Telstra 2015 Annual Report Download

Download and view the complete annual report

Please find the complete 2015 Telstra annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 191

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191

C
OUR BRILLIANT
CONNECTED FUTURE
Telstra Annual Report 2015

Table of contents

  • Page 1
    OUR BRILLIANT CONNECTED FUTURE Telstra Annual Report 2015 C

  • Page 2
    The sections of our Annual Report titled Our Business, The Year at a Glance, Chairman and CEO Message, Strategy and Performance and Full Year Results and Operations Review comprise our operating and financial review and form part of the Directors' Report. An overview of selected aspects of our ...

  • Page 3
    ... Build New Growth Businesses Our Material Business Risks Outlook Full Year Results and Operations Review Sustainability Our Approach Customer Experience Connecting Communities Our People Environmental Stewardship Responsible Business Board of Directors Senior Management Team Governance at Telstra...

  • Page 4
    ... can access technologies that create social, economic and cultural change. OUR VISION To be a world class technology company that empowers people to connect. OUR STRATEGY Our strategy is focused on driving growth and creating long term shareholder value. It has three key pillars. Our Strategic...

  • Page 5
    ... new growth opportunities and new technology in Australia and around the world, with our international presence spanning 20 countries, including a growing footprint in Asia. OUR BUSINESS Retail Consumer Providing a portfolio of Fixed voice, Data, Mobile, Media and value added products to customers...

  • Page 6
    THE YEAR AT A GLANCE Financial highlights 30.5 $4.3b 4G CENTS TOTAL DIVIDEND PER SHARE + $1b SHARE BUY BACK = $4.7b DISTRIBUTION TO SHAREHOLDERS NET PROFIT AFTER TAX 2 $26.6b $1b TOTAL INCOME3 INVESTED IN WIRELESS NETWORK Driving value from the core SERVICE NOW REACHING 94% of the ...

  • Page 7
    ... each month of our Telstra 24x7® App Growth and international expansion US ACQUISITION OF PACNET including the largest privately owned intra-Asia cable network $697m 5 + 29 DATA CENTRES 109 POINTS OF PRESENCE Launched Indonesian Joint Venture TELKOMTELSTRA increased ownership OOYALA...

  • Page 8
    ... revenues, adding fixed and mobile customer services, continuing to invest in our network advantage and returning $4.7 billion in dividends and buy-back proceeds to our shareholders. We continued to execute on our strategy to improve customer advocacy, drive value from our core business and build...

  • Page 9
    ...launched during the 2015 financial year and will develop and deliver innovative technology solutions across the health industry. National Broadband Network (NBN) During the year we finalised revised NBN Definitive Agreements with NBN Co and the Commonwealth, preserving value for shareholders, as we...

  • Page 10
    ..., Telstra's former Chief Financial Officer, became Chief Executive Officer, following the retirement of David Thodey. Telstra's new Chief Financial Officer, Warwick Bray, was previously the Group Managing Director of Products. That we were able to make these appointments from within the company is...

  • Page 11
    ...a Ann Annual n ual ua Re R Report ep po por or ort 2015 2015 15 15 Our strategy is focused on driving growth and creating long term shareholder value. It has three key pillars. Our strategic priorities • Improve customer advocacy • Drive value from the core • Build new growth businesses This...

  • Page 12
    .... We also know that our customers' views on Telstra go beyond their direct experiences, so we ask for feedback about us as a company. We use this feedback to help us work on the most important things to our customers. Net Promoter System (NPS) We use the Net Promoter System to measure how well...

  • Page 13
    ... business fixed broadband plans. Mobile Protect We launched Mobile Protect, a free service giving parents and carers the ability to closely monitor and manage the use of their households' mobile devices on our mobile network. The service allows site blocking, limiting periods of network connection...

  • Page 14
    ... Uniquely in Australia, Telstra Air member's homespots are created using innovative Wi-Fi sharing technology which sees members share a piece of their home broadband bandwidth and in return gain access to the Telstra Air Network. Telstra has reached a number of deals with local governments to bring...

  • Page 15
    ... 2015 we had 211,000 NBN connections, made up of 161,000 voice and data bundles, 9,000 data only and 41,000 voice only services. These customers now have access to higher speeds, which is driving increased use of video streaming, as well as helping businesses take advantage of online sales, cloud...

  • Page 16
    ...) The NAS portfolio provides our business, enterprise and government customers in Australia and internationally with managed network services, collaboration and security services along with a range of software as a service solutions. With another year of strong growth, we continued to make progress...

  • Page 17
    ... invests in high growth opportunities offering technology and solutions that leverage Telstra's assets and enable us to offer new products and services to our customers. For example, we work with Whispir*** and DocuSign to sell their products into Telstra's business, enterprise and government...

  • Page 18
    ..., increasing customer expectations of performance, and competitors with disruptive and simpler business models in both domestic and global markets. Management Plans Our strategy involves a combination of driving efficiencies in our business, monitoring new and disruptive technologies, and actively...

  • Page 19
    ... value from our core. Key capabilities include the areas of IT network simplification, product development and data analytics. In terms of building new growth businesses, we are focused on delivering the capabilities required for our Health business, enterprise managed services, software application...

  • Page 20
    ... is to make Telstra a world class technology company that empowers people to connect. We remain committed to implementing our strategy, to improve advocacy among customers, to drive value from the core of our business, and to invest in and build new growth businesses. Customer advocacy remains our...

  • Page 21
    _Telstra _ _Te Telstra lst st tra aA Ann Annual n ual nn a Re al R Report epor po p or rt 2015 20 015 15 15 Jaime Lee Head of Cloud Practice 19

  • Page 22
    ... results Our financial year 2015 results demonstrate that our strategy is working. Customer advocacy has improved, we continued to invest and drive value from our core business and we have laid the foundations for sustainable growth in our new businesses. The numbers and commentary in the product...

  • Page 23
    ... together our key retail businesses including Telstra Consumer, Telstra Business, Telstra Media Group and Telstra Healthâ„¢. Telstra Retail provides a full range of telecommunications products, services and solutions to consumer customers and to Australia's small to medium sized enterprises, as well...

  • Page 24
    Full Year Results and Operations Review_ Global Enterprise and Services Global Enterprise and Services (GES) is responsible for sales and contract management support for business and government customers in Australia and globally. It provides product management for advanced technology solutions ...

