Slide 1: Half year 2025 results
¢ Half year 2025 results
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation includes forward-looking statements. The forward-looking statements are based on assumptions and information known by Telstra as at the date of this presentation, are provided as a general guide only and are not guarantees or predictions of fut
Slide 3: Half year 2025 results – Vicki Brady, CEO
Half year 2025 results Vicki Brady – Chief Executive Officer
Slide 4: Telecommunications has a critical role to play in Australia's future
New graphic on Monday from Brent Smart TBC Telecommunications has a critical role to play in Australia’s future Unlocking the potential of AI Accelerating our AI to drive productivity and leadership growth • To deliver on the connectivity • Artificial Intelligence (AI) needs to demands of the future
Slide 5: Half year 2025 results
Half year 2025 results 1H25 EBITDA 1H25 NPAT 1H25 EPS 1H25 ROIC $4.2b +6.0% $1.1b +7.1% 8.9cps +6.0% 8.0% +0.2pp On-market share Episode NPS T25 strategy Interim dividend buy-back Improved 3 points On track 9.5cps +5.6% Up to $750m last 12 months fully franked Page 5 Copyright Telstra© Half year 202
Slide 6: Underlying EBITDA growth and cost-out
Half year 2025 results Underlying EBITDA1,2 6% CAGR 1H21 to 1H25 Underlying EBITDA1,2 Cost-out growth on PCP $4.2b • 1H25 core fixed costs reduced by • Mobile: $92m or 3.7% $161m or 4.8% on PCP $4.0b $3.9b • InfraCo Fixed: $58m or 7.0% • $283m core fixed cost reduction • Fixed-C&SB: $78m or 74% achi
Slide 7: Investing in connectivity
TBC Investing in connectivity • Invested more than $40b in capex and spectrum over the last decade • Australia’s biggest investor in digital infrastructure. Intercity fibre network: – Seven routes under construction connecting major capital cities and more than 3,000 km fibre in the ground (as at Fe
Slide 8: Supporting customers
New graphic on Monday from Brent Smart TBC Supporting customers • Episode NPS – Improved 3 points last 12 months – Improved 1 point last 6 months • On track to help 1m customers in vulnerable circumstances stay connected by the end of FY25 • Safeguarding our customers – Expanded Scam Indicator to la
Slide 9: Supporting Australians
New graphic on Monday from Brent Smart TBC Supporting Australians • Returned >$1b to shareholders in dividends in the last six months benefiting >16m Australians • Announced up to $750 million on-market share buy-back • Disaster preparedness – Committed to upgrade >1k payphones in disaster prone are
Slide 10: Outlook
New graphic on Monday from Brent Smart TBC Outlook Finishing T25 strongly Looking beyond • Lifting customer experience • Our digital infrastructure and • Delivering financial growth and value network will be increasingly from our world-leading mobile network important to Australia’s future and infra
Slide 11: Half year 2025 results – Michael Ackland, CFO
Half year 2025 results Michael Ackland – Chief Financial Officer
Slide 12: Income statement
Income statement Continued profitable growth in line with strategy 1H24 1H25 Change Total income1 $11.7b $11.8b 0.9% • Earnings growth across key products and strong cost discipline, partly offset by higher D&A Operating expenses $7.7b $7.6b -1.8% • D&A higher with spectrum acquisitions in recent pe
Slide 13: EBITDA by product
EBITDA by product Earnings growth across almost all products 1H24 1H25 Change Change $m Mobile $2,510m $2,602m 3.7% 92 • Underlying EBITDA2 growth of $232m or 5.8% Fixed-C&SB $105m $183m 74.3% 78 • Mobile growth from more users and ARPU growth Fixed-Enterprise $71m $96m 35.2% 25 • Fixed-C&SB growth
Slide 14: Mobile
Mobile Ongoing growth supported by demand, network leadership and market leading brands $5.6b $2.6b Mobile service revenue $m Mobile handheld users1 k (retail and wholesale) 1H25 Income 5% 1H25 EBITDA 4% • Mobile service revenue 3.1% growth supported by +3.1% on PCP +2.5% on PCP handheld user pric
