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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
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Uniquely positioned for further growth
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• 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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2.0%
2.5%
3.0%
0%
10%
20%
30%
40%
50%
60%
70%
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Jul-
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Mar
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NPS Churn
Service – market leading NPS and churn
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NPS vs Churn
Excludes Adam Internet & TransACT
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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
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+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
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>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
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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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