Slide 1: TPG Telecom Limited Results for Full Year Ended 31 December 2024 – Investor Presentation
Market Announcements Office Australian Securities Exchange Level 4, 20 Bridge Street Sydney NSW 2000 Sydney, 28 February 2025 TPG Telecom Limited Results for Full Year Ended 31 December 2024 – Investor Presentation Please find attached for immediate release to the market an Investor Presentation con
Slide 2: TPG Telecom 2024 Full-Year Results
TPG Telecom 2024 Full-Year Results 28 February 2025
Slide 3: Acknowledgement of Country
Acknowledgement of Country TPG Telecom acknowledges the Traditional Custodians of Country throughout Australia and the lands on which we and our communities live, work and connect. We pay our respects to their Elders, past and present. ‘Listening to Land - Connecting to Country’ by Riki Salam (Mualg
Slide 4: Agenda
Agenda Results highlights and strategy update Iñaki Berroeta, CEO and Managing Director Review of financial performance John Boniciolli, CFO Outlook Iñaki Berroeta, CEO and Managing Director To seek a better understanding of TPG Telecom performance, users should read this presentation in conjunction
Slide 5: Results highlights and strategy update
Results highlights and strategy update Iñaki Berroeta Chief Executive Officer and Managing Director
Slide 6: FY24 highlights
FY24 highlights Building a simpler, stronger and more competitive business Strong financial result Key strategy priorities addressed Service • Continued strong Mobile Service Revenue growth • Step change in coverage and Revenue • Industry-wide challenges in Fixed Regional addressable market growing
Slide 7: FY24 key financial metrics
FY24 key financial metrics Strong gross margin, cash performance and ROIC growth ($m) FY231 FY24 Change Service Revenue 4,632 4,702 1.5% Mobile up 5.4%, offsetting Fixed down 2.6% Gross margin 3,105 3,213 3.5% Ahead of service revenue growth Operating expenses2 (1,182) (1,225) (3.6)% Flattening over
Slide 8: Strategy refresh
Strategy refresh FY24 achievements setting us to be more competitive Principles Objectives FY24 key actions and outcomes • Invest in core assets where scale creates value • 5G rollout in metro areas 72% complete by mid-Feb 2025 Run networks • Close gap in mobile coverage • Regional network sharing d
Slide 9: FY25 strategy deliverables
FY25 strategy deliverables Accelerating benefits for customers and shareholders Principles FY25 objectives Key KPIs and metrics Total mobile Total 5G sites FWA % of Fixed • Activate and deploy regional network sharing network sites1: available: subscribers: Run networks • Complete rollout of 5G to >
Slide 10: Regional network expansion
Regional network expansion Doubling our network to create step change in addressable market Increased coverage throughout the country positions TPG’s Strong initial customer response following brands strongly to grow share in under-penetrated regions smooth implementation ü Vodafone Postpaid, Feb 20
Slide 11: Sale of fibre and EGW Fixed
Sale of fibre and EGW Fixed Simplifying TPG and strengthening our network economics Regulatory approval process progressing - Completion still expected during Separation and transition planning ACCC review findings due 27 March 2025 second half of 2025 on track with costs as expected Low-cost growth
Slide 12: Business simplification
Business simplification Enabling growth and efficiency in a streamlined business Delivery driving TPG efficiency: $70m capex and $70m EBITDA benefits (gross margin and opex) are on track for delivery and will contribute to TPG’s targeted capex reductions and $100m incremental opex efficiencies post
Slide 13: Long-term value creation
