Telstra Corporation Limited

ACN 051 775 556

ABN 33 051 775 556

29 March 2011 The Manager Company Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000

Office of the Company Secretary Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA General Enquiries 08 8308 1721 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT Dear Sir or Madam Sensis Investor Briefing – media release and presentation

In accordance with the Listing Rules, I enclose the following for release to the market: 1. Sensis media release;

2. A presentation to be delivered by Bruce Akhurst, Chief Executive Officer Sensis, at a

Sensis investor briefing to be held today. Regards

Carmel Mulhern Company Secretary

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Sensis strategy points to digital as key to future growth 29 March 2011: Sensis CEO Mr Bruce Akhurst today outlined the company’s strategy for long term profitable growth, backed by a new range of digital marketing products and solutions developed to specifically meet the needs of the Australian small business sector. Sensis will help drive even more customers to their businesses by harnessing the power of digital marketing. “The marketing and advertising environment confronting small businesses today is totally different to what it has been in the past. Gone are the days where a local business owner wanting to advertise their business would simply advertise in the Yellow Pages, paint contact details on their company car and print business cards. “The explosion of technology and advertising channels, and the popularity of digital devices, has created a complex digital world that small businesses must be part of to ensure they are found by customers looking for their services. “I am genuinely excited by the direction we’re taking and the long term opportunities available to Sensis and our customers. We will leverage our unique strengths including an extensive, loyal customer base; the capability, knowledge and local on-the-ground presence of our salesforce; unrivalled local business content and our integrated multi-platform publishing capabilities. We will deliver a superior value proposition to our customers that is tailored, frequently adjusted to meet their needs and measured by return-on-investment reporting.” Mr Akhurst said Sensis had been investing in this business evolution for more than two years now to ensure it was in a position to offer the suite of solutions to solve this digital dilemma for Australian businesses. “We re-engineered our IT systems and processes to ensure we had the flexibility to remain competitive in the digital world and deliver increased business leads to our customers across the multiple platforms consumers are now searching. “We have also been busy launching a range of new mobile sites and applications. These have built on our already strong digital position, as Australia’s largest locally owned digital media company. In fact, these new services have helped us grow Yellow Pages digital usage by 50% over the last year

1.”

Throughout Sensis’ 2011 selling cycle, Yellow Pages customers will have a totally new experience. Key aspects of Sensis’ strategy in 2011 to deliver increased customer value will include:

More targeted and simplified bundled customer solutions offering greater value including the Sensis Priority Advertising Network and SiteSmart bundle;

New product offerings to connect businesses with customers in new ways such as the Yellow Pages iPad app and YellowPagesOffers.com.au;

More sophisticated tailored reporting mechanisms to ensure small business can measure their performance and return on investment (ROI);

Extended small businesses presence across digital media through agreements with leading industry players including Google, Bing and Yahoo;

Increased accessibility of customers content on yellowpages.com.au to developers by launching an application programming interface (API); and

Bolt on acquisitions to provide customers with more ways to generate leads for their businesses such as the recently acquired Quotify.com.au - one of Australia’s largest providers of request for quote services.

1 Omniture site catalyst avg monthly visits Dec QRT 2010 – Dec QRT 2009

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While Mr Akhurst noted the Yellow Pages print directory still had a valuable role to play and would remain a key source of competitive advantage for the company, he acknowledged the business was experiencing trends in line with the industry globally. “The Yellow Pages print books continue to be used more than 3.4m times per week

2 and continue to be a

highly accountable generator of real business leads to our customers, but we recognise the shift to digital is likely to continue. “Our print directories remain a powerful point of differentiation for advertisers. Sensis’ difference is that we offer advertisers a simple way to be found in many different products and across multiple channels. This includes print, which represents millions of searches every week that are unique to Yellow Pages. “As we commence our selling cycle for 2011 and execute with excellence, key success factors will include growing customer numbers, uptake in digital products and new bundles sold, and increasing total digital sales and customer satisfaction,” concluded Mr Akhurst.

