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TELSTRA CORPORATION LIMITED. (TLS)

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TELSTRA CORPORATION LIMITED. (TLS) Events

Company (Stock Code)	Date/Time	Event	Timezone: Australia/NSW
TELSTRA CORPORATION LIMITED. (TLS)	Wed, 13 Aug 2008 09:15AM	TLS - Full Year Results Announcement - Mr Sol Trujillo, CEO
TELSTRA CORPORATION LIMITED. (TLS)	Fri, 6 Oct 2006 08:30AM	TLS - Investor Briefing - Mr Sol Trujillo, CEO
TELSTRA CORPORATION LIMITED. (TLS)	Thu, 9 Apr 2009	Date Payable
TELSTRA CORPORATION LIMITED. (TLS)	Fri, 13 Mar 2009	Record Date
TELSTRA CORPORATION LIMITED. (TLS)	Fri, 6 Mar 2009	Ex Div Date
TELSTRA CORPORATION LIMITED. (TLS)	Wed, 25 Feb 2009 11:00PM	Interim Results
TELSTRA CORPORATION LIMITED. (TLS)	Fri, 21 Nov 2008 08:00AM 08:00AM Australia/Victoria	Annual General Meeting John Batman Theatre, Melbourne Convention Centre, Corner Spencer and Flinders Streets, Melbourne, VIC
TELSTRA CORPORATION LIMITED. (TLS)	Mon, 13 Oct 2008 11:00PM	Full Year Results
TELSTRA CORPORATION LIMITED. (TLS)	Fri, 26 Sep 2008	Date Payable
TELSTRA CORPORATION LIMITED. (TLS)	Fri, 29 Aug 2008	Record Date
TELSTRA CORPORATION LIMITED. (TLS)	Mon, 25 Aug 2008	Ex Div Date
TELSTRA CORPORATION LIMITED. (TLS)	Fri, 4 Apr 2008	Date Payable
TELSTRA CORPORATION LIMITED. (TLS)	Thu, 6 Mar 2008 11:00PM	Record Date
TELSTRA CORPORATION LIMITED. (TLS)	Sun, 2 Mar 2008 11:00PM	Ex Div Date
TELSTRA CORPORATION LIMITED. (TLS)	Wed, 20 Feb 2008 11:00PM	Interim Results
TELSTRA CORPORATION LIMITED. (TLS)	Wed, 7 Nov 2007 08:00AM	Annual General Meeting Darling Harbour Convention Centre, Sydney, NSW, 2000
TELSTRA CORPORATION LIMITED. (TLS)	Fri, 21 Sep 2007	Date Payable
TELSTRA CORPORATION LIMITED. (TLS)	Fri, 24 Aug 2007	Record Date
TELSTRA CORPORATION LIMITED. (TLS)	Mon, 20 Aug 2007	Ex Div Date
TELSTRA CORPORATION LIMITED. (TLS)	Thu, 9 Aug 2007	Full Year Results
TELSTRA CORPORATION LIMITED. (TLS)	Fri, 30 Mar 2007	Date Payable
TELSTRA CORPORATION LIMITED. (TLS)	Thu, 1 Mar 2007 11:00PM	Record Date
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TELSTRA CORPORATION LIMITED. (TLS)

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PRESENTATION BY SOL TRUJILLO, CHIEF EXECUTIVE OFFICER OF TELSTRA CORPORATION LIMITED (TLS)

“Full Year Results Announcement”

http://www.brr.com.au/event/49365

 

WEDNESDAY, AUGUST 13, 2008, 9:15 AM.

 

      Moderator  Good morning, everyone. My name is Ben Spincer, Director of Investor Relations here at Telstra. I would like to welcome you to the results for the

10                    fiscal year 2008. I would like to welcome those joining us at our new Executive Briefing Centre in Melbourne on the webcast and also on conference link. In a moment, I will hand over to Sol Trujillo to run you through our results for the year.

 

15                    When Sol and John have spoken to you, we are going to be able to take questions both here in Sydney and in Melbourne. We will do that from the fixed microphones. At that point, I would ask you to come up and ask your questions. Please limit your questions to one only, if possible, so we can get through as many different questions as possible.

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                        Without further ado, I will hand over to Telstra’s Chief Executive, Mr. Sol Trujillo. Sol.

 

            TLS     Well thanks, Ben. I would like to welcome all of you here in Sydney and I

25                    would also like to welcome those that are joining us for the first time from our new Executive Briefing Centre in Melbourne.

