TELSTRA GROUP LIMITED - Annual Report 2021

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12 August 2021

The Manager

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

Office of the Company Secretary

Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA

General Enquiries 03 8647 4838 Facsimile 03 9650 0989 [email protected]

Investor Relations Tel: 1800 880 679 [email protected]

ELECTRONIC LODGEMENT

Dear Sir or Madam

Telstra Corporation Limited - Financial results for the full year ended 30 June 2021 – CEO/CFO Analyst Briefing Presentation and Materials

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

a) a presentation;
b) CEO and CFO speeches;
c) Telstra’s Full Year Results and Operations Review; and
d) financial and statistical tables.

Telstra will conduct an analyst briefing on its 2021 full year results from 9.15am AEST and a media briefing from 11.00am AEST. The briefings will be webcast live 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.

Authorised for lodgement

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Sue Laver Company Secretary

Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556

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CEO & CFO SPEECH NOTES

12 AUGUST 2021

TELSTRA FULL YEAR RESULTS

ANDREW PENN – CEO

Slide 1 – Full year results 2021 - Andrew Penn Telstra CEO

Good morning and welcome to Telstra’s results announcement for the full year ended 30 June 2021. A year in which we saw our underlying business return to growth. A year in which we continued to make strong progress against our T22 strategy.

This morning I will make some introductory remarks and take you through an overview of our results. Vicki will then take you through the numbers in detail before we move to Q&A.

Before I start I wanted to thank you for attending virtually. It’s been a trying 18 months for all of us and my thoughts go out to those in lockdown and those families and businesses doing it tough. I hope you and your families are staying safe.

Slide 2 – Delivering on our strategy

2021 was a significant year for Telstra. It was a crucial milestone in our T22 journey.

It represents a turning point in our financial trajectory with second half underlying EBITDA up on the first half, guidance for FY22 underlying EBITDA in the range of $7.0-7.3bn representing mid to high single digit growth and FY21 NPAT and EPS up 3.4% and 2% respectively.

We have achieved this because we have stayed disciplined and focused on delivering what we said we would. Three years into what has been one of the largest and most ambitious transformations of a telco globally, we are now a vastly different company.

Since announcing T22:

we have radically simplified our business reducing the number of Consumer & Small Business plans from 1800 to 20. We have removed lock in contracts, excess data and many other fees. The number of calls coming into our contact centres has fallen by more than two-thirds and by the end of this financial year we expect to answer all calls from these customers in Australia;
We are also well progressed on the arrangements to bring our licensee stores back in house;
We have cut our workforce by one third reducing our direct and indirect headcount by more than 25,000 in response to the transfer of a material part of our business to the nbn and from our digitisation and efficiency initiatives;
we have also exceeded our target to recruit new capabilities in new areas such as software engineering, data analytics, cyber security and artificial intelligence with more than 1,500 new hires;
we have removed on average more than four layers of management
we have delivered cost reductions of $2.3 billion and are on track to deliver our T22 productivity target of $2.7 billion;
we have repositioned our investment in Foxtel, retaining access to key content for our customers and supporting its turnaround;
we have similarly repositioned our investment in Telstra Ventures which delivered a mark to market gain of $300m this year;
we have improved the performance of our health business and with Monday’s announcement regarding Medical Director, it is very well positioned strategically for the future;

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we have also successfully established InfraCo and we are progressing our corporate restructure. We will continue to focus on opportunities to realise additional value for shareholders on top of the $2.8bn deal on towers;
we have monetised over $2 billion of assets, further strengthening our balance sheet. In addition to our ordinary dividends, we have returned approximately 75% of the net one off payments from the nbn to shareholders and today we have announced an on-market share buy-back returning up to a further $1.35bn from the Towers deal; and
we have taken a leadership position on climate change and the environment and we have been certified carbon neutral since this time last year. We also continue to make progress on our two other climate targets, to reduce our absolute emissions by at least 50% by 2030 and to enable renewable energy generation equivalent to 100% of our consumption by 2025; and
importantly, through all of this change, we have seen positive movements in the way our customers and employees view us, with Strategic NPS increasing 15 points and employee engagement increasing 4 points.

It is clear in my mind that initially we did not respond quickly or significantly enough to the reality of the impact of the nbn on Telstra which, as you know, has a negative impact on EBITDA of at least $3.5bn per annum. Before T22 we were not focussed enough on transforming and improving the core business to mitigate this, we were too dependent on investments outside of the core.

We have addressed this and our T22 program has been a clear success. While we have more to do and we are determined to finish the job we will be announcing what comes after T22 and our strategy for the future at an investor briefing on 16 September. This will be firmly focussed on continuing to improve customer experience, driving growth and how we will be leveraging the foundation and capabilities we have built.

So with that now let me turn to the financial results for FY21.

Slide 3 – Financial headlines

Total Income for the year decreased 11.6 per cent to $23.1b on a reported basis.

Underlying EBITDA on a guidance basis, which excludes one-off NBN income and guidance adjustments, decreased 9.7 per cent to $6.7b.

Underlying EBITDA increased from $3.3b in the first half to $3.4b in the second half.

Underlying EBITDA included an in-year NBN headwind of $650m and an estimated $380m financial impact from COVID.

Encouragingly NPAT increased 3.4 per cent to $1.9b on a reported basis and Earnings Per Share was up 2% to 15.6 cents per share.

Free cashflow was up 11.6 per cent to $3.8b.

The Board has resolved to pay a fully-franked final dividend of 8 cents per share bringing the total dividend for the year to 16 cents per share.

We have also announced today returning $1.35bn to shareholders over the coming period through an on-market buy-back from the proceeds of the towers deal. This will bring total returns to shareholders from activities in FY21 to $3.25bn.

Slide 4 – Operating highlights

In terms of the operating highlights for the year.

We continued to see strong customer growth in mobiles albeit there is no doubt the market has slowed considerably due to COVID. This has included the sharp reversal of net immigration and population growth in Australia as well as hardware supply shortages.

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We added 101,000 net retail postpaid mobile services including 67,000 branded and 34,000 from Belong. Our branded performance reinforces the benefits of our clear leadership in 5G.

In Wholesale we added 240,000 services, and we added 892,000 IoT services.

Importantly, in mobiles, we saw our lead indicator – transacting minimum monthly commitment or TMMC, increase by more than $3. Our continued focus on building value in mobiles resulted in EBITDA growth of $170m.

In fixed we lost 69,000 net new retail bundles including 10,000 adds from Belong.

While we had negative net adds, Bundle and standalone data ARPU, excluding one-offs, in Consumer & Small Business stabilised. We continue to focus on building value in fixed through our focus on price, higher speed tiers, add-ons, improvements to Wi-Fi and our Smart Modem.

The Telstra Smart Modem is now in over 2.3 million homes and it has been key to keeping customers connected when working and studying from home.

Telstra TV is keeping them entertained and through it, more customers are watching Foxtel’s Kayo and Binge streaming products.

Last week Foxtel reported paid streaming subscribers were up 155% to over 2 million. That exceptional subscriber growth has Foxtel, and our investment in Foxtel, well positioned for the future and validates our strategy to restructure and retain our investment giving us continued access to great content for our customers.

Telstra Health also had a strong year operationally and strategically. Revenue was up 6% in FY21 and we are confident Health will see high teens organic revenue growth in FY22.

COVID has highlighted the importance of digital health and has driven growth to key platforms such as virtual health care and electronic and real time prescribing. Notwithstanding the strong demand, key health care organisations have understandably been focussed on their own COVID responses and this has disrupted a number of contracts in our pipeline. This has included electronic medical record and integration opportunities – albeit we expect these to be just timing delays.

Also, as you saw earlier this week, we have entered into binding agreements to acquire Medical Director, a key provider of practice management software to GPs in Australia. As you would appreciate GPs play a central and key role in the health care system. A number of our digital services already integrate into their practice management systems. This acquisition will enable us to supercharge the digitisation of this critical part of the health care system and comes on the back of our announced acquisition of specialist billing and clinical coding software company PowerHealth in June.

It was also a very strong year for Telstra Ventures where on a mark to market basis, the value of our investment increased almost $300m. Telstra Ventures is one of the most successful corporate backed venture firms globally. Not only have our investments given us access to key insights, technologies and innovation, of the 74 start ups Telstra Ventures has invested in, 12 have achieved Unicorn status with a value of more than $1bn and 4 have achieved a value of more than $10bn.

In customer experience Episode NPS improved nine points in the year and six points in the last six months. Similarly, Strategic NPS improved seven points in the year and two points in the last six months.

These improvements are evidence that the many initiatives under our T22 program in simplifying and digitising the business are having a positive impact on customer experience. Customer complaint levels are now at their lowest level since the migration to the nbn began.

I know that not all aspects of customer experience are yet where they need to be, and we have more work to do. Nonetheless, I am confident these initiatives, combined with our decisions to have all

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inbound customer calls answered in Australia and to bring our branded retail stores back in house, will deliver further improvements.

Finally, on our operating highlights, we have made very strong progress in our productivity program. For the year total operating expenses were down $1.8bn, more than 10% and underlying fixed costs were down $490m.

Slide 5 – Underlying EBITDA growth ambition

So, it is clear we are building financial momentum.

The left-hand side of this slide shows the growth we achieved in Underlying EBITDA from the first half to the second half this year.

The chart on the right shows the evolution of our full year Underlying EBITDA including guidance for FY22 of $7.0 – 7.3b and the aspiration to be in the range of $7.5 – 8.5b in FY23.

As you know we communicated the $7.5 – 8.5b range as that required to support a 16 cents dividend under our dividend policy. We plan to update how we articulate our financial aspirations in conjunction with our strategy briefing in a few weeks. However, to be clear we are not changing our outlook and we continue to aspire to be in this range, I am just noting that our 8% ROIC target is in the bottom half.

I am also required to point out that these statements for FY23 are not guidance. They are aspirations or ambitions which means there are greater risks and uncertainties associated with them compared to our normal guidance statements.

Nonetheless the charts clearly demonstrate why I say we are at a turning point.

Slide 6 – Underlying EBITDA growth drivers

While there are many things that support the trajectory of Underlying EBITDA, three in particular are important.

Firstly mobile services revenue. Through our continued focus on building value, we achieved mobile service revenue growth of 3.7 per cent in the second half, 5.2 per cent excluding international roaming. This was the first period of growth in four years with further growth expected next year.

Secondly, and as I have already mentioned, we have continued to make strong progress on our productivity program reducing underlying fixed costs by $490m in FY21 with another approximately $430m expected in FY22.

Thirdly, the major headwinds that we have been facing from the migration to the nbn, are coming to an end. The in-year nbn headwinds peaked in the second half of FY20, reduced in FY21, and will be substantially less in FY22 with the majority coming between now and December.

Slide 7 – T22 achievements to date

With that, let me turn back to this year and comment on our progress with T22.

We have completed or are on track to deliver around 80 per cent of our T22 scorecard metrics.

We now have 8.8 million services on our 20 new simplified Consumer and Small Business plans. We have 3.5 million customers signed up to our rewards program, Telstra Plus, and we are seeing strong engagement from these customers.

Indeed, NPS for customers who are also members of Telstra Plus is around 20 points higher than customers who are not.

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We have rationalised the number of Enterprise active products by more than half and we have launched new Adaptive Networks and Adaptive Mobility products to provide more flexibility to customers and support a return to growth.

For Consumer and Small Business customers, digital sales interactions are up 9 percentage points to 39 per cent. Overall, almost three quarters of all service interactions with customers are now digital.

Under our T22 strategy, our aspiration had been to reduce the number of calls to our contact centres by at least two thirds by FY22. With the acceleration to digital we have achieved this aspiration one year early.

We are also on track with the transition to full ownership of Telstra branded licensee stores and we have reached agreement with most licensees.

We have also met our T22 target to reduce our direct workforce by 8,000 net, excluding hires due to COVID workforce restrictions.

Whilst we have completed our T22 reductions, we remain a large organisation in a dynamic environment and there will always be workforce changes across Telstra as we work to improve customer experience, the nbn transition is finalised, technology continues to automate and digitise parts of our business.

We have further progressed our journey to introduce agile ways of working and today we have around 17,000 people across the business working in Agile.

We have a proud history of building Australia’s – and even the world’s – leading mobile networks. And we’re continuing that with 5G.

Our competitors like to talk up their 5G networks, but they’re not in the same league. Our 5G network is now more than twice the size of our next nearest competitor. We cover more than 75% of the population and our customers know this coverage matters, with more than 1.6 million 5G devices on already connected.

Importantly, while we continue to roll out 5G, customers will use both 4G and 5G as they travel, which is why combined average speeds are the most important metric. And on this measure, Telstra’s network outperforms all of its competitors for both download and upload.

The 1000MHz of 26GHz spectrum we acquired at auction earlier this year gives us a 10 fold increase in capacity in hot spots. This is significant as we ramp up the rollout of mmWave beyond the five major capital cities and more compatible devices are released.

In regional Australia, we have announced almost half a billion dollars of additional investment in our networks to ensure we maintain our competitive advantage and continue to maintain and improve connectivity for regional customers.

I am pleased therefore with the Minister’s decision to not follow the ACCC’s advice in relation to the low band spectrum auction later this year. This was an important decision for our customers in regional Australia particularly as we move to close 3G to focus on 4G and 5G.

Not surprisingly, we continued to lead the market in the major mobile industry network performance benchmarks in the year, including umlaut where we ranked #1 for best in test and best in data.

Turning to Infrastructure.

Telstra InfraCo has now completed its first full year as a fully operational business function. InfraCo Fixed passive income increased 0.9 percent to around $2.2b, and InfraCo Towers income increased 4.3 percent to $340m.

The part sale of our Towers business announced in June and which we expect to complete this quarter, reinforces the value of our infrastructure assets. The financial outcomes of the transaction –

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a valuation of Telstra InfraCo Towers at $5.9 billion, representing an FY21 pro forma EV to EBITDA after leasing multiple of 28x – clearly demonstrate this.

We have also continued to make progress to implement the proposed legal restructure we announced in November of last year. This includes working closely with our partners, our people and stakeholders to navigate the range of commercial, regulatory and operational requirements and approvals.

The proposed restructure is complex and involves the creation of separate subsidiaries including InfraCo Fixed, InfraCo Towers, ServeCo and Telstra International under a holding company.

We expect the restructure to be undertaken by way of scheme of arrangement. It was our intention to seek shareholder approval for the scheme at this year’s AGM. However, we now aim to do so at a separate general meeting before the end of this year.

Let me also comment on our recent announcement confirming we are in discussions regarding Digicel. As we said in the ASX statement, the discussions are incomplete and it is not certain a transaction will proceed.

Given the nature of these discussions, I am not able to say more at this stage other than any transaction will have to meet certain financial parameters. These include Telstra’s financial investment being the minor economic portion of the overall transaction with all other capital being resourced on a non recourse basis. Telstra would own Digicel with appropriate risk protections and consolidate it in our financial results.

Digicel Pacific is a commercially attractive asset, enjoying a strong market position in the South Pacific region. It generated EBITDA of $US235 million in calendar 2020 with a strong margin and has an extensive network.

But let me also strongly reiterate the comments from our Chairman that we will only proceed with a transaction if it is in the interests of our shareholders.

Slide 8 – T22 Strategy scorecard

Turning to our T22 scorecard.

There are two things you will notice on the scorecard – firstly, with a year to go on T22 there are more ticks than dots and secondly, there are three times as many greens than ambers and reds.

In the period, we completed six measures to bring the total completed to date to more than half.

There are however, some measures rated amber or red and I want to take a moment to explain why.

