TELSTRA INCOME STATEMENT

Gross Profit
Total Revenue
Business Revenue
Other Revenue
Cost of Revenue
Cost of Goods and Services
Other Cost of Revenue
Changes in Inventories
Operating Income/Expenses
Selling, General and Administrative Expenses
Staff Costs
Other Staff Costs
Pension and Other Employee Benefits Costs
Stock-Based Compensation
General and Administrative Expenses
Rent Expense
Selling and Marketing Expenses
Depreciation, Amortization and Depletion
Depreciation and Amortization
Depreciation
Amortization
Other Income/Expense, Operating
Other Expenses, Operating
Other Income, Operating
Provision Expense/Write-Back
Provision for Doubtful Accounts
Total Operating Profit/Loss
Non-Operating Income/Expenses, Total
Total Net Finance Income/Expense
Net Interest Income/Expense
Interest Expense Net of Capitalized Interest
Gross Interest
Interest Income
Net Investment Income
Income from Associates, Joint Ventures and Other Participating Interests
Share of Profit and Interest from Associates
Gain/Loss on Foreign Exchange
Gain/Loss on Investments and Other Financial Instruments
Dividend and Investment Income
Irregular Income/Expenses
Asset Disposals
Impairment/Write Off/Write Down of Capital Assets
Impairment/Write Off/Write Down of Other Assets
 Goodwill Impairment/Write Off
Other Income/Expense, Non-Operating
Rental Income
Pretax Income
Provision for Income Tax
Net Income from Continuing Operations
Net Income after Extraordinary Items and Discontinued Operations
Non-Controlling/Minority Interests
Net Income after Non-Controlling/Minority Interests
Net Income Available to Common Stockholders
Total Gross Dividends
Common Shares Gross Dividends
Discontinued Operations
Reported Normalized Income
Reported Effective Tax Rate
Reported Normalized EBITDA
Non-Operating Income/Expenses, Supplemental Section
Net Interest Income/Expense, Supplemental
Interest Expense Net of Capitalized Interest, Supplemental
Interest Capitalized, Supplemental
Irregular Items, Supplemental
Other Irregular Income/Expenses, Supplemental
Other Irregular Expenses, Supplemental
Employee Costs and Professional Fees, Supplemental Section
Pension and Other Employee Benefits Costs, Supplemental
Stock-Based Compensation, Supplemental
Directors' Remuneration, Supplemental
Auditor Fees, Supplemental
Non-Audit Fees Paid to Auditor, Supplemental
Operating Income/Expenses, Supplemental Section
Research and Development Expenses, Supplemental
Basic EPS
Diluted EPS
Basic WASO
Diluted WASO
Fiscal year ends in Jun 30 | AUD

Source: https://www.morningstar.com/stocks/xasx/tls/financials
 2016 2017 2018 2019 2020
18,664,000,00018,342,000,00017,253,000,00016,121,000,00013,660,000,000
25,911,000,00026,013,000,00026,011,000,00025,259,000,00022,767,000,000
25,834,000,00025,912,000,00025,667,000,00024,291,000,00022,767,000,000
77,000,000 101,000,000 344,000,000 968,000,000
-7,247,000,000 -7,671,000,000 -8,758,000,000 -9,138,000,000 -9,107,000,000
-3,204,000,000 -3,771,000,000 -3,490,000,000
-4,043,000,000 -7,671,000,000 -8,758,000,000 -5,367,000,000 -5,617,000,000

13,026,000,00014,022,000,00014,043,000,00013,545,000,00012,851,000,000
-8,523,000,000 -9,235,000,000 -7,628,000,000 -7,286,000,000 -5,671,000,000
-5,041,000,000 -5,381,000,000 -5,157,000,000 -4,637,000,000 -4,058,000,000
-4,691,000,000 -5,381,000,000 -4,806,000,000 -4,336,000,000 -4,058,000,000
-312,000,000 -322,000,000 -278,000,000
-38,000,000 -29,000,000 -23,000,000
-972,000,000 -998,000,000 -1,056,000,000 -990,000,000 -1,089,000,000
-660,000,000 -724,000,000 -1,071,000,000 -1,349,000,000 -256,000,000
-301,000,000 -330,000,000 -344,000,000 -310,000,000 -268,000,000
-4,155,000,000 -4,441,000,000 -4,470,000,000 -4,282,000,000 -5,338,000,000
-4,155,000,000 -4,441,000,000 -4,470,000,000 -4,282,000,000 -5,338,000,000
-2,957,000,000 -3,058,000,000 -3,005,000,000 -2,810,000,000 -3,774,000,000
-1,198,000,000 -1,383,000,000 -1,465,000,000 -1,472,000,000 -1,564,000,000
-1,897,000,000 -2,148,000,000 -1,945,000,000 -1,977,000,000 -1,842,000,000
-1,897,000,000 -2,148,000,000 -1,945,000,000 -1,977,000,000 -1,842,000,000

5,638,000,000 4,320,000,000 3,210,000,000 2,576,000,000 809,000,000

-38,000,000 1,327,000,000 1,892,000,000 496,000,000 1,987,000,000
-710,000,000 -591,000,000 -549,000,000 -630,000,000 -771,000,000
-710,000,000 -591,000,000 -549,000,000 -630,000,000 -771,000,000
-796,000,000 -729,000,000 -631,000,000 -868,000,000 -1,045,000,000
-796,000,000 -729,000,000 -631,000,000 -868,000,000 -1,045,000,000
86,000,000 138,000,000 82,000,000 238,000,000 274,000,000
15,000,000 32,000,000 -22,000,000 12,000,000 -283,000,000
15,000,000 32,000,000 -22,000,000 12,000,000 -305,000,000
15,000,000 32,000,000 -22,000,000 12,000,000 -305,000,000
22,000,000

-144,000,000 378,000,000 362,000,000 -105,000,000 84,000,000

338,000,000 684,000,000 930,000,000 687,000,000 415,000,000
-482,000,000 -306,000,000 -568,000,000 -792,000,000 -331,000,000
 801,000,000 1,508,000,000 2,101,000,000 1,219,000,000 2,957,000,000