 

                        Now today is about our results for the 2008 financial year, and basically I am pleased to report another strong set of results on or ahead of guidance. We

30                    have continued to execute on our strategy set back in November of 2005 as the transformation continues to redefine the entire business. All the way from mobiles to IP from consumer to business, the results are flowing now through our financial performance. I am also pleased to report that we have maintained the final ordinary dividends at 14 cents per share.

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                        Now this management team has established a reputation of delivering under commitment and clearly this year is no exception. Our value differentiation strategy is clearly working. We have grown both our top and bottom line with a retail sales revenue growing 5.9% and we beat the important earnings

40                    guidance metric with EBIT growing 9.1% on a guidance basis.

 

                        If you need further proof, our transformation execution is delivering on our promises. We generated $3.9 billion in free cash flow, an increase of $1 billion over last year, and we are confident of achieving our $6 billion to $7

45                    billion target in 2010. We are now generating more free cash flow than we are paying out as a dividend, which again was an important metric for us. This is the second consecutive year that we have grown our sales revenue by over $1 billion with sales revenue up 4.2%. We have enormous scale in this business and we have leverage and this management team knows how to leverage it.

 

                        We continue to win in the marketplace. Our value differentiation approach,

5                      along with our customer focus, helped deliver another strong set of business unit performances with retail sales revenue up 5.9%, driven by 3.6% growth in enterprise and government, their best performance since the competition began, so David, congratulations. In consumer, PSTN revenue grew by 0.5% and overall they grew revenues at 6.1%. David, congratulations. In business,

10                    mobile services revenue was up 19.5%. Overall revenues in our Telstra business were up 8.8%. Deena, congratulations. Sensis grew their sales revenue by 8.1% and again world-leading performance. Bruce, congratulations. Our broadband business, you will hear a little bit later.

 

15                    Obviously, we continue to lead the market here in Australia, but we also continue to lead the world in terms of both broadband growth as well as ARPU associated with the growth. Justin, congratulations. As we look at, again, our Telstra countrywide business and how we compete, not only in the cities but in the regions as well and stellar growth that is very strong, single

20                    digit growth at the upper end here. Geoff Booth, congratulations. On our wholesale side of the business, as we have been migrating our business across from what we would call the old regulatory model to a new regulatory model, where our customers are migrating from resold services and now we are moving some other services onto an unbundled platform. We continue to

25                    manage that well and I would congratulate Kate McKenzie on her results as well and the wholesale portion of our business. Clearly, on the operating side, what can I say, what Greg Winn and the whole team have done is terrific, the cost takeout. Since we have launched our initiatives in 2005, our field force productivity is up 40% and I will cover some of the service metrics as well.

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                        Again, Greg, Mick, the whole team, congratulations. Terrific year.

 

                        So the transformation benefits are now driving earnings growth with the operating expenses growing at just 3.5%, the lowest yearly expense growth in

35                    four years, as we focus on reducing our cost across the business and the benefits of our transformation continue to emerge.

 

                        Back at Investor Day in 2005, I talked about the fact that Australia was going to be our first priority, our second priority, our third priority. Well, I am pleased

40                    to report that we grew our domestic revenue by 4.8% in the year, which is well ahead of our global peers. So remember, as we think about our operations here in Australia, not just about beating those that we compete with here, but it is also about being best in class in the whole category globally. The numbers that you will see today continue to reflect how we rank

45                    at the top of our class around the world.

 

                        At the present time, we are seeing minimal impact from the prevailing macroeconomic environments on our domestic business, yet the cost of fuel and power has risen and the cost of debt has gone up, but overall, our customer-centric and value-differentiated approach is so far combating these factors in our business.

 

                        In retail broadband, we continue to defy our global peers by growing both our

5                      market share and ARPU and the actual volumes simultaneously. Our 3G penetration has now reached 47% of our mobile customer base. We have left most of our global peers behind, a ringing endorsement of our early and significant investments in 3G at our 850 MHz spectrum range.

 

10                    Our strategy in investment in mobiles is redefining the market both here in Australia and around the world. We are resetting global expectations. John will discuss our new guidance in more detail, but I just want to highlight a couple of the most important points with all of you now.

 

15                    For 2009, we expect continued robust growth at the top line coupled with further EBITDA margin expansion. In 2010, we have again raised our long-term targets for revenue growth whilst maintaining our 46% to 48% EBITDA margin target in 2010.

