TPG Telecom Limited (TPG) Earnings Call Transcript & Summary

Great to have you all here. It's actually almost 4 years to the day since we last did this in this room. Many of you were here with us then. It's been quite a busy few years since then, hence, time to give a bit of an update on where we are now. But thank you. And without further ado, I'll hand over to Trent Czinner. Cheers.

Thank you, James. Good morning, everyone. I'm Trent Czinner, TPG Telecom's Group Executive of Legal and External Affairs and Company Secretary. We appreciate you joining us today, whether in person or online. It's important to acknowledge the traditional custodians of the land on which we are meeting today, the Gadigal people of the Eora Nation. We also acknowledge the traditional custodians of country throughout Australia and the lands on which we and our communities live, work and connect and pay our respects to elders past and present. I would like to quickly talk about our TPG Telecom's Reconciliation Plan or RAP. We launched our first RAP in 2021, and we've just concluded our second Innovate RAP. Over the last 5 years, we've embedded reconciliation more deeply across our business through strengthening relationships, engaging with indigenous businesses, educating our employees and expanding opportunities for indigenous people. Of the more than 100 goals we achieved under our latest RAP, I just wanted to give 2 great examples where we have worked with indigenous communities and have made a real difference. First, we partnered with the Aurora Education Foundation by supporting its indigenous mentors program, which develops indigenous leaders to work with students. As part of that, we hosted a Professional Development Day for 46 mentors at our Barangaroo office. Our managers led sessions to build strategic thinking, influencing skills and to strengthen the confidence of those mentors as they go out to work with Aboriginal and Torres Strait Islander students. Also, through the TPG Telecom Foundation, we have sponsored a 3-year initiative at Kurri Kurri High School to strengthen cultural identity and well-being for indigenous girls at the school. That program now has 80% attendance of female students. We know from our people at TPG Telecom that our reconciliation efforts are important to them and gives them a way to engage on this important issue. And I'm very proud of the work we're doing. I would like to thank the indigenous elders and partners who have guided us along the way. Before we get into today's agenda, it's worth reflecting on TPG's purpose to build meaningful relationships and support vibrant connected communities. It drives our strategic vision and the operating choices we make. Australia relies on connectivity. To our customers, both mobile and fixed broadband are essential services that connect them, and they want simplicity, digital-first experiences and genuine value. Our purpose also translates directly into shareholder outcomes. We -- when we make connectivity easier and more trusted for our customers, we reduce churn, lower our cost to serve and grow lifetime value. To enable us to deliver that promise and sustainable returns, we're building a simpler, more trusted and capital disciplined TPG Telecom. Customers are at the center of our purpose and our focus every day. They are also central to today's presentations. Today, we have presentations on strategy, how we're responding to customer needs, brand, finance and technology. Our entire executive leadership team is presenting along with our Chief Marketing Officer. Several other members of our senior management are also here to help answer your questions. Just a moment, Inaki will take you through what defines TPG Telecom's competitive mindset and strategic ambition. We will then have a short break to coincide with the open of the share market. After that, Jonathan, James, Beck and Vanessa will cover our go-to-market and customer experience approach. Later, John will cover the financials, and we'll close with an update from Giovanni on networks, technology and AI. We'll also stop the Q&A periodically. And for those of you with us in person, the team will be available for further conversation over lunch. I'll now invite Inaki to come up.

Can everyone hear me? All right. Good morning, everyone. I think that it was only about 4 years that we met here. A lot of faces new, a lot of faces from them, a lot of things have happened. So I think today, we have a good day to look into where TPG is at. And also, you have the privilege to hear from the executive team of the company who are the people that really do the work here. So let me start first we titled this spirit of the challenger. And this is a bit the way that we see us in the market. We think that challenger is what define us in the way that we are, but also in the way that we go into the market. This is an industry that has been traditionally dominated by incumbency. And in that context, we believe that we have punched above our weight. And that in terms of how we are behaving ourselves in the market because we are leaner, we are faster, and we are also more focused into what customers really want. But it's also an industry where we have led in terms of the shape of the industry, infrastructure sharing, looking at different, more efficient ownership models that I think have shaped a lot into where the industry is going. And I think that we are very proud to be leading in that way and getting TPG to be a stronger company. I'll talk a little bit about that brand and go-to-market. And I also want to touch a little bit on spectrum and trading update. I'm not discovering anything new because all this is lots, so I think that you guys have gone through the presentation. So I'll try to make it as less boring as possible. And then later on, you guys can ask some questions. The first thing is to take a review of the strategy. We've been sharing this with all of you for the last couple of years. Strategy pretty much remains untouched, even though it evolves. And probably the most important part now is after a period of significant transformation and transactions, a lot of internally focused activity, we really wanted to elevate the building customer trust, and we do that through our fifth pillar, which is embody customer first people always. It is a way to elevate the fact that having this customer-first mentality on every decision that we make. This is an essential service, a critical service. 90% of customers in Australia prefer to have an electrical power outage than a mobile outage. And that means that the expectations of customers are growing significantly. And in that context, I think that it's important that we reemphasize that on our strategy. The rest of the strategy pretty much remains the same, [Foreign Language]. The invigorate our brands, and we'll have a lot to talk about that today, make it easier for customers and ultimately become faster, simpler and stronger. All of this to build a company that is more focused, that is good, smarter in the way that we allocate our capital, a company that has financial efficiency that is concentrated in growing our margins, generating good cash flows and ultimately create sustainably growing returns for our shareholders. All these strategic pillars have hundreds of KPIs. And I'm not going to put all of them here. They are our KPIs that we use to manage this. This is a fundamental part of the way we run the business, not just because it helps to manage performance, but also because it helps to keep the focus into what is important, what we do and what we don't do. There are a few examples here of the things that we are measuring as part of these metrics. And as I said before, this is really part of our day-to-day running of the business. This is a bit the story of the company so far, where we are today after I think 2025 was a big delivery year. We had the implementation of our double the network share agreement, which has made it been a transformational for our customers that overnight, we're able to double the coverage of the service. It was also the year when we completed our strategic fibre transaction. And we come out of that today in a business that is simpler, mobile-centric is a business that goes to market with 3 differentiated brands to reflect the reality of where we see the market, efficient in the way that we use our capital with a healthy balance sheet and definitely investment-grade financial position, but also with significant operational leverage given the continuous focus that we play on our cost. We are also now well placed to look at the evolution of the industry. I think that over the years, we'll see significant changes in the industry, and we think that we are very well placed to address those changes and definitely be part of that. Our shareholder value proposition is pretty simple. We are Australia-centric company delivering an essential service, critical and essential. We are also on the back of our network sharing arrangement, well placed for growth, and you see our results in '25 and this momentum that I will talk a little bit later on '26, something that continues with a very efficient capital structure on the back of the arrangements that we have done over the years, a very good outlook cash flow and ultimately, also given the simplicity of our dividend policy with predictable returns for shareholders. You have been following our reporting in the last years. This is our shareholder value proposition. This is the way that we've been reporting the performance of the company. And this is really for fiscal year '25, after the culmination of a lot of the work that we've been doing in the last 5 years, significantly good results. And this is something that now in the first 4 months of 2026, we continue to see in the company. I think that is important to see here is that when you look at '26, these trends continue. We -- I will talk a little bit about guidance, but we will reaffirm what we said in February. In terms of CapEx, we also will be in the same numbers. that we see in February, and we continue as we complete a lot of the investment cycle that was related to the 5G rollout, but also around the IT transformation that is tapering down, and we continue to see that and the benefits of that in the cash generation. OpEx as a percentage of service revenue and CapEx as a percentage of service revenue are key components of how we run the business. And ultimately, this will allow us to continue delivering good returns with an ambition medium term to have a return on capital investment that is over our weighted average cost of capital and to maintain that moving forward. I'm going to now talk a little bit about trading. Probably that was the first slide that many of you would have looked at this morning because this is an industry where people look a lot into trading. There are not really big surprises here. I think that is on the first 4 months, as I said, we see pretty much a continuation of what we saw on '25. In terms of mobile customers, and again, this is going to be numbers that we are forecasting for the first half. We expect something between 70,000 and 80,000 customers for the first half. Postpaid will remain mainly flat. That's the way that we see our performance. And that means that we are quite resilient in a market where postpaid -- and when I say postpaid, I'm talking about the traditional postpaid brands, not the reported postpaid, the Vodafones, the Telstra, the Optus, premium postpaid services. It is under a bit of pressure. I think there are a number of factors for that, cost of living, there are more customers looking for value brands. There's a bit of pressure as well on devices, and that's probably something that will remain. But in that context, we have seen good performance. Our digital-first brands continue to perform strongly. We'll have about 50,000 net adds on the first half there. On prepaid, we have gone backwards around 35,000. This is a consequence of 2 things that we have done there, one of them plan refreshes on prepaid. But probably the other one that has had more impact is the way that we are looking at traditional prepaid channels and trying to optimize and minimize our use of physical channels on prepaid. Physical channels are for a product like prepaid, not very efficient in terms of the economics, and they also drive significant rotational churn. So as we build on our digital channels, that's also something where we are managing our investments. And later, -- you can hear a little bit more from that from James and the team when we talk about our different brands. In terms of mobile ARPU, a lot of this is on the slide, but basically postpaid remains positive, more or less flat. Digital plans a bit higher and then prepaid also on the back of the timing of the planned refreshes will go to around 3%, 4%. A lot of this has to do more with timing. And at the end of the day, the way that we manage mobile margin is customer component, ARPU component, but all that goes through the different timings on when we are doing our plan refreshes, discounts, et cetera, et cetera. In terms of home broadband, we see performance improvement versus last year, although NBN continues to be extremely competitive. We've seen better performance in Q2, quite a lot of work around churn. Again, we can talk a little bit more about that. And then the other thing is that fixed wireless on the second part of the half is growing, and that has to do a lot with the changes that we implemented in our fixed wireless proposition on the 5G stand-alone core that basically expands our geographical coverage of that product, and therefore, this is again growing. Fixed wireless continues to be a significant product for the way that we manage margins in the home broadband market. In terms of ARPU, that again has to do more with the way that we have done the different plan refreshes, but the ARPU remains positive to flat. Again, this is something that we'll manage as NBN continues to increase the cost of the wholesale. I said I was going to talk a little bit about guidance. Basically, what I'm doing is reconfirming the guidance that we said in February with an EBITDA between $1.665 billion to $1.735 billion. And then again, on CapEx, we reaffirm the guidance of around $750 million for the year. The other thing that I wanted to talk about is it was actually no news, but it happened last week is around the spectrum. It also gives me the opportunity to put my plug on what I think is happening in the market around regulatory, and I always have a tendency to that because I just like it. But yes, there's no surprise. I think for us, what it means is $2.1 billion of total investment in spectrum. You see the schedule on the slide. The biggest payment is at the end of 2028, and then it will taper through the different brands -- bonds, sorry, until 2032. The spectrum payments will be done in a lump sum, 2 months before we start operating those frequencies. And probably as not surprising that was this, it was nevertheless disappointing. And it is also at odds what is happening in any other market internationally where spectrum renewals have been having a very different approach than the way that the regulator ACMA has taken in Australia. And I think that other markets are much more interested in the combination of good investments in a technology that is essential and critical at the same time of maintaining affordability. Well, I think that here, the thing that has been prioritize, I think, is the maximum opportunity to collect money from the industry, and therefore, we have end up with prices that are quite distorted versus what we see in international benchmarks. Now before I go into the best part of the presentation, which is when my team comes here, I do want to just talk a little bit about how the market is changing, and they will definitely talk about this more and better. But there are things that we need to look at how the market is changing and also how we are shaping TPG to respond to that. I think that is more important is that customers are looking for value customers are looking for simplicity and customers are also more and more looking for digital-first interaction with brands or services like ours. And I think that for us, this is good in the sense that we are shaping the company to cater those needs from customers. Like I said before, on one side, you have significant geopolitical instability, cost of living pressures, a look for value on customers. At the same time, we see how the handset renewal time frames are extending. We see less innovation in that, and that I think is important to consider. There are other factors like the adoption of eSIM. On Felix, for example, our customer eSIM adoption, I think, is over 80% at this stage. So it is definitely something that customers are looking into that simplicity, but also what this technology is providing. We also see the preference for digital subscription, whether this happens on -- when you share a right to go to the airport or whether this is to consume your content and also to manage your services with the telco. So the digital interaction with customers also becomes fundamental. And in this context is where we look into what is the best way that we are addressing all this evolution of consumer preference and how we respond to them. And in that sense, we look at our 3 main brands in the way that we go to market. The premium postpaid category, which is a category that delivers significant value for the company and significant value for our shareholders. It is also a category where there are customers that are looking for the added value services in terms of fixed, mobile, retail, call center, roaming. It is a very rich offering. We think it's a segment that currently under these conditions does not see a lot of growth, but it's a segment where, thanks to the MOCN and the work that we've done in the last years, we continue to perform well. And it is a segment where we play a lot of emphasis. It's also the brand Vodafone that looks at this segment, addressing the enterprise customer, which has also been a significant part of our commercial activity around mobile. We then have TPG, which is still a convergent proposition, fixed and mobile, digital-first brand. A brand that is more catered for people that are looking for value. These are for value seekers. This is a brand that gives our customers a fair go. If we get the service, no fuss, simple and a very good value proposition, and that's a brand that is continuously growing around the mobile proposition. And I think that we are starting to see the benefits of convergence. We'll see more of that as we progress. And then ultimately, our Felix brand. Felix brand was a brand created around the time that we did the merger. So it's been on the market for a few years. It is really a brand that serves us to look at how the market was changing. It's a brand that is simple as a principle. It's a brand that is digital only, has no call center everything is done through an app. But it's also a brand that allows customers to participate on the activity that Felix does, which is every customer that stays with us 1 month more is one more tree that Felix plans for them. And so far, we've done about 5 million of these trees. We are very confident looking at the numbers of Felix that this is going to grow and grow and grow. So a lot of customers say that they come to Felix because of the value and they stay because of the trees. And it is a proposition that is working really well. So simplicity, a good purpose and good value. And this is all I wanted to say today before we go into the break. I don't know if there are any questions. you guys want to see you have a question already. Okay.

