2026
TPG Telecom acknowledges the Traditional Custodians of Country throughout Australia and the lands on which we and our communities live, work and connect.
Agenda
1
Results highlights and business update
Iñaki Berroeta, CEO and Managing Director
2
Review of financial performance
John Boniciolli, CFO
3
Outlook
Iñaki Berroeta, CEO and Managing Director
4 Q&A
All figures on a Continuing Operations basis, unless otherwise stated. To seek the fullest understanding of TPG Telecom's performance, users should read this presentation in conjunction with the consolidated financial statements in TPG's 2026 Half Year Report, which is available on the Company's website at https://www.tpgtelecom.com.au.
3
Results highlights and business update
Iñaki Berroeta
CEO and Managing Director
Key messages
1H26 momentum positions TPG for a stronger second half and continued growth into FY27
Enhanced network driving growth
Mobile network coverage increased to 99% of population
Subscriber share growth
c. 1ppt since MOCN launch
Consistently lower port-outs since MOCN launch
MVNO contract wins with Zip, Swoop and Spacetalk
Strong Mobile performance
Mobile Gross Margin up 4.2%
Subscriber growth driven by Digital First, MVNO and Business
Continued outperformance versus market on Postpaid subscriber growth
5
ARPU growth in 1H26 with acceleration expected in 2H26 following recent plan refreshes
Cash flow momentum building
Sustained growth from increased margin, disciplined opex control and lower capex
Structural improvement underpinned by lower borrowings
ROIC and dividends growing
Persistent benefits from earnings growth and capital structure efficiency
Interim dividend of 10.0 cents per share (up 1 cent) reflects strong cash flow generation and outlook
Performance highlights
Strong results underpinned by Mobile growth and focused cost discipline
Mobile subscribers | Gross Margin | Operating Free Cash Flow | ROIC |
▲64k | $1,329m | $199m | 6.07% |
to 5,806k | ▲ 2.9% | ▲ 16.4% | ▲ 1.24 ppt |
Mobile ARPU | EBITDA | Free Cash Flow to Equity | Underlying EPS |
$35.21 | $821m | $93m | 3.6¢ |
▲ 0.7% | ▲ 4.5% | ▲ $108m | ▲ 2.7¢ |
Mobile Service Revenue $1,224m ▲ 3.1% | Underlying NPATA $70m ▲ $53m | Debt to EBITDA 0.8x ▼ 1.5x | Interim dividend 10.0¢ ▲ 11.1% 25% franked |
1 Gross Margin, EBITDA, Underlying NPATA, Operating Free Cash Flow, Free Cash Flow to Equity, ROIC, Underling EPS growth presented in comparison to 1H25 Pro Forma basis.
Refer to Glossary on slides 29 and 30 for definitions of key terms. 6
Mobile
ARPU growth across all products accelerating into 2H26 following recent plan refreshes
KEY CALLOUTS:
Total 1H26 subscriber growth of 64k reflects market-leading growth across Postpaid, Digital First and Prepaid segments
ARPU ($)
+0.5%
Subscribers ('000)
1H26 Postpaid churn down 0.3ppt vs 1H25, reflecting continuing reduction since MOCN launch
MVNO migrations (Swoop and Spacetalk)
expected to take place in 2H26
34.97 35.21
48.51 48.75
+2.8%
25.39 26.10
+4.6%
18.99 19.87
5,742
+64 / +1.1%
5,806
MVNO +43 / 25.1% Prepaid (30) / (1.7)% Digital First +57 / +7.9% Postpaid flat | ||||||
171 | 269 | 264 | ||||
1,732 | 1,702 | |||||
724 | 781 | |||||
2,846 | 2,846 | |||||
214
2H26 OUTLOOK:
2H26 total ARPU growth expected to be higher than 1H26 following May to August plan refreshes, supporting continued Service Revenue growth
HY25
HY26
HY25
HY26
HY25
HY26
HY25
HY26
Total Postpaid Digital First Prepaid
FY25 HY26
Total (ex MVNO) Postpaid
Digital First Prepaid
Postpaid Digital First
Prepaid Data SIM MVNO
Refer to Appendix slide 24 for detailed subscriber and ARPU metrics.