  • Page 25
    ... million as a result of increased customer connections however price pressures have impacted yields. There was strong growth in IP MAN, Telstra's next generation data access service providing high-speed IP access solutions for large to medium corporate enterprises and government departments. IP MAN...

  • Page 26
    ... acquisitions of O2 last financial year and Bridge Point in October 2014. Revenue growth of 8.1 per cent in unified communications was driven by increased IP telephony customer connections. Industry Solutions revenue growth of 41.6 per cent was led by NBN commercial works and contributions from TSM...

  • Page 27
    ... new accounting framework (under AASB 9 (2013)) which allows a component of Telstra's borrowing margin to be treated as a cost of hedging and deferred to equity. Summary Statement of Cash Flows FY15 $m Net cash provided by operating activities Total capital expenditure Sale of shares in controlled...

  • Page 28
    ... in sales revenue and debtors in newly acquired entities. Inventories also increased by $129 million due to the Planning Design Services Agreement and the Joint Deployment Works Contract with NBN Co. Inventories also increased to support higher mobile hardware sales. Non current assets increased by...

  • Page 29
    SUSTAINABILITY Our goal is to embed social and environmental considerations into our business in ways that create value for the company and our stakeholders. 27

  • Page 30
    ... benefits that new communication technologies can bring. Our Everyone Connected programs focus on making our products and services more accessible, enhancing digital literacy and cyber safety and supporting technological innovation for social good. Energy ef ciency & carbon emissions Resource use...

  • Page 31
    ... a number of new consumer products including Telstra Broadband Protect and Telstra Mobile Protect to help our customers stay safely connected. We are committed to providing consumers with the information they need to have a positive online experience. To access our free cyber safety materials...

  • Page 32
    ... services. Finding a job or accommodation, paying bills or staying in touch are all made simpler and quicker thanks to the internet and technology - provided you can get online. As a result we focus on ensuring that everyone can connect and benefit from being connected to communications technologies...

  • Page 33
    ... learning and development opportunities and are continuously improving our approach to health and safety. We're also investing in programs to attract and retain employees with the skills and passion to help transform Telstra into a world class technology company. LOST TIME INJURY FREQUENCY RATE...

  • Page 34
    ... full time, part time and casual staff in controlled entities within the Telstra Group, excluding contractors and agency staff. Information regarding the controlled entities in the Telstra Group can be found in Note 25 to the Financial Statements in this report. Notes: (i) Executive management...

  • Page 35
    ... also help our customers deal more effectively with e-waste. Throughout FY15 we collected 15.6 tonnes of mobile phones and accessories from Telstra retail stores, offices and repair centres through the MobileMuster program, a two per cent increase in collections for the year. Total carbon emissions...

  • Page 36
    ... plans and works with the community to determine acceptable sites for new base stations. This year, we continued our mobile safety SMS campaign, sending out more than 15 million messages referring customers to telstra.com/mobiletips, our information site for safe and responsible phone use...

  • Page 37
    BOARD OF DIRECTORS _Telstra Annual Report 2015 35

  • Page 38
    ... (from 2013). Chief Executive Officer and Managing Director since 1 May 2015. Mr Penn joined Telstra in 2012 as Chief Financial Officer. In this role, he was responsible for strategy, mergers and acquisitions, treasury, internal audit, risk management, tax, corporate planning, reporting and analysis...

  • Page 39
    ... Annual Report 2015 Non-executive Director since August 2013 and elected in October 2013. Mr Lim is an experienced company director and has almost 30 years of experience in the technology sector across the Asia Pacific Region. He is the Managing Partner of Stream Global Pte Ltd, a venture fund...

  • Page 40
    ...Global Enterprise and Services provides enterprise and Government customers in Australia and around the world with leading networks, advanced products and solutions, together with supporting services to enable the connected business world. It is also responsible for incubating Telstra Software Group...

  • Page 41
    Senior Management Team_ _Telstra Annual Report 2015 Andrew Penn Gordon Ballantyne Warwick Bray Tracey Gavegan Stuart Lee Kate McKenzie Carmel Mulhern Brendon Riley Tony Warren Cynthia Whelan Timothy Chen Robert Nason 39

  • Page 42
    ... management and assurance • Telstra Values, Code of Conduct and policy framework which define the standards of behaviour we expect of each other as we deliver on our purpose and achieve our strategy. Telstra Board Audit & Risk Committee Remuneration Committee Nomination Committee Chief Executive...

  • Page 43
    ... and strategy of our business. Following shareholder feedback and consistent with our capital management framework, in February 2015 we also announced the reactivation of our Dividend Reinvestment Plan for our shareholders. (improve customer advocacy, drive value from the core and build new growth...

  • Page 44
    .... Managing our risks Understanding and managing our risks is part of how we work. It helps us meet our business objectives and our legal and regulatory obligations, and to make better decisions and act ethically in the best interests of Telstra Group and our shareholders. We have a risk management...

  • Page 45
    ..., investors and the financial community with appropriate and timely information while ensuring we fulfil our statutory reporting obligations under the Corporations Act and the ASX Listing Rules. • Social media - providing guidance to employees and contractors who use social media, either as part...

  • Page 46
    ... was Group Managing Director Telstra Enterprise and Government where he was responsible for the Company's corporate, government and large business customers in Australia, TelstraClear in New Zealand and Telstra's International sales division. Dividend Final dividend for the year ended 30 June 2014...

  • Page 47
    ... Annual Report 2015 Information about our Directors and senior executives is provided as follows: • names of our current Directors and details of their qualifications, experience, special responsibilities, periods of service and directorships of other listed companies are given in the Board...

  • Page 48
    ...the Corporations Act 2001 (Corporations Act). The term "senior manager" is defined in the Corporations Act. The deeds in favour of Directors of Telstra also give Directors certain rights of access to Telstra's books and require it to maintain insurance cover for the Directors. Information on Telstra...

  • Page 49
    ... detailed in note 8 to the financial statements. The Directors are satisfied, based on advice provided by the Audit & Risk Committee, that the provision of non-audit services during financial year 2015 is consistent with the general standard of independence for auditors imposed by the Corporations...

  • Page 50
    ...the business and the value created for shareholders over the past four years. Key changes in FY15 During the year there were significant changes to our Senior Executive team, with the Chief Executive Officer (CEO) announcing his retirement, appointment of a new CEO and a new Chief Financial Officer...

