Optus CR Report 2011 Online 1211

8/2/2019 Optus CR Report 2011 Online 1211

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ConnectingCommunities

Optus 2011 CorporateResponsibility Report.

IntroductIon


2/642 2 8 10 12Introduction Message from the CEO Governance Our customers2

Over 1,000 employees participated in Back to the Floor.


3/643Our people Our environment Our community Awards Index22 30 38 48 50Our people Our environment Our community Awards Index

Our approach

At Optus, we are committed to operating in a socially andenvironmentally sustainable way. We aim to embed corporateresponsibility into our everyday business practices.

Our corporate responsibility framework guides our activities,community investments and supports the initiatives that we

undertake with our customers, our people, the environment,our suppliers and the communities in which we operate.

3

Lead incustomerexperience

OUR MATERIALISSUES

Great place

to work

OUR CORPORATERESPONSIBILITY GOAL

Responsiblegrowth, societyand environment

>Responsible marketing

>Customer service and

safety

>Ensuring access

>Driving innovation and

uptake of technology

>Disaster response

To be a company that our customers, our people and the wider community can trust

and to use our technology, products and services to make a positive social impact.

>Leadership and talent

development

>Engaging our people

>Learning and

development

>Supporting diversity

>Reconnecting

disengaged youth

>Build social inclusion

>Minimising our

environmental footprint

>Influencing our supply

chain

OUR KEY PILLARS

Cover: Young student participating in Schools of the Air program.


4/644 2 8 10 12Introduction Message from the CEO Governance Our customers

Our services include mobile, national, xedand international phone telephony, businessnetwork services, xed and wirelessbroadband, satellite services, entertainmentand subscription television and digitalservices.

Most of our services are offered under theOptus brand, although we also own VirginMobile Australia, Uecomm and Alphawest.

We employ 10,090 people directly and morethan 2,000 people work across our 270retail stores, most of which are franchised.

Our services depend on ongoing investmentin our network. In the past ve years, wehave invested over $AUD2.2 billion. Our 2Gand 3G/HSPA mobile network covers over700,000 square kilometres and up to

97 per cent of the Australian population.

We operate over 5,000 mobile base stations,ve satellites and 418 local telephoneexchanges.

We deliver mobile services through morethan 9,500 mobile base stations. We operateve satellites which deliver pay TV to over2 million households. Our Hybrid FibreCoaxial xed-line network can service1.4 million homes in Brisbane, Melbourneand Sydney. Our xed-line networkconnects more than 18,000 corporate

premises. Our ULL and DSL footprint coversup to 2.9 million premises, with over 1,200DSLAM racks in 418 exchanges

Opt i organied into or majorbine area:

optus consumerOffers a range of services and productsto Australian consumers includingmobile voice, data and wi- services,Optus television, long distance andlocal telephony, high speed internetand dial-up access.

optus BusInessProvides alternative access services andcommunications exibility to corporateand government clients.

optus smBMeets the telecommunications needsof small and medium businesses inAustralia.

optus Wholesale & satellIteProvides services and capacity to othertelecommunications companies.

CUSTOMER

FACING

UNITS

INTERNAL

UNITSCORPORATE

Consumer Productsand delivery

Business

Small andMedium Business

Wholesaleand Satellite

Networks

Support unitsincluding HumanResources, IT,Finance andCorporate andRegulatory Affairs

Who we are and what we doOptus delivers greater competition in the Australian telecommunications market. We have been givingAustralian consumers greater choice and value since 1992.

9 millionWe connect more thanindividual and business customers every day.Christopher Whybird Snr Technical Specialist, Networks


5/645Our people Our environment Our community Awards Index22 30 38 48 50Our people Our environment Our community Awards Index

Financial perormance(for the year ending 31 March 2011)

2010

Operating Revene $aud9.284 bii

(Up 4 per cent from 2010)

Operational EBITDA $aud2.334 bii(Up 8 per cent from 2010)

Free cah ow $aud1.206 bii(Up 19 per cent from 2010)

For more information:http://info.singtel.com/sites/default/les/stockexchange/2011-

AnnualReport.pdf

Capital expenditre

Year ending 31 March 2011 Year ending 31 March 2010

$AUD1.02 billion $AUD1.05 billion

Ctomer

Year ending 31March 2011

Year ending 31March 2010

Mobile 9.068 million 8.498 million

Fixed line telephony 1.080 million 1.096 million

Mobile broadband 1.28 million 907,000

Fixed broadbandinternet 996,000 980,000

Satellite Facility

Optus Cable

International Cable

Leased Cable

3G Dual Band Coverage (Mar 11)

3G Dual Band with External Antenna Coverage (Mar 11)

3G Dual Band Planned Coverage(Refer to optus.com.au/coveragefor more details)


6/646 Message from the CEO Governance Our customers2 8 10 12Introduction

Abot thi report

This report is for the nancial year ended31 March 2011. It is our 12th annual report onthe social and environmental performanceof our wholly owned operations in Australia.Offshore ventures are and subsidiaries notincluded in this report, unless otherwisespecied.

In previous years, we published a printedreport. This year, we are saving paper andmaking the full report available as a PDF.

In preparing this report, we have focusedon key material issues identied by ourCorporate Responsibility Taskforce and usedthe AccountAbilitys AA1000 principles ofinclusivity, materiality and responsivenessto stakeholders.

This report summarises the progresswe have made against our corporateresponsibility commitments.

We welcome your feedback. Please [email protected] with anyquestions you may have.

Global ReportingInitiative

Global Reporting Initiative(GRI) The report applies

the Global Reporting Initiative (GRI) G3Guidelines. Our third party checked GRIapplication level is A. The GRI Index ison page 50.

This report has not been externally assured.Optus will be moving towards externalassurance in the future.

London BenchmarkingGrop (LBG)

Optus uses the LBGframework to measure andreport on our voluntarycontributions.


7/647Our people Our environment Our community Awards Index22 30 38 48 50

Optus is headquartered at MacquariePark, New South Wales, Australia.

We are a wholly-owned subsidiary of the

Singapore Telecommunications Limited(SingTel), which is listed on boththe Singapore Exchange (SGX) and theAustralian Securities Exchange (ASX).


8/648 Introduction Governance Our customers2 8 10 12Message from the CEO

Message from Paul OSullivan

Chief Executive

Every day, we help businesses prosper,communities grow, friends catch up, and familiesstay in touch. What we do makes a difference these connections promote economic growth,productivity and social inclusion, all vitalelements for a sustainable Australia.

This year has brought some stark reminders ofhow intricately mobile technology has becomewoven into our lives, and how its the ability toconnect with people that matters most.



In true Optus spirit, we were there to support Queenslanders asthey coped with the devastating disasters of Cyclone Yasi andunprecedented ooding. We supplied satellite phones to emergencyservices, while our people worked tirelessly to x broken cablesand set up portable base stations at relief centres. We distributed2,000 handsets with mobile credit to enable people to contact theirloved ones, and in the following months, we credited thousands ofcustomers bills as people struggled to rebuild their lives.

Optus people donated generously, with Optus matching donationsdollar for dollar. Our contribution to disaster relief in 2010/11 wasan outstanding $1.9 million in cash, donations and in-kind support.

In total this year, we invested $9.4 million in community programsand activities, with a focus on those that build social inclusion andhelp reconnect disadvantaged youth. Our partnership with TheSmith Family on the mobile student2student pilot program is a greatexample of how we can use our technology to help in the community.We supplied mobile phones and prepaid credit to 100 students withreading challenges to connect them with other students to improvetheir literacy development.

Weve made some giant leaps forward in our drive to providetelecommunications services to more Australians, investing

$1.1 billion to expand the reach and performance of our xed, mobileand satellite networks. The Optus Open Network now reaches 97%of the population for both voice and data. This year saw 12 isolatedcommunities gain access to 3G for the rst time. We also celebrated25 years of satellite services and announced plans to launch a tenthsatellite in 2013 that will bring even more benets to customers.

Our ability to innovate underpins our growth and position as a marketleader. The launch of a business division dedicated to creating digitalproducts and services is delivering exciting new experiences that webelieve will change the way people integrate technology into theireveryday lives.

Being a good corporate citizen goes beyond strong businessperformance. Reducing our environmental footprint is a priority.In the past year, we replaced more than 3,000 air conditioners withenergy-efcient fans in mobile base stations nationwide, and movedmore customers to online billing, saving 3.2 million sheets of paper.

Looking ahead, we expect to see more rapid but exciting change.We welcome the introduction of the National Broadband Network,provided it supports greater competition, innovation and choice.

The true heart of our business is our people. Our diverse workforceof 10,000 is drawn from more than 70 nationalities. This diversitytranslates to a more inclusive workplace and a better understandingof our markets and the customers we serve. My thanks go to thewhole Optus team for a successful and fullling year together,weve made some amazing things possible.

