Post on 23-Mar-2020
The contents of this document reflect NBN Co’s current position on the subject matter of this document. It is provided for information purposes
and is intended to be a guide only. The contents of this document should not be relied upon as representing NBN Co’s final position on the
subject matter, except where stated otherwise. Any views expressed by NBN Co in this document may change as a consequence of NBN Co
finalising formal technical specifications, or legislative, or policy and regulatory developments. Any dates provided are indicative only, are
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© NBN Co Limited 2015
NBN Co Half Year Results
26 February 2015
PUBLIC | © NBN Co 2015 3
Agenda
• Overview
• Financial results
• Operational highlights
• Questions
PUBLIC | © NBN Co 2015 4
Forward momentum
Serviceable premises
748,552
2X increase
Premises activated
322,391
2X increase
Telecommunications
revenues
$64m
3X increase
ARPU
$39
8% VLY
Telstra and
Optus agreements
signed
Progress towards
new rollout
approach
PUBLIC | © NBN Co 2015 5
Transition to new rollout approach
• Telstra and Optus DAs concluded
• MTM design rules published
• Initial FTTN and FTTB construction
• End user trials
• HFC equipment contract
• Long-term satellite approaching launch
PUBLIC | © NBN Co 2015 6
2020 goals
• Universal access to high-speed broadband
• More than 8 million premises
• $4 billion annual revenue
• Customer satisfaction
• Best place to work
PUBLIC | © NBN Co 2015 8
Summary results
PUBLIC | © NBN Co 2015 9
Telecommunications revenue
$m 31-Dec-13 31-Dec-14
CVC/NNI 5 18
Satellite AVC 6 6
Wireless AVC 1 4
Fibre AVC 10 36
Total 22 64
Half Year
22
64 Telecommunications Revenue by Quarter
$m
9
13
17
21
28
36
0
5
10
15
20
25
30
35
40
30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14
PUBLIC | © NBN Co 2015 10
Premises activated
130,759
166,642
210,628
266,984
322,391
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
31-Dec-13 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14
Cumulative Premises Activated by Quarter
End U
sers
Cumulative Premises
Activated31-Dec-13 31-Dec-14
Satellite 44,170 40,716
Wireless 6,512 27,792
Fibre 80,077 253,883
Total 130,759 322,391
ARPU 36$ 39$
As at
PUBLIC | © NBN Co 2015 11
Operating expense
$m 31-Dec-13 31-Dec-14
Other 90 102
IT & Software Costs 57 56
Telecom & Network Costs 164 226
Employee Expenses 189 178
Total 500 562
Half
500
562
0
100
200
300
400
500
600
31-Dec-13 31-Dec-14
$m
Operating Expenditure by Half
PUBLIC | © NBN Co 2015 12
Premises serviceable
Cumulative Premises Serviceable by Quarter
PUBLIC | © NBN Co 2015 13
Capital expenditure
$m 31-Dec-13 31-Dec-14
Common Capex 142 191
Transit 236 125
Satellite 287 175
Fixed Wireless 125 145
FTTx 398 797
Total 1,188 1,433
Half 1,188
1,433
0
200
400
600
800
1,000
1,200
1,400
1,600
31-Dec-13 31-Dec-14
FTTx Fixed Wireless
Satellite Transit
Common Capex
Capital Expenditure by Half
$m
PUBLIC | © NBN Co 2015 14
Capital expenditure
+ =
Assets
Under
Finance
Lease
+$3.6bn
Gifted
Assets
+$0.3bn
Other
+$0.1bn
1,366
1,103
1,169
705
2,712
Life to Date Capital Expenditure ($m) - $7.1bn
FTTx
Fixed Wireless
Satellite
Transit
Common Capex
1,393
4,512 1,169
719
3,257
Life to Date PP&E and Intangibles ($m) - $11.1bn
FTTx
Fixed Wireless
Satellite
Transit
Common Capex
Life to Date Capital Expenditure ($m) — $7.1bn
Life to Date PP&E and Intangibles ($m) — $11.1bn
PUBLIC | © NBN Co 2015 15
Cost per premise - Brownfields
4,359 4,316
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
30-Jun-14 31-Dec-14
Brownfields Cost Per Premise ($)
$ 30-Jun-14 31-Dec-14
LNDN 2,146 2,119
Customer Connect 1,457 1,460
Total Build CPP 3,602 3,579
LNDN Duct Lease 757 737
Total 4,359 4,316
LTD
PUBLIC | © NBN Co 2015 16
Cost per premise - Greenfields
3,104
2,780
0
500
1,000
1,500
2,000
2,500
3,000
3,500
30-Jun-14 31-Dec-14
Greenfields Cost Per Premise ($)
$ 30-Jun-14 31-Dec-14
Design & Build 1,706 1,616
TFAN / TTFN 1,398 1,165
Total 3,104 2,780
LTD
PUBLIC | © NBN Co 2015 17
Cost per premise – Fixed Wireless
3,724 3,637
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
30-Jun-14 31-Dec-14