Slide 15: Fixed – C&SB
Fixed – C&SB Track record of earnings growth with strong ARPU growth and continued cost discipline $2.2b $183m Bundles & data retail ARPU $/mth Bundles & data net adds SIOs k 1H25 Income ▼2% 1H25 EBITDA 74% +6.0% on PCP • EBITDA growth from price rises and margin expansion as well as fixed wireless
Slide 16: Fixed – Enterprise
Fixed – Enterprise Cost reduction offsets continued decline in connectivity and calling $1.7b $96m Fixed-Enterprise income1 $m NAS income1 $m 1H25 Income1 1% 1H25 EBITDA 35% 1,713 1,743 1,690 • Fixed-Enterprise income1 decline with DAC and 380 368 348 DAC 1,375 1,333 1,342 NAS1 including calling h
Slide 17: International
International Growth in Wholesale & Enterprise; headwinds in Digicel Pacific offset by release of earn-out provision A$1.3b A$373m Wholesale & Enterprise DAC/NAS income - A$m Digicel Pacific Total Subscribers – m 1H25 Income 5% 1H25 EBITDA 8% -0.6% on PCP +2% on PCP +1% in constant currency Whol
Slide 18: Infrastructure
Infrastructure Growth from ongoing demand for digital infrastructure and contractual nbn indexation InfraCo Fixed: InfraCo Fixed income nbn revenue $m $m • 3.8% income growth with higher core access +3.8% on PCP +6.2% on PCP revenue Commercial 1,326 1,420 1,376 works and 547 • 8.3% core access EBITD
Slide 19: Key strategic investments – intercity fibre and Viasat
Key strategic investments – intercity fibre and Viasat Key financial metrics $1.6b Total capex FY23 - FY27 $560m FY23/FY24, $300m - $500m FY25 Remainder FY26/FY27 $ Mid-teens % Expected IRR ~9 year Cash payback First routes $ Ready For Service in CY25 Page 19 Copyright Telstra© Half year 2025 result
Slide 20: Strong reduction of operating costs
Strong reduction of operating costs Operating expenses 1H24 1H25 Change Change $m • Total operating expenses declined with nbn payments $1,012m $989m -2.3% -23 productivity more than offsetting inflation, growth in acquired business and FX losses Non-nbn sales costs $2,935m $2,960m 0.9% 25 • nbn pay
Slide 21: Free cashflow growth
Free cashflow growth Free cashflow4 1H24 1H25 Change-500 Change $m 500 • FCFaL3 before strategic investment3 growth Underlying EBITDA $4,016m $4,248m 5.8% 232 from higher Underlying EBITDA and lower tax; FY25 guidance of $3.0b to $3.4b reaffirmed Working capital and other1 -$317m -$729m n/m -412 • W
Slide 22: Strong capital position and liquidity
Strong capital position and liquidity Capital position 1H24 FY24 1H25 • Net debt increased ~$0.5b since FY24 largely due to Net debt $15.1b $15.8b $16.3b normal seasonality of FCFaL Average cost of debt1 5.0% 5.0% 5.0% Average debt maturity (years)1 • Average cost of debt flat at 5.0% 3.6 3.8 4.3 Av
Slide 23: FY25 guidance
FY25 guidance FY24 1H25 FY25 guidance1 Underlying EBITDA2 $8.2b $4.2b $8.5b to $8.7b Business-as-usual capex3 $3.4b $1.6b $3.2b to $3.4b Strategic investment5 $0.3b $0.1b $0.3b to $0.5b Free cashflow after lease payments (FCFaL)4 $3.2b $1.1b $3.0b to $3.4b before strategic investment5 1.This guidanc
Slide 24: Thank you
Thank you For more information refer to: www.telstra.com.au/aboutus/investors
Slide 25: Appendix
¢ Appendix
Slide 26: Telstra at a glance
Size and >1m shareholders $46b market capitalisation Public ASX20 company scale1 FY24 $23b total income A-/A2 investment grade rating from S&P and Moody’s Telstra Network1 Australia’s largest mobile network – our mobile network covers more than double the area of Optus’s network and around three tim
Slide 27: T25 strategy
Our To build a connected future so everyone can thrive purpose and behaviours Look Beyond Work as One Make a Difference T25 An exceptional customer experience Leading network & technology solutions Sustained growth and value strategy you can count on that deliver your future for our shareholders Our
