Good morning, shareholders. I am Nathan Burley, Head. Pleasure to be your MC today for our 2023 Annual General Meeting. We'd like to begin by acknowledging the traditional owners of the land on which we meet, the Wurundjeri people, pay our respects to their elders, past and present. I'd also like to acknowledge the traditional owners and recognize their continued connection to land, waters, and culture. I would also like to extend that welcome to all Aboriginal and Torres Strait Islander people who are here today. It is great to see so many shareholders here today.
We're conducting a hybrid AG to welcome everyone joining online from wherever you may be. There are a few procedures before we get underway. For those in the room, we will be serving a light lunch at around 12. If the meeting has not finished by that time, we will not be adjourning for lunch.
You also have been given a card. Yellow cards are for shareholders who may speak and vote. Blue cards are for shareholders who may speak, but not vote. You will need your card to ask a question or to re-enter. That is going up behind me, which explains how to vote. If you have any queries about how to vote, please, or in the shareholder registration area outside, who will be able to assist you. Questions here in the room are now being shown on the screen. For shareholders joining on screen, you will see our virtual meeting guide. This contains all the information you need about how to vote and ask questions. You can also call the help number shown on the screen.
In terms of how we'll manage shareholder questions today, for each question session, we're online, from the room, and on the web phone. So please ask shareholders to be patient. I'll read the online written questions that have been written by shareholders. If we can't answer your question, or we can't get through all the questions today, we will respond to any unanswered questions after the meeting, either directly through the answers to the common questions on our AGM website. If you have any individual customer service, speak with one of our customer service team members here today. For shareholders submitting written questions, service, or share registry staff will be in touch with you after the meeting. The online platform is now open, and I encourage you to submit any questions you may have now.
Out of the way, I'll hand over to your Chairman, John Mullen.
Great! Good morning, ladies and gentlemen. My name is John, John Mullen, and it is my great to Telstra's 2023 Annual General Meeting. Thank you all for joining us today and for your continued support and investment in Telstra. This is, of course, also a hybrid meeting for many shareholders who've chosen to join us online. The quorum is present, and it declare today's meeting open. A notice of meeting was distributed earlier, setting out the business today. I propose to take that notice as read. There are a number of items of business on today's agenda, all of them are now being shown on the screen. Voting on items three to five will be conducted by poll, and that poll is now open. Now, to participate in the poll, were distributed earlier, but assistance is available at any time, should you.
I'm pleased to be joined on stage today by all of my fellow board members. My Company Secretary, Financial Officer, Michael Ackland, Directors Maxine Brenner and Ming Long, having been appointed. Current directors, Bridget Louden and E lana Rubin, are also both standing for re-election. You will hear from each of them shortly. Sarah Lowe from our auditors, and I'm sure that she would be happy to answer any questions you may have on the conduct of the audit. Our senior management team is also present. Chair, as I come to the end of what has been a tremendously rewarding 15 years serving on the Telstra board. I'll only comment briefly on the year just passed, and we'll leave our CEO, Vicki Brady, to provide more detail. But I would like to take this opportunity to look back and reflect upon what has been an extraordinary 15 years.
There have been many ups and downs and lessons learned, and I'll try and share some reflections with you in a minute. Firstly, though, looking briefly back over the last 12 months, it's been a very successful year under Andy Penn, as a very successful CEO of Telstra, and we welcomed an outstanding new leader. We attained almost all of our financial targets, and we delivered within guidance. In our first year of delivering against our T25 strategy, we returned to growth, strengthened mobiles, and our investment in customer experience all paying off. With eNPS and customer complaints at record lows. Our sustainability initiatives lead the telco sector in Australia. The year has seen substantial progress on many fronts, but of course, there's always so much more to do. At the meeting, we received a number of questions about Telstra's support for a First Nations Voice to Parliament.
Now, we recognize that there are different and passionate views out there in the community, both for and against. In Telstra's case, we decided that supporting the Voice was in the best shareholders. It was not a decision taken as a result of the personal views of any board or management members individually, and indeed, just like the community, there are differing views amongst. However, where we were all in agreement was that support was in the best interest of our shareholders. Telstra is a long-time supporter of reconciliation and has strong connections with First Nations through our employees, customers, stakeholders, and communities across the country. Many of First Nations people endorsed the voice as critical to the future of reconciliation, and we took that. We also strongly believe that reconciliation is a positive step forward for our country and for the economy and our shareholders.
For this reason, and because we are a values-based company that supports our words, the Yes campaign, by providing AUD 1 million of advertising spend. Following the result that our democratic system has delivered, but we remain committed to reconciliation close partnership with First Nations people and communities across Australia. So now, if I may, let me share a few reflections on these last 15 years. Some of those that didn't go so well, and some of the lessons learned. Let me start by saying, the company is a completely different entity today than it was 15 years ago, ways. The speed and the scale of change in the telco and technology sectors is staggering. This has seen the launch of 3G, 4G, and then 5G, the launch of the first iPhone through, and the complete revolution of mobile communications.
The Telstra that we knew by the creation of the NBN. But during this time, Telstra transformed modern communications leader. We were the first to launch 4G and then consistently rate as having one of the best mobile networks in the world. Network than any other company, and customers have access to high-quality voice, text, videos in more places at a range of different price points than ever before. The last 15 years, and the amount of mobile data flowing over our network and the number of things connected on our network, health services, and work from home setups. You may be surprised to know that the price plan is just AUD 2 more today than it was 10 years ago.
But the data included is, and that's not to mention the increases in coverage and speed on the network, and that nearly all of our in-market mobile plans now come with unlimited standard voice calls. While providing this huge increase in data availability and speed, and helping to enable enormous digital advancement, Telstra has lost over AUD 6 billion of profit in the last decade or so. This has been predominantly from the impact of the NBN, but also the loss of news and other pressures, and had an inevitable impact on earnings, dividends, and our shares have bounced back strongly.
Our T22 program to radically restructure the company to offset and extremely successful. Financially, over those 15 years, we have paid out over to shareholders. We also paid some AUD 20 billion in tax to the nation. Contribution to society beyond financial considerations has also been considerable. On many fronts.
To protect customers and the public from ever-rising cybercrime, 1 million scam calls and almost 280 million incoming scam and unwanted emails, around 20 million SMS messages since we launched our Cleaner Pipes initiative in twenty. We're also making a big contribution to the transition of Australia's energy sector by supporting more than 1 today, and we're one of the largest corporate contributors to renewable energy projects. In last financial year, we also supported some 1.2 million customers in vulnerable circumstances, and we have expanded this to reach more customers experiencing mental health challenges, family or domestic violence, or who need emergency relief due to natural disaster. We in disaster preparedness and response to keep communities connected.
We across a range of areas in how we help seniors and First Nation Australians to grow their digital, a range of price points for customers experiencing cost of living pressures, and in how we're bringing new and remote Australia, including with Low Earth Orbit satellites and other technologies. So today, it is almost unrecognizable from the company that I joined back in 2008. Pay tribute to the many, many people across our organization who have made all of this possible.
When I look at my board colleagues here today, I feel immensely privileged to work alongside individuals of the caliber that they represent. I believe that we have the strongest board today that we've ever had. Every single individual is exceptional. Exceptional, not just in capability and contribution, and character. Diversity on boards today is so often just a euphemism for a male-female ratio.
