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Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556 18 November 2011 The Manager Company Announcements Office Australian Securities Exchange 4 th Floor, 20 Bridge Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Office of the Company Secretary Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA General Enquiries 08 8308 1721 Facsimile 03 9632 3215 Dear Sir or Madam Investor Day media release and slide presentations In accordance with the Listing Rules, I attach a copy of the media statement and the presentations to be delivered in the morning session at Telstra’s Investor Day, for release to the market. Yours faithfully, Carmel Mulhern Company Secretary For personal use only

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Telstra Corporation Limited ACN 051 775 556

ABN 33 051 775 556

18 November 2011 The Manager Company Announcements Office Australian Securities Exchange 4

th Floor, 20 Bridge Street

SYDNEY NSW 2000

ELECTRONIC LODGEMENT

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

Dear Sir or Madam

Investor Day – media release and slide presentations

In accordance with the Listing Rules, I attach a copy of the media statement and the presentations to be delivered in the morning session at Telstra’s Investor Day, for release to the market. Yours faithfully,

Carmel Mulhern Company Secretary

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Follow Telstra online:

Blog exchange.telstra.com | www.facebook.com/telstra | www.twitter.com/telstra_news | www.youtube.com/telstracorp

MEDIA RELEASE

Sales momentum continues, guidance confirmed, digital media division created 18 November 2011 – Telstra continues to record strong sales momentum and is on track to achieve its guidance of low single digit percentage growth in total revenue and EBITDA, CEO David Thodey said today. Speaking at Telstra’s annual update for institutional investors, Mr Thodey said that over the September 2011 quarter the company continued to record strong growth in mobile customer numbers and had also added fixed broadband customers. “Our focus on adding customers and improving satisfaction continues to bear fruit, with strong sales momentum in the opening months of fiscal 2012. Importantly, we are adding those new customers profitably and without sacrificing average revenues per customer (ARPU),” Mr Thodey said. Mr Thodey told investors the company was making substantial progress implementing its strategy first unveiled more than a year ago: to add customers, improve customer satisfaction, simplify the company, and target growth opportunities in Asia, digital media and network-based applications and services. “Our strategy is unchanged and our focus remains on execution. Already our customers are reporting higher satisfaction levels as we make the business less complex and easier to deal with,” Mr Thodey said. Telstra’s strategy has seen the entire sales workforce brought together in a single team, the introduction of clearer bill formats and simpler pricing plans, and the publication of easy-to-understand one page summaries for key products and offers. More than five million customers have called Telstra after business hours and more than 100,000 technician appointments have been scheduled for weekends, following the introduction of the services. As a result of these and other customer service improvements, in the year to September 2011 Telstra recorded 28% fewer incoming calls to customer call centres, 51% fewer ordering errors requiring manual intervention, 34% fewer repeat visits to fix recurring problems at customers’ homes and businesses, and 70% more self-service transactions using the company’s upgraded online portal. These and other similar initiatives generated $622 million in productivity benefits in fiscal 2011 and are expected to deliver an even greater benefit in fiscal 2012. Digital media division established Telstra also today announced it will consolidate its media businesses into a single division to increase focus, drive new opportunities and better utilise the company’s many media assets. “Telstra is a leader in online digital media with multiple assets which, including FOXTEL, earn $4 billion in annual revenues and employ approximately 4,000 people. Telstra’s digital media division will bring these assets together for the first time and enable us to implement a co-ordinated media strategy that delivers long-term shareholder value,” Mr Thodey said. The new division, to be known as Telstra Digital Media, will be responsible for managing Telstra’s end-to-end media capabilities including Sensis, BigPond, Trading Post, IPTV, FOXTEL and other content arrangements. “As digital media and video content continues to grow it is important that we build network infrastructure to meet this demand. We will also continue to integrate this content, making it available to our customers across multiple channels including mobiles, tablets, home entertainment systems and the internet,” Mr Thodey said.

