Telstra : 2023 Annual Report – Pages

Telstra Annual Report 2023

Forward-looking statements

This report includes forward-looking statements. The forward-looking statements are based on assumptions and information known by Telstra as at the date of this report, are provided as a general guide only and are not guarantees or predictions of future performance. Telstra believes the expectations reflected in these statements are reasonable as at the date of this report, but acknowledges they involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Telstra, which may cause Telstra's actual results, performance and achievements to differ materially from those expressed in, or implied by, the forward-looking statements. These factors include: general economic conditions in Australia; competition in the markets in which Telstra operates; the continuing growth in the markets in which Telstra operates; the inherent 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; the geopolitical environment (including impacts of sanctions and trade controls and broader supply chain impacts); exchange rates; the extent, nature and location of physical impacts of climate change and their impacts on our assets, service continuity and supply chain; electricity grid decarbonisation; and changes to forecast supply chain emissions including but not limited to failure of third parties to achieve contractual environmental targets or milestones that have direct or indirect impact on our environmental modelling.

A number of these risks, uncertainties and other factors are described in the "Chairman and CEO Message", "Our material risks", "Outlook" and the "Understanding our climate risk" sections of this report and our Operating and Financial Review (OFR). The OFR is set out in Telstra's financial results for the year ended 30 June 2023 and in the 2023 Annual Report which were lodged with the ASX on 17 August 2023 and 1 September 2023 respectively, and are available on Telstra's Investor Centre website telstra.com/investor.

In addition, there are particular risks and uncertainties in connection with the implementation of Telstra's T25 strategy (T25). Those risks include the response of customers to changes in products and the way Telstra interacts with customers as Telstra moves to a digital operating model, the risks of disruption from changes Telstra's ways of working, and Telstra's ability to execute and manage the elements of T25 in a sequenced, controlled and effective 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 calculation methodologies used in the preparation of such data, all GHG emissions data or references to GHG emissions volumes (including ratios or percentages) in this report are estimates. The accuracy of Telstra's GHG emissions data and other metrics may be impacted by factors, including inconsistent data availability, a lack of common definitions and standards for reporting climate related information, quality of historical emissions data, reliance on assumptions and changes in market practice. These factors may impact Telstra's ability to meet commitments and targets or cause Telstra's results to differ materially from those expressed or implied in this report. There may also be differences 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 Telstra finalised the acquisition of Digicel Pacific. Telstra is working to determine the necessary actions to incorporate Digicel Pacific in its existing climate scenario analysis, climate risk financial quantification, adaptation planning, emissions reduction plans and to gather the relevant activity data to calculate Digicel Pacific's scope 1, 2 and 3 emissions profile in line with the GHG Protocol so that Digicel Pacific can be integrated into emissions disclosures and targets. The disclosures in this report in relation to the matters noted above do not include Digicel Pacific unless otherwise stated.

Telstra does not provide financial guidance beyond the current financial year. Telstra's financial ambitions to FY25 and growth ambitions across our portfolio are not guidance and there are greater risks and uncertainties in connection with these ambitions.

Investors should not place undue reliance on the forward-looking statements. To the maximum extent permitted by law, Telstra gives no representation, warranty or other assurance in connection with, and disclaims all responsibility for, the currency, accuracy, 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 release any updates or revisions to the information contained in this document to reflect any change in expectations and assumptions.

Defined terms are set out in the Glossary of this report.

No offer, invitation or advice

This report is not intended to (nor does it) constitute an offer or invitation by or on behalf of Telstra, its subsidiaries, or any other person to subscribe for, purchase or otherwise deal in any equity, debt instrument or other securities, nor is it intended to be used for the purpose of or in connection with offers or invitations to subscribe for, purchase or otherwise deal in any equity, debt instruments or other securities.

Information in this report, 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 investment decision.

Unaudited information

All forward-looking figures and proforma statements in this report are unaudited and based on A-IFRS unless otherwise indicated. Certain figures may be subject to rounding differences. All market share information in this report is based on management 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 Telstra Group are the property of Telstra Limited. nbn co and other nbn logos and brands are trade marks of nbn co limited and used under licence. Other trade marks are the property of their respective owners.

Our reporting suite

Our FY23 reporting suite includes:

Our 2023 Telstra Annual Report (this report) which describes our strategy, financial performance and remuneration practices for FY23 and also includes our climate-relatedgovernance, strategy, risks, targets and activities aligned with the recommendations of the Task Force on Climate-relatedFinancial Disclosures (TCFD).

Our 2023 Corporate Governance Statement which provides information about governance at Telstra.

Our 2023 Bigger Picture Sustainability Report which provides an in-depthlook at our approach and performance in relation to our most material sustainability impacts during FY23.

