1. Print Mail Logistics Limited
Business overview and industry
y
update
Adrian Pereira
Commercial Manager and CFO
20 September 2012
Revenue Management Association
The Meadows Sports & Function Centre
80 Northcorp Boulevarde, Broadmeadows

2. 2
Presentation overview
• PML – a brief overview
• PML – recent developments
• Market overview – Australia and Victoria
• Key buyer demands
y y
• Buyer decision making
• PML’ service offering
PML’s i ff i
• Likely market changes in the next 12-36 months.

3. 3
Key message
We aim to demonstrate our experience as a
credible supplier specialising in the preparation,
production and distribution of rate and water
d i d di ib i f d
notices for regional and city Councils located
throughout Australia.

4. 4
PML – brief overview
• Australian public company listed on the National
Stock Exchange of Australia;
• Production facilities based in Hobart, Tasmania;
, ;
• Providing services to Local and State Government
for over 20 years;
y ;
• Distributes 10M mail items per annum including 4M
on behalf of Local and State Government;
• Now produces rate, water and animal notices on
behalf of 36 Councils (25 at 30 June 2011) located in
NSW, QLD, VIC and TAS.
d

5. 5
PML – recent developments
In the last 9 months PML has:
▫ Enhanced service offering to cater for:
 Online notice retrieval and archiving
 E-distribution and E-notification
 SMS delivery
 MICR capabilities
 E-bill presentation;
▫ Increased market share in key target markets
including being awarded its first Contract in Victoria;
▫ Demonstrated the strength of our service offering to
key
k customers.
t

6. 6
PML...now delivering Council
requirements throughout Eastern
Australia
# of mail
# of Councils items pa
New South Wales ‐ Regional 3 300,000
New SouthWales SydneyMetropolitan
New South Wales ‐ Sydney Metropolitan 3 200 000
200,000
Queensland 5 550,000
Victoria 1 200,000
,
Tasmania 24 650,000
Total 36 1,900,000

7. 7
Market overview - Australia
Type NSW Vic Qld WA SA Tas NT Total
Shires 75 39 24 107 10 255
Cities 38 33 7 22 21 5 2 128
Regional councils 4 29 4 37
District council 35 35
Councils 27 6 33
Municipalities 8 19 27
Unincorporated 10 1 5 16
Towns 1 12 2 2 17
Aboriginal shires 12 12
Rural cities 6 1 7
Community government councils
Community government councils 2 2
Boroughs 1 1
Island councils 1 1
Total 152 89 74 141 64 30 21 571

8. 8
Market overview - VIC
Average # of
f
Assessments Per
Type VIC Population ('000)
Council Per
Annum'('000)
Cities 33 4,029 215
Shires 39 1,181 53
Rural Cities 6 170 50
Boroughs
g 1 3 6
Unincorporated 10 0 0
Total 89 5,384 106

9. 9
Buyer demands are consistent
throughout Australia
• Demonstrated experience
• Fast turnaround with KPI’s linked to statutory
and operational requirements
d ti l q i t
• Timely access to expert, technical advice
• Value added service components
• Financial capacity
• Commitment to Workplace Safety,
Environmental M
E i t l Management and S t i bilit
t d Sustainability.

10. 10
The commodity magnet
1980’s
1980’
2005
2008
2012 ????

11. 11
The impact on the marketplace
• Between 2008 and 2012, key providers have re
2012 re-
focused on alternative markets
•S
Successful providers h
f l id have f
focused on:
d
▫ process improvement to reduce the cost to serve;
and
d
▫ innovation to increase the price.
• Result is a significant change in the competitive
landscape.
p

12. 12
Solution buying vs. insight buying
vs
• Customer’s now have a much deeper understanding
Customer s
of their requirements together with the difference
between competitor offerings.
p g
“Our customers are coming to the table armed to
Our
their teeth with a deep understanding of their
requirements and a well scoped RFQ for a solution solution.
It’s turning many of our sales conversations into
fulfilment conversations” Harvard Business Review July-August 2012
conversations July August

13. 13
Case study:
Buyer decision making in NSW b t
B d i i ki g i between A il and J
April d June
2012
• 152 Councils in NSW
• Approx. 25 (representing 28% of mail volume) of
the
th market i
k t issued an RFQ
d
▫ Approx 12 remained with existing supplier
▫ Approx 13 changed supplier
• In most instances, RFQ’s were invited from 4
RFQ s
common suppliers from NSW, VIC, SA and TAS.

