TPG Telecom Limited (TPG) Earnings Call Transcript & Summary

Good morning, everybody. Thanks for joining us. We've got a few people still coming in and finding their seats, but I think we'll get started very soon. Welcome. Thank you for attending. We are really excited to be hosting TPG Telecom's first Investor Day. We've got the whole executive team and a number of other members of the senior leadership team here to present and mingle with you, and we're really looking forward to talking to you and to answering your questions. I think we are notwithstanding that the cruise ships are back somewhat blocking the view, but I think we're incredibly fortunate to be able to do this kind of event in this kind of place. Firstly, because it's been way too long not being able to get together physically, but also because we're very fortunate that we are in the best city in the world, possibly in the best room in the best city in the world to do this. So it's important to acknowledge our ability to do this and our ability to be in this room and in this place to acknowledge our First Nations Australians pay our respects to them and to pay respects to their elders, past, present and emerging. It's also important to make sure that we are safe and that we are comfortable in this room, a few housekeeping matters. Firstly, if in any event that there is a fire or any other emergency that requires us to get out, the fire exit is on the way you came in and out there where we're doing the catering. Follow the instructions, please, of the MCA function staff in the event that we have to get out. Bathrooms, if you haven't located them are either side of the lift, the gents' on this side, the ladies' on the other side. The catering, I'm sure you've all noticed is outside. We'll be serving some morning tea during the coffee break out there and also a light lunch at the end of the event. If we do have to leave the building, the assembly point is First Fleet Park to the south of the Harborside entrants there, where they've hopefully finished assembling all of the vivid equipment that was there yesterday. WiFi details for those who need it are on this slide, I'll just let you all have a quick look, if you want to write that down. I won't try and say that out loud. I also would ask that you just check your surroundings, if you've got a coat on the back of your chair, if you've got a bag on the floor, just make sure it's secure and not presenting a tripping hazard to anyone. And also, along that back wall, please avoid storing things along there. It just gets in the way of the blinds. Today's agenda we'll begin with Inaki and then we'll have presentations from Kieren and Jonathan, then we'll have a short break, cup of coffee, check your e-mails and then we'll go into presentations from Ana, from Giovanni and Grant to close. We'll then have the whole executive leadership team up here on the stage for Q&A. The event is being webcast and due to a few people not being able to attend at the last minute because of COVID, we have opened the webcast for Q&A. So during the Q&A, I'll be monitoring questions here that come online and reading those out. There will be a full archive and transcript of the event made available on the TPG website as soon as we can get it processed. So with that, I'll hand over to Inaki

Thank you, James. Welcome, everyone. I think that before I start, some of you will be observing what a premium experience we get here with the view with this room just to make it clear, so you don't get the wrong impressions. This is actually a really good value. It is very inexpensive to get this room. And this is what TPG is about. So we get the premium, premium experience at the right cost. Anyway, that said, yes, very excited to be with all of you. I think that this is the first time that we do a proper in-person presentation of what we are about. I think that the highlight of the day is actually that after this presenter, you're going to be hearing from the executive team of TPG. And then you are also going to be able to engage with all of us in the Q&A. And I think that, that's an opportunity to really not just get our views on the market and where the company is going, but also to engage with the team that is leading this company. So we will start with that. We will also talk about maximizing our potential. So a bit about what is -- what our plans, where do we see us playing in the future. We'll talk about strategic duration, operational focus. And then I think that we are also going to talk a little bit about providing a bit more guidance around financial frameworks and also how to interpret some of our disclosures in the business. Let me start by saying in 2020, when we started this journey, we set a very clear focus on -- at the same time that we integrate and we deliver synergies to make sure that we keep our eyes on the board to make sure that we have operational focus on the business. There was a time where we were merging 2 businesses in the middle of a pandemic. There was a lot of people leaving the market and affecting us in a disproportional way. And we had also for regulatory reasons, a significant gap in terms of our 5G rollout and all that had to be taken care of at that time. In 2021, we communicate a bit more around the 3 parts of -- the 3 guiding principles of our activity, first, integrate and simplify, second one, win smart and the last one, maximize our potential. Integrate and Simplify was really around creating simple lean, but also in a scalable platform for our technology, people and processes. We were moving from a somehow divisional structure to an end-to-end company, a platform that was looking end-to-end to all our infrastructure or our brands and be able to provide with that the opportunity to scale better. We concentrate on winning Smart, which was taking opportunity of some of the advantages that we had at the time and fixed wireless is an example of all that. And then there is maximize our potential. And I think that this is what I wanted to talk about a bit more today. So what is maximizing our potential. I think that TPG will have a unique opportunity to become Australia's best telco. And we have the unique opportunity to become Australia's best telco for our customers, for our employees, for our shareholders, but also to the community that we operate. I think that today, more than ever, our simplicity and the value that we provide are more relevant. We are a focused company, we provide telecommunication services. We are proud of that. We are not shy of saying it. And we want to be the best at that. I think that that's really our aim. We are also creating a very strong culture in the business. This merger has allowed to accumulate incredible talent around the sector and also a core team of people that share a lot of commonalities about making TPG a great business to work. Our values stand together. So we are creating one company. We are one company, and we operate as one company coming from many different businesses. The second value is we own it. So we take individual and collective pride of what we do. And we are a company of people that are accountable. We are all accountable of what we do, and we have a culture of accountability. We are bold, and that's our third value, boldly go. We really are not shy of taking the bets that we need to take, the right calls. And then the last one, the last value, which is Simple is Better. This is something that has characterized our business for a long time, and we think there is a competitive advantage, especially because we are able to be efficient, but more importantly, we are able to provide a much simple life to our customers. At the back of COVID, customers are experiencing a lot of cost of living pressures. And then we see a telco industry that continues to be squeezed by the NBN cost pressures and also by the fact that there are elevated capital requirements delivering our 5G promise. And I think that this is an environment where our company, our simplicity and the value orientation can really help us to thrive. I think that the pandemic highlight some of the challenges of the company, and I think that we did lose more customers who are more exposed to the international business. And then it also highlighted the fact that our regional coverage was smaller than our competitors. And these are things that we have really addressed and I think that we have put a lot of emphasis in recovering the commercial momentum and more importantly, also in looking at how we find a solution for our geographical coverage, and we will talk a little bit more about that in the Q&A. And at the end of the day, I think that we are now through this merger and some of the changes that we have made, ended up with a company that is going to be able to provide telecom services across all the different technologies. We will be able to do that across all the segments with our emphasis on not just consumer, but also enterprise. And I think that the other thing that will be a significant change for our businesses across the whole country. So we are focused. We are very proud of being focused on telco and on being also a great value provider. This -- like I said, this ambition is quite simple. We want to be the best, the best for our customers, leveraging on our low cost, the best for our shareholders and doing that by capturing more market share, growing earnings out of our leading cost base and also with a highly efficient and also transparent capital management. And then we will also be the best for our people and community by building our position as an employer of choice, and then focusing on the wellness of our people, delivering a sustainable -- our sustainability commitments in customer well-being, environmental responsibility, inclusion and belonging and also on the digital economy. We are entering, like I said, a period of growth, and we do that as a full service provider. In the coming months, we will put a lot more emphasis in providing more depth of granularity into the different targets that we have set as a business. But today, we're going to concentrate on 10 strategic initiatives. So we'll start with Kieren. Kieren concentrate on the consumer initiatives. So we'll talk about targeting growth in consumer mobile business from about $1.8 billion of service revenue today to capture a greater share of our growing addressable market. Second, driving greater profitability in our consumer fixed business. We want to maintain our leadership on NBN, but also look at our non-NBN services to increase our profitability. And then the third one around the cross-selling, the opportunities that we have to get in more of the households where we are present with more products. Jonathan will cover 2 key initiatives in enterprise growing our revenue. We have already announced our ambition to be a $1 billion revenue by 2025 in the segment. And also the second part, which is unlocking the value in wholesale by driving a much more utilization of our high-quality assets. Then we have the break and after the break, Ana will detail 2 key initiatives around customer operations, streamline our customer platforms and secondly, improving the customer experience with focus on digital payment experiences. And then lastly, Giovanni will talk about simplifying our technology landscape and the last one on how we are going to develop our 5G road map in conjunction with our regional sharing agreement. Once this presentation is done, Grant will provide more detail on our capital allocation framework. And also, we will be providing a bit more disclosure in the appendix of our presentation. Before I hand off to the team, I think that one thing that I've been talking to many of you in different meetings and even today is where I see the market different? Why is this a different time? And why is this an opportunity for us to really maximize this potential that the new TPG had in a market that I think has much better conditions around capturing value. And one of the things that I want to talk is the fact that we are exiting a period that, in my view, has been dominated by the distortion that the significant payments that NBN has done to the incumbent and to Optus. That has created, I would say, a period of heavy and probably unsustainable discounting that we don't think that will continue. I think that, that almost $10 billion, $11 billion that have gone to the 2 players really have developed some behavior in terms of the way that ARPU has performed that we don't see replicating. We don't think that, that opportunity to get almost $10 billion of free money in a way will happen again. And forget a bit, I mean don't look too much into the numbers on the ARPU, get a bit the trends. I think that ARPUs in this market are not all created equal. But you can see that how during the period where the NBN payments were higher, we had really very aggressive pricing decline. And I think that we are getting out of there. We -- everybody is talking about market repair. I think that we've seen market repair, not just in pricing, but also in the behavior of different players around how we share infrastructure and how we look into making decisions that are much more focused on generating more value out of the industry. And in this context and with the fact that we entered this space with a significantly growing addressable market, and I have talked about how the regional network share deal brings us from being a metropolitan -- a very good metropolitan player with good quality network but restricted in a geography to being a nationwide player and the increase that, that has into our addressable market will allow us to be I think, quite -- quite effective in capturing a bigger market share than what we have seen in the past and in a way that is more sustainable. A bit of comment on NBN. So we've seen you probably have read the proposal that NBN has done to the CCC around pricing. I think that there is a fundamental problem around the way that NBN is looking at how to monetize their service and the way that they -- looks like the only way that they see growth in the future is by making obsolete products more expensive every year. And it looks like even though they've been running the business for quite some time, there's still an emphasis on making NBN 25 and NBN 50, which are pretty basic connectivity products extremely expensive in the coming years as the only way to grow. We really oppose that. We oppose the complexity of that. But at the same time that, that represents a challenge, a challenge for the industry, it also represents good opportunity for us and we will -- while we commit to continue being a leading NBN retailer, we are also like we have done exploring the opportunities that we have on net to provide home broadband services in a much more profitable environment. And that includes wireless but also the opportunity that we have with our fiber to the basement and the rest of own access network that we own. Just a quick recap on where we are since results in 2021. I'm just going to go through some of the numbers before I hand it to the team. I mean we have solid momentum this year. I think that we're looking at the second half of the year, continuing this momentum. We are accelerating our targeted $125 million to $150 million merger synergies, and we will be doing that 1 year early, so by this -- by the end of this year. This has been enabled by a huge simplification of our organization, and we did take that in the beginning of the year. Our network expansion is on track, 5G delivery targeting 1,000 5G sites this year. So everything is going well. And we are building more and more sites every week and bringing more and more customers on the 5G network. We will talk a little bit about the regulatory process around our regional sharing agreement. I think the trend that is with us, will be able in the Q&A to address a bit at what stage we are. We recently closed the sale of our tower assets to owners for 32x EBITDA. I'm extremely happy about that transaction. Fixed wireless, we did anticipate some supply chain challenges, but we, at the time, said that we will confirm the 160,000 customers by the end of the year, and we reaffirm that we will be delivering this number of customers onto our on-net fixed wireless product by the end of the year. Enterprise traveling well. We had some really great wins and Jonathan will be able to talk a little bit more about that later, and we continue to reaffirm; our $1 billion revenue target. And then on wholesale, the approval of the functional separation and our residential access network, which really helps us to increase the penetration of customers on that infrastructure. And in general, a good momentum commercially. We will be announcing roughly 120,000 net adds or more than that for the first half of the year, and we are very satisfied with the level of performance. The other area where we have been working significantly is around our sustainability strategy. Since launch last October, we are concentrating in four areas. The first one is customer well-being, a lot of activity there, unifying across the brands, making sure that we scale and step up in all our brands around our customer well-being. Second one is around environmental responsibility. And we're working on our targets, and we'll be disclosing more and more on that today, we have our General Manager for sustainability, Ian Lilley, which I don't know where he is, but he is some place over here. So you can mingle with him during lunch, and he's doing a lot of incredible work. The third one is around inclusion and belonging. Again, this is part of our aim to become best employer, but also to make sure we are making TPG a really -- attract the talent, but also invest and dedicate more and more time in our people, making sure that this is a great place to work that we want to make. And then finally, around the digital economy. So like I said, if you have the opportunity to talk to Ian, this is a very important area for us and an area where we will be making more and more commitments, but also we will be, as we operate, we started in October, disclosing more and more of our ambition in this end. Now I'm going to introduce Kieren to all of you, you probably know Kieren, and he's going to go through the consumer. And then after that, that we will have the rest of the presenters and the Q&A. Thank you very much.

