Innovating for a better tomorrow - 2016 Optus Sustainability Report

Innovating for a better tomorrow - 2016 Optus Sustainability Report
Innovating for a
   better tomorrow
2016 Optus Sustainability Report

Innovating for a better tomorrow - 2016 Optus Sustainability Report
Table of contents                                                                                                      About
    About this Report...........................................................................................3          this report
    A message from our Chairman and CEO................................................4                                   This is our 17th annual report on the sustainability
                                                                                                                           performance of Singtel Optus Pty Ltd (Optus) (G4-30)
    2016 Highlights............................................................................................... 8       (G4-3). The report covers our financial year 1 April 2015
                                                                                                                           to 31 March 2016 (G4-28).
    About us......................................................................................................... 10
    Sustainability at Optus............................................................................... 12              This report and previous years’ sustainability reports can be found online here.
                                                                                                                           The previous report was released on June 17th 2015 (G4-29).
    Marketplace and Customers....................................................................20                        Offshore ventures, franchised retail outlets and subsidiaries are not included in this
                                                                                                                           report unless otherwise stated. This report has been prepared ‘in accordance’ with
    Community.................................................................................................... 36       the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines - Core
                                                                                                                           option. The GRI Content Index can be found on page 88-89
    Our people..................................................................................................... 52     We use the London Benchmarking Group (LBG) methodology to measure and
                                                                                                                           report on our contribution to the community. This year we sought external limited
    Environment.................................................................................................. 68       assurance under ISAE3000 for selected indicators in the report. The scope and basis
                                                                                                                           for the assurance is provided in the Assurance Statement at the end of the report.
    UN Sustainable Development Goals..................................................... 82                               Ere-S Pte Ltd again provided the assurance as part of a wider engagement with
                                                                                                                           Singtel, which provided assurance over the Singtel Sustainability Report. This helps
    Memberships and industry initiatives we support............................. 84                                        to facilitate a consistent approach to sustainability assurance across the Group.
                                                                                                                           All information contained in the report was correct as at 23rd June 2016.
    Assurance statement................................................................................. 86
                                                                                                                           Our approach to sustainability, this report, and previous years’ reports can be found
    GRI index........................................................................................................ 88   here.
                                                                                                                           Singtel has produced its second Singtel Group Sustainability Report which can be
                                                                                                                           accessed online here.
                                                                                                                           We welcome your feedback or questions in relation to this report. Please contact

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Innovating for a better tomorrow - 2016 Optus Sustainability Report
A message from our                                                                                                                                                                                            Leadership Forum David Gonski with
                                                                                                                                                                                                                  Nicolette Moore, Heidi Savva & Brione Smink


    CEO and Chairman
    Optus was born to create
    new ideas and ways of
    using communications
    for Australians. We
    pride ourselves on being
    Australia’s leading
    Challenger Company
    and we extend this
    approach to how we
    help our nation be more
    sustainable.                                                                                                             q
                                                                                                Chairman Paul O’Sullivan (left)
                                                                                                CEO Allen Lew (right)

    Building a Smart Nation
                                             places and provided seed funding in
    At Optus our goal is to be Australia’s   the Young Social Pioneers program        allowances, with our superfast 4G
    most loved, recommended and              which is open to 18-29 year olds who     Plus network now reaching 94%
    innovative service brand.                have great ideas around the big          of Australians. We announced our
                                             question “How can we build a better      partnership with the Australian
    Innovation underpins everything                                                   Olympic, Paralympic and Cricket
    we do, and in the current year           Australia?”
                                                                                      teams. We’ve simplified our pricing,
    we brought this to life across our       Off the back of that success,            made data sharing and rollover
    organisation with the establishment      The Future Makers program was            possible, and consistently rank
    of the “Think Big” program. We           introduced this year and represents      Number 1 on the Netflix ISP
    actively encourage our people to         a step change for innovation in the      speed index.
    think about innovation as part of        CSR space. We’re looking for people
    their day to day roles, setting aside    and ideas that will change the future    We have a comprehensive energy
    a weekly timeslot for collaborative      for vulnerable youth. The program        efficiency review of our network
    brainstorming. Ideas are rewarded                                                 operations underway, and this               We’ve made good progress in              Strengthening our harmonious
                                             will provide participants with an
    through individual grants as well as                                              will play a critical role in helping us     understanding these impacts              and inclusive society
                                             accelerator program and access to
    an innovation fund allocated to each     industry mentors and networks, and       establish long term carbon intensity        following a climate change modelling     Our current staff mentoring
    division, and the most promising         six winners will receive funding up to   reduction targets. With our network         review across our infrastructure.        programs assists youth from
    concepts are developed through           $50,000 and guidance over the next       investment we are adapting the              We’ve been busy making upgrades          vulnerable backgrounds, including
    to a ready-for-market product.           18 months to progress their ideas        latest mobile technologies which are        across our operations to protect         refugees and asylum seekers,
    By embedding innovation across           further.                                 more energy efficient.                      against natural disasters, such as       to successfully integrate into
    the organisation we’re delivering                                                 To understand our material                  improving redundancy and energy          mainstream schooling. Optus is also
    solutions better and faster to our
                                             Helping Australia meet the                                                           supply self-sufficiency. This is a key   a founding member company of
                                                                                      environmental impacts, not only
                                             Climate Challenge                                                                    requirement during times of natural      the Australian Business Community                                              .
                                                                                      within our organisation but also
                                             As we continue to invest to create       across our extended supply chain,           disasters as energy grids often go       Network (ABCN) and, since 2005,
    We’ve also identified an opportunity
    to increase the impact of
    innovation and technology within
                                             a leading customer experience,
                                             this has simultaneously increased
                                                                                      this year we concluded our first Life
                                                                                      Cycle Assessment. This was used
                                                                                                                                  down even while our networks need
                                                                                                                                  to remain operational.
                                                                                                                                                                           over 2,700 Optus staff have
                                                                                                                                                                           successfully mentored over 7,000             Innovation
    the community. To demonstrate
    our commitment to youth focused
                                             the importance of managing our
                                             customers growing energy needs and
                                                                                      to establish our 2020 Sustainable
                                                                                      Supply Chain Management strategy.
                                                                                                                                  Optus is also a founding member of
                                                                                                                                  the Australian Business Roundtable
                                                                                                                                                                           students across 13 mentoring
                                                                                                                                                                           programs nationally, contributing            underpins
                                             carbon footprint.                                                                                                             over 26,000 volunteer hours in
    innovation, we proudly partnered                                                  It’s becoming increasingly clear that       for Disaster Resilience and Safer
    with the Foundation for Young            We’ve invested over $1 billion a year                                                                                         company time.
                                                                                      organisations must not only address         Communities, which has undertaken
    Australians’ Innovation Nation –
    a youth led conversation about
                                             for the last decade in expanding
                                             and improving our networks for
                                             our customers. We’ve improved
                                                                                      their environmental impact, but also
                                                                                      adapt and build resilience to the
                                                                                                                                  leading research, assessments
                                                                                                                                  and advocacy on infrastructure
                                                                                                                                                                           The current international refugee
                                                                                                                                                                           crisis is expected to increase               we do
    innovation and entrepreneurship                                                   impacts of climate change.                  adaptation.                              Australia’s refugee intake and so we
    in Australia. We also sponsored 10       mobile coverage and increased data

