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Question h.

Data from Telstra annual report 2019

h) Growth and Risk analysis. It would be normal in this section to include business risk analysis. Business risk is the standard deviation of EBIT ROA (see Appendix B) and has nothing to do with the financial (or bankruptcy) risk of a company. Other pertinent analysis would include the company's sustainable growth rate. Prospective analysis: Prospective analysis involves forecasting of future consolidated balance sheet and income statement. Some concluding commentary on the company and maybe its prospects for growth, prospects as a takeover target, high risk of failure or whatever you see. Do not be afraid to track the share price and see if you can use that to understand where the company has come from and where the market thinks it might be going. You may want to even come up with a first thought on whether an investor should consider buying the stock, selling or holding the stock - without getting very technical 11:107 al 4G telstra.com.au Section Directors Report including Remuneration Report Section F Financial Report APPENDIX GEASE LISTING RULESA FINAL REPORT Telstra Corporation Limited ADN 22051775556 trance come to 2.Chwion TeletraGroup ECE th 11:08 . 4G telstra.com.au Full year results and operations review Telstra Corporation Limited ABN 33 051 775 556 1. Results for announcement to the market Telstra Group Year ended 30 June 2019 2018 Movement Restated $m Sm $m Revenue (excluding finance income) from ordinary activities 25.259 25.848 (589) Other income 2.548 2.993 (445) Total income 27.807 28,841 (1,034) Finance income 238 218 20 % (2.3) (14.9) (3.6) 9.2 Profit for the year 2.149 3.557 (1.408) (39.6) 2.154 (40.00 3.591 Profit for the year attributable to equity holders of Telstra Entity 3.591 (1.437) Profit from ordinary activities after tax attributable to equity holders of Telstra Entity 2,154 (1.437) (40.0) Refer to note 1.5(a) of the 2019 Full-year Financial Report for adoption of the new revenue standard and restatement of FY18 comparatives. 2. Dividend information Telstra Group Amount Franked per amount share per share cents cents Interim ordinary dividend per share 5.0 5.0 Interim special dividend per share 3.0 3.0 Total interim dividend per share for the year 8.0 8.0 Final ordinary dividend per share 5.0 5.0 Final special dividend per share 3.0 3.0 Total final dividend per share for the year 8.0 8.0 Total dividend per share for the year 16.0 16.0 Final dividend dates Record date 29 August 2019 Payment date 26 September 2019 The above information is based on the consolidated financial statements and notes which have been audited by Ernst & Young (EY). 3. Net Tangible Assets per security information Telstra Group Year ended 30 June 2019 2018 Restate cents 61.7 d cents 56.4 Net tangible assets per security FY19 FY18 restated Change Summary financial results Sm Sm % 25,259 25,848 (2.3) 27,807 28,841 (3.6) 19,835 18,622 6.5 Revenue (excluding finance income) Total income (excluding finance income) Operating expenses Share of net profit/loss) from joint ventures and associated entities EBITDA Depreciation and amortisation EBIT 12 (22) nim 7,984 10,197 (217) (4.2) 4,282 4,470 3,702 5,727 (35.4) Net finance costs 588 7.1 923 1,582 (41.7) 2,149 3,557 (39.6) Income tax expense Profit for the period Profit attributable to equity holders of Telstra Capex 2,154 3,591 (40,0) 4,140 4,717 (12.2) Free cash flow 3,068 4,695 (34.7) Earnings per share cents) 18.1 30.2 (40,1 Reported results Our FY 19 results show our focus on building value and growth, improved customer experience, and ongoing momentum in our cost reduction efforts, while also reflecting the impact of the nbn rollout and competitive headwinds. For commentary on our key results and market context, please refer to the Chairman and CEO message section. Detail on our FY19 highlights and progress against our T22 strategy can be found in the Strategy and performance section FY18 results have been restated to account for the adoption of AASB15 - refer to Note 1.5 in the Financial Report for further detail. The definition of "underlying earrings" now excludes guidance adjustments - refer to the dividend discussion on the following page for further detail Results on a guidance basis! FY19 FY19 Guidance Total income $27.86 $26.20 to $28.1b EBITDA excluding restructuring costs $9.46 $8.75 to $9.46 Net one-off nbn DA receipts less nben net cost to connect $1.6b $1.5b to $1.70 Restructuring costs 80,8b -30.86 Capex $4.1b $3.95 to $4.4b Free castillow Lower end of $3.1b to $3.65 THAgilaasal stant