 

20                    Driven by variable CAPEX associated with our revenue growth, we are raising our 2010 target with CAPEX to sales to around 14%. But our $6 billion to $7 billion free cash flow target in that year remains unchanged.

 

                        Central to our transformation and central to delivering an excellent customer

25                    experience is the IT transformation. For our migrated consumer customers, we have moved from managing their data across 74 billing products and ordering systems to now just now three. I am pleased to tell you today of the outstanding progress made by our IT transformation team. We have now migrated 3.3 million customers and 4.3 million services. To be quite frank, we

30                    did not achieve our ambitious target of 5 million customer migrations before the end of June, but more importantly, I now am probably more confident than ever about the cost takeout targets that we have associated with our business because we have migrated over 3 million customers. We will have our 5 million probably by the end of September, and when we do that, we now

35                    know that the code is absolutely right.

 

                        So the experiences that you have seen with other companies that have had to backtrack that have had to, in effect, step back from what they have launched in terms of billing systems changes, OSS, and other platforms, we

40                    do not have that as an issue. That is now essentially out of the way as we have migrated over 3 million customers and we will be moving to the five and to the seven before the end of the year, which is a good news as part of our stories here. Again, we will continue the migration not only of our customer, but later this month, we will begin the migration of our business customers.

45

                        So let me be clear. The code is deployed and running at scale and this has all been achieved without breaking what I would call our central commitment that there should be no interruption to either customers or the wider business. We have seen no increase in complaint volumes and all billing accuracy and revenue assurance metrics are equal between the new and the legacy systems that we have in our business.

 

                        To some of the naysayers out there, let me again remind you of the scale of

5                      what we are looking at. Because again, we have emphasized this all along, we are going to do what is right in the process as we go forward.

 

                        The breadth and speed of the transformation are unparalleled. We are the only what I would call quad play across the four pillars of PSTN, broadband,

10                    wireless and Foxtel. We have simultaneously built or refurbished all data centre infrastructure and we have 100% new applications in place in addition to what we have, I guess, previously talked about.

 

                        Half of our employee base is involved in all internal and external challenge as

15                    well. We have processed hundreds of thousands of orders and millions of bills to date and processed more than 4 million call records per day on this new set of capabilities.

 

                        We have more than 15 million lines of code in the new environment, including

20                    5 million in customized software for migration and Medallion mediation purposes only. This supports old to new and new to old integration and essentially will disappear; it goes away when we finish TR2 so that we will have completed the mass market portion of our transformation.

 

25                    One thousand sixteen OSS and BSS systems have now been decommissioned since 2005, including 365 IT systems. We have now trained more than 12,600 of our staff on the new systems.

 

                        In case anyone could be in any doubt, let me again remind you of all the

30                    complexity of what we are undertaking in the legacy system and why we are being so meticulous about what we do as we migrate our customers.

 

                        We had 2200 products. We had 236,000 product codes. We had 421,000 pricing charge codes or packages as you might call them in an external

35                    context. We had 10,000 discount plans. So when you think about that in a context of permutations that we have to manage as we think about ultimately getting a customer migrated and being able to see the services actually work as we migrate them and to see that the charging for the services that we provide actually show up on a bill and to make sure that we can actually

40                    collect it and then to make sure that we can monitor and serve it, that is what this work is all about as we think about the meticulousness by which Greg Winn and Tom Lamming and John McInerney and the whole team have been working.

 

45                    So we have run 90,000 test cases to cover a vast majority of the kinds of permutations that might be of issue as you have seen with other companies that have had sales conversions happen. Now this has ensured us to the point that we are at today, where we all now have, as I mentioned before, the live customers, the migration having gone very smooth so far.

 

                        The time and care taken ensure that the new systems would work and then we could both bill and collect as I said a minute ago. As any informed observer would expect, we are doing it carefully, prudently and successfully,

5                      because the payoff to our customers and to the business will be huge. That is why when some of you will ask the question, does any of this affect our cost takeout? The answer is no. That is why our free cash flow stays the way it stays as part of our target, why EBITDA margins as we have said 46% to 48% do not change.

10

                        Our transformation is re-architecting the business, essentially from what I would call the broadband world, and today and over the last few weeks, you have clearly seen the difference between a Telstra who has architected their business for the broadband world and those that we compete with who have

15                    an architecture for the old narrowband world and are trying to be broadband in what they do.