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Innovating for a better tomorrow - 2016 Optus Sustainability Report
At Optus our
                                                                                     goal is to be
                                                                                     most loved,
                                                                                     and innovative
                                                                                     service brand
                                             Zealand Internet Awards, and            These are just some of the ways that
    are working closely with our partner                                             we’re promoting the importance of
                                             also received recognition and
    ABCN to see how Australia can most                                               being responsible digital citizens and
                                             provisional accreditation by the
    effectively support this integration.                                            promoting cyber wellness and online
                                             Australian Government’s eSafety
                                             Commissioner.                           safety for our people, customers and
    Making the cyber world safer
                                                                                     the broader community.
    Optus has continued to build the         It has reached over 88,000 students
    capacity of our internal operations to   since its launch in 2013, and the       Strengthening Equality –
    protect customer data and privacy.       free program has been expanded          Increasing Diversity – Building
    We’ve extended these reviews to          beyond NSW and Victoria to now          Our Talent
    our critical suppliers and this year     include schools in Queensland. Globe
                                             Telecom, the Philippines associate      To be Australia’s leading Challenger
    completed an assurance program on                                                Company, we need to have a
    the systems, processes and policies      of our parent, Singtel, recently
                                             adopted and launched Globe Digital      workplace that attracts and
    of our contact centre partners.                                                  fosters the best of our nation’s
                                                                                     talent. At Optus we are committed
    On the community front, we’ve            For our Enterprise customers,           to a workplace that provides
    extended our volunteering program        we’ve significantly strengthened        equal opportunity and embraces
    overseas and continued to focus          our portfolio of cyber security         individuals from all backgrounds.        of this intake is female, up from      creating positive social, economic
    our community strategy on the            solutions through a major USA           We continue to improve our enviable      26% just three years ago. We also      and environmental change. In this
    assistance of disadvantaged              company acquisition and a leading       health, safety and wellbeing             performed a thorough assessment        report, we’re pleased to be able to
    youth. We’ve invested heavily in         international partnership. Optus        program, and are making further          of emerging skills requirements        demonstrate our responses to some
    our digital citizenship and cyber        Business now offers a full suite of     investment in the areas of gender        to identify the specialist skills we   of these opportunities. While we’re
    security programs. Our flagship          cyber security solutions. During        and Indigenous equality.                 will need in our future leaders and    still at the early stages in our journey,
    Digital Thumbprint Program               2016 we will open a new National
    (DTP) continues to grow in                                                       We aim to attract the brightest          so future proof the organisation       we look forward to working with you
                                             Cyber Security Operations Centre
    strength, educating students                                                     and best, and give them all the tools    in areas of growth such as cyber       and all our stakeholders to continue
                                             at Macquarie Park – this will
    on their online and social media                                                 they need to succeed. Our graduate       security and data analytics.           finding 'Challenger' solutions to
                                             provide World Class detection, crisis
    behaviour. The program won the           management and rectification            scheme is now in its 11th year, and      At Optus, we are excited that          these issues.
    Security and Online Safety Award         capabilities to Australia’s leading     in 2015-16 we doubled our intake to      our industry and our technology        Allen Lew             Paul O’Sullivan
    at the 2015 Australian and New           organizations.                          47 talented young graduates. 45%         will play an instrumental role in      CEO                   Chairman

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Innovating for a better tomorrow - 2016 Optus Sustainability Report
                                                                                                         People engagement
                                                                                                         up again to

                                                                                                         76%                                                                                    Health &
                                                                                                                                                 Focusing on
    from 2015 - 2016
                                                                                                                                                 sustainable                                    improved

    This past year was all about offering more ‘yes’ to our
    customers and leading the charge on our ambition to become
    Australia’s most loved, recommended and innovative service                                           Awards:
    brand. As we focus on creating sustainable growth for our
    business, we have a great opportunity to also lead and shape                                           Frontline NPS              Digital Thumbprint            ‘Cash by Optus’: Best
    positive changes for our customers, the communities we                                                 Incentive program:         Program:                      Mobile Solution at
    operate in, our people and the environment.                                                            at the Contact Centre      Security and Online           the Communications
                                                                                                           World Awards               Safety Award at the           Alliance and
    Paul O’Sullivan, Chairman Optus                                                                                                   Australian and New            CommsDay Awards
                                                                                                           Cisco Australia            Zealand Internet                                          Revenue
                                                                                                           and New Zealand’s          Awards                                                    grown by
                                                                                                           Services Partner of the                                                              3.7% to
                                                                                                           Year and Community         Kids Helpline @ School:                                   $9.1 billion
                                             Reduced our carbon
             63                              emissions intensity by
                                                                                                           Contribution Award of
                                                                                                           the Year
                                                                                                                                      NAPCAN’s National
                                                                                                                                      Play Your Part Award

     Yes Optus shops                                                                                                                  for ‘inspiring prevention
     transformed to new                                                          8
                                                                                                                                      initiatives’                                              Commenced
     Generation 6 design
                                                                                                                                                                                                using the

                                                                                                                       talented young graduates joined Optus this year                          Organisation

     Market NPS
                                                 of students improved their
                                                                                     640                                                                                                        workplace
                                                                                                                                                                                                health & safety

                                                                                                         $1.5M              +
                                                                                 base stations
     Optus remains                               literacy through the mobile     upgraded with
     the leading Tier 1                          student2student program         smart meters
                                                                                                          Retired our community grants program to transition to

                  $8.7    million
                                              .      Doubled the number          Implemented
                                                                                                          Future Makers, having awarded more than $1.5 million
                                                                                                          to over 240 local community charities and organisations
                  invested in to
                                              .      of our upgraded
                                                     superfast 4G
                                                                                 Supply Chain
                                                                                                          since 2007
                                                                                                                                                                                                increased to
                  the community                      700MHz sites
                                                                                                                     100% of new suppliers                  Number of volunteer

                Undertook complete
                                                                                                 +                   assessed against
                                                                                                                     Supplier Code of Conduct
                                                                                                                                                            roles filled grew by
                                                                                                                                                            39% to 1,917
                cradle-to-grave Life
                Cycle Assessment of
                                                                               Lead and
                our operations

                                                                               shape positive            Increased                                                                               Nearly at total
                                                                                                                                                                                                 gender pay parity,

                                                                                                                                                                                                 improving salary
                       75%                                                                                                                                                                       ratio to
         +29           of group’s              Life cycle
                                                                                                     +                                                                                           1:0.99
                       total procurement                                                                                                   1,917 employees                $1.6 billion
     People NPS        spend assessed          assessment                                                                                  volunteered 16,194             invested in capital
     up again          against new             performed                                                 mobile subscriber base                                           expenditure
                                                                                                                                           hours to community
     to +29            supplier code of
                                               over 95% of our
                                               Group spend                            NPS score          by 33% to 4.7 million             work                           and network

                                                                                                                                                                                                  *As at April 30th 2016
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Innovating for a better tomorrow - 2016 Optus Sustainability Report
About us
     We are Australia’s
     group with almost 9000                    The wider Singtel Group serves over
     full time equivalent                      600 million mobile customers in 25
     employees and                             countries around the world, and
                                               is a major communications player
     342 Optus Yes shops.                      throughout Asia and Africa
     (G4-6 & G4-9) (G4-10)
                                               We provide customers with a range
     We serve more than ten million            of services including:
     customers each day and are the only
     carrier in Australia to own and operate        mobile
     three types of network infrastructure-
     mobile, fixed and satellite.                   fixed and IP telephone

