Telstra Group Limited · ASX:TLS
Telstra — Investor Day (November 2011)
80 slides from Telstra's investor day presentation, Nov 18, 2011
Slide 1: Business Overview
BUSINESS OVERVIEW DAVID THODEY, CHIEF EXECUTIVE OFFICER BLUE BETA | TELPPTV4 TELSTRA TEMPLATE 4X3 B
Slide 2: Disclaimer
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
Slide 3: Today's Objectives
TODAY’S OBJECTIVES 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 B BETA | TELPPTV4 3
Slide 4: Agenda
AGENDA PLENARY PRESENTATIONS: 9AM – 11AM 1. Business Overview David Thodey 2. Financial and NBN Update John Stanhope 3. Simplification Program Update Robert Nason 4. Retail Business Update Gordon Ballantyne Q S O AND ANSWER: QUESTION S 11AM – 12PM LUNCH BREAK OUT SESSIONS: 12 12.30PM 30PM – 3PM NAS
Slide 5: Our Industry Is Undergoing a Significant Change
OUR INDUSTRY IS UNDERGOING A SIGNIFICANT CHANGE DIGITAL CONTENT NETWORK GROWTH 5x growth in INTERACTIONS GROWTH Mobile connections 300B emails 5M 5B in 2010 20B SMS Terabytes T b t off information i f ti 50B in 2020 7B calls ll created every 48 hours TRILLION in 2030 0.2BTweets/day WEB SEARCHES The
Slide 6: This Has Required Us to Make a Number of Changes
THIS HAS REQUIRED US TO MAKE A NUMBER OF CHANGES… MILESTONES CHIEF CUSTOMER OFFICER CHIEF MARKETING OFFICER FOCUS AREAS BRAND LAUNCH CULTURE CHANGE 1 BUILDING SALES 1. SALES, SERVICE & MARKETING CAPABILITY CUSTOMER SATISFACTION FOCUS 2. INVESTING IN CORE NETWORK CAPABILITY MOBILES – LTE, COVERAGE FI
Slide 7: Our Priorities Remain Unchanged and We Are Making Progress
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 TELSTRA TEMPLATE 4X3 BLUE B BETA | TELPPTV4 7
Slide 8: We Are Preparing for an NBN World
…AND WE ARE PREPARING FOR AN NBN WORLD DIFFERENTIATION • Intelligent network capability build • New tariff structures • New product portfolio • NBN content and applications TELSTRA TEMPLATE 4X3 BLUE B BETA | TELPPTV4 THE NBN DOES NOT CHANGE OUR STRATEGY – WE WILL CONTINUE TO DIFFERENTIATE 8
Slide 9: Our NAS Strategy Is Delivering Results
OUR NAS STRATEGY IS DELIVERING RESULTS Discreet Products 1. Dedicated NAS & Cloud Delivery Industry Converged Solutions Packaged Service Desk Products Multimedia Media Contact Centre Video Telephony Professional Health Bundled Offerings 2. Strong offering portfolio IaaS Services SaaS Video Education
Slide 10: We Are Building Greater Value in Asia
WE ARE BUILDING GREATER VALUE IN ASIA LEVERAGING OUR INTERNATIONAL ASSETS AND CAPABILITIES 1. Extend our Asia IP network and Stanleyy Satellite NAS/Cloud capabilities (Reach) London Earth Station, New York/ Hong Kong Seoul (Korea) San Jose New Jersey China Tokyo (Japan) 2. Continue to leverage mobil
Slide 11: We Have Established a New Digital Media Business Unit
WE HAVE ESTABLISHED A NEW DIGITAL MEDIA BUSINESS UNIT EXISTING PORTFOLIO OF ASSETS AND PARTNERS NEW DIGITAL MEDIA BUSINESS UNIT TELSTRA DIGITAL MEDIA TELSTRA TEMPLATE 4X3 BLUE B BETA | TELPPTV4 11
Slide 12: Cash Management Will Be Key to Our Future
CASH MANAGEMENT WILL BE KEY TO OUR FUTURE IMPORTANT FOR MANY SHAREHOLDERS, STRONG DIVIDENDS BOARD COMMITMENT DEBT WE ARE WITHIN FINANCIAL PARAMETERS CAPITAL RETURNS TO BE CONSIDERED POST NBN DEAL PRUDENT ASSESSMENT OF VALUE ACCRETIVE INVESTMENTS ORGANIC & MODEST INORGANIC OPPORTUNITIES TELSTRA TEMPL
Slide 13: Summary
SUMMARY OUR STRATEGIES ARE WORKING WE ARE WELL PLACED AND WE WILL BE NBN READY WE CAN CONTINUE TO DIFFERENTIATE TELSTRA TEMPLATE 4X3 BLUE B BETA | TELPPTV4 13
Slide 14: Financial Update
TELSTRA TEMPLATE 4X3 B BLUE BETA | TELPPTV4 JOHN STANHOPE, CFO FINANCIAL UPDATE
Slide 15: NBN Update - Key Conditions Precedent