Entcho Raykovski, BNP. Inaki, a couple of questions on the trading update. So you mentioned that in postpaid, no huge surprises in the trends, and you said that you're outperforming the market at sort of flat subs. I guess how much comfort have you got in the view that you're outperforming the market? I guess what are you seeing? Is it porting data? Is it other sort of data points out there, which is -- I mean, obviously, we had the Optus March quarter numbers where their subs were down. But can you talk to what are the sort of market dynamics or market data points you're seeing?

Yes. Look, I think that the way -- so the reporting number is a bit tricky because not everybody is reporting the same. And I was clear that when I talk about postpaid, I'm talking about Vodafone postpaid. Not all the reporting on postpaid is equal. I think Telstra includes other brands. And I do think that Optus includes also wholesale. I'm not sure exactly. So it is -- the reason why we say that is we do think that it is a segment that has been affected by population growth decline. So there used to be quite a lot of growth in that segment on students and SIM-only category that has declined quite a bit over the years. And we see that because we were having a significant inflow of that segment, and we don't see it anymore. So we see how that -- and you can look at any statistical data on the students coming and migrants in general. We look at portability data as well, and that's another of the proxies. So it's a nonscientific based on some data points, not so much on the reporting because I do have -- we take it with a pinch of salt in terms of the reporting.

And related to that, can you talk about how your churn has tracked in the first half so far? I mean you spoke about churn improving, I think last time you spoke to us and then you put through some back book price.

I think James will talk a little bit more about that. But in general, for us, the network share deal was probably the part that has contributed more to our churn trajectory. There are a lot of things that we are doing around customer and around all the work that we have done on the consumer transformation on digital that are also looking at managing that churn. So we are happy with the trajectory. We still think that there is quite a lot of opportunity on churn for us, and that's the way that we look at it moving forward.

It's Roger Samuel here from Jefferies. I've got a question about your strategy. You mentioned that customers are looking for value, simplicity and digital first. And I'm just wondering what is your moat with Felix because all the major competitors out there also have their digital-first strategy with their sub-brands. And also, we've seen some challenger brands as well. Yes, just wondering what's your competitive advantage with Felix? How do you differentiate out there?

Yes. Well, again, James will talk a lot more about that. But there are a lot of digital brands that distribute in Coles and Woolies. -- for example, and I don't see that as a fully digital brand for the point of view that it really affects your margins. So when we talk about digital brand, we really look at a brand that is sustained under the arrangement with the customer that is the digital channel, the way that we're going to maintain the relation with this customer. And there are not -- there are brands there that do things like that, but not so many. That allows us to have a really good equation between value delivered to the customer and then margin contribution to the company. And I don't think that there are so many brands with that equation.

Hey Inaki, it's Eric Choi from Barrenjoey. Just on the trading update again, and I appreciate you guys haven't given us like revenue and EBITDA guidance, but I'm just trying to use all the information you've given us to have a stab at mobile service revenues because ultimately, that's what we care about. So if you look at that kind of 70,000 to 80,000 sub pace that you've given us, it implies like the subscriber component will probably grow 3% to 4% in the first half of '26. And ARPUs, I guess, aren't growing very much. But that's kind of in line with kind of the 4% to 5% mobile service revenue growth that you're going. So that's kind of the first part of the question. And the second part of the question is you've also said that your growth in FY '26 will be second half weighted. So do we think that kind of subcomponent can carry -- and then that 0% to 1% kind of postpaid ARPU component can therefore improve in the second half, and that's what gets you your second half weighting. So that's long.

Yes. Look, I think that there are -- I mean, first, in terms of guidance, we just keep guidance on what we keep guidance. I'm not going to give revenue or anything that is a nice try though. The thing that is important is in terms of the customer numbers, we think that we are in the range of where the company needs to be. So we don't see anything different. I think that there are, like I said, certain things that are affecting probably more the postpaid market than the rest. But in general, I would say that we'll probably have a decent second half. And then the ARPU has to do a lot with timing. For example, last year, I think we reported significant growth on digital-first ARPU. I think it was probably 7% or 8%. But that was because the plan refreshes went at the end of 2024. 2025, we didn't do anything. So this year, we see 2%, 3% growth. But then there are things planned for the future. So as much as we would like to be very consistent every half or every year, that's not really the way that we run the business. And I think that for us, what is important is look at the 2 dimensions. Like you said, the only thing that matters here is mobile margin, how we grow it. And that's -- there are timings there on ARPU and customers. We are very interested on the trend and how that goes over time rather than the different fluctuations. So that's -- yes, that's as much as I can say.

It's Lucy from UBS. Inaki, I'm just interested in some comments you made on the postpaid market more broadly. It's a high-value part of the market, and -- but it does feel like cost of living pressures are creeping in. I think for the sector more broadly, growth is slowing from a sub perspective. So what's your view on long-term price opportunity in this market? Like do you think we've actually started to hit more of a ceiling in terms of the ARPUs in that segment and therefore, growth is really all in the prepaid and MVNO space?

No, no, I don't think that, that's the case. I do think that -- first, there is a very big part of the market that prefers that type of service. There is a big part of the market that wants to have handset financing that wants to have stores. So it's a significant part of the market. There is also a significant value in the market. What I'm saying is that the segment that is growing at a much faster rate is not that one. It's more of the digital-first value brands. In terms of ARPU, I think that the thing is quite consistent. And I always said this, the type of service that we deliver today in terms of the value delivered to the customer, the essential nature of it and how critical it is and the combination of being able to ask the customer for a little bit more to get much more in terms of coverage, performance, speeds I think it's a long-term proposition. This is not just something that happens once. So I do think that both postpaid, digital, prepaid, there is a good way to go around recovering a bit the returns of this industry. And I think there is a way to continue doing that in the future. [Break]

Great. Good morning, everyone, and I hope you enjoyed seeing some of our adverts and the way in which we go to market just through the break there. This section is all about go-to-market and our customer experience. Probably one of the more important sections today because we want to share with you probably 3 what we call growth engines. The first one is Vodafone Business, how we turn up in the B2B market. The second one, which I think Inaki outlined was our distinctive brands in consumer and why we think there are a real opportunity. And then the third one is customer experience, something we think that really enables us to position ourselves very differently in market by brand and create real opportunities. Let me start with the first one, which is Vodafone Business. We see this up as a clear growth opportunity. And the reason we think that is pretty simple. Number one, with the big investment that we made in our network, we've now completed one of the missing pieces, which is great network coverage, essential in the business market. Number two, customer trends are leaning in our favor. We know that when customers have a great network experience, they then start to ask questions around value, simplicity and service. Number three, one of the bigger trends that we see is historically, customers may have bought bundled services, think network, mobile and IT together. What we're now starting to see is actually customers are probably leaning more towards how the IT and AI work together, and there's much more desire to start looking at mobile communications, in particular, as a separate line item for procurement, for investment and for tech decisions, which we think is a real trend and opportunity for us as customers unbundle. But before we dive into this, why don't we start with hearing from one of our newest customers, South Australian government. [Presentation] Fantastic, and I love that video. You just heard from Scott Bayliss, who's the Chief Services Officer in South Australia government. And he touched on the very fact that we just talked about core network needs are met. In S.A. in particular, was one of the larger areas that benefited from our regional network expansion, then the decision becomes really simple. Can I get great value and can I get a simple service. And from Scott, you heard a resounding yes, and the market is ripe for disruption. We think that customer response is really important because it sits on top of a much larger market opportunity in the business segment. And we see business mobile as a real scale opportunity. To give some market context, the market itself is worth about $3 billion annually in revenue. And that market has about 5 million business mobile users. That's people where the mobile phone service is provided for paid for by the company. So a large distinct market opportunity. On top of that, there's also a further $450 million and what we see is this emerging premium network services market. That includes things like IoT, mobile private networks and the way in which new technologies allow us to offer services like slicing, quality of service or performance on demand. Why it's exciting for us is we have over 90% of that market to target. So a really large addressable market at scale. And as you remember, we touched on when we completed that network missing piece of our puzzle, now we have the right tools in which to go to market. So the question then is how do we drive profitable growth in that segment. And there's 3 levers that we think are really important to address the B2B market. The first one is we move our focus from just small to all business, and we'll touch on why that's strategically important. Firstly, it leverages our best-ever network. So it's a clear natural opportunity to go after. And secondly, it also doubles the share of the addressable market that we can go for. The second key one, which I think is really core to who we are, and you heard it outlined by Inaki, we talk about this as mobile and in enterprise. And what we mean by that is our portfolio focus will always be mobile and an extension of mobile. We're not going to go into additional services in fixed or other complicated areas. We'll stay very, very focused on mobile and the services that add value for 2 reasons. One, we can better monetize our network; and two, it's a natural adjacency for us to do. So think of it a bit like mobile and mobile private networks on mobile and IoT services, staying true to connectivity and driving pull-through of those revenues. The third key thing is we see ourselves in enterprise being digital first and AI-powered. And why that's really important is this allows us to scale without simply scaling costs. We know our customers prefer digital. We know that they prefer to have simple services, and we know that we can use this in order to scale both service and sales without having channel costs or OpEx. One of the key principles for all of us is keeping that simplicity at the core of what we do, and you'll hear it as a consistent theme. No different in business, fewer product variants, less friction in our sales and service processes, more automation equals better outcomes and more operating leverage. So let's just look at the market for a second. So historically, Vodafone did well in small business. We played in the small business market. There's about GBP 1.2 billion of annual value there, roughly 1.7 million mobiles in that small business segment. And we would have took around 15% market share in that segment. Why we didn't go after larger businesses or get as much success in that area? One of the biggest constraints historically was network. When we face that choice of network coverage, how could we show and demonstrate that we could support larger fleets nationally and into those regional areas. Since we built the regional network expansion, and we've added in what we call the MOCN network, that argument has now changed. So we really see the whole of the market and government, enterprise and SME as being really important opportunities to go for. To give some context in that all business market where you see 5 million mobiles, to make it really real, if you take government as a sector, government has about 1 million mobiles in that sector, and we're already on 11 panel agreements, which allows us to compete and bid for government business. So really strong evidence of our capabilities and of our credentials in order to win and grow in that segment. In the enterprise fleet, we have a really strong opportunity, which is a combination of our local services and some of the great support that we get from the Vodafone brand globally, globally recognized, strong with multinationals and allows us to target and be part of partnership deals where we can win in-country services in broader global companies. And finally, in small business, still a really, really core opportunity for us, one that we've been successful in, but there's a lot more growth to go after. And we think those customer trends, especially around cost of living and cost of doing business really play towards the Challenger brand in that segment. So if we think about our portfolio, we look pretty clearly on what we call mobile [indiscernible]. And the reason this slide is important is this shows the bounds of where we play and more importantly, the bounds of how we monetize our business. And at the bottom, there are some things that are true no matter which customer segment you sit in. So whether you're a small business, government, large business, global, you'll always get access to our best ever 5G network. You'll always get access to our market-leading roaming proposition. You'll get access to data sharing and to a great range of business devices, whether you want to buy them outright on a purchase plan or as part of a tech fund account. In small business then, we are on fixed connectivity. So for small businesses, we'll provide fixed wireless or an NBN broadband connection. And we complement that with value-added services and cloud-based messaging to help small businesses keep in touch with their customers and their employees. And the way we service and support them is through the -- my Vodafone app and online. Critically, all of the products in small business will be available online first, not online only. In the business, enterprise and government segments, we see 3 big opportunities. The first one is we already have a strong managed mobility offering where we manage corporate fleets. And you've heard about that from one of the case studies, and you'll see that more evidence through the year. Taking advantage of our network and the 5G core that we've built, we can now offer more advanced services -- so we already provide IoT services, mobile private network services and critically over time, what we call 5G advanced services, which will include things like network APIs, slicing and performance management of the network. These are services that are really valuable to certain industries, to certain verticals and certain use cases such as mining, ports, logistics. And then finally, we use the global enterprise partnership that we have with Vodafone to get reach to many, many more customers that we couldn't automatically reach ourselves. So we think it's a really strong offering across all segments in the market. So the question is how do we scale it profitably? And what does the service and support model look like? And there's 2 slightly different plays here that we make. The first one is in small business, leveraging some of the big IT transformation that we've talked about over the last 3 years, our small business customers take advantage of my Vodafone app and online as their main route to market. It's complemented with branded retail experience and complemented with great customer care and chat. So if you need help as a small business to get set up or use your products, you can get those. What's really exciting is that small business segment will also start to see AI-driven experience recommendations that will tell them how to get the best out of their products, how to get the best out of their services. And in the background, we'll also automatically configure, manage and optimize those services to deliver the best experience possible. Giovanni is going to share a lot more about that and give you some context. In the large business segment, we launched our Swift Serve fleet management portal in Q1 this year. That allows us to digitize and automate approximately 75% to 99% of all transactions. Why that's really important is it means we can scale the business without adding support heads or cost. It allows customers to self-administer and to choose really easy ways to deploy their fleet, whether they choose to provide handsets, eSIMs, add services, remove services or even change the way people use their services. So we think it's a really great platform and one that will allow us to scale without a huge investment. We'll take a really lean acquisition-focused sales team in that segment, and we'll be very hungry about growth. So we won't be investing in heavy account management structures or complex product support. We'll stay true and focused on winning new customers, delivering a knockout proposition with great value. And finally, we complement it with Australia-based support where customers need to speak to someone and get that support, we've got a team set up and ready to go. So really excited about the opportunity to scale without adding cost scale. And then how does it turn up in market? So 4 really simple used cases across small business to enterprise to give you a flavor of what it means for a customer. On the left, you'll see Brewtech as an example here. They're a small business. They service approximately 4,500 coffee machines across the country, professional quality. They mainly focus on [indiscernible] New South Wales, Queensland and W.A. And they've got about 35 highly mobile technicians who spend pretty much all day on the road. Since the MOCN network was launched and built, they've noticed, one, they can be in much better contact with their customers, deliver a much more speedy personal service. And they can also now start to use IoT services to manage some of those coffee machines and actually enable them to download firmware, get manuals on site or support them remotely, transform their business all from a relatively simple overnight switch on of the Moen network. The second one, the enterprise fleet that we talked about. You've already heard Scott Bayliss talk about this example of South Australia government, already 6,000 services live, 14 agencies onboarded, and they really appreciate the streamlined support model that we've built, including the mix of digital and human capabilities. Mobile private networks, we -- it was 4 years ago to this date, we talked about the opportunity of mobile private networks. And since then, we've gone to build, run, operate and extend those networks. And this is one of the more compelling ones, which was with Yancoal. We announced that we won Yancoal to build a mobile private network -- we did that in record time, stood the network up, and that allowed Yancoal to go from approximately 60% of a mine being covered with an old legacy solution to 99% coverage of the mine. And why that's critical is it really is a platform that enables remote monitoring, autonomous vehicles, better health and safety protocols to be in place. So really transformational investment delivered at scale quickly. And then the final one, a great example of Internet of Things. We've now got circa 200,000 connected water meters with Southeast Water, a great example where they're using IoT to not only improve the accuracy and speed of meter reading, but they're also using it with their combination of AI that they've built to do continuous leak flow detection to look at the readings and to infer from those readings what might be happening on a premise or in a utility. Really great practical examples of how our tech can support customers today. And there's another area that we're really excited on, which we think wholesale. It's an area that creates an even better return on assets that we already hold. And we think this is really important because for us in wholesale, we can see it's a large market, about $1 billion of wholesale mobile. And that $1 billion roughly has been growing about 10% per year in the period up to 2025. And what's been driving that are 3 different kinds of partners that we see, all of which we see as opportunities. The first one is existing MVNOs. These are typical brands that would have been in market, have a customer base. And the first thing we know is most of the time, they're not on our network. For historic reasons, they weren't with us. So it's all greenfield opportunity for us to go after. We take a very opportunistic strategy in this segment. If it's the right brand with the right channel and distribution reach and it meets a good set of commercial guardrails, then we'll go and partner with that business. And a great example here that proves the credentials was winning, migrating and delivering like a mobile 2 years ago. The second big opportunity we see new brand entrants [Technical Difficulty] looking at how their customer interfaces, their digital interfaces to add more value. So for example, fintechs, retailers, energy or banks, really interested in how can they add more products and therefore, create more customer stickiness and also get more streams of value. A great example here is we take a very strategic approach. We look for the right kind of brands that have great channel, can do things with a relatively low cost to acquire and have a large established customer base. And the most recent one you would have seen there is that we announced the launch of Z Mobile in partnership with Zip, a great low CapEx, low-touch investment to market, fully digital, and we see that as being a great opportunity to scale to tens of thousands of connections Bear in mind, Zip support roughly 10% of the Australian population today with the services. And the third one is there's some really interesting use cases developing. So when you look at these new use cases, these go from everything like messaging providers that want access to the wholesale network to connected cars, of which there will be roughly 2.5 million connected cars in Australia by 2029. Every single car will pretty much be connected, and they'll be consuming somewhere between 3 to 4x the amount of data per car that they do today. So a really important opportunity that traditionally we didn't play in. And what's core to that is having both a good direct engagement with the right partners, a great global relationship using our Vodafone brand to reach partners and a really strong wholesale relationship to reach some of those OEMs and aggregators. And then finally, we see things like wearables or network APIs becoming really important wholesale lines of business. In wearables, a great example here is Spacetalk, who you would have seen, we announced an MOU back in February that we're looking to partner with Spacetalk, both for distribution of their product and obviously to try and secure them as a wholesale client as well. So I think there's a really strong opportunity in wholesale and something that we're very proud of the progress that we've made. And I'd like to finish this section with where all good strategies start, which is with our customers. And this is a selection of our small business customers and what they're seeing. And when you see Craig Milton, who is the Managing Director at Brewtech that we talked about, mentioning, we noticed the extended coverage immediately. That's an example of our network investment landing quickly. When you see Andrew Rothery talking about Vodafone makes it easy to do business with, that's a real example of simplicity in the product set and our service model turning up for customers. And when you see Kristy Lark talk about Vodafone plays a huge role in keeping me connected to the distillery, to customers and to suppliers when I'm not there, that's relevant, and it's putting the brand at the front of what customers need. And that's why we've won the most satisfied customers in small business 4 years in a row. So we think the opportunity is large, it's real. And hopefully, you have a good sense of what we're trying to do inside Vodafone Business. Many more customers to win, lots of work to be done, and we're really excited about that opportunity, both in enterprise and wholesale. And with that, I'd like to ask James to take us through consumer.

