Slide 1: Full Year 2005 Results - Analyst Briefing
11 August 2005 Company Announcements Office Australian Stock Exchange 4" Floor, 20 Bridge Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam Full Year 2005 Results — Analyst briefing Office of the Company Secretary Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA Telephone 63 9
Slide 2: Telstra
Ceistra (eistra
Slide 3: FY05 Financial Highlights
FY05 Financial Highlights || telstra Revenue Drivers Cost Performance Capital Management Solid full year r and on Reported Results felstra f(b ‘Sales Revenue EBIT PAL Hae EPS (cents) . 2 \y _ Ordinary DPS (cents Free Cash Flow : Growth inEPS& DPS 7
Slide 4: Underlying Results - Half Year Trends
Underlying Results - Half Year Trends | Cotstra “Domestic Sales Revenue i 2 Operdting Expenses ea EPS (cent Stower 2H operational performance Gelstra Underlying Sales Drivers Movement Drivers of rn Strong Growth in Mobiles, Internet &1P offsetting PSTN voice ¢
Slide 5: Broadband
Broadband j Seistra AHOs FY 0a” 1H O46 half-price broadband access@ poe Gelstra Strong mobiles performance
Slide 6: Sensis and PSTN Products
DCE GRR grow Commercial Search is the future for Sensis PSTN Products _ Telstra st (S20) lee CG (8227) (gsseny & Gm} St 704Kh weer & iy FYDk Bork Aecal $8 Access Calls: Significant shift in call usage patterns
Slide 7: Underlying Operating Expenses
Underlying Operating Expenses $11,074m Accopnted lowees $3,82im: $3,779m: Cost growth driven by customer demand and corr Cost Containment & Cost Drivers Curnulative cost reduction — Sur $800rm Savings target a Savings achieved » $800m cost reduction on target, » Increased Braadband connector 4 Unit
Slide 8: Improving Customer Satisfaction
Improving Customer Satisiaction Retail Business -Collsanewered aah Calls ariswered in 20 206 14S) 50%: ane ‘mot Calle = 15 wins (RHS) Se ee oO ee Ot St Side Ceo oe o% business & Goverment Customer zaticfaction rating (0-1 Improved customer service is our top cormrnercial pri Underlying Depreciation
Slide 9: Capital Expenditure
Capital Expenditure Sroadbanddemond 4111) : eo iid Cone Oeenes SLAC, BY 04 i FY06 Domestic guidance around $4b Key International Operations KEM ‘Stindolone basis. PY05 oA $4,308 11% $1236 » Pricing pressure remains intense * High 3G subscriber acquisition costs Hong Kong's teadi ybile operator lt Ge
Slide 10: Effective Capital Management
Effective Capital Management ® Ordinary FA: Special: 4H02°2H02 103 2H OS 1H 04: ZH 04 2H 05: : # Final ordinary dividend $1,7 214 cps fully franked 48% « Special Dividend $750m, 26 cps fully franke _ Paid with fingl $2.56 1HO6 shareholder returns Target Financial Parameters A Payout Ratio. (Ordinary
Slide 11: FY Outlook - business as usual
FY 06 Outlook — business as usual __. | Wlstra Outlook te be updated following strategic review SA NNEC