UKGI00001439
UKG100001439
@® Shareholder
Executive
HM Government
Post Office Limited (“POL”)
Quarterly Review
August 2012
RESTRICTED — POLICY & COMMERCIAL
UKGI00001439
UKG100001439
RESTRICTED — POLICY & COMMERCIAL
POL Quarterly Review — Current Themes
NETWORK
TRANSFORMATION
POL must introduce
4,000 new “Main” POs
and 2,000 PO Locals by
March 2015
CROWN STRATEGY
POL must bring its
network of Crown POs
to break-even by March
2015
FRONT OFFICE FOR
GOVERNMENT
POL must deliver
£100m new HMG
services revenues by
March 2015
FINANCIAL
SERVICES
A range of initiatives to
grow in this market
Management remain confident that the Company is on track to meet its post office conversion targets for 2012/13 and future years
— >2,000 visits to post offices have already taken place, with the first on-site conversions expected to commence in September
Currently negotiating a MoU with Consumer Focus, who will monitor a community dialogue process for off-site relocations”
— Management have assured us that the risk of this delaying the implementation of the NTP is low
ShEx has an active dialogue with POL in relation to the NTP and, as the programme progresses, this will develop further
including:
— Monitoring the possible impacts of the NTP on POL’s mutualisation process and its stakeholders; and
Pol TS developing a new Strategy to eliminate Crown losses of CE8Om pa (RN pay deat an
rethink)
— Five key areas: additional income; product renewals/retentions; lower staff cost; property savings; targeted franchising
Currently downside risk on new income growth with some (probably lesser) upside potential around property
— Contribution from income growth of c£20m builds on Bank of Ireland pricing renegotiation but may rely on too much volume growth
mn POL-iS- reviewing. its. property. portfolio.and.is.in.touch.with.the.VOA (after.the last quarterly. review).—.c£4m.saving-may- be.pessimistic.
POL is currently working on a number of major initiatives to meet its strategic plan revenue growth forecast:
— DVLA: c.£60m pa framework tender in advanced stages (currently c.£30m pa) with announcement expected in September; open to
OGDs
— Identity Assurance: Result of first Cabinet Office digital delivery tender, IDA for Universal Credit, expected mid-September
— LA Pathfinders: Programme run with 25 LAs has had some success but management believe that the LA opportunity is currently limited
— Assisted Digital: Active dialogue with Cabinet Office regarding assisted digital; DVLA may look to launch a procurement soon
-— POCA/ Universal Credit: Uncertainty around POCA given Universal Credit developments; DWP delaying making decision on way
forward
New. business.development capability, led by a new.sales.director.and.a.team.of.proposition developers. /.relationship.managers.
On SAiigisst/ Qing igne dlasetywctmb@tttw ithpB oft wihit movitiapsres thes énietingng\is tr ubtueenimtn a Sdrlatesalvodntractual
relationship
— New terms include: more favourable commissions (up to £20m pa higher net income); an extension by 3 years to 2023; stronger
termination rights; a commitment from Bol to a fixed marketing budget; and a commitment from POL to improve its sales capabilities
POL is also developing pilots (expected launch in October), for budgeting, standard, and premium transactional bank accounts
— Critical capability for POL to develop, given the role these may play in relation to securing Universal Credit work
Shareholder
Executive
HM Government
(1) Consumer Focus also need to be made aware of on-site conversions although they will be no community dialogue process in relation to these
UKGI00001439
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POL Quarterly Review — Current Themes (conta)
OTHER
COMMERCIAL
DEVELOPMENTS
STRATEGY
PLANNING AND
“KPI DASHBOARD”
MUTUALISATION
HMG’s consultation
response has been
published. Must now
build consensus around
POL’s purpose, define
financial stability and
foster cultural change
BOARD AND
REMUNERATION
POL’s Board is nearly
complete and pay
discussions are in
progress
Management continue to progress a number of strategic initiatives that formed part of the 2010 plan
— New telephony contract with Fujitsu enables POL to offer mobile (and potentially IPTV); sim-only offer expected to launch shortly
— Competing product to Collect+ (service from Yodel and PayPoint), in collaboration with Royal Mail, scheduled to launch in 2013/14
— Arange of IT programmes, including improved management information reporting and an open-architecture ePOS system
POL is expected to initiate the development phase for its new strategic plan in September
— ShEx will work closely with management, to ensure POL is developing a credible plan aligned to the needs of the Spending Review and
State Aid processes (e.g. outstanding NTP and Crown deliverables, and assessing alternative approaches to targeting funding)
As discussed in the last review, the ShEx team has also been working with management to develop a series of “Dashboards”.
