TPG Telecom (TPG) Update Summary Company Overview - **Company**: TPG Telecom - **Date of Briefing**: August 04, 2025 - **Key Speakers**: Paul Hutton (Investor Relations), Innaki Beretta (CEO), John Bonicoli (CFO), James Hall (General Manager of Capital Markets) Key Points Financial Position and Capital Management - TPG has completed the Vocus transaction, resulting in cash proceeds of **$4.7 billion** [2] - Plans to return up to **$3 billion** to shareholders through a pro rata capital reduction, translating to a cash distribution of **$1.61 per share** [3][6] - Up to **$2.4 billion** of bank borrowings will be repaid, aiming for an investment-grade financial position [3][8] - Annual dividends will remain at **$0.18 per share** for 2025, with intentions to grow over time as profits increase [4][12] Strategic Moves and Market Position - The Vocus transaction has streamlined TPG's structure, enhancing its competitive position as a cost-efficient mobile-led telco [5] - TPG aims to increase minority shareholder ownership through a reinvestment plan, allowing shareholders to reinvest their capital reduction distribution into new shares [7] - The company has established a long-term partnership with Vocus to grow customer numbers and data volumes [5] Operational Performance - TPG's fiber network and enterprise business were previously subscale; the Vocus deal has improved the economics of TPG's network access [5] - The company reported a **6.1%** increase in EBITDA for 2024 compared to 2023, with a pro forma EBITDA guidance of **$1.6 billion to $1.655 billion** for FY 2025 [21][20] - Operating free cash flow increased by **$490 million** between 2023 and 2024, indicating a healthy underlying business [20] Subscriber Metrics - Mobile subscribers increased by **100,000** to **5.615 million** [29] - Fixed subscribers totaled **2.021 million**, with a modest increase in fixed ARPU to **$26.11** [30] - TPG has seen an **82%** increase in data volumes in regional areas and a **20%** increase in voice traffic [28] Market Dynamics - TPG has gained market share in smaller towns and fringe urban areas, with a **1%** aggregate increase [28] - The company is focused on maintaining a competitive edge in a low-risk essential services industry, emphasizing customer-centric operations [34] Future Outlook - TPG expects to maintain a strong cash flow outlook driven by lower CapEx, completion of legacy financing unwinds, and reduced borrowing costs [25] - The company is targeting a reduction in operating costs by **$100 million** over the next four years [24] - TPG is committed to investing in both wireless and fixed infrastructure to remain competitive [65] Additional Considerations - The reinvestment plan is designed to enhance liquidity and free float, with strategic shareholders supporting the initiative [7][51] - The company is optimistic about its growth trajectory despite potential challenges in subscriber growth and churn rates [49][50] Conclusion TPG Telecom is positioned for growth following the Vocus transaction, with a strong focus on capital management, shareholder returns, and operational efficiency. The company aims to enhance its market position while maintaining a commitment to customer service and infrastructure investment.

Group 1: Company Strategy - The company focuses on differentiated operations, dynamically adapting its technical and production capabilities to meet long-term market demands, emphasizing sustainable benefits over short-term gains [2] - The company aims to maintain a balanced customer base to ensure stable growth in a changing market environment [2] - There is a need for enhanced comprehensive competitiveness, requiring the company to continuously refine its process and technical capabilities [2] Group 2: Thailand Factory Operations - The Thailand production base has commenced small-scale production, with efforts to improve production efficiency and yield stability [3] - The company is accelerating customer certification and product introduction to gradually release capacity and validate its production capabilities for mid-to-high-end products [3] - A comprehensive risk warning and response mechanism is being established to manage operational risks associated with overseas factory construction [3] Group 3: Capital Expenditure and Market Situation - The company plans to invest approximately 4.3 billion in a new AI chip supporting high-end printed circuit board (PCB) expansion project, which commenced in late June 2024 [4] - This project is expected to enhance the company's high-end product capacity to meet the long-term demand for high-speed computing servers and AI applications [4] - The development of AI and network infrastructure is creating new growth opportunities for the PCB market, while also posing higher challenges for technical and innovative capabilities [4] - The company must strategically accelerate investments and allocate resources effectively to maintain competitiveness and respond quickly to market demands [4]

Group 1: Hu Dian Co., Ltd. (沪电股份) - The company adopts a differentiated business strategy focusing on long-term sustainable benefits and major head customers, continuously investing in technology and innovation resources [1] - The Thailand production base has commenced small-scale production, accelerating customer certification and product introduction while controlling initial costs and improving production efficiency and yield [1] - A planned investment of 4.3 billion will be made in Q4 2024 to establish a high-end printed circuit board (PCB) expansion project to meet the demands of emerging computing scenarios such as artificial intelligence [1] - The company believes that the development of artificial intelligence and network infrastructure will require more complex and high-performance PCB products, presenting new growth opportunities for the PCB market while posing higher challenges to the technical and innovative capabilities of PCB companies [1] - The company aims to accurately grasp strategic timing, moderately accelerate investment, and allocate resources rationally to enhance competitiveness and respond quickly to market demands [1] Group 2: Tin Industry Co., Ltd. (锡业股份) - The self-sufficiency rates for tin concentrate, copper concentrate, and zinc concentrate in 2024 are projected to be 30.21%, 15.91%, and 72.72% respectively, with plans to increase exploration and resource expansion [2] - Tin prices will be influenced by supply and demand, following a logic of "cost sets the bottom line, demand determines fluctuations" [2] - The company ensures the supply of tin smelting raw materials through self-production, domestic procurement, and processing and re-exporting, with regular planned maintenance based on equipment operation conditions [2] - The company has established an industrial experimental platform for tailings re-selection and plans to build three tailings resource utilization bases in the future [2] - The company will continue to strengthen production operations and explore increasing the frequency of cash dividends to share development dividends with shareholders [2]

Core Viewpoint - The company, Hu Dian Co., Ltd. (002463), has shown a significant increase in stock price and market capitalization, indicating strong market performance and investor interest [1]. Group 1: Company Performance - As of June 13, 2025, Hu Dian Co., Ltd. closed at 38.62 yuan, up 9.0% from the previous week [1]. - The company's total market capitalization is 742.81 billion yuan, ranking 2nd in the components sector and 190th among all A-shares [1]. Group 2: Business Strategy and Market Focus - The company focuses on high-tech PCB products for communication equipment, data center infrastructure, and automotive electronics, implementing a differentiated product competition strategy [2]. - The company aims for sustainable growth by maintaining a balanced client base among top industry clients and investing in technology and innovation for high-density integration and high-speed signal transmission [2]. Group 3: Revenue Structure - In 2024, the enterprise communication market is expected to generate approximately 100.93 billion yuan, with server and HPC-related PCB products accounting for 29.48% and high-speed network switch products for 38.56% of revenue [3]. - The automotive segment is projected to achieve around 24.08 billion yuan in revenue, with emerging automotive PCB products making up 37.68% [3]. Group 4: Market Trends and Production Capacity - The demand for 800G switches is strong, driven by rapid developments in data center switch markets [4][6]. - The company has initiated small-scale production at its Thailand facility and is focused on improving production efficiency and yield [4]. Group 5: Capital Expenditure and Future Outlook - The company has increased investments in key processes and bottleneck processes, expecting improved capacity by the second half of 2025 [5]. - In Q1 2025, cash outflows for fixed assets and intangible assets were approximately 658 million yuan, indicating ongoing capital investment [5]. - The company is adapting to market challenges in the automotive PCB sector by enhancing technology development and collaborating with industry partners for product optimization [5].