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Blog exchange.telstra.com | www.facebook.com/telstra | www.twitter.com/telstra_news | www.youtube.com/telstracorp

MEDIA RELEASE

The new division will be headed by Rick Ellis, an experienced media executive who will join Telstra in early 2012 after completing his role as chief executive of the New Zealand broadcast television and digital media company, Television New Zealand. “I am delighted that Rick Ellis, a media executive with vast experience and strong networks, will be leading our media strategy. Rick has led a complex media organisation, established digital businesses and cultivated strong relationships with content generators, integrators and distributors around the world,” Mr Thodey said. Mr Ellis will commence in January 2012. He will report directly to David Thodey and join Telstra’s leadership team. Bruce Akhurst, the CEO of Sensis, and JB Rousselot, the head of Media, will report to Mr Ellis. Mr Thodey also said that Telstra will invest $100 million over four years to upgrade its media infrastructure. The investment will help bring to life Telstra’s digital home, and enable Telstra’s enterprise and business customers to more efficiently deliver broadcast-quality video streaming services to end-users over any device connected to the internet. Outlook Whilst re-affirming guidance, Mr Thodey noted there had been a shift in the mix of growth expected in fiscal 2012. Sensis has experienced satisfactory but lower than expected take-up of digital products by SME customers. Revenues are also lower than expectations because sales completions are taking longer than expected and sales to new customers have been limited as a result. Additionally, the rate of decline in Yellow print directories has also risen significantly as market dynamics change more rapidly than expected. These trends will put pressure on Sensis, resulting in an expectation of revenue percentage declines in the high teens for the full year, driven mostly by Yellow print directory and EBITDA margin compression. Mr Thodey noted the Telstra Group was, however, recording better than expected results in growth businesses such as mobiles, fixed broadband and network-based applications and services. “Our strong performance in core and growth businesses, coupled with strong mobile profitability and productivity improvements, means Telstra remains on track to meet guidance for fiscal 2012,” Mr Thodey concluded. Media contact: Andrew Maiden (0458 487 754) Email: [email protected] www.telstra.com.au/abouttelstra/media-centre/ Reference: 352/2011 Attachment: biography of Rick Ellis

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MEDIA RELEASE

Notes: Rick Ellis is Chief Executive Officer of TVNZ, New Zealand’s leading broadcast television and digital media company, a position he has held for a total of 10 years. Rick began his career in the IT industry in Brisbane in the late 1970s, and during the following 20 years in that industry held a number of senior leadership positions in the United Kingdom and New Zealand. He served as Chief Executive Officer of Ansett New Zealand in 1995 and subsequently moved to Melbourne as General Manager Sales and Marketing for Ansett Airlines of Australia. In 1998 he was first appointed CEO of TVNZ and during the period 2002-2006 was Vice President and Managing Director of EDS New Zealand. Rick holds a Bachelor of Commerce from Auckland University and is married with three adult children. A high-resolution image of Rick is available on request.

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BUSINESS OVERVIEW DAVID THODEY, CHIEF EXECUTIVE OFFICER

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DISCLAIMER

•  These presentations include certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. 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, uncertainties and other factors, many of which are beyond the control of Telstra, which may cause actual results to differ materially from those expressed in the statements contained in these presentations. For example, the factors that are likely to affect the results of Telstra include general economic conditions in Australia; exchange rates; competition in the markets in which Telstra will operate; the inherent regulatory risks in the businesses of Telstra; the substantial technological changes taking place in the telecommunications industry; and the continuing growth in the data, internet, mobile and other telecommunications markets where Telstra will operate. A number of these factors are described in Telstra’s Financial Report dated 11 August 2011 and 2011 Annual Debt Issuance Prospectus lodged with the ASX.

•  All forward-looking figures in this presentation are unaudited and based on A-IFRS. Certain figures may be subject to rounding differences. All market share information in this presentation is based on management estimates based on internally available information unless otherwise indicated.

•  All amounts are in Australian Dollars unless otherwise stated.

® ™ Registered trademark and trademark of Telstra Corporation Ltd. Other trademarks are the property of their respective owners.