  • Page 51
    ... outcomes 2015. the key contract terms governing the employment of Senior 3.4 Senior Executive contract details Lists Executives (including termination entitlements where relevant). 4. Non-executive director remuneration 4.1 Remuneration structure Provides details of the fee structure for Board and...

  • Page 52
    ... Term Incentive payable as cash for the remaining Senior Executives are as detailed in Table 5.1. (2) Includes the value of personal home security services provided by Telstra, provision of car parking and in the case of Gordon Ballantyne, return flight benefits to the United Kingdom and assistance...

  • Page 53
    ... Telstra's established corporate planning processes and Senior Executives continue to be accountable for achieving planned outcomes, including NBN related cash flows. Performance measures for future STI and LTI plans will continue to be developed using the most up to date forecasts for the financial...

  • Page 54
    ...financial transactions, (including margin loan arrangements), or engaging in stock lending arrangements. KMP are prohibited from entering into any hedging arrangement that limits the economic risk of holding Telstra securities under Telstra equity plans. This helps align executives' and shareholders...

  • Page 55
    ... New Zealand Ltd, part of the FY14 comparator group changed to Spark NZ Ltd on 8 August 2014 and remains in the FY15 comparator group under its new name. The Board has discretion to change members of the comparator group under the LTI plan terms. Telstra Corporation Limited and controlled entities...

  • Page 56
    ... the surveys from Telstra's Consumer (50 per cent), Small Business (15 per cent), Telstra Managed Business (10 per cent) and Global Enterprise and Services (25 per cent) customers. The surveys were undertaken by third party research companies. 54 Telstra Corporation Limited and controlled entities

  • Page 57
    ... party research company from 28 April 2015 through to 16 May 2015. The final result was audited by Telstra's Group Internal Audit team. The Board believes the methods of calculating the financial and NPS outcomes are appropriate, and a rigorous assessment of Telstra's performance. Senior Executive...

  • Page 58
    ... Remuneration as at the date of termination. There is no payment if termination is a result of serious misconduct or redundancy (in which case Telstra's redundancy policy overrides the termination provisions of a Senior Executive's service contract). 56 Telstra Corporation Limited and controlled...

  • Page 59
    .... Directors' shareholdings as at 13 August 2015 are set out in the Directors' Report on page 45 of this Annual Report. 4.3 Remuneration components Superannuation contributions are included within each nonexecutive Director's Total Remuneration, in accordance with the ASX Listing Rules and Telstra...

  • Page 60
    ...2015 2,175,479 2014 2,620,224 Robert Nason GE Business Support and Improvement Brendon Riley GE Global Enterprise and Services David Thodey Former Chief Executive Officer TOTAL CURRENT AND FORMER KMP 7,719,378 2015 9,868,784 10,100,039 Telstra Corporation Limited and controlled entities 2014...

  • Page 61
    ... benefits were paid in FY15. Remuneration Report (6) In accordance with AASB 2, the accounting value represents a portion of the fair value of Performance Rights, Restricted Shares and Performance Shares that had not yet fully vested as at the commencement of the financial year. This value...

  • Page 62
    ... and are subject to a Restriction Period. Half are restricted for one year and half for two years ending 30 June 2016 and 30 June 2017 respectively, subject to the Senior Executive's continued employment. Refer to 2.3 c) for further details. 60 Telstra Corporation Limited and controlled entities

  • Page 63
    Remuneration Report _Telstra Annual Report 2015 5.3 Summary of LTI plans and other equity plans as at 30 June 2015 Future Restriction financial Accounting value yet to Performance period Period end date years in vest (2) (1) which grants may Vest Min ($) Max ($) 1/07/12 - 30/06/15 1/07/13 - 30/06/...

  • Page 64
    ... Year 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 (1) The value of each equity instrument is calculated by applying valuation methodologies or is based on the market value of Telstra shares at the grant date as described in note 27 to the financial statements...

  • Page 65
    ... in Telstra Shares refer to Table 5.8. (6) Mr Bray's balance as reported for 30 June 2014 reflects his holding as at his appointment date as a Senior Executive, being 1 May 2015 and includes 60,000 Performance Rights that were allocated as a part of a retention share plan on 2 July 2012. Refer...

  • Page 66
    ... equity instruments vested/exercised reflects the market value at the date the instruments vested and were released from restriction. (*) STI Restricted Shares are excluded from this table, refer to tables 5.2 and 5.8 for further information. 64 Telstra Corporation Limited and controlled entities

  • Page 67
    Remuneration Report _Telstra Annual Report 2015 5.7 Non-executive Director remuneration Short term employee benefits Name Catherine B Livingstone Chairman Geoffrey A Cousins (3) Director Peter R Hearl (4) Director Russell A Higgins Director Chin Hu Lim (5) (6) Director John P Mullen Director Nora ...

  • Page 68
    .... These shares are subject to a restriction period, such that the non-executive Director or Senior Executive is restricted from dealing with the shares until the restriction period ends. Refer to note 27 to the financial statements for further details. 66 Telstra Corporation Limited and controlled...

  • Page 69
    ... salary plus company and private salary sacrificed superannuation contributions. Free Cashflow from operating and investing activities Group Executive Group Managing Director Key Management Personnel Long Term Incentive National Broadband Network Agreements with NBN Co and the Government in relation...

  • Page 70
    ...Andrew R Penn Chief Executive Officer and Managing Director 13 August 2015 SJ Ferguson Partner Sydney 13 August 2015 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 68 Telstra Corporation Limited and controlled entities

  • Page 71
    FINANCIAL REPORT

  • Page 72
    TELSTRA CORPORATION LIMITED AND CONTROLLED ENTITIES Australian Business Number (ABN): 33 051 775 556 Financial Report As at 30 June 2015 Page Number Financial Statements Income Statement Statement of Comprehensive Income Statement of Financial Position Statement of Cash Flows Statement of Changes ...

  • Page 73
    _Telstra Financial Report 2015 INCOME STATEMENT For the year ended 30 June 2015 Telstra Group Year ended 30 June 2015 2014 Note $m $m Continuing operations Income Revenue (excluding finance income) Other income Expenses Labour Goods and services purchased Other expenses Share of net profit from ...

  • Page 74
    ... to equity holders of Telstra Entity - income tax on actuarial gain on defined benefit plans - actuarial gain on defined benefit plans attributable to non-controlling interests Fair value of equity instruments reserve: - gains from investments in equity instruments designated at fair value through...

