#1T 16 November 2021 The Manager Market Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Office of the Company Secretary Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA General Enquiries 03 8647 4838 Facsimile 03 9650 0989 [email protected] Investor Relations Tel: 1800 880 679 [email protected] ELECTRONIC LODGEMENT Dear Sir or Madam T25 Telstra Investor Day - In accordance with the Listing Rules, I attach the presentation to be delivered by the CEO and members of senior management, at Telstra's Investor Day today, for release to the market. The briefing will be held virtually and webcast live from 9:10am (AEDT), which is available at https://www.telstra.com.au/aboutus/investors/financial-information/investor-presentations A transcript of the event will be lodged with the ASX when available. Authorised for lodgement by: Auchart Sue Laver Company Secretary Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556#21 2 Page 2 Copyright TelstraⒸ T25 Telstra Investor Day 16 November 2021 Introduction Andrew Penn CEO T T Investor Day 1#33 4 Agenda 9:00am Introduction Andrew Penn Nikos Katinakis Kim Krogh Andersen Oliver Camplin-Warner 9:15am Network & technology solutions 9:55am International incl. Digicel 10:15am Q&A All 10:45am Break 10:55am New Markets: Health 11:15am New Markets: Energy 11:30am Closing comments and Q&A All Page 3 Copyright TelstraⒸ FY22 priorities - finish the job on T22 Professor Mary Foley AM Ben Burge Complete digitisation Complete migration of C&SB customers to the new tech stack * Group restructure Complete our Group restructure and deliver value from infrastructure 5G 5G leadership Extend our 5G leadership improving 5G coverage and performance Enterprise Return Enterprise to growth and restore financial momentum Grow services Launch our new energy business and expand Telstra Plus Cost reduction Deliver on our $2.7b annualised net cost productivity Page 4 Copyright Telstra Investor Day T Investor Day. 2#45 6 Our strategy: T25 Page 5 Copyright TelstraⒸ Our purpose and values We are changemakers To build a connected future so everyone can thrive We are better together We care We make it simple An exceptional customer experience you can count on Leading network & technology solutions that deliver your future Sustained growth and value for our shareholders Our strategic pillars Excelling at new ways of working The place you want to work Accelerating digital leadership Doing business responsibly Our businesses Consumer & Small Business Enterprise New Markets International Infrastructure Our businesses will deliver profitable growth and value by... Page 6 Copyright TelstraⒸ Consumer & Small Business Enterprise lovestor Day Creating brilliant experiences that enable our customers to work, learn and play T Connecting our customers with Australia's most trusted and secure technology and services New Markets Building and scaling our new businesses International Leveraging the growing strategic significance of our international network Infrastructure Improving access, utilisation and scale of our infrastructure Investor Day 3#57 8 The place you want to work Accelerating digital leadership Lead with a digital first and data- driven mindset Embed digital ways of working and build digital skills Deliver outstanding developer experiences and digital partnerships Deploy decoupled, modular digital architecture All key service transactions with customers capable of being conducted digitally by FY25 100% key business processes enhanced / improved using Al by FY25 100% API-first architecture ~90% of applications moved to the public cloud T Page 7 Copyright TelstraⒸ T25 scorecard Investor Day 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 Page 8 Copyright TelstraⒸ Network & Technology Network leadership; by FY25: ⚫-95% pop. coverage for 5G >80% of traffic on 5G 3G closed in FY24 Growth and value Underlying EBITDA ⚫$7.5-8.0b by FY23 Mid-single digit CAGR FY21 to FY25 Win majority of key surveys for Underlying ROIC best fixed/ mobile network including • Coverage, and Overall customers speeds for mobile FY23-FY25 Double metro cell sites by FY25 to densify the network Expand regional coverage 100,000km2 new coverage by FY25 ⚫ -8% by FY23 Grow beyond to FY25 Underlying EPS: High-teens 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 New ways of working Remain at 90th percentile. employee engagement (equivalent to high- 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 蹴 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 Note: Commitments are baselined to FY21, except where stated otherwise and see disclaimer slide in relation to financial ambitions Responsible business 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 Investor Day#69 100 Page 9 Copyright TelstraⒸ Network & technology solutions Nikos Katinakis Group Executive, Networks & IT Kim Krogh Andersen Group Executive, Product & Technology Ten key trends shape our future technology strategy T Virtualisation of the RAN Emergence of satellites and Move to Cloud, networks from the sky Cloud to Edge Dedicated networks for industry verticals Energy efficiency 마닫ㅁ Investor Day T . Effective resource utilisation & cost efficiency ⚫ Technology acceleration for new use cases & capabilities Improved performance Mobile backhaul & resilience Economic regional connectivity Multi-cloud edge continuum Workload orchestration Smaller blast zones 5G Standalone, private/ dedicated networks Orchestration & end to end slicing Committed enterprise SLAS Optimise cost efficiency Deliver on our environmental commitments Native digital customer expectations and experiences Hybrid work @ home shifting demand and app requirements Ecosystem integration and capability exposure Cybersecurity, digital identity and data sovereignty Automation, data, artificial intelligence & machine learning Transform & amplify our data Coverage quality & experience Ecosystem partnerships Trusted Al/ML cybersecurity 3Cs of data AI/ML smarts for our customers & business processes Access agnostic applications (customer, hyperscaler, 3rd party) . . Optimise capacity to meet shifting demand profile APIs & modularity for internal and external reuse Federated, localised data & ID management for digital economy. Workflow/process automation Al everywhere Page 10 Copyright TelstraⒸ Investor Day 5#711 12 Leading network & technology solutions that deliver your future Page 11 Copyright TelstraⒸ T The best 5G network for Australia Largest coverage and best performance across metro, regional, and rural areas Technology enabling customer and industry solutions Dynamic management and automation of capacity, speed, latency, security, and resilience across all network types Enhanced resilience for customers Through smaller impact zones, orchestrated failover for apps and connectivity ~95% 5G population coverage by FY25 >80% traffic on 5G by FY25 Double metro cell sites Expand regional coverage by 100,000 km² Automated & Al enabled Secure & Private Tailored Service & Experience Access agnostic Distributed Architecture Orchestrated Network & IT Cloud to Edge 200k customers. 1m customers 200k customers 200k customers 200k 200k customers customers Leading with the best mobile network in Australia with material differentiation for our customers Best 5G Network for Australia Investor Day T Largest network 95% 5G population coverage Expand regional coverage We will add 100k km² in regional coverage and a further 1m km² in NB and M1 IoT coverage added Best capacity, performance and customer experience Doubling metro sites & deploying new 5G bands. Better in-building coverage Fastest real world speeds across combined 4G/5G Consistent coverage and speed Page 12 Copyright Telstra Note: Unless otherwise specified, all targets are by end of FY25 Accelerate the move to 5G For new opportunities with 80% of traffic on 5G 3G closure in FY24 to enhance capacity Enhancing fixed experiences -2.3m modems supporting 4G backup. We will introduce 5G backup and fixed wireless access Investor Day! 6#813 14 Technology Enablers for continued differentiation Correctness, Completeness & Consistency for >25m SIOS | >3.7 petabytes of data A Page 13 Copyright TelstraⒸ Automated & Al enabled Secure & Private Tailored Service & Experience Distributed Architecture Orchestrated Network & IT Cloud to Edge Access agnostic Orchestrated end-to-end resilience Enhance resilience & maintain performance Smaller impact zones keeping business connected Orchestrated & automated failover Trusted end-to-end resilience & security Making the complex simple by orchestrating business critical solutions for enterprise and government . Network triggers & reconfiguration Multi-access Maintain data sovereignty & multi provider • Edge compute enabled network resilience Cloud to edge flexibility Multi-cloud economics People powered tech solutions Page 14 Copyright TelstraⒸ Healing Self Self Optim Self Configuring T Investor Day • Distributed network resilience • Al enabled predict & prevent Closed loop automation Local survivability Investor Day 7#916 15 "Better on Telstra❞ Leveraging our leading networks & capabilities to provide tailored services to our customers With Innovation Hubs in Toowoomba, Gold Coast & Melbourne, we developed a partner ecosystem to support Enterprises with leading technology solutions that address their specific industry requirements 1 2 3 4 Smart farming Wide area regional coverage High reliability Low latency Closed loop monitoring & control Production & processing Dedicated Enterprise network Guaranteed service quality for Industry 4.0 High resilience Operating efficiency from automation & Al Supply chain & logistics National coverage Distributed network- "Following the Sun" Reduced complexity Enhanced smart workforce solutions Retail Infrastructure-less branch. Reduced complexity Data sovereignty Operating efficiency with Al Page 15 Copyright TelstraⒸ Cloud to Edge optimal workload placement along a continuum leveraging dedicated networks, QoS, slicing & multi-cloud network aware composite orchestration Customer edge Product & Technology Page 16 Copyright TelstraⒸ 4 Network edge 3 Operator edge This model accelerates innovation & informs our future service roadmap Our purpose and values We are changemakers Our ambition Centralised cloud To build a connected future so everyone can thrive We are better together We care We make it simple To deliver sustainable growth and value creation by building a balanced product portfolio that delivers exceptional customer experiences and enhances our product economics