Good morning, everyone. I mean, I, I think we, we, a lot of familiar faces here. Thank you all very for coming, and it's very nice to see many of you all here. I will continue where Moon left off, by really kind of revisiting ourselves, going back about 2.5 years ago when we announced this strategic reset. I think all of you are very familiar with that, at that time, the context in which we announced that strategic reset was in an environment where our core business were, well, I would say, quite damaged because of the COVID pandemic, because of value-destructive activities, sometimes beyond us, or value-destructive decisions. For example, in Australia, whether it's NBN, whether it's geopolitics, whether it's just literally value just taken out of the telco sector.
All that was during the context of the time in which we set ourselves the 4 pillars of the strategic reset. At that time as well, it was coming out of 2 years where we had to cut dividend twice. I think you all might recall it was a very difficult environment at that time. Now, fast-forward to where we are now, 2.5 years later. This is, I would say, broadly, how you would describe the businesses together. No more enterprise, no more consumer businesses, different business units that you see. Today, fundamentally, we're about our core business, which is Singapore and Optus, or Australian business. It's under 1 team, the enterprise and the consumer business executing as 1.
Of course, for Singapore and Optus, we are still in the process of integrating, but by end of this year, you would see very much... In fact, today, it is very much functioning as one entity, especially in Australia already. In the middle is growth engines. These are the growth engines where we have decided that these are the two key businesses and that we want to double down on over the next few years, because we need to grow EBITDA and revenue. Because of the industry disruption that we have seen, you know, revenue and EBITDA that we used to earn five years ago will never come back again, and we need to re-replenish the revenue and EBITDA, and really, it's these two are the growth engines that we are seeing, and we're doubling down on them.
These growth engines really is a testament, it's leveraging on the trends that we're seeing in enterprise digitalization, the infrastructure that's needed to allow for this enterprise digitalization. These two are our growth engines. We are running them autonomously, separately now as a business unit. They were under other business units in the past. Of course, the third bucket of our business is what we call the strategic portfolio of our regional associates. As you know, this is easily 60%-70% of the Singtel Group. Many times you will hear that, you know, Singtel, sometimes we are definitely way beyond Singapore. In fact, 70% plus of our operating profits actually come from our regional associates and our businesses outside Singapore. It's a very important, very strategic portfolio business that we have, and many of...
As you all know, many of our associates are here, and you can find out more about the businesses. This is how we are organized today, right? Going forward, this is how you will see us being presented. Now, I guess the key issues that is we have to focus today is the elephant in the room, is our stock price is still not performing, right? Our HoldCo discount is probably one of the widest that I personally have ever seen. The question is: what are we doing about that, right? It's something that, trust us, Moon, senior management, all of us spend a lot of time, and the board, to really think what we are doing. I think you have seen, we've come out with our value creation opportunities, our capital recycling to fund that growth.
We have grown dividends quite significantly over the last 2 years. I would say 3 broad things, broad messages that I want to leave behind. Okay, one is ROIC needs to keep improving. I would say the team has done a decent job in improving ROIC in a very difficult environment over the last 2 years. We need to continue doing that. Second, we need to focus on our growth engines. The core business is very important. It generates a very healthy level of cash, but there's some EBITDA that we have lost due to industry disruption that will never come back. We need to replenish that. We need to top it up, and that's where our growth engines will have to be a key focus. That's where the, the returns will also come from, the, the, the, the, the growth engine businesses.
Number 3, value creation. Right now, some of you may think, you know, we have recycled about $5 billion-$6 billion worth of assets in the last 2 years. Maybe Singtel has run out of value creation opportunities, and I can tell you, the opportunity set is immense. It's something, it's timing. It's really the issues on the timing and the opportunity and the context. It is not because we are not willing to create more value through some of these opportunities. Focus on ROIC. I think we have come up with some guidance in the past that we'ld like to reach kind of low double digits in the, in the what? Short to in the medium to long term, right? I think those were the exact words. I think today we're about 8%.
We started the strategic reset at probably about 6, low 6. Today, we are about 8.3, 8.4, if I recall. We're going to bring that up, where there's still a lot of wood to chop, a lot of things we need to do. We need to bring that up to low double digits by Fiscal Year 2026. How do we do that? There are, of course, many, many things that we need to do, but I would say broadly, these are the 4 that would actually meaningfully move the needle, assuming everything else being equal. Right. First is, as Moon mentioned, we need to focus on focusing on efficiencies and synergies within our 2 core businesses, both Optus and in Singtel.
Whether it's costs, whether it's revenue synergies, but in this kind of environment, especially in a competitive environment, revenues is, yes, we can focus on raising the market, as you have seen, in Australia, we have done so. Revenue sometimes is very much dependent on how the market behaves and how our competitors react. Cost is something that is 100% within our control, and this is something we need to focus on, and the two core businesses you can hear from, Kelly and Tian Chong later, where we will spend more time talking about what we are doing in terms of cost synergies. The second area is sale, closing down of loss-making businesses. Amobee was something we sold one about more than a year ago.
