TELSTRA GROUP LIMITED — Investor Presentation 2007

Aug 8, 2007

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9 August 2007

Office of the Company Secretary

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

Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA

Telephone 03 9634 6400 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT

Dear Sir or Madam

Full Year 2007 Results – CEO/CFO Analyst briefing presentation

In accordance with the listing rules, I enclose a presentation for release to the market.

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Douglas Gration Company Secretary

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

FY 2007 Results

Sol Trujillo

Chief Executive Officer

Disclaimer

• These presentations include certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Telstra, which may cause actual results to differ materially from those expressed in the statements contained in these presentations. For example, the factors that are likely to affect the results of Telstra include general economic conditions in Australia; exchange rates; competition in the markets in which Telstra will operate; the inherent regulatory risks in the businesses of Telstra; the substantial technological changes taking place in the telecommunications industry; and the continuing growth in the data, internet, mobile and other telecommunications markets where Telstra will operate. A number of these factors are described in Telstra’s 2006 20-F.

• All forward-looking figures in this presentation are unaudited and based on A-IFRS. Certain figures may be subject to rounding differences. All market share information in this presentation is based on management estimates based on internally available information unless otherwise indicated.

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2

1

Delivering on the promise…

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PSTN Revenue
• Mobile service revenue growth at 9.8% YoY
Mobiles • 2 million 3GSM customer milestone passed (1m Next G™)
• Next G™ speed and coverage setting global benchmarks 2H04 2H05 2H06 2H07
• Broadband momentum continues – revenue growth -2.5%
Broadband exceeds cost growth
• 2H - ARPU +7.7%, market share +2pp, SIOs +27%
• Innovation – Second Life, BigPond TV, I-Pond, BigBlog -7.6%
• Residential SIO performance +54k yoy
PSTN • Revenue decline slowed further in H2 to -2.5% Mobile Services Revenue
• MBM segmentation reducing churn
13.0%
• Sensis: World class revenue and margin performance
• Foxtel: SIOs +13%, ARPU +3%, EBITDA +40%
Media-comms • Telstra online network ranked 3 [rd] in Australia by visitors
• SouFun: Expanding into new markets
4.7%
• Next G™ and Next IP™ delivered and ahead of
schedule 2H05 2H06 2H07
Transformation • First IT drop on schedule by end calendar 2007
• FY07 peak spend year – margins to improve
3
…continuing to pressure the competition
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FY2007 Financial Results (Reported)

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$ billions (except margins & DPS)
FY06 FY07 % Guidance
Sales Revenue 22.7 23.7 4.2 +2.5 to +3.0%
Operating Expenses 13.5 14.1 4.4
EBITDA 9.6 9.9 3.0 On or ahead
of guidance
EBITDA Margin (%) 42.2 41.7 0.5pp
EBIT 5.5 5.8 5.1 +3.0% to 5.0%
PAT [1] 3.2 3.3 2.9 +7.1%
Cash Operating Capex 4.3 5.7 32.8 $5.4 to $5.7bn
Free Cash Flow 4.6 2.9 -36.7 UnderlyingEBIT [3]
Ordinary DPS (cents) [2] 28.0 28.0 - 28 cps
(1) Before minority interests
(2) FY06 excludes 6 cent per share special dividend
(3) Excluding Trading Post write-down
4
Building track record of delivery
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2

Transformation Impact

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Net benefits of transformation
2000 • We expect cumulative
transformation benefits to turn
positive from FY09
1000
Driven by...
0
-1000
• World class networks
FY06 FY07 FY08 FY09 FY10
• Headcount reduction
Annual net benefits Cumulative net benefits
• Reduced complexity
5
Leveraging transformation investment into long-term benefits
$m
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World Class Performance

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PSTN retail line loss Broadband KPIs Mobile Service revenue growth of
0% $60 50% 15% national incumbent
45%
10%
-4%
$50 40%
5%
35%
-8%
0%
2H05 1H06 2H06 1H07 2H07 $40 30% 1H06 2H06 1H07 2H07
2H05 1H06 2H06 1H07 2H07
Telstra US Avg Europe Avg
Retail Market Share Retail ARPU Telstra Europe Avg US Avg
• Positive retail revenue • World class combination – • Leveraging Next G™
growth May-June growing market share and competitive advantage
• Positive retail churn since ARPUs • Closing the gap on US
October • Superior mobile broadband incumbents
offering – ARPU $100+
• Improved usability through
personalisation
• World best practice churn 15%
6
Defying global trends
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1

