Telstra Group Limited · ASX:TLS
Telstra — Investor Day (March 2016)
66 slides from Telstra's investor day presentation, Mar 30, 2016
Slide 1: ASX cover letter: Investor Day media release and presentations
23 October 2013 Office of the Company Secretary Level 41 242 Exhibition Street The Manager MELBOURNE VIC 3000 AUSTRALIA Company Announcements Office General Enquiries 08 8308 1721 Australian Securities Exchange Facsimile 03 9632 3215 th 4 Floor, 20 Bridge Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT
Slide 2: Media release: Telstra refines strategy, realigns key business units
MEDIA RELEASE 23 October 2013 TELSTRA REFINES STRATEGY, REALIGNS KEY BUSINESS UNITS Telstra today announced a refined long term strategy supported by business unit changes aligning senior leaders to growth opportunities in Australia and overseas. Telstra CEO David Thodey said the realignment would e
Slide 3: Capital management and portfolio changes
Telstra’s capital management framework, announced by the company in 2012, remains unchanged. The framework guides management decisions according to a set of criteria and provides transparency for shareholders. Telstra portfolio changes Following Telstra’s new strategic pillars, key portfolio changes
Slide 4: CEO speech notes: opening
CEO SPEECH NOTES TELSTRA INVESTOR DAY 23 OCTOBER 2013 SLIDE 1: OPENING SLIDE • Good morning and welcome... • The purpose of today is to: o Update you on our strategy; o Hear from senior management about how we will execute this strategy; and o Give you an opportunity to ask questions. • I recognise
Slide 5: Major industry trends
SLIDE 2: MAJOR INDUSTRY TRENDS • Increasingly, smart technology is at the forefront of everything we do. o Think of the smart home; smart workplaces; smart transportation; smart education; smart health; smart cities; smart states etc. • This presents tremendous new opportunities for our industry. •
Slide 6: Smarter networks and network-dependent applications
demanding and less patient than at any other time. Not only are they more informed about the products and services they require, they have higher expectations about the services they receive. We must continue to improve our service and products. 4. Smarter networks and improved user interfaces: The
Slide 7: Asian century and critical technologies
7. The last trend I want to mention is that of the Asian century. The Asian region presents a huge market opportunity with its growing middle class; rapid urbanisation; and unprecedented economic growth. Half of the world’s internet users live in Asia, and their influence in the online world is only
Slide 8: Internet of things
Hotmail. This is now extending to business critical applications. The rate of innovation in building seamless end-to end solutions to meet business needs is accelerating. o The third technology is what we call “the internet of things” (also known as the Industrial Internet or Machine to Machine) whe
Slide 9: Strategic priorities and results
o Retaining and growing our customer numbers; o Simplifying the business; and o Building new growth businesses. • As our results demonstrate, these priorities have served us well: o For the past three years, we have delivered top line growth. o We continue to hold operating costs, having delivered a
Slide 10: We have refreshed our strategy
SLIDE 5: WE HAVE REFRESHED OUR STRATEGY • We regularly review our long-term strategy with a view to ensuring we have the right focus on how to deliver long-term value. • As a result, we have made some subtle but important changes to our strategic priorities which we think better reflect the way we t
Slide 11: Improving customer advocacy