     We help businesses and people                  business network and
     communicate anytime and in many                ICT services
     ways. We make communications
     easier, faster, more economical and            fixed and wireless broadband
     reliable by breaking the barriers of
                                                    satellite services
     distance, price, time, technology
     and the unknown; and by building               entertainment and subscription TV                                      Our Vision
     strong bonds among us, with our
     shareholders, customers and business
     partners.                                 We also deliver wholesale services to                                       We want to provide Australia’s
                                               third parties for resale under their                                        most outstanding customer
     We’ve been a wholly owned subsidiary      own brand. Our retail products and                                          experience, and to become the
     of Singtel since 2001 (G4-7). We were     services are sold to customers via                                          most loved, recommended
     originally listed on the Australian       phone, internet or through our retail                                       and innovative service brand in
     Stock Exchange on 10 September            outlets.                                                                    Australia (G4-56). In striving to
     2001, and delisted from the ASX on                                                                                    achieve this, our five essential
     5 June 2015 given the small base          Our head office is located at                                               values guide everything we do -
     of retail shareholders in Australia.      1 Lyonpark Rd,                                                              Customer Focus, Challenger Spirit,
     Singtel continues to be listed on         Macquarie Park,                                                             Teamwork, Integrity, and Personal
     the Singapore Exchange Securities                                                                                     Excellence.
                                               NSW 2113. (G4-5)
     Trading Limited (SGX).
                                                                                                                           We own and operate our network
                                                                                                                           infrastructure which we wholesale
       We’re arranged into 3 main                                                                                          to other providers. We also use
                                                                                                                           the services of other providers
     + business areas which serve different markets (G4-8 & G4-9)                                                          to connect our customers.
                                                                                                                           We have over 6,200 3G base
      Group Consumer                           Group Digital Life                    Group Enterprise                      stations reaching over 98.5%
                                                                                                                           of the Australian population.
      This combines the Group’s                Drives the Group’s efforts to be      Delivers innovative and
                                                                                                                           We’ve continued to invest in our
      consumer-related functions,              at the forefront of the digital       comprehensive ICT solutions to the
                                                                                                                           network to improve quality and
      including our international business     space. It focuses on creating new     Group’s enterprise customers across
                                                                                                                           reliability, and have enabled 4G
      in the emerging markets which            avenues and revenue platforms         geographical boundaries. Both
                                                                                                                           on over 4,850 base stations. As at
      leverages our mobile customer            for the Group. Key focus areas        Singtel and Optus deliver satellite
                                                                                                                           30th April 2016, our superfast 4G
      base of more than 500 million for        include premium over-the-top          services, international data and
                                                                                                                           Plus network reaches 94% of the
      optimised outcomes.                      video, digital marketing and          managed services, cloud computing
                                                                                                                           Australian population. (G4-4 & G4-9)
                                               advanced analytics.                   and enterprise mobility services.

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Innovating for a better tomorrow - 2016 Optus Sustainability Report

     Our sustainability                                                                                                          Optus sustainability framework

     framework                                       (G4-14)
                                                                                                                                 We aim to deeply embed sustainability in our DNA, culture, value system
                                                                                                                                 and the way we run our business and engage our stakeholders
     Sustainable business model               These areas of focus form the             • EBITDA is our key measure of
     Our aim is to deeply embed               foundation of our sustainability             profitability                          o create sustainability and long-term growth for our business, while leading and shaping
                                              strategy, which we use to build
     sustainability in our culture, values,
                                              positive change across our four
                                                                                        • Net Promoter Score (NPS) is our       positive change for our marketplace & customer, the communities we operate in, our
     decision-making, operations,                                                          key measure of advocacy
     products and services to create          sustainability pillars: Marketplace &                                              people and the environment
     a sustainable business that is           Customers, Community, our People          • Your Voice is our key to unleashing
     positioned for long-term success.        and the Environment.                         the potential of our people
                                                                                                                                  Marketplace                    Community                        Our people                       Environment
     We continue to review and enhance        Sustainability through innovation         We’ve identified a number of              and customers
     our approach to sustainability to                                                  indicators that help us measure
     achieve this goal.                       We’re continually working to find new
                                                                                        our performance and longer term          • Delivering superior          • Driving positive and          • To be an employer our         • Through understanding
                                              and innovative ways to transform
                                                                                        objectives to bring about positive          customer experience and         sustainable changes to           people are proud to work         our impacts, we’re
     Our focus is on the areas we’ve          the lives of the people we connect,
                                                                                        change for our people, community            transforming the way our        disadvantaged communities,       for by providing care and        committed to minimising
     determined to be material to Optus;      and make a positive impact on our
                                                                                        and the environment as outlined             customers live and work         especially vulnerable youth      equal opportunities in a         our environmental footprint
     where we have an opportunity to          society. We do this by leveraging
                                                                                        on page 14.                                 with our innovative ICT                                          workplace and culture            across our value chain.
     take a leadership role and where our     the power of communication and                                                        products and services
                                                                                                                                                                 • Enabling the inclusion and
                                                                                                                                                                                                     that are diverse, inclusive
     skills, resources and expertise can      infotainment at our disposal. We                                                                                      well-being of young people                                     • We will achieve this by
                                                                                        To keep us focused and                                  ENVIRONMENT                                          and collaborative
     make a positive difference on current    have the opportunity today to use                                                  • Adhering to the highest         and the broader community                                         delivering on our 4 strategic
                                                                                        accountable, each year we set                                                                                                                 pillars: addressing climate
     and future generations.                  our skills, resources and expertise to                                                standards of corporate                                        • Challenging and
                                                                                        annual goals for the coming 12                                           • Engaging our people to
                                                                                                                                                                                                     developing our people            change, integrating the
                                              make a positive difference into the       months, and report on how we’ve                                             support the community
                                                                                                                                                                                                                                      environment agenda
     We identify the areas we believe                                                                                                                                                                to reach their fullest
                                              future.                                   progressed at the end of the             • Embracing responsible           through corporate workplace
                                                                                                                                                                                                     potential                        into our value chain,
     are important to both us and our                                                                                               business practice               giving and volunteer
                                              Staying on track is critical to achieve   reporting period. We are also a                                                                                                               engaging our stakeholders
     key stakeholders through open and                                                                                                                              programs
                                              our plan and vision so we’ve identified   member of the United Nations                                                                                                                  and product & resource
     consistent communication, and we                                                                                                                                                                                                 responsibility
                                              key performance indicators (KPIs) to      Global Compact (UNGC), with our
     focus on shaping positive change in
                                              measure how we’re going.                  areas of focus aligned to support
     these key areas.
                                                                                        the 10 principles of the UNGC
                                                                                        and the UN’s 2030 Sustainable
                                                                                                                                 Optus Material Aspects
                                                                                        Development Goals.                        • Customer Data and           • Inclusion of vulnerable       • Talent attraction and         • Climate change and
                                                                                                                                     Privacy Protection             groups                           retention                        energy management
                                                                                                                                  • Supply Chain                • Cyber wellness and            • Employee health
                                                                                                                                     Management                     online safety                    and safety
                                                                                                                                  • Regulatory compliance
                                                                                                                                  • Customer satisfaction
                                                                                                                                  • Product quality
                                                                                                                                  • Innovation
                                                                                                                                  • Customer health & safety
                                                                                                                                  • Fair marketing

       We’re continually working to                                                                                                  communications

       find new and innovative ways to                                                                                           Alignment to UN Sustainable Development Goals
       transform the lives of the people                                                                                          • SDG3 good health and        • SDG3 good health and          • SDG3 good health and          • SDG9 industry, innovation

       we connect and make a positive                                                                                                well-being
                                                                                                                                  • SDG9 industry, innovation
                                                                                                                                                                 • SDG4 quality education
                                                                                                                                                                                                  • SDG5 gender equality           •S
                                                                                                                                                                                                                                      and infrastructure
                                                                                                                                                                                                                                       DG11 sustainable cities

       impact on our society                                                                                                         and infrastructure
                                                                                                                                  • SDG10 reduced
                                                                                                                                                                 • SDG8 decent work and
                                                                                                                                                                    economic growth
                                                                                                                                                                                                  • SDG8 decent work and
                                                                                                                                                                                                     economic growth               •S
                                                                                                                                                                                                                                      and communities
                                                                                                                                                                                                                                       DG12 responsible
                                                                                                                                     inequalities                                                 • SDG10 reduced                    consumption and
                                                                                                                                                                 • SDG9 industry, innovation
                                                                                                                                  • SDG11 sustainable cities                                        inequalities                     production
                                                                                                                                                                    and infrastructure
                                                                                                                                     and communities                                                                               • SDG13 climate action
                                                                                                                                                                 • SDG10 reduced inequalities
                                                                                                                                  • SDG12 responsible                                                                             • SDG17 partnerships for
                                                                                                                                     consumption and             • SDG11 sustainable cities
                                                                                                                                                                                                                                      the goals
                                                                                                                                     production                     and communities
                                                                                                                                  • SDG17 partnerships for      • SDG17 partnerships for
                                                                                                                                     the goals                      the goals

12                                                                                                                                                                                                                                                                    13
Innovating for a better tomorrow - 2016 Optus Sustainability Report
Our sustainability                                                                                                                                                                                                                                       Sustainability
 scorecard                                                                                                                                                                                                                                                governance                                         (G4-2)

