Full Year 2026 Tuas Ltd Earnings Call

September 23, 2026

Speaker #1: Thank you for standing by, and welcome to the Tuas Limited full-year Financial Year 2026 results call. All lines have been placed on mute to prevent any background noise.

Operator: Thank you for standing by, and welcome to the Tuas Limited Full Year Financial Year 2026 results call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during Q&A time, simply press star, followed by the number one on your telephone keypad, and to withdraw your question, press the star one again. For operator assistance throughout the call, please press star zero. Finally, I would like to advise all participants that this call is being recorded. I would now like to welcome Richard Tan, CEO, to begin the conference. Richard, over to you.

Operator: Thank you for standing by, and welcome to the Tuas Limited Full Year Financial Year 2026 results call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a Q&A session. If you would like to ask a question during Q&A time, simply press star, followed by the number one on your telephone keypad, and to withdraw your question, press the star one again. For operator assistance throughout the call, please press star 0. Finally, I would like to advise all participants that this call is being recorded. I would now like to welcome Richard Tan, Chief Executive Officer, to begin the conference. Richard, over to you.

Speaker #1: After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during Q&A time, simply press star (*) followed by the number 1 on your telephone keypad. To withdraw your question, press star (*) and 1 again.

Speaker #1: For operator assistance throughout the call, please press *0. And finally, I would like to advise all participants that this call is being recorded.

Speaker #1: I'd now like to welcome Richard Tan, CEO, to begin the conference. Richard, over to you.

Speaker #2: Good morning, and thank you for joining us. I'm Richard Tan, CEO of Cymbal Telecom, the principal operating entity of the Tuas Group. Also on the call today are Mr. David Teo, Executive Chairman of Tuas Limited; Tony Moffat, Company Secretary of Tuas Limited; and Mr. Harry Wong, CFO of Cymbal Telecom.

Richard Tan: Good morning, and thank you for joining us. I am Richard Tan, CEO of Simba Telecom, the principal operating entity of the Tuas Group. Also on the call today are Mr. David Teoh, Executive Chairman of Tuas Limited, Tony Moffatt, Tuas Limited Company Secretary, and Mr. Harry Wong, CFO of Simba Telecom. It is a pleasure to present the financial results for Tuas Limited for the fiscal year ended 31 July 2026, covering the period which started 1 August 2025. Let me briefly outline today's agenda, as shown on slide 2. We will begin with Harry, who will walk through the financial performance and key metrics for the year. I will then provide an update on our operational progress, strategic initiatives, and outlook for FY27. We will conclude with a Q&A session to address any questions you may have. Please note that all financial figures discussed today are denominated in Singapore dollars.

Speaker #2: It is a pleasure to present the financial results for Tuas Limited for the fiscal year ended July 31, 2026, covering the period which started August 1, 2025.

Speaker #2: Let me briefly outline today's agenda as shown on slide 2. We'll begin with Harry, who will walk through the financial performance and key metrics for the year.

Richard Tan: We will begin with Harry, who will walk through the financial performance and key metrics for the year. I will then provide an update on our operational progress, strategic initiatives, and outlook for FY27. We will conclude with a Q&A session to address any questions you may have. Please note that all financial figures discussed today are denominated in Singapore dollars. With that, I will now hand over to Harry to take us through the numbers.

Speaker #2: I'll then provide an update on our operational progress, strategic initiatives, and outlook for FY27. We'll conclude with a Q&A session to address any questions you may have.

Speaker #2: Please note that all financial figures discussed today are denominated in Singapore dollars. With that, I'll now hand over to Harry to take us through the numbers.

Richard Tan: With that, I will now hand over to Harry to take us through the numbers.

Speaker #3: Good morning, everyone. My name is Harry Wong, CFO of Cymbal Telecom. I will be presenting the financials of the Tuas Group. On slide 3, you'll see that we achieved a notable improvement in the financial results during FY26 when compared to FY25.

Harry Wong: Good morning, everyone. My name is Harry Wong, CFO of Simba Telecom. I will be presenting the financials of the Tuas Group. On slide 3, you will see that we achieved a notable improvement in the financial results during FY26 when compared to FY25. Revenue for the year is SGD 187.6 million, up from SGD 151.3 million last year. Underlying EBITDA increased 22%, up from SGD 68.4 million in the prior year to SGD 83.7 million. We achieved an underlying full-year net profit after tax of SGD 29.6 million, which was a significant improvement on the prior year's profit of SGD 6.9 million. On slide 4, we show the growth in revenue and EBITDA for each of the last four halves. Revenue increased 24% in FY26. EBITDA margin has been stable year on year at 45% of revenue. Gross ARPU for the year was SGD 9.42.