Our building blocks Mobility growth through superior 5G connectivity and advanced use cases. C&SB Fixed growth through our connected home vision and SMB managed services. Enterprise Fixed growth through adaptive connectivity, industry solutions and services H Innovation enabled by strategic partnerships and ecosystems Investor Day T lovestor Day 80#1017 18 Mobility Growth through leveraging 5G superior connectivity for experience-based propositions Superior Connectivity... enables premium customer experience... with experience based propositions MAINTENANCE NEEDED Stator 04 T • • From 75% to 95% 5G population Page 17 coverage as well as converged connectivity Network Optimised Products • Al supported and digitally enabled customer interactions AR/VR in Entertainment and Enterprise Key FY25 outcomes Network leadership; by FY25: ~95% population coverage for 5G Deliver mobile services revenue growth Copyright Telstra • 5G connected devices, wearables, companion devices & accessories Advanced use cases enabled by Edge and slicing Grow hardware margin and outright device sales C&SB Fixed - Delivering on our vision for a connected Home Empower our customers leveraging digital experiences and data Multi Use Home •Superior connectivity •Proactive assurance Digital and Physical Security • Edge & home network security ⚫ Device security, data and identity protection Energy (Electricity & Gas) Page 18 My Telstra Fixed Mobile Energy Smart meter ° Key FY25 outcomes Copyright TelstraⒸ Grow average services per household Note: See disclaimer slide in relation to financial ambitions. Entertainment Aggregated & personalised content with ad-tech foxtel Kayo BINGE • AR/VR Disept Tara TV My Telstra •Optimise your Energy plan • Security alert, potential virus! Connectivity issue- Technician on its way... Health monitoring: Pilates on your TTV to loosen up? Investor Day T Next Gen Gaming Multigenerational needs ⚫Targeted applications through use of APIs and Telstra Ecosystem Smart modem Connectivity (5G, Satellite, Fixed Broadband) Top 5 Energy Retailer Mid-teens nbn reseller margin by FY23 Investor Day 9#11Enterprise Fixed - Industry Solutions for Enterprises Telstra to become the digital transformation partner of choice in key industry verticals 19 Telstra offering to target industry specific needs Government (incl Emergency Services) Mining & Energy Supply Chain & Logistics, Retail & Agribusiness ... more in plan Professional services with Cloud PS, Cyber Telstra Purple Scaled Digital Managed Services Applications, Products & Solutions, Strategic Partners Superior Connectivity PS, Digital Transformation PS Security, Cloud & Edge, IoT, Networks IoT, Video & Digital Twin, Unified Comms 5G, Adaptive Networks, Private Slicing Cross-industry, pooled resources Industry Specialists Telstra Managed Platform Al Analytics as a Service Industry specific modules and 3rd party solutions across Private, Public, Hybrid Cloud Replicable product modules Customer Programmability Network, IT and Data as a Service Key FY25 outcomes Mid-teens NAS EBITDA margin Move -90% of applications to the public cloud by FY25 Return to growth in data and connectivity by FY24 Page 19 Copyright TelstraⒸ Note: See disclaimer slide in relation to financial ambitions Investor Day Innovation enabled by strategic partnerships and ecosystems Targeting the internal and external developer community, APIs enable monetisation of Telstra as an ecosystem T 20 20 Faster time to market through streamlined product development • Improve ROI of deployed resources • Self service model empowering increased scale • Programmable interfaces into Telstra architecture Enabling automation Internal Product Excellence IT and data capabilities Operations and assurance Enabled by API-first decoupled architecture Telstra as a Platform Monetised ecosystem for developers through marketplaces B2B Integration Deep B2B partnerships with enterprises and hyperscalers Telstra Network, IT and Data Assets Key FY25 outcomes 100% API-first architecture for customer management, product development, and progressive external monetisation Growth attributed to MAAG* partnership ecosystem Halve our time to market for products and services from FY22 to FY25 Page 20 Copyright TelstraⒸ *Microsoft, Amazon, Apple, Google Investor Day 10#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 Page 21 Copyright TelstraⒸ Network & Technology Network leadership; by FY25: .~95% pop. coverage for 5G • >80% of traffic on 5G 3G closed in FY24 Win majority of key surveys for best fixed/mobile network including • Coverage, and • Overall customers speeds for mobile FY23-FY25 Double metro cell sites by FY25 to densify the network Expand regional coverage 100,000km2 new coverage by FY25 Growth and value Underlying EBITDA $7.5-8.0b by FY23 New ways of working Remain at 90th percentile employee engagement ⚫Mid-single digit CAGR FY21 (equivalent to high- to FY25 Underlying ROIC ⚫-8% by FY23 • Grow beyond to FY25 Underlying EPS: High-teens 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 EBITDAALCAGR- 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 Note: Commitments are baselined to FY21, except where stated otherwise and see disclaimer slide in relation to financial ambitions. Responsible business 