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1. PERSPECTIVE ON KEY INDUSTRY TRENDS

2. PROGRESS ON STRATEGY

3. DETAILED UPDATE ON KEY FOCUS AREAS

TODAY’S OBJECTIVES

4. FISCAL 2012 GUIDANCE CONFIRMED

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AGENDA

1. Business Overview David Thodey

2. Financial and NBN Update John Stanhope

3. Simplification Program Update Robert Nason

4. Retail Business Update Gordon Ballantyne

PLENARY PRESENTATIONS: 9AM – 11AM

QUESTION AND ANSWER: 11AM – 12PM

LUNCH

BREAK OUT SESSIONS: 12.30PM – 3PM

NAS & IP THE CONNECTED HOME MOBILITY BRANDING Brendon Riley Paul McManus Philip Jones

Hugh Bradlow Mike Wright Warwick Bray

Mark Buckman For

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OUR INDUSTRY IS UNDERGOING A SIGNIFICANT CHANGE

The “ME” generation – consumer is king… or queen

ASIA to contribute 40% OF WORLD GROWTH BY 2015

WEB SEARCHES

5x growth in INTERACTIONS 300B emails 20B SMS 7B calls 0.2BTweets/day

Per day

PERSONALISED DEVICES

800M Smarthphones by 2013

CLOUD & APPLICATIONS

INTELLIGENT NETWORKS

NETWORK GROWTH

Mobile connections 5B in 2010 50B in 2020 TRILLION in 2030

VIDEO CONTENT GROWTH

35 hours of YouTube content added every 1 minute

BANDWIDTH DEMAND 1B Terabytes over networks by 2012

DIGITAL CONTENT GROWTH 5M Terabytes of information created every 48 hours

~2B

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THIS HAS REQUIRED US TO MAKE A NUMBER OF CHANGES…

MOBILES – LTE, COVERAGE FIXED – IPV6, TOP HAT, HFC

CHIEF CUSTOMER OFFICER CHIEF MARKETING OFFICER

BRAND LAUNCH CULTURE CHANGE

CUSTOMER SATISFACTION FOCUS 1.   BUILDING SALES, SERVICE & MARKETING

CAPABILITY

2.   INVESTING IN CORE NETWORK CAPABILITY

3.   NAS & CLOUD CAPABILITY

4.   NEW BUSINESS MODEL

5.   PRODUCT INNOVATION

6.   DIGITAL MEDIA

7.   ASIA

FOCUS AREAS

MILESTONES

PROJECT NEW / SIMPLIFICATION

PRODUCTIVITY & PROCESS IMPROVEMENT

DIGITAL BUSINESS

INDUSTRY VERTICAL SOLUTIONS

M2M

IPTV (T-BOX)

DEDICATED BUSINESS UNIT

FOXTEL

CHINA, REACH, CSL

DEDICATED BUSINESS UNITS (NAS & CLOUD)

CLOUD INVESTMENT

T-SUITE EXPANSION APPLICATIONS AND VENTURES GROUP

TELSTRA INNOVATION TEAM

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OUR PRIORITIES REMAIN UNCHANGED AND WE ARE MAKING PROGRESS

1.  IMPROVE CUSTOMER SATISFACTION

2.  RETAIN AND GROW CUSTOMER NUMBERS

3.  SIMPLIFY THE BUSINESS

4.  BUILD NEW GROWTH BUSINESSES

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…AND WE ARE PREPARING FOR AN NBN WORLD