Thank you,Inaki, and thank you, everyone, for joining us here today. As we just went through withInaki, we've got these 10 key strategic growth areas we're focusing on to really deliver our growth. And today, I just wanted to unpack the 3 that relate to consumer. So first of all, it is to create a vibrant in a growing mobile business. AsInaki said, we have a network that is now bigger and better than it's ever been. And it's only going to get more so off the better Telstra network sharing agreement, which I'll go into more in a second to really explain from our point of view why we think it's good for customers, why we think it's good for competition and why we think it's good for our business as well. The next is in fixed wireless -- sorry, in fixed. And while we believe and still are heavy supporters of the national broadband network, it's still a key component of our fixed portfolio. We also have access to alternative technologies that allow us to provide optionality, provide greater value for customers and also to protect and to grow our margins. And the third is to accelerate cross-sell just put simply to sell more mobile services into our fixed customer base and to sell more fixed services into our mobile base. And we've made great positive progress in that area, but it still remains one of the key growth areas that we have going forward, both in terms of number of services and revenue. So if I may, I'll start with what we're hearing from our customers and really relate to how that really governs and how we see our place in the world and where we see it really playing to our opportunities. So firstly, and probably not surprisingly, one message that we hear loud and clear from our customers is how cost of living has become front and center. Inflation, interest rates, price increases, supply chain issues all weighing heavily on the minds of Australians. Just recently, I think about a week ago, Roy Morgan released the Consumer Confidence Report, and it showed that in June, we dropped to the lowest level since April in 2020. It's lower -- much lower than it was a year ago, while we were still in lockdown. And this is relevant for us because in this environment, Australian is putting the cost of ongoing services under increased scrutiny as they rationalize any financial commitments they have. And for us, as a telco, we are one of those services. We're one of the most common and generally considered nondiscretionary costs that an Australian household spends every month. Building on this as the second point is Australians becoming increasingly mistrusting or distrustful of complexity, in particular when that complexity comes in the forms of services, they come as part of a trial or a bundle and a snuck in and that eventually start to cost real money over an extended period of time. Channel 7 recently reported that as Australians, we waste about $4 billion a year on unused subscriptions. About 60% of us they estimate are paying for digital memberships, digital services, who we no longer or never did actually use. Now in rosier times, consumers may have forgiven that. But as mentioned, in times of constraint, greater scrutinies put on things like this. And this is relevant for us because in our industry, some of our major competitors have an expansion strategy that sees them moving into services like this. Services such as energy, aerobics, all sorts of things. You probably heard the theory that these additional services in some way entangle the customer and create a point of difference. For what it's worth from our experience, content creates very little switching behavior. So as a result, these expansion strategies can end up being an expensive strategy. And if these services are not profitable in and of themselves, other telcos might be tempted to look for their customers to cross subsidize the bloat and the additional cost these services inflict on the business. We think a little differently, and I'll go through that in a moment. The third message that we hear from Australians, and also this is probably no surprise, is that as more and more of our life is digitized from school to work, from shopping to entertainment, they're demanding they're expecting their telco services to be reliable and to be strong. And lastly, and positively, after years of limited travel and as borders are reopening, the big message we're hearing is we're really looking forward to traveling the world and to welcome the world back into Australia. So I say all of those, just a pause for a moment to reflect that we believe that we are very well positioned to better satisfy those needs than anyone else in the market. And I'll just go through those. As Australians are becoming increasingly focused on the cost of living, TPG can leverage as Inaki just went through our lower cost base, providing customers with simple, clear value while still protecting and growing our margins. And as Australian is going increasingly distrusting at the complexity of services that snuck into bundles and trials, we can provide transparent, simple-to-use high-quality telco services because it's all we do. AsInaki said, we're a telco. We're proud to be a telco. We don't want to be a techco. We don't want to be anything else. And this focus allows us to not be distracted and not carry the cost of flotations into other industries. And as Australians are demanding greater reliability of the telco services, we have made huge strides in the quality of our networks. In metropolitan areas, our mobile network is as good or better than our competitors. We are now the fastest-growing 5G network in Australia. And with recent network sharing agreement, that's certainly set to get better, and I'll touch on that more in a moment. And finally, as borders reopen, TPG and Vodafone's leading proposition for travelers, and that's both inbound and outbound, again, becomes an unbeatable competitive position. So let's turn to mobile. AsInaki mentioned, as we went through at the beginning of the year, our mobile business stabilized towards the end of last year and at the beginning of this and has now turned to growth. We're on track to deliver more than 120 net growth customers in the first half of 2020. We understand that sustainable and sustained growth is a long-term track and we'll have steps forward, and we'll have steps backwards. But we're confident the levers that we're tracking to are the right ones and the ones that will continue to drive growth. I'll just go through these briefly. First is we've just covered, given our cost base is far lower than our competitors. We are able to take a leadership position on providing value to Australians, while still maintaining and growing our margin. And as I mentioned, this is now more relevant than ever as cost of living becomes front and center. Secondly, as borders reopen, we are well positioned to capture growth into our international brands of Vodafone, but also of Lebara. We have strong propositions for incoming and outgoing travel. Our $5 roaming is still unbeatable, and we have targeted offers to the international inbound tourism and also for students. Since the beginning of the year, roughly about 1/3 of our sales has come from this international inbound travelers. Now we are aware that a large portion of inbound travelers and international travelers are short stay. That they have -- they're very welcome. They're very profitable. We love them as customers, but we do expect that they have a shorter tenure than domestic customers. Next, we focus on major sales periods during the year. It might sound self-evident, but it was a change we made last year and it's one that we continue. Instead of consistently being on sale, and spreading our investments, effort and attention across the year equally, instead we doubled down on key moments when the market is moving, meaning we're far more targeted in our offers and we're targeting our campaigns and our channel executions. For example, currently, we're in the middle of our end of financial year sale, and we have leading value propositions for both devices and plans. And although we still have a very important final week to go for the end of year sale, we're very pleased with how it's going. Just quickly, it looks like it's probably up about 45% in the same period last year from a sales perspective. Churn management and building our relationships with our customers is the next and a very important one. Clearly, acquisition, as I've just mentioned, is very, very important, but we are not a transactional business. So it's essential that we start to build relationships with our customers to become more personalized, become more trusting and become more valuable over time. We have renewed our focus in this area, and we've shown some very positive early results. This has been enabled through attention in terms of our upgrade campaign, campaigns to reconnect to our customers and also really doubling down into our next best activity, so we can get that right message, the right customer in the right channel. And lastly, but probably most importantly and most centrally, our network is the best it's ever been. And it's wonderful to hear that message coming back from our customers. We have Australia's fastest-growing 5G network. We now have about 90% in our metro area's population coverage. And Giovanni is going to go us through how -- going to take us through how we're going to continue that growth. But from a consumer perspective, 5G is now available to almost all of our metropolitan customers, and we have 5G plans to offer excellent value as well. And above all of this, is the planned network sharing agreement that we have with Telstra. And I'm going to get on to that next. But just before I do, the other point to notice is we've also seen strong ARPU performance as well through that period as we covered in January, that's continued. And this has been driven by the focus of mix at the point of acquisition as well as upgrading our existing customers throughout the term. And we see this customer growth being able to be further accelerated off the back of the regional network agreement that's been talked about with Telstra. It's still subject to regulatory approval, but we are confident that it's very pro-competitive. It has huge public benefit and it aligns with ACCC's desire for more competition for Australians. So why is the market so important to our business? I'm just going to build on a few things thatInaki said. Currently, effectively, we really compete and operate as a Metro telco. If you're a customer in one of the major cities, we'll deliver a network experience that is as good or better than anyone else. And the reason that we're focused on the cities is the economics. Put simply, for us to build in regional areas doesn't make any financial sense. And this has meant the true national competition and the mobile operators has been lacking for too long. So we haven't competed for these customers who have in turn had limited options in who they can choose to do business with. And this is reflected in our market share. In areas of metro, we're in the 20s, we're in the low 20s, but it drops to single digits as you move further out into the regional areas. The network sharing agreement has the potential to change this and provide us an opportunity to grow across all regions. And there's really 3 dimensions of that growth, that I'll just touch on now. The first is churn reduction. This agreement will directly address one of the largest drivers of mobile churn, lack of regional coverage. We lost customers during COVID because they've either moved to regional areas or they are traveling more to regional areas because they couldn't travel internationally. And when they did that, they started to bump up against the edge of our network. With this, we'll be able to effectively recontact those customers, rewin those customers, but also attract customers who also value that kind of coverage. Next, we'll be able to help drive acquisition in our cities. There are specific segments of customers that live in cities, but we frequently travel to remote or regional areas of Australia, either for work or for holiday. And these types of customers probably wouldn't have considered us in the past due to our smaller regional network. But with the network sharing agreement, we'll be able to compete for their business, providing us with quite a considerable growth opportunity. And lastly, and probably most obviously and fundamentally, acquisition in our regional areas. As more than 4 million people that are covered by this regional network will be given a choice of another mobile operator. So important -- through this deal, our core network will still operate with our towers, our 4,800 towers in exactly the same way that will operate with Telstra's towers, the 3,700 towers. And that's important because that allows us to control our product experience, our pricing experience, our real points of difference. I want to pause for a moment to explore how this change in our national network footprint affects our growth in mobile. And specifically, how it may set us on a different path to our competitors. For the economic reasons we just covered, we have historically, for all intents and purposes operated as a metropolitan telco. We essentially don't compete for customers in the regions or for customers that spend a lot of time in those regions. So our addressable market is by our estimation, about 60% of the population. On the network sharing agreement, that grows to nearly 100%. So this once in a generation, 60% increase in addressable market is uniquely available to us. As far as we know, neither of our major competitors have a demonstrable increase in their addressable market plans. So given the difference, it would be reasonable if we were to adopt a different strategy to that of our competitors. And on that point -- we note that one of the other major telcos recently announced they are increasing our prices, their prices, not our prices. They definitely increased their prices. And we were asking to lead up today where we are going to follow suit. Now clearly, we will we never foreshadow what we will or won't do with our pricing. Instead, I'd simply observe that our proposed network sharing agreement puts us in a very different position to that of our competitors. Put simply, this 60% increase in our addressable market gives us more options on how we can grow our business with increased share, increased revenue and increased margins. If a competitor has no material change to their addressable market, then in a mature market, gaining additional customer volume would be difficult. So one of the few options available to them, be to grow through an increase of prices to the customers they already have. We, however, are in a very different position. Given that the 60% increase in our addressable market, we would be able to grow our business by simply taking our services to customers who currently don't consider us and capture the natural market share of this broader market. Now again, to be clear, I'm not in any way foreshadowing what we will or what we won't do with our pricing, to simply observing that we are not reliant on a single lever of growth, but we have more options. If I turn now to the fixed line business. The NBN will remain core to our fixed portfolio. We're committed to maintaining our NBN subscriber numbers. However, it's well known that NBN margins are very low and they are damaging the industry asInaki just went through. Now there is an opportunity for us to provide alternative fixed access technologies, such as our drive to transition a proportion of our NBN base onto fixed wireless. This provides an opportunity for customers to get comparable or a better product experience for more competitive prices and provides us the opportunity to protect and to grow our margins. And we've continued our fixed wireless momentum. We now have 110,000 customers on our network compared to the 80,000 we had in December. And although modem supply issues did slow our progress through the year, we are maintaining a target of 160,000 fixed wireless customers by the end of the year. And we also remain optimistic that over the long term, about 20% of our base will be moved to fixed wireless. And we have that confidence because, a, the feedback we have from our customers that use the service; and b, when we poll and when we research customers, there's a real excitement for it. Recently, we researched our TPG base and 2/3 said they would consider moving from their existing broadband service on to a fixed wireless. Similarly, our consumer FTTB, VDSL and HFC products provide us with margin benefit over the NBN. But following functional separation, TPG increasingly thinks of this as a wholesale opportunity. So Jonathan is going to take us through what our plans are in that area in the next session. And lastly, I'll turn now to cross-sell. We are a recently merged organization, one that brought together a business predominantly focused on fixed with one that was predominantly focused on mobile. And this in itself presents a huge opportunity for us to introduce more services into these more single-minded customer bases. And we have made solid progress through the year, our level of cross-sell is still relatively low compared to our competition. So we still have a big upside ahead of us here. Our focus this year has been on driving cross-sell while at the same time, building the foundational capabilities to enable us to do this at scale, and it's delivered some really positive early results. The number of fixed services we have on our traditional mobile brands and a number of mobile services that we have on our traditionally fixed brands has grown by about 10% year-on-year. This has been driven by increased and improved cross-sell programs, make great progress in our call centers and our new fixed and converged propositions. And we'll now close by introducing the consumer leadership team. So from left to right, we have Claire Awramenko, who's also just sitting here behind Inaki Claire id Group General Manager of Commercial Planning & Strategy. We have John Casey, who is looking in the back corner, who is our Chief Marketing Officer. We have James Gully, who is our Group General Manager of Sales; Andrew O'Connor, who is a Group General Manager of fixed and fixed wireless products; Arthur Panos, who's our Group General Manager of Mobile and Devices; and Paul Tierney, our Group General Manager of Customer Lifecycle Management. We have a brilliant team. We've just come together from the best parts of TPG from the best parts of Vodafone and many people who are new to the business but are excited by the opportunity we have ahead of us. We've recently simplified and integrated our teams to a leaner -- we're more efficient, we're more focused, we're more hungry, and we're more focused on our customers and our growth. I'll now hand off to Jonathan, who's going to update us on the progress in the wholesale enterprise and government segments.

