Spark New Zealand Limited · NZX:SPK
Spark New Zealand — Shareholder Meeting (2015)
38 slides from Spark New Zealand's shareholder meeting presentation, 2015
Slide 1: Spark New Zealand Annual Meeting 2015
SPARK NEW ZEALAND ANNUAL MEETING 2015
Slide 2: Order of Meeting
Spark New Zealand Spark 2015 New Zealand 2015 2 Order of Meeting: Introductions and formalities Chairman’s address Managing Director update Resolutions Shareholder questions Conduct of polls Meeting close
Slide 3: Introductions
Spark New Zealand 2015 3 Introductions Jolie Hodson – Chief Financial Officer Ido Leffler – Director Dr Murray Horn – Director Simon Moutter – Managing Director Charles Sitch – Director Paul Berriman – Director Justine Smyth – Director
Slide 4: Formalities
Spark New Zealand 2015 4 Formalities • Notice of Meeting • Quorum • Proxies • Annual Financial Statements
Slide 5: Chairman's Address
Spark New Zealand 2015 5 Chairman’s Address
Slide 6: Spark New Zealand has changed enormously
Spark New Zealand 2015 6 Spark New Zealand has changed enormously Now a competitive digital services retailer not an old-fashioned Telco Reliance on old telephone products shrinking, with a greater emphasis on data, mobile and ICT platform services Focused solely on serving New Zealand, with a fast
Slide 7: We're investing significantly in New Zealand's digital future
Spark New Zealand 2015 7 We’re investing significantly in New Zealand’s digital future: • Nationwide fibre • 4G mobile • Optical Transport Network • Best in class data centre and Cloud capability • Re-engineered IT systems putting customers at heart • New growth ventures like Lightbox, Qrious and Mo
Slide 8: Results reflecting ongoing execution
Spark New Zealand 2015 8 Results reflecting ongoing execution: Returned to modest earnings growth in FY15, driven by excellent market performance Significant improvement in free cash flow, providing confidence to increase dividends for shareholders Share buyback and special dividends helping to retu
Slide 9: FY16 measuring up well
Spark New Zealand 2015 9 FY16 measuring up well: First quarter results on-plan Executional focus being maintained across Spark As a result, we are reaffirming our guidance to the market of 0-3% growth in reported EBITDA
Slide 10: Next phase of growth strategy won't be easy
Spark New Zealand 2015 10 Next phase of growth strategy won’t be easy: Demand for data and mobile is booming and we see significant market opportunities But monetising it will be hard New ventures will take time Competition will not be standing still Customer service being challenged by fibre proces
Slide 11: We have competitive advantages
Spark New Zealand 2015 11 We have competitive advantages: • A clear and consistent long-term strategy • Proven executional ability and performance • Judicious investment in network leadership, digital capability and growth opportunities
Slide 12: Outstanding people committed to our customers
Spark New Zealand 2015 12 Outstanding people committed to our customers: • Strong leadership team and talented people • Wide range of talent development programmes now in place • Greater focus on ensuring our people better reflect diversity of customer base • Having right incentives in place to crea
Slide 13: A diverse and active Board with a strong renewal programme
Spark New Zealand 2015 13 A diverse and active Board with a strong renewal programme: Actively engage with investment community Arrival of Ido Leffler in 2014 to replace Kevin Roberts Strong, diverse skills and views Actively recruiting a new director to replace Maury Leyland
Slide 14: New Zealand's success is Spark's success
Spark New Zealand 2015 14 New Zealand’s success is Spark’s success: Thank you for your ongoing support Shareholders are our champions in the community Our success depends on how well we serve New Zealand When New Zealand succeeds, we succeed
Slide 15: Managing Director Update
Spark New Zealand 2015 15 Managing Director Update
Slide 16: Our world has been dramatically changed by technology
Our world has been dramatically changed by technology Data demand is booming Hyper-connectivity is coming Demographics are changing
Slide 17: Digital customer experiences are growing in value
Digital customer experiences are growing in value
Slide 18: This gave us a burning platform for change
This gave us a burning platform for change 2020
Slide 19: In 2013 we shared our strategy for transforming the business
Page 19 In 2013 we shared our strategy for transforming the business Four clear strategic priorities 1. Revolutionise Customer Experiences 2. Simplify the Business 3. Win Key Markets 4. Win the Future 21
Slide 20: Spark NZ is already very different from the Telecom of two years ago
