Market Announcements Office Australian Securities Exchange Level 4, 20 Bridge Street Sydney NSW 2000 Sydney, 25 February 2021 TPG Telecom Limited Results for Year Ended 31 December 2020 – Appendix 4E TPG Telecom Limited (ASX: TPG) today releases its results for the year ended 31 December 2020. Please find attached TPG Telecom’s Appendix 4E and Full Year Financial Report. A results presentation will be webcast live at 10.00am (Sydney time) on Thursday, 25 February 2021. The webcast link is as follows: https://www.openbriefing.com/OB/4146.aspx. A replay of the webcast will be available via the same link in the afternoon following the presentation. Authorised for lodgement by: Tony Moffatt Company Secretary TPG Telecom Limited [email protected] TPG Telecom Limited ABN 76 096 304 620 Level 1, 177 Pacific Highway, North Sydney, NSW 2060 Public TPG Telecom Limited (formerly named Vodafone Hutchison Australia Limited) ABN 76 096 304 620 and its controlled entities ASX Appendix 4E and Full-Year Financial Results for the year ended 31 December 2020 Contents ASX Appendix 4E 1 Chairman and CEO’s letter 2 Strategy and Performance 5 Key Risks 11 Operating and Financial Review 14 Directors’ Report 22 Remuneration Report 29 Auditor’s Independence Declaration 60 Financial Report 61 Consolidated Income Statement 62 Consolidated Statement of Comprehensive Income 63 Consolidated Statement of Financial Position 64 Consolidated Statement of Changes in Equity 65 Consolidated Statement of Cash Flows 66 Notes to the Consolidated Financial Statements 67 Directors’ Declaration 122 Independent Auditor’s Report 123 Lodged with the Australian Securities Exchange (‘ASX’) under Listing Rule 4.3A The ASX Appendix 4E and Full-Year Financial Results covers the group consisting of TPG Telecom Limited (formerly named Vodafone Hutchison Australia Limited) (‘TPG Telecom’, ‘the Company’) and its controlled entities (the ‘Group’). Vodafone Hutchison Australia Pty Limited (‘VHA’) converted to a public company on 19 June 2020 and changed its name to Vodafone Hutchison Australia Limited. On 29 June 2020, the Company changed its name from Vodafone Hutchison Australia Limited to TPG Telecom Limited. Reported results for TPG Telecom include the full year’s results of the company formerly named VHA and six months and four days’ contribution from TPG Corporation Limited (the company formerly named TPG Telecom (ASX: TPM)), post the merger accounting effective date of 26 June 2020. Full-Year Financial Results for the year ended 31 December 2020 1 TPG Telecom Limited (formerly named Vodafone Hutchison Australia Limited) ABN 76 096 304 620 and its controlled entities ASX Appendix 4E for the year ended 31 December 2020 Financial year ended 31 December 2020 (Previous corresponding period: Financial year ended 31 December 2019) Results for announcement to the market Reported results 2020 2019 CHANGE Revenue $m 4,350 3,513 24% Profit/(loss) for the year attributable to owners of the Company $m 741 (280) 365% Earnings per share attributable to owners of the Company $ 0.64 (0.68) 194% (basic and diluted) Earnings before interest, tax, depreciation and amortisation $m 1,391 1,178 18% Dividends The directors have declared a fully franked final 2020 dividend of 7.5 cents per share. The dividend has a record date of 17 March 2021 and will be paid on 14 April 2021. For information regarding the special dividends declared by TPG Corporation Limited prior to the merger, refer to Note 12 in the notes to the consolidated financial statements. There were no other ordinary dividends paid or declared by the Company during or since the current or previous corresponding periods. Net Tangible Assets1 2020 2019 Net tangible assets per security $ (1.39) (5.99) 1. Net tangible assets are calculated by deducting the value of intangible assets from the net assets of the Group. It should be noted that valuable assets owned by the Group, such as mobile spectrum licences and indefeasible rights of use of bandwidth capacity, are classified as intangible assets and are therefore excluded from the Group’s net tangible assets. 2 Chairman and CEO’s letter Dear Shareholders, 2020 was a year in which Australian society and the economy was subjected to significant unexpected shocks but also showed remarkable resilience. Telecommunications services played an essential part in the everyday lives of Australians, with the COVID-19 pandemic and the bushfire crisis highlighting the critical role that the sector plays in our society. While supporting our customers and employees through these difficult times, we completed Australia’s largest corporate merger in 2020, carefully navigated COVID and regulatory challenges to our operations, introduced 5G technology into our network, provided great value and service to our customers, made good progress on our merger integration plans, and delivered a maiden dividend of 7.5 cents per share to shareholders. We are better together as a merged company, delivering increased competition and innovation, and enhanced network services. TPG Telecom ends 2020 with its synergy program on track and a strong foundation for the future. We are pleased to share with you the details of our 2020 achievements and our 2021 priorities. 