Telstra has a good balance there. Diversity of thought, of values, of background, of age, and more. And I'm intent around the Telstra board table. Everyone brings a different perspective, skills to the table, but we function as a united team. And how good is it that we were perhaps the first and maybe the only large ASX corporate to need a director's parental leave sitting on this board with us? I'm proud, too, that the strength of the board and chair from myself to Craig Dunn. Craig is a simply outstanding person to lead the board into this next phase. Then when I look at, I feel that we are looking at the best management team that we've had in many, many years. The board could not be more delighted with the way that Vicki has taken up the reins as CEO after the very successful tenure.
She's widely respected within the company and outside among investors, the business community, and I have absolute confidence. Vicki and her management team will take Telstra and will retain Telstra's position as a leading telecommunications company in Australia. Directly impacts the lives of almost everyone in Australia. If I look forward and reflect on the challenges that my colleagues have ahead of them, I think there'll be just as many changes and new challenges going forward as we have seen in the 15 years. It will no longer be my responsibility, but will be that of Craig, Vicki, and their colleagues. But as I step down, I have four thoughts to pass on, which, of course, my colleagues may choose as they see fit.
The first is about the evolving role and value of telecommunications. It is a highly competitive industry, but Telstra has been good at competing and will continue to be so. However, I believe that the big changes in our world are going to come from other areas that disrupt the industry on a global scale. Satellite technology is going to change the nature of the industry. And in this context, an ever-increasing challenge is how to monetize the extraordinary technology in CapEx like Telstra.
Telstra and the industry pay for the networks and the capacity. When we think about the volumes of data carried, we get paid less and less for it. We need to set policy and regulatory frameworks that allow the industry to remain financially sustainable. Now, given the critical role that telco infrastructure and services will continue to play.
While Telstra does better than most, telecommunication returns on capital are still to this, and sharing more in the rewards to be gained from increased connectivity will be a key. You know, telecommunications is so much more than just being able to give or access a website to check your bank account or even buy a footy ticket. The reality, against the essential digital infrastructure of a modern, successful nation, and it impacts every and in business. Telecommunications drives productivity and increased investment in the nature's digital infrastructure with industry, community, and government, all to the nation's future prosperity. I urge my colleagues to make sure that Telstra plays cooperation and investment in the future for us and for our children. At what we have not been as successful at as I would have liked, I consistently land back on the customer.
This is truly a glass half full, half empty story because to the credit of management, on the positive side, every single metric around the customer experience has improved dramatically in recent years. Complaints against Telstra have reduced by nearly 70% since the beginning of T22 and are at their lowest. Number of inbound calls to customer service over the four years to 2022 to just over 10 million, a reduction of 71%. And we can see the comparison. Comparing the new digital stack to the old, Episode NPS has doubled, and the average time for fixed activations has halved. However, even though the business improved dramatically, and in most cases, is the best that it has ever been, there are still experience failures. Even one error is too many in today's digital world.
And so, again, I urge my colleagues to redouble their efforts to be relentless in driving improvement, is seen as a role model for modern digital delivery of telecommunications services. Third, I would urge my colleagues to be bold and to take risks. Of course, but sitting and waiting for the world to change rather than driving the change itself is Gandalf was behind and not in front. While not perfect, Telstra actually has a pretty good record. For example, our decision in 2010 to spend around AUD 1 billion to grow market share customer service and to simplify the business. Our 2016 decision to invest AUD 3 billion in digitization and networks. Our 2018 decision under T22 to simplify and digitize, create InfraCo and, and our 2019 decision to double down on 5G launch investment to lead the industry.
All of these led us to maintaining our market leadership, investing with, and if we hadn't, we would not be in the strong position that we are in today. Just be brave and keep this up. You'll get criticized for the odd failure, but I'm a 100%er by continuing to take such risks than just by sitting on its hands and hoping. Fourth, and finally, let me make a few comments on the extraordinary these last 15 years in respect to the public company sector, governance, regulation as they relate to Telstra.
Now, many things are for the better and overall, and better regulated than it has ever been. This said, the changes was well-intentioned, done for the right reasons. The consequences, perhaps, have not always been. The focus on executive remuneration is one example. Setting remuneration for executives should attract, motivate, and reward the best executives.
Today, however, in the outsourcing remuneration to a whole new industry of remuneration advisors and proxy advisors, evermore complex and being required to meet a whole selection of criteria from different stakeholders too. Today, there's also a simplistic view held by many that if a company's share price is down, little, if any, variable compensation. And if the share price is down due to acts or omissions of management. But if the share price is down because of external events outside management's control, and they have a massive target, then in my view, it's even more in shareholders' interest to motivate and reward executives for their hard, than it is in good times. The reality, however, is that's very difficult for the board of the upcoming critic, under criticism from all this range of third parties.
Reason is, believe that paying directors part of all of their compensation in shares somehow limits independence, so pay their directors in cash. I cannot think of any better way to align shareholders and to pay directors in shares, with a simple time lock on how long they have to be kept before they become a, t here are other examples of how complex corporate governance has become over the years, and the result has been that it spends an ever-increasing amount of time on governance and process, and less on strategy and performance. But in my view, these trends are to the detriment of the public company structure, and of all of this, of course, have been private equity and private capital generally.
Private companies between strategy and performance versus governance. Decision-making processes are shortened. Risk-taking term, not just the next half's result, is paramount, and the remuneration process is greatly simplified. Years ago, when I started, private capital was not just a significant player, but today that is completely reversed. More and more talented executives just do not want all the public scrutiny and hassle, so they prefer to work in private, and the same increasingly goes for directors. So I think there's a lot that we can learn from private equity and private capital in how to make companies leaner, faster, and more efficient. And I hope that there, as we absolutely need a healthy and dynamic public company regime in Australia.
So I will close here by saying again, that your company is in great shape and performance future looks exciting, and Telstra is right in the middle of the most profound technological change the world. Telstra is today, and will remain, the essential core of our nation's infrastructure play in the prosperity and success of our nation going forward. I appreciate the extraordinary privilege of being on the board of Telstra for 15 years and being chair for seven. Some of the very best years of my working life. Thank you to my fellow board members for the fantastic support you have given me over these years, and thank you to the management team and the employees of Telstra for having put it to where it is today.
I wish Craig every possible success, and with total confidence, the combination of Craig and Vicki, with the respective board and management teams behind them, to a whole another level of achievement in the years to come. I shall continue impressed and with much affection. Thank you, and let me now hand over to Craig to say a few words.
Thank you, John, and good morning, ladies and gentlemen. John, on behalf of the board, I express our deep thanks and appreciation for your service over the last 15 years. You've made an enormous, especially in your last seven years as chair. You've helped steer the company through some of the most, including the NBN negotiations, which you referred to, and the very substantial impact on the very successful transformation under the T22 strategy.
Today, under John's leadership, Telstra is agile, and it's strongly positioned to grow with a world-class network and with infrastructure in Australia's digital economy for many years to come. So John, once again, thank you. Well done. And so following this meeting today, I will take on the role of Chair at Telstra. And I also want to thank my colleagues on the board for their support.
I'm very energized and confident about the future of Telstra, and I look forward to continuing to deliver for you, our shareholders, million of customers, right across this great country. Thank you, and I'll now pass over to Vicki.
Well, thank you, Craig, and good morning, everyone. I am delighted to be here for my second AGM as CEO, and I look forward to hearing you. There are three things I want to cover today. First, my priorities and 12 months in the role, our financial and operational highlights, including progress, energy, and our focus for FY 2024. The first priority was to radically change the experience for our customers. This continues to be my highest priority, and as you'll hear today, we are making good progress.
In the positive impact of product simplification, digitization, answering in Australia, and bringing our retail stores in-house. We have customer satisfaction at record highs and customer complaints at record lows. We're delivering, customers are choosing us. For example, we added more than 360,000 new mobile handheld services across our consumer, small business, and Belong.