Slide 28: Sustainability
Creating a Our 5G footprint covers 91% of the Australian Expanded mobile coverage by 360,000 km2 better digital population – 95% ambition by end FY25 since FY21 to 3m km2 world1 Helped >900k customers in vulnerable Supported 509k Australians to grow their circumstances stay connected in 1H25 digital
Slide 29: Capital management framework
Fiscal discipline Maximise returns Maintain Retain Objectives for shareholders financial strength financial flexibility Capital 1. Committed to balance sheet settings consistent with an A band credit rating management Principles 2. Maximise fully-franked dividend and seek to grow over time1 framewor
Slide 30: Customer experience
Customer experience Driven by product simplification, onshore call centres, in-house stores and digitisation Increased digitisation Episode NPS at record highs Cyber security important to and complaints reduced us and our customers • C&SB: 60% services and 95% sales on new • Episode NPS • Extended S
Slide 31: Network and technology solutions
Network and technology solutions Driven by network expansion including 5G and digital infrastructure 5G population coverage 1H25 +4pp on 1H24 Investment in network Satellite and digital 91% leadership and resilience infrastructure • Mobile coverage expanded to 99.7% • Satellite Internet – Consumer h
Slide 32: Growth and value
Growth and value Driven by continued profitable growth in line with strategy Underlying EBITDA1 6% CAGR 1H21 to 1H25 Growth Cost discipline $4.2b • Underlying EBITDA1 5.8% growth on • 1H25 core fixed costs reduced by PCP: on track for mid-single digit $161m on PCP with productivity $4.0b $3.9b CAGR
Slide 33: The place you want to work
The place you want to work Driven by digital leadership and doing business responsibly New ways of working Digital leadership / AI Doing business responsibly • Employee engagement score of 78 – in top • AI leadership accelerated through our • Increased our absolute scope 1+2 emissions quartile globa
Slide 34: Our commitments and metrics
T25 scorecard Customer Network & Growth New ways Digital Responsible experience Technology and value of working leadership business Market leading CX with Network leadership; by FY25: Underlying EBITDA Remain at 90th percentile All key service transactions Enable renewable energy eNPS >40 by FY25 sN
Slide 35: T25 outcomes – progress
T25 outcomes – progress Strategic Strategic pillars pillars Commitments & metrics Commitments & metrics Progress Progress Market leading CX with • Episode NPS +47. Improved 3 points on 1H24 and 1 point on FY24 • eNPS >40 by FY25 • Strategic NPS uplift of 4 points FY21 to 1H25. Improved 1 point on An
Slide 36: T25 outcomes – progress (cont.)
T25 outcomes – progress (cont.) Strategic pillars Commitments & metrics Progress Strategic pillars Commitments & metrics Progress Network leadership; by FY25: • Australia's largest 5G network with 91.0% population coverage (FY24 • ~95% pop. coverage for 5G 89.3%, FY23 85.3%) Leading • >80% of traffi
Slide 37: T25 outcomes – progress (cont.)
T25 outcomes – progress (cont.) Strategic Strategic pillars pillars Commitments & metrics Commitments & metrics Progress Progress Underlying EBITDA • FY23 Underlying EBITDA1 $7.95b • $7.5-8.0b by FY23 • 1H25 Underlying EBITDA1 growth of 5.8% on PCP to $4,248m Sustained • Mid-single digit CAGR FY21 t
Slide 38: T25 outcomes – progress (cont.)
T25 outcomes – progress (cont.) Strategic pillars Commitments & metrics Progress • Remain at 90th percentile employee engagement (equivalent to high- • Employee engagement score 78. Performance equivalent to top performance norm) quartile of global companies but outside 90th percentile (equivalent t
Slide 39: T25 outcomes – progress (cont.)