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 MIGRATION PLAN BE SUBMITTED BLUE BETA | TELPPTV4 TELSTRA TEMPLATE 4X3 B 2
Slide 16: Reporting the Financial Impact of NBN
REPORTING THE FINANCIAL IMPACT OF NBN 6 months ended Dec 10 June 11 Physicals ('000s) Basic access (PSTN) lines 8,533 8 533 8,370 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) Infrastructur
Slide 17: M2M – Another Growth Engine for Mobiles
M2M – ANOTHER GROWTH ENGINE FOR MOBILES FY11 REPORTED POSTPAID HANDHELD 6.1m SIOs POSTPAID HANDHELD $64 ARPU 6.5m SIOs $61 ARPU M2M 0.3m SIOs M2M High margin 0.6m SIOs $10 ARPU Low ARPU M2M 0.3m SIOs MOBILE BROADBAND 2.6m SIOs BLUE BETA | TELPPTV4 $38 ARPU MBB 2.3m SIOs $41 ARPU TELSTRA TEMPLATE
Slide 18: Sensis Transition
SENSIS TRANSITION PROGRESS ON DIGITAL STRATEGY • Market’s shift to digital g marketing g occurring g faster than expected p • 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
Slide 19: Guidance and H1 Profile
GUIDANCE AND H1 PROFILE Measure FY11 Reported FY12 Guidance* FY12 PROFILE H1 V H2 Total Revenue $25 09bn $25.09bn Low single-digit single digit growth • Smoother profile than FY11 • Revenue and EBITDA EBITDA $10.15bn Low single-digit growth growth in H1 with slight margin expansion Capex p 14% of sa
Slide 20: Simplification and Customer Service Program Update
SIMPLIFICATION AND CUSTOMER SERVICE PROGRAM UPDATE ROBERT NASON, GMD PROJECT NEW AND CUSTOMER EXPERIENCE BLUE BETA | TELPPTV4 TELSTRA TEMPLATE 4X3 B
Slide 21: Project New Objectives
PROJECT NEW OBJECTIVES Theme Objectives • Fast Fast, lean and competitive operating model and culture Simplify • Value propositions clear and simple to communicate • Processes streamlined to reduce time-to-market by 30% • Best customer satisfaction rating compared to rest of market Serve • Channel m
Slide 22: Project New Scope
PROJECT NEW SCOPE End-to-End Customer Process Improvement A New New Lean Sales & Service Customer Operating Channel Enhancements Focused Model C lt Culture Pricing Simplification BLUE BETA | TELPPTV4 Third Party Spend & Productivity Improvement Program TELSTRA TEMPLATE 4X3 B Source: 2010 Investor Da
Slide 23: Status of Program Outcomes
STATUS OF PROGRAM OUTCOMES Operating Model 70% 80% Process and System Improvements 40% 70% Online Presence 30% 70% Pricing Simplification 50% 75% Productivity 60% 100% BLUE BETA | TELPPTV4 Culture Change 30% 100% TELSTRA TEMPLATE 4X3 B 0% 100% Benefits implemented Benefits identified Total opportuni
Slide 24: Operating Model: Simpler, Customer Centric Organisation
OPERATING MODEL CREATING A SIMPLER, CUSTOMER CENTRIC ORGANISATION Creation of a single Retail customer business unit Marketing, channel management, pricing, innovation, technology communications and shared services technology, functions streamlined with clear accountabilities Over 25 25,000 00
Slide 25: Operating Model: Better Leveraging Our Partners
OPERATING MODEL BETTER LEVERAGING OUR PARTNERS 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 BLUE BETA | TELPPTV4 other collabor
Slide 26: Process and System Improvements: Call Volumes
PROCESS AND SYSTEM IMPROVEMENTS Call Volumes Millions per month ~28% BLUE BETA | TELPPTV4 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 TELSTRA TEMPLATE 4X3 B 7
Slide 27: Process and System Improvements: First Call Resolution
PROCESS AND SYSTEM IMPROVEMENTS % First Call Resolution ~6% BLUE BETA | TELPPTV4 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 TELSTRA TEMPLATE 4X3 B 8
Slide 28: Process and System Improvements: TIO Complaints
PROCESS AND SYSTEM IMPROVEMENTS TIO Complaints ~50% BLUE BETA | TELPPTV4 30-Jun-11 31-Jul-11 31-Aug-11 30-Sep-11 TELSTRA TEMPLATE 4X3 B 9
