Slides
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1 Copyright Telstra © 1 Half year 2026 results Copyright Telstra © 2 Disclaimer Forward - looking statements This presentation includes forward - looking statements. The forward - looking statements are based on assumptions and information k nown by Telstra as at the date of this presentation, are provided as a general guide only and are not guarantees or predictio ns of future performance. Telstra believes the expectations reflected in the forward - looking statements are reasonable as at the date of this presentation, but acknowledge s they involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Telstra, whi ch 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; competition in the markets in which Telstra operates; the continui ng growth in the markets in which Telstra operates; the implications of legal and regulatory risks in the businesses of Telstra; technological changes taking place in the telecommunications industry; future changes to Telstra’s products and services; the risk of cyber and data security issues; t he geopolitical environment (including impacts of sanctions and trade controls and broader supply chain impacts); exchange rates; the extent, nature and location of physica l i mpacts of climate change and their impacts on our assets, service continuity, supply chain reliability and responsible sourci ng; responsible AI scaling; energy resilience and electricity grid decarbonisation; and changes to forecast supply chain emissions including but not limited to failure of thir d p arties to achieve contractual environmental targets or milestones that have direct or indirect impact on our environmental mo del ling. A number of these risks, uncertainties and other factors are described in the "Chair and CEO’s message", "Our material risks" an d "Outlook" sections of Telstra’s Annual Report which was lodged with the ASX on 25 August 2025, and is available on Telstra’ s I nvestor Centre website www.telstra.com.au/aboutus/investors. In addition, there are particular risks and uncertainties in connection with the implem ent ation of Telstra’s Connected Future 30 strategy. Those risks include strategic execution risks associated with the scale and int erdependences of our transformation programs, financial performance risks emerging from economic conditions, broader geopolitical challenges, the response of cus tom ers to changes in products and the way Telstra interacts with customers as Telstra moves to a digital operating model, the ri sks of disruption from changes in Telstra’s ways of working, and Telstra’s ability to execute and manage the elements of the strategy in a sequenced, controlled and effe cti ve manner and realise the planned benefits, cost savings and growth opportunities. Due to the inherent uncertainty and limitations in measuring or quantifying greenhouse gas (GHG) emissions under the calculat ion methodologies used in the preparation of such data, all GHG emissions data or references to GHG emissions volumes (including ra tios or percentages) in this presentation are estimates. The accuracy of Telstra’s GHG emissions data and other metrics may be impacted by various factors , i ncluding inconsistent data availability, a lack of common definitions and standards for reporting climate - related information, q uality of historical emissions data, reliance on assumptions and changes in market practice. These factors may impact Telstra’s ability to meet commitments and ta rge ts or cause Telstra’s results to differ materially from those expressed or implied in this presentation. There may also be di ffe rences in the manner that third parties calculate or report GHG emissions data compared to Telstra, which means that third - party data may not be comparable to our data. In FY23 we acquired Digicel Pacific. The disclosures in this presentation in relation to the matters noted above do not inclu de Digicel Pacific unless otherwise stated. Telstra does not provide financial guidance beyond the current financial year. Telstra’s financial targets and growth ambitio ns across our portfolio (including the targets to FY30 in connection with the Connected Future 30 strategy) are not guidance and th ere are greater risks and uncertainties in connection with these targets and ambitions. The targets to FY30 provided in this presentation are provided to illustrate som e o f the outcomes management is currently focused on delivering in connection with the Connected Future 30 strategy. Each target is subject to a range of assumptions and contingencies including the factors referred to above. Readers 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 currency, accur ac y, reliability, and completeness of any forward - looking statements, whether as a result of new information, future events or otherwise. Telstra assumes no obligation to update any forward - looking statements, and to the maximum extent permitted by law, disclaims any obligation or undertaking to r elease any updates or revisions to the information contained in this presentation to reflect any change in expectations and assumptions. Defined terms are set out in the slide “Glossary”. Group performance results It is our intention to continue to provide meaningful financial information to enable shareholders to understand our performa nce . Telstra uses non - IFRS financial information (being “EBITDA”, “Underlying EBITDA”, “ EBITDAaL ”, “Underlying EBITDAaL ”, “Underlying NPAT”, “Underlying EPS”, “ROIC”, “Underlying ROIC”, “Underlying income”, “Underlying operating expenses”, “Underlying cashflow before dividends, buy - backs and ne t borrowings”, “Cash EBIT”, “Cash earnings”, “Cash EPS” and “operating leverage”) as measures to better reflect what Telstra co nsiders to be its underlying performance. This non - IFRS financial information is consistent with how management reviews financial performance with the Board and the investment community. Telstra includes these measures in this presentation to help readers better compare our underly ing financial performance with that of previous periods. Underlying EBITDAaL and Cash EBIT also show how the business performed on the same basis as the guidance we provided to the market. Telstra’s Investor Day presentation on 27 May 2025 on Connected Future 30 set out our key targets and measures of performance fo r our new strategy, both financial and non - financial. Three key financial measures in our Connected Future 30 strategy are Cash EBIT, operating leverage and Underlying ROIC. Cash EBIT, operating leverage and Underlying ROIC are also FY26 Short Term Incentive (STI) performance measu res selected by the Board and designed to focus Senior Executives on delivering the first year of our Connected Future 30 strateg y, and to help ensure that financial rewards are linked directly to their contributions, to company performance and to long term shareholder value creation. Underlying earnings before interest, taxes, depreciation and amortisation (Underlying EBITDA) is used to assess our operation al profitability. EBITDA after leases ( EBITDAaL ) and Underlying EBITDAaL are used to assess our operational profitability after leases. Underlying net profit after tax (Underlying NPAT) is used to assess our operational financial performance and reflects underlying EBITDA less interest, tax, dep reciation and amortisation. Underlying earnings per share (Underlying EPS) is used to assess our operational financial perfo rma nce on a per share basis. Underlying return on invested capital (Underlying ROIC) is used to assess our efficiency at allocating capital and reflects underlying net oper ati ng profit after tax (Underlying NOPAT) as a percentage of total capital. Underlying ROIC is highly correlated with shareholde r v alue creation. Underlying income and Underlying operating expenses are used to assess our operational income and expense performance respectively. Underlying cash flo w before dividends, buy - backs and net borrowings is used to assess our underlying cash generation available to shareholders and reflects operating cash flows, less investing cash flows, less financing cash flows (excluding net proceeds from borrowings, share buy - back, and dividends paid to e quity holders of Telstra Entity), and less strategic investment. Cash earnings before interest and tax (Cash EBIT), Cash earn ing s and Cash EPS are also used to assess our underlying cash generation and ensure appropriate focus on profit as well as costs and capex. Cash EBIT reflects Underlying EBITDAaL less business - as - usual capex and spectrum amortisation. Cash earnings reflects Cash EBIT less finance costs, tax and minorities . Cash EPS reflects Cash earnings on a per share basis. Positive operating leverage is used to assess our financial discipline under our Connected Future 30 st rat egy and reflects underlying income percentage growth greater than Cash EBIT cost percentage growth. All non - IFRS underlying measures, Cash EBIT, Cash earnings, Cash EPS and operating leverage exclude material one - offs such as me rgers and acquisitions, disposals, impairments, spectrum, restructuring costs and such other items as determined by the Board an d management. An explanation of each adjustment and a reconciliation to our reported IFRS financial information for Underlying EBITDAaL and Cash EBIT is set out in the “Guidance versus reported results” schedule. This schedule has been reviewed by our auditor f or consistency with the basis set out in the guidance we provided to the market. Underlying NPAT and Underlying EPS are set out in the “Underlying earnings reconciliation to reported earnings” s lid e, “Underlying ROIC” in “Return on Invested Capital (ROIC)” slide and “Underlying income” in “Product performance – Income” slid e. “Underlying cashflow before dividends, buy - backs and net borrowings” is set out on “Cashflow supporting investment, dividends and buy - backs” slide. Cash EBIT, Cash earnings and Cash EPS are set out in “Cash earnings” slide. Operating leverage is set out in “Operating leverage” slide. These slides have not been reviewed b y our auditors. No offer, invitation or advice This presentation is not intended to (nor does it) constitute an offer or invitation by or on behalf of Telstra, its subsidia rie s, or any other person to subscribe for, purchase or otherwise deal in any equity, debt instrument or other securities, nor i s i t 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 s ecu rities. Information in this presentation, including forward - looking statements and guidance, should not be considered as investment, tax , legal or other advice. You should make your own assessment and seek independent professional advice in connection with any inv estment decision. Unaudited information All forward - looking figures and proforma statements in this presentation are unaudited and based on A - IFRS unless otherwise indi cated. Certain figures may be subject to rounding differences. All market share information in this presentation is based on man agement estimates having regard to internally available information unless otherwise indicated. Other information All amounts are in Australian Dollars unless otherwise stated. The ‘Telstra InfraCo’ trade mark is a registered trade mark of Telstra Corporation Limited. All other trade marks of the Tels tra Group are the property of Telstra Limited. nbn co and other nbn logos and brands are trade marks of nbn co limited and used u nd er licence. Other trade marks are the property of their respective owners. 1 2 For personal use only
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1 Copyright Telstra © 1 Half year 2026 results Copyright Telstra © 2 Disclaimer Forward - looking statements This presentation includes forward - looking statements. The forward - looking statements are based on assumptions and information k nown by Telstra as at the date of this presentation, are provided as a general guide only and are not guarantees or predictio ns of future performance. Telstra believes the expectations reflected in the forward - looking statements are reasonable as at the date of this presentation, but acknowledge s they involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Telstra, whi ch 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; competition in the markets in which Telstra operates; the continui ng growth in the markets in which Telstra operates; the implications of legal and regulatory risks in the businesses of Telstra; technological changes taking place in the telecommunications industry; future changes to Telstra’s products and services; the risk of cyber and data security issues; t he geopolitical environment (including impacts of sanctions and trade controls and broader supply chain impacts); exchange rates; the extent, nature and location of physica l i mpacts of climate change and their impacts on our assets, service continuity, supply chain reliability and responsible sourci ng; responsible AI scaling; energy resilience and electricity grid decarbonisation; and changes to forecast supply chain emissions including but not limited to failure of thir d p arties to achieve contractual environmental targets or milestones that have direct or indirect impact on our environmental mo del ling. A number of these risks, uncertainties and other factors are described in the "Chair and CEO’s message", "Our material risks" an d "Outlook" sections of Telstra’s Annual Report which was lodged with the ASX on 25 August 2025, and is available on Telstra’ s I nvestor Centre website www.telstra.com.au/aboutus/investors. In addition, there are particular risks and uncertainties in connection with the implem ent ation of Telstra’s Connected Future 30 strategy. Those risks include strategic execution risks associated with the scale and int erdependences of our transformation programs, financial performance risks emerging from economic conditions, broader geopolitical challenges, the response of cus tom ers to changes in products and the way Telstra interacts with customers as Telstra moves to a digital operating model, the ri sks of disruption from changes in Telstra’s ways of working, and Telstra’s ability to execute and manage the elements of the strategy in a sequenced, controlled and effe cti ve manner and realise the planned benefits, cost savings and growth opportunities. Due to the inherent uncertainty and limitations in measuring or quantifying greenhouse gas (GHG) emissions under the calculat ion methodologies used in the preparation of such data, all GHG emissions data or references to GHG emissions volumes (including ra tios or percentages) in this presentation are estimates. The accuracy of Telstra’s GHG emissions data and other metrics may be impacted by various factors , i ncluding inconsistent data availability, a lack of common definitions and standards for reporting climate - related information, q uality of historical emissions data, reliance on assumptions and changes in market practice. These factors may impact Telstra’s ability to meet commitments and ta rge ts or cause Telstra’s results to differ materially from those expressed or implied in this presentation. There may also be di ffe rences in the manner that third parties calculate or report GHG emissions data compared to Telstra, which means that third - party data may not be comparable to our data. In FY23 we acquired Digicel Pacific. The disclosures in this presentation in relation to the matters noted above do not inclu de Digicel Pacific unless otherwise stated. Telstra does not provide financial guidance beyond the current financial year. Telstra’s financial targets and growth ambitio ns across our portfolio (including the targets to FY30 in connection with the Connected Future 30 strategy) are not guidance and th ere are greater risks and uncertainties in connection with these targets and ambitions. The targets to FY30 provided in this presentation are provided to illustrate som e o f the outcomes management is currently focused on delivering in connection with the Connected Future 30 strategy. Each target is subject to a range of assumptions and contingencies including the factors referred to above. Readers 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 currency, accur ac y, reliability, and completeness of any forward - looking statements, whether as a result of new information, future events or otherwise. Telstra assumes no obligation to update any forward - looking statements, and to the maximum extent permitted by law, disclaims any obligation or undertaking to r elease any updates or revisions to the information contained in this presentation to reflect any change in expectations and assumptions. Defined terms are set out in the slide “Glossary”. Group performance results It is our intention to continue to provide meaningful financial information to enable shareholders to understand our performa nce . Telstra uses non - IFRS financial information (being “EBITDA”, “Underlying EBITDA”, “ EBITDAaL ”, “Underlying EBITDAaL ”, “Underlying NPAT”, “Underlying EPS”, “ROIC”, “Underlying ROIC”, “Underlying income”, “Underlying operating expenses”, “Underlying cashflow before dividends, buy - backs and ne t borrowings”, “Cash EBIT”, “Cash earnings”, “Cash EPS” and “operating leverage”) as measures to better reflect what Telstra co nsiders to be its underlying performance. This non - IFRS financial information is consistent with how management reviews financial performance with the Board and the investment community. Telstra includes these measures in this presentation to help readers better compare our underly ing financial performance with that of previous periods. Underlying EBITDAaL and Cash EBIT also show how the business performed on the same basis as the guidance we provided to the market. Telstra’s Investor Day presentation on 27 May 2025 on Connected Future 30 set out our key targets and measures of performance fo r our new strategy, both financial and non - financial. Three key financial measures in our Connected Future 30 strategy are Cash EBIT, operating leverage and Underlying ROIC. Cash EBIT, operating leverage and Underlying ROIC are also FY26 Short Term Incentive (STI) performance measu res selected by the Board and designed to focus Senior Executives on delivering the first year of our Connected