Telstra Group Limited · ASX:TLS
Telstra — Investor Day (October 2009)
33 slides from Telstra's investor day presentation, Oct 28, 2009
Slide 1: Investor Day – slide presentations (ASX cover letter)
28 October 2009 Office of the Company Secretary For personal use only The Manager Level 41 242 Exhibition Street Company Announcements Office MELBOURNE VIC 3000 Australian Securities Exchange AUSTRALIA 4th Floor, 20 Bridge Street General Enquiries 08 8308 1721 SYDNEY NSW 2000 Facsimile 03 9632 3215
Slide 2: NBN and Regulation Update; Disclaimer
For personal use only NBN and Regulation Update David Thodey, CEO 28 October 2009 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 a
Slide 3: Progress and commitment; Potential timelines complex
Progress and commitment For personal use only • Telstra supports the Government’s NBN vision • Set up an NBN Engagement Group • Extensive internal work to evaluate options for Telstra’s involvement • Engaging in active and constructive discussions with the Government and NBNCo for some time • Deal m
Slide 4: Issues complex; Legislation
Issues complex... For personal use only Legislation Deployment issues Migration Issues & Regulation • Access services Telstra • Management processes • Response to proposed may provide legislation • Volume of migrations • Deployment services • Review of regulatory • Positions of ONT Telstra may provi
Slide 5: NBN Financials Update: The NBN decision tree
For personal use only NBN Financials Update John Stanhope, CFO 28 October 2009 The NBN decision tree Financial NPV consideration Time Per share necessary? Sell ULL ? >1 year Structural separation Migrate customers ? 10 years Status Quo BT-Style >-10c 5 years Functional TCNZ-style separation ~-
Slide 6: NBN: Impact of Functional Separation
NBN: Impact of Functional Separation Increasing Separation For personal use only 1 2 3 4 5 No Separation Operational Operational ‘TCNZ style’ ‘BT style’ Operational Separation + Separation + Functional Functional Separation Internal Adjudicator Separation Separation Contracts Cost: 0 cps <1 cps ~1cp
Slide 7: Transformation Closure: Transformation Benefits
For personal use only Transformation Closure John Stanhope, CFO 28 October 2009 Transformation Benefits Driving revenue above market expectations Delivering ongoing competitive advantage % Growth Sales revenue achieved vs. Consensus* Impact on FY05 to FY09 revenue CAGR 4 Mobile Data +39% to $2.0b >$
Slide 8: Transformation Achievements
Transformation Achievements For personal use only Wireless Wireline IT • New CRM and billing TM platforms supporting consumer fixed, post paid mobile, pre-paid mobile, BigPond and pay TV products • New fulfilment, activation, assurance and inventory platforms • 99% population coverage • One of large
Slide 9: Operating Capex History
Operating Capex History For personal use only $5.9b $4.9b $4.6b $4.3b <$3.8b $4.0b FY05 FY06 FY07 FY08 FY09 FY10 F BAU IT Transformation Transformation ex. IT $12b invested in transformation 5 Transformation Capex: within $0.2b of original budget IT Transformation Spend: +$1.5b Changes to IT Transfo
Slide 10: IT Transformation Capex Movements
IT Transformation Capex Movements For personal use only 1. Scope reduction / program of work modification -$0.2B 2. Use Siebel, Remedy, existing wireline for fulfilment and assurance +$0.05B 3. Consolidate BigPond into the transformation +$0.35B 4. Additional programs in scope (Enterprise Data Wareh
Slide 11: Incremental IT Capability Benefits Summary
Incremental IT Capability Benefits Summary For personal use only BENEFITS 09/10 10/11 11/12 Functional Area Cost Saving Revenue Cost Saving Revenue Cost Saving Revenue $m $m $m $m $m $m CRM 21 88 50 260 79 413 Self Service, Identity Mgt 1 - 34 7 90 17 Sales Catalogue 5 18 10 70 15 127 Campaign Manag
Slide 12: Sales Catalogue, Campaign Management, Credit, Usage Processing
Sales Catalogue Campaign Management For personal use only Enterprise D t & Data Product Customer Catalogue Insight Product Data / Planning & Marketing Lifecycle Campaign Execution & Management M Management R Reporting i 11 Credit Management Usage Processing Usage Credit Assessment Cost Reduction Col
Slide 13: Other IT Transformation Capabilities; Learnings
Other IT Transformation Capabilities For personal use only Physical Number Sales Order Network Billing Management, Management Inventory Porting Management Order Customer Management, Incident & Local Network Invoicing Service Problem Management Catalogue & Management Sold Service Trouble Activation B
Slide 14: It's now business as usual
For personal use only It’s now business as usual 15 8
Slide 15: Strategy Update: Australian telecoms market is strong
For personal use only Strategy Update David Thodey, CEO 28 October 2009 Australian telecoms market is strong... Telecoms industry growth 6% 4% 2% 0% FY 06 FY 07 FY 08 FY 09E - 2% Australia Europe Note: Australia growth year to June, Europe year to December Source: Credit Suisse Research, Telstra man
Slide 16: Global market trends; Core assets needed to win
Global market trends Continued wireless growth For personal use only Mobile and fixed broadband growth Network differentiation New fibre access and regulation Core network intelligence is essential New Designing scalable networks capabilities Migration to new technologies required of telcos Customer
Slide 17: Telstra has the core assets needed to win
Telstra has the core assets needed to win NextG™ Network provides unrivalled coverage For personal use only Scale advantage Extraordinary customer access Deep engineering capability Unmatched products and brands NextG* Optus 3G900** Optus 3G2100** *Coverage footprint as at September 2009 **Coverage
