Business Decision Making
Assessment 3
50 Marks
Business Decision-Making Take Home Assignment.
Notes – read these carefully!
The report should be prepared based on the five questions below. For each question, include a separate subheading. The report should utilize details provided in the Singtel 2023 annual report, making sure to cite the relevant page numbers, and any other credible references.
· At the start of your assignment document, insert your name (Surname, Given Name), and your student number.
· Students must use their own words when presenting relevant information taken from the provided annual report, instead of just copying and pasting.
· Assignment must be submitted as a PDF or Word document.
· Students must submit the completed work through the Assessment 3 link provided under Submission point.
· You are required to keep a hard copy of your submitted assignment to re-submit in case the original submission is lost for some reason.
· Length of the report should be a maximum of 2000 words (including the reference list).Â
· Referencing Style: Use Harvard or APA style. Choose either, but be consistent throughout the document,
· Use your discretion and judgment and decide how many references you require to provide a well-researched, compelling argument for the reader.
· As this is an individual assessment item, students must work on their own and present their individual assignment submission.
Singtel, a telecommunications powerhouse, extends its influence to Australia through its subsidiary Optus. As one of the largest telecommunications providers in the country, Optus is integral to Singtel's global footprint. Since Singtel acquired Optus in 2001, the subsidiary has played a crucial role in Australia's telecommunications market, offering a comprehensive range of services, including mobile, fixed-line,
oadband, and enterprise solutions.
Based on Singtel’s 2023 annual report, along with other references and the content you have learned in Business Decision Making, please answer the following questions.
1. Suppose that you are going to develop a communication plan for Singtel. Explain five elements that you consider important for a communication plan. Using the Sender-Receiver model, identify and explain three elements that can contribute to critical communication failures.
1. How does Singtel aim to utilize effective communication in ensuring employees not only understand strategic objectives but are also motivated to actively contribute to their achievement? Discuss the significance of effective communication in organizational success, focusing on key elements and strategies Singtel can employ to foster a positive and motivating atmosphere while promoting unity and shared purpose among its workforce.
1. How does Singtel approach long-term strategic planning to stay competitive in the telecommunications industry? Can you elaborate on the key elements of Singtel's strategic planning model?
1. How does Singtel integrate emerging technologies into its planning model to stay at the forefront of innovation? What are the examples of how Singtel aligns its technology roadmap with its overall business planning?
1. Analyzing Singtel's annual report, identify and evaluate three key risks faced by the company. Discuss the impact of these risks on the operations of Singtel's strategic planning. What strategies does Singtel employ in its planning model to identify and mitigate potential risks in the dynamic telecommunications landscape?
Link to the Singtel’s 2023 annual report:
https:
www.optus.com.au/content/dam/optus/documents/about-us/media-centre/annual-reports/2023/singtel-annual-report-2023.pdf
Since embarking on our strategic
eset in 2021 to accelerate
growth in the 5G era, our journey
has been driven by a common
purpose to Empower Every
Generation. This shared ambition
has
ought our people closer
together and given greater
focus to our transformation to
ecome a more relevant and
socially impactful Group. We
elieve technologies like 5G can
ing positive, lasting change for
everyone – enriching consumers’
experiences, helping enterprises
get ahead in the digital economy
and closing digital gaps in our
communities. With our expertise
and unique assets, we want
to open up a world of digital
possibilities and keep paving the
way for a more sustainable and
inclusive future.
Our
Purpose-
Driven
Journey
Our Strategy and Progress
08
Business Reviews
22
Governance and Sustainability
34
Overview
02 Our Business Footprint
04 Financial Highlights
05 Sustainability Highlights
06 Chairman and GCEO Message
08 Our Strategy and Progress
10 Harnessing the Power of 5G
12 Board of Directors
17 Organisation Structure
18 Management Committee
Business Reviews
22 Group CFO Review
24 Consumer Singapore CEO Review
26 Optus CEO Review
28 Group Enterprise CEO Review
30 NCS CEO Review
Governance and Sustainability
34 Corporate Governance
76 Investor Relations
78 Risk Management
Philosophy and Approach
90 Sustainability
CONTENTS
Performance
98 Group Five-year Financial Summary
102 Group Value Added Statements
103 Management Discussion and Analysis
Financials
114 Directors’ Statement
125 Independent Auditors’ Report
131 Consolidated Income Statement
132 Consolidated Statement of
Comprehensive Income
133 Statements of Financial Position
135 Statements of Changes in Equity
139 Consolidated Statement of Cash Flows
143 Notes to the Financial Statements
Additional Information
245 Interested Person Transactions
246 Further Information on Board of Directors
250 Additional Information on Directors
Seeking Re-election
260 Further Information on
Management Committee
264 Key Awards and Accolades
267 Shareholder Information
269 Corporate Information
270 Contact Points
Scan QR Code to view
the Singtel Annual
Report 2023 online.
