Telstra Group Limited · ASX:TLS
Telstra — Investor Day (November 2011)
29 slides from Telstra's investor day presentation, Nov 18, 2011
Slide 1: Investor Day – media release and slide presentations
18 November 2011 Office of the Company Secretary For personal use only Level 41 The Manager 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA Company Announcements Office Australian Securities Exchange General Enquiries 08 8308 1721 th 4 Floor, 20 Bridge Street Facsimile 03 9632 3215 SYDNEY NSW 200
Slide 2: Media Release: Sales momentum continues, guidance confirmed
MEDIA RELEASE Sales momentum continues, guidance confirmed, digital media division created For personal use only 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 T
Slide 3: Media Release: Digital media division and outlook
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. For personal use only “I am delighte
Slide 4: Media Release: Notes on Rick Ellis
MEDIA RELEASE Notes: Rick Ellis is Chief Executive Officer of TVNZ, New Zealand’s leading broadcast television and digital media For personal use only 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 follo
Slide 5: Business Overview – Disclaimer
For personal use only BUSINESS OVERVIEW DAVID THODEY, CHIEF EXECUTIVE OFFICER TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 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 uncerta
Slide 6: Today's Objectives and Agenda
TODAY’S OBJECTIVES For personal use only 1. PERSPECTIVE ON KEY INDUSTRY TRENDS 2. PROGRESS ON STRATEGY 3. DETAILED UPDATE ON KEY FOCUS AREAS 4. FISCAL 2012 GUIDANCE CONFIRMED TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 AGENDA PLENARY PRESENTATIONS: 9AM – 11AM 1. Business Overview David Thodey 2. Finan
Slide 7: Our industry is undergoing a significant change
OUR INDUSTRY IS UNDERGOING A SIGNIFICANT CHANGE For personal use only DIGITAL CONTENT NETWORK GROWTH 5x growth in INTERACTIONS GROWTH Mobile connections 300B emails 5M 5B in 2010 20B SMS Terabytes of information 50B in 2020 7B calls created every 48 hours TRILLION in 2030 0.2BTweets/day WEB SEARCHES
Slide 8: Our priorities remain unchanged and we are making progress
OUR PRIORITIES REMAIN UNCHANGED AND WE ARE MAKING PROGRESS For personal use only 1. IMPROVE CUSTOMER SATISFACTION 2. RETAIN AND GROW CUSTOMER NUMBERS 3. SIMPLIFY THE BUSINESS 4. BUILD NEW GROWTH BUSINESSES TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 …AND WE ARE PREPARING FOR AN NBN WORLD DIFFERENTIATI
Slide 9: Our NAS strategy is delivering results
OUR NAS STRATEGY IS DELIVERING RESULTS For personal use only Discreet Products 1. Dedicated NAS & Cloud Delivery Industry Converged Solutions Packaged Service Desk Products Multimedia Media Contact Centre IaaS Video Telephony Professional Health Bundled Offerings 2. Strong offering portfolio Service
Slide 10: New digital media business unit; cash management
WE HAVE ESTABLISHED A NEW DIGITAL MEDIA BUSINESS UNIT For personal use only EXISTING PORTFOLIO OF ASSETS AND PARTNERS NEW DIGITAL MEDIA BUSINESS UNIT TELSTRA DIGITAL MEDIA TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 CASH MANAGEMENT WILL BE KEY TO OUR FUTURE IMPORTANT FOR MANY SHAREHOLDERS, STRONG DIVI
Slide 11: Summary
SUMMARY For personal use only OUR STRATEGIES ARE WORKING WE ARE WELL PLACED AND WE WILL BE NBN READY WE CAN CONTINUE TO DIFFERENTIATE TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 7
Slide 12: Financial Update – NBN key conditions precedent
For personal use only FINANCIAL UPDATE JOHN STANHOPE, CFO TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 NBN UPDATE - KEY CONDITIONS PRECEDENT ATO TAX RULINGS TELSTRA RULING RECEIVED TELSTRA SHAREHOLDER APPROVAL AGM VOTE ACCC ACCEPTANCE OF STRUCTURAL SEPARATION REVISED SSU TO UNDERTAKING AND APPROVAL OF
Slide 13: Reporting the financial impact of NBN
REPORTING THE FINANCIAL IMPACT OF NBN For personal use only 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) Inf
Slide 14: Sensis transition; guidance and H1 profile
SENSIS TRANSITION For personal use only PROGRESS ON DIGITAL STRATEGY • 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
Slide 15: Simplification and Customer Service Program Update
For personal use only SIMPLIFICATION AND CUSTOMER SERVICE PROGRAM UPDATE ROBERT NASON, GMD PROJECT NEW AND CUSTOMER EXPERIENCE TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 PROJECT NEW OBJECTIVES Theme Objectives • Fast, lean and competitive operating model and culture Simplify • Value propositions clea