Speaker #3: Revenue for the year is $187.6 million, up from $151.3 million last year. Underlying EBITDA increased 22%, rising from $68.4 million in the prior year to $83.7 million.

Speaker #3: We achieved an underlying full-year net profit after tax of $29.6 million, which was a significant improvement on the prior year's profit of $6.9 million.

Harry Wong: We achieved an underlying full-year net profit after tax of SGD 29.6 million, which was a significant improvement on the prior year's profit of SGD 6.9 million. On slide 4, we show the growth in revenue and EBITDA for each of the last four halves. Revenue increased 24% in FY26. EBITDA margin has been stable year on year at 45% of revenue. Gross ARPU for the year was SGD 9.42.

Speaker #3: On slide 4, we show the growth in revenue and EBITDA for each of the last four halves. Revenue increased 24% in FY26. EBITDA margin has been stable year on year at 45% of revenue. Growth upward for the year was 9.42. The key drivers of the year-on-year EBITDA uplift continue to be increased subscribers and expanded plan mix catering to different customers' needs.

Harry Wong: The key drivers of the year-on-year EBITDA uplift continued to be increased subscribers and expanded plan mix, catering to different customers' needs. We are satisfied with the way our products are being embraced by customers in a very competitive market. Slide five shows our sustained mobile subscriber growth over the last two years. As of 31 July 2026, we have about 1.4 million subscribers, representing a 16% increase over the past year. We estimate SIMBA's mobile subscriber market share to be around 15%. Slide six shows the broadband subscriber base. As of 31 July 2026, we have approximately 62,000 active services, adding 36,000 subscribers over the year. Despite this growth, we still hold a relatively small share of the home broadband market, so increased market share in the fixed broadband continues to be a potential growth for SIMBA.

Speaker #3: We are satisfied with the way our products are being embraced by customers in a very competitive market. Slide 5 shows our sustained mobile subscriber growth over the last two years.

Speaker #3: As of 31 July 2026, we have about 1.4 million subscribers, representing a 16% increase over the past year. We estimate Cymbal's mobile subscriber market share to be around 15%.

Speaker #3: Slide 6 shows the mobile and broadband subscriber base. As of 31 July 2026, we have approximately 62,000 active services, adding 36,000 subscribers over the year.

Speaker #3: Despite this growth, we still hold a relatively small share of the home broadband market. So increased market share in fixed broadband continues to be a potential growth opportunity for Cymbal.

Speaker #3: We proceed to the cash flow on slide 7. Apologies for the typo in the date reference; it should be referring to the year ending 31 July 2026.

Harry Wong: We proceed to the cash flow on slide seven. Apologies on the typo for the date reference. It should be referring to the year ending 31 July 2026. We continue to show positive cash flow. Opening cash and term deposit balance was SGD 80.7 million. Net cash generated from operating activities was SGD 91.3 million. The main cash outflow comes from acquisition of plant and equipment and intangible assets of SGD 39.3 million. Largely, mobile network and some fixed broadband infrastructure. We raised funds from the capital market of SGD 360 million to support the M1 acquisition. This brings the end cash and term deposits to SGD 498.8 million as of 31 July 2026. Slide eight shows the movement in cash from operations and cash CapEx over the past five financial years. We are quietly proud of our track record showing efficient deployment of capital, generating strong cash returns for the company.

Speaker #3: We continue to show positive cash flow. Opening cash and term deposit balance was $80.7 million. Net cash generated from operating activities was $91.3 million.

Speaker #3: The main cash outflow comes from the acquisition of plant and equipment, as well as intangible assets, totaling $39.3 million, largely for mobile network and some fixed broadband infrastructure.

Harry Wong: Largely, mobile network and some fixed broadband infrastructure. We raised funds from the capital market of SGD 360 million to support the M1 acquisition. This brings the end cash and term deposits to SGD 498.8 million as of 31 July 2026. Slide eight shows the movement in cash from operations and cash CapEx over the past five financial years. We are quietly proud of our track record showing efficient deployment of capital, generating strong cash returns for the company. With this, I will let Richard proceed with the business updates.

Speaker #3: We raised funds from the capital market of $316 million to support the M1 acquisition. This brings the end cash and term deposits to $498.8 million.

Speaker #3: As of 31 July 2026, Slide 8 shows the movement in cash from operations and cash capex over the past five financial years. We are quietly proud of our track record showing efficient deployment of capital, generating strong cash returns for the company.