Accelerating trends - mobiles

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3G % of base
Telstra’s % of 3G Market
Adds
80% 25%
60% 20%
15%
40%
10%
20% 5%
0%
2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1H06 2H06 1H07 2H07
3GSM 2100 Next G ™ Telstra VOD EU Avg TIM Italy
• Continue to take 60% • World class performance
of 3G net adds
• Increasing 3G % of base
- 4% at launch of Next G™
- 22% at June 07
management estimates
Next G™ delivering world class performance
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7
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Accelerating trends - mobiles

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H2 Stats
• My Place visitors
+90%
• Over 1 million video 2G v 3G Postpaid ARPU
calls 3G
$20
• Active visitors to 2G 2,117k
Sensis Search by EVDO
Mobile +39% 3G SIOs
• Monthly minutes of 1,180k
use per SIO +53%
417k 3GSM
• +50% BigPond
Mobile Active Users
• Almost 400k music
downloads Jun 06 Sep 06 Dec 06 Mar 07 Jun 07
• Over 300k game
downloads
8
Changing the game in customer behaviour…leading the market
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4

BigPond initiatives in New Media

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New Paid Content
Available online and on Next G™
Members have grown
by 40% yoy
BigPond is the most
visited real world site Launched: 2 July 2007
Launched: 9 March 2007
New I-Pond
User-generated
internet experience New TV
Revolutionising
how our
More than 7k unique customers
60k unique visitors
visitors per week since launchenjoy TV on
Next G
Free Content Launched: 19 July 2007
Available online and on Next G™
9
Establishing a customer-centric world class Web 2.0 platform
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Sensis – World Class Performance

Emerging businesses revenue growth +34% New initiatives to leverage SouFun’s •Triple digit sat nav unit sales platform and customer base •MediaSmart revenues +93% • Mortgages - Opportunities in second hand housing market World class revenue/margin mix • Insurance •Yellow online revenue +29%, - Leveraging customer base to cross-sell usage +13% SouFun Financial Performance Simplified pricing stimulating volumes, revenue +14% +151% +97% Challenging competitive environment Revenue EBIT •$110m write down A cornerstone of media-comms strategy

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• Insurance
-
Leveraging customer base to cross-sell
SouFun Financial Performance
+151%
+97%
Revenue EBIT
10
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5

Accelerating trends - FOXTEL

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Subscriber revenue
• Direct SIOs +13% to 1.3m
• Market leading ARPU +3% +13%
• World class churn below 12%
1.2
• iQ penetration +6pp to 16% 0.9 1.1
0.8
FY04 FY05 FY06 FY07
EBITDA
+40%
• 12 + 4 bonus channels 237
• 50k FOXTEL by Mobile SIOs +18% 169
• Complementary to BigPond TV -9
FY06 FY07
-79
FY05
Foxtel equity accounted – no P&L benefit due to accumulated losses FY04 11
Australia’s leading pay-TV platform
$bn
$m
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Transformation progress - Networks
Progress to date
• Rolled out ADSL2+, now with 55% coverage
Access • HFC upgrade: 30Mbps to 1.7M homes by end of CY07

• Next G™ upgrade to 7.2Mbps data cards coming
• Next IP™ launched
Core  • TID migration completed; RDN migration underway
• Increased capacity and scalability; core is 99.999% reliable
• 124 caps and exits completed
Platform  • FY07 savings: Approximately $55M
12
Building world class capability
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6

Transformation progress – IT

Targets & Timing

Achievements

Decommissioning:

Target: Reduce and simplify systems

• 80% ‘out of box’ requirements

• Aiming to deliver significantly improved customer experience

• Increase cost savings and efficiencies

• Exited 213 systems since Nov 2005 - 132 in FY07

• On track to achieve 80% reduction by FY10

Capabilities Delivered:

• •Service Delivery Platform (TSDP) delivered to support Next G launch

• •Integrated Desktop - single login to multiple Front of House systems for some contact centres

Timing: On Track:

• 1st release at the end of calendar 2007

• 2nd release in late calendar 2008

• •Campaign management tool - Sales strike rates doubled

• •Enterprise Program Management (EPM) - a global, off the shelf database product for project and program management

• •Introduced 'out of the box' OnePlan Access application for Telstra's planners

• •Added 4,500 sq metres of additional data processing and storage space

• •Installed 100 Sun Fire E25K servers to handle mission critical work

IT transformation: On track, on budget, on time.