Trustwave is taking a bit more time, but I can tell you that we're still very focused on finishing up that strategic review of Trustwave and be able to take basically sell that business. Trustwave, if you look today, roughly bleeds us SGD 100 million negative EBIT with us. If that is actually sold, that SGD 100 million EBIT will be straight down to our bottom line. The capital intensity of our business continues to be very high, right? This is something where we need to be smart about CapEx. We need to really focus on managing our 5G rollouts and terming them out and doing what is necessary, spending what we can afford rather than spending what we, we want to.
This is an area where we need to bring down the CapEx, and that will have positive implications on our D&A and hopefully in our EBIT and ROIC, actually. Finally, Airtel. Airtel, as you know, we went through a very difficult time with Airtel a few years ago, right? Since then, it's actually been moving up extremely fast, right? Extremely in a very convincing way, it's actually improved Q-on-Q, year-on-year. Airtel will continue to add very meaningfully into Singtel's ROIC as it continues to execute very well in the market and all the dynamics and everything is all pointing in the right direction. This will give you a sense of how we actually see our ROIC moving up over the next few years.
Of course, at the individual businesses level, we do take a look at how we run each of the businesses and what we should be focused on, because really, ROIC is really our Singtel Group ROIC is really an amalgamation of all the individual ROICs of the businesses. For our regional associates, it's a very broad generalization, but because of time, it's really focused on, I think in almost every market, you're seeing market repair and industry consolidation. You are also seeing the fixed broadband opportunity. That's the next big growth thing. Mobile, as you know, is quite saturated in many of our associate markets, but fixed penetrations are still very low. Our associates are number one or number two in those markets, so very well positioned.
This is an area where we can actually, I would say, see another 5-10 years of double-digit growth in this area in many of the associates markets. We actually are very optimistic with the prospects of the fixed broadband industry in many of the markets that we operate in. That is why you saw that in the past year alone, Telkomsel has gone ahead on the... had not, is no longer now just the number 1 mobile player, but also the number 1 fixed broadband player in Indonesia. AIS is in the process of acquiring 3BB, and then with that, I think they will be also a major, I think number 1 player in fixed broadband in Thailand once the acquisition close. Singapore, we talked about what we need to do, right?
NCS, I'll leave Kuo Pin will talk about how we need to shift the business mix into high-margin business, into really leveraging on the increased IT spending, that we're seeing many corporates today, not just in Singapore, but actually the rest of Southeast Asia. The NCS is extremely, or uniquely positioned, right, to leverage on that trend. This is one of the areas where we need to deliver on the ROIC. Optus, I think we spent quite a lot. It's a big market. It's a big industry with very formidable competitor, but it's an area where we need to fight in that market and really bring ROIC up. The capital intensity of that business is very high, given the geography, given many specific issues to the industry, and this is something we need to really differentiate ourselves, leveraging on.
We, we can't fight Telstra just based on network coverage, right? I think Kelly has mentioned many times, and will do so again today, how we're differentiating ourselves to make to turn our business more profitable. Trustwave, we're selling that, and then our, our data center business, which is really an area where, although it's a very capital-intensive business, you will see that we have actually one of the highest asset yield in the industry in Singapore for this asset. Once some of our greenfield projects actually stabilize, the stabilized ROIC are actually quite meaningful. They're kind of in the low to mid-teens. That's really ROIC. Now, I'd like to focus on growth engines. Now, one question that you all may have, these growth engines, I mean, how meaningful would they add to our bottom line, right?
Today, fiscal year 2023, well, 12% of the EBITDA come from NCS and from the data center business. If you fast-forward 5 years from now, based on pipeline that we have of organic growth, as well as some of the inorganic transactions that we have in our pipeline, we do expect these two businesses to comprise more than 20% of our total group EBITDA. That doesn't mean that group EBITDA is going down, that's why it becomes 20%. It's because the numerator, numerator is growing. Okay, this is really through a combination of organic growth and inorganic and also really funding ourselves. And the question is, you know, these, all these inorganic transactions and inorganic growth will require capital.
This is how we, we do actually plan to, you know, look at tapping third-party capital, the debt markets, taking a loan, all through and more asset recycling to actually fund the growth of these businesses, and especially for the data center business, where it's actually a very capital-intensive business. The important thing about these two businesses is really the ability to scale because of the businesses that we are already operating. I'd like to really make the point very clearly, this is not another Amobee, this is not another Trustwave. These are businesses that Singtel has been running for decades, or actually, okay, not that long, but more than 10 years, right, profitably. NCS, as you know, was under the enterprise team. Actually, data center was also under the enterprise team. These are not new businesses.
These are not new digital, fancy businesses that we are trying to do in a different mark- in a market where we have no idea how to execute. These are businesses that we are very familiar with, but we're doubling down and growing. I talked about leveraging on third-party capital, right? Some of you before the session actually asked, "Oh, so are we going to IPO NCS? Are we going to IPO, the data center business?" My question is-- my, my response is not right now, right? I think the market conditions are still not conducive to get the maximum valuation that we are looking for. What we are looking was to bring in like-minded partners to actually grow the business with us.
They will bring in not just capital, but also network experience, where we can work together as partners to grow these businesses together. We do not, at this point, when we bring in partners, it is really for minority stake, call it 20-25% stake type. We are open to that kind of partnership where we believe it is, of course, providing what, of course, the structure of the, the joint ventures as well as the valuation, because we do believe it is one way to illuminate value in some of the assets or our non-telco assets that we have. Of course, the other question, right, with regards to unlocking value, right, is our stakes in our associates. As you all know, last year, actually around this time, right, we sold a small stake in Airtel.