Future 30 strateg y, and to help ensure that financial rewards are linked directly to their contributions, to company performance and to long term shareholder value creation. Underlying earnings before interest, taxes, depreciation and amortisation (Underlying EBITDA) is used to assess our operation al profitability. EBITDA after leases ( EBITDAaL ) and Underlying EBITDAaL are used to assess our operational profitability after leases. Underlying net profit after tax (Underlying NPAT) is used to assess our operational financial performance and reflects underlying EBITDA less interest, tax, dep reciation and amortisation. Underlying earnings per share (Underlying EPS) is used to assess our operational financial perfo rma nce on a per share basis. Underlying return on invested capital (Underlying ROIC) is used to assess our efficiency at allocating capital and reflects underlying net oper ati ng profit after tax (Underlying NOPAT) as a percentage of total capital. Underlying ROIC is highly correlated with shareholde r v alue creation. Underlying income and Underlying operating expenses are used to assess our operational income and expense performance respectively. Underlying cash flo w before dividends, buy - backs and net borrowings is used to assess our underlying cash generation available to shareholders and reflects operating cash flows, less investing cash flows, less financing cash flows (excluding net proceeds from borrowings, share buy - back, and dividends paid to e quity holders of Telstra Entity), and less strategic investment. Cash earnings before interest and tax (Cash EBIT), Cash earn ing s and Cash EPS are also used to assess our underlying cash generation and ensure appropriate focus on profit as well as costs and capex. Cash EBIT reflects Underlying EBITDAaL less business - as - usual capex and spectrum amortisation. Cash earnings reflects Cash EBIT less finance costs, tax and minorities . Cash EPS reflects Cash earnings on a per share basis. Positive operating leverage is used to assess our financial discipline under our Connected Future 30 st rat egy and reflects underlying income percentage growth greater than Cash EBIT cost percentage growth. All non - IFRS underlying measures, Cash EBIT, Cash earnings, Cash EPS and operating leverage exclude material one - offs such as me rgers and acquisitions, disposals, impairments, spectrum, restructuring costs and such other items as determined by the Board an d management. An explanation of each adjustment and a reconciliation to our reported IFRS financial information for Underlying EBITDAaL and Cash EBIT is set out in the “Guidance versus reported results” schedule. This schedule has been reviewed by our auditor f or consistency with the basis set out in the guidance we provided to the market. Underlying NPAT and Underlying EPS are set out in the “Underlying earnings reconciliation to reported earnings” s lid e, “Underlying ROIC” in “Return on Invested Capital (ROIC)” slide and “Underlying income” in “Product performance – Income” slid e. “Underlying cashflow before dividends, buy - backs and net borrowings” is set out on “Cashflow supporting investment, dividends and buy - backs” slide. Cash EBIT, Cash earnings and Cash EPS are set out in “Cash earnings” slide. Operating leverage is set out in “Operating leverage” slide. These slides have not been reviewed b y our auditors. No offer, invitation or advice This presentation is not intended to (nor does it) constitute an offer or invitation by or on behalf of Telstra, its subsidia rie s, or any other person to subscribe for, purchase or otherwise deal in any equity, debt instrument or other securities, nor i s i t 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 s ecu rities. Information in this presentation, including forward - looking statements and guidance, should not be considered as investment, tax , legal or other advice. You should make your own assessment and seek independent professional advice in connection with any inv estment decision. Unaudited information All forward - looking figures and proforma statements in this presentation are unaudited and based on A - IFRS unless otherwise indi cated. Certain figures may be subject to rounding differences. All market share information in this presentation is based on man agement estimates having regard to internally available information unless otherwise indicated. Other information All amounts are in Australian Dollars unless otherwise stated. The ‘Telstra InfraCo’ trade mark is a registered trade mark of Telstra Corporation Limited. All other trade marks of the Tels tra Group are the property of Telstra Limited. nbn co and other nbn logos and brands are trade marks of nbn co limited and used u nd er licence. Other trade marks are the property of their respective owners. 1 2 For personal use only
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2 Copyright Telstra © 3 Half year 2026 results Vicki Brady – Chief Executive Officer Copyright Telstra © 4 EBIT $2.0b + 9.2 % Cash EBIT 1,2 $2.5b +14 % On - market share buy - back 1H26 $637m completed Increased to up to $1.25b NPAT $1.2b +8.1% Underlying NPAT 1 $1.2b +10% Interim dividend 3 10.5cps +10.5% 90.5% franked (9.5cps franked and 1cps unfranked) Half year 2026 results EBITDAaL $4.2b +4.9 % Underlying EBITDAaL 1,2 $4.2b +5.5 % All percentage growth rates on prior corresponding period (PCP). 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 3. Interim dividend growth of 10.5% on a cash basis, from 1H25 9.5 cents per share (fully franked) to 1H26 10.5 cents per share (90 .5% franked). ROIC 8.8 % +0.8 pp Underlying ROIC 1 8.9 % +0.9 pp EPS 9.9cps + 11 % Cash EPS 1 14.0cps +20% Customer experience Strategic NPS improved 5 points last 12 months Episode NPS improved 2 points last 12 months 3 4 For personal use only
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2 Copyright Telstra © 3 Half year 2026 results Vicki Brady – Chief Executive Officer Copyright Telstra © 4 EBIT $2.0b + 9.2 % Cash EBIT 1,2 $2.5b +14 % On - market share buy - back 1H26 $637m completed Increased to up to $1.25b NPAT $1.2b +8.1% Underlying NPAT 1 $1.2b +10% Interim dividend 3 10.5cps +10.5% 90.5% franked (9.5cps franked and 1cps unfranked) Half year 2026 results EBITDAaL $4.2b +4.9 % Underlying EBITDAaL 1,2 $4.2b +5.5 % All percentage growth rates on prior corresponding period (PCP). 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 3. Interim dividend growth of 10.5% on a cash basis, from 1H25 9.5 cents per share (fully franked) to 1H26 10.5 cents per share (90 .5% franked). ROIC 8.8 % +0.8 pp Underlying ROIC 1 8.9 % +0.9 pp EPS 9.9cps + 11 % Cash EPS 1 14.0cps +20% Customer experience Strategic NPS improved 5 points last 12 months Episode NPS improved 2 points last 12 months 3 4 For personal use only
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3 Copyright Telstra © 5 All growth and percentage growth rates against prior corresponding period (PCP). 1. Refer to definition in the Glossary. 2. Positive operating leverage defined as underlying income percentage growth greater than Cash EBIT cost percentage growth. Further detail on ‘Operating leverage’ slide in Appendix. 3. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). Half year 2026 results $2.9b $3.2b $3.6b $3.7b $4.0b $4.2b 1H21 1H22 1H23 1H24 1H25 1H26 Underlying EBITDAaL 1,3 7% CAGR 1H21 to 1H26 1H26 EBITDA 4.7% growth 1H26 Underlying EBITDA 1 5.3% growth • Mobile: $93m growth • Fixed - C&SB: $37m growth • Fixed - Enterprise: $9m decline • International: $2m decline • InfraCo Fixed: $27m growth • Amplitel : $10m growth 1H26 Cash EBIT 1,3 14% growth • 1H26 BAU capex 1 : 5.2% decline to $1.5b 1H26 Positive operating leverage 1,2 +3.1pp • 1H26 Underlying income 1 : 0.2% growth • 1H26 Cash EBIT cost: 2.9% reduction (including underlying operating expense 2.4% reduction) Copyright Telstra © 6 Customer Engagement To lead in how we anticipate and deliver on the connectivity needs of our customers Network as a Product To build and operate Australia’s leading network and reinvent how we capture value from it Digital Infrastructure To be Australia’s leading digital infrastructure provider Our three layers and goals Technology leadership People & culture Financial discipline Sustainability Our four enablers Our ambition is to be the number one choice for connectivity in Australia Grow cash earnings by mid - single digit CAGR to FY30 Disciplined capital and portfolio management 10% underlying ROIC by FY30 % Our financial goals: Growing shareholder value Note: See the Disclaimer and Glossary slides in relation to key targets and financial goals. 5 6 For personal use only
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3 Copyright Telstra © 5 All growth and percentage growth rates against prior corresponding period (PCP). 1. Refer to definition in the Glossary. 2. Positive operating leverage defined as underlying income percentage growth greater than Cash EBIT cost percentage growth. Further detail on ‘Operating leverage’ slide in Appendix. 3. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). Half year 2026 results $2.9b $3.2b $3.6b $3.7b $4.0b $4.2b 1H21 1H22 1H23 1H24 1H25 1H26 Underlying EBITDAaL 1,3 7% CAGR 1H21 to 1H26 1H26 EBITDA 4.7% growth 1H26 Underlying EBITDA 1 5.3% growth • Mobile: $93m growth • Fixed - C&SB: $37m growth • Fixed - Enterprise: $9m decline • International: $2m decline • InfraCo Fixed: $27m growth • Amplitel : $10m growth 1H26 Cash EBIT 1,3 14% growth • 1H26 BAU capex 1 : 5.2% decline to $1.5b 1H26 Positive operating leverage 1,2 +3.1pp • 1H26 Underlying income 1 : 0.2% growth • 1H26 Cash EBIT cost: 2.9% reduction (including underlying operating expense 2.4% reduction) Copyright Telstra © 6 Customer Engagement To lead in how we anticipate and deliver on the connectivity needs of our customers Network as a Product To build and operate Australia’s leading network and reinvent how we capture value from it Digital Infrastructure To be Australia’s leading digital infrastructure provider Our three layers and goals Technology leadership People & culture Financial discipline Sustainability Our four enablers Our ambition is to be the number one choice for connectivity in Australia Grow cash earnings by mid - single digit CAGR to FY30 Disciplined capital and portfolio management 10% underlying ROIC by FY30 % Our financial goals: Growing shareholder value Note: See the Disclaimer and Glossary slides in relation to key targets and financial goals. 5 6 For personal use only
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4 Copyright Telstra © 7 Investing in connectivity • Connectivity is foundational to supporting national productivity, resilience and security • Aura Network – this week we reached the half - way mark with 7,000km of fibre in the ground – $1.1b strategic investment across Aura Network and Viasat projects to date (FY23 to 1H26) – Sydney to Melbourne coastal via Canberra routes live – More routes expected to be completed in FY26, including Sydney to Melbourne central via Canberra, and Sydney to Perth • On track to achieve 1 point uplift in Network Experience Index in FY26 • umlaut “Best in Test” (Nov 2025) for 8 th consecutive year and our highest ever score • Launched Telstra Satellite Messaging Copyright Telstra © 8 Supporting customers • More than 99.9% of our 7.7 million consumer customers migrated to our new digital stack • Significant improvements to customer experience from digitisation and AI – 86% of consumer service interactions are now completed through our Digital Self Service – AI Virtual Assistant launched Nov 2025 – almost three - fold increase in customers being able to resolve their enquiry using AI • Strategic NPS increased by 5 points and Episode NPS increased by 2 points over the last 12 months 7 8 For personal use only
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4 Copyright Telstra © 7 Investing in connectivity • Connectivity is foundational to supporting national productivity, resilience and security • Aura Network – this week we reached the half - way mark with 7,000km of fibre in the ground – $1.1b strategic investment across Aura Network and Viasat projects to date (FY23 to 1H26) – Sydney to Melbourne coastal via Canberra routes live – More routes expected to be completed in FY26, including Sydney to Melbourne central via Canberra, and Sydney to Perth • On track to achieve 1 point uplift in Network Experience Index in FY26 • umlaut “Best in Test” (Nov 2025) for 8 th consecutive year and our highest ever score • Launched Telstra Satellite Messaging Copyright Telstra © 8 Supporting customers • More than 99.9% of our 7.7 million consumer customers migrated to our new digital stack • Significant improvements to customer experience from digitisation and AI – 86% of consumer service interactions are now completed through our Digital Self Service – AI Virtual Assistant launched Nov 2025 – almost three - fold increase in customers being able to resolve their enquiry using AI • Strategic NPS increased by 5 points and Episode NPS increased by 2 points over the last 12 months 7 8 For personal use only
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5 Copyright Telstra © 9 Laying the foundations for our Connected Future 30 strategy • Innovating in core connectivity, capability and how we capture value – In mobile, our investment in 5G Advanced is moving us towards a smarter, more adaptable and programmable network – In fixed, we launched our Adaptive Network Centre in Jun 2025 • Joint Venture with Accenture is transforming our business with AI – Good progress since launch, including retiring legacy platforms, strengthening Responsible AI governance, streamlining data architecture, and opening access to global innovation via our Silicon Valley hub • Upskilling our people with AI tools – More than 75% of our team with access to AI tools used them weekly or more often – Almost 9,000 of our people completed Data & AI Academy course in 1H26 Copyright Telstra © 10 Outlook • We are focused on delivering value for our customers, communities and shareholders as we build momentum behind Connected Future 30. • Including through: – Growth in core business cash flow – Active portfolio and investment management – Disciplined capital management • Our ambition is to be the number one choice for connectivity in Australia, and to continue delivering on our purpose to build a connected future so that everyone can thrive. 9 10 For personal use only
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5 Copyright Telstra © 9 Laying the foundations for our Connected Future 30 strategy • Innovating in core connectivity, capability and how we capture value – In mobile, our investment in 5G Advanced is moving us towards a smarter, more adaptable and programmable network – In fixed, we launched our Adaptive Network Centre in Jun 2025 • Joint Venture with Accenture is transforming our business with AI – Good progress since launch, including retiring legacy platforms, strengthening Responsible AI governance, streamlining data architecture, and opening access to global innovation via our Silicon Valley hub • Upskilling our people with AI tools – More than 75% of our team with access to AI tools used them weekly or more often – Almost 9,000 of our people completed Data & AI Academy course in 1H26 Copyright Telstra © 10 Outlook • We are focused on delivering value for our customers, communities and shareholders as we build momentum behind Connected Future 30. • Including through: – Growth in core business cash flow – Active portfolio and investment management – Disciplined capital management • Our ambition is to be the number one choice for connectivity in Australia, and to continue delivering on our purpose to build a connected future so that everyone can thrive. 9 10 For personal use only
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6 Copyright Telstra © 11 Half year 2026 results Michael Ackland – Chief Financial Officer Copyright Telstra © 12 Half year 2026 results • Earnings per share (EPS) of 9.9cps up 11% from key product growth, cost and capital discipline, and accretive buy - backs • Cash EPS of 14.0cps up 20%. Cash EPS growth exceeds EPS growth, due to lower BAU capex relative to D&A • Growing shareholder returns: – Dividends per share (DPS) of 10.5cps (90.5% franked); 9.5cps franked; 1.0cps unfranked – Buy - back: $637m of TLS shares bought back in 1H26; FY26 buy - back lifted from up to $1b, to up to $1.25b • Adjustments to underlying results: – Impairment of London hosting centre in 1H26 ( - $23m) – No underlying result adjustment in 1H25 1H25 1H26 Change Total income 1 $11.8b $11.8b 0.2% Operating expenses $7.6b $7.4b - 2.1% EBITDA $4.2b $4.4b 4.7% EBITDAaL 1 $4.0b $4.2b 4.9% Underlying EBITDAaL 1,2 $4.0b $4.2b 5.5% EBIT $1.8b $2.0b 9.2% NPAT $1.1b $1.2b 8.1% Profit for TLS shareholders 1 $1.0b $1.1b 9.4% EPS (cents) 8.9 9.9 11.2% DPS (cents) 9.5 10.5 10.5% 3 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 3. Interim dividend growth of 10.5% on a cash basis, from 1H25 9.5 cents per share (fully franked) to 1H26 10.5 cents per share (90 .5% franked). Cash EBIT 1,2 $2.2b $2.5b 14.0% Cash earnings 1 $1.4b $1.6b 17.0% Cash EPS 1 (cents) 11.7 14.0 19.7% Continued earnings growth supporting increased returns to shareholders 11 12 For personal use only
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6 Copyright Telstra © 11 Half year 2026 results Michael Ackland – Chief Financial Officer Copyright Telstra © 12 Half year 2026 results • Earnings per share (EPS) of 9.9cps up 11% from key product growth, cost and capital discipline, and accretive buy - backs • Cash EPS of 14.0cps up 20%. Cash EPS growth exceeds EPS growth, due to lower BAU capex relative to D&A • Growing shareholder returns: – Dividends per share (DPS) of 10.5cps (90.5% franked); 9.5cps franked; 1.0cps unfranked – Buy - back: $637m of TLS shares bought back in 1H26; FY26 buy - back lifted from up to $1b, to up to $1.25b • Adjustments to underlying results: – Impairment of London hosting centre in 1H26 ( - $23m) – No underlying result adjustment in 1H25 1H25 1H26 Change Total income 1 $11.8b $11.8b 0.2% Operating expenses $7.6b $7.4b - 2.1% EBITDA $4.2b $4.4b 4.7% EBITDAaL 1 $4.0b $4.2b 4.9% Underlying EBITDAaL 1,2 $4.0b $4.2b 5.5% EBIT $1.8b $2.0b 9.2% NPAT $1.1b $1.2b 8.1% Profit for TLS shareholders 1 $1.0b $1.1b 9.4% EPS (cents) 8.9 9.9 11.2% DPS (cents) 9.5 10.5 10.5% 3 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 3. Interim dividend growth of 10.5% on a cash basis, from 1H25 9.5 cents per share (fully franked) to 1H26 10.5 cents per share (90 .5% franked). Cash EBIT 1,2 $2.2b $2.5b 14.0% Cash earnings 1 $1.4b $1.6b 17.0% Cash EPS 1 (cents) 11.7 14.0 19.7% Continued earnings growth supporting increased returns to shareholders 11 12 For personal use only