DIFFERENTIATION

•  Intelligent network capability build

•  New tariff structures

•  New product portfolio

•  NBN content and applications

THE NBN DOES NOT CHANGE OUR STRATEGY – WE WILL CONTINUE TO DIFFERENTIATE

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Video Conferencing

Video Telephony

Multimedia Contact Centre

UC&C as a Service

PaaS

Federated Clouds

IaaS

SaaS

Contextual Networking

Network Intelligence

Unified Security Services

IP Networking

Discreet Products

Packaged Products

Bundled Offerings

Integrated Services

Industry Solutions Converged

Service Desk

Professional Services

Unified Service Delivery

Media

Health

Education

Finance

Government

Secure Intelligent Networks Cloud Services

Unified Communications

Industry Solutions

Managed Services

Integrated Solutions

OUR NAS STRATEGY IS DELIVERING RESULTS

•  FY11 REVENUES +11% TO $1.1B •  STRONG PIPELINE OF OPPORTUNITIES FOR FY12

1. Dedicated NAS & Cloud Delivery

2. Strong offering portfolio

3. Capability & resourcing

4. Strong customer base

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WE ARE BUILDING GREATER VALUE IN ASIA

LEVERAGING OUR INTERNATIONAL ASSETS AND CAPABILITIES 1. Extend our Asia IP network and NAS/Cloud capabilities (Reach)

2. Continue to leverage mobile assets (CSL)

3. Extract value from China Digital Media assets

Sydney Auckland (New Zealand)

Perth

Indonesia Singapore

Malaysia Thailand

India

Philippines

Hong Kong

China

Seoul (Korea)

Tokyo (Japan)

London

San Jose

Los Angeles

New York/ New Jersey

Stanley Satellite Earth Station, Hong Kong

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WE HAVE ESTABLISHED A NEW DIGITAL MEDIA BUSINESS UNIT

EXISTING PORTFOLIO OF ASSETS AND PARTNERS NEW DIGITAL MEDIA BUSINESS UNIT

TELSTRA DIGITAL MEDIA

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CASH MANAGEMENT WILL BE KEY TO OUR FUTURE

DIVIDENDS

DEBT

CAPITAL RETURNS

INVESTMENTS

IMPORTANT FOR MANY SHAREHOLDERS, STRONG BOARD COMMITMENT

WE ARE WITHIN FINANCIAL PARAMETERS

TO BE CONSIDERED POST NBN DEAL

PRUDENT ASSESSMENT OF VALUE ACCRETIVE ORGANIC & MODEST INORGANIC OPPORTUNITIES

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SUMMARY

OUR STRATEGIES ARE WORKING

WE ARE WELL PLACED AND WE WILL BE NBN READY

WE CAN CONTINUE TO DIFFERENTIATE

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FINANCIAL UPDATE JOHN STANHOPE, CFO

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TELSTRA SHAREHOLDER APPROVAL AGM VOTE

ACCC ACCEPTANCE OF STRUCTURAL SEPARATION UNDERTAKING AND APPROVAL OF MIGRATION PLAN

REVISED SSU TO BE SUBMITTED

ATO TAX RULINGS TELSTRA RULING RECEIVED

NBN UPDATE - KEY CONDITIONS PRECEDENT

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REPORTING THE FINANCIAL IMPACT OF NBN

6 months ended Dec 10 June 11

Physicals ('000s)

Basic access (PSTN) lines 8,533 8,370 o/w WLR lines 1,235 1,212 ULL lines 914 1,001 ISDN lines 1,318 1,316 Lines disconnected to NBN 0 0 Telstra retail lines through NBN 0 0

Financial ($m)

Infrastructure revenues (sales revenue) 0 0 Disconnect ion revenues (other income) 0 0 NBN access costs 0 0 Remediation Costs 0 0 Copper network maintenance TBC TBC

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M2M – ANOTHER GROWTH ENGINE FOR MOBILES

Note: FY11 Mobile SIO growth of 1.7m included 100k M2M adds

FY11 REPORTED

  High margin   Low ARPU

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POSTPAID HANDHELD 6.1m SIOs $64 ARPU

M2M 0.6m SIOs $10 ARPU

M2M 0.3m SIOs

M2M 0.3m SIOs

MBB 2.3m SIOs $41 ARPU

POSTPAID HANDHELD 6.5m SIOs $61 ARPU

MOBILE BROADBAND 2.6m SIOs $38 ARPU

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•  Market’s shift to digital marketing occurring faster than expected

