Media Release, 19 April 2012

Telstra today announced its capital management strategy including its priorities and underlying principles that will guide the Board’s decision making.

The company confirmed the priorities of its capital management strategy are to maximise returns for shareholders, maintain financial strength and retain financial flexibility.

The principles outlined by Telstra included a set of balance sheet settings that will provide confidence and consistency to the debt and equity markets following the finalisation of agreements for the National Broadband Network.

The company also announced that it expected to generate $2 to 3 billion in excess free cash over the next three years, subject to the NBN roll out schedule and market conditions.

In this context, the company discussed its NBN plans for retail and wholesale and reinforced its focus on differentiated product offerings and customer service.

“Telstra is focused on serving our customers through improved service, offering new products, as well as leveraging our rich set of assets,” Mr Thodey said.

He also told the briefing that Telstra was making no change to guidance for the 2012 financial year and reinforced its intention to pay a 28 cent per share fully-franked dividend in 2012 and 2013. This is subject to the Board’s normal approval process for dividend declaration and there being no unexpected material events.