TELSTRA GROUP LIMITED — Investor Presentation 2003

Jun 2, 2003

3 June 2003

The Manager

Company Announcements Office Australian Stock Exchange 10th Floor, 20 Bond Street SYDNEY NSW 2000

Office of the Company Secretary

Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA

Telephone 03 9634 6400 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT

Dear Sir or Madam

Sensis Operational Briefing

In accordance with the listing rules, I attach an announcement for release to the market.

Yours sincerely

North Graham

Douglas Gration Company Secretary

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

SENSIS TO GENERATE \$1.2B REVENUE THIS FINANCIAL YEAR

Well positioned for strong growth and expanded local advertising

SYDNEY: Tuesday 3 June, 2003: Sensis Pty Ltd, the wholly-owned advertising subsidiary of Telstra Corporation Ltd, today announced it expected to generate more than A\$1.2 billion in revenue this financial year, approaching EBIT growth of nearly 7.0 percent in excess of A\$620 million.

The company's revenue growth forecast of 6.8% is a substantial increase on the 2.2 percent growth delivered last financial year, and the result of an innovative change program implemented by the management team over the last three years and a general recovery in advertising. Yellow Pages® print is forecast to achieve growth of 3.6 percent. White Pages® print growth of nearly 17 percent, and Sensis' online and electronic businesses growth of nearly 30 percent.

Mr Bruce Akhurst, Telstra Group Managing Director and Sensis Chairman, said Sensis continued to make a significant financial and strategic contribution to the Corporation - on average 10 percent of Telstra's earnings before interest and tax.

"Sensis is an extremely important growth engine for Telstra. The collective growth assets in my portfolio -- Telstra Wholesale, BigPond, Media (which manages Telstra's interest in FOXTEL) and Sensis - are all key to Telstra's long term future.

"Telstra will continue to invest in Sensis next financial year to ensure it takes full advantage of its core print advertising business and also its growing online advertising activities to build shareholder value", said Mr Akhurst.

Sensis' growth strategy and contribution to Telstra were announced by Mr Akhurst and Mr Andrew Day, Chief Executive of Sensis, at a briefing held in Sydney today. Together, they provided insights into Sensis' medium-longer term growth strategy in local, Australian advertising and overseas directories' management.

Mr Day said, "the full-year revenue forecast should not be regarded as a one-off results of this magnitude are achievable for the foreseeable future".

He added that Sensis had a capable and experienced management team that was achieving growth from its directory and new media advertising businesses through a deliberate focus on product innovation, enhancing its go-to-market capabilities and sales excellence.

"Our deliberate, grassroots customer approach is paying dividends, with the company achieving an impressive 7.5 percent revenue growth from its recently concluded non-metropolitan Yellow Pages® sales campaign - the best result in five years".

"Our print directories' business will maintain growth above four percent per annum for the foreseeable future, and our developing online and electronic businesses will continue to deliver growth in excess of 25 percent per annum in an increasingly competitive market", said Mr Day.

Sensis' 13 percent share of national advertising now exceeds that of radio and magazines, and is approximately one-third the size of television and newspapers.

In 2002/3, Sensis' online, electronic and wireless businesses will deliver revenue in excess of \$50 million, making it one of the most successful online companies in Australia. Sensis represents 28 percent of Australia's online advertising spend, with its online advertising solutions in the highest growth areas of search and directories.

"Sensis intends to grow its 13 percent share of Australian advertising by expanding its existing directory and non-directory advertising assets, and pursuing targeted, "bolt-on" acquisitions similar in size and type to the CitySearch^® and BMC Media online advertising businesses that we have successfully integrated into Sensis.

"Our aim is to establish Sensis as the major player in local, Australian advertising and we're well on the way to achieving this. We will also leverage our world class directory management capabilities to pursue potential opportunities to acquire overseas directory companies", said Mr Day.

Sensis understands the challenges associated with its growth strategy and will be an intelligent partner or acquirer of local, advertising assets in Australia and directory assets overseas.

Mr Day emphasised that Sensis was an advertising business with a different strategy, different identity and different core competencies from a telecommunications company.

"Our new corporate identity was introduced last August to provide an umbrella for all the company's advertising activities across print, voice, online and wireless. The brand reflects the very essence of our business; keeping people like you and me in touch with the people, businesses and places they're looking for - 24 hours a day, seven days a week", said Mr Day.

-ends-

About Sensis Ptv Ltd

Sensis is a leading Australian information, advertising and directories business, providing print, voice and online products and services to more than 420,000 customers nationally, about 90 percent of whom are small and medium enterprises (SMEs). As a national, wholly-owned subsidiary of Telstra Corporation Limited, Sensis manages two of Australia's leading brands, Yellow Pages® and White Pages®, along with the Internet city guide, CitySearch®, and the interactive location and navigation brand, Whereis®. For more information, visit the corporate Internet site at www.sensis.com.au.

