Telstra Group Limited · ASX:TLS
Telstra — Investor Day (May 2025)
33 slides from Telstra's investor day presentation, May 27, 2025
Slide 1: Connected Future 30 Strategy - Investor Presentation (ASX lodgement)
27 May 2025 Market Announcements Office Office of the Company Secretary Australian Securities Exchange Level 41, 242 Exhibition Street MELBOURNE VIC 3000 4th Floor, 20 Bridge Street AUSTRALIA SYDNEY NSW 2000 ELECTRONIC LODGEMENT − Telstra Group Limited (ACN 650 620 303) – ASX: TLS Connected Future 3
Slide 2: Disclaimer
1 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 f
Slide 3: n
n 3 4 2
Slide 4: Today's agenda
Today's agenda 5 Demand continues to grow and become more complex ,, Customer needs are Demand will only The competitive changing increase environment is changing The connectivity we provide New devices, use cases, and Many players see the needs to become more greater digital activity will drive opp
Slide 5: Connected Future 30: our ambition and key targets
Connectea l r \ Future rt../ Our ambition is to be the number one choice for connectivity in Australia Our three layers and goals Our four enablers J Customer Engagement .I To lead in how we anticipate and deliver on the ,., connect1v1ty needs of our customers Copyright Telstra© Page7 7 Consumer ▪ P
Slide 6: Network leadership
Network leadership ▪ Sustain our best network and maintain our mobile coverage lead by investing to improve capacity and efficiency ▪ Lead in new tech like satellite-to-mobile and 6G , while maintaining a focus on security and resilience ▪ Create an autonomous network that runs, heals and ultimately
Slide 7: Our enablers help deliver our strategy
Our enablers help deliver our strategy 11 Our value creation is underpinned by levers of growth and cash generation Growth in core I business cashflow ▪ Growth in mobile and digital infrastructure ▪ Operating leverage with cost and BAU capex efficiency ▪ Supports growth in balance sheet capacity Por
Slide 8: Our key targets
Our key targets Customer Engagement al) Grow strategic NPS by T more than 50% by FY301 * Top 10 strongest brand in Australia ~ Digital Infrastructure J) sustained cash EBIT growth re)' Mid-teens IRR on strategic .Q= ~J investments and partnerships Our financial goals: Growing shareholder value ■I t
Slide 9: Connected Future 30 Video
Connected Future 30 Video Video introducing Connected Future 30 strategy Copyright Telstra© Page15 15 16 8
Slide 10: Customer Q&A
Connectea l r \ Future rt../ Customer Q&A Brad Whitcomb Amanda Hutton Oliver Camplin-Warner 17 Consumer Creating customer value ~ I' ~. Brand Safe strength place ♦ ~ Al Premium Differentiated fuelled retailer connectivity Copyright Telstra © Page18 18 9
Slide 11: Business and Enterprise: creating customer value
Business Creating customer value solutions ~· Connectivity Lasting • relationships Digitising our business Optimise costs • Growth mindset • A\ Copyright Telstra© Page19 19 Enterprise Creating customer value Network ~ Customer. experience leadership uplift ♦• Industry =ii ♦ value Goto market proposi
Slide 12: Part A
21 A PART 1 with Shailin with Kim 4 \ 22 11
Slide 13: Continuing our network leadership
We are continuing our leadership through Al and cloud drives the next evolution of technology and network differentiation evolutionary new tech Our physical assets are core to providing Telstra Autonomous Uses Al to simplify the network interaction with self-configuring, self- connectivity across Ne
Slide 14: As we lead with new technologies
As we lead with new technologies security and resilience remains key to maintaining trust Copyright Telstra© Page25 25 today Static and manual Dynamic, intent-based Customer optimisation based on optimisation to meet real experience average customer needs time customer needs Predictive monitoring an
Slide 15: Network as a Product
27 Network as a Product allows us to reinvent our business model ▪ ▪ ▪ 28 14
Slide 16: Potential business models
Potential business models with sophisticated network attributes Scalable business models models -~ Pay-as-you-go Based directly -- tiered • Subscription/ Based on predefined Live adjustment Revenue sharing 0 Agreed % of revenue Emerging indirect on usage inclusions of pricing for API provider models
Slide 17: Global businesses, enterprise and developers use these APIs
Global Businesses, Enterprise and developers use these APls to build into their applications 31 32 16
Slide 18: Diverse and growing customer base
Domestic assets Intercity Inter-exchange Customer access Towers and network network network rooftops @ 400,000km of cables l': 3 path diversity/ ~ 370,000km duct ~ data centres (DCs) 2 large and 5 sma ll (<y>) -160,000 poles for intra-Asia and .,,,. resiliency on all major length with 7.5m pits smal