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 Investor Day 21 22 22 Page 22 Copyright TelstraⒸ International incl. Digicel Oliver Camplin-Warner CEO, Telstra International T Investor Day 11#13International 23 Page 23 Copyright TelstraⒸ Our purpose and values We are changemakers Our ambition To build a connected future so everyone can thrive We are better together We care We make it simple To deliver profitable growth and value by leveraging the growing strategic significance of our international network Drive sustained growth in Build new capabilities to expand Expand into new markets Wholesale infrastructure our presence in Enterprise Our building blocks Enhance the operating model to enable future growth Digitise key customer interactions and business processes lovestor Day The global market is fast evolving and customer needs are changing T 24 24 Exponential rise in global demand for data Surge in intensity of demand for international connectivity as the world embraces remote working and more digital ways of life COVID-19 accelerating and shifting priorities Acceleration of digital transformation priorities including cloud migration, new digital tools and protection against cybersecurity incidents Global policy and regulatory shifts Dynamic geopolitical environment driving reconfiguration of global data transport, with Australia increasingly becoming a strategically important geography We have played a role in enabling the global economy and connecting people through the extensive global reach of our networks Page 24 Copyright TelstraⒸ Investor Day 12#1425 26 FEFFE& FYYITS= STTY C C Telstra International is a leading connectivity provider 26 Access to over submarine cable systems creating one of the largest subsea cable networks in APAC ~1,500 people and with operations in 31 countries Access to over 2,000 PoPs and connectivity in more than 200 countries and territories globally Operates three world- class Telstra teleports and access to partner teleports to reach over 60 satellites globally Ranked 3rd in 2021 Gartner Critical Capabilities for Network! Services, Global for Intra- Asia/Pacific use case fully owned 3 fully owned cable systems in APAC Page 25 Copyright TelstraⒸ Investor Day We are building on the foundations of T22 Our achievements over the last three years Stabilised the business and drove profitable growth Focused on simplification and customer experience uplift Set the foundations for future growth T Grew underlying EBITDA margin by >3% points since FY18 whilst also reducing capital spend by more than a third Focused selling on more profitable products and away from lower profit legacy products A$165m of net cost out expected FY19-22 Completed divestments of Taiwan Cable Landing Station and Singapore Data Centre Uplifted SNPS to +58 in FY21 and close to market-leading Launched Telstra Connect, which is actively used by -35% eligible customers, driving -25% digital customer service interactions Implemented digital transformation initiatives reducing book to bill cycle times by 37% and 72% in the 1st and 2nd years post implementation Acquired 25% equity stake in Southern Cross Cable Network Page 26 Copyright TelstraⒸ Launched a multi-year program in FY21 to invest towards building Adaptive Networks proposition Continuing to build Telstra Purple footprint across Asia, EMEA to drive our services business Focused on key strategic partnerships in Asia and EMEA Investor Day 13#1527 28 Drive sustained growth in Wholesale infrastructure We are a Wholesale leader in Asia Pacific connectivity ... capacity: Japan-US 10% ↑ ... and will continue focus on investments to grow the business Uplift our leading intra-Asian network T • • • India Mainland China Hong Kong Korea Philippines Singapore Indonesia Сарасіку. Intra-Asia 30% T Page 27 Perth Oceania Capacity 13% ↑ Sydney Capacity HK-US 20% Capacity ANZ-US 22% 1 Partner to access network capacity on new, high-growth routes Share(Lit Capacity) for 2019-2020 Invest in Australia and APAC terrestrial fibre and satellite 'Always On' connectivity for our busiest routes Market-leading position in emerging cable hubs like Philippines and Taiwan Largest foreign telco in several Asian markets, including South Korea and the Philippines Accelerate network services leveraging our footprint and engineering capability Invest in new strategic cables and routes Copyright TelstraⒸ Build new capabilities to grow in Enterprise Build market leading capabilities in Adaptive Networks Third party connectivity and branch security Proactive network performance monitoring SD-WAN co-management at scale Accelerate growth in Security on top of existing foundation Scaled security advisory services leveraging Telstra Purple capabilities Automated, technology-agnostic managed security services pulled through from professional services Expand coverage and increase customer uptake of Modern Workplace Telstra Calling for Microsoft Teams Contact Centre solution powered by Genesys Cloud Page 28 Copyright TelstraⒸ Investor Day T Investor Day 14#1629 30 Expand into new markets Expanding our capabilities in new and emerging markets to drive future profitable growth T Deepen capabilities in new and emerging hubs Strengthen APAC leadership Expand reach of global infrastructure Meet increasing