Singtel 2017 AGM

 The 3 business segments of Singtel (Source: 2017 Annual Report)

1. Response to increased competition in Singapore market:

To improve the following:
- Network investment
- Reliability
- Innovative solutions
- Customer experience
- Relook cost structure

2. Response of Optus (wholly owned subsidiary of Singtel) to TPG in Australia:

- Have greater mobile coverage across the country
- TPG will operate as a mobile virtual network operator (MVNO). They face direct competition from Amaysim, which is also a MVNO.

3. On Group Digital Life business:

- The business requires scale. Amobee is expected to break even this year.

4. Cyber Security Business:

- Focus on building a long term position, not profitability
- Building up foot print and scale
- Investments around the world
- Several more years of building up
- Singtel is the fifth largest and fastest growing cyber security business in the world
- Acquisition of Trustwave added 1500 more skilled personnel to the group

5. Investment timeline of investments such as Amobee and cyber security? When does the group expect to see returns on investment?

- Subject to hurdle rates and financial discipline
- Impairment review is done annually, see page 195 of FY17 annual report

6. On Moody's downgrade of Singtel:

- CEO says Singtel is still one of the best telcos financially

7. On further acquisitions in ASEAN emerging markets like Myammar:

- The board will monitor for opportunities, many countries already well penetrated and face competition

8. On future capex cost:

- 5G capex plans will be finalised in 2019/20
- Spectrum cost is once every 15 years

9. On declining free cash flow (FCF):

- Declining FCF in Optus: due to capex to increase the network in Australia
- Declining FCF in the group: due to acquisitions like Trustwave

10. On Netlink Trust IPO:

- Board may consider a special dividend when declaring interim dividend for Q2FY18


Note: I hold Singtel shares, average price $3.70