Bendigo Telco : 2021 Concise Annual Report

2021

Concise Financial Report

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2 Bendigo Telco 2021 Concise Financial Report

Contents

Chairman and Managing Director's Report	4
2021 Highlights and Company Statistics	6
100 GIG Bendigo	8
Business Transformation	10
Community Support	12
Products and Pricing	14
Financial Report	16

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Chairman and Managing Director's Report

We continue to focus on our customers and communities by delivering technology and services that allow them to thrive.

Financial Results

This year's financial results include the investment we have been making into the business to enhance our customer engagement and delivery capability.

In addition, we have been developing our strategic product set to ensure we continue to deliver our customers'

Dear Shareholder

We would like to thank you for your ongoing support during a year in which COVID-19 continued to have a significant impact on our lives, communities and the economy.

The telco industry has not been immune from these impacts and whilst we continue to see change in technologies and the industry, we are still of the strong belief that opportunities exist where our business can add value for customers in all our markets, as well as enhance the services and support we can offer in each individual market we support.

The continued rollout of the NBN, new technologies and changing customer requirements in this digital environment, for both business and consumer clients, has required us to refine our priorities and enhance our product set and focus across the business.

We are pleased that we continue to produce solid results while transitioning the business to offer products, services and technologies that are now utilised and depended upon by our customers.

We are committed to remain relevant and effective for our customers in this new telco environment.

We believe - through commitment to purpose, adaptation of strategy and support from our strategic partners

• we will continue to contribute to a sustainable future for all customers. As a business we remain committed to our original purpose applied over two decades. We continue to focus on our customers and communities to ensure they are successful in the execution and delivery of technology into their chosen strategy.

During the year Kevin Dole was appointed as the new Managing Director. Kevin has been a Director since September 2016 and provided consultancy into the business prior to his appointment. Kevin has held several senior roles during his career and brings a wealth of technical and leadership experience to the business. The Board is extremely pleased with the appointment and the progress being made under Kevin's leadership.

current and future technology requirements.

The business continues to deliver solid results with an underlying NPAT of $1.43m, revenue of $29.72m and a reported EBITDA of $4.18m.

These results have provided our Board with the opportunity to declare a fully franked dividend of 7.5 cents for the final half of the year, bringing the total dividends paid from the FY21 trading year to 13.5 cents.

Bendigo Telco 2021 Concise Financial Report

Investment

During the past twelve months we continued to invest in our customer engagement and delivery capabilities, as well as progressing and enhancing our products and services to remain relevant to our customers.

We have focused on multiple layers to uplift our engagement, from customer and community networks through

to regional and government sectors. We will continue to focus on all opportunities in our chosen markets as we strive to confirm a real point of difference in delivering commitment and value for our customers.

With regard to our delivery capabilities, we have adopted a more agile and modern work practice across our service teams. This has resulted in improved customer connection and more efficient business outcomes.

As a technology-based, customer services business, we will continue to partner with key telecommunication and technology providers to build and deliver products and services that support our customer's needs. This year has seen us review a number of our technology partners and we will continue to do so in the coming year ahead.

Products and Services

Our product development has continued to focus on maintaining the core products and services of a traditional telco as we reposition our traditional voice and network product set. The continued rollout and adoption of new technologies continues to compress some margins and revenue as customers adopt the appropriate new services for their business.

As the industry advances and technologies change, our products will continue to evolve with the adoption of cloud services which provide a greater level of scale, flexibility, and efficiency.

For our customers to be successful in the delivery of their strategy we are repositioning your business to be more than a traditional telco.

Our customers require highly available and cost-effective network connections to support customer service applications, cloud services and the implementation of sensor- based networks for industries such advanced manufacturing and smart agriculture. The advances

in our product set will support our customers in the successful adoption of new technologies.

We will continue to deliver more meaningful and relevant relationships with our customers to ensure the long term sustainability of our business.

During the year we expanded our product set in the form of 'IT Services' to service our customers' technology needs. We have mobilised a service team focused on helping customers adopt new business applications and offering support to improve workplace productivity. In a short period of time, we have been able to see pleasing results as we continue to enhance our services and support.

As we move forward our products and services will continue to

be developed with ongoing enhancements to maintain success for all stakeholders. We have implemented a structured release program where product feature and function will continue to be a mainstay of our business. The enhancement and review of our products is being undertaken with a focus on a number of factors: relevant products, supported by strategic industry partners, delivered in a cost-effective and efficient manner.

Whilst technology products will evolve, our commitment to genuine customer engagement will set us apart. Our business will continue to deliver services through a number of channels, which ultimately provides our customers with choice. We will continue to have direct engagement via our dedicated staff and partners as well as striving to adapt and deliver a relevant digital experience.