  • Page 75
    ... sale Total current assets Non current assets Trade and other receivables Inventories Investments - accounted for using the equity method Investments - other Property, plant and equipment Intangible assets Derivative financial assets Deferred tax assets Defined benefit asset Total non current assets...

  • Page 76
    ...Government grants received Net cash generated by operations Income taxes paid Net cash provided by operating activities Cash flows from investing activities Payments for: - property, plant and equipment - intangible assets Capital expenditure (before investments) - shares in controlled entities (net...

  • Page 77
    ... at 30 June 2015 Total equity $m 12,875 4,345 462 4,807 (3,567) 6 (198) 21 3 (61) 29 45 13,960 4,305 483 4,788 (3,700) (1,003) 22 (13) (27) 469 2 (54) 66 14,510 The notes following the financial statements form part of the financial report. Telstra Corporation Limited and controlled entities 75

  • Page 78
    ... from our equity accounted non-Australian investments in joint ventures and associated entities. (b) The cash flow hedging reserve represents the effective portion of gains or losses on remeasuring the fair value of hedge instruments, where a hedge qualifies for hedge accounting. The closing balance...

  • Page 79
    ... entities as a whole. Telstra Entity is the legal entity, Telstra Corporation Limited. Telstra Entity, the Company, is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange. Our financial year ends on 30 June. Unless we state...

  • Page 80
    ... in profit or loss. Impact of changes On adoption of AASB 9 (2013) we have classified our financial assets as subsequently measured at either amortised cost or fair value, depending on the business model for those assets and on the assets' contractual cash flow characteristics. As at 1 July 2014, we...

  • Page 81
    ... cost Fair value through profit or loss / other comprehensive income $m 5,222 4,172 973 127 $m 5,222 4,172 973 127 For more details on the classification of financial assets see note 17. (ii) Changes to hedge accounting AASB 9 (2013) aligns hedge accounting more closely with common risk management...

  • Page 82
    ...-2012 and 20112013 Cycles, Part B: Defined Benefit Plans: Employee Contributions (Amendments to AASB 119), Part C: Materiality" • Interpretation 21: "Levies". These new accounting standards do not have any material impact on our financial results. An entity is considered to be a controlled entity...

  • Page 83
    .... It approximates fair value less cost of disposal. We calculate net realisable value of inventories by making certain price assumptions to project selling prices into the future and assumptions about technologies at reporting date. Telstra Corporation Limited and controlled entities 81

  • Page 84
    ... Telstra Entity CGU excludes the hybrid fibre coaxial (HFC) cable network, which we consider not to be integrated with the rest of our telecommunications network for the purposes of generating independent cash flows. Refer to note 21 for further details. (b) Financial assets At each reporting date...

  • Page 85
    ... Communication assets Network land and buildings Network support infrastructure Access fixed Access mobile Content/IP products - core Core network - data Core network - switch Core network - transport Specialised premise equipment International connect Managed service Network control layer Network...

  • Page 86
    ... rate of return on the net investment outstanding in respect of the lease. Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. (b) Internally generated intangible assets Research costs are recorded as an expense as incurred. Management...

  • Page 87
    ... months of reporting date, including long service leave, at the present values of future amounts expected to be paid. This is based on projected increases in wage and salary rates over an average of 10 years, experience of employee departures and periods of service. We calculate present values using...

  • Page 88
    ... employee share plans are recorded as a reduction in share capital. Refer to note 2.21 for further details on our accounting for employee share plans. 2.17 Revenue recognition Our categories of sales revenue are recorded after deducting sales returns, trade allowances, discounts, sales incentives...

  • Page 89
    ... of the customer order • Telstra has risks of ownership of the product or delivery of the services • Telstra is involved in price setting • Telstra is involved in determining the product or service specifications • Telstra bears the credit risk. (h) Sales incentives Sales incentives are...

  • Page 90
    ... available to us in the form of reductions in future contributions or as a cash refund. Fair value is used to determine the value of the plan assets at reporting date and is calculated by reference to the net market values of the plan assets. 88 Telstra Corporation Limited and controlled entities

  • Page 91
    ...period of service. We own 100 per cent of the equity of Telstra Growthshare Pty Ltd, the corporate trustee for Growthshare. We also consolidate the results, position and cash flows of Growthshare. We recognise an expense for all share-based remuneration determined with reference to the fair value at...

  • Page 92
    ... changes in fair values or cash flows of hedged items. Purchases and sales of derivative financial instruments are recognised on the date on which we commit to purchase or sell an asset or liability. (a) Fair value hedges Where fair value hedges qualify for hedge accounting, the gains or losses...

  • Page 93
    ... that the net result primarily reflects the impact of movements in interest rates and the discounting impact of future cash flows on the derivatives. Any gains or losses on remeasuring to fair value forward exchange contracts that are not in a designated hedging relationship are recognised directly...

  • Page 94
    ... reporting the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. AASB 15 and AASB 2014-5 apply to Telstra from 1 July 2017, with early application permitted. The International Accounting Standards Board (IASB) has confirmed a one-year...

  • Page 95
    ... to the Financial Statements (continued) _Telstra Financial Report 2015 NOTE 3. EARNINGS PER SHARE Telstra Group Year ended 30 June 2015 2014 cents cents Earnings per share from continuing operations Basic Diluted Earnings used in the calculation of basic and diluted earnings per share Profit for...

  • Page 96
    ... share Previous year final dividend paid Interim dividend paid Total dividends paid Dividends paid are fully franked at a tax rate of 30 per cent. Dividends per share in respect of each financial year are detailed below. During the financial year 2015, we have also completed an offmarket share buy...

  • Page 97
    ... Enterprise and Services (GES) is responsible for: • sales and contract management support for business and government customers in Australia and globally • management of Telstra's networks outside Australia • product management for advanced technology solutions, including data and Internet...

  • Page 98
    ... cent investment in Project Sunshine I Pty Ltd, the new holding company of the Sensis Group. Refer to note 26 for further details. (c) Following the disposal of our entire 55 per cent shareholding in Sequel Media Inc. and its controlled entities (Sequel Media Group) on 26 November 2014, the current...

  • Page 99
    ... 25,872 Telstra Group Year ended 30 June 2015 2014 Note $m $m Income from our products and services Fixed Mobile Data & IP Network applications and services Media CSL Group Global connectivity Other sales revenue (f) Other revenue (g) Other income Sensis Group Total income (excluding finance income...