We have much further to go, and we are focused on accelerating our digitization, small business customers off legacy systems to help remove pain points for our people. Looking beyond T25, as connectivity increasingly underpins the way Australians live and work, we are in a strong position to play an even more important role in Australia. Infrastructure investments we're making today, from our Intercity fiber network and submarine cable network, to continuing to expand our 5G network, will help and strategically positioned for growth.
We're working with a range of industry and technology businesses to grow our digital capabilities in sectors critical to Australia and the world, industries as they continue to digitize. We will be both a connectivity and customers, and we will continue to invest in capabilities and partnerships to grow our AI, data analytics, cloud, Internet of Things, and cybersecurity.
Activity options to regional and remote areas that will help to lift digital inclusion and participate. I believe Telstra has a critical role to play in Australia's future and the significant. This is a tremendous opportunity, but it requires significant investment and with challenging economic environment. In addition to inflationary pressures, traffic around 30% each year, while CPI data shows that telecommunications pricing in recent years. We need to get the balance right so we can continue to invest sustainably. This has led us to make some difficult decisions in the year, but I believe this was the right call to enable us to grow and invest. The Australians are experiencing cost of living pressures, and we need to make sure we are circumstances and providing choice.
The changes we made in recent years to remove locking contracts and move to a multi-brand strategy mean we can continue to provide customer options with plans at different price points. We also helped more than 1 million customers stay connected in the last year. It is a complex operating environment based on delivering for our customers, our teams, our shareholders, and for the community. Turning now to our financial highlights.
Our FY 2023 results showed continued growth in reported and underlying earnings, with positive momentum across our mobile business and support from the acquisition of Digicel Pacific. Income was up 5.4%, and EBITDA increased 8.4%. Underlying EBITDA increased by AUD 699 million or 9.6% to AUD 8 billion, flowed through to a 13.1% increase in net profit after tax to AUD 2.1 billion.
Earnings per share increased 16% to AUD 0.167 to 8.1% and is back above our cost of capital. On the back of the board resolved to pay a fully franked final dividend of AUD 0.085 per share, AUD 0.17 per share, and representing a 3% increase compared to last year. Overall momentum is good. We have some parts of the business performing well and others where we continue. Our mobile business remains central to our growth and continues its very strong performance. All business, fixed, international, infrastructure, and Telstra Health businesses also grew earnings.
At the same time, there are aspects of our enterprise fixed business that are experiencing lower data and connectivity, and calling declined at a greater rate than we anticipated. Maintaining momentum in fiber, scaling and simplifying our products to meet customer needs across network, applications and services.
We remain disciplined on external economic environment. We also made the decision to maintain the current ownership structure for the medium term, as we believe this will create the greatest value for shareholders on delivering long-term sustainable growth and the objectives and principles of our capital management, seeking to grow our dividend. Infraco Fixed plays an important role in enabling this, particularly in an inflationary environment. We're almost at the halfway point in T25, and one year in, we are winning customers and gaining good momentum across our four strategic customer experience.
Episode NPS improved six points to 43, and while TIO complaints from consumer and small business customers reduced by more and are at historic lows. We've made great progress on digitization over our key service transactions, like billing inquiries, and we are well on th way to digitizing by FY 2025.
We continue to lead the industry on stopping scam caller pilot with CBA to help detect phone scams before it's too late, detecting and blocking more email, SMS, and phone scams than ever before. We achieved our FY 2023 5G population coverage target of 85%. All traffic was on 5G. On our Intercity Fibre project, construction is well underway, operators, satellite providers, and national enterprises. The decision by the ACCC not to grant authorization of our multi-operator core network agreement, we're disappointing outcome.
However, we remain committed to improving customer experience outside our deals with satellite providers, Starlink and OneWeb are good examples of this, and we offer for our customers in regional and remote Australia. On growth and value, we continue to show discipline on costs and improve ROIC. We have grown underlying. We are focused on further growth to FY 2025.
While our cost-out amid high inflation, we still expect to achieve the large majority of this by FY 2020. Absolutely committed to delivering on underlying EBITDA and EPS growth ambitions. Our work pillar, our employee engagement score was 80, ranking us near the top companies globally, however, below our 90th percentile target. From an FY 2019 baseline, one and two emissions by 30%, and we reduced our absolute scope three emissions. This is great progress towards our ambition to reduce absolute emissions by at least 30%. We continued to invest in digital leadership to help drive better customer experience already. We are growing our capabilities in data and AI internally and through Telstra Ventures, and we are determined to be a leader in how we are applying AI. Overall, our T25 strategy is on track, including our growth ambitions in underlying share.
Turning now to guidance for FY 2024, which I am confirming, EBITDA guidance is consistent with our T25 ambition for a mid-single-digit CAGR, FY 2021 to FY 2025. CapEx guidance of 3 points includes around AUD 300 million of strategic investment outside of the business as usual, and via our infrastructure projects. Around AUD 150 million for Digicel Pacific, an increased commitment to infrastructure investment in international. Important strong cash flow, enabling us to invest in growth and deliver returns to shareholders.
A critical year for us with a lot to deliver. We will continue to prioritize execution on customer experience and invest in the capabilities and assets we need to deliver sustainable growth. These are key to maintaining our financial momentum and delivering sustainable. The first is mobile, underpinned by network leadership and delivering new network experiences for our customers.
Second is growth from infrastructure and maximizing Infraco Fixed value. The third, in fixed consumer and fixed small business segments, and to support this, we have created Telstra Business to meet the specific needs of our small and medium business customers. I spoke to earlier, is improving enterprise fixed performance. This includes driving growth in this, for example, through our proposed acquisition of Versent, a market-leading technology. I'd like to end by saying a few words about John and the enormous contribution he has made 15 years, and indeed, to the Australian telecommunications sector as a whole. And mentor to me, as well as to Andy Penn, and helped steer Telstra through the most significant transformation in our history, indeed, the industry's history. John, the organization, and on me personally, and on behalf of the whole Telstra team, and support.
I'd also like to offer my congratulations to Craig Dunn, who is Chair. Craig has already made a big contribution over the seven years he has served on the board to working closely together. A big thank you to our incredible leadership team, the board, and I, for your energy, commitment, and care for our customers and us. It is your efforts that have led to our continued growth, our progress against our solid foundation for growth beyond T25. Finally, I'd like to thank you for your continued support and investment, and our board, for your leadership and guidance over the years. One year into the CEO role, I am feeling very confident about our future. We have the right plan and are on the right path. Thank you.
Great. Let's get ourselves in order. Okay. Thank you, Vicki. Thank you very much. So we will now move to the formal business is being shown on the screen. Nathan outlined at the start of the meeting, just a reminder that if you have any difficulty using the online platform, please check our virtual meeting shown at the top of your screen. As I mentioned earlier, voting on items three-five is being considered. Mr. Chris Healy of Link Market Services, Telstra Share Registry, is acting as Returning Officer in relation to the poll. We have received proxies from over 15,000 votes from over 6,600 shareholders. We will display the proxy and direct each item on the screen when we get to that item. The form numbers are available to be voted by the chairman of the meeting.
Two on today's agenda, which is to discuss the Company's financial statements and reports for 2023. This item provides shareholders with the opportunity to ask questions about our 2023 financial statements and reports, as well as the business operations and management of Telstra. Also, ask questions of our auditor. So I may now take questions from shareholders about the general questions about your company. Shareholders, I invite you to your question, and for shareholders joining us online, please submit your written questions or raise your hand to our platform. To ensure that there's an even spread of questions from shareholders, I will rotate the sequence of taking online written questions, then move to questions from the floor, and then any questions on the web. If you have a customer-related question, please see one of our team members here today.
