Slide 1: 2016 Full Year Results Presentation
2016 FULL YEAR RESULTS PRESENTATION 20 SEPTEMBER 2016 a RG
Slide 2: FY16 Summary Results
FY16 SUMMARY RESULTS For personal use only Reported Underlying1 FY16 FY15 Growth FY16 FY15 Growth Revenue $m 2,387.8 1,270.6 88% 2,387.8 1,270.6 88% EBITDA $m 849.4 484.5 75% 775.3 485.3 60% NPAT $m 379.6 224.1 69% 361.0 247.0 46% EPS ₡ 45.3 28.2 61% 43.1 31.1 39% 1. Refer to slide 3 for reconciliat
Slide 3: FY16 Underlying EBITDA & NPAT
FY16 UNDERLYING EBITDA & NPAT For personal use only FY16 FY15 $m EBITDA NPAT EBITDA NPAT Reported 849.4 379.6 484.5 224.1 Less: Gain on previously held interest in iiNet (73.1) (73.1) - - Less: Profit on sale of shares (17.6) (12.3) - - Add: One-off iiNet acquisition transaction costs 10.3 10.3 0.8
Slide 4: FY16 Underlying EBITDA Growth
FY16 UNDERLYING EBITDA GROWTH For personal use only $m FY15 Group underlying EBITDA 484.5 iiNet EBITDA for 11.25 month post acquisition period 1H16 1H15 248.9 TPG Consumer Division EBITDA growth 16.0 TPG Corporate Division EBITDA growth 37.1 Adverse accounting impact on TPG Corporate Division from i
Slide 5: Historical Growth Track Record
HISTORICAL GROWTH TRACK RECORD For personal use only In the above charts: FY16 EBITDA is the underlying EBITDA as per slide 3. For all other periods EBITDA is as reported. FY16 NPAT is the underlying NPAT as per slide 3. For all other periods NPAT is as reported except adjusted to exclude the impact
Slide 6: Composition of EBITDA Growth
COMPOSITION OF EBITDA GROWTH For personal use only EBITDA ($m) In the above charts FY16 EBITDA is the underlying EBITDA as per slide 3. For all other periods EBITDA is as reported. -6-
Slide 7: FY16 Free Cash Flow
FY16 FREE CASH FLOW $m For personal use only FY16 FY15 1H16 Operating Cash Flow 759.2 492.8 Tax (138.8) (110.9) Capex (281.0) (153.8) IRU payments (21.4) - Free Cash Flow 318.0 228.1 Increase in FY16 capex driven by: - $27m one-off payment for acquisition of Glebe premises - $15m spectrum payment -
Slide 8: FY16 Non Operating Cash Flows
FY16 NON OPERATING CASH FLOWS $m For personal use only FY16 FY15 1H16 1H15 Free Cash Flow 318.0 228.1 Disposal of / (investment in) equities 57.0 (115.6) iiNet acquisition (inc transaction costs) (1,317.6) - Net proceeds from capital raise 322.5 - Net drawdown / (repayment) of debt 808.8 (21.0) Inte
Slide 9: FY16 Bank Debt
FY16 BANK DEBT For personal use only $m 1H16 Group debt balance at 31 July 2015 329.0 iiNet acquisition and transaction fees 1,317.6 iiNet bank debt acquired 212.1 Repayments from capital raise proceeds (322.5) Other repayments made during FY16 (186.2) Group debt balance as at 31 July 2016 1,350.0 1
Slide 10: FY16 Group Segment & Product Analysis
FY16 GROUP SEGMENT & PRODUCT ANALYSIS REVENUE TPG Consumer TPG/AAPT For personal use only iiNet Other TOTAL $m Broadband Mobile/Other Total Corporate FY15 544.4 83.7 628.1 642.5 - - 1,270.6 1H16 FY16 605.0 69.3 674.3 654.6 1,058.9 - 2,387.8 EBITDA TPG Consumer TPG/AAPT iiNet Other TOTAL $m Broadband
Slide 11: FY16 iiNet Segment & Product Analysis
FY16 iiNET SEGMENT & PRODUCT ANALYSIS REVENUE $m iiNET GROUP For personal use only Broadband Fixed Voice Mobile Other TOTAL FY16 704.5 204.1 54.6 95.7 1,058.9 EBITDA $m iiNET GROUP Broadband Fixed Voice Mobile Other TOTAL FY16 191.2 31.8 2.4 23.5 248.9 EBITDA % iiNET GROUP Broadband Fixed Voice Mobi
Slide 12: Corporate Division EBITDA Growth