Firstly, underlying ROIC. Our target is to achieve around 8 per cent and with the financial ambitions I spoke to earlier, we can see our path to doing so in FY23.

The building of our new technology stacks is very well progressed but as in many IT projects of this scale there are a few timings that have shifted.

Active My Telstra app users have grown by more than 500,000 in the last two years to 4.5 million. This is below where we had planned but reflects good progress and active users across Consumer and Small Business digital platforms have grown to 6.5 million.

We need to build more momentum in average services per customer and we are continuing to target increased multi-product holdings through entertainment, mobile assurance and gaming add-ons.

We are behind where we wanted to be on achieving top quartile cost metrics for a full service telco. On this measure we set ourselves a very ambitious target three years ago. We have since achieved $2.3b of underlying cost out, increased our overall cost out ambition, and delivered on our commitment to reduce total costs.

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This strong progress on costs has improved our benchmarking position substantially and we expect further improvement in FY22. However, we expect to finish FY22 just outside the top quartile given our global peers are also improving more than we had originally anticipated.

Similarly, on labour costs to sales, although we have achieved our T22 cost reductions, this metric has been impacted by lower hardware revenue.

Our employee engagement did fall a few points this year however, we were pleased it remained high with a score of 78 consistent with other high performing companies, through a period of great uncertainty and relentless change.

Slide 9 – FY22 priorities

If I was to summarise FY21 into a single sentence it would be: We stayed disciplined on the execution of our T22 strategy through uncertain times, our hard work is paying off and the turnaround is here.

We are earning the trust of our customers, including by removing pain points and raising the bar on doing business responsibly.

Our networks remain Australia’s biggest and best. Agile is transforming how we work and, combined with our hybrid working model, is helping our people to feel supported and perform at their best notwithstanding COVID related restrictions.

I said in my opening that 2021 was a significant year for Telstra. We have reached an important turning point financially and we look to 2022 with great confidence in our ability to deliver our strategic ambitions.

In this final year of T22 we will be:

Continuing to improve our customer experience including for regional customers;
• Completing our Digitisation program, including remaining focused on simplification and migration of our customers to the new stack;
Completing our group restructure, further operationalising Telstra InfraCo and driving value from our passive assets;
Extending our leadership in 5G, including stand-alone core;
Continuing to grow core connectivity and services, and accelerating the growth of our new businesses; and finally,
delivering on our financial commitments to our shareholders.

Delivering these priorities is key to us finishing the T22 job and setting us up for what comes next. We have done the hard transformational work. We have built the capabilities to take advantage of the opportunities ahead.

As I said in my introduction, I am excited to announce that we will be communicating what comes after T22 and our strategy for the future at an investor day on 16 September.

Can I close by acknowledging that the progress we have made is due to the combined efforts of our many dedicated employees. Despite the disruptions and impact on them personally from COVID, every day they have focussed on working for our customers and keeping Australians connected and for that I want to sincerely thank them.

Thank you and with that I will hand over to Vicki before we open for Q&A.

VICKI BRADY – CFO

SLIDE 10 –FULL YEAR 2021 RESULTS

Thanks Andy.

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Good morning and thank you for joining us.

I’d like to begin by recognising that I am joining you from the land of the Darramuragal people. I acknowledge their ancient and ongoing connection to this land and their culture. And I welcome any Aboriginal and Torres Straight Islanders joining us today.

This morning I’ll go through our full year results and highlight some important trends in the second half, which illustrate the momentum we’ve built towards underlying growth.

I will also discuss expenses, free cashflow, dividends, capital and FY22 guidance.

SLIDE 11 – INCOME STATEMENT

Turning to our FY21 performance on slide 11.

The numbers on the left are our statutory results. The numbers on the right are ‘Reported Lease adjusted’, which include depreciation of mobile handset lease expense as opex. This provides a likefor-like, year-on-year view, given our exit of mobile lease plans. This is the view we use when managing the business, and which today’s presentation will focus on. Pleasingly, FY21 is the last year this adjustment will be required.

For FY21, income was $23.1 billion, down 11.6 percent.

Total operating expenses declined 10.2 percent, including a $490 million, or 8.1 percent decline in underlying fixed costs.

On a reported lease adjusted basis, EBITDA declined 11.5 percent to $7.4 billion. This included a $734 million reduction in net one-off nbn receipts, and a $487 million positive movement in guidance adjustments due to an impairment in FY20 and gains on sale in FY21.

Underlying EBITDA for the year was in line with our FY21 guidance, declining 9.7 per cent or $720 million. This included an estimated $650 million of in-year nbn headwind, and approximately $180 million of negative year-on-year impacts related to COVID-19.

At our half year results in February we committed to growing underlying EBITDA half-on-half, and I’m pleased to say we’ve achieved this.

Depreciation and Amortisation declined 8.1 percent, or $397 million, on a reported lease adjusted basis, due to assets associated with nbn completion, and legacy IT assets fully depreciating. We would expect around $100 million of further decline in FY22 in the ordinary course.

However, given our shift to hybrid working, we will continue to assess our property requirements and may exit some leases early. This may have a short-term negative impact on D&A but should result in financial benefits overtime.

Net finance costs declined due to both our reduction of net debt and lower average borrowing costs. We expect this trend to continue in FY22.

Income tax expense declined 44 percent, as we have used some capital losses to offset material profit on asset sales during FY21. Excluding one-offs our effective tax rate was close to 30 percent.

Reported NPAT grew 3.4%, to $1.9 billion.

SLIDE 12 – INCOME BY PRODUCT

Looking now at income by product, on slide 12.

Underlying income declined $2.25 billion or 9.3 percent.

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This decline was around 3% excluding in-year nbn headwinds, lower international roaming due to travel restrictions, and a reduction in low-margin hardware.

For example, although mobile income declined $820 million, this was largely due to a $750 million decline in hardware revenue, as handset and tablet volumes fell due to lower foot traffic in our stores, customers holding handsets for longer, and higher outright purchases through independent retailers.

Fixed-C&SB income remained impacted by nbn migration, legacy voice decline, Foxtel from Telstra decline and remediation credits.

Fixed-Enterprise declined due to competition and technology disruption in data & connectivity, as well as legacy calling and equipment decline not being offset by cloud and NextGen services growth in NAS.

The decline in Fixed-Wholesale is attributable to legacy products, nbn headwinds, and commercial works.

We saw growth in recurring nbn DA, which represents government backed contracts indexed to inflation, with an average of 26 years remaining, for use of our InfraCo fixed assets.

Other revenue grew. This included Health revenue growing 6 percent in FY21. We are confident Health will see at least high teens organic revenue growth in FY22.

Turning to EBITDA.

SLIDE 13 – EBITDA by product

Our full year Underlying EBITDA declined $720 million, reflecting ongoing nbn headwinds, legacy declines, and the financial impacts of COVID-19.

In FY21, mobile EBITDA grew by $170 million. This was driven by benefits from transitioning our customers off subsidy and lease plans, and ongoing productivity, despite around $200 million of decline in international roaming revenue.

As expected, and in line with migration to nbn and legacy decline, all Fixed products decreased.

I will address Mobile and Fixed products in more detail shortly.

Global EBITDA was largely flat in constant currency, and excluding one-offs in the prior period, as initiatives to reduce costs were offset by revenue declines.

nbn recurring grew.

Other declined, largely due to non-operating accounting adjustments.

Despite declines, there has been a significant improvement in the trajectory of the business during the year.

The second half has clear indicators of momentum, especially in our mobile business.

This is further illustrated on slide 14.

SLIDE 14 – EBITDA by half shows improving momentum

Here you can see the trend in our underlying EBITDA by half.

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As you can see in the dark blue boxes at the top of the graph, between first half FY20 and first half 21, underlying EBITDA declined $551 million. However, between second half FY20 and second half FY21, this moderated to a $169 million decline.

Looking sequentially, the light blue arrows show that we have gone from a $210 million decline between second half FY20 and first half FY21, to achieving growth of $41 million in the second half.

This momentum is a result of improved product trajectory that includes Mobile growth and FixedC&SB stabilising, as well as ongoing productivity and reducing nbn headwinds.

I will now take you through the key products trends.

SLIDE 15 – Product highlights– mobile momentum

Firstly, looking at mobile.

We have delivered on all our FY21 mobile market commitments, and now have clear momentum which is flowing through to the financials.

Let me take you through four important aspects of this:

Firstly, top left you can see Mobile service revenue, the key driver of mobile profitability, which has returned to growth. In the second half of the year service revenue, excluding international roaming, grew 5.2 percent, up from 0.7 percent in the first half.

We added 101,000 postpaid handheld customers, including 34,000 Belong SIOs and a strong contribution from Enterprise. This increase is despite a decline in Australia’s population, a trend which is expected to continue to impact industry growth.

In addition, 75 percent of mass market postpaid customers are on new simplified plans providing pricing flexibility.

Secondly, top right you can see Mobile EBITDA, which grew an impressive $297 million in the second half vs pcp, as service revenue growth flows through to earnings.

Thirdly, Bottom left, you can see postpaid handheld ARPU, which grew 1.3 percent in the second half compared to the same period last year.

Our lead indicator of postpaid handheld ARPU, Transacting Minimum Monthly Commitment, or TMMC, has now grown by more than $5 since FY19. We can see this increase and pricing changes are flowing through to ARPU.

However, the growth of Reported postpaid handheld ARPU was somewhat offset by four negative impacts:

Firstly, International roaming decline;
Secondly, accounting changes including new plans which allocate more revenue to hardware, and a shift from full revenue recognition for some add-ons to commission;
Thirdly, lower out of bundle excess voice and data fees; and
Finally, dilution from a higher mix of Belong customers.

If these negative impacts are excluded, postpaid handheld growth would have been in the high-single digits.

By segment, we achieved strong Consumer postpaid ARPU growth in the second half, of 7.5 percent on pcp. This was offset by Small Business and Enterprise declines.

Encouragingly, on a sequential basis Small Business ARPU grew, and Enterprise ARPU flattened, giving us confidence that both segments will follow Consumer to growth in FY22.

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With TMMC being accretive to ARPU, and pricing changes continuing to flow through, we expect reported postpaid handheld ARPU growth in FY22. This is despite the identified negative impacts I just mentioned, except for roaming, continuing to drag.

Forth, on the bottom right, you can see that Prepaid handheld performance was strong, with FY21 revenue growing 4.7 percent. This was due to a 95,000 increase in unique users, and higher ARPU.

Finally, in other mobile categories:

Mobile broadband declined 4.4 percent, mainly due to higher out of bundle enterprise revenue in the pcp and a reduction in prepaid , and
Wholesale grew revenue 21 percent, with net adds of 240,000, and largely flat ARPU.

These factors give us confidence that mobile EBITDA growth will continue thanks to a combination of service revenue, the final benefits of migrating customers off subsidy and lease plans and ongoing productivity.

SLIDE 16 – Product highlights – Fixed approaching inflection

Turning now to our Fixed portfolio.

We have not achieved the same momentum in Fixed as we have in mobile. Products within the Fixed portfolio are at different stages, however in all fixed products we can see an inflection point, as we address challenges head-on.

We have now absorbed around 90 percent, or around $3.2 billion, of net negative recurring headwind from the nbn migration.

We are further through this headwind in C&SB than Enterprise.

This means that in Fixed-C&SB, we have reached an inflection point, with the nbn driven decline now substantially complete.

The rate of decline has reduced in the second half of FY21, and is stabilising sequentially. We expect this to continue in FY22, before EBITDA begins to grow in FY23.

In FY21, bundle and data connections declined 69,000, and we saw higher churn as customers continued to migrate to the nbn. We now have less than 150,000 services to migrate to the nbn in FY22 – less than half the volume of FY21. Our churn on nbn is lower than legacy, giving us confidence of trends improving in FY22.

ARPU has bottomed and is now expected to grow. The decline in this period was due to remediation credits and other one-offs. TMMC was accretive to ARPU, and 85 percent of mass market customers are now on simplified plans.

We remain focused on increasing ARPU through plan mix and add-ons, while maintaining our premium through differentiation.

We increased the percentage of customers on more profitable higher speed plans, with 6 percent of customers now on plans of 100Mbps or greater. And we have well over 1 million carrier billed streaming and Foxtel from Telstra services.

Digitisation represents an opportunity to deliver a step change, in both customer experience and productivity. We are seeing these benefits in mobile, and expect similar benefits to follow in mass market fixed, as further digitisation capabilities are enabled.

In FY21 we also launched 5G Home Internet and we remain excited by the opportunities to drive onnet growth.

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Our nbn reseller EBITDA margin in FY21 was around 5 percent. Despite challenges, we maintain our ambition to reach mid-teens nbn resale margin in FY23.

Turning to Fixed-Enterprise.

In Data & connectivity we are seeking to stabilise the portfolio and position it for growth by FY24, as we transition from virtual private networks to integrating over-the-internet technologies such as SDWAN, with Telstra Fibre or NBN access.

During the year, we successfully re-signed key customers, which helped maintain our T-Fibre SIOs, and increase network capacity for future services growth. Total-SIOs declined as lower-value copper connections were impacted by consolidation and nbn migration.

While ARPU compression continued to occur, we made material progress in modernising the product portfolio with Adaptive Networks, which has been well received by customers.

In FY22 we will have an increased focus on leveraging our extensive fibre footprint, complemented by reselling nbn, and continued investment in capabilities. This is expected to deliver a lower rate of decline in FY22.

Disappointingly, NAS income and EBITDA did not grow at the rate we expected in FY21, given the larger than anticipated decline in high-margin legacy calling apps, and under performance in professional services. We are confident that the workforce changes we put in place, which temporarily disrupted our execution, have set us up for future benefit.

We remain focused on executing our NAS NextGen strategy, targeting growth in strategic areas including cloud, IoT, security, managed and professional services.

We expect to achieve mid-teens NAS EBITDA margins in FY22.

The significant restructuring initiatives we undertook in late FY21 will support our commitment to deliver overall Enterprise revenue & EBITDA growth in FY22, across mobile, fixed & International.

Turning to Fixed-Wholesale, where you can see that 55 per cent of the portfolio is now ongoing revenue.

Our outlook for this product has not changed. We are targeting to maintain around $350 million of EBITDA per annum from FY23 once the portfolio stabilises and returns to growth.

SLIDE 17 – OPERATING EXPENSES

Turning to our operating expenses, which you can see on slide 17.

We are pleased to have achieved a significant reduction in costs during FY21. Total costs declined 10.2 percent, and underlying costs declined 9.3 percent.

An increase in nbn payments of $244 million, was more than offset by the productivity gains we achieved. Other sales costs declined $862 million due to lower hardware costs.

Underlying fixed costs reduced by $490 million, as our T22 strategy continued to deliver productivity and simpler, better outcomes for our customers.

This means that since FY16 we have delivered $2.3 billion of cumulative cost reductions, and we are confident we can deliver our $2.7 billion target by the end of FY22.

We continue to target top quartile cost metrics for a full-service telco. We expect to finish FY22 just outside the top quartile, given our peers are improving more than we had originally anticipated.

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Cost reductions in FY22 are expected to be delivered from digitisation benefits, including product simplification and customer self-service tools, reductions in IT and Network costs, as well as ongoing vendor optimisation and labour efficiencies.

SLIDE 18 – FREE CASHFLOW

Turning to free cashflow, which you can see on slide 18.

We are very pleased with the improvement we have delivered in free cashflow.

Free cashflow, after operating lease payments, increased 11.6 percent to $3.8 billion, slightly above the top end of guidance. This was due to working capital improvements, more than offsetting lower EBITDA.