Refer to Glossary slides 29 and 30 for definitions of key terms. 7
Home Broadband
Improved outlook for subscriber numbers in 2H26 following stabilisation initiatives
KEY CALLOUTS:
NBN churn reduced 1.1ppt in 1H26 vs 1H25 and high-speed (NBN100 plus) now 56% of NBN base
AMPU1 ($)
Subscribers ('000)
Fixed Wireless returned to growth in 2Q26, driven by footprint expansion following the implementation of Standalone 5G
5G Fixed Wireless increased to >70% of subscribers
+0.2%
50.88
+0.2%
50.97
1,983
115
15
285
(42) / (2.1)%
FWA
(1) / (0.4)%
1,941
114
16
284
2H26 OUTLOOK:
AMPU expected to strengthen in 2H26
25.76
25.36
22.21
1,527
NBN
(41) / (2.6)%
1,568
22.25
Further improved subscriber performance anticipated in 2H26 vs 1H26, following positive momentum in July and August
NBN subscriber base continuing to stabilise with Fixed Wireless returning to growth in 2H26 with increasing 5G mix
Overall NBN Fixed Wireless
Total NBN Fixed Wireless
HY25
HY26
HY25
HY26
HY25
HY26
FY25 HY26
NBN Fixed Wireless Vision Network Other
8
1 Wholesale transmission and fibre access costs with Vocus (TAWFA) not allocated to product, the Vision wholesale broadband agreement (WBA) has been allocated to product. Refer to Appendix slide 24 for detailed SIOs and ARPU metrics. Refer to Glossary slides 29 and 30 for definitions of key terms.
Service Revenue and Gross Margin
Mobile margin expansion expected to accelerate in 2H26 with improving Home Broadband margin
KEY CALLOUTS:
Mobile Gross Margin +4.2% and greater than Mobile Service Revenue growth
Mobile ($m)
Home Broadband ($m)
Mobile Gross Margin growth more than offsetting full six months of regional network sharing arrangement
Home Broadband Gross Margin expected to improve
over time as customer base stabilises
1,187
+3.1%
1,224
980
+4.2%
1,022
843
(1.9)%
827
(4.5)%
2H26 OUTLOOK:
Expecting Gross Margin growth to continue to exceed Service Revenue growth in 2H26
312
298
HY25
HY26
HY25
HY26
Benefit from Mobile ARPU expected for the full year following announced plan refreshes
Service Revenue Gross Margin
Service Revenue Gross Margin1
Service Revenue Gross Margin
HY25
HY26
HY25
HY26
Service Revenue Gross Margin1
1 Transmission and Wholesale Fibre Access Agreement costs not allocated to product; Vision Network Wholesale Broadband Agreement allocated to Home Broadband in all periods. Refer to Appendix slide 24 for detailed SIO and ARPU metrics.
Refer to Glossary slides 29 and 30 for definitions of key terms. 9
Delivering our strategy
STRATEGY PILLAR 1H26 DELIVERED LOOKING AHEAD
Run networks smarter
150% increase in regional data usage post MOCN
Three new MVNO partnerships
Successful delivery of fibre separation
Explore further network sharing opportunities
Engage in ACCC domestic roaming review
Continue to develop LEOSat partnerships
Invigorate brands and services
Make it easy for customers
Become faster, simpler and stronger
Highest ever Vodafone consideration with non-customers
Home Broadband initiatives to address NBN churn
Enhance Fixed Wireless through 5G standalone
Launched AI-enabled analytics for Home Broadband
10ppt increase in Vodafone first contact resolutions
Business simplification post Vocus transaction
Flat operating costs despite ongoing elevated inflation
$46m real opex efficiencies since start FY25
2H26: Launch market-leading Upgrade and Protect feature for handset customers
2H26: Release improved digital portal and Fleet proposition for Vodafone Business
Expand AI-enabled analytics for Mobile
Continue simplification/rationalisation of IT systems
Deliver single IT stack to support all customers
Expand AI capabilities in network and operations
Continue delivery of $100m opex efficiencies by FY29
Embody customer first, people always
5-Star Employer of Choice for four of five years
Vodafone NPS up 12pts to 31pts from June 2025
Expand market-leading in-store customer wellbeing specialist program
Develop AI-enabled proactive customer support
10
Review of financial performance
John Boniciolli CFO
DRAFT all figures
under review
Key financial metrics
Mobile Service Revenue growth, cost discipline and capital efficiency delivering for shareholders
($M) HY25
PRO FORMA1
HY26 CHANGE
Service Revenue | 2,060 | 2,071 | 0.5% |
Gross Margin | 1,291 | 1,329 | 2.9% |
EBITDA | 784 | 821 | 4.7% |
EBITDA (Guidance basis) | 786 | 821 | 4.5% |
NPAT | (20) | 35 | 275.0% |
Underlying NPATA | 17 | 70 | 53 |
Underlying EPS (cents) | 0.9 | 3.6 | 2.7 |
Ordinary dividends per share (cents) | 9.0 | 10.0 | 11.1% |
ROIC 4.83 % | 6.07 % | 1.24ppt | |
Gross Margin growth > Service Revenue growth
Mobile revenue growth and direct costs leverage more than offsetting regional network sharing costs
EBITDA growth > Gross Margin growth
Operating costs broadly flat despite high inflation
NPAT growth > EBITDA growth
Reduced borrowing costs following 2025 debt reduction
Strong dividend growth
Enhanced free cash flow following 2025 fibre sale and debt reduction
Accelerating ROIC growth
Improved earnings and enduring benefit of capital efficiency improvements including handset receivables financing program
Operating Free Cash Flow (OFCF) 171 | 199 | 16.4% |
Free Cash Flow to Equity (15) | 93 | 720% |
Higher cash earnings and lower cash capex Materially lower borrowing costs
1 Pro Forma: as if new commercial arrangements arising from the Vocus Transaction had been in place for 1H25, creating a like-for-like comparison with 1H26. See reconciliation on slide 26.