I invite you to review this report which outlines our activities in detail.I look forward to achieving even more together in the year ahead.

Paul OSullivan, Chief Executive


10/6410 Introduction Message from the CEO Our customers2 8 10 12Governance

As the subsidiary of a public companylisted on the Singapore and Australianexchanges, we are guided by the SGX Codeof Corporate Governance 2005 and the ASXGood Corporate Governance Principles andRecommendations with 2010 amendmentsreleased 30 June 2010 . Where oneexchange has more stringent requirements,these are observed. For further informationon our corporate governance, please seethe SingTel Investor Relations AnnualReport. Our employees are expected to

follow SingTels Code of Conduct, internalcorporate governance practices, policystatements and standards. The codeprovides guidance for employees onupholding the highest standards of integritywhen dealing with competitors, customers,suppliers and the community.

It covers conduct in the workplace,business conduct, protection of SingTelsassets, condentiality, non-solicitationof customers and employees, conicts ofinterest and corporate opportunities.

Our Corporate Responsibility SteeringGroup, led by our CEO, and withrepresentation from senior management,provides strategic guidance for ourcorporate social responsibility performance.

Engaging ourstakeholders

Optus approach to stakeholder engagementis based on open dialogue with the peopleand groups who are important to us andthose to whom we are important. We seeour major stakeholder groups as customers,communities, employees, government andregulators. The way we engage with each ofthese stakeholder groups is outlined below.

We have determined our material prioritiesbased on our understanding of ourstakeholders needs.

Some 40 per cent of our people havedirect interaction with customers in theirday-to-day work. This direct contact issupplemented by customer surveys and theWe Hear You website.

We also have a Consumer Liaison

Forum (CLF), which meets annually.Members are consumer representatives,whose organisations have an interest intelecommunications issues.

We stay in touch with local communitiesthrough a range of channels, includingletterbox drops, local newspaper articlesand community consultative committees.

Within the business, we run employeeroadshows, engagement surveys,workshops, newsletters, and health

and wellbeing expos. We also run Optusfamily days.

We also meet regularly with governmentrepresentatives and regulators andparticipate in industry forums.

We welcome your feedback on ourCorporate Responsibility Report. Pleasecontact us at [email protected]

Established in 1995, theConsumer Liaison Forum (CLF)provides consumer input intothe development of policiesand practices to overcomebarriers for access and use oftelecommunications productsand services. Current memberorganisations are:

Australian Communications

Consumer Action Network Australian Financial Counsellingand Credit Reform Association

Blind Citizens Australia Deaf Australia Deafness Forum of Australia Federation of Ethnic

Communities Councils ofAustralia

Isolated Childrens ParentsAssociation of Australia

National Council of Women of

Australia.

GovernanceOptus aspires to the highest standards of corporate governance to ensure long-term success,and enhance corporate performance and accountability.



Curious is a quarterly internal newsletter,keeping Optus people informed and engaged.


12/6412 Introduction Message from the CEO Governance2 8 10 12 Our customers

Improving our customer experience

Five years ago, Optus was in the business of delivering a highperforming voice service. We were a telephone service company.Today, our business is about providing people with useful,personalised content and services on a range of networks anddevices. Optus is changing to connect people in new and dynamicways.

We see there are ve areas that now drive the customer

experience as people use telecommunications:

1. The device customersuse to access services

2. The application andcontent customers use

3. The quality of thenetwork that deliver thecontent and services

4.Integration of thecustomer experienceacross xed and mobilenetworks and all thedifferent devices they use

5.Ctomer ervice in howcustomers are billed andtheir interactions withcall centres.

All ve areas are changing very quickly, and the rate of change isaccelerating. Whilst these changes bring many benets there is alsorisk of misuse. This is why we have in place systems for cyber safety,privacy and continue to invest in customer experience systems toimprove accessibility.

Device

In the mid-1990s, the most fashionable mobile phone on the marketcould only make and receive calls. Two years after it was launched,

the big innovation was the ability to send and receive SMS messages but only to people with the same telecommunications carrier.

Today, a mobile handset also allows you to browse the internet,access applications, watch videos, access email and take high qualityphotographs. The average smartphone has the computing power of aPC from 2005.

The smartphone is just one device our customers use. They alsouse tablet computers, wireless game consoles and xed phones thatoperate as IP based video conferencing centres. And as these devicesbecome more sophisticated, people want to connect them to eachother.

Increasingly, people who ring our call centres are not asking abouttheir account. They are asking how to attach a device to their email,sync it to another device or link to a major content source such asiTunes.

We are the rst point of contact for a problem that may relate tothe content provider, rather than to Optus, but we usually resolve itanyway. The average mobile technical support call takes 40 per centlonger to resolve today than it did three years ago. We have alsohad to double the number of people in our mobile technical supportteams to deal with more customers and more complex questions.

Application

Less than four years after the iPhone was launched, it hasrevolutionised the way Australians use phones.

There are now 300,000 applications available through the AppleiTunes store and 200,000 through the Google Android Marketplace.Optus has 2,500 localised apps in our app store.

As well as consumer apps, we have worked with major businesscustomers to develop apps that help them increase productivity.

Customers want to be able to access their applications and systemsanywhere at any time from any device. To meet that need, Optus isdeveloping Cloud Services that host all applications centrally and

allow access at any time, whether the customer is using asmartphone, PC or tablet.

Our customers



Network

Over the past ve years, Optus has investedmore than $AUD2 billion to expand andimprove the coverage it offers customers.In 2010, we increased the number of basestations on our 3G network by more than15 per cent to both expand geographiccoverage and to increase capacity to match

the growth in data trafcWe are often the rst telecommunicationscarrier to provide coverage in newlydeveloped areas. The 3G dual band networkcovers up to 97 per cent of the Australianpopulation.

On xed networks, the major challengefor Australia is to ensure the new NationalBroadband Network supports fullcompetition among telecommunicationproviders, rather than creates or

perpetuates a monopoly.

Integration

Integration is based on the idea thatcustomers should be able to look at a pieceof content, change and store it on onedevice, say a smartphone, then be able tolook at the changed content on their PC,tablet, laptop or television without havingto physically move it there. In other words,a change in one device will automatically bereplicated in all the others.

Optus has built a platform calledN-screens to support this integration andis rolling it out across Australia.

Ctomer ervice and billing

The last element of the customerexperience is the one that attracts most ofthe media coverage customer billing andcomplaint handling.

The total number of complaints about

telecommunications services continues tobe a concern. One of the big drivers for theincrease in complaints is unexpectedly highbills for smartphone usage.

At Optus, we have invested time and moneyto bring the rate of complaints down. We:

Spent over $AUD250 million upgradingour IT systems to help us betterunderstand our customers and theirneeds and provide them with high levelonline functionality

Commissioned detailed customerresearch to identify what people like Optus yes Shops providing customers with the latest devices .



about their telecommunications provider,what they dont like and what trade-offs they will accept between price andservice

Developed a series of apps which allowcustomers to look at how their capallowance is going, how much data theyhave downloaded and what their latestcharges are so they can better manage

their accounts.

Key events andinitiatives 2010/2011

Network coverage and perormance

In the year to 31 March 2011, Optusinvested a total of $AUD1.02 billion in thetelecommunications infrastructure that

supports its networks.

Our 3G dual band mobile network nowcovers over 700,000 square kilometres ofAustralia reaching up to 97 per cent of theAustralian population.

Over 500 new base stations were rolled outover the year, bringing dedicated mobilecoverage for the rst time to a further 14remote towns.

We extended broadband further intoremote and rural areas, receiving around$AUD617,195 in subsidies from theAustralian Government to do so.

We also contributed $AUD29 millionthrough the Universal Service Obligationarrangements towards the cost of providingstandard telephone services, payphones andother services in rural areas.

Focus on digital media

W i iiiy?Technology step change in thetelecommunications industryis driving greater networkbandwidth and faster speeds,coupled with the proliferationof mobile devices. Customersare connecting over a wide range

of smart devices such as smartphones and tablets, whichis driving a strong take-up for digital services and a greaterdemand for data.

Increasingly, consumers are using these devices as their emailbrowsers and their internet surng devices. The use of themobile phone is moving from the ear to the eye as more peopletake advantage of the exciting possibilities these powerfuldevices offer. Increasingly, the only difference between thecomputer, your mobile phone and your TV, is the size of thescreen.

People will continue to be able to perform tasks they never

thought they could, such as making mobile payments, checkingtheir health and accessing education services from remotelocations all from their mobile device.

hw i g wy o bi wi i?The digital environment is shifting the way our customerstransact with us, with more and more consumers everydaychoosing to shop, pay their bills and request customer servicethrough digital channels.