Long-term value creation Key strategic priorities to position TPG to win and grow Principles Objectives Shareholder value aspirations Run networks • Complete 5G rollout smarter • Explore further partnership opportunities Growing Growing • Drive on-net utilisation via MVNO and FWA Mobile EBITDA marke
Slide 14: People and community
People and community Values-led organisation Innovate RAP launch DV Safe Phone donation Stand Together Together we are unstoppable Own It We step up and own what we do Women in STEM TPG graduate program Simple’s Better We challenge ourselves to find a simpler, fresher way Boldly Go We are hungry, cu
Slide 15: Review of financial performance
Review of financial performance John Boniciolli Chief Financial Officer
Slide 16: Mobile Service Revenue up 15.3% since FY22; driven by increasing ARPU
Mobile Service Revenue up 15.3% since FY22; driven by increasing ARPU Continued ARPU ($) improvement ARPU driving Service Revenue ($m) and Growth in subscribers (‘000) slowed in reflecting focus on plan refreshes1 gross margin ($m) higher2 FY24 after strong FY22 and FY233 Strong early response to MO
Slide 17: Fixed Broadband
Fixed Broadband Strong Fixed Wireless growth continues to drive AMPU Subscribers (‘000) impacted by continued TPG focus on on-net including Fixed Gross margin2($m) resilient despite revenue NBN competition1 Wireless driving AMPU ($) growth1 impact of NBN subscribers Fixed Wireless up 41k, 18.1% YoY
Slide 18: Operating expense
Operating expense1 Drop to 1% YoY increase in 2H24; FY25 outlook flat in real terms Significant improvement following increases of 8.5% in FY23 and 6.6% in 1H24 (3.6% for FY24) Movement in operating Operating expenses by category ($m) expenses excluding material one-offs ($m) Benefit of outsourcing
Slide 19: EBITDA
EBITDA1 Robust gross margin result with slowing increase in opex EBITDA movement ($m) - guidance basis Metric ($m) FY23 FY24 Change Consumer gross margin - mobile 1,635 1,755 7.3 % Mobile Service Revenue growth Consumer gross margin - fixed 577 618 7.2 % and direct cost efficiencies EGW gross margin
Slide 20: Capex and D&A
Capex and D&A Network expenditure to slow further in FY25 D&A growth of 1% in FY24 and similar expected in FY25 Depreciation and Cash capex ($m) 1,126 amortisation ($m) 1,014 1,472 1,485 160 160 195 169 276 279 156 570 593 28 271 284 FY23 FY24 FY23 FY24 Cash capex ex spectrum Amort: Customer base Sp
Slide 21: Cash flow
Cash flow Up strongly as capex reduces, working capital improves Strong further improvement anticipated in FY25 but skewed to second half in line with EBITDA and capex expectations Movement in Operating Free Cash Flow ($m)1 Drivers and outlook Working capital movement Further benefit in FY25 Future
Slide 22: Debt funding
Debt funding Stable position reflecting strong cash flow Gross bank debt and Bank debt maturity ($m) Net financing costs ($m) lease liabilities ($m) 251 220 4,076 4,099 60 900 121 127 2,234 2,205 1,300 500 750 500 500 250 FY23 FY24 FY23 FY24 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Net bank interest expen
Slide 23: Outlook
Outlook Iñaki Berroeta Chief Executive Officer and Managing Director
Slide 24: Simpler, stronger TPG
Simpler, stronger TPG Low cost, capital efficient model streamlined to realise our potential Mobile challenger for Consumer and Business Diverse and differentiated brands responsive to Integrated telco with strongest ever network coverage and customer needs: infrastructure position; 98.4% population
Slide 25: FY25 guidance
FY25 guidance1 Underlying growth in EBITDA offset by initial MOCN impact FY24 guidance FY24 result FY25 guidance Drivers • Includes initial $55m to $65m impact from MOCN, as costs accrue in year one prior to revenue benefits over time • Additional revenue impact from change in key EBITDA global inte
Slide 26: Questions and answers
t secece TELECOM Questions and answers