Slide 19: Our plan for growth
Our plan for growth Australia's leading digital infrastructure provider = 71 ,. 1 / Targets 1 " 1 t11. ■• Sustained Cash 00 EBITgrowth '' Strategy& investment Maintain & expand our New and better ways to Modernise our areas core infrastructure make our assets footprint @ strategic Mid-teens IRR on l
Slide 20: Options to suit customer needs
Options to suit customer needs Equipment Optical increments1 Bandwidth 2 Products Telstra Managed Intercity Wavelength Service 100Gbps ▪ Fully managed 400Gbps ▪ Low-mid bandwidth 1/8 FP: - 3.8 Tbps Intercity Direct Spectrum Service ▪ Point t o point amplification with spectrum hand off 1/4 FP: -7.6
Slide 21: Amplitel: Australia's leading towers business
Amplitel Sl We've built Australia's leading towers business Signed long term The largest digital twin program in Australia and NZ with 90% of mobile sites digitised' agreements with all major MNOs •• ... i·· Improved land tenure and ongoing cost ■ii efficiencies Built 300 new sites (< with 400 under
Slide 22: Intercity Fibre Video
ICFVideo Video focused on the Sydney, Melbourne, Canberra routes Copyright Telstra© Page41 41 Connectea o Future 42 21
Slide 23: Our financial goals
Our financial goals 43 Disciplined allocation of capital helps enable shareholder value creation ▪ Growth in mobile and digital infrastructure 0 Growth in core . hl business cas f ow ▪ Operating leverage with cost and BAU capex efficiency ▪ Supports growth in balance sheet capacity ▪ Strategic capex
Slide 24: Strong mobile fundamentals
Strong mobile fundamentals Sustainable mobile growth C) ,__.- ~Jk:. ~v Growing demand for digital infrastructure Delivering high-quality long-term returns and growth Positive operating leverage Commercial excellence driving growth and returns BAU capex discipline to help drive financial momentum Cos
Slide 25: Growing demand for digital infrastructure
~ Growing demand for digital infrastructure __.. . ,. .~- drives infrastructure growth .. Demand drivers ■■ . :• ■ .. ·· · . - ' • "I I. - - I ■ ,- I I .. - •• I • Leading value proposition 1 Intercity Fibre+ Viasat key financial metrics3 ▪ Largest terrestrial intercity network in Australia ▪ -250,0
Slide 26: Effectively managing cost; AI will be transformative
We have a strong track record in effectively managing cost Cost efficiency will continue to come from liiii1 l!!!!.J Product Digitisation simplification • a Productivity Active portfolio annual core fixed cost improvements management reduction across T22 and T251 (1) Based on reduction in underlying
Slide 27: Portfolio discipline supports ROIC growth
Portfolio discipline supports ROIC growth Disciplined on risk-adjusted returns ▪ Pipeline of non-core asset divestments J ▪ Strong adherence to M&A criteria to drive value creation drives returns Disciplined on strategic investment Flexibility to invest or partner for growth ▪ Strategic growth inves
Slide 28: Growth and shareholder returns
Growing returns to shareholders ▪ Aim to continue delivering a sustainable and growing dividend ▪ Strong preference to continue to fully frank dividends ▪ Efficient distribution of franking credits ▪ May consider partially-franked dividends where franking constrained ▪ Where we have additional capit
Slide 29: FY25 guidance
FY25 guidance FY24 1H25 FY25 guidance1 Underlying EBITDA2 $8.2b $4.2b $8.Sb to $8.7b Business-as-usual capex 3 $3.4b $1.6b $3.2b to $3.4b Strategic investment 5 $0.3b $0.1b $0.3b to $0.Sb Free cashflow after lease paiments (FCFaL) 4 $3.2b $1.1b $3.0b to $3.4b before strategic investment 1. This guid
Slide 30: Q&A
Connectea l r \ Future rt../ n Q&A 57 58 29
Slide 31: Cash earnings
Committed to balance sheet settings consistent with an A band credit rating Disciplined BAU capex to support core business growth Sustainable and growing dividend (prefer fully-franked) Disciplined portfolio management and strategic investment Use balance sheet capacity for additional shareholder re
Slide 32: Operating leverage and investment criteria
Operating leverage . %Change Operating leverage FY23 1H24 2H24 FY24 1H25 vs PCP Underlying income1 $23,173m $11,705m $11,696m $23,401m $11,823m Underlying operating expenses1 $15,196m $7,674m $7,468m $15,142m $7,561m Lease amortisation $574m $303m $316m $619m $282m BAU capex' $3,297m $1,795m $1,610m
Slide 33: Glossary
Glossary Term Oefrmt1on Key targets - non-f1nanc1al Al maturity Refers t o external Al maturity measure against global enterprises "enabled by NaaP" Refers to con nectivity products that monetise a sophist icated network feature Network Experience Index Refers t o an internal composite metric based