Optus is also developing exciting new digital productsand services in response to the new ways people want tocommunicate, collaborate, nd information and be entertained.For example, things which we used to do physically are

increasingly being digitised. There are products and services thatused to involve shops, DVDs, paper and now these are all beingdelivered electronically.

A good example is content. The content you once had to be athome or in front of a TV screen to watch, is now delivered toyou on a mobile. During the World Cup last year in South Africa,we delivered nearly 400,000 streams of soccer games to Optusmobile phone customers.

This also means that were focusing heavily on security andprotection so that people feel safe in using these types ofapplications.

hw o ?As a carrier we can leverage our customer knowledge suchas understanding their viewing habits and where they like togo, to create more meaningful and personalised relationships.This provides Optus with an opportunity to offer its 10 millioncustomers access to relevant digital products and services thatenable them to better manage their daily life, be entertained andinteract with their social communities.

In order to achieve this, Optus is evolving as a digital servicesprovider, which has led to the establishment of the Optus DigitalMedia division.

Optus Digital Media is a new business division dedicated to

creating digital products and services through our internalcapabilities as well as technology partnerships. We aredeveloping digital products and services that leverage carriageservices across xed and mobile devices. Our digital portfolionow includes cloud-based services such as online storage andbackup, IPTV services and digital content and applications forconsumers and businesses.

Our digital services enable consumers to better communicate,nd and share information, and be entertained. They offer highlypersonalised, relevant digital services on any device, givingcustomers a consistent experience wherever they are. Theyalso enable small businesses to communicate, collaborate andmarket their business on the go.

Atin Bryan,DIRECTOR OPTUS DIGITAL MEDIAQ&A



Satellite

In March 2011, Optus announced it woulddeploy another satellite, Optus 10, in2013. Optus 10 will deliver customers theexibility to provide high quality broadcastservices to households, and two-way voiceand data communication services to areas

in and around Australia.

Optus 10 will be built in Palo Alto, Californiaby Space Systems/Loral, which deliversspacecraft for direct-to-home television,digital audio radio, broadband Internet,digital multimedia broadcasting and otherservices.

Access tocommunications

Optus has a Disability Action Plan and aCultural and Linguistic Diversity Policy toguide our approach to ensuring as manypeople as possible can access our servicesand the employment opportunities we offer.

During 2010/11, Optus has been workingwith the Federal Government and othertelecommunication service providers onplans to implement the Governmentspromise to enable hearing impaired people

to contact emergency services usingSMS to 106. Optus provides disability aidssuch as teletypewriters, large button and

volume control handsets. Information forcustomers who have speech and/or hearingimpairments is readily available.

For customers with vision impairment,Optus also provides large font and Braillebills for a number of products, and isworking to extend this service further.

Optus Cultural and Linguistic DiversityPolicy focuses on four areas:

Corporate culture Marketing activities Employment practices, and Interaction with the community.

In removing communication barriers forpeople from diverse cultural and linguisticbackgrounds, benets for many othersare also achieved. Providing written

communications in plain and simpleEnglish, for example, will assist people withlower literacy levels or for whom English isnot their rst language.

Recruitment processes that take diversecultural requirements into account ensureOptus benets from the broad range ofknowledge and experience that people fromdiverse cultures bring to the company.

For more information, please see

optus.com.au/disability andoptus.com.au/diversity

In NSW, not far from theborder with Victoria, is a small

town called Kyalite. With apopulation of just over 100people, it is predominantlya wheat farming community.

Until Optus arrived there inOctober 2010, Kyalite did nothave a dedicated mobile service landlines were the main formof communication.

Now that wehave coverageit has madethe day to dayrunning of ourbusiness a loteasier.Farmers are business peopleand without adequate mobilephone coverage they are ata competitive disadvantage,possibly missing out oninformation on contracts, orother commercial opportunities.By installing new infrastructurein Kyalite and surroundingtowns, Optus lled a gapin its network and brought

competitive coverage to thelocality. It has, stated one local,made the day-to-day running oftheir business a lot easier.

Kyalite is just one of 12 isolatedcommunities to benet fromour continued 3G networkroll-out in 2010/2011.

New infrastructure installed at Kyalite.

CAsE sTuDY:

WHEN KYALITEWENT MOBILE



CAsE sTuDY:

RECONNECTINGCOMMUNITIES AFTERNATURAL DISASTERS

Many of our peopleworked continuously overseveral days and nights,often in difcult andremote situations.When oods hit Queensland inJanuary 2011, the Lockyer Valley wasone of the worst affected areas withthe death toll rising as the waterssurged.

Optus was the rst tele-communications provider to restoreservices to the Lockyer Valley. Ourpeople visited over 1,500 homes andbusinesses to restore services andhanded out some 2,000 handsetsand prepaid SIM cards, to ensurepeople could get in contact with theirloved ones. In every area hit by thedisasters, Optus responded quickly,providing customers extendedpayment periods, waiving fees anddiverting calls from xed line servicesto mobiles free of charge. Weresponded to around 2,300 requestsfor assistance with customers bills.

The Lockyer Valley was just one ofthe tests Optus faced in restoringservices as Australia suffered a seriesof summer oods in Queensland,northern NSW and Victoria, and

Cyclone Yasi in northern Queensland.

The disasters happened in quicksuccession. We used trailer-basedtemporary mobile base stations,satellite transmission equipmentand portable power generatorsto restore services as quickly aspossible. The mobile base stationsallowed residents with mobile phonesto speak to emergency services.Residents were also able to speak toloved ones and update their statusthrough social media. Many of ourpeople worked continuously overseveral days and nights, often indifcult and remote situations.



Improving the customerexperience

Customer experience is the number onepillar of the corporate strategy, and weare working to instil a customer-centricmindset across our entire organisation.More than 40 per cent of our people speak

with our customers on a day-to-day basisbut there are many non-customer facingpeople who support them. We have givenall these people the opportunity to interactwith our customers through the Back to theFloor program. To date 2,200 of our peoplehave participated.

In 2010/11 we continue to roll-out our rigorouscustomer experience transformationprocess consisting of three key steps:

Customer research to identify whatmoves the needle and current pain-points

Setting operational metrics and targetsbased on customer insight

Launching SingTel Optus Lean projects tox major performance issues.

We have dened and have rolled out aculture change program to reinforce theright behaviours of an organisation thatputs the customer rst, which we call MEWE. Optus people are empowered to makedecisions that help customers quickly which has helped improve rst call

resolution of issues at our call centres. Ourpeople have also moved out of call centresand into proactively surng blogs andintervening in real time to resolve customercomplaints.

Investments in technology at Optus alsohelp us improve the customer experience.To date we have spent over $AUD250 million

upgrading our IT systems to help us betterunderstand our customers and their needsand to provide them with high level onlinefunctionality. We have developed a series ofapps which allow customers to look at howtheir cap allowance is going, how much datathey have downloaded, and what their latestcharges are, so they can better managetheir accounts.

Optus conducts a number of differentcustomer survey programs to gaugecustomer satisfaction (and dissatisfaction)as well as for product and market researchpurposes in the consumer market. TheOptus Yes-Meter customer survey is theoverarching customer satisfaction researchprogram across the organisation, with othercomplementary customer research studiesconducted for more specic qualitative and/or quantitative purposes. These programsplay a key role in ensuring customers guideand inform the Optus strategy, decisionsand investments, ensuring customersatisfaction remains at the core of business

and that a positive customer experiencecontinues to be a differentiator for Optus inthe market.

Whilst we strive to continually deliver asuperior customer experience, across ourindustry the volume of customer complaintsremains an issue. The TelecommunicationsIndustry Ombudsman (TIO) recordscomplaints against all telecommunicationscompanies. In the four years to 2009complaints about Optus to the TIO almostdoubled, but the increase has attened to

2 per cent from July 2009 to June 2010.This is a decline when measured on per10,000 customer basis. Since peaking ata rate of almost four complaints per10,000 subscribers in year to June 2009,12 months later our complaints weretracking at less than three complaints per10,000. Billing and payments continues tobe the issue about which we receive themost complaints.

Complaint againt Opt made to theTelecommnication Ombdman

Year Nmber* % increae

2007 17,656

2008 22,923 23

2009 31,210 27

2010 31,855 2

*Figures are for the twelve month period Julyto June.

Customer hardship

Optus runs a nancial hardship program to support customerswho are having trouble paying their bills. We work with eligiblecustomers, offering a range of assistance including extendedpayment timeframes and appropriate access to ongoing services.

There was a 64 per cent jump in 2010/11 in the number of peoplemaking use of the hardship service. One reason for this was bettertraining and systems that ensured Optus employees had a betterunderstanding of who was eligible for assistance.

