ࡱ> qp ' \pc976327 Ba==h\IX/8X@"1Arial1Arial1Arial1Arial1Arial1Arial1Arial1 Arial1$Arial1Arial1Arial1Arial"$"#,##0;\-"$"#,##0"$"#,##0;[Red]\-"$"#,##0"$"#,##0.00;\-"$"#,##0.00#"$"#,##0.00;[Red]\-"$"#,##0.005*0_-"$"* #,##0_-;\-"$"* #,##0_-;_-"$"* "-"_-;_-@_-,)'_-* #,##0_-;\-* #,##0_-;_-* "-"_-;_-@_-=,8_-"$"* #,##0.00_-;\-"$"* #,##0.00_-;_-"$"* "-"??_-;_-@_-4+/_-* #,##0.00_-;\-* #,##0.00_-;_-* "-"??_-;_-@_-"Yes";"Yes";"No""True";"True";"False""On";"On";"Off"],[$ -2]\ #,##0.00_);[Red]\([$ -2]\ #,##0.00\) "$"#,##0 0.0%#,##0_ ;[Red]\-#,##0\ !"$"#,##0.0;[Red]\-"$"#,##0.0 "$"#,##0.00 "$"#,##0.0                + ) , *           # (   #    @ @ #8@ @  (@ @ #<@ @  $@ @  $@ @ #<@ @ #<@ @      (@ @  ,@ @  `  $@ @  `@ @  #|@ @  #x@ @  #|@ @     `@ @  8@ @  #<@ @ 8@ @  a $@ @  $@ @      (@ @   ,@ @   ,@ @     h@ @   (  #<@ @   h   (4@ @ (0@ @   ,  ,@ @  a @ @   $  (  h@ @  $  $@ @ #8 #<@ @ a $  ,@ @    (P  @ #8@ @   ,@ @   l   L   H  d@ @  d@ @  ( #<  (@ #8@ #<@  (@ #<@  (  a ,@ #<  a l@ #|@ @ #|@ @ #\   (X #x@ @  (@ @  #x@ @  `#2@Summary P&L - iiNet & Optus&lOiiNet Revs, Subs and ARPU Datay_iiNet COGS DatadiiNet Other Opex Data|iiNet Depreciation DatauiiNet Capex Data. Optus Data=2"  Quarter JuneYOY Change (%)A$m%Optus Consumer and SMB Fixed DivisionOn-net Voice Broadband Pay TV Consumer Fixed on-net Off-net Dial-up Consumer Fixed off-netConsumer Fixed revenueSMB Data and IPSMB fixed revenue"Total Consumer & SMB fixed revenueOperational EBITDA - EBITDA margin Key Drivers YOY Change %On-net ARPU (A$)Voice Broadband Telephony customers ('000)HFC ULL On-net Resale Long distance onlyOff-net HFC bundling rateHFC penetrationInternet customers (000s) HFC broadband ULL broadbandBusiness grade broadband Broadband subtotalDial-up Total Internet customers#(Includes wholesale ULLS customers)*Summary P&L - iiNet Bundled ADSL and Voice*Summary P&L - Optus Bundled ADSL and Voice Total OpexULLS Monthly Rental ChargesULLS Monthy RentalUnderlying Data and SourcesSubscriber Data ARPU Data.Presented September 2008 [Likely to be FY2008]!Total COGS and Operating Expenses*Quarterly capex charge per ADSL subscriberFinancial YearSummary Data and CalculationsNotes: (1) In calculating divisional EBITDA, shared costs have been allocated using cost allocation methodologies. (2) Per month, based on average HFC and ULL customers. (3) Include wholesale ULL subscribers. (4) Based on customers who are receiving a "bundled benefit" from taking a package of products (local telephony plus at least one of broadband, dial-up internet or pay TV). (5) Revenue associated with the business grade retail broadband customers is included within Optus Business fixed segment.@Source: iiNet Limited, December 2007 Half Year Results, Slide 3.BSource: iiNet, Investor Discussion Pack, September 2008, Slide 33.FY2007 Monthly COGSASource: iiNet 2008 Full Year Results, 18th August 2008, Slide 20.<Source: iiNet, FY Annual Results 2007, August 2007, Slide 9.7iiNet Income Statement, For the year ended 30 June 2008)Source: iiNet, 2008 Annual Report, p. 73.%Monthly COGS+ Expenses per subscriberCOGS + Other ExpensesOther COGS & Expenses Other COGS & Expenses (estimate)Source: Singapore Telecommunications Limited and Subsidiary Companies, Management Discussion and Analysis of Financial Condition, Results of Operations and Cash Flows for the First Quarter, ended 30 June 2008, p. 44  45.Source: Singapore Telecommunications Limited and Subsidiary Companies, Management Discussion and Analysis of Financial Condition, Results of Operations and Cash Flows for the Fourth Quarter and Financial Year, ended 31 March 2008, p. 49 - 50.Source: SingTel Optus, Regulatory Update, SingTel Investor Day 2006, 29 June 2006  Singapore, Paul Fletcher, Director, Corporate & Regulatory Affairs, Slide 11."Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows: " Plant and equipment in 2 - 5 years; " Equipment under finance lease over 3 - 15 years or over the lease term; and " Leasehold improvements over 3 - 15 years or over the lease term.)Source: iiNet, 2008 Annual Report, p. 85.Source: iiNet, 2008 Annual Report, p. 99: Notes to the Financial Statements for the year ended 30 June 2008, Revenue and expenses from continuing operations Total COGS!ULLS Broadband Internet customersJune Quarter 2007June Quarter 2008Average Subscribers for quarter)Source: iiNet, 2008 Annual Report, p. 20.)Source: iiNet, 2008 Annual Report, p. 32.