  • Page 100
    ... the Universal Services Obligation (USO), the Retraining Fund Deed NBN Definitive Agreement (which was received in financial year 2012 and is being used to retrain certain employees over a period of eight to 10 years) and other individually immaterial contracts accounted for as government grants. 12...

  • Page 101
    ... intangible assets Finance costs Interest on borrowings Net interest on defined benefit plan Loss on fair value hedges - effective (c) Loss/(gain) on cash flow hedges - ineffective Loss on borrowing transactions not in a designated hedge relationship/de-designated from fair value hedge relationships...

  • Page 102
    ... is partly due to changes implemented in the way we designate fair value hedges for accounting purposes and the adoption of AASB 9 (2013), which allows a component of Telstra's borrowing margin associated with cross currency swaps to be treated as a cost of hedging and deferred to equity. Residual...

  • Page 103
    ... the Chief Financial Officer, the Chairman of the Audit & Risk Committee or the Audit & Risk Committee, unless covered by the Audit & Risk Committee pre-approval. The level of approval will depend upon the nature of the services provided and fees involved, subject to confirmation by both management...

  • Page 104
    ... recognised in the income statement) Property, plant and equipment Intangible assets Borrowings and derivative financial instruments Provision for employee entitlements Revenue received in advance Allowance for doubtful debts Defined benefit (asset)/liability (c) Trade and other payables Provision...

  • Page 105
    ... June 2015, our deferred tax assets not recognised in the statement of financial position include an estimate of the capital loss on disposal of the Sensis Group in February 2014, and impact of acquisitions and divestments of other controlled entities. 48 349 306 703 The Telstra Entity, as the head...

  • Page 106
    ... by joint ventures and associated entities - loans Finance lease receivable (b) Other receivables 29 29 476 459 (7) 452 201 42 243 1,171 (a) Trade receivables and allowance for doubtful debts The ageing of current and non current trade receivables is detailed below. Telstra Group As at 30 June Gross...

  • Page 107
    ...communication assets dedicated to solutions management and outsourcing services that we provide to our customers. The weighted average term of finance leases entered into is 5.3 years (2014: 3.8 years). Telstra Group As at 30 June 2015 2014 $m $m Amounts receivable under finance leases Within 1 year...

  • Page 108
    ... Financial Statements (continued) NOTE 11. INVENTORIES Telstra Group As at 30 June 2015 2014 $m $m Current Finished goods recorded at cost Finished goods recorded at net realisable value Total finished goods Raw materials and stores recorded at cost Construction contracts (a) Non current Finished...

  • Page 109
    ... the total share of equity accounted profits of $19 million (2014: $24 million), after share of losses from other associated investments. Financial information related to the discontinued operation is set out below. Sensis Group Year ended 30 June 2015 2014 $m $m 12.2 Prior Year (a) Sensis disposal...

  • Page 110
    ... of the Sensis Group is detailed below: Sensis Group Year ended 30 June 2014 $m Consideration on disposal Cash consideration Fair value of investment in the associate Total consideration on disposal Assets/(liabilities) at disposal date Assets classified as held for sale (a) Liabilities classified...

  • Page 111
    ...$58 million (2014: $53 million) net book value of buildings under finance lease. (b) Includes certain network land and buildings which are essential to the operation of our communication assets. Telstra Corporation Limited and controlled entities Land and site Commuimprove- Buildings nication ments...

  • Page 112
    ...the Financial Statements (continued) NOTE 13. PROPERTY, PLANT AND EQUIPMENT (continued) 13.1 Work in progress As at 30 June 2015, the Telstra Group has property, plant and equipment under construction amounting to $598 million (2014: $550 million). As the assets are not installed and ready for use...

  • Page 113
    Notes to the Financial Statements (continued) _Telstra Financial Report 2015 NOTE 14. INTANGIBLE ASSETS Telstra Group As at 30 June 2015 2014 $m $m Goodwill At cost Accumulated impairment Internally generated intangible assets Software assets developed for internal use Accumulated amortisation ...

  • Page 114
    ... the Financial Statements (continued) NOTE 14. INTANGIBLE ASSETS (continued) Telstra Group Software assets developed Goodwill (a)(b) $m $m Written down value at 1 July 2013 - additions - acquisition of controlled entities - disposal through sale of controlled entities (f) - impairment losses from...

  • Page 115
    Notes to the Financial Statements (continued) _Telstra Financial Report 2015 NOTE 15. TRADE AND OTHER PAYABLES Telstra Group As at 30 June 2015 2014 $m $m Current Trade creditors (a) Accrued expenses Accrued capital expenditure Accrued interest Contingent consideration Other creditors (a) Non ...

  • Page 116
    ... employee benefits Telstra Group As at 30 June 2015 2014 $m $m 844 838 147 11 553 1,555 135 40 440 1,453 Weighted average projected increase in salaries, wages and associated on-costs Discount rates Employee benefits are measured at their present value. Refer to note 2.14 for further details...

  • Page 117
    ... an estimate of the termination benefits that affected employees will be entitled to. The execution of these detailed formal plans, for which the redundancy provision has been raised, is expected to be completed during financial year 2016. Telstra Corporation Limited and controlled entities 115

  • Page 118
    ... to shareholders, return capital to shareholders or issue new shares. During financial year 2015, we paid dividends of $3,699 million (2014: $3,545 million). Refer to note 4 for further details. During the year we completed an off-market share buy-back at a price of $4.60 per share for a total cost...

  • Page 119
    ... a hedge relationship Finance leases payable Commercial paper Offshore borrowings Domestic borrowings Total borrowings Derivative assets by hedge designation Fair value hedges Cross currency swaps Interest rate swaps Cash flow hedges Cross currency swaps Interest rate swaps Forward contracts Not in...

  • Page 120
    ... in active market, the fair value measurement was transferred from Level 3 to Level 1 of the fair value hierarchy at 30 June 2015. (f) During the financial year, we have not received any dividends from our investments in equity instruments. 118 Telstra Corporation Limited and controlled entities

  • Page 121
    ..., with changes in fair value recognised in profit or loss. Contingent consideration Level 3 $m 10 10 24 (2) (8) 24 Table D Opening balance 1 July 2013 Additions Closing balance 30 June 2014 Additions (a) Remeasurement recognised in the income statement Amounts used Closing balance 30 June 2015...

