Annual Report 2016
Annual Report 2016
During the fourth year of our business transformation, we continued to communicate the value of strategic initiatives we had taken in the marketplace. With a good mix of qualitative and quantitative information, our discussions helped investors to better assess our performance and disclosures.
The management and Investor Relations (IR) team engaged more than 400 investors in 230 meetings and conference calls to discuss the Group’s business strategy, operational and financial performance and prospects. We also participated in local and overseas investor conferences and roadshows, covering Hong Kong, Kuala Lumpur, the US and Europe. These platforms are an efficient and effective means of promoting Singtel and facilitating communication with existing and potential new investors.
In addition, we held briefings for major corporate announcements, such as our acquisition of Trustwave in 2015. The same messages about the acquisition were also consistently communicated during our regular calls and investor conferences. We received positive feedback from investors, who generally agreed that the acquisition boosts our cloud-based services and brings synergies to our enterprise business.
To give investors a better understanding of our business and operations, we hold an annual Investor Day. On this day, senior management of Singtel and Optus, as well as our regional mobile associates, share detailed insights into their businesses and respond to queries. The event typically attracts more than 50 investors and analysts, who appreciate the open interaction with management across the Group’s entities, as well as the opportunity to gain insights from industry leaders.
We also organise site visits to our business facilities, giving investors a first-hand experience of our operations and technical capabilities. This year, investors visited the Singtel-FireEye Advanced Security Operations Centre and NCS Centre for Solutions for Urbanised Future, which showcased our cyber security capabilities and Smart Nation solutions respectively.
We nurture and maintain strong links with sell-side research analysts and are well covered by more than 20 analysts based in Australia, Hong Kong, Malaysia, Singapore 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.
Retail investors are also an important part of our outreach efforts and the IR team continues to engage them outside of our general meetings. We have renewed our long-term sponsorship of the Securities Investors Association (Singapore) (SIAS) Investor Education Programme, hosting events such as the annual Singtel-SIAS dialogue. In addition, we address the concerns of retail investors through email and telephone enquiries.
Each year, we commission an independent study to gather investors’ perceptions of our business. The study, comprising in-depth interviews with approximately 50 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 for improvement in communications and disclosures. In the latest study, investors commented that they appreciate our geographically diverse operations and the balance between yield and growth characteristics. They also gave feedback on Singtel’s move into the digital space and the potential for mobile data in regional markets.
As good corporate governance also plays a vital role in shaping investor perceptions of the integrity, transparency, accountability and efficiency of a company, we regularly engage with corporate governance specialists. This allows us to keep abreast of the latest developments and ensures that we adopt best practices in key areas such as disclosure, board structure, shareholder rights and remuneration.
The Singtel IR website is the primary source for corporate information, financial data and significant business developments for the investment community. All new, material announcements are made available on the IR website immediately after they are released on the Singapore Exchange to ensure fair, equal and prompt dissemination of information. In addition, we continuously review the level of disclosure, to align it with global best practices and take into account new business initiatives.
During our quarterly financial results announcements, we issue a comprehensive set of materials, including detailed financial statements, management discussion and analysis and presentation slides. Our management also hosts an investor conference call for analysts and investors on the day of our results announcement. A recording of the investor presentation webcast is posted on the IR website on the day we release our results. This is followed by a transcript of the conference call on the next work day.
As at 31 March 2016, Temasek Holdings (Private) Limited remained our largest shareholder, with 51% of issued share capital. Other Singapore shareholders held approximately 19%. In terms of geographical distribution, the US/Canada and Europe accounted for approximately 15% and 11% of issued share capital respectively.
