1. Ocean Park Maintaining Employee Engagement and Focus in a Highly Competitive Market Tom Mehrmann 28 June 2005 Tom Mehrmann Chief Executive, Ocean Park 28 June 2005

2. Agenda Ocean Park - Uniquely Hong Kong A Competitive Environment Investing in People

3. Ocean Park – Uniquely Hong Kong

4. Where Did We Come From… Opened in 1977 Public trust Not-for-Profit Owned by Government Over 70 million visitors in the past 28 years Education + Entertainment = Edutainment Everyone in Hong Kong has an Ocean Park memory

5. Current Opportunities

6. Competition is increasing on all fronts Disneyland Opening in September 2005 Tung Chung Cable Car in 2006 The opening of Hong Kong Wetland in late 2005 The growth of the Entertainment industry in Macao Boom in Hong Kong’s tourism service sector means more demand for talent in the: Hotel industry Retail industry Entertainment industry Current Opportunities…

7. Where Are We Today… Over 4 million visitors/year Financially stable Leader in Education & Conservation Asia’s Standard-Bearers for Conservation The Gold Standard for Animal Husbandry Ongoing Community Outreach Program New Ocean Park Academy Involved in World Conservation Organizations & Education Programs Increased attendance from Mainland Entertaining a sophisticated new generation Facing new challenges and competition Aging facilities: need repair

8. In this environment we need to: Continue to attract people to the Park Develop a value proposition that is relevant to Hong Kong Re-discover ourselves and our true identity Energize our stakeholders Government Suppliers Guests Employees Attract, retain and develop the right talent Opportunities we have today…

9. We have a game plan…

10. it’s time

11. Vision Statement “Ocean Park aspires to be the world leader in providing excellent guest experiences in a theme park environment connecting people with nature.”

12. We Have a Game Plan… The Comprehensive Master Plan Stay true to Ocean Park’s core values & local market Focus on differential qualities Create world class “MUST SEE” attractions complementing Disney Appeal to growing destination tourism market in HK Increase the size of the Park for greater capacity Put more OCEAN in Ocean Park Put more ANIMALS in Ocean Park

13. We Have a Game Plan… Become the catalyst for the Aberdeen Tourism Corridor Economic benefits to the community Keep the Best. Improve the Rest Financially Feasible and sustainable Made in HK…. Great for Hong Kong!

14. Bringing our people on the journey

15. Ensuring Appropriate Communication Our First Task is to Ensure that our People are on Board We Want to Make Sure People Want to be Part of Our New Vision How? We developed a video and a whole show around our Vision of the future We Held Multiple Communication Sessions with all Our Employees We Made Sure Senior Management Communicated the Important Messages We Showed our People Our Vision for the Future and Demonstrated that we can survive and thrive in a competitive market

16. Aligning Staff Focus Mission Statement: Ocean Park provides all guests with memorable experiences that combine entertainment and education, while inspiring life long learning and conservation involvement. Our aim is to maintain a healthy financial status, while offering the guests a diverse range of activities at competitive prices. Ocean Park exists for the public ’ s benefit and strives to deliver the highest standards of safety, animal care, products and guest service.

17. Aligning Staff Focus Core Values: Providing quality guest service Ensuring safety comes first Promoting education and nature conservation Delivering fun experiences Showing respect for people

18. Aligning Staff Focus Company Goals: To create and maintain an educational, responsible, culturally relevant and beautiful family leisure time environment where all guests may enjoy the great fun and warm friendliness that is Ocean Park. To achieve excellence in the design, construction, safely, maintenance, animal husbandry and operation of our facilities, shows and attractions through Preparation, Anticipation, Communication and Execution (PACE). To sustain a competitive market edge through uniqueness and quality of both product and service.

19. Aligning Staff Focus Company Goals: To caringly render professionally efficient and personally courteous service to each and every person. To attract and retain excellent employees through basic, innovative, creative and competitive Human Resource offerings. To continuously improve the financial position of the Company through effective and efficient controls, and prudent financial management practices. To reach out to our global communities to provide and promote conservation awareness through education, research, funding and direct involvement.

