Telstra 2007 Annual Report Download - page 77

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Telstra Corporation Limited and controlled entities
Directors’ Report
The prior year declared dividends amounted to 34 cents per share. The dividends paid in fiscal 2007 were 28
cents per share compared with dividends paid in fiscal 2006 of 40 cents per share (which included two six cent
special dividends).
On 4 July 2007, Telstra Corporation Limited announced the commencement of a dividend reinvestment plan
(“ DRP” ). The election date for participation in the DRP is 24 August 2007.
During fiscal 2007, the following dividends were paid:
At present, it is expected that, for fiscal 2008, we will be able to declare fully franked dividends. However,
the directors can give no assurance as to the future level of dividends, or of the franking of these dividends.
This is because our ability to frank dividends depends upon, among other factors, our earnings, Government
legislation and our tax position.
No decision with respect to the payment or funding of future ordinary dividends has been made. The Board
will make these decisions in the normal cycle having regard to, among other factors, the Company’s
earnings and cash flow requirements, as well as regulatory decision impacts.
Other relevant measures of return include the following:
• Return on average assets - 2007: 15.9% (2006: 15.7%)
• Return on average equity - 2007: 26.3% (2006: 24.3%)
The return on both average assets and average equity were higher in fiscal 2007 primarily due to the
increased profit as previously discussed.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of our Company during the financial year ended 30
June 2007
Sale of the Commonwealth’s remaining interest in Telstra
The Commonwealth proceeded with the sale of its 51.8% ownership interest in Telstra in the year ended 30
June 2007 where it sold 34.2% of its ownership interest through a public sale. The Commonwealth's
remaining 17.6% interest in Telstra was transferred to the Commonwealth Future Fund in February 2007.
Listing on foreign stock exchanges
In June 2007, we delisted from the New York Stock Exchange and we are currently in the process of
deregistering from the Securities Exchange Commission in the United States of America. We expect to be
deregistered by early September 2007. As a consequence we have not prepared any USGAAP information in
this years financial statements.
Likely developments and prospects
The directors believe, on reasonable grounds, that Telstra would be likely to be unreasonably prejudiced if
the directors were to provide more information than there is in this report or the financial report about:
• the likely developments and future prospects of Telstra’s operations; or
• the expected results of those operations in the future.
Dividend Date declared Date paid Dividend per share Total dividend
Final dividend for the year ended 30
June 2006 10 August 2006 22 September 2006 14 cents franked to 100% $1,739 million
Interim dividend for the year ended 30
June 2007 15 February 2007 30 March 2007 14 cents franked to 100% $1,740 million