Spark New Zealand Limited · NZX:SPK
Spark New Zealand — Investor Day (October 2015)
33 slides from Spark New Zealand's investor day presentation, Oct 20, 2015
Slide 1: Spark Home, Mobile & Business
Spark New Zealand 2015 Spark Home, Mobile & Business For personal use only Chief Executive Officer Jason Paris 1 | sparknz.co.nz
Slide 2: Continued momentum in market despite industry risk
Spark New Zealand 2015 Continued momentum in market despite industry risk For personal use only Page 2
Slide 3: Continued momentum in market despite industry risk (ctd)
Spark New Zealand 2015 Continued momentum in market despite industry risk (ctd) For personal use only (1) (1) Page 3 (1) Source: Oct 2015 IDC New Zealand Telecommunications tracker
Slide 4: Strategy update
Spark New Zealand 2015 Strategy update For personal use only Page 4
Slide 5: #1 Provider of mobility, data and cloud solutions
Spark New Zealand 2015 #1 Provider of mobility, data and cloud solutions For personal use only Page 5
Slide 6: Best run and most efficient business
Spark New Zealand 2015 Best run and most efficient business For personal use only Page 6
Slide 7: Customer inspired
Spark New Zealand 2015 Customer inspired For personal use only Page 7
Slide 8: Outcomes / measures of success
Spark New Zealand 2015 Outcomes / measures of success For personal use only Page 8
Slide 9: Ventures
Spark New Zealand 2015 Spark Ventures For personal use only Chief Executive Officer Rod Snodgrass 9 | sparknz.co.nz
Slide 10: Our context is the connected digital world
Spark New Zealand 2015 Our context is the connected digital world For personal use only
Slide 11: Our focus is on connected digital experiences
Spark New Zealand 2015 Our focus is on connected digital experiences For personal use only • Connectivity and sharing • Content and entertainment • Smart living • M-commerce and advertising • Vertical e-markets • Data and applications • Digital innovation and Our ventures are centred around creating
Slide 12: Success will be signposted across four key lenses
Spark New Zealand 2015 Success will be signposted across four key lenses For personal use only Page 12
Slide 13: The current Ventures portfolio
Spark New Zealand 2015 The current Ventures portfolio For personal use only Validate Build Launch Grow e-Health Precision Agriculture Digital Advertising Smart Cities Page 13
Slide 14: Update: Lightbox and online video
Spark New Zealand 2015 Update For personal use only Revenue and viewing minutes Pursuing a share of Pay TV profits are moving this way by fueling the transition towards online and on-demand delivered media Ad Funded Revenue growth will be driven by Revenue subscriber uptake and TVNZ OD YouTube T
Slide 15: Update: Qrious data analytics
Spark New Zealand 2015 Update For personal use only 2015 Volvo Ocean Race Origin of Domestic Visitors during Auckland Stopover At the forefront of a new market with the potential to deliver significant economic value to NZ Success will be built on our: • Scale • Unique data sets • Data science t
Slide 16: Update: Smart living and security
Spark New Zealand 2015 Update For personal use only Already seeing strong interest via website traffic and social interactions with 27% brand awareness Pursuing a share of profits in the fragmented smart living and 75,000 security sectors Website sessions Revenue growth driven by: • Subscriber u
Slide 17: We have already achieved a lot over the months
Spark New Zealand 2015 We have already achieved a lot over the 24 months For personal use only • 10 new Ventures in market generating revenue • ~150 staff • >500,000 new Spark relationships • Tens of millions of new revenue growth • Demonstrable Spark portfolio benefits • Leading the new ways of wor
Slide 18: And we have learnt a number of lessons
Spark New Zealand 2015 And we have learnt a number of lessons For personal use only 1. Have unreasonable ambitions 2. Get the right model and mandate 3. Obsess on the user experience 4. Think customer back 5. Challenge everything 6. Use design thinking, lean and agile 7. Design mobile and digital fi
Slide 19: What's next?
Spark New Zealand 2015 What’s next? For personal use only Development of emerging ‘next’ ventures: • Smart Cities • Smart Verticals – health, education and rural • Mobile/digital advertising • Ventures2.0 Embedding the Digital First Programme into plans and accelerating execution of identified f
Slide 20: Digital First Programme Update
Spark New Zealand 2015 Digital First Programme Update For personal use only 20 | sparknz.co.nz
Slide 21: Context: We live in the digital age
Spark New Zealand 2015 Context: We live in the digital age For personal use only Page 21
Slide 22: Digital disruptors are winning with frictionless digital experiences
Spark New Zealand 2015 Digital disruptors are winning with frictionless digital experiences For personal use only We will aim to offer world-class digital experiences similar to those our customers are receiving from digital disruptors who focus primarily on the experience layer Re-imagined the taxi
Slide 23: Digital First is Spark's next transformational step
Spark New Zealand 2015 Digital First is Spark’s next transformational step For personal use only Lowered cost Delivered Created new Delivered new Delivered strong base & new brand momentum in key agile, future created digital assets, position & Digital savvy market and proofed capabilities & custome
Slide 24: Success will deliver a business transformation and customer, financial and people aspirations
Spark New Zealand 2015 Success will deliver a business transformation and customer, financial and people aspirations For personal use only To digitally accelerate the transformation of our business, jump-shift customer Ambition experience, rapidly improve financial outcomes and deliver on our promis
Slide 25: We are adopting the approach of digital transformers
Spark New Zealand 2015 We are adopting the approach of digital transformers For personal use only 1 Be unreasonably aspirational Be quick and Be obsessed 7 2 data driven The with the customer 7 traits of those who have Ring fence and successfully Challenge 6 3 cultivate talent transformed into every
Slide 26: Execution will be measured against industry leaders and peers
Spark New Zealand 2015 Execution will be measured against industry leaders and peers For personal use only NZ Best industry incumbent leader telco 100% Sales % 6% 57% 50%+ online Service % 97%+ ~15% 80% 80% online Marketing % 70% 65% NA BTL ~35% Page 26
Slide 27: Example: Improving the Spark App customer experience
Spark New Zealand 2015 Example: Improving the Spark App customer experience For personal use only Current situation What we’re doing Benefits this will provide For our customers: • Poor design and • Improving design • Increased functionality that is usability and usability intuitive to use • Ability
Slide 28: What success looks like
Spark New Zealand 2015 What success looks like For personal use only KPI’s we’ll track What our customers will say • NPS improvement • “Spark anticipates what I need • Digital NPS improvement and when I need it” • Higher proportion of Digital sales • “I can do everything I need on • Higher proportio
Slide 29: Concluding Comments
Spark New Zealand 2015 For personal use only Concluding Comments Managing Director – Simon Moutter Chairman – Mark Verbiest 29 | sparknz.co.nz
Slide 30: Framing up our long-term aspirations
Spark New Zealand 2015 Framing up our long-term aspirations For personal use only • 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 g
Slide 31: Market leader in digital life and business
Spark New Zealand 2015 Market leader in digital life and business For personal use only Page 31
Slide 32: Disclaimer
Disclaimer For personal use only This announcement may include forward-looking statements regarding future events and the future financial performance of Spark New Zealand. Such forward-looking statements are based on the beliefs of management as well as on assumptions made by and information curren
Slide 33: FY16 Guidance
Spark New Zealand 2015 FY16 Guidance For personal use only FY15 Actuals FY16 Guidance Reported EBITDA (1) $962m 0-3% growth Capex (excl spectrum) $418m around $380m Dividends Per Share (2) 20 cps fully imputed Ordinary Div 22 cps (2) +Special Div 3 cps At least 75% imputed Based on our Q1-FY16 perfo