Slide 29: TELSTRA TEMPLATE 4X3 B BLUE BETA | TELPPTV4
TELSTRA TEMPLATE 4X3 B BLUE BETA | TELPPTV4
Slide 30: Process and System Improvements: Field Revisits
PROCESS AND SYSTEM IMPROVEMENTS % of Field Revisits ~34% BLUE BETA | TELPPTV4 Sep‐08 Dec‐08 Mar‐09 Jun‐09 Sep‐09 Dec‐09 Mar‐10 Jun‐10 Sep‐10 Dec‐10 Mar‐11 Jun‐11 Sep‐11 TELSTRA TEMPLATE 4X3 B 11
Slide 31: Online Presence: Digital Transactions
ONLINE PRESENCE Digital Transactions Thousands per month ~70% BLUE BETA | TELPPTV4 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 TELSTRA TEMPLATE 4X3 B Electronic Prepaid Recharge Electronic Bill Other Transactions 12
Slide 32: Online Presence
ONLINE PRESENCE Homepage Consumer Services Online Shop Facebook and Twitter Services CrowdSupport BLUE BETA | TELPPTV4 Mobile website TELSTRA TEMPLATE 4X3 B 13
Slide 33: Pricing Simplification: Greater Value for Customers
PRICING SIMPLIFICATION 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 charges have been
Slide 34: Pricing Simplification: Purchasing and Billing Experience
PRICING SIMPLIFICATION ENHANCING THE PURCHASING AND BILLING EXPERIENCE Improved Brochures New My Offer Summaries Simplified Bill Format + + BLUE BETA | TELPPTV4 TELSTRA TEMPLATE 4X3 B 15
Slide 35: Productivity: $622M Benefits Delivered in FY11
PRODUCTIVITY $622M OF PRODUCTIVITY BENEFITS DELIVERED IN FY11 +$160m -$622m +$96m +$231m +$277m +$823m $823m $15,154m +$93m +$53m -$141m $14,184m +6.8% New BLUE BETA | TELPPTV4 STI Natural Impairments DVCs Price Business Redundancy Programme costs Productivity FY10 disasters & Other Growth & other B
Slide 36: Culture Change: Our Customer Connection Program
CULTURE CHANGE DRIVEN BY THE ‘OUR CUSTOMER CONNECTION’ PROGRAM 54 OCC sessions have been held engaging over 5,400 people leaders: 23 sessions in Melbourne (2 200 people) (2,200+ l ) 16 sessions in Sydney (1,500+ people) 6 sessions in the Philippines (800+ people) BLUE BETA | TELPPTV4 9 ses
Slide 37: Focus of the Program Going Forward
FOCUS OF THE SIMPLIFICATION AND CUSTOMER SERVICE PROGRAM GOING FORWARD EMBEDDING CONTINUOUS IMPROVEMENT IMPLEMENTING CULTURE CHANGE SECOND WAVE OF PRODUCTIVITY IMPROVEMENT BLUE BETA | TELPPTV4 TELSTRA TEMPLATE 4X3 B 18
Slide 38: Embedding Continuous Improvement
EMBEDDING CONTINUOUS IMPROVEMENT Process Owner Framework PREPARE SERVE SUPPORT Product Management Order to Activate Corporate Planning Product Development Assurance Financial and Risk Management Pricing Billing People Management Promotions and Advertising Explore Communicatio
Slide 39: Implementing Culture Change
IMPLEMENTING CULTURE CHANGE Net Promoter Score system implementation Sales and service training Changing the way we work BLUE BETA | TELPPTV4 TELSTRA TEMPLATE 4X3 B 20
Slide 40: Second Wave of Productivity Improvement
SECOND WAVE OF PRODUCTIVITY IMPROVEMENT Focus on capital as well as OPEX Broader scope Deeper set of changes BLUE BETA | TELPPTV4 TELSTRA TEMPLATE 4X3 B 21
Slide 41: Gordon Ballantyne, Chief Customer Officer
TELSTRA TEMPLATE 4X3 B BLUE BETA | TELPPTV4 CHIEF CUSTOMER OFFICER GORDON BALLANTYNE
Slide 42: Customer Satisfaction: Improved Momentum
CUSTOMER SATISFACTION IMPROVED MOMENTUM TELSTRA OVERALL CUSTOMER SATISFACTION JUN 10 OCT 10 FEB 11 JUN 11 OCT 11 2
Slide 43: Recap - Last Year's Key Battlegrounds
RECAP - LAST YEAR’S KEY BATTLEGROUNDS 3
Slide 44: Core Product Momentum Has Carried Into 2012
CORE PRODUCT MOMENTUM HAS CARRIED INTO 2012… RETAIL MOBILE QUARTERLY SIO GROWTH RETAIL FIXED BROADBAND QUARTERLY SIO GROWTH Sep 10 Sep-10 Dec 10 Dec-10 Mar 11 Mar-11 Jun 11 Jun-11 Sep 11 Sep-11 Sep 10 Sep-10 Dec 10 Dec-10 Mar 11 Mar-11 11* Jun-11 Jun Sep 11 Sep-11 POSTPAID HANDHELD ARPU CONSUMER BUN