  • Page 122
    ... Gross debt Cash and cash equivalents Net debt Other interest bearing financial assets at amortised cost Finance lease receivable Amounts owed by joint ventures and associated entities Other receivables (a) Net interest bearing financial liabilities Equity investments at fair value Listed securities...

  • Page 123
    ... in cash flow and fair value hedges hedges Commercial paper in fair value hedges Derivatives hedging net investments in foreign operations Other financial instruments Commercial paper Offshore borrowings not in a hedge relationship Domestic borrowings not in a hedge relationship Finance leases Other...

  • Page 124
    ... or similar agreements: Table H Trade and other receivables Trade and other payables Derivative financial assets Derivative financial liabilities Total Telstra Group Gross amounts not offset in the statement of financial position (a) Net amounts of financial Amounts that instruments Net amounts...

  • Page 125
    ... inter operative tariff arrangements with some of our international roaming partners, we have executed agreements that allow the netting of amounts payable and receivable by us on cessation of the contract • for our wholesale customers we have executed Customer Relationship Agreements which allow...

  • Page 126
    ... hedge relationships that are used for financial risk management. 18.1 Risk and mitigation (a) Interest rate risk Our risk exposure to changes in market interest rates arises primarily as a result of our debt obligations. Borrowings issued at fixed rates expose us to fair value interest rate risk...

  • Page 127
    ... paper Net forward contract liability (d) Total Australian dollar instruments Foreign interest rates Fixed rate instruments Finance lease payable Offshore borrowings Variable rate instruments Cash and cash equivalents (b) Total foreign dollar instruments Other interest bearing financial assets Fixed...

  • Page 128
    ...• changes in the fair value of derivatives which are in effective cash flow hedge relationships are assumed to be reported solely in equity • there is no material net impact to finance costs as a result of fair value movements on derivatives designated in effective fair value hedge relationships...

  • Page 129
    ... a number of financial institutions. We also manage our credit exposure using a value at risk (VaR) methodology. This measures the maximum potential exposure of risk positions in the future as a result of movements in market rates over a specified time horizon, given a specified confidence level...

  • Page 130
    ... Forward foreign exchange contracts receivable Net interest rate swaps payable (c) Net interest rate swaps receivable (c) Total Telstra Group Contractual maturity (nominal cash flows) As at 30 June 2015 As at 30 June 2014 1 to 2 2 to 5 Over 5 Less than 1 to 2 2 to 5 Over 5 Total years years years...

  • Page 131
    ...2015 2014 $m $m 195 1,500 300 1,995 559 559 We enter into cross currency swaps, interest rate swaps, and forward foreign exchange contracts to offset these risks. To the extent permitted by AASB 9 (2013), we formally designate and document these financial instruments as fair value, cash flow or net...

  • Page 132
    ... designated in hedging relationships as natural offset achieves substantially the same accounting results. This primarily includes forward foreign currency contracts that are used to economically hedge fair value movements attributable to exchange rate fluctuations associated with trade creditors...

  • Page 133
    ... fair value and cash flow hedge relationships, refer to note 2.1(a) for further details. Table H shows the ineffectiveness relating to financial instruments in designated fair value hedges that are included in net debt. Table H Telstra Group Year ended 30 June 2015 2014 (Gain)/ (Gain)/ loss loss...

  • Page 134
    ... 2015 was $3 million asset (2014: ($18) million liability). Telstra Group Pre hedge exposure Forward contract (pay)/receive As at 30 June 2014 Average Australian exchange dollars rate m $m $ Local currency m Forward contracts hedging interest bearing debt Commercial paper United States dollars...

  • Page 135
    Notes to the Financial Statements (continued) _Telstra Financial Report 2015 NOTE 19. SHARE CAPITAL Contributed equity Share loan to employees Shares held by employee share plans Net services received under employee share plans Telstra Group As at 30 June 2015 2014 $m $m 5,284 5,793 (15) (93) 22...

  • Page 136
    ... income Finance costs Distribution from Foxtel Partnership Share based payments Defined benefit plan expense Consideration in kind Net gain on disposal of property, plant and equipment Fair value gain on equity instruments Net loss/(gain) on disposal of controlled entities Share of net (profit) from...

  • Page 137
    ..." criteria for equity accounting as an associate. On 1 July 2014, i.e. the first time adoption date of AASB 9 (2013): "Financial Instruments", the existing investment was remeasured at fair value with subsequent changes to be recorded through profit or loss. The investment was revalued immediately...

  • Page 138
    ...) at acquisition date Cash and cash equivalents Trade and other receivables Intangible assets Other assets Trade and other payables Deferred tax liabilities Net assets Goodwill on acquisition Total purchase consideration (a) Carrying value in entity's financial statements The fair value of trade and...

  • Page 139
    ... the Statement of Cash Flows. The aggregate non-controlling interests amounting to $22 million recognised at the acquisition dates of the above acquisitions were measured as a proportionate share of identifiable net assets. (a) Carrying value in entity's financial statements The fair value of trade...

  • Page 140
    ...was paid for iCareHealth during the financial year 2015. (b) Carrying value in entities' financial statements The fair value of trade and other receivables amounted to $35 million and equalled the gross contractual amount which is expected to be collectible. Since the dates of acquisition, all these...

  • Page 141
    ...the net assets of the five variable interest entities controlled by Sharp Point Group Limited. Unlike the Sensis Group, the CSL Group does not meet the criteria of a discontinued operation under AASB 5: "Non Current Assets Held for Sale and Discontinued Operations". Telstra Corporation Limited and...

  • Page 142
    ...customer access network and the core network, are considered to be working together to generate our cash inflows. No one item of telecommunications equipment is of any value without the other assets to which it is connected in order to achieve delivery of our products and services. Telstra UK Group...

  • Page 143
    ...Financial Statements (continued) _Telstra Financial Report 2015 NOTE 21. IMPAIRMENT (continued) 21.2 Impairment testing (continued) (a) Cash generating units with allocated goodwill (continued) (ii) Fair value less cost of disposal From 30 June 2014 onwards and following the Autohome Inc. listing...

  • Page 144
    ... Total capital expenditure commitments contracted for at balance date but not recorded in the financial statements: Telstra Group As at 30 June 2015 2014 $m $m Property, plant and equipment commitments (a) Intangible assets commitments (b) 684 174 880 1,350 22.3 Finance lease commitments Telstra...