Working capital improvement reflects reduced receivables from lower sales including lower handset and roaming revenue. In addition, focussed initiatives were delivered resulting in improved collections performance in both Enterprise and C&SB.

In FY21, we also purchased 1GHz of mmWave spectrum for $277 million, with payment terms spread over five annual instalments.

We expect to receive $2.8 billion of net proceeds from the sale of 49 percent of InfraCo Towers in Q1 of FY22. We were very pleased with the transaction announced in June, which valued the business at $5.9 billion or 28x EBITDA after Leases.

We will return up to $1.35 billion of these net proceeds through an on-market buyback, expected to commence mid-September.

SLIDE 19 – DIVIDENDS

Moving to dividends, the Board has resolved to pay a final dividend for FY21 of 8 cents per share fully franked, including an ordinary dividend of 5 cents, and a special dividend of 3 cents.

This brings the total FY21 dividend to 16 cents per share. The total FY21 ordinary dividend represents a 103 percent payout ratio of underlying earnings, and is well supported by cashflow.

The FY21 dividend represents a 59 percent payout of free cashflow, after operating lease payments, less net finance costs paid.

Consistent with our commitment to return in the order of 75 percent of net-one-off nbn receipts, we have returned 74 percent of receipts received life to date since FY18.

SLIDE 20 – CAPITAL POSITION

Turning to our capital position, which you can see on slide 20.

We reduced net debt by $1.5 billion in FY21, and we remain within our comfort ranges for all our credit metrics.

We remain committed to our capital management framework, including balance sheet efficiency and settings consistent with an A-band credit rating.

We successfully completed our T22 $2b asset sale program, and announced an up to $1.35b buyback from the Towers sale proceeds, re-enforcing this commitment.

Our target for underlying ROIC is around 8 percent by FY23, with a long-term ambition to grow ROIC.

SLIDE 21 – FY22 GUIDANCE

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Turning now to FY22 guidance, which you can see, along with the assumptions and conditions upon which we have provided them, on slide 21.

Our Underlying EBITDA FY22 guidance implies mid-single digit growth or around $450 million at the mid-point.

This guidance is despite remaining in-year nbn headwinds of approximately $350 million in FY22. It also includes around $50 million of non-cash accounting headwind from insourcing our Telstrabranded retail stores, and no return of international mobile roaming.

Pleasingly in FY22 we maintain a strong outlook on free cashflow supported by further improvement in working capital, despite our expectation that one-off nbn DA EBITDA will reduce by over $550 million.

Proceeds from the InfraCo Towers sale, M&A, and payments to acquire licensees under our strategy to transition to full ownership of our branded stores, are excluded from guidance free cashflow.

SLIDE 22 – Building financial momentum

To conclude, FY21 was an inflection point for the financial performance of our business.

In the second half, you can clearly see strong momentum leading to sequential growth in underlying EBITDA.

We have confidence this momentum will continue, thanks to ongoing mobile growth, continued delivery of our productivity program, solid free cashflow including sustained improvement in working capital, and a strong balance sheet.

We will continue driving the performance and recognition of our world-class infrastructure assets, as we illustrated through our agreement to sell 49 percent of our Towers business.

In FY22, we expect to revise our disclosure to further elevate InfraCo Fixed and Towers, giving more focus and clarity on their performance.

We are also focussed on diversifying our growth across other verticals including in Energy. Telstra Health is well positioned, and we are excited by the in-organic growth including from the recently announced acquisitions of Medical Director and PowerHealth.

By staying disciplined and focused on delivering our strategy, we have put the business on course for growth in FY22, and on track to meet our FY23 ambitions.

We look forward to talking more about our growth outlook at our September Investor day.

Finally, I would like to take this opportunity to add my thanks and recognise our dedicated teams right across Telstra.

I will now hand over to Nathan to take us through Q&A.

[END]

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Operating and financial review

Full ear results and o erations review y p

Summary financial results	FY21	FY20	Change
	$m	$m	%
Revenue(excludingfinance income)	21,558	23,710	(9.1)
Total income(excludingfinance income)	23,132	26,161	(11.6)
Operatingexpenses	15,470	16,951	(8.7)
Share of netprofit/(loss)from equityaccounted entities	(24)	(305)	92.1
EBITDA	7,638	8,905	(14.2)
Depreciation and amortisation	4,646	5,338	(13.0)
EBIT	2,992	3,567	(16.1)
Net finance costs	551	771	(28.5)
Income tax expense	539	957	(43.7)
Profit for theperiod	1,902	1,839	3.4
Profit attributable to equityholders of Telstra Entity	1,857	1,819	2.1
Capex1	3,020	3,233	(6.6)
Free cashflow	4,887	4,034	21.1
Earningsper share(cents)	15.6	15.3	2.0

Capex is measured on an accrued basis and excludes spectrum and guidance adjustments, externally funded capex, and capitalised leases.

Reported results

Telstra delivered FY21 results in line with guidance showing the business had reached an important turning point in its financial performance and outlook, with financial momentum building and the underlying business to return to full year growth in FY22.

On a reported basis, total income declined by 11.6 per cent and EBITDA declined by 14.2 per cent while NPAT increased by 3.4 per cent. Underlying EBITDA declined by 9.7 per cent on a guidance basis including an in-year nbn headwind of $650 million. Underlying EBITDA includes an estimated $380 million impact from COVID-19. Excluding the in-year nbn headwind, underlying EBITDA declined by approximately $70 million.

We continue to execute on our T22 strategy with around 80 per cent of our scorecard metrics completed or on track for delivery, and we are seeing the decision to be bold and transform the business for the future clearly paying off. Underlying fixed costs decreased by $490 million or 8.1 per cent bringing the total underlying fixed cost reductions to around $2.3 billion since FY16. We remain on track to meet our cost out target of $2.7 billion by FY22.

Our multi-brand strategy continued to deliver mobile SIO growth as we added 101,000 retail postpaid handheld mobile services including 34,000 from Belong, 95,000 retail prepaid handheld unique users, and 240,000 Wholesale services. We have expanded our 5G rollout to selected areas in more than 200 cities and towns across Australia and the network now provides 5G coverage to more than 75 per cent of the population. We now have around 1.6 million 5G devices connected to our network.

We have seen strong performances in our growth businesses during the year, including Telstra Health, Telstra Ventures and Foxtel, as well as progress on Telstra Energy. Foxtel reported record subscriber growth in FY21 with paid streaming subscribers increasing 155 per cent to over 2 million. This exceptional subscriber growth has Foxtel, and our investment in Foxtel, well positioned for the future.

The Telstra Board resolved to pay a fully franked final dividend of 8 cents per share, comprising a final ordinary dividend of 5 cents and a final special dividend of 3 cents. The total dividend for FY21 is 16 cents per share, fully franked. Telstra also provided financial guidance including assumptions on a range of metrics for FY22, showing the underlying business returning to full year growth.

Other information

Consistent with information presented for internal management reporting purposes, the result of each segment is measured based on its EBITDA contribution which differs from our statutory EBITDA. Refer to Note 2.1.1 in the Financial Report for further detail.

Commentary reflects statutory and management accounts reporting.

Telstra 2021 full year results | D 1

Operating and financial review

Results on a guidance basis1	Results on a guidance basis1	FY21	FY21	FY21 Guidance2	FY21 Guidance2	FY21 Guidance2
Total income		$22.9b		$22.6b to $23.2b
UnderlyingEBITDA		$6.7b		$6.6b to $6.9b
Net one-off nbn DA receiptslessnbn net cost to connect		$0.8b		$0.7b to $1.0b
Capex		$3.0b		$2.8b to $3.2b
Free cashflowafteroperatinglease payments		$3.8b		$3.3b to $3.7b

Guidance versus reported results1	FY21		FY21		FY21	FY20
	Reported results $m		Adjustments $m		Guidance basis $m	Guidance basis $m
Total income	23,132		(208)		22,924	26,141
UnderlyingEBITDA	7,638		(949)		6,689	7,409
Free cashflow	4,887		(1,075)		3,812	3,415

This guidance assumed no impairments in and to investments or non-current tangible and intangible assets, and excluded any proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum, and excluded the impacts of Pitt St exchange sale and leaseback. The guidance was based on management best estimates of nbn impacts including input from the nbn Corporate Plan currently published at time of issue of this guidance. Total income excludes finance income. Underlying EBITDA excludes net one-off nbn DA receipts less nbn net cost to connect, one-off restructuring costs and guidance adjustments but includes depreciation of mobile lease right-of-use assets. Capex is measured on an accrued basis and excludes spectrum and guidance adjustments, externally funded capex, and capitalised leases. Free cashflow defined as ‘operating cash flows’ less ‘investing cash flows’ less ‘payments for operating lease liabilities’, and excludes spectrum and guidance adjustments. Refer to the Guidance versus reported results schedule. The adjustments within the tables in this schedule have been reviewed by our auditors.
FY21 guidance revised at 1H21 results announcement on 11 February 2021.

On 12 August 2021, the Directors of Telstra Corporation Limited resolved to pay a final fully franked dividend of 8 cents per ordinary share, comprising a final ordinary dividend of 5 cents per share and a final special dividend of 3 cents per share. Shares will trade excluding entitlement to the final dividend from 25 August 2021 with payment to be made on 23 September 2021. The total dividend for FY21 is 16 cents per share, fully franked, including 10 cents ordinary and 6 cents special. This is in line with the FY21 dividend guidance we provided on 11 February 2021.

The ordinary dividend represents a 103 per cent payout ratio on FY21 underlying earnings[1] which is higher than the range indicated in our capital management framework to pay a fully franked ordinary dividend of 70 to 90 per cent of underlying earnings. The Board has decided for FY21 to exceed its preferred ordinary dividend payout ratio as a proportion of underlying earnings because (1) our ambition of delivering underlying EBITDA of $7.5 billion to $8.5 billion from FY23 onwards is achievable; (2) the free cash flow dividend payout ratio remains supportive and we retain a strong financial position; and (3) there are no other factors that would make the payment of the ordinary dividend at this level imprudent.

The special dividend represents a 128 per cent payout ratio of FY21 net one-off nbn receipts[2] . We have returned 74 per cent of cumulative net one-off nbn receipts since the beginning of FY18, consistent with our capital management framework to return in the order of 75 per cent of net one-off nbn receipts via fully franked special dividends over time.

Our FY21 underlying earnings were $1,191 million while net one-off nbn receipts were $561 million compared with underlying earnings of $1,224 million and net one-off nbn receipts of $1,075 million in FY20.

“underlying earnings” is defined as net profit after tax from continuing operations excluding net one-off nbn receipts (as defined in footnote 2), one-off restructuring costs and guidance adjustments (as defined in footnote 3).
“net one-off nbn receipts” is defined as net nbn one off Definitive Agreement receipts (consisting of PSAA, Infrastructure Ownership and Retraining) less nbn net cost to connect less tax.
Guidance adjustments included impairments in and to investments or non-current tangible and intangible assets, proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum, and excluded the impacts of Pitt St exchange sale and leaseback.

Given the status of our proposed legal restructure, in order for us to manage our ongoing continuous disclosure obligations the Board has determined that the Dividend Reinvestment Plan (DRP) will not operate for the final dividend for FY21. Our intention is to reinstate it when circumstances allow.

Segment performance

We report segment information on the same basis as our internal management reporting structure as at reporting date. Segment comparatives reflect organisational changes that have occurred since the prior reporting period to present a like-for-like view.

Segment total income

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----- Start of picture text -----

FY21 Telstra Consumer and FY20
Small Business
11% 11%
Telstra Enterprise
5% 7%
0%
54% Networks and IT 0%
52%
All Other
30%
30%
Telstra InfraCo 1
----- End of picture text -----

Excludes internal access charges

Telstra 2021 full year results | D 2

Operating and financial review

Total external income	FY21	FY20	Change
	$m	$m	%
Telstra Consumerand Small Business	12,342	13,474	(8.4)
TelstraEnterprise	6,985	7,743	(9.8)
Networks andIT	33	30	10.0
AllOther	1,230	1,940	(36.6)
TelstraInfraCo1	3,745	4,664	(19.7)
Internalaccess charges	(1,203)	(1,690)	28.8
Total	23,132	26,161	(11.6)

Includes internal access charges

On a reported basis, total income (excluding finance income) declined by 11.6 per cent to $23,132 million. On a guidance basis, total income (excluding finance income) was $22,924 million. Legacy product and service declines, lower hardware and equipment sales volumes, loss of international roaming revenue, and the nbn[TM] network rollout negatively impacted income. There were positive trends in mobile including further customer service additions, and an increase in postpaid Transacting Minimum Monthly Commitment (TMMC) and a return to postpaid average revenue per user (ARPU) growth in 2H21. Segment performance is on a reported basis unless otherwise stated.

Telstra Consumer and Small Business

Telstra Consumer and Small Business provides telecommunication products, services and solutions across mobiles, fixed and mobile broadband, media and digital content to consumer and small business customers in Australia. It also operates call centres, Telstra shops and the Telstra dealership network.

Income decreased by 8.4 per cent to $12,342 million impacted by a 6.8 per cent decline across fixed products including a 46.0 per cent decline in on-net revenue due to nbn migration and a 9.9 per cent decline in mobility revenue largely due to lower hardware revenue.

Telstra Enterprise

Telstra Enterprise provides telecommunication services, advanced technology solutions, network capacity and management, unified communications, cloud, industry solutions integrated and monitoring services in Australia and globally. It also manages our networks outside Australia in conjunction with the Networks and IT and Telstra InfraCo segments.

Income decreased by 9.8 per cent to $6,985 million impacted by a 9.3 per cent decline across fixed products including a 7.5 per cent decline in data and connectivity income due to a decline in services in operation (SIO) and ARPU, and a 10.0 per cent decrease in NAS income largely due to declines in calling applications and equipment sales.

Networks and IT

Networks and IT primarily support the revenue generating activities of the other segments. It builds and manages our digital platforms underpinning our customer digital experience, and software for all internal functions. Income increased by 10.0 per cent to $33 million.

Telstra InfraCo

Telstra InfraCo is responsible for key passive network assets including data centres, exchanges, poles, ducts, pits and pipes, whole fibre network, and mobile towers. This segment also includes Telstra Wholesale.

Income excluding internal access charges decreased by 14.5 per cent to $2,542 million due to expected declines from Telstra Wholesale legacy fixed products and commercial works supporting the nbn. This was partly offset by increased recurring nbn DA receipts in line with the progress of the nbn network rollout and receipts for access to passive infrastructure, and an increase in wholesale mobility. Including internal access charges, income decreased by 19.7 per cent to $3,745 million. Internal access charges in FY20 are based on a different asset perimeter and pricing to FY21 and therefore numbers are not like-for-like.

All Other

All Other includes certain items of income and expense relating to other operating segments and corporate functions recorded by our corporate areas. This category includes Product and Technology Group, Global Business Services (GBS) and Telstra Health. Income decreased by 36.6 per cent mainly due to declines in Per Subscriber Address Amount (PSAA) receipts and Infrastructure Services Agreement (ISA) ownership receipts in line with the progress of the nbn network rollout partly offset by $78 million in proceeds from the sale of our investment in Sensis.

