Investor Day M2 Telecommunications Group Ltd. Geoff Horth, CEO 15 November 2012

Transcription

1 Investor Day M2 Telecommunications Group Ltd Geoff Horth, CEO 15 November 2012

2 Investor Day Agenda Speaker Time Topic 10.40am 10.50am 11.20am 11.30am Geoff Horth CEO Scott Carter Business & Wholesale Director Tea/Coffee Break Tom Mazerski Chief Customer Officer 12 noon Geoff Horth CEO Panel Q&A 12.45pm Lunch Welcome Core focus on SMB Consumer Strategy M2 is NBN ready Closing Remarks 1.30pm Data Centre Tour Optional Investor Day, 15 November 2012, Slide 2

3 Executive Management Team Vaughan Bowen, Executive Director Responsible for strategic acquisition opportunities and assists managing supplier and market relationships Co-founded M2 in 1999 and transitioned from MD into Executive Director in 2011 Previously responsible for managing the SE Asian operations of Secure Parking Geoff Horth, Chief Executive Officer Responsible for the leadership of M2 and ensuring a structured approach to acquisition assessment and integration Joined M2 in 2009 and in current position since Oct years experience in vendor and service organisations in the telco industry Darryl Inns, Chief Financial Officer Responsible for the company s financial reporting, management accounting, internal audit and credit management Joined M2 in 2001 and current position since 2004 Previously held senior finance roles in tech & manufacturing in Aus and UK Kellie Dean, Corporate Services, Company Secretary Responsible for legal and regulatory affairs, HR, IR and corporate comms Joined M2 in Oct-2007 Previously worked as Company Secretary for Orion Telecom and has experience in M&A, corporate governance, compliance and risk management 3

4 Executive Management Team Steve Wicks, Director New Markets Responsible for the sales and channel management for emerging markets in Fibre and NBN Joined M2 in 2000 and worked as GM of Retail and Group Sales Director Previously worked in sales management for more than 15 years Scott Carter, Business & Wholesale Director Responsible for retail sales channels and wholesale business unit Joined M2 in Apr-2011 Previously held management positions with Hutchison, Request Broadband and PowerTel, and most recently MD of Clever Communications Tom Mazerski, Chief Customer Officer Responsible for contact centre operations and consumer business unit Joined M2 in Jun-2012 Previously held the position of CEO at Primus Telecom Michael Speglic, Commercial Director Responsible for carrier relationships and agreements, revenue assurance, procurement and due diligence of M&A opportunities Joined M2 in 2007 following the acquisition of Orion Telecom Previously worked in roles across sales, billing and product development 4

5 Executive Management Team Alistair Carwardine, Technology Director Responsible for IT and Network division Joined M2 in 2009 following the acquisition of Commander Previously worked at Qantas, Peakhour, AOL7, News Ltd and Orion Telecom Sarah Curtis, Product Marketing Director Responsible for product management, brand development, marketing campaigns and customer life cycle management Joined M2 in 2009 following the acquisition of People Telecom Previously worked at Metro International, Macau China Johnathan Eele, Managing Director/CEO M2 NZ Responsible for NZ business Joined M2 in 2010 following the acquisition of Black + White, NZ Previously worked at Cable & Wireless, Hutchison Whampoa and Telecom NZ 5

6 Scott Carter Business & Wholesale Director Responsibilities: SMB & Wholesale Market and Customer Characteristics Business Segment Strategy Implications of NBN for SMB

7 We understand SMB Small Business Market: (2-20 employees) Typically single site Standard product offerings Price sensitive Value price certainty 735k business Medium Business Market: ( employees) Typically multiple site Bespoke enterprise grade solutions Low in-house IT resources Value managed network solutions 80k businesses 7

8 Market and Customer Characteristics Business Segment Strategy Implications of NBN for SMB

9 Uniquely positioned in Small Business Objective To be recognised as the trusted partner in the Small Business market; better at accessing and servicing the segment than any other provider Path to market Indirect channel approach 100+ Commander dealers inclusive of over 500 sales resources Supported by Qld centre setting appointments Inside Sales teams providing account management and improving product penetration Value proposition Easy to understand bundled offerings Fixed, Mobile, Data Phone Rental, Maintenance Commander Holiday Rewards Every customer allocated an Account Manager Australian-based service Trusted partner for all business communication needs

10 Trusted partner to Medium Business Objective To be the trusted partner to mid size businesses for managed communication and cloud services Path to market Value proposition National direct sales team Alliance partner program Dedicated presales team Dedicated onshore operations and customer support teams Tailored bespoke solutions for delivering managed voice, data, mobile & cloud services Enterprise grade solutions Integrated sales and service organisation delivering the best sales, account management and service experience in the segment Customer speak not technology!