  • Page 145
    ... Entity contingent liabilities. 23.2 Other Other contingent liabilities identified for the Telstra Group relate to the ASIC deed of cross guarantee. A list of the companies that are part of our deed of cross guarantee is included in note 25. Each of these companies (except Telstra Finance Limited...

  • Page 146
    ... receive fixed contributions and our legal or constructive obligation is limited to these contributions. The present value of our obligations for the defined benefit plans is calculated by an actuary using the projected unit credit method. This method determines each year of service as giving rise...

  • Page 147
    ... risk includes interest rate risk, equity price risk and foreign currency risk. The strategic investment policy of the fund is to build a diversified portfolio of assets across equities, alternative investments, fixed interest securities and cash to generate sufficient growth to match the projected...

  • Page 148
    ... fair value of total plan assets for defined benefit divisions as at 30 June is as follows: Telstra Super As at 30 June 2015 2014 % % Asset allocations Equity instruments - Australian equity (a) - International equity (a) - Private equity Debt instruments - Fixed Interest (a) Property Cash and cash...

  • Page 149
    ... benefit plan obligation at the end of the reporting period is 9 years (2014: 10 years). 24.3 Other defined benefit schemes Our controlled entities also participate in both funded and unfunded defined benefit schemes, which are individually and in aggregate immaterial. Telstra Corporation Limited...

  • Page 150
    ... % of equity held by of investment ($) immediate parent As at 30 June As at 30 June 2015 2014 2015 2014 Name of entity Parent entity Telstra Corporation Limited (a) Controlled entities Chief Entertainment Pty Ltd Research Resources Pty Ltd Telstra 3G Spectrum Holdings Pty Ltd Telstra Communications...

  • Page 151
    ... (a) (f) NSC Group Pty Ltd (a) • NSC Enterprise Solutions Pty Ltd (a) • NSC NZ Limited Telstra Holdings Pty Ltd (a) • Pacnet Limited (c) (f) (i) • Asia Communications Investment Holdings (Taiwan) Ltd (c) (f) (i) • Pacnet Services Corporation Limited (c) (f) (i) • Pacnet Internet (S) Pte...

  • Page 152
    ... Financial Statements (continued) NOTE 25. INVESTMENTS IN CONTROLLED ENTITIES (continued) 25.1 List of our investments in controlled entities (continued) Telstra Group Telstra Entity's recorded amount % of equity held by of investment ($) immediate parent As at 30 June As at 30 June 2015 2014 2015...

  • Page 153
    ...• Goodwin Enterprises (Vic) Pty Ltd • Prentice Management Consulting Pty Ltd • O2 Networks Pty Ltd. The following entities were added via an assumption deed on 22 June 2015: • Telstra Plus Pty Ltd • Bridge Point Communications Pty Ltd. Telstra Finance Limited is trustee of the closed group...

  • Page 154
    ...Inventories Investments - accounted for using the equity method Investments in controlled entities Investments - other Property, plant and equipment Intangible assets Deferred tax assets Derivative financial assets Defined benefit asset Total non current assets Total assets Current liabilities Trade...

  • Page 155
    ... Financial Report 2015 NOTE 25. INVESTMENTS IN CONTROLLED ENTITIES (continued) 25.1 List of our investments in controlled entities (continued) (a) ASIC deed of cross guarantee financial information (continued) Closed group statement of comprehensive income Closed group Year ended 30 June 2015 2014...

  • Page 156
    ... to note 20 for details of business combinations for the financial year 2015. (g) Changes in controlling interest During the year we decreased our ownership of Autohome Inc. from 63.2 per cent at 30 June 2014 to 54.3 per cent at 30 June 2015, via share buy-back, subsequent initial public offering...

  • Page 157
    ... call centre solution Software as a solution provider Software development Holding entity of Sensis Pty Ltd (directory services) Advertiser focused demand side platform provider Cloud based business process guidance software Video analytics software provider Mobile security system provider Network...

  • Page 158
    ... investment in Project Sunshine I Pty Ltd, the holding company of the Sensis Group. (b) During the year, Project Sunshine I Pty Ltd returned capital of $45 million and paid dividends of $14 million (2014: nil). Telstra Group Year ended/As at 30 June Joint ventures Associated entities 2015 2014 2015...

  • Page 159
    ...not a publicly listed entity. Telstra has a strategic partnership with Foxtel primarily delivering subscription television services over cable, satellite and broadband to our customers in Australian regional and metropolitan areas. Equity accounting of our investment in Foxtel is currently suspended...

  • Page 160
    ... ventures and associated entities. Our share of the aggregate financial information (including joint ventures and associated entities where equity accounting has been suspended) is presented in the table below: Telstra Group Year ended 30 June Joint ventures Associated entities 2015 2014 2015 2014...

  • Page 161
    ... if the executive ceases employment due to retirement or expiry of a fixed term contract, providing that notice of retirement or fixed term contract expiry is more than six months after the actual allocation date. Restricted shares allocated in financial years 2015, 2014 and 2013 may be forfeited...

  • Page 162
    ...executive LTI plans, the Board may, in its discretion, reset the hurdles governing the financial year 2015, 2014 and 2013 equity instruments to make them consistent with the changed circumstances resulting from the occurrence of certain factors, including: • a material change in strategic business...

  • Page 163
    ... hurdles. Employee Share Plan (ESP) restricted shares As part of the financial year 2015, 2014, 2013 and 2012 ESP, certain eligible employees were provided with restricted shares. There are no performance hurdles for these restricted shares. Telstra Corporation Limited and controlled entities 161

  • Page 164
    ... Financial Statements (continued) NOTE 27. EMPLOYEE SHARE PLANS (continued) 27.1 Telstra Growthshare Trust (continued) (b) Long term incentive (LTI) plans (continued) (iv) Summary of movements and other information Telstra Group Number of equity instruments Outstanding at 30 June 2014 Growthshare...

  • Page 165
    ... to the Financial Statements (continued) _Telstra Financial Report 2015 NOTE 27. EMPLOYEE SHARE PLANS (continued) 27.1 Telstra Growthshare Trust (continued) (b) Long term incentive (LTI) plans (continued) (iv) Summary of movements and other information (continued) Telstra Group Number of equity...