Slide 45: Organising to Win
ORGANISING TO WIN CHIEF CUSTOMER OFFICER TELSTRA TELSTRA TELSTRA CONSUMER & ENTERPRISE & TELSTRA CLEAR BUSINESS COUNTRY WIDE GOVERNMENT STRATEGY & OPERATIONS CUSTOMER SERVICE 5
Slide 46: Driving Value from the Domestic Core
DRIVING VALUE FROM THE DOMESTIC CORE OUR KEY GROWTH AREAS REMAIN UNCHANGED G O MOBILE GROW O BUNDLES NAS 6
Slide 47: Driving Value from the Domestic Core: Revenue
DRIVING VALUE FROM THE DOMESTIC CORE FY11 RETAIL FIXED NAS MOBILES IP & DATA PAY TV FY14 RETAIL REVENUE & OTHER REVENUE 7
Slide 48: Still a Long Way to Go
STILL A LONG WAY TO GO WE HAVE MORE DETRACTORS THAN PROMOTERS Illustrative purposes only 8
Slide 49: Our Ambition
OUR AMBITION TO CHANGE THE WAY OUR CUSTOMERS TALK ABOUT TELSTRA 9
Slide 50: Telstra Is Changing
TELSTRA IS CHANGING What we are doing to improve customer satisfaction We are making progress Over a quarter of a million customers have used our dedicated move team. Following Telstra’s announcements of weekend technician services, more than 100,000 weekend appointments have been used by our custom
Slide 51: Telstra Is Changing
TELSTRA IS CHANGING What we are doing to improve customer satisfaction What we have done CONNECTING CUSTOMERS TO THE RIGHT AGENT We are trialing a Voice Call Back (VCB) service for Telstra Business customers that provides them with the option to receive a callback instead of waiting on hold for a cu
Slide 52: Telstra Is Changing
TELSTRA IS CHANGING What we are doing to improve customer satisfaction ENHANCING THE BIGPOND EXPERIENCE BigPond is delivering more content across a range of devices, with a new capability called the Aggregator which enables cross media channel links, allowing customers to have visibility of new cont
Slide 53: Telstra Is Changing
TELSTRA IS CHANGING What we are doing to improve customer satisfaction In addition, Telstra Business Centres now manage the account relationship with small business customers in their area, providing a local presence and contact for surrounding businesses. We now have more than 80 business centres a
Slide 54: Telstra Is Changing
TELSTRA IS CHANGING What we are doing to improve customer satisfaction Telstra Wholesale has introduced an enhanced fault escalation service, offering customers a one-step fault escalation service instead of the previous three-step process. A dedicated team of service experts are on the job 24 hours
Slide 55: Telstra Is Changing
TELSTRA IS CHANGING What we are doing to improve customer satisfaction BETTER VALUE Telstra launched the $0 ADSL Home Network Gateway device offer for our Consumer customers who connect to a new bundle or broadband service to provide a faster internet service from multiple locations within their hom
Slide 56: Telstra Is Changing
TELSTRA IS CHANGING What we are doing to improve customer satisfaction Telstra customers can now have up to 15 additional BigPond email addresses per account. Telstra offers a virtual account manager service for Australia’s small business customers, such as small printing firms, where we proactively
Slide 57: Telstra Is Changing
TELSTRA IS CHANGING What we are doing to improve customer satisfaction Telstra staff have been provided with a direct way to help resolve service issues for friends, colleagues or acquaintances through the Telstra Employee Referral process. TELSTRA CORPORATION LIMITED (ABN 33 051 775 556) | PRINTED
Slide 58: Realising the Network Applications & Services Opportunity
