Telstra Group Limited · ASX:TLS
Telstra — Merrill Lynch Australian Investment Conference 2008
12 slides from Telstra's conference presentation, Sep 9, 2008
Slide 1: ASX cover letter: Presentation to Merrill Lynch Conference
9 September 2008 Office of the Company Secretary For personal use only The Manager Level 41 242 Exhibition Street Company Announcements Office MELBOURNE VIC 3000 Australian Stock Exchange AUSTRALIA 4th Floor, 20 Bridge Street Telephone 03 9634 6400 SYDNEY NSW 2000 Facsimile 03 9632 3215 ELECTRONIC L
Slide 2: FY 2008 Financial Results
For personal use only FY 2008 Financial Results Sol Trujillo, CEO September 2008 Merrill Lynch Australian Investment Conference
Slide 3: Disclaimer
For personal use only 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 ex
Slide 4: FY08 headline results
For personal use only PAT +13.5% EBIT growth 9.1%* Retail growth +5.9% FCF +33% to $3.9bn * On guidance basis, adjusted for CSLNW accelerated depreciation of $77 million 3
Slide 5: Financial Results
For personal use only Financial Results $ billions (reported) FY08 Growth % Mobile Services +12.3% Sales Revenue 24.7 4.2% Total Revenue 24.8 4.7% Retail Broadband +49.2% EBITDA 10.4 5.6% EBITDA Margin (%) 42.2% +0.5pp PSTN -3.2% EBIT 6.2 7.7% PAT (post minorities) 3.7 13.5% Accrued Capex 4.9 -16.7%
Slide 6: Strong retail performance
For personal use only Strong retail performance Segments - FY08 Absolute Sales Revenue Growth Telstra • Broadband: ADSL ARPU growth +6.9% Consumer • PSTN: Churn down & net subscribers +56k • Mobile: Average SARC down -24% TC&C +6.1% & Channels TB +8.6% TE&G +3.6% Telstra • PSTN: Slowing revenue decl
Slide 7: Outperforming our global peer group and consensus
For personal use only Outperforming our global peer group and consensus World Class Domestic Revenue Growth Sales Revenue achieved vs Consensus* % Telstra 4.8% Growth Telefonica 2.7% 4 France Telecom 2.4% BT 1.2% ~$3bn revenue difference 2 over 3 years -1.7% Telecom New Zealand -2.7% Telenor 0 -5.8%
Slide 8: Redefining the business…changing mix
For personal use only Redefining the business…changing mix Bucking the global trend and growing retail PSTN Mobiles & PSTN revenues at cross-over Telstra Retail $m 100 Lines +87K 4,000 Telstra 95 Total Lines 3,500 90 3,000 85 2,500 80 2,000 75 2H05 1H06 2H06 1H07 2H07 1H08 2H08 2H05 1H06 2H06 1H07 2
Slide 9: Redefining the business…mobiles
For personal use only Redefining the business…mobiles FY08 Mobile Services Revenue Growth 12.3% Mobile EBITDA Margin Movement (pp)* 2.3 7.2% 0.7 3.0% 2.9% 2.1% -1.1 -1.2 -2.1 -2.0 -0.2% -1.1% -3.3% -3.4 -3.8 -4.5% Vodafone UK Optus Germany T-Mobile Vodafone Vodafone Orange France Germany Telstra Tel
Slide 10: Redefining the business…IT & service experience
For personal use only Redefining the business…IT & service experience Network Trouble reports per 100 SIOs Migration Update 11 August 6 -35% 5 Customers migrated 3.3 million 4 Services migrated 4.3 million 3 2005 2006 2007 2008 • Reduced 74 billing, product and ordering systems to three ADSL Held Or
Slide 11: Sensis growing in Australia and China
For personal use only Sensis growing in Australia and China US$ Sales Revenue - China World class • Total directories +7.2% Reported US$ China directories • Print directories +5.4% sales revenue to growth • Online directories +20% double US$108m (incl acquisitions)* Digital media • MediaSmart +41% m
Slide 12: Guidance summary
For personal use only Guidance summary* UPDATED FY10 2009 Measure Measure Long-term Management guidance Objectives Total revenue growth 3-4% Revenue growth 3-4% CAGR from FY05 EBITDA growth 6-7% EBITDA margin 46-48% EBIT growth 6-8% Capex/sales Around 14% Accrued capex $4.3-$4.6b Free cash flow $6-$
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