Refer to Glossary slides 29 and 30 for definitions of key terms. 12
DRAFT all figures
under review
Profit summary
Operating leverage and cost discipline convert revenue growth into accelerated profit growth
2,071 | 0.5% |
354 | (8.8)% |
2,425 | (0.9)% |
9 | n.m |
(771) | 1.0% |
(334) | 12.3% |
1,329 | 2.9% |
(508) | (0.2)% |
821 | 4.7% |
(613) | 1.9% |
208 | 30.8% |
(159) | 24.3% |
(37) | 69.7% |
(86) | 2.3% |
(36) | n.m |
(14) | n.m |
35 | 275.0% |
($M) | HY25 | HY25 PRO FORMA1 |
Service Revenue | 2,060 | 2,060 |
Handset and hardware revenue | 388 | 388 |
Total revenue | 2,448 | 2,448 |
Other income | 2 | 3 |
Cost of provision of telco services | (749) | (779) |
Cost of handsets sold | (381) | (381) |
Gross Margin | 1,320 | 1,291 |
Operating costs | (507) | (507) |
EBITDA | 813 | 784 |
Depreciation and amortisation | (608) | (625) |
EBIT | 205 | 159 |
Net financing costs | (181) | (210) |
- Net bank interest | (122) | (122) |
- Lease interest | (59) | (88) |
- Handset receivables financing | - | - |
Income tax benefit/(expense) | 8 | 30 |
NPAT (Statutory) | 32 | (20) |
HY26 CHANGE PRO FORMA
Lower handset sales volumes reflecting market conditions
Very strong outcome relative to 3.6% inflation
Reduction includes c. $10m one-off amortisation benefit
Material reduction following FY25 debt repayments
1H25 included one-off tax benefit of $15m
1 Pro Forma is as if new commercial arrangements arising from the Vocus Transaction, had been in place the entire 2025 Year creating a like-for-like comparison with 2026. Reconciliation of HY25 Pro Forma basis on slide 26.
Refer to Glossary slides 29 and 30 for definitions of key terms. 13
DRAFT all figures
under review
Cash flow summary
EBITDA growth and debt reduction have driven material increase in cash available to shareholders
($M) HY25
GROUP
HY25 PRO FORMA1
HY26 GROUP
CHANGE PRO FORMA
EBITDA Income tax paid Working capital and other movements | 967 - 26 | 784 - 30 | 821 (21) 7 | 4.7% |
Cash flow from operating activities | 993 | 814 | 807 | (0.9)% |
Capex - assets | (497) | (427) | (388) | |
Capex - commissions & contract costs | (46) | (46) | (43) | |
Lease payments | (145) | (170) | (177) | |
Operating Free Cash Flow | 305 | 171 | 199 | 16.4% |
Vocus sale impacts2 | (43) | (43) | (52) | |
Net Bank borrowing and other financing costs paid3 | (143) | (143) | (40) | 72% |
Employee incentive plan | - | - | (14) | |
Free Cash Flow to Equity | 119 | (15) | 93 | 720% |
Free Cash Flow to Equity excluding transaction and separation costs | 162 | 28 | 145 | |
Net borrowings drawdown | 51 | 51 | 71 | |
Capital management cost paid | - | - | (5) | |
Dividends paid | (167) | (167) | (176) |
Tax payable after historic tax losses utilised in FY25
Continued positive movement primarily from lower handset debtors, efficient inventory management
Cash capex first-half weighted; FY26 cash capex expected to be around FY25 levels
Pro Forma and 1H26 includes new fibre access agreement
Separation costs for fibre/EGW Fixed as expected (ends FY26)
Benefit of debt repayments in FY25
Timing related, due to 1H26 capex weighting, expected to reverse
in 2H26
FY26 OUTLOOK:
Free Cash Flow to Equity expected to be stronger in 2H26 vs 1H26 due to higher earnings, lower capex, sustained lower debt
1 Pro Forma is as if new commercial arrangements arising from the Vocus Transaction had been in place the entire period, creating a like-for-like comparison with 2026. Reconciliation of HY25 Pro Forma basis on slide 26.
2 Inclusive of the payment of transaction and separation costs of $41m, and completion related payments of $11m.
3 Inclusive of bank borrowing costs $(44)m, interest income $5m and net payments for investment in subordinated note $(1)m related to the handset receivable financing program. 14
Refer to Glossary on slides 29 and 30 for definitions of key terms.