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13
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Transformation progress – MBM/channels

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Outbound sales
Contact Volumes: 6m
Segmented lists
• Needs-based product set Strike rates: doubled to 16%
• Words that work
• Time for day New services: 400k
• Preferred medium
• Test & learn
Incremental revenue: $200m
1. Channel remuneration -$48M over 2
Channel Initiatives yrs
• Points of Presence 2. 65 new branded retail locations,
including first Telstra Business Centre
• Improved management
• Dealer measures 3. Owned and licensed shops sales
+25%
14
Delivering tangible benefits…….more to come
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7

Transformation progress –productivity/culture

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Fieldforce

• Technician productivity +17%

• Revisits down 36%

• FOH clearance +12% through new metrics & improved management

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Call centre integrated desktop
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Learning Academy

• 12,000 people trained in first 11 months

• Log in time down 60%

• Transaction key-in time down 22%

• 5,500 instructor-led training days to be delivered in 2008

• Reduced error rate

• Real-time sales reporting • Purpose-built centres in Sydney enabled and Melbourne: 9,300 students per year

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Building on early gains
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15
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Maintaining competitive advantage
Competitors
• 14.4Mbps network speed to 98.8% of • 3.6Mbps to only 55% of
Wireless population – world class  population
 • Superior depth at 850MHz • Inferior depth at 2100MHz
HFC • 30Mbps to 1.7m homes in CY07  • 9.9Mbps to 1.4m homes
• 17Mbps to a further 1m homes

Content • Integrated content across media-commsassets • 3 [rd] party content only and
  limited integration
Customers • Leading market share across all products • Lacking scale in key
 and services  products and services
Distribution • 300 shops • 150 shops


16
Leveraging our truly unique asset portfolio
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8

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Unlevel playing field
$25 ULL Price Comparisons (Aust Band 2)
Canada
• Canada – Similar
$20 population density to
Australia but ULL price
Norway
Belgium Sw ede n Finland 66% higher
$15 Germany UK Spain US Iceland • Iceland – LSS price morethan twice Australia’s
France Australia
Netherlands Portugal
Denmark
Italy
$10
Dense Population density (per sq. km) Sparse
17
Beating the competition despite regulatory “free kicks”
ULLS monthly charges ($A equivalent)
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Summary
Transformation
World-class performance Media-comms/integration
• Mobile growth • BigPond
• Broadband ARPU • Foxtel
• PSTN lines • Sensis
• NextG™/NextIP™ integration
TODAY TOMORROW
Shareholder value
18
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9

FY 2007 Results

John Stanhope Chief Financial Officer

Disclaimer

• These presentations include certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Telstra, which may cause actual results to differ materially from those expressed in the statements contained in these presentations. For example, the factors that are likely to affect the results of Telstra include general economic conditions in Australia; exchange rates; competition in the markets in which Telstra will operate; the inherent regulatory risks in the businesses of Telstra; the substantial technological changes taking place in the telecommunications industry; and the continuing growth in the data, internet, mobile and other telecommunications markets where Telstra will operate. A number of these factors are described in Telstra’s 2006 20-F.

• All forward-looking figures in this presentation are unaudited and based on A-IFRS. Certain figures may be subject to rounding differences. All market share information in this presentation is based on management estimates based on internally available information unless otherwise indicated.