Appendix 2 sets out the Business Scorecard and Appendix 3 an example of an underlying programme dashboard (for NTP)
The Government’s 4 July consultation response received a broadly positive reception from stakeholders
— However some concerns were also raised following publication, including: the need for POL to be financially sustainable; the balance of
representation in a mutual POL’s membership; and the lack of a firm mutualisation roadmap
BIS Select Committee’s July report on the Network Transformation Programme (“NTP”) echoed similar concerns
— NTP may impact the ownership-mix across POL’s network, with implications for an “appropriate” mutualisation model
— Italso called for a “clear road-map for change”
The ShEx team is engaging with POL on next steps, with a first meeting of the POL Stakeholder Forum expected in September
— This will seek to define POL’s “Public Benefit Purpose” and will also engage stakeholders’ concerns on other workstreams (e.g.
governance, financial stability) being progressed over the summer.
POL is currently appointing the final non-Executive Director to its Board
— acandidate with financial services experience has been identified (via ShEx - he has recently been appointed to Land Registry)
— He is meeting ShEx officials on 16 August, following which we hope to recommend his appointment to Ministers.
We are also developing the executive remuneration framework — discussions focus on quantum with broad agreement on metrics
— Base pay: Norman Lamb has written to POL’s Chair suggesting this be held while execs demonstrate a track record post-independence
— LTIP: Metrics for POL MD's current LTIP are being changed from RM ones to POL ones. Discussions continue over LTIP from 2012.
— STIP: Discussions over potential payouts for 2012 continue.
Shareholder
Executive
HM Government
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RESTRICTED — POLICY & COMMERCIAL
POL Quarterly Review — Update on Current Trading
YTD % YTD % 201112 2012/13 2013/14
Budget Variance Prior Year Variance FY Actual FY Budget _FY Forecast
Mails & Retail 92.2 8.5% 93.2 7.3% 387.5 403.8 407.2
Financial Services 68.1 (5.2%) 63.4 1.7% 261.5 274.7 262.4
Government Services 36.1 0.3% 36.0 0.4% 135.7 139.9 151.7
Telephony 14.2 0.3% 10.3 8.5% 414 45.7 53.7
Other 83 20.7% 92 8.8% 39.3 33.8 40.2
POL Net Income 215.8 2.8% 212.3 4.6% 865.3 897.9 915.3
General
+ Year to date Net Income performance is currently tracking c.3 per cent. ahead of budget for the year to June 2012 (i.e. first three months) and c.5 per cent. ahead of prior year
+ The main driver of performance compared to both budget and prior year has been the strong results in Mail & Retail and Other (i.e. High Value Mail, Cash in Transit and “Swindon
Stores”). Telephony has performed broadly in line with budget, however it is performing much stronger than prior year
Mails & Retail (£7.8m ahead of budget)
+ ¢.50 per cent. of the outperformance to budget was driven by 1st and 2nd Class stamps, which benefitted from the April price increases as customers “stockpiled”. This is expected
to unwind during the course of the year, with management expecting the main impact to be seen in the run up to Christmas
+ Labels, Special Delivery and Parcels also benefitted from higher than expected volumes, as did retail which experienced a higher than normal number of Lottery rollovers during the
period and strong demand for Jubilee and Olympic collectibles
Financial Services (£3.6m behind budget)
+ The delay to the signing of Project Eagle has been the main contributor to the underperformance of Financial Services compared to budget, although with this now signed, Bol will be
making a settlement payment to POL which is expected to make up much of the year-to-date net income shortfall
+ Asmall number of other areas also underperformed (e.g. ATM Withdrawals, Moneygram and Postal Orders) although these were more than offset by strong results across much of
the rest of the portfolio — and in particular in Bill Payments, Counter Withdrawals and Insurance