Slide 27: Appendices
Appendices
Slide 28: Glossary
Glossary Term Definition Term Definition 1H Six months ended/ending 30 June of the relevant financial year MVNO Mobile virtual network operator 2H Six months ended/ending 31 December of the relevant financial year Millimeter wave (mmWave) is a wireless technology that uses high-frequency radio mmWav
Slide 29: Income statement and balance sheet summary
Income statement and balance sheet summary Change 31 December 31 December Change $m FY23 FY24 $m (FY24 v FY23) 2023 2024 (FY24 v FY23) Service revenue 4,632 4,702 1.5 % Cash and cash equivalents 116 42 (74) Trade and other receivables 968 972 4 Handset, accessories & hardware 901 818 (9.2)% Inventor
Slide 30: EBITDA to cash flow reconciliation
EBITDA to cash flow reconciliation1 $m FY23 FY24 EBITDA 1,875 1,712 Non-cash impairments 17 250 Other non-cash adjustments — 3 Working capital movements (370) (39) Cash flow from operating activities 1,522 1,926 Capital expenditure (1,126) (1,014) Lease principal element (108) (136) Lease interest c
Slide 31: Reconciliation of ROIC, NPAT and EPS
Reconciliation of ROIC, NPAT and EPS $m FY231 FY24 $m FY231 FY24 Statutory EBIT 403 227 Statutory NPAT 49 (107) Add back acquired customer base amortisation 160 160 Add back spectrum amortisation 276 279 Adjustment for towers gain, restructuring, transformation or 48 276 transaction costs Add back c
Slide 32: Historic financial metrics
Historic financial metrics Service Revenue ($m) Gross margin ($m) Operating expenses ( guidance basis1,2 $m) 4,439 4,632 4,702 4,372 3,243 3,105 3,213 2,249 2,344 2,375 2,787 2,197 1,182 1,225 1,863 1,578 1,628 1,060 1,089 1,390 613 619 547 560 2,175 2,190 2,288 2,327 1,397 1,380 1,527 1,585 513 529
Slide 33: Historic financial metrics continued
Historic financial metrics continued Cash capex ($m) OFCF ($m)1 Free cash flow ($m) 1126 FY21 51 545 596 FY21 (33) 443 410 961 1014 826 FY22 (49) 141 92 FY22 (84) 936 852 456 447 476 413 FY23 (62) 229 167 FY23 (55)(137) 82 670 567 413 485 FY24 278 371 649 FY24 30 222 252 FY21 FY22 FY23 FY24 1H 2H 1H
Slide 34: Revenue and gross margin by product
Revenue and gross margin by product Revenue ($m) Gross margin ($m) 4 FY24 4,497 1,023 5,520 Consumer 2,399 810 3,213 Group EGW 20 FY23 4,506 1,027 5,533 Unallocated 2,221 864 3,105 6 Total Mobile 26 (1) FY24 1,543 541 1,680 727 4,497 Mobile Postpaid 1,755 618 1 2,399 Mobile Prepaid Consumer Fixed FY
Slide 35: Mobile and Fixed metrics
Mobile and Fixed metrics 1H23 2H23 1H24 2H24 Mobile (overall) Subs (‘000) 5,279 5,415 5,479 5,514 ARPU ($) $33.25 $34.62 $34.64 $35.62 Mobile Postpaid Subs 2,930 2,942 2,895 2,846 ARPU $44.97 $47.45 $47.67 $49.26 Mobile Prepaid1 Subs 2,054 2,183 2,196 2,275 ARPU $18.85 $19.39 $19.77 $20.66 Data SIMs
Slide 36: Gross margin breakdown by half-year period
Gross margin breakdown by half-year period Consumer Enterprise, Government and Wholesale Reported Reported Reported Reported Change Change Reported Reported Reported Reported Change Change $m 1H23 2H23 1H24 2H24 vs 2H23 vs 1H24 1H23 2H23 1H24 2H24 vs 2H23 vs 1H24 Service revenue 1,822 1,878 1,862 1,
Slide 37: Executive Leadership Team
Executive Leadership Team Iñaki Berroeta Kieren Cooney Trent Czinner Jonathan Rutherford CEO and Managing Director Group Executive Consumer Group Executive Legal and External Group Executive Wholesale, Affairs and Company Secretary Enterprise and Government John Boniciolli Giovanni Chiarelli Vanessa
Slide 38: Disclaimer
Disclaimer International Financial Reporting Standards (IFRS) Not financial product advice This presentation includes certain non-IFRS financial measures. These non-IFRS financial This Presentation is for information purposes only and is not financial product or investment measures are used by manag