-ends-

About Sensis: Sensis helps Australians find, buy and sell. Our integrated network of local search and digital marketing solutions helps make marketing easy and delivers real, measurable business leads to Australian businesses. Sensis’ multichannel network includes Yellow Pages®, White Pages®, the 1234 and 12456 Call Connect voice services, Whereis® digital mapping solutions, the Sensis Digital Media advertising business, and request-for-quote service quotify.com.au. This increasingly diverse network spans print, online, voice, mobile, iPhone, iPad, Android, Telstra’s T-Hub and satellite navigation, and information can also be shared from online to mobile and social networking sites. Sensis helps ensure our advertisers are found by more customers than ever by managing their presence across a growing number of advertising platforms including search engines like Google, Bing and Yahoo!. For further product and solution information you can also visit: Yellow Pages advertising hub and customer centre - http://www.yellowadvertising.com.au Yellow Pages® iPad - http://itunes.apple.com/us/app/yellow-pages-australia-for/id424516241 Yellow Pages® Offers - http://www.yellowpagesoffers.com.au Sensis Developer Centre - http://developers.sensis.com.au Sensis® Priority Advertising Network - http://www.sensispriority.com.au Sensis SiteSmart™ – http://www.yellowadvertising.com.au/products/online/sitesmart Sensis ClickManager™ - http://www.yellowadvertising.com.au/products/online/click-manager Quotify - http://www.quotify.com.au Yellow Pages® You Tube Channel: http://www.youtube.com/user/yellowpagesonline?blend=1&ob=5

Media enquiries: Prue Deniz – 0438 588 460 or Danielle Horan – 0409 861 645

2 Roy Morgan Single Source Australian Sep 2010 – Base: Australians 14+

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Telstra  Corpora,on:  investor.rela,ons@team.telstra.com  

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Marke,ng  Made  Easy™  Sensis’  strategy  in  the  evolving  adver,sing  world  

Page  1  

Bruce  Akhurst,  Sensis  Chief  Execu,ve  Officer  

Disclaimer  

Page  2  

These  presenta,ons  include  certain  forward-­‐looking  statements  that  are  based  on  informa,on  and  assump,ons  known  to  date  and  are  subject  to  various  risks  and  uncertain,es.  Actual  results,  performance  or  achievements  could  be  significantly  different  from  those  expressed  in,  or  implied  by,  these  forward-­‐looking  statements.  Such  forward-­‐looking  statements  are  not  guarantees  of  future  performance  and  involve  known  and  unknown  risks,  uncertain,es  and  other  factors,  many  of  which  are  beyond  the  control  of  Sensis,  which  may  cause  actual  results  to  differ  materially  from  those  expressed  in  the  statements  contained  in  these  presenta,ons.    

All  forward-­‐looking  figures  in  this  presenta,on  are  unaudited  and  based  on  A-­‐IFRS.  Certain  figures  may  be  subject  to  rounding  differences.  All  market  share  informa,on  in  this  presenta,on  is  based  on  management  es,mates  based  on  internally  available  informa,on  unless  otherwise  indicated.  All  amounts  are  in  Australian  Dollars  unless  otherwise  stated.  

®  ™  Registered  trademark  and  trademark  of    Telstra  Corpora,on  Ltd.  Citysearch®  and  Citysearch  logo  are  registered  trade  marks  of  Citysearch  Australia  Pty  Ltd  .  Apple  is  a  trademark  of  Apple  Inc,  registered  in  the  US  and  other  countries.  iPhone  and  iPad  are  trademarks  of  Apple  Inc.  Other  trademarks  are  the  property  of  their  respec,ve  owners.    

