Goldman Sachs Conference - asx.com.au · Goldman Sachs Conference – May 2014 Uniquely positioned...

Goldman Sachs Conference

22 May 2014 1

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Goldman Sachs Conference – May 2014

iiNet ASX200

Delivering growth in shareholder returns

BoB – Internet and phone in one.

Launches Mobile services

Launches Fetch TV services

First ISP to offer NBN services

BoB2

Launches Business

Cloud

Launches 4G services

fetch tv upgraded

Call Packs Joins ASX 200

2

2

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Uniquely positioned for further growth

3

• Focus on customer service and customer experience – low churn and high engagement

• Organic growth – effective marketing and increased brand awareness

• NBN – a key growth opportunity to extend our reach

• Business – now 20% of revenue with attractive revenue growth opportunity

• Successful acquisitions – efficiency gains and ongoing simplification

• Improving margins and strong financial performance

• Deeply experienced and stable Executive team For

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0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0%

10%

20%

30%

40%

50%

60%

70%

Jan-

12

Ma

r-1

2

Ma

y-1

2

Jul-

12

Se

p-1

2

No

v-1

2

Jan-

13

Ma

r-1

3

Ma

y-1

3

Jul-

13

Sep-

13

No

v-1

3

Jan-

14

Mar

-14

NPS Churn

Service – market leading NPS and churn

4

NPS vs Churn

Excludes Adam Internet & TransACT

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Goldman Sachs Conference – May 2014 5

Return to net organic growth F

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Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

6

+40% increase in broadband

sales

Sales Baseline

Local NBN Marketing

Life Upgraded

The Block

Free Yourself

Hawthorn Sponsorship

Call Packs

Internode Klingon

Sydney Sixers Sponsorship

National Rebranding Calls to Action

Continuous Brand Awareness

Effective sales growth via focused marketing

iiNet TV with Fetch

Hawthorn Sponsorship

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Awesome execution, clarity of messages - deliver sales F

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Increasing market share through the NBN

8

>50% of customers who sign up with iiNet for NBN services are new customers

New market opens up for iiNet:

Incumbent has >70% market share in the regional market of ~1.5m premises

The HFC network coverage of ~2.7m premises will be open to more effective competition

NBN rollout creates a level playing field for iiNet to compete on – all customers have the same speed decisions – now based on product, price & customer service

What does the opportunity look like for iiNet Our performance to date

Over 36,000 customers

25% market share in greenfield areas 20% market share in brownfield areas

75% fibre, 19% satellite and 6% wireless

70% of customers buying higher speeds than 12 mbps entry level product

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Continued growth in Business revenues

FY14 run rate of >$200m

Small office/ Home office

(Spend < $500 per month)

Small & Medium Enterprise,

Corporate & Government

(Spend > $500 per month)

Other (Wholesale, Hosting & Domains)

Business revenue up to 20% of Group revenue

Organic growth of 5% per annum

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Capturing market potential in Business market F

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Delivering ongoing simplification and efficiency

Brand Network Billing & Services

Corporate Support

Integration status

Acquisition integration continues to deliver simplified product and system portfolio

Current focus on billing, product and services integration across TransACT and Adam with Internode to follow

Delivering improved operating capability and efficiency

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Continuing to improve margins

* Per underlying results in Appendix 4D

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Strong performance across key financial metrics

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* Per underlying results in Appendix 4D

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Continued growth in dividends

14

3.05.0 6.0

8.0 9.06.0

7.08.0

11.0

FY10 FY11 FY12 FY13 FY14

Dividends (cents per share)

Final Interim

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In summary

• Customer service excellence delivering market leading churn and high customer engagement

• Driving organic growth through effective marketing and increased brand awareness

• The NBN and Business provide significant opportunities to expand market share further

• Expanding our products per customer to improve churn and drive new revenues

• Improving margins and delivering strong performance across key financial metrics

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iinet.net.au

DISCLAIMER Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect iiNet Limited current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside the control of iiNet Limited. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from iiNet Limited current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained herein with caution.

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Goldman Sachs Conference - asx.com.au · Goldman Sachs Conference – May 2014 Uniquely positioned...

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