Good morning, everyone, and thank you, Kieren. My name is Jonathan Rutherford, and I look after Enterprise, Government & Wholesale. Today, I'm really excited to take you through 2 key parts of our strategy. Firstly, we will begin with an update on the great progress that we're making on the enterprise and government side of the business against our $1 billion target that Inaki talked about. And then secondly, I'd like to share a little bit more insight and detail into wholesale and why we see some real opportunities to unlock additional value in our wholesale business. Before I leap into progress, so I'd like to start a little bit and just explain why customers choose TPG Telecom, especially in the business, enterprise and government markets. And there's 4 key things that stand out for us. The first one is the level of commitment we have to the business market. We're committed across a whole range of areas. And what that means is it turns into a high level of quality, reliability and really important customer focus, all wrapped up in great value for the business market. Secondly, we're really relevant to all businesses. We operate from small businesses that want great value bundled communication services, all the way up to large enterprises that might want software-defined networks to help them enable hybrid working. The third one is we're a company that really focuses on delivering services on future-ready technology. And by that, I mean, you heard Kieren about our ultramodern 5G network, but we also have one of the best and widest reaching high-capacity fiber networks for customers. So we focus on products and platforms that are really relevant, not just now but in the future, and we do it in areas that we can scale. And then finally, I think the other thing that's really important is, while for a large business, we still have a challenger mindset. And by that, I mean, we look at what's right for the customer. We try to keep things really simple and do it in a way that can be beneficial for the customer but also help us drive value as a company. So we can see that the enterprise market overall. It's worth about $9 billion a year. So it's a large market, and we have a big ambition to take a big share of that in revenue terms. We focused in on 4 areas. When we came together as a new community last year, we announced our enterprise strategy in December, and we focused on 4 key pillars of growth. And we've seen some really great progress over the last year against that. So in terms of connectivity alone, we've seen our business grow 25% in terms of our fixed data connections that are on our network or on the NBN network. So we're seeing really solid growth in enterprise connectivity. We've also seen accelerated growth in the government segment through a number of projects you can see here, and we'll expect to get somewhere around low single-digit growth in that business. In small business, we are bringing to market a converged offer integrating mobile and fixed for the TPG Telecom brand, which is really important so that we've got one offer on one bill that we can bundle together with customers and allow them to consume really easily by buying online. We also launched a new tele sales channel, and we've scaled that up so that we can really attack and address competitive opportunity in the small business market. We've made some really important strides in new services, what we call network managed services and security. We've won a number of large SD-WAN implementations with new technologies, which puts us in a very different position in the customer. We're no longer purely talking about courage or connectivity, we're also talking about business enablement, how to deliver hybrid working, how to help companies connect to the cloud or change their working styles and patterns. And that creates opportunity for additional products and services like 5G, like always on connectivity, even security. And finally, in IoT and mobile private networks, we've seen really strong growth in our volume of IoT connections of over 20%, but I'm also delighted to announce that we have won our first mobile private network for a company called Yancoal that we are now in the implementation phase. So we committed to move into this area. We put the right team against this with the right partnerships. We've got our first win and we're scaling it. We see 4 really clear growth opportunities. And I'd like to touch on each in a little bit more detail over the coming slides. So firstly, when we think about enterprise connectivity. This market is really undergoing a transition. And it's undergoing transition for 2 reasons. The first is customers are demanding more data. That's a fact. You can see it all around you in your own behaviors and consumption. More data created, more data consumed. The second big thing that's changing is where that data has been consumed and how it's been consumed is also really important. So with hybrid working, customers are using that data in many more locations than before. And with the adoption of cloud services and the move to cloud, network architectures are changing, how you connect to the cloud, how you do it securely and how you make sure companies can use multiple locations and multiple cloud services. And all of that creates opportunity for new connectivity and new services. Within this connectivity market, we see an opportunity to grow from just under 10% market share to about 15% market share. And we can do that through a number of different initiatives. The first one that we see is an opportunity using our existing on-net fast fiber services. So we've got a great network. We reached 13,500 commercial buildings, multi-tenant commercial buildings, but we also build and integrate new buildings where we see economic sense. We can then extend our reach using NBN, a bit like Kieren talked about with the MOCN deal on mobile, you should think of NBN as a way of reaching new customers that we couldn't reach directly, which increases our overall addressable market. And our aim will always be to use our on-net services first, to selectively invest where it makes sense and then to expand using NBN is the second option. The third key area for us, which I think is really important is critically 5G and also fixed wireless access give us access to new customers in new areas that we couldn't reach. So if you could imagine you're a large retailer, for example, some of your retail stores will connect on fiber. They'll be in business parks or in areas that are very close to the urban population. Some of them might be more difficult to reach, but we'll use NBN, and some of them, you might actually want to do a pop-up retail experience connected over 5G or even a temporary retail experience, say, on a service station or a highway, which we could use fixed wireless access to do. So suddenly, this complementary range of technologies allows us to address much bigger customers in many more locations than we would have done before. So we see a really strong opportunity to continue growing in the enterprise connectivity market, which you can see is about a $3 billion market in its own right. And the ingredients we think that help us win there critically a lot of the points Kieren talked about for consumer are also true for enterprise. And the first critical ingredient is around delivery. And I think TPG -- overall TPG Telecom has a very strong reputation in delivery. And I've just highlighted a few different customers to give you some examples of how this becomes a real competitive strength. So one of our recent wins and acquisitions was Hungry Jacks, a real desire to get better management and support of the network, and they wanted to get a national software-defined network delivered across their entire estate. And that was something we were able to do quickly, effectively and of course, wrapped up in great value. When you look at NAB and what NAB we're looking to do, we delivered project to over 850 dedicated sites, and we did this in a way that was very, very quick in 9 months, but also ahead of schedule. With life line, we deliver mission-critical services. They play a vital role in society, and we had to deliver a new network, but at the same time, make sure there was zero downtime, zero service interruption and a fully seamless handover, which as you can imagine and appreciate, given the service they provide to communities in Australia is really, really important. And then finally, for Mosaic. This was one of our largest implementations over 850 stores connected in 3 months and over 1,000 stores in total. So it gives you an idea of how fast we can deliver and how much we can do when we use our own on-net network infrastructure, combined with NBN, or 5G, or fixed wireless access. So I think that's really exciting around the opportunity purely in connectivity. I'd like to talk a little bit about small business as well. which I think is a real strength where we see value that comes from the merger of 2 great businesses by bringing TPG's fixed assets, and VHA's mobile assets together, we now have an ability to cross-sell and to develop more products that can really help small businesses. Now today, we only have 4% of the customer base in small business that has multiproduct. Now I must stress by multiproduct what we mean here has fixed and mobile, Clearly, lots of customers have broadband and fixed voice, but there's only 4% of those customers in small business that are currently combined. And you heard Kieren talk about 20% in consumer. So again, big opportunity purely to cross-sell mobile and fixed and bundled together. For the near term, we're focusing on 2 big enablers. The first one is channel and the second one is proposition. So we are -- as I mentioned, we've launched and built a new telesales channel, which will let us address that market that's typically quite hard to reach and pretty time poor. Alongside that, we're also introducing mobile on the TPG Telecom brand as well as a range of cross-sell broadband offers, the Vodafone brand, so we can go and address those customers that want to get great value connectivity, simply packaged and simply delivered. Overtime we'll enhance that further. We'll bring in simple security services and we'll bring in some additional value adds, but all the time, highly targeted and relevant to what customers want to do in this segment, which is get great connections that work and keep them in business. We can see real opportunities as we go forward with the investment in online that we're making and a common platform across consumer and small business. And also as we improve our analytics capabilities, we will see the opportunity to improve churn and also drive additional ARPU uplift from this segment. So the third growth pillar that I talked about is around network managed services. And this is a real exciting opportunity for us. The benefits you'll see on the right are pretty clear. When we sell managed services to a customer and we remain really focused around network and by network, I mean the core [ carriage ] services supplemented with maybe a managed firewall or a managed local area network or a made software-defined network with some cloud connectivity to help them connect to multi-clouds. And we then do that with a wrapper that includes the design, the deployment, the installation and then the service management of that, we see the opportunity to increase the average deal size and the average revenue that we can make per customer. Not only do we do that, but we pull through more connectivity, it gives us a more relevant role with the customer, which can allow us to then pull through fixed but also mobile connectivity. And it allows us to do it in a way that we still retain a very attractive blended margin. So we can grow the business, we can be more relevant, we can drive more product, and ultimately, we can lower churn in that business. But what's really important for us is that we stay very focused. So we're very clear that it's around network managed services and the associated security services with those network functions. It's remiss of us to say we would never look at further ICT solutions but the focus in the short term is very much around scaling what we think is a great opportunity on the back of that connectivity market and network managed services. The final big opportunity in Enterprise & Government, again, comes from how do we take some of the assets we have in our core business and really leverage those to be great at delivering new services and IoT and Managed Private Networks. It's an attractive market. We can see it growing about 20% CAGR to 2025. And we can see that there's 2 big components in that, IoT connectivity and Mobile Private Networks, where companies buy a network for their own use either to automate a factory or to automate a port. Maybe it's to provide more security in a mining operation or automation of mining vehicles, but we see some really important ingredients that make us confident in our ability to execute and win in this market. The first one is what you need are strong partnerships, and we have those across a range of technology vendors and also globally through some of our relationships that we have with both Vodafone Group and Hutchison. Global experience is really important. We operate a platform that allows us to sell services globally, and some of our clients use this platform to reach the U.S., Europe or the rest of Asia many user purely for the Australian domestic market, but we have a platform that's able to scale globally as well as support us locally. And it's really important that we've got relevant network technologies. And within our network, we have narrowband technologies. We have 5G technologies, and of course, we have the existing LTE services that we provide. You can see some really clear growth opportunities in different verticals across utilities, energy, ports, mining, manufacturing. And as I said, I'm super delighted to announce the first win of our first mobile private network with many more to follow as we get through our sales pipeline over the next few months. That's Enterprise & Government. I'd like to move and turn attention to wholesale, which, as you see on the slide, the strategy is all around unlocking value in wholesale. And we think we've got some really interesting assets, and we think there's some big opportunities to get more value from those assets by opening up access to them right across the market. So firstly, I'd like to start with showing the wholesale business in 3 areas. We have mobile wholesale. This would traditionally be known as an MVNO market. The second opportunity you see is fixed wholesale selling our wholesale fiber and fixed data services into that market. And then the third one is what we call the residential access, the superfast broadband market. These are some of the assets Kieren previously mentioned that allow us to offer services to consumers that traditionally had been unable to compete until we were granted and moved to having functional separation. I'll take each opportunity in turn. So today, when you look at the MVNO market, the mobile market, typically, there are 2 or 3 very large brands that are in the MVNO market. And we have a very low market share in this. We had previous MVNOs like Lebara that would have been on the Vodafone business that were acquired in 2016 and became a direct entry. So we know how to do MVNO, and we've got platforms. But some of the key enablers that we're bringing to market to let us be more successful. Firstly, there's a platform called MVNE or Mobile Virtual Network Enablement. And this allows us to extend the reach instead of you needing to be an MVNO with many hundred thousands of subscribers which means, one, it's difficult to get the funding to launch a new MVNO; and two, you need to have a very large base to bear the fixed cost of doing it. We're launching a new platform in H2 this year, which will allow us to do mobile virtual network operator enablement. And what that will mean is it's a much lower cost, simpler platform where most of the IT functions are already done and pre-integrated. So if you're a brand with maybe 10,000 customers or 20,000 customers, you can suddenly move into telco and you can start to deploy mobile services. And if you look at -- NBN is a good parallel, NBN has many hundreds of RSPs. So there's a fantastic opportunity for RSPs that already play in telco or indeed brands that might be in retail or in banking or financial services or even food that wish to move into creating their own mobile services as part of their overall lifestyle packages. So really big opportunity that comes to us there. And alongside that, we also have the capability where we'll offer 5G to those MVNO players. So I think a really positive important step for that wholesale mobile market. Secondly, in the fixed data market, so the traditional fiber market using our assets that we just talked about in the metropolitan area, we take those markets. And currently, we take about 16% market share in that market. And again, we see a really strong opportunity to grow in 2 dimensions. The first one is winning more customers in already connected buildings. So of that 13,500 buildings that I mentioned are already connected, we make all of the services available to not just the enterprise and government market, but to the wholesale market to opening up this wide range of over 500 channel partners that we have that can take those services to market and further extend our reach. We also then selectively build, so we invest into building those fiber assets where it makes economic sense and where there's good opportunities. So we see a real ambition to take more share of that fixed data market. And then the third one is in the residential segment. So we have 3 assets today, which I'll explain in a little bit more detail, which have residential superfast broadband networks some that are fiber all the way to the premise, some that are fiber to the basement of buildings and then some that are powered over hybrid coaxial networks or VDSL networks. Now we've traditionally had those assets for sale in our own business. Typically, they've been part of the TPG branded proposition. And we've done really great things as a company to scale that up. But now with all of those moving into a wholesale market, where we can sell to the rest of the market, we see an opportunity to increase penetration. So we currently have about 34% penetration of those assets on the number of homes connected and buying a subscription versus the number of premises passed. So a really strong opportunity by bringing that to wholesale to further expand that number. I'll talk a little bit about those networks to give you some more insight. So those 3 wholesale residential access networks, you can see on the diagram here. These connect over 400,000 premises -- sorry, these pass over 400,000 premises and have a great opportunity using different technologies to offer customers a high-quality broadband service. So on the very far right, we have buildings that are directly fiber and that means fiber to the premise and then fiber inside the building, so you're getting a full fiber experience. Then we have what's known as the fiber to the building where the fiber runs up to the building and then inside of it there's the traditional copper wiring. Recently, we announced an upgrade of that network to give the fastest possible speeds on that network, almost up to 1 gigabit per second download on that network, and that's a technology called GFast, which we invested in and built. So we've now got over 2,000 connected buildings, approximately just over 200,000 connected -- 200,000 passed premises that we can connect to those GFast services. So this is a really competitive product that's far faster than anything in the market that we think is a real opportunity for other retailers to take to market and sell, especially where the choice is either NBN or nothing in a lot of those areas. Then we have the -- what you see is the orange lines, our VDSL and HFC networks. And we're also upgrading that VDSL network to be able to offer, over time, GFast services as well. So we'll see really strong improvements of those networks and a great opportunity in wholesale to address additional customers. The functional separation that I mentioned comes into effect on the 7th of October. And what that means is it allows us not only to sell these services through wholesale to other companies, but it also gives us optionality around investing in further building these networks. Historically, we were unable to build those superfast broadband networks from the point at which they previously stood. However, now we'll get the opportunity to extend them and to reach into many other markets. So for example, in wholesale, when we look at those residential access networks, we can see a range of different growth opportunities. Firstly, by opening up those networks to the wholesale market, we can acquire new customers. We'll differentiate with speed. We'll leverage GFast, and we'll use this to go after new customers that we can bring on to the business. Secondly, we can go after new verticals. We can go after playing a role in developers or other communities. And we can do that alongside launching potentially new wholesale products. Last mile fiber products or even how we might address smart cities or some of the new use cases that are requiring additional connectivity. And then finally, we can also look to expand that network to move into different locations, working in partnership with developers or indeed existing brownfield developments. So it gives us real optionality now that we have the functional separation in place. So that's enterprise, government and wholesale. And I'd like to take a moment to recognize the outstanding team that we're building across enterprise, government and wholesale. It's a leadership team that brings diversity and experience, diversity and opinion, diversity and go-to-market, but also has real breadth and depth across telco, ICT and the relevant operational sectors that we want to be in. Some of the team are in the room today, I can see Chris Russo, who runs Sales and Solutions is here; and Jeremy Howe, who runs Commercial, which includes Product and Marketing, and Justin Middleton, who runs our Wholesale & Carrier business. So if you'd like to find out a little bit more, feel free to grab them over the coffee break. I'm super energized about the opportunity in enterprise. Really pleased to get a chance to talk to you all today. And my only closing act is to announce a 15-minute coffee break, grab some refreshments and we'll see you all back. And I was asked specifically to tell you please don't run out of the room. Don't try to jump on the ship outside. Stay here, we'll be back in 15 minutes for Part 2. Thanks, everyone. [Break]

