POL00027573
POL00027573
Post Office Limited — Strictly Confidential
POLB 13(8")
POLB 13/56-13/58
POST OFFICE LIMITED
(Company no. 2154540)
(the ‘Company’)
Minutes of a Board meeting held on 9" July 2013
held by conference call
Present:
Alice Perkins Chairman
Neil McCausland Senior Independent Director
Tim Franklin Non-Executive Director
Virginia Holmes. Non-Executive Director
Alasdair Marnoch Non-Executive Director
Susannah Storey Non-Executive Director
Paula Vennells Chief Executive Officer
In Attendance:
Alwen Lyons Company Secretary
Mark Davies Communications Director
Sue Barton Strategy Director
Kevin Gilliland Network and Sales Director
POLB 13/56 INTRODUCTION
{a) A quorum being present, the Chairman opened the meeting.
POLB 13/57 2013/20 STRATEGIC PLAN — CURRENT STATUS
(a) Sue Barton reported to the Board that after further negotiations it
was clear that the NFSP would not support a mandated approach
to conversion. She explained the current discussions taking place,
which sought to secure NFSP support for a mandated exit
approach.
(b) This scenario, a semi-compulsory approach could deliver the same
outcome as the strategic plan albeit at a higher cost.
The Mandated Exit comprised, incentive conversion with enhanced
compensation and short term protection of Core Tier Payment, but
with a ‘cliff where conversion becomes mandatory towards the end
of 15/16
Sue Barton explained that comparing the profile of the two options,
(c) highlights a smail shortfall in the number of conversions through to
April 2018, however the Business believed this could be addressed
through network expansion activity.
POL00027573
POL00027573
Post Office Limited — Strictly Confidential
(d) The Board asked for a summary page to explain the mandated exit
ACTION: approach and its effect on investment cost and timing. This
Sue Barton summary is shows as An appendix to these minutes.
(e) The Board agreed that the Business should present two
alternatives to the Secretary of State and the Minister, at their
meeting on the 11" July.
1. The preferred Board option as laid out in the strategic plan,
with enhanced compensation.
2. A second approach of mandatory exit including the ‘carrot
and cliff for conversion as discussed.
The presentation should be as short as possible but with two slides
articulating the different outcome for cost and timing and stressing
the need for a solution which enables the Transformation to be
completed at pace, because of the rapid changes in the market.
POLB 13/58 CLOSE
There being no further business the meeting was closed