Slide 1: Financial Results for the half-year ended 31 December 2024
20 February 2025 Market Announcements Office Office of the Company Secretary 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) – ASX: TLS − Telstra Cor
Slide 2: Disclaimer
Disclaimer ‘This presentation includes forwarc-looking: ‘The forwarctlooking. are based on assumptions and known by Telstra as at the date of this presentation, are provided as a general guide only and are not guarantees or predictions of future Performance, Telstra belles the expectation flected in
Slide 3: Telecommunications has a critical role to play in Australia's future
Vicki Brady — Chief Executive Officer Telecommunications has a critical role to play in Australia’s future er an * To deliver on the connectivity + Artificial Intelligence (Al) needs to demands of the future, we need to be underpinned by secure and be a leader in Al reliable connectivity + We will t
Slide 4: 1H25 EBITDA, NPAT, EPS and ROIC
Half year 2025 results € 1H25 EBITDA 1H25 NPAT 1H25 EPS 1H25 ROIC $4.2b +6.0% $11b +7.1% 8.9cps +6.0% 8.0% +0.2pp On-market share Episode NPS T25 strategy Interim dividend buy-back Improved 3 points On track 9.5cps +5.6% Up to $750m last 12 months fully franked Pages Copyright Telstra® Half year 202
Slide 5: Investing in connectivity
Investing in connectivity * Invested more than $40b in capex and spectrum over the last decade Australia’s biggest investor in digital infrastructure. Intercity fibre network: — Seven routes under construction connecting major capital cities and more than 3,000 km fibre in the ground (as at February
Slide 6: Supporting Australians
Supporting Australians ) + Returned >$1b to shareholders in dividends in the last six months benefiting >16m Australians * Announced up to $750 million on-market share buy-back Disaster preparedness — Committed to upgrade >1k payphones in disaster prone areas by mid 2025 — Expanded our use of portab
Slide 7: Income statement
Michael Ackland — Chief Financial Officer Income statement Continued profitable growth in line with strategy Total income! Operating expenses EBITDA Underlying EBITDA’? D&A EBIT Net finance costs Income tax expense NPAT Profit for TLS shareholders! 1. Refer to definition in the Glossary. $11.7b $7.7
Slide 8: EBITDA by product
EBITDA by product € Earnings growth across almost all products 1H24. 1H25 ange Change $m Mobile $2,510m $2,602m 3.7% | | 92 * Underlying EBITDA? growth of $232m or 5.8% Fixed-C&SB $105m $183m 74.3% | 78 + Mobile growth from more users and ARPU growth Fixed-Enterprise $71m $96m 35.2% I 25 * Fixed-C&S
Slide 9: Fixed – C&SB
Fixed — C&SB ¢ Track record of earnings growth with strong ARPU growth and continued cost discipline $2.2b $183m 1H25 Income ¥2% 1H25 EBITDA 474% * EBITDA growth from price rises and margin expansion as well as fixed wireless growth, partly offset by ongoing SIO decline Bundles & data ARPU growth re
Slide 10: International
International € Growth in Wholesale & Enterprise; headwinds in Digicel Pacific offset by release of earn-out provision A$1.3b A$373m ee aS me 1H25 Income W5% 1H25 EBITDA 48% -0.6% on PCP. +2% on PCP. +1% in constant currency Wholesale & Enterprise results reflect continued demand growth and lower co
Slide 11: Key strategic investments — intercity fibre and Viasat
Key strategic investments — intercity fibre and Viasat € Key financial metrics TER $1.6b Total capex FY23 - FY27 Ma $560m FY23/FY24, $300m - $500m FY25 Remainder FY26/FY27 Mid-teens Expected IRR ~9 year Cash payback First routes Ready For Service in CY25 Page9 Copyright Telstra® Half year 2025 resul
Slide 12: Free cashflow growth
Free cashflow growth € Free cashflow? Une? UES Change CU ian FCFaL? before strategic investment? growth Underlying EBITDA $4,016m $4,248m 5.8% 232 from higher Underlying EBITDA and lower tax; FY25 guidance of $3.0b to $3.4b reaffirmed Working capital and other! -$317m -$729m n/m -412 7 * Working cap
Slide 13: FY25 guidance
FY25 guidance rt Underlying EBITDA2 $8.2b $4.2b $8.5b to $8.7b Business-as-usual capex? $3.4b $1.6b $3.2b to $3.4b Strategic investment® $0.3b $0.1b $0.3b to $0.5b Free cashflow after lease payments (FCFaL)* $3.2b $1.4b $3.0b to $3.4b before strategic investment’ 1. This guidance excludes material o