Our 2023 Human Rights and Modern Slavery Act Statement which provides an overview of how we identify, manage and mitigate the specific risks of modern slavery in our operations and supply chains.

All reports are available at telstra.com/governance.

Section Title | TelstraTelstraAnnualGroupRe ortLimited2023

ABN 56 650 620 303

The sections of our Annual Report titled FY23 financial performance, FY23 highlights, Chairman and CEO message, Strategy and performance, Our material risks, Outlook, and Full year results and operations review comprise our operating and financial review (OFR) and form part of the Directors' Report. Our OFR, Directors' Report and Financial Report were released to the ASX on 17 August 2023 in the document titled 'Financial results for the year ended 30 June 2023' which is available

at telstra.com/investor. The section titled Chairman transition is not part of the OFR.

Contents

FY23 financial performance	4
FY23 highlights	5
Chairman and CEO message	6
Chairman transition	9
Strategy and performance	10
Our material risks	14
Outlook	19
Full year results and operations review	20
Board of Directors	30
Senior management team	33
Sustainability	34
Understanding our climate risk	35
Governance at Telstra	44
Directors' Report	45
• Message from the People and Remuneration Committee Chair	50
• Remuneration Report	51
Financial Report	83
• Financial statements	85
• Notes to the financial statements	91
• Directors' declaration	174
Shareholder information	180
Reference tables	183
Glossary	186
Indicative financial calendar	188
Contact details	188

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About Telstra

Telstra is Australia's leading telecommunications and technology provider, offering a full range of communications services and competing in all telecommunications markets.

Our origins date back to 1901, when the Postmaster-General's Department was established by the Australian government to manage all domestic telephone, telegraph and postal services, and to 1946, when the Overseas Telecommunications Commission was established by the Australian government to manage international telecommunications services.

Telstra Corporation Limited was incorporated as an Australian public limited liability company in November 1991 and was initially listed on the ASX on 17 November 1997. Since then, the Telstra Group has undergone many changes, including a corporate restructure in financial year 2023, that resulted in Telstra Group Limited becoming the ASX-listed parent entity of the Telstra Group on 31 October 2022.

As at 30 June 2023, Telstra is one of the 20 largest companies listed on the ASX with a market capitalisation of approximately A$49 billion and has over 31,000 employees.

Our purpose is to build a connected future so everyone can thrive. We aim to build technology and content solutions that are simple and easy to use, including Australia's largest and fastest national mobile network. Our world-leading mobile network reaches approximately 99.6 per cent of the Australian population. We have around 290 stores in Australia.

As at 30 June 2023, we provide around 22.5 million retail mobile services and 3.4 million retail bundle and data services in Australia. We also facilitate over 2,000 network points of presence in more than 30 countries and territories around the world. We bring innovative and intuitive products and services to market, and offer a broad suite of media, content and connectivity options in Australia, as well as connectivity and enterprise services globally. Our customer base is diverse including consumers, small business, large enterprises and government organisations.

Acknowledgement of Country

We recognise and acknowledge the existing, original, and ancient connection Aboriginal and Torres Strait Islander peoples have to the lands and waterways across the Australian continent. We pay our respects to their Elders past and present. At Telstra we are enriched by Aboriginal and Torres Strait Islander peoples' contribution to our organisation, and we commit to working with you to build a prosperous and inclusive Australia.

Our purpose

The telecommunications industry is experiencing enormous growth. Network traffic is growing fast and digital technology is changing our world.

Telstra is at the heart of this change-and we're helping make it happen by connecting everything to everyone.

We believe it's people who give purpose to our technology

So we're committed to staying close to our customers and providing them the best experience

And delivering the best tech On the best network

Because our purpose is to build a connected future so everyone can thrive.

Our values

Together with our purpose, our values express what we stand for and guide the way we do things.

They are core to who we are and we align everything we do with them. Here at Telstra, we have four values.

We are changemakers

We are better together

We care

We make it simple

We think big, set ambitious goals and deliver them - for our customers, shareholders and communities. By speaking up, being curious to learn and valuing different perspectives we challenge the status quo and make change.

We're one team and embrace the value each of us bring. Our (super) power lies in working together to deliver for our customers. We're each accountable for our actions and do what we say we're going to do.

We show care in all that we do. We do the right thing for our customers, our communities, the planet, ourselves and each other - even when no one's watching.

What we do is complex, but we always make things simple for our customers and each other. Simple doesn't necessarily mean quick. We keep the simple, simple.

These are the values we stand for - the values by which we measure all of our actions. Putting these values into action will help us to build a connected future so everyone can thrive.

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