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Telstra  Corpora,on:  investor.rela,ons@team.telstra.com  

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Summary  

We  are  now  a  digital-­‐led  business  

Already  selling  into  high-­‐growth  digital  opportuni,es  

Uniquely  posi,oned  to  drive  adver,ser  ROI  and  long  term,  profitable  growth  

Page  3  

Local  search  leaders  with  strong  SME  support  

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Leading  brands  helping  you  find,  buy  and  sell   Well  penetrated  across  most  sectors1  

1:  Sensis  Business  Index  SME  Adver,sing  Study,  2010  

9% 20% 22% 25% 25% 25% 25%

31% 31% 31%

35% 39% 40% 40% 42%

48%

Agriculture,  Forestry,  Fishery Cultural  &  Recrea,onal

Mining Educa,on

Accom.,  Cafe,  Restaurant Finance  and  Insurance

Communica,on Retail  Trade

Property  &  Business Personal  &  Other

Transport  &  Storage Manufacturing

Wholesale  trade Electricity,  Gas  &  Water

Construc,on Health  &  Community

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Telstra  Corpora,on:  investor.rela,ons@team.telstra.com  

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Providing  a  highly  valued  service  to  Australia’s  SMEs  

Page  5  

“Without  that  Yellow  Pages  adver,sing  our  business  would  stagnate  and  die.    I’ve  done  an  analysis  of  where  people  come  from  and  52%  of  our  new  clients  come  from  Yellow  Pages.”  Chris,  Micro  Excava/ons  

“I  would  probably  say  in  excess  of  50%  of  my  phone  calls  are  coming  from  Yellow  Pages.”  Anthony,  Car  Mobile  Mechanics  

“Yellow  Pages  is  an  integral  part  of  our  marke,ng  strategy.    The  return  on  our  investment  is  really  high  and  we  track  all  of  our  adver,sing  and  we  know  –  without  a  doubt  –  that  it  works  for  us.”      Elizabeth,  City  Clinic  on  Crown  

“We  probably  get  at  least  40%  of  our  business  through  Yellow  Pages.”      Juman,  SBS  Mobile  Mechanics.  

“Yellow  Pages  is  predominately  70%  of  the  new  business  that  I  get  in.  I  couldn’t  be  without  the  Yellow  Pages  for  my  business.”  Robert,  All  Hours  Windscreens  

“Rela,ve  to  the  amount  the  advert  costs,  it  brings  in  many  many  ,mes  the  value  of  the  advert,  so  I  think  its  good  value  for  money.”  Peter,  Aesthe/c  Dental  

Print  usage  down  but  remains  powerful1  

Industry  impacted  by  digital  growth  and  structural  change  

Page  6  

Cyclical  decline  changed  into  structural  print  decline  

1:  :  Roy  Morgan  Single  Source  Australia.  Base:  Australians  14+  

0

200000

400000

600000

800000

1000000

1200000

1400000

FY08 FY09 FY10

Mon

thly  uniqu

e  visits  (,000)

Yellow  Pages  digital Yellow  Pages  print

15.1% 17.5% 19.9% Digital  

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6,605 6,802 6,674 6,629 6,485 6,155

5,871 5,828 5,630

Dec  08 Mar  09 Jun  09 Sep  09 Dec  09 Mar  10 Jun  10 Sep  10 Dec  10

Last  30  day  un

ique

 users  (,00

0)

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Telstra  Corpora,on:  investor.rela,ons@team.telstra.com  

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We  have  been  preparing  for  this  transi,on…  

•  SPA  network:  in  produc,on  in  five  weeks  

•  Yellow  Offers:  in  produc,on  within  three  weeks  

•  Value  packages:  in  produc,on  within  3.5  months  

Significant  improvements  in  Yellow  Pages®  strike  rates   Latest  iGen  release  unlocking  enormous  poten,al  

Product  development  ,mes  slashed  

•  Customer  benefits:  •  Simpler  billing  

•  Improved  and  expanded  self  service  

•  Improved  proposal  and  order  documenta,on  

•  Landing  pages  with  improved  SEO  

•  Significant  print  content  improvements  

•  Opera,onal  benefits  •  Easier  to  key  value  packages  •  Less  clicks  to  retrieve  key  informa,on  

•  Improved  order  and  case  management  usability  

•  Single  view  of  customer  fulfillment  

•  Enhanced  search  and  customer  summary  

Page  7  

And  inves,ng  in  our  products…  

•  Marke,ng  made  Easy™  •  Empowerment:    