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1

FY2007 Financial Results (Reported)

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$ billions (except margins & DPS)
FY06 FY07 % Guidance
Sales Revenue 22.7 23.7 4.2 +2.5 to +3.0%
Operating Expenses 13.5 14.1 4.4
On or ahead of
EBITDA 9.6 9.9 3.0 guidance
EBITDA Margin (%) 42.2 41.7 0.5pp
EBIT 5.5 5.8 5.1 +3.0% to 5.0%
PAT [1] 3.2 3.3 2.9 3.5%
Cash Operating Capex 4.3 5.7 32.8 $5.4 to $5.7bn
Free Cash Flow 4.6 2.9 -36.7 Domestic Sales
Revenue
Ordinary DPS (cents) [2] 28.0 28.0 - 28 cps
(1) Before minority interests
(2) FY06 excludes 6 cent per share special dividend
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Earnings inflection point crossed
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4.2%
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Sales Revenue Drivers: $23.7b +4.2% $961m

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Drivers of FY07 FY07 FY07
Revenue Growth 1H07 / 2H07 Movement (%) Growth Movement Actual
% ($m) ($m)
Total Mobiles 12% 16% 13.9 695 5,701
• Mobiles Services 7% 13% 9.8 444 4,983
• Mobiles Handsets 70% 41% 53.7 251 718
Retail broadband 50% 80% 66.2 483 1,213
Sensis [1] +7% +10% 7.8 142 1,968
IP access 21% 36% 29.5 101 443
Wholesale broadband 34% 11% 21.1 99 568
Specialised data -11% -9% (10.0) (88) 796
PSTN products -5.6% -2.5% (4.1) (309) 7,190
= 1H07 movement = 2H07 movement (1) Adjusted for the deferral of the Melbourne Yellow Book from 1H to 2H
Continued growth in key markets…strong second half momentum
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4
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2

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Retail Broadband : $1.2b +66.2% $483m
Market Share and SIOs Retail Broadband ARPU
47%
Retail market share 45% 100
44%
43%
80
41%
60
2,406k
1,890k
1,177k 1,506k 40
861k
20
FY05 1H06 FY06 1H07 FY07
Subscribers Includes retail broadband, mobilebroadband and internet direct (retail ADSL) 1H05 2H05 1H06 2H06 1H07 2H07
customers
• Revenue outgrowing costs
• World’s best practice churn of 15%
• 24% of broadband customers on plans greater
than 1.5Mbps
($ ARPU)
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Market share and ARPU growth
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5
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Mobiles: $5.7b +13.9% $695m
12 Subscribers CDMA SIOs at June 07 1,126k
Handsets (‘000s)
9
Prepaid 468
Postpaid 544
6
EVDO 114
3
Total Mobile Revenue
0
Q406 Q107 Q207 Q307 Q407
+13.9% 5.0% 1.5% $5,701m
2GSM 3GSM CDMA
7.3%
$5,006m (10.6%) 12.4% (1.7%)
• Mobile services revenue up 9.8% (13.0% in 2H)
• Data as a % of mobile services revenue up 6pp to 25%
• 3GSM SIOs exceed 2 million (1m Next G™)
• ~60% share of 3G net adds from ~30% prior to Next G™
FY06 2GSM 3GSM CDMA Data Handsets Other FY07
Management estimates
does not include the 136k CDMA prepaid customers who have been suspended
from operation but not yet removed as a subscriber because of system limitations
3G market leader….strong data growth 6
Millions
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Mobile Data: $1.1b 50.1% +$367m
2G v 3G Cohort ARPU uplift
$100 SMS revenue +30%
Early adoption uplift  SMS messages +62%
 Revenue per active user up
 Active SMS users up
Non SMS revenue +92%
 Active data users +28% since Oct
 Foxtel by Mobile streamed
minutes up
$50  Video call MOU up
Aug 06 Sep 06 Oct 06 Nov 06 Dec 06 Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07
2GSM 3GSM
$100+
 Sustained ARPU uplift
 Voice MOU 16% Data Card ARPU (per month)
 SMS ARPU 22%
 Non SMS ARPU 41%
2G customers migrating to Next 7
3G driving sustained uplift in ARPU v 2G G™ in October 2006
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Mobiles Margin

