Tpg Telecom Limited · ASX:TPG
Tpg Telecom — FY2015 Earnings Presentation
21 slides from Tpg Telecom's earnings presentation, Sep 22, 2015
Slide 1: Full Year Results
As FULL YEAR RESULTS — ete eration —- a a RG 22 SEPTEMBER 2015 eee sonal use only
Slide 2: FY15 Financials: Summary Results
FY15 FINANCIALS: SUMMARY RESULTS For personal use only $m FY15 FY14 Growth Revenue 1270.6 970.9 31% EBITDA 484.5 363.7 33% NPAT 224.1 171.7 31% EPS (cents) 28.2 21.6 31% EPS (cents) excl intangible amortisation 32.1 24.7 30% -2-
Slide 3: FY15 Financials: Continued Strong Growth
FY15 FINANCIALS: CONTINUED STRONG GROWTH For personal use only $M $M ¢ $M ¢ -3-
Slide 4: FY15 Financials: EBITDA Growth
FY15 FINANCIALS: EBITDA GROWTH For personal use only EBITDA $M -4-
Slide 5: FY15 Financials: Free Cash Flow
FY15 FINANCIALS: FREE CASH FLOW For personal use only $m FY15 FY14 Operating Cash Flow 492.8 396.6 Tax (110.9) (96.1) Interest (14.3) (7.5) Capex (153.8) (69.5) Free Cash Flow 213.8 223.5 Continued strong operating and free cashflow performance -5-
Slide 6: FY15 Financials: Free Cash Flow Utilisation
FY15 FINANCIALS: FREE CASH FLOW UTILISATION $m For personal use only FY15 FY14 Free Cash Flow 213.8 223.5 Utilisation: Equity investments 115.6 - AAPT acquisition - 465.9 Net repayment / (drawdown) of debt 21.0 (308.0) Dividend payments 81.4 67.5 Other (4.1) 0.4 Movement in balance of cash at hand (
Slide 7: FY15 Financials: Bank Debt
FY15 FINANCIALS: BANK DEBT For personal use only $m Group debt balance at 31 July 2014 350.0 Repayments made during FY15 (21.0) Group debt balance at 31 July 2015 329.0 Net debt at 31 July 2015: $305.3m (net of $23.7m cash). Debt to EBITDA ratio <0.7x as at 31 July 2015. Bank debt on completion of i
Slide 8: FY15 Financials: Segment & Product Analysis
FY15 FINANCIALS: SEGMENT & PRODUCT ANALYSIS $m For personal use only REVENUE Consumer Corporate Other TOTAL Broadband Mobile Other Total Total FY14 478.4 79.1 5.7 563.2 407.7 2 - 970.9 FY15 544.4 79.1 4.6 628.1 642.5 - 1270.6 EBITDA Consumer Corporate Other TOTAL Broadband Mobile Other Total Total F
Slide 9: Corporate Financials
CORPORATE FINANCIALS For personal use only Increase in FY15 Corporate EBITDA driven by AAPT acquisition and subsequent organic growth. Continued EBITDA growth and margin expansion in 2H15. EBITDA margin up from 29% for “Proforma 1H14” to 39% in 2H15. “Recurring EBITDA” excludes IRU gains and other o
Slide 10: Consumer: Broadband Subscribers
CONSUMER: BROADBAND SUBSCRIBERS For personal use only Overall growth of 73k in FY15 (excludes FTTB which is now within wholesale) Subscriber growth is 100% organic Average monthly On Net churn rate 1.4% in 2H15 -10-
Slide 11: Consumer: Broadband ARPU
CONSUMER: BROADBAND ARPU Overall Broadband ARPU Trend For personal use only 2H15 Broadband ARPU composition 61.5 53.8 52.6 41.1 7.0 -11- Note: broadband ARPUs exclude GST, voice revenue and any one-off charges (e.g. installs and equipment sales).
Slide 12: Consumer: Home Phone Subscribers
CONSUMER: HOME PHONE SUBSCRIBERS For personal use only Steady growth on TPG’s own Home Phone fixed line product On Net voice made possible by means of national voice network -12-
Slide 13: Consumer: Mobile Subscribers
CONSUMER: MOBILE SUBSCRIBERS For personal use only Base continued to decline in 2H15 Released 4G plans in a competitive market place -13-
Slide 14: Consumer: TPG Net Promoter
CONSUMER: TPG NET PROMOTER For personal use only Focused on customer service - we are more than just price -14-
Slide 15: iiNet Game Plan
iiNET GAME PLAN For personal use only Retain iiNet, Internode and Westnet brands Introduce simple and competitive product set Maintain call centres to ensure strong customer service reputation is upheld Consolidate and improve IT systems Maximise use of TPG Group owned infrastructure -15-
Slide 16: iiNet Consumer
iiNET CONSUMER For personal use only New Naked Bundle Plan set introduced 17 September 2015 First of many iiNet product refreshes -16-
Slide 17: iiNet Small Business
iiNET SMALL BUSINESS For personal use only • Leverage iiNet business strength in the small business space • iiNet Enterprise and Government will move into TPG Sales -17-
Slide 18: Final Dividend
FINAL DIVIDEND For personal use only 6.0 cents per share final dividend Payable 17 November 2015 Record date 13 October 2015 Total FY15 dividends = 11.5 cents per share 24% increase over prior year -18-
Slide 19: Appendix: Forecast Intangible Amortisation and Cashflows
APPENDIX Forecast intangible amortisation and associated cashflows (excludes new intangible amortisation arising as a result of the iiNet acquisition) For personal use only $m FY15 FY16 FY17 FY18 FY19 FY20 FY21- FY25 FY26- FY30 Actual Amortisation of Intangibles Acquired customer bases 31.5 15.8 6.5
Slide 20: Q&A Thank You
For personal use only Q&A THANK YOU
Slide 21: Disclaimer
DISCLAIMER For personal use only This presentation contains certain forward-looking and unaudited information. Such information is based on estimates and assumptions that, whilst considered reasonable by the Company, are subject to risks and uncertainties. Actual results and achievements could be si