However, the biggest continuing driver for the increase wasunusually high spend in particular by customers withsmartphones exceeding the data allowances on their serviceplans. Other reasons were:

The impact of natural disasters, including Cyclone Yasi and theoods in Queensland and Victoria

Higher interest rates as a result of Reserve Bank decisions

Loss of employment and reduced hours of work.

Reaon or hardhip reerral March 09 March 10 March 11

Volume of caseson hand

421

1,329

2,110

Unusually

high spend

Loss ofemployment

23%

7%

11%

Disaster relief1%

0%

8%

Other

(broken down)

39%

62%

60%

37%

31%

21%



Regulatory Compliance

Optus is regulated by a number of government agencies including theAustralian Communications and Media Authority (ACMA). This agencyworks with the electronic media industry to respond to communitystandards and respond to audience and user needs.

The Australian Communications and Media Authority (ACMA) is thekey telecommunications industry regulator.

In August, the ACMA issued Optus with a formal Direction to complywith the Mobile Premium Services (MPS) Code after nding thatOptus had breached three advertising-related Code clauses in August2009. The breaches related to an advertisement containing theOptus store nder service not providing pricing or customer careinformation in a clear and prominent manner as required under theMPS Code.

Receiving a Direction to Comply is a serious matter non-compliance with a Direction can expose Optus to court action

with potentially heavy nancial penalties.

The ACMA undertook two compliance audits of Optus in2010/11. The rst was to ensure compliance with sections of theTelecommunications Consumer Protections (TCP) Code relatingto the provision of information to customers about disabilityservices and equipment. The second related to our compliancewith the Integrated Public Number Database (IPND) data qualityspecications. IPND is the national repository of telephone numbersand associated address data. It is primarily used for emergencyservices dispatch and public number directories.

The ACMA was satised with Optus compliance with the Code rulesaudited.

Responsible advertising andmarketing

As telecommunications becomes more complex, customers expectsound advice to help them choose the products and services thatbest meet their needs and budgets. Optus employees are required toundertake annual online training on consumer protection obligationsto promote fair, competitive and informed consumer choices.

Optus takes its obligation not to mislead consumers seriously, andtakes care to ensure all marketing and advertising campaigns arecarried out in accordance with the law. However, during the year theFederal Court found that Optus engaged in misleading and deceptiveconduct when it advertised broadband plans as unlimited when theplans had usage limits.

Before the judgments, Optus had already amended its advertisingto address the issues raised by the regulator. We were disappointedthe court considered we had contravened the law, but we used the

opportunity to undertake a thorough review of staff awareness,training and marketing sign-off processes and to implement processimprovements where gaps were identied.

In 2010 Optus became a signatory to the TelecommunicationsConsumer Protections (TCP) Code, and is currently the only providerto be a signatory to this Code. The TCP Code includes obligationson sales and advertising, customer contracts, customer transfer,complaint handling, billing and credit management.

Optus is also subject to a self-regulatory regime, coordinated bythe Communications Alliance, the telecommunications industryassociation. Furthermore, all mass market telecommunicationsservices are made available through Standard Forms of Agreement tohelp ensure clarity of our product offer for our customers.

Contributing topublic policy

During the reporting period, Optusliaised with Government and industrystakeholders on a range of public policymatters, including:

The Governments development of anational Australian Consumer Law

Regulations regarding the provision ofinternet and mobile content

The Governments introduction of newobligations regarding (component)price advertising

Spectrum policy issues Review of satellite and space policy

issues

Regulatory issues associated with thedeployment of mobile base stations

Effective use of taxpayer funding

and design of rural and regionaltelecommunication programs

The role and potential of the NationalBroadband Network

Use of Government procurementpractices to support development ofa competitive telecommunicationsenvironment

Regulatory issues around theAustralian Broadband Guarantee

Internet content ltering Requirements for identity checking

of purchasers of pre-paid mobileproducts

A review of emergency call servicearrangements

eSecurity (online security) issues Development and review of industry

codes of practice

International mobile roaming (Trans-Tasman market)

Review of the Privacy Act

ACCC reviews of access pricing forregulated wholesale services

ACMA enquiry into privacy protectionsamongst within the telco sector.

ACMA public inquiry into customerservice and complaints handling in thetelco sector

Universal Service Obligation policy.

Optus, in line with many otherorganisations, makes donations topolitical parties. In the interests offairness, Optus makes every attempt toensure equal donations are made to thetwo main political parties.

Donations which exceed the currentthreshold of $AUD11,500, are on anannual basis disclosed to the AustralianElectoral Commission through which they

are available to the public.



Cyber safety

The internet brings with it many benets toall Australians; their use of media permitsthem to gain and share knowledge in avariety of new and engaging ways. Theseadvantages are accompanied by exposureto a range of potential dangers includingcyber bullying, inappropriate social and

health environments, identity theft andbreaches of privacy. Optus is committedto ensuring the security cyber safety forall our customers. In 2010/2011 we workedwith our community partner, Kids Helpline,to develop an educational campaign toaddress cyber bullying. The program willbe rolled out in 2011.

iiafamily

friendly ISP

Optus participates in theInternet IndustryAssociations Family Friendly

ISP program and complieswith the IIA Codes of

Practice. The Internet Industry AssociationsCodes of Practice are registered with andmonitored by the AustralianCommunications and Media Authority(ACMA). Our customers can access an IIAapproved internet content lter.

We also comply with the IIAs iCode, a

voluntary industry Code that deals withcyber-security matters. The Code requiresOptus to take certain steps to protect itscustomers from cyber-security risks, and toprovide information on how customers canprotect themselves from such risks.

Customer privacy

Optus is committed to protecting the privacyof our customers and those individuals who

deal with us. Optus, as an Australiantelecommunications carrier, is bound by thePrivacy Act 1988 (Cth) and the privacyprovisions contained in the Telecomm-unications Act 1997 (Cth). Notwithstandingour legislative responsibilities, weunderstand that respect for consumerprivacy is good business.

We have a range of measures in place toensure we meet our responsibilities toprotect personal information. These includeensuring all people are regularly trainedon privacy, active information securityprotection and monitoring, and internal

codes of conduct. We also accept andrespect requests for individuals (including,but not limited to, our customers) not tohave their personal information used fordirect marketing purposes.

Health and safety of our

customersElectromagnetic radiation (EME) naturallyoccurs in the environment. It is alsocreated whenever an electrical applianceis connected to the mains supply. Radiocommunications, such as mobile phoneand wireless broadband utilise EME in theradio part of the spectrum. There has beenextensive research into the potential healthimpacts of EME, and as an industry, wehave collectively provided approximately$AUD9 million over 10 years, for researchinto the health impacts of EME, with Optuscontributing approximately 20 per cent ofthis amount. This funding is managed atarms-length from industry by the NHMRC(National Health and Medical ResearchCouncil). A key direction of the funding wasto establish and maintain the AustralianCentre for Radiofrequency BioeffectsResearch (ACRBR), a Cooperative ResearchCentre (CRC) based at Swinburne Universityin Melbourne.

The Australian Government has adoptedinternationally-recognised safety guidelinesdeveloped by the International Commissionfor Non-Ionising Radiation Protection(ICNIRP). Optus complies with these healthstandards. Handsets released to the marketmust comply with government standards,and our mobile phone towers are built tocomply with Australian law. In addition,we have developed educational materialsto inform our customers about EME. Wealso comply with the industry code of

practice for deployment of mobile phonetransmitting facilities.

Many Optus services can facilitateimproved health outcomes for customers.For example, SMS reminders can besent to patients about upcoming doctorsappointments. Broadband access canprovide alternative methods of diagnosisand suggestions for treatment, particularlyin remote areas.

Advertising andOptus

Since 1999, we have featuredanimals in our advertising. Todayour brand positioning is: Anythingis Possible and over time we have

evolved the much loved and highlyrecognised animals to help buildthe Optus brand to the strength thatit has today.

Optus often uses digital technologyto portray animals used in ouradvertising and on occasions thatwe do use live animals, we adhereto the New South Wales Departmentof Primary Industry Code of Practicefor the Welfare of Animals in Filmsand Theatrical performances.This Code is a standard whichestablishes guidelines for the useof animals. Where live animalshave been used, we support thefacilities and research bodies thatare managing their care throughnancial contributions.

In addition, Optus also has a longhistory of supporting endangeredanimals and their natural habitats.Our long standing partnership withAustralian Wildlife Conservancy(AWC) helps conserve and protectmany endangered Australianspecies to ensure futuregenerations can enjoy them.Our partnership helps fund keyprojects and raise public awarenessof animals that are under threat ofextinction. Together with AWC, wehave made a real difference to theprotection of these animals.

