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Ready, set, DIGITAL!

Annual Report 2018

Table of Contents

Overview

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

1

Financial Highlights

3

FY 2018 Achievements

5 Chairman's Message

8 GCEO Review

11 Who We Are

13 Our Businesses and Strategy

15 The Value We Create

17 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 108 Sustainability

Performance

Our financial performance

116 Group Five-year Financial Summary 118 Group Value Added Statements 119 Management Discussion and Analysis

Financials

Audited financial statements

129 Directors' Statement 139 Independent Auditor's Report 145 Consolidated Income Statement 146 Consolidated Statement of Comprehensive Income 147 Statements of Financial Position 148 Statements of Changes in Equity 152 Consolidated Statement of Cash Flows 155 Notes to the Financial Statements

Additional Information

Our shareholders, transactions with interested persons and other corporate information

250 Interested Person Transactions 251 Shareholder Information 253 Corporate Information 254 Contact Points

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Singapore Telecommunications Limited | Annual Report 2018

3

Financial Highlights

OPERATING REVENUE

2018 2017

S$17,532M S$16,711M

+4.9%

EBITDA 2018 2017

S$5,089M S$4,998M

+1.8%

NET PROFIT

2018 2017

S$3,853M

S$5,451M (1)

+41.5%

UNDERLYING NET PROFIT

2018 2017

S$3,544M S$3,871M

-8.4%

FREE CASH FLOW

2018 2017

S$3,606M S$3,054M (2)

+18.1%

SHAREHOLDER PAYOUT

2018 2017

S$3,347M S$2,857M

+17.2%

RETURN ON EQUITY 2018 2017

18.8% 14.5%

+4.3 percentage points

RETURN ON INVESTED CAPITAL

2018 2017

14.7% (3) 10.9%

+3.8 percentage points

CONSTANT CURRENCY

NET PROFIT

2018 2017

S$3,853M

S$5,478M (1)

+42.2%

UNDERLYING NET PROFIT

2018 2017

S$3,569M S$3,871M

-7.8%

Notes: (1) Includes an exceptional gain of S$2.03 billion from the disposal of 75.2% effective interest in NetLink Trust. (2) After payment of A$134 million (S$142 million) to the Australian Taxation Office for amended assessments under dispute. (3) Return on invested capital is defined as EBIT (post-tax) divided by average capital. For FY 2018, EBIT included the gain on disposal of economic interest

in NetLink Trust.

1

UNDERLYING NET PROFIT Contribution by Geography

S$3,544M

OPERATING REVENUE Contribution by Products and Services

11%

6%

17% 12%

S$17,532M

20% 34%

47% Regional Associates

24% Australia

29%

Singapore (4)

Digital Business ICT Mobile Communications

Data and Internet Sale of Equipment Others (5)

SHAREHOLDER PAYOUT Dividend per share (S?)

2018 2017 2016 2015 2014

Ordinary Dividend Special Dividend

17.5

3.0

17.5

17.5

17.5

16.8

Notes: (4) Includes losses from Trustwave and Amobee. (5) Includes National telephone, International telephone and Pay television.

Singtel has a track record of generous shareholder payouts.

For the financial year ended 31 March 2018, the Board has recommended a final ordinary dividend of 10.7 Singapore cents a share. Together with the interim dividend of 6.8 Singapore cents, the total ordinary dividend for the year is 17.5 Singapore cents, unchanged from last year. The Group also paid a special dividend of 3.0 Singapore cents from NetLink Trust divestment proceeds.

Refer to page 127 for the Group's capital management and dividend policy.

Singapore Telecommunications Limited | Annual Report 2018

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