It wasn't a complete monetization of our 3.3% stake, right? We, we sold it to a fellow promoter, BTL, where we already own half of it, right? Will we continue to do such type of exercises? I think the answer is we will, yes, we are, right. We will always be able to-- we would-- while the associate stakes are very strategic to us, we are in-- we, at this point in time, we have no intention to exit any of the markets. Can-- are we, are we open to maybe flexing a bit of the, the, the stakes that we have? Yeah. Of course, working with our partners, because these partners, have, we have decade-old relationship, with many of our partners, and we definitely want to make sure we don't send the wrong signal by monetizing a bit.
Yes, we are open to that, but we are also open to many different types of structures. Our stake in Telkomsel moved from 35 to 30, but in that same move, we also supported Telkomsel's purchase of the number one fixed broadband player. In AIS, or rather in Intouch, we saw an opportunity to increase our stake to 24.99 in Intouch, which we did so. Right, we then decided to say, maybe Intouch to sell the satellite business, which they did. And in Airtel, I talked about 3.3, but our effective stake only came down by about 1.7, right? These are the type of movements that we will look, they will look to do and will continue to do. You will see that the value of all these stakes alone is about $50 billion, right?
We're not selling everything on day one, so please do not get the wrong idea. We are definitely open to see where there are ways we can tweak and actually unlock some value for us to reallocate capital to the growth businesses and to other purposes that we have. This was what we did in the last two years. I think many of you are familiar with this Pot 1 and Pot 2, at last year's Investor Day, I talked about. Pot 1, again, is cash coming from our operations. We're only going to use that cash for our day-to-day, spectrum, our lease payments, our maintenance CapEx. Whatever's left from there will be used to pay our dividend per our dividend policy. We will never borrow to fund a dividend.
We will never pay beyond our means because we do not want to cut our dividends again, right? Our Pot 2 is cash that we generate from our recycling. As we can recycle, we will then use that to fund growth and to really double down on some of our growth initiatives and 5G. We do believe 5G, because of the nature of the CapEx, is, it's quite elevated. It has been elevated for quite a few years. We will not use the operating cash flows that come out that also use to pay our dividend to fund our 5G. You will see that the 5G CapEx over time, will be tapering down. This, again, in the last two years, in Pot 1, we've paid out over SGD 3 billion of, of our ordinary dividend. That's about 80%.
As you know, we've grown our dividend year on year, I think about 6%-7% year on year. We still had SGD 2 billion left of excess cash. That equated to about SGD 0.11 per share. The last two years, we paid about SGD 0.09-0.10. Think about that. We've got actually another year of additional dividend we could have paid out.... based on the dividend policy. On the capital recycling, we cycled SGD 5 billion after all those uses of cash, we had another SGD 1 billion of excess cash. By the way, we paid down SGD 4 billion of debt in the meantime. My message to you all is this, value creation, capital recycling framework works. Yes. Is there more latitude for us to pay a dividend? I would say the numbers speak for themselves, right? I'll leave it as that.
Okay, you will see over the next few quarters, you know, what we can do. We strongly believe, as we have always said to all of you, right, if this model works and we are able to recycle our capital, we were able, it is incumbent upon management to really think about or rethink the dividend policy. When we came up with our dividend policy 2 years ago, it was really from the context of making sure our dividend is sustainable. So far, the past 2 years, I think you will see that it has been very sustainable. From a balance sheet standpoint, we are rock solid, no doubt that we can last through any difficult, volatile environment.
I think, we are probably one of the few large listed, companies that actually see interest expense fall, during this 2, 2-year period. We paid about SGD 4 billion of debt. I wouldn't belabor this, ratios too much. You will see that actually everything's moving in the right direction, including fixed rate debt, right? We decided 2 years back, it's time to fix more. It's about 90%. We, we tried to fix more. We're just not able to anymore, for a whole variety of reasons. I think we're very comfortable with these ratios now. We still have another SGD 4 billion of headroom, before it impacts our rating. You will see that again, the firepower is strong.
We will be able to tap on private capital, debt markets, as well as our own capital recycling and our SGD 3 billion cash balance, to continue to grow and to think about what we can do to really double down on our business and to focus on our growth engines. With that, I'll end off. I think the four key areas, number one is really cost synergies. Okay, we need to focus on that, on our core business to bring ROIC up. Number two, 5G rollout in Australia. As you know, Singapore, 5G is completed, right? So we don't expect major amounts of CapEx coming. Australia, there's a bit more to go, but again, we want to do it in a very measured way.
We want to make sure that our funding sources are unquestionable, right? This is something we're going to tap private capital. We're going to tap the debt markets, if and when there's an opportunity to grow. Of course, we will continue to recycle our capital, which, which is my last part. Okay, with that, I will invite Moon up again for our Q&A. Thank you.
Well, welcome, everybody, once again, especially for those who have traveled from overseas. Please make sure you roam onto the Singtel network. We need more revenue. Today, we have got a very good, activity-packed day for all of you, and I'm very thankful that all our associate CEOs and CFOs are here today with us. I think that if I recall, this is probably the first time in our Investor Day where we have got both the CEO and CFO appearing on the same, same time on this Investor Day. All the tough questions later on, please direct at them at the breakout sessions.
