TELSTRA GROUP LIMITED — Interim / Quarterly Report 2021

Jan 12, 2021

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13 January 2021

Office of the Company Secretary

Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA

The Manager

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

General Enquiries 03 8647 4838 Facsimile 03 9650 0989 companysecretary@team.telstra.com

Investor Relations Tel: 1800 880 679 investor.relations@team.telstra.com

ELECTRONIC LODGEMENT

Dear Sir or Madam

Restatement of prior periods' product reporting framework

As foreshadowed at our November 2020 Investor Day, Telstra is changing its product reporting framework disclosures and associated KPIs. The restated product reporting framework is the result of a review to drive simplicity and better alignment with how we go to market, our T22 strategy and our financial ambitions.

A presentation regarding the new product reporting framework is attached.

In order to assist the market when reviewing Telstra’s 2021 half-year results to be released on 11 February 2021, a detailed income statement, associated KPIs and summary product EBITDA for the financial years ending 2019 and 2020 is also attached and available at the Telstra Investor site: www.telstra.com.au/aboutus/investors/financial-information/financial-results

The figures have been restated for the new product reporting framework. The restatement relates to product reporting only and does not impact income, expenses, EBITDA or profit measures at an aggregate Telstra level. The restatement is subject to auditor review as part of our half-year 2021 financial reporting process

Authorised for lodgement by:

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Sue Laver Company Secretary

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

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Telstra Corporation Limited Half-year comparison - Reported lease adjusted (i) Full-year ending 30 June 2020

Note that the restatement is subject to auditor review as part of our half-year 2021 financial reporting process

Summary management reported half-yearly data ($ Millions) Total income 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 (ii) Off-net fixed (ii) 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 Recurring nbn DA Other product income (iii) One-off nbn DA and connection Total income	Half 1	Half 2	Full year	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
	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%)
	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%)
	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%)
	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%)
	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%)
	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%)
	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 0.0% 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%)
	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%)
	768 304 247 1,308	816 338 491 974	1,584 642 738 2,282	803 4.6% 374 23.0% 177 (28.3%) 992 (24.2%)	902 10.5% 410 21.3% 167 (66.0%) 1,124 15.4%	1,705 7.6% 784 22.1% 344 (53.4%) 2,116 (7.3%)	846 5.4% 432 15.5% 188 6.2% 1,039 4.7%	879 (2.5%) 442 7.8% 179 7.2% 965 (14.1%)	1,725 1.2% 874 11.5% 367 6.7% 2,004 (5.3%)
	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%)

Telstra Corporation Limited Half-year comparison - Reported lease adjusted (i) Full-year ending 30 June 2020

Note that the restatement is subject to auditor review as part of our half-year 2021 financial reporting process

Summary management reported half-yearly data ($ Millions) Total expenses Labour Goods and services purchased Net impairment losses on financial assets Other expenses Operating expenses Share of net profit/(loss) from equity accounted entities Earnings before interest, income tax expense, depreciation and amortisation (EBITDA) Depreciation and amortisation Earnings before interest and income tax expense (EBIT) Net finance costs Profit before income tax expense Income tax expense Profit for the period	Half 1	Half 2	Full year	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
	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%)
	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
	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%
	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%
	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%
	1,692	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%)

(i) From 1 July 2019 we have adopted AASB 16: ‘Leases’ on a prospective basis, i.e. no restatement of the comparative period. As a result, Reported 1H21 excludes impact of leases

classified as operating leases in 1H20 where Telstra was a lessee. The operating lease expense recognised in ‘other expenses’ (part of EBITDA) for 1H20 have been ‘replaced’ by depreciation of right-of-use assets (below EBITDA). Refer to note 1.5.1 to the half-year financial statements for further details regarding AASB 16 adoption impacts. Given different accounting treatment of leases in 1H21 compared to 1H20, ‘Reported Lease adjusted’ provides a like-for-like view of our mobile handset leases (Telstra as a lessee) which for management reporting purposes continue to be treated as part of operating performance results. In particular 1H21 has been adjusted to include the reported depreciation of mobile handsets right-of-use assets in EBITDA, and for illustrative purposes 1H20 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 Full-year ended 30 June 2020

Note that the restatement is subject to auditor review as part of our half-year 2021 financial reporting process