Speaker #3: With this, I will let Richard proceed with the business updates.

Harry Wong: With this, I will let Richard proceed with the business updates.

Speaker #2: Thank you, Harry. The Singapore mobile market remains highly dynamic, and we are continuing our capital expenditure investments focused on network densification for better performance and capacity, as well as expanding our 5G footprint.

Richard Tan: Thank you, Harry. The Singapore mobile market remains highly dynamic, and we are continuing our capital expenditure investments focused on network densification for better performance and capacity and to expand our 5G footprint. On the technology front, our mobile core upgrades are fully complete, while network planning for our 5G Standalone transition remains ongoing. We are also actively transitioning to a new cloud-based business support system, or BSS, to enhance customer experience and improve cost efficiency. The network infrastructure investments are directly reflected in network performance. Looking at the OpenSignal mobile network experience reliability metrics covering the period April to June 2026, SIMBA achieved an outstanding reliability score of 909 points out of 1,000, placing us second in the market. OpenSignal is a third-party investigating agency who reports on network performance.

Speaker #2: On the technology front, our mobile core upgrades are fully complete, while network planning for our 5G standalone transition remains ongoing. We are also actively transitioning to a new cloud-based business support system, or BSS, to enhance customer experience and improve cost efficiency.

Speaker #2: The network infrastructure investments are directly reflected in network performance. Looking at the OpenSignal mobile network experience reliability metrics covering the period April to June 2026, Cymbal achieved an outstanding reliability score of 909 points out of 1,000.

Speaker #2: Placing us second in the market. OpenSignal is a third-party investigative agency that reports on network performance. Moving to fiber broadband, we continue to roll out enhancements to deliver 10 gigabits per second connectivity across homes and businesses.

Richard Tan: Moving to fiber broadband, we continue to roll out enhancements to deliver 10 Gb per second connectivity across homes and businesses. Our product offerings now include exclusive Wi-Fi 7 premium router packages that deliver the best value in the industry, as well as a market-leading 10 Gb per second business package priced at SGD 139 per month with GST. The value proposition for SIMBA fixed broadband products is backed by top-tier performance. According to Speedtest Intelligence, which is another third-party reporter, data collected from January to June 2026 shows SIMBA Telecom leading all providers in Singapore for network consistency with a market-topping consistency score of 96.2%, outpacing our major competitors. From this and the previous slide, it is clear that SIMBA engineers its networks for both reliability and consistent connectivity, and this is appreciated by our customers.

Speaker #2: Our product offerings now include exclusive Wi-Fi 7 premium router packages that deliver the best value in the industry, as well as a market-leading 10 gigabit per second business package, priced at SGD $139 per month with GST.

Speaker #2: The value proposition for Cymbal fixed broadband products is backed by top-tier performance. According to Speedtest Intelligence, which is another third-party reporter, data collected from January to June 2026 shows Cymbal Telecom leading all providers in Singapore for network consistency, with a market-topping consistency score of 96.2%.

Speaker #2: Outpacing our major competitors. From this and the previous slide, it is clear that Cymbal engineers its networks for both reliability and consistent connectivity, and this is appreciated by our customers.

Speaker #2: Next, I would like to address the status of the proposed M1 acquisition. As you will know, the acquisition could not complete without IMDA regulator. Following the announcement of the proposed transaction, IMDA notified Cymbal of its designation as a critical information infrastructure operator on 24 September 2025.

Richard Tan: Next, I would like to address the status of the proposed M1 acquisition. As you well know, the acquisition could not complete without IMDA. Following the announcement of the proposed transaction, IMDA notified SIMBA of its designation as a critical information infrastructure operator on 24 September 2025. The consolidation application was formally accepted by IMDA five days later. On 9 February 2026, the Ministry of Digital Development and Information publicly disclosed for the first time that all four Singapore telcos were targeted by advanced persistent threat groups. Confirmation was provided that no sensitive data was exfiltrated and core systems remain uncompromised. After that, the implications of the merger on national cybersecurity issues generally became an item under consideration by the IMDA in the consolidation application. On 17 May 2026, IMDA announced that it had suspended its review of the proposed consolidation pending an investigation.

Speaker #2: The consolidation application was formally accepted by IMDA five days later. On February 9, 2026, the Ministry of Digital Development and Information publicly disclosed for the first time that all four Singapore telcos were targeted by advanced persistent threat groups.

