TELSTRA GROUP LIMITED — Capital/Financing Update 2016

Jun 22, 2016

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23 June 2016

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 08 8308 1721 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT

Dear Sir or Madam

Telstra completes sale of Autohome Stake

In accordance with the Listing Rules, I attach a market release, for release to the market.

Yours faithfully

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Damien Coleman Company Secretary

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

MARKET RELEASE

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Telstra completes sale of Autohome stake

23 June 2016 – Telstra today announced the completion of its sale of 47.4 percent[1] of the total issued shares in Chinese online business Autohome to Ping An Insurance Group for US$1.6 billion (A$2.1 billion).

Telstra CEO, Andrew Penn, said Telstra would book an accounting gain of A$1.8 billion on the sale, the final amount being subject to a number of completion adjustments including foreign exchange rates.

“As previously announced, most of the proceeds from this sale will be used to fund a capital management program of at least A$1.5 billion to commence in the first half of the 2017 financial year. We will provide more detail on the capital management program at our full year results in August,” said Mr Penn.

“Autohome has been an excellent investment for Telstra and we are pleased to have realised significant value for Telstra shareholders through this sale.

“Ping An will be an important strategic partner for Autohome. Its nationwide footprint in China and experience and expertise in auto financing, insurance and e-commerce mean Ping An is well placed to help Autohome develop outside of its traditional focus on online advertising.”

President of Ping An Trust, Leng Peidong, said that with nearly 300 million online users, 150 million financial customers, longstanding relationships with car manufacturers and distributors, and a nationwide offline service network, Ping An would play an important role in the transformation of Autohome into a full auto transaction service platform.

With the transaction now complete, Telstra retains a 6.5 per cent interest in Autohome. The number of Telstra nominee directors on the Board of Autohome has decreased from six to one.

There is residual litigation in the Cayman Islands relating to Autohome and this transaction which Telstra is contesting.

ENDS

Media contact: Nicole McKechnie, +61 (0) 429 004 617 Email: media@team.telstra.com

Investor contact: Colette Campbell, +61 (0) 475 975 770 Email: investor.relations@team.telstra.com

Ref number: 084/2016

About Telstra

Telstra is a leading telecommunications and technology company offering a wide range of services globally, with a focus on the Asia-Pacific region. We offer a full range of services and compete in all telecommunications markets in Australia, including operating the country’s largest mobile and Wi-Fi networks. Telstra has operated globally for more than 70 years and today we own and operate one of the largest subsea cable networks in the Asia-Pacific. We provide end-toend solutions including managed network services, global connectivity, cloud, voice, co-location and satellite solutions.

1 Since Telstra first announced the transaction with Ping An for 47.7% of shares in Autohome, the company’s total number of issued shares has increased due to new shares being granted as part of Autohome’s employee incentive plans.

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MARKET RELEASE

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Disclaimer:

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. Additionally, any securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or the law of any state of the United States, and may not be offered, sold or resold, directly or indirectly, in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.

This announcement contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Statements that are not historical facts, including statements about Telstra’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Such forward-looking statements are based on numerous assumptions regarding the present and future business strategies of Telstra. All information provided in this announcement is as of the date of this announcement, and Telstra does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

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