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7 Copyright Telstra © 13 1H25 1H26 Change Underlying EBITDAaL 1,2 $3,966m $4,185m 5.5% BAU capex 1 $1,631m $1,546m - 5.2% Spectrum amortisation $161m $161m - Cash EBIT 1,2 $2,174m $2,478m 14.0% Net finance costs $316m $332m 5.1% Tax expense $415m $479m 15.4% Non - controlling interests $88m $81m - 8.0% Cash earnings 1 $1,355m $1,586m 17.0% Cash EPS 1 (cents) 11.7 14.0 19.7% Cash earnings 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). Strategic investment 1 $102m $230m 125% • Underlying EBITD AaL 1,2 growth of $219m or 5.5% • BAU capex includes increased mobile RAN investment offset by efficiencies and program timings skewed to 2H including higher spend in International • BAU capex FY26 guidance of $3.2b to $3.5b re - affirmed • Cash EBIT 1,2 growth of $304m or 14% • Net finance costs increased due to higher interest on lease liabilities and lower finance income. Interest on borrowings decreased, despite higher debt, due to lower average cost of debt • Tax expense higher on higher earnings and effective tax rate 28.4% (1H25 27.1%) Growth from strong cost and capital efficiency Copyright Telstra © 14 Product detail Growth across Mobiles, Fixed - C&SB, Infrastructure and Other • Mobile growth from service revenue partly offset by higher costs, including higher than usual customer remediation and compensation, sales (largely related to satellite), redundancy, and shared cost allocations • Fixed - C&SB growth from cost discipline and increased 5G fixed wireless • Fixed - Enterprise decline on continued DAC decline, partly offset by NAS growth as Enterprise reset continues • Fixed - Active Wholesale decline includes legacy access • International decline. Growth excluding significant one - offs in both periods • InfraCo Fixed growth from nbn, cost efficiencies and legacy asset sales • Amplitel growth from tenancies, rate and cost efficiency • Other growth due to FX, bond rate benefit, and absence of equity loss in PCP post Foxtel divestment. Health flat 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 3. Other includes miscellaneous, Telstra Energy, Telstra Health and internal items. 1H25 1H26 Change Change $m Mobile $2,602m $2,695m 3.6% Fixed - C&SB $183m $220m 20.2% Fixed - Enterprise $96m $87m - 9.4% Fixed - Active Wholesale $46m $32m - 30.4% International $373m $371m - 0.5% InfraCo Fixed $892m $919m 3.0% Amplitel $187m $197m 5.3% Other 3 - $131m - $49m 62.6% Underlying EBITDA 1 $4,248m $4,472m 5.3% Leases 1 $282m $287m 1.8% Underlying EBITDAaL 1,2 $3,966m $4,185m 5.5% 93 37 - 9 - 14 - 2 27 10 82 224 5 219 13 14 For personal use only
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7 Copyright Telstra © 13 1H25 1H26 Change Underlying EBITDAaL 1,2 $3,966m $4,185m 5.5% BAU capex 1 $1,631m $1,546m - 5.2% Spectrum amortisation $161m $161m - Cash EBIT 1,2 $2,174m $2,478m 14.0% Net finance costs $316m $332m 5.1% Tax expense $415m $479m 15.4% Non - controlling interests $88m $81m - 8.0% Cash earnings 1 $1,355m $1,586m 17.0% Cash EPS 1 (cents) 11.7 14.0 19.7% Cash earnings 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). Strategic investment 1 $102m $230m 125% • Underlying EBITD AaL 1,2 growth of $219m or 5.5% • BAU capex includes increased mobile RAN investment offset by efficiencies and program timings skewed to 2H including higher spend in International • BAU capex FY26 guidance of $3.2b to $3.5b re - affirmed • Cash EBIT 1,2 growth of $304m or 14% • Net finance costs increased due to higher interest on lease liabilities and lower finance income. Interest on borrowings decreased, despite higher debt, due to lower average cost of debt • Tax expense higher on higher earnings and effective tax rate 28.4% (1H25 27.1%) Growth from strong cost and capital efficiency Copyright Telstra © 14 Product detail Growth across Mobiles, Fixed - C&SB, Infrastructure and Other • Mobile growth from service revenue partly offset by higher costs, including higher than usual customer remediation and compensation, sales (largely related to satellite), redundancy, and shared cost allocations • Fixed - C&SB growth from cost discipline and increased 5G fixed wireless • Fixed - Enterprise decline on continued DAC decline, partly offset by NAS growth as Enterprise reset continues • Fixed - Active Wholesale decline includes legacy access • International decline. Growth excluding significant one - offs in both periods • InfraCo Fixed growth from nbn, cost efficiencies and legacy asset sales • Amplitel growth from tenancies, rate and cost efficiency • Other growth due to FX, bond rate benefit, and absence of equity loss in PCP post Foxtel divestment. Health flat 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 3. Other includes miscellaneous, Telstra Energy, Telstra Health and internal items. 1H25 1H26 Change Change $m Mobile $2,602m $2,695m 3.6% Fixed - C&SB $183m $220m 20.2% Fixed - Enterprise $96m $87m - 9.4% Fixed - Active Wholesale $46m $32m - 30.4% International $373m $371m - 0.5% InfraCo Fixed $892m $919m 3.0% Amplitel $187m $197m 5.3% Other 3 - $131m - $49m 62.6% Underlying EBITDA 1 $4,248m $4,472m 5.3% Leases 1 $282m $287m 1.8% Underlying EBITDAaL 1,2 $3,966m $4,185m 5.5% 93 37 - 9 - 14 - 2 27 10 82 224 5 219 13 14 For personal use only
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8 Copyright Telstra © 15 • Mobile service revenue 5.6% growth supported by handheld price changes and wholesale • Sustained average revenue per user (ARPU) growth across all categories, brands and segments: – Postpaid handheld 4.8 % growth – Prepaid handheld 14.7 % growth – Wholesale 7 % growth across Postpaid and Prepaid • Mobile handheld user +135k in 1H26 including +16k postpaid (retail), +21k prepaid (retail) and +98k wholesale Mobile Ongoing growth supported by leading mobile network and customer - focused propositions $5.8b 1H26 Income 1 4% 1H26 EBITDA 1 4% Mobile handheld users 2 k Mobile service revenue 1 $m +5.6% on PCP 1. 1H26 includes $28m income from MTData which was divested in January 2026. 2. Retail and wholesale. Retail includes postpaid mobile handheld services in operation (SIOs) and prepaid mobile handheld uniqu e u sers (UUs). Wholesale includes postpaid mobile handheld SIOs and prepaid mobile handheld UUs. ARPU - handheld $/ mth +5.1% on PCP $2.7b 4,225 4,283 4,460 1H25 2H25 1H26 43.26 43.93 45.47 1H25 2H25 1H26 8,990 8,886 8,902 3,089 3,021 3,042 2,487 2,625 2,723 1H25 2H25 1H26 Wholesale Prepaid (retail) Postpaid (retail) +135k Copyright Telstra © 16 Fixed - C&SB Strong track record of earnings growth with ARPU growth and continued cost discipline Bundles & data net adds SIOs k Bundles & data ARPU $/ mth +3.6% on PCP 86.61 87.48 89.71 1H25 2H25 1H26 • EBITDA growth from cost discipline and 5G fixed wireless growth partly offset by voice and legacy decline • Bundles & data ARPU growth of 3.6% reflects mix and price rises across Telstra branded and Belong • Ongoing strong cost management , including from modems • Internet Only plans launched late in half and new modem introduced • Bundles & data SIO decline continued, partly offset by growth in 5G fixed wireless and satellite internet net adds 1H26 EBITDA 1H26 Income $2.1b ▼ 2.5% $220m 20% - 17 - 15 - 11 - 39 - 47 - 47 - 56 - 62 - 58 1H25 2H25 1H26 Belong Branded 15 16 For personal use only
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8 Copyright Telstra © 15 • Mobile service revenue 5.6% growth supported by handheld price changes and wholesale • Sustained average revenue per user (ARPU) growth across all categories, brands and segments: – Postpaid handheld 4.8 % growth – Prepaid handheld 14.7 % growth – Wholesale 7 % growth across Postpaid and Prepaid • Mobile handheld user +135k in 1H26 including +16k postpaid (retail), +21k prepaid (retail) and +98k wholesale Mobile Ongoing growth supported by leading mobile network and customer - focused propositions $5.8b 1H26 Income 1 4% 1H26 EBITDA 1 4% Mobile handheld users 2 k Mobile service revenue 1 $m +5.6% on PCP 1. 1H26 includes $28m income from MTData which was divested in January 2026. 2. Retail and wholesale. Retail includes postpaid mobile handheld services in operation (SIOs) and prepaid mobile handheld uniqu e u sers (UUs). Wholesale includes postpaid mobile handheld SIOs and prepaid mobile handheld UUs. ARPU - handheld $/ mth +5.1% on PCP $2.7b 4,225 4,283 4,460 1H25 2H25 1H26 43.26 43.93 45.47 1H25 2H25 1H26 8,990 8,886 8,902 3,089 3,021 3,042 2,487 2,625 2,723 1H25 2H25 1H26 Wholesale Prepaid (retail) Postpaid (retail) +135k Copyright Telstra © 16 Fixed - C&SB Strong track record of earnings growth with ARPU growth and continued cost discipline Bundles & data net adds SIOs k Bundles & data ARPU $/ mth +3.6% on PCP 86.61 87.48 89.71 1H25 2H25 1H26 • EBITDA growth from cost discipline and 5G fixed wireless growth partly offset by voice and legacy decline • Bundles & data ARPU growth of 3.6% reflects mix and price rises across Telstra branded and Belong • Ongoing strong cost management , including from modems • Internet Only plans launched late in half and new modem introduced • Bundles & data SIO decline continued, partly offset by growth in 5G fixed wireless and satellite internet net adds 1H26 EBITDA 1H26 Income $2.1b ▼ 2.5% $220m 20% - 17 - 15 - 11 - 39 - 47 - 47 - 56 - 62 - 58 1H25 2H25 1H26 Belong Branded 15 16 For personal use only
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9 Copyright Telstra © 17 ▼ 5% Focusing on connectivity through simplification, portfolio management and c ost management 1H26 Income 1 $1.6b 1H26 EBITDA 1 $87m ▼ 9% Fixed - Enterprise Fixed - Enterprise income 1 $m - 4.9% on PCP Fixed - Enterprise EBITDA 1 $m - 9.4% on PCP 1,342 1,424 1,291 348 331 317 1,690 1,755 1,608 1H25 2H25 1H26 DAC NAS 54 99 62 42 44 25 96 143 87 1H25 2H25 1H26 DAC NAS • Fixed - Enterprise income decline with Data and Connectivity (DAC) and Network Applications & Services (NAS) including calling headwinds • DAC income declined as progress on product refresh and upselling to higher bandwidths was not enough to offset the impact of service rationalisation , and in period customer credits • DAC EBITDA declined as cost reduction was insufficient to offset revenue decline • NAS income decline from deliberate actions to focus on areas aligned to our Connected Future 30 strategy, and ongoing decline in calling products • NAS EBITDA growth underpinned by disciplined cost action that offset decline from calling and product exits 1. 1H26 NAS income includes $235m income relating to businesses for which divestments have been announced or completed, includin g t he Versent group, MTData , and Alliance Automation. Copyright Telstra © 18 • Wholesale & Enterprise : – EBITDA growth of 1 % in constant currency excluding significant one - offs. Growth driven by productivity – EBITDA growth of 4 % in $A excluding significant o ne - offs – Reported EBITDA growth of 20% in $A • Digicel Pacific: – EBITDA growth of 1.7% in constant currency and excluding prior year earn - out provision release . Growth driven by strong cost management – EBITDA decline of 0.7% in A$ excluding prior year earn - out provision release – Reported EBITDA decline of 22% in A$ International Digicel Pacific EBITDA A$m - 22% on PCP - 0.7% on PCP excl. earn - out 140 148 139 39 179 1H25 2H25 1H26 Earn-out provision release 1. Wholesale & Enterprise income excludes non - cash gain from Tianjin data centre lease (FY25/2H25 $43m). 2. Wholesale & Enterprise EBITDA excludes impairment of London Hosting Centre assets (FY25/2H25 $50m; 1H26 $23m). 1H26 Income 1 6% A$1.2b A$371m 1H26 EBITDA 1,2 0.5% Modest growth in Wholesale & Enterprise and Digicel Pacific from productivity, excluding one - offs 179 184 187 15 - 27 45 194 157 232 1H25 2H25 1H26 Significant one-offs Wholesale & Enterprise EBITDA 1,2 A$m +20% on PCP +4% on PCP excl. significant one - offs 17 18 For personal use only
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9 Copyright Telstra © 17 ▼ 5% Focusing on connectivity through simplification, portfolio management and c ost management 1H26 Income 1 $1.6b 1H26 EBITDA 1 $87m ▼ 9% Fixed - Enterprise Fixed - Enterprise income 1 $m - 4.9% on PCP Fixed - Enterprise EBITDA 1 $m - 9.4% on PCP 1,342 1,424 1,291 348 331 317 1,690 1,755 1,608 1H25 2H25 1H26 DAC NAS 54 99 62 42 44 25 96 143 87 1H25 2H25 1H26 DAC NAS • Fixed - Enterprise income decline with Data and Connectivity (DAC) and Network Applications & Services (NAS) including calling headwinds • DAC income declined as progress on product refresh and upselling to higher bandwidths was not enough to offset the impact of service rationalisation , and in period customer credits • DAC EBITDA declined as cost reduction was insufficient to offset revenue decline • NAS income decline from deliberate actions to focus on areas aligned to our Connected Future 30 strategy, and ongoing decline in calling products • NAS EBITDA growth underpinned by disciplined cost action that offset decline from calling and product exits 1. 1H26 NAS income includes $235m income relating to businesses for which divestments have been announced or completed, includin g t he Versent group, MTData , and Alliance Automation. Copyright Telstra © 18 • Wholesale & Enterprise : – EBITDA growth of 1 % in constant currency excluding significant one - offs. Growth driven by productivity – EBITDA growth of 4 % in $A excluding significant o ne - offs – Reported EBITDA growth of 20% in $A • Digicel Pacific: – EBITDA growth of 1.7% in constant currency and excluding prior year earn - out provision release . Growth driven by strong cost management – EBITDA decline of 0.7% in A$ excluding prior year earn - out provision release – Reported EBITDA decline of 22% in A$ International Digicel Pacific EBITDA A$m - 22% on PCP - 0.7% on PCP excl. earn - out 140 148 139 39 179 1H25 2H25 1H26 Earn-out provision release 1. Wholesale & Enterprise income excludes non - cash gain from Tianjin data centre lease (FY25/2H25 $43m). 2. Wholesale & Enterprise EBITDA excludes impairment of London Hosting Centre assets (FY25/2H25 $50m; 1H26 $23m). 1H26 Income 1 6% A$1.2b A$371m 1H26 EBITDA 1,2 0.5% Modest growth in Wholesale & Enterprise and Digicel Pacific from productivity, excluding one - offs 179 184 187 15 - 27 45 194 157 232 1H25 2H25 1H26 Significant one-offs Wholesale & Enterprise EBITDA 1,2 A$m +20% on PCP +4% on PCP excl. significant one - offs 17 18 For personal use only
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10 Copyright Telstra © 19 Growth from external demand for digital infrastructure InfraCo Fixed income $m - 0.4% on PCP nbn revenue $m +2.4% on PCP InfraCo Fixed EBITDAaL 1 $m +3. 4 % on PCP Amplitel EBITDAaL 1 $m +6.6% on PCP 547 555 560 1H25 2H25 1H26 875 903 905 1H25 2H25 1H26 1,376 1,334 1,370 1H25 2H25 1H26 152 159 162 1H25 2H25 1H26 Infrastructure • InfraCo Fixed income decline of 0.4% – Growth of 3.3% from nbn CPI indexation and “Other external” including ground stations – Offset by lower internal revenue including internal efficiencies and lower power usage • InfraCo Fixed EBITDAaL 1 growth of 3.4% including growth in nbn, copper recovery, commercial works, and cost - out, partly offset by reduced internal income • Amplitel EBITDAaL 1 growth of 6.6% • Strategic investments for Aura (Intercity Fibre) Network and Viasat projects – $1.6b investment FY23 - FY28; mid - teens IRR expected – Aura Network officially launched 1. Refer to definition in the Glossary. Copyright Telstra © 20 • Positive operating leverage 2,3 of +3.1pp • Cash EBIT costs lower on ongoing cost and capital discipline • Sales costs declined across Fixed - C&SB, International and NAS, partly offset by higher Mobile costs (including satellite) • Fixed costs decline largely due to lower labour following productivity initiatives which more than offset cost inflation. FX, commissions and power also supported reduction. These were partly offset by higher redundancy costs, higher than usual customer remediation and compensation costs, and reversal of Digicel Pacific earn - out provision in prior period • Leases increase due to network related leases partially offset by decline in retail stores • BAU capex reduction largely timing 1. Sales costs include expenses related to Asset Relocation and Commercial Works service contracts and exclude commissions . 2. Refer to definition in the Glossary. 3. Positive operating leverage defined as underlying income percentage growth greater than Cash EBIT cost percentage growth. Further detail on ‘Operating leverage’ slide in Appendix. 1H25 1H26 Change Change $m Sales costs 1 $4,006m $3,903m - 2.6% Fixed costs $3,555m $3,479m - 2.1% Underlying operating expenses $7,561m $7,382m - 2.4% Share of loss from associates $14m - $9m n/m Leases 2 $282m $287m 1.8% BAU capex 2 $1,631m $1,546m - 5.2% Spectrum amortisation $161m $161m - Cash EBIT costs $9,649m $9,367m - 2.9% - 103 - 76 - 179 - 23 5 - 85 - 282 Underlying income 2 $11,823m $11,845m 0.2% Operating leverage 2,3 +3.1pp 22 Strong cost management supports operating leverage 19 20 For personal use only