Speaker #2: Confirmation was provided that no sensitive data was exfiltrated, and core systems remain uncompromised. After that, the implications of the merger on national cybersecurity issues generally became an item under consideration by the IMDA in the consolidation application.

Richard Tan: Confirmation was provided that no sensitive data was exfiltrated and core systems remain uncompromised. After that, the implications of the merger on national cybersecurity issues generally became an item under consideration by the IMDA in the consolidation application. On 17 May 2026, IMDA announced that it had suspended its review of the proposed consolidation pending an investigation.

Speaker #2: On 17 May 2026, IMDA announced that it had suspended its review of the proposed consolidation pending an investigation. Because the sales and purchase agreement reached its contractual long stop date of 21 May 2026 without regulatory clearance, the transaction lapsed and did not proceed.

Richard Tan: Because the sales and purchase agreement reached its contractual long-stop date of 21 May 2026 without regulatory clearance, the transaction lapsed and did not proceed. Regarding regulatory compliance, SIMBA has been fully cooperating with the IMDA investigation. Adherence to regulatory standards remains a top priority across all our operations, and Tuas will await formal announcements from the IMDA before providing further public comments. Looking ahead, our strategic priorities focus on broad-based revenue growth by leveraging our value proposition and network infrastructure, which is well-established. We will maintain our focus on product innovation and services enhancement. More importantly, we will not lose sight of the value we have brought to the market by driving competition while providing reliable and dependable services.

Speaker #2: Regarding regulatory compliance, Cymbal has been fully cooperating with the IMDA investigation. Adherence to regulatory standards remains a top priority across all our operations, and Tuas will await formal announcements from the IMDA before providing further public comment.

Speaker #2: Looking ahead, our strategic priorities focus on broad-based revenue growth by leveraging our value proposition and well-established network infrastructure. We will maintain our focus on product innovation and service enhancement.

Speaker #2: More importantly, we will not lose sight of the value we have brought to the market by driving competition while providing reliable and dependable services.

Speaker #2: We expect combined mobile and broadband capex for FY27 to sit between $50 million and $55 million. This capex will be required for a range of initiatives, not the least of which is the standalone 5G network and other network upgrades.

Richard Tan: We expect combined mobile and broadband CapEx for FY27 to sit between 50 and 55 million. This CapEx will be required for a range of initiatives, not the least of which is the 5G Standalone network and other network upgrades. In addition to that business-as-usual CapEx, incremental CapEx and OpEx earmarked for cybersecurity compliance are projected to total somewhere between SGD 15 to SGD 30 million in FY27. I will now hand back to the moderator for the Q&A session.

Speaker #2: In addition to that business-as-usual capex, incremental capex and opex earmarked for cybersecurity compliance are projected to total somewhere between $15 million to $30 million in FY27.

Speaker #2: I will now hand back to the moderator for the Q&A session.

Speaker #1: Thank you, Richard. As mentioned, we will now begin the Q&A session. For those listening by phone who would like to ask a question, please press star followed by 1 on your telephone keypad to raise your hand and join the queue.

Operator: Thank you, Richard. As mentioned, we will now begin the Q&A session. For those listening by phone and would like to ask a question, please press star, followed by one on your telephone keypad to raise your hand and join the queue. To withdraw your question, simply press star one again. When called upon, please use your handset to ensure your line is unmuted and be ready to ask your question. Again, that is star one to join the queue. Your first question comes from the line of Siraj Ahmed of Citigroup. Please go ahead.

Speaker #1: And to requeue your question, simply press star 1 again. When called upon, please use your handset to ensure your line is unmuted and be ready to ask your question.

Speaker #1: Again, that is star 1 to join the queue. And your first question comes from the line of Suraj Ahmed of Citigroup. Please go ahead.

Speaker #3: Morning, Richard. I just have three questions. Just on the first two, and I know you can't mention too much on the spectrum use, but could you elaborate on whether it was a software or a hardware issue?

Siraj Ahmed: Morning, Richard. I just have three questions. Just on the first one, I know you can't mention too much on the spectrum use, but can you elaborate on whether it was a software or a hardware issue? Just confirming that it has been fixed now.

Speaker #3: And just confirming, it has been fixed now?

Speaker #4: Yes, Suraj, hi. Suraj, it's Tony Moffatt. The situation, as Richard has mentioned, was that there was some use of spectrum that was permitted by the IMDA, and we then used it outside those limitations that were in that purpose.

Richard Tan: Tony, you may want to respond to that.

