1. aiia : voice of the digital economy ‘How to get online and manage a new channel to market’ Lisa Tobin Retail Services General Manager, Technology for Australia Post

2. KEEPING AUSTRALIA CONNECTED Lisa Tobin General Manager IT, Retail Services

3. KEEPING AUSTRALIA CONNECTED AUSTRALIA POST – THE FACTS Australia’s most extensive delivery and retail network: One of Australia’s most trusted brands. Excerpt from RepTrak™ Report Feb 2012. 4,400+ postal outlets including around 2,500 outlets in rural and remote areas Founded in 1809 Australia’s oldest continually operating organisation Delivering 100 million mail items to 10.9 million a ddress across Australia every week Providing access to government and business services (e.g. bill payments, day-to-day banking transactions, money transfers or passport applications) Apple Australia Australia Post JB HI-FI Toyota Motor Corporation Nestle Australia 77.85 76.26 76.09 75.17 74.35

4. KEEPING AUSTRALIA CONNECTED WE HAVE TWO VERY DIFFERENT BUSINESSES >Letters volume in decline >Price constrained >High fixed costs >Profitable opportunities >Profit needed to fund major investment in eCommerce, Parcels and digital growth <250g1,900 metro outlets Parcels eCommerce Digital communications Super stores Business Hubs Multi-channel trusted services Regulated Non-Regulated TransportRegional & Remote 2,500 outlets

5. KEEPING AUSTRALIA CONNECTED AUSTRALIA’S COMMUNICATION NEEDS ARE CHANGING 2009/10 Australians sent 27 billion text messages and 400 billion e-mails. Globally 140 million tweets per day and 900 million Facebook accounts. Online spending is predicted to grow by at least 10 per cent annually through to 2020. 70 per cent of Australia Post’s parcel deliveries now generated by an online transaction. (m) Impact on our network

6. KEEPING AUSTRALIA CONNECTED Build a sustainable communications business physically and digitally. 1 1 Embed business efficiency and service quality. Embed culture and behaviours, build capabilities and foster engagement. WE’RE TRANSFORMING OUR BUSINESS Build a world-class parcels business with excellence in service performance. 2 2 Build a multi-channel trusted services offer for consumers. 3 3 4 4 5 5

7. KEEPING AUSTRALIA CONNECTED WE’RE ENSURING THE ONGOING RELEVANCE OF OUR RETAIL NETWORK 7 Tailoring store formats to customer demographics. New superstores opening across the country. 24/7 parcel lockers and self-service zones. In-store online shopping. Creating new product categories, eg Travel. Multi-channel delivery of core products & services. Optimising supply chain.

9. KEEPING AUSTRALIA CONNECTED WE’RE GETTING IN TOUCH WITH OUR CUSTOMERS New customer experience program “retailCX” to capture the “voice of the customer” and measure the true customer experience. Customers asked to provide feedback on their in-store experience. Around 110,000 responses received over three weeks. 72% of responses provided online. Survey takes around 4 minutes. Prize of $1,000 worth of gift cards on offer as an incentive. Each post office receives a weekly report with their feedback.

10. KEEPING AUSTRALIA CONNECTED WE’RE ADAPTING TO CHANGING CUSTOMER PREFERENCES 10 Australia Post Digital Mailbox Launch Q4 2012 What it means for: Post: A new platform/channel in our digital suite. Business: A cost-effective new channel to communicate with and market to customers. Government: Opportunity for trusted, secure communication with Australians. Consumers: A new tool to manage day-to-day life.

12. KEEPING AUSTRALIA CONNECTED WE’RE HELPING CONSUMERS & BUSINESSES GET ONLINE Delivery Choices Providing more convenience & choice New processes New International Products Low cost satchels and boxes New products, competitive pricing & home delivery service Farmhouse Direct Online services Upgraded business hubs Supporting consumers & Australian retailers get online Superstores & extended hours 24/7 access & Parcel Lockers

13. KEEPING AUSTRALIA CONNECTED OUR LEARNINGS Online will continue to grow – it’s something you can’t ignore. Online doesn’t have to be at the expense of bricks and mortar retailing – you can help customers adapt to transacting online. Start small – build your online presence with a limited product set to gauge demand. Leverage proven payment solutions that already exist to get on line faster. Don’t create your own. Get to know your customers’ needs in detail – listen and respond to them. Expand the way customers can engage with you (mobile App, website, social media, digital marketing) and be responsive to changing needs.

14. aiia : voice of the digital economy