REALISING THE NETWORK APPLICATIONS & SERVICES OPPORTUNITY BRENDON RILEY, CHIEF OPERATIONS OFFICER PHILIP JONES, EXECUTIVE DIRECTOR, DIPNAS PAUL MCMANUS, EXECUTIVE DIRECTOR, NAS TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 THERE IS ROOM TO GROW OUR MARKET Carriage +1% Network Apps & Services +11% CAGR W
Slide 59: Telstra's Value Proposition & Differentiation
TELSTRA’S VALUE PROPOSITION & DIFFERENTIATION Network integrated Breadth of applications offers Secure intelligent Deep expertise networks and partnerships Visibility and Scale and TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 control reliability Delivering differentiated customer-centric solutions 3 OU
Slide 60: Unmatched Functional Capability
UNMATCHED FUNCTIONAL CAPABILITY Skilled and competent people Accreditations, practices and tools World-class facilities Global Operations Managed Network TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 Centre Operations Centre Hong Kong Telstra Security Operations NOC Centre TELSTRA’S RESOURCES ENABLES CU
Slide 61: Customers Are Increasing Their NAS Solution Suite
CUSTOMERS ARE INCREASING THEIR NAS SOLUTION SUITE AVL Solution Escalator Signet Solution Escalator Video Customer Value Conferencing IAAS IP Dedicated Customer Value Telephony Telstra Hosted Dedicated Managed VVX1500 Utility Networks Managed & Utility IP TIPT Networks Managed Hosting IP Wireless Bac
Slide 62: Delivering Services to a Connected Home
DELIVERING SERVICES TO A CONNECTED HOME HUGH BRADLOW CHIEF TECHNOLOGY OFFICER TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 CONNECTED HOME TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 Telstra Corporation: investor.relations@team.telstra.com
Slide 63: Information Storage & Retrieval; Communication
INFORMATION STORAGE & RETRIEVAL CONTENT ON MULTIPLE DEVICES TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 COMMUNICATION NEXT GENERATION CALLING TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 Telstra Corporation: investor.relations@team.telstra.com
Slide 64: Entertainment; Monitoring & Alarming
ENTERTAINMENT CONVENIENT & SOCIAL TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 MONITORING & ALARMING TELSTRA INNOVATION PROJECT – HOME MONITORING TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 Sensor Alert Configure alerts, notifications & Monitor (e.g. live video) from Receive alerts and notifications auto
Slide 65: Service Delivery & Support
SERVICE DELIVERY & SUPPORT REMOTE AGENT HELP TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 Telstra Corporation: investor.relations@team.telstra.com
Slide 66: Investor Day 2011: Telstra Mobile
NOVEMBER 2011 INVESTOR DAY TELSTRA MOBILE MIKE WRIGHT & WARWICK BRAY TELSTRA & AUSTRALIA’S NUMBER ONE MOBILE NETWORK ENGINEERED FOR DATA NEXT G® : SINGLE NATIONAL HYBRID HSPA/LTE WBB NETWORK COVERAGE TO OVER 2.1 MILLION SQ KM AND OVER 99% OF POPULATION SINGLE ALL IP CORE FOR SIMPLE TRAFFIC MANAGEMEN
Slide 67: Demand Growth Challenges and Technology Roadmap
DEMAND GROWTH CHALLENGES ARE SIMILAR TO MANY OTHER OPERATORS Busy hour data throughput doubling every 12 months Leveraging our Technology Roadmap TODAY to manage demand and maintain user experience downlink Looking to the future • ongoing use of standards evolution & new spectrum • Increased use of
Slide 68: Managing Demand and Cost of Capacity
MANAGING DEMAND & COST OF CAPACITY USING AN ADVANCED TECHNOLOGY ROADMAP Relative Cost: Hybrid HSPA+/LTE Relative Technology Cost Index 100 75 50 25 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 WCDMA HSDPA HSPA+ LTE (R99) * Excludes trends from GPRS & EDGE as not carried INVESTOR on the Next DAYG2011 ® netwo
Slide 69: Product Mix Influence on ARPU