Tony Moffatt: Hi, Siraj. It's Tony Moffatt. The situation, as Richard has mentioned, was that there was some use of spectrum that was permitted by the IMDA, and we then used it outside those limitations that were in that purpose. In terms of whether it was a software or a hardware type of issue, that's just a function of the way in which the system works. It's a combination of both of those things. That's really all we can say about that at this stage.

Speaker #4: In terms of whether it was a software or a hardware type of issue, that's just a function of the way in which the system works.

Speaker #4: It's kind of a combination of both of those things, and that's really all we can say about that at this stage.

Speaker #3: Sure. And, Tony, is there anything on the timeline for when we can expect some news from IMDA?

Siraj Ahmed: Sure. Tony, anything on the timeline when we can expect some news from IMDA?

Speaker #4: We don't have any information from the IMDA about when they're going to make their decision.

Tony Moffatt: We don't have any information from the IMDA about when they're going to make their decision.

Speaker #3: Okay, thank you. Second one, Richard—just on the subscriber growth. It does look like there's a bit of a slowdown in that fourth quarter, right?

Siraj Ahmed: Okay, thank you. Second one, Richard, just on the subscriber growth. It does look like there's a bit of a slowdown in that Q4, right? Would love some color on this. Was it you purposely slowing growth or not taking because of the IMDA review, or was it more about competition? Was it churn? Some color would be really helpful.

Speaker #3: Would love some color on this. Is it you purposely slowing growth, or is that because of the IMDA review, or is it more about competition?

Speaker #3: Was it churn? Some color would be really helpful.

Speaker #2: Well, the mobile market is highly competitive, with many of our competitors mimicking our plans. There was also increased termination of SIMs arising from SIMs that were used for scam activities.

Richard Tan: Well, the mobile market is highly competitive with many of our competitors mimicking our plans. There was also increased termination of SIMs arising from SIMs that were used for scam activities. This obviously applies to all the telcos as well. So that's basically what was happening in the Q4.

Speaker #2: Now, this obviously applies to all the telcos as well. So that's basically what was happening in the fourth quarter.

Speaker #3: Okay, so that termination of SIMs—that would be a one-off, isn't it? It shouldn't be continuing into next year?

Siraj Ahmed: Okay. So that termination of SIMs, that would be a one-off, isn't it? Should it be continuing into next year?

Speaker #2: Well, as far as we know, scammers will always find ways to acquire SIMs, and this is an ongoing activity by the Singapore Police Force, as far as we are aware.

Richard Tan: Well, as far as we know, scammers will always find ways to acquire the SIMs, and this is ongoing activity by the Singapore Police Force as far as we are aware. We continue to receive requests to terminate SIMs that are used for scam activities.

Speaker #2: We continue to receive requests to terminate SIMs that are used for scam activities.

Speaker #3: Okay, got it. Last one, Richard, you're close to $500 million of cash on the balance sheet, right? I guess just the question is, do you think Cymbal and Tuas will still be allowed to take part in consolidation in the Singaporean market?

Siraj Ahmed: Okay. Got it. Last one, Richard. You have close to SGD 500 million of cash on the balance sheet, right? I guess, just the question is: Do you think SIMBA and Tuas will still be allowed to take part in consolidation in the Singaporean market? Or is there something stopping you from that perspective?

Speaker #3: Was there something stopping you from that perspective?

Speaker #2: Tony, you may want to comment on that.

Richard Tan: Tony, you may want to comment to that.

Speaker #4: We can't really say what's likely to happen as far as consolidation in the market is concerned. I don't think we'll be blocked out from participating in consolidation, should an opportunity arise.

Tony Moffatt: We can't really say what's likely to happen as far as consolidation in the market is concerned. I don't think we'll be blocked out from participating in consolidation should an opportunity arise. But there's nothing that's happening at this stage that would lead us to a view that that was likely to happen in the near term.

Speaker #4: But there's nothing happening at this stage that would lead us to view that is likely to happen in the near term.

Speaker #3: Okay. Maybe another way to ask it. So then, Richard, you sort of mentioned 5G densification. There's a bit of concern, given—I mean, M1 would have helped you with the 5G standalone sort of spectrum, right?

Siraj Ahmed: Okay. Maybe another way to ask it. Richard, you sort of mentioned 5G densification. There's a bit of concern given. I mean, M1 would have helped you with the 5G Standalone sort of spectrum, right? You have a little bit of spectrum. And it's impressive your mobile score as well, right? From the OpenSignal. Do you think the densification, just adding your sites and cells is enough or you actually have to get some more spectrum? Thanks.

