TPG Telecom (TPM) 2015 AGM Report

Company/ASX Code : TPG Telecom Limited (TPM)
Venue :
10am AAPT Offices
Level 23, 680 George St
Sydney, New South Wales
Monitor : Mrs Estelle Renard
AGM Details / NoM : Wednesday 2nd December, 2015
# of Attendees : 43 shareholders, 20 guests, 10 corporate reps
# Holdings represented by ASA : 98
Value of Proxies : $6.1 million
# Shares Represented by ASA : 580,000
Market Capitalisation : $9 billion

Ambitious, brave and competitive

Executive chairman David Teoh welcomed attendees and after a few words about the excellent results introduced the other four members of the Board and TPG’s seven key management personnel. 

Good to note the stability in the upper ranks. Mr Teoh handed over to the CFO and company secretary Mr Stephen Banfield to run the meeting and present the results.

The 7 year graph showing continued strong growth is enough to make any investor happy with an increase during 2015 of over 30% in all the important figures. Mr Banfield highlighted organic growth in addition to the full year contribution of AAPT. 

In September, TPG Telecom took over iiNet and a pro-forma merged FY15 diagram was shown, but no forward guidance was given. Debt increased to $1.85 billion on completion of the iiNet acquisition.

A product presentation by the chief operating officer Craig Levy and an animated network diagram of the existing cable networks in Australia and the main cities was shown by Reggie Naik, general manager of fibre operations.

Attendees asked many questions, both technical and strategic. iiNet’s well-known brands will be retained and no customer “leakage” has occurred. Mr Teoh said competition is fierce which presents challenges and opportunities and he believed TPG is “driving the market”, Telstra being the biggest telecom by far faces major legacy issues and TPG will continue to chip away.

The ASA monitor requested the chairman to address the two corporate governance issues mentioned in their Corporate Governance document that do not comply with ASX and ASA guidance. Mr Teoh is an executive chairman and independent directors are a minority on the board.

Mr Teoh felt that TPG’s structure is efficient and the performance speaks for itself.

The ASA monitor received an “earful” from Mr Millner after asking him to relinquish some of his many other board positions. The day after the AGM the media supported the ASA view having been alerted to the lack of independent directors on the Board.

Following the ASA representations at the pre AGM meeting, TPG Telecom decided on a poll having previously conducted voting on a show of hands, all motions were carried with the highest vote against was for the re-election of Mr Robert Millner at 3.43%.

Mr Teoh’s son Shane Teoh was also re-elected.

There was ample opportunity after the meeting for informal discussions with directors and staff.