Operating costs
Cost savings ahead of schedule despite high inflationary environment
KEY CALLOUTS:
Strong first-half cost outcome with minimal increase despite high inflation
Operating expenses (Guidance basis) ($m)
Savings arising from business simplification
benefits and disciplined cost management
505
+3m / +0.6% 508
137
126
Technology costs
+11m/ +8.7%
175
Employment
costs
+1m / +0.6%
174
On track to deliver approximately $100m of operating cost efficiency (i.e. before inflation) by FY29
1H26 translates to real savings of c. $15m against inflation of 3.6%
Approximately $31m delivered in FY25
204
Other operating
expenses
($8m) / (3.9%)
196
FY26 OUTLOOK:
Operating expenses expected to be broadly flat
(nominal) on FY25 Pro Forma at c. $1,020 million
HY25 HY26
Other operating expenses Employment costs Technology costs15
Capital investment
Investment discipline contributing to improved profitability and cash flow
CAPEX:
FY26 cash capex weighted toward first-half but ongoing annual run-rate reductions continuing
473
Capex ($m)
428
431
388
277
Capex reducing to $650m in FY27 and falling further
within $550-650m range (excluding spectrum) in FY28
FY26 additions expected to be approximately $750m | 343 | 301 | ||
(FY25 $771m). Cash capex expected to be broadly the same as FY25 | 427 | 249 | ||
46 | 52 |
43
1H25 2H25 1H26
Cash capex - Commissions Cash capex - network and IT Capex additions basisDEPRECIATION AND AMORTISATION
1H26 transition from PPE depreciation and to RoU and amortisation of other intangibles reflects Vocus transaction
Depreciation and amortisation ($m)
608 613
1H26 benefitted from c. $10m one-time amortisation
adjustment
50 50
122 138
69
140
85
128
227
212
FY26 OUTLOOK:
Depreciation and amortisation expense expected to be broadly flat on FY25 Pro Forma at c. $1,280 million
HY25 HY26
Depreciation: PP&E Depreciation: RoU Amortisation: spectrum Amortisation: other intangiblesAmortisation: customer base
Refer to Glossary slides 29 and 30 for definitions of key terms. 16
Capital management
De-risked financial position and confidence in cash flow outlook supports increased dividend
Dividends
1H26 increase reflects stronger cash flow position from EBITDA growth and debt reduction post FY25 borrowings repayment
Franking of 25% sustainable over the medium-term
Intention to increase over time in line with sustainable growth in profit and cash flow
Dividends declared
Financial leverage
Operating momentum driving debt/EBITDA
headroom higher over FY26 and FY27
Spectrum licence renewals beginning FY28
manageable within target ranges
Debt to EBITDA (S&P) trajectory (illustrative)1
3.00x
Bank borrowings
Total facilities reduced by $400m in 1H26 reflecting recent repayments and strong cash flow liquidity position
Refinancing of FY28 maturities expected to be complete in Q4 FY26, delivering extension and reduced concentration of maturities
Bank debt maturity ($m)
9.0
9.0
325
Target
HY26
<2.75x
1,140
'BBB'
9.0
10.0
range
1H25 2H25 1H26
2.00x
FY25
FY26 FY27 FY28 FY29
300
FY26 FY27 FY28 FY29 FY30
Dividend Special dividend
Revolving facilities - drawn Revolving facilities - undrawn Asian term loan - drawn
1 Adjusted Debt to EBITDA is consistent with S&P rating methodology and adjusts EBITDA for items such as capitalised contract costs and MOCN payments, as well as the treatment of handset financing arrangements.
Refer to Glossary slides 29 and 30 for definitions of key terms. 17
Outlook
Why do fundamental investors want to own TPG
Iñaki Berroeta
CEO and Managing Director
DRAFT all figures
under reviewed
Shareholder value proposition
Delivering strategic initiatives to improve financial performance and strengthen our investment case
1H251 1H26 FY26 outlook Medium-term direction (FY27-29)
Mobile Service Revenue growth | +3.7% | +3.1% | Continued growth supported by expected 2H26 ARPU growth | Sustained ARPU and subscriber growth |
EBITDA margin | 32.1% | 33.9% | Continued improvement as EBITDA tracks within guidance range of $1,665-1,735m | EBITDA growth to exceed Service Revenue growth, driven by delivery of $100m opex savings (before impact of inflation) by FY29 |
Opex/Service Revenue | 24.5% | 24.5% | Reduction expected as opex anticipated to be broadly flat (nominal) on FY25 Pro Forma | Continued reduction driven by delivery of opex savings |
Capex/Service Revenue | 23.0% | 21.0% | Further reduction in FY26 as capex reduces to c. $750m (additions basis) | Improving further as Service Revenue grows and as capex has passed peak of recent investment cycle |
Operating Free Cash Flow | $171m | $199m | Strong organic growth, expected to be stronger in 2H26 due to higher earnings, lower capex | Improved operating performance and lower capex |
ROIC | 4.83% | 6.07% | Operating performance and capital efficiency continuing to drive improved returns | To grow and maintain above weighted average cost of capital over time |
Underlying EPS | 0.9₵ | 3.6₵ | Growing with improved earnings and lower borrowing costs | Accelerating growth with operating performance and lower borrowing costs |
Dividends per share | 9.0₵ | 10.0₵ | Intention to continue to increase over time in line with sustainable growth in profit and cash flow | |
