Telstra Group Limited · ASX:TLS

Telstra — FY2026 Earnings Presentation

64 slides from Telstra's earnings presentation, Aug 13, 2026

  1. Slide 1: FY26 results – CEO and CFO analyst briefing presentation and materials

    13 August 2026 Market Announcements Office Office of the Company Secretary For personal use only 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) – AS

  2. Slide 2: Disclaimer

    For personal use only Full year 2026 results Copyright Telstra © 1 1 Disclaimer Forward - looking statements This presentation includes forward - looking statements. The forward - looking statements are based on assumptions and information k nown by Telstra as at the date of this presentation, are p

  3. Slide 3: Full year 2026 results

    For personal use only Full year 2026 results Vicki Brady – Chief Executive Officer Copyright Telstra © 3 3 Full year 2026 results EBITDAaL EBIT NPAT EPS $8.2b +3.0 % $4.0b + 1.7% $2.4b +2.7% 19.9cps +5.3% 1,2 1,2 1 Cash EPS 1 Underlying EBITDAaL Cash EBIT Underlying NPAT $8.3b +4.0 % $4.7b +8.0 % $2

  4. Slide 4: Our ambition is to be the number one choice for connectivity in Australia

    Our ambition is to be the number one choice for connectivity in Australia For personal use only Our three layers and goals Our four enablers Customer Engagement People & culture To lead in how we anticipate and deliver on the connectivity needs of our customers Technology leadership Network as a Pro

  5. Slide 5: Network as a Product

    Network as a Product Network leadership and resilience For personal use only • Australia's leading mobile network. Invested $9.5b+ in our mobile network nationally over last 5 years, with $3.8b of this in regional areas • Invested $19b+ overall capex and spectrum over last 5 years • Annual investmen

  6. Slide 6: Enablers

    Enablers Building AI capability and technology leadership at scale For personal use only • Data & AI capability for our people (refer to Appendix for key Data & AI initiatives) – 15,000+ of our people completed at least one Data & AI course in FY26 – 86% of our people with a Copilot licence used it

  7. Slide 7: Full year 2026 results

    For personal use only Full year 2026 results Michael Ackland – Chief Financial Officer Copyright Telstra © 11 11 Full year 2026 results Strong cash earnings growth, reported results impacted by higher D&A and non -cash impairments FY25 FY26 Change • Earnings per share (EPS) growth of 5% Total income

  8. Slide 8: Cash earnings

    Cash earnings Strong growth from disciplined cost and investment supporting sustainable returns For personal use only FY25 FY26 Change • Underlying EBITDAaL 1,2 growth of $320m or 4% Underlying EBITDAaL 1,2 $8,021m $8,341m 4.0% • Disciplined BAU capex included increased mobile investment offset by l

  9. Slide 9: Mobile

    Mobile Ongoing growth supported by leading mobile network and customer -focused propositions For personal use only $11.4b $5.4b Mobile service revenue $m 1 ARPU - handheld 2,3 - $/mth +3.7% on PCP FY26 Income 1 3% FY26 EBITDA 1 3% +4.8% on PCP 45.33 • Mobile service revenue 4.8% growth supported 4

  10. Slide 10: Fixed - Enterprise

    Fixed - Enterprise Strong progress on product simplification, portfolio and cost management For personal use only $3.2b $199m Fixed - Enterprise income 1 Fixed - Enterprise EBITDA 1 FY26 Income 1 ▼8% FY26 EBITDA 1 ▼17% $m $m • Fixed - Enterprise income decline with -8.1% on PCP -16.7% on PCP continu

  11. Slide 11: Infrastructure

    Infrastructure Ongoing growth in digital infrastructure; significant increase in sales pipeline and more signings For personal use only • InfraCo Fixed income growth of 2.5% InfraCo Fixed income - $m nbn revenue - $m – External income growth of 3.6% from nbn +2.5% on PCP +2.5% on PCP recurring recei