demand for network diversity and alternative transport hubs for connectivity in/out of Asia. Broaden infrastructure footprint and deepen network leadership in Asia Pacific Broaden network reach and capabilities in new countries for Telstra Page 29 Copyright TelstraⒸ Digicel Pacific at a glance " " Leading provider of communications services in Papua New Guinea, Fiji, Nauru, Samoa, Tonga and Vanuatu Strong position in the South Pacific region, holding a number one position in five of these markets Strong earnings growth, generating revenue of US$431m and EBITDA of US$233m in the year to March 31, 2021 Over US$1.2b capital invested in the network since launch in 2006 2.5 million mobile subscribers across the six markets Provides business ICT solutions to SMEs, enterprises, government and MNCs " TV and Broadband services in all markets Page 30 ~1,700 employees across the six markets Copyright TelstraⒸ Mobile Ü Largely prepaid mobile telecommunications offering Digicel Pacific TV & Broadband Business Solutions TV and broadband services to domestic users Investor Day ICT services to SMEs and corporate clients T Investor Day 15#17Digicel Pacific has invested significantly in its network in each of its six operating markets T 31 Digicel Pacific has a superior mobile network in PNG that is difficult to replicate: >960 cell towers, with -75% upgraded to 4G LTE Challenging terrain and climate - 148 helicopter access sites -80% population coverage for 2G, -55% for 4G It also has a well-invested network with high population coverage in all the Hub markets: 480 cell sites across Fiji, Samoa, Tonga, Vanuatu and Nauru, with -80% upgraded to 4G LTE Between 87-99% population coverage for 2G, and 69-99% for 4G HARDWARE Page 31 Copyright TelstraⒸ The Digicel Foundation in PNG was established in 2008 WE'RE BETTER TOGETHER 00 32 32 Page 32 Completed over 450 education, health and Directly impacting over 900,000 people community projects Copyright TelstraⒸ Investor Day T Managed and governed through Foundation Board Investor Day 16#1833 34 Telstra is a leading provider in South Pacific already and this acquisition will further strengthen our position T Telstra core network Planned We are a leading provider of international voice and data services in the South Pacific region Licensed operator in Papua New Guinea since 2012 NCP Japan. South Korea JUS FASTER WC USA Mainland China UNITY PC1 Hong Kong Taiwan PLCN Hawaii AAG Philippines Guam Thailand Vietnam/ SXN Malaysia Singapore Brunei Tokelau Samoa Indonesia Australia Illustrative only map not to scale and not all cables are shown Page 33 Copyright TelstraⒸ Kiribati Fiji American Samoa TGA New Zealand Acquired 25% equity stake in the Southern Cross Cable Network Invested in capacity on Southern Cross NEXT Cable, connecting Australia, NZ and the US, with branching units linking Fiji, Tokelau, and Kiribati ✓ Partnered with the Australian Government to build the Coral Sea Cable, connecting PNG, Solomon Islands and Australia Member of the Pacific Islands Telecommunications Association Investor Day T Key FY25 Outcomes B Strategic NPS of +60 Low to mid-single digit revenue CAGR to FY25 Early-20s EBITDA margin for International* Partner of choice for majority of Australian HQ'd Enterprise customers Page 34 Copyright Telstra Note: All financial ambitions exclude Digicel Pacific. See disclaimer slide in relation to financial ambitions *Includes corporate overheads Investor Day 17#1956 36 35 T25 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 Page 35 Copyright TelstraⒸ Network & Technology Network leadership; by FY25: -95% pop. coverage for 5G >80% of traffic on 5G 3G closed in FY24 Win majority of key surveys for best fixed/mobile network including Coverage, and •Overall customers speeds for mobile FY23-FY25 Double metro cell sites by FY25 to densify the network Expand regional coverage 100,000km2new coverage by FY25 Growth and value Underlying EBITDA ⚫$7.5-8.0b by FY23 New ways of working Remain at 90th percentile employee engagement ⚫ Mid-single digit CAGR FY21 (equivalent to high- to FY25 Underlying ROIC • ~8% by FY23 • Grow beyond to FY25 Underlying EPS: High-teens 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 Note: Commitments are baselined to FY21, except where stated otherwise and see disclaimer slide in relation to financial ambitions. Responsible business 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 Investor Day Page 36 Copyright TelstraⒸ New Markets: Health Professor Mary Foley AM MD Telstra Health Investor Day T 18#2037 38 Page 37 Telstra Health Purpose and Vision Our Purpose is to realise a connected and improved digital health experience for all Our Vision is to improve lives through digitally-enabled care for our community Accelerate the digitisation of health and aged care providers Expand our business in international healthcare markets Combine our capabilities to support connected health. platforms Copyright TelstraⒸ Telstra Health is Australia's largest and most comprehensive health software and technology company with a growing global footprint Across Australia and the UK - and expanding across North America, Asia, the Middle East and Europe 1,400+ staff 15 locations Our customers include public health systems in Hong Kong, Canada, the