Hello, everyone. Welcome after the break. I feel a bit unlucky because Jonathan was the one who gave you the great news, there was a break coming, and I'm the one telling you finish the break, finish eating and sit down. My name is Ana Bordeianu, and I'm in charge of customer operations. Together with Giovanni Chiarelli, our Chief Technology Officer, we will take you through about 30 minutes of more information and more insight around our priorities to drive better customer experience to drive more IT integration and respectively, some new interesting developments on the 5G and the network side. In my part of the presentation, for the first 15 minutes, I actually thought about this time slot. And to tell you the truth I felt a bit nervous. Nervous not because of your -- I don't know, your positions in your organizations and who do you represent, but more nervous because I imagine some of you are customers of our brands. And I thought, "oh my god, I'm going to go there on the stage and talk about customer care platforms and talk about customer experience". And I imagine there are people in this room who may have had very -- my colleagues, friends told me I'm not allowed to use bad words, so I will say a very unpleasant experiences with us. As I imagine, there are also some of you who may have had very good experience with us. I actually had the pleasure early this morning with one of you to share with me that you actually had a very good experience with our TPG brand at some point when you needed support from our contact centers. But then I thought, okay, I may be nervous and I may hear from you unpleasant feedback about how you managed to work your relationship with us. But in reality, what I want to tell you is that we do have a very good framework of work to identify opportunities for improvement. Second of all, we are a lot focused on simplification, consolidation and really stepping up the experience for our customers. And third of all, to give you confidence in the team, consolidated team that is managing all this and leading the division and the projects in our organizational customer operations. This is the agenda that I told you about, and I will start by discussing a bit about the framework. You've heard Kieren and you've heard Jonathan mention the commercial priorities. You've heard them talk about cross-selling, for example, as a crucial priority for both the Enterprise division and the Consumer division. In reality to be able cross selling, we need to really know our customers well for each brand and potentially between the brands. The reality of our business today, as some of you probably imagine, is that we are a business that has merged together. But in reality, many of the brands are vertically managed with vertical infrastructures. And that brings complexity into the business. Commercially, it makes sense. But from a management of the business behind the scenes, it actually brings a lot of complexity. And you see here information about the number of systems as a ballpark, and Giovanni will also give you a bit more details on that. So we operate in an environment that is really complex. And we see a lot of value in actually driving a better customer experience and more operational efficiencies for our customers and for our shareholders to bring together those platforms into platforms that are more scalable, that can give us flexibility from a commercial and marketing perspective so that we can come across into the market under different brand identities. But behind the scenes, your organization to make things easier for our frontend as well for our customers to do business with us. We start from the customer journey. So that's another big topic for us, immersing ourselves in understanding for each brand, what is the real customer journey, what are the pain points, which are the steps in our customer journey where we create friction, where we have the most opportunity for improvement. And then we try to connect to that insight and that customer feedback to the commercial priorities that Kieren and Jonathan have talked about. It's basically an integrated cross-functional work that we are doing, trying to connect all the dots that we have, all the insights for our customers and from our business in order for us to identify which are the areas that we want to focus on to deliver a better customer experience. In the presentation today, I will do 2 examples of such projects that we've identified will make a difference not only from a customer experience perspective, uplifting it, but also from an operational efficiency perspective to allow us to drive a better cost to serve and to do a more efficient business for our customers. One of that is the contact center platform integration. It's probably not -- I don't know, unheard of that having multiple bands that have grown into this numerous business during time, we have, as I was telling you, multiple IT infrastructure supporting them. So we currently manage 3 different contact center platforms supporting different brands, which is a lot of fragmentation. In the same time, these platforms have a very good, I don't know, age or capabilities, not allowing for a great flexibility for us to be able manage between different contact centers, to be able to manage a self-service options, maybe cooler, better opportunities for our customers when they need our support. For example, to get a call back at some point. For us internally to be able to manage between inbound and outbound interactions to support the commercial ambitions, for example, for cross-selling. How do we manage that today? It's very fragmented and very verticalized. We've identified Genesis Cloud as a future-proof partner with a platform that has a state-of-the-art capabilities to help us drive a better customer experience across all brands and, by the way, across all segments. So for example, when Jonathan was talking about building the telesales channel, the telesales channel is a channel that will be using this platform and will allow therefore, a lot of flexibility and efficiency for both agents and a really good experience for our customers. This platform in itself that we've started working on and we already have the Vodafone brand enrolled on it, TPG and iiNet are under work, and everything will be finished in the first part of 2023. In time where we have basically a vast majority of our customers experiencing it. And the customers will have flexibility between, for example, using web chat and using voice interaction, as synchronous chatting with our agents, which we know, for example, is a very good experience and highly appreciated by our customers. We really believe that this is a foundational piece of work. And one of the examples of how we are looking at duplicated systems or triplicated systems in this case, and finding the best solution possible to create a future-proof business and to give us flexibility and scalability in the way we manage our brands and respectively our customers. Another example is the touching a crucial step of the customer journey. A crucial step that is a billing step. And it refers to the fact that currently, in our business, we have 4 different payment gateways. That means that across different brands, our customer experience very different payment methods. For us as a business behind us since we have to manage very different processes, which actually brings a lot of complexity, duplication of resources as well. And in reality, also the payment methods in themselves are not necessarily up -- I don't know, up to speed with the level of innovation that exists in this industry. We know that this is a crucial step for the customer experience. We have listened to the feedback of our customers who are telling us, for example, other industries are giving me options to buy now pay later. I can't do this with telco, with your brand. Or I don't know, the payments are not necessarily real time for some brands. It is a reality of the business that we are in. And we are working on implementing Braintree as a strategic partner into our IT infrastructure to be our unique payment -- our single payment gateway across all brands, bringing us a state-of-the-art payment methods, some of them being unique, I would say, in the telecommunications market here. And also giving us a future proof -- future-proofing us in this respect because we will get access with this platform to any new developments in -- when it comes to payments. In this way, we create a reduced complexity in our business from a technical perspective. Giovanni's team, for example, will have to manage a single payment gateway and not necessarily 4 as we have today. It will create a better experience for our customers with new methods of payment and real-time payments and less operating cost for us. Again, this is another example of how we are doing things. And it's an example of a bigger plan that we have to consolidate to simplify to drive more operational efficiency and therefore, better experience for our customers. As I was saying in the very beginning, this is all underpinned by our really excellent team. A team that we put together, as -- I thinkInaki mentioned in the beginning of today's presentation, we've worked end of last year and beginning of this year to streamline the organizational structure to bring brands together, to bring activities together and to make sure that we eliminate duplication, and we create accountability in roads across the multiple brands. This is the team that is supporting me in delivering on our ambitions, on customer operations and customer experience. We have here in the room here Virginia, who is in charge of customer care across all brands. So please after this, if you have feedback, just go and talk to her about customer care. She's always happy to hear. And then we have Tarun as well, who is in charge of everything, credit collection, logistics and all the, let's say, more of the back-end processes that are happening in our business to support our segment. Gerard, who is in charge of everything go to market, and it's more of the internal engine of the operations connecting us tightly on to the rest of the business. And Irwin, who is based in Philippines and is managing for us the shared services that we have over there. It is an integrated structure of a solid experienced general managers, very passionate, very knowledgeable on their field, and I would say that very commercial in themselves. So with this I feel very confident that we can connect very well to the rest of the organization and align our priorities. I will now hand over to Giovanni to take you through cool stuff on the technology side. Thank you very much.