=Source: iiNet, FY Annual Results 2007, August 2007, Slide 11.We have continued to expand the iiNet network in 2008 and invested $20.1 million on increasing the number of exchanges that contain iiNet DSLAM equipment as well as increasing the capacity of existing DSLAM equipment. This investment in our network infrastructure is a key enabler for the continuation of the strong on-net customer growth delivered in the 2008 year. iiNet now has DSLAM equipment in all of the major metropolitan exchanges across Australia with over 300 exchanges enabled for high speed DSL2+ broadband services. In January 2008 iiNet announced a long term international bandwidth capacity supply agreement with Pipe Networks. Pipe will be constructing a new cable from Australia to Guam which is expected to be complete in mid 2009 and will join existing cable systems to provide connectivity to Asia, the United States and Europe. This solution provides ample capacity to match iiNet s plans for growth of faster broadband services and content to its customers. International capacity represents approximately 15% of iiNet s cost of sales and upon switching to this service it will provide significant savings in bandwidth costs for iiNet, together with greater certainty of supply. Revenues EBITDA (%)EBIT (%)Quarter 31 March Year 31 MarchPay TVSMB Operational EBITDA15%8%10%7% Other COGS0Assumed ULLS charge embodied in On-Net ADSL COGSDAssumed "Other" COGS (difference between Total COGS and ULLS charge) CAPEX charge/Monthly depreciation charge per ADSL subscriber(Monthly capex charge per ADSL subscriber Sub TotalAllocation of D&A to Cost Items Cross Check#Costs net of allocated depreciationReported CostsReported Total RevenueHUnadjusted cost ratios (i.e. ratios that do not adjust for depreciation)8Ratios of Reported Cost Items to Reported Cost Sub TotalFDepreciation and amortisation expense included in the Income StatementQAdjusted Cost Ratios (i.e. ratios that net off depreciation) used in calculations@Depreciation or Capex charge for iiNet calculations (Choose One)Subscribers and ARPU - Summary#Cost of Goods Sold (COGS) - SummaryOther Opex - SummaryDepreciation - SummaryCapex - SummaryrNotes: (1) Approximate amounts based on Q4 FY06 and  Band 2 ULL undertaking of A$22/mth  includes LD interconnectULLS Cost EmbodiedpNotes: "Approximate amounts based on Q4 FY06 and  Band 2 ULL undertaking of A$22/mth  includes LD interconnect"Estimate of Total CapexG"To realise ULL benefits requires scale & good execution" Capex: A$150m<"To realise ULL benefits requires scale & good execution" Capex: A$150m Existing offnet base (2): >900k; reduces breakeven risk ULL will be EBITDA  ve in FY07: migration costs >A$10m per 100K subs!Average ADSL subscribers (On-Net)?Average ULLS Broadband Internet customers for June Quarter 2008 Capex Charge(Assumptions for iiNet/Optus calculations(Additional option for iiNet calculationsCalculation of opex ratios?Depreciation period, in years (see iiNet Depreciation Data tab)Depreciation CalculationsCapex CalculationsFor June quarterGross Margin (%) Optus Data Cost benefitA$ per month - approx.Monthly Resale ARPU(1)Resale costs(1) ULL costs(1)ADSL ARPU (implied by data presented)FY ended 30 JuneARPU per month [for Dec 07] On-Net (excluding any Naked DSL)Average Subscribers for yearRevenueiiNet Gross MarginEBITDAEBIT SubscribersTotal SubscribersExchanges connectedContinuing Operations Company 2008 Company 2007Rendering of servicesSale of hardwareIntercompany dividends- Other revenue#Cost of sales and services rendered Gross Profit Other incomeMarketing expenses Office costsAdministrative expenses Finance costs,Profit from continuing operations before taxIncome tax(expense)/benefit2Profit from continuing operations after income taxConsolidated 2008Consolidated 2007 Depreciation Consolidated 2008 Consolidated 2007(a) Other revenue #Bank and other interest received #Telstra LSS settlement interest Total (b) Other income Telstra LSS settlement (Gain on disposal of non-current assets Net gain on interest rate swap Stamp duty determination Other >(c) Employee benefits expense included in the Income StatementWages and salaries /Defined contribution superannuation expense +Expense arising from share based payments #Other employee benefits expense J(d) Depreciation and amortisation expense included in the Income StatementPlant and equipment Subscriber bases "Equipment under finance leases Leasehold improvements #Capitalised development costs !Subscriber acquisition costs Patents and trademarks (e) Finance costs "Bank and other interest charges "Finance lease interest charges Other borrowing costs F(f) Lease payments and other expenses included in the income statement+Minimum lease payments  operating leases On-NetOff-NetDial Fixed LineVOIPARPUMargin Gross costVoIP%Exchanges connected over 2008FY&Total exchanges connected (as at July) 2008FY Capex)Total capex associated with DSLAM networkAnnualised capex costs1Approximate cost per exchange connected in FY2008On Net (exc Naked)NakedOff Net Total DSLDial up SatelliteTotal Internet SubscribersFixed Line Voice (PSTN) Total RGUsOn-net (inc Naked)Off-net Gross Costs4iiNet, FY Annual Results 2007, August 2007, Slide 8:Fixed Phone Line RentalFixed Phone UsageCost of service Fixed Phone|FY07 Capex before rebates for exchange builds totalled $17.3m (includes $7m payment for FY06 capex) down $6.1m on prior year Capex ($m)HCalculations undertaken to net off depreciation from cost ratios (below) Zyyr>k~  +7R+t,*.W0P3Z"4,4E5O5s6}V7`*84b9l: ; *<4 = = @>J cc '  !@QN  dMbP?_*+%"?? 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