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Average 3G Postpaid SARCs EBITDA margin
50%
30%
1H06 2H06 1H07 2H07 1H06 2H06 1H07 2H07
•EBITDA margin up around 4pp
from 1H07
8
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3G growth driving margin improvement
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PSTN: $7.2b -$309m4.1%
Revenue Growth 8.2 Closing Subscribers 10.2
0.0% 2H04 2H05 2H06 2H07 8.0 10.0
(2.5%)
7.8 9.8
(4.0%)
7.6 9.6
(8.0%) Pivot Point (7.6%)
2H05 1H06 2H06 1H07 2H07
Retail lines Total Basic Access lines
• Added 38k retail lines in 2H07 - first time since 2001
• In 18 months, slowed revenue decline by 5pp from -7.6% to -2.5%
• MBM driving much of the improved PSTN performance
• 356k consumers on subscription pricing plans
• 3+ product customers grew 23% YoY to just over 1 million
9
Millions (Retail)
Millions (Basic Access)
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World class performance….positive churn since October
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Sensis: $2.0b +8.0% $147m
Revenue
+8.0%
$1, 974m • Directories +4% to $1.5 billion
SouFun
$1,826m $49m • Yellow™ online growth of 29%
+5.3% Core • White Pages [®] +9.6%
Core
• Emerging business +34%
FY06 FY07
EBITDA Margin • Customer focused investment
54.8%
53.7%
• Innovations – Yellow™ on mobile
Investing
in the • Online usage +15%
future
• Trading Post write down
FY06 FY07 • System & process transformation
Normalised for Trading Post write-down
Targeting mid single digit organic revenue growth CAGR to FY10 10
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5

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Segment Highlights
PSTN Revenue
2%
-2% • TCW: Positive revenue growth in Brisbane, Adelaide & Perth (+4.8%)
-6% • TB: Positive churn, SIO growth in Q407
-10% FY06 • TC&C: Positive churn, SIO growth in FY07
-14% FY07 • TE&G: SIO churn at a record low of less than 1.4%
TE&G TB TC&C
12% Mobile Services Revenue
8% • TE&G: Mobile data revenue +51% with 100,000 Next G™ SIOs added
• TC&C: 1.6 million 3G SIOs
4% • TB: 3G SIOs - 32% of mobile base, driving mobile data ARPU +70%
0%
TE&G TB TC&C
Internet Revenue • TCW: Growth of +44%, driven by strong take up of ADSL and wireless
60% broadband
40%
20% • TC&C: Wireless broadband driving growth
0% TE&G TB TC&C • TE&G: Next IP™ network driving strong IP Access revenue growth
Growth across all key markets 11
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Operating Expenses: $14.1b 4.4% +$600m
+4.4%
0.8% 1.1% $14,092m Provisions ($ millions) Raised Balance
4.7% -2.1% FY06
Redundancy Provision 186 39
$13,492m
Restructuring Provision 241 193
R&R Provision 427 232
FY06 Mobiles Aqn / Div Transf. BAU FY07
• Blended SARCs +34% YoY – investing in subscriber growth
• Full year of acquisitions
• Trading Post write down
Cost growth focused on high revenue growth areas 12
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8.0%
Labour: $4.0b -$347m
$4,364m 1H -47.4% 2H -77.4%
$4,017m Headcount reduction
$534m (pre acquisitions and divestments)
-72% $149m Redundancy-$385m • $148m of redundancyprovision utilised, 12
On target
driving down
redundancy 8 6,000
– 8,000
4
Salary &
$3,407m $3,418m Associated 1H -0.6% 2H 1.3%
0.3% Costs 0
+$11m
2006 2007 2008 2009 2010
• Lower total workforce – guidance guidance
FY06 down 1,887 in FY07
FY06 FY07
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On track to achieve headcount reduction targets
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13
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Goods and Services: $5.2b 9.6% +$450m
1H +97.6% 2H +30.1%
$4,701m $5,151m • Increased volume with
Handset Subsidies
$504m 58% $798m +$294m launch of Next G™
• Higher SARCs
$1,238m 1H +50.4% 2H +22.7%
$917m 35% COGS
+$321m • Higher BigPond volumes
• Higher handset sales
$2,002m -10% $1,799m 1H -11.8% 2H -8.4%
Network Payments
-$203m • Lower REACH payments
• Lower mobile terminating rates set
FY06 FY07 by ACCC, partially offset by higher
offnet traffic
Investment in customer growth….3G market leader 14
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7