o Buy more; o Churn less; o Recommend more often; and o Generate fewer complaints and call volumes. • To do this, we need to change: o We are embedding the Net Promoter System into our business and improving our interactions with customers; o We are investing in product differentiation and bundling:
Slide 12: Driving greater value from the core
o Our approach to bundling telecommunication services, entertainment and shared data is opening up new service paradigms for consumers. o We are now part of the productivity agenda for other businesses and our offerings allow us to establish true customer service partnerships with small, medium and
Slide 13: Core broadband customers and guidance
• 2.8 million fixed broadband customers (having added 41,000 customers in the first quarter); and • 1.7 million customers with a fixed broadband bundle (having added 51,000 customers this quarter). • This morning you will hear more about this priority from Kate McKenzie; Warwick Bray (Group Executiv
Slide 14: Building new growth businesses
accurately the way we look at our business and the growth opportunities that exist. • When we talk about growth we are talking about: o The more immediate opportunities in our Network Applications and Services business and Asia; as well as o Emerging opportunities including Digital Media, Global App
Slide 15: Organisational alignment
structure of our leadership team. We have a strong leadership team. The depth of capability is evident. • We have asked some of our most senior leaders to take on new or expanded opportunities to ensure we deliver on our strategy. • Each executive has considerable experience inside the industry as w
Slide 16: Telstra Operations and Telstra Retail leadership
portfolios to better integrate technology development and implementation. o Telstra Operations will lead Telstra’s ongoing technical excellence across fixed and mobile networks. o As you know, Kate was most recently responsible for Innovation, Products and Marketing. • Turning to Telstra Retail: o G
Slide 17: Summary
• These changes become effective next Monday, 28 October. SLIDE 10: SUMMARY • Before I hand over to Gordon Ballantyne to lead the discussion on the first of our strategic priorities, customer advocacy, let me summarise our focus for today: o We have a clear strategy in place and we are focused on de
Slide 18: Telstra Investor Day October 2013 disclaimer
TELSTRA INVESTOR DAY 0CTOBER 2013 TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 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 achie
Slide 19: Trends in the global telco industry
DAVID THODEY CHIEF EXECUTIVE OFFICER TRENDS IN THE GLOBAL TELCO INDUSTRY GROWTH IN CONNECTIVITY DEMAND FOR BANDWIDTH CHANGING CONSUMER BEHAVIOUR AND INCREASING EXPECTATIONS SMARTER NETWORKS AND IMPROVED USER INTERFACES NETWORK DEPENDENT, INNOVATIVE APPLICATIONS DATA ANALYTICS THE ASIAN CENTURY inves
Slide 20: Our strategic framework has served us well
KEY INFLUENCING TECHNOLOGIES OUR STRATEGIC FRAMEWORK HAS SERVED US WELL THE FOUR PILLARS IMPROVE RETAIN AND SIMPLIFY THE BUILD NEW CUSTOMER GROW CUSTOMER BUSINESS GROWTH SATISFACTION NUMBERS BUSINESSES investor.relations@team.telstra.com 3
Slide 21: Refreshed strategy: four pillars into three
WE HAVE REFRESHED OUR STRATEGY FOUR PILLARS INTO THREE IMPROVE RETAIN AND SIMPLIFY THE BUILD NEW CUSTOMER GROW CUSTOMER BUSINESS GROWTH SATISFACTION NUMBERS BUSINESSES IMPROVE DRIVE VALUE BUILD NEW CUSTOMER FROM THE CORE GROWTH ADVOCACY BUSINESSES STRATEGIC PILLAR ONE IMPROVE CUSTOMER ADVOCACY NPS I
Slide 22: Drive value from the core; build new growth businesses
STRATEGIC PILLAR TWO DRIVE VALUE FROM THE CORE CUSTOMER AND REVENUE GROWTH DRIVE VALUE FROM THE CORE NETWORK LEADERSHIP DRIVE PRODUCTIVITY THROUGH SIMPLIFYING THE BUSINESS STRATEGIC PILLAR THREE BUILD NEW GROWTH BUSINESSES NAS BUILD NEW GROWTH BUSINESSES ASIA EMERGING OPPORTUNITIES • eHEALTH • GLOBA
Slide 23: Organisational alignment summary
