TPG Telecom: Overview of Financial Position and Strategies

This report provides an overview of the financial position of TPG Telecom, including its revenue, cash flow, and customer growth. It also discusses the different strategies used by the business to survive and grow in the market.

Running head: BUSINESS FINANCE
TPG Telecom
Business Finance
12/24/2018

BUSINESS FINANCE 1
Table of Contents
Introduction................................................................................................................................2
Overview of TPG Telecom....................................................................................................2
Financial Market....................................................................................................................3
Types of Financial Market.................................................................................................4
Securities Trading Policy.......................................................................................................6
Operating and Financial Review............................................................................................6
Customer Growth...............................................................................................................6
Corporate Revenues...........................................................................................................7
Financial Results Review.......................................................................................................8
Revenue..............................................................................................................................8
Analysis of Cash Flow...........................................................................................................9
Free Cash flow...................................................................................................................9
Non –Operating Cash Flow..............................................................................................10
Balance Sheet.......................................................................................................................11
Debt..................................................................................................................................11
Cash and Cash Equivalents..............................................................................................11
Receivables and Payables................................................................................................12
Assets...............................................................................................................................12
Liabilities..........................................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14

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Introduction
Business finance is the money required to introduce and operate a business, which comprises
diversifying or modernizing operations and expansion. The business finance term comprises
the manner in which a firm uses and obtain money, frequently in terms of loans. In other
words, it is about strategies for investing, earning, and saving revenue. Business finance is
very essential for every firm to take on business and achieve success; a business needs
noteworthy investment to obtain new capital, inventory, or staff (Tracy and Tracy, 2011). In
the short-term, businesses need finance in the context of working capital in order to fulfil
operational expenses like raw materials, interest payments, remunerative payments,
inventory, etc. Correct financial for short-term and long-term and upkeep of good flow of
working capital is vital to retain the operations going. This is the duty of the business
managers to manage the investment and funds in the company such that they can be used at
the right time and place. All the situations are diverse, but smart managers take success cost
and their options for attaining financial growth (Borowski, 2010). The aim of this report is to
provide an overview of the financial position of TPG Telecom. The report will present
financial statements of TPG Telecom that will represent whether the financial position of the
company is strong or weak. Moreover, the different strategies used by the business to survive
and grow in the market will be elaborated into the report.
Overview of TPG Telecom
TPG Telecom Limited is an IT and Telecommunication Company of Australia that
specializes in business and consumer internet services along with mobile telephone services.
According to the reports of 2015, TPG Telecom is the second largest Australian internet
service provider and is the biggest virtual network operator. The company has around
360,000 mobile subscribers, 358,000 landline subscribers, and 671,000 ADSL2+ subscribers,

BUSINESS FINANCE 3
and possesses Australia’s second largest ADSL2+ network, involving of 391 ADSL2+
DSLAMs (TPG, 2018a). The company was established due to the merger between Total
Peripherals Group, which was introduced by Vicky Teoh, SP Telemedia, and David in 1986.
In 2018, Vodafone and TPG Hutchison Australia proclaimed their purpose to merge, with
49.9% stake of TPG in the merged company. TPG offer provides five varieties of services
and products comprising networking, accounting software, Internet access, mobile phone
service, and OEM services. In 1986, Total Peripherals Group was introduced by the
Australian businessperson i.e. David Teoh. The group was introduced as IT Company that
vends OEM computers and later shifted towards offering mobile telephone services and
internet services. In 2007, TPG tool 70% controlling interest of internet provider Chariot
(TPG, 2018c).
TPG Telecom concentrates on middle-market buyout and growth equity opportunities. The
company has adopted a hands-on approach to partnership, in order to recognize the exclusive
businesses all over Africa, Asia, U.S., and Europe and support in attaining full potential. The
business can assist at every stage of the growth of the company, with the help its international
expansion. The company is also focusing on meeting its corporate social responsibilities by
organizing numerous events for families with gifted students. The company is striving
towards enhancing and increasing the learning and education opportunities if the talented and
gifted students (TPG, 2018b).
Financial Market
A financial market is a comprehensive term recitation any market where buyers and sellers
contribute to the trade of assets like currencies, derivatives, equities, and bonds. Financial
markets are classically distinct by possessing clear pricing, basic guidelines on trading, fees
and costs, and market services defining the security prices that trade (Valdez and Molyneux,
2010). Financial markets are available in all the countries of the world. Few of them are