Thank you, Ana. Good morning, everybody. My name is Giovanni Chiarelli, I'm the Chief Technology Officer for TPG Telecom. So it's great to be with you today, and I need to play the role of the cool guy. So let me see if I'm good enough on that. So first of all, I will move on stage like the big gurus that we know about. But jokes aside, so Ana already introduced to you the way in which we are simplifying the customer journey. So now my role is to share with you how the IT architecture can enable all of this. So we have a great opportunity. Ana I already mentioned that today, we have more than 600 systems in the IT architecture, and we can really simplify this number to less than 400 in the range of triggers. This will be done through the implementation of a new digital stack based on best-in-class technologies. But this is not the only step that we are taking. We are adopting a cloud-first approach, which means we are migrating more than 60% of our workload into the public cloud. But at the same time, we'll still rely on a strong foundation in terms of technology centers, with the full integration of data centers and switching centers coming from IT and the different domains of the network, where again, we are going through a simplification and consolidation in order to achieve better efficiency and effectiveness. So in essence, the main objective of the IT will be on one side, to deliver a better customer experience through simplified journeys, on the other side to provide new digital capabilities to our customers. And last but not least, also to provide to the internal teams advanced analytics. Now a second crucial element in the equation of a better customer experience is a better network. And here, you can see on the slide, our two-pronged approach in terms of mobile network, yes? We will continue investing in the metro areas in our 5G rollout and in the modernization of the mobile network. Today, we have already deployed 5G on 1,300 sites. And by the end of the year, we will pass the mark of 2,000 sites. This is equivalent to 95% population coverage in the top 12 urban areas of the country. We will continue with the same pace. So in 2023 and 2024 to conclude the rollout in 2025 with a complete 5G national coverage. A second crucial aspect of the journey and of the strategy is the landmark network sharing agreement for regional Australia. So this is done through the implementation of the multi-operator core network standard in terms of network sharing, well known in the industry, which is creating a seamless transition between the different areas in terms of coverage for our customers. For the first time, 4 million of consumers and businesses in regional Australia will have a real choice and better value. But this is also a greater experience for our customers that are traveling from the urban areas into the regional areas as well. As you know, this is subject to the ACCC approval. However, the 5G rollout is not just heavy lifting. And I want to share with you also the fact that we have introduced significant innovation in this approach. So on one side, it is a completely innovative way to pre-assembly and test all the active equipment that are part of the 5G rollout, and we are doing it on the ground. It's greatly beneficial because it's reducing significantly the cost of intervention, the time of intervention. And more important is reducing the disruption on site, which again means better customer experience while we are rolling out 5G. The second great innovation is regarding vice versa, the core network, so you could say the brain of the network itself. We have launched at the end of last year, the 5G stand-alone core network. This is absolutely the first in Australia, but we could say one of the first in the world, so a super-modern network and architecture, which is capable to provide better 5G coverage, more efficient optimization of the 5G capacity and also very, very important is the first step to deliver the 5G most advanced use cases, which require ultra-reliable, low-latency network. So this is about our 5G rollout. I want also to share with you a more integrated view of the network infrastructure because it's not just mobile, but is a compounded view of different layers. So talking about spectrum, in the -- since the merger, we have strengthened our portfolio. But at the same time, we have been able to avoid cost for more than $500 million thanks to a very, very rigorous approach in terms of asset management and asset acquisition in the spectrum environment. We will continue with the same, by the way, in the coming years. All of this is feeding into the mobile network, so approximately 5,000 sites, out of which more than 85% with fiber back-hauling, which is obviously crucial in terms of 5G rollout and the ultra speed that it has to be provided. And this footprint will be progressively enriched with additional approximately 700 sites in the course of the next 10 years. Again, mostly focused in the major metro and in the large regional centers. Metro fiber, another great asset, more than 10,000 kilometers of fiber, mostly deployed in urban areas, corresponding to more than 20,000 sites, and 450 points of interest for enterprise-grade services. Again, very, very clear approach, and we want to maximize the potential where it's possible, migrating customers on our network. And to conclude with the inter-capital transport network, more than 31,000 kilometers of fiber across Australia. And, by the way, a recently upgraded submarine cable system to connect the Sydney to Guam in order to transport international traffic and getting access to the big Internet. So this is from an infrastructure perspective, the way in which we integrate all the dots. I want to conclude presenting my team, a newly born organization. So for the first time, we have a single technology function inside the company, integrating mobile network, fixed network and information technology and digital. So you can see we have 6 roles and 5 general managers and executive managers that are covering them. Starting from Mandie de Ville, she's in charge of IT and Digital, a function that is fully focused on the application and integration layer. Bill Fowler is the General Manager for the demand and PMO but is currently acting also in the Technology Security position. We are elevating technology security because, clearly, there is a significant need from this perspective across all the other domains. Fiona Jelley is leading the Technology Service Operations. Designing the new organization, we have been very, very deliberate in merging together all the network operation centers and the IT support centers that previously were fragmented -- is, again, giving a better support to our customers through our colleagues that are in the front of the customers themselves. And to continue with 2 colleagues that are today with us in the room, Barry Kezik is the Executive General Manager incharge of Network & Infrastructure, a fully integrated organization that is looking at mobile network, fixed network, core network and all the technology centers across the country. And to conclude with Yago Lopez that is in charge of Technology, Strategy and Innovation. Again, a new function that is looking at the mix and long term in terms of innovative technologies and the strategy that is supporting that. So in essence, we will significantly simplify our IT architecture to support better and streamlined customer journeys. We'll continue to focus on the 5G rollout in metro areas, and we will take advantage of the network sharing agreement in regional Australia to give more opportunities and choice to 4 million of Australians in those areas. And last but not least, we'll continue to be very, very disciplined in terms of asset management for our network infrastructure. And that's all from my side. And now I leave the mic to Grant, who will introduce to you our capital allocation framework. Thank you.

Well, I'm going to start with 2 apologies. First of all, along with Kieren, are going to bring back the boring Australian accent. It's a very difficult executive team to have a proper discussion about the right football code, I can tell you. And the second apology is -- you've been listening all day is wonderful business strategies, good innovation, very sparse wonderful charts, and I'm about to bring you back down to financial framework and accounting reconciliations. I'll try and go as fast as I can, a few dents and well word and lots of numbers on slides, just to build on that CFO serotype a little bit more. So today, I think, really, I'm sort of 5 months into my -- almost 5 months into my job, and I've really had a pleasure of publicly meeting a fair portion of you over the last few months. Every so often, I exaggerate how many investor meetings I've done, but I'm -- it's not quite at 100 yet, that exaggeration, but it's a fair amount. So I've appreciated getting out and speaking to both debt and equity investors. And one area that we did talk about coming back to was sort of our capital, how we use capital, in particular, with talking to the CapEx that we announced earlier in the year. So really, we've taken an opportunity to talk through capital allocation framework that we have. And also, we've taken an opportunity in the appendices. I'm not going to talk to them to provide sort of just more detailed financial disclosures from reconciliations. You're more than welcome to ask Bruce and James, as you see them, for any information on that as we move through. So in terms of the capital allocation, I'll start -- there's nothing revolutionary in this capital allocation framework. It's largely similar to what you see most companies, mature companies of our size. I'll go through the framework briefly on this page, and then really just unpack them on the following pages as we work through. Yes, on the left-hand side, really, we're talking about sort of our annual commitments we make out of the cash flow that we earn in terms of where we allocate that capital. So really, it's the priorities that we have on an annual basis to maintain our assets to maintain the world-class assets that Giovanni has just talked to. And we also maintain a really strong balance sheet, which I'll talk about. And of course, to share some of that cash flow with our shareholders, we've committed to a dividend policy of 50% of our adjusted net profit. On the right-hand side, that's where we have the choice, choose both on an annual basis and sometimes multiyear basis in terms of really where we invest any capital on cash flow that we get out of the operations to create value. It's both investing and releasing capital, which we'll also talk about to create value. And finally, obviously, returns to shareholders become really important over that time. I'll go through on the following pages, some of the more details on that. So we're starting off with sort of the CapEx profile and a bit of a snapshot. The totals are not new. This is what we talked about at the full year results, but obviously, we didn't provide the breakdown, which we are providing today. They are round numbers. So the round numbers are estimates. And we will plan every period now to update sort of the outlook for the current that we're in and also provide the actual numbers. So I think we can keep to work that through. When we work through the sort of -- I'll start at the bottom. The obvious thing we do every year is, as I talked about, really the -- what we're calling the run CapEx, you might call it stay-in-business CapEx. It really is about investing and sustaining the assets. So we have maintenance on the existing network, some of the IT infrastructure. From that point of view, the big focus of the business, and we'll talk about simplification, you have about that today is to try and evolve that down over time to make that really efficient. Certainly, as we grow the business, we want to have a platform such that CapEx doesn't need to grow as a percentage of activity. So there's a big focus on as we simplify the business and reduce our sustaining CapEx. If I move to the top part, which is the sort of growing growth CapEx, that's things where we've talked with -- particularly Jonathan has talked about today, where we're supporting our customers with a selective fiber build-outs for things like GFast in the residential access network. Those things, as you see, it's with a fairly sparse capital allocation, it has to have pretty good paybacks to get kicked off. So that's a very good discipline within the business. These paybacks are strong, identifiable and they're usually pretty quick. The transformation one in the middle, which is where we are quite elevated right now, as we called out which is obviously the biggest one is -- Giovanni just pointed out is the RAN upgrade to 5G. It's both elevated because we're doing it, it's elevated because of swap out of the Huawei equipment, which kind of the government requirements, and it will be elevated for the next few years. These are choices in terms of accelerating it, and we explained this at the full year results, the acceleration has benefits. We'll get to the 5G readiness. We want to be there at the same time that the -- that tells us as they're going to get to their regional network, which we'll be a part of, so that we're really 5G everywhere, which will give us a competitive advantage at that time. It has elements of both run and growth. I mean, as you know, we need to keep our technology up to speed. So we need to do these transformational activities, but there are returns. You've all heard of the fancy term gigonomics. There are returns in terms of using efficiency spectrum more efficiently in the with the latest equipment on 5G in terms of the cost to deliver a data. There are growth opportunities in terms of both enterprise and potentially on the consumer side in terms of that consumers will pay for. So it has a mixture of both. They tend to be longer term than the growth capex and a little less identifiable upfront, which is why it has its own sort of network. And over a 10-year period after we've talked about, this is going to be elevated through to the middle of the decade, where the 5G rollout will slow. And I think over a 10-year period, you probably at an average of less than half of that kind of number that we're currently spending. So in terms of -- but it is lumpy, it is hard to estimate, but that's how we're looking at our sort of buckets of CapEx. Turning to the balance sheet. Again, I think there's a couple of elements to this. On the left-hand side, we're really just focused on the bank debt that we currently have, which is obviously going to reduce by $890 million when we close the sale of the towers in July, that will create about $3.3 billion headroom. So as I see, if I'm very comfortable with our -- obviously, with our covenant structure, which -- first maturity is 2024. Next one is 2026. So from the bank debt point of view, very, very comfortable position in terms of -- in particular, after we get the proceeds from the asset. We called out of the merger that we're targeting sort of investment grade. We're not rated, but an investment grade profile. That hasn't changed. So what we're showing here probably conservatively -- on the right-hand side is just adding back the lease liabilities that we have to get sort of a pro forma net debt position, which is comfortably within what a notional investment grade range would be. This is all based on sort of 2021 pro formas. We haven't added benefits of organic growth, which we'll have this year nor any of the MOCN deal. So it's a conservative view, which basically says we're very comfortable with our with our balance sheet positioning, where we are. We have noted in the footnote that we do have approximately $700 million of off-balance sheet financing, just on handset financing that we do sell after we incur it. So I think really, our focus on the balance sheet has actually been more about -- we'll talk about asset portfolio in a second, but sort of liability mix. One of the big benefits of the tower sale was really about switching from the sort of bank debt, which is obviously relatively short-term flow in interest rate type structures into long-term at our option up to 35-year money matching the asset cycle that we have. So to have a very good, long lease debt matching assets that we know we're still going to be using in 30 to 35 years. We've moved up to about 40% as leases to bank debt ratio. That's a very good mix for us. And we're working through the course of this year in terms of the bank debt that's left, what's the right optimal mix in terms of capital markets, tenure volume, and we'll come back to the market on that as we work through it. The other element of our framework is sort of the dividend policy. Again, nothing new here necessarily, nothing changed. Obviously, it's subject to the Board, but our policy is to pay out 50% of adjusted net PAT. We start off at sort of statutory net par as you should. We've called out that this year, you're going to see obviously a big profit on sale from the tower assets, you may see some costs coming through on that as well and potentially costs ahead of the network sharing agreement. So there will be some one-offs and call outs that we'll have through the year that we'll probably adjust for under the restructuring costs. From there, we do take off some amortization costs to get to the -- what we're trying to do with this is not a perfect way of adjusting, but we're trying to get to a reflection of the underlying cash profit that's recurring each year and pay 50% of that out to shareholders. And the other 50% covers the sustaining and growth CapEx profiles that we've talked about. And obviously, we also are adjusting for any restructuring costs that we believe will generate future benefits that are just one-off costs for the year. We don't want that to come off the dividend profile. So we've called out in the first half of this year for the final bit of getting that $125 million to $150 million of synergies. We spent about $35 million in the first half, largely around people cost and simplification costs in terms of some of the things you've heard about, we've merged a lot of the wholesale and enterprise and governments together with merged IT and networks together, and completely try to simplify the business from the front end. And that's also moved through to simplifying the organization structure. So we'll adjust for those as well. I think it's important. I know in previous years, we've had other terms got underlying profits and a few other things. We're going to try and stick to just this one. This may evolve over time in terms of how we measure it, but we'll have one thing to model and look to pay 50% of that out each year. When we move on to sort of the optimizing unlocking value, we're always looking at our portfolio. I think we've got a few examples we can point to that we've done over the last few years, which are important. And the biggest example of this, when people talk about rational sort of use of assets is actually the merger itself. The -- either company could have or -- in fact, TPG started to build infrastructure in different areas to compete the benefit of bringing a fixed network with a mobile network. You've heard today in terms of the synergies we get cross sellability and the convergence opportunity both for consumer and enterprise. But it is a really great -- probably the best example of really rational use of capital to provide a sort of a third player and a third integrated player. And obviously, this year, we've announced the monetization of the passive infrastructure I just talked about, which again, is all about better financing our use of those assets. And of course, the regional MOCN deal you've talked about again, which has both strategic benefits it has financial benefits. And again, it's also extraordinarily rational in terms of how we allocate capital and where we allocated to instead of allocating it into trying to build an economic network in the regions, we can allocate that elsewhere. Ongoing, we sort of have 4 broad categories we're constantly reviewing. We're continuing to look at other -- how do we drive value out of those infrastructure sharing things we've done. Both -- which we also have a joint venture with Optus in the regional in the metro regions. That has opportunities to continue to drive better returns. We're continually assessing sort of core and non-core assets. We get a lot of questions around our fiber assets. We continue to look at those. The way we'll probably define core and noncore is whether we are investing in it, whether we are growing it or whether we are monetizing it properly. If the answer is yes to all of those, it's a core asset that we'll keep. If the answer is no to those. It's probably an asset we'll look to see if someone else can monetize it better than us. That continues to look through it. We are looking at smart ways of adding in partnerships, maybe small acquisitions as well, and particularly on the enterprise side, just to make sure we continue to enhance our core assets and differentiate the technology. And then obviously, I've just talked about balance sheet optimization in terms of financing structures and making sure we've got the right debt. So we're constantly looking at the portfolio. It requires discipline. It requires prioritization because there's always more good ideas and there is capital the CFO wants to give. And so that's something we work through. And again, I think we've exhibited over the last couple of years, the ability to make rational decisions around that capital. The residential access network you've heard today is sort of standing up from October when we get that wholesale thing through. There are lots of opportunities that don't require capital or at least small amounts of capital we've already invested in GFast. There may be other things that require capital that really have to look at in terms of where that fits versus the growth CapEx, whether that's third-party capital. It's a very -- it's a mini unity business. It's a very hot space right now. There might be other ways of getting capital or other ways to grow that business, for example. And we'll look at that in the context of our capital allocation framework. So that sort of finishes the tour of capital allocation. And I think I was just going to leave -- there's nothing new, again in the sort of financial impacts the '22, but is probably just a summary. In the appendices, as I say, there's a whole lot of sort of more detailed, improved disclosures we hope will help with the models for the investors. Again, feel free pleased to ask James and Bruce any questions you have on that. But as we move down on the operating earnings, again, this is just what you've heard today is continuing what we said to investors before this positive momentum is really strong in the business. We've put some targets out there in the Enterprise and Government. We're excited about unlocking the value in wholesale, which we probably haven't talked as much about. And you heard that today, in terms of the synergy and restructuring, to pull forward, we often say the pull forward the $125 million to $150 million, I can't take credit for it. It's already happened before I came. It's a pretty great effort to achieve that a year early through COVID, where nobody was in the office. It's a really full effort that we will achieve that this year. As I said, there's some one-off cost to achieve that in the first half, which we've incurred. And you've also heard a lot of opportunities. I think there are further opportunities for simplification. You've heard the high-level opportunities from Giovanni and Ana in particular. I think we've already achieved a lot of cultural simplification and the front-end simplification and the people's simplification. It's a bit like a dark underneath. There's a whole lot of complexity that we have an opportunity to really face into. And we're facing into those opportunities as Giovanni and Ana pointed out. We'll probably come back in another Investor Day when I think we've worked through what the benefits. There's lots of benefits to the simplification, probably more about the scaling to support the growth opportunities you've heard. We need to probably be more simple and invest in a simplified structure to be able to grow and reach our growth ambitions. The regional network, really, we've just reiterated the accounting impacts there and some of the economic opportunity. It's a bit of a no-brainer in terms of the breakeven analysis of getting the subs. We've heard that from Kieren today in terms of even just churn reduction, I think, sort of pays for the economic opportunity. But there is a really, really exciting opportunity for us to execute, to create value over time from that deal. And the tower asset sale, again, we're just really putting here some of the accounting impacts that we've already announced. And as I said, the economic benefit really is matching the assets and liabilities. And doing that in an environment where inflation and interest rates are going up to have a long-term lease, that's relatively fixed finance, is very good for us. I'll finish, like all the teams have, with our people. Here's actually my direct reports. The financial leadership team consists of 12 people, which includes sort of business partners, tax and data analysis, which Sean Crowley looks after. And so this is a good team of diversed mix. Again, of sort of 3 of us are new to the team. So that brings a different perspective. But it's embedded in here is some really deep knowledge of telco, how the businesses work, how the finance work. I will make a special call out to Sean, who I'm still here, who was the acting CFO before I started. It's been a long time. He's been a great support to me, as I've joined, continues to basically run the teams internally really strongly. And so he's been a great help to me and to the teams. But all of them really experts in their fields and are excited the opportunity to support the business. So with that, I'm going to hand back toInaki to lift the move back up from the finance and accounting allocations and -- before we get into Q&A.