Okay. Well, thanks, everyone, for coming along today. It's great to have the opportunity to talk through the consumer business and how we're approaching it. So Bec and I are going to cover off our brands and our approach to market. I was going to kick off with an outline of how we see the mobile market, how we see the fixed market and then how that shapes our strategy and how we are approaching those 2 markets before I hand to Bec, who will cover off on Vodafone. So firstly, in terms of the mobile market, there's a couple of core dynamics that really shape what we are planning to do there. Firstly, the growth in the market is in what we categorize as the value segment or the value category. The postpaid segment from a subscriber perspective, we would say is stable or flat. Now, it oscillates a little bit up and down, but largely, it's flat, but the growth in terms of subscribers is in the value segment. And that value segment is made of MVNOs, branded prepaid, digital subscription brands. It's all of those things in there together. When we look at the growth there that actually the value and 70% of the revenue still sits within the postpaid segment. So the key insights for us that shape what we want to do are that we need a multi-brand approach to, one, ensure that we grow our share of the high-value postpaid revenue where that value is. That's our role for Vodafone that we'll talk through. But then when you've got a growing value segment of the market, how do we really profitably and sustainably grow in that space. And that's where the digital subscription brands that Inaki talked to earlier have a key role to play. What does it mean for ARPU? And there's been a few questions on ARPU. Well, in a market where you've got fairly low subscriber growth and you've got, especially in the postpaid space, very low subscriber growth, then ARPU has to definitely play a role in terms of driving sustainable revenue growth, and we have been focused on ARPU, but also competing hard to win subscriber share. It's important to note that while that total postpaid subscriber base remains fairly stable at an aggregate level, there is a 2 million customers annually that switch between brands and in those pools. So there is actually a significant opportunity while the category is not growing for Vodafone brand to attract more customers in that space and outperform where we have historically, which we'll run through in a future section of today's session. So then moving on. The next slide talks about, kind of, how this strategy has been delivering for us over the last couple of years. And it has delivered a pretty steady path of ARPU growth, and this is blended across postpaid and kind of value segment. So while the value segment is outperforming in terms of subscribers, we're still delivering blended ARPU growth, and we're delivering consistent subscriber growth as well. And you'll see a bit of an uptick in the last 12 months on the back of our network sharing, which has accelerated that and unlocks even more opportunity, which I will talk to next. So from our perspective, the strategy is working. We see opportunity to double down on it and accelerate our performance. Inaki talked about network sharing, and I think Jonathan talked about it as well. Here's some data points for you around what the network sharing arrangement has done. This data comes from Meta. So it's a slightly different data source to the publicly listed results, which don't have the geographical splits. But Meta data gives us a chance to look at a geographical level how we are performing and where our opportunities are. The thing that you'll probably see stand out is that Sydney has a very high market share of roughly 30%, and we've done very well historically in Sydney. And a lot of the legacy of that is actually the network in our metro areas has always been strong. But as you start to get outside the metro areas, sometimes there were gaps in our networks that would impact the success that we would have within those metro areas. What the MOCN or the network sharing arrangement has done has really improved the experience for those customers as they leave those metro areas. And what that provides is an opportunity for those major capital cities where we've historically had lower market share to start to increase our penetration. So at the start of this program, we identified we thought Melbourne was actually the #1 market opportunity for us. And what we're seeing is a significant shift in 12 months in market share in Melbourne and then across -- of roughly 1%. And then we've got across strong growth in Perth, strong growth in Brisbane and Adelaide as well. So we see significant upside from the network sharing in the last 12 months. But if you look at that 30% share we've got in Sydney, we still see opportunity to accelerate that growth across those kind of underpenetrated areas. And a key part of our go-to-market is to focus on the geographies where there is opportunity to grow. Now moving to home broadband or to fixed. There's a couple of dynamics there that I wanted to just spend a little bit of time on. And you guys know all of this, but it's probably the relevant bit is how it shapes our thinking and what -- how it shapes how we're going to approach the market. The first one is NBN market is effectively stable. There is no new subscribers coming into the NBN market. So every customer we get pinching it off someone else and every customer someone else gets is pinching it from someone else. And so it's a fiercely competitive market. And the thing that's really happening there is that there's a fundamental shift in terms of speed, which NBN is supporting with the Speed Booster and the Fibre Connect program, and we're seeing a rapid acceleration of customers moving up to higher speeds. How does that impact TPG? Well, in the short term, look, the market is very hot, and there's a bit of a land grab going on with Speed Booster, but also with Fibre Connect. And so it is a hypercompetitive market. We have a large customer base. our strategy is firmly to protect that base and manage our churn. And Inaki mentioned, we are seeing some progress and some improvements in our performance on churn and in our fixed net add position. There's still a lot of work to do, but certainly, our #1 focus is to manage our churn. What we do see is when customers move to higher speeds, they have a much better experience. And as part of that better experience, they actually have a lower churn. So when customers move to an NBN speed of 100 or above, we see the churn rates sit at something like 20% below the average churn within our base. So we see, while there is a very hot market at the moment, there is a rapid movement to high speeds. And as that happens, we are seeing some underlying improvement in our churn within our customer base that we will look to accelerate as well. So right now, the market is roughly 40 -- early 40% high speed over NBN 100. By July, our plan is to be at 50% of our base would be on NBN 100 or above. So we see high-speed customer migrations as core to managing our churn on NBN. The second lever that we have on NBN is convergence. I'll talk about that more as I talk through TPG, but we are very well positioned with our mobile and fixed assets to drive improved convergence into the base, which definitely provides churn benefits across the mobile and the fixed portfolio, and I'll talk more about that with TPG. The third part of managing churn in that space is something that Giovanni will give a live demonstration on later on, which is really using some very advanced network analytics that tap into what's the experience for our NBN customers or our fixed customers in general, identifying where those customers are having what we would categorize as a poor performance and then having ways that we can then intervene and deliver that customer a solution to that problem. So Giovanni will talk more about that later on, and I'll touch on it in TPG. But really, the focus for NBN is double down on churn, migrate the customers to high speed and drive convergence. Our strategy has been over the last couple of years to drive margins through fixed wireless, which is a strategic advantage for us as an MNO as well. We're the market leaders on fixed wireless, and it has supported ongoing margin growth for us. We will continue to drive fixed wireless performance and growth. As Inaki mentioned, that had slowed a little bit in the second half of last year, but we have launched our new stand-alone 5G fixed wireless product, which, as Inaki said, has expanded the addressable footprint for 5G. So as we launched that in mid-April, we have seen a return to net add growth in fixed wireless, and we would expect that to continue now that product is out there in market. This strategy overall has provided solid margin growth for us in fixed. But over and above all of that, we see fixed as playing a key role supporting our mobile business and supporting our mobile growth by providing convergence into the mobile base, which is part of what Bec will talk about with Vodafone. I'll now hand to Bec, who's going to run through our brand strategy, but also Vodafone.