 

                        We said we would build next-generation networks and IT systems and we have. Since the launch of the Next G network, mobile services revenue

20                    growth has accelerated from mid single digit to double-digit levels. Since the launch of the Next IP network, IP and data revenues now exceed legacy data services revenue. We have invested in transmissions and backhaul, which again, for those of us that know how to run the business, we understand an end-to-end experience not just the component pieces.

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                        We said that we would be broadband focused and we have. In the case of our retail broadband, our retail broadband market share and ARPU have both increased which has defined the trends around the world.

 

30                    Now let me be clear. At Telstra, we do not just talk about SIOs. We really focus on margin share and revenue share because those are the ultimate metrics that show up for our shareholder, and so we focus on all of the above.

 

                        Once again, we have outgrown our nearest fixed broadband competitor by 4x

35                    -- by 4x -- nothing has changed. We said we would integrate and we have.

 

                        Sensis, BigPond and Foxtel content is now available on mobile and more is coming.

 

40                    We said we would focus on the customer and we have. We created a dedicated small, medium enterprise unit that is now called Telstra Business and segmented our business around customer needs. You can see in the results that I mentioned a little bit ago, we have outgrown the market and we have created dramatic growth in this part of our business.

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                        We said we would focus on delivering value to customers and we are. Our multi-product holdings have increased and customer PSTN over the last couple of years has had as we look at the churn rate on customer PSTN. You will not find that anywhere else in the world.

 

                        We said we would revitalize our retail experience for customers and we are. We opened recently five new world-class T-Life stores this year, and a further 88 new or refreshed stores are planned to open in fiscal 2009. The ARPU per

5                      customer that are now travelling through those stores is about 40% plus higher than in our traditional store.

 

                        So the strategy of Telstra is working at all levels.

 

10                    While there is a fascination at present from some quarters on the IT transformation, it is important to remember the overall transformation is much more than just IT. It is more than just building new networks. It is about building what I have called a media communications’ company of the future.

 

15                    The transformation is a bold strategy and we are delivering results. We are resetting and redefining global expectations as to what is possible. We have already made significant progress over the past three years and all of this has been the objective associated with being a global leader. It is a journey, and let me just say, we are not even done yet. We are not even close to where I

20                    think we can be as a company in terms of this whole media communications space.

 

                        Our investments in the transformation have allowed us to redefine the service experience of our customers across a wide range of metrics. This is very

25                    important because as we track our customers every year, starting back in the old five-time frame to today, all of our customer value attributes metrics have gone up, and they have gone up relative to our competitors in a big-time way.

 

                        As we look at those reports that we file with the regulators and the

30                    government agencies, but also as we look at it in terms of how we think about managing volumes in the business, our network trouble reports have fallen 35% since 2005, and that is counting in some of the flooding and some of the natural disasters that we have had here in Australia, including the flooding up in Queensland and Northern Territories earlier this year.

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                        ADSL held orders are now down from more than 5000 in 2006 to around 100 today even though our broadband volumes have increased. We continue to meet 95% of our customer commitments.

 

40                    To put this in context, we fulfil more than 2 million customer commitments per month and we are now meeting our wideband customer delivery dates 95% of the time, a 14 percentage point improvement since November of 2005.

 

                        So while all this has been going on in terms of refining, rebuilding, changing

45                    our platforms, etc., etc., and introducing new products and services, service delivered to our customers has gone up. Reliability of networks has gone up. The customers are giving us that feedback, both in terms of when we survey them, but more importantly, when they buy, which is to me the ultimate metric.

 

                        Unlike perhaps one of our competitors and others of our competitors who have been plagued with some of the problems on availability and other issues, we are meeting all of our standards and our availabilities run at very

5                      high levels. Our Next G network is running at near 100% availability. Our broadband networks at four 9’s, PSTN at five 9’s, and our transmission essentially at 100%.

 

                        We have invested in our networks as we think about over the last three years.

10                    Our mobile’s performance continues to lead the world with mobile services revenue growing 12.3% and total mobile revenues grew 12.7%.

 

                        So again, I am just a business person, but as I look at it relative to our largest competitor, we only outgrew them 4:1 in terms of services revenue. So I think

15                    that our team is doing relatively well.

 

                        The catalyst for this growth has been the superior speed, superior coverage, superior quality, superior capacity, offered by our Next G network.

 

20                    True differentiation exists and the numbers absolutely support our 3G strategy.

 

                        During the year, 3G revenue overtook 2G revenue, and now accounts for more than half of mobile services revenue.