Customer-related queries received online will also be responded to by our customer. Nathan, to start, do we have any online questions?
We have some. Yes, we do. We do have some online questions, and the first one is from Teresa Calero. Spencers increased by 4.1% during the year. This would be due to the effects of inflation. Telstra increased prices to its customers by 7.1% during the year. Do you consider by 70% above Telstra's inflation rate to be fair and reasonable?
Look, thank you for the question. But the 4.1% amount of different inputs and costs, it's not just one single cost. Telstra receives cost increase input costs, and some of them far in excess of inflation. Electricity is an example. I think it was up AUD 100 million or something like that last year alone. So we have to respond by cutting costs elsewhere, controlling costs tightly, to try to make sure that we come in grow this earnings. So it isn't a direct comparison, but we're very careful that we put through in today's world, and certainly, as you've seen, it hasn't exceeded the cost of the CPI increases, which is, and which many other companies have done.
Line is from Bruce Bebbington. Telstra receives AUD 230 million per guarantee, 2018 until 2032, to provide fixed voice services and copper. When is Telstra planning to close the copper network, and B, what are the proposed, specifically in rural and remote areas, when the closures commence?
Obviously, the universal service requirements that were imposed on Telstra were done at a time when there were copper lines everywhere, and old plug and switches and all of those things. Obviously today, we still have that obligation, and we still absolutely honor it, but we are working with government. How will the next generation of a universal service obligation be delivered, whether it's through satellite mechanisms? And we're also closing the 3G network next year, I think. But again, we want any existing service until there is at least equal, if not better, replacement for it.
Chris Bebington again, on a similar topic. Telstra advised us in July that in two years, by July 2025, it is currently shutting down the copper network, Universal Service Guarantee. Rural and remote customers are being put onto 3G next generation wireless link, despite it being shut down in June 2024. Why is Telstra placing customers available? And for those customers who do not receive 3G, what is proposed to happen to those customers?
Okay, look, I think I half answered that with the first question, but let me just. The first answer, let me just process. There are a lot of technologies available, fixed, wireless, and these not just 3G, and not just as an alternative to the old copper network. And as I said, we're working closely with government to see what that next phase should look like. We will be more and more obsolete, and we will be transitioning through 3G to 4G and ultimately 5G. Again, we absolutely commit, no one will lose their service, whether it's copper, 3G, or any other form until there is a better replacement for it. But we'll maintain.
Okay, we'll take one more question online before moving to the floor. Another question from Bruce Yap. When migrating legacy plans, Telstra has offered customers either Telstra plus points up to three years. However, customers who elected defaulted to the talk and time credits for up to three, activated during that time, despite having talk, time, data credit. This deactivation does not permit the receipt of calls and access to emergency calls for six months, as per the terms and conditions. Can you explain why this is occurring nationally, and why Telstra offered honor the offer and terms and conditions?
Thank you. That's a very detailed question, and I think I might defer to Vicki to respond. Please.
Yeah, no, thank you. Creation of our prepaid customers. So just for everyone in the room, we now have all of our prepaid customers in our new digital environment, off our legacy environment, where the experience is much better. We were very carefully making sure as we migrated customers, they had the right support and plans. To be frank, it's the first time I've heard the feedback that you've just given, so I'd be very keen for us to follow up and understand the details, because any offer we've made, obviously we will honor that. So I'll follow up offline and make sure we understand exactly what is happening. Thank you.
Some questions from the floor, and the first question we'll take is from microphone 2.
I'd like to introduce Mike Robey to speak from the ASA.
Good morning, Mr. Chairman and Mr. Chairman-elect. My name is Mike Robey. I'm a volunteer monitor at the Australian Shareholders Association, which looks after the interests of retail shareholders. Look, may I start by saying, Mr. Chair, and say that over the years, the ASA has had a respectful relationship with Telstra and has always had the ear of the chair and has made time to hear about. Today, I hold roughly 18,000 shares in proxy, which makes us, I think, the twelfth largest shareholder of the company.
So retail shareholders are significant in Telstra's stock book. Mike, I have two questions, if I may. The EGM in July last year paved the way for monetization of the potentially fixed network and others. Much like the success in selling 49 we enjoyed because of the special dividend.
But this is monetization now being put on, and given that shareholders are potentially trading off a new benefits. Can you give us some idea of what the possibilities are in not that Telstra might monetize it? So that's the first one, if I maybe make the second one as well, so they'll come over with.
Try and keep up with it, mate.
All right.
Yes.
So the next one is, as you mentioned in your speech, telcos have lost it. So those of us who remember limited calls, which cost by the call, texts, which were charged at AUD 0.20, international roaming, which is a rip-off, that basically gave you enormous amount of revenue. It's all been, and a data package with a, with a choice really of speed and volume. So where is the future gonna come from? Where's the growth? Because, we can see you sliding into kind of more and more of the same network. So they're my two general questions.
Thank you. Thank you. Well, I've enjoyed our interactions over this on a number of occasions. So let me talk firstly about the monetization. And so I think Vicki addressed this to a degree both in her full year. Look, it was as a result of an exhaustive process, and it's been a completely transparent and unemotional discussion around the board table and in management as to what is the best. If we thought it was to continue to monetize, i.e., sale of some of those assets, we would have a lot of discussion and advice. We and despite the success of the towers, the Amplitel, just the shareholders. And the reason for that was varied, but we still believe that the assets that we should extract before we choose to monetize them.
And secondly, of course, the world is talking about this. Interest rates have risen, inflation has risen, and asset values have come down quite sharply. Do you sell some of or all of the family silver for a quick hit today that shareholders think is wonderful, and you give that money back, but then tomorrow you now have to live with that decision, and you are going forward. So you have to balance all of those things. As I said, if we felt that the right decision was to monetize, we would have done. Be the right decision at some stage in the future, it may well be, and that will be up to, obviously, Vicki, the management at that time. Your second question is a good one about growth. It's probably for large telcos around the world.
I mean, the good news is that we are growing despite all those pressure. They're quite staggering, actually. The management team have been able to replace as much of those billions of half. The NBN effectively halved our bottom line, and then those other pressures, several billion AUD away. And the fact that we're back up to AUD 8 billion of EBITDA. And when you go through that and you pick it apart, obviously, the area that large benefit from is our fixed business, where we use them. Today, NBN owns the assets and we're a reseller with a low margin. That's not going to change. It'll be absolute, and there's been a drag. But against that, if you look at our mobile performance, it's been absolutely stellar.
With strong growth experienced over these last two years, particularly this last year, has been excellent. One thing about telcos and telecommunications is the future is hard to predict other than that there's going to be a huge increase in demand for the carriage of data, especially on a mobile platform. 25% of internet traffic or something today. And 5G, it's been here for a little bit, but we're still discovering the use cases, and there will be more and more of those, and driverless cars and things.
And we're right in the center of that with our 5G infrastructure. So I feel pretty confident that you will see continued growth from our core business going forward. And we've got a few things around here very well as well in the future.
Our core mobiles business is going to continue to drive the growth for the company for the next foreseeable while.
Thanks, John. We will now move to microphone one.
Chairman, I would like to introduce Howard Pascoe from Melbourne to speak.