2020 highlights Following the implementation of the merger between the companies formerly named Vodafone Hutchison Australia (‘VHA’) and TPG Telecom on 13 July 2020, we set upon the important work of delivering the benefits to customers and shareholders. Customers began benefiting from the integration of our complementary network assets from day one, with additional spectrum, small cells and fibre links boosting mobile performance and capacity. Under a unified and experienced senior management team, we are smoothly integrating the two legacy entities. In a demonstration of our capabilities as a merged company, we have already secured contracts with several large Australian companies for mobile and fixed network services and became the highest seller of NBN Enterprise Ethernet since July 2020. We are fast-tracking our 5G mobile rollout, with 5G services now available in more than 350 suburbs in Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, the Gold Coast and Newcastle. Customer take-up of 5G devices has been strong and we now have more than 425,000 5G enabled smartphones on our mobile network. Across our family of brands, we have brought innovation, and more value to customers. During 2020, we achieved net growth of 117,000 fixed broadband subscribers and introduced highly competitive mobile and fixed products and offers. We also launched Infinite Data mobile plans with higher speed tiers and felix, our carbon neutral, digital-native brand. In 2H20, we also completed the rollout of Australia’s first city-wide 10 Gigabit network to 1,000 buildings in Adelaide in partnership with the City of Adelaide. We are also leveraging our extensive infrastructure to offer compelling NBN alternatives to increase fixed line margins. In the first half of 2021, we will begin offering 5G fixed wireless services to customers. We are pleased with the progress we have made, and we thank our employees for their hard work to deliver more every day for our customers. Financial performance Our results demonstrate that despite the impact of COVID, especially global travel restrictions, continued NBN headwinds, ongoing mobile competition and regulatory challenges, we have delivered for our customers and shareholders. While simultaneously completing the merger and managing these challenges, we were also regaining ground following uncertainty due to the merger delay and the 5G vendor restrictions. Full-Year Financial Results for the year ended 31 December 2020 3 As a result of the merger, we have a stronger balance sheet. And it says a lot about the Group’s underlying strength and resilience that we were able to produce a strong cash result and deliver a dividend in the current environment. As the merger was effective for accounting purposes from 26 June 2020, TPG Telecom’s reported results for 2020 include a full twelve months of TPG Telecom Limited (formerly named VHA) and a contribution of six months and four days from TPG Corporation Limited (formerly named TPG Telecom). Reported revenue for the year increased 24 per cent from 2019 to $4.35 billion and reported EBITDA increased by 18 per cent to $1.39 billion. We reported NPAT of $734 million, which includes a one-off, non-cash credit to income tax expense of $820 million. In the first six months post-merger, the Group has generated $341 million of net cash flow. The TPG Telecom Board resolved to pay a final dividend for 2020 of 7.5 cents per share. Becoming one company We have always recognised that a successful integration would be critical for our customers, employees, shareholders, and the future of TPG Telecom. It’s a big task, but we have taken it on with enthusiasm and urgency, leveraging the extensive experience and talent within our company. Every step of the way, we have made carefully considered decisions, while moving at pace to deliver the benefits of the merger as quickly as possible. The company has come together as one organisation under a unified senior management team and we have made significant progress on our integration priorities. l On the technology side, more than 1.8 million Australians are benefiting from enhanced mobile performance after we deployed 1800 MHz spectrum to around 320 sites around Australia. l We are nearing completion of a program to integrate over 400 small cells into the mobile network in Sydney, Melbourne, Brisbane and Adelaide. l Our program to connect additional mobile sites to dark fibre is ahead of schedule. l Around 60 per cent of iiNet mobile customers have so far migrated to the company’s mobile network. We have made good progress, but this is only the beginning. Our year ahead We head into 2021 with cautious optimism and a continued focus on delivering for customers and shareholders in the short, medium and long term.