What I'll do is I'll kick off by sharing with everyone a little bit about the trends that I'm seeing and where is Singtel heading towards in terms of the focus areas and what we are doing on our strategic reset, and how far are we along the way in the transformation. Arthur and I later on will then close off with a short Q&A, so that you can ask us anything that is related to the group, and not at the OpCo level, because later on in the OpCo, the eight sessions in the morning and afternoon, you have a direct opportunity to ask them, all the CEOs and CFOs directly. Let me start.
Well, when I look at the trends of our industry in the probably for the last 24 months, more, more towards the 12, 18 months period, we're seeing some changes, and there's some headwinds and tailwinds. Let's talk about the tailwinds first, and specifically related to our region. We're seeing some market repair in several of our markets. We've seen price moving up. Obviously, some are, it's because of inflationary pressure and people are lifting it up. Others are really more because, you know, they see a huge CapEx requirement, and everyone's saying, "I can't afford to fund this if I'm not lifting my revenue." You see a bit of positive trend in many of the markets that we operate in.
Obviously, for a market like Singapore, you see a huge rebound of the roaming, and we're still not back to where pre-COVID level is, but pretty close. We just need the Chinese market to open up and the Chinese to come out and for us to go in, and then we'll see the traffic coming back to where it was. We're also seeing some stronger momentum in the enterprise space, and this is both in the traditional connectivity area, as well as a lot of the IT services transformation momentum. This momentum is actually very good for many of our markets who are actually riding on the enterprise space and doubling down in that area and trying to grow that business.
Obviously, many of the mobile-- used to be mobile-only companies are now getting into fixed broadband, fiber broadband. This is very important, and learning lessons from COVID, everyone knows that, you know, there's no replacement of a fiber in your home when you need it. M- more importantly, you see that the fiber is not just one point to the home. Everyone wants every rooms to be connected to have high-speed internet at home. So this is also driving a bit of a positive momentum. I- if you look across all our markets, you see the penetration rates of fixed broadband is actually still relatively low, as low as 18% in Indonesia or pro- probably about 40, 40+% in, in Thailand, and the rest in between.
There's still quite a fair bit of a untapped market for us to go after. Obviously, you know, everyone needs capital and to invest into our network, into fiber, into 5G. You see a lot more effort to recycle capital and to unlock some value. The transformation part, as I said earlier on, is more on enterprise. Enterprises, both big and small and medium, are all trying to take advantage of the technology to evolve. This is seen across all markets, and you see a lot of disruptions to different industries very quickly. This bodes very well for our company, like NCS, who's actually helping companies transform. These are some of the positive tailwind that we see pushing us from behind.
Obviously, you know, there's no conference that I attend nowadays without anyone mentioning generative AI, and that is also pushing another round of transformation and investment. There's actually two opportunities there. One, you see enterprises getting into generative AI and requiring help and assistance. Two, even within all telcos, we see this as a tool to help us to improve productivity. You know, we talk about many possible use cases by telco to adopt generative AI to transform its business, to improve productivity, to lower our operating costs. There's a bit of a race here, and everyone is saying, "Let's invest in this area and improve our margins and profitability." These are all the tailwinds. Obviously, you know, like in any other industry, we do have some strong headwinds.
In some markets, we are still seeing quite the intense price competition, where markets have not consolidated, you still have four players or five players. You see that a bit of a pressure. There's always the tier two pressures, the MVNOs, giving a bit of a low pricing and setting the, the, the low end of the bar that prevents us from lifting prices at the tier ones. That's one of the headwinds we are seeing. Obviously, 5G, everyone have put in-- those, for those markets, we have put in a lot of investment in 5G. We're yet to see strong adoption and momentum.
Even recently when the probably the most, I would say the fastest 5G market in the world is China, they are also looking at about 50-60% of 5G adoption and migrated the base to that level. Most other countries are probably in the low double-digit, in the 10%, in the 15% range, even if you've got a 5G network. Enterprise adoption, well, I'll show you some examples later on, is still not at scale yet. We definitely need a big, stronger momentum. Obviously, mobile penetration is peaking, most markets you'll see, you know, single-digit growth, high single-digit growth or middle single-digit growth at best. You're not going to see a lot of high double-digit growth from now on.
Yes, the capital intensity of rolling out fiber, 5G, interest rate increasing and interest cost is going to go up. Of course, disruptive technologies coming in, there's always a risk on, on some of this technology changing the way we operate, and whoever who adopts it first will have the advantage. On balance, what do we do, right? Ride on the tailwind and, you know, mitigate the headwinds. That's what everyone will tell you. If you look at riding on the tailwinds, we look at the markets. Four out of six markets we're operated, operating in have actually consolidation. You see that happening. Obviously, I'm sure you would like to ask, what happened to Singapore? Is it going to be consolidation soon?