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                        We have 4.4 million 3G subscribers at the end of June, up 117% year-on-year. 3G mobile penetration has more than doubled since June 2007 to 47% and 3G postpaid ARPU was up 5.3% at $77.51.

 

30                    Mobile data revenue as a percentage of mobile services revenue has almost doubled since June of 2005 to more than 30% this financial year, and during the year, non-SMS data revenue overtook SMS.

 

                        The main driver of mobile growth, data growth, has been the ongoing strength

35                    in wireless broadband and this is despite the sceptics who said we could not maintain our wireless broadband momentum. We continue to add 20,000 subscribers per month.  Again, value does matter.

 

                        We have built half billion dollar business in just 2 years and we now have

40                    588,000 subscribers generating ARPU of around $90 a month, still.

 

                        But mobile data is more than just wireless broadband. Other data revenue grew 60% in the second half from higher email, content, MMS, browsing revenues. Our wireless email penetration continues to increase, and this will

45                    be boosted further by the 3G Blackberry Bold and other new smart phones such as the HTC Diamond, Samsung 617, Sony Ericsson X1, and Palm Trio Pro. We are continuing to lead the market, and by the end of the year, we will have broken the speed barrier again by offering peak network downlink speeds of 21 megabits per second and uplink speeds of 5.76 megabits per second -- the first operator in the world to do so.

 

                        So the pressure continues, the innovation continues and a differentiation will

5                      continue where every Australian in this country will understand when they think about networks, when they think about services in the mobile space along with everything else, Next G is the best, will be the best and will continue to be as we go forward.

 

10                    Our IT access revenues continue to grow, highlighting the success of our Next IP network. Our IP and data revenue succeeded legacy data revenues for the first time in the second half of fiscal 2008. This is a significant milestone which illustrates how we have redefined the business to focus again on IP.

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                        Contrary to conventional thinking, we have grown the portfolio through the migration of existing customers, driving higher ARPUs by providing the value proposition, again across bandwidth, speed, scalability, security, applications, reliability, and services and did I say reliability? In case I did not say it loud

20                    enough, reliability and security are very important to our customers.

 

                        Our government business is growing strongly on the back of our differentiation, particularly with the integration of the Next IP and Next G networks.

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                        While our IP revenues continue to grow strongly, our PSTN revenue decline continued to slow, decreasing 3.2% in the year compared with the 4.4% decline in 2007 as we win at the retail access line level.

 

30                    Retail PSTN access lines grew for the 14th consecutive month in June. Our consumer PSTN revenue grew by 0.5%, as the strategy of segmentation and subscription pricing plans continue to deliver the results that we were looking for.

 

35                    Again, our PSTN performance is unmatched by our global peer group.

 

                        We expect PSTN revenue to continue to decline as mobiles and broadband continue to grow. This was highlighted in July when total mobile revenue exceeded PSTN revenue for the first time in the history of this company.

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                        We are also proud of our broadband business. We grew our market share by a further 2 percentage points to 49% and ARPU increased 2.9% to $53.

 

                        I cannot say this frequently enough. For those of you that pay attention to

45                    other companies around the world, there are no other companies that are growing market share, that are growing ARPU in this space. It does not happen, but it is happening here at Telstra.

 

                        In contrast to 2005, our broadband growth is now significantly greater than the decline in PSTN in absolute dollar terms. Our strategy of simple, value-based offers is working as the number of customers singing up to higher-value Liberty plans grows. Our Liberty plans give our customers high data

5                      allowances with built certainty, and as a result, churn is reduced to the world’s best practice at under 15%.

 

                        At the end of June 2008, more than two-thirds of our fixed broadband base were on a Liberty plan, and in Quarter 4, 75% of fixed broadband sales were

10                    on Liberty plans.

 

                        Our emerging domestic content revenues which includes Sensis, Internet and mobile value-added services are expected to exceed $500 million in five years. The early trends are encouraging. Mobile video streams grew 137%

15                    year-on-year. Online search revenues more than doubled. BigPond’s web tab unique views growing 6% month-on-month. Foxtel completes our suite of media communications assets and the business had strong momentum with revenues up 17%, EBITDA up 48% and free cash flow up 43%.

 

20                    During the year, Foxtel subscribers passed the 1.5-million mark. ARPU increased to almost $85. Churn reduced to 13.3% in the second half. Also in June, Foxtel introduced high definition, and almost 40,000 subscribers have already signed up to the service.