In early 2011 the AdvertisingStandards Board receivedcomplaints about an advertisementwhich aired during the AustralianOpen Tennis . The advertisementfeatured computer-generatedcrocodiles playing tennis using theirtails as racquets and a sugar gliderpossum as a ball. The Board ruledthat the television advertisementdid not depict cruelty to animalsand thus complied with AustralianAssociation of National AdvertisersAdvertiser Code of Ethics.



ACHIEVEMENTS IN 2010/11

CusTOMER sAFETY

Reviewed EME arrangements at 80 sites to ensurecompliance with the code of practice and the safetyof our customers. Three sites were independentlymeasured for EME output levels.

INVEsTMENT AND DEVELOPMENT OF NETWORKs

Rolled out our 3G dual-band mobile network to reach97 per cent of the Australian population.

Invested approximately $AUD1.102 billion in developinginfrastructure.

Assisted communities in Queensland Victoria affectedby natural disasters. We supported fundraisinginitiatives to help those affected by the earthquakes inNew Zealand and Japan.

CusTOMER sATIsFACTION

Achieved an 87.7 per cent Voice of the Customer score

TARGETS FOR 2011/12

CusTOMER sERVICE

Achieve yes Optus meter target of 7.7 per cent forcustomer experience.

CusTOMER sAFETY

Review EME arrangements at 20 sites to ensurecompliance with the code of practice and the safety of ourcustomers.

KEY PERFORMANCE INDICATORS

Priority Indicator unit 07/08 08/09 09/10 10/11

Invet anddevelopnetwork

Investment anddevelopment of networksAmount invested in capitalexpenditure

Billions 1.00 1.04 1.05 1.02

Network reachAustralias populationcovered by Optus dual bandmobile 3G network

Percentage 96% 96% 96%Percentage up

to 97%


22/6422 Introduction Message from the CEO Governance Our customers2 8 10 12

We measure our success through a number of key indicators, including employeeengagement, turnover (voluntary attrition), proportion of employees taking advantage ofexible working practices, workplace diversity and workplace safety statistics.

In 2010/11, we employed 10,090 full-time equivalent employees at Optus, our subsidiaries andOptus-owned yes stores. Our workforce is comprised of 91.5 per cent full time employees,

6.1 per cent part time and the small remainder were casuals. Sixty eight per cent of ouremployees are covered by our collective bargaining agreement, the Employee PartnershipAgreement (EPA).

People Metric

Employee engagement75%

76%

Voluntary attrition13.6%

10%

Employees using flexible work practices 57%

58%

Lost time injury rate2.49

3.1

Our peopleOur diverse workforce enables us to meet the demands of our diverse customer base. We work hardto recruit and retain the right people to help us keep pace with the changing needs of our businessand our customers.

Thi involve enring we oer:

A positive workplace culturebased on our values

Reward and recognition

programs that motivate peopleto reach their full potential

Career and individualdevelopment programs thatnurture and grow our talent

Flexible working options thatappeal to a diverse range oftalent

Continuous improvement inoccupational health and safety,and

Health and wellbeing programs.


23/6423Our environment Our community Awards Index22 30 38 48 50Our people



Our culture

Optus has ve entrenchedvalues that are the cornerstoneof our company ChallengerSpirit, Personal Excellence,Teamwork, Customer Focusand Integrity.

To support our values, in 2010/11 wecontinued our journey to become a truecustomer-centric organisation by focusingour people on three key behaviours Accountability, Empowerment andCollaboration. Known as ME WE, ourcultural change program encouragesindividuals to be accountable for theiractions, for teams to collaborate and forour people to be empowered to deliveroutstanding customer experience.

The ME in the ME WE program focuseson recognising everyones individualcontribution and development. The WE isabout how we collaborate and work togetherto achieve our collective goals.

In August 2010, more than 1,600 peopleleaders from across the company tookpart in our ME WE training workshopto understand our culture, our customer

experience strategy, and their role incultural change. The day focused onunderstanding, our customer experiencestrategy, and their role as a leaderin championing this cultural shift inbehaviours and focus on excelling incustomer experience. The day focusedon the cultural change we are seeking toembed across the company, and engagingour leaders to champion this cultural shift.

Along with ME WE, a range of initiativeswere launched including the Optus OnlineJam, which provided Optus people withthe opportunity to contribute ideas forimproving the customer experience.Four hundred and forty suggestions weresubmitted, and all employees were invitedto vote for their favourites. Around 2,500employees 1 in 4 participated, casting7,800 votes. As a result of the Online Jam,Optus is now developing 34 projects toimprove the way we do business.

The ME WE program also supported Back

to the Floor, an initiative which links peoplewho do not deal directly with external

customers in their day-to-day work with ourcustomer-facing employees in call centres,retail stores and out at our customershomes and businesses. In 2010/11, Back tothe Floor consisted of 42 different activities,and over 1,000 employees took part. Ina survey following this initiative, 82 percent of participating employees agreedor strongly agreed they now had a better

under-standing of how their role inuencedthe customer experience.

Your Say Employeesurvey

2010-11

In 2010, 87 per cent of ouremployees took part inYour Say, our annualemployee engagementsurvey. This participation

rate is considered best practice and is thesame gure recorded in the previous yearssurvey.

The outcomes of the 2009 survey fedinto our focus on ve areas in 2010:Customer Focus & Competition, WorkingRelationships, Learning and CareerDevelopment, Reward and Recognition,and Leadership. Around 600 initiativeswere identied in action plans across eachbusiness unit and examples of corporate

level initiatives that were successfullyrolled out include the creation of feedbackchannels such as the Optus Blog andthe live Customer Experience Pulse,facilitating Lunch and Learn sessions forleaders and employees and enhancingour employee Reward and Recognitionprogram Reward Yes. Positive feedbackwas received in the 2010 survey in relationto these initiatives.

The 2010 survey produced an overallengagement score of 75 per cent, onepercentage point down from the yearbefore. Optus result is slightly above theGlobal Telecommunication Norm of 74. TheAustralian National Norm is 76.

Notable results from the survey included:

Increased score across three categories:Customer Focus and Competition (+2);Corporate Social Responsibility (+2); andPerformance Management (+1)

The scores remained neutral across

four categories: Values and Objectives;Immediate Manager/Supervision;

Empowerment and Innovation; and WorkEnvironment

The scores for learning and careerdevelopment and working relationshipsdecreased by 1 point

There was a decline of two points forleadership and reward and recognition.

Drawing on the results of our 2010 Your

Say survey, Optus has developed targetedactions on customer focus, workingrelationships, reward and recognition,learning and career development. Thereare a number of initiatives within these fourcategories. These range from increasing theavailability of Optus online collaborationtools and launching Career Month acrossthe company, to reviewing our employeebenets and improving access to ourproducts, by making more discountsavailable to our people.

Flexible workingarrangements

As a leading Australian employer, Optusunderstands the importance of attractingand retaining the best people. Optusrecognises our people want to create ahealthy balance between their work andexternal responsibilities.

We are committed to developing andmaintaining a workplace and culturewhich encourages exibility and supportsthe diverse nature of our people. Flexibleworking options at Optus include part-timehours, job sharing, telecommuting, familyfriendly provisions and exible leave. In2010/11, 57 per cent of our people wereusing a form of exible work.

We also provide on-site child care at ourSydney site, along with free access to xed

or mobile broadband to help our peopletake advantage of more exible workarrangements.

To add to our offering of exible workinitiatives, in 2011 we introduced PhasedRetirement, an initiative that enablesmature-aged employees to continueparticipating in the workforce andease in to retirement, by reducing thenumber of hours they work (part-timework), or adopting other exible workingarrangements, with the agreement of the

employees manager.



We also refreshed our Career Break Leavepolicy, another exible work option thatallows employees to take extended unpaid

leave for the purposes of balancing their lifeand work needs, whether those needs arefamily related (e.g. caring for elderly familymembers, grandparents leave), for travel,for study, or for other purposes.

Developing our people

Our career and development philosophyencourages individuals to drive andmanage their own career and development,

with Optus providing the necessarysupporting tools and infrastructure.

Our Career Framework uses the 3Ps ofCareer Management Prepare, Plan andPerform, and our career coaches use this

framework to help guide discussions withour people. In determining the best typeof developmental activity, we encouragea holistic approach that ensures anindividuals learning can be directly appliedto their daily role. The most effective way tolearn and develop new skills, knowledge orbehaviour is to apply it on-the-job, with realtime interactions and situations.

Our development philosophy is built uponthe 70/20/10 formula. When selecting a

development activity, individuals considerwhich element or combination (70/20/10)

will provide them with the best solutionto meet their preferred learning style andprovide an opportunity to apply learnings in

their day-to-day role.