ORGANISATIONAL ALIGNMENT DAVID THODEY CHIEF EXECUTIVE OFFICER GORDON BALLANTYNE RICK ELLIS GROUP EXECUTIVE GROUP EXECUTIVE TELSTRA RETAIL TELSTRA MEDIA GROUP ANDREW PENN CARMEL MULHERN CHIEF FINANCIAL OFFICER GROUP GENERAL COUNSEL FINANCE & STRATEGY LEGAL SERVICES KATE MCKENZIE TRACEY GAVEGAN CHIEF
Slide 24: Customer advocacy
CUSTOMER ADVOCACY GORDON BALLANTYNE, CHIEF CUSTOMER OFFICER TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 FOCUSING ON THE THINGS THAT MATTER FOR OUR CUSTOMERS INSIGHTS MATTER SIMPLICITY MATTERS INNOVATION MATTERS Connecting us to what’s important Making it easy for our customers to In our products, our
Slide 25: Focusing on the things that matter for our customers
FOCUSING ON THE THINGS THAT MATTER FOR OUR CUSTOMERS INSIGHTS MATTER SIMPLICITY MATTERS INNOVATION MATTERS Connecting us to what’s important Making it easy for our customers to In our products, our services, our for our customers do business with us networks, and in recognising loyalty Making it eas
Slide 26: Executing on what matters and seeing the results
WE’RE EXECUTING ON WHAT MATTERS AND SEEING THE RESULTS EXECUTING ON WHAT MATTERS DELIVERING MARKET RESULTS MAINTAINING OUR COURSE Changing the way we run our business Creating advocates and winning customers Broad benefits built on Customer agenda Telstra Consumer Segment Income Our advocacy agenda
Slide 27: Driving value from the core
DRIVING VALUE FROM THE CORE KATE MCKENZIE, GROUP MANAGING DIRECTOR INNOVATION PRODUCTS AND MARKETING TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 DRIVING VALUE FROM THE CORE CUSTOMER AND REVENUE GROWTH DRIVE VALUE FROM THE CORE NETWORK LEADERSHIP TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 DRIVE PRODUCTI
Slide 28: Our domestic core is a key asset to leverage for growth
OUR DOMESTIC CORE IS A KEY ASSET WE INTEND TO LEVERAGE FOR GROWTH “Companies have a four to six times better chance of success if they seek a solution for tomorrow’s growth based on their ‘hidden assets’ in the core” Chris Zook, Bain and Company TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 FOUR OF OUR
Slide 29: Mobiles important to Telstra's growth
MOBILES WARWICK BRAY, GROUP EXECUTIVE DIRECTOR MOBILE AND WIRELINE TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 MOBILES IMPORTANT TO TELSTRA’S GROWTH $78m $25,338m $243m +26.1% +16.2% $224m $520m +17.7% +2.4% $24,731m -$205m EX CLEAR -2.7% +6.0% -$186m -7.8% -$67m -2.2% TELSTRA TEMPLATE 4X3 BLUE BETA |
Slide 30: Continued growth and momentum
CONTINUED GROWTH REVENUE ($B) SIOs (M) EBITDA ($B) 9.2 15.1 8.7 13.8 3.5 8.0 3.1 7.3 12.2 6.8 10.2 10.6 2.6 2.6 2.4 TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 GROWTH 6.4% 10.1% 8.5% 6.0% GROWTH 0.364 1.668 1.592 1.257 MARGIN 3
Slide 31: ARPU decline slowing; mobile priorities
ARPU DECLINE SLOWING FY12 & FY13 ARPUs ($) 2011/12 2012/13 TELSTRA GROUP FY12 H1 H2 FY13 $ PCP $ $ PCP $ $ PCP $ $ PCP $ SIO ARPUs Postpaid Handheld $61.51 ($2.44) $58.88 ($4.50) $58.29 ($0.75) $58.80 ($2.71) Postpaid Handheld ex MRO $65.42 $0.06 $64.75 ($1.73) $65.39 $1.70 $65.33 ($0.09) Prepaid Ha
Slide 32: Network leadership
NETWORK LEADERSHIP NETWORK AIMS FY13 ACHIEVEMENTS FY14 FOCUS Superior Coverage & Depth* • LTE 66% population coverage • LTE 85% population by • More sq kms • Expanded LTE bandwidth to Christmas • Fewer dead spots 15MHz Syd/Melb, 20 MHz Bris/ • Launch LTE-A 900+1800 CA Adel/Per device with Cat 4 • Fe
Slide 33: Improving advocacy; mobile margin outcomes
IMPROVING ADVOCACY INITIATIVES OUTCOMES DEVICE REPLACEMENT ADVOCACY 24X7 DIGITAL ENHANCEMENTS SERVICE CALLS/ CUSTOMER TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 REDUCE TIO COMPLAINTS BILL SHOCK MOBILE MARGIN OUTCOMES SARC MARGIN UNIT BYOD PREPAY BAD DEBT SUBSIDIES RECHARGE & REBATES NO. OF EVENTS NO.