® and ™ - registered trade mark and trade mark of Telstra Corporation Limited CitySearch® - registered trademark of CitySearch Australia Pty Ltd

Further Information:

Felicity Hand: +61 3 9201 4785 or +61 417 566 061 Prue Christie: +61 3 9201 4203 or +61 438 588 460 Karina White: +61 3 9201 4488 or +61 419 523 776

Cautionary statement regarding forward-looking statements

an di kacamatan Sababara

This presentation includes certain forward-looking statements that are subject to various risks and This presentation includes certain forward-looking statements that are subject to various risks and
uncertainties. Actual results, performance or achievements could be significantly different from those
expressed in, or im taking place in the directory, advertising and publishing industries, as well as in the Internet, mobile and
telecommunications arenas.

Note on relationships between corporate entities

The Common Common Property

BARBAR

Sensis Pty Ltd is the wholly-owned advertising subsidiary of Telstra Corporation Limited. Sensis is
Sensis Pty Ltd is the wholly-owned advertising subsidiary of Telstra Corporation Limited. Sensis is
responsible for the co accordingly.

EXPOSITION Maria Alexandria de Santo de Santo de Santo de Santo de Santo de Santo de Santo de Santo de Santo de Santo de Ktarit
Presentation Timings
Session 1: 9.30am - 11.00am - Introduction
Operational Performance of Sensis' Core and Developing Businesses ÷ Questions and Answers ٠
$Session 2: 11.15am - 12.30pm$
Introduction - Sensis' Medium-Longer Term Growth Strategy
- Sensis and the Local Advertising Market - International Directory Opportunities
Questions and Answers ł. Close	ShoetC

Libraries Mariae Oresonal SIGNAL STORE
		SSISS
Sensis' portfolio and vision
Delivering a targeted, multi-channel solutions ×. portfolio:	Information Services Products and Brands	Online
Directories advertising Non-directories advertising - Information services	Electronic Procurement Solutions: Electronic White Pages ® Macromatch® . Whereis' s	Winetess
Leveraging five key brands: Sensis 18 a.
White Pages® Yellow Pages®	A MARINE AND A STATE OF STATE Representative and international contracts	Cistine
Whereis ® CitySearch®	Grzechodowania (	Wirwiess
. To:
Small and medium enterprises Government	Directories Advertising	Prénti
The corporate sector	Brands Yellow Pages ® directories	Ordere
A company with the vision to be	Yellow Pages® OnLine Yellow Pages ti Connect White Pages® directories	Voice
The first step in every Australian contact connecting people, businesses and places	White Pages 3 OnLine	Winetecs

PERSONAL PROPERTY		Medifery Orsenard			ktersk
	Leveraging core advertising capabilities into a clear strategy for growth
Core Business Print directory brands Yellow Pages# print White Pages®print	Directory Advertising New media directory brands Yellow Pages® OnLine White Pages's OnLibre Yellow Pacear® Connect	New media advertisino brands. CitySearch® Whereisk Seitsis MediaSmart tis Look Listingers	Developing Products Non-dimensionalism Information services: and brands. Electronic Procurement. Soibiliose Sensie WebWorksth Cocation and nevigation Electronic While Pacean Macromatch e	Adetratiscu tocal advertisina	International disectories thanks. The report pres-
care business. - New products - Improve sales force effectiveness and customer focus - Value-based pricing - Develop CRM capability - Technical integration	Continuously extract value from our	Grow revenue and earnings from our developing products Grow corporate/government uptake - Consolidate e-procurement offerings ãu:de	- Expand location and navigation services - Reposition CitySearch® web site as a city . Grow Servis MediaSmart on market share All underpinned by the Sensis Customer Charter. People Commitment and Corporate Identity	Where shareholder value is created canniches die new present werk- setzione della contratti di anno di Control barriado de la local The provincing about the problem	. Medi vegen templet ilu kesa sejä par vare i binayê wate baketa, patindiya vot Shoets

The communication of the communications of Cleaguages		Ferr
A focus on Asia with a watch on European opportunities
1. Asia Most directory businesses relatively small compared to Australia - offering strong growth opportunities Our focus is on South Korea. Sew Zealand and China. Key challenges from a cultural and legal/requlatory perspective A stumber of assets becoming available Fit with Telstra's Asiari Strategy	2. Europe · Proven business model for Yellow Pages directories bissiness · Market characterised by high degree of concentration Copyright protection offered in most countries. Potential for growth $\blacksquare$ Low level of requiation except UK Consolidation currently taking place · Private Equity firms increasingly active in the market. · Asset owners highly geared - potential to offer directories business for sale	3. North America US. . No copyright protection · Increasingly competitive - large number of directories · Mature market with few arowth opportunities . Strong online position of non- directories businesses Canada · Dominant player on Eastern side - Bell Actimedia . More competitive in West - province based . Copyright protection available

PARTY STATE REAL PROPERTY OF STRAIGHT	Kun
In summary
A\$1.215bn FY03 revenue (forecast)
6.8% FY03 revenue and EBIT growth (forecast)
A clear strategy for sustainable growth
Organic growth leveraging the core product portfolio into new online and offline solutions Parašei acquisition opportunities where they add value
Sensis will be the leading player in local Australian advertising
Sensis will consolidate its position as a major player in Asian directories

	Sept
	A\$2.8bn
EBIT A\$.	-584m
Free cashflow:	A\$ 525m aag
	TIME COMMUNISTIC Asset ownership structure and key financials Contribution to Telstra: 2002 Total asset value External Revenue: A\$1,139m