Seventy per cent of developmentplanning should include activities thatare Experience based i.e. develop skillsthrough day-to-day activities and specialprojects or assignments. Examplesinclude job shadowing, job rotations orsecondments, eld visits, research projects,or participating in online discussion forumsor wikis.

Twenty per cent of development planningshould include activities that areRelationship based i.e., that involve

Internal poster, announcing Optus Back to the Floor.



building or establishing relationships withsubject matter experts or leadership rolemodels. Examples include mentoring orcoaching relationships, industry networkforums, volunteer work and setting upcommunity of interests.

Ten per cent of development planningshould consider Education based activities

that develop skills, knowledge or behaviourthrough formalised training or education.

Decisions on learning and developmentare discussed formally twice a year withour people, as part of our performance anddevelopment review process.

Optus also has a large number of careerand development initiatives known asMy Career Choices. These are targetedat different levels of professionaldevelopment, to enable our people to

achieve their personal and professionalcareer goals, and include:

Career coaching clinics Interview skills workshops Twice yearly professional development

reviews for all employees

Cross-functional opportunities Formal online and classroom training

initiatives.

On average, an Optus employee undertakes

7.31 hours of training per year. In 2010/11,we offered 88 separate training programs

for employees, with 15 specically targetingleadership and development.

One hundred per cent of our business unitsare analysed for risks relating to corruption.We have in place a combination of toolsto ensure our risks are managed, and tohelp raise awareness and prevent risksrelating to fraud and corruption. These

include online fraud awareness trainingfor managers, requiring them to analysetheir risks and controls, the whistleblowerhotline, extensive internal audit controls,and internet and email risk scans.

Reward and recognition

At Optus, regular employee performancefeedback is delivered through ourPerformance and Development Review

process. This process provides our peoplewith feedback on their achievementsagainst objectives and seeks to measureindividual performance, both at abehavioural and job requirement level.Reviews are held twice a year. Individualsare rewarded for their performance throughannual salary reviews and an annualincentive scheme which is offered to all ourpeople.

We also have a company-wide reward andrecognition program known as Reward

yes. This program recognises greatperformances from our people. The program

culminates in an annual Gala Dinner fornalists.

In addition to our remuneration and rewardprograms, we provide a range of benets toour permanent Optus employees, includingfree or discounted Optus products, PaidParental Leave, Employee AssistancePrograms, exible leave, salary packaging

options, salary continuance insurance anddiscounts from leading brands.

Valuing diversity

In 2010/11, we renewed our Diversitystrategy and began investigating a rangeof initiatives in support.

The Optus Diversity program is committedto supporting the different cultures and

lifestyles of our people by:

Increasing the representation of femalesin senior roles at Optus

Promoting opportunities and a workenvironment that meets the needs ofpeople with a disability

Exploring opportunities to make theOptus work environment more inclusiveand representative of the broadercommunity

Recognising and promoting diversity

activities in all aspects of the communityto build an even more dynamic anddiverse workforce.

Wy i iviy i o?The diversity of our people has

always been our strength atOptus its one of the things thatmake this company such a greatplace to work, but its also smartbusiness. At Optus were a greatreection of our community.Our people come from a wide

variety of backgrounds. Each has their own unique skillsand experiences that we can share and learn from. A diverseworkforce not only opens up a much broader pool of potentialemployees, and drives innovative thinking it also helps usreect our customer base. If we dont look like the communityaround us then we have no chance of seizing the leadership

position.

hw iv i o wkf?Our workplace is made up of over 70 different nationalitiesfrom countries right around the world. Optus people come fromZimbabwe, China, Sri Lanka, Britain, Lebanon and so on. Ouraverage age is 38 years. One third of our workforce is female,however women currently account for only 16 per cent of our

executive. We acknowledge that increasing female participationin senior roles at Optus is one of our key challenges.

W iiiiv o v i wkfiviy i gw?The Optus diversity strategy is about supporting the differentcultures and lifestyles of our people and throughout 2010/11we participated in a wide range of events. We also launcheda phased retirement initiative, ran parental leave seminarsand provided onsite childcare facilities at our head ofcein Macquarie Park. Throughout 2011/12, we will continue toimplement initiatives to support our Diversity strategy andenhance and embrace the diversity of our workforce at Optus.

Vaghan Pal,HR DIRECTORQ&A



In 2010/11 we participated in diversityactivities including the Mardi Gras, a Tasteof Harmony Celebrations, InternationalWomens Day lunches, and Women inMultinationals forums. In the coming yearwe will continue to build on these initiativesto deliver on our Diversity strategycommitments.

In addition to our Diversity strategy, ourpeople, including senior management,participate in regular equal opportunityand anti-discrimination training. Throughsuch activity, along with delivery of ournew diversity strategy, we aim to promotean inclusive workplace culture that issupportive of all forms of diversity.

Health & Safety Ourfocus your wellbeing

The Optus Occupational Health and Safety(OH&S) Management system adopts acontinuous improvement philosophy for allkey elements of the system.

We believe all work-related injuries andillnesses are preventable. As such, we setan objective to achieve zero workplaceinjuries and have interim reduction targetsthat are revised annually to make sure weare on track.

Our health and safety program is led by ourSafety and Environment Leadership Council.Optus is certied to the Australian and NewZealand OH&S Management Standard AS/NZ 4801:2001 and regularly participates ininternal and external audits. Through theseactivities Optus meets the self-insurerlicensing requirements set by Comcare,the Federal Australian GovernmentAgency responsible for workplace safety,rehabilitation and compensation.

Our health and wellbeing initiatives includefamily days, health expos, u vaccinations,our Employee Assistance Program (EAP),our executive medical program, corporatesporting programs, our onsite gym, Takingcare of me seminars, Weight Watchers, andBlood donation program.

CAsE sTuDY:

HARMONY DAYAND A TASTE OFHARMONY

To celebrate the diversity in ourOptus community, Optus celebratedHarmony Day and A Taste of Harmonyin March 2011 at out Macquarie Parkcampus with a host of activitiesincluding a cultural performanceday, Chinese calligraphy workshops,cooking demonstrations and rovinginternational musicians. Employeeswere also invited to create a worldmap depicting their country of originwhile international ags adorned thecampus throughout the week.

Retailers on campus also participatedin the festivities, offering meals fromdifferent countries so that employeescould enjoy the taste as well asthe sights and sounds of diversecultures.

Celebrating or cce Opt 2010 WINNER Martin

seligman Award or Health& Wellbeing

In 2010, we were named the winnerof the Australian Human ResourcesInstitute Martin Seligman Awardfor Health & Wellbeing. The awardrecognises Optus outstandinginitiatives and strategies in promotingthe health and wellbeing of employeesin the workplace.

We use two key measures to trackworkplace injuries: Lost Time InjuryRate and Lost Time Severity Rate.In 2010/11 we reduced our Lost TimeInjury Rate by 19 per cent to achieve arate of 2.49 and we maintained our LostTime Severity Rate of 13.2.

In 2010/11 we also met and improvedall the Safety Rehabilitation and

Compensation Commission Indicatortargets for our Self Insurance Licence.

Our strategy for driving performancein occupational health, safety andwellbeing in 2011/12 will continue toinclude:

Providing visible leadership throughour Safety and EnvironmentLeadership Council

Partnering more closely withbusiness units and Optussubsidiaries

Providing more tools and programsto encourage the health andwellbeing of our people

Continuing to drive our self-insurance licence and meet allconditions and targets

Reviewing and implementing theModel OH&S Act and preparing forlegislative changes.



KEY PERFORMANCE INDICATORS

Priority Indicator unit 07/08 08/09 09/10 10/11

Workorce

Full Time Equivalent Heads People 10,679 9,525 10,394 10,329

By gender

Percentage (%)Male 66 66 66 66

Female 34 34 34 34

By employment type

Percentage (%)Full-time 93 93 93 91.5

Part-time 5 5 6 6.1

Casual 2 2 1 2.3

By age group

Percentage (%)16-29 39 16 24 24

30-49 44 63 63 63

50+ 17 21 13 13

Trnover

Voluntary attrition Percentage (%) 16 14 10 13.6

Male - - - 13.1

Female - - - 14.6



ACHIEVEMENTS IN 2010/11

OCCuPATIONAL HEALTH AND sAFETY

Our Lost Time Injury Rate for 2010/11 is 2.49 comparedto 3.1 for 2009/10 achieving a 19per cent reduction

Our Lost Time Severity Rate for 2010/11 is 13.2 2011which is the same as for 2009/10

Successfully received Occupational Health and SafetyManagement System (OHSMS) certication againstAS/NZS4801

Achieved and bettered Comcare (CI) targets for 2010/11.

HEALTH AND WELL BEING

Under the banner of Taking Care of Me, a range ofhealth seminars were made available including topicssuch as: how to relax and stop stressing, sleep well,work/life balance, healthy eating on the run.