Middle East and Australia, state and territory governments, public and private hospital groups, Aboriginal health services, pharmacies, general medical practices and others Page 38 Copyright TelstraⒸ T Health Investor Day T Health Strategic acquisitions and joint ventures PowerHealth during FY21/22 Medical Director Knowledge | Experience | Results Investor Day 19#2139 Telstra Health has built a unique footprint and capability across the entire continuum of care in health and aged care Page 39 Copyright TelstraⒸ 40 40 e-scripts FRED IT GROUP Health Population Health Pharmacy Retail pharmacy systems Electronic prescriptions. National medicines safety platforms National and State Platforms Digitally enabled care for whole communities e.g. cancer screening Health Aged & Disability Aged and Disability *Residential Aged Care •Community Aged and Disability. Carel Hospitals Electronic records Patient Management *Billing, revenue Clinical costing Kyra Analytics and Insights Quality benchmarking Patient insights Population health insights T Health PowerHealth Health UK dr foster Virtual care Remote monitoring Hospital avoidance Hospital in the Home | Patient engagement Primary and Community Health GPs and specialists Integrated telehealth Remote and indigenous health •Community health clinics: MedicalDirector 4 HealthNow Communicare Telstra Health has strong verticals in each market segment Aged & Disability telehealth Investor Day T Health Supporting: 62k Residential aged care beds Hospitals & Connected Health Our Kyra product is the only full Electronic Medical Record developed in Australia and available in the domestic market Pharmacy (FRED IT) 333m+ Prescriptions dispensed through eRx per year Population Health. Calls per year answered from 360k screening participants, health professionals and laboratories 250+ Largest Australian provider of residential aged care and 2.6k Community pharmacies in Australia use FRED's clinical systems 3m+ disability support provider digital systems, with 250+ customers Secure Messaging supporting 5,000+ healthcare organisations Bowel screening kits issued to screening participants 540 Hospitals in Australia use our software solutions 1 All states and territories are contracted and will be live using Real Time Prescription Monitoring solution by early 2022 16m Unique cancer screening record for Australian citizens Virtual Care Solutions Telstra Health UK (Dr Foster) Supporting: Hospital in the Home! & Clinicians use implementations for hospital providers 71 Data and analytics solutions for NHS Hospital Trusts 23k+ Virtual care solutions supporting international travellers in hotel quarantine during the COVID-19 pandemic 1k+ Public and private hospitals worldwide use PowerHealth's solutions Clinical Coding & Hospital Billing 80m+ Medical Director's software platforms p.a. Community Health Healthcare professionals. working in Aboriginal Community Controlled Health Organisations (ACCHOS) use Communicare It is the leading multi- disciplinary electronic health system in Community Health Primary Health (GPs) 8k+ Medical Director's software Clinical consultations processed on Page 40 Copyright TelstraⒸ Investor Day 20#22Telstra Health's unique set of offerings also enable interoperable solutions that span the health ecosystem Electronic prescriptions Real time prescription| monitoring Cancer screening Hospital in the Home Virtual health monitoring solutions 0000E-referrals 41 TITE ZIED NATIONAL/FEDERAL GOVERNMENTS Page 41 Copyright TelstraⒸ 116660 cce PHARMACY 0000 STATE AND TERRITORY GOVERNMENT GP PATHOLOGY Health 0000 0000 COMMUNITY EMERGENCY HEALTHCARE PRIMARY HEALTH CARE PRACTITIONERS - GPs, psychologists and others -Other medical specialists PRIVATE AND PUBLIC HOSPITALS Health systems globally are looking to digital solutions to solve the challenges they are grappling with 42 42 Page 42 AGED CARE 田田田 日田口 COMMUNITY HEALTH CENTRES (INCLUDING ABORIGINAL COMMUNITY CONTROLLED ORGANISATIONS) Investor Day T Health + Growing health spend as a share of GDP, currently at 10% in OECD countries Movement towards new models of care including integrated and more value- based care models Rising pressures on healthcare provider capacity and budgets Growing prevalence of chronic disease and an ageing population - Australians aged 65 and over predicted to double by 2060 Acceleration of digitisation (emphasised through COVID-19) and data analytics improving patient engagement and delivery of care by providers Copyright Telstra Investor Day 21#2343 33 44 44 Page 43 Copyright Telstra Page 44 Expand our business into international healthcare markets . Grow our comprehensive set of solutions into similar markets and markets where we already have a presence such as in the UK Leverage the strong international presence of PowerHealth and realise the synergies of our joint venture as well as our acquisition of Medical Director to further develop our global footprint Copyright Telstra Health Accelerate the . . • • digitisation of health and aged care providers Strengthen our core business of digitising health and aged care domestically and internationally Grow our market leading positions in primary and community health, aged care and pharmacies Focus on supporting the digitisation of public and private