Thank you, James. Hi, everyone. So you've just heard from James talking about our go-to-market strategy, and it's very clearly centered on delivering balanced growth through 2 key drivers, the first of which being our revenue growth from our Tier 1 brands, particularly our postpaid business in Vodafone. And then the second being our profitable subscriber growth through our value brands. Now I joined the TPG business about 18 months ago, and there was one reason that I joined, and that was because TPG Group is Australia's #2 telco group in this market. It has an enviable position to capitalize on those opportunities. And that's what we are on the cusp of doing. And I hear you ask why is that? How can you do that? Well, it's very simply because we have an incredible portfolio of brands that cover all segments and all needs across the market in a way that our competitors can't. Everything from the highly converged premium tier brand with Vodafone, our converged value players through TPG and iiNet, all the way through to our highly differentiated brand with felix, and of course, our value players in the market. To touch on Vodafone for a couple of moments, our premium full-service, full experience brand. It has the confidence and the credibility to truly challenge the existing category conventions and status quo that are held by Telstra and Optus. Premium global brand. TPG also playing in the convergence end of the market with fixed and mobile offering, also coupled with the trust and credibility that comes from a business that has existed for 40 years in this market, celebrating 40 years this year. And there was a question earlier on felix and other digital players in the market. Felix is an incredibly unique brand, 5 years young, a completely digitized end-to-end workflow and customer experience. It is a true digital-only brand. But added to that, it also has the only unlimited plan in this country. Now I'll call out here, unlimited is different to data banking, and it also has an incredible price point. Not to mention, as Inaki spoke about, the sustainability credentials that create an incredible purpose. So it's certainly a brand that has the trifecta of differentiation in this market. And of course, all of this is underpinned by a suite of complementary value players in the market. Lebara, an existing and well-established brand. And of course, as JR spoke about, additional brands through partnerships, Kogan, Lyca and most recently, ZMobile. I'll also very briefly just touch on iiNet, which plays in the same converged value space as TPG and represents a geographically strong brand within our portfolio. So I'll spend a little bit of time going deep now on Vodafone, and I'll then hand over to James, who'll speak about both TPG and felix. It's fair to say, for Vodafone, it's a business that has fundamentally changed in the last year and certainly since our last Investor Day. The business has undertaken a multiyear transformation program on network coverage and experience. And the headline on that is that Vodafone is back. The work has been done internally to now accelerate the business, coupled with, as you know well, and we've spoken about today, the fact that our network sharing deal has instantaneously doubled the network. The simple press of the button has now given Vodafone coverage on par with Optus and 1 percentage point behind Telstra in terms of population, only 1 percentage point. Now I've described it as a simple push of a button. I'm sure Giovanni will disagree. A lot more work behind the scenes, but it certainly has taken away that structural issue that the Vodafone brand has had for many years. Network is now a hygiene factor. Added to that, Vodafone is now also a credible and confident alternative. We are now returning to our bold and disruptive past with incredibly competitive pricing better than our key competitors. And to that end, I think the headline in our marketing says it all, get the big telco experience without the big telco price. This is where we will truly challenge this market in the premium space. James talked to you a little bit about our market share growth that we've seen in the last year. And added to that, we've also strengthened our brand and network credentials. I can tell you from a 25-year career in marketing, consideration is very difficult to shift, particularly in 1 year. This is a business that's done it and will continue to do so. Our mobile consideration has grown by 3 percentage points. and our fixed has grown by 2 percentage points. And most importantly, our network perception and experience has also grown in the last year. Network perception is up 9 points. And most importantly, the actual experience of our network is up 5 points. And that is in areas outside of our 5 metro areas, the areas where we've doubled the network. So we are certainly seeing within the first year, the advantages and the benefits of our network sharing deal. I'd also add to that, and it's not on the slide, our Net Promoter Score is now outstripping our 2 major competitors for every month this year. So our customers are telling us. So I'll spend a couple of moments talking about the size of the opportunity. James touched on this very briefly. We know that annually, there are 2 million switches within the Tier 1 switching pool who are looking to move within the category. We want more of them coming to Vodafone. And we're very clear on how we'll do it. We're also very clear on the 4 drivers of switching, network, of course, being #1. I've described the fact that, that now becomes table stakes across the category, also supported by the growing strength and enhancements of our 5G network. James touched briefly on our expansion of 5G for FWA. And in our important growth markets of Brisbane and Perth, we have the fastest 5G coverage. Beyond that, what we also see is that families are a key segment in that premium tier. And so we recognize with families growing, children staying at home longer, multigenerational living, the needs continue to change. We are building a proposition and enhancing a proposition that ensures that we are meeting the needs of those customers through devices, through the latest tech and through the latest accessories. Vodafone will become the home of handsets. And that's also coupled with the need for premium in-home WiFi. This is well beyond simple broadband. This is high connectivity in every corner of the home. And added to that, being Australia's only global network, our roaming continues to be a market-leading proposition. Our major competitor charges $10 for roaming. Vodafone charges $5. All of that is wrapped in an incredible experience, and Vanessa will speak more about that experience. This is a true omnichannel experience for the premium tier of customers. Our retail footprint will remain an incredibly important channel, and it sits alongside our growth in digital. We recognize that digital will continue to grow and expand alongside the requirements of a retail experience for the expertise, the face-to-face connection that stores can provide. So with that, I'm going to hand back to James, who will talk to you some more about our digital subscription brands. And in doing so, I'm going to leave you with one question as consumers. Why would you pay more?

Thank you, Bec. Okay. So I'm just going to spend a little bit more time on our digital subscription brands being felix and TPG, spend some time on the high-level economics and why they are, we think, the most profitable and sustainable way to capture the growth in that value segment of the market. First of all, just looking at the outlook for growth in this segment, we see 1.5 million new customers in the value segment by 2029 is what our forecast is. You might notice that's a slowing rate of growth from what has been historically, and that's to do with the immigration levels slowing into the country. As part of that, the digital subscription brands that we have, we're planning to take to 1.1 million subscribers by 2029. Now that is about 25% of that growth we would be capturing within those digital subscription brands. And that's in a busy market that, as I said earlier, includes MVNOs, Tier 1, prepaid as well as all of the other digital brands out there. So it's a busy hypercompetitive market, but we are aiming for 25% share of that growth over the next period. Now this chart tries to outline the commercial benefits or the margin benefits of digital subscription brands versus, one, traditional postpaid brands; and two, traditional prepaid brands. And the benefits lie, versus traditional prepaid in ARPU, where the ARPU in our portfolio is 30% higher for our digital subscription brands versus traditional prepaid. And in cost structure, like Inaki talked about earlier, with a 20% lower cost structure in our digital subscription brands. And the cost structure really benefits lie in there is no third-party channels. We're not sending SIM cards out. We're not sending field merchandising teams out. We're not paying commissions. It all happens 100% digitally for felix. And for TPG, it either happens -- the majority of it happens digitally, but you can also buy over the phone as well. But they are very, very low ways to go to market and simplifies the business and strips a lot of the cost out that traditionally sits in that value segment with more traditional distribution mechanisms. We see potential to scale these brands further and drive even further cost benefits and economies of scale. As we all know, telco is a game of scale. And while felix has been a big success story for us, it is only 5 years old, and we see the growth trajectory over the next period of time will enable us to further enhance the economics for that brand and similar for TPG as well. I thought I might just comment a little bit on postpaid cost structures, but also a little bit on the prepaid cost structures. On the traditional prepaid, and Inaki mentioned earlier on, we are focused on improving our economics there as well. And we've made some strategic choices to pull back on some of our investments in those third-party channels and try and pivot more into digital, and we are seeing some benefits of that. The customer quality is better on digital. The cost to acquire is lower. And so we are kind of in that transition period now, and we'll continue that trend -- that strategy over the coming period of time. On the postpaid side, there is a heavy cost structure there based around retail. Vanessa will talk about that, and Bec touched on it as well. That customer segment wants and it's part of their need to have access to a retail footprint. So we see that as an ongoing part of the proposition. It's a premium product with a higher ARPU, but it does have a slightly higher cost structure. Vanessa will talk about some of the trends in terms of footprint and that we do see a gradual kind of reduction in that footprint. It's been happening for a number of years as customers perform more of their transactions online, but retail will remain part of that. But all of that being said, we do see improvements in that cost structure over time as customers increasingly choose to transact digitally, certainly for the simple transactions that they undertake with us. Now moving on to a bit of a deep dive on TPG, and then I'll do a bit of a deep dive on felix as well before I hand to Vanessa. TPG is 40 years old this year. It's a very credible brand with high levels of brand awareness, very high levels of consideration across fixed and very high levels of consideration across mobile. It is really positioned as one of the only brands in this segment of the market that has the credentials to become a truly converged digital-first subscription brand. Its heritage lies in home broadband and fixed, but the strategy that we are undertaking is to evolve TPG into a truly converged digital-first subscription brand and differentiate on that path. One of the things -- there's a couple of enablers that we are investing in to drive that change. Number one, we are investing to drive the mobile credentials for TPG. So when people think of TPG, it's not just broadband, it's actually TPG mobile as well as broadband. On the slide there, you'll see it's up 3 percentage points since the launch of MOCN, which is quite significant. Within our own customer base, it's now up 6 percentage points. So we will continue to drive the consideration within our customer base, but also for noncustomers and the credentials for TPG in mobile as well as fixed. The second key part of the strategy is to enable customers to simply buy multiple products at the same time. So new customers when they come on board to simply buy bundles across fixed and mobile. And our transformation program is going to enable that to make a very seamless digital-led experience for customers to buy multiple products at once. Customer convergence is not just something that we are trying to drive for our own benefit. Customers desire convergence and our converged customers have an NPS that is 2x an unconverged customer and they have lower churn rates. So it drives a customer need as well as driving a benefit for TPG. The second part of that is cross-selling into the large fixed base, and we, as part of our transformation, building some advanced capabilities to cross-sell and support greater penetration of mobile into that base over time. And what we plan to do there is as we get that convergence up at the moment, it's in the very high single digits. Our convergence levels within the base. The goal is to double that convergence rate in the short term. Then we've got -- the final part of the TPG puzzle really is it's a large NBN base. It's got value-seeking customers at its heart, and it's a really hot NBN market. And so part of our success story and our strategy for TPG is about stabilizing the NBN base and doubling down on churn. I mentioned early on in terms of market context, there's a couple of levers for that. Number one, we see the rollout of fibre and the movement to high speeds as definitely providing a much more stable and a better experience for our customers and the #1 churn driver for customers is network experience. So that we see as something to leverage hard to drive down churn. Number two, Convergence, I've spoken about that, and we've got the numbers up there that will show that actually the more we can drive mobile into that base, the greater stability we will have in the fixed base and improve the stabilization of NBN. The third one is to do also with the experience of our customers. Giovanni will give the demonstration later on, but it's really about being -- using our analytics of the customer experience right into the home, right down to a device level to understand what is their experience. And if that customer -- we've got a ranking system or a score that we can give for every customer on that experience. And once it falls below a threshold, we can proactively drive an intervention. An example of that would be customers might have interference and they may need a modem reboot. We can then automate a trigger for any customers in that situation and do an overnight modem reboot. And what we're seeing is 90-odd percent of those customers will then move back up into a really strong position in terms of network experience. The customer doesn't even know it's happening, but we are triggering it and automating it, and it's driving a significant shift in the customer experience. Other use cases would be, and I think Giovanni will talk about later on, where customers will have not the right WiFi or mesh setup. So they'll be in a big home, and we'll see that they have black spots or rooms in their home where they're not getting the adequate service. That's not a problem with the NBN service. It's a problem with their in-home setup. So we can then proactively reach out to them and talk about options to extend the coverage into their home. Also, if their modem is not performing, we can identify that and look at modem upgrade. So there is endless possibilities to be on the front foot and proactively manage our customer experience, and that is the #1 driver of churn. felix is very different, and we're not -- felix is mobile only, and it's based on simplicity, 3 plans. as Inaki said, digital only. You can't call up on felix. Everything happens via the app or the website, and it's a very good digital experience with high app ratings and experience for our customers and a strong NPS. As Inaki mentioned earlier on, we are at around 5 million trees planted and that environmental credential is something very unique in market. And as also Inaki said, people will come for the value and stay for the trees is certainly part of how we see felix competing to grow its customer base over time. Of those 5 million trees, just to give you an example of some of the things that we're doing, we have planted 240,000 trees in a region in the northern rivers of New South Wales in a Koala Sanctuary area where it's really looking to rejuvenate and support a recovery of the Koala population. But those are the kind of projects that felix gets involved in, and we can certainly see in our customer a lot of love from our customers in terms of really feeling connected with the brand, which is fantastic to see. It does have a unique proposition around unlimited, and we see a good mix of customers coming in on that plan. All of those things combined, though, at the moment as a 5-year-old brand, only 50% of customers in the market know about felix. So if you compare that to the major brands out there, which track at north of 90%, the untapped potential for felix, it's such a strong proposition and such a strong customer experience. Our investment strategy is about continuing to double down on the experience, innovate with our product set, make sure we stay ahead of the curve on that, but also really grow our brand awareness of that product and open up the top of the funnel to continue to grow felix at a rapid rate over the coming years. So that concludes my section. We're now going to hand to Vanessa.

