NFSP00000191
NFSP00000191
PRESENTATION TO
NATIONAL FEDERATION OF
SUBPOSTMASTERS
EXECUTIVE COMMITTEE
STUART SWEETMAN
DAVID MILLER
11 JUNE 1999
Slide1
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TOPICS
¢ Horizon history
¢Options faced with
¢The deal and potential
impact
What now?
Slide 2
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HISTORY
° 1993 Anti-Act Lobby
* Joint Feasibility Study for BA Card
1994
¢ Procurement 1994/1996 - Contract
signed May 1996
¢ Original Plan Trial 1997. National
rollout 1997/1998
Slide 3
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HISTORY
° Many delays - Govt. Review Autumn
1998
¢ Concluded Programme was
deliverable but restructured deal with
ICL needed. ICL/POCL agreed. BA
didn’t
° Negotiations continued past
Christmas until May
Slide 4
Option
A
BA payment
card
B1.2
Smartcard
Benefit payment
through POCL
account
B3
Automation
without payment
card
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THE OPTIONS
BA Contract
Terms
To end 2007/08
Floor to end
2007/08
To end 2004/05
Floor to end
2002/03
To end 2004/05
Floor to end
2002/03
Pathway
Contract Terms
To end 2009/10
To end 2009/10
New prices
To end 2004/05
Slide 5
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AEE ee ee
THE OPTIONS
Option BA Contract Pathway
Terms Contract Terms
B3
(with funding) To end 2004/05 To end 2004/05
Automation Floor to end
without payment 2002/03
card
Cc
Termination To end 2002/03 N/A
Floor to end
2000/01
Slide 6
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KEY ELEMENTS
*Compulsory ACT from 2003 - over 2 years
¢£1bn contract to Pathway
*No longer PFI
* Contract to run to March 2005
* Automation of existing products, future product
development on time and materials basis
e Automated network
°“Hope of Ministers that the Post Office will be
successful in retaining and winning (Government)
business on merit”
Slide 7
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SIGNING THE DEAL
Board meeting held Sunday 23 May
Signing of agreement dependant on;
¢ Post Office allowed to sell £480m of
investments
°Profit and EFL targets adjusted for this £480m
¢ Proposed white paper freedoms to be
maintained
¢ Option will lead to deterioration in the
financial position of the Post Office
Slide 8
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mtn Corporate Plan profit after interest & before tax
stan pact of 83 (exc. £480m fending}
Revised Profit alter interest & after tax
100 joe nas
4500)
(200)
(300)
1400}
Corporate Plan profit after interest & before tax 3t 32 50 70 78 56 145 169 202 230
impact of B3 (exc. £480m funding) (107) (4) (198) (158) (183) (214) (578} (647) (364) (264)
Revised Profit after interest & after tax (76) (39) (448) (86) (75) (158) (433) (478) {362} (34)
Slide 9
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AEE
HORIZON WORKING GROUP
Terms of Reference
e to oversee negotiations
° to contribute to problem solving
° assist in maximising commercial
potential
Slide 10
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HORIZON WORKING GROUP
Membership
DTI
Ian McCartney
Frank Doran
Geoff Moore
David Siddick
Isobel Anderson
CWU
Dereck Hodgson
Roger Darlington
POCL
Stuart Sweetman
Dave Miller
NFSP
Colin Baker
John Peberdy
CMA
Terry Deagan
Tony Harris
Slide 11
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EE a
NEW VISION
Key Enablers: Network
Smartcards
Trusted Brand
Slide 12
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EEE, Se ee
NEED TO FIGHT
¢ Understand BAs plan for ACT 2003/2005
e Understand banks key drivers to accept this
work
¢ Understand who pays i.e. Govt Consumer
* Understand impact on PO Network -
viability threat of all types of outlets
¢ Plan campaign together and co-ordinate
actions
Slide 13