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10 Copyright Telstra © 19 Growth from external demand for digital infrastructure InfraCo Fixed income $m - 0.4% on PCP nbn revenue $m +2.4% on PCP InfraCo Fixed EBITDAaL 1 $m +3. 4 % on PCP Amplitel EBITDAaL 1 $m +6.6% on PCP 547 555 560 1H25 2H25 1H26 875 903 905 1H25 2H25 1H26 1,376 1,334 1,370 1H25 2H25 1H26 152 159 162 1H25 2H25 1H26 Infrastructure • InfraCo Fixed income decline of 0.4% – Growth of 3.3% from nbn CPI indexation and “Other external” including ground stations – Offset by lower internal revenue including internal efficiencies and lower power usage • InfraCo Fixed EBITDAaL 1 growth of 3.4% including growth in nbn, copper recovery, commercial works, and cost - out, partly offset by reduced internal income • Amplitel EBITDAaL 1 growth of 6.6% • Strategic investments for Aura (Intercity Fibre) Network and Viasat projects – $1.6b investment FY23 - FY28; mid - teens IRR expected – Aura Network officially launched 1. Refer to definition in the Glossary. Copyright Telstra © 20 • Positive operating leverage 2,3 of +3.1pp • Cash EBIT costs lower on ongoing cost and capital discipline • Sales costs declined across Fixed - C&SB, International and NAS, partly offset by higher Mobile costs (including satellite) • Fixed costs decline largely due to lower labour following productivity initiatives which more than offset cost inflation. FX, commissions and power also supported reduction. These were partly offset by higher redundancy costs, higher than usual customer remediation and compensation costs, and reversal of Digicel Pacific earn - out provision in prior period • Leases increase due to network related leases partially offset by decline in retail stores • BAU capex reduction largely timing 1. Sales costs include expenses related to Asset Relocation and Commercial Works service contracts and exclude commissions . 2. Refer to definition in the Glossary. 3. Positive operating leverage defined as underlying income percentage growth greater than Cash EBIT cost percentage growth. Further detail on ‘Operating leverage’ slide in Appendix. 1H25 1H26 Change Change $m Sales costs 1 $4,006m $3,903m - 2.6% Fixed costs $3,555m $3,479m - 2.1% Underlying operating expenses $7,561m $7,382m - 2.4% Share of loss from associates $14m - $9m n/m Leases 2 $282m $287m 1.8% BAU capex 2 $1,631m $1,546m - 5.2% Spectrum amortisation $161m $161m - Cash EBIT costs $9,649m $9,367m - 2.9% - 103 - 76 - 179 - 23 5 - 85 - 282 Underlying income 2 $11,823m $11,845m 0.2% Operating leverage 2,3 +3.1pp 22 Strong cost management supports operating leverage 19 20 For personal use only
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11 Copyright Telstra © 21 Strong capital position and liquidity • Net debt increase of $0.4b since FY25 with $0.6b share buy - back completed in 1H26 • Average cost of debt lower • Strong liquidity with $1.4b cash and $3.8b of unused committed facilities • Strong operating cash flow • Balance sheet strength and flexibility – debt servicing ratio within comfort zone • Credit ratings: S&P A - and Moody’s A2 • Interest rate hedging policy 60 - 80% of debt 1 - 3 years • Underlying ROIC 3 up to 8.9% on higher earnings 1. Debt servicing calculated as net debt over EBITDA. 2. As at period end, excludes leases and other financial liabilities. Average cost of debt measure is calculated on average tota l d ebt on issue over the reporting period. 3. Refer to definition in the Glossary. 1H25 FY25 1H26 Net debt $16.3b $16.4b $16.8b Debt servicing (comfort zone 1.75 - 2.25x) 1 1.9x 1.9x 1.9x Average cost of debt 2 5.0% 5.0% 4.8% Average debt maturity (years) 2 4.3 3.9 4.3 Average fixed rate debt as % of total debt 2 67% 60% 59% Ratios ROIC 3 8.0% 8.5% 8.8% Underlying ROIC 3 8.0% 8.5% 8.9% Copyright Telstra © 22 FY26 guidance 1. This guidance excludes material one - offs, such as mergers and acquisitions, disposals, impairments, spectrum, restructuring cost s and such other items as determined by the Board and management. 2. Underlying EBITDA after leases ( EBITDAaL ) excludes guidance adjustments. Depreciation of right - of - use assets (leases) was $600m in FY25. We expect leases to remain broadly the same in FY26. Underlying EBITDAaL guidance range tightened - previously $8.15b to $8.45b. 3. BAU capex is measured on an accrued basis and excludes spectrum, guidance adjustments, strategic investment, externally funde d c apex and capitalised leases. 4. Cash EBIT is Underlying EBITDAaL less BAU capex and spectrum amortisation . Spectrum amortisation was $321m in FY25. 5. Strategic investment capex is measured on an accrued basis and relates to the Aura (Intercity Fibre ) Network and Viasat projects. FY25 1H26 FY26 guidance 1 Underlying EBITDAaL 2 $ 8.02b $4.19b $8.2b to $8.4b Business - as - usual capex 3 $3.39b $1.55b $3.2b to $3.5b Cash EBIT 4 $4.31b $2.48b $4.55b to $4.75b Strategic investment 5 $0.33b $0.23b $0.3b to $0.5b Underlying EBITDAaL 2 guidance range tightened - previously $8.15b to $8.45b 21 22 For personal use only
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11 Copyright Telstra © 21 Strong capital position and liquidity • Net debt increase of $0.4b since FY25 with $0.6b share buy - back completed in 1H26 • Average cost of debt lower • Strong liquidity with $1.4b cash and $3.8b of unused committed facilities • Strong operating cash flow • Balance sheet strength and flexibility – debt servicing ratio within comfort zone • Credit ratings: S&P A - and Moody’s A2 • Interest rate hedging policy 60 - 80% of debt 1 - 3 years • Underlying ROIC 3 up to 8.9% on higher earnings 1. Debt servicing calculated as net debt over EBITDA. 2. As at period end, excludes leases and other financial liabilities. Average cost of debt measure is calculated on average tota l d ebt on issue over the reporting period. 3. Refer to definition in the Glossary. 1H25 FY25 1H26 Net debt $16.3b $16.4b $16.8b Debt servicing (comfort zone 1.75 - 2.25x) 1 1.9x 1.9x 1.9x Average cost of debt 2 5.0% 5.0% 4.8% Average debt maturity (years) 2 4.3 3.9 4.3 Average fixed rate debt as % of total debt 2 67% 60% 59% Ratios ROIC 3 8.0% 8.5% 8.8% Underlying ROIC 3 8.0% 8.5% 8.9% Copyright Telstra © 22 FY26 guidance 1. This guidance excludes material one - offs, such as mergers and acquisitions, disposals, impairments, spectrum, restructuring cost s and such other items as determined by the Board and management. 2. Underlying EBITDA after leases ( EBITDAaL ) excludes guidance adjustments. Depreciation of right - of - use assets (leases) was $600m in FY25. We expect leases to remain broadly the same in FY26. Underlying EBITDAaL guidance range tightened - previously $8.15b to $8.45b. 3. BAU capex is measured on an accrued basis and excludes spectrum, guidance adjustments, strategic investment, externally funde d c apex and capitalised leases. 4. Cash EBIT is Underlying EBITDAaL less BAU capex and spectrum amortisation . Spectrum amortisation was $321m in FY25. 5. Strategic investment capex is measured on an accrued basis and relates to the Aura (Intercity Fibre ) Network and Viasat projects. FY25 1H26 FY26 guidance 1 Underlying EBITDAaL 2 $ 8.02b $4.19b $8.2b to $8.4b Business - as - usual capex 3 $3.39b $1.55b $3.2b to $3.5b Cash EBIT 4 $4.31b $2.48b $4.55b to $4.75b Strategic investment 5 $0.33b $0.23b $0.3b to $0.5b Underlying EBITDAaL 2 guidance range tightened - previously $8.15b to $8.45b 21 22 For personal use only
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12 Copyright Telstra © 23 Growth in core business cashflow Portfolio & investment management Disciplined capital management 1 2 3 ▪ Cash earnings 1 +17% to $1.6b in 1H26 ▪ Positive operating leverage 1,2 of +3.1pp in 1H26 including cost and BAU capex discipline ▪ Commitment to A band credit rating ▪ Interim dividend in 1H26 10.5cps (90.5% franked) ▪ Buy - back $637m or 1.1% of shares on issue in 1H26 (2.6% in CY25). Increased current buy - back from up to $1b, to up to $1.25b ▪ Portfolio management including Alliance Automation, MTData completed. Versent group sale expected to close in 2H26, and International Voice sale expected to close by end of February ▪ Aura (Intercity Fibre ) Network – disciplined strategic investment Delivering growth and shareholder value creation All growth and percentage growth rates against prior corresponding period (PCP). 1. Refer to definition in the Glossary. 2. Positive operating leverage defined as underlying income percentage growth greater than Cash EBIT cost percentage growth. Further detail on ‘Operating leverage’ slide in Appendix. Copyright Telstra © 24 Thank you For more information refer to: www.telstra.com.au/aboutus/investors 23 24 For personal use only
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12 Copyright Telstra © 23 Growth in core business cashflow Portfolio & investment management Disciplined capital management 1 2 3 ▪ Cash earnings 1 +17% to $1.6b in 1H26 ▪ Positive operating leverage 1,2 of +3.1pp in 1H26 including cost and BAU capex discipline ▪ Commitment to A band credit rating ▪ Interim dividend in 1H26 10.5cps (90.5% franked) ▪ Buy - back $637m or 1.1% of shares on issue in 1H26 (2.6% in CY25). Increased current buy - back from up to $1b, to up to $1.25b ▪ Portfolio management including Alliance Automation, MTData completed. Versent group sale expected to close in 2H26, and International Voice sale expected to close by end of February ▪ Aura (Intercity Fibre ) Network – disciplined strategic investment Delivering growth and shareholder value creation All growth and percentage growth rates against prior corresponding period (PCP). 1. Refer to definition in the Glossary. 2. Positive operating leverage defined as underlying income percentage growth greater than Cash EBIT cost percentage growth. Further detail on ‘Operating leverage’ slide in Appendix. Copyright Telstra © 24 Thank you For more information refer to: www.telstra.com.au/aboutus/investors 23 24 For personal use only
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13 Copyright Telstra © 25 Appendix Copyright Telstra © 26 Size and scale 1 Customers and people 1 Network 1 >1m shareholders $46b market capitalisation Public ASX20 company FY24 $23b total income A - /A2 investment grade rating from S&P and Moody’s >1m shareholders $55b market capitalisation Public ASX20 company FY25 $24b total income A - /A2 investment grade rating from S&P and Moody’s Australia’s largest mobile network: 3 million square km / 99.7% population coverage 250,000km optical fibre network in Australia Own or operate 400,000km of subsea cable and 2,000 POPs 25.5m retail mobile services 2.7m wholesale mobile unique users 3.1m C&SB bundles and standalone data services 131k Enterprise data and connectivity services Employee engagement score of 81 – in top quartile globally Around 260 retail stores in Australia Presence in >30 countries and territories outside Australia Telstra at a glance 1. As at end of 1H26 unless otherwise noted. 25 26 For personal use only
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13 Copyright Telstra © 25 Appendix Copyright Telstra © 26 Size and scale 1 Customers and people 1 Network 1 >1m shareholders $46b market capitalisation Public ASX20 company FY24 $23b total income A - /A2 investment grade rating from S&P and Moody’s >1m shareholders $55b market capitalisation Public ASX20 company FY25 $24b total income A - /A2 investment grade rating from S&P and Moody’s Australia’s largest mobile network: 3 million square km / 99.7% population coverage 250,000km optical fibre network in Australia Own or operate 400,000km of subsea cable and 2,000 POPs 25.5m retail mobile services 2.7m wholesale mobile unique users 3.1m C&SB bundles and standalone data services 131k Enterprise data and connectivity services Employee engagement score of 81 – in top quartile globally Around 260 retail stores in Australia Presence in >30 countries and territories outside Australia Telstra at a glance 1. As at end of 1H26 unless otherwise noted. 25 26 For personal use only
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14 Copyright Telstra © 27 Sustainability 1. As at end of 1H26 unless otherwise noted. 2. Excludes Digicel Pacific. 3. Telstra led 11 site audits and JAC (Joint Alliance for Corporate Social Responsibility) peers led 42 audits. Enabled renewable energy generation equivalent to 121% of our consumption by the end of 2025 2 Reused or recycled 769k mobile phones, modems and other devices in FY25 Achieved 94% network waste recycling rate in FY25 2 Reduced absolute scope 1+2 emissions by 44% (towards a 70% target by 2030) and reduced absolute scope 3 emissions by 43% (towards a 50% target by 2030) by end of FY25 – both from FY19 baseline 2 CDP 2025 A - rating Women made up 40% of CEO Leadership Team and 37% of global workforce in FY25 53 sites across 21 suppliers independently audited in FY25 3 Reduced TIO referral complaints by more than 70% since FY21 (as at FY25) Launched our FY26 - 28 Reconciliation Action Plan (RAP) Partnered with LibrariesSA to expand digital literacy program across regional and remote South Australia Launched the 2025 Australian Digital Inclusion Index Helped an average >1m customers in vulnerable circumstances stay connected each year (FY22 to FY25) Creating a better digital world 1 Doing business responsibly Sustaining our planet Partnered with WESNET to deliver >50,000 phones to victim - survivors of DFSV since 2015 TIME Magazine World's Most Sustainable Companies 2025 Financial Times Asia - Pacific Climate Leaders 2025 Copyright Telstra © 28 Capital management framework Objectives Principles Maintain financial strength Fiscal discipline Maximise returns for shareholders Retain financial flexibility Committed to balance sheet settings consistent with an A band credit rating Disciplined BAU capex to support core business growth Sustainable and growing dividend (prefer fully - franked) Disciplined portfolio management and strategic investment Use balance sheet capac ity for additional shareholder returns 1 2 3 4 5 Copyright Telstra © 27 28 For personal use only
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14 Copyright Telstra © 27 Sustainability 1. As at end of 1H26 unless otherwise noted. 2. Excludes Digicel Pacific. 3. Telstra led 11 site audits and JAC (Joint Alliance for Corporate Social Responsibility) peers led 42 audits. Enabled renewable energy generation equivalent to 121% of our consumption by the end of 2025 2 Reused or recycled 769k mobile phones, modems and other devices in FY25 Achieved 94% network waste recycling rate in FY25 2 Reduced absolute scope 1+2 emissions by 44% (towards a 70% target by 2030) and reduced absolute scope 3 emissions by 43% (towards a 50% target by 2030) by end of FY25 – both from FY19 baseline 2 CDP 2025 A - rating Women made up 40% of CEO Leadership Team and 37% of global workforce in FY25 53 sites across 21 suppliers independently audited in FY25 3 Reduced TIO referral complaints by more than 70% since FY21 (as at FY25) Launched our FY26 - 28 Reconciliation Action Plan (RAP) Partnered with LibrariesSA to expand digital literacy program across regional and remote South Australia Launched the 2025 Australian Digital Inclusion Index Helped an average >1m customers in vulnerable circumstances stay connected each year (FY22 to FY25) Creating a better digital world 1 Doing business responsibly Sustaining our planet Partnered with WESNET to deliver >50,000 phones to victim - survivors of DFSV since 2015 TIME Magazine World's Most Sustainable Companies 2025 Financial Times Asia - Pacific Climate Leaders 2025 Copyright Telstra © 28 Capital management framework Objectives Principles Maintain financial strength Fiscal discipline Maximise returns for shareholders Retain financial flexibility Committed to balance sheet settings consistent with an A band credit rating Disciplined BAU capex to support core business growth Sustainable and growing dividend (prefer fully - franked) Disciplined portfolio management and strategic investment Use balance sheet capac ity for additional shareholder returns 1 2 3 4 5 Copyright Telstra © 27 28 For personal use only
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15 Copyright Telstra © 29 Note: Key targets are annual for FY26 to FY30 unless otherwise stated. See the Disclaimer and Glossary slides in relation to key targets and financial goals. (1) Target baselined from FY25; (2) Target baselined from FY19; (3) Positive operating leverage defined as underlying income per centage growth greater than Cash EBIT cost percentage growth. Further detail on ‘Operating leverage’ slide in Appendix. (4) Excludes Digicel Pacific. * Progress made but below target: this status is used when the FY30 outlook is not on track for d elivery but exceeds 50% of the target. Key targets Status Progress Status legend ● On track for delivery ● Progress made but below target* ● Not on track ● Early progress Connected Future 30 – progress Customer Engagement Grow strategic NPS by more than 50% by FY30 1 ● • Strategic NPS uplift of 5 points on PCP, reduced 1 point on FY25 Top 10 strongest brand in Australia ● • Top 10 strongest Brand in Australia. Ranked as 9th strongest brand with Brand Strength Index at 85.1 (January 2026) Network as a Product Lift Network Experience Index by 1 point every year ● • Network Experience Index Q2 FY26 uplift of 1.2 points on Q4 FY25 Transform our connectivity platform, with the majority of connectivity revenue enabled by NaaP by FY30 ● • Foundational work underway. Expecting significant connectivity revenue enabled by NaaP from FY27 Digital Infrastructure Sustained Cash EBIT growth ● • 1H26 Cash EBIT 9% growth on PCP across InfraCo Fixed, Amplitel, International Wholesale and Enterprise, and Fixed Active Wholesale Mid - teens IRR on strategic investments and partnerships ● • Mid - teens IRR expected on Aura Network and Viasat strategic investment People & culture Maintain top quartile Employee Engagement ● • Employee engagement score of 81 - improved 2 points on FY25 and in top quartile globally Technology leadership Achieve top quartile AI maturity by FY30 ● • AI Maturity ranked in 2nd quartile. Baseline score of 30 (July 2025) Sustainability 70% reduction in absolute scope 1+2 emissions by 2030 2 ● • Reduced absolute scope 1+2 emissions by 44% by end of FY25 from FY19 4 50% reduction in absolute scope 3 emissions by 2030 2 ● • Reduced absolute scope 3 emissions by 43% by end of FY25 from FY19 4 Financial discipline Cost discipline through positive operating leverage 3 ● • 1H26 operating leverage 3 of +3.1pp on PCP Financial goals Grow cash earnings by mid - single digit CAGR to FY30 ● • 1H26 cash earnings 17.0% growth on PCP 10% underlying ROIC by FY30 ● • 1H26 underlying ROIC 8.9% Disciplined capital and portfolio management ● • Portfolio management including Alliance Automation, MTData completed. Versent group sale expected to close in 2H26, and International Voice sale expected by end of February Copyright Telstra © 30 Strategic investment: Aura (Intercity Fibre) Network and Viasat Sydney to Melbourne coastal via Canberra routes now live More routes expected in FY26 including: • Sydney to Melbourne central via Canberra • Sydney to Perth Satellite ground stations/ teleport sites Data centres Express path Foundation path Path subject to demand Disclaimer: This map is an approximate illustration. We will optimise the project rollout by adjusting, and phasing routes and kilometres deployed. FY23 to FY28 $1.6b capex FY23 to FY25 $886m FY26 $300m - $500m guidance FY27/28 remainder Mid - teens Expected IRR ~9 year Cash payback expected 29 30 For personal use only