Well, thank you very much. Look, I don't think I'm going to talk -- I think you probably have a lot of questions. I have seen all of you writing the summary of the morning already. So I'm not going to repeat that. Just a couple of things. Look, we have shared with you our ambition, our ambition to create the best telco. It's our focus ambition, but it's also the time for us to do that. We've grown the business across technology, across geography that gives us a unique opportunity to really expand our addressable market. And I think that, that is really something that in the context of a market that has been normalized, that we see much more matured, much more focused on recovering. I think we can take that opportunity very well in this company. We're doing that, at the same time, that we concentrate on simplify the business, working not just simplification around reducing cost, which we are doing, but also simplification around creating a very scalable platform, a very scalable platform to serve our customers and to manage our technologies in the most efficient way. And I think that listening from Ana and from Giovanni some of the projects that we have around there is a great opportunity, but it's really something that is going to make us much more capable in this market. And then ultimately, talking about our financial discipline, the rigor, the way of looking at things from a business perspective, whether we are investing in technology or in a system, I mean, we're really looking to the way that we are using our shareholders' money. But also the way we are maintaining this value advantage versus competitors that are probably much more distracted in the market. So this is a bit of the summary. I'm super excited that you guys have the opportunity to meet the people that make all this happen. I'm going to welcome a lot of questions now, and they're going to be taking all the answers. I may take a couple. Before that, today, while we were all here, we launched in the ASX a notice of the escrow, which expires on the 13th of July. We do that because we are obliged to do it, at least 5 days before the escrow expire. And we have also added a lot of information around how it works and also information around the different positions. And I say this because that way we can save ourselves time asking questions about what shareholders are going to do. That is a question shareholders. They are really the ones that have to decide what they do with the shares. So everything else around escrow is at your disposal on the ASX. Thank you so much. I'm going to invite all the team now to come up here. We're going to sit down in all these chairs. And I think that James is going to help us to arrange the questions. Perfect.

Before we go to the room, which we will very shortly, I just wanted to sort of bring Trent and Vanessa into the room, into the discussion. Trent, our Group Executive for Legal & External Affairs; and Vanessa, our Group Executive for People Experience. Trent, I know everyone wants to know about the MOCN. Everyone wants to know about the progress of the MOCN. Few people might have seen there's been a bit of press coverage about the MOCN. Maybe you could give everyone an update on the process of the ACCC in a broader regulatory process?

Thank you, James. Sure. So obviously, it is in a regulatory process at the moment with the ACCC. So there's only a certain amount that I should probably talk about, but I'll talk about the public -- what is public. So the public consultation phase is happening now. The ACCC has set a target date of a final decision by October 17. So with an interim -- I think, an interim decision in the August time frame. So we'll have a very good indication from the ACCC in that period. The public submissions are overwhelmingly in support at the moment. If you have a look at the ACCC merger register, you'll see it there. And of course, that's our view as well that this is a very pro-competitive agreement, which will bring significant public benefits as well. So just briefly, we've touched on them a lot today, but just to summarize again on -- and I guess the view that we take as an organization is that this brings into regional Australia a third player, really for the first time, where we can through that 98.8% coverage that will be achieved with the market agreement. We will now have a network that will satisfy both the customers in metro that want to travel to regional Australia and of course, more than 4 million people that live in regional Australia. It also brings great benefits in TPG's spectrum being utilized in regional Australia really for the first time in a big way. So on the 3,700 Telstra sites, we will be able to use our either unused or underutilized spectrum, and that's a huge public benefit. And equally, for the many people in regional Australia who utilize the Telstra network today, which will be us and their customers, they will all get the benefit of that spectrum. Also, the Telstra network is somewhat underutilized in some areas, of course, where there's not much population, that will be more utilized and particularly the public funded sites that we've all had a part in paying for will now get utilized by a second party, being TPG. So there are really significant public benefits, and that's an important part of the ACCC's process to assess that. So we're very confident that the process is running well. It's running as expected, and we're positive about where the outcome will go.

Thank you, Trent. And Vanessa, maybe we'll just touch on culture. Whenever we have gone around or when we went around pre- the AGM and met with a number of the people in this room and also others. How the culture of the organization is developing is a very common question. We haven't presented on it today because we don't have so much time, but maybe you could just touch on that for us before we go to Q&A in the room.

Thank you, James, for the question. So let me start with a comment of I'm immensely proud of the progress that we've made on culture in the 2 years since we've merged. And this journey started, as I said, 2 years ago. And the way we started the journey was spending a lot of time understanding the cultures in the business. And it was really important to do that to understand what was there in the organizations. What was strong about those cultures? What enable performance and also what are the things that hindered them? And also what was similar and what was different. So we spend a lot of time listening to employees and spending time with employees. Now this was during a time when we were in the depths of the pandemic. So it was a challenging period, so I say, to focus on culture, but we actually use that to our advantage because we're able to engage employees all across Australia. We've got a very diversed workforce, including our workforce in Manila and engage everyone in a way with our -- on an even playing field. So everyone was engaged in the workshops that we're having and talking about culture on a screen. And so everyone felt completely the same and could engage in the same way as we started to talk about the culture that we wanted to build. So through this work, we did a lot of listening. We developed a deep understanding and a lot of insights and then started to think about what was the culture that was going to be right for TPG Telecom. And that culture needed to be respectful of the past, but also a culture that felt new to everyone and was reflective of the new organization that we were building together. So we built our culture aspirations. We developed our 4 values, which Inaki mentioned, so stand together, [indiscernible] simple is better and boldly go. And we refer to our culture and our values together as a spirit. So it's the spirit of TPG. And that's what we talk about in the business and also then culture and values we talk about spirit. And in terms of how we measure it, because obviously, we need to measure it to know how we're progressing, we have a biannual employee survey. So all of our employees participate in that survey, and that's how we measure it. We have 16 questions specifically from that survey that measures spirit. And we also have those questions from our Spirit Index as part of our STI, our short-term incentive plan. So it's very important for us that we are making progress on that. Last year, we set our benchmark for it. So we started at 72% and then finished the year at 76%, which was a great achievement as a newly merged organization also doing it at a time where we couldn't bring a lot of people together. So we continue to focus on this. We have an unrelenting focus on culture and on spirit in the organization. And it's through this that we believe will become the best telco for our customers and for our employees.

Thanks, Ness. Okay. So we will be going to questions in the room. I know there are some of you online who are asking questions as well, but we will be prioritizing questions in the room. When you get the mic, could I ask you please to state your name and institution. It's just very helpful for us for the recordkeeping in the transcript. I think we're starting over there.

It's Tom Beadle here from UBS. I've got 3 questions. I might just ask them one by one, if that's possible, please. Just firstly, on consumer, just around the Telstra Network Sharing Agreement, is that deal subject -- we don't know -- sorry, all the drivers there, but is that deal subject to CPI type in place? Or effectively is it linked to Telstra's retail pricing? But all I guess, where I'm coming from here is, could that potentially drive the need for price increases over time just because of the terms of that agreement?

I can take that one. I think that we're not disclosing the commercials of the deal that we are very comfortable with the arrangement that we had, and we think that is, like we said before, extremely valuable for us in a way that we can refer that to the customer. But other than that, we will not give details into the -- how the commercial arrangement works.

Just a second question, just around fixed wireless, that 160,000 customer aspiration by the end of this year, to what extent has that been impacted by supply chain issues and your network capacity? So I mean, could that potentially be higher had you been constrained, firstly? And then secondly, how should we be thinking about the proportion of your customers that might take these services over time once your network is upgraded and once those supply chain issues subside?