5,600,000,000 5,647,000,000 5,102,000,000 3,072,000,000 2,796,000,000

-1,768,000,000 -2,047,000,000 -1,573,000,000 -923,000,000 -957,000,000
3,832,000,000 3,874,000,000 3,529,000,000 2,149,000,000 1,839,000,000
5,849,000,000 3,874,000,000 3,529,000,000 2,149,000,000 1,839,000,000
-69,000,000 17,000,000 34,000,000 5,000,000 -20,000,000
5,780,000,000 3,891,000,000 3,563,000,000 2,154,000,000 1,819,000,000
5,780,000,000 3,891,000,000 3,563,000,000 2,154,000,000 1,819,000,000
-3,787,000,000 -3,736,000,000 -2,616,000,000
-3,787,000,000 -3,736,000,000 -2,616,000,000
2,017,000,000
2,019,000,000 1,224,000,000
0 0 0 0 0
7,800,000,000 7,409,000,000
73,000,000 81,000,000 101,000,000 105,000,000 -100,000,000
73,000,000 81,000,000 101,000,000 105,000,000 57,000,000
73,000,000 81,000,000 101,000,000 105,000,000 57,000,000
73,000,000 81,000,000 101,000,000 105,000,000 57,000,000
-157,000,000
-157,000,000
-157,000,000
-19,895,377 -680,910,615 -18,608,000 -20,759,000 -304,238,000
-323,000,000 -261,000,000
-31,000,000 -23,000,000
-8,662,377 -3,025,615 -7,546,000 -7,964,000 -7,844,000
-9,390,000 -8,011,000 -9,011,000 -9,073,000 -10,170,000
-1,843,000 -2,874,000 -2,051,000 -3,722,000 -2,224,000
-3,287,000,000 -3,551,000,000

0.47 0.33 0.30 0.18 0.15

0.47 0.33 0.30 0.18 0.15
12,202,000,00011,968,000,00011,877,000,00011,880,000,00011,880,000,000
12,214,708,36911,968,000,00011,877,000,00011,880,000,00011,880,000,000
 TELSTRA BALANCE SHEET 2016
Total Assets 43,286,000,000
Total Current Assets 9,340,000,000
Cash, Cash Equivalents and Short Term Investments 3,550,000,000
Cash and Cash Equivalents 3,550,000,000
Cash 269,000,000
Cash Equivalents 3,281,000,000
Derivative Investment and Hedging Assets, Current 62,000,000
Inventories 557,000,000
Raw Materials, Consumables and Supplies 113,000,000
Finished Goods and Merchandise 325,000,000
Work-in-Process
Other Inventories 119,000,000
Trade and Other Receivables, Current 4,737,000,000
Trade/Accounts Receivable, Current 3,209,000,000
Gross Trade/Accounts Receivable, Current 3,343,000,000
Allowance/Adjustments for Trade/Accounts Receivable, Current -134,000,000
Other Receivables, Current 1,528,000,000
Prepayments and Deposits, Current 426,000,000
Deferred Tax Assets, Current 8,000,000
Other Current Assets
Assets Held for Sale/Discontinued Operations, Current
Total Non-Current Assets 33,946,000,000
Net Property, Plant and Equipment 20,581,000,000
Gross Property, Plant and Equipment 64,960,000,000
Properties 1,329,000,000
Other Properties and Improvements 1,329,000,000
Machinery, Furniture and Equipment 1,876,000,000
Plant and Machinery 1,876,000,000
Leased Property, Plant and Equipment
Other Property, Plant and Equipment 61,755,000,000
Accumulated Depreciation and Impairment -44,379,000,000
Accumulated Depreciation -44,379,000,000
Accumulated Depreciation of Properties -656,000,000
Accumulated Depreciation of Other Properties and Impr -656,000,000
Accumulated Depreciation of Machinery, Furniture and Equ -1,397,000,000
Accumulated Depreciation of Plant and Machinery -1,397,000,000
Accumulated Depreciation of Leased Property, Plant and Equipment
Accumulated Depreciation of Other Property, Plant and Equ -42,326,000,000
Net Intangible Assets 9,229,000,000
Gross Goodwill and Other Intangible Assets 9,229,000,000
Goodwill 1,346,000,000
Intangibles other than Goodwill 7,883,000,000
Licenses and Rights 1,869,000,000
 Other Intangible Assets 6,014,000,000
Trademarks and Patents
Research and Development
Total Long Term Investments 565,000,000
Long Term Equity Investments 171,000,000
Investments in Associates 171,000,000
Investment in Financial Assets, Non-Current
Equity Securities/Shares, Non-Current
Trading Securities/Assets, Non-Current
Other Investments, Non-Current 394,000,000
Derivative Investment and Hedging Assets, Non-Current 2,180,000,000
Trade and Other Receivables, Non-Current 1,293,000,000
Trade/Accounts Receivable, Non-Current 476,000,000
Other Receivables, Non-Current 817,000,000
Inventories, Non-Current 29,000,000
Deferred Tax Assets, Non-Current 54,000,000
Pension and Other Employee Benefits, Non-Current 15,000,000
Other Non-Current Assets
Total Liabilities 27,379,000,000
Total Current Liabilities 9,188,000,000
Payables and Accrued Expenses, Current 3,948,000,000
Trade and Other Payables, Current 3,948,000,000
Trade/Accounts Payable, Current 1,465,000,000
Other Payable, Current 2,483,000,000
Financial Liabilities, Current 2,941,000,000
Current Debt and Capital Lease Obligation 2,655,000,000
Current Debt 2,537,000,000
Bank/Credit Facilities, Current Debt 2,000,000
Notes Payable, Current Debt 648,000,000
Other Loans, Current Debt 1,887,000,000
Bank Overdraft, Current Debt
Current Portion of Long Term Debt and Capital Lease 118,000,000
Capital Lease Obligations, Current 118,000,000
Derivative and Hedging Liabilities, Current 286,000,000
Provisions, Current 1,005,000,000
Provision for Employee Entitlements, Current 913,000,000
Other Employee-Related Liabilities, Current 913,000,000
Other Provisions, Current 92,000,000
Tax Liabilities, Current 176,000,000
Provision for Tax Liabilities, Current 176,000,000
Other Current Liabilities
Deferred Liabilities, Current 1,118,000,000
Deferred Income/Customer Advances/Billings in Excess of Cost, 1,118,000,000
Liabilities Held for Sale/Discontinued Operations, Current
Total Non-Current Liabilities 18,191,000,000
 Financial Liabilities, Non-Current 15,310,000,000
Long Term Debt and Capital Lease Obligation 14,647,000,000
Long Term Debt 14,378,000,000
Bank/Institutional Loans, Non-Current 310,000,000
Other Loans, Non-Current 14,068,000,000
Capital Lease Obligations, Non-Current 269,000,000
Derivative and Hedging Liabilities, Non-Current 663,000,000
Provisions, Non-Current 300,000,000
Provision for Employee Entitlements, Non-Current 173,000,000
Pension and Other Post-Retirement Benefit Plans, Non-Current 4,000,000
Other Employee-Related Liabilities, Non-Current 169,000,000
Other Provisions, Non-Current 127,000,000
Tax Liabilities, Non-Current 1,493,000,000
Provision for Tax Liabilities, Non-Current 1,493,000,000
Payables and Accrued Expenses, Non-Current 66,000,000
Trade and Other Payables, Non-Current 66,000,000
Other Payables, Non-Current 66,000,000
Other Non-Current Liabilities
Deferred Liabilities, Non-Current 1,022,000,000
Deferred Income/Customer Advances/Billings in Excess of Cost, 1,022,000,000
Total Equity 15,907,000,000
Equity Attributable to Parent Stockholders 15,871,000,000
Paid in Capital 5,167,000,000
Capital Stock 5,167,000,000
Common Stock 5,167,000,000
Retained Earnings/Accumulated Deficit 10,642,000,000
Reserves/Accumulated Comprehensive Income/Losses 62,000,000
Capital/Share Premium Reserve -2,000,000
Other Reserves/Accum. Comp. Inc
Cumulative Foreign Exchange Translation Reserves/Accum. Comp 143,000,000
Gain/Loss from Cash Flow Hedges Reserves/Accum. Comp. Inc -93,000,000
Fixed Assets Revaluation Reserve 14,000,000
Non-Controlling/Minority Interests 36,000,000
Common Shares Issued 12,225,655,836
Common Shares Outstanding 12,225,655,836
Fiscal year ends in Jun 30 | AUD
 2017 2018 2019 2020
42,133,000,000 ,000,000 ,000,000 ,000,000
7,862,000,0007,000,0003,000,0004,000,000
938,000,000 ,000,000 ,000,000 ,000,000
938,000,000 ,000,000 ,000,000 ,000,000
212,000,000 ,000,000 ,000,000 ,000,000
726,000,000 ,000,000 ,000,000 ,000,000
21,000,000 ,000,000 ,000,000 ,000,000
893,000,000 ,000,000 ,000,000 ,000,000
45,000,000 ,000,000 ,000,000 ,000,000
448,000,000 ,000,000 ,000,000 ,000,000
400,000,000 ,000,000