Good morning, everyone. Congratulations having your AGM in Melbourne. Congratulations, board. Secondly, MCG, if you used to go there when you first started, that you couldn't make a mobile phone call during the grand final or the finals, the telecom traffic. Now, you go to the MCG during the finals, and the mobile phone reception is excellent, which means that you've been the technology has advanced out of sight. What happens if you die?
Now, the issue is single account holders, if you die, you're hearing on the media that the telco wants to speak to the account holder, and they can't speak to the account holder because the account holder is dead. Now, what the issue is, that in this audience, more than a third of the population in this room have not got a will. So if you die, that's with your telco.
The other question I ask, the first question, the first person I met at Telstra, at the entrance to Jeff Shed, was: You got a mobile? Have you told your telco, the authorized people that can act on your behalf if, say, you get. He said, "No." The question I asked the board is should all people, all your have been born the telco, the authorized people, if they haven't done a will or listed powers of attorney, have you got the authorized people if the person dies? Now, I've contacted Federal Parliament, the Federal Minister, issue. I spoke to - I've contacted Michelle Rowland, the current Federal Minister, for complaint about the power of the Telecommunications Australian Telecommunications Act of 1990.
It makes it so difficult for people that die and their telco about the authorized people to act on their behalf. It's an issue that politicians find hard to deal with. It's still outstanding and love your comment.
Thank you. Thank you, Howard, for that, that question. I have to say, firstly, I sympathize with you and a mother-in-law in the last 12 months and having to deal with the practicalities of losing a lot, just telecommunication services. Of course, a whole range of people's positions and activities in suspense, when on the time of death. Obviously, from the telco perspective, we don't know when someone's going to die. And quite often, you know, people's minds are elsewhere. And to do is to call my telco or bank or whoever it is, to let them know of the deceased. They've got much more probably. We send bills to people sometimes who have died without our knowing.
But there is actually, I know, a great focus on it right now to try and put better structures in place. Just take someone's word over the telephone to transfer a phone account to someone else. There are a lot of pre- you know, and domestic violence situations and all sorts of other, other things. You've got to be extremely careful to protect the customer's identity and the like. So it's a very complicated thing, but your question is absolutely valid and to the point, and I can assure you.
Thank you. I think we'll stay with microphone number one.
Chairman, I would like to introduce Dal Biller to speak.
Good morning, Mr. Chairman. I will be very brief. You have my congratulations for your achievements. Looks like on your presentation, you are involved in almost, which I don't believe is right. If it's right, my apologies, it's too much of it. Why don't you dwell on the negatives to make sure if everything is hunky-dory, there's nothing for you to do? Isn't it? To know why the shares from AUD 7, nobody mentioned that, is today.
And secondly, I believe culture of management or directors, which they take them another one and so on. And the question is very hard. How many directors in Telstra board and left Telstra since the... Thank you.
Wow! Okay. Well, so, we never said, I don't think, that we've to the country. We've obviously had some good successes, but we have plenty of problems as well, and we're very conscious of those issues, which we are working on the whole time. That's what the management and board does. It isn't a short story, but believe you me, behind the scenes, there's a huge amount of discussion about the challenges. And I think we've made some huge improvements, but there's a long way to go.
So we spend a lot of time talking about that. So we're not all hunky-dory, but we're certainly hopefully going in the right direction. Market share, I think you're right, maybe referring to the fixed market share, where or the reseller of the NBN.
Was that, was it?
No.
Share price.
Oh, share price. Sorry, I thought it was a market, market share. Well, share price, I'd before. We've lost many billions of AUD of earnings. 3.5 billion from the NBN alone. Voice, I think, was close to 1 billion, many hundreds of millions, global roaming, all of those things. All of those have gotten done a fantastic job to build the company back up again. The share price would be a lot lower than it is, it is today. And lastly, on the culture, how many directors since we started? My God, that one I have to dig it out, if you'd really like to know, and get that information to you.
The reason is because those people, their bags, and they left. That's the problem. And I, with your permission, I would like to tell. Sorry, a phone user of Telstra. I went overseas, and I paid AUD 250 to keep my number. When I came back, I gave up all those numbers because I go out of Telstra because they could not offer. What I am trying to say on, on a grassroots, on shops, which are people very poor, the fault of management, not their fault, and unfriendly behavior to the customer. So you may have go to have a look and visit to see how that or interact with the customers. Thank you.
Yeah, thank you. You're absolutely right. Things, it's not hunky-dory, is the performance of the stores at the moment. We know that. We've, we've, as you may be able to wholly owned ownership by the company, and we've had a number of issues. Some issues are consistent with the rest of industry, trying to attract qualified personnel during of our own making around systems and the like. So we're very aware of that. But again, I know that management are right on top of that issue, but,
Thank you, John. We'll now move back to online questions as there's no... This question is from James: Regarding copper-based, is it still being installed from fiber node to property at the moment?
Are we still installing copper? The answer is no. The copper is obviously becoming increasingly redundant. If, and as you get out into the regional areas, as we were discussing before, by other technologies that have been worked on to-
Our next question is, was on behalf of Helen Lotas Super Pty, Excuse me, executor of Telstra. Some Telstra services are AUD 20 expensive than any other service provider, these customers.
Well, we actually pay that price premium because we know that we also maintain a service premium. So Telstra offers, in our view, the best service in the market, and we charge for that. In terms of market share, and, certainly holding our own or gaining market share in most, in most segments. So I think, hope, understand, and accept the premium that you have to pay to, access the best network.
De Caliero: Thank you for holding a hybrid meeting. As a shareholder, recovering from an operation, in favor of hybrid meetings. My question is: How much extra does it cost Telstra to do a physical meeting only?
Yeah, thank you. That's a great question. Look, it doesn't cost financially, and the work behind the scenes, which is run by my, my colleagues here, we directors just turn up and they do all the hard work. That side of it is a lot more complicated. And I think we're gonna, of course, have to vote at AGM soon. It's getting so complicated, but the team's managed that. So no more. I think the increase in workload for the team is considerable, but it's worth it because it's very important to us that all,
We will continue online. This question is from J oe Averio. Can the CEO confirm that she is not using Telstra resources to campaign for her-abolished? Many shareholders and customers would be against abolishing Australia Day as-
I can let Vicki answer for herself, but I can assure you, personal views do not carry the day in the decisions made by Telstra as a corporation. We, collective management and the board, and when we adopt positions like the Voice and other things like that in Australia, employees to choose another day if they so wish, but that is not the personal whim of any one person or anybody else. It's a conscious decision made by the management and board as to what's best for the company. If you want to.
Thank you for the question. And just so, our enterprise agreement that was voted on last year by our employees, it offers the option for our employees to choose which day. So that was voted on by our employees and overwhelmingly supported, so we have that flexibility.
Okay, we'll take one more question online before moving back to the floor. Jo Averio again: Can Telstra stop using resources to make political statements like it did with the referendum on the Voice, which it publicly supported? This was wrong. Customers against the Voice, which included some Aboriginal people. It was to curry favor with the government.
Well, sorry. I disagree with that. Again, I think we had a lot of debate as to the best approach to take on that issue, for social issues, and the majority of social issues, the company doesn't take a position. We don't think it's appropriate. But every now and again, particularly in the case of the Voice, where we are not a company that has some peripheral relationship or clearly engaged every single day with indigenous communities across Australia, we've built more black spots, I think close to 1,000. About 80% of the black spot coverage there has been Telstra that's been there. We don't make any money out of those services. They are there to bring connectivity to the bush and to contribute to the quality of life in those communities.
The Indigenous community is really important, and therefore, in our case, it's not the case for every company, but in our case, we felt it was the right decision to support that case.
Question four has a question.
