TELSTRA GROUP LIMITED — Investor Presentation 2014

Dec 22, 2014

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23 December 2014

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

Telstra acquires Asian telecommunications and service provider Pacnet

In accordance with the Listing Rules, please find attached a correction to slide 6 of the Pacnet investor presentation, with respect to a currency conversion on the run rate synergy target. The original was quoted in USD, the correct synergy target is AUD $65 million.

Yours faithfully

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Damien Coleman Company Secretary

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

23/12/2014

ACQUISITION OF PACNET

ACCELERATING TELSTRA’S ASIAN GROWTH STRATEGY

23 DECEMBER, 2014

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ASIA IS AN INTEGRAL PART OF TELSTRA’S STATEGY

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TO CREATE A BRILLIANT CONNECTED FUTURE FOR EVERYONE
OUR PURPOSE
OUR STRATEGY
IMPROVE CUSTOMER DRIVE VALUE BUILD NEW GROWTH
ADVOCACY FROM THE CORE BUSINESSES
LONGER TERM
INVESTMENTS
GLOBAL SERVICES ASIA Health, Telstra Software Group v
(TSG), Telstra Ventures,
Digital Media
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23/12/2014

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OUR STRATEGY FOR ASIA HAS
THREE PILLARS
GLOBAL ENTERPRISE CONNECTIVITY LONGER
SERVICES / MOBILITY TERM
BECOME A LEADING LEVERAGE TELSTRA’S LEVERAGE OUR
PROVIDER OF ENTERPRISE CORE CAPABILITIES IN LONGER TERM
SERVICES TO MNCS AND NETWORK EXCELLENCE INVESTMENTS SUCH
LARGE ENTERPRISES TO DRIVE VALUE FROM AS SOFTWARE INTO
IN ASIA CONNECTIVITY ASIA AND INVEST IN
OPPORTUNITIES IN SIMILAR OPPORTUNITIES
THE REGION IN THE REGION
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CURRENT ASIAN ASSETS AND CAPABILITIES

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LEADING ACCESS TO GLOBAL MORE THAN
PROVIDER OF
INTERNATIONAL DELIVERY
CONNECTIVITY 230 1400
CENTRE
IN ASIA COUNTRIES & INTERNATIONAL STAFF
TERRITORIES
MORE THAN INTEREST IN MORE THAN
TBPS
CABLE 2.5 CAPACITY
2000 LICENCES 20 SYSTEMS
TO BE ADDED IN THE
POPS WORLDWIDE [19] WORLDWIDE NEXT 12 MONTHS
MORE SQFT OF COLO OFFSHORE
READY DATA DATA
THAN150000 CENTRE SPACE 18 CENTRES
A LEADING REGIONAL PLATFORM FOR GROWTH
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23/12/2014

PACNET’S CORE ASSETS

ASIA’S LARGEST PRIVATELY-OWNED SUBMARINE CABLE NETWORK, • WHICH LANDS AT 21 CABLE LANDING STATIONS ACROSS ASIA POINTS OF CITIES IN THE CITIES OUTSIDE OFTHE • PRESENCE ASIA – PACIFIC ASIA-PACIFIC REGION 109 ACROSS 61REGION AND 8 (US & EUROPE) • NA&S CAPABILITIES IN MANAGED NETWORK AND SECURITY SERVICES AND THE LARGEST INTEGRATED DATA CENTRE FOOTPRINT IN THE ASIA PACIFIC CITIES ACROSS • INTERCONNECTED THE ASIA-PACIFIC TIER III 29 DATA CENTRES IN 17 REGION INCLUDING 7 DATA CENTRES • STRONG IN-REGION PRESENCE ACROSS ASIA • ENTERPRISE STAFF IN CUSTOMERS 11 COUNTRIES 2400+ 800+ 5

PACNET TRANSACTION DETAILS

ACQUISITION OF - USD PACNET FY13 REVENUES OF USD $697M $472M INCLUDING GROSS DEBT OF AND EBITDA OF US$111M APPROXIMATELY US$400M

TARGETING RUN RATE SYNERGIES OF AUD $65M

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MEETS ALL OF TELSTRA’S INVESTMENT GUIDELINES
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EPS ROIC > WACC BY YEAR 2 BY YEAR 3

MORE ACCRETIVE THAN A SHARE BUYBACK (OF SAME SIZE)

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23/12/2014

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NEXT STEPS

• Customary closing conditions apply

• Completion anticipated in Q4FY15

• Expect to fully integrate all aspects of Pacnet (except China JV holding) to capture operating and capital synergies

• Run rate synergies are expected to be realised within the first two years after completion

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