#1Telstra September 2021 Debt Investor Presentation Guy Wylie - Finance Executive, Group Treasurer Nathan Burley - Investor Relations Brent Luetjens - Investor Relations Susie Maiuto - Treasury T#2Financial headlines FY21 Reported Total income: $23.1 billion, -11.6% EBITDA: $7.6 billion, -14.2% EBITDA lease adjusted²: $7.4 billion, -11.5% FY21 Guidance basis1 Underlying EBITDA³: $6.7 billion, -9.7% 1H21 $3.3 billion, 2H21 to $3.4 billion In-year nbn headwind³: ~$650 million (LTD ~$3.2 billion) Estimated COVID impact4: ~$380 million (FY20 ~$200 million) Underlying EBITDA decline ex in-year nbn headwind³: ~$70 million NPAT: $1.9 billion, +3.4% EPS: 15.6 cents, +2.0% Total dividend: 16 cps5 (consistent pcp) Capex³: $3.0 billion, -6.6% FCF³: $3.8 billion, +11.6% T 1.This guidance assumed no impairments in and to investments or non-current tangible and intangible assets, and excluded any proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum, and excluded the impacts of Pitt St exchange sale and leaseback. The guidance was based on management best estimates of nbn impacts including input from the nbn Corporate Plan currently published at time of issue of this guidance. Refer to Full year results and operations review - guidance vs reported results reconciliation (set out in our ASX announcement titled "Financial results for the full year ended 30 June 2021" lodged with the ASX on 12 August 2021). 2. 'Reported lease adjusted' includes all mobile handset leases as operating expenses, and all rent/other leases below EBITDA. 3. Refer to definition in the Glossary. 4.COVID impact in FY21 includes estimates across international roaming declines, delayed cost out, customer support and deferred NAS professional services. 5.Total dividend of 16 cents per share fully franked comprising total ordinary dividend of 10 cents per share and total special dividend of 6 cents per share. Page 2 Copyright TelstraⒸ Telstra September 2021 Debt Investor Presentation#3Operating highlights T Mobile strategy continuing to deliver growth Mobile service net adds ■ +101k retail postpaid handheld services including +67k branded +34k Belong ■ +95k retail prepaid handheld unique users ■ +240k wholesale MVNO including prepaid and postpaid services ■ +892k retail loT services Fixed service net adds ■ -69k retail fixed bundle and data services including +10k Belong ■ +246k nbn connections with 45% estimated market share as at end of FY21 (ex-satellite) Building value ■ Mobile: +$3 TMMC mass market branded growth on pcp and $170m EBITDA growth on pcp ■ Fixed - C&SB: Focus on higher speed tiers and add-ons ■ Fixed - Enterprise: Positioning for return to growth with Adaptive Networks ■ Telstra Health: FY21 revenue growth 6% and confident for high teens organic revenue growth in FY22 ■ Telstra Ventures: ~$300m increase investment value Improved customer experience Episode NPS improved +9 last 12 months and +6 last six months Strategic NPS improved +7 last 12 months and +2 last six months Continued cost reduction $490m or 8.1% underlying fixed cost reduction in FY21 ■ $1.8b or 10.2% decline in FY21 total operating expenses¹ $2.3b underlying fixed cost reduction since FY16. On track for $2.7b cost reduction with $430m target in FY22 1. 'Reported lease adjusted' includes all mobile handset leases as operating expenses, and all rent/other leases below EBITDA. Page 3 Copyright TelstraⒸ Telstra September 2021 Debt Investor Presentation#4EBITDA by half shows improving momentum Underlying EBITDA - halves. $m 4500 4000 3500 $3,875m 3000 Page 4 Copyright Telstra -$341m -$551m $3,534m -$210m $3,324m T Reduced rate of Underlying EBITDA decline on pcp: • 1H21 -$551m -$169m • 2H21 -$169m +$41m Sequential growth in 2H21 $41m, including: . • Mobile EBITDA growth Fixed-C&SB stabilising Enterprise positioned for FY22 growth $3,365m . 