2015 Financial Results Presentation Agenda Company highlights nbn - PowerPoint PPT Presentation

2015 Financial Results Presentation

Agenda Company highlights nbn ™ operational progress • • Financial results Questions • • 2

2020 goals Connect Australia. Close Digital Divide 8 million premises connected by 2020 Five strategic imperatives Build a high Build affordable Make nbn a Build united performance Build processes products and great place to partnerships and reliable and systems services work network 3

Meeting our FY 2015 commitments Premises Serviceable Total Revenue FY15 Actual FY15 FY14 FY14 0 50 100 150 200 0 500,000 1,000,000 1,500,000 millions Active Premises Customer Satisfaction FY15 Actuals FY15 FY14 FY14 6.3 6.4 6.5 6.6 6.7 0 200,000 400,000 600,000 Customer Satisfaction (out of 10) 4

Stephen Rue Chief Financial Officer 5

Financial summary EBITDA ARPU Telco revenue ($1.1bn) $40 $161m FY14: ($1.0bn) FY14: $37 FY14: $60m Capex Opex Equity $3.3bn $1.3bn $13.2bn FY14: $2.5bn FY14: $1.1bn FY14: $8.4bn 6

Results 7

Telecommunications revenue Telecommunications Revenue by Quarter 60 55 50 Full Year 42 $m 30-Jun-14 30-Jun-15 40 36 FTTP 31 93 $m CVC/NNI 15 46 28 30 Satellite 12 12 21 20 Fixed Wireless 2 10 FTTN - - 10 HFC - - 0 Total 60 161 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 8

Premises activated Cumulative Active End Users by Quarter 600,000 485,615 500,000 As at 388,841 400,000 Cumulative 30-Jun-14 30-Jun-15 Active End Users Premises 322,391 Fibre 151,127 399,854 300,000 266,984 Fixed Wireless 16,553 47,473 210,628 Satellite 42,948 38,288 200,000 Total 210,628 485,615 ARPU $37 $40 100,000 0 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 9

Operating expenses Annual Operating Expenditure 1,400 1,294 Full Year 1,200 1,070 $m 30-Jun-14 30-Jun-15 1,000 Telecom & Network 397 535 Expenses 800 Employee Expenses 384 410 $m IT & Software Costs 114 120 600 Other 175 229 400 Total 1,070 1,294 200 0 30-Jun-14 30-Jun-15 10

Premises serviceable Cumulative Premises Serviceable by Quarter 1,400,000 1,153,077 1,200,000 1,000,000 As at 899,374 Cumulative 30-Jun-14 30-Jun-15 Premises Premises Serviceable 800,000 748,552 639,927 Fibre 392,410 836,680 552,618 600,000 Fixed Wireless 112,208 268,397 Satellite 48,000 48,000 400,000 Total 552,618 1,153,077 200,000 0 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 11

Capital expenditure Annual Capital Expenditure 3,328 3,500 Full Year 3,000 $m 30-Jun-14 30-Jun-15 2,480 FTTP 1,007 1,692 2,500 $m FTTN 3 334 2,000 HFC - 48 Fixed Wireless 278 340 1,500 Satellite 517 247 1,000 Transit 381 233 Common Capex 294 434 500 Total 2,480 3,328 0 30-Jun-14 30-Jun-15 12

Capital expenditure - LTD Life to Date Capital Expenditure ($m) — $8.9bn Life to Date PP&E and Intangibles ($m) — $13.2bn Assets 1,611 1,652 Common Capex Common Capex Under Finance HFC FTTP 48 50 Lease HFC 4,244 FTTP 3,584 +$3.8bn + = Gifted Transit 4,665 Assets 1,211 Transit +$0.3bn 385 FTTN 1,241 FTTN Fixed Other Satellite 917 338 Wireless 901 Fixed 1,241 +$0.2bn Satellite Wireless 13

Cost per premises – Brownfields Brownfields Cost Per Premises ($) 5,000 4,387 4,359 4,316 LTD 4,500 4,000 $ 30-Jun-14 31-Dec-14 30-Jun-15 3,500 LNDN 2,146 2,119 2,080 3,000 Customer Connect 1,457 1,460 1,552 2,500 Total Build CPP 3,602 3,579 3,632 2,000 LNDN Duct Lease 757 737 755 1,500 Total 4,359 4,316 4,387 1,000 500 0 30-Jun-14 31-Dec-14 30-Jun-15 14