hospital clinical records and processes Provide a full range of digital support across products, solutions, platforms, system integration, data and analytics and advisory services Investor Day T Health Investor Day 22#24Combine our capabilities to support connected health platforms Leverage our strong footprint and capabilities across the healthcare system to support whole of nation platforms such as: Health Information Exchanges 0000 45 45 • Population Health Management • Rural and remote health solutions Virtual care solutions Data, analytics & Al Page 45 Copyright TelstraⒸ wwwwww STATE AND TERRITORY GOVERNMENT PATHOLOGY PHARMACY GP 0000 Health COMMUNITY HEALTHCARE AGED CARE BBOT 田田田 ☐ EMERGENCY Investor Day Our growth and investments to date put us in a strong position to deliver our strategy and financial ambition Telstra Health Revenue Growth $500m+ FY18A FY19A FY20A FY21A FY22F FY23F FY24F FY25F Additional growth through connected platforms Accelerated growth through existing JV/acquisitions incl. international ■Growth in our core business T Health Telstra Health is expected to achieve annual revenue $500m+ during FY25 through ensuring: Strong growth in our core business Our core underlying business has achieved revenue growth of 17% CAGR over the past four years Currently, more than 80% of our revenue is recurring We also expect to achieve high-teens organic CAGR Successful integration of our recent joint venture and acquisition to augment our capabilities including opportunities to accelerate international growth Broadening our footprint and enhancing our offerings e.g. in data & analytics with PowerHealth and MedicalDirector Realisation of untapped value by creating interoperable solutions in a growing market Investing in solutions and platforms that connect fragmented systems to create value 46 46 Page 46 Copyright Telstra Note: See disclaimer slide in relation to financial ambitions Investor Day 23#25T25 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 Page 47 Copyright TelstraⒸ Network & Technology Network leadership; by FY25: -95% pop. coverage for 5G >80% of traffic on 5G 3G closed in FY24 Growth and value Underlying EBITDA ⚫$7.5-8.0b by FY23 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 • ~8% by FY23 best fixed/mobile network including Coverage, and Overall customers speeds for mobile FY23-FY25 Double metro cell sites by FY25 to densify the network Expand regional coverage 100,000km2 new coverage by FY25 • Grow beyond to FY25 Underlying EPS: High-teens 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 Responsible business Enable renewable energy with customers are capable of generation equivalent to 100% of our consumption by 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 Note: Commitments are baselined to FY21, except where stated otherwise and see disclaimer slide in relation to financial ambitions. 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 Investor Day 47 48 48 Page 48 Copyright Telstra New Markets: Energy Ben Burge Telstra Energy T Investor Day 24#2649 49 Telstra Energy Page 49 Copyright TelstraⒸ 50 Our purpose and values Our ambition We are changemakers To build a connected future so everyone can thrive We are better together We care We make it simple Building and scaling our Telstra Energy business by helping Australian families save money, time and emissions Launch a simple, Our building blocks sustainable and integrated energy Scale through Telstra's channels Build on our climate strategy proposition A natural extension of our history in energy FY16 FY22 lovestor Day FY25 T Late 2016 Mid 2017 Late 2017 Up to 2021 ⚫ Registered . Telstra Energy as generator with AEMO Trialled Energy Retailing in our contact centres . Executed Emerald Solar Park PPA Expanded energy risk management capability with specialists Executed Murra Warra Wind Farm PPAs Scaled use of standby power assets to address peak demand and grid instability Executed Crookwell 3 Wind Farm PPA Applied for Energy Retail licences Late 2021 ⚫ Launching clean energy tracker ⚫ Trialing Energy products with staff Retail licences 2022 Continue investing in carbon abatement Launching Energy products to existing Telstra customers followed by broader market launch . 2023 Crookwell 3 comes online Continue to release new features for retail . Further investment in PPAs and storage 2025 Top 5 Energy Retailer 0.5m+ customers Enable renewable energy equivalent to 100% of our consumption Page 50 Copyright TelstraⒸ Investor Day 25#2751 Our Telstra Energy proposition A simple and sustainable proposition Integrated experience 100% carbon neutral Save customers money Telstra branded Telstra Plus points مة • Not asking them to form any new habits Folded into MyTelstra alongside mobiles and fixed broadband Woven into Agent Console, which (over time) underpins sales and support in all channels • Doing the work for (and with) them For 100% of customers at no extra cost ⚫Further enhanced by sustainability tools (e.g. clean energy tracker) if they want to get involved Page 51 Copyright TelstraⒸ 62 52 ° Making it worth their while to switch Not asking them to learn a new brand Rewarding them for a begrudging purchase . Tools and insights to Leverages the Telstra optimise usage brand . Cost effective