Page 20 As a result, Spark NZ is already very different from the Telecom of two years ago 2013 Today Traditional fixed and mobile telco Customer oriented digital services infrastructure focus and mind-set provider with retailer’s mind-set Defending legacy product revenue, Emphasis on growth in data,
Slide 21: Outcomes achieved by keeping the executional pressure on
Page 21 These outcomes have been achieved by keeping the executional pressure on Announced Rural Launched Naked intention to re- Voice over Digital First Wireless Naked Ultra VDSL and ADSL Expanded price following fibre Programme Broadband Fibre released to Huawei draft FPP launched started launched
Slide 22: Now we're shifting fast into the next phase of the strategy
Page 22 Now we’re shifting fast into the next phase of the strategy FY16 & beyond: Drive market revenue/margin FY14 & FY15: Stabilised revenue/margin growth with continuing improvement in unit and reduced costs: costs: • Reduced prices to compete • Invest in market-leading digital products and • Ref
Slide 23: Which has been adjusted to suit the growth agenda
Page 23 Which has been adjusted to suit the growth agenda Ambition At Spark New Zealand, our ambition is to be a winning business, inspired by customers to unleash the potential in all New Zealanders To be New Zealand’s: Goals • Benchmark for amazing customer experiences • No 1 provider of mobility,
Slide 24: Brands on the rise – the investment is paying off
Page 24 Brands Benefiting on the from rising rise– the investment is paying off brands Decision to rebrand delivering uplift in brand preference measures across wider segments Spark New Zealand rising in reputation indices Net promoter scores (NPS) improved across all key areas – in HMB up 10 points
Slide 25: Strengthening organisational capability for competitive retailing
Working hard to strengthen organisational capability for competitive retailing Retailer’s mentality of competing and winning every day Major focus on talent and raising the bar on leadership and management of our people Turnaround Programme completed providing headroom for investment in the future a
Slide 26: Continuing to reorient for a data and digital services future
Continuing to reorient ourselves for a data and digital services future Invested in network leadership including nationwide fibre and 4G supported by core data transport network Invested in growth options, with Cloud IT growing strongly and Lightbox, Qrious and Morepork ventures in market and buildi
Slide 27: And turning the financial performance around
And turning the financial performance around Modest growth after years of decline Net earnings after tax from continuing operations for FY15 were $375 million, up 16.1% EBITDA from continuing operations were up 2.8% Winning in the mobile markets with 2% growth in revenue share and excellent connecti
Slide 28: We've got even bigger long-term aspirations
Page 28 We’ve got even bigger long-term aspirations Recognised as a leader in delivering digital experiences Most valued brand in the home and most important partner to businesses Number 1 in mobility, data and cloud solutions Sustained, albeit modest, revenue growth Improved efficiency driving EBIT
Slide 29: What we do matters …. as does your support
Page 29 What we do matters …. as does your support Technology will play an increasing role in New Zealand’s future success Spark is a New Zealand company – New Zealand’s success is our success Spark touches the lives of all New Zealanders every day Spark helps businesses be successful in a rapidly d
Slide 30: Resolutions
Spark New Zealand 2015 30 Resolutions 1. Auditor’s remuneration 2. Re-election of Paul Berriman 3. Re-election of Charles Sitch 4&5. Issues of shares and provision of financial assistance to MD 6. Directors’ remuneration fee pool - Withdrawn 7. Alteration of constitution
Slide 31: Auditor's remuneration
Spark New Zealand 2015 31 Auditor’s remuneration Resolution to authorise directors to fix the remuneration of the auditor, KPMG
Slide 32: Re-election of Paul Berriman
Spark New Zealand 2015 32 Re-election of Paul Berriman
Slide 33: Re-election of Charles Sitch
Spark New Zealand 2015 33 Re-election of Charles Sitch
Slide 34: Issue of shares and provision of financial assistance to the Managing Director
Spark New Zealand 2015 34 Issue of shares and provision of financial assistance to the Managing Director
Slide 35: Alteration of Constitution
Spark New Zealand 2015 35 Alteration of Constitution
Slide 36: Shareholder Questions
Spark New Zealand 2014 36 Shareholder Questions
Slide 37: Conduct of Poll
Conduct of Poll ’ ac
Slide 38: Spark New Zealand Annual Meeting 2015
SPARK NEW ZEALAND ANNUAL MEETING 2015