Yes, that's what I, I think, and that's what we've been saying. The question is, is it going to be sooner or later? Unfortunately, I'm going to say it again, you know, I have tried and asked many, many times, but was told that Singtel is not allowed to consolidate, so I just have to sit tight and encourage the other three players to hurry up and consolidate, and then we have better rational pricing in Singapore. I think that the four-player market in Singapore is not sustainable in the long run. Obviously, in the structure-wise, we have all reorganized our operations. Now you have got Optus, one Optus, where Kelly looks after both the consumer and enterprise. In Singapore case, we have also consolidated the consumer and enterprise business.
Tian Chong and Anna will lead the Singapore business as a one Singtel operations. You see some potential synergies that is coming through with this restructuring, and you see that the focus will really now be on the OpCo operating on a standalone basis, and the headquarters will really support them at a corporate function level. We have to continue to leverage on our, you know, very, I would say, motivated employees and give them the tools to prepare for themselves for the future, especially with the emerging disruptive technology. We are investing a lot on our people to retrain them, reskill them, to get them ready for the future.
This is really what the big picture is when I look at our business. If I then zoom in on 5G in the enterprise space, because that's where we believe we're going to see a bit more momentum in 5G adoption, we do have quite a strong head start in Singapore, right? You have seen a lot of trials, but more importantly, we've seen some live deployments. The live deployments are quite impressive. Some of us visited the Hyundai factory yesterday, we really could see how the cars were being manufactured by robots, using 5G technology and not using the, you know, really the manual workforce of how people assemble cars. This is deployment at the commercial level. This is no longer a trial.
We believe more and more companies, because they want to transform their business, they would want to invest in this. This is where we're going to ride on this momentum to drive the 5G adoption and transformation. Hyundai factory, this AETOS is a security company. Of course, the aviation, the hospitals, the ports, these are all the areas where we think that there will be early adopters of 5G, and we are actively working with many of these industries verticals to adopt 5G as a commercial level. When we look at market repair, I mean, we can talk about the anecdata evidence, where you see the list price, the promotion price, but one good indication is really looked at ARPUs and EBITDA margins across the market.
I just picked three here to show a bit of a trend. If you look at India, you look at Indonesia, you look at Thailand, you look at not just, you know, Airtel, AIS, or Telkomsel, but you look at the competitors as well. If everyone is improving their margins and improving ARPUs, that means the market is on the right path, is on the repair, right? Because it's not about a zero-sum game where I win your share, you win my share. When you see the whole market all lifting at the same time, that means everyone is rational and is trying to capture more value. If you start tracking the whole market, you start tracking the whole industry, they say, "Okay, it makes sense.
The market is on repair, everyone is trying to price up. Obviously, there will be a time where one operator or one carrier will say that, "Oh, I'm not gaining as much, I'm losing." That's why you've got to watch out whether you have raised prices too quickly or too slowly. The other thing that we have to watch out for is how much the market can pay. You can't be keeping on turning and increasing price, you price yourself out of the market, and customers cannot afford to pay, especially with high inflationary pressure. I think the checking this market movement is actually a very good sign of how the conditions of the market.
You know, for those people who are a bit concerned about Telkomsel performance in the last quarter, you see that, that ARPU and the margins are actually is actually very healthy, and I don't think they're, they're losing or conceding share too much to the competitors. Of course, I talked a bit about this on the broadband, fiber broadband. If you look at the market focus and you look at the market penetration, it's still at a very low stage in, in terms of fiber penetration of 10%, 17%, 43%, and 34%. The potential of growing the next 5 percentage points of market penetration means millions of households of fiber that you can capture.
If you look at the market position as well, obviously from AIS, if, with post-acquisition of Triple T Broadband, with Telkomsel, the integration of the IndiHome, you see that the market position is actually quite strong. Even with Airtel, such a big market and highly under-penetrated, the market share position is not that critical because the potential of upside is very high because the market is only 10% penetrated. This is where the potential is, and the next 5 years, this area will be a high-growth area for everyone. I, I think this is a transformation, and as you see, a dominant mobile operator combining a focus with a fixed operator or focus on fixed, you see the synergies, you will see the momentum of a combined bundled offer, bundled play.
This is something that we have seen, huge momentum, as, as I, I, I've seen what happened in China in the last 3 years. China Mobile, as a mobile company, has overtaken China Unicom and China Telecom as the largest fixed broadband company. It's a mobile-led strategy that built fiber and that penetrated the whole base. I think there's definitely some positive momentum here, and, you know, we, we, we definitely want to make sure we capture this potential growth. Now just do a quick, you know, recap of my s- strategic reset, almost 3 years ago now.
you know, I talked a lot in the last few slides, it's all about the core of Telco, and that's important because if we don't turn it around or improve the margins and profitability, we cannot fund our growth. We cannot fund our, the other business that we are trying to do. While that is underway, we also want to focus on some of the new growth area, and in particular, the two a-- the, the four areas of growth would be the first is NCS, then data center. I'm going to talk about two other smaller areas that we don't talk too much about today. First, data center. I think when we announced that we are working on a data center growth strategy, we, we are currently sitting on about 60 megawatt.
In the pipeline, we have seen that we're going to have 155 megawatt, with 58 megawatt in Singapore, the Tuas DC , with the data center working together with Telkom in Batam and in Bangkok with Gulf. Adding that, that few data centers up, you see that we are working towards 155 megawatt in probably about 3 years' time. Given that, you know, if you look at our current asset yield of 14.5%, this data center business today is probably not leveraged at all. If you look at the value of the existing 60 megawatt, we are sitting on about $170 million of EBITDA.