plans, even without Access to Telstra's large consumer and . optimisation small business base Automating points earn at same rate as telco Significant spend p.a. that otherwise "goes to waste" Our existing channels, relationships and interactions pave the road to scale میرا • Scale • Relationships with 5.4m Australian households and -0.9m SMB customers 3.5m Telstra Plus members and 6.5m active digital users Target 1.7m household "moves" p.a. with a high proportion already with Telstra Focus on acquiring energy switchers; trials confirm cost-to-acquire advantage Channel & Marketing . Leverage Telstra Plus with exclusive offers Digital launch on the new stack; then scale in stores and contact centres Ramping up marketing from FY23 (incl to non-Telstra customers) Risk Management Capital-light organic investment Activation of standby assets to enhance peak energy risk management Mitigate energy costs with structured positions (e.g. Murra Warra wind farm) Key FY25 Outcomes Top 5 Energy Retailer by FY25 0.5m+ customers Page 52 Copyright TelstraⒸ Investor Day T Investor Day 26#2854 53 Embracing energy volatility Risk management in the age of high-fidelity price signals and flexible assets Operational demand (MW) The changing profile of demand: yesterday's advantage becomes tomorrow's disadvantage Conceptual representation of exposure at 0.5m customers 1,400 1,200 $150M 1,000 FY17 800 $100M 600 FY23 Operational demand (MW) 400 200 in South Australia 0 -200 -400 -600 FY30 FY37 $50M $- -800 12:00:00 AM 6:00:00 AM 12:00:00 PM Time of day 6:00:00 PM 12.00 Source: AEMO, taken from AEMC Reliability Panel, 'Annual Market Performance Review 2018' Page 53 Copyright TelstraⒸ Page 64 Copyright Telstra 5% 15% 25% 35% 45% 55% 65% 75% 85% 95% Risk cover PRICE BAND High Medium Low Risk cover Physical (today) Physical (in future) Contract Investor Day • • T Energy retail is a natural category extension for Telstra Telstra is already an active participant in Australia's energy markets and energy retail is a natural extension Our energy proposition will be simple & sustainable and will deliver value for customers Our existing channels, relationships and assets will help us scale effectively to meet our growth ambitions Telstra Energy complements both our core business and our ambitious renewable energy commitments Investor Day 27 T#2955 56 T25 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 Page 55 Copyright TelstraⒸ Network & Technology Network leadership; by FY25: -95% pop. coverage for 5G >80% of traffic on 5G 3G closed in FY24 Win majority of key surveys for best fixed/mobile network including Coverage, and Overall customers speeds for mobile FY23-FY25 Double metro cell sites by FY25 to densify the network Expand regional coverage 100,000km2new coverage by FY25 Growth and value Underlying EBITDA ⚫$7.5-8.0b by FY23 New ways of working Remain at 90th percentile employee engagement ⚫Mid-single digit CAGR FY21 (equivalent to high- to FY25 Underlying ROIC ⚫-8% by FY23 • Grow beyond to FY25 Underlying EPS: High-teens 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 Responsible business Enable renewable energy with customers are capable of generation equivalent to 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 Note: Commitments are baselined to FY21, except where stated otherwise and see disclaimer slide in relation to financial ambitions. 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 Investor Day Appendix T 28#3057 58 Glossary Term Definition (unless separately defined in the slide footnotes) T CAGR Capex EBITDAAL Guidance adjustments net one-off nbn receipts Reported lease adjusted ROIC Underlying earnings Underlying EPS Underlying EBITDA Underlying ROIC Compound Annual Growth Rate Capex is measured on an accrued basis and excludes spectrum and guidance adjustments, externally funded capex, and capitalised leases Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and after leases Guidance adjustments include material one-offs, such as mergers and acquisitions, disposals, impairments, spectrum, restructuring costs and such other items as determined by the Board and management Net one-off nbn Definitive Agreement receipts (consisting of PSAA, Infrastructure Ownership and Retraining) less nbn net cost to connect (C2C) FY21 'reported lease adjusted' includes all mobile handset leases as operating expenses, and all rent/other leases below EBITDA Calculated as Net Operating Profit after Tax (NOPAT) as a percentage of total capital Profit after Tax and Minority Interests (PATMI) from continuing operations excluding net one-off nbn receipts and guidance adjustments Underlying Earnings Per Share (EPS) EBITDA excluding net one-off nbn receipts and guidance adjustments. FY21 underlying EBITDA also includes depreciation of mobile lease right-of-use assets Calculated as NOPAT excluding net one-off nbn receipts and guidance adjustments, less tax, as a percentage of total capital Page 57 Copyright TelstraⒸ Disclaimer Investor Day T These presentations include certain forward-looking statements. The forward-looking statements are based on certain assumptions and information known by Telstra, and on Telstra's reporting framework, 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 58 Copyright TelstraⒸ Investor Day 29