1H20 2H20 1H21 2H21 Telstra September 2021 Debt Investor Presentation#5Capital position T FY20 1H21 FY21 Gross debt $17.3b $17.4b Cash and cash equivalents $0.5b Net debt $16.8b $1.3b $16.1b Average gross borrowing costs¹ 4.6% 3.8% $16.4b $1.1b $15.3b 3.8% Net debt declined $1.5b in FY21 supported by our strong FCF Average gross borrowing costs expected to continue to decline in FY22 Average debt maturity (years)1 3.9 3.7 Cash and unused bank facilities $4.3b $4.8b 3.4 $3.6b Access to diverse and efficient sources of funding Financial parameters² Comfort Zones Debt servicing 1.5-2.0x 1.9x 2.0x Gearing 50% to 70% 52.7% 51.5% Interest cover >7x 11.7x 13.6x 2.0x 50.0% 13.2x Strong liquidity. $1.1b cash & $2.5b of unused committed bank facilities Balance sheet strength and flexibility. Parameters within comfort zones Ratios Capex³ to sales ROE3 ROIC3 Underlying ROIC³ 14.2% 13.3% 12.5% 15.2% 7.6% 5.4% 8.7% 4.5% 14.4% 12.8% 7.5% 5.0% FY21 Accrued capex of $3,020m or 14.4% capex to sales (guidance basis) Target FY23 underlying ROIC of ~8% 1. Excludes leases. 2. Debt servicing calculated as net debt over reported EBITDA. Gearing calculated as net debt over total net debt and equity. Interest cover calculated as reported EBITDA over net interest expense (excluding capitalised interest, revaluation impacts on our borrowings and derivatives and other non-cash accounting impacts). 3. Refer to definition in the Glossary. Page 5 Copyright Telstra Telstra September 2021 Debt Investor Presentation#6T22 achievements to date ~8.8 million services on 20 new simplified C&SB in market plans ■ ~3.5 million Telstra Plus members ■ Reduced Enterprise active products by more than half since FY18 Digital sales increased +9pp in FY21 to 39% in C&SB Digital service interactions >73% in C&SB ■ Reduced annual contact centre calls by two-thirds since FY18 Simplification & Digitisation Ways of working ▪ Leaner, more efficient organisation including ~17k working in Agile Productivity Network leadership ■ ~8.3k direct FTE reduction since FY18 ex-COVID hires FTE reduction by one-third or ~25k: ~7.6k direct, ~17.4k indirect ■ $2.3b cost reduction since FY16 - on track for $2.7b ■ $2b asset monetisation ■ 75% of population covered - Australia's largest 5G network ■ ~1.6m 5G devices connected to the Telstra network T T22 Scorecard metrics - as at FY21 Infrastructure Page 6 Copyright Telstra ◉ Completed first year as infrastructure business function in FY21 ■ Announced 49% sale of InfraCo Towers for $2.8b Proposed legal restructure: It was our intention to seek shareholder approval at AGM. We now aim to do so at a separate general meeting before the end of calendar year 2021 Completed Progress but below target metric On track for delivery Below target metric ~80% metrics completed or on track for delivery Telstra September 2021 Debt Investor Presentation#7Proposed debt structure1 New Debt Raising Telstra shareholders • Telstra HoldCo Telstra Existing Debt InfraCo - Fixed² InfraCo- Towers ServeCo Inter- national = Guarantor Group T • . • • · We remain committed to our Capital Management Framework Existing external debt will remain in Telstra Corp Ltd (to become InfraCo Fixed) with refinancing expected at Telstra HoldCo No change to group debt levels is anticipated as a result of the restructure We are currently considering a cross guarantee between Telstra HoldCo and InfraCo Fixed (where each entity would guarantee the other's relevant debt) This guarantee is envisaged to have features allowing it to be released upon a substantive sale of InfraCo Fixed Telstra looks forward to consulting with debt holders on the proposed structure 1. No final decisions made. No change to current structure until completion of the restructure / scheme implementation. Any restructure will involve certain regulatory and other requirements. There may be delays in implementing parts of the program, or they may not be implemented at all if approvals not obtained. 2. It is intended that InfraCo Fixed will be the current Telstra Corporation Limited entity. The assets of InfraCo Towers and ServeCo, and in due course, of International, will be transferred out of the current Telstra Corporation Limited entity into their new respective legal entities. Page 7 Copyright Telstra Telstra September 2021 Debt Investor Presentation#8FY22 guidance Total Income Underlying EBITDA² Capex³ Free cashflow after lease payments (FCFaL)4 FY21 FY22 guidance¹ $22.9b $21.6b to $23.6b $6.7b $7.0b to $7.3b $3.0b $2.8b to $3.0b $3.7b $3.5b to $3.9b T 1. This guidance excludes material one-offs, such as mergers and acquisitions, disposals, impairments, spectrum, restructuring costs and such other items as determined by the Board and management. 2. Underlying EBITDA excludes net one-off nbn DA receipts less nbn net C2C and guidance adjustments. FY20/21 underlying EBITDA also includes depreciation of mobile lease right-of-use assets. 