     For the financial year ended 31 March 2016, we delivered                                                                  grew 7% to $901 million. Underlying net profit grew
                                                                                                                                                                                                                                                          Our corporate governance framework ensures
     another year of strong revenue and EBITDA growth,
     underpinned by the improved performance of our mobile
                                                                                                                               7% year-on-year to $931 million. EBITDA margin
                                                                                                                               improved 0.6 points to 30.5%. Free cash flow for the                                                                       that we react responsibly to the evolving social                                 Sustainability
     operations. Operating revenue was up 4% to $9.12 billion.                                                                 full year declined by 37% to $617 million due to working                                                                   and environmental landscape, and make the best                                   governance structure
     EBITDA grew 6% to $2.77 billion, while annual net profit                                                                  capital movements.                                                                                                         decisions not just for our business but for our                                  (G4-34)

                                                                                                                                                                                                                                                          complete value chain.
      Category                                                Indicator                                                                                                    2015-16                    2014-15                   2013-14                                                                                                    Board of Directors
                                                                                                                                                                                                                                                          We’re committed to the highest          Governance structure (G4-34)
                                                              Economic value generated ($million)                                                                          9,115                      8,790                     8,466                     standards of corporate conduct.         We take our compliance standards
                                                                                                                                                                                                                                                          We’ve developed a robust set of         seriously. Every year, our senior
                                                              Economic value distributed ($million)                                                                                                                                                       well-defined corporate governance       leaders and people must complete         Management Committee
                                                              Operating costs                                                                                              5,143                      5,002                     4,851                     processes to strengthen our
      Economic performance                                                                                                                                                                                                                                                                        mandatory compliance modules
                                                              Staff costs                                                                                                  1,299                      1,246                     1,171                     corporate performance and
      (G4-EC1)                                                                                                                                                                                                                                                                                    such as fraud awareness and fraud
                                                              Dividends to shareholders                                                                                    600                        560                       560                       accountability. Our values of                                                    Formulating
                                                                                                                                                                                                                                                                                                  risk indicators, information security,   sustainability strategy
                                                              Tax expense                                                                                                  379                        360                       361                       customer focus, challenger spirit,      equal opportunity employment,
                                                              Economic value retained ($million)                                                                           1,685                      1,613                     1,513                     teamwork, integrity and personal        conflict of interest declaration.
                                                                                                                                                                                                                                                          excellence are embodied in our Code     (G4-DMA)
                                                              Customer net promoter score (NPS)                                                                            +5                         +4                        +5                        of Conduct. (G4-56)
                                                              4G population coverage*                                                                                      94%                        86%                       55%
                                                                                                                                                                                                                                                                                                  But we think it’s important to do
      Marketplace &                                                                                                                                                                                                                                       This drives us to conduct our           more than just comply – we want
      customers                                               4G base stations*                                                                                            4,850                      3,454                     1,824                     business in an ethical manner                                                    Group CSR
                                                                                                                                                                                                                                                                                                  to challenge the status quo, show
                                                              TIO complaints /10,000 customers                                                                             2.5                        1.9                       1.8                       whenever we deal with customers,        leadership and continually strive to
                                                                                                                                                                                                                                                          suppliers, competitors and the          minimise our negative impact and         Managing sustainability throughout the
                                                              Employee engagement score                                                                                    76%                        75%                       73%
                                                                                                                                                                                                                                                          community.                              contribute positively to society.        Singtel Group
                                                              Employee advocacy - people NPS                                                                               +29                        +28**                     +20**
                                                              Voluntary staff turnover                                                                                     8.2%                       10%                       8.4%                      Strategic oversight across              As well as establishing a robust
                                                                                                                                                                                                                                                          sustainability is led by Singtel’s      sustainability governance structure,
                                                              Women in executive management ***                                                                            20                         23***                     11                        Group Management Committee              one of the key ways we achieve this
                                                              Gender pay ratio                                                                                             1:0.99                     1:0.98                    1:0.9                     with Singtel Group CSR overseeing                                                .
                                                                                                                                                                                                                                                                                                  is through participating in a number
                                                              Accident frequency rate****                                                                                  0.79                       n/a                       n/a                       the formulation, recommendation,        of external forums and through           Group CSR Working Group
                                                              Health & wellbeing score                                                                                     +8.8%                      +20.9%                    n/a                       coordination, execution and             supporting new industry standards
                                                              Community investment ($million)                                                                              8.7                        8.7                       9.7                       reporting of the group’s                and codes.
                                                                                                                                                                                                                                                          Sustainability Strategy.                                                          Singtel
                                                              Children reached by cyber safety programs                                                                    51,728                     44,162                    29,866                                                            A listing of the externally developed
                                                                                                                                                                                                                                                          Our Corporate Responsibility                                                      Singapore
                                                                                                                                                                                                                                                                                                  economic, environmental and social
      Community                                               Youth literacy rate improvement (%)                                                                          95%                        94%                       93%                       Steering Committee provides local       initiatives we support can be found
                                                              Employee volunteering hours                                                                                  16,194                     11,505                    8,724                     guidance on execution of the group’s    on page 84-85. (G4-15)                    Optus
                                                              Volunteering participation rate                                                                              21%                        15%                       11.5%                     sustainability strategy in Australia,                                             Australia
                                                                                                                                                                                                                                                          delivering on our commitment to our
                                                              Energy consumption                                                                                           1,657,262                  1,494,342                 1,363,670                 four focus areas of marketplace &
                                                              (gigajoules)                                                                                                                                                                                customers, community, our people                                                  Associates
                                                              Direct & indirect greenhouse gas (GHG) emissions                                                             396,863                    377,519                   346,102                   and environment with a specific
                                                              (tonnes CO2-e)                                                                                                                                                                              focus on our material aspects.                                                    Regional Group CSR
                                                                                                                                                                                                                                                                                                                                            A platform for the various working
                                                              Carbon emissions intensity                                                                                   0.26                       0.39                      0.49                                                                                                        groups to collaborate and share best
                                                              (tonnes CO2-e/TB)                                                                                                                                                                                                                                                             practices on CSR programs

                                                                                                                                                                                                                                                                                                                                            Developing and implementing
                                                                                                                                                                                                                                                                                                                                            sustainability and programs

      *Correct as at April 30th of the reporting year, consistent with our annual reporting.
     ** In September 2014 an adjustment was made to our people NPS calculation methodology to take into consideration weighting based on employee count from each business area. This increased the people NPS score by +6 points.
     *** In 2014-15 we changed our calculation methodology to include all executive positions. The 13-14 figure under this method would have been 16.
     ****This year we adopted the International Labour Organisation (ILO) methodology for calculating our safety performance statistics for the first time. In previous years we adopted the Singapore Ministry of Manpower methodology, but are unable                                                                                    Business and support units
     to restate comparative data.
                                                                                                                                                                                                                                                                                                                                           Close working relationship

14                                                                                                                                                                                                                                                                                                                                                                                  15
Innovating for a better tomorrow - 2016 Optus Sustainability Report
Engaging                                                                                                         How we engage
     our stakeholders                                                                                                 our stakeholders                                                                                                                        (G4-24, 25, 26 & 27)

     Listening to our                     strategies and achieve our           our stakeholders to hear their views
                                                                                                                           Stakeholder                                    Issues of interest                                        Engagement mechanism                                   Frequency
                                          objectives. As such, we engage       on our sustainability reporting, and
     stakeholders helps us                with them regularly to understand    used this to guide the way that we
                                                                                                                          Customers                                     • Easier and simpler products                              • Market NPS                                            Ongoing
     identify the key issues,             their interests and concerns so      structure and deliver our report to                                                      • Better service                                           • Touch point NPS to capture feedback from
     risks and opportunities              that we can work to meet their
                                          expectations, manage any potential
                                                                               them.                                                                                    • Pricing                                                     interactions such as Optus Shops, Care and
                                                                                                                                                                        • Better network speeds and                                  Digital
     which are important to               risks to our business, continue to                                                                                               coverage where you need it
     them and also to our                 make a positive contribution to
     long term sustainability.            the community and importantly,        We continue                               Shareholders 1                                • Financial and operational
                                                                                                                                                                                                                                   • One-on-one meetings
                                                                                                                                                                                                                                   • Investor conferences and roadshows
                                                                                                                                                                                                                                                                                           Quarterly and as