Slide 34: Industry solution partners in M2M; connected tablets
WORKING WITH INDUSTRY SOLUTION PARTNERS IN M2M TRANSPORT / PUBLIC SAFETY RETAIL / FINANCIAL AGRICULTURE / INDUSTRIAL & BUSINESS CONSUMER LOGISTICS & SECURITY ENERGY & UTILITIES SERVICES ENVIRONMENT MANUFACTURING HEALTHCARE SERVICES ELECTRONICS SOLUTION & SYSTEM INTEGRATORS HARDWARE M2M PLATFORM REFE
Slide 35: Be the market maker in mobile in FY14
BE THE MARKET MAKER IN MOBILE IN FY14 IMPROVE • Call volumes and “right first time” CUSTOMER ADVOCACY SERVICE • Self service (online) INITIATIVES • Reduce bill shock DRIVING • Increase and promote network VALUE FROM advantage THE CORE WHY TELSTRA? • Increase and promote customer MONETISE DATA servic
Slide 36: Improving productivity in logistics with M2M
APPENDICES TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 IMPROVING PRODUCTIVITY IN LOGISTICS WITH M2M AUTOMATION OF ‘MOVE YOURSELF TRAILER HIRE’ POWERED BY M2M COMPANY PROFILE BUSINESS CHALLENGE WHY TELSTRA & MOVE YOURSELF TRAILER In 2002 Move Yourself Reduce installation & pioneered self-service set up
Slide 37: Mobile business apps to monitor OH&S compliance
MOBILE BUSINESS APPS TO MONITOR OH&S COMPLIANCE IN FIELD WORKFORCE TELSTRA + ARIS FOR EASTERN TREE SERVICES COMPANY PROFILE BUSINESS CHALLENGE WHY TELSTRA & ARIS ETS is Australia’s Over 500 vehicles, Deployed Tablets with ARIS Mobile Business Application largest Vegetation with a paper based connect
Slide 38: Winning in fixed broadband and NBN
WINNING IN FIXED BROADBAND FIXED BROADBAND REVENUE ($m) FY13 KEY HIGHLIGHTS Retail fixed broadband customers up 173,000 to 2.8 million in FY13 +5% $2,087 (additional 41k in Q1 of FY14) Bundled customers up 238,000 in FY13 to 1.6 million, representing $1,987 59% of our fixed broadband customer ba
Slide 39: Well placed to compete: micro markets
WE ARE WELL PLACED TO COMPETE: ~700 MICRO MARKETS TELSTRA IS ACTIVE IN ALL NEW OPPORTUNITIES OPENING NBN MARKET CONTINUES TO MARKETS PROVIDING NBN UP WITHIN THE GREENFIELDS GROW REACHING 370K MARKET - APARTMENT BLOCKS, PREMISES* ACROSS 685 SITES SERVICES OVER FIBRE AND HOUSE & LAND AND AGED CARE FIX
Slide 40: Winning in the market with customer based offers
WINNING IN THE MARKET WITH CUSTOMER BASED OFFERS TELSTRA HAS BEEN OFFERING A RANGE OF VOICE, BROADBAND AND ENTERTAINMENT SERVICES ON THE NBN FOR 2 YEARS Responding to customer feedback we have extended this range to include: • Launch of casual plans for the rental market and self install options • “
Slide 41: NBN agreements
NBN AGREEMENTS TONY WARREN GROUP MANAGING DIRECTOR CORPORATE AFFAIRS TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 Q&A TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 investor.relations@team.telstra.com 24
Slide 42: Data & IP: market dynamics create growth opportunity
DATA & IP PHILIP JONES, EXECUTIVE DIRECTOR DATA & IP TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 MARKET DYNAMICS CREATE A UNIQUE GROWTH OPPORTUNITY CUSTOMER TECHNOLOGY MARKET COMPETITION New ways of working for Demands speed & DIPNAS is outperforming Broader portfolio results individuals & businesses
Slide 43: Data & IP networks enable NAS growth
OUR DATA & IP NETWORKS ARE AN ENABLER FOR NAS GROWTH 5% 29% 18% INDUSTRY INTEGRATED 21% 33% UNIFIED COMMS SOLUTIONS SERVICE MANAGEMENT FY13 Growth: Media CLOUD SERVICES Telephony Retail Online SECURITY Portals & Conferencing Emergency IaaS & SaaS Reporting MANAGED NETWORK Mining Device Security Cont