Club Red registration completed in 2010 and blooddonation centres in all states promoted on intranet.Mobile blood donation bus made available at OptusCentre Sydney.

Our Health & Benets Expos and sporting programsnationally continued in 2010/11. The Optus Family Daywas reintroduced.

EMPLOYMENT MANAGEMENT ARRANGEMENTs

We reviewed our employment offering with the aim toensure our overall employee experience is comparablewith best practice.

EMPLOYEE ENGAGEMENT

Optus engagement score remained steady, at onepercentage point below the 2010 score.

TARGETS FOR 2011/12

OCCuPATIONAL HEALTH AND sAFETY

Continue to reduce our Lost Time Injury Rate for 2011-12

Continue to reduce our Lost Time Severity Rate for 2011-12

Maintain AS/NZS4801 certication and OHS Accreditationthrough our OHS auditing programs

Model OHS Act Planning and Self Insurance Licencemaintenance.

HEALTH AND WELL BEING

Expand Taking Care of Me seminars across multiplesites.

Continue Club Red and blood donations program

nationally.

Continue to run Health & Benets Expos and sportingprograms and Optus Family Day.

EMPLOYMENT MANAGEMENT ARRANGEMENTs

Continue to review our employee experience offeringsthroughout 2011/12 and plan for Employee PartnershipAgreement renewal in 2012.

EMPLOYEE ENGAGEMENT

Achieve a 2 percentage point increase in employeeengagement.



Operating more efciently

In 2010/11, we focused on developing systems and processes for improved data capturethat will allow us to make future reductions in electricity consumption, a key aspect of ourenvironmental footprint, and our largest source of greenhouse gas emissions.

There were some successful initiatives that reduced our energy use, but overall electricity

consumption increased from 292,468 MWH in 2008/9 to 317,101MWh in 2009/10. Figures forboth years include estimated amounts for some un-metered consumption.

We report energy consumption and greenhouse gas production under the Australias NationalEnergy and Greenhouse Reporting Act 2007 (Cth). The reporting period under the Act runs fromJuly to June. At the time of writing, data collation for the period July 2010 to June 2011 had notyet been completed.

Electricity consumption at Optus increases as we expand our networks, and as trafc throughour data centres grows. In recent years, we have developed systems that give us moreaccurate consumption gures on most elements of our network, however there are furtherimprovements we need to undertake to gain improved management insight in our energyconsumption.

In 2010/11 we began to focus on further rening these systems. For example, we can nowtrack electricity use within telephone exchanges, but would like to be able to pinpoint use inindividual areas and equipment within each exchange. This detailed data would, for example,enable us to target air conditioning at high heat generating locations within the exchange,reducing the need for general cooling. The 2010/11 year saw the continued rollout of two energyefciency initiatives at a number of Optus exchanges around Australia:

In 14 exchanges, changes in the way air conditioning units work has allowed us toincrease the temperature setting from 21 to 23 degrees celsius. In these exchanges,we installed exible piping to ensure chilled air from the air conditioning system wasdelivered directly to the equipment it was designed to keep cool. Previously, the chilled

air was blown out at the top of the exchange building although the equipment was at the

Our environmentWe recognise the environmental impact we make due to the continued growth and expansion ofour networks.

Our environmental policy andmanagement systems ensurewe control and manage theseimpacts with our key areas of focusincluding energy use and associatedemissions, material use and waste,

and supply chain management.

The Optus Environmental Policycommits us to:

Establishing and maintainingthe necessary processesand practices to comply withenvironmental laws

Minimising pollution of theenvironment from our operations

Minimising the waste weproduce.

As a telecommunications company,we understand the environmentalbenets that telecommunicationstechnologies can deliver. AllOptus staff are encouraged to usetelepresence and videoconferencefacilities rather than travelto meetings and other workappointments.

Pictured above: Minimising impact on Littoral rainforest by co-locating Optus cable with existing services.


31/6431Our people Our community Awards Index22 30 38 48 50Our environment

bottom. The exible piping was trialled at an exchange in the

Sydney suburb of Riverwood in 2009/10, resulting in an annualsaving of $AUD180,000. The rollout to other exchanges in 2010/11delivered further savings. With more detailed metering data inthese exchanges we will be able to determine how substantialthe savings are likely to be. The level of savings will differ fromone exchange to another, due to different physical and climaticconditions.

In another initiative, 1 of the 2 air conditioning units in more than3,000 mobile phone base stations has been replaced with anenergy efcient fan. A trial in 2008/09 in Sydney demonstratedsavings of 30 per cent in electricity consumption, with no negative

impact on base station operations. Fans were installed in otherbase stations in 2009/10 and 2010/11.

In 2010/11, there were a number of energy efciency initiatives at ourcorporate ofces.

We increased temperature set points at our communications anduninterrupted power supply (UPS) rooms at our head ofce. OurUPS systems are continuously in use and as they generate muchheat, constant air conditioning is required. The UPS rooms are notoccupied by staff, which means the temperature can be higher thanwould be comfortable for human occupation.

We also rationalised and replaced the eet of photocopiers andprinters at our ofces nationally. A reduced number of devices and

installation of new, more efcient copiers now consume 55% less

energy, resulting in energy cost savings of $AUD116,000 a year.

All of these and other projects together generated energy savingsof 19,202GJ from July 2009 to June 2010.

Greenhoe ga emiion

Optus has made a commitment to improve energy efciency by 20per cent by 2015, compared to 2007/8 when measured on a tonnesof CO2 per million dollar revenue basis. This metric takes account ofthe fact our operations will continue to expand in the coming years.

Year scope 1&2t/CO2 eq $AuDMRevene Metric

2007/08 301,850 7,475 40.38

2008/09 277,848 7,760 35.81

2009/10 310,130 8,949 34.66

2014/15 (target of20% improvement inenergy efciency)

32.31

Our total greenhouse gas emissions for 2009/10 were 310,130 tonnescarbon dioxide equivalent (CO2-e), up from 277,848 tonnes the year

Focus on energy management

W g fo i i g

vi i f ii?Although we have been managingenergy usage in a variety of ways,this has not been coordinatedacross all services, nor across alllocations we service. Because we

work in such diverse environments, often we need to developlocal solutions to local issues.

W iiiiv i o ivig i w fi?We are always looking for ways of reducing our footprint andreducing our exposure to climate change, from best practice

waste management at our head ofce at Macquarie Park, toreplacing over 3,000 air conditioners with energy efcientfans in mobile phone base stations. Recently, we brought allthe energy using parts of the business together to develop amore coordinated and holistic strategy for energy savings. Ourprocurement, engineering design and construction, IT, andoperations and maintenance teams have all been involved.With greater visibility of activities, we are in a better positionto prioritise actions and implement improved standards that

will reduce long-term operational costs. For example, wenow analyse our equipment purchases based on whole oflife costs and not just the purchase price. This initiative hasalready delivered savings at Optus. The potential for furtherimprovements is enormous.

We have considered the physical impact on our infrastructurein the event of rapid climate change and increased incidence ofextreme weather events. We have also assessed the potentialimpact of a carbon price on our business, based on a number ofpricing scenarios.

hw i o gig iv i vif?Telecommunications can help individuals reduce their carbonfootprint. Broadband teleconferencing provides a cheap effectivealternative to travel by car or plane. Mobile communicationscan be used to track goods in stock. This means that delivery

vehicles can be used more efciently. There are many exampleswhere the services we provide make it easier and more efcientfor people to manage their lives.

Another way we encourage companies to improve theirenvironmental performance is through development of our supplychain strategy. We expect good environmental standards to bemaintained by the organisations which provide us with goods andservices.

sam Bric,NATIONAL FACILITIES MANAGERQ&A



before. These gures combine Scope 1and 2 emissions, as dened by AustraliasNational Energy and Greenhouse ReportingAct 2007 methodology. The only scope 3emissions we measure are those associatedwith air travel. In 2009/10, 6,971 tonnesCO2-e were generated by our air miles.

We also purchased offsets equivalent to 50per cent of the greenhouse gas emissionsproduced at our corporate ofces nationally,due to electricity use through the purchaseof Green Power and validated offsetcerticates.

Doing more with le wate

As an employer of over 10,000 peoplenationally, the majority of materials usedare within our corporate ofces. This is

where we can have the greatest control andimpact by minimising materials used andmaximising the amount of recycling.

Optus corporate paper consumptioncontinues to signicantly decrease, andwe are now working with our suppliers toaccurately track the amount of paper webuy and recycle.