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small, with a limited number of participants, whereas others such as Forex markets and New
York Stock Exchange (NYSE) are involved in the trading of trillions of dollars every day.
Types of Financial Market
Capital Markets
In the capital market, institutions and individuals trade their financial securities. Institutions
and organizations from the private and public sectors also frequently vend securities in this
market to raise funds. Therefore, this kind of market is created of both the secondary and
primary markets. There are two types of market in the capital market i.e. Stock market and
bond market (Goyal and Goyal, 2014).
Stock Market
In Stock markets, stockholders are permitted to buy and sell their shares in the publicly traded
businesses. These are the essential market economy area because they offer business as
access to investors and capital with a share of ownership with the business and the possibility
of gains depending on the future performance of the company (Campbell, Lo and MacKinlay,
2012).
Bond Markets
A bond is commonly known as a debt investment under which an investor advances money to
a business that can be governmental or corporate. This business takes funds for the prescribed
time duration at a fixed rate of interest. Different businesses, states, U.S. and a foreign
government, and municipalities utilize bonds in order to finance a range of activities and
projects (Madura, 2016).
Money Market
The money market is the financial market segment under which trading of financial
instruments with great liquidity and short maturities take place. Participants use the money

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market for lending and borrowing in the short run, from numerous days in a year. Securities
of money market comprised of banker’s acceptance, municipal notes, negotiable certificates
of deposit (CDs), repurchase agreement, federal funds, U.S. Treasury bills, Eurodollars, and
commercial paper (Burton, 2010).
Spot or Cash Market
Capitalizing in the cash market is extremely cultured, as it possesses opportunities for both
big gains and big losses. Under the cash market, products are vended for cash and are
delivered directly.
Derivatives Markets
The derivative is the name selected for this market because the value is derived from its
original assets. A derivative is an agreement and the price of the contract is dogged by the
core asset price in the market (Levinson, 2018).
Primary and Secondary Market
New securities are issued in the primary market on an exchange. Businesses, government,
and other different groups attain financing with the help of equity or debt based securities.
Primary markets are also called as "new issue markets," are enabled by guaranteeing groups,
which contain investment brands that will arrange a beginning range of the price for a
oversee security and then supervise its transaction straight to investors.
The market where investors buy assets or securities from a different investor is known as a
secondary market. The SEC or Securities and Exchange Commission records securities
preceding to their initial issuance, then they initiate trading in the market such as Nasdaq,
New York Stock Exchange, or other different stock exchange where the assets and securities
have been putative for trading and listing (Talmor and Vasvari, 2011).

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TPG is also an investment company. It is the biggest investment firm in terms of private
equity in the world, concentrated towards growth capital and leveraged buyouts, TPG handles
investment funds concentrating in public equity, debt investments, growth capital, and
venture capital. The company invests in a wide variety of industries comprising industrials,
health care, consumer/retail, travel, leisure, media, and telecommunications.
Securities Trading Policy
TPG Telecom has adopted the Securities Trading policy in order to confirm that the
employees, executives, and directors of the company follow the laws related to insider
trading. This policy offers guidance for the employees, executives, and directors in terms of
their dealing in the company's security. It forms part of the corporate governance compliance
of the company and any breach to the policy can result in disciplinary action that can be
comprised of termination of the employment. Penalties for the breach of the provision of
insider trading of the corporation's act comprises fines and in few of the cases imprisonment
(TPG, 2010).
Operating and Financial Review
Customer Growth
Group Broadband Subscribers
The TPG ended with 1.93m broadband subscribers in 2018 financial year, which is a decline
of 5k in the year. Besides this, there are some changes in the composition of the broadband
base of the customer with NBN subscribers augmenting by 300k to 861k, signifying 45% of
the overall customer base of the broadband at the end of the year (TPG Telecom Ltd, 2018a).

