Slide 1: ASX cover letter: half year results analyst briefing
9 February 2012 Office of the Company Secretary The Manager Level 41 242 Exhibition Street MELBOURNE VIC 3000 For personal use only Company Announcements Office AUSTRALIA Australian Securities Exchange 4th Floor, 20 Bridge Street General Enquiries 08 8308 1721 SYDNEY NSW 2000 Facsimile 03 9632 3215
Slide 2: Telstra Half-Year Results Announcement 2012
For personal use only TELSTRA HALF HALF-YEAR YEAR RESULTS ANNOUNCEMENT 2012 DAVID THODEY, CHIEF EXECUTIVE OFFICER TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 DISCLAIMER • These presentations include certain forward-looking statements that are based on information and assumptions known to date and are
Slide 3: We are delivering: momentum continues
WE ARE DELIVERING For personal use only MOMENTUM CONTINUES FISCAL 2012 GUIDANCE CONFIRMED TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 OUR STRATEGY IS WORKING 1. IMPROVE CUSTOMER SATISFACTION 2. RETAIN AND GROW CUSTOMER NUMBERS 3. SIMPLIFY THE BUSINESS 4. BUILD NEW GROWTH BUSINESSES TELSTRA TEMPLATE 4X
Slide 4: Financial Results
For personal use only TELSTRA HALF HALF-YEAR YEAR RESULTS ANNOUNCEMENT 2012 MARK HALL, ACTING CHIEF FINANCIAL OFFICER TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 FINANCIAL RESULTS % Growth % Growth $ Billions 1H11 1H12 (reported (guidance basis) basis*) Total Revenue 12.3 12.4 1.1 1.2 EBITDA 4.6 4.8 3
Slide 5: Sales revenue by product – mix change continues
SALES REVENUE BY PRODUCT – MIX CHANGE CONTINUES For personal use only +$46m -$14m +$94m +5.8% $12,405m +19.4% +$430m Hardware $12,263m -$247m +15.7% ACCELERATED GROWTH FOR MOBILES, FBB RETAIL AND NAS -9.0% Services +10.0% -$167m +1.2% Total $430M MOBILE GROWTH OFFSET -24.0% Mobile DECLINES FROM PSTN
Slide 6: Domestic performance improving
DOMESTIC PERFORMANCE IMPROVING For personal use only Sales Revenue Sales Revenue Sales Revenue CUSTOMER SALES AND SERVICE: SALES REVENUE +3.6% CONSUMER & COUNTRYWIDE BUSINESS ENTERPRISE & GOVERNMENT Mobile services rev. +14.4% Mobile services rev. +4.3% Mobile services rev. +13.5% TELSTRA TEMPLATE 4
Slide 7: 1% decline in reported opex
1% DECLINE IN REPORTED OPEX For personal use only LABOUR +5.6% (+$111m) Adjusted labour expense +1.0%* DVCs +0.4% (+$13m) Increase to support customer growth OTHER -7.5% (-$202m) Productivity savings and lower impairment TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 * adjusted for bond rate impacts on e
Slide 8: Product profitability
PRODUCT PROFITABILITY* For personal use only EBITDA FY09 FY10 FY11 1H11 2H11 1H12 Margin Mobiles 34% 35% 32% 29% 35% 34% Fixed BB 35% 40% 33% 33% 33%** 37% PSTN 59% 60% 59% 59% 59% 60% IP & Data 57% 62% 61% 61% 61% 59% Sensis 52% 58% 56% 41% 65% 25%*** Telstra Group 43.2% 43.7% 40.6% 37.3% 43.8% 38.
Slide 9: Cash flow and capex are closely managed
CASH FLOW AND CAPEX ARE CLOSELY MANAGED For personal use only FREE CASHFLOW ACCRUED CAPEX $6.2b $5.5b $4.4b $4.6b $3.5b $3.4b 1H09 1H10 1H11 1H12 1H09 1H10 1H11 1H12 TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 $1.9b $2.6b $2.0b $1.8b $2.1b $1.6b $1.5b $1.7b FY09 FY10 FY11 1H12 FY09 FY10 FY11 1H12 STRO
Slide 10: Guidance reaffirmed
GUIDANCE REAFFIRMED* For personal use only Measure FY11 Reported FY12 Guidance Total Revenue $25.09bn Low single-digit growth EBITDA $10.15bn Low single-digit growth Capex 14% of sales Free Cash Flow $4.5 - $5.0 billion Dividend** 28 cps fully franked TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 * Guid
Slide 11: Our priorities remain unchanged and we are making progress
OUR PRIORITIES REMAIN UNCHANGED AND WE ARE MAKING PROGRESS For personal use only 1. IMPROVE CUSTOMER SATISFACTION 2. RETAIN AND GROW CUSTOMER NUMBERS 3. SIMPLIFY THE BUSINESS 4. BUILD NEW GROWTH BUSINESSES TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 CUSTOMER GROWTH CONTINUES CUSTOMER RECORD SERVICES D
Slide 12: Customer satisfaction is improving
CUSTOMER SATISFACTION IS IMPROVING For personal use only ACTIONS DELIVERABLES • New consumer bill format • IT billing enhancements to provide • 28% reduction in consumer call customers with more billing information • Mobile Usage Alerts so customers can volumes better manage their usage and avoid bi
Slide 13: NAS business continues to grow
NAS BUSINESS CONTINUES TO GROW For personal use only NAS REVENUE GROWTH 19.4% REVENUE GROWTH 19% 11% SALES ORDER PIPELINE >$1B -3% -14% SIGNIFICANT CONTRACT WINS TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 FY09 FY10 FY11 1H12 ASIAN ASSETS – CSL PERFORMING WELL REACH: EXTEND OUR ASIA IP NETWORK STRATEG
Slide 14: Digital media business established
DIGITAL MEDIA BUSINESS ESTABLISHED For personal use only PAY TV IPTV SME ADVERTISING TELSTRA DIGITAL MEDIA ONLINE BUSINESSES ISP TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 ADVERTISING SENSIS UPDATE KEY MARKET DEVELOPMENTS • Progress in restructuring operations to adapt to challenges of the directorie
Slide 15: Summary
SUSTAINABILITY AT TELSTRA For personal use only TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 SUMMARY OUR STRATEGY IS DELIVERING VALUE CUSTOMER SATISFACTION IS IMPROVING GUIDANCE IS UNCHANGED TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 14