In the year to March 2011, we consumed167.22 tonnes of paper and cardboard waste

in our head ofce. We have recycling inplace at all of our corporate ofces.At our corporate headquarters, our overall

diversion rate for general waste, comingledwaste and paper and cardboard was 92 percent. As our other sites are leased, andwaste is managed as part of the tenancy,we have not been able to monitor recyclingrates.

We are involved in printer and tonerrecycling and provide cartridge recycling atall Optus sites. The total number of toneritems returned for recycling in 2010/11 was3,507, with a total weight of just over 3.4tonnes. We have streamlined the supplychain management processes for printerand toner cartridges to eliminate doublecounting and unnecessary overstocking.

Ofce equipment is reused rather thansent to landll. All e-waste, such ascomputers, monitors and printers, is

collected and recycled. All unusable itemsare dismantled, the components separatedand passed onto organisations who reuseor recycle them. Over the year, 1,623 itemsweighing 36.58 tonnes were diverted fromlandll. Through major facility upgrades,almost 270 tonnes of industrial batterieshave been recycled.

Integrated waste disposal systems areavailable in all ofce kitchen and commonareas at our head ofce. These facilities

provide separate bins for recyclables, paperand general waste which is diverted to anAdvanced Waste Treatment Facility.

saving water

Optus head ofce in Macquarie Park,New South Wales where 6,000 staff areemployed utilises harvested rainwater.From March 2010 to February 2011 we useda total of 142,732 kilolitres of water. Of this,

19,946 kilolitres of harvested rainwater(around 14%) was used for toilet ushingand landscape watering. Data gathering ofour water use for all other Optus sites hasnot been possible as water use is paid forthrough the cost of renting the premisesand is rarely separately metered.

stainable tranport

The 2007 relocation of Optus staff inSydney from nine sites across Sydney tothe new campus at Macquarie Park saw thedevelopment of a Sustainable TransportStrategy for the company.

The strategy has been successful, withmore than 37 per cent of employees atMacquarie Park getting to and from workby public transport, walking or cycling.According to gures from the 2006 Census,this compares with around 10 per cent ofall other employees in the local area. Ourride-sharing program now has 700 userswho commit to sharing their ride to work,

reducing trafc congestion. Four per centof our people now get to work by walking orriding their bikes.

Optus Employee bus part of our Sustainable Transport Strategy.


33/6433Our people Our community Awards Index22 30 38 48 50Our environment

In 2010/11, the strategy was updatedfollowing a major review of transport to andfrom Optus sites around the country.In Sydney, we:

Launched a new free employee shuttlebus service to Epping from Macquarie

Park at peak hours Introduced a new iPhone app listing train

and bus timetables for Optus employeetransport

Built new custom designed terminusfacilities for public transport users, and

Introduced dedicated lanes for cyclistswithin the campus.

Elsewhere in Australia, transportinformation kiosks were installed at manyof our sites.

Bine tranport

We operate 534 vehicles across Australia.The eet is made up of 28 per cent dieselvehicles and 72per cent petrol drivenvehicles.

Upcoming initiatives under considerationinclude:

Rewriting the vehicle purchase policy torequire the use of diesel vehicles wherepracticable

The use of hybrid and electric vehicles

Introducing real-time web reporting tocapture data including emissions andfuel efciency.

Operations

Biodiverity and vegetationmanagement

Our greatest impact on biodiversity and landis during the installation and maintenanceof network facilities, such as bre-opticcables, pits, manholes, and radio andsatellite dishes. Each location is carefullyassessed for network suitability andconstruction feasibility against potentialenvironmental impacts before work starts.

When building new infrastructure, we avoidas far as practicable areas of environmentalsignicance, as dened by legislation, aswell as areas with a high biodiversity value.Optus typically selects sites which havebeen previously cleared or disturbed suchas existing services corridors.

If a facility does have to be built in anenvironmentally signicant area, we carryout detailed environmental assessmentsand obtain the relevant planning consentsor permits before work begins. The proposalmay be modied depending on the level ofsensitivity and outcome from consultation

with the relevant authorities and landowners. In some cases, we use technologiessuch as directional drilling to minimiseabove ground impacts on vegetation andhabitats.

Once installed, our facilities typically have

a negligible ongoing impact on protectedareas or areas of high biodiversity value.They do not signicantly affect thebiodiversity value of water bodies andrelated habitats as a result of disturbancesof water and runoff.

The Optus Environmental ManagementSystem provides a series of Action Plans formanaging stormwater, de-watering of worksites, soil erosion and sediment control.

DriveWalk

Cycle

GoGet

CarShare

Rideshare

Publicbus

Epping toChatswood

Rail Line

Taxi

2+

Motorbikeor scoot

OptusExpress

Bus

993

Cycle Rideshare

Publicbus

Epping toChatswood

Rail Line

Optus transport wheel illustratingOptus Macquarie Park employees the

travel options at their disposal.



CAsE sTuDY:

CAPE BYRONCONSERVATIONAREA NSW

Some Optus assets have been built inareas which were not environmentallyprotected at the time of constructionbut which were subsequently covered byprotection orders.

In July to August 2010, Optusconstructed 1 kilometre of undergroundbre optic cable in the environmentallysignicant Cape Byron StateConservation Area in Byron Bay NSW.The new cable was needed to supplywireless broadband and enhanced 3G

mobile services in Byron Bay, to meetlocal community needs.

Optus already had an existing mobileequipment shelter located on councilland which was completely surroundedby the Cape Byron State ConservationArea. There were very limited options

for Optus to connect bre to the existingmobile equipment without traversingthe protected region.

The proposed route crossed areas oflittoral rainforest, which is recognisedas an endangered ecological community

at the national and state levels. Thearea also contains known habitats forseveral ora and fauna species listedas threatened under the ThreatenedSpecies Conservation Act 1995 (NSW).

Optus conducted several sitemeetings with the then Department

of Environment, Climate Change andWater to ensure selection of cablealignment with the least environmentalimpact. The Department approved planswith a number of conditions.

Construction was subject to rigorous

environmental risk assessments andmanagement plans overseen by Optus.Optus engaged a qualied ecologist tomonitor the project during construction.The project was completed withminimal impact on biodiversity, despiteits sensitive location.

CAsE sTuDY:

AUSTRALIANWILDLIFECONSERVANCY(AWC)

Since 2007, Optus and AWC havejoined forces to help save Australiasthreatened wildlife. Together we aredelivering practical conservationoutcomes where they really count in

the eld. Projects that have alreadybeneted under our partnership include:

Saving threatened Purple-crownedFairy-wrens in the Kimberley

Protecting endangered Yellow-footedRock-wallabies in the FlindersRanges

Supporting AWCs acquisition andcreation of the largest private reservein Australia at Kalamurina WildlifeSanctuary

Helping AWC to save the threatened

wildlife of Cape York at PiccaninnyPlains.

Optus staff are also supporting theAWC partnership through workplacegiving and peer-to-peer fundraisinginitiatives (see below) which aremaking a difference to the future ofAustralias unique wildlife. In the pastyear alone, these staff initiatives haveraised over $AUD81,250 to help AWCsave Australias threatened wildlife andhave generated signicant community

awareness about the need forconservation.

The attention of our partnership is nowfocused on addressing the rapid declineof small mammals in northern Australiaand, specically, on helping to protectthe threatened wildlife of the Gulf ofCarpentaria at AWCs Pungalina-SevenEmu Wildlife Sanctuary

Packaging naphot

Consumer packaging sent forrecycling:

57,900kgSent to landll:

4,900kgNon-recyclable packaging old:Plastic Type 4 (LDPE plastic bags):

3,175kgPlastic Type 6 (PS):

2,368kgPlastic Type 7 (Other):

60,065kgTotal non-recyclable:

65,608kg

{18.57%}of total packaging sold

mrking of individul prottd plnt to nur thy

r not indvrtntly diturbd during ontrution.


35/6435Our people Our community Awards Index22 30 38 48 50

Environmental impactsof products and services

National Packaging Covenant

Optus is a signatory to the NationalPackaging Covenant (NPC), a jointGovernment-industry initiative to reduce

the environmental impact of packaging.This commits us to an annual independentassessment of our approach.

The key packaging materials used in Optusbranded products are:

Cardboard Cellophane wrap Styrofoam PET blister packs Polypropylene rigid plastic DVD style

cases Rigid plastic to house SIM cards.

As a signatory to the covenant, Optusreports on its use of packaging each yearand that of our subsidiaries. Statistics arecollected for the year from July 1 to June 30.

Optus and Virgin branded productsproduced 353.24 tonnes of packagingmaterial in the year to June 30 2010. This isa signicant increase from 131.137 tonnes in

2009. The 2010 results however include datafor a broader range of products previouslyexcluded in NPC reporting. The additionaldata covered wholesale products andhardware such as modems and digital

Documents

Optus CR Report 2011 Online 1211