Telstra Group Limited · ASX:TLS
Telstra — Non-Deal Roadshow (March 2005)
17 slides from Telstra's roadshow presentation, Mar 7, 2005
Slide 1: 2005 International Investor Roadshow presentation
7 March 2005 The Manager Company Announcements Office Australian Stock Exchange 4" Floor, 20 Bridge Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam 2005 International Investor Roadshow presentation Office of the Company Secretary Level 44 242 Exhibition Street MELBOURNE VIC 3000 AUSTRA
Slide 2: Highlights of 1H 2004/05
“elstra Telstra Corporation 2005 Inter Highlights of 1H 2004/05 Telstra’s fundamentals are strong
Slide 3: Delivering on improved business performance
Reported Results Growth in EPS & DPS Underlying Results (inc! 3 Delivering on improved business performance ‘elstra
Slide 4: Our Strategy
Our Strategy “elstra = Broadband Wireless iP: Network ) Advertising Execution will deliver shareholder returns Improving Customer Satisfaction Grade of service —¢ - Broaaband —& HII ete erent Cer 8.0% Mapas: Beppe Maid Sepiss hag
Slide 5: PSTN Voice Products and Broadband
PSTN Voice Products $4-100:) 7s: SGA GAT [| ating $4006 : d [__ $3:906 $3,606 $2,200 $3,600 $3500. 8 — AE OH Basic leet: Keceus Colle Optimising cash flow from fixed network Broadband Lift Off THEO: EY:0% AH 4 FEY a Continued strong growth in ‘elstra 4 Pricing changes HTT BATA $309re SLBZr0.
Slide 6: Mobiles and Sensis
Mabiles — continuing to deliver telstra Including Terminating Revenue $2743: $4 760m SLBgem HA Solid performance in increasingly competitive market Sensis - consistent growth story $80grna Growth i online Be = Higher aH due t 4 Traditig Posten Sensis - delivering on strategy
Slide 7: Underlying Sales Drivers and Operating Expenses
Underlying Sales Drivers Strong Growth in Mobiles, internet & IP as PS Underlying Operating Expenses Rqulty: Accavnted losses Cost growth is dernand driven elstra
Slide 8: Revenue and Margin Performance
‘elstra Revenue and Margin Performance ing Sale aNue & BDO: nese SEO: aad THOS AOR HOF 2H 02 TH Oe SH Oe TH78S Maintaining margins as revenue growth improves Capital Expenditure & Depreciation THOS Totaba satin TH'O4 Torels si 322m: ASB te} L] Meat Girent Demand WB New Revenue Granth Iheleing at ¢ Z
Slide 9: Effective Capital Management
Effective Capital Management Ordinary i} ‘Speciiit increasing cash returns for shareholders Target Financial Parameters a ‘ Atraniger Fa get Zone ateater thar tlmes Target parameters provide flexibility fo: ‘elstra il ae
Slide 10: Regulatory Issues and Outlook
Regulatory Issues Corrent Price Caps Review Mobile Termination Pricing » Final decision on ULL/LS5 Undertakings USO Costing Regulatory issues being proactively m Outlook Company financial focus: profitable revenue, margin & cash flow ‘elstra
Slide 11: Economic Outlook
etstra Economic Outlook «Key drivers of forecast gro’ © consumer spends + oversuppiy in aor FY9S-EY DO: ENOL EN D2 EVOS -ENDG ENG? EM g Ht Real GOP. Consumerspend Business'capex: CPI GDP growth profile around tong term average
Slide 12: Telstra — A Strong Performer
Telstra — A strong Performer Telstra » Telstra has an impressive dividend yleid, ROIC, EBITDA » 13th largest telco globally by market capitalisation « Strong Free Cash Flows « Fully integrated model AS at 23 Fabrian) 2008 « Robust balance sheet » Rigorous CAPEX management Attractive yield and strong
Slide 13: Telstra's Market Share Remains Strong
Telstra’s Market Share Remains Strong Telstra Domestic L0 Full Service Model is a competitive advantage Integrated Consumer Communications Vision Narrowband, Broadband Home N gateway, firewall, wireless LAN Building stronger Customer relatio
Slide 14: Business & Government Segment
Business & Government Segment — Evolving from Carriage to Services Carriage Carriage, solutions Business. & Services Business Carriage ond: Malor Drivers Carsiage and Soluitioris 93%: orChange Solutions 80% Cistomer demara, continuing IF migration further price erosion in carridge indeciiline erties
Slide 15: Volume Migration Impact and Wireless Capability
Volume Migration Impact “elstra Bore (S66rn) a (Oa 3rny Wireless Capability 256 © dc National rollout complete rmode & Push To alk n 3G-GSM JM Established - national metro coverage E-Metwork extension Undemwoy © Services to be offered 1H 05/06. 3G COMA DO: capital city and selected te Seamless hando
Slide 16: 3G Network Share — How it Works
3G:Network Share — How it Works “elstra om eee i j Setstra Billing hh TT A Sensis — a clear strategy for growth h search and i! / channet rs at i Futore j Integrate, ¢ Commercial Search : is the future for Sensis Hh i nh
Slide 17: Key International Operations
Key International Operations “elstra Telstractear 9 Y $2014 $2,173 $562 $624 $282 $208 mI » Successfullaunch of 3G in December 04 = Pricing pressure remains intense Hong Kong’s Resale agreement allows leading mobite operator nationwide residential offering cea” ’ Adjusting operating modei to meet sh