Slide 1: ASX lodgement letter: Investor Day slide presentation
6 October 2006 The Manager Company Announcements Office Australian Stock Exchange 4" Floor, 20 Bridge Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam Investor Day - slide presentation by CEO Sol Trujillo Office of the Company Secretary Level 41 242 Exhibition Street MELBOURNE VIC 3000
Slide 2: Disclaimer
Telstra Disclaimer ‘These presentations include certain fonward-looking statements that cte'subject to-vatious risks and uncertainties: Actual restits; performance or achievements could be significantly: different from those expressed tn, ortinplied by; these forward: lookitig statements. Such forwa
Slide 3: Restate strategy, update, educate, demonstrate, restate targets
Telstra _ Restate strategy Update Educate _ Demonstrate _ Restate targets The transformation has begun _ Strategically — Operationally — Culturally _ Financially
Slide 4: Big day for the Australian telco industry
Big day for the Australian telco industry _ Telstra changes the game For our customers, for our shareholders, for our competitors, for our employees _ Competitive advantage Is what we strive for a Winning matters erence ree ete 2006 - we’ve been busy Telstra
Slide 5: Customer experience
Customer experience Service experience improved Brand attribution from 50% to 72% 42% of Telstra consumers Using 3+ products _ Meeting broadband demand, on time Customers voting with their pocketbook Revenue acceleration Increasing broadband, mobile share, record volumes PSIN decline reduced from 7.
Slide 6: Innovation
Innovation Integrated BigPond/ Mobile launch at Comm. Games Fully integrated offering at NextG — nyengy launch 25 Unique product categories for NexiG Telstra Integration Lab created Less complexity Simplified pricing 58 platforms capped or exited 115 7 applications exited (75 on the way) Hundreds of
Slide 7: Cost reduction
Cost reduction Workforce reduced by over 3,800 FIEs’, how approaching 5,000 Capex savings of ~$500M in FY06 36 office sites exited (56,0001) Fleld productivity growing rapidiy i a erga Aine Bourun Business portfolio Acquired China growth vehicle for Sensis (SouFun) _ New World Merger to make CSI #1
Slide 8: Our Nov '05 transformation program
Telstra Our Nov ‘05 transformation program enoniamamaranermennsc: ear ewer Our Nov ‘05 transformation program
Slide 9: Our Nov '05 transformation program
Telstra Our Nov ‘05 transf
Slide 10: Our Nov '05 transformation program
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Slide 11: Our Nov '05 transformation program
transformation program ne ; Qur Nov ‘05 Our Nov ‘05 i, 10
Slide 12: Our Nov '05 transformation program
Telstra Our Nov ‘05 transformation program \ ott os
Slide 13: Our Nov '05 transformation program
Our Nov ‘05 transfo rmation program Telstra 12
Slide 14: Our Nov '05 transformation program
Telstra ieceonoseutasrncemem fee 2 : ets Our Nov ‘05 transformation program ROOT 13
Slide 15: Our Nov '05 transformation program
Our Nov ‘05 transformation program us Our Nov ‘05 transformation program 14
Slide 16: Our Nov '05 transformation program
Our Nov ‘05 transformation program Our Nov ‘05 transformation program \ Telstra 15
Slide 17: Our Nov '05 transformation program
Our Nov ‘05 transformation program Telstra MSMR UOLICROSLIID ustomers' needs better an anyone rough Those networks Ww ‘economic v thatis more 16
Slide 18: Our vision
Telstra Our vision To do for customers what no one else has done: Create a world of 1-click, 1-touch, 1-button, 1-screen, 1-step solutions that are simple, easy and valued by individuals, businesses, enterprises and government. Telstra Leomrp i neneg st ENTE . oan Our vision is enabled by true diffe
Slide 19: Full speed ahead
Telstra Full speed ahead _ Following same 15 Nov 05 strategy “One Factory” consolidation nisdtion Growing revenues and margins i Reach destination‘adhead h Turned on the best wireless network in Australia / the world BEBE SLY y, i ie = 1oMsgkm AZAMbps | 2.6Mbps B84 ca | Teletra = Telttraend Telstra
Slide 20: Ethernet
Telstra Ethernet % ig Frame Relay AEM a 19
Slide 21: Creating the best infrastructure
Creating the best infrastructure IT sustem simplification @ of O55 & BSS sustems) Telstra Telstra Creating the best infrastructure Simplification Single |P/MPLS core _ Multlservice edge Best access (Wireless, Fibre, DSL, HEC) Billing and Customer Care Operational Support Systems Data centres Network
Slide 22: Superior portfolio of content and services
Superior portfolio of content and services EXISTING: FOXTEL YS ENHANCED: S3iew giemenuas ty ee is: Yellow RI WheredS ps Focus on the customer, and on Unique segment needs Go-to-market dpprodch delivers value by meeting segment needs _ Organising around seqments Contribution by segment 21
Slide 23: We are evolving to a new digital telco economic model
Telstra We are evolving to a new digital telco economic model | Phusical elements | _ Software defined Products delivered manually - Limited leverage Only at Telstra National 3GSM 850Mhz HSDPA network (NextG) Simple “MyPlace” product menu on consumer 3G 850 phones Interactive mobile video tutorial t
Slide 24: Where are we operationally
Telstra Where are we operationally . : : | Headcount was increasing, _ Fhange int ies now decreasing =3.86K POS FYOS Where are we operationally Telstra Tech Services productivity overine _ Productivity was falling, now growing
Slide 25: Where are we operationally
Telstra Where are we operationally Unsatisfied Appointments ADSL orders met on time Service was declining, now improving eshtanncnasincnotesnemnncerns Where are we operationally Jobs completed right first tine _ Quality was declining, now improving 24
Slide 26: Structure that drives rapid decision making
Telstra Nextel Olenge Qantas Telecom ltalia US West Vodatone Structure that drives rapid decision making —— ee ex Fost, clear. | Consistent eo xesource reduced ‘allocation ~ cost services: Meet - Segment - Meeds Customers 25
Slide 27: Revenue trajectory is strong
Revenue trajectory is strong PSTN decline was increasing, now slowing _ Mobile ARPU in key segments increasing PSIN deciine THEYOG = 2H PYO6 3G ARPU vs 26" 26
Slide 28: Revenue trajectory is strong
Revenue trajectory is strong Broadband share increasing Revenue trajectory is strong Digital online services increasing significantly Telstra Increase in broadband share Telstra reenter ces A meanennte Sensis revenue growth (06) $56M $55M Ontine Print 27
Slide 29: Financial trajectory is on track
Financial trajectory is on track | Revenue _Costspowat Maximum — [rajectoru — Will tise after already top of curve SpendinFY06 nowsetto one-off cost/ increasing doting the andQ7(less improve capex “Aumps” (3.9% in 2H06 transfor to date than W515%14) mation (will oginal plan) come down) Driving share
Slide 30: What's coming in FY 2007
What's coming in FY 2007 Continue wireless upgrade path IP/MPLS core and multi-service edge turned up __ Deliver Broadband across all access platforms __ First release of transformed 11 capability Top line grewth ahead of plan Changing the economics of the business Headcount reduction staying ahead
Slide 31: Transformation Tracking Record
Transformation Tracking Record Wireless Products, content, services y a 30% It’s a five year journey, but the transformation is already delivering 30