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Source [(TPG Telecom Ltd, 2018a)]
Corporate Revenues
The revenue of the corporate segment augmented to $753.8m, which is around up by $10.8m
in comparison to the prior year (TPG Telecom Ltd, 2018a).
Corporate Segment Revenue
$m Legacy iiNet Voice Data/Internet Total
Financial Year
2017 Revenue
69.8 147.1 526.1 743.0
Financial Year
2018 Revenue
60.7 130.4 562.7 753.8
Financial Year
2018 Growth
(9.1) (16.7) 36.6 10.8
The above data reflects that there is an increase in the internet and data revenue by $36.6m
that is approx. 7% increase imitating the strength of the corporate segment’s internet and data
product set leveraging the wide fiber network of the Group.

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The decreasing voice revenue imitates an ongoing decline in the industry trend in the usage
of fixed voice.
The decline in the revenue of legacy iiNet imitates the point that new corporate sales are
mostly done in the AAPT and TPG brand in place of iiNet.
Financial Results Review
Revenue
Customer
The revenue of the customer segment is declined to $1741.4m by $6.3m in the financial year
2018. This shift is mainly that outcome of the increase in the revenue of broadband i.e.
$51.2m, a decline in the revenue of fixed voice i.e., and a $7.0m unique item revenue
revealed last year that profited the results of the financial year 2017. Subscribers of the
broadband plans decreased to some extent by 5k to 1931k (TPG Telecom Ltd, 2017b). This
shift is a major alteration in the configuration of the customer base of broadband with NBN
subscribers cumulating by 300k to signify 45% of the overall broadband customer base at the
end of the year. Balancing that the subscribers of ADSL decreased by 319k that signify 49%
of the overall base of the customer at the end of the year. The consumers make use of on-set
FTTB services of the group increased by 13k to 50k at the end of the year (TPG Telecom
Ltd, 2018a). (Refer to Appendix 1)
Monthly ARPU for the customers of broadband endures increasing in the year because of the
fact that the services of NBN possess a higher price point as compared to DSL services they
are substituting.
The $50.5m decrease in the revenue from the services of fixed voice imitates both the point
that within the industry the home phones usage is decreasing and the element that separate

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services of the home phone are being substituted by the services of NBN, which bundle data
and voice (TPG Telecom Ltd, 2018a).
Corporate
There is an increase in the revenue of corporate to $753.8m by $10.8M in the financial year
2018. This revenue growth was determined by a $36.6m rise in internet and data revenues,
partly balanced by a $16.7m reduction in the revenue of voice and $9.1 reduction in legacy
iiNet revenue of corporate customer (TPG Telecom Ltd, 2018a).
The rice in the internet and data revenues imitates the power of the corporate segment
internet and data product set leveraging the wide fiber network of the group. The decrease in
the revenue of voice imitates an ongoing declining trend of the industry in the usage of fixed
voice. The decline in the revenue of legacy iiNet imitates the point that fresh corporate sales
are mainly done by the AAPT and TPG brand in place of iiNet.
Analysis of Cash Flow
Free Cash flow
The group has attained another strong cash flow performance with operating cash flow for the
financial year 2018 of $868.3m again more than EBITDA. In 2018, Tax payments were
unusually high due to the included paid tax in the realized capital gain on the sale of
investments in the 2017 financial year (TPG Telecom Ltd, 2018a). (Refer to Appendix 2)
IRU Payments
$34.1m of IRU payments imitates principal payment of finance lease liabilities for worldwide
capacity attained by iiNet proceeding to its achievement by the Group. In July 2018, these
payments were ended which reflects that the company has repaid its overall liabilities (TPG
Telecom Ltd, 2018a).

