TELSTRA GROUP LIMITED — Capital/Financing Update 2017

Aug 29, 2017

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30 August 2017

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 8600 9800

ELECTRONIC LODGEMENT

Dear Sir or Madam

Telstra nbn receipts monetisation proposal

In accordance with the Listing Rules, I attach 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

30 August 2017

Telstra nbn receipts monetisation proposal

Telstra announced a proposal to the market on 17 August to monetise a portion of its locked-in recurring nbn receipts.

This proposal was subject to agreement and a number of steps including approvals and consents from investors, the Commonwealth Government and nbn co.

While the proposal is well progressed and supported by equity and debt investors, Telstra has been advised this morning that technical consents from nbnco will not be forthcoming.

nbn co stated: “Essentially we can’t see how nbn’s position can be protected/improved by Telstra’s securitisation plan especially given the unpredictability of our operating environment in the 2020s.”

The proposed transaction highlighted the significant value in Telstra’s core underlying telecommunications infrastructure as represented by the potential nbn monetisation opportunity. The process has shown the value of these payments to Telstra shareholders.

Telstra also confirmed that its shares trade ex-dividend today.

Media contact: Jon Court, +61 (0) 408 423 516 Email: media@team.telstra.com Investor contact: Peter Kopanidis, +61 (0) 412 171 673 Email: investor.relations@team.telstra.com