a superior service offering to Councils in Australia.

1. Print Mail Logistics Limited
Brief overview and industry
update
Adrian Pereira
Commercial Manager and CFO
16 August 2012
City of Canada Bay Council

2. 2
Key message
We aim to demonstrate our experience as a
credible supplier specialising in the
preparation, production and distribution of rate
and water notices for regional and
metropolitan Councils located throughout
Australia.

3. 3
Presentation overview
• PML – brief overview
• PML – progress report
• Market overview – Australia and NSW
• Key buyer demands
• Buyer decision making
• PML’s service offering
• Likely market changes in the next 12-36 months.

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;
• 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.

5. 5
PML – progress report
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 target markets;
▫ Demonstrated the strength of our service offering to
key customers.

6. 6
PML...now delivering Council
requirements throughout Eastern
Australia
# of mail
# of Councils items pa
New South Wales - Regional 3 300,000
New South Wales - Sydney Metropolitan 3 200,000
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 2 2
Boroughs 1 1
Island councils 1 1
Total 152 89 74 141 64 30 21 571

8. 8
Market overview - NSW
Average # of
Type NSW Population ('000)
Assessments ('000)
Cities 38 3,920 46.25
Municipalities 8 462 25.92
Councils 27 1,071 17.79
Regional councils 4 149 16.69
Shires 75 1,531 9.16
Total 79 1,680 21.04

9. 9
Buyer demands are consistent
throughout Australia
• Demonstrated experience
• Fast turnaround with KPI’s linked to statutory
and operational requirements
• Timely access to expert, technical advice
• Value added service components
• Financial capacity
• Commitment to Workplace Safety,
Environmental Management and Sustainability.

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

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

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

13. 13
Buyer decision making in NSW since
the Penrith NSWRP Conference
• 152 Councils in NSW
• Approx. 25 (representing 28% of mail volume) of
the market issued an RFQ
▫ Approx 12 remained with existing supplier
▫ Approx 13 changed supplier
• In most instances, RFQ’s were invited from 4
common suppliers from NSW, VIC, SA and TAS.

14. 14
Buyer decision making in NSW since
the Penrith NSWRP Conference
Key themes from the RFQ process:
1.Transition to new supplier is now more seamless
<7 days
2.Supplier prices have reduced materially
3.Improved service deliverables
4.Interstate competitors are capable of providing a
valuable solution – VIC, SA, TAS.
...consistent with the commodity magnet

15. 15
PML’s strategy

16. 16
PML – Service Offering
1. Expert transition management
2. Agility and flexibility to meet Council’s changing
requirements;
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. A positive customer experience. References who will
confirm our ability to deliver.

17. 17
Service component – print and mail
Artwork and
Data file
Proof process
Lodgement
manifest

18. 18
Service component – e-services
Data file
Notice pdf Secure access
(offline) to view, edit
and
User access reproduce
reports notices
Server
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
▫ The volume requirements
▫ 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

20. 20
PML – Customer selection
• Over the next 12 months, our service offering will be
most beneficial to Councils with the following
requirements;
▫ Generally above 10,000 and up to 120,000 ratepayers
But specifically between 20,000 and 90,000 ratepayers
▫ Timely and accurate supply of samples
▫ Lodgement with Australia Post within 24 hours of proof
sign off
▫ Price reflective of value and service components required
▫ Requirement for value added solutions
• Likely to be located in Metropolitan Sydney, key
Regional areas of NSW, QLD, VIC 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.
• Competitive
▫ PML enjoys a lower cost of production relative to its competitors
given the reduced overhead costs of operation in Hobart,
Tasmania.

22. 22
PML – Account and Contract
Management
• PML recognises the difference between account and
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
produce notices
▫ Contract Manager: execute contract, co-ordinate
resources and ensure performance to contracted
terms.

23. 23
Our view on the marketplace in the
next 12-36 months
• Council’s will engage in an RFQ process more
frequently and supplier pricing will become more
competitive;
• Council’s will place a greater emphasis on a
supplier’s financial capacity and will carefully
evaluate a supplier’s performance against contract
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.

24. 24
PML’s action plan
• New operational premises for process
improvement to support its competitive position
• Complete 3rd party certification to ISO standards
• Continue to enhance IT capabilities designed to
assist Council to communicate with its
stakeholders
• Leverage positive customer experience
developed over the prior 9 months.

25. 25
Questions and answers?