5,468,000,0008,000,0002,000,0001,000,000
3,502,000,0003,000,0001,000,0008,000,000
3,635,000,0006,000,0001,000,0008,000,000
-133,000,0003,000,000
1,966,000,0005,000,0001,000,0003,000,000
531,000,000 ,000,000 ,000,000 ,000,000
11,000,000 ,000,000 ,000,000 ,000,000
95,000,000 ,000,000
121,000,000
34,271,000,000 ,000,000 ,000,000 ,000,000
21,350,000,000 ,000,000 ,000,000 ,000,000
64,312,000,000 ,000,000 ,000,000 ,000,000
1,362,000,0003,000,0005,000,0000,000,000
1,362,000,0003,000,0005,000,0000,000,000
1,963,000,0005,000,0001,000,0005,000,000
1,963,000,0005,000,0001,000,0005,000,000
3,842,000,000
60,987,000,000 ,000,000 ,000,000 ,000,000
-42,962,000,0001,000,0004,000,0007,000,000
-42,962,000,0001,000,0004,000,0007,000,000
-690,000,0002,000,0002,000,0006,000,000
-690,000,0002,000,0002,000,0006,000,000
-1,505,000,0003,000,0008,000,0007,000,000
-1,505,000,0003,000,0008,000,0007,000,000
-812,000,000
-40,767,000,0006,000,0004,000,0002,000,000
9,558,000,0000,000,0000,000,0002,000,000
9,558,000,0000,000,0000,000,0002,000,000
1,269,000,0009,000,0006,000,0005,000,000
8,289,000,0001,000,0004,000,0007,000,000
2,325,000,0005,000,0003,000,0009,000,000
 5,964,000,0006,000,0001,000,0008,000,000

