TELSTRA GROUP LIMITED — Investor Presentation 2011

Jun 22, 2011

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23 June 2011

The Manager

Company 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 9632 3215

ELECTRONIC LODGEMENT

Dear Sir or Madam

NBN Briefing – CEO Analyst presentation

In accordance with the Listing Rules, I enclose a presentation for release to the market.

Regards

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Carmel Mulhern

Company Secretary

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

NBN DEFINITIVE AGREEMENT ANNOUNCEMENT

David Thodey, CEO 23 June 2011

DISCLAIMER

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This presentation includes certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties, assumptions and other factors that could cause the actual results or performance to be materially 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. All amounts are in Australian Dollars unless otherwise stated.

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NBN UPDATE – DEFINITIVE AGREEMENTS

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$11 billion post-tax NPV

Strong shareholder protections for changes of policy

ACCC acceptance of Structural Separation Undertaking is significant outstanding condition precedent

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NBN UPDATE – INDICATIVE TIMELINE

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DEFINITIVE AGM
AGREEMENTS
SIGNED RESOLUTION
OTHER CONDITIONS PRECEDENT
SHAREHOLDER
INDEPENDENT EXPERT REVIEW
CONSIDERATION
PREPARE
ACCC CONSULTATION/REVIEW
SSU
23 JUN 18 OCT
2011 2011
11 AUG
FY RESULTS
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Note: timeline is indicative only and subject to change

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NBN UPDATE – DECISION FRAMEWORK

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GOVERNMENT
NBN POLICY
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CO-OPERATE
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DO NOT
CO-OPERATE
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NBN UPDATE – KEY FINANCIAL TERMS

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Approx $1.0b [Approx $11b]
Approx $0.3b
Approx $0.7b
Approx $5.0b
Approx $4.0b
Disconnection Infra- TUSMA New housing Other Post tax
structure estates NPV of
agreements
Government
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Note1: the sale of lead-ins/conduit is covered in the Infrastructure Services Agreement, but we have included it here in the Disconnection component since it relates to assets or services that Telstra will not control once NBN is built. This approach is consistent with prior disclosure of the value of the proposed arrangements.

Note 2: These values will not be in the form of an upfront payment, but are Telstra’s best estimate of the post-tax net present value of payments to be received over many years. They is also subject to a range of dependencies and assumptions over the life of the agreements.

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NBN UPDATE – KEY AGREEMENTS

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Agreements with NBN Co	Scope
Implementation and Interpretation Deed	Conditions Precedent and interim arrangements
Subscriber Agreement	Disconnection of copper and HFC broadband networks
Infrastructure Services Agreement	Long-term infrastructure access arrangements
Access Deed	NBN commitments in supply of Basic Access Services
Agreements with Commonwealth	Scope
TUSMA Agreement	Changes to the Universal Service Obligation
Retraining Funding Deed	Details of Government commitment to retraining
Information Campaign and Migration Deed	Other Commonwealth commitments
Commonwealth Guarantee	Protection for Telstra re NBN Co’s payment and performance obligations

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NBN UPDATE – SHAREHOLDER PROTECTIONS

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INCLUDING:

• Change of Government policy

• NBN rollout goes slowly

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NBN UPDATE – CONDITIONS PRECEDENT

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• Telstra and NBN Co’s shareholder approval

• ACCC acceptance of a Structural Separation Undertaking and approval of Migration Plan

• TUSMA Agreement and Information Campaign and Migration Deed being entered into

• Legislation or other arrangements to implement the Government’s new housing estates fibre provision policy

• Legislation to facilitate NBN Co’s rollout

• ATO tax rulings for Telstra and NBN Co

• No adverse impact to Telstra in event of change in the NBN rollout target

• Agreement of an initial plan for the handover of certain infrastructure under the ISA

• NBN Co confirming it has arrangements in place to ensure that cessation of supply of certain Telstra products occurs in a non-discriminatory way

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CASHFLOW IN NBN WORLD

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Organic revenue

Operating Costs

Capex

NBN Payments

•Long-term growth from mobiles, media, NAS

•Some NBN related revenue loss

• •Increased NBN access costs

• •Some

incremental costs to support agreements

• •Lower network maintenance costs

• •14%

sustainable long-term in NBN world

•Significant cash inflows from disconnection and infrastructure deals

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SUSTAINABLE FREE CASHFLOW
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Q&A

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