FY17 Results Presentation 23 January 2018

1

Forward looking statements – Important note

This presentation and the following discussion may contain forward looking statements

by M1 Limited (“M1”) relating to financial trends for future periods

Some of the statements contained in this presentation or arising from this discussion

which are not of historical facts are statements of future expectations with respect to

financial conditions, results of operations and businesses, and related plans and

objectives. Such forward looking statements are based on M1’s current views and

assumptions including, but not limited to, prevailing economic and market conditions

and currently available information. These statements involve known and unknown risks

and uncertainties that could cause actual results, performance or achievements to differ

materially from those in the forward looking statements. Such statements are not, and

should not be construed, as a representation as to future performance or achievements

of M1. In particular, such statements should not be regarded as a forecast or projection

of future performance of M1. It should be noted that the actual performance or

achievements of M1 may vary significantly from such statements.

2

Overview

• Service revenue increased 2.8% YoY to S$828m

• Fixed services revenue grew 24.5% YoY to S$130m

• EBITDA was 3.1% lower YoY at S$302m

• Net profit after tax was S$133m

• Mobile services revenue was stable YoY

Mobile data revenue increased to 55.7% of service revenue

Postpaid customer base increased 45,000

• Fixed services contributed 15.7% of service revenue

Fibre customer base grew 29,000 YoY to 189,000

Corporate segment made up 10% customer base and 50% of

fixed services revenue

Performance

highlights

for 2017

Financial

highlights

for 2017

• Proposed final dividend of 6.2 cents per share Dividend

3

Financial highlights

Performance highlights

Outlook

Agenda

4

Revenues (S$m)

FY2017 vs FY2016

• Handset sales (-4.9%):

Lower sales volume and

selling price

• Fixed services revenue

(+24.5%): Higher

customer base &

corporate segment

projects contribution

• International call

revenue (-8.9%): Lower

retail revenue

• Mobile revenue (+0.4%):

Higher postpaid revenue

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

Service revenue (S$m) 201 202 205 207 215 806 828

158 158 160 160165

640642

15 14 14 14 14

61 56

27 30 31

45

36

104130

113

59 47

32

92

255 243

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

Handset sales

Fixedservices

Internationalcall services

Mobileservices

2.1%-

22.1%+

314

261 252

307

252

1,061 1,071

+1.0%

5

Cost of sales (S$m)

FY2017 vs FY2016

• Handset costs (-1.2%):

Lower sales volume

• Wholesale costs of

fixed services

(+24.4%): Higher

customer base

• Other costs (+10.9%):

Higher project costs

related to large

projects secured

during the year 1010

149

9

4556

10

14

119 9

3337

15

10

11

10

13

3939

81

6972

119

135

344 340

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

Handset costs

Traffic Expenses

Other costs

Wholesale costsof fixed services

50.5%+

103

+2.2%

102

167

153

462472

113

-8.2%

6

Other operating and interest expenses (S$m)

FY2017 vs FY2016

• Depreciation &

amortisation

expenses (+2.5%):

Higher fixed asset

base

• Staff costs (+6.6%):

Salary increment

and bonus payout

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

Interest expense (S$m) 2.0 2.0 2.1 2.9 2.9 6.7 9.9

2 24 2

7

8 95

8

2 5 522 19

86

5 8

22

29 2898 88

8

31 332222

3233

2

86 8633

3030 3029

115

123

32

2320

3334

127

130

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

Depreciation &amortisation

Staff costs

Facilities expenses

Leased circuit costs

Other G&Aexpenses

Advertising &promotion

Doubtful debtprovision

+3.4%

5.7%+

110

101

419428

107107114

+2.2%

7

EBITDA & net profit after tax

EBITDA (S$m) & margin

on service revenue

Profit after tax (S$m) & margin

on service revenue

797473 76

72

302312

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

+3.3%

-1.5%

-3.1%

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

EBITDA margin

(on service revenue)35.8% 39.2% 35.9% 36.5% 34.6% 38.7% 36.5%

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

PAT margin

(on service revenue)15.8% 18.0% 15.9% 15.8% 14.4% 18.6% 16.0%

313332 3236

133

150

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

-2.5%

-5.4%

-11.5%

8

Capex & Cash flows

Capex (S$m)

Operating and free cash flows (S$m)

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

Operating cash

flow50 48 60 107 44 335 259

41

50

27 28

47

141

151

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

+13.2%

7.6%+

69.8%+

917 13

80

(3)