  12. Slide 12: Net debt

    Net debt Strong capital position and liquidity For personal use only FY25 1H26 FY26 • Net debt increase of $0.9b since FY25 includes $0.3b derivative valuation change and $1.25b share buy -back Net debt $16.4b $16.8b $17.3b • Lower average cost of debt to 4.8% Debt servicing (comfort zone 1.75 - 2.2

  13. Slide 13: Delivering growth and shareholder value creation

    Delivering growth and shareholder value creation For personal use only ▪ Cash earnings 1 +12% to $2.9b in FY 26 Growth in core 1 business cashflow ▪ Earnings growth led by Mobile and Infrastructure ▪ Positive operating leverage 1,2 of +2.0pp in FY2 6 ▪ Portfolio management including sale of Alliance

  14. Slide 14: Telstra at a glance

    For personal use only Appendix Copyright Telstra © 25 25 Telstra at a glance >1mshareholders >1m shareholders $55bmarket $46b marketcapitalisation capitalisation Public Public ASX20 ASX20 company company Size and scale 1 FY26 FY24 $23b $23b total total income income A-/A2investment A-/A2 investmentg

  15. Slide 15: Sustainability

    Sustainability For personal use only Creating a Helped 1.4m customers in vulnerable circumstances Supported the digital inclusion of 177,000 people, stay connected including almost 35,000 in the NT, SA and TAS better digital world Partnered with WESNET to deliver >50,000 phones to victim - Supported

  16. Slide 16: Connected Future – progress

    Connected Future 30 – progress For personal use only Status legend ● On track for delivery ● Progress made* ● Not on track Key targets Status Progress 1 Grow strategic NPS by more than 50% by FY30 ● FY26 strategic NPS uplift of 1 point on PCP Customer Top 10 strongest brand in Australia. Ranked 9th

  17. Slide 17: Strategic investment: Aura Network and Viasat

    Strategic investment: Aura Network and Viasat For personal use only Satellite ground stations/ teleport sites Data centres Six routes completed: • Sydney to Melbourne Express path coastal via Canberra (Oct -25) Foundation path • Sydney to Melbourne Path subject to demand central via Canberra (Jun -2

  18. Slide 18: Underlying earnings reconciliation to reported earnings

    Underlying earnings reconciliation to reported earnings 1,2 For personal use only Reported Guidance adjustments 2,3 Underlying % Change FY25 1H26 2H26 FY26 FY25 1H26 2H26 FY26 FY25 1H26 2H26 FY26 vs PCP 1 Total income $23,610m $11,845m $11,560m $23,405m -$47m - -$25m -$25m $23,563m $11,845m $11,535m

  19. Slide 19: D&A vs cash earnings equivalent

    D&A vs cash earnings equivalent For personal use only $ Change % Change FY23 FY24 FY25 1H26 2H26 FY26 vs PCP vs PCP BAU capex 1 $3,297m $3,405m $3,388m $1,546m $1,819m $3,365m -$23m -0.7% 1 Leases $574m $619m $600m $287m $290m $577m -$23m -3.8% Spectrum amortisation $296m $281m $321m $161m $156m $31

  20. Slide 20: Dividends and buy-backs

    Dividends and buy -backs For personal use only % Change FY24 FY25 1H26 2H26 FY26 vs PCP Earnings per share (EPS) Basic EPS (cents) 14.1 18.9 9.9 10.0 19.9 5.3% Underlying EPS 1 (cents) 18.5 19.1 10.1 10.3 20.4 6.8% Cash EPS 1 (cents) 20.0 22.4 14.0 11.5 25.5 13.8% Dividends Ordinary dividend - frank