You just do a guess on the multiples, 25 times, that's probably quite a few SGD billion worth of value there. As this scales up, we will need more capital to grow the new data center, but there's an opportunity for us to unlock some value there as well. Similarly, you look across to NCS, because of all the tailwinds that I talked about, companies transforming, enterprise investing in technology. Catching this tailwind, you see that the growth of NCS, you know, is going to be strong, and we've seen last year growing to SGD 2.7 billion of revenue. Digital business have moved from just 49% to 51% of our contribution. Enterprise have grown from 26% to 33% of the contribution.
Why is this significant? NCS used to be only known as serving the Singapore government sector, but this has changed, and you can see it's changing very rapidly. Outside of Singapore, through the acquisition of the companies in Australia now contribute about 15% of the overall revenue of NCS. You see that the momentum is actually going very quickly. Again, NCS is a standalone business. Obviously, if you scale this, if you run this, you see that the potential of unlocking some value and expanding this rapidly in Southeast Asia and beyond will be there.
I think these two businesses are actually probably are the, the right scale, and if you double down on that, you'll become a significant contribution to the group in terms of the bottom line of Singtel. Two other areas that are emerging that we are focusing on is, one is on the Paragon, which is the 5G platform that we deploy for our enterprise solutions. This is not hardware, but it's really a software service, a platform that we provide to enterprises to do the orchestration of their network. Imagine the Hyundai factory, the, the Micron manufacturing lab, they would need to have a orchestration platform to move their payload, their workload around, and this is the engine that provides that.
We have deployed, obviously this Paragon in Singapore, and one other telco here is talking about AIS. AIS has deployed this platform as well. Bill is actually now in discussion with one North America telco, and they are likely to adopt this and deploy this as well, and there are three other telcos. You see that this platform is actually network agnostic. It can work on any network. You're just sitting on top providing an enterprise solution. It is a software business. It's a new business that we are working on and, you know, incubating it, and potentially it can grow into a significantly sized business. Still a few years out, I think it's one area that I think we have a head start and a right to play, and we'll be working on this.
Of course, the second area is the GXS Bank. You know, we got a license several years ago, and there was always a bit of concern on this. But I think, with the discipline in execution, it's really an associate. Singtel has a 40% stake, the other 60% is with Grab. Recently we've just launched it in Singapore and gotten very good momentum. A lot of people are signing up. In fact, we have to slow it down a bit because it was just coming in too fast, the deposits. The big potential here is actually in Malaysia and Indonesia, where we see a lot of underserved and underbanked customers potential.
You see a bit more numbers coming through as they start to execute. The target is actually to have EBITDA break even by the bank by FY26, which is actually a pulled forward. And this, this again, is no longer a big concern in terms of deployment and the cash burn, because I think it's all well under control. Finally, returns. You know, last year, you see that we have actually provided a pretty decent, I would say, dividend, especially if it includes the additional dividend that we committed in the middle of the year. Even on the, the, you know, final interim dividend is actually on a growth path.
We'll continue to work on improving profitability so that we can deliver higher absolute dividend based on our dividend policy. Our dividend payout policy have not changed. It's still 60%-80%, and we'll be paying on the high end of the range in the last 2 years. This is pretty much what I want to say. I'll hand over to Arthur to cover a few pages, and then I'll come back for Q&A.
Chapman Taylor from Capital International. I appreciate the focus on ROIC, and you cannot help when you meet the associates to realize how they're driving down costs. I'm interested in a conversation, it's a little difficult because of the consolidated nature, about how that's working at the head operating level, at the overhead, head office, and how you're driving down cost at that level, and where you see the opportunities beyond, you know, the very helpful move for the office.
Yeah. Well, thank you, Chapman. I think it's a good question. I think firstly, if you look at the way we are structuring ourselves now, since I took over January 2021, we've moved NCS out as autonomous unit. Subsequent to that, we then carved out data center as a separate unit. Last year, July, we created one Optus, where Optus Enterprise Consumer become one entity.
Most recently, just last month, we created a Singapore structure. Now you see that businesses are actually quite autonomous in Singtel, operations in Singapore, Optus in Australia, NCS data center. Which means to say, the operating model at a group level would have to change to ensure how we coordinate and run the synergies, where it makes sense for the four operating units to be covered at a group level. Where it doesn't make sense, then it'll be pushed down to the operating level to let them optimize their cost structure. This is in the progress because it's just one month into the Singapore structure, and you can appreciate the Singapore structure is intertwined because we also support the associates at a corporate level to look at managing all the different associates.
That is on the way, and you'll see probably more disclosure maybe in the mid-year, first half of the year, we'll announce the results.
Next question from Ranjan, maybe, in, in the front table.
It's Ranjan from JP Morgan. Thank you. Two questions. Firstly, following up from Chapman. On the cost, what are the cost optimization initiatives you've done in Singapore and at the headquarter level? We haven't seen, like, I think even some of the large European telecom companies have are looking at optimizing the headcount, but we've not really seen or heard anything from a Singtel perspective. If you can share more details on that. The second part of that question is, like, we speak a lot about AI and productivity gains. If your competitors are able to optimize the cost structure faster, wouldn't they benefit more from you if you don't move fast on optimizing and right-sizing your business? That's first question in two parts.