•  Good take up from existing customers, limited sales to new customers as sales completion taking longer than expected

•  Rate of decline in Yellow Print has risen significantly

•  One off digital sales and production costs higher than expected in FY12

•  End user demand for Yellow products remains solid

•  Cost-out programme accelerated – limited impact in FY12, more in FY13

SENSIS TRANSITION

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PROGRESS ON DIGITAL STRATEGY

EXPECT HIGH TEENS REVENUE DECLINE AND MARGIN COMPRESSION IN FY12

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GUIDANCE AND H1 PROFILE

Measure FY11 Reported FY12 Guidance*

Total Revenue $25.09bn Low single-digit growth

EBITDA $10.15bn Low single-digit growth

Capex 14% of sales

Free cashflow $4.5 - $5.0 billion

Dividend** 28 cps fully franked (FY12 and FY13)

* Guidance assumes wholesale product price stability and excludes any further impairments to investments and proceeds on the sale of businesses

** Dividend subject to the Board’s normal approval process for dividend declaration and no unexpected material events.

FY12 PROFILE H1 V H2

•  Smoother profile than FY11 •  Revenue and EBITDA

growth in H1 with slight margin expansion

•  Mix change with improving telco product contributions offset by accelerated revenue decline from Sensis

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SIMPLIFICATION AND CUSTOMER SERVICE PROGRAM UPDATE ROBERT NASON, GMD PROJECT NEW AND CUSTOMER EXPERIENCE

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PROJECT NEW OBJECTIVES

2 Source: 2010 Investor Day Presentation, Robert Nason

Simplify •  Fast, lean and competitive operating model and culture •  Value propositions clear and simple to communicate •  Processes streamlined to reduce time-to-market by 30%

Theme Objectives

Serve •  Best customer satisfaction rating compared to rest of market •  Channel mix transitioned to 35% online / self help transactions •  Further sustained reduction of TIO complaints

Save •  Significant cost benefits will emerge

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PROJECT NEW SCOPE

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New Lean Operating

Model

End-to-End Customer Process Improvement

Sales & Service Channel Enhancements

Pricing Simplification

A New Customer Focused Culture

Third Party Spend & Productivity Improvement Program

Source: 2010 Investor Day Presentation, Robert Nason

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STATUS OF PROGRAM OUTCOMES

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70% 80% Operating Model

40% 70% Process and System Improvements

30% 70% Online Presence

60% 100% Productivity

50% 75% Pricing Simplification

0% 100%

30% 100% Culture Change

Benefits implemented Benefits identified Total opportunity For

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OPERATING MODEL CREATING A SIMPLER, CUSTOMER CENTRIC ORGANISATION

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  Creation of a single Retail customer business unit

  Marketing, channel management, pricing, innovation, technology, communications and shared services functions streamlined with clear accountabilities

  Over 25,000 job roles changed

  Executive head count reduction by ~13%

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  Rationalised the number of vendors

  Optimised strategic relationships with third parties

  Working cooperatively to achieve ongoing productivity improvements

  Better engaging with our partners through training and other collaborative activities

OPERATING MODEL BETTER LEVERAGING OUR PARTNERS

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PROCESS AND SYSTEM IMPROVEMENTS

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PROCESS AND SYSTEM IMPROVEMENTS

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TIO Complaints

PROCESS AND SYSTEM IMPROVEMENTS

~50%

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% of Field Revisits

~34%

PROCESS AND SYSTEM IMPROVEMENTS

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ONLINE PRESENCE

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Homepage

Online Shop

Facebook and Twitter Services

CrowdSupport

Mobile website

Consumer Services

ONLINE PRESENCE

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  We have refreshed our mobile wireless cap, business and account managed plans

  We have improved our Fixed and Bundles offer

  Data allowances have increased at no extra cost for some plans

  Key nuisance fees and charges have been removed

PRICING SIMPLIFICATION DELIVERING GREATER VALUE FOR OUR CUSTOMERS

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Improved Brochures New My Offer Summaries Simplified Bill Format