So despite supply chain issues with modem, they did have a real headwind for us. And we've put a lot of changes. We diversified our supply -- suppliers that we worked with. We changed our terms. We took much longer purchase orders than we usually would. And we're in a much better position at particularly slow sort of our 4G fixed wireless, but it was overall. What I would say is we're in a much better position. I'd also say is that we don't think we're out of the woods. So I think anyone that's dealing with a supply chain that includes chipsets would be cavalier if they felt too confident. So we've taken a lot of steps to bolster that supply. We stay mindful and we stayed very carefully in managing that. So it has had an impact on our progress through the first half of the year, but we a much better rates than we are now. So could have increased 160 potentially incur, but again, we're looking at fixed wireless over the long term. And I think that relates to your second question, which is that we see that over the longer term that may be about 20% of our broadband base would be on fixed wireless.

Great. And just third question. I know we didn't really touch on this today, but to the extent you can talk about this, just around inflation. Obviously, it's a big topic at the moment. To what extent are you seeing that in your cost base? And in particular, just where wage pressures, obviously, last week, there was that Fairwork commission decision. So how does that impact TPG?

Yes. Thanks for the question. And look, I think, that we addressed a little bit our -- our situation is a bit different than the market, of course, we -- there is inflation, but we are in a journey now where comparatively with the type of savings and synergies that we are delivering is not so material. We also have gone through a big simplification, and I mentioned that before, of the organization, which is also something that overall is reducing our total cost in terms of employment. So we see inflation as something to consider. I think that it will eventually, over time, have an impact on things like energy, which is probably the input cost that is more affected by something like inflation. And that will affect like other industries, but we see that a bi more mid to long term. In the current situation, I think that because of the phase of our merger, that's not something that really affects us. I don't know if Kieren wants to add anything on that?

Yes. And I can maybe nest my way and talk to the employment side. But I think the point is, look, it's -- we're not immune inflationary reprices. Nobody is immune from them, but were mitigated by the fact that we're -- we've taken people out of the organization. We continue to simplify over the next few years, which I think will automate more things, simplify more things. So I think we've got some natural mitigations to it, relative to probably if you've already done, which I think our major competitors have. And everything is going to the bottom line. So I think we're in a slightly better position, but there will be pressure from energy. There will be pressure from interest rates. There will be pressure from other things. But I think, in a relative sense, we feel relatively pretty good.

It's Mike [indiscernible], Sempera Asset Management. Just a quick one on capital efficiency. Grant was talking a bit about it earlier on, but obviously, CapEx at 1.05 give or take. There's a bit of additional bring-forward CapEx there. Can you give us sense of where there might be in, it's a crystal ball question, but like in a couple of years' time? I mean, obviously, this depends on 10,000 things, competitive pressure, et cetera, but assuming the wall of balls as you kind of really expect, would you see that number materially lower than that? Or is it going to stay very elevated for some time?

Yes. So again, everything will be taken with the grain of salt as we go out to the mid-decades. But I think the way we've broken it up there for you is the run -- business CapEx, I think, is what it takes to run the business as is currently can figured. As I sort of talked to, we're going to try and make that efficient, whether that number comes down or whether it's stay -- it grows slower than revenue is the 2 things we're hoping we grow the business. So we're hoping it does grow, but it just grows slower. So I think that's a focus of ours where -- I mean, Giovanni was talking about similar simplification opportunities that will help reduce the run -- run CapEx as a percentage. But that basically is a reasonable indication, and that will be 3, 4, 5 years' time. The growth CapEx is always a choice. Every year we make a choice, so we don't have to spend any of that. But obviously, we make that choice so we can grow earnings. And as we be more transparent, we'll be held to account for growing that earnings, just spending that money. And that transformation one, in the middle, as I said, I think probably if you look over a 10-year period, we spend probably half of that on average, but it's very lumpy now. This current lump we've called out will last through to the middle of the decade. Does it then go to 0? Probably not 0, but then what does it go down to? Just depends on where we are in the cycle. But I think if you're running a long-term model, maybe it's the run CapEx, it's half the transformation CapEx and then growth as an input. If you put that in your model, you got to put some growth into it.

Darren Leung from Macquarie Group. I might stick with the theme of 3 questions. The first one is just on CapEx. So I might just follow on, on some of that. And you've mentioned that sort of accelerated CapEx section, the $150 million to $200 million it was. I mean, there was a lot of comments from [ Jon ] around the enterprise market, and there's obviously the aspiration to progress in that market a bit further. But is it fair to assume that if, for whatever reason, we're not successful that, that CapEx worthwhile should drop as well? Because I imagine the bulk weight is driven by enterprise customers.

If we're not -- sorry I missed the point -- the second part of the question.

Sorry, is it fair to assume that if we're unsuccessful in the enterprise market that the accelerated CapEx portion will drop as well?

So the accelerated CapEx and the transforming is all about 5G RAN upgrade. So that's across consumer price. So I think we're pretty committed. I mean, we can choose to slow that down if there was ever a reason to do that. But our current ambition is to get that all in by 2025. The additional growth CapEx, which largely used in the Enterprise business, comes off the back of that and it's complementary to the 5G upgrades, but it's really different fiber for customer opportunities. So they're quite -- they're not really related in that sense.

Understood. And then the second question was just in relation to electricity costs. You haven't really mentioned that in the slides today, but I think it's sitting somewhere under cost line and not the jump that into the appendices, but on Slide 60, I think there's about $85 million of admin costs in there. Any indication as to how much of that is electricity? And how much of that is sitting inside fixed and variable and usage rates, please?

No, I don't think we disclosed down to our electricity costs. So it's embedded in there. It's not a massive portion of our cost base relative to the $1 billion a year we spend in our network. And it's meaningful. And it is obviously going to be under pressure at some stage. Now we have some long-term contracts in electricity that will protect us for a while. But we're not disclosing specific expense items.

And then just the final one for me. Maybe one fit for you, Kieren. Just in relation to inflation, so a lot of the sort of offshore peers have started looking at inflation linked to plans. Obviously, a domestic peer has linked their pricing to inflation. Is that something that you would consider as well? And does it make sense for the Vodafone brand?

First of all, we won't foreshadow anything with respect to doing pricing changes. We're not doing pricing changes. The only thing I'd reflect is to repeat a lot of what we're talking about earlier is that we all have the same levers in terms of our growth. We can acquire more customers. We can increase the prices those customers pay or we can change the mix of what plans and things the customers are on. The only reflection that I'd make is that although all of us will probably, at some point, pull all of those levers in a different core, for us, the first one is the addressable market opportunity is probably more open to us than to our competitors because of the point. So don't read that as foreshadowing in any way that we will. We won't increase prices. It's more just to say that I feel that we've got greater emphasis on more options available to us than just that one.

Here you go, Fraser.

Fraser Mcleish, MST Marquee. So two for me. Just either forInaki or Kieren. On broadband prices specifically, I mean, broadband input costs have been going up for many years now. Nobody seems to really be doing much on broadband prices. Why are we not passing through more of those costs to the customer?

Yes, maybe Kieren, you take that one, yes.

We have seen different prices move in the market. We have increased some of our prices in some of our plans, in some of our brands as well. So there is some movement. But you're right, and it talks to one of the fundamental challenges that Inaki touched on with the NBN. We believe in the NBN as a piece of national infrastructure, but there is a part of the economics that is very challenging for us. And that's the variable cost of the CVC. And as you point out, that can create a squeeze because -- especially during things like the pandemic, people are staying at home and using a lot and therefore, squeezing our margin. So we look at different ways we can do it, both in terms of moving customers onto different plans. We do a lot of that as a way to be able to manage our margin. We move customers on to alternative products, such as fixed wireless, which bypasses the entire margin or CVC challenge. And then we also look at whether there are specific products and specific brands, whereby we can still stay very competitive and still stay really relevant to where we think customers are seeing the value that we're able to protect and, in some cases, grow our margin.

Okay. Great. And one for Grant, just on the cost. I mean, I think you've outlined, there's a good opportunity from simplification, which is great. But you've not kind of put any numbers around that, I guess. But looking over the next kind of 2 or 3 years, I mean, are those savings going to be enough to offset other areas of investment or inflation you got in the business? And we can perhaps see the cost base flattish or even down over that period? If you could just give us some sense, that would be -- without giving specific numbers, that would be helpful.

Look, I probably can't give much sense other than I think we're leaning into that view now. I mean, we just sort of -- Giovanni and I sort of gave you a taste of sort of the opportunity set that looks quite real, but we need to lean into sort of what does that mean. Do we want to do it? It might require some CapEx and some OpEx investment, where does that fit in the structure? So we need to lean into that to work out what the opportunity benefits are. Intuitively, you make things more simple. You get cost benefit, you have to redo things. You have to redo customers. So there will be some cost benefits. I think, again, you'll see the theme we keep trying to get people back to is 2 things. One is any cost benefits are really there to scale for growth. We actually don't want our costs to go down. To be honest, we want to grow and our costs to stay much the same. So that's -- we feel like we've moved into with a MOCN deal with convergence strategy, which is really just at its embryonic stage. We are a growth opportunity company. We're already a low cost. Again, one of the things I've said to lots of investors is both companies had a low-cost mindset probably for different reasons, but they both had a really low-cost mindset, which I don't think our competitors have. Therefore, I'm really glad we have because you can't get a low-cost mindset. So we want to maintain that. We've got the simple mindset at the front end. As I say, we haven't quite married that with the back end yet. That opportunity will be there. I think it will give us great opportunities to support the growth agenda we have. It will mitigate some of the cost pressures. No doubt, if you automate more things and take -- you need less people to do things because you're more simple, or by definition, you are taking cost and mitigating cost pressures. But again, that's not our focus. Because we hope to add things in and grow the business. That's really where the mindset is. We don't -- we are already low cost. We have that mindset. Efficiency is really important to us. What we need to do is make sure we become simple, so we can grow.

Kane from Goldman. Just 3 for me as well, please. I suppose maybe just on wholesale, you also have the enterprise in 25 targets out there. Lots of initiatives underway in your wholesale business. But so just how should we -- how do we think about that business? Is that a growth business? Or are these initiatives more about offsetting the legacy declines that are coming through?

Thank you, Kane, and thanks for being patient to ask the question as well. I would think about wholesale in those 3 different businesses that I mentioned. So in mobile, very much a growth opportunity. We're a super low market share. And it's about using, I guess, other brands to help us reach more of the market opportunity that Kieren talked about, especially in regional or other areas. So mobile, very much a growth opportunity. I think on fixed data, you're right, there's a high degree of legacy revenues in wholesale that we still need to offset. Approximately 14% of the business would be on legacy. So we do have to offset those legacy revenues through that fixed data business. On the residential superfast networks, we see that as a growth opportunity. Very clear that we've got an asset that's relatively penetrated, but could go, what's to stop us seeing to 50%, for example, is a number. So I think a real growth opportunity there, with minimal investment and then further extension with additional investment if we see it as the best use of the capital at the time.

And do you think collectively...

Yes. I think the -- and collectively, I think there's no reason become a growth opportunity. It's just the rate at which those 3 lines will work together.

Yes. And then I suppose on the $1 billion enterprise targets. So can you just talk a bit about how the mixed shift of that business plays out? The lower margin managed services, NBN resale versus higher-margin fiber and mobile. How does that play out into 25 when you hit -- if you hit those targets? And so how important is the MOCN deal as well in terms of the enterprise?

Yes. Great question. Two things. I won't give precised guidance on the margin mix. I'll not go there. But what I'd say is one of the biggest opportunities, which you touched on is mobile, which is a high-margin opportunity that we currently don't capture at scale for a lot of reasons. One, coverage, which I think you can see a clear path to how we address it. Two, a lack of focus on that market for many years, we didn't have enough channel capacity for lots of strategic reasons. Now we suddenly do. And three, we've got a customer base to cross-sell into. So mobile is a really high margin opportunity. On the fixed side, the balance we take is NBN does give us great reach. We got 850,000 connected premises that we can go with high-quality Ethernet services, too. So there's a big reach from that. But as you rightly see, the margin is lower on NBN than using our own fiber. So our overall ambition is to grow margin, absolute, probably not percentage margin, which I'm sure you'd appreciate, but a big opportunity to grow from those higher-margin mobile products as well.

And just one last one. Just -- so if this MOCN deal does, for some reason, get knocked back. I mean, how does that impact the strategy that's been set out today? Does it have an impact on CapEx? Or what -- or how do I think about the risk of it being knocked back on your business?

Yes. We don't think about that indices that we are quite clear that it is a pro-competitive agreement is going to bring much more choices to much more Australians. It's going to create benefits in the usage of additional spectrum. So from that perspective, we are quite rational in the sense that this is something that we are going to put in place, and that's what we are working on. So we don't want to work on plans that will not happen. We really think this is something that will definitely happen. So our view, of course, subject to the approval, but that's our view.