     Our key stakeholder groups
                                          identify future industry trends so
                                          that we can innovate products         to enhance our                                                                          • Strategy
                                                                                                                                                                        • Performance of various
                                                                                                                                                                                                                                   • Conference calls
                                                                                                                                                                                                                                   • Email communications
     include customers, shareholders,     and services, stay ahead of our       sustainability                                                                            business units

                                                                                reporting to fulfil
     employees, charity partners, local   competitors and offer more 'Yes'
                                          to our customers.                                                               Employees                                     • Rewards and incentives                                  • Employee roadshows                                    Quarterly, annually
     communities, Government and
                                                                                the changing
                                                                                                                                                                        • Customer Service                                        • Internal intranet                                     and as required
     regulators, industry associations                                                                                                                                  • Culture                                                 • Staff newsletters
                                          The table on the next page
                                                                                needs of our
     and suppliers.                                                                                                                                                     • Wellbeing                                               • Emails
                                          outlines our stakeholder groups,
                                                                                                                                                                        • Diversity & Inclusion                                   • People NPS Quarterly
                                          our engagement activities and how
     All of our stakeholder groups
     are impacted by our operations,      we’re responding to stakeholder       stakeholders                                                                            • Learning & development
                                                                                                                                                                        • Our work with communities
                                                                                                                                                                                                                                   • Annual Engagement Survey – “Your Voice”

     products and services, and their     interests. As well as regular
     actions can affect our ability       stakeholder engagement, last year                                               Local communities                             • Visual impacts                                          • Letter box drops                                      As required
     to successfully implement our        we undertook a targeted survey of                                     +                                                       • Property values                                         • Local newspaper articles
                                                                                                                                                                        • Perceived adverse health                                • Community consultation sessions or
                                                                                                                                                                           and safety impacts of                                      community drop in sessions
                                                                                                                                                                           electromagnetic energy (EME)                            • Briefing with local councils and councillors
                                                                                                                                                                        • Network outages                                         • Briefing Members of Parliament
                                                                                                                                                                        • Impact of natural disasters on                          • Web based consultation updates
                                                                                                                                                                           network services

                                                                                                                          Charity partners                              • Safe & secure digital online                            • Face-to-face meetings                                 Depending on
                                                                                                                          and community                                    practices                                               • Workshops                                             partner – from
                                                                                                                          organisations                                 • Community access to services                            • Online surveys                                        weekly to monthly
                                                                                                                                                                        • Reducing environmental impact
                                                                                                                                                                        • Social impact measurement

                                                                                                                          Industry                                      • Varies depending on industry                             • We are a member of a number of industry             As required
                                                                                                                          associations                                     topic and focus of information.                             associations and engage in the development
                                                                                                                                                                        • See section at back of report                               of self- regulatory codes and policy positions on
                                                                                                                                                                           for a list of Optus’ industry                               a range of topics related to our industry (e.g.
                                                                                                                                                                           association memberships and                                 NBN, spectrum, copyright, marketing, privacy,
                                                                                                                                                                           other initiatives we support                                environment, health and safety, packaging and
                                                                                                                                                                                                                                       reporting frameworks)

                                                                                                                          Government                                    • We engage with all levels of                          • Participation in consultation papers                  As required
                                                                                                                          an regulators                                  government across Australia

                                                                                                                          Suppliers                                     • Corporate governance                                    • We have a supplier assessment that outlines          As required
                                                                                                                                                                        • Occupational health and safety                             governance and environmental issues.
                                                                                                                                                                        • Environmental management                                • Audits of suppliers as required in areas of Optus
                                                                                                                                                                        • Product stewardship                                        sustainability material issues
                                                                                                                                                                        • Supplier management

                                                                                                                          . Optus is a wholly-owned subsidiary of Singtel. “Shareholders” here refers to the shareholders of the broader Singtel Group, which is listed on the SGX.

16                                                                                                                                                                                                                                                                                                               17
Innovating for a better tomorrow - 2016 Optus Sustainability Report
Materiality                                                                                                                                                                      Focusing on what
     assessment process                                                                                                                                                               matters most                                                                                          (G4-2)
                                                                                                                                                                                      Our business model and strategy                                         We’re committed to delivering                                      management and reporting of
     We consider external stakeholder
                                                                                                                                                                                      focusses on the areas that present                                      value to our shareholders through                                  risks throughout the organisation
     perspectives and internal business
                                                                                                                                                                                      opportunities for us to create                                          sustained profitable growth, but                                   to provide assurance to the Singtel
     perspectives to develop a long list
                                                                                                                                                 Mar                                  innovative and sustainable long term                                    we won’t compromise our integrity,                                 Board and our relevant stakeholders.
     of relevant topics, establish and
                                                                                                         ent                                        ket                               success for our business.                                               values and reputation by risking
     apply rating criteria to determine                                                                                                                 pl                                                                                                                                                                       Last year we also undertook
                                                                                                        m   • Climate change        • Innovation                ac                                                                                            brand damage, service delivery
     the top 25 issues most important to                                                             ron                            • Product quality
                                                                                                                                                                                      Underpinning this however, is the
                                                                                                                                                                                                                                                              standards, severe network disruption                               a comprehensive materiality
     both viewpoints, and then conduct                                                                                                                                                need to manage and mitigate risks

                                                                                                                  and energy

                                                                                                                                                                                                                                                              or regulatory non-compliance to                                    assessment to identify issues and
                                                                                                                                    • Customer satisfaction                           to the business.
     a workshop to shortlist the issues                                                                          management                                                                                                                                                                                                      other relevant topics considered

                                                                                                                                                                       cu s
                                                                                                                                                                                                                                                              achieve this.
     considered to be most significant to us                                                                                        • Customer health and safety
                                                                                                                                                                                                                                                                                                                                 important for reflecting our

                                                                                                                                                                                      The identification and management
     and our stakeholders.                                                                                                          • Supply Chain Management                                                                                                 As a signatory of the United Nations                               economic, environmental and social
                                                                                                                                                                                      of risks is key to reducing uncertainty
                                                                                                                                                                                                                                                              Global Compact, we’ll also uphold

                                                                                                                                    • Fair marketing communications
                                                                                                                                                                                      over the execution of our business                                                                                                         impacts and/or influencing the
     The issues selected provide the starting                                                                                                                                                                                                                 the ten principles covering human
                                                                                                                                    • Customer data and privacy
                                                                                                                                                                                      strategies. Risks take on many forms                                                                                                       views of our key stakeholders. We
     point for informing the content of our                                                                                                                                                                                                                   rights, labour practices, environment
                                                                                                                                    • Regulatory compliance
                                                                                                                                                                                      and have the potential to materially                                                                                                       will re-assess our material issues
     sustainability reporting. We’ve validated                                                                                                                                                                                                                and anti-corruption.
                                                                                                                                                                                      impact our reputation, operations,                                                                                                         again this year to ensure that we’re
     these areas by cross checking them with                                                                       Material Issues                                                    human resources and financial                                           We undertake a continuous process                                  constantly on top of the areas of
     the significant issues that arose across
                                                                                                                                                                                      performance.                                                            of risk identification, monitoring,                                most importance to our business
     the business and in the media during the
                                                                                                                                                                                                                                                                                                                                 and our stakeholders. (G4-DMA, G4-18)
     reporting period.                                                                                    • Cyber wellness and      • Talent attraction and retention
                                                                                                                  online safety     • Employee health & safety
     This helps make sure our report provides

                                                                                                                  • Inclusion of
     a balanced representation of our                                                                                                                                                   .

                                                                                                             vulnerable groups
     sustainability performance.