Product performance

Product revenue breakdown

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----- Start of picture text -----

FY21 Mobile FY20
Fixed - C&SB
[1%]
4% [5%2%] 3% [8%]
6% Fixed - Enterprise
7%
6% 40% Fixed - Wholesale 39%
7%
Global
16%
Recurring nbn DA 16%
21% One-off nbn DA & 19%
connection
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Telstra 2021 full year results | D 3

Operating and financial review

Product income	FY21	FY21	FY20	FY20	Change	Change
	$m		$m		%
Mobile	9,310		10,130		(8.1)
Fixed–C&SB	4,736		5,083		(6.8)
Fixed– Enterprise	3,724		4,106		(9.3)
Fixed– Wholesale	1,356		1,872		(27.6)
Global	1,496		1,725		(13.3)
Recurringnbn DA	908		874		3.9
One-off nbn DA& connection	1,050		2,004		(47.6)
Other	552		367		50.4
Total	23,132		26,161		(11.6)

EBITDA contribution margins1	FY21 %	2H21 %		1H21 %		FY20 %
Mobile	39.2	41.4		37.0		34.3
Fixed – C&SB	5.8	5.1		6.4		11.2
Fixed – Enterprise	23.8	24.4		23.2		28.0
Fixed – Wholesale	45.8	42.3		48.4		47.9
Global	22.5	23.2		21.7		21.9
Recurring nbn DA	94.7	94.7		94.7		93.8
Net one-off nbn DA less nbn net cost to connect	76.4	71.9		79.0		76.6

The data in this table includes adjustments to historic numbers to reflect changes in product hierarchy.

Product performance is on a reported basis unless otherwise stated.

Mobile

Mobile income declined by 8.1 per cent to $9,310 million largely due to lower hardware volumes (-$748 million) and international roaming declines (~-$200 million). Mobile services revenue, the key driver of mobile profitability, increased by 3.7 per cent or 5.2 per cent excluding international roaming in 2H21. Retail SIOs increased by 696,000 bringing the total to 19.5 million. We now have 8.6 million postpaid handheld retail SIOs, an increase of 101,000 including 34,000 from Belong and a strong contribution from Enterprise.

Postpaid handheld services revenue decreased by 1.7 per cent to $4,830 million as net adds were offset by a 3.7 per cent ARPU decline from $48.96 to $47.16. Excluding the international roaming decline, ARPU was broadly flat as benefits from TMMC improvement in mass market and pricing changes were offset by out of bundle revenue decline, accounting for new plans which allocate more revenue to hardware, and dilution from Belong customer mix.

Prepaid handheld services revenue increased by 4.7 per cent to $809 million as unique users increased by 95,000. ARPU increased 7.0 per cent from $19.46 to $20.83.

Mobile broadband services revenue decreased by 4.4 per cent to $612 million largely due to a decline in prepaid, and out of bundle Enterprise revenue in FY20.

Internet of Things (IoT) services revenue grew by 1.2 per cent to $246 million from increasing carriage and managed services revenue.

Wholesale services revenue increased 20.8 per cent to $267 million. Wholesale SIOs increased by 240,000 bringing the total to 1.7 million as Mobile Virtual Network Operators (MVNO) plans on the Telstra mobile network grew in popularity.

Hardware, interconnect and other revenue decreased by 24.5 per cent to $2,529 million largely due to lower handset sales.

Mobile EBITDA contribution margin increased by 4.9 percentage points to 39.2 per cent largely due to improved hardware margin and productivity. 2H21 margin was also supported by mobile services revenue growth.

Fixed - Consumer and Small Business (C&SB)

Fixed - C&SB income declined by 6.8 per cent to $4,736 million impacted by nbn migration along with declines in legacy voice and Foxtel from Telstra. C&SB bundles and standalone data SIOs declined by 69,000 including 10,000 additions from Belong, bringing the total to 3.6 million.

We continue to lead the nbn market with a total of 3.5 million nbn connections, an increase of 246,000. Our nbn market share is now 45 per cent (excluding satellite) with the migration to nbn now around 90 per cent complete. The Telstra Smart Modem is now being utilised by 81 per cent of our fixed data consumer base, providing a better experience on the nbn with strong Wi-Fi connectivity and mobile back up.

On-net fixed revenue, which is revenue from services on the Telstra network, decreased by 46.0 per cent to $784 million while off-net fixed revenue, which is revenue from services for which we are a reseller, increased by 15.6 per cent to $3,001 million as customers continue to migrate on to the nbn network.

Telstra 2021 full year results | D 4

Operating and financial review

Consumer content and services revenue declined by 9.1 per cent to $661 million due to lower Foxtel from Telstra SIOs despite growth in gaming.

Business apps and services revenue declined by 5.2 per cent to $183 million due to legacy product decline, partly offset by growth in IP voice and video calling, and professional services.

Interconnect, payphones and E000 revenue declined by 7.0 per cent to $107 million mainly due to ongoing decline in payphone usage and inbound calling services.

Fixed - C&SB EBITDA contribution margin declined by 5.4 percentage points to 5.8 per cent due to high margin revenue reduction and growing network payments to NBN Co, partly offset by fixed cost reduction.

Fixed - Enterprise

Fixed - Enterprise income decreased by 9.3 per cent to $3,724 million reflecting declines in data and connectivity income and NAS income.

Data and connectivity income declined by 7.5 per cent to $1,103 million. While we maintained our fibre SIO base, this was offset by copper SIO decline and a decrease in ARPU.

NAS income decreased by 10.0 per cent to $2,621 million due to a decline in legacy calling applications including ISDN, and fewer lower margin equipment sales.

Calling applications revenue declined by 14.5 per cent to $708 million due to declines in ISDN, inbound and fixed line calling products, and a customer shift to cloud based contact solutions.

Managed services revenue increased by 5.8 per cent to $671 million as more network customers attached cyber security services in addition to growth in managed cloud services.

Professional services revenue decreased by 11.9 per cent to $376 million as large strategic contracts were replaced by digital transformation engagements.

Cloud applications revenue increased by 4.5 per cent to $257 million due to demand for partner cloud products including AWS and Microsoft, enabling attachment to managed services.

Equipment sales revenue declined by 31.4 per cent to $343 million from a general deferral of hardware spend due to market conditions resulting from COVID-19 and a shift to cloud based technologies.

Fixed - Enterprise EBITDA contribution margin declined by 4.2 percentage points to 23.8 per cent. Data and connectivity EBITDA contribution margin declined by 6.7 percentage points to 60.1 per cent reflecting reduced revenue and higher costs. NAS EBITDA contribution margin declined by 3.6 percentage points to 8.5 per cent due to reductions in higher margin legacy calling applications, professional services, and equipment sales partly offset by growth in managed services and cloud applications.

Fixed - Wholesale

Fixed - Wholesale income declined by 27.6 per cent to $1,356 million impacted by ongoing migration to the nbn and a decline in commercial works.

Data and connectivity revenue decreased by 6.5 per cent to $343 million reflecting an ongoing SIO reduction in enterprise grade copper products, price competition in wideband fibre products, and migration of copper services.

Legacy calling and fixed revenue declined by 34.0 per cent to $412 million due to the continued legacy fixed product SIO decline as the nbn migration nears completion.

Commercial and recoverable works revenue declined by 31.8 per cent to $601 million as the nbn network rollout nears completion.

Fixed - Wholesale EBITDA contribution margin decreased by 2.1 percentage points to 45.8 per cent due to continued legacy and nbn revenue decline.

Global

Global represents the international business of Telstra Enterprise. Income declined by 8.1 per cent in constant currency (CC) terms largely due to continuing decline in low margin legacy voice and one-off transactions in FY20.

Fixed legacy voice revenue decreased by 8.9 per cent (CC) due to continued market decline with strategic focus on maximising margin.

Data and connectivity revenue declined by 2.9 per cent (CC) from industry wide price erosion across transmission products and customer churn in Enterprise as the market moves towards SD-WAN.

NAS and other revenue decreased by 4.2 per cent (CC) due to a reduction in low margin customer premises equipment (CPE) sales and professional services, and churn in private cloud.

Global EBITDA contribution margin increased by 0.6 percentage points to 22.5 per cent as lower costs offset revenue reduction.

Recurring nbn DA

Recurring nbn DA income includes infrastructure services across ducts, racks and fibre backhaul provided to NBN Co. Income increased by 3.9 per cent to $908 million reflecting the nbn network rollout.

One-off nbn DA & connection

One-off nbn DA & connection income includes receipts from NBN Co for disconnecting customers from our legacy network, and oneoff income we receive from customers to connect to the nbn network. Income decreased by 47.6 per cent to $1,050 million as migration to the nbn nears completion.

Other

Other product income includes Telstra Health and corporate adjustments. Corporate adjustments include items not related to products such as impact of bond rate movements on leave provisions. Income increased by 50.4 per cent to $552 million mainly due to a gain on sale and leaseback of the Pitt Street exchange property and other M&A transactions, and 6.4 per cent revenue growth in Telstra Health.

Telstra 2021 full year results | D 5

Operating and financial review

Expense performance

Total operating expenses declined by 8.7 per cent to $15,470 million on a reported basis and declined by 10.2 per cent to $15,664 million on a reported lease adjusted basis in part due to the 8.1 per cent or $490 million reduction in underlying fixed costs from our productivity program.

Sales costs, which are direct costs associated with revenue and customer growth, decreased by 7.0 per cent to $8,184 million due to an $862 million decline in other sales costs as a result of lower hardware costs, partly offset by a $244 million increase in nbn access payments. Other fixed costs decreased by 24.5 per cent while one-off nbn DA and nbn cost to connect declined by 47.0 per cent in line with the progress of the nbn network rollout. On an underlying basis, total operating expenses declined by 9.3 per cent as underlying fixed cost reduction exceeded increased nbn access payments.

We are targeting a $2.7 billion annual reduction in underlying fixed costs by FY22 compared with underlying fixed costs of ~$7.9 billion in base year FY16. We have now achieved approximately $2.3 billion of annual cost out since FY16.

Operating expenses1
		FY20 $m	Change
	FY21
	$m
			$m		%

Sales costs	_8,184 _	_8,802 _		(618)	(7.0)
- nbnpayments	1,975	1,731		244	14.1
-other	6,209	7,071		(862)	(12.2)
Fixed costs	6,977	7,916		(939)	(11.9)
-underlying2	5,593	6,083		(490)	(8.1)
-other3	1,384	1,833		(449)	(24.5)
Underlying	15,161	16,718		(1,557)	(9.3)
One-off nbn DAandnbncost to connect	248	468		(220)	(47.0)
Restructuring	211	259		(48)	(18.5)
Otherguidance adjustments4	44	-		44	n/m
Reported lease adjusted5	15,664	17,445		(1,781)	(10.2)
Lease adjustments6	(194)	(494)		300	n/m
Reported	15,470	16,951		(1,481)	(8.7)

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----- Start of picture text -----

+$244m -$862m
$16,718m
-$490m
-$449m +$211m +$44m $15,664m
+$248m
$15,161m -10.2%
-8.1% Reported
cost out -9.3% lease
Underlying adjusted
basis basis
underlyingFY20 nbn paymentsSales costs - Sales costs -other Fixed costs -underlying 2 Fixed costs -other 3 underlyingFY21 One-off nbnDA and nbn Restructuring guidanceOther reportedFY21
cost to adjustments4 lease
connect adjusted
----- End of picture text -----

Sales and fixed costs exclude costs associated with one-off nbn DA and nbn cost to connect.
Fixed costs - underlying was ~$7.9b in FY16 on a restated basis and targeted to decline by our net cost productivity target of $2.7b by FY22. Underlying fixed costs are costs excluding other fixed costs (as defined in footnote 3).
Fixed costs - other includes items supporting revenue growth including relevant NAS costs, mobile handset lease, and product impairment.
Other guidance adjustments include M&A transactions.
‘Reported lease adjusted’ includes all mobile handset leases as operating expenses, and all rent/other leases below EBITDA.
Refer to note 7 of the Guidance versus reported results schedule.

Telstra 2021 full year results | D 6

Operating and financial review

Our progress on achieving our productivity target is reported through the above operating expenses table. The detail below provides commentary on the operating expenses as disclosed in our statutory accounts.

Operating expenses on a reported basis	FY21	FY20	Change
	$m	$m	%
Labour	4,012	4,058	(1.1)
Goods and services purchased	8,318	9,107	(8.7)
Net impairment losses on financial assets	160	202	(20.8)
Other expenses	2,980	3,584	(16.9)
Total	15,470	16,951	(8.7)

Labour

Total labour expenses decreased by 1.1 per cent or $46 million to $4,012 million. Salary and associated costs increased by $108 million as lower headcount was offset by higher costs per employee. Labour substitution costs declined by $242 million from a reduction in labour outsourcing which was partly due to our COVID-19 response as a portion of our labour substitution headcount shifted to be permanent employees. Employee redundancy costs increased by $96 million due to job reductions associated with the T22 program. Total full time staff equivalents (FTE) decreased by 6.7 per cent or 1,944 to 27,015.

Goods and services purchased

Total goods and services purchased decreased by 8.7 per cent or $789 million to $8,318 million.

Cost of goods sold, which includes mobile handsets and accessories, tablets, cellular Wi-Fi, broadband modems and other fixed hardware decreased by 19.9 per cent or $693 million to $2,797 million due to lower hardware and NAS equipment sales volume.

Network payments decreased by 0.1 per cent or $2 million to $3,153 million due to a $243 million decline in costs associated with lower global voice, data and connectivity revenue, and lower international roaming payments, while nbn access payments increased by $244 million as customers migrate across to nbn services.

Other goods and services purchased declined by 3.8 per cent or $94 million to $2,368 million mainly due to a reduction in Foxtel service fees as a result of a decline in Foxtel from Telstra subscribers.

Net impairment losses on financial assets

Total net impairment losses on financial assets decreased by 20.8 per cent or $42 million to $160 million.

Other expenses

Total other expenses decreased by 16.9 per cent or $604 million to $2,980 million.

Service contracts and other agreements expenses declined by 22.3 per cent or $329 million to $1,144 million due to productivity and cost reduction programs. Impairment losses (excluding net losses on financial assets) increased by 25.6 per cent or $33 million to $162 million largely due to a $34 million impairment loss for our Sensis investment. Other expenses decreased by 15.5 per cent or $308 million to $1,674 million including a $112 million decline in general and administrative costs.

Depreciation and amortisation

Depreciation and amortisation decreased by 13.0 per cent or $692 million to $4,646 million including a $291 million decrease in depreciation of right of use assets, a $151 million decrease in depreciation of property, plant and equipment, and a $250 million decline in amortisation of intangible assets. Review of asset service lives during FY21 resulted in a $7 million decrease in depreciation expense and a $71 million decrease in amortisation expense.

Foreign currency impacts

For the purposes of reporting our consolidated results, the translation of foreign operations denominated in foreign currency to Australian dollars (AUD) reduced our sales revenue by $157 million. This foreign exchange impact was partly offset by a decrease in expenses by $132 million across labour, goods and services purchased, and other expenses resulting in an unfavourable EBITDA contribution of $25 million.

Net finance costs

Net finance costs decreased by 28.5 per cent or $220 million to $551 million. This decrease is due to a reduction in interest on borrowings of $160 million, a reduction in interest on lease liabilities of $26 million and other financing items as set out in note 4.4.3. Interest on borrowings decreased as a result of a reduction in our average gross borrowing cost from 4.6 per cent to 3.8 per cent and lower debt on issue.