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Capital Expenditure
Business as customary (‘BAU’) capital expenditure of around $258.0m is $100m, which is
less than 2017 principally because last some years have added that substantial expenditure for
the contract of Vodafone fiber, which was considerably finished during the financial year
2018.
$597.3m of Mobile spectrum capex in the financial year 2018 imitates the payment in the
year of the very first installment for the spectrum 700MHz attained at mart in 2017. In
financial year 201around 8 $38.7m of capex was covered in terms of small cell mobile
network in Australia and around $62.3m in terms of the Singapore mobile network rollout
(TPG Telecom Ltd, 2018a).
Non –Operating Cash Flow
Debt drawdown, interest, and facility fees
The payment of 700MHz done increased the total negative free cash flow in 2018 for the
group, which was subsidized by a drawdown on the debt facilities of the Group by an amount
of around $430.8m (TPG Telecom Ltd, 2018a).
The debt facilities of the group were edited, prolonged, and increased in the starting of the
financial year to finance Group’s spectrum commitment and investment plans related to
mobile network at around $10.8m. Payments of the interest were done under the facilities
totaled $44.6m in the year (TPG Telecom Ltd, 2018a).
Dividends
Paid dividends in the year include the dividends of the financial year 2017 and the dividend
of the interim financial year 2018 of around 2.0 cents per share. The decrease in the paid
dividends imitates that the financially practical decision of the Board to recollect a superior

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profit proportion in the Company for disposition in the mobile network rollouts (TPG
Telecom Ltd, 2018a).
Investment Sale Proceeds
In the previous year, the Group created proceeds of around $124.5m from the sale of an
investment (TPG Telecom Ltd, 2017b).
Balance Sheet
Debt
In the year 2018, the long-term debt of the company is 1301 million, which is more than the
long-term debts of the financial year 2014 that is 347 million (Morning Star, 2018). This data
reflects that the company is focused towards investing in different projects that will offer
benefits to the company in the long run. Besides this, a company that requires money for the
long run normally can increase capital through long-term debts or equity. TPG Telecom
regularly issues its shares in the market and invests in long-term projects in order to raise
capital and more revenue in the market. (Refer to Appendix 3)
Cash and Cash Equivalents
In 2018, the company possesses 82 million of cash equivalents, which is more than the cash
equivalents of 2014 that is 24 million (Morning Star, 2018). This imitates that the company’s
liquidity position is continuously becoming strong, which allows it to make any time
payments. Besides this, with the strong liquidity position, the company can arrange cash
whenever it is required. Moreover, in an unforeseen happening or tragedy, liquid assets offer
a safety net.
Liquidity offers financial liberty to the company in the context of buying power. Liquid
assets offer account holders with instant access for the small as well as large purchase.

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Consumers and Investors with cash can perform quickly in order to get the best deal. Low
cash reserve limits the occasion to act (Maul, 2011).
Receivables and Payables
In 2018, the receivables are around 129 million and payables are over 206 million (Morning
Star, 2018). This data imitates that company has more account of paying to its creditors in
comparison to debtors. Therefore, it is recommended that the company should pay off its
liabilities such that it does not face any challenges in the future. Considering the financial
position of the company, it can pay off its liabilities effectively with the help of its current
assets.
Assets
The overall assets of the company that is 5390 million are increasing in the financial year
2018 that in comparison to the total assets of 2014 is more that is 1509 (Morning Star, 2018).
This reflects that the company is focusing on increasing its existence in the market by
involving in different segments of the business. This will help business in increasing its
market base as well as customer base in comparison to other competitors in the market.
Liabilities
Total liabilities of TPG Telecom in 2018 are 2610 and in 2014, it was 677 (Morning Star,
2018). This data reflects that the total liability of the company is increasing with the increase
in its business operations in the market. Moreover, the total assets are more than the total
liabilities of the company, which imitates that company, possess enough capability to pay off
its liabilities and survive in the market for longer time duration.

