Telstra Group Limited · ASX:TLS
Telstra — Macquarie Australia Conference 2009
31 slides from Telstra's conference presentation, May 8, 2009
Slide 1: ASX cover letter for Macquarie conference presentation
8 May 2009 Office of the Company Secretary The Manager Level 41 242 Exhibition Street Company Announcements Office MELBOURNE VIC 3000 Australian Stock Exchange AUSTRALIA 4th Floor, 20 Bridge Street General Enquiries 08 8308 1721 SYDNEY NSW 2000 Facsimile 03 9632 3215 ELECTRONIC LODGEMENT Dear Sir or
Slide 2: The transformation journey continues
The transformation journey continues Sol Trujillo, CEO Macquarie Australia Conference 8 May 2009 Sydney
Slide 3: Disclaimer
Disclaimer • 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 4: Revenue consensus up more than $2b
Revenue consensus up more than $2b 27,000 :3 .2 % Actual Sales Revenue su s CAGR nse n ~$2.1b increase in 25,000 nt co Consensus (Nov 05) Curre Consensus revenue expectation Revenue ($'m) Consensus (Apr 09) 23,000 R: 1.3% o n s en sus CAG c Nov 05 21,000 19,000 17,000 15,000 FY02 FY03 FY04 FY05 FY06
Slide 5: Transformation delivers sustained growth
Transformation delivers…. 9 Sustained revenue growth 9 Sustained earnings growth 9 Sustained FCF growth 4
Slide 6: Global Peers – Mobile services revenue growth
Global Peers – Mobile services revenue growth* (2005 – 2008) 12.3% 8.1% 2005 7.1% 2008 4.1% 4.2% 3.1% 1.4% -0.6% -1.6% -3.7% Telstra France Deutsche Telecom Telefonica Telecom Telekom Italia * Domestic mobile operations 5
Slide 7: Global Peers - EBITDA Growth
Global Peers - EBITDA Growth* (2005 – 2008) 9.9% 2005 5.6% 5.7% 2008 2.9% 2.7% 0.7% 0.4% 0.0% 0.2% -0.4% -2.2% -2.7% Telstra BT France Deutsche Telecom Telefonica Telecom Telekom Italia * Reported organic growth 6
Slide 8: Over-delivering on the promise
Over-delivering on the promise 3 Year CAGR: FY05 to FY08 Actual Status Quo: New Plan: Nov 05 Nov 05 FY08 CAGR Fixed -13% to -15% -6% to -8% -4% Mobile 3% to 5% 6% to 8% 11% Internet 16% to 18% 28% to 30% 36% 7
Slide 9: Continued Strength from Domestic Retail Business
Continued Strength from Domestic Retail Business 1H09 Sales Revenue Growth More than 11% mobile services TC +3.0% revenue growth year-to-date TB +7.2% TE&G +3.9% 25% IP access revenue growth year- to-date Total Retail (excl Sensis) +4.1% Sensis +8.4% More than one million wireless Wholesale -4.1% br
Slide 10: Telstra Consumer
Telstra Consumer Sales Revenue +13% $5.2b $5.0b $4.9b $4.8b $4.6b 1H07 2H07 1H08 2H08 1H09 9
Slide 11: Telstra Business
Telstra Business Sales Revenue +18% $1.93b $1.82b $1.80b $1.69b $1.64b 1H07 2H07 1H08 2H08 1H09 10
Slide 12: Telstra Enterprise and Government
Telstra Enterprise and Government Sales Revenue +9% $2.40b $2.35b $2.31b $2.28b $2.21b 1H07 2H07 1H08 2H08 1H09 11
Slide 13: Media-Comms growth strategy…Network, Content, Delivery
Media-Comms growth strategy…Network, Content, Sensis Sales Revenue +25% Delivery $1,034m $954m $885m $828m ..and in China 1H06* 1H07 1H08 1H09 * 1H06 Revenue normalised for Melbourne YP print of $174m. 12
Slide 14: Telstra as an online publisher
Telstra as an online publisher Unique Audience (000’s) – March 2009 Additional Mobile browser audience 2,647 10,038 9,365 5,654 5,226 5,147 5,122 4,989 Email / Search / Media / Social Search Media Auctions IM Media Comms Networking Source: Nielsen//Netratings Netview, March 2009 13
Slide 15: Other strategic outcomes delivered
Other strategic outcomes delivered Nov 2005 Strategy Day May 2009 Report Card Our Other Business Priorities 9 Upgrade Melbourne HFC to * 100Mbps by Christmas 09 • Drive operational improvement and leverage the brand 9 Next G™ Hong Kong investment and HFC network • Continue to build on our market lea
Slide 16: $6bn-$7bn FCF in FY10
$6bn-$7bn FCF in FY10 15
Slide 17: CEO speech: transformation achievements
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra Good morning everybody, it is great to be with you in Sydney today. I am pleased to be able to talk to you about Telstra’s transformation achievements and importantly for you, the investors, remind you what transformation has bu
Slide 18: CEO speech: market share and ARPU
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra Not only has this strategy enabled us to take market share but we have also grown ARPU. In H2 2005 our mobile ARPU was $43, the lowest in the market. In H1 09 our ARPU was $53, higher than both Optus and Vodafone. The returns on