CORPORATE DIVISION EBITDA GROWTH For personal use only Continued organic Corporate Division EBITDA growth in FY16 driven by strong sales and continued margin expansion, and despite a $10.1m adverse accounting impact arising from consolidating iiNet. “Proforma 1H14” comprises the recurring corporate
Slide 13: Corporate Division Net Promoter Score
CORPORATE DIVISION NET PROMOTER SCORE For personal use only Focus on customer service has lifted Corporate Division NPS to over +70 -13-
Slide 14: Group Broadband Subscribers
GROUP BROADBAND SUBSCRIBERS For personal use only Group broadband subscribers increased to 1.87m at end of FY16 -14-
Slide 15: TPG Consumer Broadband Subscribers
TPG CONSUMER BROADBAND SUBSCRIBERS For personal use only Overall growth of 64k in FY16 75k NBN growth in the year Overall churn rate 1.4% -15-
Slide 16: iiNet Broadband Subscribers
iiNET BROADBAND SUBSCRIBERS For personal use only Improved overall trend post year-end. Net positive growth in Aug-16 following release of new plans Overall churn rate 1.5% -16 -
Slide 17: Group Mobile Subscribers
GROUP MOBILE SUBSCRIBERS For personal use only 200k+ migrated to new MVNO arrangement -17 -
Slide 18: Consumer: TPG Net Promoter Score
CONSUMER: TPG NET PROMOTER SCORE For personal use only TPG Broadband ended the period with +38 NPS Mobile NPS temporary drop caused by the MVNO migration exercise -18 -
Slide 19: iiNet Net Promoter Score
iiNET NET PROMOTER SCORE For personal use only Strong NPS focus continues throughout the iiNet business -19 -
Slide 20: Final Dividend
FINAL DIVIDEND For personal use only 7.5 cents per share final dividend 1H16 Payable 22 November 2016 Record date 18 October 2016 Total FY16 dividends = 14.5 cents per share 26% increase over prior year -20-
Slide 21: Singapore
SINGAPORE For personal use only • TPG Telecom Pte Ltd (Singapore) lodged Expression of Interest to bid for up to 75Mhz of spectrum. • If successful, we will quickly move to establishing a substantial Singapore operation with strong local management and mobile expertise. • The Singapore business will
Slide 22: Guidance
GUIDANCE For personal use only FY16 FY17 $m Actual Guidance Underlying EBITDA Guidance 775.3 820 - 830 Capital Expenditure 281.0 370 - 420 FY17 Underlying EBITDA guidance excludes any impact from potential operations in Singapore. FY17 Capital Expenditure guidance includes $72m for 1800 MHz spectrum
Slide 23: Appendices
For personal use only APPENDICES
Slide 24: Appendix: ARPU
APPENDIX 1 : ARPU TPG ARPU ($/mth) 80 For personal use only 67.4 67.2 70 59.1 58.7 60 53.9 56.7 50 40.3 40.1 40 30 20 10 0 NBN On Net ADSL & Home On Net ADSL Off Net ADSL Phone Bundle Notes: 1H16 2H16 ARPU for NBN and On Net ADSL include revenue from on-net home phone voice. iiNet fixed phone ARPU r
Slide 25: Appendix: Forecast Intangible Amortisation
APPENDIX 2 Forecast intangible amortisation For personal use only FY16 FY17 FY18 FY19 FY20 FY21 FY22-26 FY27-31 $m Actual F’cast F’cast F’cast F’cast F’cast F’cast F’cast Acquired customer bases 74.5 62.4 51.0 1H16 31.7 43.5 1H15 20.8 Growth13.1 48.6 Capacity IRUs 10.6 11.9 15.1 17.9 19.7 21.6 106.9
Slide 26: Q&A Thank You
For personal use only Q&A THANK YOU
Slide 27: Disclaimer
DISCLAIMER For personal use only This presentation contains certain forward-looking and unaudited information. Such information is based on estimates and assumptions that, whilst considered reasonable by the Company, are subject to risks and uncertainties. Actual results and achievements could be si