  • Page 166
    ...for the financial years 2011 allocations of performance rights, and $6.10 for financial years 2012, 2013, 2014 and 2015 allocations of ESP restricted shares respectively. These share prices were based on the closing market price on the exercise dates. 164 Telstra Corporation Limited and controlled...

  • Page 167
    ... year 2015 or 2014. Share price Risk free rate Dividend yield Expected stock volatility Expected life Expected rate of achievement of TSR performance hurdles (a) The date on which the instruments become exercisable. For financial year 2015 LTI FCF ROI and RTSR performance rights, the fair value...

  • Page 168
    ... the date of commencement of his employment. During financial year 2015, the second and final tranche of 48,250 performance shares vested on 14 December 2014. 27.2 TESOP99 As part of the Commonwealth's sale of its shareholding in financial years 2000 and 1998, Telstra offered eligible employees the...

  • Page 169
    ... Inc., operates two share incentive plans, the 2011 Plan and the 2013 Plan, which allows the company to grant equity-settled and cash-settled share-based awards to its employees, directors and consultants. Options, restricted shares, restricted share units and share appreciation rights (applicable...

  • Page 170
    ...of the Telstra Group. Hence, KMP are deemed to include the following: • the non-executive Directors of the Telstra Entity • certain executives in the Chief Executive Officer's (CEO's) senior leadership team, including the CEO. 28.1 KMP aggregate compensation During financial years 2015 and 2014...

  • Page 171
    ... fees to Sensis Pty Ltd amounting to $190 million for undertaking agency and contract management services for the national directory service. (b) During financial year 2015, the Telstra Entity recorded dividend revenue, including mainly: • $240 million (2014: $150 million) from Telstra Media Pty...

  • Page 172
    Notes to the Financial Statements (continued) NOTE 29. RELATED PARTY DISCLOSURES (continued) 29.1 Transactions involving our controlled entities (continued) (e) The Telstra Entity operates a current account with some of its controlled entities, being an internal group bank account used to settle ...

  • Page 173
    ... course of business and on normal commercial terms and conditions. Details of individually significant transactions involving our joint ventures and associated entities during financial year 2015 are as follows: • We purchased pay television services amounting to $742 million (2014: $668 million...

  • Page 174
    ... Financial Statements (continued) NOTE 30. PARENT ENTITY INFORMATION Telstra Entity As at 30 June 2015 2014 $m $m Statement of financial position Total current assets Total non current assets (a) Total assets Total current liabilities Total non current liabilities Total liabilities Share capital...

  • Page 175
    ...monetary limits totalling $72 million (2014: $45 million) and a requirement that the entity remains our controlled entity • during financial year 1998 we resolved to provide IBM Global Services Australia Limited (IBMGSA) with guarantees issued on a several basis up to $210 million as a shareholder...

  • Page 176
    ... years: • our operations • the results of those operations • the state of our affairs other than the following: 31.1 Final dividend On 13 August 2015, the Directors of Telstra Corporation Limited resolved to pay a fully franked final dividend of 15.5 cents per ordinary share. The record date...

  • Page 177
    ...with the Accounting Standards applicable in Australia, International Financial Reporting Standards and Interpretations (as disclosed in note 1.1 to the financial statements), and Corporations Regulations 2001 (ii) give a true and fair view of the financial position of Telstra Corporation Limited and...

  • Page 178
    ... financial year. Directors' Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls...

  • Page 179
    ... 2,462,993,913 7,297,192,886 12,225,655,836 % 2.96 9.99 7.21 20.15 59.69 100.00 The number of shareholders holding less than a marketable parcel of shares was 9,802 holding 360,360 shares (based on the closing market price on 20 July 2015). Telstra Corporation Limited and controlled entities 177

  • Page 180
    ...QUESTOR FINANCIAL SERVICES LIMITED 14 NAVIGATOR AUSTRALIA LTD 15 TELSTRA GROWTHSHARE PTY LTD 16 EQUITAS NOMINEES PTY LTD 17 NULIS NOMINEES (AUSTRALIA) LIMITED 18 NETWORK INVESTMENT HOLDINGS PTY LTD 19 MILTON CORPORATION LIMITED 20 NETWEALTH INVESTMENTS LIMITED Total for Top 20 Number of shares 1,880...

  • Page 181
    ..., part time and casual staff in Telstra Corporation Limited and its wholly owned subsidiaries, excluding contractors and agency staff. It does not include staff in any other controlled entities within the Telstra Group. Executive management comprises persons holding roles within Telstra designated...

  • Page 182
    ...2013, Telstra Octave Holdings Limited acquired the remaining 33 per cent interest in Octave Investments Holdings Limited in exchange for selling the net assets of the five variable interest entities controlled by Sharp Point Group Limited. As our control did not change in Octave Investments Holdings...

  • Page 183
    ... access to the internet at fast speeds. Data is carried over the copper network phone lines. These data speeds can enable the delivery of voice, data and video services. The NBN Co Fixed Wireless network uses advanced wireless technology such as LTE or 4G to deliver services to a fixed number...

  • Page 184
    .... A company's profit divided by the number of shares on issue. Points of presence (network) An access point (port) that enables Internet Service Provider (ISP) customers to enter the internet network from outside the Telstra network. Free cash ow Wi-Fi The most prevalent form of WLAN technology...

  • Page 185
    NOTES 184

  • Page 186
    NOTES _Telstra Annual Report 2015 185

  • Page 187
    ......48-67 Risk Management ...16, 17, 40 C Carbon Emissions ...5, 7, 33 Cash Flow Statement ...25, 74 CEO remuneration...48, 50 Chairman and CEO's Message...6-8 Check-In ...10, 11 Code Club ...30 Committees of the Board ...40-41 Community ...7, 30 Controlled Entities ...148-154 Contact Details ...188...

  • Page 188
    ... online at www.linkmarketservices.com.au/telstra. Shareholders require their SRN/HIN and postcode for access and then can view and update information under the following menu options: Holdings - transaction history, holding balance and value and latest closing share price. Payment and Tax - dividend...

  • Page 189
    ...listed on Stock Exchanges in Australia and in New Zealand (Wellington) Websites Telstra Investor Centre telstra.com/investor Telstra Sustainability telstra.com/sustainability INDICATIVE FINANCIAL CALENDAR 1 Final dividend paid Annual General Meeting Half Year Results announcement Ex-dividend share...

  • Page 190
    F

  • Page 191
    telstra.com/investor