1 All figures Pro Forma; capex is additions basis.
Refer to Glossary slides 29 and 30 for definitions of key terms.
19
DRAFT all figures
under reviewed
FY26 guidance unchanged
All guidance is subject to no material change in operating conditions
FY25 OUTCOME (PRO FORMA)
FY26 GUIDANCE
DRIVERS
EBITDA
(excluding material one-offs)
$1,637m $1,665m to
$1,735m
EBITDA growth driven by strong performance and continued growth in the Mobile business, while continued cost discipline will limit operating cost growth below inflation
Excludes any material one-off impacts arising from events such as transactions, redundancy, restructuring, mergers and acquisitions, disposals, impairments and any other items as determined by the Board and management
Capex
(additions basis)
$771m Approximately
$750m
Excludes spectrum
Refer to Glossary slides 29 and 30 for definitions of key terms. 20
Questions?
21
Confidential
Appendices
22
Revenue and Gross Margin
Continuing operations ($m) REVENUE ($M) GROSS MARGIN ($M)
HY25 | HY26 | CHANGE | HY25 | HY26 | CHANGE | ||
Group | 2,448 | 2,425 | (0.9)% | 1,320 | 1,329 | 0.7% | |
Mobile | 1,050 | 1,081 | 3.0% | ||||
Home Broadband | 834 | 816 | (2.2)% | ||||
Consumer | Other1 | 0 | 0 | n.m | |||
Handsets and hardware | 349 | 318 | (8.9)% | ||||
Total | 2,233 | 2,215 | (0.8)% | 1,179 | 1,183 | 0.3% | |
Business Mobile | 95 | 98 | 3.2% | ||||
Fixed | 9 | 11 | 22.2% | ||||
Enterprise | Wholesale Mobile | 42 | 45 | 7.1% | |||
Government & | |||||||
Wholesale | Other | 30 | 20 | (33.3)% | |||
Handsets and hardware | 39 | 36 | (7.7)% | ||||
Total | 215 | 210 | (2.3)% | 140 | 138 | (1.4)% | |
Unallocated | Total | - | - | - | 1 | 8 | 700.0% |
1 $4 million of revenue from contracts with customers has been reclassified from Consumer segment to EGW segment under Wholesale in HY25 to align with the current period assessment of performance.
Refer to Glossary slides 29 and 30 for definitions of key terms. 23
Mobile and Home Broadband metrics
2H24 | 1H25 | 2H25 | 1H26 | ||
Mobile (overall) | Subs ('000) | 5,514 | 5,614 | 5,742 | 5,806 |
ARPU ($) | $35.62 | $34.97 | $35.92 | $35.21 | |
Mobile - Postpaid | Subs ('000) | 2,846 | 2,861 | 2,846 | 2,846 |
ARPU ($) | $49.26 | $48.51 | $50.02 | $48.75 | |
Mobile - Digital First | Subs ('000) | 611 | 667 | 724 | 781 |
(TPG, felix, iiNet) | ARPU ($) | $23.54 | $25.39 | $25.75 | $26.10 |
Mobile - Prepaid | Subs ('000) | 1,679 | 1,709 | 1,732 | 1,702 |
(Vodafone Prepaid1, Kogan, Lebara) | ARPU ($) | $19.62 | $18.99 | $19.85 | $19.87 |
Data SIMs | Subs ('000) | 265 | 268 | 269 | 264 |
ARPU ($) | $14.94 | $14.53 | $15.29 | $15.07 | |
MVNOs | Subs ('000) | 113 | 110 | 171 | 214 |
Fixed (overall) | Subs ('000) | 2,076 | 2,021 | 1,983 | 1,941 |
AMPU ($) | $25.40 | $25.76 | $27.18 | $25.36 | |
NBN | Subs ('000) | 1,684 | 1,611 | 1,568 | 1,527 |
ARPU ($) | $69.80 | $71.27 | $74.37 | $74.44 | |
AMPU ($) | $21.30 | $22.21 | $22.96 | $22.25 | |
Fixed Wireless | Subs ('000) | 268 | 285 | 285 | 284 |
ARPU/AMPU | $49.95 | $50.88 | $52.30 | $50.97 | |
Vision Network (retail) | Subs ('000) | 108 | 110 | 115 | 114 |
ARPU ($) | $67.33 | $63.44 | $60.29 | $59.59 | |
AMPU ($) | $16.93 | $11.17 | $9.85 | $4.70 | |
Other Fixed | Subs ('000) | 16 | 16 | 15 | 16 |
Refer to Glossary slides 29 and 30 for definitions of key terms.