  21. Slide 21: Return on Invested Capital (ROIC)

    Return on Invested Capital (ROIC) For personal use only % Change FY24 FY25 1H26 2H26 FY26 vs PCP 1 Underlying NPAT $2,306m $2,347m $1,228m $1,233m $2,461m 4.9% Add back: Net finance costs (less tax shield at 30%) $409m $447m $232m $236m $468m 4.7% 1 Underlying NOPAT $2,715m $2,794m $1,460m $1,469m $

  22. Slide 22: Product performance | Income

    Product performance |Income 1 For personal use only FY24 2H26 $ Change % Change FY25 1H26 FY26 vs PCP vs PCP Mobile $10,722m $11,015m $5,769m $5,599m $11,368m $353m 3.2% Fixed - C&SB $4,355m $4,299m $2,120m $2,057m $4,177m -$122m -2.8% Fixed - Enterprise 2 $3,456m $3,445m $1,608m $1,559m $3,167m -$2

  23. Slide 23: Product performance | EBITDA and EBITDAaL

    Product performance |EBITDA and EBITDAaL For personal use only $ Change % Change FY24 FY25 1H26 2H26 FY26 vs PCP vs PCP Mobile $5,026m $5,261m $2,695m $2,741m $5,436m $175m 3.3% Fixed - C&SB $254m $363m $220m $192m $412m $49m 13.5% Fixed - Enterprise $136m $239m $87m $112m $199m -$40m -16.7% Fixed -

  24. Slide 24: Product performance | Mobile physicals

    Product performance |Mobile physicals For personal use only Mobile handheld users 1 FY24 1H25 2H25 FY25 1H26 2H26 FY26 • FY25 postpaid handheld SIOs +162k adjustments to net adds: Reported total 14,447k 14,566k 14,532k 14,532k 14,667k 14,806k 14,806k – 64k SIM disconnections acquired during COVID -e

  25. Slide 25: Product performance | Fixed - Enterprise

    Product performance |Fixed - Enterprise For personal use only Change • Data & Connectivity (DAC) income decline with 2H25 FY25 1H26 2H26 FY26 ARPU compression from competition, renewals and vs PCP technology change as well as service rationalisation, DAC income $331m $679m $317m $320m $637m -6.2% pr

  26. Slide 26: Product performance | InfraCo Fixed

    Product performance |InfraCo Fixed For personal use only Change • InfraCo Fixed income growth from nbn recurring, 2H25 FY25 1H26 2H26 FY26 vs PCP copper recovery and satellite ground stations • nbn recurring income from nbn Co for use of pits, ducts, InfraCo Fixed income $1,334m $2,710m $1,370m $1,4

  27. Slide 27: Product performance | Amplitel

    Product performance |Amplitel For personal use only Change • Amplitel income growth from additional site licences, 2H25 FY25 1H26 2H26 FY26 contractual escalations, new tower builds, 5G upgrades vs PCP requiring additional area on towers and services Amplitel income $235m $470m $242m $245m $487m 3.6

  28. Slide 28: Glossary

    Glossary For personal use only Term Definition (unless separately defined in the slides) Term Definition (unless separately defined in the slides) Financial Financial (cont.) Business -as -usual (BAU) capex is measured on an accrued basis and excludes spectrum, Strategic investment capex is measured

  29. Slide 29: CEO Speech

    CEO Speech Slide: Full year 2026 results CEO Thank you, Nathan. Good morning everyone and thank-you for joining us. For personal use only I’ll first make three comments reflecting on the year, before turning to Telstra’s overall performance and our outlook for the future. Michael will then cover the

  30. Slide 30: CEO Speech (continued)

    also detail the drivers of our cash earnings growth and positive operating leverage of 2 percentage points, which was in line with our Connected Future 30 targets. On the back of cash earnings growth, the Board resolved to pay a final dividend of 10.5 cents per share, bringing the total dividend for

  31. Slide 31: CEO Speech (continued)

    For example, we rolled out Customer iQ in the year, bringing together millions of data points to better understand the experience of our customers. This is helping our team to proactively address issues and have better conversations with customers, supported by AI-powered tools to help them get up t

