Slide 1: NBN Briefing – CEO Analyst presentation (ASX cover letter)
23 June 2011 Office of the Company Secretary For personal use only The Manager Level 41 242 Exhibition Street Company Announcements Office MELBOURNE VIC 3000 AUSTRALIA Australian Securities Exchange 4th Floor, 20 Bridge Street General Enquiries 08 8308 1721 SYDNEY NSW 2000 Facsimile 03 9632 3215 ELE
Slide 2: NBN Definitive Agreement Announcement
For personal use only NBN DEFINITIVE AGREEMENT ANNOUNCEMENT David Thodey, CEO 23 June 2011
Slide 3: Disclaimer
DISCLAIMER This presentation includes certain forward-looking statements that are based on information and assumptions For personal use only known to date and are subject to various risks and uncertainties, assumptions and other factors that could cause the actual results or performance to be materi
Slide 4: Definitive Agreements
NBN UPDATE – DEFINITIVE AGREEMENTS For personal use only $11 billion post-tax NPV Strong shareholder protections for changes of policy ACCC acceptance of Structural Separation Undertaking is significant outstanding condition precedent 3
Slide 5: Indicative Timeline
NBN UPDATE – INDICATIVE TIMELINE DEFINITIVE AGM AGREEMENTS For personal use only SIGNED RESOLUTION OTHER CONDITIONS PRECEDENT SHAREHOLDER INDEPENDENT EXPERT REVIEW CONSIDERATION PREPARE SSU ACCC CONSULTATION/REVIEW 23 JUN 18 OCT 2011 2011 11 AUG FY RESULTS Note: timeline is indicative only and subje
Slide 6: Decision Framework
NBN UPDATE – DECISION FRAMEWORK For personal use only CO-OPERATE GOVERNMENT NBN POLICY DO NOT CO-OPERATE 5
Slide 7: Key Financial Terms
NBN UPDATE – KEY FINANCIAL TERMS Approx $1.0b Approx $11b For personal use only Approx $0.3b Approx $0.7b Approx $5.0b Approx $4.0b Disconnection Infra- TUSMA New housing Other Post tax structure estates NPV of agreements Government Note1: the sale of lead-ins/conduit is covered in the Infrastructur
Slide 8: Key Agreements
NBN UPDATE – KEY AGREEMENTS Agreements with NBN Co Scope For personal use only Implementation and Conditions Precedent and interim arrangements Interpretation Deed Subscriber Agreement Disconnection of copper and HFC broadband networks Infrastructure Services Long-term infrastructure access arrangem
Slide 9: Shareholder Protections
NBN UPDATE – SHAREHOLDER PROTECTIONS For personal use only INCLUDING: •Change of Government policy •NBN rollout goes slowly 8
Slide 10: Conditions Precedent
NBN UPDATE – CONDITIONS PRECEDENT • Telstra and NBN Co’s shareholder approval • ACCC acceptance of a Structural Separation Undertaking and approval of For personal use only Migration Plan • TUSMA Agreement and Information Campaign and Migration Deed being entered into • Legislation or other arrangem
Slide 11: Cashflow in NBN World
CASHFLOW IN NBN WORLD Organic Operating Capex NBN Payments For personal use only revenue Costs •Long-term •Increased NBN •14% •Significant cash growth from access costs sustainable inflows from mobiles, •Some long-term disconnection media, NAS incremental costs in NBN and to support infrastructure •
Slide 12: Q&A
For personal use only Q&A 11