Slide 1: ASX cover letter: Analyst Briefing half year results presentation pack
10/02/2005 Company Announcements Office Australian Stock Exchange 4" Floor, 20 Bridge Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam Office of the Company Secretary Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA Telephone 63 9634 6400 Facsimile 03 9632 3215 Re: Anatyst Br
Slide 2: Building Momentum: Highlights of 1H 2004/05
“elstra Lo | Chiet Exec) Ce OD 000 “Building Momentum” Highlights of 1H 2004/05 “elstra Telstra’s fundamentals are strong
Slide 3: Previous Guidance and Outcomes in 1H 04/05
Previous Guidance and Outcomes in 1H 04/05 | “e/stre Delivering on guidance Effective Capital Management velstra Increasing cash returns forshareholders ff
Slide 4: Broadband Lift Off
Broadband Lift Off “elstra S miontt 100 4H03: PY OR ANOe acs Continued strong growth in sector Improving Customer Satisfaction velstra Grade of service : _ Broadband - Jubb Aligtig | Sep-6 Dropout Rate- 206. 0%: Hiden Seka Mecor Sapa Mo, Improved customer service \ is our top commercial priority
Slide 5: Financial Highlights
Telstra Corporation Limited Chief Finan “Building Momentum 1H Financial Highlights Business Growth Cost Performance Capital Management Strong result and ongoing capital management “elstra Seistra
Slide 6: Reported Results
Reported Results Telstra EPS (cents) Ordinary OPS (cents). Growth in EPS & DPS Underlying Results || cists EBITDA Margin (%) | EBLE Margin Ge Domest ‘Operating Capex (iy Coa a Delivering on improved business performance
Slide 7: Underlying Sales Drivers
Underlying Sales Drivers Celstra Mavemerit ASM Strong Growth in Mobiles, Internet & IP as PSTN voice declines Revenue and Margin Performance |) elstra ue & Margin Maintaining margins as revenue growth improves
Slide 8: PSTN Voice Products
PSTN Voice Products 7 | Teste $4200 $4280. ‘$4,000::/ 8 [| $2,900. $3,860 tH 04 Basie fast BIDS es Access Fails. De, Optirnising cash flow from fixed network Volume Migration Impact __| velstra ‘Sit $300 Calling Ey rie Change » Grn
Slide 9: Mobiles - continuing to deliver
Mobiles - continuing to deliver $1, 240m8 ate Solid performance in increasingly competitive market Strong Growth in Internet & IP ®. Hi Broadband Stats: 45% of Telstra Net adds Retail | ARPU - Retail $63 © ARPU - Wholesale $36 " BigPond retail market share estimated 38% Minimal impact on Dial-up ba:
Slide 10: Sensis and Underlying Operating Expenses
Seistra Higher 1H duetony & Trading Post i iii Commercial Search is the future for Sensis Underlying Operating Expenses Telstra $5,547 SU850rn 4H 4 Cc " wth i i HN ost gro 7
Slide 11: International Operations and Capital Expenditure
ational Operations Telstra 4 $2,044 $2,273 $662 $623 EBITDA: $252 $208 EBIT: HNN « Successful launch of 3G in December 04 / « Pricing pressure remains intense Hong Kong's j Resale agreement allows leading mobile operator j , nationwide residential offering ERIK Adjusting operating model to meet ; sh
Slide 12: Underpinned by Strong Free Cash Flows
Underpinned by Strong Free Cash Flows _ Selstra Free Cash Flow funding operations with modest movemen in Net Debt Ath 14,800, AH SOG: 32,000 2, 0 Capital Management Program _ Telstra Special Pivgene ee Forrect ol Fee B ldistobutlon tobe detereined) Delivering improved cash returns to shareholders
Slide 13: Target Financial Parameters
Target Financial Parameters Py GG Pid NX a2 FY Ga FY baa Target parameters provide flexibitity for the future Target Zone 45-55% Seistra Selstra 12
Slide 14: Regulatory Issues
Regulatory Issues Mobile Termination Pricing February 2005 Broadband Competition Notice Regulatory issues being proactively managed Our Strategy grow \ & Broadband Wireless cs AP Network &. Advertising Execution shareholder returns Seistra Seistra
Slide 15: Outlook
C Outlook ompany financial focus: profitable revenue, margin & cash flow Seistra Selstra ted 14