Telstra : Financial results for the full year ended 30 June 2017 – CEO/CFO Analyst Briefing Presentation and Materials

17 August 2017‌‌‌‌‌‌‌‌

The Manager

Market Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000

Level 41

242 Exhibition Street

MELBOURNE VIC 3000 AUSTRALIA

General Enquiries 08 8308 1721

Facsimile 03 8600 9800

Dear Sir or Madam

In accordance with the Listing Rules, I enclose for immediate release to the market:

1. a presentation;

2. CEO and CFO speeches;

3. Telstra's Full Year Results and Operations Review; and

4. financial and statistical tables.

Telstra will conduct an analyst briefing on the full year results from 9.15am AEST and a media briefing from 11.00am AEST. The briefings will be broadcast live by webcast at https://www.telstra.com.au/aboutus/investors/financial-information/financial-results

A transcript of the analyst briefing will be lodged with the ASX when available.

This announcement has been released simultaneously to the New Zealand Stock Exchange. Yours faithfully

Company Secretary

Telstra Corporation Limited

ACN 051 775 556

ABN 33 051 775 556

17 August 2017

Disclaimer

These presentations include certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks,

uncertainties and other factors, many of which are beyond the control of Telstra, which may cause actual results to differ materially from those expressed in the statements contained in these presentations. For example, the factors that are likely to affect the results of Telstra include general economic conditions in Australia; exchange rates; competition in the markets in which Telstra will operate; the inherent regulatory ri sks in the businesses of Telstra; the substantial technological changes taking place in the telecommunications industry; and the continuing growth in the data, internet, mobile and other telecommunications markets where Telstra will operate. A number of these factors are described in "Our material risks" section of our Operating and Financial Review (OFR) which is set out in Telstra's financial results for the year ended 30 June 2017 which was lodged with the ASX on 17 August 2017 and available on Telstra's Investor Centre website www.telstra.com/investor.

These presentations are not intended to (nor do they) constitute an offer or invitation by or on behalf of Telstra, its subsi diaries, or any other person to subscribe for, purchase or otherwise deal in any debt instrument or other securities, nor are they intended to be used for th e purpose of or in connection with offers or invitations to subscribe for, purchase or otherwise deal in any debt instruments or other securities.

All forward-looking figures in this presentation are unaudited and based on A-IFRS. Certain figures may be subject to rounding differences.

All market share information in this presentation is based on management estimates based on internally available information unless otherwise indicated. All amounts are in Australian Dollars unless otherwise stated.

nbn™, nbn co and other nbn™ logos and brands are trademarks of nbn co limited and used under licence.

The Spectrum device, and ™ are Trade marks of Telstra Corporation Limited and ® Registered trade mark of Telstra Corporation Limited. Other trademarks are the property of their respective owners.

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Andrew Penn, Chief Executive Officer

Agenda

1.

Introduction and FY17 results summary

Andrew Penn

2.

Progress on delivery of strategy

Andrew Penn

3.

Capital allocation review outcomes

Andrew Penn

4.

Results and capital allocation review details

Warwick Bray

5.

Q&A

Andrew Penn, Warwick Bray

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• Domestic retail mobile

  +218,000 including 169,000 postpaid handheld

• Domestic retail fixed broadband

  +132,000

• Retail bundles +224,000 (88% of fixed data customer base)

Mobile service revenue growth +0.7% in second half,

EBITDA margin 43%, churn reduced

nbn™ market share1 of 52% with 676,000 new nbn connections

Final dividend: 15.5cps

taking total dividend for FY17 to 31cps

EPS4

32.5 cents, +2.8%

NPAT

$3.9 billion, +1.1%

Full year 2017 results | Headlines

Reported

Total income3

$28.2 billion, +4.3%

Guidance basis1

Total income3

$28.2 billion, +4.3%

Guidance and ex-MTAS & FAD2

Total income3

$28.2 billion, +5.9%

Reported

Guidance basis1

Guidance and ex-MTAS & FAD2

EBITDA

$10.7 billion, +2.0%

EBITDA

$11.2 billion, +4.5%

EBITDA

$11.2 billion, +5.0%

Continuing operations

Continuing operations

1. This guidance assumed wholesale product price stability and no impairments to investments, and excluded any proceeds on the sale of businesses, mergers and acquisitions and purchase of

   spectrum. The guidance also assumed the nbn™ rollout was in accordance with the nbn Corporate Plan 2016. Capex to sales guidance excluded externally funded capex. Guidance excluded the Ooyala impairment in FY16 and restructuring costs in FY17.

2. Guidance and ex-MTAS & FAD is on a guidance basis and adjusting FY16 for MTAS and FAD impacts of $408m sales revenue, $362m operating expenses and $46m EBITDA. Fixed Line Services FAD became effective on 1 November 2015, MTAS FAD became effective from 1 January 2016 and DTCS FAD became effective on 21 April 2016.

3. Total income excludes finance income.

4. Basic earnings per share from continuing and discontinued operations FY17 32.5 cents (FY16 47.4 cents).

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Full year 2017 results | Highlights

$5.2bn returned to

shareholders via dividends and share buy-backs

Strategic NPS +6 points over last 6 months

(flat compared to June 2016);

Episode NPS +2 points over last 6 months

(+3 points compared to June 2016)

Strong customer growth across

key segments:

NAS income growth of 30.6%

with 3pp improvement in EBITDA margin

Underlying core fixed

costs declined 3.5%, or

$244 million

4G network now reaching

99% of population

We have delivered against our guidance and strategy in the context of a highly competitive and dynamic market

1. Excluding satellite.

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