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15 Copyright Telstra © 29 Note: Key targets are annual for FY26 to FY30 unless otherwise stated. See the Disclaimer and Glossary slides in relation to key targets and financial goals. (1) Target baselined from FY25; (2) Target baselined from FY19; (3) Positive operating leverage defined as underlying income per centage growth greater than Cash EBIT cost percentage growth. Further detail on ‘Operating leverage’ slide in Appendix. (4) Excludes Digicel Pacific. * Progress made but below target: this status is used when the FY30 outlook is not on track for d elivery but exceeds 50% of the target. Key targets Status Progress Status legend ● On track for delivery ● Progress made but below target* ● Not on track ● Early progress Connected Future 30 – progress Customer Engagement Grow strategic NPS by more than 50% by FY30 1 ● • Strategic NPS uplift of 5 points on PCP, reduced 1 point on FY25 Top 10 strongest brand in Australia ● • Top 10 strongest Brand in Australia. Ranked as 9th strongest brand with Brand Strength Index at 85.1 (January 2026) Network as a Product Lift Network Experience Index by 1 point every year ● • Network Experience Index Q2 FY26 uplift of 1.2 points on Q4 FY25 Transform our connectivity platform, with the majority of connectivity revenue enabled by NaaP by FY30 ● • Foundational work underway. Expecting significant connectivity revenue enabled by NaaP from FY27 Digital Infrastructure Sustained Cash EBIT growth ● • 1H26 Cash EBIT 9% growth on PCP across InfraCo Fixed, Amplitel, International Wholesale and Enterprise, and Fixed Active Wholesale Mid - teens IRR on strategic investments and partnerships ● • Mid - teens IRR expected on Aura Network and Viasat strategic investment People & culture Maintain top quartile Employee Engagement ● • Employee engagement score of 81 - improved 2 points on FY25 and in top quartile globally Technology leadership Achieve top quartile AI maturity by FY30 ● • AI Maturity ranked in 2nd quartile. Baseline score of 30 (July 2025) Sustainability 70% reduction in absolute scope 1+2 emissions by 2030 2 ● • Reduced absolute scope 1+2 emissions by 44% by end of FY25 from FY19 4 50% reduction in absolute scope 3 emissions by 2030 2 ● • Reduced absolute scope 3 emissions by 43% by end of FY25 from FY19 4 Financial discipline Cost discipline through positive operating leverage 3 ● • 1H26 operating leverage 3 of +3.1pp on PCP Financial goals Grow cash earnings by mid - single digit CAGR to FY30 ● • 1H26 cash earnings 17.0% growth on PCP 10% underlying ROIC by FY30 ● • 1H26 underlying ROIC 8.9% Disciplined capital and portfolio management ● • Portfolio management including Alliance Automation, MTData completed. Versent group sale expected to close in 2H26, and International Voice sale expected by end of February Copyright Telstra © 30 Strategic investment: Aura (Intercity Fibre) Network and Viasat Sydney to Melbourne coastal via Canberra routes now live More routes expected in FY26 including: • Sydney to Melbourne central via Canberra • Sydney to Perth Satellite ground stations/ teleport sites Data centres Express path Foundation path Path subject to demand Disclaimer: This map is an approximate illustration. We will optimise the project rollout by adjusting, and phasing routes and kilometres deployed. FY23 to FY28 $1.6b capex FY23 to FY25 $886m FY26 $300m - $500m guidance FY27/28 remainder Mid - teens Expected IRR ~9 year Cash payback expected 29 30 For personal use only
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16 Copyright Telstra © 31 Detailed financials Copyright Telstra © 32 Reported Guidance adjustments 2 Underlying 1H25 2H25 FY25 1H26 1H25 2H25 FY25 1H26 1H25 2H25 FY25 1H26 % Change vs PCP Total income 1 $11,823m $11,787m $23,610m $11,845m - - $47m - $47m - $11,823m $11,740m $23,563m $11,845m 0.2% Operating expenses $7,561m $7,425m $14,986m $7,405m - - $61m - $61m - $23m $7,561m $7,364m $14,925m $7,382m - 2.4% Equity accounted - $14m - $3m - $17m $9m - - - - - $14m - $3m - $17m $9m n/m EBITDA $4,248m $4,359m $8,607m $4,449m - $14m $14m $23m $4,248m $4,373m $8,621m $4,472m 5.3% Leases 1 $282m $318m $600m $287m - - - - $282m $318m $600m $287m 1.8% EBITDAaL 1,2 $3,966m $4,041m $8,007m $4,162m - $14m $14m $23m $3,966m $4,055m $8,021m $4,185m 5.5% D&A ex leases $2,120m $1,971m $4,091m $2,146m - - - - $2,120m $1,971m $4,091m $2,146m 1.2% EBIT $1,846m $2,070m $3,916m $2,016m - $14m $14m $23m $1,846m $2,084m $3,930m $2,039m 10.5% Net finance costs $316m $323m $639m $332m - - - - $316m $323m $639m $332m 5.1% Tax expense $415m $519m $934m $479m - $10m $10m - $415m $529m $944m $479m 15.4% NPAT $1,115m $1,228m $2,343m $1,205m - $4m $4m $23m $1,115m $1,232m $2,347m $1,228m 10.1% Non - controlling interests $88m $83m $171m $81m - - $19m - $19m - $88m $64m $152m $81m - 8.0% Profit for TLS shareholders 1 $1,027m $1,145m $2,172m $1,124m - $23m $23m $23m $1,027m $1,168m $2,195m $1,147m 11.7% EPS (cents) 8.9 10.0 18.9 9.9 - 0.2 0.2 0 .2 8.9 10.2 19.1 10.1 13.5% Underlying earnings reconciliation to reported earnings 1,2 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 31 32 For personal use only
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16 Copyright Telstra © 31 Detailed financials Copyright Telstra © 32 Reported Guidance adjustments 2 Underlying 1H25 2H25 FY25 1H26 1H25 2H25 FY25 1H26 1H25 2H25 FY25 1H26 % Change vs PCP Total income 1 $11,823m $11,787m $23,610m $11,845m - - $47m - $47m - $11,823m $11,740m $23,563m $11,845m 0.2% Operating expenses $7,561m $7,425m $14,986m $7,405m - - $61m - $61m - $23m $7,561m $7,364m $14,925m $7,382m - 2.4% Equity accounted - $14m - $3m - $17m $9m - - - - - $14m - $3m - $17m $9m n/m EBITDA $4,248m $4,359m $8,607m $4,449m - $14m $14m $23m $4,248m $4,373m $8,621m $4,472m 5.3% Leases 1 $282m $318m $600m $287m - - - - $282m $318m $600m $287m 1.8% EBITDAaL 1,2 $3,966m $4,041m $8,007m $4,162m - $14m $14m $23m $3,966m $4,055m $8,021m $4,185m 5.5% D&A ex leases $2,120m $1,971m $4,091m $2,146m - - - - $2,120m $1,971m $4,091m $2,146m 1.2% EBIT $1,846m $2,070m $3,916m $2,016m - $14m $14m $23m $1,846m $2,084m $3,930m $2,039m 10.5% Net finance costs $316m $323m $639m $332m - - - - $316m $323m $639m $332m 5.1% Tax expense $415m $519m $934m $479m - $10m $10m - $415m $529m $944m $479m 15.4% NPAT $1,115m $1,228m $2,343m $1,205m - $4m $4m $23m $1,115m $1,232m $2,347m $1,228m 10.1% Non - controlling interests $88m $83m $171m $81m - - $19m - $19m - $88m $64m $152m $81m - 8.0% Profit for TLS shareholders 1 $1,027m $1,145m $2,172m $1,124m - $23m $23m $23m $1,027m $1,168m $2,195m $1,147m 11.7% EPS (cents) 8.9 10.0 18.9 9.9 - 0.2 0.2 0 .2 8.9 10.2 19.1 10.1 13.5% Underlying earnings reconciliation to reported earnings 1,2 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 31 32 For personal use only
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17 Copyright Telstra © 33 FY23 FY24 1H25 2H25 FY25 1H26 $ Change vs PCP % Change vs PCP Underlying EBITDA 1 $7,950m $8,243m $4,248m $4,373m $8,621m $4,472m $224m 5.3% Leases 1 $574m $619m $282m $318m $600m $287m $5m 1.8% Underlying EBITDAaL 1, 2 $7,376m $7,624m $3,966m $4,055m $8,021m $4,185m $219m 5.5% BAU capex 1 $3,297m $3,405m $1,631m $1,757m $3,388m $1,546m - $85m - 5.2% Spectrum amortisation $296m $281m $161m $160m $321m $161m - - Cash EBIT 1,2 $3,783m $3,938m $2,174m $2,138m $4,312m $2,478m $304m 14.0% Net finance costs $529m $584m $316m $323m $639m $332m $16m 5.1% Tax expense $805m $874m $415m $529m $944m $479m $64m 15.4% Non - controlling interests $123m $166m $88m $64m $152m $81m - $7m - 8.0% Cash earnings 1 $2,326m $2,314m $1,355m $1,222m $2,577m $1,586m $231m 17.0% Cash EPS 1 (cents) 20.2 20.0 11.7 10.7 22.4 14.0 2.3 19.7% Cash earnings 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). Strategic investment 1 $300m $261m $102m $223m $325m $230m $128m n/m 1 $300m $261m $102m $223m $325m - $64m - 24.5% Copyright Telstra © 34 FY23 FY24 1H25 2H25 FY25 1H26 $ Change vs PCP % Change vs PCP BAU capex 1 $3,297m $3,405m $1,631m $1,757m $3,388m $1,546m - $85m - 5.2% Leases 1 $574m $619m $282m $318m $600m $287m $5m 1.8% Spectrum amortisation $296m $281m $161m $160m $321m $161m - - BAU capex + leases + spectrum amortisation $4,167m $4,305m $2,074m $2,235m $4,309m $1,994m - $80m - 3.9% D&A ex leases and spectrum amortisation $3,600m $3,579m $1,959m $1,811m $3,770m $1,985m $26m 1.3% Leases 1 $574m $619m $282m $318m $600m $287m $5m 1.8% Spectrum amortisation $296m $281m $161m $160m $321m $161m - - D&A total $4,470m $4,479m $2,402m $2,289m $4,691m $2,433m $31m 1.3% Difference $303m $174m $328m $54m $382m $439m $111m n/m D&A vs cash earnings equivalent 1. Refer to definition in the Glossary. 1 $300m $261m $102m $223m $325m - $64m - 24.5% 33 34 For personal use only
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17 Copyright Telstra © 33 FY23 FY24 1H25 2H25 FY25 1H26 $ Change vs PCP % Change vs PCP Underlying EBITDA 1 $7,950m $8,243m $4,248m $4,373m $8,621m $4,472m $224m 5.3% Leases 1 $574m $619m $282m $318m $600m $287m $5m 1.8% Underlying EBITDAaL 1, 2 $7,376m $7,624m $3,966m $4,055m $8,021m $4,185m $219m 5.5% BAU capex 1 $3,297m $3,405m $1,631m $1,757m $3,388m $1,546m - $85m - 5.2% Spectrum amortisation $296m $281m $161m $160m $321m $161m - - Cash EBIT 1,2 $3,783m $3,938m $2,174m $2,138m $4,312m $2,478m $304m 14.0% Net finance costs $529m $584m $316m $323m $639m $332m $16m 5.1% Tax expense $805m $874m $415m $529m $944m $479m $64m 15.4% Non - controlling interests $123m $166m $88m $64m $152m $81m - $7m - 8.0% Cash earnings 1 $2,326m $2,314m $1,355m $1,222m $2,577m $1,586m $231m 17.0% Cash EPS 1 (cents) 20.2 20.0 11.7 10.7 22.4 14.0 2.3 19.7% Cash earnings 1. Refer to definition in the Glossary. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). Strategic investment 1 $300m $261m $102m $223m $325m $230m $128m n/m 1 $300m $261m $102m $223m $325m - $64m - 24.5% Copyright Telstra © 34 FY23 FY24 1H25 2H25 FY25 1H26 $ Change vs PCP % Change vs PCP BAU capex 1 $3,297m $3,405m $1,631m $1,757m $3,388m $1,546m - $85m - 5.2% Leases 1 $574m $619m $282m $318m $600m $287m $5m 1.8% Spectrum amortisation $296m $281m $161m $160m $321m $161m - - BAU capex + leases + spectrum amortisation $4,167m $4,305m $2,074m $2,235m $4,309m $1,994m - $80m - 3.9% D&A ex leases and spectrum amortisation $3,600m $3,579m $1,959m $1,811m $3,770m $1,985m $26m 1.3% Leases 1 $574m $619m $282m $318m $600m $287m $5m 1.8% Spectrum amortisation $296m $281m $161m $160m $321m $161m - - D&A total $4,470m $4,479m $2,402m $2,289m $4,691m $2,433m $31m 1.3% Difference $303m $174m $328m $54m $382m $439m $111m n/m D&A vs cash earnings equivalent 1. Refer to definition in the Glossary. 1 $300m $261m $102m $223m $325m - $64m - 24.5% 33 34 For personal use only
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18 Copyright Telstra © 35 Cashflow supporting investment, dividends and buy - backs • 1H26 Working capital and other 2 reflects normal seasonality. Growth due to prior year outflow from FY24 restructuring of ~$300m and timing of investing cashflow • Income taxes paid in line with profit before tax growth • Strategic investment growth related to Aura (Intercity Fibre) Network construction • 1H26 M&A outflow relates to exit of the London Hosting Centre • Expected future one - off cashflows include: • ~$250m working capital outflow in 2H26 associated with nbn true - up • Estimated proceeds from asset sales in 2H26 of announced transactions for MTData and Versent group of ~$200m • Spectrum re - licencing payments 3 1. Refer to definition in the Glossary. 2. Working capital and other includes (1) working capital movement from operating activities, investing cash flows (other than c ape x and M&A / asset sales), (2) other non - cash EBITDA items, (3) cash outlay for capital expenditure excluding spectrum and strategic investment less BAU capex, (4) principal lease payments less lease amortisation, an d (5) share for employee share plans and all other net cash used in financing activities. 3. While still subject to change, consultation and internal valuation assessments, a process we are engaged in, ACMA’s updated p rel iminary views (Dec 2025) on the pricing of the Expiring Spectrum Licences , taking into account a population of 27.9m, could result in estimated potential cash outflow for spectrum re - licencing of $843m in FY28, $1,281m in FY30, $385m in FY31 and $239m in FY33, assuming full prices are to be paid upfront, and one month before licence expiry and renewal. Cash outflow could change with population, CPI, further pricing updates from ACMA and Telstra renewal dec is ions. 1H25 2H25 FY25 1H26 Change Cash EBIT 1 $2,174m $2,138m $4,312m $2,478m 14.0% Working capital and other 2 - $947m $840m - $107m - $422m 55.4% Add back: Spectrum amortisation $161m $160m $321m $161m - Income taxes paid - $268m - $712m - $980m - $303m - 13.1% Finance costs paid - $438m - $433m - $871m - $424m 3.2% Distributions to non - controlling interests - $82m - $98m - $180m - $86m - 4.9% Underlying cashflow before dividends, buy - backs and net borrowings $600m $1,895m $2,495m $1,404m 134.0% Strategic investment 1 - $102m - $223m - $325m - $230m n/m Payments for spectrum - $56m - $1m - $57m - $58m - 3.6% M&A - $25m $134m $109m - $88m n/m Cashflow before dividends, buy - backs and net borrowings $417m $1,805m $2,222m $1,028m 146.5% Dividends paid to equity holders - $1,040m - $1,097m - $2,137m - $1,081m - 3.9% Share buy - back - - $751m - $751m - $637m n/m Net borrowings $564m $61m $625m $1,135m 101.2% Net change in cash - $59m $18m - $41m $445m n/m Copyright Telstra © 36 FY24 1H25 2H25 FY25 1H26 % Change vs PCP Earnings per share (EPS) Basic EPS (cents) 14.1 8.9 10.0 18.9 9.9 11.2% Underlying EPS 1 (cents) 18.5 8.9 10.2 19.1 10.1 13.5% Cash EPS 1 (cents) 20.0 11.7 10.7 22.4 14.0 19.7 % Dividends Ordinary dividend - franked (cents per share) 18.0 9.5 9.5 19.0 9.5 - Ordinary dividend - unfranked (cents per share) - - - - 1.0 n/m Ordinary dividend total (cents per share) 18.0 9.5 9.5 19.0 10.5 10.5% 2 Franked as % of total 100% 100% 100% 100% 90.48% - 9.52pp Payout ratios Dividends as % of EPS 128% 107% 95% 101% 106% - 1pp Dividends as % of Underlying EPS 97% 107% 93% 99% 104% - 3 pp Dividends as % of Cash EPS 90% 81% 89% 85% 75% - 6pp Share buy - back Value of shares purchased - - $750m $750m $637m n/m Number of shares purchased - - 169m 169m 130m n/m Average price paid - - $4.43 $4.43 $4.90 n/m Dividends and buy - backs 1. Refer to definition in the Glossary. 2. Interim dividend growth of 10.5% on a cash basis, from 1H25 9.5 cents per share (fully franked) to 1H26 10.5 cents per share (90 .5% franked). 35 36 For personal use only
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18 Copyright Telstra © 35 Cashflow supporting investment, dividends and buy - backs • 1H26 Working capital and other 2 reflects normal seasonality. Growth due to prior year outflow from FY24 restructuring of ~$300m and timing of investing cashflow • Income taxes paid in line with profit before tax growth • Strategic investment growth related to Aura (Intercity Fibre) Network construction • 1H26 M&A outflow relates to exit of the London Hosting Centre • Expected future one - off cashflows include: • ~$250m working capital outflow in 2H26 associated with nbn true - up • Estimated proceeds from asset sales in 2H26 of announced transactions for MTData and Versent group of ~$200m • Spectrum re - licencing payments 3 1. Refer to definition in the Glossary. 2. Working capital and other includes (1) working capital movement from operating activities, investing cash flows (other than c ape x and M&A / asset sales), (2) other non - cash EBITDA items, (3) cash outlay for capital expenditure excluding spectrum and strategic investment less BAU capex, (4) principal lease payments less lease amortisation, an d (5) share for employee share plans and all other net cash used in financing activities. 3. While still subject to change, consultation and internal valuation assessments, a process we are engaged in, ACMA’s updated p rel iminary views (Dec 2025) on the pricing of the Expiring Spectrum Licences , taking into account a population of 27.9m, could result in estimated potential cash outflow for spectrum re - licencing of $843m in FY28, $1,281m in FY30, $385m in FY31 and $239m in FY33, assuming full prices are to be paid upfront, and one month before licence expiry and renewal. Cash outflow could change with population, CPI, further pricing updates from ACMA and Telstra renewal dec is ions. 1H25 2H25 FY25 1H26 Change Cash EBIT 1 $2,174m $2,138m $4,312m $2,478m 14.0% Working capital and other 2 - $947m $840m - $107m - $422m 55.4% Add back: Spectrum amortisation $161m $160m $321m $161m - Income taxes paid - $268m - $712m - $980m - $303m - 13.1% Finance costs paid - $438m - $433m - $871m - $424m 3.2% Distributions to non - controlling interests - $82m - $98m - $180m - $86m - 4.9% Underlying cashflow before dividends, buy - backs and net borrowings $600m $1,895m $2,495m $1,404m 134.0% Strategic investment 1 - $102m - $223m - $325m - $230m n/m Payments for spectrum - $56m - $1m - $57m - $58m - 3.6% M&A - $25m $134m $109m - $88m n/m Cashflow before dividends, buy - backs and net borrowings $417m $1,805m $2,222m $1,028m 146.5% Dividends paid to equity holders - $1,040m - $1,097m - $2,137m - $1,081m - 3.9% Share buy - back - - $751m - $751m - $637m n/m Net borrowings $564m $61m $625m $1,135m 101.2% Net change in cash - $59m $18m - $41m $445m n/m Copyright Telstra © 36 FY24 1H25 2H25 FY25 1H26 % Change vs PCP Earnings per share (EPS) Basic EPS (cents) 14.1 8.9 10.0 18.9 9.9 11.2% Underlying EPS 1 (cents) 18.5 8.9 10.2 19.1 10.1 13.5% Cash EPS 1 (cents) 20.0 11.7 10.7 22.4 14.0 19.7 % Dividends Ordinary dividend - franked (cents per share) 18.0 9.5 9.5 19.0 9.5 - Ordinary dividend - unfranked (cents per share) - - - - 1.0 n/m Ordinary dividend total (cents per share) 18.0 9.5 9.5 19.0 10.5 10.5% 2 Franked as % of total 100% 100% 100% 100% 90.48% - 9.52pp Payout ratios Dividends as % of EPS 128% 107% 95% 101% 106% - 1pp Dividends as % of Underlying EPS 97% 107% 93% 99% 104% - 3 pp Dividends as % of Cash EPS 90% 81% 89% 85% 75% - 6pp Share buy - back Value of shares purchased - - $750m $750m $637m n/m Number of shares purchased - - 169m 169m 130m n/m Average price paid - - $4.43 $4.43 $4.90 n/m Dividends and buy - backs 1. Refer to definition in the Glossary. 2. Interim dividend growth of 10.5% on a cash basis, from 1H25 9.5 cents per share (fully franked) to 1H26 10.5 cents per share (90 .5% franked). 35 36 For personal use only
