Slide 1: Half Year Results Presentation
HALF YEAR RESULTS PRESENTATION 24 MARCH 2015 TRG
Slide 2: 1H15 Financials: Summary Results
1H15 FINANCIALS: SUMMARY RESULTS For personal use only $m 1H15 1H14 Growth Revenue 627.3 394.6 59% EBITDA (Reported) 236.2 165.6 43% EBITDA (Underlying1) 236.2 159.0 49% NPAT 106.7 90.1 18% EPS (cents) 13.4 11.4 18% EPS (cents) excl intangible amortisation 15.5 12.2 27% 1 Refer to notes on slide 8 f
Slide 3: 1H15 Financials: Continued Strong Growth
1H15 FINANCIALS: CONTINUED STRONG GROWTH For personal use only $M $M ¢ $M ¢ All charts show actual reported results. -3-
Slide 4: 1H15 Financials: EBITDA Growth
1H15 FINANCIALS: EBITDA GROWTH For personal use only EBITDA $M -4-
Slide 5: 1H15 Financials: Free Cash Flow
1H15 FINANCIALS: FREE CASH FLOW $m For personal use only 1H15 1H14 Operating Cash Flow 238.1 178.2 Tax (43.7) (50.3) Interest (7.3) (0.7) Capex (84.2) (24.1) Free Cash Flow 102.9 103.1 Continued strong operating and free cashflow performance -5-
Slide 6: 1H15 Financials: Free Cash Flow Utilisation
1H15 FINANCIALS: FREE CASH FLOW UTILISATION $m For personal use only 1H15 1H14 Free Cash Flow 102.9 103.1 Utilisation: Equity investments 24.9 - Debt repayments 30.0 42.0 Dividend payments 37.7 31.8 Other (2.1) (1.5) Increase in cash at hand 12.4 30.8 102.9 103.1 -6-
Slide 7: 1H15 Financials: Bank Debt
1H15 FINANCIALS: BANK DEBT For personal use only $m Group debt balance at 31 July 2014 350.0 Repayments made during 1H15 (30.0) Group debt balance at 31 Jan 2015 320.0 Net debt at 31 Jan 2015: $283.9m (net of $36.1m cash), down by $42.3m in 1H15. Debt to annualised EBITDA ratio <0.7x -7-
Slide 8: 1H15 Financials: Segment & Product Analysis
1H15 FINANCIALS: SEGMENT & PRODUCT ANALYSIS $m For personal use only REVENUE Consumer Corporate Other TOTAL Broadband Mobile Other Total Total 1H14 230.8 39.0 2.9 272.7 121.9 2 - 394.6 1H15 264.0 41.5 2.5 308.0 319.3 - 627.3 EBITDA Consumer Corporate Other TOTAL Broadband Mobile Other Total Total 1H
Slide 9: Corporate Financials
CORPORATE FINANCIALS For personal use only Increase in 1H15 Corporate EBITDA driven by AAPT acquisition and subsequent organic growth. 1H15 Corporate EBITDA up by $23.8m (25%) compared to “Proforma 1H14”. EBITDA margin up from 29% for “Proforma 1H14” to 37% in 1H15. “Recurring EBITDA” excludes IRU g
Slide 10: Newly Launched Business Product
NEWLY LAUNCHED BUSINESS PRODUCT For personal use only Minimum charge is based on a 36 month contract and includes a setup cost of $2,199. Offer is only available in limited TPG on-net buildings. Customer address must be pre-qualified before a formal quotation can be provided. First of many planned p
Slide 11: International Transmission Capacity
INTERNATIONAL TRANSMISSION CAPACITY For personal use only Geographically diverse submarine capacity across multiple cable systems New SEA-US capacity providing owned and controlled capacity between Guam and US New agreement - IRU capacity with Southern Cross to increase capacity -11-
Slide 12: Consumer: Broadband Subscribers
CONSUMER: BROADBAND SUBSCRIBERS For personal use only Overall growth of 38k in 1H15 Subscriber growth is 100% organic On Net churn rate 1.3% in 1H15 -12-
Slide 13: Consumer: Broadband ARPU
CONSUMER: BROADBAND ARPU Overall Broadband ARPU Trend For personal use only 1H15 Broadband ARPU composition 62.8 54.5 53.3 52.5 42.3 7.0 -13- Note: broadband ARPUs exclude GST, voice revenue and any one-off charges e.g. installs and equipment sales.
Slide 14: Consumer: Home Phone Subscribers
CONSUMER: HOME PHONE SUBSCRIBERS For personal use only Steady growth on TPG’s own Home Phone fixed line product -14-
Slide 15: Consumer: Mobile Subscribers
CONSUMER: MOBILE SUBSCRIBERS For personal use only Base declined due to price increase to existing base and 3G only product -15-
Slide 16: Consumer: TPG Net Promoter
CONSUMER: TPG NET PROMOTER For personal use only Focused on customer service - we are more than just price -16-
Slide 17: Consumer: New NBN Plans (Coming Soon)
CONSUMER: NEW NBN PLANS (COMING SOON) For personal use only -17-
Slide 18: iiNet Scheme: Recommended all cash bid at significant premium
iiNet Scheme: Recommended all cash bid at significant premium For personal use only 1. For comparison purposes both consideration and trading prices on a cum dividend basis i.e. compares $8.60 cash scheme consideration plus interim dividend of $0.105 to trading up to 11 March 2015 (the last day iiNe
Slide 19: Interim Dividend
INTERIM DIVIDEND For personal use only 5.5 cents per share interim dividend Payable 19 May 2015 Record date 14 April 2015 22% increase on prior year interim dividend -19-
Slide 20: Guidance
GUIDANCE For personal use only $m Previous Updated Guidance Guidance FY15 EBITDA 455 - 460 480 - 483 FY15 Capex 100 - 120 135 - 145 -20-
Slide 21: Appendix: Forecast intangible amortisation and associated cashflows
APPENDIX Forecast intangible amortisation and associated cashflows For personal use only $m FY15 FY16 FY17 FY18 FY19 FY20 FY21- FY25 FY26- FY30 Amortisation of Intangibles Acquired customer bases 31.4 15.8 6.5 2.5 1.5 1.1 1.3 0.0 Capacity IRUs: Existing 7.5 6.8 6.8 6.8 6.8 6.8 30.9 4.6 New - 0.2 1.5
Slide 22: Q&A Thank You
For personal use only Q&A THANK YOU
Slide 23: 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