3. Capex is measured on an accrued basis and excludes spectrum and guidance adjustments, externally funded capex, and capitalised leases. 4. Free cashflow after lease payments defined as 'operating cash flows' less 'investing cash flows' less 'payments for lease liabilities', and excludes spectrum and guidance adjustments. Page 8 Copyright Telstra Telstra September 2021 Debt Investor Presentation#9Our strategy: T25 Page 9 Copyright Telstra Our purpose and values We are changemakers An exceptional customer experience you can count on To build a connected future so everyone can thrive We are better together We care We make it simple Our strategic pillars Excelling at new ways of working Leading network & technology solutions that deliver your future Sustained growth and value for our shareholders The place you want to work Accelerating digital leadership Doing business responsibly Our businesses Consumer & Small Business Enterprise New Markets International Infrastructure Telstra September 2021 Debt Investor Presentation#10We will deliver growth through our T25 strategy Financial ambitions Financial strategy Build financial momentum across our portfolio to deliver growth Deliver net cost reductions - $500m net fixed cost out from FY23 to FY25 while investing for growth Focus on cash conversion and generation Active portfolio management to unlock value and manage our Balance Sheet Create shareholder value through our capital management framework Underlying EBITDA1 Underlying ROIC1 % Underlying EPS1 $7.5-8.0b by FY23 Mid-single digit . ~8% by FY23 • CAGR FY21 to FY25 Grow beyond to FY25 FY21 to FY25 1. Refer to definition in Glossary and see disclaimer slide in relation to these financial ambitions Page 10 Copyright Telstra Dividend Excess cashflow High-teens CAGR Maximise fully- franked dividend and seek to grow over time • Invest for growth and return excess cash to shareholders T Telstra September 2021 Debt Investor Presentation#11Capital management framework Objectives Maximise returns 5 for shareholders Principles Fiscal discipline Maintain financial strength Retain financial flexibility 1. Committed to balance sheet settings consistent with an A band credit rating 2. Maximise fully-franked dividend and seek to grow over time¹ 3. Ongoing business-as-usual capex of -$3b p.a. excluding spectrum² 4. Invest for growth and return excess cash to shareholders 1. The dividend is subject to no unexpected material events and is subject to Board discretion having regard to financial and market conditions, business needs and maintenance of financial strength and flexibility consistent with Telstra's capital management framework. 2. Capex is measured on an accrued basis and excludes spectrum and guidance adjustments, externally funded capex, and capitalised leases. Page 11 Copyright Telstra T Telstra September 2021 Debt Investor Presentation#12T25 scorecard Our commitments and metrics Customer experience Market leading CX with • eNPS >40 by FY25 SNPS uplift of +25 by FY25 Getting it right for customers • >90% 'Once and Done' by FY25 (C&SB) • 90% rating in support and engagement by FY25 (TE) • Reduce our complaints One-third by FY23, 50% by FY25 (C&SB) >95% of billing disputes will be resolved in 1 cycle by FY25 (TE) Grow Telstra Plus members (#) and engagement (%) 5.4m and 70% by FY23 6m and 80% by FY25 Grow digitally active users by 2m to 8.5m FY25 (C&SB) • Improve availability of infra. assets for customers, by FY25 250 new towers 6,000km of fibre deployed Network & Technology Network leadership; by FY25: Ел Growth and value Underlying EBITDA • ~95% pop. coverage for 5G • $7.5-8.0b by FY23 • >80% of traffic on 5G 3G closed in FY24 New ways of working Remain at 90th percentile employee engagement Mid-single digit CAGR FY21 (equivalent to high- to FY25 Win majority of key surveys for Underlying ROIC best fixed/mobile network including Coverage, and ~8% by FY23 Grow beyond to FY25 Overall customers speeds Underlying EPS: High-teens for mobile FY23-FY25 Double metro cell sites by FY25 to densify the network Expand regional coverage 100,000km² new coverage by FY25 CAGR FY21 to FY25 Maximise fully-franked dividend and seek to grow over time • Maintain cost discipline $500m net fixed cost out from FY23 