Thank you, James. Good morning, everyone. So I'm here to talk about the lever that Inaki touched on earlier, which was customer experience. Customer experience is one of our biggest growth levers as we move forward. And it's where digital scale and human connection will actually come together to differentiate us as a business. In our market, customer experience is not a soft metric at all. It's a hard driver of customer trust, customer retention and ultimately, our EBITDA growth. The reality is that our industry has fundamentally changed, and Inaki touched on some of these factors this morning. So we've got rising regulation. We've got very low consumer trust in the telco industry overall. And we've got cost of living pressures. And all of these things are changing our customers' expectations, but they're also changing and resetting the standards that we are held to. From a customer perspective, our customers' needs are evolving. They're wanting simplicity. They want more transparency, but they also want a human to talk to in those really relevant moments that matter for them. And from a regulation point of view, there's higher standards coming in, particularly as it relates to protections for customers and how we service those customers in those moments such as when they're vulnerable. There's very clear expectations about how we handle those. And the operating model is shifting based on our customer needs. They want simple, easy-to-navigate journeys that are end-to-end and across all of our touch points. They want that consistency and they want that simplicity. Our response to this is turning customer experience into a critical lever to drive revenue growth, but also customer trust. We have 4 areas that we are strategically focused on here. And the first of those is building the foundations for trust, because without trust, we will not retain our customers, and we will not have their advocacy. The second of these is differentiated brand experiences. And you've heard from James and Bec a little bit about how our brands show up. So our focus here is having distinct experiences that bring each brand to life and create something unique for the customers that are with those brands. The third one is redesign of our journeys, looking at simplicity, taking out friction for customers and incorporating more AI and digital adoption to reduce our cost base. And the fourth of these is customer experience as a strategic differentiator. We feel this is one of our strongest propositions. We bring this to life in our culture, the way we execute and our operating model, and this will truly differentiate us as we move forward. So we're already seeing some great progress, and we've got some statistics up here for the Vodafone brand. So first contact resolution up 7% and our touch point Net Promoter Score up 29%. And those 2 metrics are just in the first 6 months of this year. At the same time, lowering our cost base with a 10% reduction in customer contact volumes and a 20% reduction in our Vodafone retail store footprint, and that's over a slightly longer period of time. So you can see we're making measurable impact on customer outcomes while also making positive impact on our cost base. And as we move forward, you can expect to see those same metrics moving in the same direction. And to the right of the screen, I just want to spend a moment to touch on a story of a customer. So this narrative up here is from a Google review, and this customer some time ago had one single prepaid Vodafone connection. They walked into a Vodafone store one day to get troubleshooting support for their daughter's device, which happened to be on another network. Despite this, the customer was helped in store. We got the daughter's device working and she walked out happy. Based on the experience that she had in that store, she came back to the same store, and she inquired about our Vodafone postpaid plans. She again had a great experience in that store. And as a result of that, she migrated all of her voice and fixed services to Vodafone. In that instance, that customer went from a customer lifetime value of $80 to $3,500. And that was based on the experience that customer had in that store. And she happened to see the same employee both times in that store. So it just goes to show the tangible impact our focus on experience is going to have on our results. And key to building trust with our customers is our focus on well-being. And it's how we show up when our customers most need us. Digital is important, but there are times when a customer needs to speak to us as a human. And customer well-being is more than simply doing the right thing. This is a commercial imperative because it builds trust with our customers. It affects the view our customers and potential customers have of our brand. It also impacts our regulatory risk. So it's a really critical area for us to focus on. And to bring this strategy to life, we've been focused on these 5 areas that you can see here on the slide. Furthermore, we have invested in customer well-being specialists, and this is an industry first, and we have them at the moment in selected Vodafone retail stores and our onshore contact center. And we have plans to scale this even further into the future. So how are we bringing all of this to life? So we're focusing on 3 execution engines to bring this to life across retail, contact center and also technology. So starting, first of all, with retail. So retail is obviously for our Vodafone brand, and it services our consumer segment and also our small business segment. And in retail, we're really focused on moving from transactions to value creation and also improving the store economics as we do that. There's also a greater focus on digital in the experience. So for customers coming into store, how do we integrate digital so that as they move forward, they'll be serviced through our digital app, and we can reduce contact center call volumes. And then we're looking at productivity and enhancements to our store footprint as we move into the future. For our contact centers, we're taking a shift from being very reactive in our approach to looking at more proactive care for our customers while also reducing demand. Particularly for our onshore contact center, we're enhancing that where we're offering premium support for our customers, also support for vulnerable customers and really complex transactions. This will reduce our offshore dependency as we reduce our call volumes. And we're investing further in AI to handle all of those simple queries where a customer doesn't need to talk to someone. And all of this will be underpinned by technology and AI with a much greater focus on AI. So moving from automation and bots to truly AI-enabled customer journeys. We're redesigning customer journeys so we integrate AI to handle those simple queries. We're also looking at upfront insights for our agents so that they can have better conversations in those times when they do speak to a customer. And finally, we're looking at proactive insights to help resolve customer issues before they come demand, and Giovanni will give a demonstration of that. So in closing, our success metrics for customer experience are really clear. So the first is around our digital mix and our customer digital adoption, which will go across sales and service. The second is looking at our cost to serve, which we will continue to bring down and also reducing demand into our contact centers. The third is increasing loyalty and reducing churn. So we're going to enhance retention and reduce churn as we move forward. The fourth is increasing our first contact resolution, and that touches both our retail stores and our contact centers. And the fifth is around NPS. So increasing our Net Promoter Score and also increasing the loyalty and advocacy of our customers. And finally, all of this will be underpinned by our customer-first culture and a highly engaged group of employees who are delivering better customer outcomes and superior business performance. Thank you.

Just going to moderate any Q&A from up here seeing as we've got 4 speakers. I think Roger has got his hand up over there.

It's Roger Samuel here from Jefferies. Just on Slide 46, where you show the different buckets for ARPU and cost. Can I ask you what do you include in that cost? I mean you've got a note there saying that marketing costs are excluded. But what about things like people costs, network cost? How do you allocate that network cost across the 3 different buckets and things like the backhaul as well that you have to lease?

So yes, it's a fairly simple exercise we've done to try and highlight the kind of the high-level drivers of the commercials. It's the direct costs associated with the provision of that service and the ongoing support of the customers in that. So it doesn't include an allocation of network cost and backhaul and those kind of things. So it's not -- we're not trying to attribute costs from infrastructure and things like that. It's the cost of the call centers in, say, retail in Vodafone. It's those kind of costs that kind of go in there, cost of IDD calls for customers that make call termination costs. It's direct cost, but we haven't allocated corporate overhead, and we have an allocated marketing. The reason we excluded marketing is that marketing is ultimately a choice of how hard you want to push it for how fast you want to grow. And so it's something that we thought is more of a -- something we would kind of keep to the site. So it's a fairly simple direct cost allocation model.

I think Tom, you next.

It's Liam Robertson.

I'm sorry.

That's okay. Maybe 2 for you, James. Just referring to Roger's chart there, can you give us a sense on an incremental basis, how the economics change? So I imagine your cost of acquiring customers is a lot lower in the digital channel versus in that premium postpaid channel. So it looks like this is stand-alone as is almost fully allocated, but just keen to get a sense of what it looks like on an incremental basis?

Sure. Yes, that's exactly right, Liam, on how we've done that analysis. It's not on a kind of a cost to acquire or incremental basis. If you look at traditional prepaid, certainly across, say, the Vodafone and Lebara brands, where the majority of those sales or a good portion of those sales come through third-party channels, where you're paying a number of costs associated with that. You've got field teams out there merchandising. You've got SIM card costs you've got to ship out there. You've then got commission costs upfront for connecting the customers. And you've then got ongoing sometimes recharge if those customers recharge through there as well. Those costs, whereas in a digital brand, if a customer is acquiring, say, felix, there is none of that cost at all. The only real cost that you have is the marketing cost. And generally, that marketing cost is in the realm of 60% of the acquisition cost in a third-party channel, but with opportunity to optimize certainly the marketing spend. And certainly, if you look at things like felix at 50% awareness, as you grow the upper funnel, you'll get much more efficiency out of your marketing spend. So high level, that's the kind of efficiency that you'd be looking at.

Perfect. And then maybe just changing tack to broadband. I'm conscious FWA has been a really strong margin retention tool. The way you're posturing the market, they're broadly consistent. So flat NBN subs since FY '22, I think FWA growing at 17.5%. My question is, has the value proposition of FWA changed? I mean we've obviously had accelerate rate in November. We've then seen subs slow. Again, you're sort of forecasting flat subs in the first half of '26. So I mean, in a post-accelerate rate world, has the value proposition of FWA changed? Or have we sort of seen penetration peak?

Look, I think there's probably a couple of reasons behind the slowdown that we have experienced, but probably also Optus has experienced if you look at their results in that period of time. It does correlate to the accelerate rate period. For us, it's probably a combination of the market being fairly focused on speed and all of the hype in market was around speed. At the same time, we have a fairly high penetration of fixed wireless into our base as well. So you're probably going to naturally start to see -- it's not going to keep on the same trajectory forever. So I think as a more advanced player, we've probably got those 2 forces happening at the same time, whereas someone like Telstra has got a much lower penetration, they've probably got far more kind of organic growth that means their numbers are still a little bit more positive than ours. The value proposition, I think, has probably changed. What it really has done is bifurcate the market. So you've got the high speed going in one space, and then you probably got value seekers who want plug-and-play experience at the other end. And so it's changed -- it's not so much an NBN substitute for everyone. It's an NBN substitute for a certain segment of the market. But we know that once we've now opened up the footprint with our stand-alone product, we are seeing net growth again, and we would see opportunity to continue that. The other thing that dynamic within there is that fixed wireless is a mixture of 4G and 5G. And our base is basically 70% or 70% 5G, 30% 4G, but we know the experience is much better on 5G. The churn is much lower on 5G and our plan is -- and the ARPUs are better on 5G. So certainly, there's opportunity, one, to grow the -- still opportunity, we believe, with stand-alone to grow fixed wireless, but there's also migration opportunity from 4G to 5G to improve the customer experience and improve our ARPUs as well.

I think Eric has got his hand up.

I actually just had a question for JR. I think there was a slide where you said you've got like more than 90% share opportunity to attack, which kind of implies maybe your small business share is, call it, 10% or high single digit. I think you said JR, historically, you were at 15%. So let's say, I don't know, there's like a 6% or 7% share opportunity in there. So I guess my question is that probably equates to like maybe like 300,000 small business subs. So my question is, is that exclusive to the 1.1 million digital first that you've called out, given you're in postpaid, and I imagine digital first would be in prepaid?

Yes. So I think the question is, is enterprise in the digital-first number?

And have I done that math right? And is that broadly the opportunity for you?

Broadly directionally right, the 15% was small business. If you remember on the chart, it was to the left, the 1.7 million footprint. And when we look at the total market, the 5 million handsets, that's where we're saying, look, there's about 10% share broadly of that pool is where we currently sit.

Yes. Another one for, maybe, James. Just on the business mobile, can you help us understand, I guess, the opportunity in terms of the pace in which you can capture some of that market share? I think in consumer, we've sort of been given a rough guide around 2 million customers churning each year. What sort of metrics are there for business mobile? How quickly can you capture some of that opportunity?

It's a great question, and there's probably 2 slightly different dynamics. Typically, the small business segment that we talked about typically trades on a more month-to-month style agreement or a low commitment. The enterprise segment, the larger businesses are typically on a 2- or 3-year contract life cycle. So it really depends on who comes to market in the bigger business, how quickly they come to market. We're pretty lean in our organization. So we don't have a huge channel waiting for customers to come. We're a lot more stimulating the market with a pretty lean channel. So if I was giving you a range, we probably look at success being somewhere in the region of maybe 20,000 to 40,000 growth a year, that sort of range would be a channel running at full capacity. And then obviously, if we're getting to that level and we're being successful, then we'd look to scale up further.

I think we'll go Nick and then Lucy and then Entcho and then we'll break I think.

Nick Harris from Morgans. Just a question on the NBN side of things. You talked about aspirations to decrease churn by about 4 percentage points over the next few years. I don't suppose you'd like to give us an idea of what churn looks like now or even relatively how it's been trending over the last couple of years?

Yes. Look, we don't release our NBN churn numbers. I don't think the market really does either. But if you look at, say, our churn has been worsening. The trend over the last couple of years has been worsening. The market has got hotter and hotter with more promotional activity, more investment in marketing and spend and more and more players. And so it's a very fragmented, very aggressive market. So for us with a large customer base, the trend over the last couple of years has seen that increasing slightly, not dramatically, but slightly. But we do feel that we have turned the corner on that with some of the activities that we've now got underway, and we're already starting to see those improvements. So that 4 percentage points, I think, is a -- there's a good level of confidence that, that number is something that's very achievable for us over the coming period. If you wanted to benchmark somewhere, like we don't release NBN numbers, the market does release postpaid churn numbers. Postpaid churn numbers, I would assume at the market level are lower than NBN churn numbers. So it's north of that. And that's probably about -- that's how I would summarize it.

And just one more, just on the mobile side of things on the 5G advanced, I guess, for most consumers, speed aside, they didn't really see much of a difference from 4G to 5G. As 5G advance starts to kick off a little bit more and you can do splicing and various other things. How are you thinking about segmenting that market to, I guess, differentiate the network quality? Can you give us some ideas of how you can monetize 5G advanced?