T25 outcomes – progress (cont.) Strategic pillars Commitments & metrics Progress Strategic pillars Commitments & metrics Progress Reduce our absolute scope 1+2 emissions by 70% by 2030 (from FY19) • Absolute scope 1+2 emissions reduction target increased in June 2024 to 70% from 50% and split from a
Slide 40: Detailed financials
Detailed financials
Slide 41: Underlying earnings
Underlying earnings1, 2 Reported Guidance adjustments Underlying 1H24 2H24 FY24 1H25 1H24 2H24 FY24 1H25 1H24 2H24 FY24 1H25 Chg Total income $11,720m $11,762m $23,482m $11,823m -$15m -$66m -$81m - $11,705m $11,696m $23,401m $11,823m 1.0% Operating expenses $7,698m $8,240m $15,938m $7,561m -$24m -$7
Slide 42: Dividends
Dividends Change FY23 1H24 2H24 FY24 1H25 vs PCP Earnings per share Basic earnings per share (cents) 16.7 8.4 5.7 14.1 8.9 6.0% Underlying earnings1 per share (cents) 17.5 8.4 10.1 18.5 8.9 6.0% Free cashflow to equity2 per share (cents) 20.5 5.2 16.0 21.2 5.2 - Dividends (fully franked) Ordinary di
Slide 43: Capital management
Capital management Debt maturity profile1 Diversified sources of debt1 Average debt maturity 4.3 years Bank Loans $AUD US Bonds 12% 3.0 15% 1.0b Commercial 2.5 Paper 10% 88% 2.0 2.0b Debt Capital 1.1b Markets 1.5 New Bond issuance in FY25 12% 1.1b Bank Loans 1.0 1.0b 0.9b AUD Bonds 0.4b 0.8b 0.8b 0.
Slide 44: Supporting calculations
Supporting calculations $ Change % Change UEBITDAaL less BAU capex to equity FY23 1H24 2H24 FY24 1H25 vs PCP vs PCP Underlying EBITDA1 $7,950m $4,016m $4,227m $8,243m $4,248m $232m 5.8% Lease amortisation $574m $303m $316m $619m $282m -$21m -6.9% Underlying EBITDAaL1 $7,376m $3,713m $3,911m $7,624m
Slide 45: Supporting calculations (continued)
Supporting calculations (continued) % Change Underlying ROIC1 1H24 2H24 FY24 1H25 vs PCP Underlying NPAT1 $1,047m $1,259m $2,306m $1,115m 6.5% Add back: Interest paid (less tax shield at 30%) $222m $187m $409m $221m -0.5% Underlying NOPAT1 $1,269m $1,446m $2,715m $1,336m 5.3% Underlying NOPAT annual
Slide 46: Product framework | Income
Product framework | Income1 $ Change % Change FY23 1H24 2H24 FY24 1H25 vs PCP vs PCP Mobile $10,258m $5,325m $5,397m $10,722m $5,567m $242m 4.5% Fixed-C&SB $4,457m $2,211m $2,144m $4,355m $2,174m -$37m -1.7% Fixed-Enterprise2 $3,636m $1,713m $1,743m $3,456m $1,690m -$23m -1.3% Fixed-Active Wholesale
Slide 47: Product framework | Operating expenses
Product framework | Operating expenses $ Change % Change FY23 1H24 2H24 FY24 1H25 vs PCP vs PCP Mobile $5,656m $2,815m $2,881m $5,696m $2,965m $150m 5.3% Fixed-C&SB $4,322m $2,106m $1,995m $4,101m $1,991m -$115m -5.5% Fixed-Enterprise $3,225m $1,642m $1,678m $3,320m $1,594m -$48m -2.9% Fixed-Active
Slide 48: Product framework | EBITDA
Product framework | EBITDA $ Change % Change FY23 1H24 2H24 FY24 1H25 vs PCP vs PCP Mobile $4,602m $2,510m $2,516m $5,026m $2,602m $92m 3.7% Fixed-C&SB $135m $105m $149m $254m $183m $78m 74.3% Fixed-Enterprise $411m $71m $65m $136m $96m $25m 35.2% Fixed-Active Wholesale $117m $52m $42m $94m $46m -$6
Slide 49: Product performance | Mobile
Product performance | Mobile Change 1H24 2H24 FY24 1H25 vs PCP Mobile income $5,325m $5,397m $10,722m $5,567m 4.5% • Mobile services income growth driven by handheld price and volume across postpaid, prepaid and wholesale Mobile services1 $4,098m $4,126m $8,224m $4,225m 3.1% • Postpaid handheld reta