  32. Slide 32: CEO Speech (continued)

    We take any disruption to our customers and Australians extremely seriously. When things do go wrong, we’re committed to taking accountability, giving people clear information, and fixing issues as quickly as possible. As connectivity becomes increasingly critical, we’re also committed to continuing

  33. Slide 33: CEO Speech: Outlook

    The second highlight relates to our technology leadership. We have been extremely disciplined about scaling AI with strong foundations, including reusable architecture, governance, security, cost management and simplifying our data ecosystem. Over FY26 we reduced our data platforms by another 15. We

  34. Slide 34: CEO and CFO Speech

    5. Five, we will also remain disciplined on costs, capital allocation and creating shareholder value. As we continue to invest in network resilience and growth, we will maintain our focus on productivity, simplification and positive operating leverage. As I close, I want to acknowledge and thank our

  35. Slide 35: CFO Speech (continued)

    As Vicki said, with stronger earnings, the Board announced total FY26 dividends of 21 cents per share which are 90.5% franked. This is up 10.5% on a cash basis from last year, and represents 82% of Cash EPS. SLIDE 13 – Cash earnings For personal use only Turning now to cash earnings, where we delive

  36. Slide 36: CFO Speech: Fixed - C&SB

    SLIDE 16 - Fixed - C&SB Turning to Fixed - Consumer and Small Business. While this remains a highly competitive product, and market growth is challenged, we grew EBITDA by 13.5% to $412 million through strong cost management. For personal use only During the year, we continued to invest in our produ

  37. Slide 37: CFO Speech (continued)

    During the year, we acquired capacity on several cable systems and have already on-sold over half of this capacity to customers, including hyperscalers. We are assessing further value-accretive investments, although new investments will likely take time to translate into earnings growth. For persona

  38. Slide 38: CFO Speech (continued)

    At the same time, we continued to deliver efficiencies across labour, technology and other operating expenses. Our investments in technology are translating into efficiencies across customer service, retail and support functions. As Vicki outlined, these initiatives are also helping us improve custo

  39. Slide 39: CFO Speech: conclusion

    In short, we continued to deliver growth and value in FY26 in accordance with our strategy, with: • Growth in core business cash flow including 12% growth in cash earnings, • Portfolio & investment management where we continue to execute and invest in line For personal use only with our strategy, an

  40. Slide 40: Full-year results and operations review

    Full-year results and operations review For personal use only Financial results FY26 FY25 Change Summary reported results $m $m % Revenue (excluding finance income) 22,937 23,125 (0.8) Total income (excluding finance income) 23,405 23,610 (0.9) Operating expenses 14,592 14,986 (2.6) Share of net pro

  41. Slide 41: Reported EBITDAaL vs underlying results

    Full-year results and operations review | Telstra Annual Report 2026 FY26 FY25 Change Reported EBITDAaL vs underlying results 3 $m $m % For personal use only EBITDA after leases (EBITDAaL) 8,245 8,007 3.0 Guidance adjustments 96 14 n/m Underlying EBITDAaL4 8,341 8,021 4.0 Business-as-usual capex5 3,

  42. Slide 42: Operations review commentary

    Underlying EBITDA grew across our Mobiles, Fixed Consumer & Our Investor Day presentation on 27 May 2025 set out our key Small Business (C&SB), InfraCo Fixed and Amplitel businesses. targets and measures of performance for our Connected Future Importantly our Mobiles business continued to perform we

  43. Slide 43: Segment performance

    Full-year results and operations review | Telstra Annual Report 2026 Segment performance We report segment information on the same basis as our internal management reporting structure as at the reporting date. For personal use only Segment comparatives reflect any organisational changes that have oc

  44. Slide 44: Segment descriptions

    Telstra Consumer Network, Product and Technology For personal use only Telstra Consumer provides telecommunication and technology Network, Product and Technology supports the other segments products and services to consumer customers in Australia using and their respective revenue generating activit

