awards)
For Group Chief Executive Officer
(Chua Sock Koong)
20.06.16
19.06.17
19.06.18
20.06.19

(95)

136
383
397
-
916

-
-
-
202
202

-
62
-
-
62

(136)
(223)
-
-
(359)

-
-
-
-
-

-
222
397
202
821

138

Share
awards
granted
(’000)

Additional
share
awards
from targets
exceeded
(’000)

Share
awards
vested
(’000)

Share
awards
cancelled
(’000)

Balance
as at
31 March 2020
(’000)

2,916
14
6,235
87
29
118
8,423
82
77
147
-
-
-
-
18,128

-
-
-
-
-
-
-
-
-
-
8,354
69
129
25
8,577

8,779

-
-
-
860
860

-
-
991
14
5
4
-
-
-
-
-
-
-
-
1,014

(2,877)
(14)
(3,656)
(50)
(17)
(15)
(106)
-
-
-
(11)
-
-
-
(6,746)

(39)
-
(229)
(35)
-
(97)
(873)
-
-
(18)
(767)
-
-
-
(2,058)

-
-
3,341
16
17
10
7,444
82
77
129
7,576
69
129
25
18,915

1,076

(7,105)

(2,058)

19,736

-
-
-
-
-

(1,695)
-
-
-
(1,695)

-
832
634
860
2,326

PERFORMANCE SHARES (Cont’d)

Date of grant

For other staff
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
20.06.19
23.09.19
03.01.20
30.03.20

Sub-total

19,044

Performance shares
(Performance Share Awards)
For Group Chief Executive Officer
(Chua Sock Koong)
20.06.16
19.06.17
19.06.18
20.06.19

1,695
832
634
-
3,161

139

Directors’ StatementFor the financial year ended 31 March 20204.

PERFORMANCE SHARES (Cont’d)

Balance
as at
1 April 2019
(’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 2020
(’000)

6,580
91
3,708
24
17
79
3,374
24
12
-
-
-
-
13,909

17,070

-
-
-
-
-
-
-
-
-
5,321
18
101
10
5,450

6,310

-
-
-
-
-
-
-
-
-
-
-
-
-
-

(6,580)
(91)
(54)
(24)
-
(79)
(163)
-
-
(212)
-
-
-
(7,203)

-
-
3,654
-
17
-
3,211
24
12
5,109
18
101
10
12,156

(8,898)

14,482

36,114

15,184

1,076

(7,200)

(10,956)

34,218

Date of grant

For other staff
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
20.06.19
23.09.19
03.01.20
30.03.20

Sub-total

Total

During the financial year, awards in respect of an aggregate of 7.2 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 2020, 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.

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.

140

SHARE OPTION PLANS (Cont’d)

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 2019 to 31 March 2020, options in respect of an aggregate of 14.7 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 2020,
options in respect of an aggregate of 84.9 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
15 August 2019, 29 October 2019

For non-executive directors
14 October 2015
21 August 2018
1 October 2019

Exercise price

US$0.54 to US$0.79

US$0.54
US$0.55 to US$0.58
US$0.58

US$0.54
US$0.55
US$0.58

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, 73,988 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.

141

Directors’ StatementFor the financial year ended 31 March 2020

SHARE OPTION PLANS (Cont’d)

From 1 April 2019 to 31 March 2020, no options in respect of common stock in Trustwave have been granted to the
employees of Trustwave and/or its subsidiaries. As at 31 March 2020, options in respect of an aggregate of 1.2 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 creditors’ voluntary liquidation)

HOOQ Digital Pte. Ltd. (in creditors’ voluntary liquidation) (“HOOQ”), which was placed under creditors’ voluntary
liquidation on 26 March 2020, had granted share options to the employees of HOOQ and/or its subsidiaries under the
HOOQ Digital Employee Share Option Scheme (the “Scheme”) during the financial year ended 31 March 2020.

From 1 April 2019 to 31 March 2020, options in respect of an aggregate of 17.8 million of ordinary shares in HOOQ have
been granted to the employees of HOOQ and/or its subsidiaries under the Scheme. As at 31 March 2020, options in
respect of an aggregate of 58.0 million of ordinary shares in HOOQ are outstanding.

The grant dates and exercise price of the share options granted under the Scheme, in addition to those which have been
disclosed in the 2019 Annual Report, were as follows –

Date of grant

16 April 2019, 15 July 2019, 15 October 2019

Exercise price

US$0.07

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.
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.

142

AUDIT COMMITTEE

At the date of this statement, the Audit Committee comprises the following members, all of whom are non-executive and
independent -

Gautam Banerjee (appointed Chairman of the Audit Committee on 23 July 2019)
Christina Hon Kwee Fong (Christina Ong)
Gail Kelly (appointed on 15 May 2019)

Bobby Chin Yoke Choong, who served during the financial year, stepped down as Chairman of the Audit Committee
following the conclusion of the Annual General Meeting on 23 July 2019.

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.

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.

AUDITORS

The auditors, KPMG LLP, have expressed their willingness to accept re-appointment.

On behalf of the Directors

Simon Claude Israel
Chairman

Singapore
27 May 2020

143

Chua Sock Koong
Director

Directors’ StatementFor the financial year ended 31 March 2020

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 2020 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 152 to 259.

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
2020 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.

Revenue recognition

The key audit matter

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.

We obtained an understanding of the nature of the various
revenue streams and the related revenue recording processes,
systems and controls. We have also ascertained that revenue
was recognised in accordance with the adopted accounting
policies.

Our audit approach included controls testing as well as
substantive procedures. For our procedures on the design and
operating effectiveness of controls over significant IT systems,
we involved our IT specialists.

144

The key audit matter

Significant management
judgements and estimates are
long-term
required when accounting for revenue from
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.

How the matter was addressed in our audit

In particular, our procedures included:

•

IT systems: Testing of the design and implementation,
and the operating effectiveness of automated controls
over the capture of data at the network switches
IT applications,
and
measurement and billing of revenue, and the recording
of entries in the general ledger.

interfaces between relevant

The accounting policies for revenue recognition are set out in
Note 2.24 to the financial statements and the various revenue
streams for the Group have been disclosed in Note 4 to the
financial statements.

•

the design and
Manual controls: Testing of
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.

Testing of contracts in the ICT business for appropriate
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, including those
relating to the recoverability of contract assets.

the

the appropriateness of

revenue
Assessing
recognition policies for the products and services
offered by the Group in applying SFRS(I) 15 Revenue
from Contracts with Customers, which included but was
not limited to:
-

its allocation

Assessing the appropriateness of the transaction
price and
to performance
obligations identified within bundled contracts
based on stand-alone selling prices; and
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.

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 revenue recognition were reasonable.

•

Testing of manual journal entries recorded in the
general ledger relating to revenue recognition.

145

Independent Auditors’ ReportMembers of Singapore Telecommunications LimitedFor the financial year ended 31 March 2020Impairment assessment of goodwill

The key audit matter

How the matter was addressed in our audit

Goodwill is subject to an annual impairment test or more
frequently if there are indications of impairment.

We evaluated whether CGUs were appropriately identified
by management based on our understanding of the current
business structure of the Group.

At 31 March 2020, the Group’s statement of financial position
includes goodwill amounting to S$11.4 billion, primarily related
to the following cash generating units (“CGUs”):

We involved our valuation specialists in the overall assessment
of the recoverable amounts of the respective CGUs.

Singtel Optus Pty Limited (“Optus”): S$9.3 billion
Amobee, Inc. (“Amobee”): S$1.0 billion
Global Cyber Security: S$1.1 billion

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.

For Amobee, the recoverable amount was calculated to be
below the carrying value of the CGU and an impairment loss
of S$195 million was recognised in the income statement with
a corresponding reduction of the carrying value.

As the recoverable amount for the other 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 25 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:

•

Agreeing the cash flow forecasts used in the impairment
model to Board approved forecasts and budgets;

Considering management’s expectations of the future
business developments and corroborated 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;

Challenging the appropriateness of cash flow forecasts
used by comparing against historical trends and recent
performance and
industry trends. Where relevant,
assessing whether budgeted cash flows for prior years
were achieved to assess forecasting accuracy;

Comparing the discount rates and terminal growth
rates to observable market data; and

Performing a sensitivity analysis of the key assumptions
used to determine which reasonable changes to
assumptions would change
the
impairment assessment.

the outcome of

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.

We found the computation of the impairment amount to be reasonable.

146

The key audit matter

How the matter was addressed in our audit

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.
Where the risk of loss is probable, management is required
to estimate the provision amount based on the expected
economic outflow resulting from the disputes and litigations.

Please refer to Note 43 to the financial statements for
‘Significant Contingent Liabilities of Associates and Joint
Ventures’.

Bharti Airtel Limited Adjusted Gross Revenue (“AGR”) matter
On 24 October 2019, the Supreme Court of India had ruled
that Bharti Airtel Limited, the Group’s equity accounted
joint venture, was
liable to pay to the Department of
Telecommunications certain dues relating to a longstanding
dispute over the definition of AGR applied in calculating levies
payable. Management’s judgement is required in determining
the provisions due to the extensive amount of information
involved.

Our audit procedures included:

•

Inquiring with management and legal counsel of the
joint ventures to understand the process and internal
controls relating to the identification and assessment
of the disputes and litigations, and recognition of the
related liabilities, where appropriate.

Reviewing the audit working papers of the auditors of
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.

Discussing with the Component Auditors on their
evaluation 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.

For the AGR matter, we have reviewed the Component
Auditors’ working papers and the calculation provided
by management to them and discussed the audit
work performed over the underlying data and the
computations of the amounts. We have also read
the Supreme Court of India ruling to ascertain that
all elements mentioned had been appropriately
considered.

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. The share of losses relating to the joint ventures’ litigations and disputes were also found
to be appropriately recorded.

147

Independent Auditors’ ReportMembers of Singapore Telecommunications LimitedFor the financial year ended 31 March 2020Taxation

The key audit matter

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 42 to the financial statements.

How the matter was addressed in our audit

Our audit procedures included:

•

Inquiring with management on the tax issues raised
by the tax authorities and assessing their impact to the
financial statements;

Involving our
tax
appropriateness of
significant tax issues adopted by the Group; and

specialists
the accounting

the
treatments of

in assessing

Assessing
the
position and
Group’s

reasonableness of management’s
the
the accounting
statements.

financial

impact

consolidated

With respect to the ATO matter:

•

tax

Involving our
the
specialist
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 2020;

in assessing

Examining the advice that the Group had obtained
from external specialists to support the position taken
by management; and

Inquiring with management and the external specialists
to discuss the appropriateness of the Group’s position
on the matter.

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.

148

The key audit matter

How the matter was addressed in our audit

On 1 April 2019, the Group adopted SFRS(I) 16 Leases, using
the modified retrospective approach without restating prior
periods’ information.

Management’s judgement and estimates are required in the
application of SFRS(I) 16, including the application of transition
options and practical expedients and the determination of key
assumptions used in measuring the lease liabilities.

The accounting policies for leases are set out in Note 2.25 to
the financial statements and the effects of the implementation
of SFRS(I) 16 for the Group have been disclosed in Note 2.2 to
the financial statements.

Our procedures included:

•

Evaluating
the
approach and practical expedients applied;

the appropriateness of

transition

Identifying and testing of controls relating to the
completeness and accuracy of lease information;

Assessing the reasonableness of management’s key
assumptions such as lease terms and discount rates
used; and

Evaluating the completeness, accuracy and relevance
of disclosures in the financial statements.

Findings
We found the transition approach and practical expedients applied to be appropriate. The controls to account for leases were
operating effectively and the key assumptions used by management were found to be reasonable.

We found the disclosures to the consolidated financial statements to be adequate and appropriate in accordance to SFRS(I) 16
Leases.

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.

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.

149

Independent Auditors’ ReportMembers of Singapore Telecommunications LimitedFor the financial year ended 31 March 2020In 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:

•

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal controls.

Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our 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.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal 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.

150

Independent Auditors’ ReportMembers of Singapore Telecommunications LimitedFor the financial year ended 31 March 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSSingapore Telecommunications Limited | Annual Report 2020From 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
27 May 2020

151

Independent Auditors’ ReportMembers of Singapore Telecommunications LimitedFor the financial year ended 31 March 2020Operating 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 (cents)
- diluted (cents)

Notes

4
5
6

10
11

13
13

2020

S$ Mil

16,542.3
(12,179.7)
178.8

2019

S$ Mil

17,371.7
(12,904.5)
224.7

4,541.4

4,691.9

(2,580.3)

(2,222.2)

1,961.1

2,469.7

415.7

68.2

2,376.8

2,537.9

(529.6)

1,562.7

1,847.2

4,100.6

180.0
(461.8)

38.1
(392.8)

1,565.4

3,745.9

(513.2)

(674.8)

1,052.2

3,071.1

1,074.6
(22.4)

3,094.5
(23.4)

1,052.2

3,071.1

6.58
6.56

18.96
18.93

The accompanying notes on pages 161 to 259 form an integral part of these financial statements.
Independent Auditors’ Report – pages 144 to 151.

152

Consolidated Income StatementFor the financial year ended 31 March 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSSingapore Telecommunications Limited | Annual Report 2020

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

2020

S$ Mil

2019

S$ Mil

1,052.2

3,071.1

(675.3)

(484.5)

506.9
(84.3)
422.6

(433.2)
84.2
(349.0)

182.9
(23.7)
159.2

(122.4)
17.8
(104.6)

73.6

54.6

Share of other comprehensive (loss)/ income of associates and joint ventures

(278.9)

283.8

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 (loss)/ income

Attributable to:
Shareholders of the Company
Non-controlling interests

(184.9)

13.2

(1,065.5)

(132.9)

(13.3)

2,938.2

8.0
(21.3)

(13.3)

2,962.3
(24.1)

2,938.2

The accompanying notes on pages 161 to 259 form an integral part of these financial statements.
Independent Auditors’ Report – pages 144 to 151.

153

Consolidated Statement of Comprehensive IncomeFor the financial year ended 31 March 2020

Notes

15
16
17
18

19
20
21
22
23
24

26
18
12
27

29
30
18
32

29
30
18
32
12
33

Group

Company

31 March
2020
S$ Mil

999.6
5,559.4
279.6
337.2
7,175.8

10,363.8
2,060.5
13,735.9
-
11,637.7
2,074.1

515.0
517.5
234.2
640.4
41,779.1

31 March
2019
S$ Mil

512.7
5,992.7
417.6
155.1
7,078.1

11,050.4
-
14,016.7
-
12,857.9
2,060.2

646.9
283.6
276.6
644.4
41,836.7

31 March
2020
S$ Mil

97.3
2,065.3
26.3
5.3
2,194.2

2,205.8
623.5
-
19,679.2
22.8
24.7

4.0
134.2
-
105.7
22,799.9

31 March
2019
S$ Mil

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

48,954.9

48,914.8

24,994.1

24,649.0

5,640.9
732.9
199.4
3,588.2
382.3
14.0
20.8
10,578.5

189.9
8,384.0
1,818.1
122.9
373.7
525.5
148.3
11,562.4

22,140.9

5,817.1
812.1
255.0
1,846.2
34.0
9.2
20.8
8,794.4

197.4
8,734.4
49.5
149.5
375.0
515.1
289.8
10,310.7

19,105.1

2,417.1
85.5
76.4
-
63.2
-
-
2,642.2

122.2
942.5
581.2
45.1
-
275.5
18.7
1,985.2

4,627.4

26,814.0

29,809.7

20,366.7

4,127.3
22,661.9

4,127.3
25,710.5

4,127.3
16,239.4

1,737.5
89.8
83.6
-
4.8
0.5
-
1,916.2

129.2
786.5
7.7
191.8
-
274.5
26.5
1,416.2

3,332.4

21,316.6

4,127.3
17,189.3

Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial instruments

Non-current assets
Property, plant and equipment
Right-Of-Use assets
Intangible assets
Subsidiaries
Joint ventures
Associates
Fair value through other comprehensive
income (“FVOCI”) investments
Derivative financial instruments
Deferred tax assets
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

26,789.2
24.8

29,837.8
(28.1)

20,366.7
-

21,316.6
-

Total equity

26,814.0

29,809.7

20,366.7

21,316.6

The accompanying notes on pages 161 to 259 form an integral part of these financial statements.
Independent Auditors’ Report – pages 144 to 151.

154

Statements of Financial PositionAs at 31 March 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSSingapore Telecommunications Limited | Annual Report 2020

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156

Statements of Changes in EquityFor the financial year ended 31 March 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSSingapore Telecommunications Limited | Annual Report 2020

Company - 2020

Balance as at 1 April 2019,
previously reported

Share
Capital
S$ Mil

Treasury
(1)
Shares
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

(1.1)

45.2

24.2

2.0

17,119.0

21,316.6

Effects of adoption of SFRS(I) 16

(73.2)

Balance as at 1 April 2019, restated

4,127.3

(1.1)

45.2

24.2

2.0

17,045.8

21,243.4

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 35)
Interim dividend paid (see Note 35)
Others

Total comprehensive income/ (loss)
for the year

-
-
-
-

-
-
-
-
-
-

(1.8)
1.3
-
-

-
-
-
-
-
(0.5)

-
(1.3)
12.2
4.6

(0.3)
(11.3)
-
-
-
3.9

-
-
-
-

-
-
-
-
-
-

-
-
-
-

-
-
-
-
-
-

-
-
-
-

(1.8)
-
12.2
4.6

-
-
(1,747.2)
(1,110.4)
1.3

(0.3)
(11.3)
(1,747.2)
(1,110.4)
1.3
(2,856.3) (2,852.9)

6.0

(1.3)

1,971.5

1,976.2

Balance as at 31 March 2020

4,127.3

(1.6)

49.1

30.2

0.7

16,161.0

20,366.7

The accompanying notes on pages 161 to 259 form an integral part of these financial statements.
Independent Auditors’ Report – pages 144 to 151.