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19 Copyright Telstra © 37 FY23 FY24 1H25 2H25 FY25 1H26 Underlying income 1 $23,173m $23,401m $11,823m $11,740m $23,563m $11,845m Underlying operating expenses $15,196m $15,142m $7,561m $7,364m $14,925m $7,382m Share of loss/(gain) from associates $27m $16m $14m $3m $17m - $9m Leases 1 $574m $619m $282m $318m $600m $287m BAU capex 1 $3,297m $3,405m $1,631m $1,757m $3,388m $1,546m Spectrum amortisation $296m $281m $161m $160m $321m $161m Cash EBIT costs $19,390m $19,463m $9,649m $9,602m $19,251m $9,367m Underlying income growth 7.4% 1.0% 1.0% 0.4% 0.7% 0.2% Cash EBIT cost growth 6.5% 0.4% - 2.8% 0.6% - 1.1% - 2.9% Operating leverage 1,2 +0.9pp +0.6pp +3.8pp - 0.3pp +1.8pp +3.1pp Operating leverage 1. Refer to definition in the Glossary. 2. Positive operating leverage defined as underlying income percentage growth greater than Cash EBIT cost percentage growth. Copyright Telstra © 38 ROIC 1 6.8% 8.0% 8.8% 8.5% 8.8% 0.8pp Return on Invested Capital (ROIC) 1. Refer to definition in the Glossary. FY24 1H25 2H25 FY25 1H26 % Change vs PCP Underlying NPAT 1 $2,306m $1,115m $1,232m $2,347m $1,228m 10.1% Add back: Net finance costs (less tax shield at 30%) $409m $221m $226m $447m $232m 5.1% Underlying NOPAT 1 $2,715m $1,336m $1,458m $2,794m $1,460m 9.3% Underlying NOPAT annualised [A] $2,715m $2,672m $2,916m $2,794m $2,920m 9.3% Average Net Debt plus Equity [B] $32,669m $33,321m $33,150m $32,933m $32,650m - 2.0% Underlying ROIC 1 [A / B] 8.3% 8.0% 8.8% 8.5% 8.9% 0.9pp 37 38 For personal use only
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19 Copyright Telstra © 37 FY23 FY24 1H25 2H25 FY25 1H26 Underlying income 1 $23,173m $23,401m $11,823m $11,740m $23,563m $11,845m Underlying operating expenses $15,196m $15,142m $7,561m $7,364m $14,925m $7,382m Share of loss/(gain) from associates $27m $16m $14m $3m $17m - $9m Leases 1 $574m $619m $282m $318m $600m $287m BAU capex 1 $3,297m $3,405m $1,631m $1,757m $3,388m $1,546m Spectrum amortisation $296m $281m $161m $160m $321m $161m Cash EBIT costs $19,390m $19,463m $9,649m $9,602m $19,251m $9,367m Underlying income growth 7.4% 1.0% 1.0% 0.4% 0.7% 0.2% Cash EBIT cost growth 6.5% 0.4% - 2.8% 0.6% - 1.1% - 2.9% Operating leverage 1,2 +0.9pp +0.6pp +3.8pp - 0.3pp +1.8pp +3.1pp Operating leverage 1. Refer to definition in the Glossary. 2. Positive operating leverage defined as underlying income percentage growth greater than Cash EBIT cost percentage growth. Copyright Telstra © 38 ROIC 1 6.8% 8.0% 8.8% 8.5% 8.8% 0.8pp Return on Invested Capital (ROIC) 1. Refer to definition in the Glossary. FY24 1H25 2H25 FY25 1H26 % Change vs PCP Underlying NPAT 1 $2,306m $1,115m $1,232m $2,347m $1,228m 10.1% Add back: Net finance costs (less tax shield at 30%) $409m $221m $226m $447m $232m 5.1% Underlying NOPAT 1 $2,715m $1,336m $1,458m $2,794m $1,460m 9.3% Underlying NOPAT annualised [A] $2,715m $2,672m $2,916m $2,794m $2,920m 9.3% Average Net Debt plus Equity [B] $32,669m $33,321m $33,150m $32,933m $32,650m - 2.0% Underlying ROIC 1 [A / B] 8.3% 8.0% 8.8% 8.5% 8.9% 0.9pp 37 38 For personal use only
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20 Copyright Telstra © 39 - 0.2 0.4 0.6 0.8 1.0 1.2 1.4 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 Bond debt maturity profile 1 Average bond debt maturity 5.3 years Capital management Diversified sources of debt 1,2 $AUD billions New bond issuances in 1H26 EUR Bonds 44% AUD Bonds 21% US Bonds 5% CHF Bonds 3% Commercial Paper 17% Bank Loans 10% EUR Bonds AUD Bonds US Bonds CHF Bonds Commercial Paper Bank Loans 10% Bank Loans 90 % Debt Capital Markets 1. As at 31 December 2025. Based on public bond contractual principal values (excludes Digicel Pacific and non - treasury/subsidiary debt). 2. Includes commercial paper and bank loans. Copyright Telstra © 40 FY24 1H25 2H25 FY25 1H26 $ Change vs PCP % Change vs PCP Mobile $10,722m $5,567m $5,448m $11,015m $5,769m $202m 3.6% Fixed - C&SB $4,355m $2,174m $2,125m $4,299m $2,120m - $54m - 2.5% Fixed - Enterprise 2 $3,456m $1,690m $1,755m $3,445m $1,608m - $82m - 4.9% Fixed - Active Wholesale $366m $179m $170m $349m $166m - $13m - 7.3% International 3 $2,578m $1,257m $1,287m $2,544m $1,181m - $76m - 6.0% InfraCo Fixed $2,746m $1,376m $1,334m $2,710m $1,370m - $6m - 0.4% Amplitel $453m $235m $235m $470m $242m $7m 3.0% Other 4 $1,262m $590m $565m $1,155m $594m $4m 0.7% Elimination - $2,537m - $1,245m - $1,179m - $2,424m - $1,205m $40m 3.2% Underlying income 6 $23,401m $11,823m $11,740m $23,563m $11,845m $22m 0.2% Guidance adjustments 5 $81m - $47m $47m - - n/m Total income 6 $23,482m $11,823m $11,787m $23,610m $11,845m $22m 0.2% Product performance | Income 1 1. Refer to Note 2.1.2 Segment results Table A in the Half - Year Financial Report for schedule of product income. 2. FY24 Fixed - Enterprise excludes $81m from the acquisition of Versent , included in Guidance adjustments. 3. FY25/2H25 International excludes $43m income for non - cash gain from Tianjin data centre lease, included in Guidance adjustments. 4. Other includes miscellaneous, Telstra Energy, Telstra Health and internal. FY25/2H25 Other underlying income excludes $4m, in clu ded in Guidance adjustments. 5. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 6. Refer to definition in the Glossary. 39 40 For personal use only
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20 Copyright Telstra © 39 - 0.2 0.4 0.6 0.8 1.0 1.2 1.4 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 Bond debt maturity profile 1 Average bond debt maturity 5.3 years Capital management Diversified sources of debt 1,2 $AUD billions New bond issuances in 1H26 EUR Bonds 44% AUD Bonds 21% US Bonds 5% CHF Bonds 3% Commercial Paper 17% Bank Loans 10% EUR Bonds AUD Bonds US Bonds CHF Bonds Commercial Paper Bank Loans 10% Bank Loans 90 % Debt Capital Markets 1. As at 31 December 2025. Based on public bond contractual principal values (excludes Digicel Pacific and non - treasury/subsidiary debt). 2. Includes commercial paper and bank loans. Copyright Telstra © 40 FY24 1H25 2H25 FY25 1H26 $ Change vs PCP % Change vs PCP Mobile $10,722m $5,567m $5,448m $11,015m $5,769m $202m 3.6% Fixed - C&SB $4,355m $2,174m $2,125m $4,299m $2,120m - $54m - 2.5% Fixed - Enterprise 2 $3,456m $1,690m $1,755m $3,445m $1,608m - $82m - 4.9% Fixed - Active Wholesale $366m $179m $170m $349m $166m - $13m - 7.3% International 3 $2,578m $1,257m $1,287m $2,544m $1,181m - $76m - 6.0% InfraCo Fixed $2,746m $1,376m $1,334m $2,710m $1,370m - $6m - 0.4% Amplitel $453m $235m $235m $470m $242m $7m 3.0% Other 4 $1,262m $590m $565m $1,155m $594m $4m 0.7% Elimination - $2,537m - $1,245m - $1,179m - $2,424m - $1,205m $40m 3.2% Underlying income 6 $23,401m $11,823m $11,740m $23,563m $11,845m $22m 0.2% Guidance adjustments 5 $81m - $47m $47m - - n/m Total income 6 $23,482m $11,823m $11,787m $23,610m $11,845m $22m 0.2% Product performance | Income 1 1. Refer to Note 2.1.2 Segment results Table A in the Half - Year Financial Report for schedule of product income. 2. FY24 Fixed - Enterprise excludes $81m from the acquisition of Versent , included in Guidance adjustments. 3. FY25/2H25 International excludes $43m income for non - cash gain from Tianjin data centre lease, included in Guidance adjustments. 4. Other includes miscellaneous, Telstra Energy, Telstra Health and internal. FY25/2H25 Other underlying income excludes $4m, in clu ded in Guidance adjustments. 5. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 6. Refer to definition in the Glossary. 39 40 For personal use only
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21 Copyright Telstra © 41 FY24 1H25 2H25 FY25 1H26 $ Change vs PCP % Change vs PCP Mobile $5,696m $2,965m $2,789m $5,754m $3,074m $109m 3.7% Fixed - C&SB $4,101m $1,991m $1,945m $3,936m $1,900m - $91m - 4.6% Fixed - Enterprise $3,320m $1,594m $1,612m $3,206m $1,521m - $73m - 4.6% Fixed - Active Wholesale $272m $133m $134m $267m $134m $1m 0.8% International $1,809m $884m $981m $1,865m $821m - $63m - 7.1% InfraCo Fixed $987m $484m $413m $897m $451m - $33m - 6.8% Amplitel $84m $48m $40m $88m $45m - $3m - 6.3% Other 1 $1,410m $707m $629m $1,336m $641m - $66m - 9.3% Elimination - $2,537m - $1,245m - $1,179m - $2,424m - $1,205m $40m 3.2% Underlying operating expenses 3 $15,142m $7,561m $7,364m $14,925m $7,382m - $179m - 2.4% Restructuring $247m - - - - - - Other guidance and other adjustments 2 $549m - $61m $61m $23m $23m n /m Operating expenses $15,938m $7,561m $7,425m $14,986m $7,405m - $156m - 2.1% Product performance | Operating expenses 1. Other includes miscellaneous, Telstra Energy, Telstra Health and internal. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 3. Refer to definition in the Glossary. Copyright Telstra © 42 FY24 1H25 2H25 FY25 1H26 $ Change vs PCP % Change vs PCP Mobile $5,026m $2,602m $2,659m $5,261m $2,695m $93m 3.6% Fixed - C&SB $254m $183m $180m $363m $220m $37m 20.2% Fixed - Enterprise $136m $96m $143m $239m $87m - $9m - 9.4% Fixed - Active Wholesale $94m $46m $36m $82m $32m - $14m - 30.4% International $774m $373m $305m $678m $371m - $2m - 0.5% InfraCo Fixed $1,759m $892m $921m $1,813m $919m $27m 3.0% Amplitel $369m $187m $195m $382m $197m $10m 5.3% Other 1 - $169m - $131m - $66m - $197m - $49m $82m - 62.6% Underlying EBITDA 2 $8,243m $4,248m $4,373m $8,621m $4,472m $224m 5.3% Leases 2 $619m $282m $318m $600m $287m $5m 1.8% Underlying EBITDAaL 2,3 $7,624m $3,966m $4,055m $8,021m $4,185m $219m 5.5% Restructuring - $247m - - - - Other guidance and other adjustments 3 - $468m - - $14m - $14m - $23m - $23m n/m EBITDAaL 2 $6,909m $3,966m $4,041m $8,007m $4,162m $196m 4.9% Product performance | EBITDA and EBITDAaL 1. Other includes miscellaneous, Telstra Energy, Telstra Health and internal. 2. Refer to definition in the Glossary. 3. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 41 42 For personal use only
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21 Copyright Telstra © 41 FY24 1H25 2H25 FY25 1H26 $ Change vs PCP % Change vs PCP Mobile $5,696m $2,965m $2,789m $5,754m $3,074m $109m 3.7% Fixed - C&SB $4,101m $1,991m $1,945m $3,936m $1,900m - $91m - 4.6% Fixed - Enterprise $3,320m $1,594m $1,612m $3,206m $1,521m - $73m - 4.6% Fixed - Active Wholesale $272m $133m $134m $267m $134m $1m 0.8% International $1,809m $884m $981m $1,865m $821m - $63m - 7.1% InfraCo Fixed $987m $484m $413m $897m $451m - $33m - 6.8% Amplitel $84m $48m $40m $88m $45m - $3m - 6.3% Other 1 $1,410m $707m $629m $1,336m $641m - $66m - 9.3% Elimination - $2,537m - $1,245m - $1,179m - $2,424m - $1,205m $40m 3.2% Underlying operating expenses 3 $15,142m $7,561m $7,364m $14,925m $7,382m - $179m - 2.4% Restructuring $247m - - - - - - Other guidance and other adjustments 2 $549m - $61m $61m $23m $23m n /m Operating expenses $15,938m $7,561m $7,425m $14,986m $7,405m - $156m - 2.1% Product performance | Operating expenses 1. Other includes miscellaneous, Telstra Energy, Telstra Health and internal. 2. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 3. Refer to definition in the Glossary. Copyright Telstra © 42 FY24 1H25 2H25 FY25 1H26 $ Change vs PCP % Change vs PCP Mobile $5,026m $2,602m $2,659m $5,261m $2,695m $93m 3.6% Fixed - C&SB $254m $183m $180m $363m $220m $37m 20.2% Fixed - Enterprise $136m $96m $143m $239m $87m - $9m - 9.4% Fixed - Active Wholesale $94m $46m $36m $82m $32m - $14m - 30.4% International $774m $373m $305m $678m $371m - $2m - 0.5% InfraCo Fixed $1,759m $892m $921m $1,813m $919m $27m 3.0% Amplitel $369m $187m $195m $382m $197m $10m 5.3% Other 1 - $169m - $131m - $66m - $197m - $49m $82m - 62.6% Underlying EBITDA 2 $8,243m $4,248m $4,373m $8,621m $4,472m $224m 5.3% Leases 2 $619m $282m $318m $600m $287m $5m 1.8% Underlying EBITDAaL 2,3 $7,624m $3,966m $4,055m $8,021m $4,185m $219m 5.5% Restructuring - $247m - - - - Other guidance and other adjustments 3 - $468m - - $14m - $14m - $23m - $23m n/m EBITDAaL 2 $6,909m $3,966m $4,041m $8,007m $4,162m $196m 4.9% Product performance | EBITDA and EBITDAaL 1. Other includes miscellaneous, Telstra Energy, Telstra Health and internal. 2. Refer to definition in the Glossary. 3. Refer to Half - year results and operations review - guidance vs reported results reconciliation which details the adjustments mad e for the current and comparative period to reflect performance on the basis on which we provided guidance to the market for FY26 (set out in our ASX announcement titled “Financial results for the half - year e nded 31 December 2025” lodged with the ASX on 19 February 2026). 41 42 For personal use only
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22 Copyright Telstra © 43 1H25 2H25 FY25 1H26 Change vs PCP Mobile income $5,567m $5,448m $11,015m $5,769m 3.6% Mobile services 1 $4,225m $4,283m $8,508m $4,460m 5.6% Postpaid handheld $2,884m $2,909m $5,793m $3,000m 4.0% Prepaid handheld $630m $655m $1,285m $684m 8.6% Mobile broadband $304m $291m $595m $310m 2.0% Internet of Things (IoT) 2 $145m $148m $293m $157m 8.3% Wholesale $251m $271m $522m $298m 18.7% Hardware, intercon. & other 3 $1,342m $1,165m $2,507m $1,309m - 2.5% EBITDA M argin $2,602m 47% $2,659m 49% $5,261m 48% $2,695m 47% 3.6% - Total retail mobile SIOs 24.6m 24.9m 24.9m 25.5m 3.8% Postpaid handheld mobile SIOs 8,990k 8,886k 8,886k 8,902k - 1.0% Postpaid handheld ARPU/ mth $53.62 $54.23 $54.15 $56.22 4.8% Prepaid handheld ARPU/ mth $28.15 $30.24 $29.29 $32.29 14.7% Postpaid handheld churn 13.3% 14.0% 13.3% 13.2% - 0.1pp Product performance | Mobile 1. Mobile services income also includes other income of $11m in 1H26 (1H25 $11m, 2H25 $9m). International r oaming income of $130m in 1H26 (1H25 $132m, 2H25 $127m). 2. 1H26 includes $28m income from MTData which was divested in January 2026. 3. Other includes media and Telstra Plus loyalty. • Mobile services income growth across all products • Postpaid handheld revenue growth of 4.0% driven by ARPU growth of 4.8% following price rises • Prepaid handheld revenue growth of 8.6% . Prepaid handheld ARPU grew 14.7% . Although significantly lower on a unique user basis, growth is due to the flow through of October 2024 price changes • Mobile broadband revenue growth despite SIO decline driven by improved ARPU performance following Consumer and Small Business price rises • IoT revenue growth of 8.3% driven by higher SIO growth and usage (data consumption) across connected cars • Wholesale revenue growth of 18.7% driven by ARPU and SIO growth in Postpaid and Prepaid, and increase in bulk messaging volumes • Hardware revenue decline across handheld products due to lower volumes • EBITDA growth from service revenue partly offset by higher costs, including higher than usual customer remediation and compensation, sales (largely related to satellite), redundancy, and shared cost allocations Copyright Telstra © 44 Mobile handheld users 1 FY24 1H25 2H25 FY25 1H26 Reported total 14,447k 14,566k 14,532k 14,532k 14,667k Postpaid handheld SIOs 8,942k 8,990k 8,886k 8,886k 8,902k Prepaid handheld UUs 3,097k 3,089 k 3,021k 3,021k 3,042k Wholesale UUs 2,408k 2,487k 2,625k 2,625k 2,723k Reported net adds total +119k - 34k +85k +135k Postpaid handheld SIOs +48k - 104k - 56k +16k Prepaid handheld UUs - 8k - 68k - 76k +21k Wholesale UUs +79k +138k +217k +98k Adjustments to net adds total +54k +108k +162k - Postpaid handheld SIOs adj. +54k +108k +162k - Adjusted net adds total +173k +74k +247k +135k Postpaid handheld SIOs adj. +102k +4k +106k +16k Prepaid handheld UUs - 8k - 68k - 76k +21k Wholesale UUs +79k +138k +217k +98k Product performance | Mobile physicals • FY25 postpaid handheld SIOs +162k adjustments to net adds: – 64k SIM disconnections acquired during COVID - era not used (1H25 22k, 2H25 42k) – 66k reclass of Enterprise & mid - market SIOs to IoT in 2H25 – 32k disconnections from 3G closure in 1H25 1. Retail and wholesale. Retail includes postpaid mobile handheld services in operation (SIOs) and prepaid mobile handheld uniqu e u sers (UUs). Wholesale includes postpaid mobile handheld SIOs and prepaid mobile handheld UUs. 43 44 For personal use only
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22 Copyright Telstra © 43 1H25 2H25 FY25 1H26 Change vs PCP Mobile income $5,567m $5,448m $11,015m $5,769m 3.6% Mobile services 1 $4,225m $4,283m $8,508m $4,460m 5.6% Postpaid handheld $2,884m $2,909m $5,793m $3,000m 4.0% Prepaid handheld $630m $655m $1,285m $684m 8.6% Mobile broadband $304m $291m $595m $310m 2.0% Internet of Things (IoT) 2 $145m $148m $293m $157m 8.3% Wholesale $251m $271m $522m $298m 18.7% Hardware, intercon. & other 3 $1,342m $1,165m $2,507m $1,309m - 2.5% EBITDA M argin $2,602m 47% $2,659m 49% $5,261m 48% $2,695m 47% 3.6% - Total retail mobile SIOs 24.6m 24.9m 24.9m 25.5m 3.8% Postpaid handheld mobile SIOs 8,990k 8,886k 8,886k 8,902k - 1.0% Postpaid handheld ARPU/ mth $53.62 $54.23 $54.15 $56.22 4.8% Prepaid handheld ARPU/ mth $28.15 $30.24 $29.29 $32.29 14.7% Postpaid handheld churn 13.3% 14.0% 13.3% 13.2% - 0.1pp Product performance | Mobile 1. Mobile services income also includes other income of $11m in 1H26 (1H25 $11m, 2H25 $9m). International r oaming income of $130m in 1H26 (1H25 $132m, 2H25 $127m). 2. 1H26 includes $28m income from MTData which was divested in January 2026. 3. Other includes media and Telstra Plus loyalty. • Mobile services income growth across all products • Postpaid handheld revenue growth of 4.0% driven by ARPU growth of 4.8% following price rises • Prepaid handheld revenue growth of 8.6% . Prepaid handheld ARPU grew 14.7% . Although significantly lower on a unique user basis, growth is due to the flow through of October 2024 price changes • Mobile broadband revenue growth despite SIO decline driven by improved ARPU performance following Consumer and Small Business price rises • IoT revenue growth of 8.3% driven by higher SIO growth and usage (data consumption) across connected cars • Wholesale revenue growth of 18.7% driven by ARPU and SIO growth in Postpaid and Prepaid, and increase in bulk messaging volumes • Hardware revenue decline across handheld products due to lower volumes • EBITDA growth from service revenue partly offset by higher costs, including higher than usual customer remediation and compensation, sales (largely related to satellite), redundancy, and shared cost allocations Copyright Telstra © 44 Mobile handheld users 1 FY24 1H25 2H25 FY25 1H26 Reported total 14,447k 14,566k 14,532k 14,532k 14,667k Postpaid handheld SIOs 8,942k 8,990k 8,886k 8,886k 8,902k Prepaid handheld UUs 3,097k 3,089 k 3,021k 3,021k 3,042k Wholesale UUs 2,408k 2,487k 2,625k 2,625k 2,723k Reported net adds total +119k - 34k +85k +135k Postpaid handheld SIOs +48k - 104k - 56k +16k Prepaid handheld UUs - 8k - 68k - 76k +21k Wholesale UUs +79k +138k +217k +98k Adjustments to net adds total +54k +108k +162k - Postpaid handheld SIOs adj. +54k +108k +162k - Adjusted net adds total +173k +74k +247k +135k Postpaid handheld SIOs adj. +102k +4k +106k +16k Prepaid handheld UUs - 8k - 68k - 76k +21k Wholesale UUs +79k +138k +217k +98k Product performance | Mobile physicals • FY25 postpaid handheld SIOs +162k adjustments to net adds: – 64k SIM disconnections acquired during COVID - era not used (1H25 22k, 2H25 42k) – 66k reclass of Enterprise & mid - market SIOs to IoT in 2H25 – 32k disconnections from 3G closure in 1H25 1. Retail and wholesale. Retail includes postpaid mobile handheld services in operation (SIOs) and prepaid mobile handheld uniqu e u sers (UUs). Wholesale includes postpaid mobile handheld SIOs and prepaid mobile handheld UUs. 43 44 For personal use only