                                                                                                                                                                                        Our material issues and aspects

                                                                                                                                                                                                                                                                      G4-19, G4-20 and G4-21

     Our final set of material issues, referred                                                      Co                                                          Pe
     to as 'Aspects' as defined by the GRI,
     have been aligned with our sustainability                                                                                                                                          Optus material issue                             GRI G4 material aspects & boundary                                        Boundary                    Report chapter
     strategy pillars, and translated into the                                                                                                                                         Customer satisfaction                             Product & service labelling – PR5                                        External (customers)         Marketplace & Customer
     relevant G4 Standard Disclosures to
     guide our reporting of information and                                                                                                                                            Product quality /                                 Compliance – PR9                                                         Internal & external          Marketplace & Customer
     data this year.                                                                                                                                                                   Regulatory compliance                                                                                                      (customers, government
                                                                                                                                                                                                                                                                                                                  and regulators)

 High                                                                                                                                                      Customer satisfaction       Innovation                                        Indirect economic impacts - EC7                                          External (customers,         Marketplace & Customer
                                                                                                                                                                                                                                                                                                                  local communities)

                                                                                  Supply Chain Management                                                                              Consumer data and privacy                         Customer privacy– PR8                                                    Internal & external          Marketplace & Customer
           Influence on external stakeholders (External perspective)

                                                                                                                                                                                                                                                                                                                  (customers, regulators)
                                                                                 Innovation                                                                                            Customer health & safety                          Customer health and safety – PR2                                         External (customer, local    Marketplace & Customer
                                                                                                                                                                                                                                                                                                                  communities, regulators)
                                                                                                               Product quality
                                                                                                                                                                                       Fair marketing                                    Marketing communications – PR7                                           External (customer,          Marketplace & Customer
                                                                                  Customer health and safety           Inclusion of vulnerable groups                                  communications                                                                                                             regulators)
                                                                                                                                                                                       Supply chain management                           Supplier human rights assessment – HR10                                  External (suppliers)         Marketplace & Customer
                                                                                 Climate change and                                                                                                                                      Supplier Environmental assessment – EN32
                                                                                 energy management              Fair marketing             Customer data and
                                                                                                               communications              privacy protection                          Cyber wellness and online                         Local communities– SO2                                                   External (local              Community
     Med                                                                         Cyber wellness                                                                                        safety                                                                                                                     communities, charity
                                                                                and online safety                                                                                                                                                                                                                 partners)
                                                                                                                     Employee health
                                                                                Talent attraction                       & safety                                                       Inclusion of vulnerable groups                    Economic performance– EC1                                                Internal & external (local   Community
                                                                                  and retention                                                                                                                                          Indirect economic impacts – EC8                                          communities, charity
                                                                                                                       compliance                                                                                                                                                                                 partners)
                                                                                                                                                                                       Talent attraction and retention Employment – LA1                                                                           Internal                     Our people
                                                                                                                                                                                                                       Training & education – LA9 & LA11
                                                                                                                                                                                       Employee health & safety                          Occupational health & safety– LA6                                        Internal                     Our people

                                                                                                                                                                                       Climate change and energy                         Energy– EN3                                                              Internal & external          Environment
                                                                                                                                                                                       management                                        Emissions – EN15, 16, 17 & 18                                            (local communities,
                                                                                                                                                                                                                                                                                                                  charity partners)

                                                                       Influence on internal stakeholders (Internal perspective)
                                                                                                                                                                                      * All the external impacts are deemed to be within Australia except for supply chain and the environment, where the impacts are global.
                                                                                         Med                                                             High
18                                                                                                                                                                                                                                                                                                                                                                       19

     3   and customers
     Providing tomorrow’s
     customer experience,

            . Material Topics:

            Product quality...................................................................................................... pg 24
            Customer satisfaction........................................................................................ pg 26
            Innovation............................................................................................................... pg 27
            Supply chain management................................................................................ pg 28
            Regulatory 31
            Consumer data & 31
            Customer health & safety.................................................................................. pg 34
            Fair marketing communications...................................................................... pg 35

            Our customers are at the heart of
            everything we do. Our ambition
            is to be Australia’s most loved,
            recommended and innovative
            service brand. To achieve this, we’re
            making sure that we deliver the
            most innovative, high quality and
            secure customer experience.

20                                                                                                                                            21
MARKETPLACE & CUSTOMERS                                                                                                                                                                                                                 MARKETPLACE & CUSTOMERS

 Progress against                                                                                                                                  Our approach
 2015-16 goals                                                                                                                                     We’re committed to constantly improving
                                                                                                                                                   and preparing our network for the future.
                                                                                                                                                   That’s why this year we made the
       Goal                                                            Result       Detail                                                         investment to acquire a number
       Continue to drive the action we need to take to lift            Completed    Our NPS score of +5 is an increase on last year, showing       of new regional licences in the
                                                                                                                                                                                              “Optus is a huge investor in
       Market NPS and increase our lead on our major
                                                                                    continued improvement in our customer advocacy. We
                                                                                    remain the leading tier 1 Telco.
                                                                                                                                                   1800 MHz spectrum band, the
                                                                                                                                                   most popular spectrum globally              “Optus is a huge investor in
                                                                                                                                                                                              Australia’s mobile and fixed
       Continuously look for and understand our customer               Completed    Our dedicated Customer Experience team worked on a
                                                                                                                                                   for 4G Long Term Evolution (LTE)
                                                                                                                                                   deployments.                                Australia’s
                                                                                                                                                                                              internet       mobile
                                                                                                                                                                                                       networks:  $16and      fixed
                                                                                                                                                                                                                         billion since
                                                                                                                                                                                               internet  networks:      $16    billion
       pain points so we can address them and create tangible                       number of projects this year, targeted at known customer

                                                                                                                                                                                              2001 and we’ve guided the market
       reasons for them to be our advocates                                         pain points                                                    “When combined with our existing
                                                                                                                                                   assets, this additional spectrum
       Continue to focus on supporting our frontline people and
       our people in the call centre
                                                                       Completed    This year the My Life Hub, Psychological Risk Capability
                                                                                    Workshops, and Healthy Body at Work program have all
                                                                                                                                                   allows Optus to support Australia’s
                                                                                                                                                   growing demand for data services
                                                                                                                                                                                              that we2001    and almost
                                                                                                                                                                                                       will spend $1.8 billion this
       Developing larger flagship YES Optus shops which                Completed
                                                                                    provided extra support to our frontline people

                                                                                    This year we transformed 63 Yes Optus shops into new
                                                                                                                                                   in regional Australia. Optus now
                                                                                                                                                   has an expanded mix of spectrum
                                                                                                                                                                                               $2 billion
                                                                                                                                                                                              financial   this
                                                                                                                                                                                                        year    year(G4-EC7)
                                                                                                                                                                                                             alone”    alone.”                                 (G4-EC7)

       allow customers to touch and play with our products                          Generation 6 design                                            to deliver extensive coverage
                                                                                                                                                                                              Paul  O’Sullivan,Singtel
                                                                                                                                                   and superfast speeds for more
       Appoint a dedicated privacy executive to oversee the            Completed    Appointed in 2016
       strategy, policy and compliance relating to customer data
       privacy and protection in our operations and supply chain                                                                                   Allen Lew, Chief Executive Officer