157

Statements of Changes in EquityFor the financial year ended 31 March 2020

Company - 2019

Share
Capital
S$ Mil

Treasury
Shares(1)
S$ Mil

Capital
Reserve
S$ Mil

Hedging
Reserve
S$ Mil

Fair Value
Reserve
S$ Mil

Retained
Earnings
S$ Mil

Total
Equity
S$ Mil

Balance as at 1 April 2018

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 35)
Interim dividend paid (see Note 35)

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

-
-
(1,747.2)
(1,110.4)
(2,857.6)

(0.1)
(13.8)
(1,747.2)
(1,110.4)
(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

Notes:
(1)

(2)

(3)

(4)

‘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.
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 161 to 259 form an integral part of these financial statements.
Independent Auditors’ Report – pages 144 to 151.

158

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

2020
S$ Mil

2019
S$ Mil

1,565.4

3,745.9

2,580.3
529.6
(486.0)
(180.0)
461.8
35.6
2,941.3

2,222.2
(1,562.7)
(171.7)
(38.1)
392.8
36.3
878.8

Operating cash flow before working capital changes

4,506.7

4,624.7

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

188.5
55.8
119.5

(431.6)
338.8
(33.6)

4,870.5

4,498.3

1,439.2
(491.9)
(0.5)

1,548.9
(679.5)
(0.1)

5,817.3

5,367.6

Payment for purchase of property, plant and equipment
Purchase of intangible assets
Investment in associate/ joint venture (Note 1)
Payment for acquisition of intangibles and other assets (Note 2)
Deferred payment/ payment for acquisition of subsidiary, net of cash acquired (Note 3)
Payment for acquisition of FVOCI investments (Note 4)
Proceeds from disposal of subsidiary
Deconsolidation of subsidiary
Payment for acquisition of non-controlling interests
Proceeds/ Deferred proceeds from disposal of associate and joint venture
Proceeds from sale of property, plant and equipment
Proceeds from sale of FVOCI investments
Interest received
Investment income received from FVOCI investments (net of withholding tax paid)
Withholding tax paid on intra-group interest income

(2,036.6)
(350.0)
(761.8)
-
(4.2)
(85.2)
-
(3.0)
-
6.9
145.8
30.8
6.8
147.7
(18.0)

(1,718.1)
(216.7)
(2.3)
(123.1)
(5.8)
(436.9)
15.4
-
(16.1)
14.8
160.9
14.8
7.0
0.3
(22.7)

Net cash used in investing activities

(2,920.8)

(2,328.5)

The accompanying notes on pages 161 to 259 form an integral part of these financial statements.
Independent Auditors’ Report – pages 144 to 151.

159

Consolidated Statement of Cash FlowsFor the financial year ended 31 March 2020Cash Flows From Financing Activities

Proceeds from term loans
Repayment of term loans
Proceeds from bond issue
Repayment of bonds
Increase in finance lease liabilites
Lease payments
Net proceeds from borrowings
Final dividend paid to shareholders of the Company
Interim dividend paid to shareholders of the Company
Net interest paid on borrowings and swaps
Settlement of swaps for bonds repaid
Purchase of performance shares
Dividend paid to non-controlling interests
Others

Note

2020
S$ Mil

2019
S$ Mil

5,684.6
(5,667.9)
1,803.7
(690.3)
-
(403.9)
726.2
(1,746.7)
(1,110.0)
(463.3)
173.9
(23.0)
(5.2)
1.3

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

Net cash used in financing activities

(2,446.8)

(3,055.5)

Net change in cash and cash equivalents
Exchange effects on cash and cash equivalents
Cash and cash equivalents at beginning of year

449.7
37.2
512.7

Cash and cash equivalents at end of year

999.6

(16.4)
4.2
524.9

512.7

Note 1:

Investment in joint venture

In the current financial year, Singtel paid S$735 million for subscription to Bharti Airtel Limited’s rights issue based on its
rights entitlement for its direct stake of 15%.

Note 2: Payment for acquisition of intangibles and other assets

In the previous financial year, Singtel’s wholly-owned subsidiary, Amobee Inc., acquired the technology platform,
intellectual property and certain other assets of Videology, Inc. and its subsidiaries for S$123 million (US$90 million).

Note 3: Payment for acquisition of subsidiary

In the current financial year, deferred payment of S$4.2 million was made in respect of the acquisition of Hivint Pty
Limited (“Hivint”).

In the previous financial year, Singtel’s wholly-owned subsidiary, Optus Cyber Security Pty Limited, completed the
acquisition of 100% shares in Hivint, a cyber security consulting company in Australia, for S$17 million (A$17 million) of
which S$5.8 million was paid.

Note 4: Payment for acquisition of FVOCI investments

In the previous financial year, a payment of S$344 million (US$250 million) was made for Singtel’s acquisition of 5.7%
equity interest in Airtel Africa Limited.

The accompanying notes on pages 161 to 259 form an integral part of these financial statements.
Independent Auditors’ Report – pages 144 to 151.

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Consolidated Statement of Cash FlowsFor the financial year ended 31 March 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSSingapore Telecommunications Limited | Annual Report 2020

These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

GENERAL

Singtel is domiciled and incorporated in Singapore and is publicly traded on the Singapore Exchange Limited. 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 46.

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 27
May 2020.

SIGNIFICANT ACCOUNTING POLICIES

2.1

Basis of Accounting

The financial statements are prepared in accordance with Singapore Financial Reporting Standards (International)
(“SFRS(I)”) including related interpretations, and the provisions of the Singapore Companies Act. They have been
prepared under the historical cost basis, except as disclosed in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

The preparation of financial statements in conformity with 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.

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.

161

Notes to the Financial StatementsFor the financial year ended 31 March 2020

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.2

Changes in significant accounting policies

The accounting policies have been consistently applied by the Group, and are consistent with those used in the previous
financial year. Other than SFRS(I) 16 Leases, the adoption of the new or revised SFRS(I)s and Interpretations to SFRS(I)
(“INT SFRS(I)”) which were mandatory from 1 April 2019 had no significant impact on the financial statements of the
Group or the Company in the current financial year.

The Group has adopted SFRS(I) 16 on a mandatory basis from 1 April 2019. The new policies for leases are described in
Note 2.25. The Group has applied SFRS(I) 16 using the modified retrospective approach where the cumulative effects of
initial application are recognised in the opening statement of financial position as at 1 April 2019, with no restatement
of comparative information. The Group has elected to account for short term leases and leases of low-value assets as
operating expenses on a straight-line basis. The right-of-use assets are measured at the carrying amounts discounted
from the commencement date or amounts of the lease liabilities on adoption (adjusted for any prepaid or accrued lease
expenses).

In applying SFRS(I) 16 for the first time, the Group has used the following practical expedients:

(a)

The use of single discount rate to a portfolio of leases with reasonably similar characteristics.

(b)

The exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application.

(c)

On transition to SFRS(I) 16, the Group elected to apply the practical expedient to grandfather the assessment of
which transactions are leases. The Group applied SFRS(I) 16 only to contracts that were previously identified as
leases. Contracts that were not identified as leases under SFRS (I) 1-17 and SFRS(I) INT 4 were not reassessed for
whether there is a lease under SFRS(I) 16. Therefore, the definition of a lease under SFRS(I) 16 was applied only to
contracts entered into or changed on or after 1 April 2019.

When measuring lease liabilities for leases that were classified as operating leases, the Group discounted lease payments
using the applicable incremental borrowing rates at 1 April 2019. The weighted average rate applied was 2.9%.

As at 1 April 2019, right-of-use assets and lease liabilities recorded under SFRS(I) 16 were S$2.23 billion and S$2.39 billion
respectively. The undiscounted commitments for operating leases disclosed as at 31 March 2019 was S$3.42 billion. The
differences are mainly due to discounting and the reassessment of renewal periods for lease contracts for which the
Group is reasonably certain to exercise.

2.3

Foreign Currencies

2.3.1 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.

162

Notes to the Financial StatementsFor the financial year ended 31 March 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSSingapore Telecommunications Limited | Annual Report 2020

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.3.2 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.

2.3.3 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.

2.3.4 Translation of goodwill and fair value adjustments

Goodwill and fair value adjustments arising on the acquisition of foreign entities completed on or after 1 April 2005 are
treated as assets and liabilities of the foreign entities and are recorded in the functional currencies of the foreign entities
and translated at the exchange rates prevailing at the end of the reporting period. However, for acquisitions of foreign
entities completed prior to 1 April 2005, goodwill and fair value adjustments continue to be recorded at the exchange
rates at the respective dates of the acquisitions.

2.3.5 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 2.3.3.

2.4

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.

163

Notes to the Financial StatementsFor the financial year ended 31 March 2020

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.5

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 2.24). 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.

2.6

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.

2.7

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.

2.8

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.

2.9

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.

164

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.10 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.

2.11

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.

2.12 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.

2.13 Group Accounting

The accounting policy for investments in subsidiaries, associates and joint ventures in the Company’s financial statements
is stated in Note 2.14. The Group’s accounting policy on goodwill is stated in Note 2.20.1.

2.13.1 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.

2.13.2 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.

165

Notes to the Financial StatementsFor the financial year ended 31 March 2020

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.13.2 Associates (Cont’d)

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.

2.13.3 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.

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.

166

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.13.3 Joint ventures (Cont’d)

The Group’s interest in its unincorporated joint operations is accounted for by recognising the Group’s share of 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.

2.13.4 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.

2.13.5 Structured entity

The Trust has been consolidated in the consolidated financial statements under SFRS(I) 10, Consolidated Financial
Statements.

2.13.6 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.

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.

167

Notes to the Financial StatementsFor the financial year ended 31 March 2020

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.13.6 Business combinations (Cont’d)

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.

2.14

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.

2.15

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.

2.16 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.

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.

168

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.16.1 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)

the effect of credit risk does not dominate the fair value changes that result from that economic relationship; and

(iii)

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.

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.

169

Notes to the Financial StatementsFor the financial year ended 31 March 2020

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.16.1 Hedge accounting (Cont’d)

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.

2.17

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.

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.

170

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.18

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.

2.19 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. 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 motor vehicles, office equipment, and furniture and fittings.

No depreciation is provided on freehold land, long-term leasehold land with a remaining lease period of more than 100
years and capital work-in-progress. Leasehold land with a remaining lease period of 100 years or less is depreciated in
equal instalments over its remaining lease period.

In respect of capital work-in-progress, assets are depreciated from the month the asset is completed and ready for use.

Costs 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.

171

Notes to the Financial StatementsFor the financial year ended 31 March 2020

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.20

Intangible Assets

2.20.1 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.

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 2.21). The accumulated amortisation for goodwill as at 1 April 2004 had been eliminated with a
corresponding decrease in the capitalised goodwill.

When there is negative 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.

2.20.2 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.

172

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.21

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 2.20.1).

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 of disposal 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.

2.22 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.

2.23 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.

2.24 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).

173

Notes to the Financial StatementsFor the financial year ended 31 March 2020

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.24 Revenue Recognition (Cont’d)

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 2.8) 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.

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.

174

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.24 Revenue Recognition (Cont’d)

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 2.25.2.

2.25

Leases

The Group has applied SFRS(I) 16 using the modified retrospective approach and accordingly, the comparative
information has not been restated and continues to be reported under SFRS(I) 1-17 Leases, and related interpretations.
The details of the changes in accounting policies are disclosed below.

2.25.1 Lessee accounting

The Group is a lessee mainly for central offices, data centres, corporate offices, retail stores, network equipment, ducts
and manholes.

From 1 April 2019

The Group implements a single accounting model where lessees recognise right-of-use assets and liabilities for all
leases. The Group accounts for short term leases, i.e. leases with terms of 12 months or less, as well as low-valued assets
as operating expenses in the income statement over the lease term.

A right-of-use asset and a lease liability are recognised at commencement date of the contract for all leases conveying
the right to control the use of identified assets for a period of time. The commencement date is the date on which a lessor
makes an underlying asset available for use by a lessee.

Renewal and termination options exercisable by the Group are included in lease terms across the Group if the Group is
reasonably certain that they are to be extended (or not terminated).

After the commencement date, the right-of-use assets are measured at cost less any accumulated depreciation and any
accumulated impairment losses and adjusted for any re-measurement of the lease liability.

Depreciation is calculated using the straight-line method over the shorter of the asset’s useful life or the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at that date. The lease
payments are discounted using the Group’s incremental borrowing rate or the rate implicit in the lease.

After the commencement date, the Group measures the lease liability by:
- increasing the carrying amount to reflect interest on the lease liability,
- reducing the carrying amount to reflect lease payments made, and
- re-measuring the carrying amount to reflect any reassessment or lease modifications.

Before 1 April 2019

Operating leases are leases where substantially all the risks and rewards of ownership are not transferred to the Group.
Operating lease payments are recognised as operating expenses in the income statement on a straight-line basis over
the lease term.

175

Notes to the Financial StatementsFor the financial year ended 31 March 2020

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.25.1 Lessee accounting (Cont’d)

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.

2.25.2 Lessor accounting

The Group is a lessor mainly for data centres, ducts and fibres, as well as handsets.

Operating leases are leases where the Group retains substantially all the risks and rewards of ownership of the assets.
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 are leases of assets where substantially all the risks and rewards incidental to ownership of the assets
are transferred by the Group to the lessees. 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.

2.25.3 Intermediate lessor

The Group as an intermediate lessor accounts for a head lease and a sublease as two separate contracts. The sublease
transaction is accounted as either finance lease or operating lease by reference to the right-of-use asset arising from the
head lease. Leasing transactions with customers are accounted as operating or finance leases by reference to the head
lease.

2.25.4 Sales of network capacity

Sales of network capacity are accounted as finance leases where -

(i)
(ii)
(iii)
(iv)
(v)

the purchaser’s right of use is exclusive and irrevocable;
the asset is specific and separable;
the terms of the contract are for the major part of the asset’s economic useful life;
the attributable costs or carrying value can be measured reliably; and
no significant risks are retained by the Group.

Sales of network capacity that do not meet the above criteria are accounted for as operating leases.

176

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.26 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.

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 5 years.

Capitalised contract costs are included in ‘Other Assets’ under non-current assets.

2.27 Employees’ Benefits

2.27.1 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.

2.27.2 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.

2.27.3 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.

177

Notes to the Financial StatementsFor the financial year ended 31 March 2020

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.28 Borrowing Costs

Borrowing costs comprise interest, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary
costs incurred in arranging the borrowings, and 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.

2.29 Pre-incorporation Expenses

Pre-incorporation expenses are expensed as incurred.

2.30 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.

2.31

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.

178

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.31

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.

2.32 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.

2.33 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.

2.34 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.

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 2.21.

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 of disposal and its value-in-use. In making this judgement, the Group evaluates the fair value less costs
of disposal or 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.

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.

179

Notes to the Financial StatementsFor the financial year ended 31 March 2020

CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS (Cont’d)

3.1

Impairment Reviews (Cont’d)

The assumptions used by management to determine the fair value less costs of disposal and value-in-use calculations
of goodwill on acquisition of subsidiaries are disclosed in Note 25. The carrying values of joint ventures and associates
including goodwill capitalised are stated in Note 23 and Note 24 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 42(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.

180

CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS (Cont’d)

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 on 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 the 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 2020, the Group was involved in various
legal proceedings where it has been vigorously defending its claims as disclosed in Note 42. 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 43.

3.8

Revenue Recognition

The accounting policies for revenue recognition are stated in Note 2.24.

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.

3.9

Leases

The application of SFRS(I) 16 requires the Group to exercise judgement and estimates in applying transition options and
practical expedients, and in the determination of key assumptions used in measuring the lease liabilities. Key assumptions
include lease terms and discount rates on the lease payments.

181

Notes to the Financial StatementsFor the financial year ended 31 March 2020

CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS (Cont’d)

3.9

Leases (Cont’d)

In determining the lease term, the Group considers all relevant facts and circumstances that create an economic incentive
for the Group to exercise an extension option, or not to exercise a termination option. Extension options (or periods after
termination options) are only included in the lease term if the Group is reasonably certain to exercise an option to extend
the lease, or not to exercise an option to terminate the lease.

The lease payments are discounted using the rate implicit in the lease or the Group’s incremental borrowing rate. This
requires the Group to estimate the rate of interest that it would have to pay to borrow the funds to obtain a similar asset
over a similar term.

Changes in these assumptions may significantly impact the measurement of the lease liabilities.

The accounting policies for leases are stated in Note 2.25. The effects of the implementation of SFRS(I) 16 have been
disclosed in Note 2.2.

OPERATING REVENUE

Mobile service(1)
Sale of equipment
Handset operating lease income(2)
Mobile
Data and Internet
Managed services
Cyber security
Business application services
Communication engineering
Infocomm Technology (“ICT”)(3)
Digital businesses(4)
Fixed voice
Pay television
Others(5)

Operating revenue

Operating revenue
Other income
Interest and investment income (see Note 10)

Total

2020

S$ Mil

4,854.5
2,567.5
200.4
7,622.4
3,611.9
1,777.1
565.8
564.1
145.4
3,052.4
1,168.6
705.2
313.5
68.3

Group

2019

S$ Mil

5,395.7
2,864.8
140.5
8,401.0
3,352.8
1,880.8
548.7
485.1
119.0
3,033.6
1,245.3
899.0
372.7
67.3

16,542.3

17,371.7

16,542.3
178.8
180.0

17,371.7
224.7
38.1

16,901.1

17,634.5

182

OPERATING REVENUE (Cont’d)

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) Comprises revenue from lease of handsets to mobile customers. Handset leasing plans in Australia ceased from July 2019.
(3)
(4) Mainly from provisions of digital marketing and advertising services.
(5)

Includes energy reselling fees.

As at 31 March 2020, the transaction price attributable to unsatisfied performance obligations for ICT services rendered
by NCS Pte. Ltd. was approximately S$3 billion (31 March 2019: S$3 billion) which would substantially be recognised as
operating revenue over the next 5 years.

Service contracts with consumers typically range from a month to 3 years, and contracts with enterprises typically range
from 1 to 3 years.

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 for the previous financial year.