486,000,0003,000,0003,000,000 ,000,000
194,000,0007,000,0008,000,000 ,000,000
194,000,0007,000,0008,000,000 ,000,000
25,000,000 ,000,000
16,000,000 ,000,000
9,000,000
292,000,000 ,000,000
1,623,000,0007,000,0003,000,0001,000,000
1,039,000,0002,000,000 ,000,0008,000,000
111,000,000 ,000,000 ,000,000 ,000,000
928,000,000 ,000,000 ,000,000 ,000,000
29,000,000 ,000,000 ,000,000 ,000,000
44,000,000 ,000,000 ,000,000 ,000,000
142,000,000 ,000,000 ,000,000 ,000,000
1,232,000,0004,000,000
27,573,000,000 ,000,000 ,000,000 ,000,000
9,159,000,0006,000,0003,000,000 ,000,000
4,189,000,0005,000,0008,000,0000,000,000
4,189,000,0005,000,0008,000,0000,000,000
1,185,000,0008,000,000 ,000,000 ,000,000
3,004,000,0007,000,0009,000,0002,000,000
2,518,000,0006,000,0009,000,0008,000,000
2,476,000,0005,000,0002,000,0004,000,000
2,369,000,0004,000,0004,000,0003,000,000
2,000,000 ,000,000 ,000,000 ,000,000
1,457,000,000 ,000,000 ,000,000 ,000,000
908,000,000 ,000,0001,000,0006,000,000
2,000,000 ,000,000
107,000,000 ,000,000 ,000,000 ,000,000
107,000,000 ,000,000 ,000,000 ,000,000
42,000,000 ,000,000 ,000,000 ,000,000
1,055,000,000 ,000,000 ,000,000 ,000,000
865,000,000 ,000,000 ,000,000 ,000,000
865,000,000 ,000,000 ,000,000 ,000,000
190,000,000 ,000,000 ,000,000 ,000,000
161,000,000 ,000,000 ,000,000 ,000,000
161,000,000 ,000,000 ,000,000 ,000,000
1,431,000,0001,000,000
1,236,000,0007,000,000 ,000,000
1,236,000,0007,000,000 ,000,000
79,000,000
18,414,000,000 ,000,000 ,000,000 ,000,000
15,344,000,000 ,000,000 ,000,000 ,000,000
14,808,000,000 ,000,000 ,000,000 ,000,000
14,574,000,000 ,000,000 ,000,000 ,000,000
707,000,000 ,000,000 ,000,000 ,000,000
13,867,000,000 ,000,000 ,000,000 ,000,000
234,000,000 ,000,000 ,000,0007,000,000
536,000,000 ,000,000 ,000,000 ,000,000
300,000,000 ,000,000 ,000,000 ,000,000
166,000,000 ,000,000 ,000,000 ,000,000
6,000,000 ,000,000 ,000,000 ,000,000
160,000,000 ,000,000 ,000,000 ,000,000
134,000,000 ,000,000 ,000,000 ,000,000
1,539,000,0004,000,0009,000,0005,000,000
1,539,000,0004,000,0009,000,0005,000,000
70,000,000 ,000,000 ,000,000 ,000,000
70,000,000 ,000,000 ,000,000 ,000,000
70,000,000 ,000,000 ,000,000 ,000,000
1,006,000,0002,000,000
1,161,000,0002,000,000 ,000,000
1,161,000,0002,000,000 ,000,000
14,560,000,000 ,000,000 ,000,000 ,000,000
14,541,000,000 ,000,000 ,000,000 ,000,000
4,421,000,0008,000,0007,000,0001,000,000
4,421,000,0008,000,0007,000,0001,000,000
4,421,000,0008,000,0007,000,0001,000,000
10,225,000,000 ,000,000 ,000,000 ,000,000
-105,000,0007,000,0008,000,000 ,000,000
-4,000,0007,000,0007,000,0007,000,000
70,000,000 ,000,000
34,000,000 ,000,000 ,000,000 ,000,000
-143,000,0001,000,0009,000,0007,000,000
8,000,000 ,000,000
19,000,0003,000,0009,000,000 ,000,000
11,893,297,855 ,297,855 ,297,855 ,297,855
11,893,297,855 ,297,855 ,297,855 ,297,855
 TELSTRA CASH FLOW STATEMENT 2016
Cash Flows from/Used in Operating Activities, Direct 8,133,000,000
Net Cash Flow from Continuing Operating Activities, Direct 8,133,000,000
Cash Receipts from Operating Activities, Direct 31,345,000,000
Receipts from Customers, Direct 31,163,000,000
Receipts from Government Grants, Direct 182,000,000
Cash Payments from Operating Activities, Direct -23,212,000,000
Payments to Suppliers for Goods and Services, Direct -21,179,000,000
Taxes Paid, Direct -1,860,000,000
Other Cash Payments from Operating Activities, Direct -173,000,000
Cash Flow from Investing Activities -2,207,000,000
Cash Flow from Continuing Investing Activities -2,207,000,000
Purchase/Sale and Disposal of Property, Plant and Equipment, Net -2,581,000,000
Purchase of Property, Plant and Equipment -3,051,000,000
Sale and Disposal of Property, Plant and Equipment 470,000,000
Purchase/Sale of Intangibles, Net -1,143,000,000
Purchase of Intangibles -1,143,000,000
Sale of Intangibles
Purchase/Sale of Business, Net 1,248,000,000
Sale of Business 1,340,000,000
Purchase/Acquisition of Business -92,000,000
Purchase/Sale of Investments, Net -49,000,000
Purchase of Investments -105,000,000
Sale of Investments 56,000,000
Dividends Received/Paid, CFI 82,000,000
Interest Received/Paid, CFI 131,000,000
Other Investing Cash Flow 105,000,000
Payment for Loan Granted and Repayments Received, Net
Cash Advances and Loans Made to Other Parties
Cash Receipts from Repayment of Advances and Loans Made to Other Parties
Cash Flow from Financing Activities -3,777,000,000
Cash Flow from Continuing Financing Activities -3,777,000,000
Issuance of/Repayments for Debt, Net 1,033,000,000
Issuance of/Repayments for Long Term Debt, Net 1,033,000,000
Proceeds from Issuance of Long Term Debt 4,987,000,000
Repayments for Long Term Debt -3,954,000,000
Issuance of/Repayments for Lease Financing -101,000,000
Cash Dividends and Interest Paid -4,647,000,000
Cash Dividends Paid -3,787,000,000
Interest Paid, CFF -860,000,000
Other Financing Cash Flow 6,000,000
Issuance of/Payments for Common Stock, Net -68,000,000
Payments for Common Stock -68,000,000
Proceeds from Issuance of Common Stock
Cash and Cash Equivalents, End of Period 3,550,000,000
Change in Cash 2,149,000,000
Effect of Exchange Rate Changes 5,000,000
Cash and Cash Equivalents, Beginning of Period 1,396,000,000
 2017 2018 2019 2020
7,775,000,000 8,606,000,000 6,683,000,000 7,010,000,000
7,775,000,000 8,606,000,000 6,683,000,000 7,010,000,000
31,523,000,000 32,075,000,000 30,387,000,000 29,659,000,000
31,288,000,000 31,901,000,000 30,231,000,000 29,506,000,000
235,000,000 174,000,000 156,000,000 153,000,000
-23,748,000,000-23,469,000,000-23,704,000,000-22,649,000,000
-21,997,000,000-21,948,000,000-22,748,000,000-21,895,000,000
-1,751,000,000 -1,521,000,000 -956,000,000 -754,000,000