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Ratio Analysis
The ratio analysis is the technique that is used to analyse the financial performance of the
TPG telecom over the period of two years and the same is determined in the form of the
liquidity ratios, profitability ratios and the market value ratios (Tracy, 2012).
Liquidit
y
2017 2018
Current ratio
Current Assets 0.37 0.26
Current Liabilities
Quick Ratio
Quick Assets 0.34 0.24
Current Liabilities
The current and the Quick ratio of the company are the lower than the ideal ratio and the
same shall be improved by the company by getting rid of the obsolete assets and machinery
and also by opting for the long term liabilities so that the company gets the time to pay off the
same.
Profitability
2017 2018
Gross Profit Ratio
Gross Profit * 100 51.7% 50.7%
Net Sales
Net Profit Ratio * 100 16.7% 16.0%
Net Sales
The profitability ratio of the company is moderate in comparison to the previous year and this
can be improved only if the company reduces the operating expense and deliberately cuts don
the unwanted costs associated with the business operations (Investing, 2019).

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Market Value Ratios
2017 2018
P/E Ratio
Market Value
41.6146
4
47.9864
3
EPS
Earnings Per Share
Net Income 0.174 0.143
Weighted Average Outstanding
Shares
Lastly, the market value ratios of the company indicate that the P/E ratio of the TPG limited
is 41.6 and 47.98 whereas the earnings per share of the company is low in comparison to the
previous year at 0.143.
Share Price Movement
The share price of the TPG and all ordinaries are calculated and the same are presented in the
format of the graph. From the graph below it can be stated that the movement in the graph of
the company is more volatile in comparison to the market value of the company and hence
the company’s price fluctuates irrespective of the market price and therefore it is
recommended to the investors to invest cautiously (Yahoo Finance, 2018). The company is
more volatile in comparison to the all ordinaries Index and at the same time it is not closely
related and is mostly above the index as it can be reflected from the graph below.

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1/1/2017
3/1/2017
5/1/2017
7/1/2017
9/1/2017
11/1/2017
1/1/2018
3/1/2018
5/1/2018
7/1/2018
9/1/2018
11/1/2018
-0.20
-0.10
0.00
0.10
0.20
0.30
0.40
0.50
0.60
TPG Telecom
Average return
All Ordinaries Index
Months
Average return
The calculated value of the Beta is 0.43 as it can be seen on the website of the reuters and the
required rate of return is the rate which the shareholders are expected to receive on the
investments made. From the calculations below the required rate of return is 6.43%.
Risk free rate of return 6%
beta 0.43
Expected rate of return 7%
Required rate of return 6.43%
Capital Structure
Capital structure TPG Telecom
2016 2017 2018
WEIGHTS WEIGHTS WEIGHTS
DEBT 1991 65% 1511 51% 2606 64%
EQUITY 1051 35% 1449 49% 1465 36%
3042 100% 2960 100% 4071 100%
The capital structure of the company indicates that in the year 2016 the debt was 1991 which
reduced to 1511 in the next year and again the company involved in the financing through
debt and hence the debt was 64% of the total value. On the other hand the equity of the
company is have increased from 35% in the year 2016 to 49% in the year 2017 and again it
reduced to 36% (Investsmart, 2018). Therefore form the above analysis it can be indicated
that the equity have always been low in proportion and the debt have been the first choice of

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the company to finance the assets of the company. Hence the company is following the stable
strategy.
Conclusion
The above report has provided a detailed analysis of TPG Telecom, which offers different
services in the market such as IT services and Telecommunication services. The company is
the Australian second largest provider of internet service and virtual network operator. The
report has evaluated different aspects of the company in order to identify its strength in the
market and the reasons behind its long-term survival. The report is comprised of a detailed
analysis of a company's profit and loss statement, cash flow, and balance sheet. All the three
financial statements have provided vital information regarding the company and its
performance in the market. From the above analysis, it could be imitated that TPG Telecom
is one of the strongest players in the telecommunication industry, which is allowing it to earn
increase revenue and growth in the industry. The company possesses strong liquidity position
that helps it in investing in different undertaken projects. Moreover, the total assets of the
company are increasing in comparison to its liabilities, which is a sign that company can
easily pay off its liabilities and survive for the longer time duration in the market. The
company possesses different opportunities for growth, which offers a huge chance for
investors to invest in the company to earn more profit and dividends. If investors will invest
in this company, they will earn huge profits and it will be beneficial for their image too.