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

183

2020

S$ Mil

3,060.9
2,622.3
2,426.1
2,087.0
1,593.3
390.1

Group

2019

S$ Mil

3,106.1
2,757.0
2,590.0
2,490.0
1,573.4
388.0

12,179.7

12,904.5

Group

2020

S$ Mil

2019

S$ Mil

203.6

225.1

31.5
7.5

38.0
3.3

Notes to the Financial StatementsFor the financial year ended 31 March 2020

OPERATING EXPENSES (Cont’d)

5.2

Key Management Personnel Compensation

Key management personnel compensation(1)
Executive director(2)
Other key management personnel(3)

Directors’ remuneration(4)

2020

S$ Mil

3.1
13.0

16.1
3.0

19.1

Group

2019

S$ Mil

3.5
15.9

19.4
2.7

22.1

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 1,062,602 (2019: 1,030,168) 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 expense computed in accordance with SFRS(I) 2,
Share-based Payment, was S$1.6 million (2019: S$1.5 million).
The other key management personnel of the Group comprise the Chief Executive Officers of Consumer Singapore, Group Enterprise, Group Digital Life, International Group, and
Group Strategy and Business Development (formerly the Chief Executive Officer of Consumer Australia), 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 3,612,224 (2019: 3,537,119) 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 expense computed in accordance with SFRS(I) 2 was S$6.2 million (2019: S$6.1
million).

(3)

(4) Directors’ remuneration comprises the following:

(i) Directors’ fees of S$3.0 million (2019: S$2.7 million), including fees paid to certain directors in their capacities as members of the Optus Advisory Committee and the

Technology Advisory Panel, and as directors of Singtel Innov8 Pte. Ltd. and Amobee, Inc.

(ii) Car-related benefits of the Chairman of S$37,679 (2019: S$24,557).
In addition to the Directors’ remuneration, Venkataraman Vishnampet Ganesan, a non-executive director of Singtel, was awarded 831,087 of share options pursuant to the
Amobee Long-Term Incentive Plan in 2019. The share option expense computed in accordance with SFRS(I) 2 was S$68,585 (2019: S$104,278).

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 granted 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 and three 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.

184

OPERATING EXPENSES (Cont’d)

5.3.1 Performance share plans (Cont’d)

Additionally, early vesting of the performance shares can also occur under special circumstances as approved by the
Executive Resource and Compensation Committee such as retirement, redundancy, illness and death while in employment.

Though the performance shares are awarded by Singtel, the respective subsidiaries bear all costs and expenses in any
way arising out of, or connected with, the grant and vesting of the awards to their employees.

The fair values of the performance shares are estimated using a Monte-Carlo simulation methodology at the measurement
dates, which are the grant value dates for equity-settled awards, and at the end of the reporting period for cash-settled
awards.

Restricted Share Awards

The movements of the number of performance shares for the Restricted Share Awards during the financial year were as
follows –

Group and Company
2020

Date of grant

FY2017(1)
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

FY2020
20 June 2019
September 2019 to March 2020

Outstanding
as at
1 April
2019
‘000

Awarded
from targets
exceeded
‘000

Granted
‘000

Vested
‘000

Cancelled
‘000

Outstanding
as at
31 March
2020
‘000

3,052
14

6,618
234

8,820
306

-
-

8,556
223

-
-

(3,013)
(14)

(39)
-

-
-

1,053
23

(3,879)
(82)

(229)
(132)

3,563
43

-
-

(106)
-

(11)
-

(873)
(18)

(767)
-

7,841
288

7,778
223

19,044

8,779

1,076

(7,105)

(2,058)

19,736

Note:
(1)

“FY2017” denotes financial year ended 31 March 2017.

185

Notes to the Financial StatementsFor the financial year ended 31 March 2020

OPERATING EXPENSES (Cont’d)

5.3.1 Performance share plans (Cont’d)

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

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)
-

3,052
14

-
-

(201)
-

(17)
-

(474)
(80)

6,618
234

(692)
-

8,820
306

14,745

9,835

1,756

(5,819)

(1,473)

19,044

186

OPERATING EXPENSES (Cont’d)

5.3.1 Performance share plans (Cont’d)

The fair values of the Restricted Share Awards and the assumptions of the fair value model for the grants were as
follows –

Equity-settled

19 June 2017

Date of grant
19 June 2018

20 June 2019

Fair value at grant date

S$3.34

S$2.85

Assumptions under Monte-Carlo Model
Expected volatility
Singtel
MSCI Asia Pacific Telco Component Stocks

14.3%
36 months historical
volatility preceding
May 2017

14.6%
36 months historical
volatility preceding
May 2018

11.8%
36 months historical
volatility preceding
May 2019

Risk free interest rates
Yield of Singapore Government Securities on

7 June 2017

7 June 2018

6 June 2019

Cash-settled
2020

19 June 2017

Date of grant
19 June 2018

20 June 2019

Fair value at 31 March 2020

S$2.54

S$2.46

S$2.30

17.0%

17.0%
36 months historical volatility preceding March 2020

17.0%

31 March 2020

Assumptions under Monte-Carlo Model
Expected volatility
Singtel
MSCI Asia Pacific Telco Component Stocks

Risk free interest rates
Yield of Singapore Government Securities on

187

Notes to the Financial StatementsFor the financial year ended 31 March 2020
5.

OPERATING EXPENSES (Cont’d)

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

Risk free interest rates
Yield of Singapore Government Securities on

Performance Share Awards

12.1%

12.1%
36 months historical volatility preceding March 2019

12.1%

31 March 2019

The movements of the number of performance shares for the Performance Share Awards during the financial year were
as follows –

Group and Company
2020

Date of grant

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

FY2020
20 June 2019
September 2019 to March 2020

Outstanding
as at
1 April
2019
‘000

Granted
‘000

Cancelled
‘000

Outstanding
as at
31 March
2020
‘000

8,275
91

4,540
120

4,008
36

-
-

6,181
129

(8,275)
(91)

-
-

(54)
(103)

(163)
-

(212)
-

4,486
17

3,845
36

5,969
129

17,070

6,310

(8,898)

14,482

188

OPERATING EXPENSES (Cont’d)

5.3.1 Performance share plans (Cont’d)

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)
-

8,275
91

(189)
(36)

(163)
-

4,540
120

4,008
36

22,313

4,207

(9,450)

17,070

The fair values of the Performance Share Awards and the assumptions of the fair value model for the grants were as
follows –

Equity-settled

19 June 2017

Date of grant
19 June 2018

20 June 2019

Fair value at grant date

S$1.28

S$1.77

Assumptions under Monte-Carlo Model
Expected volatility
Singtel
MSCI Asia Pacific Telco Component Stocks

14.3%
36 months historical
volatility preceding
May 2017

14.6%
36 months historical
volatility preceding
May 2018

11.8%
36 months historical
volatility preceding
May 2019

Risk free interest rates
Yield of Singapore Government Securities on

7 June 2017

7 June 2018

6 June 2019

189

Notes to the Financial StatementsFor the financial year ended 31 March 2020

OPERATING EXPENSES (Cont’d)

5.3.1 Performance share plans (Cont’d)

Cash-settled
2020

19 June 2017

Date of grant
19 June 2018

20 June 2019

Fair value at 31 March 2020

S$1.17

S$1.54

Assumptions under Monte-Carlo Model
Expected volatility
Singtel
MSCI Asia Pacific Telco Component Stocks

Risk free interest rates
Yield of Singapore Government Securities on

17.0%

17.0%
36 months historical volatility preceding March 2020

17.0%

31 March 2020

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

Risk free interest rates
Yield of Singapore Government Securities on

5.3.2 Amobee’s share options - equity-settled arrangement

12.1%

12.1%
36 months historical volatility preceding March 2019

12.1%

31 March 2019

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.

190

OPERATING EXPENSES (Cont’d)

5.3.2 Amobee’s share options - equity-settled arrangement (Cont’d)

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
15 August 2019, 29 October 2019

For non-executive directors
14 October 2015
21 August 2018
1 October 2019

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
0.58

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
0.248 to 0.287

0.54
0.55
0.58

0.203
0.181
0.215

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 2019 to 31 March 2020,

(a)

(b)

options in respect of an aggregate of 14.7 million of ordinary shares in Amobee have been granted to the employees
and non-executive directors of Amobee and/or its subsidiaries.

73,988 ordinary shares of Amobee were issued pursuant to the exercise of options granted under the Amobee LTI
Plan.

As at 31 March 2020, options in respect of an aggregate of 84.9 million of ordinary shares in Amobee are outstanding.

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.

191

Notes to the Financial StatementsFor the financial year ended 31 March 2020

OPERATING EXPENSES (Cont’d)

5.3.3 Trustwave’s share options - equity-settled arrangement (Cont’d)

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 2019 to 31 March 2020, no options in respect of common stock in Trustwave have been granted. As at 31 March
2020, options in respect of an aggregate of 1.2 million of common stock in Trustwave 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 -

Cost of Singtel shares, net of vesting
Cash at bank

2020

S$ Mil

26.8
0.4

27.2

Group

Company

2019

S$ Mil

28.0
0.5

28.5

2020

S$ Mil

24.6
0.4

25.0

2019

S$ Mil

26.0
0.4

26.4

192

OPERATING EXPENSES (Cont’d)

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

2020
‘000

8,231
4,506
(4,736)

2019
‘000

7,613
5,504
(4,886)

Balance as at 31 March

8,001

8,231

2020
S$ Mil

28.0
14.8
(16.0)

26.8

2019
S$ Mil

29.1
17.5
(18.6)

28.0

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 2.23.

5.5 Other Operating Expense Items

Operating expenses included the following -

Auditors’ remuneration
- KPMG LLP, Singapore
- KPMG, Australia
- Other KPMG offices

Non-audit fees(1) paid to
- KPMG LLP, Singapore
- KPMG, Australia
- Other KPMG offices

Impairment of trade receivables
Allowance for inventory obsolescence
Lease expenses for short term leases (under SFRS(I) 16)

Group

2020

S$ Mil

2019

S$ Mil

2.4
1.2
1.2

0.5
0.2
0.1

191.5
1.6
27.0

2.4
1.2
1.3

0.4
0.4
0.1

121.8
1.1
-

Note:
(1)

The non-audit fees for the current financial year ended 31 March 2020 included S$0.4 million (2019: S$0.4 million) and S$0.2 million (2019: S$0.2 million) paid to KPMG LLP,
Singapore and KPMG, Australia 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.

193

Notes to the Financial StatementsFor the financial year ended 31 March 2020

OTHER INCOME

Other income included the following items -

Rental income
Net gains on disposal of property, plant and equipment
Net foreign exchange gains

DEPRECIATION AND AMORTISATION

Depreciation of property, plant and equipment
Depreciation of right-of-use assets (under SFRS(I) 16)
Amortisation of intangible assets

EXCEPTIONAL ITEMS

Exceptional gains
Gain on dilution of interest in joint ventures
Gain on disposal of property
Gain on sale and leaseback
Gain on disposal of a subsidiary
Gain on disposal of a joint venture

Exceptional losses
Impairment of goodwill of a subsidiary
Deconsolidation of subsidiary
Staff restructuring costs
Provision for contingent claims and other charges
Impairment of other intangibles

2020

S$ Mil

3.2
3.6
5.2

Group

2019

S$ Mil

3.3
5.3
3.4

2020

S$ Mil

1,825.6
403.0
351.7

Group

2019

S$ Mil

1,896.1
-
326.1

2,580.3

2,222.2

Group

2020

S$ Mil

671.6
96.6
-
-
-
768.2

(194.8)
(85.5)
(50.1)
(20.2)
(1.9)
(352.5)

415.7

2019

S$ Mil

-
105.5
42.4
19.2
0.3
167.4

-
-
(88.4)
(10.8)
-
(99.2)

68.2

194

SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES

Share of ordinary results
- joint ventures
- associates

Share of net exceptional (losses)/ gains of associates and
joint ventures (post-tax)(1)

Share of tax of ordinary results
- joint ventures
- associates

Group

2020

S$ Mil

2019

S$ Mil

1,553.5
190.8
1,744.3

1,338.2
197.7
1,535.9

(1,807.9)

301.1

(435.1)
(30.9)
(466.0)

(241.7)
(32.6)
(274.3)

(529.6)

1,562.7

Note:
(1) Comprised share of exceptional items from Airtel, Singapore Post and Intouch. The share of Airtel’s exceptional items in the current financial year included provisions made for
regulatory costs (including related penalties and interest charges as applicable) arising from (a) an adverse ruling on the definition of Adjusted Gross Revenue which forms the
basis for payment of license fee and spectrum usage charges. Airtel continues to make representations to the Indian government and the Supreme Court for reliefs; and (b) one
time spectrum charge.

195

Notes to the Financial StatementsFor the financial year ended 31 March 2020

10.

INTEREST AND INVESTMENT INCOME (NET)

Interest income from
- bank deposits
- others

Dividends from joint ventures
Gross dividends and income from FVOCI investments

Other foreign exchange gains
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

11.

FINANCE COSTS

Interest expense on
- bonds
- bank loans
- lease liabilities(1)

Financing related costs
Effects of hedging using interest rate swaps

2020

S$ Mil

6.5
1.2
7.7

10.8
148.4
166.9

11.2
1.5

(149.5)
149.9
0.4

(431.8)
431.8
-

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
-

180.0

38.1

2020

S$ Mil

309.6
51.1
81.7
442.4

16.8
2.6

Group

2019

S$ Mil

308.4
56.5
8.2
373.1

17.0
2.7

461.8

392.8

Note:
(1)

Interest expense in the previous financial year was in respect of finance lease liabilities which were reclassified to lease liabilities with the adoption of SFRS(I) 16 Leases from 1
April 2019.

196

12.

TAXATION

12.1

Tax Expense

Current income tax
- Singapore
- Overseas

Deferred tax expense

2020

S$ Mil

207.5
110.5
318.0

47.0

Group

2019

S$ Mil

223.5
223.7
447.2

36.2

Tax expense attributable to current year’s profit

365.0

483.4

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

9.5
(10.7)

149.4

513.2

5.0
12.4

174.0

674.8

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 (2019: 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
Others

2020

S$ Mil

1,565.4
529.6
2,095.0

Group

2019

S$ Mil

3,745.9
(1,562.7)
2,183.2

356.2

371.1

3.8
(159.2)
84.5
82.9
(3.2)

36.3
(29.5)
29.4
79.1
(3.0)

Tax expense attributable to current year’s profit

365.0

483.4

197

Notes to the Financial StatementsFor the financial year ended 31 March 2020

12.

TAXATION (Cont’d)

12.2 Deferred Taxes

The movements of the deferred tax assets and liabilities (prior to offsetting of balances within the same tax jurisdiction)
during the financial year were as follows -

Group - 2020
Deferred tax assets

Balance as at 1 April 2019, previously reported
Effects of adoption of SFRS(I) 16
Balance as at 1 April 2019, restated
Credited/ (Charged) to income statement
Charged to other comprehensive income
Transfer to current tax
Translation differences

Balance as at 31 March 2020

Provisions
S$ Mil

37.4
-
37.4
14.2
-
(19.1)
(2.3)

30.2

TWDV(1)
in excess of
NBV(2) of
depreciable
assets
S$ Mil

50.7
-
50.7
(26.1)
-
-
(2.7)

Others
S$ Mil

213.3
116.7
330.0
(19.0)
(0.1)
(0.1)
(9.6)

Total
S$ Mil

301.4
116.7
418.1
(30.9)
(0.1)
(19.2)
(14.6)

21.9

301.2

353.3

Group - 2020
Deferred tax liabilities

Accelerated
tax depreciation
S$ Mil

Offshore interest
and dividend
not remitted
S$ Mil

Balance as at 1 April 2019, previously reported
Effects of adoption of SFRS(I) 16
Balance as at 1 April 2019, restated
(Charged)/ Credited to income statement
Transfer (from)/ to current tax
Translation differences

Balance as at 31 March 2020

(459.9)
-
(459.9)
(23.8)
(1.2)
(0.4)

(485.3)

(5.3)
-
(5.3)
-
-
-

(5.3)

Others
S$ Mil

(74.7)
(95.8)
(170.5)
15.4
1.7
(0.6)

Total
S$ Mil

(539.9)
(95.8)
(635.7)
(8.4)
0.5
(1.0)

(154.0)

(644.6)

198

12.

TAXATION (Cont’d)

12.2 Deferred Taxes (Cont’d)

Group - 2019
Deferred tax assets

Balance as at 1 April 2018
Credited/ (Charged) to income statement
Charged to other comprehensive income
Transfer to current tax
Translation differences

TWDV(1)
in excess of
NBV(2) of
depreciable
assets
S$ Mil

Tax losses
and unutilised
capital
allowances
S$ Mil

79.2
(25.6)
-
-
(2.9)

18.4
(19.0)
-
-
0.6

Provisions
S$ Mil

43.1
2.3
-
(5.3)
(2.7)

Others
S$ Mil

234.5
(9.6)
(5.9)
-
(5.7)

Total
S$ Mil

375.2
(51.9)
(5.9)
(5.3)
(10.7)

Balance as at 31 March 2019

37.4

50.7

213.3

301.4

Group - 2019
Deferred tax liabilities

Balance as at 1 April 2018
(Charged)/ Credited to income statement
Transfer to current tax
Disposal of a subsidiary
Translation differences

Balance as at 31 March 2019

Accelerated
tax depreciation
S$ Mil

Offshore interest
and dividend
not remitted
S$ Mil

(411.9)
(47.2)
-
(0.1)
(0.7)

(459.9)

(5.2)
(0.1)
-
-
-

(5.3)

Others
S$ Mil

(140.7)
47.6
19.7
-
(1.3)

Total
S$ Mil

(557.8)
0.3
19.7
(0.1)
(2.0)

(74.7)

(539.9)

199

Notes to the Financial StatementsFor the financial year ended 31 March 2020

12.