-4,279,000,000 -3,911,000,000 -3,615,000,000 -2,976,000,000

-4,279,000,000 -3,911,000,000 -3,615,000,000 -2,976,000,000
-3,046,000,000 -2,775,000,000 -2,589,000,000 -2,065,000,000
-3,725,000,000 -3,571,000,000 -3,235,000,000 -2,341,000,000
679,000,000 796,000,000 646,000,000 276,000,000
-1,596,000,000 -1,361,000,000 -1,135,000,000 -1,101,000,000
-1,596,000,000 -1,361,000,000 -1,135,000,000 -1,101,000,000

-63,000,000 -7,000,000 -73,000,000 58,000,000

49,000,000 42,000,000 58,000,000
-63,000,000 -56,000,000 -115,000,000
203,000,000 -58,000,000 -41,000,000 -140,000,000
-82,000,000 -82,000,000 -47,000,000 -155,000,000
285,000,000 24,000,000 6,000,000 15,000,000
10,000,000 9,000,000 33,000,000 83,000,000
109,000,000 65,000,000 33,000,000 26,000,000
104,000,000 216,000,000 157,000,000 163,000,000

-6,104,000,000 -5,015,000,000 -3,088,000,000 -4,138,000,000

-6,104,000,000 -5,015,000,000 -3,088,000,000 -4,138,000,000
139,000,000 -953,000,000 32,000,000 -1,086,000,000
139,000,000 -953,000,000 32,000,000 -1,086,000,000
4,710,000,000 4,195,000,000 4,669,000,000 5,476,000,000
-4,571,000,000 -5,148,000,000 -4,637,000,000 -6,562,000,000
-131,000,000 -120,000,000 -79,000,000 -993,000,000
-4,590,000,000 -3,926,000,000 -3,040,000,000 -2,738,000,000
-3,736,000,000 -3,150,000,000 -2,259,000,000 -1,926,000,000
-854,000,000 -776,000,000 -781,000,000 -812,000,000
-20,000,000 -16,000,000 -1,000,000 679,000,000
-1,502,000,000
-1,502,000,000
 936,000,000 620,000,000 604,000,000 499,000,000
-2,608,000,000 -320,000,000 -20,000,000 -104,000,000
-6,000,000 4,000,000 4,000,000 -1,000,000
3,550,000,000 936,000,000 620,000,000 604,000,000
Date
Telstra Adjusted Closing
ASX Adjusted
Monthly Closing
Price Monthly
% Telstra
price
Daily Return% ASX Daily Return
7/1/2014 4.209248 28.192215 - -
8/1/2014 4.262917 29.204916 1.28% 3.59%
9/1/2014 4.172613 27.935139 -2.12% -4.35%
10/1/2014 4.432416 28.721115 6.23% 2.81%
11/1/2014 4.479654 28.729095 1.07% 0.03%
12/1/2014 4.700094 29.319643 4.92% 2.06%
1/1/2015 5.117355 30.43688 8.88% 3.81%
2/1/2015 5.015008 35.22506 -2.00% 15.73%
3/1/2015 5.08348 33.046436 1.37% -6.18%
4/1/2015 5.01903 34.355877 -1.27% 3.96%
5/1/2015 5.010973 33.932034 -0.16% -1.23%
6/1/2015 4.946524 32.521938 -1.29% -4.16%
7/1/2015 5.228492 36.230576 5.70% 11.40%
8/1/2015 4.648444 32.146999 -11.09% -11.27%
9/1/2015 4.641908 30.875467 -0.14% -3.96%
10/1/2015 4.468146 34.456089 -3.74% 11.60%
11/1/2015 4.435049 34.598198 -0.74% 0.41%
12/1/2015 4.641908 35.492619 4.66% 2.59%
1/1/2016 4.658456 35.400669 0.36% -0.26%
2/1/2016 4.344031 35.133171 -6.75% -0.76%
3/1/2016 4.410226 34.631634 1.52% -1.43%
4/1/2016 4.569972 37.431152 3.62% 8.08%
5/1/2016 4.76607 38.098797 4.29% 1.78%
6/1/2016 4.740493 39.168751 -0.54% 2.81%
7/1/2016 4.919541 42.541245 3.78% 8.61%
8/1/2016 4.484711 43.782383 -8.84% 2.92%
9/1/2016 4.544816 41.223061 1.34% -5.85%
10/1/2016 4.369341 41.147755 -3.86% -0.18%
11/1/2016 4.430758 42.483559 1.41% 3.25%
12/1/2016 4.474627 43.426472 0.99% 2.22%
1/1/2017 4.386889 43.557434 -1.96% 0.30%
2/1/2017 4.228961 44.727341 -3.60% 2.69%
3/1/2017 4.08858 44.072544 -3.32% -1.46%
4/1/2017 3.825555 45.172787 -6.43% 2.50%
5/1/2017 3.988731 45.529034 4.27% 0.79%
6/1/2017 3.898078 47.746712 -2.27% 4.87%
7/1/2017 3.716771 46.579983 -4.65% -2.44%
8/1/2017 3.326964 48.699684 -10.49% 4.55%
9/1/2017 3.296865 46.695763 -0.90% -4.11%
10/1/2017 3.344098 48.990982 1.43% 4.92%
11/1/2017 3.240185 51.858921 -3.11% 5.85%
12/1/2017 3.429117 49.78965 5.83% -3.99%
 1/1/2018 3.466904 49.68074 1.10% -0.22%
2/1/2018 3.164612 52.993389 -8.72% 6.67%
3/1/2018 2.996283 50.878742 -5.32% -3.99%
4/1/2018 3.034452 54.209366 1.27% 6.55%
5/1/2018 2.671844 56.058567 -11.95% 3.41%
6/1/2018 2.500082 59.535061 -6.43% 6.20%
7/1/2018 2.710013 60.737053 8.40% 2.02%
8/1/2018 2.958113 62.54002 9.15% 2.97%
9/1/2018 3.07787 58.860107 4.05% -5.88%
10/1/2018 2.971737 55.621727 -3.45% -5.50%
11/1/2018 2.827009 56.674564 -4.87% 1.89%
12/1/2018 2.749821 56.345554 -2.73% -0.58%
1/1/2019 3.000682 59.889477 9.12% 6.29%
2/1/2019 3.019979 65.586067 0.64% 9.51%
3/1/2019 3.233905 65.651878 7.08% 0.10%
4/1/2019 3.29235 71.191437 1.81% 8.44%
5/1/2019 3.555348 72.38591 7.99% 1.68%
6/1/2019 3.750161 78.711922 5.48% 8.74%