  45. Slide 45: Product performance

    Full-year results and operations review | Telstra Annual Report 2026 Product performance For personal use only Product income breakdown (including internal income) 2% 5% FY26 FY25 Change 11% Product income $m $m % 44% 9% Mobile 11,368 11,015 3.2 FY26 1% Fixed – C&SB 4,177 4,299 (2.8) 12% Fixed – Ent

  46. Slide 46: Mobile and Fixed – C&SB

    For personal use only Mobile Fixed – Consumer and Small Business (C&SB) Mobile income increased by 3.2 per cent to $11,368 million Fixed – C&SB income decreased by 2.8 per cent to $4,177 including 4.8 per cent services revenue growth. Growth in million. Core connectivity revenue decreased by 1.8 per

  47. Slide 47: Fixed – Active Wholesale and InfraCo Fixed

    Full-year results and operations review | Telstra Annual Report 2026 For personal use only Fixed – Active Wholesale InfraCo Fixed Fixed – Active Wholesale income declined by 5.7 per cent to InfraCo Fixed income increased by 2.5 per cent to $2,779 $329 million. Wholesale DAC revenue decreased by 5.9

  48. Slide 48: Expense performance

    For personal use only Expense performance FY26 FY25 Change Operating expenses $m $m $m % Sales costs15 7,564 7,889 (325) (4.1) Fixed costs 6,907 7,036 (129) (1.8) Underlying 14,471 14,925 (454) (3.0) Guidance adjustments16 121 61 60 n/m Total 14,592 14,986 (394) (2.6) Underlying operating expenses d

  49. Slide 49: Operating leverage

    Full-year results and operations review | Telstra Annual Report 2026 FY26 FY25 Change Operating leverage17 $m $m % Total income (excluding finance income) 23,405 23,610 (0.9) For personal use only Guidance adjustments18 (25) (47) n/m Underlying income19 23,380 23,563 (0.8) Underlying operating expen

  50. Slide 50: Labour and foreign currency impacts

    For personal use only Labour Foreign currency impacts Total labour expenses decreased by 4.6 per cent or $183 million For the purposes of reporting our consolidated results, the to $3,807 million due to reduced roles and bond rate changes translation of foreign operations denominated in foreign that

  51. Slide 51: Cash flows

    Full-year results and operations review | Telstra Annual Report 2026 For personal use only Cash flows FY26 FY25 Change Summary statement of cash flows $m $m % Net cash provided by operating activities 7,554 7,324 3.1 Net cash used in investing activities (3,473) (3,368) (3.1) – Capital expenditure (

  52. Slide 52: Debt position

    Debt position For personal use only FY26 FY26 Cash inflows $m Cash outflows $m Euro bond 983 Euro bond 1,133 Swiss bond 383 Total debt repayments 1,133 Total debt issuance 1,366 Non-recourse borrowing facilities 13 Revolving bank facilities (net) 1,006 Lease liability payments 673 Commercial paper (

  53. Slide 53: Financial position

    Full-year results and operations review | Telstra Annual Report 2026 Financial position For personal use only FY26 FY25 Change Summary statement of financial position $m $m % Current assets 6,187 6,495 (4.7) Non-current assets 37,932 38,473 (1.4) Total assets 44,119 44,968 (1.9) Current liabilities

  54. Slide 54: Guidance versus reported results

    Guidance versus reported results For personal use only 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

  55. Slide 55: Results of operations

    Results of operations Year ended 30 June For personal use only 2026 2025 Change Change $M $M $M % Revenue (excluding finance income) 22,937 23,125 (188) (0.8) Other income (i) 468 485 (17) (3.5) Total income (excluding finance income) 23,405 23,610 (205) (0.9) Labour 3,807 3,990 (183) (4.6) Goods an