TAXATION (Cont’d)

12.2 Deferred Taxes (Cont’d)

Company - 2020
Deferred tax assets

Balance as at 1 April 2019, previously reported
Effects of adoption of SFRS(I) 16
Balance as at 1 April 2019, restated
Charged to income statement

Balance as at 31 March 2020

Company - 2020

Deferred tax liabilities

Balance as at 1 April 2019, previously reported
Effects of adoption of SFRS(I) 16
Balance as at 1 April 2019, restated
(Charged)/ Credited to income statement

Provisions
S$ Mil

0.4
-
0.4
-

0.4

Accelerated tax
depreciation

S$ Mil

(286.8)
-
(286.8)
(22.6)

Others
S$ Mil

11.9
116.7
128.6
(6.5)

Total
S$ Mil

12.3
116.7
129.0
(6.5)

122.1

122.5

Others

S$ Mil

-
(95.8)
(95.8)
7.2

Total

S$ Mil

(286.8)
(95.8)
(382.6)
(15.4)

Balance as at 31 March 2020

(309.4)

(88.6)

(398.0)

Company - 2019
Deferred tax assets

Balance as at 1 April 2018
(Charged)/ Credited to income statement

Balance as at 31 March 2019

Company - 2019
Deferred tax liabilities

Balance as at 1 April 2018
Charged to income statement

Balance as at 31 March 2019

Notes:
(1)
(2) NBV – Net book value

TWDV – Tax written down value

Provisions
S$ Mil

0.5
(0.1)

0.4

Others
S$ Mil

10.8
1.1

11.9

Accelerated tax
depreciation
S$ Mil

(279.5)
(7.3)

Total
S$ Mil

11.3
1.0

12.3

Total
S$ Mil

(279.5)
(7.3)

(286.8)

200

12.

TAXATION (Cont’d)

12.2 Deferred Taxes (Cont’d)

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, were shown in the statements of financial position as follows –

Deferred tax assets
Deferred tax liabilities

Group

Company

31 March

2020

S$ Mil

234.2
(525.5)

2019

S$ Mil

276.6
(515.1)

2020

S$ Mil

-
(275.5)

2019

S$ Mil

-
(274.5)

(291.3)

(238.5)

(275.5)

(274.5)

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 2020, the subsidiaries of the Group had estimated unutilised income tax losses of approximately S$1.61
billion (31 March 2019: S$1.65 billion), of which S$81 million (31 March 2019: S$25 million) will expire in the next five years
and S$952 million (31 March 2019: S$960 million) will expire from 2025 to 2040.

As at 31 March 2020, the subsidiaries of the Group also had estimated unutilised investment allowances of S$43 million
(31 March 2019: S$46 million) and unutilised capital tax losses of S$57 million (31 March 2019: S$69 million). There were
no unabsorbed capital allowances as at 31 March 2020 (31 March 2019: S$19 million).

These unutilised income tax losses and investment allowances, and unabsorbed capital allowances are available for set-
off against future taxable profits, subject to the agreement of the relevant tax authorities and compliance with certain
provisions of the income tax regulations of the respective countries in which the subsidiaries operate. The unutilised
capital tax losses are available for set-off against future capital gains of a similar nature subject to compliance with
certain statutory tests in Australia.

As at the end of the reporting period, the potential tax benefits arising from the following items were not recognised in
the financial statements due to uncertainty on their recoverability –

Unutilised income tax losses and investment allowances,
and unabsorbed capital allowances
Unutilised capital tax losses

Group

2020

S$ Mil

2019

S$ Mil

1,653.8
56.5

1,711.8
69.3

201

Notes to the Financial StatementsFor the financial year ended 31 March 2020

13.

EARNINGS PER SHARE

Group

2020

‘000

2019

‘000

Weighted average number of ordinary shares in issue for calculation of basic
earnings per share(1)
Adjustment for dilutive effects of performance share plans

16,322,412
26,816

16,322,339
19,963

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.

16,349,228

16,342,302

‘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.

202

14.

RELATED PARTY TRANSACTIONS

In addition to the related party information disclosed elsewhere in the financial statements, the Group had the following
significant transactions and balances with related parties –

Income
Subsidiaries of ultimate holding company
Telecommunications
Rental and maintenance

Associates
Telecommunications

Joint ventures
Telecommunications

Expenses
Subsidiaries of ultimate holding company
Telecommunications
Utilities
Depreciation of right-of-use assets (under SFRS(I) 16)
Interest expense on lease liabilities (under SFRS(I) 16)

Associates
Telecommunications
Postal
Maintenance

Joint ventures
Telecommunications
Transmission capacity

Others
Subsidiaries of ultimate holding company
Right-of-use assets (under SFRS(I) 16)
Lease liabilities (under SFRS(I) 16)

Associates
Sale and leaseback gain from associate
Proceeds from sale of property, plant and equipment

Due from subsidiaries of ultimate holding company

Due to subsidiaries of ultimate holding company

Group

2020
S$ Mil

2019
S$ Mil

86.8
30.2

100.3
28.8

5.7

8.8

38.1

48.3

40.8
89.8
34.5
10.2

130.7
6.7
8.0

9.7
7.9

201.2
278.4

-
-

18.3

10.7

35.2
80.9
-
-

149.3
7.8
6.5

32.8
7.5

-
-

42.4
2.4

37.1

11.0

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.

203

Notes to the Financial StatementsFor the financial year ended 31 March 2020

15.

CASH AND CASH EQUIVALENTS

Fixed deposits
Cash and bank balances

Group

Company

31 March
2020

S$ Mil

152.0
847.6

999.6

31 March
2019

S$ Mil

153.5
359.2

512.7

31 March
2020

S$ Mil

31 March
2019

S$ Mil

65.7
31.6

97.3

42.4
39.2

81.6

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
EUR

”*” denotes less than S$0.05 million.

The maturities of the fixed deposits were as follows -

Less than three months
Over three months

31 March
2020

S$ Mil

131.0
21.8
15.1

31 March
2020

S$ Mil

137.2
14.8

152.0

Group

Company

31 March
2019

S$ Mil

106.5
22.3
4.1

31 March
2020

S$ Mil

69.8
1.8
5.7

31 March
2019

S$ Mil

44.8
*
0.5

Group

Company

31 March
2019

S$ Mil

142.9
10.6

153.5

31 March
2020

S$ Mil

31 March
2019

S$ Mil

65.7
-

65.7

42.4
-

42.4

As at 31 March 2020, the weighted average effective interest rate of the fixed deposits of the Group and the Company
were 0.8% (31 March 2019: 2.1%) per annum and 0.5% (31 March 2019: 2.2%) per annum respectively.

The exposure of cash and cash equivalents to interest rate risks is disclosed in Note 37.3.

204

16.

TRADE AND OTHER RECEIVABLES

Current

Trade receivables
Contract assets

Less: Allowance for ECL

Group

Company

31 March
2020
S$ Mil

2,126.2
2,555.6
4,681.8
(310.8)
4,371.0

31 March
2019
S$ Mil

2,341.3
2,591.0
4,932.3
(259.7)
4,672.6

31 March
2020
S$ Mil

31 March
2019
S$ Mil

423.1
16.9
440.0
(93.5)
346.5

422.2
22.0
444.2
(94.3)
349.9

Other receivables

399.7

421.9

34.3

22.8

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

“ECL” denotes expected credit loss.

-
-
-

-
-
-
-

17.2
142.3
159.5

545.8
66.0
17.4

-
-
-

-
-
-
-

30.3
98.9
129.2

685.0
70.3
13.7

116.1
-
116.1

879.1
691.3
(70.1)
1,500.3

1.7
2.4
4.1

46.5
17.5
-

122.4
(9.3)
113.1

828.8
585.6
(45.4)
1,369.0

1.3
2.0
3.3

73.5
29.3
-

5,559.4

5,992.7

2,065.3

1,960.9

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 2020, the effective interest rate of an amount due from a subsidiary of S$387.1 million (31 March 2019:
S$331.0 million) was 0.004% (31 March 2019: 0.33%) per annum. The loans to subsidiaries and amounts due from other
subsidiaries, associates and joint ventures were unsecured, interest-free and repayable on demand.

205

Notes to the Financial StatementsFor the financial year ended 31 March 2020

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

Group

Company

31 March
2020

S$ Mil

4,189.7
144.2
347.9

31 March
2019

S$ Mil

4,393.5
173.2
365.6

31 March
2020

S$ Mil

31 March
2019

S$ Mil

292.3
38.9
108.8

297.1
61.2
85.9

4,681.8

4,932.3

440.0

444.2

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

2020

S$ Mil

259.7
-
203.8
(120.9)
(12.3)
(19.5)

2019

S$ Mil

263.8
0.9
146.4
(120.3)
(24.6)
(6.5)

2020

S$ Mil

94.3
-
27.0
(26.9)
(0.9)
-

2019

S$ Mil

96.4
-
30.5
(26.6)
(6.0)
-

Balance as at 31 March

310.8

259.7

93.5

94.3

The maximum exposure to credit risk for trade receivables and contract assets were as follows -

Individuals
Corporations and others

Group

Company

31 March
2020

S$ Mil

2,195.9
2,175.1

31 March
2019

S$ Mil

2,269.4
2,403.2

31 March
2020

S$ Mil

114.5
232.0

31 March
2019

S$ Mil

131.8
218.1

4,371.0

4,672.6

346.5

349.9

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.

206

17.

INVENTORIES

Equipment held for resale
Maintenance and capital works’ inventories

18.

DERIVATIVE FINANCIAL INSTRUMENTS

Balance as at 1 April
Fair value gains
- included in income statement
- included in ‘Hedging Reserve’
Settlement of swaps for bonds repaid
Translation differences

Group

Company

31 March
2020

S$ Mil

251.9
27.7

31 March
2019

S$ Mil

379.1
38.5

279.6

417.6

31 March
2020

S$ Mil

31 March
2019

S$ Mil

0.2
26.1

26.3

0.1
37.1

37.2

Group

2020

S$ Mil

2019

S$ Mil

Company

2020

S$ Mil

2019

S$ Mil

280.0

64.6

(65.7)

(135.1)

585.8
60.8
(173.9)
(34.9)

163.5
59.6
6.2
(13.9)

155.6
4.5
-
-

50.1
19.3
-
-

Balance as at 31 March

717.8

280.0

94.4

(65.7)

Group

Company

31 March
2020

S$ Mil

31 March
2019

S$ Mil

31 March
2020

S$ Mil

31 March
2019

S$ Mil

337.2
517.5
(14.0)
(122.9)

155.1
283.6
(9.2)
(149.5)

5.3
134.2
-
(45.1)

0.7
125.9
(0.5)
(191.8)

717.8

280.0

94.4

(65.7)

Disclosed as -
Current asset
Non-current asset
Current liability
Non-current liability

207

Notes to the Financial StatementsFor the financial year ended 31 March 2020

18.

DERIVATIVE FINANCIAL INSTRUMENTS (Cont’d)

18.1

Fair Values

The fair values of the currency and interest rate swap contracts exclude accrued interest of S$10.6 million (31 March 2019:
S$16.3 million). The accrued interest is separately disclosed in Note 16 and Note 28.

The fair values of the derivative financial instruments were as follows –

2020

Fair value and cash flow hedges
Cross currency swaps
Interest rate swaps
Forward foreign exchange contracts

Disclosed as -
Current
Non-current

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

792.9
17.9
43.9

15.4
121.5
-

123.2
-
16.3

854.7

136.9

139.5

337.2
517.5

14.0
122.9

854.7

136.9

5.3
134.2

139.5

15.4
29.7
-

45.1

-
45.1

45.1

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

60.2
8.9
1.0

104.7
17.5
0.1

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

208

18.

DERIVATIVE FINANCIAL INSTRUMENTS (Cont’d)

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
2021, 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 29.

As at 31 March 2020, the details of the outstanding derivative financial instruments were as follows -

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)

Group

Company

31 March

2020

2019

2020

2019

3,832.4
1.6% - 5.4%
0.2% - 1.9%

2,557.4
2.0% - 6.2%
1.8% - 3.6%

703.4
1.9% - 3.9%
-

2,663.4
2.0% - 4.5%
1.8% - 3.6%

5,891.5
2.6% - 7.5%
1.3% - 3.5%

4,600.2
2.6% - 7.5%
2.3% - 4.0%

712.7
5.2%
3.0% - 3.5%

5,014.4
2.4% - 5.2%
2.3% - 4.0%

604.6

705.7

242.2

306.3

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 into by the Company are re-priced every six months.

209

Notes to the Financial StatementsFor the financial year ended 31 March 2020

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211

Notes to the Financial StatementsFor the financial year ended 31 March 2020

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213

Notes to the Financial StatementsFor the financial year ended 31 March 2020

19.

PROPERTY, PLANT AND EQUIPMENT (Cont’d)

Property, plant and equipment included the following -

Group

Company

31 March
2020

S$ Mil

31 March
2019

S$ Mil

31 March
2020

S$ Mil

31 March
2019

S$ Mil

Net book value of property, plant and equipment

Staff costs capitalised

200.2

188.3

31.4

25.9

20.

RIGHT-OF-USE ASSETS

Group - 2020

Cost
Balance as at 1 April 2019
Additions (net of rebates)
Disposals/ Write-offs
Reclassifications/ Adjustments
Translation differences

Mobile base
stations/
Central offices
S$ Mil

Other
properties
S$ Mil

Equipment
S$ Mil

Others
S$ Mil

Total
S$ Mil

1,518.3
112.3
(2.4)
6.0
(138.1)

577.1
62.8
(81.5)
244.4
(4.1)

458.3
41.7
-
26.3
2.1

9.4
2.0
-
-
(1.0)

2,563.1
218.8
(83.9)
276.7
(141.1)

Balance as at 31 March 2020

1,496.1

798.7

528.4

10.4

2,833.6

Accumulated depreciation
Balance as at 1 April 2019
Depreciation charge for the year
Disposals/ Write-offs
Reclassifications/ Adjustments
Translation differences

-
267.2
-
3.0
(16.0)

191.4
81.0
(22.7)
70.7
(0.9)

139.2
50.6
-
5.1
0.5

Balance as at 31 March 2020

254.2

319.5

195.4

Net Book Value as at 31 March 2020

1,241.9

479.2

333.0

-
4.2
-
-
(0.2)

4.0

6.4

330.6
403.0
(22.7)
78.8
(16.6)

773.1

2,060.5

214

20.

RIGHT-OF-USE ASSETS (Cont’d)

Company - 2020

Cost
Balance as at 1 April 2019
Additions (net of rebates)
Disposals/ Write-offs
Reclassifications/ Adjustments

Central offices
S$ Mil

Other
properties
S$ Mil

Equipment
S$ Mil

Others
S$ Mil

Total
S$ Mil

12.9
-
-
6.0

426.2
3.4
(81.5)
223.4

454.2
11.5
-
-

0.5
-
-
-

893.8
14.9
(81.5)
229.4

Balance as at 31 March 2020

18.9

571.5

465.7

0.5

1,056.6

Accumulated depreciation
Balance as at 1 April 2019
Depreciation charge for the year
Disposals/ Write-offs
Reclassifications/ Adjustments

Balance as at 31 March 2020

Net book value as at 31 March 2020

21.

INTANGIBLE ASSETS

-
6.4
-
3.0

9.4

9.5

191.4
13.2
(22.7)
61.7

139.2
40.7
-
-

243.6

179.9

327.9

285.8

-
0.2
-
-

0.2

0.3

330.6
60.5
(22.7)
64.7

433.1

623.5

Goodwill on acquisition of subsidiaries
Telecommunications and spectrum licences
Technology and brand
Customer relationships and others

Group

31 March
2020

S$ Mil

11,429.9
2,024.7
143.9
137.4

31 March
2019

S$ Mil

11,538.3
2,116.2
183.9
178.3

13,735.9

14,016.7

215

Notes to the Financial StatementsFor the financial year ended 31 March 2020

21.

INTANGIBLE ASSETS (Cont’d)

21.1 Goodwill on Acquisition of Subsidiaries

Balance as at 1 April
Acquisition of subsidiaries
Impairment charge for the year
Translation differences

Balance as at 31 March

Cost
Accumulated impairment

Net book value as at 31 March

21.2

Telecommunications and Spectrum Licences

Balance as at 1 April
Additions
Amortisation for the year
Reclassification/ Adjustment
Translation differences

Balance as at 31 March

Cost
Accumulated amortisation
Accumulated impairment

Net book value as at 31 March

Group

2020

S$ Mil

2019

S$ Mil

11,538.3
-
(194.8)
86.4

11,372.2
109.9
-
56.2

11,429.9

11,538.3

11,632.3
(202.4)

11,538.3
-

11,429.9

11,538.3

2020

S$ Mil

2,116.2
286.1
(205.9)
-
(171.7)

Group

2019

S$ Mil

2,355.5
130.2
(210.0)
(71.8)
(87.7)

2,024.7

2,116.2

3,610.0
(1,579.1)
(6.2)

3,622.9
(1,500.5)
(6.2)

2,024.7

2,116.2

216

21.

INTANGIBLE ASSETS (Cont’d)

21.3

Technology and Brand

Balance as at 1 April
Acquisition of a subsidiary
Amortisation for the year
Translation differences

Balance as at 31 March

Cost
Accumulated amortisation
Accumulated impairment

Net book value as at 31 March

21.4 Customer Relationships and Others

Balance as at 1 April
Additions
Amortisation for the year
Impairment charge for the year
Disposals
Reclassification/ Adjustment
Translation differences

Balance as at 31 March

Cost
Accumulated amortisation
Accumulated impairment

Net book value as at 31 March

217

2020

S$ Mil

183.9
-
(47.8)
7.8

Group

2019

S$ Mil

204.6
18.8
(46.5)
7.0

143.9

183.9

618.6
(382.0)
(92.7)

611.7
(334.8)
(93.0)

143.9

183.9

2020

S$ Mil

178.3
72.6
(98.0)
(1.9)
(21.7)
-
8.1

Group

2019

S$ Mil

36.8
86.6
(69.6)
-
(0.1)
125.3
(0.7)

137.4

178.3

491.6
(352.3)
(1.9)

437.1
(258.8)
-

137.4

178.3

Notes to the Financial StatementsFor the financial year ended 31 March 2020

22.

