Telstra Group Limited · ASX:TLS
Telstra — Investor Day (April 2015)
24 slides from Telstra's investor day presentation, Apr 23, 2015
Slide 1: Telstra Investor Day – Growth Through Network and Product Differentiation
23 April 2015 Office of the Company Secretary Level 41 242 Exhibition Street The Manager MELBOURNE VIC 3000 AUSTRALIA Company Announcements Office General Enquiries 08 8308 1721 Australian Securities Exchange Facsimile 03 9632 3215 4th Floor, 20 Bridge Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dea
Slide 2: Forward-looking statements
22/04/2015 • These presentations include certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied
Slide 3: Mobiles and Fixed, Innovation and Differentiation
22/04/2015 WARWICK BRAY MOBILES AND FIXED, INNOVATION AND DIFFERENTIATION
Slide 4: Mobiles, Fixed Data and Fixed Voice revenue growth
22/04/2015 Page 5 MOBILES 9.6% 7.4% 6.4% 4.6% 3.8% H1 FY13 H2 FY13 H1 FY14 H2 FY14 H1 FY15 FIXED DATA 6.5% 7.8% 5.7% 6.0% 4.4% H1 FY13 H2 FY13 H1 FY14 H2 FY14 H1 FY15 FIXED VOICE -8.2% -7.3% -7.6% -6.9% -10.8% H1 FY13 H2 FY13 H1 FY14 H2 FY14 H1 FY15 Page 6 3
Slide 5: FY13, FY14 and 1H15 Mobiles Revenue and ARPUs
22/04/2015 FY13 & FY14 & 1H15 REVENUE ($M) 2012/13 2013/14 2014/15 TELSTRA CORPORATION H1 H2 FY13 H1 H2 FY14 H1 MOBILES REVENUE ($ MILLIONS) PCP PCP PCP PCP PCP PCP PCP DEC-12 GROWTH JUN-13 GROWTH JUN-13 GROWTH DEC-13 GROWTH JUN-14 GROWTH JUN-14 GROWTH DEC-14 GROWTH Postpaid handheld 2,377 0.3% 2,42
Slide 6: FY13, FY14 and 1H15 Fixed Revenue and ARPUs
22/04/2015 FY13 & FY14 & 1H15 REVENUE ($M) 2012/13 2013/14 2014/15 TELSTRA CORPORATION H1 H2 FY13 H1 H2 FY14 H1 FIXED REVENUE ($ MILLIONS) PCP PCP PCP PCP PCP PCP PCP DEC-12 GROWTH JUN-13 GROWTH JUN-13 GROWTH DEC-13 GROWTH JUN-14 GROWTH JUN-14 GROWTH DEC-14 GROWTH Fixed Voice 2,219 (10.8%) 2,137 (8.
Slide 7: Creating Australia's largest Wi-Fi network and broadband offers
22/04/2015 FAST, RELIABLE CLEAR AND RELIABLE BROADBAND CALLING AMAZING ENTERTAINMENT CREATING AUSTRALIA’S AND APPS LARGEST WI-FI NETWORK AT HOME OR ON-THE-GO EXPERT TECHNOLOGY ADVICE Page 11 Page 12 6
Slide 8: Emerging trends and opportunities
22/04/2015 EMERGING TRENDS AND OPPORTUNITIES NETWORK WILL TABLETS AND REMAIN HYBRID IMPORTANT BUT MACHINES END-TO-END REPLACING EXPERIENCES »° qm TRADITIONAL PC WILL BE KEY © (3 AND LAPTOPS MOVING FROM SINGLE-SCREEN, LINEAR CONTENT TO MULTI-SCREEN NON-LINEAR CONTENT TECHNOLOGY SMART HOME IS BLURRING
Slide 9: Enterprise mobility case studies: Scanvogn and Gridtraq M2M
22/04/2015 • A fully managed service Reliable and extensive network to manage for Scanvogn’s communications to wagons in near real-time. customers Monitor and control wagons remotely Wagon location • Increased security Alerts on events such as maintenance and • Decreased service security costs Up to
Slide 10: Conclusion: Pursue growth through network and product differentiation
22/04/2015 CONCLUSION ENCOURAGING RESULTS CONTINUE TO IMPROVE CUSTOMER ADVOCACY ‘<2 PURSUE GROWTH THROUGH NETWORK AND PRODUCT DIFFERENTIATION IT's HOW € WE CONNECT MIKE WRIGHT NETWORK DIFFERENTIATION AND INNOVATION IT'S HOW WE CONNECT
Slide 11: New businesses and applications rely on the network
22/04/2015 NEW BUSINESSES AND APPLICATIONS RELY ON THE NETWORK UBER WHATS GOOGLE BANKING NETFLIX PRESTO APP FACEBOOK AKAMAI MICROSOFT THE NETWORK RELIABLE DYNAMIC SCALABLE SECURE INTERNET OF THINGS 4K VIDEO DEVICES Page 19 WORLD LEADING • FON enabled Gateways, Telstra WiFi • First Live LTE-B DIFFERE
Slide 12: Mobile network technology evolution and speeds
22/04/2015 LTE-A 450 Mbps then 600 Mbps then … VoWiFi Page 21 World First Australian First * Technology speeds refer to peak network speeds. Customer speeds will be slower. NextG LTE700 Introduced. commissioned 2 carrier CA, 300Mbps) October 2006 4x2MIMO Twice Q4FY15. LTE1800 30% efficiency gain, th