130

107

20

64

20

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

Free cash flow

Spectrum rights payment

-17.6%

-138.9%

-104.3%

9

Financial leverage

S$m FY2016 FY2017 Change

Cash & cash equivalents 11.0 46.5 321.9%

Net debt 390.0 403.5 3.5%

Net assets 403.4 428.9 6.3%

Net debt/equity (x) 1.0 0.9 -2.7%

Net debt/EBITDA (x) 1.2 1.3 6.8%

EBITDA/Interest (x) 46.2 30.6 -33.8%

Net assets per share (cents) 43.4 46.4 6.9%

EPS - diluted (cents) 16.1 14.3 -11.2%

10

Financial highlights

Performance highlights

Agenda

Outlook

11

Mobile customers

Postpaid customer base (‘000) Prepaid customer base (‘000)

1,247 1,271 1,267 1,272 1,292

4Q16 1Q17 2Q17 3Q17 4Q17

+45

772 775 777736 747

4Q16 1Q17 2Q17 3Q17 4Q17

25-

12

Postpaid mobile

Postpaid mobile revenue (S$m) Postpaid monthly ARPU (S$)

145142 151144142

570 582

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

+5.8%

+3.5%

+2.2%

49.5 48.6 48.5 48.3 49.6 50.3 48.7

55.8 57.155.4 56.4 55.8 55.8

58.0

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

ARPU allocated to handset sales

+1.8%

-1.2%

-3.8%

13

Prepaid mobile

Prepaid mobile revenue (S$m) Prepaid monthly ARPU (S$)

11.5 11.0 10.5 10.8 10.5

12.2

10.7

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

-2.8%

8.7%-

12.3%-

16 15 1515 15

70

60

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

-10.8%

-4.2%

-14.3%

14

Mobile market share

Overall market share* Postpaid & Prepaid market share*

* - Based on published statistics available at the time of submission

23.8% 24.0% 24.1% 24.0% 24.0%

4Q16 1Q17 2Q17 3Q17 Nov-17

22.5% 22.6% 22.9% 22.3% 22.0%

4Q16 1Q17 2Q17 3Q17 Nov-17

Prepaid

24.8% 24.9% 25.0% 25.1% 25.2%

4Q16 1Q17 2Q17 3Q17 Nov-17

Postpaid

15

Postpaid mobile

Acquisition cost

per postpaid customer (S$) Monthly churn rate (postpaid)

Note: Cash basis

1.2%

1.0%

1.7%

1.3%1.2%

1.0%

1.3%

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

438

366379 378

473

369

404

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

+8.0%

25.0%+

9.5%+

16

Tiered data plans & mobile data contribution

Tiered data plans Data contribution

to mobile service revenue

77% 78% 79% 80% 81%

28% 27%31%32% 33%

4Q16 1Q17 2Q17 3Q17 4Q17

Postpaid customers on tiered data plans

Percentage of tiered data plan customers exceedingprimary data bundles

54.8% 55.1% 55.5% 55.9% 56.1%

54.0%

55.7%

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

17

Fibre monthly ARPU (S$) Fibre customer base (‘000)

Fixed services

160168

176 182 189

4Q16 1Q17 2Q17 3Q17 4Q17

+29

43.1 43.4 42.7 42.945.0 45.1

43.5

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

+4.4%

4.9%+ 3.5%-

18

International call services

International retail minutes

(million mins)

International call services

revenue (S$m)

14 14 1415

14

61

56

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

-9.2%

8.9%-

1.3%+137

176187

162 155

631

696

4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17

-26.8%

-11.8%

-9.4%

19

Financial highlights

Performance highlights

Outlook

Agenda

20

Outlook

• Telco to Smart Communications Provider

Scale up ICT capabilities and solutions over connectivity

To capture opportunities in IoT and Smart Nation

Expand portfolio of digital services

• Digitalisation of customer touch-points and operations

Address needs of digital natives and tech-savvy segment

Improve efficiency

On-going

Transformation

• Superior experience across all touch-points

Built on scaled-up digital capabilities

• Enhance products and services

Innovative and unique offerings

• Improve value propositions

Cater to customers’ evolving needs

Voice to data-centric plans

• Superior network quality

Attract and

Retain

Customers

21

Outlook and estimates

• Cost effective network enhancement with optimal spectrum

utilisation

• Site densification through Small Cells/WiFi deployment

Augment network capacity at traffic hotspots

Re-use existing frequency and avoid costly antenna

upgrade costs

Work on existing devices

Form foundation for future 5G dense cell grid architecture

• Leapfrog to 5G and avoid costly intermediate upgrades

• Continue exploring deeper collaboration on network sharing

Expanded from common antenna solution to joint upgrading

of 4.5G indoor antenna systems at large buildings

Network

Evolution

• Capex to be around S$120m

• Dividend policy

Maintain 80% payout ratio

FY2018

22

Thank you