•  Re-­‐design  the  way  we  work  with  customers  

•  Presence:  •  Extending  our  network,  including:  

•  Deeper  content  including  video  produc,on,  social  media  feeds  

•  New  Yellow  Pages  applica,ons,  such  as  iPad  and  Offers  

•  Web  site  crea,on  

•  Enhanced  SEO  and  SEM  capabili,es  

•  Applica,ons  Program  Interface  

•  Quo,fy  quota,on  services  

•  Performance:    •  Benchmark  new  repor,ng  system  

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Telstra  Corpora,on:  investor.rela,ons@team.telstra.com  

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The  high  growth  digital  opportunity  

Page  9  

There  is  very  strong  digital  demand  

Page  10  

Monthly  ad  appearances  on  Bing  Local  only  and  Whereis.com  

Yellow  Pages®  digital  usage  up  50%  YoY1  

Excep,onal  usage  growth  in  key  digital  segments3  

Even  further  digital  adver,ser  ROI  from  syndica,on2  

1:  Omniture  SiteCatalyst,  December  2010;    2:  Whereis  data  from  Omniture  SiteCatalyst,  December  2010.  Bing  data  provided  by  Microsop;    3:  Roy  Morgan  Single  Source  Australia.  Base:  Australians  14+  

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Telstra  Corpora,on:  investor.rela,ons@team.telstra.com  

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However,  today’s  adver,sers  are  facing  a  ‘digital  dilemma’  

Page  11  

•  55%  of  businesses  with  the  Internet  have  a  lack  of  exper,se  or  knowledge1  

•  62%  of  adver,sers  don’t  measure  ROI2  

•  Of  them:  

•  32%  say  it  is  to  ,me  consuming  

•  17%  don’t  know  how  

•  7%  say  it  is  too  hard  or  there’s  no  accurate  way  

•  85%  of  SMEs  don’t  use  social  media3  

•  Only  17%  of  SMEs  have  a  digital  strategy1  

Fragmenta,on  makes  marke,ng  increasingly  difficult  Digital  media  is  growing  and  fragmen,ng  

The  winning  media  providers  posi,on  adver,sers  wherever  buyers  search…  and  make  it  all  simple  and  accountable  

1:  Sensis  eBusiness  Report,  2010;    2:  Sensis  Business  Index  Adver,sing  Study,  November  2010;    3:    Sensis  Business  Index  Social  Media  Study,  February  2011  

Page  12  

Channels   Rela,onships  

Brands   Content  

A  unique  ability  to  build,  package  and  market  cross-­‐plasorm  solu,ons  

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Telstra  Corpora,on:  investor.rela,ons@team.telstra.com  

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Yellow Pages now a powerful cross-platform lead generator…

Key to addressing the digital dilemma

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A  simple  opera,ng  model  

Penetra,on:  plenty  of  headroom  for  growth1  Well  managed  cost  base  

1:  Sensis  Business  Index  Adver,sing  Study,  November  2010    

885 862

804

12 7

38

FY08 FY09 FY10

Underlying  expenses  (A$m):  FY08  to  FY10

Underlying  opex Strategic  opex

-­‐ 2.2%

-­‐ 10.4%

39% 44%

42%

26%

13%

1% SOHO SME Corporate

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Telstra  Corpora,on:  investor.rela,ons@team.telstra.com  

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Sensis  Financial  Outlook  

Page  15  Page  15  

•  FY11:  mid  single  digit  revenue  decline  and  high  single  digit  EBITDA  decline  •  Subject  to  flood  impact  

•  Return  to  organic  revenue  growth  in  3  years    

•  Con,nued  relentless  focus  on  cost    control  •  We  must  move  to  lower  cost  opera,ng  model  

Fundamentals  

Fundamental   Today   Future  

Customer  numbers      ARPA  (print/digital)      Digital  sales      Digital  customer  penetra,on  

   

Value  packages  sold   N/A    Churn      

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