       Reinforce the importance of information security and            Completed    This has been reinforced by initiatives put in place by our    We added over 260 new mobile             first satellite, Sky Muster™, which     broaden our security portfolio and
       privacy at all levels in the organization and company                        newly appointed privacy executive                              sites into the network this year,        will provide broadband services         address the fast growing market
       retailers.                                                                                                                                  enhancing the depth of coverage          across rural Australian homes and       need.
       Update the company data privacy framework to meet               Completed    As part of the Enforceable Undertaking we’re improving our     and capacity of our 3G and 4G            businesses. We’re responsible for
       evolving legislation and customer expectations; and                          privacy framework, with the introduction of a new privacy      Plus networks. We also continued         tracking and flying the satellite,      Trustwave has a mature,
       ensure information security and privacy compliance in                        governance structure with a new Privacy Team at the hub, and   with our 100G national upgrade           and are proud to be able to partner     end to end product portfolio,
       relevant areas of our supply chain.                                          Privacy Champions within the Business Units                    program, lighting up the Perth to        NBN and of the global recognition       incorporating their own intellectual
                                                                                                                                                   Cairns network circuit with a 100        of us as a respected satellite          property and home grown
       Implement the new Sustainable Supply Chain Framework,           Completed    Over 75% of our group procurement spend has been               gigabit per second upgrade.              specialist. (SDG9, SDG17)               technologies with alliances with
       which includes:                                                              assessed against key material issues. All significant new      This represents a ten-fold increase
                                                                                    contracts must adhere to our supplier code of conduct,
                                                                                                                                                                                                                                    many of the industry’s leading
       - 75% spend of suppliers will be assessed against key                                                                                      in the capacity of the link to meet      As well as investing in upgrading       Security technology companies.
          material issues                                                           and we undertook data privacy and cyber security audits
                                                                                                                                                   increasing demand for high-speed         our technology, we’re also              This Enterprise product will
       - 100% of new contracts will have the Supplier                              on a number of key companies we work with
          Code of Conduct applied
                                                                                                                                                   connectivity.                            making good on our promise to           mean our customers have an
       - Assurance review of relevant offshore/ outsource suppliers                                                                                                                        become a major player in sports         unparalleled choice of services to
                                                                                                                                                   We believe that this advancement         broadcasting. We secured the            build an intelligent and layered
                                                                                                                                                   in telecoms technology will be           exclusive rights to the English         defence against today’s known
                                                                                                                                                   crucial in achieving a number            Premier League for the next three       and tomorrow’s unknown security
                                                                                                                                                   of the UN’s 2030 Sustainable             years, as well as digital rights for    threats.
                                                                                                                                                   Development Goals, such as the           the Australian cricket team and
                                                                                                                                                   development of Sustainable Cities        sponsorship of the Australian
                                                                                                                                                   and Communities, Innovation and          Olympic and Paralympic teams.

 Our performance                                                                                                                Australian         Infrastructure, and No Hunger.

                                                                                                                                population         (SDG11, SDG9)                            Our network is advanced, but also
                                                                                                                                covered by                                                  safe and reliable. This is one of the
                                                                                                                                                   Our 4G Plus subscribers increased by     reasons our customers continue to
                                                                                                                                                   33% to 4.68 million this year, and our   give us the highest NPS of any tier
                                                                                                                                                                                            1 Telco.
                  Top 50 suppliers had
                                                               increase in number        Market NPS +5 Optus                                       market share of post-paid mobile
       50         risk assessments                             of 4G mobile              remains the leading                                       subscribers increased by 2% – this is
                  performed this year                          subscribers               Tier 1 Telco                          = 94%         *
                                                                                                                                                   more than any other Telco.               We’re committed to protecting the
                                                                                                                                                                                            privacy and data of our customers,       We’re committed
                                                                                                                                                                                            and of staying on the front foot
                                                                                                                                                   Innovation underpins everything
                                                                                                                                                                                            in the fight against cyber security      to protecting the
     A$1.6 billion                                         We’ve been launching          Over 260 new mobile              #1 on the Netflix        that we do, and all of our customer

     invested in capital expenditure                       satellites to connect         sites delivered into                ISP Speed Index
                                                                                                                            for eight months
                                                                                                                                                   offerings. We’re striving to be at
                                                                                                                                                   the cutting edge of our industry’s
                                                                                                                                                                                            threats. This year Singtel acquired
                                                                                                                                                                                            Trustwave for $1 billion, the largest    privacy and data
     and network improvements                              Australia for 30 years        the network                                  running      technological advancement. This
                                                                                                                                                   year we helped to launch NBN’s
                                                                                                                                                                                            independent US based managed
                                                                                                                                                                                            security services provider, to
                                                                                                                                                                                                                                     of our customers
22                                                                                                                                                                                                                                                                            23
MARKETPLACE & CUSTOMERS                                                                                                                                                                                            MARKETPLACE & CUSTOMERS

 Putting customer
 experience first
     We’re committed to constantly improving
     and preparing our network for the future.
     We worked tirelessly this year to
     deliver a bigger, better customer
     experience. From faster speeds to            “Optus improved substantially on its
     improvements in call quality and the
     addition of exclusive content, we
                                                  already solid performance last year,
     continued to invest in our network           narrowing the gap between itself and
     to bring our customers the very best
     out of their data.
                                                  Telstra, and in particular opened up the
                                                  throttle on data speeds."
     4G in more places:
     Using top notch 4G 700 MHz
     spectrum, we expanded our
                                                  "Optus scored an especially notable                                                                  Usain Bolt

     superfast 4G Plus network to more            boost in performance in the more
     places, especially in regional towns
     and highways, at the same time
                                                  regional areas, on connecting roads and
     boosting our indoor coverage in the
     big cities. Our 4G Plus network is
                                                  highways, to edge into the lead overall.”
     now available in all capital cities and      Source: 2015 P3 CommsDay Mobile Benchmark
     over 700 regional cities, towns and
     holiday locations around Australia.

     As well as expanding our 4G Plus          delivers sharper and clearer audio         introduced this year, which give        customers' experience, at home or
     coverage, we also upgraded our
     network speeds using the latest LTE
                                               for Optus-to-Optus mobile calls            customers the option of continuing      on the go. This includes keeping them    “4.5G and related technologies
                                               when using HD Voice compatible
     Advanced technologies in selected         devices.
                                                                                          their interaction with an agent using
                                                                                          live chat when they call us. As well
                                                                                                                                  connected when they're watching
                                                                                                                                  live events so they can access and       are the future of our increasingly
     metro and regional areas, providing
     those data hungry customers               Investing in winning content and
                                                                                          as allowing customers to interact
                                                                                          in a more discrete way than voice
                                                                                                                                  share digital content, faster.
                                                                                                                                                                           digitalized world. Huawei
     with the speed for even faster
     downloads. To get our network
                                               • Olympics: 10 year agreement to
                                                                                          calling, it also allows us to convey
                                                                                          information visually, simplifying
                                                                                                                                  Together with Nokia, we're working
                                                                                                                                  on an innovative solution to improve     together with Optus will strive
     ready for the future, together               become official telecoms partner        and maximising the information
                                                                                                                                  our 4G Plus network in major
                                                                                                                                  stadiums. Beginning with Sydney's
                                                                                                                                                                           to foster an open and a better
     with Huawei we’ve trialled 4.5G              of Australian Olympic                   that can be conveyed. These
     technology, achieving download               and Paralympic teams.                   technologies are being delivered to
                                                                                                                                  ANZ Stadium, we're running a
                                                                                                                                  trial that will significantly increase
                                                                                                                                                                           connected Australia.”
     speeds of 1.23 Gps.                       • Usain Bolt: brought on as an            around 60,000 customers a month,
                                                                                                                                  capacity of Optus' 4G Plus network       David Wang, President Huawei Wireless Networks
                                                  ambassador for the Optus                providing them with flexibility and
     Introducing 3G HD Voice                                                                                                      in and around the Stadium, boost
                                                  network, with a shared focus            choice in how they interact with
     and Wi-Fi calling:                                                                                                           upload and download speeds and
                                                  on relentless improvement               Optus.
                                                                                                                                  reduce battery drain.
     This year we became the first             • EPL: Optus has won broadcast            Optus was also the first Australian
     Australian Telco to introduce Wi-            and digital rights to all 380 premier                                           Enhanced coverage: We added
                                                                                          Telco to launch a mobile contactless
     Fi calling with the launch of our            league matches every season from                                                hundreds of new mobile sites to
                                                                                          payment service, the award winning
     Wi-Fi Talk app. This allows Optus            August 2016 - another significant                                               our network, boosting coverage
     customers to make or receive calls
     and send and receive SMS on their
                                                  step to becoming a mobile-led
                                                                                          ‘Cash by Optus’. This allows our
                                                                                          customers to use their smartphone       in big cities like Canberra and           Invested in
     smartphone via a Wi-Fi connection,
                                                  multimedia company.
                                               • Cricket Australia: Three year
                                                                                          to pay for goods and services
                                                                                          instead of using cash or plastic
                                                                                                                                  Wollongong. This investment hasn’t
                                                                                                                                  gone unnoticed. We’ve also been           winning partnerships
     meaning our customers can stay                                                                                               recognised for our network reliability
                                                  partnership announced with              debit and credit cards.
     connected even when they’re in an                                                                                            by the leading independent network
                                                  Cricket Australia to secure the
     area with limited mobile coverage.
     Our mobile voice call quality has            digital rights.                         Major stadiums getting more
                                                                                          Yes: With our focus on sports
                                                                                                                                  benchmark – 2015 P3 CommsDay
                                                                                                                                  Mobile Benchmark. In fact, we
                                                                                                                                                                            Olympics, Usain Bolt,
     also improved with the introduction
     of 3G High Definition (HD) voice
                                               Technology Deployment:                     content and entertainment, we're
                                                                                          committed to improving our
                                                                                                                                  were ranked number one for data
                                                                                                                                  performance on highways.
                                                                                                                                                                            EPL, Cricket Australia
     technology across our network. This       IVR to Chat and Visual IVR were