wwwwwwwwwwwwwwww $3.2b Thr h) Growth and Risk analysis. It would be normal in this section to include business risk analysis. Business risk is the standard deviation of EBIT ROA (see Appendix B) and has nothing to do with the financial (or bankruptcy) risk of a company. Other pertinent analysis would include the company's sustainable growth rate. Prospective analysis: Prospective analysis involves forecasting of future consolidated balance sheet and income statement. Some concluding commentary on the company and maybe its prospects for growth, prospects as a takeover target, high risk of failure or whatever you see. Do not be afraid to track the share price and see if you can use that to understand where the company has come from and where the market thinks it might be going. You may want to even come up with a first thought on whether an investor should consider buying the stock, selling or holding the stock - without getting very technical 11:107 al 4G telstra.com.au Section Directors Report including Remuneration Report Section F Financial Report APPENDIX GEASE LISTING RULESA FINAL REPORT Telstra Corporation Limited ADN 22051775556 trance come to 2.Chwion TeletraGroup ECE th 11:08 . 4G telstra.com.au Full year results and operations review Telstra Corporation Limited ABN 33 051 775 556 1. Results for announcement to the market Telstra Group Year ended 30 June 2019 2018 Movement Restated $m Sm $m Revenue (excluding finance income) from ordinary activities 25.259 25.848 (589) Other income 2.548 2.993 (445) Total income 27.807 28,841 (1,034) Finance income 238 218 20 % (2.3) (14.9) (3.6) 9.2 Profit for the year 2.149 3.557 (1.408) (39.6) 2.154 (40.00 3.591 Profit for the year attributable to equity holders of Telstra Entity 3.591 (1.437) Profit from ordinary activities after tax attributable to equity holders of Telstra Entity 2,154 (1.437) (40.0) Refer to note 1.5(a) of the 2019 Full-year Financial Report for adoption of the new revenue standard and restatement of FY18 comparatives. 2. Dividend information Telstra Group Amount Franked per amount share per share cents cents Interim ordinary dividend per share 5.0 5.0 Interim special dividend per share 3.0 3.0 Total interim dividend per share for the year 8.0 8.0 Final ordinary dividend per share 5.0 5.0 Final special dividend per share 3.0 3.0 Total final dividend per share for the year 8.0 8.0 Total dividend per share for the year 16.0 16.0 Final dividend dates Record date 29 August 2019 Payment date 26 September 2019 The above information is based on the consolidated financial statements and notes which have been audited by Ernst & Young (EY). 3. Net Tangible Assets per security information Telstra Group Year ended 30 June 2019 2018 Restate cents 61.7 d cents 56.4 Net tangible assets per security FY19 FY18 restated Change Summary financial results Sm Sm % 25,259 25,848 (2.3) 27,807 28,841 (3.6) 19,835 18,622 6.5 Revenue (excluding finance income) Total income (excluding finance income) Operating expenses Share of net profit/loss) from joint ventures and associated entities EBITDA Depreciation and amortisation EBIT 12 (22) nim 7,984 10,197 (217) (4.2) 4,282 4,470 3,702 5,727 (35.4) Net finance costs 588 7.1 923 1,582 (41.7) 2,149 3,557 (39.6) Income tax expense Profit for the period Profit attributable to equity holders of Telstra Capex 2,154 3,591 (40,0) 4,140 4,717 (12.2) Free cash flow 3,068 4,695 (34.7) Earnings per share cents) 18.1 30.2 (40,1 Reported results Our FY 19 results show our focus on building value and growth, improved customer experience, and ongoing momentum in our cost reduction efforts, while also reflecting the impact of the nbn rollout and competitive headwinds. For commentary on our key results and market context, please refer to the Chairman and CEO message section. Detail on our FY19 highlights and progress against our T22 strategy can be found in the Strategy and performance section FY18 results have been restated to account for the adoption of AASB15 - refer to Note 1.5 in the Financial Report for further detail. The definition of "underlying earrings" now excludes guidance adjustments - refer to the dividend discussion on the following page for further detail Results on a guidance basis! FY19 FY19 Guidance Total income $27.86 $26.20 to $28.1b EBITDA excluding restructuring costs $9.46 $8.75 to $9.46 Net one-off nbn DA receipts less nben net cost to connect $1.6b $1.5b to $1.70 Restructuring costs 80,8b -30.86 Capex $4.1b $3.95 to $4.4b Free castillow Lower end of $3.1b to $3.65 THAgilaasal stant wwwwwwwwwwwwwwww $3.2b Thr

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