1 Including Vodafone Prepaid data SIMs, reported prior periods have been restated. 24
DRAFT all figures
under review
Balance sheet summary
Transformation of our financial position
($M) | 31/12/2025 | 30/6/2026 | CHANGE |
Trade and other receivables | 687 | 571 | (116) |
Property plant and equipment | 2,418 | 2,297 | (121) |
Intangible assets | 9,005 | 8,875 | (130) |
Deferred tax assets | 370 | 361 | (9) |
Right of use assets | 1,725 | 1,687 | (38) |
Other assets | 306 | 309 | 3 |
Total assets | 14,511 | 14,100 | (411) |
Lease liabilities | 2,793 | 2,747 | (46) |
Trade and other payables | 1,045 | 765 | (280) |
Borrowings | 1,361 | 1,435 | 74 |
Other liabilities | 641 | 623 | (18) |
Total liabilities | 5,840 | 5,570 | (270) |
Net assets/equity | 8,671 | 8,530 | (141) |
Enduring capital efficiency improvement delivered through implementation of new handset receivables financing program
Timing due to 1H26 capex weighting, expected to reverse in 2H26
Refer to Glossary slides 29 and 30 for definitions of key terms. 25
Subject to AUP review
Pro Forma reconciliation
HY25 | HY26 | CHANGE | |||||
($M) | GROUP (CONTINUING AND DISCONTINUED OPERATIONS) | ASSETS SOLD | CONTINUING OPERATIONS | NEW COMMERCIAL ARRANGEMENTS | HY25 PRO FORMA | ||
Income statement | |||||||
Service Revenue | 2,354 | (294) | 2,060 | - | 2,060 | 2,071 | 0.5 % |
Handset and hardware revenue | 388 | - | 388 | - | 388 | 354 | (8.8)% |
Total revenue | 2,742 | (294) | 2,448 | - | 2,448 | 2,425 | (0.9)% |
Other income | 6 | (4) | 2 | 1 | 3 | 9 | n.m |
Cost of telecommunications services1 | (791) | 42 | (749) | (30) | (779) | (771) | 1.0 % |
Cost of handsets and hardware | (381) | - | (381) | - | (381) | (334) | 12.3 % |
Gross Margin | 1,576 | (256) | 1,320 | (29) | 1,291 | 1,329 | 2.9 % |
Operating expenditure | (609) | 102 | (507) | - | (507) | (508) | (0.2)% |
EBITDA | 967 | (154) | 813 | (29) | 784 | 821 | 4.7 % |
Guidance adjustments | 47 | (45) | 2 | - | 2 | - | n.m |
EBITDA (guidance basis) | 1,014 | (199) | 815 | (29) | 786 | 821 | 4.5 % |
Depreciation and amortisation | (672) | 64 | (608) | (17) | (625) | (613) | 1.9 % |
EBIT (guidance basis) | 342 | (135) | 207 | (46) | 161 | 208 | 29.2 % |
Net Financing Cost | (184) | 3 | (181) | (29) | (210) | (159) | 24.3 % |
Cash flow statement | |||||||
Cash flow from operating activities | 993 | (141) | 852 | (38) | 814 | 807 | (0.9)% |
Capex excluding spectrum payments | (543) | 70 | (473) | - | (473) | (431) | 8.9 % |
Lease - principal component | (83) | 9 | (74) | (8) | (82) | (91) | (11.0)% |
Lease - interest component | (62) | 3 | (59) | (29) | (88) | (86) | 2.3 % |
Operating Free Cash Flow | 305 | (59) | 246 | (75) | 171 | 199 | 16.4 % |
Refer to Glossary slides 29 and 30 for definitions of key terms.