Slide 18: Core assets; New Telstra must build new differentiation
Telstra has the core assets needed to win For personal use only Scale advantage Cable Extreme Extraordinary customer access Deep engineering capability ..and in China Unmatched products and brands 7 „New Telstra‟ must build new sources of differentiation Today Future • Access networks with great • S
Slide 19: Telstra strategy – your connection to the future
Telstra strategy – your connection to the future Telstra For personal use only “Create a world of solutions that are simple, easy and valued by our customers” Unmatched Sources of Extraordinary Deep portfolio of Clear scale differentiation customer access engineering and products and advantage and i
Slide 20: 1. INVEST in next generation infrastructure
1. INVEST in next generation infrastructure Service Delivery Cloud computing For personal use only Framework (SDF) infrastructure Next generation of Service delivery: infrastructure will focus on IP Multimedia Subsystem (IMS) enabling delivery of „up the stack‟ services, apps and Application-assured
Slide 21: 3. INVEST in adjacent markets; 4. SATISFY the customer
3. INVEST in adjacent markets – network applications and services For personal use only Next Generation Legacy networks Evolving NGN Networks (NGN) 2006 2009 2012 applications Desktop/facilities Desktop/facilities Desktop/facilities Customer Business Apps Business Apps Communications Business applic
Slide 22: Customer satisfaction will reduce churn; Simplicity and productivity
Customer satisfaction will reduce churn For personal use only Consumer disconnects (annualised) 35% 30% 25% 20% 15% 10% Jul-08 Jan-09 Jun-09 Postpaid Mobile ADSL 15 INVEST, SATISFY, GROW 5. SATISFY customers through greater simplicity that will also drive productivity Field Field Workforce Productiv
Slide 23: 6. GROW through the transition to new services
6. GROW through the transition to new services For personal use only Total Telstra PSTN and Mobile revenues Data Revenues by Category CAGR 2% $'m $'m CAGR 8% 1,200 14,000 Other BDSL 12,000 1,000 10,000 IP WAN IP Data 800 CAGR 25% 8,000 CAGR 10% 6,000 600 IP MAN 4,000 CAGR -5% 400 Leased Lines VGDL 2
Slide 24: 7. GROW in the Next Generation Home; 8. GROW Sensis
7. GROW in the Next Generation Home For personal use only Services Devices Content & apps Network Support 19 INVEST, SATISFY, GROW 8. GROW Sensis – a core portfolio 20 INVEST, SATISFY, GROW 10
Slide 25: 9. GROW selectively in Asia
9. GROW selectively in Asia For personal use only Internet subscribers Wireless subscribers Number of subscribers Number of subscribers 197 200M 1.2B 1,046 1.0 150 2014F 2014F 0.8 100 0.6 0.4 2009 2009 50 0.2 9 31 0 0 Australia China Australia China CAGR 2.7% 12.0% CAGR 4.1% 7.3% Source: Ovum “Mobil
Slide 26: Guidance reiterated
Guidance reiterated Measure FY 2010 Guidance For personal use only Revenue growth •Low single digit EBITDA growth •Low single digit EBITDA margin •Maintained EBIT growths •Low single digit FCF •$6b NOTE: Excludes the impacts of any Government regulatory review or NBN outcomes or any unexpected outco
Slide 27: Product Roadmap Update: TPM vision for differentiation
For personal use only Product Roadmap Update Holly Kramer, GMD Product Management 28 October 2009 TPM vision for differentiation Differentiation based on unique enablers Strategically aligned programs Only with Telstra Next Generation Home Customer Experience Enablers Consumer Integrated Services Se
Slide 28: Differentiating beyond the access layer; Enterprise IP Journey
Differentiating beyond the access layer For personal use only Competitive Pressure: Competitive Pressure: Over The Top Services and Content Network Independent Devices Applications and Content Customer Service and Experience Network and Service Enablers Differentiate on Differentiate on Apps and Con
Slide 29: Business – Broadband anchor for Digital Business; Partnership update
Business – Broadband anchor for Digital Business For personal use only Digital Business Next Gen Comms Connect IP Connectivity Plus 5 Partnership update Announced November 2008 Delivered Planned (eg’s) Applications Hosted UC: IP Tel + OCS • Telepresence B2B international Mgd UC: Cisco Call Mgr • H
Slide 30: Building the Next Generation Home
Building the Next Generation Home Content & communications Increasingly connected devices For personal use only One touch secure WiFi set-up Foxtel box + + Services Devices Content & apps Higher speeds drive ARPU Network Support Single view of customer SIO 000s $/mth 800 BP Broadband ARPU $55 >10m c
Slide 31: Next G network differentiation continues
Next G network differentiation continues WBB innovation Apps & Services For personal use only $3,000 $M Data $2,500 $2,000 $1,500 Mobile voice & data $1,000 revenues Voice $500 Enterprise Mobile Broadband+ $0 Navigator H1 FY05 H2 FY05 H1 FY06 H2 FY06 H1 FY07 H2 FY07 H1 FY08 H2 FY08 H1 FY09 H2 FY09 w
Slide 32: Extending wireless leadership; Product Lifecycle Management
Extending wireless leadership For personal use only Speed leadership New markets New apps Machine to machine (m2m) Social Networking M-Commerce Billing 3rd Party Apps Stores Developers 11 Product Lifecycle Management CFBU TPM Pricing Discipline in exits and migrations eugola taC tcudorP Customer Tec
Slide 33: In summary
In summary For personal use only INVEST Innovating and differentiating with unique investments SATISFY Delivering on our commitments to our customers GROW Realising growth from this strategy 13 7