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Other Expenses: $4.9b 11.2% +$497m
$4,427m $4,924m 1H +19.1% 2H +18.2%
$329m 18% $389m Impairment & • Bad and doubtful debts
diminution
+$60m • Write-down, including Trading
Post
$949m
$792m
20%
General & admin
1H +14.5% 2H -37.2%
+$157m
• Operation of multiple mobile
networks
• Training
• P & A
$2,177m
$1,836m 19% Service contracts 1H +17.5% 2H +19.6%
& other agreements
+$341m • Transformation costs
• Higher call centre and billing
FY06 FY07 volumes
Transformation benefits to drive future savings 15
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Depreciation & Amortisation: $4.1b +0.1% $4m
Accelerated depreciation and FY07
amortisation (D & A)
$4,078m +0.1% $4,082m ($m)
Accelerated Strategic review
$422m D&A $297m service life changes
$744m -4.6% $710m - Network related 28
Amortisation
- Software 269
Total accelerated D & A 297
+5.6% $3,075m
$2,912m
Depreciation
• Excluding accelerated D&A: +3.5%
• Next G™ & Next IP™ driving asset base
higher along with acquisition activity
FY06 FY07 • No accelerated D&A in FY08
FY08 guidance around $4 billion
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Cash Capital Expenditure: $5.7b 32.8% +$1.4b
• IT infrastructure • IP enablement of
• Move from leases to Other (YoY +$464m) network
purchase of hardware Switching (+$504m) • Next G™ & Next IP™
launch
• Network infrastructure Specialised $867m $956m • Increased broadband
to support next network demand
generation network functions
(+$58m) $295m
$557m Transmission (+$131)
$995m
Capitalised
software (+$439m) $629m
Customer
access (-$171m)
$1,036m
• IT investment in $317m • Further investment to
transformation International expand Next G™
assets (-$21m)
• Sensis product Mobile footprint and capacity
telecommunications
development • Investment in Hutch JV
networks (-$7m)
Peak capex spend year behind us – benefits to flow in coming years… 17
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Cash Flow and Financial Parameters

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Free Cash Flow
-36.7% • FY07 peak spend year
-$33m
-$1,397m • FCF down $1.7 billion driven by
-$250m launch of Next G™ and Next
$4,579m IP™ networks
$2,899m
Total Operating Investing Net Total
Reported Acquisitions/ Reported
FY06 Divestments FY07
FY07 FY06
$m $m
Financial Current
Parameters Target FY07 Net Debt 14,586 13,022
Debt Servicing 1.7 – 2.1 1.5
Total Assets 37,875 36,224
Gearing
55% - 75% 53.7%
– net debt
Interest cover >7 times 9.1 times
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Financial ratios remain strong…need to retain flexibility
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International

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New World
HK$ FY07 FY06 % Δ NZ$ FY07 FY06 % Δ US$ FY07 % Δ
Income 41 97
Income 6,151 4,831 27.3 Income 657 693 (5.2)
EBITDA 1,765 1,390 27.0 EBITDA 82 124 (33.9) EBITDA 16 145
EBIT 770 686 12.2 EBIT (60) (20) (200) EBIT 16 151
annualised
• #1 mobile player in HK • Regulatory uncertainty • Resale & rental revenue
market in market share and continues +183%, home furnishing
revenue share • Cost reduction revenue +193%
•• Strong data growthMeeting integration plan • programme for 2008Solid E&G client base and • Opportunities for expansioninto related products
milestones strong Consumer InHome • Launched World.SouFun.com
business
Opportunities and challenges across international portfolio 19
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FY08 Guidance
Guidance on Reported Numbers
Revenue In the range of 2.0% to 3.0%
First half EBITDA
EBITDA In the range of 2.0% to 3.0% to decline slightly
due to:
1. Transformation spend
EBIT In the range of 3.0% to 5.0% profile
2. FY07 MTA adjustment
3. FY07 AAS sale
Depreciation & Around $4bn
Amortisation
Range $4.6bn to $4.9bn
Accrued capex
Dividend Subject to normal board
considerations
Assumes organic growth, no FTTN and no provisions
Prudent guidance given regulator-driven wholesale price changes 20
and government subsidisation of competition
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Long Term Management Objectives*

Revenue Growth 2.0% to 2.5% pa to FY10

New product revenue In excess of 30% sales revenue FY10 Cost growth 2.0% to 3.0%pa to FY10 EBITDA ($) 2.0% to 2.5%pa growth to FY10 EBITDA margin 46% to 48%pa by FY10

Workforce Down 12,000 by FY10

Capex 10% to 12% of revenue by FY10

Free cash flow $6b to $7b by FY10 * Based off FY05 results Long term management objectives remain unchanged 21

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www.telstra.com.au/abouttelstra/investor

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