Telstra 2021 full year results | D 7

Operating and financial review

Financial position

Summary statement of cash flows	FY21	FY20	Change
	$m	$m	%
Net cashprovided by operating activities	7,231	7,010	3.2
Net cashusedin investing activities	(2,344)	(2,976)	21.2
-Capitalexpenditure (beforeinvestments)	(3,140)	(3,442)	8.8
-Other investing cash flows	796	466	70.8
Free cashflow	4,887	4,034	21.1
Net cashusedin financing activities	(4,236)	(4,138)	(2.4)
Netincrease/(decrease)incashand cashequivalents	651	(104)	n/m
Cashand cashequivalents at the beginning ofthe period	499	604	(17.4)
Effects ofexchangerate changes oncashand cashequivalents	(25)	(1)	n/m
Cashand cashequivalents at the end ofthe period	1,125	499	n/m

Capital expenditure and cash flow

Free cashflow generated from operating and investing activities was $4,887 million representing an increase of $853 million or 21.1 per cent. It was positively impacted by a $1,394 million improvement in working capital largely due to reduced receivables from lower handset sales and roaming revenue, and stronger collections performance, and a $407 million year on year improvement including the sale and leaseback of the Pitt Street exchange property and other M&A transactions. This was partly offset by a $967 million decline in reported lease adjusted EBITDA largely due to a $734 million decline in net one-off nbn DA receipts and EBITDA declines across the Fixed business.

Net cash provided by operating activities increased by 3.2 per cent or $221 million to $7,231 million mainly due to a $2,994 million decrease in payments to suppliers and employees, partly offset by a $2,779 million decline in receipts from customers.

Net cash used in investing activities decreased by 21.2 per cent or $632 million to $2,344 million primarily due to a $273 million increase in proceeds from sale and leaseback, a $160 million increase in proceeds from sale of businesses and shares in controlled entities (net of cash disposed), and a $132 million increase from the sale of equity accounted and other investments.

Net cash used in financing activities increased by 2.4 per cent or $98 million to $4,236 million. This was largely due to $698 million in proceeds from the sale of units in a controlled trust in 1H20 and a $3,168 million decrease in proceeds from borrowings. This was partly offset by $3,302 million decrease in repayment of borrowings, a $287 million decline in payments for the principal portion of lease liabilities, and a $199 million decline finance costs paid.

Our accrued capital expenditure for the year on a guidance basis was $3,020 million or 14.4 per cent of sales revenue.

On a guidance basis free cashflow after operating lease payments was $3,812 million. Performance against guidance has been adjusted for free cashflow associated with operating lease payments (-$717 million), the sale and leaseback of the Pitt Street exchange property (-$282 million), M&A (-$164 million) and spectrum ($88 million).

Debt issuance	$m	Debt repayments	$m
Drawings (bilateralbank facilities)	753	AUDbonds	(800)
Proceeds under sale and leaseback transaction1	414	Euro bond	(708)
Short term commercial paper and revolving bank facilities (net)	203	Bilateral bank facilities	(452)
Other loans	35	AUD floatingratenote	(150)
		Private placements	(145)
		Other loans	(102)
Total	1,405	Total	(2,357)

Treated as a financial liability under accounting standards.

Debt position

Our gross debt position was $16,388 million comprising borrowings of $14,136 million, lease liabilities of $3,305 million less $1,053 million in net derivative assets. Gross debt decreased by 5.5 percent or $955 million primarily due to an issuance of $1,405 million offset by higher debt repayments of $2,357 million. Net debt decreased by 9.4 per cent or $1,581 million to $15,263 million reflecting an increase in cash holdings of $626 million and the decrease in gross debt.

Telstra 2021 full year results | D 8

Operating and financial review

Financial settings	FY21 Actual	FY21 Comfort zone
Debt servicing1	2.0x	1.5xto2.0x
Gearing2	50.0%	50% to70%
Interest cover3	13.2x	>7x

Debt servicing ratio is calculated as net debt/reported EBITDA.
Gearing ratio is calculated as net debt/total net debt plus equity.
Interest cover is calculated as reported EBITDA/net interest expense (excluding capitalised interest, revaluation impacts on our borrowings and derivatives and other non-cash accounting impacts).

We remain within our comfort zones for our credit metrics. Our debt servicing is 2.0 times (30 June 2020: 1.9 times), gearing ratio is at 50.0 per cent (30 June 2020: 52.7 per cent) and interest cover is 13.2 times (30 June 2020: 11.7 times).

Summary statement of financial position	30 Jun 2021	30 Jun 2020	Change
	$m	$m	%
Current assets	7,114	6,534	8.9
Non-current assets	35,411	37,869	(6.5)
Total assets	42,525	44,403	(4.2)
Current liabilities	10,424	10,094	3.3
Non-current liabilities	16,826	19,162	(12.2)
Total liabilities	27,250	29,256	(6.9)
Net assets	15,275	15,147	0.8
Total equity	15,275	15,147	0.8
Return on average assets (%)	7.0	8.0	(1.0)pp
Return on average equity (%)	12.8	12.5	0.3pp

Statement of financial position

Our balance sheet remains in a strong position with net assets of $15,275 million.

Current assets increased by 8.9 per cent to $7,114 million. Cash and cash equivalents increased by $626 million including proceeds from business and asset sales while derivative financial assets increased by $477 million largely from reclassification to current assets for instruments maturing within the next 12 months and foreign currency and other valuation impacts. This was partly offset by a $544 million decline in trade and other receivables and contract assets reflecting lower revenue and better collections.

Non-current assets decreased by 6.5 per cent to $35,411 million. Derivative financial assets decreased by $1,225 million due to a reclassification to current assets of instruments maturing within the next 12 months and foreign currency and other valuation impacts. Property, plant and equipment declined by $636 million mainly due to depreciation expense partly offset by network investments, while intangible assets decreased by $281 million mainly due to amortisation expense partly offset by spectrum licence and software asset additions.

Current liabilities increased by 3.3 per cent to $10,424 million. Borrowings increased by $868 million comprising reclassification to current liabilities of debt maturing within the next 12 months and an increase in commercial paper issuance, partly offset by debt maturities during the year and other valuation impacts. Trade and other payables declined by $214 million due to a decrease in accrued capital expenditure while current tax payables decreased by $100 million as a result of payments of prior year tax provisions.

Non-current liabilities decreased by 12.2 per cent to $16,826 million. Borrowings decreased by $2,561 million from reclassification to current liabilities of debt maturing within the next 12 months and foreign currency and valuation impacts offset by drawings on bilateral bank facilities and a financial liability recognised on sale and leaseback of the underlying land and buildings housing the Clayton data centre.

Telstra 2021 full year results | D 9

Full year results and operations review | Telstra Annual Report 2021

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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 is EBITDA on an underlying basis and assumed no impairments in and to investments or non-current tangible and intangible assets, and excluded any proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum, and excluded the impacts of Pitt St exchange sale and leaseback. The guidance was based on management best estimates of nbn impacts including input from the nbn Corporate Plan currently published at time of issue of this guidance. Underlying EBITDA excludes net one-off nbn DA receipts less nbn net C2C, one-off restructuring costs and guidance adjustments but includes depreciation of mobile lease right-of-use assets. Free cashflow defined as ‘operating cash flows’ less ‘investing cash flows’ less ‘payments for operating lease liabilities’, and excludes spectrum and guidance adjustments. The following adjustments provide a detailed reconciliation from reported to guidance results for each guidance measure:

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	FY20	FY21		FY20	FY21		FY20	FY21
	$m	$m		$m	$m		$m	$m

Reported Total Income	26,161	23,132	Reported EBITDA	8,905	7,638	Reported Free Cashflow	4,034	4,887
Adjustments
M&A adjustment1	(20)	(106)	M&A adjustment1	(20)	(96)	M&A adjustment1	(39)	(164)
Impairment2	n/a	n/a	Impairment2	308	34	Impairment2	0	0
Pitt St sale and leaseback3	n/a	(102)	Pitt St sale and leaseback3	0	(102)	Pitt St sale and leaseback3	0	(282)
Restructuring costs4	n/a	n/a	Restructuring costs4	246	211	Restructuring costs4	n/a	n/a
Net one-off NBN receipts5	n/a	n/a	Net one-off NBN receipts5	(1,536)	(802)	Net one-off NBN receipts5	n/a	n/a
Spectrum payments6	n/a	n/a	Spectrum payments6	n/a	n/a	Spectrum payments6	435	88
Lease7	n/a	n/a	Lease7	(494)	(194)	Lease7	(1,015)	(717)
Guidance Total Income	26,141	22,924	Guidance Underlying EBITDA	7,409	6,689	Guidance Free Cashflow	3,415	3,812

The adjustments set out in the above tables have been reviewed by our auditor for consistency with the guidance basis as set out on this page.

Note:

1 Adjustments relating to acquisition and disposals of controlled entities, joint ventures, associates and other investments and any associated net gains or losses and contingent consideration. During FY21 we disposed of our e-commerce platform business, our FTTP Velocity business and acquired Epicon IT Solutions Pty Ltd (including its wholly owned subsidiary, Service Potential Pty Ltd), Epicon Software Pty Ltd and the business and assets of Mediacloud Ltd. FY20 includes adjustments relating to the disposal of our investment in Chief Entertainment Pty Ltd, Snap Inc and PharmX Pty Ltd, and a data centre held by Telstra Singapore Pte Ltd, the execution of a warrant we held in Ooyala Inc, and additional investments in our interest in the Telstra Ventures Fund II, L.P., Telstra Ventures Fund III, L.P. and Southern Cross Cable Holdings Limited.
2 Adjustment related to impairment loss for our investment in Project Sunshine 1 Pty Limited (Sensis). FY20 adjustments relating to impairment of our investment in NXE Australia Pty Ltd (Foxtel).
3 Adjustment relating to the sale and leaseback transaction of the Pitt Street exchange property.
4 Adjustments for the strategic focus (T22 program) to improve customer experience, simplify structure and cut costs, in addition to our normal business as usual redundancies for the period.
5 Adjustments for net one-off nbn receipts which is defined as net nbn one off Definitive Agreement receipts (consisting of PSAA, Infrastructure Ownership and Retraining) less nbn net cost to connect.
6 Adjustment relating to the impact on free cashflow associated with our spectrum purchases and renewals for the period including:
$56m for the first (of five) annual instalment payments for our new 26 GHz spectrum licence;
$28m for renewal of spectrum licences in the 900 MHz band; and
minor payments for spectrum and apparatus licences in various other spectrum bands
7 Adjustment for EBITDA impact for depreciation of mobile lease right-of-use assets. Adjustment for Free Cashflow impact of lease payments related to leases classified as operating leases prior to transition to AASB 16: 'Leases' (ie. before 1 July 2019) and to any new leases accounted for after 1 July 2019.
n/a Adjustment is not relevant to the respective guidance measure.

Telstra 2021 full year results | D10

Results of operations

	2021 2020 Change Change $M $M $M % Year ended 30 June	2021 2020 $M $M Lease adjustments (i) Year ended 30 June	2021 2020 Change Change $M $M $M % Reported lease adjusted (i) Year ended 30 June
Revenue (excluding finance income) Other income (ii) Total income (excluding finance income) Labour Goods and services purchased Net impairment losses on financial assets Other expenses Operating expenses Share of net (loss)/profit from joint ventures and associated entities Earnings before interest, income tax expense, depreciation and amortisation (EBITDA) Depreciation and amortisation Earnings before interest and income tax expense (EBIT) Finance income Finance costs Net finance costs Profit before income tax expense Income tax expense Profit for the period *Attributable to:* Equity holders of Telstra Entity Non-controlling interests Effective tax rate on operations EBITDA margin on revenue EBIT margin on revenue *Earnings per share (cents per share)* Basic (iii) Diluted (iii)	21,558 23,710 (2,152) (9.1) 1,574 2,451 (877) (35.8) 23,132 26,161 (3,029) (11.6) 4,012 4,058 (46) (1.1) 8,318 9,107 (789) (8.7) 160 202 (42) (20.8) 2,980 3,584 (604) (16.9) 15,470 16,951 (1,481) (8.7) (24) (305) 281 92.1 15,494 17,256 (1,762) (10.2) 7,638 8,905 (1,267) (14.2) 4,646 5,338 (692) (13.0) 2,992 3,567 (575) (16.1) 103 274 (171) (62.4) 654 1,045 (391) (37.4) 551 771 (220) (28.5) 2,441 2,796 (355) (12.7) 539 957 (418) (43.7) 1,902 1,839 63 3.4 1,857 1,819 38 2.1 45 20 25 n/m 1,902 1,839 63 3.4 22.1% 34.2% (12.1) pp 35.4% 37.6% (2.2) pp 13.9% 15.0% (1.1) pp cents cents Change cents Change % 15.6 15.3 0.3 2.0 15.6 15.3 0.3 2.0	- - - -	21,558 23,710 (2,152) (9.1) 1,574 2,451 (877) (35.8) 23,132 26,161 (3,029) (11.6) 4,012 4,058 (46) (1.1) 8,318 9,107 (789) (8.7) 160 202 (42) (20.8) 3,174 4,078 (904) (22.2) 15,664 17,445 (1,781) (10.2) (24) (305) 281 92.1 15,688 17,750 (2,062) (11.6) 7,444 8,411 (967) (11.5) 4,452 4,844 (392) (8.1) 2,992 3,567 (575) (16.1) 103 274 (171) (62.4) 654 1,045 (391) (37.4) 551 771 (220) (28.5) 2,441 2,796 (355) (12.7) 539 957 (418) (43.7) 1,902 1,839 63 3.4
		- -
		- - - - - - 194 494
		194 494 - -
		194 494
		(194) (494) (194) (494)
		- - - - - -
		- -
		- - - -
		- -

(i) From 1 July 2019 we have adopted AASB 16: 'Leases'. 'Reported Lease adjusted' provides a view of our mobile handset leases (Telstra as a lessee) which for management reporting purposes are treated as part of operating performance results. FY20 and FY21 have been adjusted to include the reported depreciation

of mobile handsets right-of-use assets in EBITDA.

(ii) Other income includes gains and losses on asset and investment sales (including assets transferred under the nbn Definitive Agreements), income from government grants under the Telstra Universal Service Obligation Performance Agreement, Mobile Blackspot Government program and other individually immaterial contracts, income from nbn[TM ] network disconnection fees, subsidies and other miscellaneous items.