Slide 16: Project New scope and status of program outcomes
PROJECT NEW SCOPE For personal use only End-to-End Customer Process Improvement A New New Lean Sales & Service Customer Operating Channel Enhancements Focused Model Culture Pricing Simplification TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 Third Party Spend & Productivity Improvement Program Source: 2
Slide 17: Operating model
OPERATING MODEL For personal use only CREATING A SIMPLER, CUSTOMER CENTRIC ORGANISATION 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
Slide 18: Process and system improvements
PROCESS AND SYSTEM IMPROVEMENTS For personal use only TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 7 PROCESS AND SYSTEM IMPROVEMENTS TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 8 Telstra Corporation: investor.relations@team.telstra.com 4
Slide 19: Process and system improvements – results
PROCESS AND SYSTEM IMPROVEMENTS For personal use only TIO Complaints ~50% TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 9 PROCESS AND SYSTEM IMPROVEMENTS % of Field Revisits ~34% TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 10 Telstra Corporation: investor.relations@team.telstra.com 5
Slide 20: Online presence
ONLINE PRESENCE For personal use only TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 11 ONLINE PRESENCE Homepage Consumer Services Online Shop Facebook and Twitter Services CrowdSupport TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 Mobile website 12 Telstra Corporation: investor.relations@team.telstra.com 6
Slide 21: Pricing simplification
PRICING SIMPLIFICATION For personal use only DELIVERING GREATER VALUE FOR OUR CUSTOMERS 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 char
Slide 22: Productivity and culture change
PRODUCTIVITY For personal use only $622M OF PRODUCTIVITY BENEFITS DELIVERED IN FY11 +$160m -$622m +$96m +$231m +$277m +$823m $15,154m +$93m +$53m -$141m $14,184m +6.8% New TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 STI Natural Impairments DVCs Price Business Redundancy Programme costs Productivity FY
Slide 23: Focus of the simplification program going forward
FOCUS OF THE SIMPLIFICATION AND CUSTOMER For personal use only SERVICE PROGRAM GOING FORWARD EMBEDDING CONTINUOUS IMPROVEMENT IMPLEMENTING CULTURE CHANGE SECOND WAVE OF PRODUCTIVITY IMPROVEMENT TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 17 EMBEDDING CONTINUOUS IMPROVEMENT Process Owner Framework PREP
Slide 24: Implementing culture change; second wave of productivity
IMPLEMENTING CULTURE CHANGE For personal use only Net Promoter Score system implementation Sales and service training Changing the way we work TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 19 SECOND WAVE OF PRODUCTIVITY IMPROVEMENT Focus on capital as well as OPEX Broader scope Deeper set of changes TEL
Slide 25: Customer satisfaction – improved momentum
For personal use only GORDON BALLANTYNE CHIEF CUSTOMER OFFICER TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 CUSTOMER SATISFACTION IMPROVED MOMENTUM TELSTRA OVERALL CUSTOMER SATISFACTION JUN 10 OCT 10 FEB 11 JUN 11 OCT 11 2 Telstra Corporation: investor.relations@team.telstra.com 1
Slide 26: Recap – last year's key battlegrounds
RECAP - LAST YEAR’S KEY BATTLEGROUNDS For personal use only 3 CORE PRODUCT MOMENTUM HAS CARRIED INTO 2012… RETAIL MOBILE QUARTERLY SIO GROWTH RETAIL FIXED BROADBAND QUARTERLY SIO GROWTH * POSTPAID HANDHELD ARPU CONSUMER BUNDLES GROWTH 4 * June Q11 excludes the removal of 65k non-revenue generating s
Slide 27: Organising to win; driving value from the domestic core
ORGANISING TO WIN For personal use only CHIEF CUSTOMER OFFICER TELSTRA TELSTRA TELSTRA CONSUMER & ENTERPRISE & TELSTRA CLEAR BUSINESS COUNTRY WIDE GOVERNMENT STRATEGY & OPERATIONS CUSTOMER SERVICE 5 DRIVING VALUE FROM THE DOMESTIC CORE OUR KEY GROWTH AREAS REMAIN UNCHANGED GROW MOBILE BUNDLES NAS 6
Slide 28: Still a long way to go
DRIVING VALUE FROM THE DOMESTIC CORE For personal use only 7 STILL A LONG WAY TO GO WE HAVE MORE DETRACTORS THAN PROMOTERS Illustrative purposes only 8 Telstra Corporation: investor.relations@team.telstra.com 4
Slide 29: Our ambition
For personal use only OUR AMBITION TO CHANGE THE WAY OUR CUSTOMERS TALK ABOUT TELSTRA 9 Telstra Corporation: investor.relations@team.telstra.com 5