Speaker #3: You have a little bit of spectrum. Do you think and it's impressive your mobile score as well, right, from the open signal. Do you think the densification just adding your cells is new sites and cells is enough, or you actually have to get some more spectrum?

Speaker #3: Thanks.

Speaker #2: Well, densification—obviously there's always a balance between densification and spectrum. And the path forward is obviously network densification. But what is also clear is that we are allowed to run 5G on both the 2,100 and the 900 megahertz bands.

Richard Tan: Well, densification. Obviously, there's always a balance between densification and spectrum. And the path forward is obviously network densification. But what is also clear is that we are allowed to run 5G on both the 2100 MHz and the 900 MHz band. So our planning takes into consideration on this to provide the best network experience. And as we stand right now, we are quite comfortable based on the plans that we have established.

Speaker #2: So our planning takes this into consideration, to provide the best network experience. And as we stand right now, we are quite comfortable based on the plans that we have established.

Speaker #3: Perfect, thanks. I'll jump back in the queue.

Siraj Ahmed: Perfect. Thanks. I'll jump back in the queue.

Speaker #1: And before we continue on to the next question, a reminder: if you would like to join the queue, please press star one. Your next question comes from the line of James Bales at Morgan Stanley.

Operator: And before we continue on to the next question, a reminder, if you would like to join the queue, to press star one. Your next question comes from the line of James Bales of Morgan Stanley. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Thanks, guys. Maybe, firstly, just following up on Suraj's question on mobile subs—you talked about the benefit the brand got when the M1 transaction was announced.

James Bales: Thanks, guys. Maybe firstly, just following up on Siraj's question on mobile subs. You talked about the benefit the brand got when the M1 transaction was announced. Has that unwound? Or how should we think about the potential brand damage from the controversy?

Speaker #3: Has that unwound, or how should we think about the potential brand damage from the controversy?

Speaker #2: The brand continues to be very, very strong, and we continue to We have very loyal customers because I've been going around talking to dealers and customers, and they are obviously they are obviously love what we're doing.

Richard Tan: The brand continues to be very, very strong, and we continue to also invest in the brand. We have very loyal customers because I've been going around talking to dealers and customers, and they obviously love what we're doing and the services that we provide for them. So we're very confident in terms of moving forward.

Speaker #2: And the services that we provide for them, so we're very confident in terms of moving forward.

James Bales: Great. Then maybe just on the cybersecurity spend, can you help us understand what are you spending the SGD 15 to SGD 30 million on? What are the required outcomes from that? And maybe just help us understand the mix of direct versus other OpEx versus CapEx in terms of composition of that.

Speaker #3: Great. And then maybe just on the cybersecurity spend, can you help us understand what you're spending the $15 to $30 million on?

Speaker #3: What are the required outcomes from that? And maybe just help us understand the mix of direct versus other OPEX versus CAPEX, in terms of the composition of that.

Speaker #2: Okay. Obviously, I would like to provide as much color as I can. It's just that the cybersecurity framework is also an evolving framework, and the threats are also, by definition, evolving.

Richard Tan: Okay. Obviously, I would like to provide as much color as I can, but it is just that the cybersecurity framework is also an evolving framework. The threats are also, by definition, evolving. There is AI happening in the background which makes obviously the threats more sophisticated. Based on the overall evolving landscape, we definitely need to do whatever is necessary to meet the evolving threats. Therefore, we are trying to do it the most efficient way because this is frankly the SIMBA DNA to do it the most efficient way to ensure not only compliance, but to address the threats head-on. We are not giving a split right now in terms of CapEx and OpEx because, as I have said, we may look at potentially moving to a more CapEx-like model so that it is also more cost-efficient.

Speaker #2: And there is AI happening in the background, which obviously makes the threats more sophisticated. So, based on the overall evolving landscape, we definitely need to do whatever is necessary to meet the evolving threats.

Speaker #2: So, therefore, we are trying to do it in the most efficient way, because this is, frankly, the Cymbal DNA—to do it the most efficient way to ensure not only compliance, but to address the threats head-on.

Speaker #2: We're not giving a split right now in terms of capex and opex because, as I've said, we may look at potentially moving to a more capex-like model so that it is also more cost-efficient.

Speaker #3: I guess what I'm after, too, is what the regulator would think: "Okay, that program's been a real success; you've ticked all the boxes." What are the key outcomes that you're on the hook to deliver there?

James Bales: I guess what I am after too is what would the regulator think, okay, that program has been a real success. You have ticked all the boxes. What are the key outcomes that you are on the hook to deliver there?