Sources:
https://au.finance.yahoo.com/quote/TLS.AX/history?period1=1404086400&period2=1561852800&interval=
https://au.finance.yahoo.com/quote/ASX.AX/history?period1=1402531200&period2=1560297600&interval
ly Return Cost of Equity (Ke)
Beta Equity using Yahoo Finance D 0.15
Market Risk Premium (Given) 5.96%
Australia Bond 5 Year Yield 0.37%
Cost of Equity (Ke) 1.23%

Debt to Equity and Un

Years 2015
Debt 27,379,000,000
Equity 15,907,000,000
Debt/Equity (Leverage) 1.72
Average Debt to Equity (5 Year) 1.87
Tax Rate 31.57%
Average Tax Rate 32.58%
Unlevered Beta 0.06

Jensen's Alpha
Expected Return of Telstra 1.23%
Risk free Rate 0.37%
Beta 0.15
Expected Market Return 5.96%
Jensen's Alpha 0.054%

Tax Rate and Synthetic

Effectie Tax Rate 30%

Year 2015
Operating Income (EBIT) 5,638,000,000
Interest Expense 796000000
Interest Coverage Ratio 7.08
Average Interest Coverage Ratio 4.37
Tesltra Firm High Market Cap Firm
Range of Ratio 4.25-5.5
Credit Rating A
Credit Spread 1.80%

Weighted Aerage Cost of Capital of Telstra

Share Price at end of 2019 $3.77
Outstanding Shares 11,880,000,000
Market value of Equity $44,787,600,000.00
 Cost of Equity 1.23%
Book value of Debt 29,256,000,000
Interest Expense 1045000000
Cost of Debt 3.57%
Tax Rate 30%
After Tax Cost of Debt 2.50%
Debt% 39.51%
Equity % 60.49%
WACC 1.73%

=1561852800&interval=1d&filter=history&frequency=1d
=1560297600&interval=1d&filter=history&frequency=1d
 Source:
https://www.bloomberg.com/markets/rates-bonds/government-bonds/australia

Debt to Equity and Unlevered Beta

2016 2017 2018 2019
27,573,000,000 27,856,000,000 28,059,000,000 29,256,000,000
14,560,000,000 15,014,000,000 14,530,000,000 15,147,000,000
1.89 1.86 1.93 1.93

36.25% 30.83% 30.05% 34.23%

Tax Rate and Synthetic Credit Rating Source:

https://www.telstra.com.a

2016 2017 2018 2019

4,320,000,000 3,210,000,000 2,576,000,000 809,000,000
729000000 631000000 868000000 1045000000
5.93 5.09 2.97 0.77

Source;
http://pages.stern.nyu.ed

Source:
https://au.finance.yahoo.com/quote/TLS.AX/history?period1=1568278334&period2=1599900734&interval=
https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf%20F/2019-Annual-Report.PDF

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/valquestions/syntrating.htm

d2=1599900734&interval=1mo&filter=history&frequency=1mo
 EARNINGS AND CASHFLOW
Operating Income in 201 809,000,000
Effectie Tax Rate 30%
NOPAT AUD 566,300,000
Total Invested Capital AUD 44,403,000,000
ROIC 1.28%
WACC 1.73%

Net Profit 1,839,000,000

Total Equity 15,147,000,000
ROE 12.14%
CAPM (cost of Equity) 1.23%

EVA AUD (203,911,890)

Equity EVA AUD 18,191,448
 FINANCING SOURCES
Tax Rate of Telstra 30%
Tax Rate of other companies 27.5% to 30%

Jensen's Alpha 0.00054

Jensen's Alpha is positive

Year 2019
Interest Coverage Ratio 0.774
Synthetic Bond Rating A Sources:
Market Price per share 3.771 https://au.finance.yahoo.com/qu
Book alue per share 1.275
Telstra's Price to Book Ratio 2.957
Competitor's Price to Book Ratio (3U Holding) 1.340 https://nz.finance.yahoo.com/quo
Telstra's CAPEX-Depr/Sales Ratio 13.072%
Competitor's CAPEX-depr/sales ratio (3U Holding) 17.823% https://www.wsj.com/market-data
u.finance.yahoo.com/quote/TLS.AX/history?period1=1442102400&period2=1599955200&interval=1mo&filter=history

z.finance.yahoo.com/quote/UUU.DE/key-statistics

ww.wsj.com/market-data/quotes/DE/XMUN/UUU/financials/annual/income-statement
rval=1mo&filter=history&frequency=1mo
 DIVIDEND POLICY
Years 2015 2016
Dividend Per Share 0.31 0.31
Earning per share 0.47 0.33
Payout Ratio 65.96% 93.94%
Price per share (year end4.6585 4.3869
Dividend Yield 6.65% 7.07%