Slide 50: Product performance | Fixed – C&SB
Product performance | Fixed – C&SB Change 1H24 2H24 FY24 1H25 vs PCP Fixed - C&SB income1 $2,211m $2,144m $4,355m $2,174m -1.7% • Core connectivity income growth from higher Bundles & data ARPU and growth in 5G fixed wireless, partly offset Core connectivity $1,846m $1,817m $3,663m $1,871m 1.4% by d
Slide 51: Product performance | Fixed – Enterprise
Product performance | Fixed – Enterprise Change 1H24 2H24 FY24 1H25 vs PCP DAC income $380m $368m $748m $348m -8.4% • Data & connectivity (DAC) income decline continued with ARPU compression, renewals at lower rates and DAC EBITDA $54m $41m $95m $42m -22.2% technology change Margin 14% 11% 13% 12% -
Slide 52: Product performance | International
Product performance | International Change Change AUD 1H24 2H24 FY24 1H25 vs PCP vs PCP Constant currency Normalised 2 • Wholesale & Enterprise external income decline Wholesale & Enterprise income $949m $914m $1,863m $920m -3.1% with growth in DAC (+4.1% in constant currency) Internal income1 $114m
Slide 53: Product performance | InfraCo Fixed
Product performance | InfraCo Fixed 1H24 2H24 FY24 1H25 Change vs PCP • Income and EBITDAaL excluding CW and legacy asset sales InfraCo Fixed income $1,326m $1,420m $2,746m $1,376m 3.8% growth of +4.7% and +8.3% respectively. Growth in nbn, internal revenue and other external plus lower operating &
Slide 54: Product performance | Fixed – Active Wholesale
Product performance | Fixed – Active Wholesale Change 1H24 2H24 FY24 1H25 vs PCP Fixed-Active Wholesale income $188m $178m $366m $179m -4.8% • Fixed-Active Wholesale income decline largely due to legacy products Data & connectivity $130m $129m $259m $130m - • Data & connectivity income increased in
Slide 55: Product performance | Amplitel
Product performance | Amplitel Change 1H24 2H24 FY24 1H25 vs PCP Amplitel income $229m $224m $453m $235m 2.6% • Income 6.3% growth (excluding gains from customer contracts3) from additional site licences, contractual External $51m $45m $96m $51m - escalations, new tower builds, 5G upgrades requiring
Slide 56: Segment income
Segment income Underlying income1 1H24 2H24 1H25 Change vs PCP Mobile $3,533m $3,556m $3,718m 5.2% Fixed – C&SB $1,826m $1,789m $1,801m -1.4% Telstra Consumer Other $2m $16m $9m n/m Total $5,361m $5,361m $5,528m 3.1% Mobile $905m $890m $918m 1.4% Fixed – C&SB $385m $355m $373m -3.1% Telstra Business
Slide 57: Glossary
Glossary Term Definition (unless separately defined in the slides) Business-as-usual (BAU) capex is measured on an accrued basis and excludes spectrum, guidance adjustments, strategic investment, externally funded capex and capitalised BAU capex leases EBITDAaL Earnings Before Interest, Taxes, Depre
Slide 58: Guidance versus reported results
Guidance versus reported results This schedule details adjustments made to the reported results for the current and comparative periods to reflect the performance of the business on the basis on which we provided guidance to the market, which excludes material one-offs, such as mergers and acquisiti