(iii) Basic and diluted earnings per share are impacted by the effect of shares held in trust by Telstra Growthshare Trust (Growthshare) and by the Telstra Employee Share Ownership Plan Trust II (TESOP99).

n/m = not meaningful

Total income

Total income
	2021 2020 Change Change $M $M $M % Year ended 30 June
Mobile Postpaid handheld Prepaid handheld Mobile broadband Internet of Things (IoT) Mobile wholesale Other Total mobile services Hardware Mobile interconnect Media, Telstra Plus & other Total Mobile Fixed - C&SB On-net fixed Off-net fixed Consumer content & services Business applications & services Interconnect, payphones & E000 Total Fixed - C&SB Fixed - Enterprise Data & connectivity Calling applications Managed services & maintenance Professional services Cloud applications Equipment sales Other Total NAS Total Fixed - Enterprise Fixed - Wholesale Data & connectivity Legacy calling & fixed Commercial & recoverable works Total Fixed - Wholesale Global Fixed (legacy voice) Data & connectivity NAS & other Total Global Recurring nbn DA Other product income One-off nbn DA & connection Total income	4,830 4,913 (83) (1.7) 809 773 36 4.7 612 640 (28) (4.4) 246 243 3 1.2 267 221 46 20.8 17 (8) 25 n/m 6,781 6,782 (1) (0.0) 2,306 3,054 (748) (24.5) 264 257 7 2.7 (41) 37 (78) n/m 9,310 10,130 (820) (8.1) 784 1,453 (669) (46.0) 3,001 2,595 406 15.6 661 727 (66) (9.1) 183 193 (10) (5.2) 107 115 (8) (7.0) 4,736 5,083 (347) (6.8) 1,103 1,193 (90) (7.5) 708 828 (120) (14.5) 671 634 37 5.8 376 427 (51) (11.9) 257 246 11 4.5 343 500 (157) (31.4) 266 278 (12) (4.3) 2,621 2,913 (292) (10.0) 3,724 4,106 (382) (9.3) 343 367 (24) (6.5) 412 624 (212) (34.0) 601 881 (280) (31.8) 1,356 1,872 (516) (27.6) 229 279 (50) (17.9) 939 1,075 (136) (12.7) 328 371 (43) (11.6) 1,496 1,725 (229) (13.3) 908 874 34 3.9 552 367 185 50.4 1,050 2,004 (954) (47.6) 23,132 26,161 (3,029) (11.6)

Total income

2021
2020
Change
Change
$M
$M
$M
%
Year ended 30 June

Mobile
Postpaid handheld
Prepaid handheld
Mobile broadband
Internet of Things (IoT)
Mobile wholesale
Other
Total mobile services
Hardware
Mobile interconnect
Media, Telstra Plus & other
Total Mobile
Fixed - C&SB
On-net fixed
Off-net fixed
Consumer content & services
Business applications & services
Interconnect, payphones & E000
Total Fixed - C&SB
Fixed - Enterprise
Data & connectivity
Calling applications
Managed services & maintenance
Professional services
Cloud applications
Equipment sales
Other
Total NAS
Total Fixed - Enterprise
Fixed - Wholesale
Data & connectivity
Legacy calling & fixed
Commercial & recoverable works
Total Fixed - Wholesale
Global
Fixed (legacy voice)
Data & connectivity
NAS & other
Total Global
Recurring nbn DA
Other product income
One-off nbn DA & connection
Total income

4,830
4,913
(83)
(1.7)
809
773
36
4.7
612
640
(28)
(4.4)
246
243
3
1.2
267
221
46
20.8
17
(8)
25
n/m
6,781
6,782
(1)
(0.0)
2,306
3,054
(748)
(24.5)
264
257
7
2.7
(41)
37
(78)
n/m
9,310
10,130
(820)
(8.1)
784
1,453
(669)
(46.0)
3,001
2,595
406
15.6
661
727
(66)
(9.1)
183
193
(10)
(5.2)
107
115
(8)
(7.0)
4,736
5,083
(347)
(6.8)
1,103
1,193
(90)
(7.5)
708
828
(120)
(14.5)
671
634
37
5.8
376
427
(51)
(11.9)
257
246
11
4.5
343
500
(157)
(31.4)
266
278
(12)
(4.3)
2,621
2,913
(292)
(10.0)
3,724
4,106
(382)
(9.3)
343
367
(24)
(6.5)
412
624
(212)
(34.0)
601
881
(280)
(31.8)
1,356
1,872
(516)
(27.6)
229
279
(50)
(17.9)
939
1,075
(136)
(12.7)
328
371
(43)
(11.6)
1,496
1,725
(229)
(13.3)
908
874
34
3.9
552
367
185
50.4
1,050
2,004
(954)
(47.6)
23,132
26,161
(3,029)
(11.6)

Total expenses

Total expenses
	2021 2020 Change Change $M $M $M % Year ended 30 June
Salary and associated costs Other labour expenses Labour substitution Employee redundancy Total labour Cost of goods sold Network payments Other Total goods and services purchased Net impairment losses on financial assets Service contracts and other agreements Impairment losses (excluding net losses on financial assets) Other Total other expenses Total operating expenses Property Plant & Equipment Right of Use assets Depreciation Amortisation of intangible assets Total depreciation and amortisation	3,195 3,087 108 3.5 208 216 (8) (3.7) 356 598 (242) (40.5) 253 157 96 61.1 4,012 4,058 (46) (1.1) 2,797 3,490 (693) (19.9) 3,153 3,155 (2) (0.1) 2,368 2,462 (94) (3.8) 8,318 9,107 (789) (8.7) 160 202 (42) (20.8) 1,144 1,473 (329) (22.3) 162 129 33 25.6 1,674 1,982 (308) (15.5) 2,980 3,584 (604) (16.9) 15,470 16,951 (1,481) (8.7) 2,606 2,757 (151) (5.5) 726 1,017 (291) (28.6) 3,332 3,774 (442) (11.7) 1,314 1,564 (250) (16.0) 4,646 5,338 (692) (13.0)

Total expenses

2021
2020
Change
Change
$M
$M
$M
%
Year ended 30 June

Salary and associated costs
Other labour expenses
Labour substitution
Employee redundancy
Total labour
Cost of goods sold
Network payments
Other
Total goods and services purchased
Net impairment losses on financial assets
Service contracts and other agreements
Impairment losses (excluding net losses on financial assets)
Other
Total other expenses
Total operating expenses
Property Plant & Equipment
Right of Use assets
Depreciation
Amortisation of intangible assets
Total depreciation and amortisation

3,195
3,087
108
3.5
208
216
(8)
(3.7)
356
598
(242)
(40.5)
253
157
96
61.1
4,012
4,058
(46)
(1.1)
2,797
3,490
(693)
(19.9)
3,153
3,155
(2)
(0.1)
2,368
2,462
(94)
(3.8)
8,318
9,107
(789)
(8.7)
160
202
(42)
(20.8)
1,144
1,473
(329)
(22.3)
162
129
33
25.6
1,674
1,982
(308)
(15.5)
2,980
3,584
(604)
(16.9)
15,470
16,951
(1,481)
(8.7)
2,606
2,757
(151)
(5.5)
726
1,017
(291)
(28.6)
3,332
3,774
(442)
(11.7)
1,314
1,564
(250)
(16.0)
4,646
5,338
(692)
(13.0)

Statement of Financial Position

Statement of Financial Position
	30 Jun 21 30 Jun 20 Change Change $M $M $M % As at
*Current assets* Cash and cash equivalents Trade and other receivables and contract assets Deferred contract costs Inventories Derivative financial assets Current tax receivables Prepayments Total current assets *Non-current assets* Trade and other receivables and contract assets Deferred contract costs Inventories Investments - accounted for using the equity method Investments - other Property, plant and equipment Right-of-use assets Intangible assets Derivative financial assets Deferred tax assets Defined benefit asset Total non-current assets Total assets *Current liabilities* Trade and other payables Employee benefits Other provisions Lease liabilities Borrowings Derivative financial liabilities Current tax payables Contract liabilities and other revenue received in advance Total current liabilities *Non-current liabilities* Other payables Employee benefits Other provisions Lease liabilities Borrowings Derivative financial liabilities Deferred tax liabilities Defined benefit liabilities Contract liabilities and other revenue received in advance Total non-current liabilities Total liabilities Net assets *Equity* Share capital Reserves Retained profits Equity available to Telstra Entity shareholders Non-controlling interests Total equity Gross debt Net debt EBITDA interest cover (times) (i) Net debt to EBITDA ROA - Return on average assets ROE - Return on average equity ROI - Return on average investment ROIC - Return on invested capital Gearing ratio (net debt to capitalisation)	1,125 499 626 n/m 4,577 5,121 (544) (10.6) 113 82 31 37.8 385 418 (33) (7.9) 624 147 477 n/m 5 2 3 n/m 285 265 20 7.5 7,114 6,534 580 8.9 1,168 1,428 (260) (18.2) 1,342 1,354 (12) (0.9) 21 28 (7) (25.0) 1,018 897 121 13.5 15 21 (6) (28.6) 20,863 21,499 (636) (3.0) 2,852 3,030 (178) (5.9) 7,131 7,412 (281) (3.8) 786 2,011 (1,225) (60.9) 60 66 (6) (9.1) 155 123 32 26.0 35,411 37,869 (2,458) (6.5) 42,525 44,403 (1,878) (4.2) 3,766 3,980 (214) (5.4) 682 727 (45) (6.2) 87 124 (37) (29.8) 503 611 (108) (17.7) 3,631 2,763 868 31.4 26 54 (28) (51.9) 124 224 (100) (44.6) 1,605 1,611 (6) (0.4) 10,424 10,094 330 3.3 9 4 5 n/m 150 127 23 18.1 126 143 (17) (11.9) 2,802 2,687 115 4.3 10,505 13,066 (2,561) (19.6) 331 320 11 3.4 1,580 1,605 (25) (1.6) 10 8 2 25.0 1,313 1,202 111 9.2 16,826 19,162 (2,336) (12.2) 27,250 29,256 (2,006) (6.9) 15,275 15,147 128 0.8 4,436 4,451 (15) (0.3) 138 5 133 n/m 10,014 10,017 (3) (0.0) 14,588 14,473 115 0.8 687 674 13 1.9 15,275 15,147 128 0.8 16,388 17,343 (955) (5.5) 15,263 16,844 (1,581) (9.4) 13.2 11.7 1.5 12.8 2.0 1.9 0.1 5.3 7.0% 8.0% (1.0) pp 12.8% 12.5% 0.3 pp 9.6% 11.0% (1.4) pp 7.5% 7.6% (0.1) pp 50.0% 52.7% (2.7) pp

Statement of Financial Position

30 Jun 21
30 Jun 20
Change
Change
$M
$M
$M
%
As at

Current assets
Cash and cash equivalents
Trade and other receivables and contract assets
Deferred contract costs
Inventories
Derivative financial assets
Current tax receivables
Prepayments
Total current assets
Non-current assets
Trade and other receivables and contract assets
Deferred contract costs
Inventories
Investments - accounted for using the equity method
Investments - other
Property, plant and equipment
Right-of-use assets
Intangible assets
Derivative financial assets
Deferred tax assets
Defined benefit asset
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Employee benefits
Other provisions
Lease liabilities
Borrowings
Derivative financial liabilities
Current tax payables
Contract liabilities and other revenue received in advance
Total current liabilities
Non-current liabilities
Other payables
Employee benefits
Other provisions
Lease liabilities
Borrowings
Derivative financial liabilities
Deferred tax liabilities
Defined benefit liabilities
Contract liabilities and other revenue received in advance
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Retained profits
Equity available to Telstra Entity shareholders
Non-controlling interests
Total equity
Gross debt
Net debt
EBITDA interest cover (times) (i)
Net debt to EBITDA
ROA - Return on average assets
ROE - Return on average equity
ROI - Return on average investment
ROIC - Return on invested capital
Gearing ratio (net debt to capitalisation)

1,125
499
626
n/m
4,577
5,121
(544)
(10.6)
113
82
31
37.8
385
418
(33)
(7.9)
624
147
477
n/m
5
2
3
n/m
285
265
20
7.5
7,114
6,534
580
8.9
1,168
1,428
(260)
(18.2)
1,342
1,354
(12)
(0.9)
21
28
(7)
(25.0)
1,018
897
121
13.5
15
21
(6)
(28.6)
20,863
21,499
(636)
(3.0)
2,852
3,030
(178)
(5.9)
7,131
7,412
(281)
(3.8)
786
2,011
(1,225)
(60.9)
60
66
(6)
(9.1)
155
123
32
26.0
35,411
37,869
(2,458)
(6.5)
42,525
44,403
(1,878)
(4.2)
3,766
3,980
(214)
(5.4)
682
727
(45)
(6.2)
87
124
(37)
(29.8)
503
611
(108)
(17.7)
3,631
2,763
868
31.4
26
54
(28)
(51.9)
124
224
(100)
(44.6)
1,605
1,611
(6)
(0.4)
10,424
10,094
330
3.3
9
4
5
n/m
150
127
23
18.1
126
143
(17)
(11.9)
2,802
2,687
115
4.3
10,505
13,066
(2,561)
(19.6)
331
320
11
3.4
1,580
1,605
(25)
(1.6)
10
8
2
25.0
1,313
1,202
111
9.2
16,826
19,162
(2,336)
(12.2)
27,250
29,256
(2,006)
(6.9)
15,275
15,147
128
0.8
4,436
4,451
(15)
(0.3)
138
5
133
n/m
10,014
10,017
(3)
(0.0)
14,588
14,473
115
0.8
687
674
13
1.9
15,275
15,147
128
0.8
16,388
17,343
(955)
(5.5)
15,263
16,844
(1,581)
(9.4)
13.2
11.7
1.5
12.8
2.0
1.9
0.1
5.3
7.0%
8.0%
(1.0) pp
12.8%
12.5%
0.3 pp
9.6%
11.0%
(1.4) pp
7.5%
7.6%
(0.1) pp
50.0%
52.7%
(2.7) pp

(i) EBITDA interest cover equals EBITDA to net interest.

n/m = not meaningful

Statement of Cash Flows

Statement of Cash Flows
	2021 2020 Change Change $M $M $M % Year ended 30 June
*Cash flows from operating activities* Receipts from customers (inclusive of goods and services tax (GST)) Payments to suppliers and employees (inclusive of GST) Government grants received for operating activities Net cash generated by operations Income taxes paid Net cash provided by operating activities *Cash flows from investing activities* Payments for property, plant and equipment Payments for intangible assets Capital expenditure (before investments) Payments for shares in controlled entities (net of cash acquired) Payments for equity accounted investments Payments for other investments Total capital expenditure (including investments) Proceeds from sale of property, plant and equipment Proceeds from sale and leaseback Proceeds from sale of businesses and shares in controlled entities (net of cash disposed) Proceeds from sale of equity accounted and other investments Distributions received from equity accounted investments Receipts of the principal portion of finance lease receivables Government grants received for investing activities Interest received Net cash used in investing activities Operating cash flows less investing cash flows *Cash flows from financing activities* Proceeds from borrowings Repayment of borrowings Payments for the principal portion of lease liabilities Purchase of shares for employee share plans Finance costs paid Dividends paid to non-controlling interests Dividends paid to equity holders of Telstra Entity Proceeds from the sale of units in a controlled trust Other Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the year	26,727 29,506 (2,779) (9.4) (18,901) (21,895) 2,994 13.7 167 153 14 9.2 7,993 7,764 229 2.9 (762) (754) (8) (1.1) 7,231 7,010 221 3.2 (2,079) (2,341) 262 11.2 (1,061) (1,101) 40 3.6 (3,140) (3,442) 302 8.8 (26) - (26) n/m (30) (33) 3 9.1 (152) (122) (30) (24.6) (3,348) (3,597) 249 6.9 154 258 (104) (40.3) 291 18 273 n/m 218 58 160 n/m 147 15 132 n/m 20 83 (63) (75.9) 120 135 (15) (11.1) 36 28 8 28.6 18 26 (8) (30.8) (2,344) (2,976) 632 21.2 4,887 4,034 853 21.1 2,308 5,476 (3,168) (57.9) (3,260) (6,562) 3,302 50.3 (706) (993) 287 28.9 (39) (22) (17) (77.3) (613) (812) 199 24.5 (35) (23) (12) (52.2) (1,902) (1,903) 1 0.1 - 698 (698) n/m 11 3 8 n/m (4,236) (4,138) (98) (2.4) 651 (104) 755 n/m 499 604 (105) (17.4) (25) (1) (24) n/m 1,125 499 626 n/m

Statement of Cash Flows

2021
2020
Change
Change
$M
$M
$M
%
Year ended 30 June

Cash flows from operating activities
Receipts from customers (inclusive of goods and services tax (GST))
Payments to suppliers and employees (inclusive of GST)
Government grants received for operating activities
Net cash generated by operations
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for intangible assets
Capital expenditure (before investments)
Payments for shares in controlled entities (net of cash acquired)
Payments for equity accounted investments
Payments for other investments
Total capital expenditure (including investments)
Proceeds from sale of property, plant and equipment
Proceeds from sale and leaseback
Proceeds from sale of businesses and shares in controlled entities (net of cash disposed)
Proceeds from sale of equity accounted and other investments
Distributions received from equity accounted investments
Receipts of the principal portion of finance lease receivables
Government grants received for investing activities
Interest received
Net cash used in investing activities
Operating cash flows less investing cash flows
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Payments for the principal portion of lease liabilities
Purchase of shares for employee share plans
Finance costs paid
Dividends paid to non-controlling interests
Dividends paid to equity holders of Telstra Entity
Proceeds from the sale of units in a controlled trust
Other
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the year

