Telstra Group Limited · ASX:TLS
Telstra — Macquarie Equities Investor Conference 2003
16 slides from Telstra's conference presentation, Nov 19, 2003
Slide 1: Dr Switkowski's presentation to Macquarie Equities Investor Conference 2003
19 November 2003 The Manager Company Announcements Office Australian Stock Exchange 10th Floor, 20 Bond Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam Office of the Company Secretary Level 44 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA Telephone 03 8634 6400 Facsimile 03 9632 3
Slide 2: igen - sida
er. igen - 5 sida encnion sp i
Slide 3: Disclaimer
Disclaimer This presentation includes certain forward-looking statements that are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, those forward-looking statements. Such forward-looking st
Slide 4: Telstra — Already a Strong Performer
Telstra — Already a Strong Performer * Telstra has a strong ROIC, EBITDA margins and Dividend Yield * 13th largest telco globally by market capitalisation + Growing PSTN revenues (unlike many of our peers) * Effective wholesale model * Robust balance sheet * Strong free cashflows » Rigorous CAPEX ma
Slide 5: Telecommunications is a GDP plus Industry
% Growth Telecommunications is a GDP plus Industry GDP & Communications Services Consumer Spending on Communications 20% 15% Communication 3.0% Services Share of disposable income m% 2.5% GST-related spike 5% 2.0% 0% ve 1.5% 5% 95-96 97-98 99-00 01-02 03-04f 05-06F Mar.1991 Mar.1994 Mar.1997 Mar.200
Slide 6: Telstra's Market Share Remains Strong
Telstra’s Market Share Remains Strong 1 Local Domestic LD International LD Mobile Basic Access 16% 14% Se ©-. @-: @-: wd- Data Subscription TV _ Directories Narrowband Broadband 27% “Co @- @-: @- 50% Internet & IP (1.} Market Shares as at June 30 2003 37% ia = Telstra share Other Resold
Slide 7: Market Share Trends
Market Share Trends Market Share Telstra Market Shares! Millions 16 90% 14 Mobile SiQs « Industry 80% 12 Data & Internet 40 70% Access Lines - Telstra 8 60% 6 — 50% Mobiles 4 Mobile SI0s - Telstra _——~ 40% 2 0 30% 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 (1) Market share by revenue for Data
Slide 8: Strong Growth in Consumer Packages
Strong Growth in Consumer Packages Single Bil Millions w 1 Consumer Packages* Jul-03 4 Nov-01 4 Jan-02 + Nov '02 4 Jan ‘03 - Sep-03 - * Consumers on Telstra packages continue to grow, with nearly 1.5m consumers multi product packages. includes Rewards (5% and 10%), Relationships (25% and 50%), Famil
Slide 9: VAS Has Grown Call Completion
VAS Has Grown Call Completion * Aiming to drive call completion towards 80%. Mitigates declining local call volumes Local, STD, M2F Calli Completion 80% 78% oa 76% | aa ee ~+ Loca STD is) We io» M2F 72% 70% T T T T T T T Jan- Feb- Mar- Apr- May- Jun- Jub Aug- 03 03 03) «6003)« «(038 S038 038s OB
Slide 10: Wireline revenue growth continues
Wireline revenue growth continues Q-West 8.7% SBC 10.1% Bell Canada 1.6% BellSouth "2.0% Telstra 21% -12% -10% 8% 6% 4% -2% 0% 2% m Revenue @ Access Lines *Untimed local calls sLarger local call zones *High market share in mobile mitigates substitution 4%
Slide 11: Cost Reductions On Track
Cost Reductions On Track $10,760* Networ Six Sigma Reliabi mercial Initiatives Technology Other Customer Retention Operating expenses 2003 Operating expenses 2004 Operating Cost Reductions 01/02: $345m Operating Cost Pressures 01/02: $151m Operating Cost Reductions 02/03: $574m Operating Cost Pressu
Slide 12: Key Regulatory Settings in Place
Key Regulatory Settings in Place Significant regulatory settings now in place: * Regulated prices for core wholesale services * Safe harbour for Foxtel digital investment * IP1 investment approved by regulator * NZ regulatory settings improving Significant upcoming issues: + First accounting separat
Slide 13: New Mobile Technologies — Telstra has Options
New Mobile Technologies — Telstra has Options higner quailty ang reiladiilly tO Sit A USAge olving mobile technology
Slide 14: VoIP — Opportunity or Threat?
VoIP — Opportunity or Threat? Voice network Tie line Megalink Managed Services IP Applications IP telephony IP collaboration Unified messaging Voice network
Slide 15: Avenues for Profitable Growth
Avenues for Profitable Growth
Slide 16: Key Messages
Key Messages sh flow and shareholder returns
Telstra — Macquarie Equities Investor Conference 2003 on 6ix