Cape Town The Reality of our Investment Experience

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Cape Town The Reality of our Investment
Experience

• Steve Rescorla Customer Service
  Director

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Services by country
UK 646 stores Retail Online Insurance Ongoing
Mobile Services Fixed line Broadband
Sweden 78 Stores Retail Online Insurance Ongoing
Ireland 43 Stores Retail Insurance Ongoing Fixed
line
The Netherlands 143 Stores Retail Online Insurance
Ongoing
Germany 99 Stores Retail Online Insurance Mobil
e Services Fixed line
Belgium 56 Stores Retail Insurance Ongoing Fixed
line
France 214 Stores Retail Online Insurance Ongoing
Mobile Services Fixed line
Switzerland 46 Stores Retail Insurance Ongoing Fi
xed line
Spain 322 Stores Retail Online Insurance Ongoi
ng Fixed line
Portugal 65 Stores Retail Insurance
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CPWs fixed line operations

• Acquired Opal Telecom in 2002 - Asset-lite
  network providing voice services to businesses
• TalkTalk Telecom Ltd
• A UK subsidiary of the Carphone Warehouse Group
  plc providing fixed line telephony and internet
  service to UK and European customers
• Launched in 2003 2.4m CPS customers
• Leveraging Opal network infrastructure and CPWs
  retail base
• Acquisition of Onetel and Tele2 (UK) combines two
  main challengers to BT into a significant
  competitive force

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Business Challenge

• Mass market growth 4million UK homes predicted
  to switch to broadband in 2005 bringing UK
  subscriber base to 8.8m in 2005 and 11m by end
  2006 (NMA 25/08/05).
• Falling costs and bundling of services (voice and
  broadband).
• 3 UK contact centres
• Warrington
• Northampton
• Preston
• CPW are committed to the continued growth of UK
  operations
• Next phase of expansion broadband growth and
  the creation of additional capacity in
  preparation for LLU.
• As part of a complimentary strategy for growth -
  We needed a new location to deliver great
  customer service.

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South Africa Contact Centres

• Creation of two new facilities
• Geographically diverse within an exciting new
  nation
• Positive reaction from our UK workforce
• Outsourced site in Johannesburg
• Went live on Monday 20th February with our first
  15 advisors.
• Great initial feedback on quality and commitment
• Plans to scale to 200 by 2007

• Captive site in Cape Town, Stadium on Main in
  Claremont
• Went live on Monday 15th May 2006 with first 15
  advisors.
• Recruitment activity already underway and going
  well
• Capacity to scale to 400 CSAs by 2007

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Our Image in SA An Employer of Choice

• We want our people to flourish
• Supporting diversity in the new South Africa
• Competitive salaries and bonuses
• Wide range of employee benefits
• Great working benefits
• Genuine Career Progression
• Involved and Working for the local community
• Long term vision for growth

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The Story So Far

• What's worked well
• Location, facilities and transport.
• Transition team and their housing and support
  package.
• Recruitment and training.
• Advisors appetite for knowledge and understanding
  our business and propositions question time is
  intense!
• Call quality scores and UK customer reaction.
• The business case project has delivered within
  budget and timeline.
• Challenges
• Telecommunications supply and installation.
• Clarity on grants and incentives.
• Currency fluctuations R10.5 R12.4 from January
  to May.
• Meeting demand and maintaining the initial high
  standards as we ramp up.