11 Take Command Challenge To re-create brand personality to ensure relevance in today s market whilst respecting trusted brand image Now Brand with long & trusted history Dominance associated with 70 s & 80 s Data integral to daily operations exasperated in NBN world of ones & zeros Future Commander will be known for providing simple, integrated solutions we control the chaos so our customers can take command of their business Our platform will actively engage with decision makers of the future (NBN) Positioned to become the preeminent SMB challenger on NBN

12 Take Command Investor Day, 15 November 2012, Slide 12

13 Take Command Investor Day, 15 November 2012, Slide 13

14 Market and Customer Characteristics Business Segment Strategy Implications of NBN for SMB

15 Opportunities for SMB and M2 NBN is a great opportunity for SMB: A significant customer upgrade event Online ubiquity, more bandwidth, more options Access to enterprise grade services for SMB s Improved access to Cloud services Dispersed workforce + remote specialist workers M2 is well positioned for NBN Commander is a trusted SMB brand Scalable national distribution network to access customers as geographic areas activate NBN Full range of IP voice, data and cloud services to bundle with NBN access Investor Day, 15 November 2012, Slide 15

16 Tom Mazerski Chief Customer Officer Responsibilities: Customer experience, Consumer earnings and NBN Consumer Strategy M2 is NBN ready #1 in Customer Satisfaction

17 Protecting Copper, growing fibre Objective To maintain current revenue and grow EBITDA To be a market leader in fibre growth segments Path to market Targeted Marketing Laser Marketing Community Focus Online (Self Service) Consumer Friendly Channels Public Relations Use Free Media to communicate Brand, New Products & Key Wins Focused cross sell Value proposition No Worries Product & Service Bundles To Meet Individual Needs Why Wait? Move Services Now, iprimus Has NBN/FTTH Know-how & Seamless Conversion To Fibre Value Versus Price Best Value Bundles/Contracts Singles Competitive Pricing Service Excellence First Call Resolution In Seconds/Minutes Versus Hours/Days

18 Protecting Copper targeted marketing

19 Protecting Copper product penetration

20 Fibre Ready

21 Consumer Strategy M2 is NBN Ready #1 in Customer Satisfaction

22 M2 is NBN Ready Similar Product Constructs 3 Technologies New Markets

23 Fibre Market Leader Skilled team members in fibre connectivity Established facility based Voice & Broadband provider Scalable operational business processes Eclectic network platform Certified & connected to available POI s First to receive NBN Co s B2B interoperability certification Lead participant UNI-V enhancement program (Voice Over NBN)

24 Easy to Choose, Easy to Use Seamless Copper to Fibre Transfers Plug & Play Set Up Trusted brands and advice One Stop Shopping Simplicity & Ease of Use

25 Preparing for the Future State Total POI's Suburb Count Premises in Rollout Through July 2013 Tasmania ,706 Victoria ,514 New South Wales & ACT ,315 QLD ,452 Western Australia ,100 South Australia ,481 Northern Territory , ,368

26 Same approach, new technology

27 Consumer Strategy M2 is NBN ready #1 in Customer Satisfaction

28 Simple approach, make it easy Offer Products Customers Understand Value Pricing Installations On Time, clear communication/expectations Plug & Play Devices Self Service Via Online Tools If/When Things Break Fix In Seconds/Minutes Engineer Processes For First Call Resolution Treat Every Customer As They Are The Only One We Have

29 Measuring Success Approach Leverage combined capability of centres Activity/Measure Identify and use Best-Of-Breed Processes Scale common functions Understand why customers call Daily Feedback Loops Reengineer For Customer Satisfaction Constant daily appraisal against key metrics Measure v. Peers for Best-In- Class Percentage Calls With First Call Resolution Churn Same Location/Same customer Roy Morgan Monthly Surveys

30 Overview Protecting Copper, Growing Fibre M2 is NBN ready Simple approach make it easy

31 Geoff Horth Chief Executive Officer Closing Remarks

32 Q1 Update Primus integration on track, earnings contribution in line with expectations Premise consolidation complete Customer office delivering improvements in customer experience Network and IT system consolidation programs well advanced Synergy realisation activities on track Investor Day, 15 November 2012, Slide 32

33 Five Strategic Pillars 1. Invest in small business segment, grow share of market and wallet 2. Focus direct sales organisation on medium business segment ( seats), drive managed voice and data services 3. Maintain consumer earnings and look for growth in new markets (NBN) 4. Be Number 1 in customer satisfaction 5. Continue to pursue synergies and operational efficiency Investor Day, 15 November 2012, Slide 33

34 FY13 Guidance $m FY12(a) FY13 Guidance % Change (from midpoint) Revenue Up 60% EBITDA Up 88% EBITDA margin 15.3% 17.9% Up 17% NPAT Up 38% NPAT (underlying*) Up 52% EPS (cents per share) Up 13% EPS (cents per share, underlying*) Up 24% Capex (as % of revenue) 1.3% 3.0% Up 131% Free Cash Flow Up 53% * Underlying NPAT and EPS figures each include an add-back of a non-cash cost of $5.1 million (FY12) and $12.4 million (FY13) for amortisation associated with customer contracts acquired in the relevant period (in accordance with Australian Accounting Standards) Investor Day, 15 November 2012, Slide 34

35 Contacts Name Position Phone / Geoff Horth Chief Executive Officer / ghorth@m2.com.au Darryl Inns Chief Financial Officer / darrylinns@m2.com.au Kellie Dean Company Secretary / kdean@m2.com.au Investor Day, 15 November 2012, Slide 35

36