Speaker #2: As I've said, there is a framework, and the framework is being established. That framework will also evolve, and there will be requirements that we will need to step up to.

Richard Tan: As I have said, there is a framework, and the framework is being established, and that framework will also evolve, and there will be requirements that we will need to step up to. So the incremental CapEx expenditure and OpEx expenditure will address those stepping up of requirements. As I have repeated myself, it is evolving because this landscape is moving very, very quickly. Nevertheless, we believe that this range is a very, very comfortable range, and this is why we are signaling this range to the market.

Speaker #2: So the incremental capex expenditure and opex expenditure will address those stepping up of requirements. And as I've repeated myself, it is evolving because this landscape is moving very, very quickly.

Speaker #2: Nevertheless, we believe that this range is a very, very comfortable range, and that is why we are signaling this range to the market.

Speaker #3: Okay, got it. And then, maybe on your outlook comments—what are you referencing with the comment "more broad-based revenue growth" in the outlook statement?

James Bales: Okay, got it. Then maybe on your outlook comments, what are you referencing with the comment more broad-based revenue growth in the outlook statement? Should we be thinking about more products? Or what exactly was the messaging there?

Speaker #3: Should we be thinking about more products, or what exactly was the messaging there?

Speaker #2: Well, I think the messaging is quite straightforward in the sense that both consumer enterprise and SME markets—they're all very, very big. We believe we have done quite well in the consumer mobile market, but there's obviously much work to do in the business and enterprise space.

Richard Tan: Well, I think the messaging is quite straightforward in the sense that both consumer, enterprise, and SME markets, they are all very, very big. We believe we have done quite well in the consumer mobile market, but there is obviously much work to do in the business and enterprise space. I think Harry also highlighted the fact that our market share in fiber broadband and consumer is still kind of small. So we have more work to do to grow that. Nonetheless, we are also very excited by the opportunities presented to us in the enterprise broadband space. Therefore, by definition, we can be very hopeful that we will be able to achieve broad-based revenue growth across the various segments which I have just mentioned.

Speaker #2: I think Harry also highlighted the fact that our market share in fiber broadband and consumer is still kind of small, so we have more work to do to grow that.

Speaker #2: Nonetheless, we're also very excited by the opportunities presented to us in the enterprise broadband space. Therefore, by definition, we can be very hopeful that we'll be able to achieve broad-based revenue growth across the various segments which I have just mentioned.

Speaker #3: Okay, got it. And we saw the business mix shift gross margin down in FY26 with more broadband. If that strategy plays out and you're selling more of those services into SME and enterprise customers, should we expect that trend to continue?

James Bales: Okay, got it. We saw the business mix shift gross margin down in FY26 with more broadband. If that strategy plays out and you are selling more of those services into SME and enterprise customers, should we expect that trend to continue?

Speaker #2: Not necessarily, because we are able to leverage the existing infrastructure that we have built for the business market as well. So, it's early days right now.

Richard Tan: Not necessarily because we are able to leverage the existing infrastructure that we have built for the business market as well. It is early days right now. We are not giving any guidance in terms of how EBITDA will be moving forward. What I can say is that we are building on what we already have. Therefore, we are in a very comfortable position in terms of managing costs.

Speaker #2: We're not giving any guidance in terms of how EBITDA will be moving forward. What I can say is that we are building on what we already have.

Speaker #2: Therefore, we are in a very comfortable position in terms of managing costs.

Speaker #3: Perfect. Thanks, guys. I appreciate the help.

James Bales: Perfect. Thanks, guys. I appreciate the help.

Speaker #1: And do you have a follow-up question from Suraj Ahmed of Citigroup? Your line is open.

Operator: And you have a follow-up question from Siraj Ahmed of Citigroup. Your line is open.

Speaker #3: Thanks, Richard. Just on following up on James's question about that investment in cybersecurity next year, Richard, is this like a one-time step up, or do you I mean, and it can come off in FY28 because you're taking consultants or something like that, or is it just a one-time step up and then it grows from there?

Siraj Ahmed: Thanks, Richard. Just on following up on James' question about that investment in cybersecurity next year, Richard. Is this like a one-time step-up? It can come off in FY28 because you're taking consultants or something like that? Or is it just a one-time step-up and then it grows from there?