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23 Copyright Telstra © 45 1H25 2H25 FY25 1H26 Change vs PCP Fixed - C&SB income 1 $2,174m $2,125m $4,299m $2,120m - 2.5% Core connectivity $1,871m $1,835m $3,706m $1,846m - 1.3% Consumer content & services $227m $217m $444m $211m - 7.0% Business applications & services $76m $73m $149m $63m - 17.1% EBITDA Margin $183m 8% $180m 9% $363m 8% $220m 10% 20.2% +2pp C&SB Bundles & data SIOs 3,239k 3,177k 3,177k 3,119k - 3.7% C&SB Bundles & data ARPU $86.61 $87.48 $87.08 $89.71 3.6% • Core connectivity income decline from lower nbn SIOs and continued voice and legacy decline, partly offset by higher Bundles & data ARPU and growth in 5G fixed wireless • nbn gross contribution flat with price rise offset by SIO loss • Bundles & data net adds of - 58k including - 75k nbn, +21k in 5G fixed wireless to 141k • Bundles & data ARPU growth of $3.10 from price rises (July 2025) • Consumer content & services income decline due to lower customer bases in Fetch and Foxtel from Telstra (cease sale from February 2024) • Business applications & services impacted by legacy calling and decisions on portfolio rationalisation • EBITDA growth from cost discipline, fixed wireless growth partly offset by voice and legacy decline • Ongoing strong cost management including from modems Product performance | Fixed - C&SB 1. Includes Telstra Universal Service Obligation Performance Agreement (TUSOPA) income (1H25 $103m, 2H25 $99m, FY25 $202m, 1H26 $101m ) . TUSOPA is run by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts and the income is net of the levy paid. Copyright Telstra © 46 1H25 2H25 FY25 1H26 Change vs PCP DAC income $348m $331m $679m $317m - 8.9% DAC EBITDA Margin $42m 12% $44m 13% $86m 13% $25m 8% - 40.5% - 4pp Data & connectivity SIOs 139k 136k 136k 131k - 5.8% NAS income 1,2 $1,342m $1,424m $2,766m $1,291m - 3.8% Calling applications $198m $191m $389m $177m - 10.6% Managed services $406m $415m $821m $403m - 0.7% Professional services $245m $292m $537m $240m - 2.0% Cloud applications $189m $196m $385m $184m - 2.6% Equipment sales $128m $144m $272m $114m - 10.9% Other $176m $186m $362m $173m - 1.7% NAS EBITDA Margin $54m 4% $99m 7% $153m 6% $62m 5% 14.8% +1pp Fixed - Enterprise income 1,2 $1,690m $1,755m $3,445m $1,608m - 4.9% Fixed - Enterprise EBITDA Margin $96m 6% $143m 8% $239m 7% $87m 5% - 9.4% - 1pp Product performance | Fixed - Enterprise 1. NAS income i ncludes internal revenue (1H25 $13m; 2H25 $13m; FY25 $26m; 1H26 $12m). 2. 1H26 NAS income includes $235m income relating to businesses for which divestments have been announced or completed, includin g t he Versent group, MTData , and Alliance Automation. • Data & connectivity (DAC) income declined as progress on product refresh and upselling to higher bandwidths was not enough to offset the impact of service rationalisation , and in period customer credits • DAC EBITDA declined as cost reduction was insufficient to offset revenue decline • Network Application Services (NAS) income decline driven largely by declines in calling and equipment sales • Calling applications decline continued with fixed product exits and shift from traditional voice to digital solutions • Managed services decline driven by decline in managed calling • Professional services decline driven by stronger focus on core connectivity in line with strategy • Cloud annuity decline in cloud applications driven by product exits • Equipment sales decline in line with strategy • NAS EBITDA increase from strong cost management 45 46 For personal use only
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23 Copyright Telstra © 45 1H25 2H25 FY25 1H26 Change vs PCP Fixed - C&SB income 1 $2,174m $2,125m $4,299m $2,120m - 2.5% Core connectivity $1,871m $1,835m $3,706m $1,846m - 1.3% Consumer content & services $227m $217m $444m $211m - 7.0% Business applications & services $76m $73m $149m $63m - 17.1% EBITDA Margin $183m 8% $180m 9% $363m 8% $220m 10% 20.2% +2pp C&SB Bundles & data SIOs 3,239k 3,177k 3,177k 3,119k - 3.7% C&SB Bundles & data ARPU $86.61 $87.48 $87.08 $89.71 3.6% • Core connectivity income decline from lower nbn SIOs and continued voice and legacy decline, partly offset by higher Bundles & data ARPU and growth in 5G fixed wireless • nbn gross contribution flat with price rise offset by SIO loss • Bundles & data net adds of - 58k including - 75k nbn, +21k in 5G fixed wireless to 141k • Bundles & data ARPU growth of $3.10 from price rises (July 2025) • Consumer content & services income decline due to lower customer bases in Fetch and Foxtel from Telstra (cease sale from February 2024) • Business applications & services impacted by legacy calling and decisions on portfolio rationalisation • EBITDA growth from cost discipline, fixed wireless growth partly offset by voice and legacy decline • Ongoing strong cost management including from modems Product performance | Fixed - C&SB 1. Includes Telstra Universal Service Obligation Performance Agreement (TUSOPA) income (1H25 $103m, 2H25 $99m, FY25 $202m, 1H26 $101m ) . TUSOPA is run by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts and the income is net of the levy paid. Copyright Telstra © 46 1H25 2H25 FY25 1H26 Change vs PCP DAC income $348m $331m $679m $317m - 8.9% DAC EBITDA Margin $42m 12% $44m 13% $86m 13% $25m 8% - 40.5% - 4pp Data & connectivity SIOs 139k 136k 136k 131k - 5.8% NAS income 1,2 $1,342m $1,424m $2,766m $1,291m - 3.8% Calling applications $198m $191m $389m $177m - 10.6% Managed services $406m $415m $821m $403m - 0.7% Professional services $245m $292m $537m $240m - 2.0% Cloud applications $189m $196m $385m $184m - 2.6% Equipment sales $128m $144m $272m $114m - 10.9% Other $176m $186m $362m $173m - 1.7% NAS EBITDA Margin $54m 4% $99m 7% $153m 6% $62m 5% 14.8% +1pp Fixed - Enterprise income 1,2 $1,690m $1,755m $3,445m $1,608m - 4.9% Fixed - Enterprise EBITDA Margin $96m 6% $143m 8% $239m 7% $87m 5% - 9.4% - 1pp Product performance | Fixed - Enterprise 1. NAS income i ncludes internal revenue (1H25 $13m; 2H25 $13m; FY25 $26m; 1H26 $12m). 2. 1H26 NAS income includes $235m income relating to businesses for which divestments have been announced or completed, includin g t he Versent group, MTData , and Alliance Automation. • Data & connectivity (DAC) income declined as progress on product refresh and upselling to higher bandwidths was not enough to offset the impact of service rationalisation , and in period customer credits • DAC EBITDA declined as cost reduction was insufficient to offset revenue decline • Network Application Services (NAS) income decline driven largely by declines in calling and equipment sales • Calling applications decline continued with fixed product exits and shift from traditional voice to digital solutions • Managed services decline driven by decline in managed calling • Professional services decline driven by stronger focus on core connectivity in line with strategy • Cloud annuity decline in cloud applications driven by product exits • Equipment sales decline in line with strategy • NAS EBITDA increase from strong cost management 45 46 For personal use only
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24 Copyright Telstra © 47 AUD 1H25 2H25 FY25 1H26 Change vs PCP Change vs PCP Constant currency normalised 4 Wholesale & Enterprise income 1 $920m $964m $1,884m $869m - 5.5% - 6.4% Internal income 2 $111m $104m $215m $102m - 8.1% - 7.7% External income $809m $860m $1,669m $767m - 5.2% - 6.3% - DAC/NAS $717m $751m $1,468m $710m - 1.0% - 2.0% - Legacy voice $92m $109m $201m $57m - 38.0% - 38.7% Wholesale & Enterprise EBITDA 1,3 Margin $194m 21% $157m 16% $351m 19% $232m 27% 19.6% +6pp 17.2% +5pp Digicel Pacific income $337m $323m $660m $312m - 7.4% - 3.6% Earn - out provision adjustment $39m - $39m - - - Digicel Pacific EBITDA Margin $179m 53% $148m 46% $327m 50% $139m 45% - 22.3% - 8pp 1.7% +2pp International income - Total $1,257m $1,287m $2,544m $1,181m - 6.0% - 5.7% International EBITDA - Total Margin $373m 30% $305m 24% $678m 27% $371m 31% - 0.5% +1pp 11.0% +5pp Product performance | International 1. Wholesale & Enterprise income excludes non - cash gain from Tianjin data centre lease (FY25/2H25 $43m). 2. Transactions arising from the intercompany agreements are measured based on a 'management view', i.e. some charges earned/inc urr ed are recognised as either income or expenses. Such recognition may differ from the requirements of the Australian Accounting Standards. 3. Wholesale & Enterprise EBITDA excludes impairment of London Hosting Centre assets (FY25/2H25 $50m; 1H26 $23m). 4. Digicel Pacific performance excludes earn - out provision adjustment. • Wholesale & Enterprise external income decline driven by lower NAS and legacy voice • Wholesale & Enterprise EBITDA reported growth of 20% due to significant one - off benefits. Significant one - off benefits included deferred revenue and other balance sheet releases, and an equity - accounted associate gain. Excluding these and in constant currency, growth of 1% with lower operating costs • Digicel Pacific normalised constant currency income decline of 3.6% with lower PNG ARPU and SIOs • Digicel Pacific normalised constant currency EBITDA growth of 1.7% driven by cost management. Reported EBITDA decline of 22% reflects reversal of earn - out provision in 1H25 and FX impact from further devaluation of PNG Kina • Digicel Pacific capex of A$21m down from A$39m in 1H25, expect 2H weighted Copyright Telstra © 48 1H25 2H25 FY25 1H26 Change vs PCP InfraCo Fixed income $1,376m $1,334m $2,710m $1,370m - 0.4% nbn recurring (excl. CW) $547m $555m $1,102 $560m 2.4% Commercial & recoverable works $120m $104m $224m $117m - 2.5% Legacy asset sales 1 $52m $60m $112m $48m - 7.7% Other external $80m $75m $155m $88m 10.0% Internal 2 $577m $540m $1,117m $557m - 3.5% EBITDA $892m $921m $1,813m $919m 3.0% Leases 3,4 $17m $18m $35m $14m - 17.6% EBITDAaL 4 Margin $875m 64% $903m 68% $1,778m 66% $905m 66% 3.4% +2pp • InfraCo Fixed income decline of 0.4% – Growth of 3.3% from nbn CPI indexation and “Other external” including ground stations – Offset by lower internal revenue including internal efficiencies and lower power usage • nbn recurring income from nbn Co for use of pits, ducts, fibre and fixed networks. This is government backed, recurring and indexed to CPI for the remaining average contracted period of 21 years • Commercial & recoverable works (CW) decline reflects reduced activity in nbn program • Legacy asset sales grew on an underlying basis reflecting higher copper extraction volumes 1 • Other external growth from ground stations, dark fibre and and non - nbn duct access revenue • Internal income from Telstra group decline largely reflecting efficiencies, lower power and timing of project works • BAU capex of $202m (15% of income) plus $230m of strategic investment in Aura (Intercity Fibre) Network and Viasat projects Product performance | InfraCo Fixed 1. Includes copper sales as part of ongoing recovery program (1H25 $52m; 2H25 $28m; FY25 $80m; 1H26 $48m). Copper income reporte d n et of costs from 2H25. 2. Transactions arising from the intercompany agreements are measured based on a 'management view', i.e. some charges earned/inc urr ed are recognised as either income or expenses. Such recognition may differ from the requirements of the Australian Accounting Standards. 3. Previously represented lease expense: 1H25 $38m, 2H25 $40m, FY25 $78m. 4. Refer to definition in the Glossary. 47 48 For personal use only
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24 Copyright Telstra © 47 AUD 1H25 2H25 FY25 1H26 Change vs PCP Change vs PCP Constant currency normalised 4 Wholesale & Enterprise income 1 $920m $964m $1,884m $869m - 5.5% - 6.4% Internal income 2 $111m $104m $215m $102m - 8.1% - 7.7% External income $809m $860m $1,669m $767m - 5.2% - 6.3% - DAC/NAS $717m $751m $1,468m $710m - 1.0% - 2.0% - Legacy voice $92m $109m $201m $57m - 38.0% - 38.7% Wholesale & Enterprise EBITDA 1,3 Margin $194m 21% $157m 16% $351m 19% $232m 27% 19.6% +6pp 17.2% +5pp Digicel Pacific income $337m $323m $660m $312m - 7.4% - 3.6% Earn - out provision adjustment $39m - $39m - - - Digicel Pacific EBITDA Margin $179m 53% $148m 46% $327m 50% $139m 45% - 22.3% - 8pp 1.7% +2pp International income - Total $1,257m $1,287m $2,544m $1,181m - 6.0% - 5.7% International EBITDA - Total Margin $373m 30% $305m 24% $678m 27% $371m 31% - 0.5% +1pp 11.0% +5pp Product performance | International 1. Wholesale & Enterprise income excludes non - cash gain from Tianjin data centre lease (FY25/2H25 $43m). 2. Transactions arising from the intercompany agreements are measured based on a 'management view', i.e. some charges earned/inc urr ed are recognised as either income or expenses. Such recognition may differ from the requirements of the Australian Accounting Standards. 3. Wholesale & Enterprise EBITDA excludes impairment of London Hosting Centre assets (FY25/2H25 $50m; 1H26 $23m). 4. Digicel Pacific performance excludes earn - out provision adjustment. • Wholesale & Enterprise external income decline driven by lower NAS and legacy voice • Wholesale & Enterprise EBITDA reported growth of 20% due to significant one - off benefits. Significant one - off benefits included deferred revenue and other balance sheet releases, and an equity - accounted associate gain. Excluding these and in constant currency, growth of 1% with lower operating costs • Digicel Pacific normalised constant currency income decline of 3.6% with lower PNG ARPU and SIOs • Digicel Pacific normalised constant currency EBITDA growth of 1.7% driven by cost management. Reported EBITDA decline of 22% reflects reversal of earn - out provision in 1H25 and FX impact from further devaluation of PNG Kina • Digicel Pacific capex of A$21m down from A$39m in 1H25, expect 2H weighted Copyright Telstra © 48 1H25 2H25 FY25 1H26 Change vs PCP InfraCo Fixed income $1,376m $1,334m $2,710m $1,370m - 0.4% nbn recurring (excl. CW) $547m $555m $1,102 $560m 2.4% Commercial & recoverable works $120m $104m $224m $117m - 2.5% Legacy asset sales 1 $52m $60m $112m $48m - 7.7% Other external $80m $75m $155m $88m 10.0% Internal 2 $577m $540m $1,117m $557m - 3.5% EBITDA $892m $921m $1,813m $919m 3.0% Leases 3,4 $17m $18m $35m $14m - 17.6% EBITDAaL 4 Margin $875m 64% $903m 68% $1,778m 66% $905m 66% 3.4% +2pp • InfraCo Fixed income decline of 0.4% – Growth of 3.3% from nbn CPI indexation and “Other external” including ground stations – Offset by lower internal revenue including internal efficiencies and lower power usage • nbn recurring income from nbn Co for use of pits, ducts, fibre and fixed networks. This is government backed, recurring and indexed to CPI for the remaining average contracted period of 21 years • Commercial & recoverable works (CW) decline reflects reduced activity in nbn program • Legacy asset sales grew on an underlying basis reflecting higher copper extraction volumes 1 • Other external growth from ground stations, dark fibre and and non - nbn duct access revenue • Internal income from Telstra group decline largely reflecting efficiencies, lower power and timing of project works • BAU capex of $202m (15% of income) plus $230m of strategic investment in Aura (Intercity Fibre) Network and Viasat projects Product performance | InfraCo Fixed 1. Includes copper sales as part of ongoing recovery program (1H25 $52m; 2H25 $28m; FY25 $80m; 1H26 $48m). Copper income reporte d n et of costs from 2H25. 2. Transactions arising from the intercompany agreements are measured based on a 'management view', i.e. some charges earned/inc urr ed are recognised as either income or expenses. Such recognition may differ from the requirements of the Australian Accounting Standards. 3. Previously represented lease expense: 1H25 $38m, 2H25 $40m, FY25 $78m. 4. Refer to definition in the Glossary. 47 48 For personal use only