Summary management reported half-yearly data Selected statistical data Mobile Total retail mobile SIOs (thousands) Postpaid handheld mobile SIOs (thousands) Belong postpaid handheld mobile SIOs (thousands) (i) Mobile broadband (data cards) SIOs (thousands) Prepaid mobile handheld unique users (thousands) (ii) Internet of Things (IoT) SIOs (thousands) Total wholesale mobile SIOs (thousands) Average postpaid handheld revenue per user per month ($) Average prepaid handheld revenue per user per month ($) Average mobile broadband revenue per user per month ($) nbnTM premise connections Bundle connections (thousands) Belong (thousands) Voice only connections (thousands) Total nbnTM premise connections (thousands) Fixed - C&SB C&SB bundles and standalone data SIOs (thousands) Belong fixed data SIOs (thousands) (iii) C&SB standalone voice SIOs (thousands) Foxtel from Telstra (thousands) Average C&SB bundle and standalone data revenue per user per month ($) Average C&SB standalone fixed voice revenue per user per month ($) Fixed - Enterprise Data & connectivity SIOs (thousands) Average data & connectivity revenue per user per month ($) Fixed - Wholesale Fixed legacy SIOs (thousands) Data & connectivity SIOs (thousands) Labour Telstra FTEs incl contractor/agency	Half 1	Half 2	Full Year	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
	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% 1,203 23.6% 52.34 (5.0%) 19.38 (13.3%) 14.64 (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% 1,203 23.6% 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% 1,376 25.3% 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% 1,550 28.8% 47.53 (9.2%) 19.05 (1.7%) 16.58 13.3% 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% 1,550 28.8% 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%)

(i) Included in postpaid handheld mobile SIOs.

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

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

n/m = not meaningful

Telstra Corporation Limited Half-year comparison Full-year ending 30 June 2020

Note that the restatement is subject to auditor review as part of our half-year 2021 financial reporting process

Summary Product EBITDA ($ Millions) Total income	Half 1 Half 2 Full year	Half 1 Half 2 Full Year
	Dec-18 Jun-19 Jun-19	Dec-19 Jun-20 Jun-20
Mobile Fixed - C&SB - Data & connectivity - NAS Fixed - Enterprise Fixed - Wholesale Global Recurring nbn DA Other	5,348 5,301 10,649 2,794 2,691 5,485 656 625 1,281 1,452 1,672 3,124 2,108 2,297 4,405 1,202 1,117 2,319 803 902 1,705 374 410 784 176 165 341	5,355 4,775 10,130 2,623 2,460 5,083 607 586 1,193 1,371 1,542 2,913 1,978 2,128 4,106 952 920 1,872 846 879 1,725 432 442 874 174 160 334
Underlying	12,805 12,883 25,688	12,360 11,764 24,124
One-off nbn DA and connection Guidance adjustments	992 1,124 2,116 1 2 3	1,039 965 2,004 14 19 33
Reported lease adjusted	13,798 14,009 27,807	13,413 12,748 26,161
EBITDA
Mobile Fixed - C&SB - Data & connectivity - NAS Fixed - Enterprise Fixed - Wholesale Global Recurring nbn DA Other	1,934 1,823 3,757 550 488 1,038 449 410 859 108 257 365 557 667 1,224 598 589 1,187 126 145 271 345 386 731 39 -44 -5	1,870 1,607 3,477 385 182 567 390 407 797 160 192 352 550 599 1,149 431 466 897 181 196 377 405 415 820 53 69 122
Underlying	4,149 4,054 8,203	3,875 3,534 7,409
Net one-off nbn DA less nbn net C2C Restructuring Otherguidance adjustments	752 861 1,613 -328 -473 -801 -90 -491 -581	788 748 1,536 -183 -63 -246 -1 -287 -288
Reported lease adjusted	4,483 3,951 8,434	4,479 3,932 8,411
EBITDA Margin
Mobile Fixed - C&SB - Data & connectivity - NAS Fixed - Enterprise Fixed - Wholesale Global Recurring nbn DA Other	36.2% 34.4% 35.3% 19.7% 18.1% 18.9% 68.4% 65.6% 67.1% 7.4% 15.4% 11.7% 26.4% 29.0% 27.8% 49.8% 52.7% 51.2% 15.7% 16.1% 15.9% 92.2% 94.1% 93.2% 22.2% -26.7% -1.5%	34.9% 33.7% 34.3% 14.7% 7.4% 11.2% 64.3% 69.5% 66.8% 11.7% 12.5% 12.1% 27.8% 28.1% 28.0% 45.3% 50.7% 47.9% 21.4% 22.3% 21.9% 93.8% 93.9% 93.8% 30.5% 43.1% 36.5%
Underlying	32.4% 31.5% 31.9%	31.4% 30.0% 30.7%
Net one-off nbn DA less nbn net C2C Restructuring Otherguidance adjustments	75.8% 76.6% 76.2% NM NM NM NM NM NM	75.8% 77.5% 76.6% NM NM NM NM NM NM
Reported lease adjusted	32.5% 28.2% 30.3%	33.4% 30.8% 32.2%