In terms of fixed wireless or in terms of -- yes, look, Jonathan's got some thinking, I think, in the business space around splicing and opportunities there. In the consumer space, we don't have plans locked in. There is definitely opportunity there. And I think if you look at global markets, in some markets, they're using it to provide extra value in higher ARPU plans and things like that. The market in Australia is very much around higher plans have more data, and that's about the only kind of difference. So maybe there's opportunity down the track for those kind of things that happened overseas, but it's not -- it's very early in the thinking and that capability, certainly from a network side, from our side.

Lucy?

I've got a couple of questions. So just firstly, on postpaid and that kind of retail footprint that you guys highlighted is quite critical in maintaining that customer base. What are the strategies to, I guess, reduce the cost to serve because it is very, I guess, headcount heavy and like rent heavy, et cetera. Like is there a target for further retail footprint reductions? What's the right balance there?

Yes. I'll touch on that. So as I mentioned, we've done a 20% reduction already. We continue to look at the footprint to look at how we can optimize it, and that will happen into the future. And the way we look at that is we look at different areas. We look at where there's opportunities for customers and then where are the right places to have those stores. And so that's how we approach it. So it's less about -- we do have a target, but it's less about hitting a target, but it's mainly around having those retail stores in the areas where we can maximize the store economics. And in terms of the cost and the productivity, the stores play 2 roles. So stores play more than a role of just traditional sales channel. I mean there's customers come in, obviously, they want to talk to someone, they want to look at handsets and they are an important sales channel. We do have a lot of customers that come back into the store. And quite often, we want to come back and talk to the person that served them in the first place. And so what we're trying to do is then integrate digital more into that sales experience. So when they leave the store, they're okay with the app, they know what to do. They know how they can get everything answered that they need in the app moving forward. And so sort of putting that into part of the sales experience that we have is really one of the critical things we're going to do to reduce that demand.

And then just one piece on marketing spend. I mean a lot of the growth now is in the digital-first brand. So how are we thinking about the allocation of marketing spend towards core Vodafone versus like, say, felix, TPG, et cetera, moving forward?

Yes. We've done a lot of work on our portfolio investment strategy. We're very, very clear on the role of each brand, which was what I spoke about. We're also very clear on the customers that they serve. We've also broken it down to the unit economics of each brand in each product. So we have a very clear investment strategy to ensure that we are driving those dual levers of both revenue growth and subscriber growth.

Entcho?

Thanks, James. I've got a question also on Slide 46. I wonder whether you can talk about the delta in margins between the Digital First brand and the postpaid brand, both in percentage and dollar margins. I mean I appreciate the cost base is 65% lower in Digital First, but you look at the ARPU, it's almost double in postpaid. So could you perhaps give us some color around the margin differential between the two?

Yes. Look, it's obvious looking at the slide, you can see that it's still a higher ARPU. It's a higher-margin product, the postpaid product. So it has a higher cost structure and it has a higher ARPU. The net of all of that is a postpaid customer is still, at the moment, worth more at a margin level than a digital subscription brand customer. What we do see is opportunity to continue to improve the cost structures in both of those products and improve our margins across the board. So we see the digital-first brand is really -- approach really as a -- it's not prepaid, it's not postpaid. It's kind of in the middle. It's a higher ARPU, higher margin kind of midrange product that as customers, if they're looking for value and coming out of the postpaid segment, they can move there and can have a great value product and a great experience but good margin. So I don't know if I can give you more than that, Entcho, but it's obviously -- it's a -- look, at speedy, there is no doubt postpaid still remains a higher-margin product for us. And that's probably evident in the 70% of the revenues in the market is still kind of sitting in that postpaid segment. Yes. So it's -- for us, it's not substituting postpaid. It's really just a multipronged approach to try and as profitable as we can tap into that high-margin postpaid segment, tap into that 2 million switching pool and then profitably grow simultaneously the value segment. That's kind of how we see it.

No, that's useful. And just a quick follow-up. I mean a similar sort of question within postpaid, if we look at business versus consumer, are you able to talk about the ARPU and margin profile? I mean, I appreciate there's only so much color you can provide, but what does a business customer look like? And I sort of see the opportunity, but is there almost like a bit of an ARPU drag as you grow business? I know it's probably value accretive, but how do you think about that? What are the relative margins? And JR, any more color you can provide around? I mean, pricing is obviously different. We can't track it as easily. You've got individual contracts, all of that stuff would be useful.

Yes. Great question, Entcho. The simplest way I'd describe it is there's almost 3 lenses you should look at the customers in an ARPU sense. Group 1, let's say, lower would be typically very large fleets or government just because the economies of scale are so significant and our channel costs are relatively low. It's not a per subscriber transactional channel cost. It's a deal-based transactional cost. So lower ARPU, lower transactional costs, good margin. Group #2, that more core SME customer, typically a mid ARPU, less investment from a handset perspective than, say, a consumer postpaid and a bit more discount versus a consumer postpaid, therefore, a mid-ARPU. Still relatively low channel costs, although we do use a bit more indirect channel in that segment. And then the very small business, typically would be higher ARPU, very, very similar to consumer postpaid with some of the same dynamics on channel costs because we're typically using similar channels. And the big driver there is shift to online, as we talked about, shift to digital and reducing the reliance on physical retail channels. But broadly speaking, they are the 3 groups that sit within what we call the B2B segment.

And in aggregate, do you expect growth in business to be dilutive to ARPU to some extent? Does it depend on which bucket that growth comes from?

Yes. I mean at a company level, I think it will be dilutive to postpaid just because all of them are growth engines for us. So at a company level, I would imagine it would dilute the overall ARPU number if we manage to get significant scale relative to consumer. However, it's all accretive in terms of actual value to the business.

Thank you for your time this morning, and it's great to be talking with you today. It's also good actually not to be so focused on historical results performance and looking towards the future. The key takeout from today is that we expect to drive high-quality cash earnings growth over the medium term. It's going to be driven by, firstly, running our network smarter, including infrastructure network sharing, our operating leverage, lower CapEx, driving a simpler business, lower borrowing costs and noting, of course, that we structurally improved our financial position with $2.7 billion of debt reduction last year. Today, I'm going to cover 3 topics. Firstly, the shape and outlook for our shareholder value drivers; secondly, how our CapEx and D&A is evolving over time and our funding and leverage. I'll start with shareholder value drivers. And specifically, the purpose of this slide is to show how the compounding impact of revenue growth, combined with our operating leverage drives the lines down through the P&L to accelerate profit growth. We expect Mobile Service Revenue growth to be ahead of Australian population growth, driven by a balanced approach between both ARPU and subscriber growth. We expect Gross Margin growth to be ahead of Service Revenue growth, driven by on-net mobile economics, but also due to our network sharing agreements. Here, I'm talking about our long-term MOCN regional network sharing agreement and our long-term TOWFA agreement with Vocus. These agreements or the cost under these agreements do not grow as our customer numbers grow or as our data consumption grows. One small note on home broadband. We see a flattish outlook for home broadband margin given NBN competitive dynamics, but it's important to note that home broadband margin is supported by on-net FWA growth. We expect EBITDA to grow faster than Gross Margin growth. That's driven by our previously communicated commitment of $100 million worth of OpEx savings by FY '29 pre-inflation, driven by being a far simpler digitized and automized business that you've heard today, combined with the workload demand from our transformation programs coming off. Now it is true that inflation is running and is higher and is increasing. And it certainly appears that our inflation rate is going to be ahead of the RBA target range of 2% to 3% for longer. But we're very confident in our ability to maintain the growth of OpEx well below inflation as we have been doing. We expect NPAT growth to be ahead of Gross Margin -- sorry, EBITDA growth, and that's driven by a combination of factors. Firstly, lower depreciation and amortization driven by a combination of factors, but the cumulative effect of lower CapEx additions flowing through to D&A, lower spectrum amortization, but also the completion of our historical customer base amortization from the merger, which completes in FY '28 or mid-FY '28, and we get a full benefit in FY '29. In addition, we get lower borrowing costs given the $2.7 billion debt repayment and debt cancellations of FY '25. Okay. Turning to free cash flow, ROIC and dividends and starting with free cash flow. That improvement in operating earnings clearly flows through to cash flows from operations. Combined with lower CapEx, combined with lower borrowing costs from the significant debt payment of last -- debt repayment of last year improves free cash flow. ROIC also -- or the numerator ROIC also gets the benefit from that improvement in operating performance. The denominator of ROIC gets the benefit and is supported by that lowering of CapEx additions, combined with the enduring benefit and impact of the handset receivables financing program. We expect to grow and maintain ROIC above WACC in the medium term. Dividends, we restated our dividend policy last year, which is really simple, which is to grow our dividends in line with sustainable growth in our cash earnings and our profitability, and we expect to do just that. There is no doubt that Mobile Service Revenue growth is the engine room for both profitability growth and cash flow growth. We expect that to come from a balanced approach of both ARPU and subscriber growth. Now in any 1 year, one may do more than the other or even within our brands, the mix may be different given market competitive dynamics. But the point is our focus is on profitability, and it will require a continued balanced approach to both ARPU and subscriber growth. Now we do see a continued mix shift to the consumer preference for subscription digital brands. And in addition, in our case, we also see a mix shift in subscribers to business, enterprise and government customers. Mobile market subscriber share growth will come from a combination of, firstly, consumers and business customers reacting positively to our very deliberately distinctive brands and propositions and go-to-market strategy you just heard before the break. It will also come from continuing to improve network perception, network consideration and the received experience that our customers get every day. Noting, of course, the doubling of our network last year or more than doubling of our network last year dramatically increased our addressable market. It's also important to note from an economics and profitability point of view that we expect to grow digital mix across all our brands and propositions. And as Vanessa pointed out, that lowers the cost to acquire, lowers the cost to serve and lowers the cost to retain customers, driving profitability and cash earnings growth. Turning to CapEx and D&A, but I'll start with CapEx. Our CapEx outlook remains the same. That is from $550 million to $650 million from FY '27. Now we've said -- and that comes from the completion of our 5G upgrade, but also the completion of our IT modernization. We said at our February results that we expect FY '27 CapEx to be at the top end of the range. And our FY '26 guidance is $750 million, as you know. And that's due to that phasing of 5G over the coming years, which will be completed around mid-FY '29. It's also important to note within that guidance CapEx number for '26 of $750 million, there's about $100 million of capitalized commissions. So, as our digital mix increases over time, so will that number. Moving to depreciation and amortization. We expect more than a $200 million saving to depreciation and amortization come FY '30. And that's driven by a few factors. Firstly, the cumulative impact of lower CapEx additions, particularly within network and IT CapEx as that reduces over time. In addition, lower spectrum amortization come FY '30 to the tune of about $100 million and that removal or completion of the historical customer base amortization in mid-FY '28, which delivers a $50 million benefit in FY '28 and $100 million benefit in FY '29. And as I noted earlier, capitalized commission is expected to reduce as digital mix increases and it is increasing. And that will also flow through to a benefit to depreciation and amortization. Turning to leverage and borrowings. We paid down -- the first point is we have sufficient headroom to fund our business operations given that cash outlook that I just gave. I mean that's the critical point. We noted we paid down $2.7 billion of debt last financial year, which dramatically reduced, in fact, about -- reduces borrowing costs by about half this financial year. And we have a quite a mature approach to managing interest rate risk. In FY '26, this year's borrowing cost -- bank borrowing costs are hedged to about 60%. Last year, we attained a BBB flat credit rating from S&P and Fitch, and we expect to delever further over '26 and '27 and into '28 before the first spectrum payment towards the end of FY '28. The rating agencies understand the lumpy nature of spectrum payments spread over that period that Inaki showed earlier today. And we expect the rating agencies to continue to see through those spikes in leverage as they have been doing. Because we paid down $2.7 billion worth of debt last year, we have no bank debt maturities until FY '28. Over the next 6 to 12 months, we intend to extend the tenure of that debt, but also reduce the concentration of our bank debt maturities. Turning to cash flow. We expect to grow high-quality cash earnings growth over the medium term. The graph on the right shows our free cash flow to equity. But for '25, it excludes the proceeds -- cash proceeds from the sale of our business to focus last year. It also shades out the one-off nonrecurring benefit that we got last year from the handset receivable financing program and specifically the sale of the back book. As we said in our February results, on a pro forma basis, we expect FY '26 growing EBITDA, combined with lower borrowing costs to broadly offset the loss of 7 months of revenue received in '25 from the business we sold to Focus, combined with a full 12-month impact of the new commercial arrangements with Focus, pre-separation costs. From there, we expect our cash flows to grow, driven by Mobile Service Revenue growth through a balanced approach between ARPU and subscribers, operating cost leverage, specifically the $100 million worth of cost savings by FY '29 pre-inflation, lower CapEx and lower borrowing costs. Turning to dividends. We updated our dividend policy last year, really simple. That is to grow dividends over time in line with our sustainable growth in profit and cash flow growth. At our current franking of about 30% using last night's share price close, our dividend yield is about 5.1%. We expect to maintain that franking broadly in the short term. But as we -- as our profits grow and we pay a little bit more tax, we'll grow that franking over time. Turning to ROIC and WACC. As I said at the outset, we expect to grow and maintain ROIC over WACC in the medium term. Now the numerator of ROIC gets the benefit of that operating performance improvement that I've just outlined. The denominator of ROIC gets the benefit and is supported by that lower CapEx additions, combined with the enduring benefit of the handset receivables financing program. On this page, I'm referencing industry ROIC over the last 5 years at average of between 7% and 8%. Our NOPAT would have to increase about $120 million on FY '25 reported pro forma results, including FY '25 pro forma invested capital to hit the midpoint of that range. Our WACC is at the bottom end of that range -- towards the bottom end of that range, given our current capital structure and the maturity of our business. In summary, Mobile Service Revenue growth is the key to cash earnings and profit growth, driven by a balanced approach to both ARPU and subscriber growth. Combined with operating leverage being through the simplification and digitization and automation of our business, we expect to take out $100 million of OpEx pre-inflation, combined with lower CapEx, combined with lower borrowing costs, drives free cash flow growth. The combination of those factors drive ROIC, and we expect to grow ROIC and maintain it above WACC in the medium term. And the combination of that high-quality growth in cash earnings and over the medium term allows us to grow dividends over time. Thank you. I think we'll go to questions.