  56. Slide 56: Total income

    Total income Year ended 30 June For personal use only 2026 2025 Change Change $M $M $M % Mobile Postpaid handheld 5,991 5,793 198 3.4 Prepaid handheld 1,370 1,285 85 6.6 Mobile broadband 612 595 17 2.9 Internet of Things (IoT) 308 293 15 5.1 Mobile wholesale 619 522 97 18.6 Other 19 20 (1) (5.0) Tot

  57. Slide 57: Total expenses

    Total expenses Year ended 30 June 2026 2025 Change Change For personal use only $M $M $M % Salary, associated costs, labour substitution & other 3,601 3,876 (275) (7.1) Employee redundancy 206 114 92 80.7 Total labour 3,807 3,990 (183) (4.6) Commissions 389 433 (44) (10.2) Cost of goods sold 2,456 2

  58. Slide 58: Statement of Cash Flows

    Statement of Cash Flows Year ended 30 June For personal use only 2026 2025 Change Change $M $M $M % Cash flows from operating activities Receipts from customers (inclusive of goods and services tax (GST)) 25,056 25,647 (591) (2.3) Payments to suppliers and employees (inclusive of GST) (16,663) (17,5

  59. Slide 59: Statement of Financial Position

    Statement of Financial Position As at For personal use only 30 Jun 26 30 Jun 25 Change Change $M $M $M % Current assets Cash and cash equivalents 1,103 1,012 91 9.0 Trade and other receivables and contract assets 3,359 3,677 (318) (8.6) Deferred contract costs 118 108 10 9.3 Inventories 515 485 30 6

  60. Slide 60: Average Revenue per Unit (ARPU) and services in operation

    Average Revenue per Unit (ARPU) ($) For personal use only Half-year ended Jun 26 vs Jun 25 Jun 26 vs Dec 25 Jun 2026 Dec 2025 Jun 2025 Change Change Change Change $ $ $ $ % $ % Mobile Postpaid handheld 56.06 56.22 54.23 1.83 3.4 (0.16) (0.3) Prepaid handheld unique user 37.39 37.63 35.71 1.68 4.7 (0

  61. Slide 61: Segment information from operations

    Segment information from operations Total income EBITDAaL For personal use only Year ended 30 June Year ended 30 June 2026 2025 Change 2026 2025 Change $M $M % $M $M % Telstra Consumer 10,941 10,862 0.7 5,031 4,776 5.3 Telstra Business 2,899 2,867 1.1 1,922 1,916 0.3 Telstra Enterprise 4,255 4,487 (

  62. Slide 62: Product profitability - EBITDA

    Product profitability - EBITDA ($M) Year ended 30 June 2026 2025 Change % For personal use only Mobile 5,436 5,261 3.3 Fixed - C&SB 412 363 13.5 - Data & connectivity 48 86 (44.2) - NAS 151 153 (1.3) Fixed - Enterprise 199 239 (16.7) Fixed - Active Wholesale 65 82 (20.7) International 654 678 (3.5)

  63. Slide 63: Half-year comparison - Reported lease adjusted

    For personal use only Telstra Group Limited Half-year comparison - Reported lease adjusted (i) Year ended 30 June 2026 Summary management reported half-yearly data Half 1 Half 2 Full year Half 1 PCP Half 2 PCP Full year PCP Half 1 PCP Half 2 PCP Full year PCP Half 1 PCP Half 2 PCP Full year PCP Half

  64. Slide 64: Half-year comparison

    For personal use only Telstra Group Limited Half-year comparison Year ended 30 June 2026 Summary management reported half-yearly data Half 1 Half 2 Full year Half 1 PCP Half 2 PCP Full year PCP Half 1 PCP Half 2 PCP Full year PCP Half 1 PCP Half 2 PCP Full year PCP Half 1 PCP Half 2 PCP Full year PC

Telstra Group — FY2026 Earnings Presentation on 6ix