Richard Tan: Based on what I can say is that we will need to continue to spend on cybersecurity because we will not obviously want to take the pedal off the foot in terms of maintaining the cybersecurity posture of our network. So it is very, very important. We are also looking forward to the new frameworks and things, initiatives that are being set by the regulator as well as the cybersecurity agency in Singapore. So, we expect the spend to continue. What it will be in future years, hard to say. That is why the range that we provided is for FY27 and when we are ready, obviously, we'll provide guidance for FY28.

Speaker #2: Based on what I can say, we will need to continue to spend on cybersecurity because we obviously do not want to take our foot off the pedal in terms of maintaining the cybersecurity posture of our network.

Speaker #2: So it is very, very important. And we are also looking forward to the new frameworks and initiatives that are being set by the regulator as well as the Cybersecurity Agency in Singapore.

Speaker #2: So, we expect the spend to continue as it is, or as it will be in future years. Hard to say. That is why the range that we provided is for FY27.

Speaker #2: And when we are ready, obviously, we'll provide guidance for FY28.

Speaker #3: Perfect. And then, on that, and on this broad-based revenue growth into next year, do you think—I mean, you've been a price leader in the market, right?

Siraj Ahmed: Perfect. On that then, on this broad-based revenue growth into next year, you've been a price leader in the market, right? Do you think given the investment in cybersecurity and stuff, it's time to increase ARPU, or is it still the view that you'll be the price leader?

Speaker #3: Do you think, given the investment in cybersecurity and stuff, it's time to increase, or is it still the view that you'd be the price leader?

Speaker #2: Well, price leadership is important, but I think we also need to consider the basic philosophy that we need to deliver value with great reliability as well.

Richard Tan: Well, price leadership is important, but I think we also need to consider the basic philosophy that we need to deliver value at great reliability as well, especially for the business market. Based on what we have built from our network infrastructure as well as the cost efficiency from our business operations point of view, we believe that we are in a good position to deliver both price leadership as well as an incredible amount of value packed at those price points which we are pitching our products at.

Speaker #2: Especially for the business market, and based on what we've built from our network infrastructure as well as the cost efficiency from our business operations point of view, we believe that we are in a good position to deliver both price leadership as well as an incredible amount of value packed at those price points at which we are pitching our products.

Speaker #3: Got it. Okay. And just on, to the extent that you can mention, you're flagging innovative new products into 2027. Is that for the business and SME market?

Siraj Ahmed: Got it. Okay. To the extent that you can mention, you are flagging innovative new products into 2027. Is that for the enterprise and SME market, or is there something else for the consumer side as well?

Speaker #3: So, is it just the enterprise and SME market, or is there something for the consumer side as well?

Speaker #2: Well, this is potentially competitively sensitive information, but obviously, wherever there is market growth as well as market opportunity, we will definitely want to enter those markets.

Richard Tan: Well, this is potentially competitive sensitive information. Obviously wherever there is market growth as well as market opportunity, we will definitely want to enter those markets and embrace those opportunities.

Speaker #2: Those and embrace those opportunities.

Speaker #3: Okay, got it. Last one, just on the cash balance again. I mean, Tony sort of mentioned you'll still—nothing's blocking you. Just how should we think about—I mean, you sort of raised that cash for the M1 acquisition.

Siraj Ahmed: Okay. Got it. Last one. Just on the cash balance again. Tony sort of mentioned nothing is blocking you. Just how should we think about, you raised that cash for the M1 acquisition. It looks like it is excess capital that is there. What should we be expecting from a capital management perspective?

Speaker #3: It looks like it's excess capital that's there. What should we be expecting from a capital management perspective?

Speaker #2: It's a matter for the Board to decide, but obviously any good opportunities that come our way, we will raise to the attention of the Board.

Richard Tan: It's a matter for the board to decide, but obviously any good opportunities that come our way, we will raise it to the attention of the board.

Speaker #3: Great. Perfect. Thank you. Thanks, Richard.

Siraj Ahmed: Great. Perfect. Thank you. Thanks, Richard.

Speaker #1: And this concludes our Q&A session for today. I'll turn the call back over to Richard for final closing remarks.

Operator: This concludes our Q&A session for today. I'll turn the call back over to Richard for final closing remarks.

Speaker #2: Thank you all for your time and for engaging with our business update. The Board and management of Tuas Limited deeply appreciate your continued support.

Richard Tan: Thank you all for your time and for engaging with our business update. The board and management of Tuas Limited deeply appreciates your continued support. We look forward to delivering further value and growth in the months ahead. Thank you.

Speaker #2: We look forward to delivering further value and growth in the months ahead. Thank you.

Operator: This concludes today's conference call. Thank you all for joining us. You may now disconnect.

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