SUBSIDIARIES

Unquoted equity shares, at cost
Shareholders’ advances
Deemed investment in a subsidiary

Less: Allowance for impairment losses

Company

31 March

2020

S$ Mil

15,036.1
5,733.0
32.5
20,801.6
(1,122.4)

2019

S$ Mil

14,259.7
5,733.0
32.5
20,025.2
(16.0)

19,679.2

20,009.2

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 46.1 to Note 46.3.

218

23.

JOINT VENTURES

Quoted equity shares, at cost
Unquoted equity shares, at cost

Group

Company

31 March
2020

S$ Mil

3,533.4
5,791.5
9,324.9

31 March
2019

S$ Mil

2,798.4
5,777.9
8,576.3

31 March
2020

S$ Mil

31 March
2019

S$ Mil

-
22.8
22.8

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)

8,012.8
(4,444.1)
2,342.8

9,635.7
(4,098.2)
4,311.6

Less: Allowance for impairment losses

(30.0)

-
-
-

11,637.7

12,857.9

22.8

As at 31 March 2020,

(i)

(ii)

The market value of the quoted equity shares in joint ventures held by the Group was S$24.55 billion (31 March
2019: S$18.89 billion).

The Group’s proportionate interest in the capital commitments of joint ventures was S$2.45 billion (31 March 2019:
S$1.97 billion).

The details of joint ventures are set out in Note 46.5.

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 2019: 50%) in the assets, with access to the shared network
and shares 50% (31 March 2019: 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 amounting to S$1.08 billion (31 March 2019: S$1.10 billion).

219

Notes to the Financial StatementsFor the financial year ended 31 March 2020

23.

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 –

Group - 2020

Statement of comprehensive income
Revenue
Depreciation and amortisation
Interest income
Interest expense
Income tax credit/ (expense)

(Loss)/ Profit after tax
Other comprehensive (loss)/ income
Total comprehensive (loss)/ income

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

16,982.6
(5,371.8)
336.1
(2,701.7)
2,350.8

(5,995.8)
(230.2)
(6,226.0)

14,470.6
53,535.9
(24,837.2)
(24,135.3)
19,034.0
(4,626.2)

8,848.6
(1,893.5)
47.3
(262.4)
(811.9)

2,527.6
(40.3)
2,487.3

2,062.7
7,402.2
(2,420.5)
(2,177.3)
4,867.1
*

4,464.7
(935.4)
10.1
(178.9)
(280.5)

590.5
(44.2)
546.3

2,002.7
6,886.5
(2,529.2)
(3,996.7)
2,363.3
4.1

8,002.1
(2,233.4)
10.9
(227.0)
(257.0)

1,325.1
3.1
1,328.2

2,401.9
13,862.4
(5,450.8)
(8,002.2)
2,811.3
(5.6)

Net assets attributable to equity holders

14,407.8

4,867.1

2,367.4

2,805.7

Proportion of the Group’s ownership
Group’s share of net assets
Goodwill capitalised
Others(2)

33.3%
4,796.3
1,238.5
92.8

35.0%
1,703.5
1,403.6
-

47.0%
1,113.4
381.1
(143.6)

23.3%(1)

654.3
313.2
(17.0)

Carrying amount of the investment

6,127.6

3,107.1

1,350.9

950.5

Other items
Cash and cash equivalents
Non-current financial liabilities excluding
trade and other payables
Current financial liabilities excluding
trade and other payables

3,000.6

1,194.7

405.6

1,406.4

(23,165.3)

(1,816.4)

(3,579.9)

(3,012.8)

(6,199.9)

(474.4)

(533.7)

(1,116.2)

Group’s share of market value

15,118.3

3,377.9

6,049.1

Dividends received during the year

905.7

154.3

212.4

‘‘NA’’ denotes Not Applicable.
“*” denotes amount of less than S$0.05 million.

Notes:
(1)
(2) Others include adjustments to align the respective local accounting standards to SFRS(I).

Based on the Group’s direct equity interest in AIS.

220

23.

JOINT VENTURES (Cont’d)

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
Total comprehensive (loss)/ income

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

15,671.4
(4,141.4)
276.3
(2,123.0)
663.3

183.5
(202.3)
(18.8)

6,448.6
47,339.4
(18,236.1)
(19,113.3)
16,438.6
(2,558.1)

8,461.0
(1,265.9)
50.1
(99.3)
(816.1)

2,407.6
36.0
2,443.6

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

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)
(2) Others include adjustments to align the respective local accounting standards to SFRS(I).

Based on the Group’s direct equity interest in AIS.

221

Notes to the Financial StatementsFor the financial year ended 31 March 2020

23.

JOINT VENTURES (Cont’d)

The aggregate information of the Group’s investments in joint ventures which are not individually significant were as
follows –

Share of profit after tax
Share of other comprehensive income

Share of total comprehensive income

Aggregate carrying value

“*” denotes amount of less than S$0.05 million

24.

ASSOCIATES

Quoted equity shares, at cost
Unquoted equity shares, at cost

2020

S$ Mil

9.8
1.0

10.8

Group

2019

S$ Mil

9.3
*

9.3

101.6

84.8

Group

Company

31 March
2020

S$ Mil

1,733.4
88.7
1,822.1

31 March
2019

S$ Mil

1,733.4
79.2
1,812.6

31 March
2020

S$ Mil

31 March
2019

S$ Mil

24.7
-
24.7

Goodwill on consolidation adjusted against
shareholders’ equity
Share of post-acquisition reserves (net of
dividends, and accumulated amortisation of
goodwill)
Translation differences

29.4

79.5
179.1
288.0

135.1
138.6
303.1

Less: Allowance for impairment losses

(5.0)

Reclassification to ‘Net deferred gain’
(see Note 32)

(31.0)

(50.5)

-
-
-

2,074.1

2,060.2

24.7

As at 31 March 2020,

(i)

(ii)

The market values of the quoted equity shares in associates held by the Group and the Company were S$2.68
billion (31 March 2019: S$2.98 billion) and S$318.6 million (31 March 2019: S$494.0 million) respectively.

The Group’s proportionate interest in the capital commitments of the associates was S$257.4 million (31 March
2019: S$139.9 million).

222

24.

ASSOCIATES (Cont’d)

The details of associates are set out in Note 46.4.

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 –

Group

Statement of comprehensive income
Revenue

Profit after tax
Other comprehensive income/ (loss)
Total comprehensive income

Statement of financial position
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Less: Non-controlling interests

Net assets attributable to equity holders

Proportion of the Group’s ownership
Group’s share of net assets
Goodwill and other identifiable intangible assets
Others(1)

Carrying amount of the investment

Other items
Group’s share of market value
Dividends received during the year

Note:
(1) Others include adjustments to align the respective local accounting standards to SFRS(I).

2020

S$ Mil

200.7

468.4
5.7
474.1

712.0
1,588.6
(388.0)
(198.8)
1,713.8
(257.4)

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)

1,456.4

1,460.4

21.0%
305.9
1,465.6
(73.0)

21.0%
306.7
1,441.7
(46.8)

1,698.5

1,701.6

1,461.3
73.3

1,653.2
78.5

223

Notes to the Financial StatementsFor the financial year ended 31 March 2020

24.

ASSOCIATES (Cont’d)

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 (loss)/ income

Share of total comprehensive income

25.

IMPAIRMENT REVIEWS

Goodwill arising on acquisition of subsidiaries

2020

S$ Mil

57.7
(3.1)

54.6

Group

2019

S$ Mil

49.7
0.4

50.1

The carrying values of the Group’s goodwill on acquisition of subsidiaries as at 31 March 2020 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 is fully allocated to Consumer Australia included in the Group
Consumer segment for the purpose of goodwill impairment testing.

The recoverable values of CGUs including goodwill are assessed based on discounted cash flow models using cash flow
projections from 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 ten
years to better reflect their stages of growth. Cash flows beyond the terminal year are extrapolated using the estimated
growth rates stated in the table below. Key assumptions used in the discounted cash flow models 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.

224

25.

IMPAIRMENT REVIEWS (Cont’d)

The details are shown in the table below:

Group

Carrying value of goodwill in -

31 March
2020
S$ Mil

31 March
2019
S$ Mil

Terminal growth rate(1)
31 March
2019

31 March
2020

Pre-tax discount rate

31 March
2020

31 March
2019

Optus Group

9,259.5

9,272.2

3.0%

7.1%

8.4%

Global Cyber Security
business(2)

1,097.4

1,046.6

Amobee, Inc. (“Amobee”)

990.8

1,137.3

3.5%

3.0%

4.0%

3.0%

11.4%

13.7%

12.0%

14.3%

SCS Computer Systems Pte. Ltd.
(“SCS”)

82.2

2.0%

7.0%

7.8%

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.

As at 31 March 2020, no impairment charge was required for goodwill arising from acquisition of Optus Group, Global
Cyber Security business and SCS.

For Amobee, an impairment loss of S$195 million (2019: nil), which was fully allocated to goodwill, was recognised
during the financial year. Amobee’s recoverable value was impacted by shifts in the advertising industry spend towards
programmatic platform, leading to sustained decline in its legacy businesses. Following the impairment loss recognised
in the Amobee CGU, the recoverable amount was equal to the carrying amount.

225

Notes to the Financial StatementsFor the financial year ended 31 March 2020

26.

FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (“FVOCI”) INVESTMENTS

Group

Company

Balance as at 1 April
Additions
Disposals/ Write-offs
Net fair value (losses)/ gains included in
‘Other Comprehensive Income’
Translation differences

2020

S$ Mil

646.9
87.5
(34.5)

(184.9)
*

2019

S$ Mil

197.9
437.1
(9.6)

13.2
8.3

Balance as at 31 March

515.0

646.9

2020

S$ Mil

5.3
-
-

(1.3)
-

4.0

2019

S$ Mil

5.5
-
-

(0.2)
-

5.3

Cost
Fair value changes

”*” denotes less than S$0.05 million.

FVOCI investments included the following –

Quoted equity securities
- Africa
- Singapore
- United States of America

Unquoted
Equity securities
Others

Group

Company

31 March
2020

S$ Mil

718.5
(203.5)

515.0

31 March
2019

S$ Mil

646.5
0.4

646.9

31 March
2020

S$ Mil

31 March
2019

S$ Mil

3.3
0.7

4.0

3.3
2.0

5.3

Group

Company

31 March
2020

S$ Mil

31 March
2019

S$ Mil

31 March
2020

S$ Mil

31 March
2019

S$ Mil

150.2
4.0
4.2
158.4

334.5
22.1
356.6

515.0

-
5.3
16.6
21.9

600.8
24.2
625.0

646.9

-
4.0
-
4.0

-
-
-

-
5.3
-
5.3

-
-
-

4.0

5.3

226

27.

OTHER ASSETS

Non-current

Capitalised contract costs (net)
Prepayments
Tax recoverable from ATO(1)
Other receivables

Group

Company

31 March
2020

S$ Mil

31 March
2019

S$ Mil

31 March
2020

S$ Mil

31 March
2019

S$ Mil

319.5
129.3
117.2
74.4

273.4
157.8
128.5
84.7

*
105.7
-
-

0.1
130.6
-
-

640.4

644.4

105.7

130.7

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 42(b)).

The movements in capitalised contract costs (net) were as follows -

Group

Company

Balance as at 1 April
Contract costs incurred
Amortisation to operating expenses
Amortisation to mobile service revenue
Translation differences

2020

S$ Mil

273.4
293.8
(85.4)
(150.2)
(12.1)

2019

S$ Mil

235.0
296.4
(132.9)
(121.4)
(3.7)

Balance as at 31 March

319.5

273.4

”*” denotes less than S$0.05 million.

2020

S$ Mil

0.1
-
(0.1)
-
-

2019

S$ Mil

1.2
0.2
(1.3)
-
-

0.1

227

Notes to the Financial StatementsFor the financial year ended 31 March 2020

28.

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

Group

Company

31 March
2020
S$ Mil

4,407.1
813.7
118.6
69.2
31.6
24.5

23.3
0.1
23.4

-
-
-
152.8

31 March
2019
S$ Mil

4,455.2
844.3
132.1
111.7
54.5
33.6

47.7
0.1
47.8

-
-
-
137.9

31 March
2020
S$ Mil

31 March
2019
S$ Mil

705.7
207.4
29.4
-
4.0
17.2

14.9
-
14.9

196.2
1,201.8
1,398.0
40.5

657.2
226.0
40.3
-
26.6
19.3

21.5
-
21.5

371.9
340.4
712.3
34.3

5,640.9

5,817.1

2,417.1

1,737.5

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.

29.

BORROWINGS (UNSECURED)

Group

Company

31 March
2020
S$ Mil

31 March
2019
S$ Mil

31 March
2020
S$ Mil

31 March
2019
S$ Mil

Current
Bonds
Bank loans

Non-current
Bonds
Bank loans

2,033.4
1,554.8

678.5
1,167.7

3,588.2

1,846.2

7,323.1
1,060.9

7,267.5
1,466.9

8,384.0

8,734.4

Total unsecured borrowings

11,972.2

10,580.6

-
-

942.5
-

942.5

-
-

786.5
-

786.5

228

29.

BORROWINGS (UNSECURED) (Cont’d)

29.1 Bonds

Principal amount

US$2,850 million(1)
(31 March 2019: US$2,100 million)
US$500 million(1)
US$500 million(1)(2)

€1,200 million(1)(2)
(31 March 2019: €700 million)

A$1,150 million(2)

S$600 million(1)
S$550 million
S$150 million(2)

HK$1,000 million(2)

Classified as -
Current
Non-current

Group

Company

31 March
2020
S$ Mil

31 March
2019
S$ Mil

31 March
2020
S$ Mil

31 March
2019
S$ Mil

4,040.7
942.5
-

2,832.0
786.5
678.5

-
942.5
-

-
786.5
-

1,885.4

1,076.8

1,004.0

1,100.1

600.0
549.9
150.0

184.0

599.8
549.8
149.9

172.6

-
-
-

9,356.5

7,946.0

942.5

786.5

2,033.4
7,323.1

678.5
7,267.5

-
942.5

-
786.5

9,356.5

7,946.0

942.5

786.5

Notes:
(1)
(2)

The bonds are listed on the Singapore Exchange Limited.
The bonds, issued by Optus Group, are subject to a negative pledge that limits the amount of secured indebtedness of certain subsidiaries of Optus.

29.2 Bank Loans

Current
Non-current

229

Group

31 March
2020

S$ Mil

1,554.8
1,060.9

31 March
2019

S$ Mil

1,167.7
1,466.9

2,615.7

2,634.6

Notes to the Financial StatementsFor the financial year ended 31 March 2020

29.

BORROWINGS (UNSECURED) (Cont’d)

29.3 Maturity

The maturity periods of the non-current unsecured borrowings at the end of the reporting period were as follows -

Between 1 and 5 years
Over 5 years

29.4

Interest Rates

Group

Company

31 March
2020
S$ Mil

3,468.8
4,915.2

31 March
2019
S$ Mil

5,927.3
2,807.1

8,384.0

8,734.4

31 March
2020
S$ Mil

-
942.5

942.5

31 March
2019
S$ Mil

-
786.5

786.5

The weighted average effective interest rates at the end of the reporting period were as follows -

Bonds (fixed rate)
Bank loans (floating rate)

Group

Company

31 March
2020
%

3.4
1.1

31 March
2019
%

3.9
2.5

31 March
2020
%

7.4
-

31 March
2019
%

7.4
-

29.5 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 2020
Net-settled interest rate swaps
Cross currency interest rate swaps (gross-settled)
- Inflow
- Outflow

Borrowings

As at 31 March 2019
Net-settled interest rate swaps
Cross currency interest rate swaps (gross-settled)
- Inflow
- Outflow

Borrowings

Less than
1 year
S$ Mil

Between
1 and 5 years
S$ Mil

Over
5 years
S$ Mil

23.0

27.4

22.4

(208.0)
138.6
(46.4)
3,604.4

(550.1)
475.8
(46.9)
4,104.6

(644.0)
504.4
(117.2)
5,369.8

3,558.0

4,057.7

5,252.6

36.3

16.7

9.0

(339.4)
289.9
(13.2)
2,033.8

(878.0)
760.2
(101.1)
6,458.5

(881.4)
746.5
(125.9)
3,524.0

2,020.6

6,357.4

3,398.1

230

29.

BORROWINGS (UNSECURED) (Cont’d)

Company

As at 31 March 2020
Net-settled interest rate swaps
Cross currency interest rate swaps (gross-settled)
- Inflow
- Outflow

Borrowings

As at 31 March 2019
Net-settled interest rate swaps
Cross currency interest rate swaps (gross-settled)
- Inflow
- Outflow

Borrowings

Less than
1 year
S$ Mil

Between
1 and 5 years
S$ Mil

Over
5 years
S$ Mil

3.8

(52.6)
32.0
(16.8)
52.6

8.7

8.5

(210.3)
128.2
(73.4)
210.3

(367.9)
224.1
(135.3)
1,249.2

35.8

136.9

1,113.9

1.0

3.9

7.8

(183.6)
168.8
(13.8)
50.0

(602.8)
544.1
(54.8)
199.9

(715.0)
597.8
(109.4)
1,281.1

36.2

145.1

1,171.7

30.

BORROWINGS (SECURED)

Current
Lease liabilities

Non-current
Lease liabilities

Total secured borrowings

Group

Company

31 March
2020

S$ Mil

31 March
2019

S$ Mil

31 March
2020

S$ Mil

31 March
2019

S$ Mil

382.3

1,818.1

2,200.4

34.0

49.5

83.5

63.2

581.2

644.4

4.8

7.7

12.5

As at 31 March 2019, secured borrowings were finance lease liabilities in respect of certain assets leased from NetLink
Trust. With the adoption of SFRS(I) 16 Leases from 1 April 2019, the finance lease liabilities were reclassified to lease
liabilities. As at 31 March 2020, secured borrowings were lease liabilities in respect of right-of-use assets.

231

Notes to the Financial StatementsFor the financial year ended 31 March 2020

30.