to FY25 while investing for growth Maintain leading operating cost metrics for full- service telco Maximise value from infra. Amplitel EBITDAAL CAGR - low-to-mid single digit InfraCo Fixed EBITDAAL CAGR low-single digit performance norm) Improve agile maturity of teams, with 70% scoring above 4 by FY25 Halve our time to market for products and services from FY22 to FY25 50% increase in representation of Data & Analytics workforce by FY25 Direct software engineering workforce delivering -2x the percentage of strategic development work by FY25 Digital leadership All key service transactions with customers are capable of being conducted digitally by FY25 100% of key business processes enhanced/ improved using Al by FY25 Reach top 20% in Digital Capability Index by FY25 100% API-first architecture for customer management, product development, and external monetisation Move -90% of applications to the public cloud by FY25 Responsible business T Enable renewable energy generation equivalent to 100% of our consumption by 2025 Reduce absolute emissions from FY19 by at least 50% by 2030 Increase digitally active customers by 2m, including building digital skills for 500k Australians, by FY25 Help keep 1m customers in vulnerable circumstances connected each year from FY22-25 4-7pt uplift in RepTrak reputation score by FY25 Page 12 Copyright Telstra Note: Commitments are baselined to FY21, except where stated otherwise and see disclaimer slide in relation to financial ambitions Telstra September 2021 Debt Investor Presentation#13Glossary T Capex Term Free cash flow after Definition (unless separately defined in the slide footnotes) Capex is measured on an accrued basis and excludes spectrum and guidance adjustments, externally funded capex, and capitalised leases operating lease payments 'operating cash flows' less ‘investing cash flows' less ‘payments for operating lease liabilities', and excludes spectrum and guidance adjustments (FCF) Free cash flow after lease payments (FCFal) Guidance adjustments In-year nbn headwind or nbn headwind 'operating cash flows' less ‘investing cash flows' less 'payments for lease liabilities', and excludes spectrum and guidance adjustments Guidance adjustments include impairments in and to investments or non-current tangible and intangible assets, proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum. Refer to Full year results and operations review – guidance vs reported results reconciliation which details the adjustments made for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY21 (set out in our ASX announcement titled “Financial results for the full year ended 30 June 2021" lodged with the ASX on 12 Aug 2021) The net negative recurring EBITDA impact of the nbn on our business for the reporting period. See 'nbn impact on EBITDA' slide for details of the in-year nbn headwind Net one-off nbn DA less net Adjustments for net one-off nbn receipts which is defined as net nbn one off Definitive Agreement receipts (consisting of PSAA, Infrastructure C2C Ownership and Retraining) less nbn net cost to connect Reported lease adjusted ROE ROIC Total Income Underlying earnings Underlying EBITDA Underlying ROIC 'Reported lease adjusted' includes all mobile handset leases as operating expenses, and all rent/other leases below EBITDA. FY21 adjusted to include $194m (FY20 $494m) of reported depreciation of mobile handsets right-of-use assets in EBITDA. No adjustment expected in FY22. Calculated as profit after tax attributable to equity holders of Telstra as a percentage of equity Calculated as Net operating profit after tax (NOPAT) as a percentage of total capital Total income excluding finance income NPAT from continuing operations excluding net one-off nbn receipts, one-off restructuring costs and guidance adjustments. Guidance adjustments include impairments in and to investments or non-current tangible and intangible assets, proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum. See 'Underlying earnings' slide for details of underlying earnings EBITDA excluding net one-off nbn DA receipts less nbn net C2C, one-off restructuring costs and guidance adjustments but includes depreciation of mobile lease right-of-use assets Calculated as NOPAT excluding net one-off nbn receipts, one-off restructuring costs and guidance adjustments less tax as