Slide 14: Size and scale
4 Size q ind >1m shareholders $46b market capitalisation Public ASX20 company scale’ 0 ; P [> FY24 $23b total income A-/A2 investment grade rating from S&P and Moody’s Network! ® earromer ey 24.6m retail mobile services | 35m C&SB bundle and data, | 146k Enterprise data and and people’ 2.5m wholesal
Slide 15: Our purpose and behaviours
» Our To build a connected future so everyone cai purpose and behaviours Work as One Make a Difference T25 strategy erates pillars Our Businesses Consumer Business Enterprise New Markets. International _ Infrastructure Page27 Copyright Tels Half yea! 27 Creating a better digital world! Reduced absol
Slide 16: Capital management framework
Capital management framework Objectives Principles Maximise returns for shareholders za PON > ¢ Fiscal discipline Maintain «yz Retain financial strength “5 financial flexibility Committed to balance sheet settings consistent with an A band credit rating Maximise fully-franked dividend and seek to gr
Slide 17: Network and technology solutions
Network and technology solutions Driven by network expansion including 5G and digital infrastructure allo Investment in network leadership and resilience + Mobile coverage expanded to 99.7% population coverage or 3 million km? — added 360,000 km? since FY21 + Australia’s largest 5G network with 91%
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Slide 21: T25 outcomes — progress (cont.)
T25 outcomes — progress (cont.) Reduce our absolute scope 1+2 emissions by 70% by 2030 (from FY19) The place you want to work — Doing business responsibly Reduce our absolute scope 3 emissions by 50% by 2030 (from FY19) Enable renewable energy generation equivalent to 100% of our consumption by 2025
Slide 22: Underlying earnings
Underlying earnings" 2 € Reported Guidance adjustments Underlying 1H24 2H24 FY24 1H25 1H24 2H24 FY24 1H25 1H24 2H24 FY24 Chg Total income $11,720m $11,762m $23,482m $11,823m -$15m -$66m -$81m - $11,705m $11,696m $23,401m $11,823m 1.0% Operating expenses $7,698m $8,240m $15,938m $7,561m -$24m -$772m
Slide 23: Capital management
Capital management Debt maturity profile’ Average debt maturity 4.3 years $AUD 3.0 2.5 New Bond issuance in FY25 a ™ | | [ oO: mil ll a i FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 a mBonds — Commercial Paper mi Bank Loans Diversified sources of debt! Bank Loans 12% US Bonds 15
Slide 24: Supporting calculations (continued)
Supporting calculations (continued) € 4 % Change A FY: Une OUT wee | aie | nee | ms S PCP Underlying NPAT* $1,047m $1,259m $2,306m $1,115m 6.5% Add back: Interest paid (less tax shield at 30%) $222m $187m $409m $221m -0.5% Underlying NOPAT* $1,269m $1,446m $2,715m. $1,336m 5.3% Underlying NOPAT annu
Slide 25: Product framework | Operating expenses
Product framework | Operating expenses € $ Change % Change Po _“ | mee | ame | “ | mes | Sar | WEEE Mobile $5,656m $2,815m $2,881m $5,696m $2,965m $150m 5.3% Fixed-C&SB $4,322m $2,106m $1,995m $4,101m. $1,991m -$115m 5.5% Fixed-Enterprise $3,225m $1,642m $1,678m $3,320m $1,594m -$48m -2.9% Fixed-Act
Slide 26: Product performance | Mobile
Product performance | Mobile Change P| ee | a | “ EE Mobile income $5,325m $5,397m $10,722m $5,567m 4.5% Mobile services! $4,098m $4,126m $8,224m $4,225m 3.1% - Postpaid handheld $2,826m $2,808m $5,634m $2,884m 21% - Prepaid handheld $581m $612m = $1,193m $630m 8.4% - Mobile broadband $330m = $318m_
Slide 27: Product performance | Fixed – Enterprise
Product performance | Fixed — Enterprise € Change 1H24 2H24 FY24 1H25, vs PCP DAC income $380m $368m $748m $348m 8.4% * Data & connectivity (DAC) income decline continued DAC EBITDA $54m $41m $95m $42m -22.2% with ABPU compression, renewals at lower rates and Margin 14% 11% 13% 12% -2pp gy chang Dat
Slide 28: Product performance | InfraCo Fixed
Product performance | InfraCo Fixed € Change 1H24 2H24 FY24 1H25 vs PGP . . * Income and EBITDAaL excluding CW and legacy asset sales InfraCo Fixed income $1,326m = $1,420m = $2,746m 9 $1,376m =—_- 3.8% growth of +4.7% and +8.3% respectively. Growth in nbn, Commercial & recoverable works $116m $123m