Slide 19: CEO speech: transformation program costs
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra Faced with these challenges, the multi-billion dollar transformation was an imperative, as recognised by both the management and board of the company. Remember, this very complex, integrated transformation plan was put together
Slide 20: CEO speech: fiscal year-to-date performance
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra emerging market growth stories such as China Mobile where the market is expecting single-digit growth in 2009. Our performance for the 9 months fiscal year to date continues to highlight the transformational success Telstra is e
Slide 21: CEO speech: global peer comparison
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra Again let me put our performance into a global context – As I mentioned, our mobile services revenue growth year-to-date has been more than 11%. Compare that to Orange UK with flat revenues or Vodafone Europe which reported decl
Slide 22: CEO speech: network investments
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra • The Next G ™ network has peak network downlink speeds of 21Mbps delivering typical customer download speeds up to 8Mbps in CBDs, metropolitan areas and selected regional areas. • Telstra recently announced an upgrade to the HF
Slide 23: CEO speech: broadband and productivity gains
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra compared to 15% now. Over this period, broadband penetration has quadrupled. Telstra’s network investments present Australian consumers and businesses with a clearly defined high speed broadband and communications roadmap that i
Slide 24: CEO speech: Market Based Management and Consumer
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra Embedding Market Based Management in our business enabled us to significantly improve our understanding of our customer’s needs, providing us with an incredibly powerful competitive advantage. The strong results in our Retail un
Slide 25: CEO speech: Business segment
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra In the Business segment, which was created during the embryonic stages of our transformation journey Deena Shiff and her team continue a transformation that will see 20 Business Centres servicing business customers by the end of
Slide 26: CEO speech: Enterprise and Government
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra Service platform going live across the country. The innovation, the customer focus, the drive to understand our customer’s needs in the business segment is never finished business. In the Enterprise and Government sector David T
Slide 27: CEO speech: telepresence and Arnhem Land
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra than 20 government offices. The solution will help the Federal government reduce the cost of travel, improve productivity and lower the impact of carbon emissions. The telepresence solution is transforming the way Telstra and ou
Slide 28: CEO speech: Sensis and Telstra Media
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra This is at a time when other companies around the world are seeing very significant declines, for example AT&T directories is seeing double digit revenue decline. … The strength of Sensis’ performance is clear when compared with
Slide 29: CEO speech: HFC, CSL and China
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra We said we wanted to leverage our HFC network and are doing so via our recently announced upgrade to peak network downlink speeds of 100Mbps, starting in Melbourne. This will be completed by Christmas 2009. We said with respect
Slide 30: CEO speech: New Telstra and market share
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra whatever else you might hear – Telstra has grown market share in key segments through innovation, investment and focus on the customer. We stay focussed on what customers think and do. Instead of losing market share, we are winn
Slide 31: CEO speech: FY10 free cash flow close
Macquarie Australia Conference – May 8, 2009 Sol Trujillo, CEO, Telstra Let me finish by re-iterating Telstra is on track to deliver free cash flow of 6 to 7 billion in FY10. Thanks for your time this morning and I would be happy to take some questions. 15