1. The Institute of Internal Auditors New Zealand 17 November 2014 Commercial: In Confidence

2. Page 2 Commercial: In Confidence Understanding the future trends Adapting to meet that future Take your stakeholders with you Objectives of Session

3. Page 3 Commercial: In Confidence Behavioural Attitudinal Character; with …….a little bit of process Critical Success Factors

4. Page 4 Commercial: In Confidence Enabling technology – the continued increase in personal devices and their capacity and functionality will accelerate and affect the way people communicate, purchase and access products and services; Rise of the power of the individual – supported by the advance of technology, the power of the individual (as opposed to firms) is growing; Convenience – individuals and consumers will increasingly look for convenience and options, effectively rebalancing existing relationships between providers and consumers; Economic Interconnectedness – a continued growth in borderless shopping and trade which will continue to fuel e-Commerce and impact on bricks & mortar retailing and warehousing; Urbanisation - increasing urbanisation with significant growth in Auckland and depopulating of the rural communities & other provincial areas. Mega Trends

5. OUR WORLD IS CHANGING 5 The population is getting older and more urbanised: This will impact on the services our customers demand and when and how they want to receive them Online shopping is growing dramatically: The packages and parcels market is a significant opportunity for us People are choosing to communicate online: People are sending less physical mail BUT they want to purchase our products and services online instead of visiting a store Consumers have more power and choice: Customers expect personalised, convenient services – what they want, when and where they want it. Over 1.8m internet connections today Over 3.2m Mobile internet connections today $5.6 BILLION Kiwis have spent over Shopping online in the last year

6. Commercial: In Confidence Page 6 Our World – Our Reality

7. Commercial: In Confidence Page 7 Our World – Our Opportunity

8. Page 8 Commercial: In Confidence Owning up to them! … ie: the trends Structural Change Leadership & Cultural Change Our Approach to Adapting

9. Page 9 Commercial: In Confidence Our Company - Today The New Zealand Post Group is made up of many businesses & multiple brands:

10. Page 10 Commercial: In Confidence Our Company – What we do BusinessDescription NZ Post delivers more than 700m items of mail each year to c1.9m homes around New Zealand. It also provides postal and bill payment services via a network of over 880 stores, processing more than 21m financial transactions each year. ECL, through its brands Courier Post, Pace and Contract Logistics is an express courier, logistics and courier business delivering 42m courier parcels around New Zealand. In Australia, CouriersPlease is a leading provider of metro courier services in all major cities and towns. Converga is a leader in advanced information logistics, Software as a Service and Business Process Outsourcing, delivering strategic advantages and cost savings solutions. Kiwibank provides a range of financial services across personal markets, business markets and wealth and insurance. It has 10% main bank share in personal markets and its recent acquisition of GMI propelled the bank’s combined KiwiSaver funds under management to #6 in New Zealand.

11. Commercial: In Confidence Page 11 Our Ambition To be the best at what we do... And do what matters → What customers want, there they want it, how they want it → Financial services to help Kiwis prosper → Financial returns to our shareholders and to the economy → Better ways of doing things to help make people’s lives easier → Opportunities and support for our people → Support to our communities → On our commitment to being sustainable → A lot more than people expect us to Our Purpose Our Values Our Company

12. Commercial: In Confidence Page 12 Our World – Our Strengths Market presence Customer reach – retail channels & delivery network Trusted brand Focus on service Ability to operate large scale systems History of managing change & overcoming strategic threats 1840 TelephoneFirst post office 1920s CourierFax 1960s1980sNow Internet Mobile Social Network

13. OUR PLAN – THREE THEMES 13

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17. Page 17 Commercial: In Confidence Identify who the stakeholders are Understand what the problem is Understand what you want Align interests (where possible) Messaging Clarity Transparency Consistency Tone Support people through change Taking Your Stakeholders With You

18. Page 18 Commercial: In Confidence No steady state business model Don’t be a victim – see the opportunity Deal with ambiguity Be clear who values your service (and why) Understand where you add value Think about disrupt Some Observations

19. Page 19 Commercial: In Confidence