BORROWINGS (SECURED) (Cont’d)

30.1 Maturity

The maturity periods of the non-current secured borrowings at the end of the reporting period were as follows –

Between 1 and 5 years
Over 5 years

Group

Company

31 March
2020
S$ Mil

956.4
861.7

1,818.1

31 March
2019
S$ Mil

49.5
-

49.5

31 March
2020
S$ Mil

236.6
344.6

581.2

31 March
2019
S$ Mil

7.7
-

7.7

30.2 The tables below set out the maturity profile of lease liabilities based on expected contractual undiscounted cash

flows -

Group

As at 31 March 2020
Lease liabilties

Company

As at 31 March 2020
Lease liabilties

30.3 Finance Lease Liabilities

Less than
1 year
S$ Mil

Between
1 and 5 years
S$ Mil

Over
5 years
S$ Mil

450.3

1,140.7

990.3

Less than
1 year
S$ Mil

Between
1 and 5 years
S$ Mil

Over
5 years
S$ Mil

87.2

310.8

421.9

As at 31 March 2019, the minimum lease payments under the finance lease liabilities were payable as follows -

As at 31 March 2019

Within 1 year
Between 1 and 5 years
Over 5 years

Less: Future finance charges

Group
S$ Mil

Company
S$ Mil

38.2
52.6
-
90.8

(7.3)

83.5

5.5
8.0
-
13.5

(1.0)

12.5

The weighted average effective interest rates per annum for the Group and the Company as at 31 March 2019 were 7.1%
and 7.3% respectively.

232

31.

RECONCILIATION OF LIABILITIES FROM FINANCING ACTIVITIES

Group - 2020

Bonds
S$ Mil

Bank loans
S$ Mil

Lease
liabilities
S$ Mil

Interest
payable
S$ Mil

Derivative
financial
instruments
S$ Mil

As at 1 April 2019

7,946.0

2,634.6

83.5

132.1

(280.0)

Financing cash flows(1)

1,113.4

16.7

(403.9)

(463.3)

173.9

Non-cash changes:

Fair value adjustments
Amortisation of bond discount
Foreign exchange movements
Additions of lease liabilities
Interest expense

149.6
(2.6)
150.1
-
-
297.1

-
-
(35.6)
-
-
(35.6)

-
-
(125.7)
2,646.5
-
2,520.8

-
-
*
-
449.8
449.8

(214.8)
-
(396.9)
-
-
(611.7)

As at 31 March 2020

9,356.5

2,615.7

2,200.4

118.6

(717.8)

”*” denotes less than S$0.05 million.

Group - 2019

Bonds
S$ Mil

Bank loans
S$ Mil

Finance lease
liabilities
S$ Mil

Interest
payable
S$ Mil

Derivative
financial
instruments
S$ Mil

As at 1 April 2018

7,884.9

2,501.7

104.6

137.9

(64.6)

Financing cash flows(1)

38.5

174.0

9.8

(385.1)

(6.2)

Non-cash changes:

Fair value adjustments
Amortisation of bond discount
Foreign exchange movements
Additions of finance lease liabilities
Interest expense
Adjustment

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.

233

Notes to the Financial StatementsFor the financial year ended 31 March 2020

32.

NET DEFERRED GAIN

Unamortised deferred gain
Reclassification from ‘Associates’ (see Note 24)

Net deferred gain

Classified as -
Current
Non-current

Group

31 March
2020

S$ Mil

31 March
2019

S$ Mil

425.5
(31.0)

446.3
(50.5)

394.5

395.8

20.8
373.7

20.8
375.0

394.5

395.8

NetLink Trust (“NLT”) is a business trust established as part of the Infocomm 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. With the divestment, Singtel ceased to own units in NLT but holds an interest of 24.8% in the Trust which owns all the
units in NLT.

33.

OTHER NON-CURRENT LIABILITIES

Performance share liability
Other payables

Group

Company

31 March
2020

S$ Mil

6.8
141.5

31 March
2019

S$ Mil

5.4
284.4

148.3

289.8

31 March
2020

S$ Mil

31 March
2019

S$ Mil

6.8
11.9

18.7

5.4
21.1

26.5

Other payables mainly relate to accruals of rental for certain network sites, long-term employee entitlements and asset
retirement obligations.

234

34.

SHARE CAPITAL

Group and Company

Number of shares
Mil

Share capital
S$ Mil

Balance as at 31 March 2020 and 31 March 2019

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.

Capital Management

The Group is committed to delivering sustainable dividends, 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.

35.

DIVIDENDS

Final dividend of 10.7 cents
(2019: 10.7 cents) per share, paid

Interim dividend of 6.8 cents
(2019: 6.8 cents) per share, paid

Group

Company

2020
S$ Mil

2019
S$ Mil

2020
S$ Mil

2019
S$ Mil

1,746.7

1,747.2

1,110.0

1,109.9

1,110.4

2,856.7

2,856.6

2,857.6

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 2019. 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
2020.

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 5.45 cents per share, totalling approximately
S$890 million in respect of the current financial year ended 31 March 2020 for approval at the forthcoming Annual
General Meeting.

These financial statements do not reflect the above final dividend payable of approximately S$890 million, which will be
accounted for in the ‘Shareholders’ Equity’ as an appropriation of ‘Retained Earnings’ in the next financial year ending 31
March 2021.

235

Notes to the Financial StatementsFor the financial year ended 31 March 2020

36.

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)

inputs other than quoted prices included within Level 1 which are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and

(c)

inputs for the asset or liability which are not based on observable market data (unobservable inputs) (Level 3).

36.1

Financial assets and liabilities measured at fair value

Group
31 March 2020

Financial assets

FVOCI investments (Note 26)
- Quoted equity securities
- Unquoted investments

Derivative financial instruments (Note 18)

Financial liabilities

Derivative financial instruments (Note 18)

Group
31 March 2019

Financial assets

FVOCI investments (Note 26)
- 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

158.4
-
158.4

158.4

Level 1
S$ Mil

21.9
-
21.9

21.9

-
-
-

854.7

136.9

Level 2
S$ Mil

-
-
-

438.7

-
356.6
356.6

158.4
356.6
515.0

854.7

356.6

1,369.7

Level 3
S$ Mil

-
625.0
625.0

136.9

Total
S$ Mil

21.9
625.0
646.9

438.7

625.0

1,085.6

158.7

236

36.

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES (Cont’d)

36.1

Financial assets and liabilities measured at fair value (Cont’d)

Company
31 March 2020

Financial assets

FVOCI investments (Note 26)
- Quoted equity securities

Derivative financial instruments (Note 18)

Financial liabilities

Derivative financial instruments (Note 18)

Company
31 March 2019

Financial assets

FVOCI investments (Note 26)
- Quoted equity securities

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

4.0

Level 1
S$ Mil

5.3

139.5

45.1

Level 2
S$ Mil

126.6

192.3

Level 3
S$ Mil

4.0

139.5

143.5

45.1

Total
S$ Mil

5.3

126.6

131.9

192.3

See Note 2.17 for the policies on fair value estimation of the financial assets and liabilities.

237

Notes to the Financial StatementsFor the financial year ended 31 March 2020

36.

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES (Cont’d)

36.1

Financial assets and liabilities measured at fair value (Cont’d)

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
Total gains included in ‘Fair Value Reserve’
Additions
Disposals
Transfer out from Level 3(1)
Translation differences

Balance as at 31 March

2020
S$ Mil

625.0
56.2
33.1
(18.7)
(339.1)
0.1

356.6

Group

2019
S$ Mil

187.9
4.1
437.1
(2.3)
(10.1)
8.3

625.0

Note:
(1)

Included the transfer of the Group’s direct equity investment of 5.5% in Airtel Africa Plc, which was listed on the London Stock Exchange and Nigeria Stock Exchange during the
year, to Level 1 of the fair value hierarchy.

36.2 Financial assets and liabilities not measured at fair value (but with fair value disclosed)

Carrying Value

Fair value

S$ Mil

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total
S$ Mil

As at 31 March 2020

Financial liabilities

Group
Bonds (Note 29.1)

Company
Bonds (Note 29.1)

As at 31 March 2019

Financial liabilities

Group
Bonds (Note 29.1)

Company
Bonds (Note 29.1)

9,356.5

7,848.9

1,951.0

9,799.9

942.5

1,071.7

7,946.0

6,235.4

2,013.0

8,248.4

786.5

936.4

238

36.

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES (Cont’d)

36.2 Financial assets and liabilities not measured at fair value (but with fair value disclosed) (Cont’d)

See Note 2.17 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.

37.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

37.1

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 2020, 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.

37.2 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 in Note 6
and the foreign exchange difference on non-trade balances is disclosed in Note 10.

239

Notes to the Financial StatementsFor the financial year ended 31 March 2020

37.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)

37.2 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.

37.3

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
2020, after taking into account the effect of interest rate swaps, approximately 72% (31 March 2019: 66%) of the Group’s
borrowings were at fixed rates of interest.

As at 31 March 2020, 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$15.8 million (2019: S$15.4
million).

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.

240

37.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)

37.3

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 increased by S$124.7 million (31 March 2019: 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 2020, S$2.83 billion (31 March 2019: S$2.54 billion) of borrowings were 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.

37.4 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 counterparties 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.

37.5

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.

In April 2020, the Group obtained total credit facilities of S$4.17 billion for general corporate purposes and refinancing of
existing facilities.

The maturity profile of the Group’s borrowings and related swaps based on expected contractual undiscounted cash
flows is disclosed in Note 29.5.

37.6 Market Risk

The Group has investments in quoted equity shares. The market value of these investments will fluctuate with market
conditions.

241

Notes to the Financial StatementsFor the financial year ended 31 March 2020

38.

SEGMENT INFORMATION

Segment information is presented based on the information reviewed by senior management for performance
measurement and resource allocation.

The Group is structured into three business segments, Group Consumer, Group Enterprise and Group Digital Life.

Group Consumer comprises the consumer businesses across Singapore and Australia, which focus on driving greater
value and performance from the core carriage business including mobile, pay TV, fixed broadband and voice, as well
as equipment sales. It also includes the Group’s regional investments in 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, as well
as two key digital businesses – mobile financial business, and gaming and digital content business.

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 has two key businesses – digital marketing (Amobee) as well as advanced analytics and intelligence capabilities
(DataSpark). It also serves 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.

242

38.

SEGMENT INFORMATION (Cont’d)

The Group’s reportable segments by the three business segments for the financial years ended 31 March 2020 and 31
March 2019 were as follows –

Group - 2020

Operating revenue
Operating expenses
Other income
Earnings before interest, tax, depreciation
and amortisation (“EBITDA”)

Share of pre-tax results of associates and
joint ventures
- Airtel
- Telkomsel
- Globe
- AIS
- Intouch
- Others

EBITDA and share of pre-tax results
of associates and joint ventures

Group
Consumer
S$ Mil

Group
Enterprise
S$ Mil

Group
Digital Life
S$ Mil

Corporate
S$ Mil

Group
Total
S$ Mil

9,371.0
(6,404.1)
123.5

6,025.9
(4,488.5)
49.2

1,145.4
(1,195.8)
2.2

-
(91.3)
3.9

16,542.3
(12,179.7)
178.8

3,090.4

1,586.6

(48.2)

(87.4)

4,541.4

(403.2)
1,168.9
410.2
365.0
101.0
1.3
1,643.2

-
-
-
-
-
-
-

-
-
-
-
-
99.4
99.4

(403.2)
1,168.9
410.2
365.0
101.0
100.7
1,742.6

4,733.6

1,586.6

(48.2)

12.0

6,284.0

Depreciation and amortisation

(1,755.3)

(728.7)

(91.6)

(4.7)

(2,580.3)

Earnings before interest and tax (“EBIT”)

2,978.3

857.9

(139.8)

7.3

3,703.7

Segment assets
Investment in associates and joint ventures
- Airtel
- Telkomsel
- Globe
- AIS
- Intouch
- Others

6,127.6
3,107.1
1,350.9
950.5
1,698.5
30.1
13,264.7

-
-
-
-
-
-
-

-
-
-
-
-
447.1
447.1

6,127.6
3,107.1
1,350.9
950.5
1,698.5
477.2
13,711.8

Goodwill on acquisition of subsidiaries
Other assets

9,184.5
13,588.4

1,254.6
6,302.1

990.8
1,113.8

-
2,808.9

11,429.9
23,813.2

36,037.6

7,556.7

2,104.6

3,256.0

48,954.9

243

Notes to the Financial StatementsFor the financial year ended 31 March 2020

38.

SEGMENT INFORMATION (Cont’d)

Group - 2019

Operating revenue
Operating expenses
Other income/ (expense)

Group
Consumer
S$ Mil

Group
Enterprise
S$ Mil

Group
Digital Life
S$ Mil

Corporate
S$ Mil

Group
Total
S$ Mil

9,818.6
(6,803.9)
151.6

6,329.3
(4,701.7)
67.6

1,223.8
(1,315.2)
(0.3)

-
(83.7)
5.8

17,371.7
(12,904.5)
224.7

EBITDA

3,166.3

1,695.2

(91.7)

(77.9)

4,691.9

Share of pre-tax results of associates and
joint ventures
- Airtel
- Telkomsel
- Globe
- AIS
- Intouch
- Others

EBITDA and share of pre-tax results
of associates and joint ventures

(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

4,591.5

1,695.2

(91.7)

32.8

6,227.8

Depreciation and amortisation

(1,544.5)

(614.8)

(60.3)

(2.6)

(2,222.2)

EBIT

3,047.0

1,080.4

(152.0)

30.2

4,005.6

Segment assets
Investment in associates and joint ventures
- Airtel
- Telkomsel
- Globe
- AIS
- Intouch
- Others

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

244

38.

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

2020

S$ Mil

2019

S$ Mil

3,703.7

4,005.6

(1,806.2)
(466.0)
415.7

1,847.2
180.0
(461.8)

301.1
(274.3)
68.2

4,100.6
38.1
(392.8)

1,565.4

3,745.9

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
39% (2019: 38%) and 51% (2019: 52%) of the total revenue for the financial year ended 31 March 2020, with the remaining
10% (2019: 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 2020 and 31 March
2019.

39.

OPERATING LEASE COMMITMENTS (AS A LESSOR)

The following table sets out the maturity analysis of the undiscounted lease payments to be received after the reporting
date –

Group

Company

31 March
2020

S$ Mil

31 March
2019

S$ Mil

31 March
2020

S$ Mil

31 March
2019

S$ Mil

83.4
76.8
67.9
62.4
60.4
268.2

619.1

62.0
86.1
76.5
67.3
62.3
328.4

682.6

80.5
75.0
66.8
62.4
60.4
268.2

613.3

61.7
78.8
74.5
66.4
62.2
328.4

672.0

Less than 1 year
Between 1 and 2 years
Between 2 and 3 years
Between 3 and 4 years
Between 4 and 5 years
Over 5 years

245

Notes to the Financial StatementsFor the financial year ended 31 March 2020

40.

LEASE COMMITMENTS (AS A LESSEE)

(a)

The lease commitments for short term leases (excluding contracts of one month or less) was S$22.2 million as at 31
March 2020.

(b)

The lease commitments yet to be commenced as at 31 March 2020 was S$385 million.

41.

COMMITMENTS

41.1

The commitments for capital expenditure and investments which had not been recognised in the financial statements,
excluding the commitments shown under Note 41.2 were as follows -

Group

Company

31 March
2020

S$ Mil

31 March
2019

S$ Mil

31 March
2020

S$ Mil

31 March
2019

S$ Mil

Authorised and contracted for

864.2

987.5

247.2

250.3

41.2 As at 31 March 2020, the Group’s commitments for the purchase of broadcasting programme rights were S$559 million
(31 March 2019: S$926 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.

42.

CONTINGENT LIABILITIES OF SINGTEL AND ITS SUBSIDIARIES

(a)

Guarantees

As at 31 March 2020,

(i)

(ii)

The Group and Company provided bankers’ and other guarantees, and insurance bonds of S$622.7 million
and S$202.7 million (31 March 2019: S$592.4 million and S$109.1 million) respectively.

The Company provided guarantees for loans of S$1.69 billion (31 March 2019: S$1.24 billion) drawn down
under various loan facilities entered into by Singtel Group Treasury Pte. Ltd. (“SGT”), a wholly-owned
subsidiary, with maturities between May 2020 and December 2022.

(iii)

The Company provided guarantees for SGT’s notes issue of an aggregate equivalent amount of S$5.03
billion (31 March 2019: S$3.95 billion) due between April 2020 and August 2029.

(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 of 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’s objections to the amended assessments were disallowed by the ATO on 27 September 2019. Based on legal
advice, STAI has appealed the ATO’s objection decisions in the Federal Court of Australia on 11 November 2019. 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 2020.

246

42.

CONTINGENT LIABILITIES OF SINGTEL AND ITS SUBSIDIARIES (Cont’d)

The Group has received advice from external experts in relation to this matter and will vigorously defend its
position. Accordingly, no provision has been made as at 31 March 2020.

In December 2018, Singtel Group received additional assessments amounting to S$120 million from Inland Revenue
Authority of Singapore (“IRAS”) for reduction in group relief claims in Year of Assessment 2014. In May 2020, Singtel
finalised the tax position with IRAS.

(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.

43.

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, Department of Telecommunications (“DOT”) issued a demand on Airtel Group for Rs. 52.01
billion (S$982 million) towards levy of one time spectrum charge, which was further revised on 27 June 2018 to
Rs. 84.14 billion (S$1.59 billion), excluding related interest. In the opinion of Airtel, the above demand amounts
to alteration of the terms of the licenses issued in the past. Airtel had filed a petition with the Hon’ble High Court
of Bombay, which has directed DOT not to take any coercive action until the next date of hearing. The matter is
currently pending with the Hon’ble High Court of Bombay.

On 4 July 2019, the Telecom Disputes Settlement and Appellate Tribunal (“TDSAT”) in a similar matter of another
unrelated telecom service provider, passed an order providing partial relief and confirming the basis for the balance
of the one time spectrum charge. The said telecom service provider filed an appeal in the Hon’ble Supreme Court
of India which was dismissed on 16 March 2020. With the ruling, Airtel Group assessed and provided Rs. 56.42
billion (S$1.07 billion) as an exceptional charge in its financial statements as at 31 March 2020, comprising Rs. 18.08
billion (S$0.34 billion) of principal demand and Rs. 38.35 billion (S$0.73 billion) of related interest. Notwithstanding
this, Airtel Group intends to continue to pursue its legal remedies.