View Online
1
Our Business
Footprint
81%
Underlying
net profit from
operations
outside Singapore
770m
Deep customer
elationships and
insights, with
mobile customers in
21 countries
ASIA’S LEADING
COMMUNICATIONS
TECHNOLOGY
GROUP
We are based in a dynamic
egion that is primed to be the
fastest-growing digital economy.
Guided by our purpose to empower
people and businesses through technology,
our talented teams are accelerating digital
innovation across our markets. Together with
Optus and our regional associates Airtel, AIS,
Globe and Telkomsel, we focus on growing
our digital capabilities and
eaking new
ground in emerging technologies such as 5G.
46%
of our people are
ased out
of Singapore
2
O
VERVIEW
G
O
VERN
AN
C
E AN
D
SU
STAIN
ABILITY
PERFO
RM
AN
C
E
FIN
AN
C
IALS
AD
D
ITIO
N
AL IN
FO
RM
ATIO
N
BU
SIN
ESS REVIEW
S
Ordinary shares 24.99%
An investor in telcos,
media and technology
THAILAND
AUSTRALIA
Mobile customers 10.4m
Broadband customers 1.3m
SINGAPORE
Mobile customers 4.3m
Broadband customers 0.7m
INDONESIA
Effective interest 35.0%
Mobile customers 151m
PHILIPPINES
INDIA,
SOUTH ASIA,
AFRICA
Effective interest 29.4%
Mobile customers
India: 335m
South Asia: 3.1m
Africa: 140m
Broadband customers
India: 6m
Notes:
(1) Based on direct equity interest only.
(2) Singtel has an economic interest of 46.8% in Globe.
All figures at 31 March 2023 unless otherwise stated.
Ordinary shares 23.3% (1)
Mobile customers 46.1m
Broadband customers 2.3m
Voting shares 22.3% (2)
Mobile customers 84.2m
Broadband customers 2.3m
3
Financial
Highlights
Notes:
(1) On constant cu
ency basis, excluding NBN migration revenue and Amobee in prior comparative period FY2022.
(2) On constant cu
ency basis.
(3) Includes additional payout of 5.0 cents per share from the assets that the Group recycled in FY2023.
(4) Excluding Optus goodwill. With Optus goodwill, Group return on invested capital would be 5.9% and 5.4% in FY2023 and FY2022 respectively.
FY2023 FY2022 YOY Change (%)
Operating Revenue
(S$m)
Share of Associates’ Pre-Tax Profits
(S$m)
EBIT
(S$m)
Underlying Net Profit
(S$m)
2,225
2,053
3,399
2,287
14.9
8.3
8.5
14,624
1,949
1,923
3,181
2,136
9.3
7.3
7.3
15,339
Net Profit
(S$m)
Dividend Per Share
(S cents)
Return on Invested Capital (4)
(%)
Return on Equity
(%)
5
XXXXXXXXXX)
7
XXXXXXXXXX)
7
XXXXXXXXXX)
7
XXXXXXXXXX)
14
XXXXXXXXXX)
60 (3)
1.0
percentage
point
1.2
percentage
points
4
Sustainability
Highlights OVERVIEW
G
O
VERN
AN
C
E AN
D
SU
STAIN
ABILITY
PERFO
RM
AN
C
E
FIN
AN
C
IALS
AD
D
ITIO
N
AL IN
FO
RM
ATIO
N
BU
SIN
ESS REVIEW
S
Notes:
(1) Ookla Speedtest Awards Q1 – Q4 2022.
(2) Opensignal 5G Global Mobile Network Experience Awards.
(3) The Clean200 report ranks large publicly listed global companies by their total clean energy revenues.
