Print Mail Logistics LimitedPrint Mail Logistics LimitedBusiness overview and industry yupdate

Adrian PereiraCommercial Manager and CFO

20 September 2012Revenue Management Association

The Meadows Sports & Function Centre80 Northcorp Boulevarde, Broadmeadows

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Presentation overviewPresentation overview

• PML – a brief overview• PML a brief overview

• PML – recent developments

• Market overview – Australia and Victoria

• Key buyer demandsy y

• Buyer decision making

PML’ i ff i• PML’s service offering

• Likely market changes in the next 12-36 months.

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Key messageKey message

We aim to demonstrate our experience as a

credible supplier specialising in the preparation,

d i d di ib i f d production and distribution of rate and water

notices for regional and city Councils located notices for regional and city Councils located

throughout Australia.

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PML – brief overviewPML – brief overview• Australian public company listed on the National Australian public company listed on the National

Stock Exchange of Australia;

• Production facilities based in Hobart, Tasmania;, ;

• Providing services to Local and State Government for over 20 years;y ;

• Distributes 10M mail items per annum including 4M on behalf of Local and State Government;

• Now produces rate, water and animal notices on behalf of 36 Councils (25 at 30 June 2011) located in

dNSW, QLD, VIC and TAS.

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PML – recent developmentsPML – recent developmentsIn the last 9 months PML has:9▫ Enhanced service offering to cater for: Online notice retrieval and archiving E-distribution and E-notification SMS delivery MICR capabilities MICR capabilities E-bill presentation;

▫ Increased market share in key target markets Increased market share in key target markets including being awarded its first Contract in Victoria;

▫ Demonstrated the strength of our service offering to k tkey customers.

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PML...now delivering Council requirements throughout Eastern requirements throughout Eastern Australia

# of mail # of Councils items pa

New South Wales ‐ Regional 3 300,000          New South Wales Sydney Metropolitan 3 200 000New South Wales ‐ Sydney Metropolitan 3 200,000        Queensland 5 550,000          Victoria 1 200,000         ,Tasmania 24 650,000          Total 36 1,900,000      

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Market overview - AustraliaType NSW Vic Qld WA SA Tas NT TotalShires 75 39 24 107 10 255Cities 38 33 7 22 21 5 2 128Cities 38 33 7 22 21 5 2 128Regional councils 4 29 4 37District council 35 35Councils 27 6 33Councils 27 6 33Municipalities 8 19 27Unincorporated 10 1 5 16Towns 1 12 2 2 17Towns 1 12 2 2 17Aboriginal shires 12 12Rural cities 6 1 7Community government councils 2 2Community government councils 2 2Boroughs 1 1Island councils 1 1Total 152 89 74 141 64 30 21 571Total 152 89 74 141 64 30 21 571

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Market overview - VICMarket overview - VIC

f

Type

Average # of Assessments Per 

Council Per Population ('000)VIC

Cities

Annum'('000)

                                215                              4,029 33ShiresRural CitiesBoroughs

                                  53 

                                    6                                   50 

                             1,181 

                                     3                                  170 

39

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gUnincorporatedTotal                                 106 

                                    0 1089

                                     0                              5,384 

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Buyer demands are consistent throughout Australia• Demonstrated experience• Demonstrated experience

• Fast turnaround with KPI’s linked to statutory d ti l q i tand operational requirements

• Timely access to expert, technical advice

• Value added service components

• Financial capacity• Financial capacity

• Commitment to Workplace Safety, E i t l M t d S t i bilitEnvironmental Management and Sustainability.

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The commodity magnetThe commodity magnet

1980’1980’s

2005

20082008

2012 ????

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The impact on the marketplaceThe impact on the marketplace

• Between 2008 and 2012 key providers have re-• Between 2008 and 2012, key providers have refocused on alternative markets

S f l id h f d • Successful providers have focused on:

▫ process improvement to reduce the cost to serve; dand

▫ innovation to increase the price.

• Result is a significant change in the competitive landscape.p

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Solution buying vs insight buyingSolution buying vs. insight buying• Customer’s now have a much deeper understanding Customer s now have a much deeper understanding

of their requirements together with the difference between competitor offerings.p g

“Our customers are coming to the table armed to Our customers are coming to the table armed to their teeth with a deep understanding of their

requirements and a well scoped RFQ for a solution requirements and a well scoped RFQ for a solution. It’s turning many of our sales conversations into

fulfilment conversations” Harvard Business Review July-August 2012fulfilment conversations Harvard Business Review July August 2012

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Case study:B d i i ki g i NSW b t A il d J Buyer decision making in NSW between April and June 2012• 152 Councils in NSW• 152 Councils in NSW

• Approx. 25 (representing 28% of mail volume) of th k t i d RFQthe market issued an RFQ

▫ Approx 12 remained with existing supplier

▫ Approx 13 changed supplier

• In most instances, RFQ’s were invited from 4 In most instances, RFQ s were invited from 4 common suppliers from NSW, VIC, SA and TAS.