1 Pro Forma adjustments for cost of telecommunications services lower than 5 August 2025 presentations, following an update to Vision WBA cost allocation methodology, now recognised as lost revenue in discontinued operations. 26
Earnings per share
CONTINUING OPERATIONS ($M) | HY25 | HY26 | CHANGE | HY25 PRO FORMA ADJ | HY25 PRO FORMA | HY26 PRO FORMA & STAT | CHANGE VS PRO FORMA |
Statutory NPAT | 32 | 35 | 3 | (52) | (20) | 35 | 55 |
Acq. Customer base amortisation (tax affected) | 35 | 35 | - | - | 35 | 35 | - |
Adj. for material one-offs (tax affected) | 2 | - | (2) | - | 2 | - | (2) |
Underlying NPATA | 69 | 70 | 1 | (52) | 17 | 70 | 53 |
Weighted avg. # ordinary shares (basic, millions) | 1,860 | 1,954 | 94 | - | 1,860 | 1,954 | 94 |
Weighted avg. # ordinary shares (diluted, millions) | 1,863 | 1,956 | 93 | - | 1,863 | 1,956 | 93 |
Basic EPS (cps) | 1.7 | 1.8 | 0.1 | - | (1.1) | 1.8 | 2.9 |
Diluted EPS (cps) | 1.7 | 1.8 | 0.1 | - | (1.1) | 1.8 | 2.9 |
Underlying basic EPS (cps) | 3.7 | 3.6 | (0.1) | - | 0.9 | 3.6 | 2.7 |
Refer to Glossary slides 29 and 30 for definitions of key terms. 27
Return on Invested Capital
CONTINUING OPERATIONS($M) | HY25 | HY26 | CHANGE | HY25 PF ADJ. | HY26 PF ADJ. | HY25 PRO FORMA | HY26 PF | CHANGE |
Statutory EBIT | 205 | 208 | 3 | (46) | - | 159 | 208 | 49 |
Add back acquired customer base amortisation | 50 | 50 | - | - | - | 50 | 50 | - |
Add back material one-offs | 2 | - | (2) - | - | 2 | - | (2) | |
EBIT adjusted for specific items | 257 | 258 | 1 | (46) | - | 211 | 258 | 47 |
Notional tax | (77) | (77) | - | 14 | - | (63) | (77) | (14) |
Net operating profit after tax (NOPAT) | 180 | 181 | 1 | (32) | - | 148 | 181 | 33 |
Net operating profit after tax (NOPAT) 12-month rolling | 377 | 359 | (18) | (63) | (6) | 314 | 353 | 39 |
Total assets | 14,779 | 14,100 | (679) | 588 | (27) | 15,367 | 14,073 | (1,294) |
Less current liabilities | (1,307) | (1,386) | (79) | (53) | 89 | (1,360) | (1,297) | 63 |
Add back lease liabilities (current) | 112 | 165 | 53 | 32 | - | 144 | 165 | 21 |
Less cash | (45) | (55) | (10) - | - | (45) | (55) | (10) | |
Remove deferred tax assets | (410) | (361) | 49 | (93) | 27 | (503) | (334) | 169 |
Remove customer base intangible | (300) | (200) | 100 | - | - | (300) | (200) | 100 |
Remove brand name | (309) | (309) | - | - | - | (309) | (309) | - |
Remove goodwill | (6,707) | (6,706) | 1 | - | - | (6,707) | (6,706) | 1 |
Invested Capital | 5,813 | 5,248 | (565) 474 | 89 | 6,287 | 5,337 | (950) | |
Average Invested Capital (AIC) | 6,022 | 5,530 | (492) 474 | 282 | 6,497 | 5,812 | (685) | |
ROIC = NOPAT(12-month rolling) ÷ AIC | 6.26% | 6.48% | 0.22 ppt | 4.83% | 6.07% | 1.24 ppt | ||
Refer to Glossary slides 29 and 30 for definitions of key terms. 28
Glossary
TERM DEFINITION
1H Six months ended/ending 30 June of the relevant financial year.
2H Six months ended/ending 31 December of the relevant financial year.
ACMA Australian Communications and Media Authority.
AMPU Average Margin per User. Not adjusted for inclusion of fibre access arrangements as these are not allocated to the product level for the reported periods.
ARPU Average revenue per user. Total ARPU includes data SIMs and excludes MVNOs. Postpaid ARPU excludes data SIMs. Prepaid ARPU includes Prepaid data SIMs.
Capex Capital expenditure.
Capex (additions basis) Capex (additions basis) means total additions to property, plant and equipment (ex asset SWAP accounting related additions) and intangibles (ex spectrum) per the financial statements.
Capex (cash basis) Capex (cash basis) means additions basis capex adjusted for movements in capex creditors in the period.
Continuing operations Retained business as defined under AASB5, excluding discontinued operations.
Digital First Services offered primarily or exclusively over digital platforms (online or via apps) and paid for in advance via monthly subscription.
Discontinued operations Parts of the business sold during the period.
EBITDA Earnings Before Interest Tax Depreciation and Amortisation.
EBITDA guidance basis EBITDA guidance basis is subject to no material change in operating conditions and excludes any impact of material one-offs such as transaction costs, restructuring, mergers and acquisitions, disposals, impairments, and such other items as determined by the Board and management.
eJV eJV is a joint venture between TPG Telecom and Optus for the sharing of passive mobile network tower and rooftop assets.
EPS underlying Calculated as Underlying NPATA, divided by weighted number of shares on issue.
FWA Fixed Wireless Access.
FY Financial year ended/ending 31 December of the relevant financial year.
Gross Margin Earnings after cost of telecommunication services before operating expenses.