Slide 13: LTE-B and LANES for emergency services
22/04/2015 LTE-B World User Group GSMA, GSA Telstra, Verizon Facebook Event Media: Horseracing, Stadiums, Golf, Racing, Cycling, Marathons M2M: Signage, Mass Device/Car/Lighting Software Updates: OS and App Updates, Facebook trial Mass Media: LTE-B in a STB Emergency Use: Alerts, PTT, PA World First
Slide 14: Network, home and enterprise platform evolution
22/04/2015 • NBN ready where possible • Self analytics and remote support • FON enabled • First Aust carrier with 802.11AC, Beam forming, boosters • VoWiFi • DOCSIS 1 to DOCSIS 3 • Home Control and Media • DSL to FTTN, FTTP,HFC integration • Evolution to IP Voice and • Virtual Home Gateway Evolution
Slide 15: Telstra remains well positioned in fixed and mobile
TELSTRA REMAINS WELL POSITIONED IN THE FIXED AND MOBILE SPACE VIA ONGOING INVESTMENT IN OUR NETWO INTRODUCTION OF INNOVATIVE SOLUT ENHANCE CUSTOMER EXPERIENCE. 22/04/2015 14
Slide 16: Impact at pace, scale and reach: cyber security
22/04/2015 Financial Loss Anthem Impact at Pace, Brand Scale & Reach Legal Damage Action Reduced Productivity Page 29 Mobility and End Advanced Discovery Point Security Malware Security Analytics Next Generation Protection Protect the network and Correlating a diverse set of Perimeter Solutions Stat
Slide 17: Expertise to understand, manage and reduce business security risk
22/04/2015 ASSESS AND MITIGATE RISK CUSTOMISED SOLUTIONS BUILT PROTECT YOUR ASSETS KNOW YOUR ADVERSARY ON TIME AND ON BUDGET Expertise to help you Guidance, design and Services to strengthen Gain intelligence through understand, manage and project management to security posture, security data and an
Slide 18: Page 33 Page 34
22/04/2015 Page 33 Page 34 17
Slide 19: Telstra's industry leading approach to managing cyber risk
22/04/2015 TELSTRA'S INDUSTRY LEADING APPROACH TO EFFECTIVELY MANAGE THE CYBER RISK WE UNDERSTAND THE CYBER THREAT (£. WHY KEEPING CUSTOMERS’ DATA SAFE AND OUR NETWORKS SECURE P) TELSTRA AND FIVE KNOWS OF CYBER SECURITY rye CYBER DISCOVERY & INFLUENCE SECURITY SECURITY SERVICES PORTFOLIO . | END TO
Slide 20: 5G and future network trends
22/04/2015 one bill, one device, triple play 1,000s of apps Network Device Price of service Number of apps Source: Vision Mobile, Telstra Page 37 1. 5G will be standardised 2. Networks will be optimised for traffic against specific services and media types 3. Consumer devices will be dominant, but s
Slide 21: Future vision: 20-year productivity boom
22/04/2015 FUTURE VISION 20-YEAR PRODUCTIVITY BOOM POWERED BY TWO NEW ABSTRACTIONS a_i & & mace |enee “oN, a sis) & . ao a _ «= Oolllgs 2 « o ~~ se ec By ‘2 - ose a ; ry > os « CoP eS » & a & a 2) a = &/ 2 , ‘ eo ry <a @ ed Nou 2 OWS 2» & oe rd WORLD OF THINGS EXPLODING WITH DATA FLEXIBLE NETWORKS C
Slide 22: Network requirements: 10 Gbps and sub-millisecond latency
22/04/2015 “Hyper Giants” and Advanced Content Providers CDNs Akamai Google Limelight Level 3 Google Netflix Netflix Microsoft Apple Facebook Amazon Tier 2 ISPs Websites/basic content providers Page 41 App coverage with data rates exceeding 10 Gbps Network latency under 1 millisecond Capacity expans
Slide 23: Five key enabling technologies: cloud, big data and security
22/04/2015 FIVE KEY ENABLING TECHNOLOGIES CLOUD AND BIG DATA Easily updgraded CLOUD P BENEFITS ; Always up © © AGILITY AND OPERATIONAL EFFICIENCY DATA INSIGHT NEW COMPETITIVE ADVANTAGE IT's HOW WE CONNECT Page 43 FIVE KEY ENABLING TECHNOLOGIES SECURITY CHAIN OF CUSTODY DATA IT's HOW WE CONNECT Page
Slide 24: No Moore's law: IoT demand and video growth
22/04/2015 Page 45 IoT developers will create demand No Moore’s law for OPEX What will happen when servers go from 1G to 10G? How big does this gap become? More speed = More video Page 46 23