A bit of a long-winded one, JB, just on -- it's a long-winded one on your ROIC targets. Can you just -- sorry, I might have missed it. Did you -- what's your rough estimate on how much your NOPAT would improve?

About $120 million. It was about -- on a pro forma basis, about $320 million, I think we reported at the end of FY '25. And our invested capital base on a pro forma is about $5.9 billion.

So can I ask some follow-ups on that? So like if you were to improve your NOPAT, the first one is, if you were to improve your NPAT by $120 million, does that imply you're guiding for sort of $200 million, $250 million EBITDA improvement over the same time period?

I'm probably going to just -- I understand the math, how it grosses up. The only comment I'd make on that is in the shorter term, and I think we guided to this or gave an outlook on this at our February results, we see D&A in the short term growing around that 1%. So I think you can back solve from there. And I'm just trying to do it live, you probably get close to your numbers. But if you've done it that way, then that -- is that how you've done it? Yes. And I think mathematically, that's correct.

And then the second part is like if you think about that 1.1 million digital subs and then JR mentioned like maybe small business share, maybe 250,000 is additive to that. Basically, if you grow subs by that amount, you would be growing your Mobile Service Revenues like 5% per annum just on subs. My point is, it implies if you hit your digital subs and your SMB share targets, you're going to beat that 120 NOPAT that you've just guided to.

On the math you just outlined, that's correct for sure. And as I said earlier, mobile service revenue is the engine room for both profitability and cash flow growth. And it's going to come from a balance of ARPU and subs. And as I stressed, in any 1 year, that mix may be different. In any one half, the mix might be different. But we're confident in our ability to drive Mobile Service Revenue growth based on that strategy you saw today on the deliberately distinctive brands and propositions, plus the opportunity, we're coming off a low base in business, enterprise and government. That's a hell of an opportunity.

And the last part, can we just piece this all together for free cash flow implications of free cash flow. So okay, let's say, there's a $200 million, $250 million EBITDA improvement. Your CapEx is also dropping by $250 -- so that's sort of a $450 million free cash flow improvement already pretax, pre-borrowing costs. Is that...

It's about right. Yes.

Okay. And what would be the 25 base that you're applying?

From my right calc? Invested capital base?

Free cash flow, sorry.

It's off our reported pro forma free cash flows that applies to.

I had a question just around the spectrum payments. And you've given us some breadcrumbs in the presentation around your ability to fund those spectrum payments. But -- so what's your thinking now that we've got some certainty on to exactly what those payments are going to be? How do you think about the mix between further borrowings and using your free cash flow in order to fund those spectrum payments? And maybe just -- I don't know if this is a question for you, but is your thinking that you're going to relicense all of the spectrum that you're using at the moment? I mean some of your competitors have spoken about some spectrum being left on the table given the high cost. I don't know if that's one for you, John, but on the payment side, it would be useful to hear.

Yes. So maybe I'll just answer the math question. I think the first point is we maintain a lot of optionality to fund our spectrum for a few reasons. One, the spread of the spectrum payments is over multiple years, all the way up to 2032. The second thing is we have a strong free cash flow growth outlook by any measure. The combination of those 2 things give us optionality on how we choose to fund these spectrum payments. Now given that spread of time line, we're going to hold our options open based on the conditions of the market at that time. But it wouldn't be unreasonable to assume that there would -- one option, one real option is to fund those through a combination of in-year cash flow and debt, noting that we expect to delever further over '26 and '27 and into '28, noting the first spectrum payments not until the end of FY '28.

Okay. Cool. And the way the spectrum payments going to the ROIC calc as well, I assume when you make those payments, that gets added to the denominator.

Of ROIC.

Of ROIC. And so if we're thinking about your targets, are you maintaining those targets irrespective of those spectrum payments?

Absolutely. So there's a few factors. You raised a good point because the amortized base of spectrum has come down at the time of renewal. But I just want to make a few points there. Again, the spectrum is phased over time. So that's what you lump, not a lump sum. The cumulative impact of lower CapEx additions in network and IT assets does take some time, but it does come through. And that also benefits the denominator of ROIC. And there's a slight -- there is a slight mix that over time, a greater portion of our CapEx is software. It does have a lower useful life. But the combination of all those factors do overall support a flat to declining invested capital base, noting your point that at any point in time, it might just bump up a little bit as spectrum gets put on the balance sheet when we do the payment for that spectrum.

Okay. And are you happy to take a stab at the renewal question?

Look, let's just assume we do renew at all. I think the key thing is how do we fund it and my answer holds on how we fund it.

Sorry to jump in, John. I just want to make sure everyone is abundantly clear on that point around the $120 million NOPAT. That is an illustration of what is required to get to the midpoint of that notional 7% to 8% range. As you pointed -- I think you were alluding to in your question, Eric, obviously, there are building blocks in the materials that we've presented in the strategy broadly that add up to a greater amount than that. I just didn't want anybody to misinterpret that, that was presented as the limit of the ambition. I just wanted to be abundantly clear.

Yes, it's a good point of emphasis. I referenced that 7% to 8% average industry. And the $120 million is just an example of which -- how much NOPAT has to grow to hit the midpoint of that average of the industry. Noting I also said that our WACC is at the lower end of that range. It's not a point of ambition. It's not a point of our expected growth. It's just to give you some really simple math to understand how ROIC grows over time and firstly hits WACC then exceeds it. I think that's it. Thank you.

Thank you, John. By now, good afternoon, everybody. So past noon. So I will touch briefly technology trying to be crisp. I know we are overrunning quite significantly. Probably there is also a couple of minutes for Q&A in the end. So there are several macro trends that are shaping our industry and at least 5 of them are top of mind from my perspective, and I will touch a few of them. For the others, maybe Q&A will be helpful. So I'm thinking about, first, obviously, AI and advanced analytics. Second, the evolution of connectivity with ubiquitous connectivity and high-performing connectivity. Distributing computing is the third one. The fourth immersive reality and the new devices that are driving this. And last but not least, all the elements around data privacy, data protection, data sovereignty and cybersecurity. So I will touch a couple of them in the next few minutes. And clearly, I cannot start my part without talking about AI. So it's true that so far, probably at TPG Telecom, we have not been very vocal about our AI strategy. And there is one reason for that. We like to talk about things when they happen and even better if we make them happen. So that's the reason why today, we are touching this. It's so important, and you have seen in several interventions of the colleagues. But also we want to demonstrate live connecting to our platform that is already ingesting billions of data in order how we can leverage on the power of AI using technologies that before were not available. Hence, the outcome was not possible. So it's also very important to describe what is our imperative from an AI perspective. So we don't want to adopt AI just for the sake of the exercise or because somebody else told us or because it's so cool that we have to do that. We want to adopt AI to make a positive impact for our customers. We want to adopt AI in order to improve the customer experience. This is our ultimate goal. And by the way, there are not so many use cases already available that we can copy from others. So it's really working and moving in a sort of unchartered territory. In our journey, we have also learned a couple of things. The first one is AI is really ineffective and even dangerous if it cannot count on a very strong foundation. That's the reason why we have built a single IT stack, and now we are finalizing the migration of the TPG customers, while the Vodafone consumer and business customers are already there. But also we have built a very modern data platform to support AI as well. The second is that in terms of implementation, it is by far more effective implementing AI domain by domain inside the company or subdomain by subdomain, not use case by use case. So, the granularity of the AI implementation, if it's too deep, is really making it very, very inefficient. And in terms of implementation model, we adopt an agile model. So it's a great balance between a federated delivery model on one side, but also with the strong governance, which is bringing strong guardrails to a very powerful engine. And in this case, you see here on the chart, we are talking about speedboats and jet-skis using a little bit of maritime language in order, again, to demonstrate the velocity and the agility of these initiatives. The speedboats are initiatives that are related to a domain, but they have also strong interdependencies with other domains and the jet-skis are fully localized on each domain. So you could say no large cruise ships onboarding a lot of people. Today, we have none in front of us, but also no supertankers that could be slow and even stack in some places around. So having said that, I want to show you one of those speedboats. I'm very proud of because probably this is one of our flagships. And this is really touching and improving the customer experience at its core. So as we said before, our network is the stronger ever we had, yes. So in terms of further improvement on the customer experience, the pre-existing technologies could not move us to the next level. And only with high adoption, we can achieve a granularity that can give us the next boost. So, we have already built 3 models. The first one is related to the experience of our customers in mobility. The second one is related to the experience at home with the fixed broadband. And the third one is particular view for our enterprise customers in order to have a very real perspective of the performance of their fleet. This is not a slide. As I said before, there is a full platform that has been implemented. ingesting 1 year of data regarding all the mobile devices and a good part of the fixed broadband as well. So here on the left, you see the snapshot of what is the mobile experience from a customer. In terms of simplicity, I've taken my mobile phone. So no secret, I can disclose it. In essence, we have -- the model has learned to calculate the customer experience for what is as close as possible to net promoter score of the customer. And this is due to the fact that we can triangulate the data that are coming from the network that the customer is attached to, so the mobile sites that are more relevant. but also including crowdsourcing data, including customer complaints from other customers that are touching the same areas, even churn events and also balancing this not just with my experience, but also the experience of the other people that are using and consuming network connectivity in the same areas. And this is an index that is going from 0 to 100, similarly -- very similarly to net promoter score from 0 to 60 means the detractor, 61 to 80 means neutral and above 80 means promoter. And in this case, obviously, I'm a promoter. I'm living mostly in Barangaroo or working in Barangaroo. I live in just on the other side of the harbor and the system is mapping all those positions and then deriving what is my customer experience. But what I want to show you live and in this case, I really hope I will not encounter any demo effect is the solution per se. So, I'm moving to show you vice versa, the experience at home. So, so far, in terms of understanding what is and what was, better to say, the customer experience at home, we were just monitoring the connectivity that was provided by NBN, checking if the speed was aligned to the nominal speed provided and just maybe outages that were part of unfortunate situations. As you know, the experience at home is by far more complex than that. It's regarding the router that you have at home, is regarding the position of the router, is regarding the WiFi and it is regarding all the devices that you have. So all of this is forming your experience at home, not just if the NBN line is up or down or if it's slow. Obviously, these are very important factors, but are not the only one. So in this case, I'm showing you a couple of quick snapshots. The first one, and I have anonymized data. So in this case, it's not me, and I don't know even who is, but I think it's a very interesting case. So it's a case of a customer and based on what I said before, similarly, we have calculated the perception of that customer is a 65, which means it is neutral, but definitely not great. And it has been -- you see in this graph, more or less the same since a while. However, I can tell you, I have checked the customer had no outages and the throughput is fine. However, now we have the opportunity to go significantly deeper and to scan many dimensions that are forming the customer experience. From the stability of the device to the location of the router and the WiFi performance in its different forms, including also if the customer has maybe some aged devices that are limiting performance. In this case, the performance is affected by the interference of the WiFi. Hence, the customer perception is not great. But what we have also built is the opportunity to go deeper one level. So the customer in this case, you can see here, has 3 devices that usually are connected to the WiFi home network. Only one is the most important and the most relevant for the customer plus the other 2. But the one that is here is the one that is driving by far more the customer experience. Well, this device, in particular, has significant problems in terms of interference. And then as a consequence of that, the customer experience is not good. There is also a second problem that it has a device that is quite aged. So this is something that we have not treated just for the purpose of this exercise, but for similar cases, it has already triggered, as we said before, James mentioned that an automatic restart of the device. So I want to show you very briefly a second case in which the customer has gone through this, yes. So in essence, we were starting from a position that was similarly with a low perception. You see the perception is around 60 to 65, so boarderline with the detractor experience. And then since the restart that we have of the modem, now the experience is significantly improving. So, you can understand how many actions proactively we can take, the fact that, obviously, AI agents can do this and so on. So, it's now a significantly better performance that the customer enjoys. There is still some concern also in this second customer for what is the aging of some of the devices that he has or she has in their home. But again, this can trigger another proactive communication to the customer as well. In other cases, when we have vice versa, the CPE location that is not optimal, so the router is not positioned, -- we can proactively communicate to the customer that. And for example, in the installations with many devices, definitely, it can be also an upselling because we can propose a mesh network based on the latest devices that we have available. So, this is a very quick snapshot just to give you the sense of what does it mean AI in action in order to improve the customer experience, as we said, as part of our imperative. Moving back to the presentation, I want also to zoom back a bit or zoom out a bit and talk about the entire network strategy. So I think here, we are unique in market because we are able to combine great innovation on one side with a very, very capital-efficient and cost-efficient network. And usually, when I talk about that, I use this diagram. I will not go through all the different elements, but I want to point out a couple of them. So starting from the infrastructure that it has at the bottom in order to build a smarter network. And here, we have done, as you know, a lot of work in the last few years. We have been very clear about our strategy, very focused on network sharing to create value for our customers and also for our shareholders. We have done great progresses starting from what was just passive sharing agreement with Optus in the urban areas. We have added the active sharing agreement in regional. I'm super proud of that, and you have already seen all the contribution that this has provided to the business and to our customers. Last year, we have also completed the fibre agreement with Vocus. And now all the fibre backbone that is connecting intercapital is provided by them, but also all the fibre that is connecting our mobile sites and again, sharing resources to create value. And the next frontier is LEOSat, and I will touch it in a second. I suppose there are also some questions in the room. The layer above is the layer of the enablers. And here, probably you see this good balance between innovation and efficiency at its best. We have talked about network analytics. Very soon, we will talk about autonomous networks and the additional efficiency that this can provide to operations with a dark network operations center. But probably the best kept secret in our architecture is a very modern 5G core network that is probably one of the most advanced in the world. So again, combining innovation with efficiency. And this is also what is really enabling the upper layer, which is the network monetization through the most advanced 5G cases. And again, Jonathan mentioned some of them. There were some questions in the room, and they have also a short snapshot in a couple of seconds. Talking about LEOSat. As a technologist, I'm very excited because this technology is really fantastic if you think of the way in which it's designed. And I think also in terms of business, definitely, this is bypassing the last competitive barrier that is still existing in Australia around the coverage in some remote areas. So I would say, also from that perspective, fantastic opportunity. However, as a technologist, I want to align all the dots. So in essence, it's not just enough, and I say in inverted commas enough because it's very complex to have the constellations ready. And we know at this stage, especially for voice and data, there is nothing yet at that level of completion. But on top of that, in terms of some architectures, there is also the need to build earth stations or ground stations. And on top of that, there is the need also to select the best spectrum. And today, there are still 3 options on the table, which, by the way, trigger also a significant impact on devices because despite what we are saying so far, there is no standard device that is supporting a carrier-grade voice in market today and the standards have been just frozen in December last year. So, there is definitely a synchronization across 4 pillars that has to happen, and it will take years in order to have a reliable service. What we have seen so far is just a small part of that. The other important point, and I say this, it's not a matter of bias. It's a matter of physics. LEOSat networks cannot replace mobile terrestrial network. They are a great complement for remote areas. LEOSat technologies cannot provide indoor coverage. They cannot provide the capacity that is required in this room or just outside in The Rocks on CBD or in any other place of Sydney in order to sustain all the traffic volume that is needed, okay? So we see it as a great complement of the mobile terrestrial, not a replacement of the mobile terrestrial. And last but not least, there is also the legislative factor in this. You have heard about UOMO, this acronym, Universal Outdoor Mobile Obligation. Australia is really a first in terms of regulating this space. There is a bill that has been drafted. We have contributed to the discussion with that, and we are still contributing. It's not a surprise that Australia is first because Australia is one of the best use cases for LEOSat as well in the remote areas. But nevertheless, there is still a lot of work that has to be done. So this is our position around LEOSat. Now to conclude, and I hope I've managed the time at its best. Talking about advanced use cases, we have briefly touched before. Again, this is a great opportunity. And I think here, we have already aligned all the dots, yes. So I would say the network slicing is potentially to support our customers in their AI adoption journey, more evident and more explicit for our enterprise customers. They are demanding connectivity to support the AI adoption. And step by step, this is also coming for consumers, especially if you think about the newest devices like smart glasses and others, definitely, they are powered by AI. So the AI adoption for the consumer is coming probably in a more implicit way, but nevertheless is going on. And here, we are talking about network slicing was already mentioned before. In essence, this is the greatest enabler to move from a pure connectivity that was almost undifferentiated to an outcome-based connectivity in which we can predetermine the performance of the network preserving either capacity or throughput or resilience or latency for specific use cases. And this is also very cost effective because it's not building networks on top of other networks, but is a sort of virtual partition of the network that can be also flexibly designed. The second use case is the network APIs. Again, very simple. Today, there are capabilities inside the network that we use to provide connectivity like the identification and authentication of our customers. we can expose with the right level of security, similar capabilities for other ecosystems in order to enter in the value chain of other elements as well. And then there is a massive opportunity in terms of what is more traditionally the IoT, the Internet of Things that is moving toward what is becoming the machine type communication. On one side, massive and very simple or on the other side, more critical, especially when we think about industrial automation or autonomous vehicles and autonomous system controls. All of this is going to bridge between 5G and 6G. Most of this is already available with 5G, but it will be further standardized in 6G when 6G will come in the next decade. So -- and again, here, I would say we have already built the capabilities, and we are ready to serve our customers at our best. Okay. That's all from me. I don't know if we have time for questions. James? Okay. Great.