Cost per premises – Greenfields Greenfields Cost Per Premises ($) 3,500 3,104 LTD 3,000 2,798 2,780 $ 30-Jun-14 31-Dec-14 30-Jun-15 Design & Build 1,706 1,616 1,711 2,500 TFAN / TTFN 1,398 1,165 1,087 2,000 Total 3,104 2,780 2,798 1,500 1,000 500 0 30-Jun-14 31-Dec-14 30-Jun-15 15

Cost per premises – Fixed Wireless Fixed Wireless Cost Per Premises ($) 4,000 3,724 3,637 3,595 LTD 3,500 $ 30-Jun-14 31-Dec-14 30-Jun-15 3,000 Design & Build 3,073 2,996 2,966 2,500 Ground & Tower Lease 651 641 629 2,000 Total 3,724 3,637 3,595 1,500 1,000 500 0 30-Jun-14 31-Dec-14 30-Jun-15 16

Bill Morrow Chief Executive Officer 17

2020 goals Connect Australia. Close Digital Divide 8 million premises connected by 2020 Five strategic imperatives Build a high Build affordable Make nbn a Build united performance Build processes products and great place to partnerships and reliable and systems services work network 18

United partnerships: DPs, RSPs and more Competitive construction • agreements to reward speed, quality and safety Training program to scale industry • workforce Field workforce expected to grow to • 9,000 More than 52 RSPs • Collaborative planning • Co-marketing • 19

Products and services: RSP and end-user focus New products – FTTB • Trialling ≤50Mbps Fixed Wireless • Technology Choice offering • Reduced CVC pricing • Extended construction forecasts • Increased RSP satisfaction • NPS from 16 to 27 • 20

Products and services: visionary brand New brand to engage • the community Targeted campaigns • tied to rollout Increase in public • sentiment 21

Products and services: co-brand RSP campaigns 22

Products and services: end-user product mix Fixed line mix at 30 June 2015 77% of nbn™ plans chosen • remain 12/1 or 25/5 12/1 - 35% Consistent dominance YoY of • 25/5 - 42% 12/1 and 25/5 categories 25/10 -1% 50/20 - 4% Small shift YoY between 12/1 • tier and 25/5 100/40 - 18% 23

Products and services: data consumption trends Data consumption Average GBs per month 30 June FY15 120 nbn ™ 93GB 109GB 100 Fixed Broadband* 80 58GB 60 Mobile Dongle* 1.86GB 40 Mobile Handset* 840MB 20 0 30 June FY14 62GB 77GB n bn™ Download Upload Total 45GB Fixed Broadband* 2GB Mobile Dongle* Mobile Handset* 450MB Upload data 24 Source: ABS and nbn * ABS data to 31 Dec 2014

High performing, reliable network: FTTP Doubled FTTP premises • serviceable and activations YoY More than doubled 12 week • rolling serviceable run rate Changes to New • Developments policy 25

High performing, reliable network: FTTN/B Commercial FTTB product and • MDU program launched Successful FTTN trials in NSW • and QLD with speeds of ≤100Mbps 780,000 FTTN premises in • plan and construction at 30 June 2015 Around 200,000 premises • ready for commercial launch 26

High performing, reliable network: HFC High level design complete • Equipment supplier selected • Construction trials launched in • Redcliffe, QLD Will launch with world leading • DOCSIS 3.1 capable of Gbps speeds On track for product launch • EOY 27

High performing, reliable network: fixed wireless 270,000 premises serviceable • Launched wholesale • 50Mbps/20Mbps trial services across the network World-leading in speed, price • and data: Ovum research Very high customer • satisfaction 28

High performing, reliable network: nbn ™ satellite 10 ground station locations • complete Sky Muster on its way to • launch site RSPs in product development • Introduced new capacity and • fair-usage on ISS 29

Processes and systems Major IT releases every quarter • Order process flow completely • automated Process excellence embedded as a • cultural norm ¼ staff trained • More than 50 DMAIC projects • Evidence in action • DP collaboration for increased • productivity 30

Great place to work: employee focus Aligned on a single goal • Focused on an internal customer- • supplier model Significant culture uplift • Simplified governance and decision • making Engagement increased by 16% • 31

A year of achievement Launched Improved FTTB Improved Employee Customer Engagement Satisfaction Wide scale FTTN construction Upgraded IT Capabilities Refreshed HFC Brand Equipment and Trials

FY16 Targets ~300,000,000 ~2,600,000 ~955,000 Premises RFS Active Premises Total Revenue 3,000,000 1,200 0.4 2,500,000 1,000 0.3 2,000,000 800 1,500,000 600 0.2 1,000,000 400 0.1 500,000 200 0.0 0 0 FY14 FY15 FY16 Target FY14 FY15 FY16 Targets FY14 FY15 FY16 Target billions 33

Questions 34