Chairman, I'd like to introduce Ian Hamilton.
Good morning. Before I get to the question, I'd like to compliment what you've done recently. The first one is including unlimited calls in the fixed home line service in line with mobile plans. It was about five years too late, but it's last it's been done. The second one is that there is now free public phone box calls. Most people own a good community service.
However, it's getting hard to find a phone box to use. They're being removed, and these in existence, inappropriate locations, particularly for emergency use. Question is that some companies using Telstra telecommunication services to conduct their business, mainly through social media and, and through advertising are charged through social media.
Considering most people seem almost surgically attached to their mobile phone and seem to be in bed with them, and it's more than a mobile phone, it's a handheld telecommunication service, wireless internet. Are you getting a fair share of the profits, and how can you get more of a share of it? Also, scammers to conduct their crime, including lying about being Telstra staff. Can even more be done to? Say, when someone rings up and says, "I'm calling you from Telstra," and this, this seems to happen a lot in combination, can the call just be cut out, disconnected? And if they really are calling from Telstra, station code within five seconds, it would prove to anyone who picks up the phone that they're getting a genuine Telstra call.
Has Telstra considered setting up a historical equipment, phones, phone books, and phone box display in all Australian capital city museums, money from old and unwanted telecommunications memorabilia, including phone boxes. Phone box you can see on the mural behind, that people that want one of them to put in their house or in their back sell them at a price so that you can not just throwing your stuff in the tip and just getting rid of it.
Well, that's quite a collection of questions. So let me try and answer them in turn. Firstly, thank you for the compliment about the two things that you think. The unlimited calls firstly, and then you did mention the free calls from the public. 23 million calls made since we introduced that. 250,000 of which, more or less, so people who are really in a bad situation.
So I think hopefully a pretty wonderful service, and we're very, very proud of it. We're also, I can't remember the numbers, but Vicki can. Well, from, I think we've got it in 1,500 or something of that sort of number of boxes. But, and that is also going to be expanded by another 10 or 12 thousand.
Very committed to that initiative, and I think it's been a very good one. Your second question was around here, or the revenues from the explosion of data. I actually referred to that in my opening comments. That's one of the biggest challenges for telcos. So, you know, what you use on your mobile, every internet, generally, whatever you're doing, you those companies obviously making a lot of money out of the connectivity that telcos provide, and we actually get paid proportionately less and less. So it's odd, and it's very topical for us and our management team as to how to ensure that we get our overdue that's generated by these new services. You mentioned, I think a third one was, scam calls and the like.
Again, I think we, both myself and Vicki, listed the sheer texts and emails that we intercept. It's mind-boggling, and when you think of how many still get through, the problem. Your question about a code, that's been looked at. The problem is, if they can find out your bank accounts or other things, they'll find out the code pretty quickly as well. So then, and people don't have access to that code at the time to make the call, et cetera. So, you know, Telstra will never ring you up and ask you for your bank account details or any of these things. Or hanging up and calling back a registered Telstra number, so you know you're speaking to a Telstra person.
It is a scourge and a plague on our society, and it's obviously not just Telstra, it's the banks, it's everyone. And I think we're doing more than most. The museum display, well, we do have a museum, but I don't think it's in every capital. Take that on notice, and you're obviously welcome to go and see the museum at any time. And what, I don't know, but I happen to have an old phone box in my house, which was bought by Oricom, but you can obviously, you obviously, well, it's in the garden, not in the house. You obviously can do so, but maybe the next board meeting agenda. Say the phone box. Thank you.
Where is your museum?
Sorry?
Where is your museum?
In Hawthorn.
Thanks.
Great questions.
Okay, we will move back to online questions, John. This question is from Bruce Bebington. And CEO have commented on support to disabled, homeless, family and domestic violence, and customers rely on prepaid as they cannot access postpaid or fixed services. Prepaid customers, them to recharge to be able to make calls and texts whilst they are in credit. Of whom are under financial stress, have recharged based on the text and the website and pay. Will Telstra discontinue this practice and refund any monies paid as a result of this practice?
Well, I, I can't comment on any specific incidents. I'm obviously not aware of them, but the rule is to warn people who hadn't otherwise noticed that they will lose their service if they don't recharge. Same as you don't pay your postpaid, but if you don't pay your bill, you don't just get cut off overnight. You get an alert to tell you that that is, Everybody can miss those sort of things if you're busy. So I, I think it's a practice that is actually the benefits far outweigh the negatives.
Rio has another question. It is not right to charge customers who choose to receive, pay any valid reasons for making this choice, and should not have to state their reasons for doing so, as this could breach their privacy. Can this policy please stop?
Look, again, we realize that that's an inconvenience for some, but the world is going digital, and we have to go with it. So yes, we do impose a small charge for a paper bill, but there are also a whole range of exceptions to that too. If you don't have internet, we waive that charge. I can't remember all of the issues, but I know that there are quite a number of charges. So again, we're very careful about how we do that, but it is unfortunately the way the world is going.
We'll move back to the floor. Microphone one has a question.
Jaren Chuck from Melbourne to speak.
Chairman, my question is to Vicki. You said you're grateful to all the staff. Why is it that, as an ex-employee over 40 years, your the alumni has been removed, and also the manner and atrocious that I would suspect. Secondly, the since then, or at least, AUD 10, please.
And thank you, Ronnie, for raising it. So the first thing, we do recognize and appreciate the loyalty of all of our alumni of Telstra. It was taken away as part of our move to our new digital stack. So as we simplify, we had to make the choice about taking away some complexity, and unfortunately, the environment in the timeframe we needed to migrate was a trade-off, a difficult trade-off we made.
I fully accept the first round of communications to our alum was not good enough. We did follow up with subsequent communications, and so I apologize, because it could have been handled far better. And it is, unfortunately, it is an example of one of those we moved to the new environment where the experience is s ignificantly better for our, I mean, the efficiency in the business to be able to deliver the overall investments and returns in the business. But, apologies for the first round of communications.
Now we'll move to microphone number two.
Chairman, I'd like to introduce Elana Rubin.
Hello, everyone. I haven't got much. I'm addressing you, Vicki Brady. I believe you're corrupt. You destroyed Telstra, and you brought in this other rubbish that still doesn't work. I rang up and spoke to ring me back, and I was assured it'll all be fixed up. I believe, from what I've been told, it was sold to Thunderbird. Well, Thunderbird's not the best to use. I do an LHS degree, and I found that Telstra Big Pond was my life, and I've been using the bloody internet since it started. I was one of the first. My house, you know, I used data originally. I just cannot believe how you have destroyed Telstra Big Pond, and I'd like to bloody well know why you did it.
Female system, the easiest to use, and now you've got this bullshit with this blue that I had a look the other night. It still doesn't work.
Um.
Can you answer that? You've got-
Alan, I'll answer that one. Firstly, if you make offensive statements to anyone here, we're not going to answer your question, full stop. If you have a legitimate complaint about Bigpond, I use Bigpond, too. I've known some of the, some of the issues. If you have a legitimate complaint here in the audience, staff members sit down before you go, understand exactly what your problem. Sitting here and try deal with it. Saying it isn't.
The system that I'd ever seen. I looked at all the others, I looked at Outlook, I looked at all it, and even Thunderbird's got problems.
Yeah. Alan, this is a Telstra AGM.
I know.
There are lots of other shareholders here.
Well, I turned up
You have raised
here in Melbourne.
You have raised a specific issue relating to your service. A legitimate- Not in front of 400 people.
People that got chopped off on May the twenty-second, I think it was, without any notice. There was no notice, nothing.
