Caveat Emptor

Questions to be raised at AGM 1) Is there any actions / engagement from Singtel with companies to grow the iot business, apart from the public sector? Since you are one of the primary providers? How will you compete with m1? 2) There is a large increase in Sales and general expenses as well as capex. Is there any measures in place to control them as the businesses grow? 3) What will the future of digital marketing be like (Amoebee)?  Will it be part of the core business or will you be spinning it off?  How do you compete with major players facebook / google?  4) Operating cash flow has been declining. Free cash flow has improved due to netlink iPo.  Can the company support the dividend in the next 3-5 years?  Apart from bank lending, will there be a need to issue preference share / debt instruments? Will it be issued to the retail sector?  5) For the cybersecurity business, will you all be targeting the retail or the corporate sector? How will you deal with competition?

High level overview Singtel is one of the largest holdings in my pip squeak portfolio. I have started averaging down on it since it has dropped from its previous highs to around SGD 3.70, as I believe the company is  fundamentally sound despite the threat of the forth telco. I have started accumulation at the occasional dips /bears after considering technical analysis and resistance lines, as well as the quarterly financial reports. Singtel is a company that most people will view as boring and a dumb pipe, while in fact it has been restructuring to a digital business and engaged with exciting business prospects. Singtel has been actively looking out for opportunities and threats. Presently, due to the emergence of emerging technologies such as whatsapp, we-chat as well as the TPG telco, it is diversifying out of sunset business such as traditional voice call, SMS and MMS business. It is trying to leverage on its existing infrastructure and doing wholesale

Exposure 30% SG, threat of TPG 22% Australia, Australia regulatory review 48% regional, India price war Lines of business 36% mobile comm, expect to be declining especially in voice and roaming 20% data and internet, increasing profits due to change in consumer lifestyle and appetite. 18% Info comm tech, increasing business in cloud computing and software as a service 12% equipment, established distribution network of handsets, apple iPhone and google Pixar phone 3% others Growth areas Cyber training Mobile payments (Singtel dash )(network externalities) (airtel india payment bank license) (phillipines globe) Shows (Philippines, singapore,  (Hollywood, Netflix, movies) Data appetite (forced obseletion of 3G 12GB, high speed 5G data) Sports channel Cyber security (Japan, Australia, phillipines, nus Singapore) Digital marketing Internet of things Strategy Simon Israel, Chua sock koong Diversification out of stagnant mobile communications to a technology company. Key

Stock Name Mode Qty Avg Cost Price Total Cost Percentage ASCENDAS-ITRUST CSH 2500 1.13 ASCENDAS-ITRUST 2,812.50 20.5554540471 ASCENDAS REIT CSH 1000 2.25 ASCENDAS REIT 2,250.00 16.4443632377 HYFLUX CSH 4000 0.57 HYFLUX 2,260.00 16.5174492965 RAFFLES MEDICAL CSH 2000 1.31 RAFFLES MEDICAL 2,610.00 19.0754613557 SINGTEL CSH 1000 3.75 SINGTEL 3,750.00 27.4072720629 STI ETF (Philips) Philips DCA 1859 3.047 STI ETF (Philips) 5664.373 41.3986698337 Singtel Maybank Cust 300 3.68 Singtel 1109.19 8.1066325598 STI ETF Maybank DCA 118 3.25 STI ETF 390.16 2.8515256715 Silverlake Axis Maybank Cust 2000 0.59 Silverlake Axis 1201.21 8.7791704732 Portfolio Book Value

My interpretation of the telecom war in Singapore 1) Development of unlimited data plans and price competitive sim20 plans from all 3 telecoms, for competing against each others as well as to crowd out the new telecoms main product offerings. TPG is known for its affordable broadband packages in Australia, with prices beating those of its competitors. The firm plans to start offering services here in early 2018 and establish a mobile network with nationwide coverage by September in the same year. On top of its S$105 million winning bid for the spectrum rights to become Singapore’s fourth telco, it expects to pump in an extra S$200 to S$300 million in capital investment, to get its nationwide mobile network running. The company expects to become “EBITDA (earnings before interest, tax, depreciation and amortisation) positive” when it snags a market share of between 5 and 6 per cent, which it believes would be reached “within a short period of time”. MyRepublic was targeting a