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MARKETPLACE & CUSTOMERS                                                                                                                                                                                           MARKETPLACE & CUSTOMERS

 Expanding our broadband
 services: We brought Optus
 broadband coverage to more
                                        recommend us to family and friends
                                        (G4-DMA). This year our NPS score
                                        grew from +4 to +5, showing we’re
                                                                               expect. One of the ways we’re
                                                                               doing this is through our call centre
                                                                               incentive program, which this year
                                                                                                                       Innovative solutions
                                                                                                                       for business
 Australians and continued delivering   still regarded by our customers as a   was awarded the Best Incentive
 improvements to our services           trusted wingman (G4-PR5).              Program at the Contact Centre
 across the year. High speed Optus                                             World Awards in Las Vegas.
 NBN is now available to more than      We still think we can do more
 1.5 million homes in both regional     though to achieve our ambition         This award has put Optus on
 and metropolitan areas, and we         of being Australia’s most loved        the world map for delivering            We’re rolling out                         has been to listen to the needs of      For the second year running we were
                                        and recommended service brand.                                                                                           the nearly 2 million small to medium
 launched Optus DSL to reach more
                                        Our annual complaints rate to
                                                                               best practice in the industry. The
                                                                               Frontline NPS Incentive program is
                                                                                                                       innovative product and                    businesses (SMBs) operating in
                                                                                                                                                                                                         awarded the Canstar Blue award
                                                                                                                                                                                                         for ‘Most satisfied customers rating
 rural and outback homes. Almost
 60% of Optus ADSL2+ areas and          the Telecommunications Industry        designed to bring the Optus values      solutions for our market                  Australia. We’ve tailored a range       for Small Business mobile phone
 nearly 50% of Optus Cable areas        Ombudsmen (TIO) averaged 2.5           to life in the everyday lives of our    across all arms of the                    of flexible products and bundles        service providers’, a fantastic award
                                        complaints per 10,000 services                                                                                           for SMBs, discounts and dedicated
 also received network upgrades in
                                        this year, compared to 1.9 last
                                                                               people, rewarding straight away
                                                                               those that truly are wingmen to one
                                                                                                                       Optus business.                           customer service teams to assure
                                                                                                                                                                                                         recognised by Australian small
 2015. We’ve ranked #1 in Australia’s
 Netflix ISP Speed Index every          year. This was a result of reliance    another and to their customers, and     We’ve helped large Australian             them that we’ve got their back,
 month since September 2015, as we      on NBN Co to deliver certain           helping to make our customers our       companies to ditch their handsets         and that they can focus on running
 improve our network to meet video      broadband products, greater than       advocates.                              for softphones, combine and               their businesses.
 streaming demand.                      anticipated demand of Local Access                                             integrate existing ICT services,
                                        Resales Telephony and Internet,                                                and roll out national video calling
 Yes to Customer Satisfaction           and disruption caused during
                                                                                                                                                                  Case Study: Vision 2015
 Putting the customer at the centre     introduction of our new customer
 of everything we do means more         service change system.                                                          Optus was named Cisco’s Top
 than just providing a great network    We’ve also worked hard to align our                                            Australian partner at the Cisco
 and content. It’s about listening to   customer service to our aspirations,                                           partner summit 2015 as well as
                                                                                                                       'Asia-Pacific & Japan Regional, and          In its fifth year, Optus Business’   David Rowan Editor-in-Chief of
 our customers’ needs and concerns.     to ensure that we’re delivering the
                                                                                                                       Global, Award for Architectural              Vision event has become one of       WIRED Magazine UK, and Tan
 Each quarter we ask consumers and      service experience our customers
                                                                                                                       Excellence in Collaboration' and             Australia’s top technology and       Le Founder and CEO of EMOTIV.
 our people how likely they are to
                                                                                                                       'Revenue Marketer of the Year'.              thought-leadership gatherings,       They talked about the rapid rate
                                                                                                                       This is recognition of our position as       attracting influential speakers      and power of change and the
                                                                                                                       a leader in ICT, and our credentials in      and esteemed leaders from            need for companies to be flexible
                                                                                                                       delivering best of breed solutions to        government and industry. ‘Road       and responsive to survive. Tan Le
                                                                                                                       our customers.                               to Growth’ was the theme for         even spoke about “the power to
                                                                                                                                                                    Vision 2015, focusing on how         redesign our own brains.”
                                                                                                                       We’re always looking for ways to             organisations can best prepare
                                                                                                                       collaborate with innovative partners         for, and facilitate change, while    “Companies with a high degree
                                                                                                                       to provide the best products and             continuing to drive growth. More     of change readiness are twice
                                                                                                                       solutions to our customers. This year        than 1,200 people attended           as likely to achieve their growth
                                                                                                                       we announced a partnership with              the event at the Sydney Town         targets. So, the purpose of Vision
                                                                                                                       Cisco to accelerate the development          Hall with a further 462 virtual      2015 is to learn more about what
                                                                                                                       of new technological capabilities            delegates participating online.      it takes to become highly change
                                                                                                                       to support Australian business and                                                ready. We’re here to provide
                                                                                                                       government to become more agile in           Vision supports Optus’ strategic     valuable insights, tools, advice
                                                                                                                       the innovation economy. Over three           goal of lifting our profile as a     and networking opportunities.”
                                                                                                                       years the partnership will invest            leading ICT organisation. It’s
                                                                                                                       $12 million in the local development         an opportunity for us to thank
                                                                                                                       of capabilities focused on cyber             customers and demonstrate to
                                                                                                                       security, cloud, the Internet of Things      industry the value we deliver.
                                                                                                                       (IoT) and the network of the future.         Vision is also the platform for
                                                                                                                                                                    launching Optus’ annual ‘Future
                                                                                                                                                                    of Business Report’ which
                                                                                                                       We’ve also struck a partnership with         determines the theme and
                                                                                                                       the innovative car riding service Uber,      content for the conference and
                                                                                                                                                                    sets out Optus’ business agenda
                                                                               We launched                             to run an in-car Wi-Fi trial across
                                                                                                                       Sydney and Melbourne. We’ve set up           for the next 12 months.

                                                                               Optus DSL to                            prepaid Wi-Fi in 100 vehicles across
                                                                                                                       their fleet, allowing up to 10 devices       Vision 2015 attracted an
                                                                                                                                                                    outstanding group of keynote
                                                                               reach more rural                        to be connected at the same time.
                                                                                                                                                                    speakers, including Bernie           John Paitaridis
                                                                                                                                                                                                         Managing Director
                                                                               and outback                             It’s not all about providing services
                                                                                                                       to Australia’s big business either.
                                                                                                                                                                    Brookes, former CEO of Myer,         Optus Business

                                                                               homes                                   One of our focus areas for this year

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