+ +

PRICING SIMPLIFICATION ENHANCING THE PURCHASING AND BILLING EXPERIENCE

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PRODUCTIVITY $622M OF PRODUCTIVITY BENEFITS DELIVERED IN FY11

15

FY10 OPEX

REPORTED

+6.8%

$15,154m

FY11 OPEX

REPORTED

$14,184m

DVCs

+$823m

-$622m

Productivity Benefits

Natural disasters

+$53m

STI

+$93m

Price

+$277m

Redundancy

+$96m

One-offs Growth Productivity

Impairments & Other

-$141m

New Business

Growth

+$231m +$160m

Programme costs & other

Source: FY11 End of Year Results CEO/CFO Presentation

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CULTURE CHANGE DRIVEN BY THE ‘OUR CUSTOMER CONNECTION’ PROGRAM

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 54 OCC sessions have been held engaging over 5,400 people leaders:

  23 sessions in Melbourne (2,200+ people)

  16 sessions in Sydney (1,500+ people)

  6 sessions in the Philippines (800+ people)

  9 sessions held with our industry partners (900+ people)

Source: Visualisation created during an OCC session to capture outcomes for participants

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FOCUS OF THE SIMPLIFICATION AND CUSTOMER SERVICE PROGRAM GOING FORWARD

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EMBEDDING CONTINUOUS IMPROVEMENT

IMPLEMENTING CULTURE CHANGE

SECOND WAVE OF PRODUCTIVITY IMPROVEMENT

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EMBEDDING CONTINUOUS IMPROVEMENT

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Process Owner Framework

PREPARE SERVE SUPPORT

  Product Management

  Product Development

  Pricing

  Promotions and Advertising

  IT and Network Management

  Order to Activate

  Assurance

  Billing

  Explore

  Customer Management

  Corporate Planning

  Financial and Risk Management

  People Management

  Communications Management

  Enterprise Effectiveness

  Procurement and Partner Management

  Implementation underway   Implementation by end of FY12

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TELS

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IMPLEMENTING CULTURE CHANGE

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 Net Promoter Score system implementation

 Sales and service training

 Changing the way we work

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SECOND WAVE OF PRODUCTIVITY IMPROVEMENT

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 Focus on capital as well as OPEX

 Broader scope

 Deeper set of changes

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GORDON BALLANTYNE CHIEF CUSTOMER OFFICER

CUSTOMER SATISFACTION IMPROVED MOMENTUM

2

TELSTRA OVERALL CUSTOMER SATISFACTION

JUN 10 FEB 11 OCT 11 JUN 11 OCT 10 For

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2 Telstra Corporation: [email protected]

RECAP - LAST YEAR’S KEY BATTLEGROUNDS

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RETAIL FIXED BROADBAND QUARTERLY SIO GROWTH

CORE PRODUCT MOMENTUM HAS CARRIED INTO 2012…

*

* June Q11 excludes the removal of 65k non-revenue generating services from the base

RETAIL MOBILE QUARTERLY SIO GROWTH

CONSUMER BUNDLES GROWTH POSTPAID HANDHELD ARPU

4

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ORGANISING TO WIN

CHIEF CUSTOMER OFFICER

STRATEGY & OPERATIONS

CUSTOMER SERVICE

TELSTRA CONSUMER &

COUNTRY WIDE

TELSTRA BUSINESS

TELSTRA ENTERPRISE & GOVERNMENT

TELSTRA CLEAR

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GROW MOBILE

BUNDLES

NAS

DRIVING VALUE FROM THE DOMESTIC CORE OUR KEY GROWTH AREAS REMAIN UNCHANGED

6

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DRIVING VALUE FROM THE DOMESTIC CORE

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STILL A LONG WAY TO GO WE HAVE MORE DETRACTORS THAN PROMOTERS

Illustrative purposes only 8

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TO CHANGE THE WAY OUR CUSTOMERS TALK ABOUT TELSTRA

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OUR AMBITION

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