TELSTRA GROUP LIMITED — Investor Presentation 2003

Mar 25, 2003

26 March 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

Dr Switkowski's presentation to Credit Suisse First Boston - Asian Investment Conference

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

Yours sincerely

Pont brak

Douglas Gration Company Secretary

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

1999 - Marie Marie Marie Marie II - Anti-Amerikaanse politike

Dr Žiogy Swikowski Chief Executive Officer - Telstra Corporation Limited March 2003

Strong Cash Flow and Dividend Growth

• Underlying Result

(\$ billions except EPS/DPS) (1)	1H02	1H03	$\%$ $\triangle$
Sales Revenue	10.2	10.2	(0.1)
Operating Expenses	5.2	5.2	(0.1)
EBITDA	5.2	5.2	(0.9)
EBIT	3.6	3.5	(3.3)
NPAT & MI	2.3	2.2	(4.1)
EPS (cents) (2)	17.5	16.8	(4.1)
DPS $(cents)^{(3)}$	11.0	15.0	36.4
Free Cash Flow	1.4	2.1	54.1
Operating Capex	1.7	1.6	(7.9)
Reported Sales	10.3	10.5	2.0
Reported EBIT	3.4	2.6	(25.9)

Underlying result enables a like for like comparison between accounting periods. See normalisation schedule attached to the Financial Highlights for detailed adjustments

Based on 12,867 million shares $\overline{2}$

3 Includes a 3 cent special dividend $\overline{2}$

E JAN

Differentiating Telstra

• Full service model $\bullet$
• Service Excellence
• Bundling
• Growing PSTN revenues
• Effective wholesale model
• Yield# $5.8\%$
• Capital management pro active consideration
• Strong free cashflow ۰
• Rigorous CAPEX management ۰
• Balance sheet strength = strong credit rating AA- (S&P) ۰

Full Service Integrated Telecommunications Company

calculated @ 19 March 2003, using dividends paid or payable in year ending 30 June 2003

3

Multiple Strong Businesses

Balanced Customer Base^#

Revenue Change 1H03 Compared with 1H02

Strength through customer reach

excludes Sensis and International

$\,$ 5

Exclusive

Diverse Revenue¹ Streams

Strength through diversity

1. Relates to underlying sales revenue

*Other Sales & Service includes other sales & service, payphones & customer premise equipment

$6\phantom{.}6$

ASSICI

Single Bill & Bundling Driving Consumer Segment Growth

Revenue per Access Line Increasing

Quarterly revenues annualised

Innovation & pricing driving growth in a mature business stream

8

Mobiles Model Delivers

Decline in SACs* 02/03 due to reduction in handset subsidies (subsidies used tactically)

Strongly increasing EBIT & cash flow

Organisational Alignment & Cost Management

Process management facilitates cultural change

$10$

Exclusive

Migration Impacts Mitigated

Telstra's cash flow - how used

Solid Yield with Premium Characteristics

Shareholder value in low growth environment

As at 10/2/03

360.

Outlook

Issues under close

Management

• Regulatory environment
• Further cost reductions
• $\cdot$ Reach
• Growth catalysts

Full Year Financials

• Underlying revenue and EBIT numbers expected to be broadly similar to fiscal 2002
• Margins to be maintained
• Core CAPEX - \$3.2bn to \$3.3bn FY 2003, \$3bn FY 2004

14