I think I've answered the question. Please sit down or we will cut him off.
No.
Thank you.
We'll take another question from microphone number two.
Chairman, I'd like to introduce Fred Cornelius from Essendon.
Chairman and Board, I have two issues. One is you've increased Foxtel and the internet. That's fine, but the service hasn't improved. I have frequent screens, so while the price increases, what we're... Second issue I have is that some time ago, I bought Telstra equipment, and then a few years later, Telstra decided that they were going to change and became incompatible and redundant. Telstra offered no compensation. When they change the system, when we spend hundreds of AUD buying your equipment, don't you think replace it when you put a new system in and give us a new item that's just shutting it off?
Thank you. Thank you. Again, of the specific details of your, the issue that you've had. What you're saying sounds perfectly reasonable. We do have customer service teams here in the auditorium, so before you leave, make sure you grab one of them. But actually not mine anymore, Craig. We will follow on your particular issue, but I, I'm obviously powerless to answer it here because I, I don't know what's happened.
The point I'm trying to make, for the sake of have a system in place to automatically replace these items without us having to go at a something like the AGM or one of your technical assistants. Put in a system to put through this mill.
Yeah, I get you, and we do replace a lot of equipment. But we will look into it for you, Fred, and we will fix it for you.
Thank you.
Pleasure.
Online questions, and this is a follow-up question from Bruce Bebington. Noting the responses about, "Does this mean my landline will not be disconnected on November 29 and forced onto 3G? Will the board commit that all copper landline closures and forced migrations will cease immediately? Further, will the board commit that those customers who have been forced migrated with a view to reopening closed copper landlines?
Look, I can't make any commitment on exactly what will happen to what, which bit of copper, when. Nobody will lose the service they have, whether it's through replacement of copper, it's the closure of 3G or any other service, when an alternative that offers at least this good, if not better, service is available.
The next question is online, and this is a comment from Peter Caliero. This shareholder is in favor of your decision on Australia Day and the Voice.
Well, thank you. You know, that's a famous quote, Voltaire's biographer, that "I disagree with everything you say, but I will defend to the death your right" should characterize all these debates. We live in a pluralistic society where people have respect all of those views, and we respect that not all of us will always agree with everything that either the company does in the public arena.
Next question online is from Joe Alberio again, the customer service. It only takes a look at the customer reviews on the internet to discover the awful customer. This no doubt results in lost sales as other customers choose not to be subject to the poor treatment of. Customer service does not seem to be an important priority.
I think, I tried to actually address that up front in my opening comments. Bad customer experience is one too many, and we take that very seriously. I think I mentioned some of this, but the management team have made has been absolutely dramatic. Reductions of, I think we had 36 million being reduced to below 10 million now. Huge reductions. The Ombudsman's complaints down by 70%, and, and the like. Obviously, when you've got 18 million customers or whatever, and so we're very, very conscious of that, and I don't think there is a higher priority, Vicky, than you and your team drive out all of those complaints.
John, there are no further questions online for this item, so that concludes the question session for this item.
Okay. Yeah. Okay. And we've got no web and-
Web phone questions, John.
Okay, so-
We can move on to the next item.
I can now move to. Okay, next up is item three, director election and re-election. As I mentioned earlier, Maxine Brenner and Ming Long are standing for election. Elana Rubin are standing for re-election, and their details are set out in the notice of Items three A, B, C, and D will be voted on separately. But to assist with the elders here today, I'll deal with the discussions of Maxine and Ming's elections and Bridget and Elana's re-election. So I would now like to invite Maxine, Ming, Bridget, and Elana to address the matters. If you have any questions on their elections and re-elections, please come to your nearest microphone, or if you're on, or raise your hand on the web phone. Who's first?
Um, yeah.
Okay.
Thank you, Chairman, and good morning, fellow shareholders. I, too, would like to acknowledge the Traditional Owners of the land on which we meet and pay my respects to their Elders, past and present. To introduce myself to you, the owners of Telstra. As an executive, I was specializing in mergers and acquisitions, corporate finance, restructuring, acquisitions. This led to my being appointed to the Takeovers Panel, where I not only applied regulation in Australia, but also adjudicated over a number of significant takeovers. At the same time, I embarked on my non-executive career, which started over 28 years ago. Since then, I've sat on over 15 boards, ranging over energy, airline, airports, finance, property, food and civil, and with your support, telecommunications. I bring that wide cross-sectoral body of experience to my role at Telstra. During that 28-year period, there have been some mistakes.
I'm passionate about learning from both and committed to bringing those areas to my work at Telstra. Since February this year, when I was a member of the Audit and Risk and Nomination Committees, I've both the commitment and time of my role on the committees and the board. With your support, I'd feel privileged on the board, and Vicki and her excellent management team to build upon a strong heritage. Finally, I'd like to acknowledge the outstanding leadership of our Chair, John Mullen. He has led our company through difficult times and to where we are today. Thank you, John. And with Craig as our new Chair. Thank you.
Thank you very much, Maxine. I think, Ming, are you next? Yeah.
Thank you, John. Is that on? Yep. Good morning, everyone. My name is Ming Long, and I'm honored to have the opportunity to speak to you regarding my appointment. I can scarcely believe that when I arrived as a migrant in Australia over 40 years ago, that I would have the opportunity to join the board of an iconic Australian company. At that time, we moved from a capital city overseas to a small country town in regional New South Wales. I have a deep appreciation for regional Australia and the possibility of what it can achieve, and I believe Telstra is integral to the future where everyone can thrive. As we face an increasingly complex, connected, and disrupted world, from climate to AI, it is more important than ever that we can deliver for them with confidence.
I am very conscious, a director on the board plays in the stewardship and governance of Telstra in business, and to continue to deliver enduring value to our current and future shareholders, but also to our current employees and other important stakeholders. I want to express my deep gratitude for the opportunity to serve on the board of Telstra, and I'm confident with my experience in finance as somebody to serve on the board of such a nationally significant company. Thank you very much for your time and con,
Thank you, Ming. Bridget.
Thank you, Chair. Good morning. Good morning, everyone. I was born here in Australia, but I spent most of my childhood in Ireland. I was 21, and I'm very, very proud to call Australia home. It has been an immense privilege to, three years. It's also been my honor to serve on the People and Remuneration Committee of transformation and growth, sitting at the heart of a country on a similar journey. So yes, build on the foundations of hard work over these past few years to reach new heights in a digital. It's a pleasure to address you today to seek my re-election to the board. As a non-executive director on the lives, experiences, hopes, and challenges of our customers. I also instinct for how great technology products get built and how companies can prepare for the future.
Deep experience in entrepreneurship, technology, and commercializing products and services in the digital world. To me, and with your support, I look forward to serving this excellent company and its shareholders for-
Thanks, Bridget. And last, Elana, please.
Thank you. Good morning, all. Respects to First Nation people who might be attending. I am seeking re-election as a director of Telstra. It's been three years myself to you, and much has happened through that period. At the time of my election, in joining a company which is so central to how we live, work, and engage, and how Telstra was responding to the COVID situation to support employees, customers, and vulnerable members of our community, and these sentiments. I also spoke about the privilege of being involved in the governance of organizations that have regard to the needs of all their stakeholders, are best placed to deliver long-term sustainable performance. Milestones over my first in the finalization of the T22 strategy and the development of the T25 strategy with its focus on growth, improved customer, and shareholder returns.
