Hutchison Telecommunications Australia : Chairman's Address to Shareholders

Hutchison Telecommunications (Australia) Limited

ABN 15 003 677 227

Level 1, 177 Pacific Highway North Sydney, NSW 2060 Tel: [phone] Fax: [phone] www.hutchison.com.au

ASX Market Announcements

Australian Securities Exchange

Date: 7 May 2020

Subject: Chairman's Address to 2020 Annual General Meeting

In accordance with ASX Listing Rule 3.13.3 please find attached the Chairman's Address to be made at the 2020 Annual General Meeting of Hutchison Telecommunications (Australia) Limited (ASX: HTA) to be held on 7 May 2020 at

10.00 am (Sydney time). Yours faithfully,

Naomi Dolmatoff

Company Secretary

AUTHORISED FOR RELEASE: By the Market Disclosure Committee

For further information, please contact the Company Secretary by email at [e-mail] by telephone on [phone].

HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) LIMITED

ANNUAL GENERAL MEETING

CHAIRMAN'S ADDRESS

Thursday, 7 MAY 2020

INTRODUCTION

I'm pleased to provide you with an update on Vodafone Hutchison Australia Pty Limited's ("VHA") 2019 performance and future plans.

In 2019, VHA overcame some significant regulatory challenges - namely, the Australian Competition and Consumer Commission's decision to oppose the merger with TPG Telecom Limited ("TPG Telecom") and the Australian Federal Government's 5G vendor restrictions.

While faced with these uncertainties, VHA's key areas of focus were financial stability and maintaining its postpaid customer base through its strong mobile network and customer service.

VHA was forced to be more commercially conservative in some areas, including not competing as aggressively on pricing for customers as some of its competitors.

Despite the uncertainty caused by factors outside of VHA's control, Hutchison Telecommunications (Australia) Limited's ("HTAL") share of VHA's EBITDA increased 6.9 per cent year on year to $589.4 million.

VHA's postpaid mobile base remained steady, and it achieved strong growth in Vodafone nbn services with its fixed broadband base more than tripling.

VHA also achieved the highest mobile Net Promoter Score every month during 2019, and a complaints rate well below that of its competitors and less than half the industry average.

As communicated in HTAL's 2019 annual results, one of VHA's 2020 priorities is the implementation of the proposed VHA‐TPG merger.

Before I provide an update on the proposed merger, I think it is important to touch on VHA's response to the unprecedented COVID‐19 situation.

VHA RESPONSE TO COVID‐19

VHA has responded quickly to address the unprecedented challenges caused by COVID‐19 to support its employees, customers and ensure business continuity.

• As many customers stay, work and learn at home, VHA has seen increased mobile and fixed usage and a change in usage behaviours since the first week of March 2020. VHA has dedicated resources to ensuring the network is stable and operating consistently.
• VHA was one of the first corporate entities to move to working from home arrangements for all office‐based employees in early March 2020. VHA has had flexible working arrangements in place for many years so employees were able to transition seamlessly to remote working.
• To support its customers, VHA has implemented a wide range of special initiatives to support customers' changed needs and circumstances, especially those in financial hardship.

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• VHA has also temporarily closed quieter retail stores and redeployed retail staff to pop‐up contact centres in Sydney, Melbourne and Brisbane.
• VHA is working collaboratively with both government and industry to respond to the challenges of COVID‐19.

As VHA CEO Iñaki Berroeta said in a speech recently, this unprecedented situation has highlighted the need for strong, resilient companies with the scale to provide the services that Australians rely on, and the ability to quickly adapt and respond to new challenges.

VHA‐TPG MERGER UPDATE

This brings me to the proposed VHA‐TPG merger which is being progressed as per the timeline of a mid‐2020 implementation.

The merger recently received the required clearances from the Committee on Foreign Investment in the United States and the US Federal Communications Commission, with a decision from the Foreign Investment Review Board expected shortly.

The scheme and shareholder vote process of TPG Telecom will commence soon.

Subject to shareholder approval being obtained and other conditions precedent being met, the existing TPG Telecom entity will delist from the Australian Securities Exchange ("ASX") as it is merged with VHA.

The newly merged company, which will trade as TPG Telecom Limited, will be admitted to the ASX.

Once the proposed merger is completed, for the first time ever, there will be a third full‐service telecommunications provider in Australia.

The proposed merger brings together two complementary businesses - one strong in mobile, one strong in fixed.

With a combined value of approximately $15 billion, TPG Telecom Limited will have a much bigger profile in the Australian economy.

BENEFITS FOR HTAL SHAREHOLDERS

Once implemented, HTAL will own 25.05 per cent of the new merged company.

As an HTAL shareholder, you will continue to own shares in HTAL. How the HTAL share price responds to the proposed merger once implemented will, of course, be a matter for the market.

The new merged company will have increased scale and scope, and there are a number of benefits that will be realised in the short, medium and long‐term:

• The most significant of these is a stronger mobile network with more capacity thanks to the increased spectrum holdings and transmission capacity of the merged entity.
• The new merged company will be a strong house of brands with some of Australia's most recognisable and popular names, including Vodafone, TPG and iiNet. The merged company

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will be able to initiate enhanced offerings for each of the brands and compete more effectively in the market.

• The new merged company will also be a more formidable force in the Enterprise and public sector segments.
• The restructuring of current debt is expected to deliver a strong balance sheet with capacity for further investment if required.
• Revenue and costs synergies are expected to deliver increased capacity for increased investment in transformational projects across Network, Care, Digital and Technology. And the merger will assist to accelerate the rollout of the 5G network rollout which commenced in March 2020.

CHANGES TO THE HTAL BOARD

As communicated to the market, there have been some changes to the HTAL Board over the last five months.

I am joined by my fellow directors in welcoming both Susan Chow and Melissa Anastasiou to the HTAL Board. They will add significant legal and corporate governance experience.

I would also like to thank Ron Spithill, who recently retired, for his valuable contribution as a director over his ten‐year tenure.

OUTLOOK

Now to the Outlook.

VHA continues to focus on implementing the merger and progressing its 5G rollout in 2020.

VHA will also continue to prioritise its COVID‐19 response to support its customers and employees through this challenging time.

Despite the measures that VHA has implemented to address COVID‐19 impacts, which I touched on earlier, VHA's business, like many others, is being adversely impacted by the pandemic. VHA has seen a reduction in sales and revenues resulting from customer inability to access retail stores, fewer overseas visitors, lower international roaming revenues and reduced capacity to service customers resulting from contact centre shutdowns.

Whilst the full impacts of the COVID‐19 pandemic are uncertain, it is likely to continue to have a negative impact on VHA's financial performance until the situation returns to pre‐COVID‐19 conditions.

I thank HTAL shareholders for their continued support, and for joining the live webcast to listen to today's AGM.

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