It's Eric Choi from Barrenjoey. I probably got one for Kieren and one for Ness and maybe one for Grant. Just Kieren, on international roaming, I guess, if we look at international departures are sort of back at 40% to 50% of pre-COVID levels. And I would have thought you guys over-indexed on international as well. So is it fair to say that historic $2.60 international roaming ARPU number, maybe we could be back in a fair chunk of that today?

So a few things there. So you're right. So pre-COVID, we had ARPU that's related to roaming of about $2.60. During COVID, as you would expect, when we couldn't roam, our roaming revenue dropped right back to very, very little. We're back towards growing further towards the $2.60. We are almost half of that currently. But what I would say is that month-to-month this moves quite a bit. May was a big month of travel for us. What we may find is throughout the year that, that starts to move up and down. Our overall view is that we will see the full recovery or the path to normalization of the travelers, inbound and outbound. We, see it's probably about a 2-year period. We really take advice on that. Actually Grant has experiences with the airports. So that's really where we're looking for that drift to return to. So that would be roughly where it is.

Kieren, you mentioned postpaid ARPUs improving during the period. You mentioned postpaid ARPUs improving. Is there anything else contributing to it besides roaming?

Yes. So a couple of things. So the -- as we covered in January, when we went through the results to the end of the year, we've seen an increase in our ARPU overall. And we've seen an increase in our acquisition ARPU. That was driven probably by 3 or 4 things, and now there's an additional 1 with roaming. That wasn't really relevant to that stage. The first noe is we changed our pricing back about a year ago. And we took off some perpetual discounts that we had on our most popular plans. And as that started to wash through a year later, we're benefiting from those price changes. The second thing was the optimizing the ARPU at the point of acquisition. And what I mean by that is making sure that lettering of that plan means that we're not just going to the lowest cost plan, but there's a really logical and easy upsell to be able to find customers in a slightly higher ARPU that best fits their needs. And the third one is that have been actively building the capacity and building the campaigns to be able to upsell customers while they're midway to a plan or midway through their life. So we've been changing as well. And then you add on to that, to your point, the increase of roaming, and you start to see that we've had a strength in our ARPU relative to where we've come from.

Lots of questions about data cost. And I was wondering if we could dig into the EBA specifically? I know you're sort of combining lots of complex agreements. If you can maybe talk us through the changeover date and how we should think about indexing to CPI?

Right. Thank you, Eric, for the question. So at the moment, and I'll comment on what I can because we're currently embargaining at the moment. So we've got 3 enterprise agreements, which obviously, legacy premerger agreements, which we're bringing together into one. So that, in itself, is quite a challenge to unify those. We're in bargaining at the moment, but we expect the agreement to be in -- definitely in Q3. The first increase -- pay increase for employees would be at that time. So when the agreement becomes effective. And then the next would be in March 2023. So the negotiations have been going on for a little while. Obviously, the hype around wages and inflation has extended it because we started these negotiations actually last year, but we've spent more time with employee representatives just to make sure we're getting the agreement right for employees and for the business. And so ongoing, once the agreement is in place, those increases will be affected March of next year.

Last one, may be the most difficult for, Grant. Lots of useful disclosures on JVCo. But I think a lot of us are still wondering what the precised amount of debt sitting in JVCo for those 2 shareholders of yours are? And maybe sort of what interest payments they need to service? Just any insight into that.

Pretty easy question. I don't control JVCo. So you'll have to ask the owners of JVCo. I have no idea what the data debt they have or haven't they might have paid it down last night for a long data.

Simon Conn from Investors Mutual. Sorry but more of a macro question. But we just had a change of government in Australia. With that change, do you envisage any impacts? And I'm just thinking over last time our labor government, they bought up the NBN on the back of the [indiscernible] and got $50 billion liability. And then we had the lives from the digital tax to compensate some of the other top providers trying to get money in the media sector. We've talked before about how the telco sector has done a great job of keeping Australia working through COVID. Do you envisage -- with your engagement with the government, do you envisage any difference in changes in policy approach, maybe digital tax on picking up Queensland all the governments are a lot of data as well? Spectrum is going to raise money. I'm just trying to think what do you envisage out of this government?

Yes. Thanks for the question. Look, I think that -- I mean, we, like all governments, in that sense. So I don't think that this government we have had contact with Michelle [indiscernible] for a long time. And we have discussed many times our views on NBN and different aspects of, let's say, the pressure points of the industry. And from that perspective, we think that there is probably not going to be any challenge that wasn't there before or anything like that. I also think that -- and this is a trend that doesn't just apply to Australia. I think it applies internationally. There is finally, I would say, the realization of how fundamental infrastructure is for the economy. And even in Europe, where you have seen commissioners extremely fundamentally around certain things should be doing this and that are really backtracking in a lot of the views because there is a realization that the sustained investment in wireless and fixed infrastructure is the fundamental piece of the economy, is a fundamental piece of the new economy where the people are working in a distributed manner. So I do think that, as an industry, now we have a much stronger case. If you look at -- if you calculate how much money the industry has paid in spectrum taxes in the last 10 years is an unbelievable amount of money. And I believe that, that is something that now we will look at with a very different perspective because all the money that goes into a tax is not going to into building fundamental infrastructure for the growth of the country. So that is the discussion that we have had with both parties of politics. And I do think that we are getting much traction on that. And from that perspective, I see that there is a good way to collaborate with the new government on those issues, but also, like I said before, in making the NBN a bit better for everyone.

Just a quick follow-up question, Inaki It's been 1 of the 2 locally listed telcos. Does that put you in a better position vis-a-vis other telcos that might be owned by foreign investment companies or I would say?

Yes. Thanks for that question. I do think that we are looking at this market from 2 perspectives. We really look at the way of serving the market, creating infrastructure, serving the customers. But we also want to be the most attractive investment in doing so. So I think that, that -- to look at that duality of perspective, I think it's great to be -- to make a better company. So I think it's good for us to be operating in an environment like the one we are.

Just go to a couple of the questions online that haven't been asked in the room and go -- there's a lot of detailed ones here. And for those of you online, we'll get back to you whether some of the more financial questions. We can point you to the right appendices. But some of the more strategic questions. The first one is around the NBN contract, Jonathan, with Yancoal. Just -- this is a further question comes from Nick Harris at Morgans. Trying to just understand if you could give a bit more detail of what that service we're actually providing is?

Yes, sure. Thanks, Nick. So mobile private networks is a service that's typically used by companies that want to automate some of their operations. So for example, it could be an energy company, manufacturing company or in this case, a mining company. And what it is it's a network infrastructure that stood up using public spectrum that we would have. So our public mobile network operate spectrum, but it's used in a way that is effectively specific to that organization. And the reason it's important is it allows that company to then run their own mobile network effectively on top of that, which allows them to then do things like remotely control trucks or have security cameras or provide automation of robots or the services that need very lowly and see highly secure services that can be delivered across wide areas. In this case, we're building it Yancoal to help them in the mining operation. It's the first site that we've deployed, and we're currently in rollout. And we'll do 3 things in that. We'll provide the management of that solution. We'll have a network management center. We'll build the infrastructure, and then we'll operate and run it for them. And they will then run a whole range of automation or services that they choose on top of it.

I've got another question from online. This one is from Harry Sanders at Evans & Partners, and it's a technology question for Giovanni. You alluded and touched on in your presentation around a potentially growing role of millimeter wave. So the question is the fixed wireless getting to 20% of the fixed base over time, what's our view on that? Any investment that might be required and what the role might be in the way in delivering fixed wireless services over time?

Yes. Thanks for the question. So in essence, today, we use mostly the so-called C-band. So the 3.6 gigahertz, which is so-called also as the golden band for 5G in order to satisfy all the capacity requirements across mobility and fixed wireless assets. Obviously, we expect that, especially in the top urban areas, there would be a moment in which we need to offload the fixed wireless asset traffic in order to get full capacity on that band to the mobility. So at that point, the millimeter wave spectrum is becoming very helpful. So it's a spectrum that traditionally would use the -- for the backhauling, for example, in mobile network, or point-to-point connectivity for enterprise customers. But obviously, this is less and less required thanks to the fiberization of the backhauling in terms of mobile sites. So we will be able to use it for customers. Clearly, it creates a different approach. In essence, as you know, due to physics, this is a spectrum that is covering less. So the penetration is less. So it will require a little bit different devices, maybe mounting an external antenna for indoor locations and so on and so forth. We are already doing the first trials to see how does it perform. In other markets, it's already used, maybe due to spectrum constraints and different allocation of spectrum. So we think it's reliable.

Thank you, Giovanni. And we might just take a final question from these online questions. One comes from Brian Han at Morningstar, and it relates to the cross-sell stress [indiscernible]. And I think it's kind of an added question -- added to your question. It relates to the systems capability that we have in our customer contact centers in able to support cross-selling. And also the question ends with TPG. You need to consolidate some of these brands to better cross-sell. And Ness or Kieren, you can divide that one up as you see fit before lunch.

Okay. I'll take a nudge at the brand one, and then together with this one. So from a brand point of view, so we are very lucky that we've got some of the best brands in the Australian market for our sector and that they are very broad to the brands. They tend to cover right across the market. But we would observe also that they were set up not to work in complement. Frankly, they were set up to compete with each other, and they've only come together through a series of mergers. So we've got -- now got the opportunity to relook at those and say, "Are they pointing the right place? Are they solving the right set of customer problems? Do they resonate with those customers? And have they got the right level of investment?" And there's some we need to invest more and there are some we need to retire, where there is some we need to increase it. We are just, at the moment, in the middle of that process. It's a very important process. We don't take it lightly. We know these are talking about largest intangible assets as a business and ones that have helped us grow to the organization we are now. So it's not a sort of emotional project. It's a very, very analytical and careful projects, and we're in the middle of that now. On the second question, in terms of the systems, why don't I have a first shot from part of that answer, and then I'll hand it to Ana for a far better answer. So from our point of view at the moment what we're doing is we're building the early days really of building a far stronger data analytics capability. That will allow us to not only understand who our customers are, and unify or to federate all the different customer bases we currently have, which is absolutely table stakes, but doesn't actually get us that much closer because it's not really helpful to know if that customer has a mobile, but doesn't have effects. That's somewhat useful. What's far more useful to know that customer has a mobile, doesn't have a fixed and probably wants to change their fixed product soon. So in order to get to that, we need to get much richer [indiscernible] about those customers, and we're building that now. So that's the first point. We're building both the core data capability. Giovanni and myself are working on our actual data model. We're building our decisioning tools and our campaigning tools so that we can start to have a far more anticipatory approach to when we cross-sell and we service our customers. But then how that comes to life actually in our call centers, if someone call up, I might hand over to Ana.

Well, Thank you. That's a really great question in the sense that it affects a lot the execution of the commercial ambition. And if Kieren talked about the data analytics space and how do we know more about our customers and use their data smartly, we actually need systems that are of using -- that they -- i am ingesting the data in a very smart way, either to help an agent to talk to a customer about an additional offer or to actually enable that in an automated fashion. For example, in a bot or, for example, in the IDR. So when a customer gets in touch with us, we would know very quickly about the customers, who are they, what products are they using? Based on the intelligence that the customer life cycle management team in Kieren's area is building, being able to immediately decide this is the next best offer that we could add on to this account. The, [indiscernible] I was saying, as of last quarter, it is integral platform that will enable the execution of this commercial strategy. And it will actually make it easier and smarter to do and probably even better to do what we are currently doing today for the TPG and iiNet brand, where the vast majority of the cross-sell is done through customer care and over-the-phone support. It is a great model, and it works every time. Because once we build the relationship with the customer, while solving an issue, by answering the question, it is the perfect moment we discovered that in that moment, we have the trust of the customer. And the customer is ready once they trust us and they trust the brand to listen to an offer. We are doing it well today, but in a very fragmented and very openly and honestly manual fashion. Putting tools in place, we could do it even better. And that scalability factor that I was talking about, this is the most important thing. We know what to do, but we need platforms and better intelligence to scale it out, to really support that growth ambition through better ways other than just doing more manually these things.

Thank you, Ana. Well, thank you all. Lunch is served outside. Please stay and continue the conversation with the team. In addition to the executive leadership team, as pointed out, a number of the other members of the TPG senior leadership team are here in the room. If you can't remember from the profile photos who they are, it's easy, they're really good-looking people. Inaki, would you like to make any final remarks?

No I mean the only thing is -- thank you, James, and all the people that have been involved, Bruce, in preparing this event, the people from the sound on the back trying to figure out who's talking. So thank you to all of you for joining us today. We will do more of this, and we will -- everyone will be better. I hope that you enjoy today. And like James said, we're happy to take any questions now while we are having something to eat. Thank you very much. Take care.