Other taxes, custom duties and demands under adjudication, appeal or disputes and related interest for some
disputes as at 31 March 2020 amounted to approximately Rs. 143.2 billion (S$2.70 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 which are pending
adjudication.

CAT Telecom Public Company Limited (“CAT”) has demanded that AIS’ subsidiary, Digital Phone Company Limited
(“DPC”) pay additional revenue share of THB 3.4 billion (S$148 million) arising from the abolishment of excise tax,
as well as to transfer the telecommunications systems which would have been supplied under the Concession
Agreement between CAT and DPC of THB 13.4 billion (S$583 million) or to pay the same amount plus interest.

247

Notes to the Financial StatementsFor the financial year ended 31 March 2020

43.

SIGNIFICANT CONTINGENT LIABILITIES OF ASSOCIATES AND JOINT VENTURES (Cont’d)

TOT Public Company Limited (“TOT”) has demanded that AIS pay the following:

(a)

(b)

(c)

additional charges for porting of subscribers from 900MHz to 2100MHz network of THB 41.1 billion (S$1.78
billion) plus interest.

additional revenue share of THB 36.2 billion (S$1.57 billion) plus interest based on gross interconnection
income from 2007 to 2015.

additional revenue share of THB 62.8 billion (S$2.72 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. In January 2020, AIS received the
award from the Arbitral Tribunal to pay THB 31.1 billion (S$1.35 billion) and 1.25% interest per month after 30
November 2015. In April 2020, AIS filed a motion to the Central Administrative Court to set aside this award.

As at 31 March 2020, other claims against AIS and its subsidiaries which are pending adjudication amounted to
THB 16.1 billion (S$698 million).

The above claims have not included potential interest and penalty.

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 2020, Telkomsel, a joint venture of the Group, has filed appeals and cross-appeals amounting to
approximately IDR 492 billion (S$43 million) for various tax claims arising in certain tax assessments which are
pending final decisions, the outcome of which is not presently determinable.

248

44.

SUBSEQUENT EVENTS

(a) On 29 April 2020, the Infocomm Media Development Authority announced that Singtel Mobile Singapore Pte. Ltd.
(“Singtel Mobile”), a wholly-owned subsidiary of the Company, has been given a provisional award for 5G network
pending completion of regulatory processes. Singtel Mobile will be assigned 100MHz of 3.5GHz spectrum and
800MHz of mmWave spectrum to deploy 5G networks.

(b) On 26 May 2020, Bharti Telecom Limited completed the sale of 2.75% stake in Airtel for a consideration of
approximately S$1.6 billion. Following the close of this transaction, Singtel’s effective shareholding in Airtel has
reduced from 33.3% to 31.9%.

45.

EFFECTS OF SFRS(I) AND INT SFRS(I) ISSUED BUT NOT YET ADOPTED

Certain new or revised SFRS(I) and INT SFRS(I) are mandatory for adoption by the Group for the financial year beginning
on or after 1 April 2020. The new or revised SFRS(I) and INT SFRS(I) are not expected to have a significant impact on the
financial statements of the Group and the Company in the period of initial application.

46.

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 2020
and 31 March 2019.

46.1 Significant subsidiaries incorporated in Singapore

Name of subsidiary

Principal activities

Percentage of effective
equity interest held by
the Group

2020
%

2019
%

Amobee Asia Pte. Ltd.

Provision of internet advertising solutions

Consumer Journeys Pte. Ltd.

Provision of lifestyle services to end users

DataSpark Pte. Ltd.

Develop and market data analytics and insights
products and services

Group Enterprise Pte. Ltd.

Telecommunications resellers and third party
telecommunications providers

HOOQ Digital Pte. Ltd.(1)

Provision of regional premium over-the-top video
services

NCS Communications
Engineering Pte. Ltd.

Provision of facilities management and
consultancy services, and distributor of specialised
telecommunications and data communication
products

NCS Pte. Ltd.

Provision of information technology and
consultancy services

NCSI Solutions Pte. Ltd.

Provision of information technology services

SCS Computer Systems Pte. Ltd. Provision of information technology services

100

249

Notes to the Financial StatementsFor the financial year ended 31 March 2020

46.

COMPANIES IN THE GROUP (Cont’d)

46.1

Significant subsidiaries incorporated in Singapore (Cont’d)

Name of subsidiary

Principal activities

Percentage of effective
equity interest held by
the Group

2020
%

100

2019
%

100

10.

11.

12.

13.

14.

15.

16.

17.

Singapore Telecom
International Pte Ltd

Holding of strategic investments and provision of
technical and management consultancy services

SingCash Pte Ltd

Provision of money remittance services

SingNet Pte Ltd

Provision of internet access and pay television
services

Singtel Cyber Security
(Singapore) Pte. Ltd.

Provision of information security services and
products

100

Singtel Innov8 Ventures
Pte. Ltd.

Singtel Mobile Singapore
Pte. Ltd.

Provision of fund management services

100

Operation and provision of cellular mobile
telecommunications systems and services, and sale
of telecommunications equipment

100

ST-2 Satellite Ventures
Private Limited

Provision of satellite capacity for telecommunications
and video broadcasting services

61.9

Sembawang Cable Depot
Pte Ltd

Provision of storage facilities for submarine
telecommunication cables and related equipment

18.

Singtel Digital Media Pte Ltd

Development and management of online internet
portal to provide digital content services and digital
marketing solutions

100

19.

SingtelSat Pte Ltd

Provision of satellite capacity for telecommunications
and video broadcasting services

100

20.

Telecom Equipment Pte Ltd

Engaged in the sale and maintenance of
telecommunications equipment, and mobile finance
services

100

21.

Trustwave Pte. Ltd.

Provision of information security services and
products

100

All companies are audited by KPMG LLP.

Note:
(1) HOOQ Digital Pte. Ltd. (“HOOQ”), a 76.5%-owned subsidiary, was placed under creditors’ voluntary liquidation and hence was deconsolidated from March 2020.

250

46.

COMPANIES IN THE GROUP (Cont’d)

46.2 Significant subsidiaries incorporated in Australia

Name of subsidiary

Principal activities

10.

11.

12.

13.

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

NCSI (Australia) Pty Limited

Provision of information technology services

Optus Administration Pty
Limited(1)

Provision of management services to the Optus
Group

Optus ADSL Pty Limited(1)

Provision of carriage services

Optus Billing Services Pty
Limited(*)(1)

Provision of billing services to the Optus Group

Optus C1 Satellite Pty Limited(1)

C1 Satellite contracting party

Optus Content Pty Limited(1)

Provision of digital content acquisition

Provision of data communication services

Percentage of effective
equity interest held by
the Group

2020
%

2019
%

100

Optus Data Centres Pty
Limited(1)

Optus Fixed Infrastructure Pty
Limited(1)

Optus Insurance Services Pty
Limited

Provision of telecommunications services

100

Provision of handset insurance and related services

100

14.

Optus Internet Pty Limited(1)

Provision of services over Hybrid Fibre Co-Axial
network and National Broadband Network

100

15.

Optus Mobile Pty Limited(1)

Provision of mobile phone services

100

251

Notes to the Financial StatementsFor the financial year ended 31 March 202046.

COMPANIES IN THE GROUP (Cont’d)

46.2 Significant subsidiaries incorporated in Australia (Cont’d)

Name of subsidiary

Principal activities

Percentage of effective
equity interest held by
the Group

2020
%

100

2019
%

100

16.

17.

18.

19.

20.

21.

22.

23.

Optus Networks Pty Limited(1)

Provision of telecommunications services

Optus Satellite Pty Limited(1)

Provision of satellite services

Optus Systems Pty Limited(1)

Provision of information technology services to the
Optus Group

Optus Vision Media Pty
Limited(*)(2)

Provision of broadcasting related services

Optus Vision Pty Limited (1)

Provision of telecommunications services

Optus Wholesale Pty Limited(1)

Provision of services to wholesale customers

Prepaid Services Pty Limited(1)

Distribution of prepaid mobile products

Reef Networks Pty Ltd(1)

Operation and maintenance of fibre optic network
between Brisbane and Cairns

100

24.

TWH Australia Pty. Ltd.

Provision of information security services and
products

100

25.

26.

Uecomm Operations Pty
Limited(1)

Virgin Mobile (Australia)
Pty Limited(1)

Provision of data communication services

100

Provision of mobile phone services

100

27.

Vividwireless Group Limited(1)

Provision of wireless broadband services

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.

252

46.

COMPANIES IN THE GROUP (Cont’d)

46.3 Significant subsidiaries incorporated outside Singapore and Australia

Name of subsidiary

Principal activities

Country of
incorporation/
operation

Percentage of effective
equity interest held by
the Group

2020
%

2019
%

10.

11.

Amobee EMEA Limited

Provision of internet advertising solutions

United Kingdom

Amobee, Inc.

Provision of internet advertising solutions

USA

Amobee Ltd

Research and development centre

Breach Security, Ltd.

Provision of information security services
and products

Israel

100

Global Enterprise
International Malaysia
Sdn. Bhd.

Provision of data communication and
value added network services

Malaysia

100

HOOQ Digital (India)
Private Limited(2)

Provision of over-the-top video services
and related activities and services

India

HOOQ Digital Mauritius
Private Limited(2)

Content operations and procurement

Mauritius

HOOQ Digital
(Philippines) Inc.(2)

Provision of market research, sales and
marketing support services

Philippines

HOOQ Digital (Thailand)
Company Limited(2)

Provision of market research, sales and
marketing support services

Thailand

Lanka Communication
Services (Pvt) Limited

Provision of telecommunications services

Sri Lanka

82.9

M86 Security
International, Ltd.

Provision of information security services
and products

United Kingdom

100

12.

M86 Security Israel, Ltd.

Provision of information security services
and products

Israel

13.

14.

NCS Information
Technology (Suzhou)
Co., Ltd.(3)

NCSI (Chengdu) Co.,
Ltd(3)

Software development and provision of
information technology services

People’s
Republic of
China

Provision of information technology
research and development, and other
information technology related services

People’s
Republic of
China

100

253

Notes to the Financial StatementsFor the financial year ended 31 March 202046.

COMPANIES IN THE GROUP (Cont’d)

46.3 Significant subsidiaries incorporated outside Singapore and Australia (Cont’d)

Name of subsidiary

Principal activities

Country of
incorporation/
operation

Percentage of effective
equity interest held by
the Group

2020
%

2019
%

15.

NCSI (HK) Limited

Provision of information technology
services

Hong Kong

100

16.

NCSI (Malaysia) Sdn
Bhd

Provision of information technology
services

Malaysia

100

17.

NCSI (Philippines) Inc.

Provision of information technology and
communication engineering services

Philippines

100

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

NCSI (Shanghai),
Co. Ltd(3)

Provision of system integration, software
research and development and other
information technology related services

People’s
Republic of
China

100

NCSI Technologies
(India) Pvt. Ltd.

Provision of information technology
services

India

100

SCS Information
Technology Sdn Bhd

Consultancy, sale of computer equipment
and software including provision of
marketing, maintenance and other
related services

Brunei

100

Singtel Global Private
Limited

Provision of infotainment products and
services, and investment holding

Mauritius

100

Singtel Global India
Private Limited

Provision of telecommunications services
and all related activities

India

100

Singtel Innov8 Ventures
LLC

Provision of investment consulting services USA

100

Singapore Telecom
Hong Kong Limited

Provision of telecommunications services
and all related activities

Hong Kong

100

Singapore Telecom
Japan Co Ltd

Provision of telecommunications services
and all related activities

Japan

100

Singapore Telecom
Korea Limited

Provision of telecommunications services
and all related activities

South Korea

100

Singapore Telecom
USA, Inc.

Provision of telecommunications,
engineering and marketing services

USA

100

254

COMPANIES IN THE GROUP (Cont’d)

46.3 Significant subsidiaries incorporated outside Singapore and Australia (Cont’d)

Name of subsidiary

Principal activities

Country of
incorporation/
operation

Percentage of effective
equity interest held by
the Group

2020
%

2019
%

28.

Singtel (Europe) Limited

Provision of telecommunications services
and all related activities

United Kingdom

100

29.

Singtel Taiwan Limited

Provision of telecommunications services
and all related activities

Taiwan

30.

STI Solutions (Shanghai)
Co., Ltd

Provision of telecommunications services
and all related activities

People’s
Republic of
China

100

31.

Sudong Sdn. Bhd.

Management, provision and operations
of a call centre for telecommunications
services

Malaysia

100

32.

Trustwave Canada, Inc.

Provision of information security services
and products

Canada

100

33.

34.

Trustwave Government
Solutions, LLC

Provision of information security services
and products

USA

Trustwave Holdings, Inc. Provision of information security services
and products

USA

100

35.

Trustwave Limited

Provision of information security services
and products

United Kingdom

100

36.

Trustwave SecureConnect
Inc.

Provision of information security services
and products

USA

100

All companies are audited by a member firm of KPMG.

The place of business of the subsidiaries are the same as their country of incorporation.

Notes:
(1)
(2) The holding company, HOOQ, was placed under creditors’ voluntary liquidation. Accordingly, HOOQ and these subsidiaries were deconsolidated from March 2020.
(3) Subsidiary’s financial year-end is 31 December.

255

Notes to the Financial StatementsFor the financial year ended 31 March 2020

46.

COMPANIES IN THE GROUP (Cont’d)

46.4 Associates of the Group

Name of associate

Principal activities

2359 Media Pte. Ltd.

Development and design of
mobile-based advertising

Country of
incorporation/
operation

Percentage of effective
equity interest held by
the Group

2020
%

2019
%

Singapore

28.3

APT Satellite Holdings
Limited(2)

Investment holding

Bermuda

20.3

APT Satellite International
Company Limited(2)

Investment holding

British Virgin
Islands

28.6

Digital Games International
Pte. Ltd.(3)

To operate a regional game store and
online community portal

Singapore

33.3

HOPE Technik Pte Ltd

Provision of high performance unique
engineering solutions

Singapore

21.3

Intouch Holdings Public
Company Limited(4)

Kai Square

Investment holding

Thailand

21.0

Provision of next generation cloud-based
video surveillance services, monitoring
and analytics based on unified platform

Singapore

39.2

MassiveImpact
International Ltd

Provision of performance based mobile
advertising platform

British Virgin
Islands

48.9

NetLink Trust(5)

To own, install, operate and maintain
the passive infrastructure for Singapore’s
Next Generation Nationwide Broadband
Network

Singapore

24.8

10. NetLink NBN Trust(5)

Investment holding

Singapore

24.8

11. Sentilla Corporation

Provision of energy management
services for data centres

USA

31.0

256

COMPANIES IN THE GROUP (Cont’d)

46.4 Associates of the Group (Cont’d)

Name of associate

Principal activities

Singapore Post
Limited(5)

Operation and provision of post and
parcel, eCommerce logistics and
property

Country of
incorporation/
operation

Percentage of effective
equity interest held by
the Group

2020
%

2019
%

Singapore

21.7

SESTO Robotics Pte Ltd

Provision of autonomous mobile robots

Singapore

25.1

28.5

Viewers Choice Pte Ltd

Provision of services relating to motor
vehicle rental and retail of general
merchandise

Singapore

49.2

12.

13.

14.

Notes:
(1)
(2)
(3)
(4)
(5) Audited by Deloitte & Touche LLP, Singapore.

The place of business of the associates are the same as their country of incorporation.
The company has been equity accounted for in the consolidated financial statements based on results ended, or as at, 31 December 2019, the financial year-end of the company.
This represents the Group’s direct interest in Digital Games International Pte. Ltd.
Audited by Deloitte Touche Tohmatsu Jaiyos Audit Co. Ltd, Bangkok.

46.5

Joint ventures of the Group

Name of joint venture

Principal activities

Country of
incorporation/
operation

Percentage of effective
equity interest held by
the Group

2020
%

2019
%

Malaysia

14.3

Acasia Communications
Sdn Bhd(3)

Provision of networking services to
business customers operating within
and outside Malaysia

ACPL Marine Pte Ltd

To own, operate and manage
maintenance-cum-laying cableships

Singapore

16.7

Advanced Info Service
Public Company
Limited(4)(5)

Provision of mobile, broadband,
international telecommunications
services, call centre and data transmission

Thailand

23.3

ASEAN Cableship
Pte Ltd

Operation of cableships for laying,
repair and maintenance of submarine
telecommunication cables

Singapore

16.7

ASEAN Telecom Holdings
Sdn Bhd(3)

Investment holding

Malaysia

14.3

257

Notes to the Financial StatementsFor the financial year ended 31 March 2020
46.

COMPANIES IN THE GROUP (Cont’d)

46.5

Joint ventures of the Group (Cont’d)

Name of joint venture

Principal activities

Country of
incorporation/
operation

Percentage of effective
equity interest held by
the Group

2020
%

2019
%

10.

11.

12.

13.

14.

15.

16.

17.

Asiacom Philippines,
Inc.(3)

Bharti Airtel
Limited(6)

Bharti Telecom
Limited(6)

Investment holding

Philippines

40.0

Provision of mobile, long distance
broadband and telephony
telecommunications services, enterprise
solutions, pay television and passive
infrastructure

India

33.3

39.5

Investment holding

India

49.4

48.9

Bridge Mobile Pte. Ltd.

Provision of regional mobile services

Singapore

33.9

34.5

Globe Telecom, Inc.(7)(8)

Provision of mobile, broadband,
international and fixed line
telecommunications services

Philippines

21.5

Grid Communications
Pte. Ltd.(3)

Provision of public trunk radio services

Singapore

50.0

Indian Ocean Cableship
Pte. Ltd.