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Case study:B d i i ki g i NSW b t A il d J Buyer decision making in NSW between April and June 2012Key themes from the RFQ process:Key themes from the RFQ process:

1. Transition to new supplier is now more seamless <7 days7 y

2. Supplier prices have reduced materially

3 Improved service deliverables3. Improved service deliverables

4. Interstate competitors capable of providing a valuable solution to NSW Councils – VIC, SA, valuable solution to NSW Councils VIC, SA, TAS.

...consistent with the commodity magnet

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PML’s strategyPML s strategyCustomer Selection

Service Offering

Account and Contract

ManagementPricing

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PML – Service OfferingPML – Service Offering1. Expert transition management2. Agility and flexibility to meet Council’s changing

requirements;3 Complete responsibility over each component of the value 3. Complete responsibility over each component of the value

chain;4. Value added solutions including;▫ Online retrieval and archiving

▫ E-distribution and e-notification

SMS notification▫ SMS notification

▫ E-bill presentment

5. A positive customer experience. References who will 5 pos e cus o e e pe e ce e e e ces oconfirm our ability to deliver.

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Service component – print and mailService component – print and mail

CouncilArtwork and Data file

Proof process

Lodgement if t Print and

Mail Production

and di t ib ti

RatepayerPML

manifest

distribution

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Service component – e-servicesService component – e-services

CouncilData file

Notice pdf(offline)

Secure access to view, edit

and reproduce User access

t

ORS RatepayerPML

Notice pdf

noticesreports

Server

Notice pdf(online)

Unique email including URL reference to pdfnotice

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PML – Customer selectionPML – Customer selection• Anyone/anywhere model is prevalent in the industryAnyone/anywhere model is prevalent in the industry

• PML’s customer selection model is based on

Th l i t▫ The volume requirements

▫ The technical scope of the services required

▫ The service level expectation

▫ Our ability to provide superior account management

• Our intention is to leverage positive customer experiencesp

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PML – Customer selectionPML – Customer selection• Over the next 12 months, our service offering will be g

most beneficial to Councils with the following requirements;▫ Generally above 5 000 and up to 120 000 ratepayers▫ Generally above 5,000 and up to 120,000 ratepayers

But specifically between 10,000 and 70,000 ratepayers▫ Timely and accurate programming and supply of samplesy p g g pp y p▫ Lodgement with Australia Post within 24 hours of proof

sign offP i fl ti f l d i t i d▫ Price reflective of value and service components required

▫ Requirement for value added solutions

• Likely to be located in Greater Melbourne Metropolitan • Likely to be located in Greater Melbourne, Metropolitan Sydney, key rural areas of VIC, NSW, QLD and TAS.

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PML - PricingPML - Pricing• Strategic pricing tailored to Council’s specific requirements;• Reflective of Council’s internal resources and requirement for

account management;• No penalty fees for Council initiated changes to lodgement • No penalty fees for Council initiated changes to lodgement

dates• Fixed price components▫ Programming and technical advice

▫ ORS and E-distribution.

Competiti e • Competitive ▫ PML enjoys a lower cost of production relative to its competitors

given the reduced overhead costs of operation in Hobart, T iTasmania.

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PML – Account and Contract Management• PML recognises the difference between account and g

contract management;• Quarterly performance meetings;• PML assigns 3 separate staff to each relationship:▫ Account Manager: co-ordinate stock, inserts, customer

timelines and relationship managementtimelines and relationship management▫ Senior Programmer: advise, prepare, sample and

produce noticesp▫ Contract Manager: execute contract, co-ordinate

resources and ensure performance to contracted terms terms.

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Our view on the Australian marketplace in the next 12-36 months• Council’s will engage in an RFQ process more g g Q p

frequently and supplier pricing will become more competitive;C il’ ill l t h i • Council’s will place a greater emphasis on a supplier’s financial capacity and will carefully evaluate a supplier’s performance against contract pp p gterms;

• Council’s are more likely to consider changing their supplier given the reduced effort in transition;supplier given the reduced effort in transition;

• Greater push towards e-services as Council’s promote environmental and sustainability practicespromote environmental and sustainability practices.

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PML’s action planPML s action plan

• New operational premises for process • New operational premises for process improvement to support its competitive position

Fi li 3rd t tifi ti t ISO t d d• Finalise 3rd party certification to ISO standards

• Continue to enhance IT capabilities designed to assist Council to communicate with its stakeholders

• Leverage positive customer experience developed over the prior 9 months.p p 9

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Questions & Answers?Questions & Answers?

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Contact detailsContact detailsAdrian Pereira Stacey BlackwellCommercial Manager & CFO Sales ManagerPrint Mail Logistics Limited Print Mail Logistics Limitedp (03) 6220 8444 p (03) 6220 8444p (03) 6220 8444 p (03) 6220 8444m 0420 968 516 m 0410 447 826e apereira@pml.com.au e sblackwell@pml.com.auw www pml com au w www pml com auw www.pml.com.au w www.pml.com.au