Creating value
for customers > 770m > 95% #1
mobile customers
connected across
the Group
5G standalone
coverage in
Singapore
for 5G download
speeds in Singapore(1)
and Australia(2)
Minimising
environmental
impact
11% 2,363MWh Top 100
eduction in scope
1 and 2 absolute
emissions
of renewable energy
generated in FY2023
on the Clean200 list
y Corporate Knights
and As You Sow(3)
Advancing
diversity, equity
and inclusion and
uilding a future-
eady workforce
30% ~ S$22m > 3,000
of staff, management
and board are women
invested in training our
people in Singapore
and Australia
employees reskilled
to new roles
Uplifting
communities > S$54m > 35,000 #1
aised for the Singtel
Touching Lives Fund
since 2002
volunteering hours
to support our
communities
SEA company in
2023 Digital Inclusion
Benchmark by World
Benchmarking
Alliance
5
Chairman and
GCEO Message
Lee Theng Kiat
Chairman
Dear Shareholders,
It has been a year of recovery and
progress despite uncertainties in the
macroeconomic environment. The
lifting of travel restrictions around
the world sounded an official end
to COVID-19 and its profound
disruptions. This set the scene for
a
oad-based economic recovery
and the return of international travel.
Against this backdrop, our business
has come back strong, while we
pivoted assertively into new areas
of growth, as economies continue
to undergo rapid digitalisation. Our
FY2023 net profit grew 14% to
S$2.23 billion, allowing us to make a
total dividend payout of 14.9 cents
per share.
Reinvigorating our core
usiness
As economies around the world
oared back to life and companies
accelerated their digital transformation
post-pandemic, we were well-
positioned to capture the tailwinds
of digitalisation and positive upside.
Mobile growth across Singapore and
Australia returned, with a similar
trend experienced by our regional
associates, particularly Airtel in India.
Add to this the growth of our ICT
usiness – our core businesses saw a
strong 15% EBIT growth.
Our 5G leadership helped to
einvigorate our core businesses – a
key reason why we were voted the
strongest
and in Singapore for
the second straight year and the
sixth strongest telco
and globally
y Brand Finance. In Singapore, we
achieved standalone 5G nationwide
coverage, three years ahead of
egulatory targets, effectively making
Singapore the first country in the
world to be fully covered by this
next-generation wireless technology.
Hitting this critical milestone has given
us a head start in commercialising 5G.
Not only are our customers enjoying
faster speeds and better connectivity
when using their mobile devices, we
have begun helping enterprises to
innovate and grow by exploiting the
full capabilities and best applications
that 5G can offer. Importantly, with our
5G infrastructure in place, Singapore
can step confidently into its next phase
of growth as a global smart nation.
In Australia, Optus has switched
on its 3,000th 5G site this year as it
expands its national 5G coverage,
while establishing the fastest mobile
speeds in the country for the third year
unning.
Restructuring for growth
Consistent with our ongoing strategic
eset, we further reorganised our
structure to reposition the Group for
growth. In Singapore, we consolidated
our consumer and enterprise
usinesses into a single operating
unit to drive synergies, productivity
and cost savings at the country level.
This follows a similar move in 2022,
when we transfe
ed the management
of Optus Enterprise to Australia,
effectively giving Optus more
operational autonomy to respond to
market changes and compete more
effectively. We’ve recently established
a standalone infrastructure unit called
Digital InfraCo to better unlock the
latent value of our portfolio of quality
assets that includes our regional data
centre business, our ca
ier businesses
in subsea cable and satellite, as well
as Paragon, our all-in-one platform
for 5G MEC and cloud orchestration.
This restructuring began in 2021
when our ICT arm NCS was
empowered to accelerate its
expansion into Asia-Pacific as an
autonomous business unit. NCS has
since expanded and regionalised with
a 12,000-strong workforce, a footprint
that extends to Australia and sales
ookings of some S$3.2 billion.
We believe these moves will
accelerate the Group’s pace of
growth, particularly in areas where
we have a right to play. The Digital
InfraCo, for instance, will build on our
portfolio of data centres in Singapore
with new date centres in Thailand
and Indonesia coming online by 2025.
Together with a 58MW project at Tuas
in Singapore, the new builds will more
than double our capacity to 155MW
in the next three years.
Recycling capital to invest
in growth
Besides reinvigorating our core and