Telstra Group Limited · ASX:TLS
Telstra — Goldman Sachs JBWere Australasian Investment Forum 2006
13 slides from Telstra's conference presentation, Mar 7, 2006
Slide 1: ASX cover letter: Goldman Sachs JBWere Australasian Investment Forum
7 March 2006 The Manager 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 03 8634 6400 Facsimile 03 9632 3215
Slide 2: Telstra Corporation Limited - GSJBW Australasian Investment Forum
Telstra Corporation Limited GSJBW - Australasian Investment Forum John Stanhope Chief Financial Officer These presentations include certain forward-tooking statements that are subject te various risks and uncertainties. Actuai resutts, performance or achievements could be significantiy different fro
Slide 3: The story so far
‘The story so far What have been the trends in the business? “» Revenue mix shifting to currently “ We have too many of lower margin products everything Page 4
Slide 4: Where are we now?
_ Where are we now? | Page § ud
Slide 5: Movement Drivers of Actual Growth
Moverent Drivers af Actual Growth om Revenue Growth ore % Internet £1P solutions 8ge 42 Mooiles 2486 kG E Sensis 944 63 Le Pau 1V 156 29 og ISDN an Gy 42 ie Specialised Data 453. (5) PSTN Voice 3.818 C26) Page7 Labour Redundancy “> Salary increases » Controlled entities Goods & Services Purchased +3
Slide 6: 3G JV payment and cash flow
3G JV payment to Hutchison $312m “! International transmission Cashflow: “) Lower earnings, lower investment spend Free an Flow. MAE $2 O28. a $2.956m: a 1 Guidance "20, What does this mean for FY06 EBIT guidance ? ii
Slide 7: FY06 Earnings Guidance
_FY06 Earnings Guidance _ f FY06 EBIT change vs. FY05 (percent) 4 v 02%: 240%: SPOTS TOR: | os APES o's 20% a 22096 ERGO 2 | BOE CU Gua Gia bacon a ae ee ee “Reviess: \. ogy E : Prvready: AD DBY:: Page 1i What are we doing to change the business ? Wi Page 12
Slide 8: Focus on integrated services
Focus on integrated services “® Invest to take out complexity and cost “» Implement market based management to know the customer like never before “» Win in mobiles and broadband ~ targeting 55% retail broadband market share by FY08 s . : tt j; Pr read “ Invest in new services and applications ine t
Slide 9: One Factory
One Factory Our current network and IT infrastructure: “» Has significant duplication, complexity and under investment ~~ Is not equipped to detiver integrated applications & services ~ ts not cost effective We have implemented a One Factory model: ss Principle #4: Do it once «s Principle #2: Do it
Slide 10: Progress to date
“Progresstodate = What progress has already been made? joctun ready. Page 17, 1000 workforce reduction since June 30 (incl contractors) -} Cost reduction programs commenced sb 61H06 Capex saving of $300m identified and redirected to transformational projects Over 400 low value projects stopped Unsat
Slide 11: Vendors signed and transformation progress
Vendors signed: = Ericsson - 3G 850 network to over 5,000 sites -—p Cisco -IP core -} Tellabs - Multi-Service Edge/SDN replacement -—» Alcatel ~ IP DSLAMS and softswitches IT transformation: > Detailed scoping for all 26 Operational Support Systems (OSS) domains complete =} Siebel Business Support S
Slide 12: Regulatory environment issues
~} issue — structure and level of pricing “3 Our position - $30 averaged undertaking lodged “} Next steps - ACCC report to Government by end of March on price structure. ACCC assessment of price level undertaking expected shartly after Safe guard “} Issue — lack of regulatory certainty on new invest
Slide 13: Summary and Q&A
| A 1H result shows continuation of deteriorating Lae traditional product trends A new strategic direction has been announced were jocten ready a tObuU lS io _ We are setting the foundations for successful execution of strategy , Page 23 “elstra Telstra Corporation Limited GSJBW - Australasian Inves
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