We brought our retail stores in-house, centers on shore, transitioned to new technology, monetized our towers business, and worked to reduce our impact on the environment. Throughout, active contributor to the board discussion and have brought my diverse experience and perspective range of sectors to the discussion as we navigated through many issues: financial performance and customer satisfaction, reducing reliance on legacy, increasing cybersecurity, driving employee engagement, promoting system, just to mention a few.
Throughout all our discussions, I've been mindful of balancing shareholder, customer, and broader stakeholder interests. I've also committee, am one of two directors with rural and regional responsibility for a period. But perhaps the most important milestone of the last has been the appointment of Vicki Brady as CEO, following Andy Penn's retirement. They say that the most important function a board undertakes is the appointment of assistant.
That we could not have selected a better CEO than Vicki. You've heard today, Craig Dunn, following the retirement of John Mullen as chair. I join others in saying quite publicly and loudly, the director and chair, and has made a huge contribution to Telstra. I'm delighted he will steward the company well through the completion of T 25 and be very proud of the work that Telstra does in delivering for shareholders, customers, and so with your continued support, I look forward to being elected for another term. Thank you.
To fellow directors. The board, other than Maxine and Ming, in respect to their own re-election, the board recommends the election and re-election of each director. A direct voting position for items three A, B, C, and D are now being shown on the screen. In the notice of meeting, I intend to vote all available proxies in favor of the elections of Maxine and Ming and Ilana. I will now take questions from shareholders on item three.
John, we do have some questions on item three online, and the first question is on behalf of Helena Lotus Super Pty Ltd. With the re-election, Brenner, there's skepticism and concerns and issues that I wish to raise, as she used to work for the Qantas board, and that she was and is responsible for Qantas's governance failure and the capability in customer service. Why should I vote for her?
Firstly, questions relating to anything to do with Qantas sort are inappropriate, and we will not be answering them. This is a Telstra AGM, with Maxine's tenure at Qantas. I respectfully suggest that you attend the Qantas AGM and you ask those questions there. All I can do is talk about Maxine's role as a director of Telstra, an exemplary director. Maxine is smart, engaged, very experienced, with a lovely personal style. In my view, and the views of my fellow directors, shareholders are very lucky to have someone of her caliber representing them on the Telstra board, and we don't intend to say anything. Lastly, if you will, permit me an observation, though.
Obviously, shareholders are free to do whatever they want, but some a long way away by people who never had a known a particular director, and I'm not referring to Maxine at all, whose election is being discussed. Now, of course, there are bad directors, and it's our job to address that through tough and rigorous appraisal system of director performance every year. And as chairman, I've over the years a few directors to step down. But I don't think it's unfair to ask shareholders to give us a little credit when the board election. Sometimes shareholders trust us with billions of dollars of investment decisions, important decision the board can make, but not a judgment as to whether a particular director is a good-
John, there's no further questions online or the floor or the web phone for this item. So that concludes the-
Thank you, Nathan and shareholders. So we, that's finished our discussion of item three. If you haven't already done so, items four and five on today's agenda, which relate to the allocation of equity to your CEO, Vicki Brady, under Telstra's FY 2023 financial year 2023 executive variable and the adoption of our 2023 remuneration report. Items four and five will be voted on separately, but as they both relate to remuneration-related matters, we'll similarly deal with the discussion. Details of the proposed grants to Vicki under item four are set out. Vicki's total remuneration package for 2023, during which she held the role of Chief Financial Officer until the 31st of August 2022, and then CEO for the remainder, included variable remuneration delivered through the EVP.
In summary, what's to be granted was based on the dollar value of Vicki's individual EVP outcome, where EVP outcome was determined by the board, taking into consideration Telstra's performance against the specific measures set by the board, as well as her individual performance. Other than Vicki, of course, considers Vicki total remuneration package for the 2023 financial year appropriate in all the circumstances, and we recommend that shareholders vote in favor of items 4A and B. Item 5 provides an opportunity for shareholders to comment on and ask questions on the remuneration report. While the vote on this item is advisory, the board takes it when reviewing Telstra's remuneration practices and policies. The board recommends that shareholders vote in favor of item five, the adoption of our remuneration report. Items four and five are being shown now on the screen.
As indicated in the note, proxies in favor of the grants to Vicki and the adoption of the remuneration report. four, five, please now come to your nearest microphone. Alternatively, as before, you can raise your hand to ask an audio question through the online platform. At the end of this question session, so if you have any final questions on any subject that you would like to add on to shareholders as a whole, please also ask those now. I'll now take questions, as well as any remaining questions on the earlier items of business. Nathan?
Yes, we do, John, and the first online question on this item comes from Hong Nian Jin. Its value by more than 10% in the last four months. How is this reflected in item four?
Thank you. Obviously, we don't have any control, direct control over how the share price. Items 4 and 5 refer to the remuneration practice for the entire year. That obviously takes place and is finalized before the events of the last month or two. We're very comfortable that the messaging and the intent of everything I've just said, and share price will go up and down. Unfortunately, that's the market. Let's hope it goes up.
Question from the floor, from microphone number two.
Chairman, Chairman, I'd like to introduce ASA.
Mr. Chairman, we share your concerns with remuneration report complexity and depth. But in fact, of all the companies on the ASX, yours is probably the best laid out. So even though it's a bloody, so quite well laid out, and some of the descriptions of why certain so on are very well communicated. So we think it's a model for other listed companies. We do have one, we talked about it a previous time, but I think it's probably worth shareholders hearing about it. That, Vicki's achievement of seven is the same as Andy's, but in fact, all of the staff working under her received considerably less, a greater share of their maximum, and the staff that actually do the work get a lower share. So that-
Thank you, Mark. I just think I'd start by correcting your last bit about the staff who do all the work. I think Vicki works hard, collective effort. But yeah, no, look, that was a very smart observation. But so under the EVP plan, the senior leadership all end up with one collective result, as you rightly said. But we then have introduced a multiplier on performance that can increase or decrease your relative percentage. In Vicki's case, we genuinely think she has made an unbelievably good start. She's taken the company, the handover from the company seamlessly. She's taken the company on. And a result, she got a high multiplier, and it was higher than some of some of the others. And that will change every year, depending on performance of individuals.
Everyone's well-performing, but obviously some more than others, and we try to reflect that with the multiplier. That's the reason why there was a difference.
A question from Joe Alberio: Haven't decisions that were made to discontinue landline phones that could be used when there was no power, affected the safety of customers who cannot use their landline phone during emergency when there is a power outage?
The fact that when Telstra was the, the provider, the old phone system, whereas now under the NBN, there is no such plan. My, my understanding, therefore, in the event of power failure, you do lose that, that ability. But obviously, mobiles is where people, b ut that was a decision of government, not of Telstra. It was the creation of the NBN that created that.
John, I've been advised there's no questions on the phone, there's no questions online, and we have no further questions.
Wonderful. So, j ust get my right page here. Sorry. Yeah. Okay, now, we're already on that bit. Just thank you, and shareholders, we have now finalized our discovery. Please again, submit your votes online or complete your voting card for these items. So today's annual general meeting. For those of you online, if you haven't already done so, please submit your votes. Voting card. Attendants are carrying ballot boxes throughout the room, and ballot boxes are also located, will remain open for a further 10 minutes to enable shareholders to submit their votes, and the results of the poll will obtain by visiting the ASX or our website. Just before I finally close it, just before there were a couple of specific shareholders who had issues with their services, please don't leave without speaking to one of us to get those addressed.
We will take that on board now before you declare our 2023 Annual General Meeting closed, subject to finalization of the poll on item three and management. Thank you, shareholders, for joining us today for my last AGM. It has been a pleasure, and I wish everyone all the best for the future. Thank you.