a percentage of total capital. Guidance adjustments include impairments in and to investments or non-current tangible and intangible assets, proceeds on the sale of businesses, mergers and acquisitions and purchase of spectrum Page 13 Copyright TelstraⒸ Telstra September 2021 Debt Investor Presentation#14Disclaimer T These presentations include certain forward-looking statements. The forward-looking statements are based on certain assumptions and information known by Telstra as at the date of these presentations. The forward-looking statements are not guarantees or predictions 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 Telstra's actual results, performance and achievements to differ materially from those expressed in, or implied by, the forward-looking statements. These factors 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; the ongoing impacts of the COVID-19 pandemic; and the continuing growth in the data, internet, mobile and other telecommunications markets where Telstra will operate. A number of these risks, uncertainties and other factors are described in the "Chairman & CEO Message", "Our material risks" and "Outlook" sections of our Operating and Financial Review (OFR). The OFR is set out in Telstra's financial results for the year ended 30 June 2021 and in Telstra's 2021 Annual Report which were lodged with the ASX on 12 August 2021 and 27 August 2021 respectively, and are available on Telstra's Investor Centre website www.telstra.com.au/aboutus/investor. In addition, there are particular risks and uncertainties in connection with the implementation of the Telstra 2025 strategy (T25), including the response of customers to changes in products and the way we interact with them as we move to a digital operating model; the risks of disruption from changes to the ways we work; that detailed business plans have not been developed for the entirety of the strategy and the full scope and cost of T25 may vary as plans are developed; Telstra's ability to execute and manage the elements of T25 in a sequenced, controlled and effective manner and realise the planned operational synergies, cost savings and revenue benefits. There are also risks and uncertainties in connection with the proposed legal restructure announced on 22 March 2021. Telstra does not provide financial guidance beyond the current financial year. Telstra's financial ambitions to FY25 (in particular for its Underlying EBITDA and Underlying ROIC by FY23) and FY25 outcomes are not guidance and there are greater risks and uncertainties in connection with these ambitions. The indicators provided in this presentation of FY25 outcomes and FY25 financial ambitions, are provided to illustrate some of the outcomes which management is currently focused on delivering across the short to medium term. Each item and action is subject to a range of assumptions and contingencies, including the actions of third parties. Investors should not place undue reliance on the forward-looking statements. To the maximum extent permitted by law, Telstra gives no representation, warranty or other assurance in connection with, and disclaims all responsibility for, the accuracy and completeness of the forward-looking statements, whether as a result of new information, future events or otherwise. These presentations are not intended to (nor do they) constitute an offer or invitation by or on behalf of Telstra, its subsidiaries, or any other person to subscribe for, purchase or otherwise deal in any equity, debt instrument or other securities, nor are they intended to be used for the purpose of or in connection with offers or invitations to subscribe for, purchase or otherwise deal in any equity, debt instruments or other securities. All forward-looking figures and proforma statements in these presentations are unaudited and based on A-IFRS unless otherwise indicated. Certain figures may be subject to rounding differences. All market share information in these presentations is based on management estimates having regard to internally available information unless otherwise indicated. All amounts are in Australian Dollars unless otherwise stated. nbn™, nbn co and other nbn™ logos and brands are trademarks of nbn co limited and used under licence. Page 14 Copyright Telstra Telstra September 2021 Debt Investor Presentation