PRODUCT MIX INFLUENCE ON ARPU ARPU IS MORE INFLUENCED BY PRODUCT PROLIFERATION THAN THE PAST; WE MANAGE ARPU BY PRODUCT & MARKET SEGMENT HANDHELD MOBILE BROADBAND FUTURE MOBILE POSTPAID PREPAID POSTPAID PREPAID TABLETS M2M PRODUCTS CONSUMER BUSINESS ENTERPRISE Stayer Good V Bad Leaver changes in ARP
Slide 70: Mobile Profitability and M2M Opportunity
MOBILE PROFITABILITY OUR MARGIN IS AN OPPORTUNITY Opportunity: Handsets Australian mobile margins low • Number of events • Percentage of recontract • SIM only Not revenue related • Plan mix • Handset mix Opportunity: Other • Calls/customer Cost related • Rework 9 INVESTOR DAY 2011 MOBILE M2M IS A SI
Slide 71: Opportunities in All Products and Segments
WE HAVE OPPORTUNITIES IN ALL PRODUCTS AND SEGMENTS PRODUCT OPPORTUNITIES AND CHALLENGES Post paid handheld Pre paid handheld Post paid mobile broadband Pre paid mobile broadband Network advantage; Marketing; LTE devices Improved customer service Online INVESTOR DAY 2011 MOBILE CONCLUSIONS We manage
Slide 72: The Critical Role of Brand Marketing
The critical role of brand marketing Mark buckman – chief marketing officer
Slide 73: Why Did We Revitalise the Brand?
Why did we revitalise the brand? We’re the most valued brand… but we can be even better Best1 Our brand value Rank Brand Average Sector Value (‘000m) 1 Telecoms 9,700 Worst 2 Banking / Financial 7,100 3 Banking / Financial 5,100 4 Banking / Financial 4,800 5 Retail 4,600 6 Banking / Financial 3,200
Slide 74: Why Did We Revitalise the Brand?
Why did we revitalise the brand? …but we can be even better WHY DID WE REVITALISE THE BRAND? ... BUT WE CAN BE EVEN BETTER Our brand Attributes Network Network 7.5 7.0 6.5 Community 6.0 Community Products Products 5.5 5.0 4.5 4.0 Service Relevance Relevance Service Satisfaction Satisfaction 1) Sourc
Slide 75: The Brand Needed to Reflect the Changing Face of Telstra
The brand needed to reflect the changing face of Telstra and our transformation into a sales and marketing company Our brand health at september 18, 2011 1 Awareness of Telstra is strong. The anomaly in our brand pyramid is purchase is greater than consideration. Evangelists Currently, people buy fr
Slide 76: Designing the New Identity
When designing the new identity, we had to be sure that we represented a true reflection of telstra and our brand essence of connection 1. Show and tell people that Telstra is changing: If the culture was becoming more customer centered, so should the brand identity. Customers had to live at the cen
Slide 77: It Starts with the Full Spectrum of Colours
It starts with the full spectrum of colours… Logos Photography Spectrum Retail store 58 Fleet 3 6 Lock-up Partner logos ll ar s for 2 5
Slide 78: Six Dimensions Benchmarked to Drive Consideration
Six dimensions are being benchmarked to drive consideration and satisfaction competitively Core brand Attributes Network 7.5 7.0 6.5 6.0 Community Products 5.5 5.0 4.5 4.0 v Service Relevance Satisfaction Telstra Today Our Aspiration 7
Slide 79: Brand Metrics Are a Key Driver in Customer Satisfaction
Brand metrics are a key driver in customer satisfaction Customer satisfaction scores from 01/07/10 – 30/09/11 Product 10 9 Best Product 8 Average 7 Price Worst Price 6 5 4 Brand Brand 3 2 1 Service Service 0 Q1 Q2 Q3 Q4 Q1 FY 2010/11 FY 2011/12 8
Slide 80: Consideration Has Grown Following the Brand Relaunch
Consideration for the telstra brand has grown significantly following the brand relaunch 80 70 60 50 40 30 20 New New brand Brand 10 launch Launch 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY11 FY12 FY13 FY14 Purchase Consideration