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References
Borowski, A. (2010) Financial Management: The role and importance of capital markets and
EMH 1st ed. Germany: GRIN Verlag.
Burton (2010) Intro to Financial Markets and Institutions 2nd ed. U.S: M.E. Sharpe.
Campbell, J.Y., Lo, A.W., and MacKinlay, A.C. (2012) The Econometrics of Financial
Markets 2nd ed. U.S: Princeton University Press.
Goyal, A., and Goyal, M. (2014) Financial Market Operations: for B.Com-III Semester-V
and VI 1st ed. India: VK Global Publications.
Investing (2019) TPG Telecom Ltd (TPM) [online]. Available from
https://www.investing.com/equities/tpg-telecom-ltd-ratios [accessed 19 January 2019]
Investsmart (2018) TPM Per Share [online]. Available from
https://www.investsmart.com.au/shares/asx-tpm/tpg-telecom-limited/financials [accessed 19
January 2019]
Levinson, M. (2018) Guide to Financial Markets: Why they exist and how they work 7th ed.
U.S: PublicAffairs.
Madura, J. (2016) Financial Markets and Institutions 12th ed. U.S: Cengage Learning.
Maul, P. (2011) Investing in Commodities: A comparison of Commodity-ETFs with other
financial products and its particularities for private investors in Germany 2nd ed. U.S:
diplom.de.

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Morning Star (2018) TPG Telecom Ltd [online]. Available from
http://financials.morningstar.com/balance-sheet/bs.html?t=TPM&region=aus&culture=en-US
[accessed 24 December 2018]
Talmor, E., and Vasvari, F. (2011) International Private Equity 1st ed. U.S: John Wiley &
Sons.
TPG (2010) Securities Trading Policy [online]. Available from
https://www.tpg.com.au/about/pdfs/SecuritiesTradingPolicyRevisedAug10FINAL.pdf
[accessed 24 December 2018]
TPG (2018a) Platforms: Tpg Growth [online]. Available from
https://www.tpg.com/platforms/tpggrowth [accessed 24 December 2018]
TPG (2018b) About TPG [online]. Available from
https://sites.google.com/site/tpgarizona/about-tpg [accessed 24 December 2018]
TPG (2018c) About us [online]. Available from https://www.tpg.com.au/about/profile.php
[accessed 24 December 2018]
TPG Telecom Ltd (2017b) Annual Report [online]. Available from
https://www.tpg.com.au/about/pdfs/FY17%20Annual%20Report.pdf [accessed 24 December
2018]
TPG Telecom Ltd (2018a) Annual Report [online]. Available from
https://www.tpg.com.au/about/pdfs/TPM%20Group%20-%20Statutory%20Accounts%20-
%20FY18v16%20-%20Secure.pdf [accessed 24 December 2018]
Tracy, A. (2012) Ratio Analysis Fundamentals: How 17 Financial Ratios Can Allow You to
Analyse Any Business on the Planet 1st ed. U.S: RatioAnalysis.net.