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25 Copyright Telstra © 49 1H25 2H25 FY25 1H26 Change vs PCP Fixed - Active Wholesale income $179m $170m $349m $166m - 7.3% Data & connectivity $130m $126m $256m $122m - 6.2% Legacy calling & fixed $49m $44m $93m $44m - 10.2% EBITDA Margin $46m 26% $36m 21% $82m 23% $32m 19% - 30.4% - 7pp Fixed legacy SIOs 23k 20k 20k 17k - 26.1% Data & connectivity SIOs 23k 22k 22k 22k - 4.3% • Fixed - Active Wholesale income decline across multiple product portfolios • Data & connectivity income decline from lower services • Legacy calling & fixed includes legacy copper access, nbn reseller wholesale, interconnect and other fixed products. Income decline from continued legacy fixed SIO decline & product phase out • EBITDA decline mainly due to income decline Product performance | Fixed - Active Wholesale Copyright Telstra © 50 1H25 2H25 FY25 1H26 Change vs PCP Amplitel income $235m $235m $470m $242m 3.0% External $51m $49m $100m $49m - 3.9% Internal 1 $184m $186m $370m $193m 4.9% EBITDA $187m $195m $382m $197m 5.3% Leases 2,3 $35m $36m $71m $35m - EBITDAaL 3 Margin $152m 65% $159m 68% $311m 66% $162m 67% 6.6% +2pp Towers (Mobile) 6,032 6,073 6,073 6,120 1.5% Tenancies (Mobile) 8,470 8,502 8,502 8,584 1.3% Tenancy ratio 1.40 1.40 1.40 1.40 - • Amplitel income growth from additional site licences, contractual escalations, new tower builds, 5G upgrades requiring additional area on towers and services • External income decline includes TPG/Optus MOCN driven impacts • EBITDA growth from revenue growth and cost savings • Towers (Mobile) increase driven by new builds. Total new builds and tower acquisitions at 429 cumulative since Amplitel inception • Capex of $25m (10% of income) on new sites, maintenance and life cycle replacements Product performance | Amplitel 1. Transactions arising from the intercompany agreements are measured based on a 'management view', i.e. some charges earned/inc urr ed are recognised as either income or expenses. Such recognition may differ from the requirements of the Australian Accounting Standards. 2. Previously represented lease expense: 1H25 $36m, 2H25 $45m, FY25 $81m. 3. Refer to definition in the Glossary. 49 50 For personal use only
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25 Copyright Telstra © 49 1H25 2H25 FY25 1H26 Change vs PCP Fixed - Active Wholesale income $179m $170m $349m $166m - 7.3% Data & connectivity $130m $126m $256m $122m - 6.2% Legacy calling & fixed $49m $44m $93m $44m - 10.2% EBITDA Margin $46m 26% $36m 21% $82m 23% $32m 19% - 30.4% - 7pp Fixed legacy SIOs 23k 20k 20k 17k - 26.1% Data & connectivity SIOs 23k 22k 22k 22k - 4.3% • Fixed - Active Wholesale income decline across multiple product portfolios • Data & connectivity income decline from lower services • Legacy calling & fixed includes legacy copper access, nbn reseller wholesale, interconnect and other fixed products. Income decline from continued legacy fixed SIO decline & product phase out • EBITDA decline mainly due to income decline Product performance | Fixed - Active Wholesale Copyright Telstra © 50 1H25 2H25 FY25 1H26 Change vs PCP Amplitel income $235m $235m $470m $242m 3.0% External $51m $49m $100m $49m - 3.9% Internal 1 $184m $186m $370m $193m 4.9% EBITDA $187m $195m $382m $197m 5.3% Leases 2,3 $35m $36m $71m $35m - EBITDAaL 3 Margin $152m 65% $159m 68% $311m 66% $162m 67% 6.6% +2pp Towers (Mobile) 6,032 6,073 6,073 6,120 1.5% Tenancies (Mobile) 8,470 8,502 8,502 8,584 1.3% Tenancy ratio 1.40 1.40 1.40 1.40 - • Amplitel income growth from additional site licences, contractual escalations, new tower builds, 5G upgrades requiring additional area on towers and services • External income decline includes TPG/Optus MOCN driven impacts • EBITDA growth from revenue growth and cost savings • Towers (Mobile) increase driven by new builds. Total new builds and tower acquisitions at 429 cumulative since Amplitel inception • Capex of $25m (10% of income) on new sites, maintenance and life cycle replacements Product performance | Amplitel 1. Transactions arising from the intercompany agreements are measured based on a 'management view', i.e. some charges earned/inc urr ed are recognised as either income or expenses. Such recognition may differ from the requirements of the Australian Accounting Standards. 2. Previously represented lease expense: 1H25 $36m, 2H25 $45m, FY25 $81m. 3. Refer to definition in the Glossary. 49 50 For personal use only
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26 Copyright Telstra © 51 Segment Product Underlying income 1 1H25 2H25 FY25 1H26 % Chg vs PCP Telstra Consumer Mobile $3,718m $3,565m $7,283m $3,791m 2.0% Fixed - C&SB $1,801m $1,763m $3,564m $1,771m - 1.7% Other $9m $6m $15m $11m 22.2% Total $5,528m $5,334m $10,862m $5,573m 0.8% Telstra Business Mobile $918m $917m $1,835m $978m 6.5% Fixed - C&SB $373m $362m $735m $349m - 6.4% Fixed – Enterprise $154m $144m $298m $138m - 10.4% Other - $3m $2m - $1m - n/m Total $1,442m $1,425m $2,867m $1,465m 1.6% Telstra Enterprise Australia Mobile $650m $663m $1,313m $677m 4.2% Fixed - Enterprise $1,536m $1,611m $3,147m $1,470m - 4.3% Other $17m $8m $25m $14m - 17.6% Total $2,203m $2,282m $4,485m $2,161m - 1.9% Telstra International 2 Total $1,257m $1,287m $2,544m $1,181m - 6.0% Telstra InfraCo Mobile $281m $303m $584m $323m 14.9% Fixed - Active Wholesale $179m $170m $349m $166m - 7.3% InfraCo Fixed $1,376m $1,334m $2,710m $1,370m - 0.4% Amplitel $235m $235m $470m $242m 3.0% Other $18m $28m $46m $17m - 5.6% Total $2,089m $2,070m $4,159m $2,118m 1.4% Other 3 Total $549m $521m $1,070m $552m 0.5% Eliminations Total - $1,245m - $1,179m - $2,424m - $1,205m 3.2% Total Total $11,823m $11,740m $23,563m $11,845m 0.2% Segment income 1. Refer to definition in the Glossary. Refer to Note 2.1.2 Segment results Table A in the Half - Year Financial Report for schedule of product income. 2. FY25/2H25 Telstra International underlying income excludes $43m income for non - cash gain from Tianjin data centre lease, included in Guidance adjustments. 3. Other includes miscellaneous, Telstra Energy, Telstra Health and internal. FY25/2H25 Other underlying income excludes $4m, in clu ded in Guidance adjustments. Copyright Telstra © 52 Term Definition (unless separately defined in the slides) Financial BAU capex Business - as - usual (BAU) capex is measured on an accrued basis and excludes spectrum, guidance adjustments, strategic investment, externally funded capex and capitalised leases Cash earnings Underlying EBITDAaL less BAU capex, spectrum amortisation, finance costs, tax and non - controlling interests. Refer to reconciliation in “Cash earnings” slide Cash EBIT Underlying EBITDAaL less BAU capex and spectrum amortisation Cash EPS Cash earnings per share EBITDA Earnings Before Interest, Taxes, Depreciation and Amortisation EBITDAaL Earnings Before Interest, Taxes, Depreciation and Amortisation, after leases EPS Earnings Per Share FTE Full Time Equivalent Guidance adjustments 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 . Refer to Half - 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 FY26 (set out in our ASX announcement titled “Financial results for the half - year ended 31 December 2025 ” lodged with the ASX on 19 February 2026) IFRS International Financial Reporting Standards issued by the IASB. When ‘IFRS’ is used to describe an item of information, that item should be taken to be prepared in accordance with IFRS IFRS financial information Financial information prepared in accordance with IFRS IRR Internal Rate of Return Leases Depreciation of right - of - use assets n/m Not meaningful Non - IFRS financial information Financial information that is presented other than in accordance with all relevant accounting standards Operating leverage Underlying income % growth greater than cash EBIT cost % growth (including underlying operating costs, share of net loss from joint ventures and associated entities, BAU capex, lease s and spectrum amortisation) PCP Prior Corresponding Period. Half - year ended 31 December 2024 Profit for TLS shareholders Profit for the year attributable to equity holders of Telstra Entity ROIC Return on Invested Capital. Calculated as Net Operating Profit After Tax (NOPAT) as a percentage of total capital Glossary Term Definition (unless separately defined in the slides) Financial (cont.) Strategic investment Strategic investment capex is measured on an accrued basis and relates to the Aura (Intercity Fibre) Network and Viasat projects Total income Total income excluding finance income Underlying cashflow before dividends, buy - backs and net borrowings Underlying cashflow before dividends, buy - backs and net borrowings excludes guidance adjustments. Underlying cashflow before dividends, buy - backs and net borrowings is used to assess our underlying cash generation available to shareholders and reflects operating cash flows, less investing cash flows, less financing cashflows (excluding net proceeds from borrowings, share buy - back, and dividends paid to equity holders of Telstra Entity), less strategic investment. Reconciliation to Cash EBIT is set out on “Cashflow supporting investment, dividends and buy - backs” slide. Underlying NOPAT Underlying Net Operating Profit After Tax (NOPAT) excludes guidance adjustments. Reconciliation to NPAT included on “ Underlying earnings reconciliation to reported earnings ” slide Underlying NPAT Underlying Net Profit After Tax (NPAT) excludes guidance adjustments. Reconciliation to NPAT included on “ Underlying earnings reconciliation to reported earnings ” slide Underlying EBITDA Underlying EBITDA excludes guidance adjustments Underlying EBITDAaL Underlying EBITDA after leases (EBITDAaL) excludes guidance adjustments Underlying EPS Profit for TLS shareholders attributable to each share, excluding guidance adjustments. Reconciliation to EPS included on “ Underlying earnings reconciliation to reported earnings ” slide Underlying income Underlying income excludes guidance adjustments. Reconciliation to income included on “Product performance | Income” slide Underlying operating expenses Underlying operating expenses excludes guidance adjustments. Reconciliation to operating expenses included on “Product performance | Operating expenses” slide Underlying ROIC Underlying NOPAT as a percentage of total capital, excluding guidance adjustments less tax. Reconciliation to ROIC included on “Return on Invested Capital (ROIC)” slide CF30 key targets – non - financial AI maturity Refers to external AI maturity measure against global enterprises “enabled by NaaP” Refers to connectivity products that monetise a sophisticated network feature Network Experience Index Refers to an internal composite metric based on the availability and speed of mobile and fixed services Strongest brand Refers to external Brand Strength Index (BSI) 51 52 For personal use only
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26 Copyright Telstra © 51 Segment Product Underlying income 1 1H25 2H25 FY25 1H26 % Chg vs PCP Telstra Consumer Mobile $3,718m $3,565m $7,283m $3,791m 2.0% Fixed - C&SB $1,801m $1,763m $3,564m $1,771m - 1.7% Other $9m $6m $15m $11m 22.2% Total $5,528m $5,334m $10,862m $5,573m 0.8% Telstra Business Mobile $918m $917m $1,835m $978m 6.5% Fixed - C&SB $373m $362m $735m $349m - 6.4% Fixed – Enterprise $154m $144m $298m $138m - 10.4% Other - $3m $2m - $1m - n/m Total $1,442m $1,425m $2,867m $1,465m 1.6% Telstra Enterprise Australia Mobile $650m $663m $1,313m $677m 4.2% Fixed - Enterprise $1,536m $1,611m $3,147m $1,470m - 4.3% Other $17m $8m $25m $14m - 17.6% Total $2,203m $2,282m $4,485m $2,161m - 1.9% Telstra International 2 Total $1,257m $1,287m $2,544m $1,181m - 6.0% Telstra InfraCo Mobile $281m $303m $584m $323m 14.9% Fixed - Active Wholesale $179m $170m $349m $166m - 7.3% InfraCo Fixed $1,376m $1,334m $2,710m $1,370m - 0.4% Amplitel $235m $235m $470m $242m 3.0% Other $18m $28m $46m $17m - 5.6% Total $2,089m $2,070m $4,159m $2,118m 1.4% Other 3 Total $549m $521m $1,070m $552m 0.5% Eliminations Total - $1,245m - $1,179m - $2,424m - $1,205m 3.2% Total Total $11,823m $11,740m $23,563m $11,845m 0.2% Segment income 1. Refer to definition in the Glossary. Refer to Note 2.1.2 Segment results Table A in the Half - Year Financial Report for schedule of product income. 2. FY25/2H25 Telstra International underlying income excludes $43m income for non - cash gain from Tianjin data centre lease, included in Guidance adjustments. 3. Other includes miscellaneous, Telstra Energy, Telstra Health and internal. FY25/2H25 Other underlying income excludes $4m, in clu ded in Guidance adjustments. Copyright Telstra © 52 Term Definition (unless separately defined in the slides) Financial BAU capex Business - as - usual (BAU) capex is measured on an accrued basis and excludes spectrum, guidance adjustments, strategic investment, externally funded capex and capitalised leases Cash earnings Underlying EBITDAaL less BAU capex, spectrum amortisation, finance costs, tax and non - controlling interests. Refer to reconciliation in “Cash earnings” slide Cash EBIT Underlying EBITDAaL less BAU capex and spectrum amortisation Cash EPS Cash earnings per share EBITDA Earnings Before Interest, Taxes, Depreciation and Amortisation EBITDAaL Earnings Before Interest, Taxes, Depreciation and Amortisation, after leases EPS Earnings Per Share FTE Full Time Equivalent Guidance adjustments 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 . Refer to Half - 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 FY26 (set out in our ASX announcement titled “Financial results for the half - year ended 31 December 2025 ” lodged with the ASX on 19 February 2026) IFRS International Financial Reporting Standards issued by the IASB. When ‘IFRS’ is used to describe an item of information, that item should be taken to be prepared in accordance with IFRS IFRS financial information Financial information prepared in accordance with IFRS IRR Internal Rate of Return Leases Depreciation of right - of - use assets n/m Not meaningful Non - IFRS financial information Financial information that is presented other than in accordance with all relevant accounting standards Operating leverage Underlying income % growth greater than cash EBIT cost % growth (including underlying operating costs, share of net loss from joint ventures and associated entities, BAU capex, lease s and spectrum amortisation) PCP Prior Corresponding Period. Half - year ended 31 December 2024 Profit for TLS shareholders Profit for the year attributable to equity holders of Telstra Entity ROIC Return on Invested Capital. Calculated as Net Operating Profit After Tax (NOPAT) as a percentage of total capital Glossary Term Definition (unless separately defined in the slides) Financial (cont.) Strategic investment Strategic investment capex is measured on an accrued basis and relates to the Aura (Intercity Fibre) Network and Viasat projects Total income Total income excluding finance income Underlying cashflow before dividends, buy - backs and net borrowings Underlying cashflow before dividends, buy - backs and net borrowings excludes guidance adjustments. Underlying cashflow before dividends, buy - backs and net borrowings is used to assess our underlying cash generation available to shareholders and reflects operating cash flows, less investing cash flows, less financing cashflows (excluding net proceeds from borrowings, share buy - back, and dividends paid to equity holders of Telstra Entity), less strategic investment. Reconciliation to Cash EBIT is set out on “Cashflow supporting investment, dividends and buy - backs” slide. Underlying NOPAT Underlying Net Operating Profit After Tax (NOPAT) excludes guidance adjustments. Reconciliation to NPAT included on “ Underlying earnings reconciliation to reported earnings ” slide Underlying NPAT Underlying Net Profit After Tax (NPAT) excludes guidance adjustments. Reconciliation to NPAT included on “ Underlying earnings reconciliation to reported earnings ” slide Underlying EBITDA Underlying EBITDA excludes guidance adjustments Underlying EBITDAaL Underlying EBITDA after leases (EBITDAaL) excludes guidance adjustments Underlying EPS Profit for TLS shareholders attributable to each share, excluding guidance adjustments. Reconciliation to EPS included on “ Underlying earnings reconciliation to reported earnings ” slide Underlying income Underlying income excludes guidance adjustments. Reconciliation to income included on “Product performance | Income” slide Underlying operating expenses Underlying operating expenses excludes guidance adjustments. Reconciliation to operating expenses included on “Product performance | Operating expenses” slide Underlying ROIC Underlying NOPAT as a percentage of total capital, excluding guidance adjustments less tax. Reconciliation to ROIC included on “Return on Invested Capital (ROIC)” slide CF30 key targets – non - financial AI maturity Refers to external AI maturity measure against global enterprises “enabled by NaaP” Refers to connectivity products that monetise a sophisticated network feature Network Experience Index Refers to an internal composite metric based on the availability and speed of mobile and fixed services Strongest brand Refers to external Brand Strength Index (BSI) 51 52 For personal use only
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Half Year Results announcement Thursday 19 February 2026 Ex-dividend share trading commences Wednesday 25 February 2026 Record date for interim dividend Thursday 26 February 2026 DRP election date Friday 27 February 2026 Interim dividend paid Friday 27 March 2026 Director nominations open Friday 5 June 2026 Director nominations close (by 5pm AEST) Friday 7 August 2026 Annual Results announcement Thursday 13 August 2026 Ex-dividend share trading commences Wednesday 26 August 2026 Record date for final dividend Thursday 27 August 2026 DRP election date Friday 28 August 2026 Final dividend paid Thursday 24 September 2026 Annual General Meeting Tuesday 13 October 2026 1. Timing of events may be subject to change. Any change will be notified to the Australian Securities Exchange (ASX). Telstra Group Limited 2026 indicative financial calendar 1 For personal use only
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Half Year Results announcement Thursday 19 February 2026 Ex-dividend share trading commences Wednesday 25 February 2026 Record date for interim dividend Thursday 26 February 2026 DRP election date Friday 27 February 2026 Interim dividend paid Friday 27 March 2026 Director nominations open Friday 5 June 2026 Director nominations close (by 5pm AEST) Friday 7 August 2026 Annual Results announcement Thursday 13 August 2026 Ex-dividend share trading commences Wednesday 26 August 2026 Record date for final dividend Thursday 27 August 2026 DRP election date Friday 28 August 2026 Final dividend paid Thursday 24 September 2026 Annual General Meeting Tuesday 13 October 2026 1. Timing of events may be subject to change. Any change will be notified to the Australian Securities Exchange (ASX). Telstra Group Limited 2026 indicative financial calendar 1 For personal use only