 

25                    Today, I am pleased to announce the launch of our new BigPond music service. BigPond is changing the game in music just as we did in other categories. We will offer tracks from all major record labels in a format that can be transferred between most music players including the iPod, Sony Walkman, Xbox, PS3 and home medias centres.

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                        From today, Australians have a real choice between our competitor’s world where consumers have to juggle devices and formats and often find their music locked onto one device versus BigPond’s open world of convenience and simplicity.

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                        BigPond’s music will be easier to find, simpler to download and cheaper to buy, and for BigPond customers, it will be free of bandwidth customers. I would just say to all of you as you leave today, just go through the store on the way out and you will see how it works because it is pretty cool.

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                        Our leadership and innovation extends to the competitive advantage we have built around speed, coverage, content, reliability, and services as we continue to consolidate our position. The combined reach of all its sites gives Telstra one of the largest online audiences in Australia, with the highest share of the

45                    online advertising markets. As a cornerstone of our media communications strategy, we were also outgrowing the market in the five major categories of sports, news, games, music, and movies.

 

                        Sensis is another one of our key drivers of our media communications strategy. The top line grew by more than 8% as the print business defied global trends and digital media revenues continued to grow at strong double-digit levels.

5

                        I do have to say with a big smile, the print business where many people had given up a few years ago and had relegated it to a no-growth and actually as you look around the world in virtually every company has been a negative growth category, we have a specialty team here led by Carol Johnson and

10                    some other folks working for Bruce that has done something that has defied the laws of gravity around the world. That is, again, our print directories revenue grew 5.4% for the year with the Yellow print revenues returning to growth and White Pages print revenue growing at double digits. Yellow and White Pages’ online directories grew by over 20% to exceed $200 million for

15                    the first time.

 

                        But Sensis is more than just print. Our digital businesses had strong double-digit growth. MediaSmart display advertising grew 41%, whereas satellite navigation 52% and our SouFun business in terms of unaudited US dollars

20                    grew 67%.

 

                        If you combine all of our digital revenues including online directories, you will see the digital media grew 32% to $426 million. In fact, digital media has grown from 7% to 20% of total revenue in three years. The result has been

25                    achieved through the Sensis transformation of improving usage, advertising ROI, systems, and processes.

 

                        For example, Yellow network usage grew 4.3% to over 10 million a month. In July, yellow.com.au usage grew 19% in one month after we opened up

30                    listings to various search engines.

 

                        We expect Sensis to achieve mid-single-digit revenue growth and to continue to further improve the revenue trends in the metro-print canvasses.

 

35                    Our presence in China continues to expand. It is the largest online market in the world now in terms of (inaudible) (0:33:18) and our combined sites in China attract more than 2 billion page views a month. SouFun serves 50% more pages each month than all traffic to ninemsn, Fairfax and News Digital combined. SouFun’s expansion is on track.

40

                        When we acquired SouFun, they had a presence in 45 cities. In two years, this has grown to 85 cities and we plan to expand by the end of this calendar year to 100 cities, each city having a minimum population of a million people.

 

45                    Our recent investments in the online auto and digital device markets placed Telstra in a strong position to build growth in the Chinese advertising sector. We are now number 1 in real estate and auto. To understand the scale of the China auto market, for instance, they sell more cars in two weeks than Australia sells in a year.

 

                        With the continued growth in China, we expect our China portfolio to deliver revenue growth in excess of 50% this year on a proforma basis. In five years, we expect our China businesses to grow at almost $1 billion a year in

5                      revenue and earn EBITDA margins between 30% and 40%.

 

                        For a moment, can I just compare Telstra’s Chinese businesses to another one that has gotten a lot of publicity, Alibaba, a Chinese online company with a market cap today of about $5 billion in today’s market and revenues

10                    forecasted around 500 million in 2008. This is a business forecast to have 20% EBITDA growth, which is a fraction of what Telstra’s Chinese assets are achieving. To me, this suggests that the market has not yet understood where we are going and what we have in our portfolio in terms of the investments in that region.

15

                        Finally, our transformation success is driving our strong financial performance and is redefining all aspects of the business. We are at or near the top of our global peer group across many of the key financial and operational measures. We are getting on with the job of removing the complexity, the silos, the

20                    duplication in infrastructure products, hundreds of platforms, IT billing systems, etc. We have confidence in the future and confidence in our strategy and this is reflected in our fiscal 2009 guidance and the raising of our long-term targets for revenue growth…

 

PRESENTATION CONCLUDED

 

 

 

 

Contact brr@brr.com.au for more information

 

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