Total Paid in Dividends AUD 3,782,620,000 AUD 3,710,080,000

NOPAT AUD 3,946,600,000 AUD 3,024,000,000
Changes in NWC AUD (152,000,000) AUD (1,145,000,000)
CAPEX -2,207,000,000 -4,279,000,000
Net Borrowings -3,777,000,000 -6,104,000,000
FCFE AUD (2,189,400,000) AUD (8,504,000,000)
Total Dividends/FCFE -172.77% -43.63%
Cuurent Sources:
3U Holdings Payout Ratio32% https://simplywall.st/news/3u-holding-ag-etruu
3U Holdings Dividend Yie2.37% https://www.boerse-frankfurt.de/equity/3u-hold
Industry Payout Ratio 91.71% https://www.investing.com/equities/telstra-corpora
Industry Diidend Yield 4.62% https://www.investing.com/equities/telstra-corpora
DIVIDEND POLICY
2017 2018 2019
0.31 0.22 0.16
0.30 0.18 0.15
103.33% 122.22% 106.67% Source;
3.4669 3.0007 3.7707 https://au.finance.yahoo.com/
8.94% 7.33% 4.24%

AUD 3,681,870,000 AUD 2,613,600,000 AUD 1,900,800,000

AUD 2,247,000,000 AUD 1,803,200,000 AUD 566,300,000
AUD (594,000,000) AUD (1,656,000,000) AUD (1,904,000,000)
-3,911,000,000 -3,615,000,000 -2,976,000,000
-5,015,000,000 -3,088,000,000 -4,138,000,000
AUD (7,273,000,000) AUD (6,555,800,000) AUD (8,451,700,000)
-50.62% -39.87% -22.49%

all.st/news/3u-holding-ag-etruuu-looks-interesting-and-its-about-to-pay-a-dividend/#:~:text=Dividends%20are%20typi
erse-frankfurt.de/equity/3u-holding-ag
sting.com/equities/telstra-corporation-limited.-ratios
sting.com/equities/telstra-corporation-limited.-ratios
u.finance.yahoo.com/quote/TLS.AX/history?period1=1442102400&period2=1599955200&interval=1mo&filter=history

ends%20are%20typically%20paid%20from,at%20just%2032%25%20of%20profit.
rval=1mo&filter=history&frequency=1mo
 Two-Stage FCFF Discount Model

Two-Stage FCFF Discount Mode

MODEL INPUTS (as of June 2019

Current EBIT =
Current Interest Expense =
Current Capital Spending
Current Depreciation & Amort'n =
Tax Rate on Income =
Current Revenues =
Current Non-cash Working Capital =
Chg. Working Capital =
Cash and Marketable Securities
Value of equity options issued by firm =
Book Value of Debt =
Book Value of Equity =

Weights on Debt and Equity

Is the firm publicly traded ?

Page 29
 Two-Stage FCFF Discount Model

If yes, enter the market price per share (At end of June 2019) =
& Number of shares outstanding =
& Market Value of Debt =

If no, do you want to use the book value debt ratio ?

If no, enter the debt to capital ratio to be used =

Enter length of extraordinary growth period =

Do you want to change the debt ratio in the stable growth period?
If yes, enter the debt ratio for the stable growth period =

Costs of Components
Do you want to enter cost of equity directly?
If yes, enter the cost of equity =
If no, enter the inputs to the cost of equity
Beta of the stock =
Riskfree rate=
Risk Premium=

Enter the cost of debt for cost of capital calculation

Earnings Inputs
Do you want to use the historical growth rate?
If yes, enter EBIT from four years ago =

Do you have an outside estimate of growth ?

If yes, enter the estimated growth:

Do you want to calculate the growth rate from fundamentals?

The following will be the inputs to the fundamental growth formulation:

Page 30
 Two-Stage FCFF Discount Model

ROC = 4.21%
Reinv. Rate = -128.83%
Do you want to change any of these inputs for the high growth period?
If yes, specify the values for these inputs (Please enter all variables)
ROC = 1.28%
Reinv. Rate = 100.00%

Specify weights to be assigned to each of these growth rates:

Historical Growth Rate =
Outside Prediction of Growth =
Fundamental Estimate of Growth =

Enter growth rate in stable growth period?

Beta
Will the beta to change in the stable period?
If yes, enter the beta for stable period =

Will the cost of debt change in the stable period?

If yes, enter the new cost of debt =

Capital Spending, Depreciation & Working Capital

Do you want all these items to grow at the same rate as earnings ?
If not, enter the growth rates for each of the following items:
Capital Spending
High Growth 4%
Stable Growth Do not enter

Do you want to keep the current fraction of working capital to revenues?

Specify working capital as a percent of revenues:

Capital Spending and Depreciation in Stable Growth

Page 31
 Two-Stage FCFF Discount Model

Is capital spending to be offset by depreciation in stable period?

Do you want your reinvestment to be computed from fundamentals?
Return on captial in perpetuity
If no, do you want to enter capital expenditure as % of depreciation

PROGRAM OUTPUTS
Cost of Equity =
Equity/(Debt+Equity ) =
After-tax Cost of debt =
Debt/(Debt +Equity) =
Cost of Capital =

Current EBIT * (1 - tax rate) =

- (Capital Spending - Depreciation)
- Change in Working Capital
Current FCFF

Growth Rate in Earnings per share

Page 32
 Two-Stage FCFF Discount Model

Historical Growth =
Outside Estimates =
Fundamental Growth =
Weighted Average

Page 33
 Two-Stage FCFF Discount Model

Growth Rate in capital spending, depreciation and working capital

Growth rate in capital spending =

Page 34
 Two-Stage FCFF Discount Model

Growth rate in depreciation =

Growth rate in revenues =

Working Capital as percent of revenues =

The FCFE for the high growth phase are shown below (upto 10 years)

EBIT * (1 - tax rate)

- (CapEx-Depreciation)
-Chg. Working Capital
Free Cashflow to Firm
Present Value

Growth Rate in Stable Phase =

FCFF in Stable Phase =
Cost of Equity in Stable Phase =
Equity/ (Equity + Debt) =
AT Cost of Debt in Stable Phase =
Debt/ (Equity + Debt) =
Cost of Capital in Stable Phase =
Value at the end of growth phase =