Slide 29: Product performance | Amplitel
Product performance | Ampilitel Change fF “ | ace | ee | “ Amplitel income $229m = =$224m = $453m_—s $235m 2.6% . External $51m $45m $96m $51m - Internal’ $178m $179m $357m $184m 3.4% . EBITDA $187m $182m $369m $187m - Lease expense $36m $46m $82m $36m - . EBITDAaL? $151m $136m $287m $151m - Margin
Slide 30: Glossary
Glossary Term BAU capex EBITDAaL Free cash flow after lease payments (FCFaL) FTE Guidance adjustments IFRS IFRS financial information n/m Non-IFRS financial information Pcp Profit for TLS shareholders ROE ROIC Strategic investment Total income Underlying NPAT Underlying NOPAT Underlying EBITDA Under
Slide 31: Half-year results and operations review
Half-year results and operations review
Slide 32: Operating and financial review
Operating and financial review Half-year results and operations review Financial results Summary reported results 1H25 1H24 Change $m $m % Revenue (excluding finance income) 11,602 11,425 1.5 Total income (excluding finance income) 11,823 11,720 0.9 Operating expenses 7,561 7,698 (1.8) Share of net
Slide 33: Underlying results versus guidance
Operating and financial review • ROIC 5 up 0.2 percentage points to 8.0 per cent Our FY25 guidance remains unchanged. We are committed to increasing earnings, capital discipline and portfolio management, with the aim to further improve ROIC. On the back of earnings growth, the Board resolved to pay
Slide 34: Segment performance Total income 1H25
Operating and financial review Other information We use non-IFRS financial information (being “Underlying EBITDA” and “FCFaL before strategic investment”) as measures to show how the business performed on the same basis as the guidance we provided to the market, and to better reflect what we conside
Slide 35: Total income increased by 0.9 per cent to $11,823 million
Operating and financial review Total income (excluding finance income) increased by 0.9 per cent to $11,823 million including growth across Mobile, InfraCo Fixed and Amplitel. Income growth was partly offset by declines across Fixed – C&SB, Fixed – Enterprise and Fixed – Active Wholesale and Internat
Slide 36: Product performance Product income 1H25
Operating and financial review Income increased by 2.2 per cent to $2,089 million due to growth in recurring nbn Definitive Agreements (nbn DAs) receipts in line with CPI, increased Telstra InfraCo and Amplitel internal access charges, increased Telstra InfraCo commercial and recoverable works, and
Slide 37: Product underlying EBITDA 1H25
Operating and financial review Product underlying EBITDA 1H25 2H24 1H24 FY24 $m $m $m $m Mobile 2,602 2,516 2,510 5,026 Fixed – C&SB 183 149 105 254 Fixed – Enterprise 96 65 71 136 Fixed – Active Wholesale 46 42 52 94 International 373 430 344 774 InfraCo Fixed 892 925 834 1,759 Amplitel 187 182 187
Slide 38: Fixed – Enterprise
Operating and financial review Fixed – Enterprise Fixed – Enterprise income declined by 2.2 per cent to $1,690 million due mostly to DAC declines. DAC income declined by 8.4 per cent to $348 million driven by ARPU compression from competition, renewals and technology change. DAC SIOs reduced by 4.6
Slide 39: Expense performance Operating expenses 1H25
Operating and financial review Other Other income decreased by 9.2 per cent to $590 million including internal and external income. ‘Other’ internal income decreased by $36 million to $360 million. ‘Other’ external income decreased by $24 million to $230 million including due to gains in the prior c
Slide 40: Operating expenses on a statutory reported basis
Operating and financial review Other fixed costs increased by $46 million due to inclusion of prior year acquisitions, including Versent and Telstra Business Technology Centres, and increased Telstra Health costs. Operating expenses on a statutory reported basis Our progress on achieving our product
Slide 41: Cash flows 1H25