The second is, on the data center business, it feels like a lot of people are getting excited about the data center opportunity in Southeast Asia. I think some third-party research is suggesting that you might see data center capacity increase 50% in 3 years' time or 4 years' time in Southeast Asia. How do you manage, How do you see the risk that you might see, like, price deflation when it comes to data center business? Thank you.
Yeah. Yeah, maybe the first part of the question on AI is an easy question. You just have to do it faster than anyone else. Adopting AI is not something that, you know, is, is a, is an option, because if you look at the tool or new technology that emerges like that, that helps business improve its productivity, everyone needs to explore and look at it. How can it help us in our context, right? I'm, I can assure you that every OpCo is looking into how they can leverage on benefiting from generative AI to improve our own internal operations. There are already trials ongoing, and that's an area that I can assure you every company, not just in our industry, is looking at. Because the, the risk of being left behind is, is high.
If your competitors start to adopt it, they will have a lower cost structure and better margins to compete against you. Everyone is focused on that. In, in the first question, obviously, if you look at the cost synergies, it's not just only cost synergies, but it's also market potential of go-to- market, how you synergize on when you go to market as well. There are definitely some overlap and potential synergies when you look at the enterprise and the consumer business area. As Kelly and Tian Chong and Anna work through the integration, they would be able to find that synergies both from a product standpoint, from a network, from a IT, from a go-to- market. I think there are many aspect that they are exploring.
As I said, it's Ranjan, it's too early because I've just given Tian Chong one month to start at it, and I'm sure he will come back with more details. You can ask him questions later in the breakout group as well. Right. Arthur, you want to talk about the data center, Southeast Asia capacity? I think maybe just a quick, answer to that is really on, you know, the way we have done Southeast Asia is actually not going and doing it on our own. We are actually working with our partners, right? You look at Indonesia, in Batam, we are partnering Telkom to build the data center there, and in Thailand, we are working with Gulf. We are not doing it on our on our own, except for the Singapore data center bit.
The two new areas that we're exploring in Malaysia in particular, is really a spillover from Singapore, the demand, and we're also looking at a partner to do it with us. That will help us decrease a bit of that. Arthur, anything?
I think some things to add is also, if you look at most of our capacity build, right? A large part of it is actually, it's almost all in Singapore, right, where we have the 58 megawatt facility. And in Singapore, I would say at this point in time, given the whole, you know, supply-demand dynamics, the value per megawatt in Singapore is actually a few times higher than anywhere around the region, right? We do feel good about it. We actually have customers actually placing orders already. Some are wanting to do it now. We're actually holding them back because we do think it, it makes sense to wait a bit more.
We're not concerned about the capacity here in, in, in Singapore. We have to be more, a bit more careful and measured in outside Singapore, right? Particularly in areas where it seems it's a bit too hot, right? Everyone is just going in to pursue capacity. I think that one we have to make sure we go in when it's clear that there will be customer demand, sometimes even contracted. Also in certain-- and, and as Moon said, definitely going in with the right partners, who understand the, the, the lay of the land. Also finally is to really go into an area where we have power assured and not just land. Right. The other thing also to highlight is, it's not just going in and, you know, building out data center capacity. What will be the differentiator going forward is sustainable capacity.
whether it is capacity that is cooled by some new technology or green-powered by green electrons or things like that. That's an area where potentially, actually, not potentially, it is clear that customers are willing to pay a premium for that, right? That is something that we, because we have the ability to build out from greenfield, we actually are focusing in that area. You know, I don't think we have shared it, shared too much yet, but in Singapore, we are definitely moving in that direction. Yeah, you can ask, Bill and the team later.
Thank you. Ian?
Thanks. Ian Martin, New Street Research. Just to focus on enterprise and digitization. It makes sense in that those firms will, as you say, spend more to make their own businesses more efficient. We've seen this pattern play out with previous infrastructure investment cycles, 3G and 4G, where the telcos take do the heavy lifting in terms of infrastructure investment and bearing the risk and so on. The benefits seem to flow more to other parties, the OTT players, the streaming partners, and so on. I wonder what's different this time to ensure that the telcos get the appropriate return, and, you know, you, you manage that relationship with those other service providers to ensure that you get that appropriate return.
Yeah. Well, well, Ian, this, I would say is a tough question because the OTTs are huge in scale and size, and they're a global play, play. I think if, if you look at the way, we are pushing the technology in the recent adoption, at least for the enterprise adoption in Singapore, that we are seeing the early use cases, there's a lot of direct engagement with the customers to, to work on the solution of how it works. On top of that, early on, I mentioned that the orchestration platform layer of Paragon, I think that is actually one of the differentiators that we are seeing, that we are no longer just providing the infrastructure without the services.
Sitting on top of it, that is that layer that will bind us together a lot more closer with the client, rather than letting the OTT coming in and work cream off the top. That's also the reason why you see that there are other mobile operators in the world looking at adopting Paragon as a platform, because they want to take back that control, and hence we see the potential. Later on, I, I think in the afternoon, there's a session with Bill, a breakout session, where You can ask a bit more questions with Bill. I think he will explain where do we see how we capture the value.