Group The Company and entities controlled by the Company (its subsidiaries).
Guidance basis
Guidance is subject to no material change in operating conditions and excludes any material one-off impact arising from events such as transactions, redundancy restructuring, mergers and acquisitions, disposals, impairments and any other items as determined by the Board and management. 2025 Guidance basis includes impact of Pro Forma adjustments.
Material one-offs Impacts arising from events such as transactions, redundancy, restructuring, mergers and acquisitions, disposals, impairments and any other items as determined by the Board and management. Exclude such impacts arising from the Vocus Transaction, which are already excluded through discontinued operations.
29
Glossary
TERM DEFINITION
Mobile Service Revenue Includes Mobile Postpaid, Mobile Prepaid and Wholesale products, including MVNO and Push Text services.
MOCN Multi-operator core network sharing arrangement.
MVNO Mobile virtual network operator.
NPAT Net Profit After Tax is the total revenue minus all expenses and tax.
NPATA Net Profit After Tax, adjusted to exclude the tax-effected impact of customer base amortisation and other material one-offs determined by the Board and management.
NPS Net Promoter Score.
Underlying NPATA Calculated as NPATA, adjusted to add back impairments and material one-offs.
NOPAT Net operating profit after tax but before finance expense.
OFCF
Operating Free Cash Flow, calculated as cash flows from operating activities less capital expenditure (excluding spectrum payments), lease payments and cash tax paid.
Opex Operating expense.
PCP Prior corresponding period.
Postpaid Mobile services generally including significant service additions and paid for in arrears via a monthly billing cycle.
PPE Property, plant and equipment.
Prepaid Mobile services generally excluding service additions and paid for in advance.
Pro Forma Pro Forma: continuing operations results adjusted as if new commercial arrangements arising from the Vocus Transaction (TAWFA and Vision WBA) had been in place for the entire period.
Return on Invested Capital (ROIC) NOPAT adjusted to remove customer base amortisation expense and material one-offs (subject to discretion of the Board), divided by average invested capital excluding goodwill, brand and customer base intangibles.
RoU Right of use.
Service Margin Service Revenue and Other income less Cost of provision of telco services.
Service Revenue Excludes revenue from handsets, accessories and other hardware products. For Mobile, includes data SIMs. For Fixed Broadband, includes voice products.
SIO Services in Operation.
Spectrum Radio frequency spectrum is where radio waves are transmitted and received.
TAWFA Transmission and Wholesale Fibre Access Agreement between TPG and Vocus.
Vision WBA Vision Wholesale Business Agreement.
Total Shareholder Return Share price appreciation, dividends and other capital returns, assuming all dividends and capital returns are reinvested in TPG Telecom shares.
30
Disclaimer
The information in this presentation and any oral presentation accompanying it about TPG Telecom and its activities is current as at 21 August 2026 and is in summary form and is not necessarily complete. It should be read together with TPG Telecom's Appendix 4D and 2026 Half-Year Report and other announcements lodged with the Australian Securities Exchange.
Future performance and forward-looking statements
Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.
An investment in TPG Telecom shares is subject to investment and other known and unknown risks, some of which are beyond the control of the group, including possible delays in repayment and loss of income and principal invested. TPG Telecom does not guarantee any particular rate of return or the performance of the group nor does it guarantee the repayment of capital from TPG Telecom or any particular tax treatment.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this Presentation. To the maximum extent permitted by law, none of TPG Telecom, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this Presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this Presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are based on assumptions (including those set out in this presentation) and by their nature subject to significant uncertainties and contingencies.
Past performance
Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.
Not financial product advice
This Presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire TPG Telecom shares and has been prepared without taking into account the objectives, financial situation or needs of any individuals. Before making any investment decision, investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. TPG Telecom is not licensed to provide financial product advice in respect of TPG Telecom shares. Cooling off rights do not apply to the acquisition of TPG Telecom shares.
Not an offer
This Presentation is not, and should not be considered, an offer or an invitation to acquire TPG Telecom shares or any other financial products.
International Financial Reporting Standards (IFRS)
This presentation includes certain non-IFRS financial measures. These non-IFRS financial measures are used by management to assess the performance of TPG's business and make decisions on allocation of resources. Further information regarding the non-IFRS financial measures and other key terms used in this presentation are included in the glossary on slides 29 and 30. Non-IFRS measures have not been subject to audit or review.
Factors that may affect forward-looking statements include legal and regulatory changes or actions; technological changes; changes in customer expectations and sentiment, economic and geopolitical factors including global market conditions, demand and availability of highly skilled people; and risks, including physical, technology and environmental risks.
Investor relations contact
Paul Hutton
paul.hutton@tpgtelecom.com.au
+61 416 250 847
Media contact
Mitchell Bingemann
mitchell.bingemann@tpgtelecom.com.au
+61 493 733 904
31