ENABLING A DIGITAL FUTURE ENABLING A DIGITAL Annual Report 2017 FUTURE INNOVATING PARTNERING DIGITALISING Annual Report 2017 CONTENTS BUSINESS REVIEW OUR BUSINESS 02 M1 is Singapore’s most vibrant and At a Glance 08 dynamic communications company, Performance Highlights 10 providing mobile and fixed services Business Model to over 2 million customers. Since 12 INNOVATING the launch of commercial services in Letter to Shareholders 14 1997, M1 has achieved many firsts, Operating Review 18 including the first operator to offer Financial Review 27 nationwide 4G service, as well as ultra high-speed fixed broadband, GOVERNANCE fixed voice and other services on the Next Generation Nationwide Broadband Network (NGNBN). With Board of Directors 32 a continual focus on network quality, Senior Management 36 customer service, value and Particulars of Directors 42 innovation, M1 links anyone and Particulars of Senior Management 49 anything; anytime, anywhere. Corporate Governance Summary 50 Corporate Governance Report 57 04 For more information, visit Investor Relations 80 www.m1.com.sg SUSTAINABILITY REPORT PARTNERING OUR VISION Board Statement 84 Introduction To be the leader in communications, 85 distinguished by innovativeness and Our Business 94 dedication to our customers, people Our People 99 and shareholders. Our Community 103 Our Environment 106 GRI Content Index 109 OUR MISSION FINANCIALS Linking anyone and anything; anytime, anywhere. Financial Statements 113 ADDITIONAL INFORMATION 06 Major Properties 177 Statistics of Shareholdings 178 Corporate Information 180 DIGITALISING INNOVATINGThe telecommunications Largest Wireless@SG Network sector powers digital NB-IoT More than 10,000 access points 4.5G transformation across Southeast Asia’s HetNet industries, connecting cities, first commercial nationwide NB-IoT (Narrowband Internet of More than 300 small people and machines; Things) network offers cell/WiFi network deployed anytime, anywhere. As a hyper-connectivity to millions at high-traffic hotspots of devices, sensors, and services, leading communications to catalyse smart solutions, service provider, we innovation, and support Singapore’s transformation Next-Generation continue to innovate into a Smart Nation to bring customers new Unified Operations technologies, fresh Monitoring Centre Real-time information for monitoring solutions and quality of network services, IT infrastructure, services to cater to their IoT and digital solutions in private evolving needs in the and public clouds digital era From 300Mbps to 10Gbps service plans to satisfy The world’s first symmetrical 10Gbps connectivity light users, hardcore gamers, SOHO dwellers, with ultra fast upload and download UNIQUE enterprises and more speeds islandwide PROPOSITIONS M1 DATA PASSPORT M1 MOBILE GUARD – ASIA’S FIRST NETWORK-BASED Unique roaming service MOBILE MALWARE DETECTION SOLUTION with affordable rates for customers to use their local data bundle overseas he smartphone has become an essential part of users’ lives, be it to make financial transactions or as a store for personal and 400% Tprofessional information. To help increase in customers protect themselves from smartphone cyber threats, M1 Mobile Guard is a infections network-based anti-malware solution in 2016* S$10 56 that offers always-on protection in a a month popular convenient and affordable way onwards destinations * Nokia Malware Report worldwide (March 2017) 02 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 03 PARTNERINGOur partnerships with leading technology and digital solution companies enable us to jointly develop and acquire new approaches and capabilities to capture opportunities in the digital economy NB-IoT ENERGY MANAGEMENT AND UTILITIES METERING SOLUTIONS WITH ANACLE and Anacle jointly offer NB-IoT Energy Management and Utilities Metering solutions. Power and water consumption can be intelligently M1collected and efficiently processed through our NB-IoT network and presented sensibly to end users through smart use of data analytics. This allows our commercial, industrial and even residential customers to effectively monitor their energy usage and at the same time, facilitates sustainable planning and reduction of carbon footprint by planning agencies ADVANCED DATA ANALYTICS PROFILE AND TRANSPORTATION Vicinity Crowd BEHAVIOUR DATA ANALYTICS 0 2000 4000 6000 WITH TERALYTICS VIDEO ANALYTICS TO IMPROVE WITH TRAKOMATIC COMMUTERS’ FOR RETAIL INDUSTRY LIVES M1, in partnership with Trakomatic, enables retail businesses and shopping malls to discover ways With a growing population consumers interact in a physical retail environment and the pursuit of a car-lite using video and sensor technology. These environment in Singapore, innovative video analytics can be applied