TELSTRA GROUP LIMITED — Investor Presentation 2011

May 3, 2011

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4 May 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

Macquarie Australian Equity Conference – presentation

Attached is a copy of a presentation to be delivered by David Thodey, Chief Executive Officer, at Macquarie’s Australian Equity Conference today. In accordance with the Listing Rules, this is 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

4/05/2011

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TELSTRA UPDATE

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David Thodey, CEO 4 May 2011 Macquarie Australian Equity Conference

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STRATEGY - FOUR MAJOR INITIATIVES

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1. IMPROVING CUSTOMER SERVICE

2. RETAIN AND GROW CUSTOMERS

3. SIMPLIFYING THE BUSINESS

4. NEW GROWTH BUSINESSES

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AN IMPROVED CUSTOMER EXPERIENCE FOR SMEs

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DIGITAL BUSINESS

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RETAINING AND GROWING OUR CUSTOMERS - STRONG GROWTH

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	RETAINING AND GROWING OUR CUSTOMERS - STRONG GROWTH	RETAINING AND GROWING OUR CUSTOMERS - STRONG GROWTH	RETAINING AND GROWING OUR CUSTOMERS - STRONG GROWTH
		Product 3Q10 3Q11 FY10 FY11
		Net adds (‘000) March YTD March YTD 11 141 146 61
		Bundles 5 5 T-Box®and T-Hub® (sales) - 67 - 281 Postpaid mobile handheld 7 197 44 494 Mobile broadband 178 206 457 711
		TotalmobileSIOs 75 364 271 1282
		, Retail fixed broadband -3 47 -33 186*
	4 *Note: Q4 fixed broadband customer numbers will include removal of 65,000 non-revenue generating services from the base

*Note: Q4 fixed broadband customer numbers will include removal of 65,000 non-revenue generating services from the base

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SIMPLIFYING OUR CONSUMER SALES CHANNEL
VISIT RETAIL Premium branded store experience
Strong partner network
CALL
CONTACT Primary focus on service and
building customer lifetime value
CENTRES
Contact centre excellence
Investment in capability and usage
ONLINE
Innovative experiences to buy
online, collect in-store
CLICK
Channel optimisation will drive productivity
improvements for future investment
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SIMPLIFYING THE ONLINE EXPERIENCE
Telstra Digital
Telstra.com enhancements
Email bill enhancements
Freedom [®] Connect p lans
Online ordering for
Telstra Business
Online
transactions
35%
c.10%
Current FY13
Target
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NEW NETWORK GROWTH INITIATIVES

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Launching 4G mobile broadband Restructure of the Reach JV
network by the end of 2011
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NEW MEDIA GROWTH INITIATIVES

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• Live coverage of AFL games from 2012 to mobiles and tablets
AFL
on the Telstra Next G [®] network or to the Telstra T-Box
FOXTEL on • 30 FOXTEL channels via Telstra T-Box
• 2000+ films available through BigPond Movies
T-Box
• Digital marketing strategy
•
Sensis Unique digital marketing capability measured by ROI reporting
• Superior value proposition for Sensis’ customers
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FY11 GUIDANCE CONFIRMED

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	FY11 GUIDANCE CONFIRMED	FY11 GUIDANCE CONFIRMED	FY11 GUIDANCE CONFIRMED
		Measure Target* Sales Revenue Flattish
		EBITDA High single digit percentage decline
		Capex 14% of sales Free cashflow $4.5 - $5.0 billion
		Dividend 28c fully franked
		9 Guidance assumes wholesale product price stability, no fiscal 2011 impairments to investments and excludes any proceeds* from the sale of businesses or any impact from the cost of network restoration due to natural disasters**

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