KPG Introduction to ASEAN Posts

1
A strategic opportunity to Protectand Grow
Volumes, Revenue and Market sharein the
international express market.
2
Who is KPG?
Introduction

• Founding Partners
• KPG was formed in Jul 2002
• A collective name.

3
Our VisionMission
To be the leading express and parcels network
primarily in the Asia Pacific Region, providing
our customers with reliable and innovative high
value services.
4
EMS perceived as faster postal service NOT a
Courier
Target
Premium Price
Competitive Price
Source Australia Post Commissioned Research 2004
5
What does the future hold for us in this market
segment?
Note Chart for illustrative purposes only Not
to scale
Total Market
Volume
KPG
ContinueBusiness As Usual

• Total international express market is growing
  particularly Asia/Pac

• Our market share has declined despite market
  growth

• Market expected to continue to grow

• Without changing what we do can expect
  continued decline

• As part of KPG you can arrest the decline and
  take back share

6
Our Strength
261 million
We deliver to Delivery Points in
Region Which combine Post code
Combinations We operate
Retail Locations
8 billion
142,000
7
Our Opportunity What does the Research tell us?

• Competitors enjoy higher margins for SME low
  volume users
• Research revealed opportunity for growth if Posts
  offer
• Pick-up options
• Guaranteed date-certain delivery
• Value for money competitive pricing
• Item tracking in-transit and proof of delivery

KPG makes these features a reality
Source Australia Post Commissioned Research 2004
8
How our networks compare on an integrated
Customer experience
Inconsistent Services No Guarantee
Reliability Issues
Seamless In-Transit Tracked Fast Tracked
Delivery Guaranteed Reliable

• Date-Certain Delivery at Postcode Level
• Posts back up delivery with Guarantee
• Enhanced Reliability
• Operated as one integrated network

9
A Guaranteed Approach

• Our customers enjoy
• Consistent reliability - GUARANTEED
• Full peace of mind through certainty of when
  their package will arrive to confirmation of when
  it has been delivered.
• Customer visibility at point of sale of expected
  delivery date for the whole of country
• Dynamically generated expected delivery date
  managing customer expectations
• User friendly access to guarantee calculator
• Visibility of planned transit
• In the rare event of service delay
• Full money back guarantee within 7 working days
  of making claim.

Will your customers find these features
attractive?
10
End to End Service Operations Model
Our Point of Difference
KPG
UPU
11
Postcode Pairs Database supports Delivery Date
Calculator
1. From
2. To
3. Date
12
Postcode Pairs Database supports Delivery Date
Calculator
13
KPG Network A strategy to win customers
High Network Performance
Reliable Service
Peace of Mind
High Track and Trace
Visibility
14

• Current Status
• - KPG launched Day Certain Guaranteed EMS Service
  since July 2005.
• - KPG members have been enjoying further growth
  after the launch.
• KPG has been continuously improving each
  networks and operations on a weekly basis.
• Next Step
• - KPG wishes to expand this network.
• - KPG wishes to start dialogue with other posts
  which are interested in our projects.

15
The Benefits of KPG
Grow Market Share
Share IT capability
Grow OutboundRevenue
Other Benefits
Share operational knowledge/capability through
frequent diagnostics Optimise Network Share
market intelligence Enhanced reputation
GrowInbound Revenue
16
Thank youShuji OBUChairman of Board of
Directors KPG