Giovanni, -- just really interested in the lower thought LEO stuff, particularly your comments around the universal outdoor mobile obligations. Could you give us some guardrails, I guess, or how should we think about what that all means? Is it likely the satellite operators will purchase spectrum in Australia? Or is it more likely the incumbents will purchase spectrum, which you'll kind of spectrum share with the LEOs? Just help us understand the practical implications.

Yes. So Obviously, it's a big topic. And by the way, in the afternoon, I have a speech at the Comms Day exactly on those topics as well because it's definitely a big part of our focus today. So spectrum is definitely one element, and there are 3 options today. There is to use a low band that is already allocated to the mobile terrestrial networks, which means you need to carve out spectrum, but especially if this is in remote areas should not be a problem. The problem there are the standards in terms of maturity of the standards that are not yet there. There is mid-band spectrum that is also allocated to the mobile terrestrial operators that could be used. And this is what Starlink has done so far in general terms. And last but not least, there is a special band that is in the range of the 2 gigahertz that is theoretically dedicated or potentially dedicated to the satellite. And today, this is not allocated yet in Australia. And there is a process that is starting, but it's still difficult to predict if it will be allocated very soon. There are obviously pressures. Now you were alluding at 2 options. So one option is to allocate it -- by the way, ACMA has been quite clear, it will be allocated to an auction, yes, because it's unallocated spectrum so far, so differently from what we have discussed, for example, with John. And one option is to have the satellite providers as participants of that auction. The second option is to have a broader contest between all the possible parties, including the mobile network operators. So we need to see, and it's very important, the regulation element on that. So the UOMO today is setting very clear expectations regarding the mobile terrestrial networks. It's not setting any expectation for the satellite providers that are really a crucial part in all these discussions. So it has to happen and only this could unlock some I would say, decisions on the spectrum as well. So I would say, work in progress.

I just had a question on 6G. I know it seems quite far away, 2030 is kind of what you flagged in the presentation. But any early thoughts on kind of the CapEx requirements? Could we see another heavy kind of CapEx period?

Yes, absolutely. So first of all, as you said, we don't foresee a 6G implementation before 2030. And by the way, the most recent forecast probably is pushing it a little bit later, 2031, 2032, which is definitely beyond also the guidance that we have given in terms of CapEx envelope, just to be safe, clearly. However, if you compare 5G with 6G, it will be very, very different for at least a couple of reasons. The first one is specific to TPG Telecom. So when we implemented 5G, there was also the ban of the Huawei technology. And by the way, at that time, we were 100% with Huawei technology, both in radio and in transmission. So it was a huge effort with high level of demand in terms of CapEx also to replace all the equipment. And by the way, we are far away in the -- well progressed in the journey so far. So 6G will not have the same burden, first element. Second element, I was talking about core network, for example. Again, 6G demanded a new core network. And then we have migrated all the customers and the traffic, even the 4G on the same, but initially, it was brand new. It will not happen for 6G. So it's clear the direction from the network manufacturers that it will be an upgrade, yes. So I would say the intensity of the CapEx intensity of the 6G implementation is not absolutely comparable to the 5G, at least for these 2 reasons. Yes.

Can I just do a quick follow-up to Nick's questions on satellite, Giovanni? Can I just run a hypothetical by you? And let's say that 2.5 gigahertz MSS spectrum is auctioned and let's say, Starlink wins it and let's say, I don't know, they get 15 megahertz or something. So the question is, what can you -- like what sort of population base can you like realistically cater to on a stand-alone basis with 15 megahertz? And if it's not much, then is the realistic scenario in that even if Starlink wins that spectrum, are they just going to end up licensing it back to the MNOs anyway, especially with the UOMO? If you could just play that out.

Yes. So I think, again, you see that in some way, there are proportions that make sense, yes. So the 15 megahertz definitely can provide something that is good for remote areas that are very low -- have very low population. So in this case, you can provide voice when the standards are coming, by the way. You can provide text from now. And later, you can provide data, I would say, a small portion comparable to a low 4G at this stage in urban areas, yes. So that's the expectation for 15 megahertz of spectrum. You can imagine this cannot be what you need in the urban areas when you need hundreds megahertz of spectrum in order to provide a reliable data connection. My laptop here is connected to 5G, for example, was not connected to the WiFi, but obviously, as absorbing quite a significant amount of data or even your tablets and smartphone. And then if you put all of us in the same room, clearly, this is not enough, the 15 megahertz of spectrum. So yes.

And did you have a view on like do they end up then licensing it back to you as well even if Starlink does get the spectrum? So if Starlink did pick up that spectrum, would they just end up licensing it back to, say, Telstra, Optus and Vodafone?

I think it has to be seen, frankly speaking, yes. But it's reserved also from an international standards perspective only for satellite operations. Yes.

Giovanni, I've got I've also got a LEOSat question. And I'm just curious, I mean, I take points that you've made, although I think people sort of look at the SpaceX IPO and they look at the big TAM around mobile. And I appreciate physics is physics, but Elon can do no wrong. So I'm sure there will be sort of questions continuing to be asked. But I suppose my question is slightly different. Given that we're going to see these developments, these LEOSat developments over time, can that help you close the network gap to Telstra to some extent in those regional and remote areas? Or do you think it's just too heavy a task to be placing on a satellite constellation? I suppose that's the first question. How does that -- can satellite developments mean that regional and remote areas, you're actually starting to rely on LEOSats? And then secondly, how do you think about the cost? Because I suppose that's the other element. If there is heavy usage, presumably, there's a cost which is -- well, there is a cost that you're going to be paying back up to Starlink and do you have to factor that in?

Yes. So the cost is really the consequence of the market law, yes. So the fact that today, there is a monopolist is creating a certain level of cost. As soon as there is competition, and we think there will be competition, the costs will reduce significantly, and it will become accessible. So now this is a crucial point also in all our discussions. So we want to have competition. We want to have options around this. We cannot rely on a single provider just before -- because they are ahead and already out of the blocks compared to others that have to come. So -- and you see with all the respect, the Starlink strategy is trying to push as fast as possible, trying to lock in decisions in a very premature phase in order to avoid that competition is achieving the same level and is providing a similar proposition. So I think AST is working hard, but they are a start-up. Now I think positive news for this competition is the fact that Amazon with Project Kuiper has finally declared what they want to do in terms of direct-to-device. -- with the recent acquisition. So definitely, it will create more optionality plus Link and others. So I would say, in a couple of years, we will see definitely competition from this perspective, hence, a cost that is definitely becoming more palatable for all of us. There is definitely the opportunity. And I'm still -- let me say, I joined 4 years ago coming to Australia for the first time. And it was incredible from my perspective to see how the competition was driven by this differential factor in terms of geographical coverage. It doesn't happen anymore in Europe. It doesn't happen even in Africa, in other countries, but it's still happening in Australia. So LEOSat can give a very efficient and economical way to cover areas where, for sure, you cannot build towers, yes. But again, it has to come at a cost that is proportional to what is the addressable market and the needs of the customers, not disproportional. And now I leave to Inaki for his closing remarks. Thank you.

Yes, I'm not going to do much of closing remarks. I just wanted to thank all of you. I think we run a little bit out of time. Thank you for being here today for a few hours. We told you a little bit our story, how we can build a company that is now, I think, first, mobile-centric. Second thing that is important is within a structure of infrastructure ownership that gives us a very smart way to allocate our capital, low cost, lean. And I think that this operational leverage is super important for us at a time where together with our market-leading network sharing arrangement, we do see significant opportunity for growth on our brand. And ultimately, with all this financial discipline and efficiency, the ability to continue growing in this market in the sector that is more essential for our customers, but also where we see the huge opportunity for us, both in enterprise and in consumer continue to grow our returns for our shareholders, and this is all what we do at the same time that we are giving our competitors run for their money and giving Australian customers a really good service. So that's really what we are about. Thank you very much for sharing the morning with us. And I think there is going to be a little bit of lunch for those of you that can still don't need to rush. And the management team will be around. You can ask all the questions. So thank you again.