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Tracy, T.C., and Tracy, J.A. (2011) Small Business Financial Management Kit For Dummies
2nd ed. U.S: John Wiley & Sons.
Valdez, S., and Molyneux, P. (2010) An Introduction to Global Financial Markets 6th ed.
Germany: Macmillan International Higher Education.
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https://finance.yahoo.com/quote/TPM.AX/balance-sheet?p=TPM.AX [accessed 19 January
2019]

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Appendix
Appendix 1
Income Statement
2017 2018
Revenue
Corporate 743 753.8
Consumer 1747.7 1741.4
Total 2490.7 2495.2
Teleco Costs
Corporate -287.4 -280
Consumer -916.4 -949.4
Total -1203.8 -1229.4
Employment Costs
Corporate -108.8 -108.2
Consumer -147.8 -133.9
Unallocated -0.1 -0.3
Total -256.7 -242.4
Other Expenses
Corporate -34 -35.5
Consumer -153.1 -145
Unallocated -1.1 -1.8
Total -188.2 -182.3
EBITDA 890.8 841.1
Amortisation -103.3 -104.1
Depreciation -141.1 -138.8
Operating profit 646.4 598.2
Net Financing Cost -50.9 -34.4
Profit Before Tax 595.9 563.8
Income Tax -179.8 -165.8
Earnings per share (cents) 47.9 42.8
Appendix 2
Cash flow

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Free Cash Flow (amount in $m)
2017 2018
Operating cash flow 869.7 868.3
Tax -147 -194.5
IRU Payments -27 -34.1
Capex-mobile networks (Aus) -1.9 -38.7
Capex- BAU -362.5 -258
Capex- Mobile Networks (Sg) -4.4 -62.3
Capex-mobile networks (Aus) -83.1 -597.3
Capex- Mobile Networks (Sg) -124.4 -
Cashflow 119.4 -316.6
Non-Operating cash Flow (amount in
$m)
2017 2018
Free Cashflow 119.4 -316.6
Debt Drawdown -450 430.8
Interest Payments -40.7 -44.6
Debt Facility Fees -3.4 -10.8
Dividends -131.5 -23
Net Capital raise proceeds 396.3 -
Investment Sale Proceed 124.5 -
Other -7.5 0.1
Cash Increase 7.1 35.9
Appendix 3
Balance Sheet
2014-07 2015-07 2016-07
2017-
07
2018-
07
Assets
Current assets
Cash
Cash and cash equivalents 24 24 39 46 82
Short-term investments 99 152 139
Total cash 123 175 178 46 82
Receivables 86 62 146 143 129
Inventories 3 6 12 6 5
Deferred income taxes 4
Prepaid expenses 10 9 14 26 15
Other current assets -1 2 4 -10 1
Total current assets 221 254 359 211 232
Non-current assets

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Property, plant and equipment
Gross property, plant and equipment 554 1032 1471 1773 2105
Accumulated Depreciation -440 -576 -717 -856
Net property, plant and equipment 554 593 895 1056 1249
Equity and other investments 7 116 16 3 2
Goodwill 549 546 1911 1911 1911
Intangible assets 163 140 574 722 1989
Other long-term assets 14 6 16 9 7
Total non-current assets 1288 1400 3412 3700 5158
Total assets 1509 1654 3771 3911 5390
Liabilities and stockholders' equity
Liabilities
Current liabilities
Capital leases 0 0 27 32 6
Accounts payable 63 76 212 186 206
Deferred income taxes 17 12 54 23
Deferred revenues 79 63 142 150 148
Other current liabilities 99 107 132 145 503
Total current liabilities 258 258 514 568 885
Non-current liabilities
Long Term Debts 347 328 1316 872 1301
Capital leases 0 35 12
Deferred taxes liabilities 18 17 63 10 12
Deferred revenues 29 24 26 24 26
Pensions and other benefits 2 2 2 2 2
Minority interest 5 5 4
Other long-term liabilities 23 21 36 35 367
Total non-current liabilities 419 392 1483 949 1725
Total liabilities 677 651 1997 1516 2610
Stockholders' equity
Common stock 517 517 1052 1449 1465
Other Equity 0 -3 -6 -7 -4
Retained earnings 267 410 681 963 1323
Accumulated other comprehensive
income 48 80 47 -11 -4
Total stockholders' equity 832 1003 1774 2395 2780
Total liabilities and stockholders' equity 1509 1654 3771 3911 5390