Tpg Telecom Limited · ASX:TPG
Tpg Telecom — UBS Australasia Conference 2024
14 slides from Tpg Telecom's conference presentation, Nov 11, 2024
Slide 1: TPG Telecom Limited - UBS Australasia Conference Presentation
Market Announcements Office Australian Securities Exchange Level 4, 20 Bridge Street Sydney NSW 2000 Sydney, 11 November 2024 TPG Telecom Limited - UBS Australasia Conference Presentation For personal use only In accordance with TPG Telecom Limited’s Market Disclosure Policy, enclosed is a copy of t
Slide 2: UBS Australasia Conference 11 and 12 November 2024
For personal use only UBS Australasia Conference 11 and 12 November 2024
Slide 3: FY24 recap to date: solid trading, strong cash performance, cost action
FY24 recap to date: solid trading, strong cash performance, increased action on cost, progress on key strategic initiatives For personal use only • Mobile service revenue1 up 7.2% vs.1H23 driven by sustained higher ARPU 1 1H24 trading • Fixed broadband AMPU2 up 6.3% vs.1H23 driven by strong Fixed Wi
Slide 4: Margin resilience: margin growth continues to exceed revenue growth
Margin resilience: margin growth continues to exceed revenue growth driven by Mobile and on-net Fixed broadband For personal use only Group service revenue1 ($m) Mobile service revenue growth reflects sustained higher mobile ARPU and subscriber gains from past two years 1.7% Mobile service revenue u
Slide 5: Cost outlook: investment uplift peaked in FY23
Cost outlook: investment uplift peaked in FY23; focused on delivering flatter profile in 2H24, FY25 and beyond For personal use only Operating expense and cash capex excluding spectrum ($m) • Investment growth in network, security and technology systems uplift has now passed its peak • Reduced c. 12
Slide 6: Fibre strategic review outcome: sale of fibre network assets to Vocus for $5.25b
Fibre strategic review outcome: sale of fibre network assets and fixed EGW operating business to Vocus for $5.25b For personal use only 1 Transaction perimeter comprises high-value fibre assets with strong cash profile as well as resilient EGW fixed and voice operations Oct 2024 Fibre assets sol
Slide 7: Cash flow upside: Continuing TPG retains the Group's free cash flow upside
Cash flow upside: Continuing TPG retains substantially all the Group’s free cash flow upside post Vocus transaction Strong momentum expected from lower capex and opex, working capital movements and reduced interest costs For personal use only Current trend Outlook Service revenue Recent plan refresh
Slide 8: Owner economics: TPG remains major mobile telco infrastructure operator
Owner economics: TPG remains major mobile telco infrastructure operator with competitive fibre network access For personal use only Post the transaction, TPG will retain more than 80% of total assets (excluding goodwill)1 including: Retain c. 80% All active mobile components: radio access network,
Slide 9: Capital allocation: framework first presented at June 2022 investor day
Capital allocation: framework first presented at June 2022 investor day continues to reflect our approach Recurring capital management Value maximisation levers For personal use only Annual Enhanced Transformation Additional Sustaining Strong Growth dividend to portfolio investment return to investm
Slide 10: TPG's journey and looking ahead
TPG’s journey and looking ahead 2020-21: 2024-25: For personal use only COVID-19 transition Completing transformation 2018-19: COVID-19 created 2022-23: Transformational 2026 onwards: Pre-merger approval widespread industry Service revenue recovery MOCN and fibre/EGW Rebased TPG disruption fixed
Slide 11: Appendices
For personal use only Appendices
Slide 12: Vocus transaction: financial impacts on TPG group results
Vocus transaction: financial impacts on TPG group results have been estimated on FY23 pro forma basis For personal use only TPG Status Quo Continuing TPG Change $m, pro-forma underlying basis Enterprise value (EV)1 $5,250m incl. FY23A FY23 PF $m potential $250m Contingent Value Payment 2 EBITDA4 [A]
Slide 13: Vocus transaction: TPG revenue profile has greater exposure to Mobile
Vocus transaction: TPG revenue profile has greater exposure to higher growth Mobile business post transaction For personal use only Revenue FY23A – Before Sale Revenue FY23 PF – Continuing TPG EGW Fixed EGW Mobile 11% 4% EGW Mobile Consumer 3% Consumer Mobile Mobile Consumer 40% 36% Fixed Consumer 3
Slide 14: Disclaimer
Disclaimer Future performance and forward-looking statements Not financial product advice For personal use only Forward-looking statements, opinions and estimates provided in this Presentation are based on This Presentation is for information purposes only and is not financial product or investment