20. Addressing Opportunities for Productivity and Efficiency Efficiency Task Force Objective: To streamline the internal procedures and reduce bureaucracy and duplication of work from all divisions Initiated by CEO, comprises of department/division heads; CFO acts as the advisor

21. Addressing Opportunities for Productivity and Efficiency Show Quality Task Force Objective: To review the entire park area appearance/show quality and to devise a list of improvement items that need to be completed before summer Initiated by CEO, comprises of representatives from Creative Services Team, Operations Division, Engineering Division, Retail Department and Education Department

22. Addressing Opportunities for Productivity and Efficiency Guest Service Task Force Objective: To train our people to become more proactive in serving our guests so as to enhance the culture of customer-centric and professionalism. Initiated by CEO, comprises of HR and Operations representatives; frontline line staff from Operations Division and Retail Operations.

23. Addressing Opportunities for Productivity and Efficiency Staff Canteen Committee Objective: To collect and bring in suggestions and ideas to continuously upgrade the staff food services while maintain the financial viability of staff canteen. Initiated by CEO, comprises of all division representatives and Head Chef

24. Become an Employer of Choice 1. Pay Rewarding our Staff for an excellent year with Salary Increments Linking our Bonus More Closely to People’s Performance Comprehensive Job Evaluation and Market Positioning of Pay

25. Become an Employer of Choice 2. Training and Career Development Providing Management and Soft Skills Training Providing Enhance Service Skills Training Providing Coaching Skills Training Providing Language Training Overseas Park Exchange and Conventions Education Subsidy Performance Review Internal Job Posting

26. Become an Employer of Choice 3. Succession Planning Developing Succession Planning For Key Departments Licensing of critical positions Successor development/training Back-up staffing Exchanges and learning with overseas theme parks

27. Become an Employer of Choice 4. Motivation by Staff Communication Vision, Mission, Values and Goals Master Redevelopment Plan Budget Directions and Corporate Messages Staff Newsletter Staff Briefings Company Announcements

28. Become an Employer of Choice 5. Motivation by Incentive and Awards Star Award Long Service Award Staff Suggestion Scheme Spot Service Award Incentive Trips

29. Become an Employer of Choice 6. Motivation by Staff Activities Recreational Events Staff Appreciation Parties/Halloween Preview Service Competition Safety Quiz Cleanliness Campaign Know-the-Park Competition Seasonal Gifts to Staff

30. Become an Employer of Choice Recent Actions Taken: Conducted an Engagement Study with Hewitt to: Understand the Engagement Drivers for our Employees Find Out if Our Employees are Excited by the Master Plan Analyze the issues that may affect our employees’ ability to deliver on the Master Plan.

31. Become an Employer of Choice Engagement Study Benefits (cont’d): Develop short long term strategies to become a more competitive employer Listen and Learn from our Employees Provide a framework for ongoing improvement, leadership and management Determine short-term actions to enhance employee engagement

32. Become an Employer of Choice Employees Are Excited About the Master Plan 82% of employees agree or strongly agree that the implementation of the Master Plan redevelopment of Ocean Park is important to their continued commitment to work at the Park —The figure goes up to 96% if we include people who slightly agree

33. Become an Employer of Choice 74% trust that the Master Plan redevelopment of the Park will secure the Park’s future and protect their jobs —The figure goes up to 93% if we include people who slightly agree

34. Become an Employer of Choice The engagement study showed us that a number of items will improve engagement at Ocean Park: Clearer and more streamlined Policies and processes More career opportunities and clearer processes around people’s careers Better management and leadership skills from our managers

35. Become an Employer of Choice We have task forces working on all these items and are confident of making significant progress over the next few weeks and months

36. Become an Employer of Choice The engagement study also gave us an opportunity to identify short-term actions that will make a difference Improvement to uniforms, employee facilities and transportation

37. Final Tips If you really want to maintain employee focus and engagement in a competitive market you need to: Define and communicate your vision clearly and in ways that touch people Understand what drives engagement in your Company Listen to your people and take actions that matter to them Continue listening and placing people at the chore of your strategy to win

38. Thank You Q & A Session