Slide 44: Creating advantage to deliver value
WE ARE CREATING ADVANTAGE TO DELIVER VALUE Strengthening our differentiators... ...in order to deliver value for our customers and shareholders Converged IP platform to enable business transformation Customers Enabling productivity gains Fostering innovation on the network and the cloud Increa
Slide 45: Project New and productivity savings
PROJECT NEW WAS ESTABLISHED TO DRIVE CROSS-COMPANY BUSINESS IMPROVEMENT Telstra before Project New Project New Focus Areas Simplify Serve Save Bad volumes Complex and Operating Duplicated Model and End-To-End Customer activity Structures Process Improvement A New New Lean Sales & Services Customer O
Slide 46: Three key business improvement areas
OUR FOCUS HAS BEEN ON THREE KEY BUSINESS IMPROVEMENT AREAS Benefits FY11 – FY13 Selected Measures FY11 – FY13 Service Improvements Service Improvements • TIO complaints reduced by 32% 26% • Consumer contact centre volumes reduced by 16% per SIO • Bad debt expenditure reduced by 38% • Error provision
Slide 47: Build new growth businesses breakout sessions
Q&A TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 BUILD NEW GROWTH BUSINESSES BREAKOUT SESSIONS TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 investor.relations@team.telstra.com 30
Slide 48: Network Applications & Services portfolio
NETWORK APPLICATIONS & SERVICES REALISING OUR NAS OPPORTUNITY TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 NETWORK APPLICATIONS & SERVICES A PORTFOLIO OF ENTERPRISE & BUSINESS SERVICES 6 Single to fully integrated end to end solutions to Integrated 5 Service achieve business objectives Management Integ
Slide 49: Growing NAS
GROWING NAS CONTINUED FOCUS ON THREE KEY AREAS EXPAND Grow the core, service portfolio expand offer (Cloud, Mobility & Service Integration) INTERNATIONAL roadmap and Expansion GROW INTERNATIONALLY GROW VALUE from existing offers Australia Asia-Pacific OUR JOURNEY CONTINUED EVOLUTION Global Delivery
Slide 50: NAS strong revenue growth
STRONG REVENUE GROWTH ENHANCED CAPABILITIES DOMESTIC REVENUE GROWTH OF +18% ACHIEVEMENTS AUD $M Delivered record NAS sales and several major +11% +18% deal wins Strengthened our Australian and Global delivery and operational capabilities Delivering an improved customer service experience and NPS 1,2
Slide 51: Growth opportunities in Asia
GROWTH OPPORTUNITIES IN ASIA MARTIJN BLANKEN TELSTRA INTERNATIONAL GROUP TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 HIGHLIGHTS AND GROWTH STRATEGY DOUBLE-DIGIT REVENUE GROWTH OF 16% TO A$1.7B IN FY13 ����� CUSTOMER FOCUS DRIVING VALUE FROM THE CORE TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 BUILD NEW
Slide 52: Telstra China and CSL
TELSTRA CHINA SOLIDIFY AUTOHOME’S LEAD AS #1 CHINA MEDIA ASSETS DELIVERED AUTOMOTIVE PORTAL AND MAXIMISE EQUITY REVENUE GROWTH OF 22% VALUE OF CHINA MEDIA ASSETS AUTOHOME REVENUE GREW BY 74% IN CHINA TELSTRA GLOBAL SIGNED MULTIPLE STRATEGIC TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 NETWORK DEALS CSL
Slide 53: Telstra Global
TELSTRA GLOBAL GROW GLOBAL CONNECTIVITY BUSINESS THROUGH REVENUE GROWTH OF 9% IN FY13 INVESTMENTS, PORTFOLIO AND NAS EXPANSION, TARGETED SEGMENT FOCUS AND STRATEGIC MILESTONE INTERNATIONAL NAS CONTRACT CUSTOMER DEALS, UNDERPINNED BY A CUSTOMER- WITH JETSTAR CENTRIC APPROACH STRENGTHENED CLOUD OFFERI
Slide 54: Why is Telstra entering the health industry?