Fixed Wireless Cost Per Premise ($)
$ 30-Jun-14 31-Dec-14
Design & Build 3,073 2,996
Ground & Tower Lease 651 641
Total 3,724 3,637
LTD
PUBLIC | © NBN Co 2015 19
Retail service providers
PUBLIC | © NBN Co 2015 20
End user experience
H2 FY14
12/1
25/5
100/40
25/10
50/20
38%
38%
19%
Fixed Line Product Mix
Data Consumption
National Broadband Network
Fixed
Broadband
Mobile
Handset
67GB
52GB
83GB
628MB
1.79GB Mobile
Dongle
H1 FY15
2GB
Mobile
Handset
Mobile
Dongle
Fixed
Broadband
62GB 77GB
45GB
450MB
National Broadband Network
PUBLIC | © NBN Co 2015 21
Fibre to the premises
• Stabilised rollout
• Weekly output doubles YoY
• Reduction in SC0s
• Increase in premises with lead-ins
PUBLIC | © NBN Co 2015 22
Fixed wireless
• Premises serviceable doubled
• Active end users tripled
• 217 sites acquired during the period
• 157 base stations ready for service
• Plans for additional, higher speed tier
PUBLIC | © NBN Co 2015 23
Long term satellite
• First satellite on track for 2015 launch
• Product release 2016
• Successful testing
• Construction of all 10 ground
stations complete
• Contract with Ericsson for Fixed Wireless
and Satellite Network Operations
commences in May
PUBLIC | © NBN Co 2015 24
Fibre to the node
• Construction underway in all
11 build trial locations
• Covers 200,000+ homes in
Queensland and NSW
• Q1 – FY16 product release
• End-user trial ongoing in
Umina NSW
Source: Alcatel-Lucent
PUBLIC | © NBN Co 2015 25
Fibre to the building
• Design and construction underway for
6,000 apartments in NSW, VIC and ACT
• Targeting 2,000 premises RFS this quarter
• Product release imminent
PUBLIC | © NBN Co 2015 26
Hybrid-fibre coaxial
• Equipment contract with ARRIS
• Upgrade path to gigabit speeds
• Initial HFC pilot by end of calendar year
• 2016 commercial launch
Source: Arris
PUBLIC | © NBN Co 2015 27
Company culture
• Improved human resources systems
and processes
• Employees aligned around strategic
direction
• BPE embedded across the company
PUBLIC | © NBN Co 2015 28
Tracking to targets
c. $150m
$22m
c. $150m
$2m
$22m
c. 1m
748k
$64m
130k
322k
379k
$22m
c. $150m
Premises serviceable Premises activated Telco revenue
c. 480k
PUBLIC | © NBN Co 2015 30
Disclaimer Half year financial statements for the period ended 31 December 2014 consist of the reviewed statement of comprehensive income,
balance sheet, statement of cash flows and for the NBN Co Consolidated Group, comprising NBN Co Limited, NBN Tasmania Limited
and NBN Co Spectrum Pty Ltd. While every effort is made to provide accurate and complete information, NBN Co does not warrant
that the information in this presentation is free from errors or omissions or is suitable for its intended use. Subject to any terms implied
by law which cannot be excluded, NBN Co accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect)
incurred by you as a result of any error, omission or misrepresentation in information in this presentation. All information in this
presentation is subject to change without notice.
This presentation may contain forward looking statements that are based on NBN Co’s best considered professional assessment of
present economic and operating conditions, present Australian Government policy and a number of assumptions regarding future
events and actions which, at the date of this presentation, are expected to take place. Such forward looking statements are not
guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors,
many of which are beyond NBN Co’s control.
While such forward looking statements are based on NBN Co’s best considered professional assessment, NBN Co’s officers do not
give any assurance to any third party that the results, performance or achievements expressed or implied by such forward looking
statements will actually occur and such statements should not be relied on or considered to be a representation of what will happen
by any third party.
Other than as required by NBN Co's reporting obligations to the Commonwealth, NBN Co and its officers have no obligation to update
these forward looking statements based on circumstances, developments or events occurring after the date of this presentation.