to video there is a need to improve the feeds from M1’s digital signage and retailers' shop efficiency and responsiveness front CCTV. Consumer footfall, browsing and of public transportation. M1 purchasing patterns, as well as other consumer and Teralytics teamed up to profiles can be analysed and provide useful and use telco-enabled data analytics actionable insight to Retail and F&B Outlets and to empower day-to-day Shopping Mall operators. This enhances their operational effectiveness marketing and advertising capabilities, shopfront and forward planning of public WiFi Mobile Data mercantile displays and attractiveness based on transport networks consumer preferences and trends 04 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 05 MY M1 APP From monitoring data usage, subscription of value-added services to bill payments, customers can easily manage their services with M1 from their mobile devices DIGITALISINGFrom driving online and app services, advancing in-house data analytics capability, to ongoing paperless and network virtualisation initiatives, we are accelerating our journey into a digital society ASK MINDY John 98888888 ONLINE EMBRACING MY SIGN-UP AND Account 888888888 View Bill M1 APP DIGITALISATION RECONTRACT UPGRADE 20 kWhDate of bill: 11 Jan 2018 October 7, 2017 Payable Amount $54.10 Your Payment $54.10 M1is a forward-looking company at the forefront Pay Bill of digitalisation. We Upon bill payment, our records will be promote a culture of updated in a few minutes. continuous innovation COMPANY-WIDE with regular reviews NETWORK ELECTRONIC to improve operational VIRTUALISATION M1'S DOCUMENT MANAGEMENT efficiencies, business DIGITALISING Past months' bills Sign Up For eBill systems and customer JOURNEY experience. Ongoing December $56.85 digitalisation efforts will further enhance November $56.60 our customer touch- points, reduce costs and October $65.95 shorten time-to-market of new products and services, providing a Account Usage Roaming Bill More seamless digital experience for M1 M1 our customers REMIT MOBILE GUARD eBILLS AND PAPERLESS M1 REMIT TRANSACTIONS With our mobile remittance service, BENEFITS customers can securely transfer money to major banks and cash pick-up Increased Activities Environment Seamless Customer Faster outlets in 9 countries on their mobile on Digital Channels Cost Savings Footprint Reduction Experience Time-to-Market phones anytime, anywhere EXPANDED DIGITAL CHANNELS • 56% of total transactions Digitalisation of shops and Through driving adoption From simple online With more streamlined were made online in 2017 customer service channels of eBills and paperless ordering of the latest operations and increased • 78% of smartphone led to higher efficiency and transactions at all shops, handsets to a host digital capabilities, there customers use My M1 App headcount reduction we have greatly reduced of seamless and easy is greater agility in to manage their services our paper usage and self-help digital services, launching new products environmental impact customers enjoy greater and services No More Queues • 2.8 times increase in convenience and Remit funds on mobile devices My M1 App bill payment reduced wait times amount in 2017 06 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 07 AT A GLANCE WHAT WE DO M1 offers a wide range of mobile and fixed communications services to consumers and corporate customers CONSUMER CORPORATE Mobile Fixed Value-Added Services Total Fibre Broadband, Corporate Mobile ICT, Digital and Data IoT Solutions • Broad range of postpaid • Fibre broadband • Host of mobile and fixed Communications Managed Services • Enterprise mobile Analytics Solutions • IoT connectivity and prepaid mobile connectivity services with value-added services to • Mobile, fixed and a and Cloud Services plans with attractive • Integrated service solutions with services enabling up to 10Gbps speeds, voice, cater to customers’ suite of converged • Up to 10Gbps data and roaming provider with Southeast Asia’s first customers to call, message, WiFi, home network and evolving needs, including communication symmetrical PON packages end-to-end nationwide NB-IoT access internet and apps, security solutions mobile remittance, services to support connectivity services service delivery network stream music and videos, cybersecurity protection, the needs of our • Unified • Advanced analytics, • Partnerships in whether at home or and My M1 App for corporate customers, Communications data management, offering end-to-end travelling overseas account-related services who range from • Wireless@SG data visualisation, IoT solutions across small businesses to • SIP Trunk and data discovery sectors such as large multinational • Virtual server solutions Retail, Fintech, companies and