WHY IS TELSTRA ENTERING THE HEALTH INDUSTRY? TOTAL HEALTH SYSTEM EXPENDITURE SET TO DOUBLE IN A DECADE MAJOR SUSTAINABILITY CHALLENGES POINT TO NEED FOR eHEALTH SOLUTIONS THE eHEALTH MARKET CONSISTS OF MANY VALUABLE BUT DISCONNECTED TECHNOLOGIES TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 TELSTRA WILL
Slide 55: Building a complete eHealth ecosystem
WE WILL LEAD THE MARKET WITH A COMPLETE ECOSYSTEM BUILT THROUGH INVESTMENT & STRATEGIC PARTNERSHIPS TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 CREATING A SAFER, IMPROVING REDUCING HOSPITAL EFFICIENT AND MORE CONVENIENT PHARMACY INTEGRATION OF AND AGED CARE SYSTEM HEALTH INFORMATION ADMISSIONS • 200 m
Slide 56: Why Telstra will succeed in eHealth
PROVIDING CONSUMERS INCREASING ACCESS TO WITH GREATER SPECIALIST CARE IN IMPROVING EFFICIENCY RURAL AREAS AND PRODUCTIVITY CONTROL • Many health transactions can now be • 135 million doctor appointments each • Health spending up from 8% GDP a done online year – only 21,000 done through decade ago to
Slide 57: Global applications and platforms: the software imperative
GLOBAL APPLICATIONS AND PLATFORMS CHARLOTTE YARKONI, EXECUTIVE DIRECTOR TELSTRA APPLICATIONS TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 THE SOFTWARE IMPERATIVE WHY SOFTWARE IS EATING THE WORLD By Marc Andreessen TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 80 investor.relations@team.telstra.com 40
Slide 58: Building a software business
BUILDING A SOFTWARE BUSINESS KEY CHARACTERISTICS FINANCIAL CULTURAL BUSINESS • High margin at scale • Talent-driven business • Ecosystem where • Low CAPEX • Requires sustained partnerships are required commitment over time with other parts of the • High initial investment, value chain then very low
Slide 59: Global applications and platforms; Telstra Ventures
GLOBAL APPLICATIONS AND PLATFORMS A SOFTWARE BUSINESS UNIT THAT ADDRESSES THE SHIFT TOWARDS BUSINESSES AND INDUSTRIES BEING RUN ON SOFTWARE AND DELIVERED AS ONLINE SERVICES RATIONALE OPPORTUNITY LANDSCAPE • The future is in the software layer and • Cloud-enabled software solutions there is an applic
Slide 60: Muru-D accelerator; Digital media
TM MURU-D ACCELERATOR MURU-D PROVIDES LEADERSHIP IN ACCELERATING INNOVATION AND CREATIVITY FOR THE AUSTRALIAN DIGITAL ECONOMY TO CULTIVATE AUSTRALIAN DIGITAL TALENT SO THEY DON’T HAVE TO GO OFFSHORE TO SUPPORT THEIR INNOVATION TM • Standalone identity powered by Telstra • Applicants apply online for
Slide 61: Changing consumption patterns
CHANGING CONSUMPTION PATTERNS THEN A MARKETPLACE READY FOR MEDIA GROWTH • Massive growth in Smartphone penetration • Almost 75% of Smartphone users accessing the internet daily on their NOW device • 50% of Smartphone users have a tablet CONSUMERS HAVE MORE POWER THAN EVER BEFORE • Video will account
Slide 62: A better entertainment experience for each Australian
Our vision A better entertainment experience for each Australian, every day Compelling, Better viewing Multiple True customer distinctive experience platforms focus content offering 90 investor.relations@team.telstra.com 45
Slide 63: Compelling, distinctive content offering
Compelling, distinctive content offering Premium content Best of Global Brands Foxtel Networks investor.relations@team.telstra.com 46
Slide 64: iQ3 entertainment hub; multiple platforms
iQ3 – The Entertainment Hub Multiple platforms for different customer segments ‘Full’ Foxtel Engagement with TV Foxtel Play Presto Price sensitivity investor.relations@team.telstra.com 47
Slide 65: Foxtel Play and Presto
Foxtel Play Build your own entertainment pack Add premium packs Entertainment Drama Documentary Kids Sport Movies 1 Pick: $25 2 Picks: $35 3 Picks: $45 4 Picks: $50 1 Pick: $25 2 Picks: $50 Bonus (included with every package) Complimentary All picks for $100 access to Presto. Powered by Foxtel Prest
Slide 66: Investing in customer service
Investing in customer service Advocacy Digital Driving customer advocacy investor.relations@team.telstra.com 49