Telstra Group Limited · ASX:TLS
Telstra — JP Morgan Australasian Investment Conference 2003
10 slides from Telstra's conference presentation, Oct 14, 2003
Slide 1: Dr Switkowski's presentation to JP Morgan Australasian Investment Conference
14 October 2003 The Manager Company Announcements Office Australian Stock Exchange 10th Floor, 20 Bond Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam Office of the Company Secretary Level 44 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA Telephone 03 8634 6400 Facsimile 03 9632 32
Slide 2: Improved Underlying Financials in Second Half
Gelstra nto TF Ziggy Switkowski . Chief Executive Officer JP Morgan Australasian Investment Conference Improved Underlying Financials in Second Half Underlying Results ($ millions except EPS & DPS} 2HO3 Growth (%) FY2003 Growth (%)' Sales Revenue 9,752 1.4 19,947 0.5 Expenses 4,854 @BA3.7) 10,004 (1
Slide 3: Telstra - Already a Strong Performer
Managing Performance Telstra Performance Slide 3 Celstra Telstra ~ Already a Strong Performer * Telstra has an impressive dividend yield, ROIC, EBITDA + 13th largest telco globally by market capitalisation + Growing PSTN revenues + Effective wholesale model « Robust balance sheet + Rigorous CAPEX ma
Slide 4: 2002/03 Financial Outcomes
2002/03 Financial Outcomes 12,500 10,000 8,000 6.000 Smiliions 4,500 2.00 2602 ©2003 2002 2003 -% fine. interest and ex investments; gen? Special Dividend in AOR we Di 2002 2003 2002 2003 ©2002 2003 FCF? CAPEX? Ordinary Dividend? measures " iN] oe Cents Per Share ~~ a There is always upward pressure
Slide 5: Economy and Regulation
Status - Economy GDP & Communications Services Consumer Spending on Communications 20% 4.0% 15% Communication Services 2.5%. GST-telated spike 2.0% Share of disposable income 98-96 97-98. 99-00 5% Mar1991 = Mar1984 0 Mar.1987 0 Mar.2000 = Mar.2003 Soutey, Acsbvadans Bureau af Slanistoe mand ¢ xpecte
Slide 6: Competition and Customers
Status - Competition Market Share Telstra Market Shares? Millions 16 90% 4 Mobile {Os - Industry 80% c See 10 70% Access Lines - Telstra 8 80% 8 cannansteete save r i : 4 vansnssee Mobile SlOs - Telstra 40% 2 g W% 1999 2000 2064 2062 2063 1909 2000 2001 2002 2003 ii] Revenues markel shares fer bala,
Slide 7: Customers (Cont) and Organisation Status
Status — Customers (Cont) eree i Fixed Access Value Added Fixed Line Features TAG « 1#-Telstra Feature Assistant 800 C+ 14%) * Telstra Home Messages 101 700 « Call Forward « Calling Number Display 600 $763 « Calling Waiting 500 $743 + 310# Call Return $o71 « 3 Way Chat 400 2001 2002 2003 Ave No. fea
Slide 8: Status - Investors: Capital Management
Status - Organisation [ tkbD Douy Canipbel! oad sop inorsaien 4 om slip cine : one siecornMae Sebeta Dane pation § is Piwaidant Telstia latertataral: S65 be 5 Status - Investors Capital Management B Special - ; : Ordinary + Dividends + Yieid 5.7%, + 100% franked + CapitaiReturn ~ $800m to $1bn buyba
Slide 9: Investors (Cont.): Active Capital Management
Status — Investors (Cont.) Active Capital Management + $800m to $4bn return of surpius capital to shareholders by way of off-market share buyback + Target completion - by end December 2003 + Efficiently distribute franking credits + Financial strength and operational flexibility retained + Within pr
Slide 10: Growth, Productivity and Cost
wth, Productivity & . Side 17
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