14. 14
Case study:
Buyer decision making in NSW b t
B d i i ki g i between A il and J
April d June
2012
Key themes from the RFQ process:
1. Transition to new supplier is now more seamless
<7 days
7 y
2. Supplier prices have reduced materially
3.
3 Improved service deliverables
4. Interstate competitors capable of providing a
valuable solution to NSW Councils – VIC, SA,
TAS.
...consistent with the commodity magnet

15. 15
PML s
PML’s strategy
Customer
Selection
Service
Offering
Account and
Pricing Contract
Management

16. 16
PML – Service Offering
1. Expert transition management
2. Agility and flexibility to meet Council’s changing
requirements;
3.
3 Complete responsibility over each component of the value
chain;
4. Value added solutions including;
▫ Online retrieval and archiving
▫ E-distribution and e-notification
▫ SMS notification
▫ E-bill presentment
5
5. A positive cus o e e pe e ce References who will
pos e customer experience. e e e ces o
confirm our ability to deliver.

17. 17
Service component – print and mail
Artwork and Council
Data file
Proof process
Lodgement
manifest
if t
Print and
Mail
PML Production Ratepayer
and
distribution
di t ib ti

18. 18
Service component – e-services
Data file Council
Notice pdf Secure access
(offline) to view, edit
and
User access reproduce
reports
t notices
PML ORS Server Ratepayer
Notice pdf
(online)
Unique email including URL reference to pdf
notice

19. 19
PML – Customer selection
• Anyone/anywhere model is prevalent in the industry
• PML’s customer selection model is based on
▫ Th volume requirements
The l i t
▫ The technical scope of the services required
▫ The service level expectation
▫ Our ability to provide superior account management
• Our intention is to leverage positive customer
experiences
p

20. 20
PML – Customer selection
• Over the next 12 months, our service offering will be
g
most beneficial to Councils with the following
requirements;
▫ Generally above 5 000 and up to 120 000 ratepayers
5,000 120,000
But specifically between 10,000 and 70,000 ratepayers
▫ Timely and accurate p g
y programming and supply of samples
g pp y p
▫ Lodgement with Australia Post within 24 hours of proof
sign off
▫ P i reflective of value and service components required
Price fl ti f l d i t i d
▫ Requirement for value added solutions
• Likely to be located in Greater Melbourne, Metropolitan
Melbourne
Sydney, key rural areas of VIC, NSW, QLD and TAS.

21. 21
PML - Pricing
• Strategic pricing tailored to Council’s specific requirements;
• Reflective of Council’s internal resources and requirement for
account management;
• No penalty fees for Council initiated changes to lodgement
dates
• Fixed price components
▫ Programming and technical advice
▫ ORS and E-distribution.
• Competiti e
Competitive
▫ PML enjoys a lower cost of production relative to its competitors
given the reduced overhead costs of operation in Hobart,
Tasmania.
T i

22. 22
PML – Account and Contract
Management
• PML recognises the difference between account and
g
contract management;
• Quarterly performance meetings;
• PML assigns 3 separate staff to each relationship:
▫ Account Manager: co-ordinate stock, inserts, customer
timelines and relationship management
▫ Senior Programmer: advise, prepare, sample and
p
produce notices
▫ Contract Manager: execute contract, co-ordinate
resources and ensure performance to contracted
terms.
terms

23. 23
Our view on the Australian
marketplace in the next 12-36 months
• Council’s will engage in an RFQ p
g g Q process more
frequently and supplier pricing will become more
competitive;
•CCouncil’s will place a greater emphasis on a
il’ ill l t h i
supplier’s financial capacity and will carefully
evaluate a supplier’s p
pp performance against contract
g
terms;
• Council’s are more likely to consider changing their
supplier given the reduced effort in transition;
• Greater push towards e-services as Council’s
promote environmental and sustainability practices
practices.

24. 24
PML s
PML’s action plan
• New operational premises for process
improvement to support its competitive position
• Fi li 3rd party certification to ISO standards
Finalise t tifi ti t t d d
• Continue to enhance IT capabilities designed to
assist Council to communicate with its
stakeholders
• Leverage positive customer experience
developed over the p
p prior 9 months.

25. 25
Questions & Answers?

26. 26
Contact details
Adrian Pereira Stacey Blackwell
Commercial Manager & CFO Sales Manager
Print Mail Logistics Limited Print Mail Logistics Limited
p (03) 6220 8444 p (03) 6220 8444
m 0420 968 516 m 0410 447 826
e apereira@pml.com.au e sblackwell@pml.com.au
w www.pml.com.au
www pml com au w www.pml.com.au
www pml com au