26,727
29,506
(2,779)
(9.4)
(18,901)
(21,895)
2,994
13.7
167
153
14
9.2
7,993
7,764
229
2.9
(762)
(754)
(8)
(1.1)
7,231
7,010
221
3.2
(2,079)
(2,341)
262
11.2
(1,061)
(1,101)
40
3.6
(3,140)
(3,442)
302
8.8
(26)
-
(26)
n/m
(30)
(33)
3
9.1
(152)
(122)
(30)
(24.6)
(3,348)
(3,597)
249
6.9
154
258
(104)
(40.3)
291
18
273
n/m
218
58
160
n/m
147
15
132
n/m
20
83
(63)
(75.9)
120
135
(15)
(11.1)
36
28
8
28.6
18
26
(8)
(30.8)
(2,344)
(2,976)
632
21.2
4,887
4,034
853
21.1
2,308
5,476
(3,168)
(57.9)
(3,260)
(6,562)
3,302
50.3
(706)
(993)
287
28.9
(39)
(22)
(17)
(77.3)
(613)
(812)
199
24.5
(35)
(23)
(12)
(52.2)
(1,902)
(1,903)
1
0.1
-
698
(698)
n/m
11
3
8
n/m
(4,236)
(4,138)
(98)
(2.4)
651
(104)
755
n/m
499
604
(105)
(17.4)
(25)
(1)
(24)
n/m
1,125
499
626
n/m

n/m = not meaningful

Average Revenue per Unit (ARPU) ($)

Average Revenueper Unit(ARPU) ($)
Jun 2021 Dec 2020 Jun 2020 $ $ $ Mobile Postpaid handheld 48.16 45.99 47.53 Prepaid handheld 21.46 20.89 19.05 Mobile broadband 16.20 16.93 16.58 Fixed - C&SB C&SB bundle and standalone data 74.13 75.40 75.37 C&SB standalone fixed voice 43.38 45.82 48.96 Fixed - Enterprise Data & connectivity 469.97 471.52 475.26 Half-year ended	Change Change $ % 0.63 1.3 2.41 12.7 (0.38) (2.3) (1.24) (1.6) (5.58) (11.4) (5.29) (1.1) Jun 21 vs Jun 20	Change Change $ % Jun 21 vs Dec 20
		2.17 4.7 0.57 2.7 (0.73) (4.3) (1.27) (1.7) (2.44) (5.3) (1.55) (0.3)

Note: Statistical data represents management’s best estimates.

Services in operation (000s)

Services in operation(000s)
	Jun 2021 Dec 2020 Jun 2020 000s 000s 000s 8,585 8,564 8,484 3,157 3,134 3,319 3,023 3,061 3,158 4,676 4,240 3,784 30 30 30 19,471 19,029 18,775 1,747 1,652 1,507 2,511 2,462 2,416 3,640 3,656 3,709 416 554 692 528 579 632 188 195 203 248 393 719 31 33 35 Half-year ended	Change Change 000s % 101 1.2 (162) (4.9) (135) (4.3) 892 23.6 - - 696 3.7 240 15.9 95 3.9 (69) (1.9) (276) (39.9) (104) (16.5) (15) (7.4) (471) (65.5) (4) (11.4) Jun 21 vs Jun 20	Change Change 000s % Jun 21 vs Dec 20
Mobile Postpaid handheld retail Prepaid handheld retail Mobile broadband (data cards) Internet of Things (IoT) Satellite Total retail mobile Total wholesale mobile Prepaid handheld retail unique users Fixed - C&SB C&SB bundles and standalone data C&SB standalone voice Foxtel from Telstra Fixed - Enterprise Data & connectivity Fixed - Wholesale Fixed legacy Data & connectivity			21 0.2 23 0.7 (38) (1.2) 436 10.3 - -
			442 2.3
			95 5.8 49 2.0 (16) (0.4) (138) (24.9) (51) (8.8) (7) (3.6) (145) (36.9) (2) (6.1)

Note: Statistical data represents management’s best estimates. Total wholesale mobile excludes IoT.

Workforce

Jun 2021 Dec 2020 Jun 2020 000s 000s 000s Employee data Full time staff equivalents incl. contractor/agency labour 27,015 28,637 28,959 Half-year ended	Change Change 000s % (1,944) (6.7) Jun 21 vs Jun 20	Change Change 000s % Jun 21 vs Dec 20
		(1,622) (5.7)

Note: Statistical data represents management’s best estimates.

Segment information from operations

Segment information from operations
	2021 2020 Change $M $M % 12,342 13,474 (8.4) 6,985 7,743 (9.8) 33 30 10.0 1,230 1,940 (36.6) 20,590 23,187 (11.2) 3,745 4,664 (19.7) (1,203) (1,690) 28.8 23,132 26,161 (11.6) Total income Year ended 30 June	2021 2020 Change $M $M % EBITDA contribution Year ended 30 June
Telstra Consumer and Small Business Telstra Enterprise Networks and IT All Other Telstra excluding Telstra InfraCo Telstra InfraCo Internal access charges Total Telstra segments Depreciation of mobile handsets right-of-use assets Telstra Group EBITDA		4,818 4,888 (1.4) 2,921 3,274 (10.8) (1,360) (1,619) 16.0 (679) (153) n/m 5,700 6,390 (10.8) 2,664 2,758 (3.4) (920) (737) (24.8) 7,444 8,411 (11.5) 194 494 (60.7) 7,638 8,905 (14.2)

C&SB, Enterprise and Wholesale underlying income and fully allocated EBITDA

	2021 2020 Change $M $M % 7,509 8,330 (9.9) 4,736 5,083 (6.8) 2 (4) n/m 12,247 13,409 (8.7) 1,513 1,593 (5.0) 3,724 4,106 (9.3) 33 27 22.2 1,496 1,725 (13.3) 6,766 7,451 (9.2) 275 230 19.6 1,356 1,872 (27.6) 899 865 3.9 12 7 71.4 2,542 2,974 (14.5) 319 290 10.0 21,874 24,124 (9.3) Year ended 30 June Total income	2021 2020 Change $M $M % EBITDA contribution Year ended 30 June
Mobile Fixed - C&SB Other Telstra Consumer and Small Business Mobile Fixed - Enterprise Other Global Telstra Enterprise Mobile Fixed - Wholesale Recurring nbn DA Other InfraCo Other Underlying		2,852 2,695 5.8 273 567 (51.9) 1 (6) n/m 3,126 3,256 (4.0) 587 643 (8.7) 887 1,149 (22.8) 12 14 (14.3) 336 377 (10.9) 1,822 2,183 (16.5) 196 160 22.5 621 897 (30.8) 851 811 4.9 (25) (24) (4.2) 1,643 1,844 (10.9) 98 126 (22.2) 6,689 7,409 (9.7)

Note: C&SB, Enterprise, InfraCo external exclude any off-one nbn DA and connection, and guidance adjustments attributable. Enterprise Global excludes inter-segment revenue. InfraCo is external and excludes internal access charges.

Product profitability - EBITDA ($M)

	2021 2020 Change % 3,647 3,477 4.9 273 567 (51.9) 663 797 (16.8) 224 352 (36.4) 887 1,149 (22.8) 621 897 (30.8) 336 377 (10.9) 860 820 4.9 65 122 (46.7) 6,689 7,409 (9.7) 802 1,536 (47.8) (211) (246) 14.2 164 (288) n/m 7,444 8,411 (11.5) Year ended 30 June
Mobiles Fixed - C&SB - Data & connectivity - NAS Fixed - Enterprise Fixed - Wholesale Global Recurring nbn DA Other Underlying Net one-off nbn DA less nbn net C2C Restructuring Other guidance adjustments Reported lease adjusted

Note: Product margins represent management's best estimates and are based on lease adjusted figures.

Product profitability - EBITDA margins %

Productprofitability - EBITDA margins %
	2021 2020 Year ended 30 June
Mobiles Fixed - C&SB - Data & connectivity - NAS Fixed - Enterprise Fixed - Wholesale Global Recurring nbn DA Other Underlying Net one-off nbn DA less nbn net C2C Restructuring Other guidance adjustments Reported lease adjusted	39.2% 34.3% 5.8% 11.2% 60.1% 66.8% 8.5% 12.1%
	23.8% 28.0%
	45.8% 47.9% 22.5% 21.9% 94.7% 93.8% 18.9% 36.5%
	30.6% 30.7%
	76.4% 76.6% - - - -
	32.2% 32.2%

Note: Product margins represent management's best estimates and are based on lease adjusted figures.

Telstra Corporation Limited Half-year comparison - Reported lease adjusted (i) Year ended 30 June 2021

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
Dec-17	Jun-18	Jun-18	Dec-18 Growth	Jun-19 Growth	Jun-19 Growth	Dec-19 Growth	Jun-20 Growth	Jun-20 Growth	Dec-20 Growth	Jun-21 Growth	Jun-21 Growth

2,570 493 416 84 90 6 3,659 1,382 106 89	2,574 465 367 105 99 6 3,616 1,464 106 86	5,144 958 783 189 189 12 7,275 2,846 212 175	2,615 1.8% 448 (9.1%) 350 (15.9%) 106 26.2% 99 10.0% 7 16.7% 3,625 (0.9%) 1,531 10.8% 112 5.7% 80 (10.1%)	2,567 (0.3%) 381 (18.1%) 323 (12.0%) 118 12.4% 102 3.0% 8 33.3% 3,499 (3.2%) 1,621 10.7% 112 5.7% 69 (19.8%)	5,182 0.7% 829 (13.5%) 673 (14.0%) 224 18.5% 201 6.3% 15 25.0% 7,124 (2.1%) 3,152 10.8% 224 5.7% 149 (14.9%)	2,508 (4.1%) 388 (13.4%) 325 (7.1%) 116 9.4% 104 5.1% 8 14.3% 3,449 (4.9%) 1,741 13.7% 120 7.1% 45 (43.8%)	2,405 (6.3%) 385 1.0% 315 (2.5%) 127 7.6% 117 14.7% (16) n/m 3,333 (4.7%) 1,313 (19.0%) 137 22.3% (8) n/m	4,913 (5.2%) 773 (6.8%) 640 (4.9%) 243 8.5% 221 10.0% (8) n/m 6,782 (4.8%) 3,054 (3.1%) 257 14.7% 37 (75.2%)	2,352 (6.2%) 404 4.1% 316 (2.8%) 118 1.7% 127 22.1% 9 12.5% 3,326 (3.6%) 1,242 (28.7%) 150 25.0% (8) n/m	2,478 3.0% 405 5.2% 296 (6.0%) 128 0.8% 140 19.7% 8 n/m 3,455 3.7% 1,064 (19.0%) 114 (16.8%) (33) n/m


											4,830 (1.7%)
											809 4.7%
											612 (4.4%)
											246 1.2%
											267 20.8%
											17 n/m
											6,781 (0.0%)
											2,306 (24.5%)
											264 2.7%
											(41) n/m
5,236	5,272	10,508	5,348 2.1%	5,301 0.6%	10,649 1.3%	5,355 0.1%	4,775 (9.9%)	10,130 (4.9%)	4,710 (12.0%)	4,600 (3.7%)	9,310 (8.1%)
1,697 670 422 100 87	1,476 778 399 97 85	3,173 1,448 821 197 172	1,264 (25.5%) 972 45.1% 390 (7.6%) 90 (10.0%) 78 (10.3%)	1,062 (28.0%) 1,092 40.4% 375 (6.0%) 93 (4.1%) 69 (18.8%)	2,326 (26.7%) 2,064 42.5% 765 (6.8%) 183 (7.1%) 147 (14.5%)	837 (33.8%) 1,244 28.0% 381 (2.3%) 99 10.0% 62 (20.5%)	616 (42.0%) 1,351 23.7% 346 (7.7%) 94 1.1% 53 (23.2%)	1,453 (37.5%) 2,595 25.7% 727 (5.0%) 193 5.5% 115 (21.8%)	462 (44.8%) 1,470 18.2% 342 (10.2%) 94 (5.1%) 58 (6.5%)	322 (47.7%) 1,531 13.3% 319 (7.8%) 89 (5.3%) 49 (7.5%)
											784 (46.0%)
											3,001 15.6%
											661 (9.1%)
											183 (5.2%)
											107 (7.0%)
2,976	2,835	5,811	2,794 (6.1%)	2,691 (5.1%)	5,485 (5.6%)	2,623 (6.1%)	2,460 (8.6%)	5,083 (7.3%)	2,426 (7.5%)	2,310 (6.1%)	4,736 (6.8%)
692 528 310 214 78 221 111 1,462	674 499 314 335 83 411 124 1,766	1,366 1,027 624 549 161 632 235 3,228	656 (5.2%) 485 (8.1%) 305 (1.6%) 218 1.9% 94 20.5% 226 2.3% 124 11.7% 1,452 (0.7%)	625 (7.3%) 461 (7.6%) 331 5.4% 275 (17.9%) 111 33.7% 356 (13.4%) 138 11.3% 1,672 (5.3%)	1,281 (6.2%) 946 (7.9%) 636 1.9% 493 (10.2%) 205 27.3% 582 (7.9%) 262 11.5% 3,124 (3.2%)	607 (7.5%) 426 (12.2%) 308 1.0% 191 (12.4%) 119 26.6% 194 (14.2%) 133 7.3% 1,371 (5.6%)	586 (6.2%) 402 (12.8%) 326 (1.5%) 236 (14.2%) 127 14.4% 306 (14.0%) 145 5.1% 1,542 (7.8%)	1,193 (6.9%) 828 (12.5%) 634 (0.3%) 427 (13.4%) 246 20.0% 500 (14.1%) 278 6.1% 2,913 (6.8%)	563 (7.2%) 366 (14.1%) 328 6.5% 181 (5.2%) 127 6.7% 157 (19.1%) 130 (2.3%) 1,289 (6.0%)	540 (7.8%) 342 (14.9%) 343 5.2% 195 (17.4%) 130 2.4% 186 (39.2%) 136 (6.2%) 1,332 (13.6%)
											1,103 (7.5%)
											708 (14.5%)
											671 5.8%
											376 (11.9%)
											257 4.5%
											343 (31.4%)
											266 (4.3%)
											2,621 (10.0%)
2,154	2,440	4,594	2,108 (2.1%)	2,297 (5.9%)	4,405 (4.1%)	1,978 (6.2%)	2,128 (7.4%)	4,106 (6.8%)	1,852 (6.4%)	1,872 (12.0%)	3,724 (9.3%)
196 571 631	205 520 559	401 1,091 1,190	200 2.0% 463 (18.9%) 539 (14.6%)	201 (2.0%) 407 (21.7%) 509 (8.9%)	401 - 870 (20.3%) 1,048 (11.9%)	188 (6.0%) 343 (25.9%) 421 (21.9%)	179 (10.9%) 281 (31.0%) 460 (9.6%)	367 (8.5%) 624 (28.3%) 881 (15.9%)	176 (6.4%) 225 (34.4%) 369 (12.4%)	167 (6.7%) 187 (33.5%) 232 (49.6%)
											343 (6.5%)
											412 (34.0%)
											601 (31.8%)
1,398	1,284	2,682	1,202 (14.0%)	1,117 (13.0%)	2,319 (13.5%)	952 (20.8%)	920 (17.6%)	1,872 (19.3%)	770 (19.1%)	586 (36.3%)	1,356 (27.6%)
151 452 165	167 471 178	318 923 343	144 (4.6%) 491 8.6% 168 1.8%	202 21.0% 512 8.7% 188 5.6%	346 8.8% 1,003 8.7% 356 3.8%	140 (2.8%) 532 8.4% 174 3.6%	139 (31.2%) 543 6.1% 197 4.8%	279 (19.4%) 1,075 7.2% 371 4.2%	105 (25.0%) 488 (8.3%) 162 (6.9%)	124 (10.8%) 451 (16.9%) 166 (15.7%)
											229 (17.9%)
											939 (12.7%)
											328 (11.6%)
768	816	1,584	803 4.6%	902 10.5%	1,705 7.6%	846 5.4%	879 (2.5%)	1,725 1.2%	755 (10.8%)	741 (15.7%)	1,496 (13.3%)
304 247 1,308	338 491 974	642 738 2,282	374 23.0% 177 (28.3%) 992 (24.2%)	410 21.3% 167 (66.0%) 1,124 15.4%	784 22.1% 344 (53.4%) 2,116 (7.3%)	432 15.5% 188 6.2% 1,039 4.7%	442 7.8% 179 7.2% 965 (14.1%)	874 11.5% 367 6.7% 2,004 (5.3%)	452 4.6% 392 n/m 658 (36.7%)	456 3.2% 160 (10.6%) 392 (59.4%)	908 3.9%
											552 50.4%
											1,050 (47.6%)
14,391	14,450	28,841	13,798 (4.1%)	14,009 (3.1%)	27,807 (3.6%)	13,413 (2.8%)	12,748 (9.0%)	26,161 (5.9%)	12,015 (10.4%)	11,117 (12.8%)	23,132 (11.6%)
2,699 3,989 103 2,473	2,508 4,349 87 2,414	5,207 8,338 190 4,887	2,722 0.9% 4,382 9.9% 88 (14.6%) 2,124 (14.1%)	2,557 2.0% 4,756 9.4% 96 10.3% 2,660 10.2%	5,279 1.4% 9,138 9.6% 184 (3.2%) 4,784 (2.1%)	2,170 (20.3%) 4,622 5.5% 80 (9.1%) 2,060 (3.0%)	1,888 (26.2%) 4,485 (5.7%) 122 27.1% 2,018 (24.1%)	4,058 (23.1%) 9,107 (0.3%) 202 9.8% 4,078 (14.8%)	2,033 (6.3%) 4,208 (9.0%) 78 (2.5%) 1,737 (15.7%)	1,979 4.8% 4,110 (8.4%) 82 (32.8%) 1,437 (28.8%)