Leasing, operating and managing of
maintenance-cum-laying cableship

Singapore

50.0

International Cableship
Pte Ltd

Main Event Television Pty
Limited

Ownership and chartering of cableships

Singapore

45.0

Provision of cable television programmes

Australia

33.3

Pacific Bangladesh
Telecom Limited

Provision of mobile telecommunications,
broadband and data transmission services

Bangladesh

45.0

Pacific Carriage
Holdings Limited(9)

Operation and provision of
telecommunications facilities and services
utilising a network of submarine cable
systems

Bermuda

29.99

39.99

PT Telekomunikasi
Selular(10)

Provision of mobile telecommunications
and related services

Indonesia

35.0

258

COMPANIES IN THE GROUP (Cont’d)

46.5

Joint ventures of the Group (Cont’d)

Name of joint venture

Principal activities

18.

19.

Radiance
Communications
Pte Ltd(3)

Sale, distribution, installation and
maintenance of telecommunications
equipment

Southern Cross Cables
Holdings Limited(9)(11)

Operation and provision of
telecommunications facilities and services
utilising a network of submarine cable
systems

Country of
incorporation/
operation

Percentage of effective
equity interest held by
the Group

2020

2019

Singapore

50.0

Bermuda

27.87

39.99

20.

VA Dynamics Sdn. Bhd.(3)

Distribution of networking cables and
related products

Malaysia

49.0

Notes:
(1)
(2)

(3)

The place of business of the joint ventures are the same as their country of incorporation, unless otherwise specified.
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.
The company has been equity accounted for in the consolidated financial statements based on the results ended, or as at, 31 December 2019, the financial year-end of the
company.
Audited by Deloitte Touche Tohmatsu Jaiyos Audit Co. Ltd, Bangkok.
This represents the Group’s direct interest in AIS.

(4)
(5)
(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) up till 31 December 2019 and Isla Lipana & Co./PwC Philippines with effect from 1 January
2020.
The Group has a 47.0% effective economic interest in Globe.
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.

(8)
(9)

(10) Audited by Purwantono, Sungkoro & Surja (a member firm of Ernst & Young).
(11) Audited by KPMG, Bermuda.

259

Notes to the Financial StatementsFor the financial year ended 31 March 2020The aggregate value of all interested person transactions during the financial year ended 31 March 2020 (excluding transactions
less than S$100,000) were as follows -

Name of interested person

Nature of Relationship

Each interested person is an associate of
Singapore Telecommunications Limited’s
controlling shareholder, Temasek Holdings
(Private) Limited

Certis CISCO Auxiliary Police Force Pte Ltd
Certis CISCO Protection Services Pte Ltd
Ensign InfoSecurity (Systems) Pte Ltd
Fullerton Fund Management Company Ltd
Grid Communications Pte. Ltd.
Mediacorp Pte Ltd
Nexwave Technologies Pte Ltd
PSA Corporation Ltd
Radiance Communications Pte Ltd
SATS Ltd
Singapore Power Limited
Singex Venues Pte Ltd
SingEx Exhibitions Pte Ltd
ST Electronics (Info-Security) Pte Ltd
ST Engineering Electronics Ltd.
ST Engineering iDirect, Inc.
StarHub Cable Vision Ltd
StarHub Ltd
StarHub Mobile Pte Ltd
Synergy FMI Pte Ltd

S$ mil

8.8
0.4
4.4
0.5
1.8
0.7
0.4
2.3
4.1
0.1
1.2
0.2
0.1
0.8
1.4
0.1
31.5
9.4
6.0
0.2

74.4

260

Interested Person TransactionsOVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSSingapore Telecommunications Limited | Annual Report 2020

Name of Director

Chua Sock Koong

Date of appointment

12 October 2006 (as Director)
1 April 2007 (as Group Chief Executive Officer)

Date of last re-appointment
(if applicable)

28 July 2017

Age

Country of principal
residence

The Board’s comments
on this re-election/
appointment

Whether appointment is
executive, and if so, the
area of responsibility

Job title (e.g. Lead ID, AC
Chairman, AC Member
etc.)

Singapore

After reviewing the recommendation of the Corporate Governance and Nominations Committee
and Ms Chua’s qualifications and experience (as set out below), the Board has approved that
Ms Chua stands for re-election as an executive and non-independent Director.

Ms Chua will, upon re-election, continue to serve as a member of the Optus Advisory Committee.

Executive

Executive and non-independent Director

Member of the Optus Advisory Committee

Professional qualifications Bachelor of Accountancy (First Class Honours) from the University of Singapore

Fellow Member of the Institute of Singapore Chartered Accountants

CFA charterholder

Working experience and
occupation(s) during the
past 10 years

Singapore Telecommunications Limited
2007 to present
Group Chief Executive Officer

Ms Chua currently also serves as a Director/Member/Trustee of various entities including
those which are owned by Singapore Telecommunications Limited. Please refer to her present
directorships/principal commitments provided below for further information.

Shareholding interest in
the listed issuer and its
subsidiaries

Yes
9,009,471 ordinary shares in Singapore Telecommunications Limited (Direct interest)
1,922,632 ordinary shares in Singapore Telecommunications Limited (Deemed interest)

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

261

Additional Information on Directors Seeking Re-electionName of Director

Chua Sock Koong

Yes

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

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:

• Optus Digital Life Australia Investments Pty Limited, Director
• Optus ICT Investments Pty Limited, Director
• Singapore Management University Board of Trustees, Member
• Singapore Telecom Australia Investments Pty Ltd, Director
• Singtel Australia Investment Ltd, Director
• Singtel Optus Pty Limited, Director
• Singtel Singapore Pte Ltd, Director

Present

Other listed company:
• Bharti Airtel Limited, Director

Indonesia-Singapore Business Council, Member

Other principal commitments:
• Bharti Telecom Limited, Director
• Cap Vista Pte Ltd, Director
• Council of Presidential Advisers, Member
• Defence Science and Technology Agency, Director
• GSMA, Deputy Chairman
•
• Public Service Commission, Member and Deputy Chairman
• Research, Innovation and Enterprise Council, Member
• Singapore Telecom International Pte Ltd, Director
• Singapore Telecom Mobile Pte Ltd, Director
• Singtel Group Treasury Pte. Ltd., Director
• Singtel Innov8 Holdings Pte. Ltd., Director
• Singtel Innov8 Pte. Ltd., Director

262

Additional Information on Directors Seeking Re-electionSingapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSName of Director

Low Check Kian

Date of appointment

9 May 2011 (as Director)
21 July 2015 (as Lead Independent Director)

Date of last re-appointment
(if applicable)

28 July 2017

Age

Country of principal
residence

The Board’s comments
on this re-election/
appointment

Whether appointment is
executive, and if so, the
area of responsibility

Job title (e.g. Lead ID, AC
Chairman, AC Member
etc.)

Singapore

After reviewing the recommendation of the Corporate Governance and Nominations Committee
and Mr Low’s qualifications and experience (as set out below), the Board has confirmed Mr Low’s
independence and approved that Mr Low stands for re-election as a non-executive and
independent Director.

Mr Low will, upon re-election, continue to serve as Lead Independent Director, Chairman of the
Corporate Governance and Nominations Committee, and a member of the Executive Resource
and Compensation Committee and the Finance and Investment Committee.

Non-executive

Non-executive and Lead Independent Director

Chairman of the Corporate Governance and Nominations Committee

Member of the Executive Resource and Compensation Committee

Member of the Finance and Investment Committee

Professional qualifications B. Sc (First Class Honours) and M. Sc in Economics from the London School of Economics

Working experience and
occupation(s) during the
past 10 years

Cluny Park Capital Pte. Ltd.
2011 to present
Director

Cluny Properties Pte. Ltd.
2010 to present
Director

Cluny Capital Limited (BVI)
2007 to present
Director

Singapore Exchange Limited
2010 to 2011
Director

NewSmith Capital Partners (Asia) Pte Ltd
2003 to 2012
Chairman

263

Additional Information on Directors Seeking Re-electionName of Director

Low Check Kian

Yes
1,490 ordinary shares in Singapore Telecommunications Limited (Direct interest)

Yes

Shareholding interest in
the listed issuer and its
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

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 listed company:

• Neptune Orient Lines Limited, Non-executive and Independent Director

Other principal commitments:
• Fullerton Fund Management Company Ltd, Non-executive Director
• Renewfibre Asia Private Limited, Director

Present

Other listed company:
•

Broadcom Limited, Director

Other principal commitments:
• Cluny Capital Limited (BVI), Director
• Cluny Park Capital Pte. Ltd., Director
• Cluny Properties Pte. Ltd., Director
• Nanyang Technological University, Director/Trustee
• Singtel Innov8 Holdings Pte. Ltd., Director
• Singtel Innov8 Pte. Ltd., Director
• The Singapore London School of Economics Trust, Trustee

264

Lee Theng Kiat

Date of appointment

15 January 2020

Date of last re-appointment
(if applicable)

Not applicable

Age

Country of principal
residence

The Board’s comments
on this re-election/
appointment

Whether appointment is
executive, and if so, the
area of responsibility

Job title (e.g. Lead ID, AC
Chairman, AC Member
etc.)

Singapore

After reviewing the recommendation of the Corporate Governance and Nominations Committee
and Mr Lee’s qualifications and experience (as set out below), the Board has confirmed Mr Lee’s
independence and approved that Mr Lee stands for re-election as a non-executive and non-
independent Director.

Mr Lee will, upon re-election, continue to serve as a member of the Corporate Governance and
Nominations Committee, the Executive Resource and Compensation Committee, and the Optus
Advisory Committee. He will be appointed Chairman of the Board and Chairman of the Finance
and Investment Committee following the conclusion of the 28th Annual General Meeting.

Non-executive

Chairman-designate

Non-executive and non-independent Director

Member of the Corporate Governance and Nominations Committee

Member of the Executive Resource and Compensation Committee

Member of the Finance and Investment Committee

Member of the Optus Advisory Committee

Professional qualifications Bachelor of Laws (Honours) from the National University of Singapore

Working experience and
occupation(s) during the
past 10 years

Temasek Holdings (Private) Limited
2019 to present
Executive Director
2016 to present
Director

265

Additional Information on Directors Seeking Re-election
Name of Director

Lee Theng Kiat

Working experience and
occupation(s) during the
past 10 years (Cont’d)

Temasek International Pte. Ltd.
2019 to present
Chairman
2017 to 2019
Deputy Chairman
2012 to 2015
President
2012 to 2013
General Counsel
2012 to 2013
Head, South East Asia, Co-Head India

STT Communications Ltd
2000 to 2012
President & Chief Executive Officer

Singapore Technologies Telemedia Pte Ltd
2000 to 2012
President & Chief Executive Officer

Yes

Shareholding interest in
the listed issuer and its
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

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)

Nil

Present

Other principal commitments:
• Liquidity Pte Ltd, Director
• Sygnum AG, Zurich, Investor/Shareholder
• Temasek Holdings (Private) Limited, Executive Director
• Temasek International Pte. Ltd., Chairman
• Xi Yan Pte Ltd, Director

266

Chua Sock Koong

Low Check Kian

Lee Theng Kiat

Information required
Disclose the following matters concerning an appointment of director.

(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?

(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 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?

267

Additional Information on Directors Seeking Re-electionName of Director

Chua Sock Koong

Low Check Kian

Lee Theng Kiat

(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?

(h) Whether he has ever been 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?

(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

(ii) any entity (not being a 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 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 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,

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?

Note:
Information as at 8 June 2020.

268

Number of ordinary shareholders

330,743

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

No. of shares

Direct
interest

Deemed
interest

Temasek Holdings (Private) Limited

8,132,818,602

453,517,849(1)

Note:
(1) Deemed through interests of subsidiaries and associated companies.

MAJOR SHAREHOLDERS LIST – TOP 20

No.

Name

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

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.
United Overseas Bank Nominees (Private) Limited
OCBC Nominees Singapore Private Limited
Maybank Kim Eng Securities Pte Ltd
Phillip Securities Pte Ltd
OCBC Securities Private Ltd
UOB Kay Hian Pte Ltd
Morgan Stanley Asia (Singapore) Securities Pte Ltd
DB Nominees (Singapore) Pte Ltd
Merrill Lynch (Singapore) Pte Ltd
CGS-CIMB Securities (Singapore) Pte Ltd
CDP Nominees Pte Ltd

No. of
shares held

% of issued
share capital(1)

8,132,818,602
1,966,275,821
1,787,676,930
868,180,066
816,202,403
687,659,667
358,354,351
266,022,945
106,811,451
66,380,554
37,768,141
26,814,544
23,156,783
22,184,370
19,594,153
15,954,095
15,856,943
13,890,897
13,611,739
10,880,000
15,256,094,455

49.81
12.04
10.95
5.32
5.00
4.21
2.19
1.63
0.65
0.41
0.23
0.16
0.14
0.14
0.12
0.10
0.10
0.08
0.08
0.07
93.43

Note:
(1)

The percentage of issued ordinary shares is calculated based on the number of issued ordinary shares of the Company as at 2 June 2020.

269

Shareholder InformationAs at 2 June 2020
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

3,310
235,651
74,313
17,410
59
330,743

% of
holders

1.00
71.25
22.47
5.26
0.02
100.00

No. of
shares

% of issued
share capital

139,973
60,695,901
274,136,547
633,490,569
15,360,695,310
16,329,158,300

0.00
0.37
1.68
3.88
94.07
100.00

Note:
As at 2 June 2020, the Company had no treasury share and subsidiary holdings. Based on information available to the Company as at 2 June 2020, 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 2 June 2020.

SHARE PURCHASE MANDATE

At the 27th Annual General Meeting of the Company held on 23 July 2019 (2019 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 2019 AGM. As at 2 June 2020, there is no current on-market buy-back of shares pursuant
to the mandate.

270

Shareholder InformationAs at 2 June 2020Singapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSBOARD OF DIRECTORS

RISK COMMITTEE

SHARE REGISTRAR

Simon Israel (Chairman)
Lee Theng Kiat (Chairman-designate)
Chua Sock Koong (Group CEO)
Gautam Banerjee
Venkataraman (Venky) Ganesan
Bradley Horowitz
Gail Kelly
Low Check Kian
Christina Ong
Teo Swee Lian

Teo Swee Lian (Chairman)
Gautam Banerjee
Christina Ong

LEAD INDEPENDENT DIRECTOR

Low Check Kian
Email: check.low@clunyparkcapital.com

OPTUS ADVISORY COMMITTEE

Gail Kelly (Chairman)
Simon Israel
Lee Theng Kiat
Chua Sock Koong
John Arthur
David Gonski AC(2)
John Morschel
Paul O’Sullivan

TECHNOLOGY ADVISORY PANEL

Venky Ganesan (Chairman)
Manik Gupta
Bradley Horowitz
Koh Boon Hwee

ASSISTANT COMPANY SECRETARY

Lim Li Ching

REGISTERED OFFICE

31 Exeter Road
Comcentre
Singapore 239732
Tel: +65 6838 3388
Fax: +65 6732 8428
Website: www.singtel.com

AUDIT COMMITTEE

Gautam Banerjee (Chairman)
Gail Kelly
Christina Ong

CORPORATE GOVERNANCE AND
NOMINATIONS COMMITTEE

Low Check Kian (Chairman)
Simon Israel
Lee Theng Kiat
Gail Kelly
Christina Ong
Teo Swee Lian

EXECUTIVE RESOURCE AND
COMPENSATION COMMITTEE

Gail Kelly (Chairman)
Simon Israel
Lee Theng Kiat
Low Check Kian
Teo Swee Lian

FINANCE AND INVESTMENT
COMMITTEE

Simon Israel (Chairman)
Lee Theng Kiat
Venky Ganesan
Bradley Horowitz
Low Check Kian

271

M & C Services Private Limited
112 Robinson Road
#05-01
Singapore 068902
Tel: +65 6228 0544
Fax: +65 6225 1452
Email: GPE@mncsingapore.com
Website: www.mncsingapore.com

SINGTEL AMERICAN
DEPOSITARY RECEIPTS

Citibank Shareholder Services
PO Box 43077
Providence, Rhode Island 02940-3077
USA
Tel: 1 877 248 4237
(Toll free within USA)
Tel: +1 781 575 4555 (Outside USA)
Email: citibank@shareholders-online.com
Website: www.citi.com/dr

AUDITORS

KPMG LLP
(appointed on 24 July 2018)
16 Raffles Quay
#22-00
Hong Leong Building
Singapore 048581
Tel: +65 6213 3388
Fax: +65 6225 0984

Audit Partner: Ong Pang Thye

INVESTOR RELATIONS

31 Exeter Road
#19-00 Comcentre
Singapore 239732
Tel: +65 6838 2123
Email: investor@singtel.com

Notes:
(1)
(2) Companion of the Order of Australia.

The information in this section is as at 8 June 2020.

Corporate Information(1)SINGAPORE

Singtel Headquarters
31 Exeter Road, Comcentre
Singapore 239732
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 8 7328 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

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
No 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
10F, No.2 Building of Real Power Inno-
vation Centre,
51 Zhengxue Road
Yangpu District,
Shanghai 200433
Tel: +86 21 3362 0388
Fax: +86 21 3362 0389
Email: singtel-sha@singtel.com

Shenzhen
Room 109, 9F, Tower B
TCL Building,
Gao Xin Nan Yi Road, Nanshan District
Shenzhen 518057
People’s Republic of China
Email: singtel-sha@singtel.com

EUROPE

Frankfurt
Center Frankfurt Westend
Friedrich-Ebert-Anlage 36
60325 Frankfurt, Germany
Tel: +49 69 9750 3445
Fax: +49 69 9750 3200
Email: europe@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

272

Contact PointsSingapore Telecommunications Limited | Annual Report 2020OVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWSOVERVIEWGOVERNANCE AND SUSTAINABILITYPERFORMANCEFINANCIALSADDITIONAL INFORMATIONBUSINESS REVIEWS

KOREA

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

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

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

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

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 Wing, 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
8F, Meguro Central Square
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-shi, Osaka
532-0003, Japan
Tel: +81 6 7668 8417
Email: singtel-jpn@singtel.com

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Singapore Telecommunications Limited
(CRN:199201624D)

31 Exeter Road, Comcentre
Singapore 239732
T +65 6838 3388
www.singtel.com

SUPERCHARGING

THE FUTURE

Annual Report 2020