Also in the Singapore space, I think, in the breakout session later, in the afternoon, we can also explain where we find value in that enterprise solutions beyond just pure connectivity. It is a challenge. They are definitely interested to come in and take over that business at the top, just like before. I think this is an opportunity for us to capture a bit more value. You will not be able to capture the entire value. The whole, the whole idea is, challenge is to take back some of the value and not give it up all altogether.
Thank you. Next question, please.
Hi, good morning. This is Piyush from HSBC. Thanks a lot for the presentation and organizing the Investor Day. Two questions. Firstly, on the group ROIC target, which you have set. If you have to break up into two, three components like revenue growth, which drive operating leverage, then in the second component on OpEx savings, and third being, you know, shutting down loss specific businesses or reducing your invested capital, how would you break up that contribution? That would be the first one. Second, on your capital management framework, we have some lumpy spectrum payments, which are coming up in fiscal year 2025, and possibly, that is in Australia and possibly in Singapore also when 700 MHz happens. In light of that, how should we think about additional dividend payout?
Can you dip into your excess reserve from the last 2 years, capital recycling? Any consideration of share buyback? Valuation is so low. I've been talking about it lately, but what are the considerations on share buyback?
Okay. Thanks, Piyush. I think your first question, right, about where this ROIC path, it's really driven, I think we need to most of it will have to come from EBIT improvement. Cost is one area, and number two is really the capital intensity, as we talked about, where the D&A will come down over time. You mentioned the third bucket, whether it's through I guess it's through less CapEx and really cost management. Revenues look, where there's an opportunity to price up, all of us should be doing that, right? It's something that we, we can't rely, on a, on a ROIC journey, right?
We cannot say, "Okay, it's going to be because 2 percentage points is due to the fact that we put a price up," because that's something that is not, it's not realistic, right? Of course, that's extra if we can, but and of course, we will try to price up and, and really lift revenue as much as we can whenever the opportunity comes. On the question about buybacks and, and, and spectrum and all that, well, we have $3 billion plus of cash, and that's as of Fiscal Year 2023. You know, we, we were accumulating more cash. We are looking at ways to actually fund that spectrum. It could be, you know, through many different ways. It could be our borrowings. We still have about $4 billion of debt headroom. It could be through more recycling.
I think we have shared before that we've got about $6 billion in the pipeline of potential capital recycling over the next 2 years, so that can come from that. Then worst case scenario, as I said, we still have cash on the balance sheet. On the topic about buybacks and all that, I know this is something in the past I tended to basically be clear that at that point in time, we were not looking at it. At this point in time, you know, we'll, we'll, we'll see, right? I think Our stock has actually the, the, the, what do you call that? The, the, the HoldCo discount has actually widened quite a lot. We want to be very sure that, you know, personally, I'm still geared towards paying more of a dividend.
Look, we, we have to, given that our HoldCo discount is actually at its widest, it's something that we have to probably consult and get more feedback from investors and see whether which is the more preferred route to return some capital to shareholders. So to say.
Thank you. Maybe one final question. I do, I do want to give everyone a chance to grab some coffee. Hussaini, maybe?
Yeah, hi. Thanks for the presentation. A couple of questions from me. First is on the capital structure. The current net debt to EBITDA is around 1.4. It could likely go up because of the spectrum payments. In the current high interest rate environment, how do you see the capital structure? Means, is company okay to take it further up to, say, 2 times? That's question number 1. The second question is on the fixed broadband, wherein we have seen some slowdown post-COVID. Means, are you of the view that it is temporary in nature and likely to accelerate? How do you see some of the competing technologies like FWA and satellite in that space as well? Thank you.
Good. Good. I'll take the second question, and I'll can come back to the the debt question. The fixed broadband definitely peaked during COVID because everyone was working from home and everyone wanted the the fast internet at home. As in any roll out of fixed infrastructure, it's going to take a long time because you've got to make sure that there's underlying backhaul fiber, and then you've got the last mile that you work with. It will take time, but I don't see the demand slowing down in the near future, because by and large, there will be more data being consumed, and people want their devices to be connected. They want to be connected to the rest of the world, so for entertainment, for work, for play. I think that will continue to grow.
At different pace in different countries, it may slow down a little bit with the, the macroeconomic conditions, but by and large, I think it will continue to grow in, in the next few years. In terms of alternative technology, FWA is actually one alternative, but you'll never be fully able to replace or substitute fiber. It will be an overlay strategy. In fact, being a mobile company, and integrated with fixed, we are in the best position to offer two FWA as an entry and over time migrate it to a fixed broadband. That is a proven strategy for many countries, and I think being the strong mobile player and now having a focus on fixed and growing it to that scale, I think it's definitely an, a positive for us.
We will be deploying all different technologies to make sure that's available, to make sure that we capture this market. I think on our credit standing, I think we don't, we don't focus on one particular credit ratio and say, we're going to, you know, below that or be above that. I would say again, $4 billion of headroom before our credit rating drops, that is, has been published in the rating reports. I'll leave it as that. $4 billion, we generate about $5 billion-$6 billion of cash flow every year. You know, I think we have got a lot of headroom. Yeah.
Okay. Thank you, everyone, for your questions.