Operating and financial review Cash flows Summary statement of cash flows 1H25 1H24 Change $m $m % Net cash provided by operating activities 3,172 3,033 4.6 Net cash used in investing activities (1,884) (2,197) 14.2 – Capital expenditure (before investments) (1,972) (1,968) (0.2) – Other cash from/(
Slide 42: Debt position
Operating and financial review Debt position Debt issuance 1H25 Debt repayments 1H25 $m $m Euro bond 1,147 Revolving bank facilities (net) 512 AUD bond 448 Commercial paper (net) 464 Other borrowings (net) 10 JPY private placement 62 Non-recourse borrowing facilities (net) 3 Total 1,605 Total 1,041
Slide 43: Our balance sheet is in a strong position
Operating and financial review Our balance sheet is in a strong position with net assets of $17,244 million. Current assets increased by 13.8 per cent to $6,949 million. Assets classified as held for sale increased by $379 million mostly due to the share sale and purchase agreement with DAZN Group L
Slide 44: Guidance versus reported results
Guidance versus reported results 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 mergers and acquisiti
Slide 45: Results of operations
Results of operations Half-year ended 31 December 2024 2023 Change Change $M $M $M % Revenue (excluding finance income) 11,602 11,425 177 1.5 Other income (i) 221 295 (74) (25.1) Total income (excluding finance income) 11,823 11,720 103 0.9 Labour 2,026 2,054 (28) (1.4) Goods and services purchased
Slide 46: Statement of Cash Flows
Statement of Cash Flows Half-year ended 31 December 2024 2023 Change Change $M $M $M % Cash flows from operating activities Receipts from customers (inclusive of goods and services tax (GST)) 12,886 12,489 397 3.2 Payments to suppliers and employees (inclusive of GST) (9,643) (9,117) (526) (5.8) Gov
Slide 47: Statement of Financial Position
Statement of Financial Position As at 31 Dec 24 30 Jun 24 Change Change $M $M $M % Current assets Cash and cash equivalents 1,025 1,046 (21) (2.0) Trade and other receivables and contract assets 3,973 3,828 145 3.8 Deferred contract costs 179 140 39 27.9 Inventories 651 518 133 25.7 Derivative finan
Slide 48: Total income
Total income Half-year ended 31 December 2024 2023 Change Change $M $M $M % Mobile Postpaid handheld 2,884 2,826 58 2.1 Prepaid handheld 630 581 49 8.4 Mobile broadband 304 330 (26) (7.9) Internet of Things (IoT) 145 142 3 2.1 Mobile wholesale 251 209 42 20.1 Other 11 10 1 10.0 Total mobile services
Slide 49: Total expenses
Total expenses Half-year ended 31 December 2024 2023 Change Change $M $M $M % Salary, associated costs, labour substitution & other 2,003 1,982 21 1.1 Employee redundancy 23 72 (49) (68.1) Total labour 2,026 2,054 (28) (1.4) Commissions 231 258 (27) (10.5) Cost of goods sold 1,440 1,399 41 2.9 Netwo
Slide 50: Average Revenue per Unit (ARPU) ($)
Average Revenue per Unit (ARPU) ($) Half-year ended Dec 24 vs Dec 23 Dec 24 vs Jun 24 Dec 2024 Jun 2024 Dec 2023 Change Change Change Change $ $ $ $ % $ % Mobile Postpaid handheld 53.62 52.49 53.18 0.44 0.8 1.13 2.2 Prepaid handheld 28.15 27.14 26.44 1.71 6.5 1.01 3.7 Mobile broadband 18.20 18.63 19
Slide 51: Segment information from operations
Segment information from operations Total income EBITDA contribution Half-year ended 31 December Half-year ended 31 December 2024 2023 Change 2024 2023 Change $M $M % $M $M % Telstra Consumer 5,528 5,361 3.1 2,406 2,204 9.2 Telstra Business 1,442 1,456 (1.0) 968 1,012 (4.3) Telstra Enterprise Austra
Slide 52: Product profitability - EBITDA ($M)
Product profitability - EBITDA ($M) Half-year ended 31 December 2024 2023 Change % Mobile 2,602 2,510 3.7 Fixed - C&SB 183 105 74.3 - Data & connectivity 42 54 (22.2) - NAS 54 17 n/m Fixed - Enterprise 96 71 35.2 Fixed - Active Wholesale 46 52 (11.5) International 373 344 8.4 InfraCo - Fixed 892 834
Slide 53: Half-year comparison - Reported lease adjusted
Telstra Group Limited Half-year comparison - Reported lease adjusted (i) Half-year ended 31 December 2024 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
Slide 54: Half-year comparison
Telstra Group Limited Half-year comparison Half-year ended 31 December 2024 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 PCP Half 1 PCP