											4,012 (1.1%)
											8,318 (8.7%)
											160 (20.8%)
											3,174 (22.2%)
9,264 (31)	9,358 9	18,622 (22)	9,316 0.6% 1 n/m	10,069 7.6% 11 22.2%	19,385 4.1% 12 n/m	8,932 (4.1%) (2) n/m	8,513 (15.5%) (303) n/m	17,445 (10.0%) (305) n/m	8,056 (9.8%) (2) -	7,608 (10.6%) (22) 92.7%	15,664 (10.2%)
											(24) 92.1%
5,096 2,219	5,101 2,251	10,197 4,470	4,483 (12.0%) 2,366 6.6%	3,951 (22.5%) 2,366 5.1%	8,434 (17.3%) 4,732 5.9%	4,479 (0.1%) 2,428 2.6%	3,932 (0.5%) 2,416 2.1%	8,411 (0.3%) 4,844 2.4%	3,957 (11.7%) 2,316 (4.6%)	3,487 (11.3%) 2,136 (11.6%)	7,444 (11.5%)
											4,452 (8.1%)
2,877 296	2,850 292	5,727 588	2,117 (26.4%) 352 18.9%	1,585 (44.4%) 342 17.1%	3,702 (35.4%) 694 18.0%	2,051 (3.1%) 375 6.5%	1,516 (4.4%) 396 15.8%	3,567 (3.6%) 771 11.1%	1,641 (20.0%) 307 (18.1%)	1,351 (10.9%) 244 (38.4%)	2,992 (16.1%)
											551 (28.5%)
2,581 889	2,558 693	5,139 1,582	1,765 (31.6%) 559 (37.1%)	1,243 (51.4%) 344 (50.4%)	3,008 (41.5%) 903 (42.9%)	1,676 (5.0%) 526 (5.9%)	1,120 (9.9%) 431 25.3%	2,796 (7.0%) 957 6.0%	1,334 (20.4%) 209 (60.3%)	1,107 (1.2%) 330 (23.4%)	2,441 (12.7%)
											539 (43.7%)
1,692	1,865	3,557	1,206 (28.7%)	899 (51.8%)	2,105 (40.8%)	1,150 (4.6%)	689 (23.4%)	1,839 (12.6%)	1,125 (2.2%)	777 12.8%	1,902 3.4%
1,713 (21)	1,878 (13)	3,591 (34)	1,211 (29.3%) (5) 76.2%	899 (52.1%) - n/m	2,110 (41.2%) (5) 85.3%	1,139 (5.9%) 11 n/m	680 (24.4%) 9 n/m	1,819 (13.8%) 20 n/m	1,098 (3.6%) 27 n/m	759 11.6% 18 100.0%	1,857 2.1% 45 n/m

(i) From 1 July 2019 we have adopted AASB 16: 'Leases' on a prospective basis, i.e. no restatement of the comparative period. FY20 and FY21 have been adjusted to include the reported depreciation of mobile handsets right-of-use assets

in EBITDA because for management reporting purposes these expenses are treated as part of operating performance results. Given different accounting treatment of leases in FY20 and FY21 compared to FY19,

to provide a like-for-like view of our mobile handset leases (Telstra as a lessee), for illustrative purposes FY19 has been adjusted to exclude proforma operating lease expense and implied interest in the capitalised lease liability of all but mobile handset leases from operating expenses, D&A, finance costs and income tax expense. FY18 has not been adjusted.

(ii) Includes bundles and data, standalone voice, hardware, Telstra Plus, TUSOPA, business data & connectivity and other one-off revenue.

(iii) Includes guidance adjustments. Guidance adjustments include impairments in and to investments or non-current tangible and intangible assets, proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum. n/m = not meaningful

Telstra Corporation Limited Half-year comparison Year ended 30 June 2021

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
Dec-17	Jun-18	Jun-18	Dec-18 Growth	Jun-19 Growth	Jun-19 Growth	Dec-19 Growth	Jun-20 Growth	Jun-20 Growth	Dec-20 Growth	Jun-21 Growth	Jun-21 Growth

17,609 7,692 21 3,964 2,432 2,346 862 56.15 22.70 17.58 1,304 92 234 1,630 3,451 180 1,710 799 81.78 51.35 3,060 37 34,115	17,716 7,866 67 3,893 2,294 2,571 973 55.12 22.36 15.58 1,573 110 263 1,946 3,519 203 1,494 790 80.11 51.48 2,638 39 34,624	17,716 7,866 67 3,893 2,294 2,571 973 55.55 22.75 16.69 1,573 110 263 1,946 3,519 203 1,494 790 80.67 51.26 2,638 39 34,624	17,956 2.0% 8,105 5.4% 182 n/m 3,723 (6.1%) 2,234 (8.1%) 2,832 20.7% 1,098 27.4% 54.58 (2.8%) 22.54 (0.7%) 15.32 (12.9%) 1,844 41.4% 132 43.5% 278 18.8% 2,254 38.3% 3,585 3.9% 225 25.0% 1,277 (25.3%) 772 (3.4%) 79.56 (2.7%) 51.36 0.0% 2,221 (27.4%) 39 5.4% 31,419 (7.9%)	18,338 3.5% 8,244 4.8% 248 n/m 3,627 (6.8%) 2,245 (2.1%) 3,132 21.8% 1,196 22.9% 52.34 (5.0%) 19.38 (13.3%) 14.65 (6.0%) 2,149 36.6% 176 60.0% 280 6.5% 2,605 33.9% 3,627 3.1% 254 25.1% 1,061 (29.0%) 730 (7.6%) 76.69 (4.3%) 51.97 1.0% 1,671 (36.7%) 38 (2.6%) 29,769 (14.0%)	18,338 3.5% 8,244 4.8% 248 n/m 3,627 (6.8%) 2,245 (2.1%) 3,132 21.8% 1,196 22.9% 53.61 (3.5%) 20.76 (8.7%) 14.92 (10.6%) 2,149 36.6% 176 60.0% 280 6.5% 2,605 33.9% 3,627 3.1% 254 25.1% 1,061 (29.0%) 730 (7.6%) 78.25 (3.0%) 51.64 0.7% 1,671 (36.7%) 38 (2.6%) 29,769 (14.0%)	18,497 3.0% 8,381 3.4% 339 86.3% 3,180 (14.6%) 2,380 6.5% 3,482 23.0% 1,354 23.3% 50.31 (7.8%) 19.20 (14.8%) 16.81 9.7% 2,452 33.0% 240 81.8% 272 (2.2%) 2,964 31.5% 3,654 1.9% 298 32.4% 871 (31.8%) 678 (12.2%) 76.72 (3.6%) 51.60 0.5% 208 n/m 484.05 n/m 1,168 (47.4%) 37 (5.1%) 28,270 (10.0%)	18,775 2.4% 8,484 2.9% 402 62.1% 3,158 (12.9%) 2,416 7.6% 3,784 20.8% 1,507 26.0% 47.53 (9.2%) 19.05 (1.7%) 16.58 13.2% 2,711 26.2% 298 69.3% 216 (22.9%) 3,225 23.8% 3,709 2.3% 333 31.1% 692 (34.8%) 632 (13.4%) 75.37 (1.7%) 48.96 (5.8%) 203 n/m 475.26 n/m 719 (57.0%) 35 (7.9%) 28,959 (2.7%)	18,775 2.4% 8,484 2.9% 402 62.1% 3,158 (12.9%) 2,416 7.6% 3,784 20.8% 1,507 26.0% 48.96 (8.7%) 19.46 (6.3%) 16.62 11.4% 2,711 26.2% 298 69.3% 216 (22.9%) 3,225 23.8% 3,709 2.3% 333 31.1% 692 (34.8%) 632 (13.4%) 75.90 (3.0%) 50.25 (2.7%) 203 n/m 481.44 n/m 719 (57.0%) 35 (7.9%) 28,959 (2.7%)	19,029 2.9% 8,564 2.2% 424 25.1% 3,061 (3.7%) 2,462 3.4% 4,240 21.8% 1,652 22.0% 45.99 (8.6%) 20.89 8.8% 16.93 0.7% 2,895 18.1% 332 38.3% 194 (28.7%) 3,421 15.4% 3,656 0.1% 344 15.4% 554 (36.4%) 579 (14.6%) 75.40 (1.7%) 45.82 (11.2%) 195 (6.3%) 471.52 (2.6%) 393 (66.4%) 33 (10.8%) 28,637 1.3%	19,471 3.7% 8,585 1.2% 436 8.5% 3,023 (4.3%) 2,511 3.9% 4,676 23.6% 1,747 15.9% 48.16 1.3% 21.46 12.7% 16.20 (2.3%) 3,011 11.1% 337 13.1% 123 (43.1%) 3,471 7.6% 3,640 (1.9%) 343 3.0% 416 (39.9%) 528 (16.5%) 74.13 (1.6%) 43.38 (11.4%) 188 (7.4%) 469.97 (1.1%) 248 (65.5%) 31 (11.4%) 27,015 (6.7%)


											19,471 3.7%
											8,585 1.2%
											436 8.5%
											3,023 (4.3%)
											2,511 3.9%
											4,676 23.6%
											1,747 15.9%
											47.16 (3.7%)
											20.83 7.0%
											16.49 (0.8%)

											3,011 11.1%
											337 13.1%
											123 (43.1%)
											3,471 7.6%

											3,640 (1.9%)
											343 3.0%
											416 (39.9%)
											528 (16.5%)
											74.59 (1.7%)
											44.76 (10.9%)

											188 (7.4%)
											470.16 (2.3%)

											248 (65.5%)
											31 (11.4%)

											27,015 (6.7%)

(i) Included in postpaid handheld mobile SIOs.

(ii) Defined as the three month rolling average of monthly active prepaid users.

(iii) Excludes IoT.

(iv) Included in C&SB bundles and standalone data SIOs.

n/m = not meaningful


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AI assistant

TELSTRA GROUP LIMITED — Annual Report 2021

65927_rns_2021-08-11_863fadc4-a392-4476-a59d-e8cd474f6ef5.pdf

12 August 2021

Office of the Company Secretary

ELECTRONIC LODGEMENT

Telstra Corporation Limited - Financial results for the full year ended 30 June 2021 – CEO/CFO Analyst Briefing Presentation and Materials

TELSTRA FULL YEAR RESULTS

ANDREW PENN – CEO

Slide 1 – Full year results 2021 - Andrew Penn Telstra CEO

Slide 2 – Delivering on our strategy

Slide 3 – Financial headlines

Slide 4 – Operating highlights

Slide 5 – Underlying EBITDA growth ambition

Slide 6 – Underlying EBITDA growth drivers

Slide 7 – T22 achievements to date

Slide 8 – T22 Strategy scorecard

Slide 9 – FY22 priorities

VICKI BRADY – CFO

SLIDE 10 –FULL YEAR 2021 RESULTS

SLIDE 11 – INCOME STATEMENT

SLIDE 12 – INCOME BY PRODUCT

SLIDE 13 – EBITDA by product

SLIDE 14 – EBITDA by half shows improving momentum

SLIDE 15 – Product highlights– mobile momentum

SLIDE 16 – Product highlights – Fixed approaching inflection

SLIDE 17 – OPERATING EXPENSES

SLIDE 18 – FREE CASHFLOW

SLIDE 19 – DIVIDENDS

SLIDE 20 – CAPITAL POSITION

SLIDE 21 – FY22 GUIDANCE

SLIDE 22 – Building financial momentum

Full ear results and o erations review y p

Reported results

Other information

Segment performance

Segment total income

Telstra Consumer and Small Business

Telstra Enterprise

Networks and IT

Telstra InfraCo

All Other

Product performance

Product revenue breakdown

Mobile

Fixed - Consumer and Small Business (C&SB)

Fixed - Enterprise

Fixed - Wholesale

Global

Recurring nbn DA

One-off nbn DA & connection

Other

Expense performance

Labour

Goods and services purchased

Net impairment losses on financial assets

Other expenses

Depreciation and amortisation

Foreign currency impacts

Net finance costs

Financial position

Capital expenditure and cash flow

Debt position

Statement of financial position

Note:

Results of operations

Total income

Total expenses

Statement of Financial Position

Statement of Cash Flows

Average Revenue per Unit (ARPU) ($)

Services in operation (000s)

Workforce

Segment information from operations

C&SB, Enterprise and Wholesale underlying income and fully allocated EBITDA

Product profitability - EBITDA ($M)

Product profitability - EBITDA margins %

Telstra Corporation Limited Half-year comparison - Reported lease adjusted (i) Year ended 30 June 2021

Telstra Corporation Limited Half-year comparison Year ended 30 June 2021

More from TELSTRA GROUP LIMITED

TELSTRA GROUP LIMITED Annual Report 2021


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