Present Value of FCFF in high growth phase =

Present Value of Terminal Value of Firm =
Value of the firm =
Cash and Marketable Securities =
Market Value of outstanding debt =
Market Value of Equity =
Value of Equity options issued by the company =
Market Value of Equity/share =

Page 35
 Two-Stage FCFF Discount Model

o-Stage FCFF Discount Model

DEL INPUTS (as of June 2019)

2,576,000,000
$868,000,000.00
$3,615,000,000.00
$4,282,000,000.00
30.00%
25,259,000,000
($2,250,000,000.00)
($1,656,000,000.00) Last year
604,000,000
$0.00
28,059,000,000 27,856,000,000
14,530,000,000 15,014,000,000

Yes ( Yes or No)

Page 36
 Two-Stage FCFF Discount Model

$3.75 (in currency)

11,880,000,000 (in #)
$19,500,000,000.00 ( in currency)

No (Yes or No)
39.51% (in percent)

4 (in years)

No

Yes (Yes or No)

1.23% (in percent)

0.15
0.37% (in percent)
5.96% (in percent)

2.50% ( in percent)

Yes (Yes or No)

5,638,000,000 (in currency)

No (Yes or No)
2.00% (in percent)

Yes (Yes or No)

Page 37
 Two-Stage FCFF Discount Model

Yes (Yes or No)

0.00% (in percent)

0.00% (in percent)
100.00% (in percent)

0.20% (in percent)

No (Yes or No)
1.00

No (Yes or No)
( in percent)

Yes (Yes or No)

Depreciation Revenues
4% 4% (in percent)
Do not enter 0% (in percent)

No (Yes or No)
5% (in percent)

Page 38
 Two-Stage FCFF Discount Model

No (Yes or No)
Yes
12%
120% (in percent)

PROGRAM OUTPUTS
1.23%
69.56%
1.75%
30.44%
1.39%

$1,803,200,000.00
($667,000,000.00)
($1,656,000,000.00)
$4,126,200,000.00

Growth Rate Weight

Page 39
 Two-Stage FCFF Discount Model

-14.50% 20.00%
2.00% 20.00%
1.28% 80.00%
-1.48%

Page 40
 Two-Stage FCFF Discount Model

High Growth Stable Growth

-1.48% Do not enter

Page 41
 Two-Stage FCFF Discount Model

-1.48% Do not enter

-1.48% 0.50%

5.00% (in percent)

1 2 3 4
$1,776,516,505.25 $1,750,227,869.02 $1,724,328,248.26 $1,698,811,886.36
($657,129,829.75) ($647,405,716.86) ($637,825,499.99) ($628,387,049.80)
($18,688,952.81) ($18,412,396.36) ($18,139,932.37) ($17,871,500.25)
$2,452,335,287.80 $2,416,045,982.24 $2,380,293,680.62 $2,345,070,436.42
$2,418,680,816.35 $2,350,188,088.00 $2,283,634,951.60 $2,218,966,481.36

0.20%
$1,674,168,871.26
1.23%
69.56%
1.75%
30.44%
1.39%
$140,516,524,990.76

$9,271,470,337.31
$132,960,381,142.51
$142,231,851,479.82
604,000,000
$19,500,000,000.00
$123,335,851,479.82
$0.00
$10.38

Page 42
 Two-Stage FCFF Discount Model

Terminal Year
$1,702,209,510.14
$22,091,452.79
$5,949,186.09
$1,674,168,871.26

Page 43
 Two Stage Dividend Discount Model
Current EPS (June 2019) = 0.18 Length of growth stage (no more than 10
Current Dividends/Share (June 2019)= $0.16 High growth rate =
Discount Rate = 1.23% Stable growth rate =
Payout ratio in stable phase 110.00%

High Growth Phase

Year 1 2 3 4
Growth Rate -31.40% -31.40% -31.40% -31.40%
EPS $0.12 $0.08 $0.06 $0.04
Payout Ratio 88.89% 88.89% 88.89% 88.89%
Dividends/Share $0.11 $0.08 $0.05 $0.04
Present Value $0.11 $0.07 $0.05 $0.03

Price at the end of high growth stage = $0.75

Present value of dividends in high growth phase = $0.29
Present value of terminal phase = $0.70

Intrinsic Value = $0.99

 5
-31.40%
-20%

5
-31.40%
$0.03
88.89%
$0.02
$0.02
Sources:
https://www.gurufocus.com/term/dividend_growth_3y/TLSYY/3-Year-Dividend-Growth-Rate/Telstra-Corp-Ltd#:~:text=During%20the%20pas
https://www.gurufocus.com/term/dividend_growth_3y/TLSYY/3-Year-Dividend-Growth-Rate/Telstra-Corp-Ltd#:~:text=During%20the%20pas
20%2D21.60%25%20per%20year.
20%2D21.60%25%20per%20year.
 PE APPROACH Source:
Industry Median PE Ratio 19.6 https://www.investing.com/equities/telstra-co
Telstra Current EPS 0.18
Intrinsic value per share 3.528

RECONILIATION
FCFF 2 STAGE $10.38
DDM 2 STAGE $0.87
PE APPROACH 3.528
Average Intrinsic value per share $4.93
CURRENT MARKET PRICE PER SHARE $3.75
Difference ($1.18)
ing.com/equities/telstra-corporation-limited.-ratios
 VALUTATION OF REAL OPTIONS
Years 15
Investment in Millions $ 2,900
PV of Cash Flows in Millions $ 2,800
Value of the Project without Real Option $ (100)

Inputs of Model
PV of Cash Flows in Millions $2,800.00
Annualized standard deviation 79.91%
Investment in Millions $2,900.00
Years of Project 15

Risk free rate 0.37%

Output of Model
Stock Price= $2,800.00
Strike Price= $2,900.00
Expiration (in years) = 15

T.Bond rate= 0.37%

Variance= 0.6385
Annualized dividend yield= 4.24%

d1 = 1.3484
N(d1) = 0.9112

d2 = -1.7465
N(d2) = 0.0404

Value of Option to Delay = $1,239.36