Government Services (£0.1m ahead of budget)
+ Broadly trading in line with budget and prior year although this masks a mix-effect where strong performances in Motoring Services (benefitting from an early price increase) and
Passports (which have seen strong volumes) have been offset by weakness in POCA (due to a fall in the number of accounts compared to budget) and AE (where weak DVLA
volumes are triggering minimum payments under POL’s contract)
+ However, despite weakness in the current year, AEl is still trading c.28 per cent. ahead of 2011/12
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Executive 4
HM Government
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POL Quarterly Review — Update on Current Trading (conta)
YTD YTD % YTD % 2011/12 2012/13 2013/14
Actual Budget Variance Prior Year Variance FY Actual FY Budget FY Forecast
POL Net Income 221.9 215.8 2.8% 212.3 4.6% 865.3 897.9 915.3
Staff Costs (62.6) (67.5) (7.3%) (61.4) 1.8% (251.3) (268.9) (265.5)
Agents Costs (120.3) (117.4) 2.5% (122.2) (1.5%) (482.9) (482.8) (489.4)
Non-Staff Costs (36.0) (38.4) (6.3%) (38.1) (5.6%) (149.2) (166.2) (184.9)
Interbusiness Expenditure (19.9) (20.5) (2.7%) (20.8) (4.4%) (84.9) (83.3) (83.8)
Depreciation (0.2) (0.2) 19.9% (0.1) 150.4% (0.4) (0.8) (05)
Group Overhead allocations (3.7) (37) 2.5% 6.1) (26.5%) (19.6) (16.8) (15.0)
POL Operating Profit (20.9) (31.8) nm. (35.5) nm. (123.0) (120.9) (123.9)
Financial Services JVs 9.0 9.2 (2.1%) 79 12.9% 30.8 32.6 38.0
Group Operating Profit (pre-POOC) (11.9) (22.7) nm. (27.6) nm. (92.2) (88.3) (85.9)
Project One-Off Costs (11.2) (4.6) 141.4% (1.2) 797.1% (26.5) (37.7) (22.1)
Group Operating Profit (post-POOC) (23.0) (27.3) nm. (28.8) nm. (118.7) (126.0) (108.0)
Network Subsidy Payment 51.5 51.5 0.0% 45.0 14.5% 180.0 210.0 200.0
Group Operating Profit (post-NSP) 28.5 24.2 17.5% 16.2 75.9% 61.3 84.0 92.0
Memo: Net income (incl. NSP) 273.4 267.3 2.3% 257.3 14.5% 1,045.3 1,107.9 1,115.3
General
+ Year-to-date Group Operating Profit (post-NSP) performance is currently tracking c.18 per cent. ahead of budget for the year to June 2012 (i. first three months) and c.76 per cent.
ahead of prior year (excluding the c.£7m increase in the NSP, it is tracking c.25 per cent. ahead of prior year)
+ Compared to budget, this performance is due to a combination of higher than expected sales, and costs coming in below budget, partially offset by high levels of Project Costs
Costs
+ Year-to-date total costs are currently c.£5m below both budget and prior year, with performance compared to budget explained by lower Staff Costs (high number of vacancies in
Central and “Strengthening”) and Non-Staff Costs (low Consumables, Legal and IT spend, partially offset by higher Consultancy and Contractor spend)
+ The performance of Agents Costs compared to budget is mainly the result of higher contracted payments to sub-postmasters due to the strong performance in Mails & Retail
Project Costs
+ Project Costs are currently materially ahead of budget, as momentum established behind a variety of initiatives during 2011/12 has continued into 2012/13. However, management are
able to control this spending and have indicated that if it continues to track above budget, they are likely to put in place controls as the year progresses
Shareholder
Executive
HM Government
UKGI00001439
UKG100001439
RESTRICTED — POLICY & COMMERCIAL
POL Quarterly Review — Crown Post Offices P&L
YTD YTD % YTD % 2011/12 2012/13 2013/14
Actual Budget Variance Prior Year Variance FY Actual FY Budget FY Forecast
Attributable Variable Net Income 25.4 24.2 5.1% 22.3 13.7% 91.4 98.5 na.
Staff Costs (29.3) (29.6) (1.0%) (29.5) (0.9%) (119.2) (117.5) na.
Property Costs (8.4) (9.5) (11.0%) (8.9) (5.1%) (41.8) (39.0) na.
Non-Staff Costs (1.4) (1.7) (18.3%) (1.8) (24.9%) (6.3) (68) na.
Infrastructure Costs (7.2) (7.5) (4.1%) 6.1) 39.9% (30.5) (31.8) na.
POL Crown Operating Profit (20.8) (24.0) nm. (23.0) nm. (106.4) (96.6) na.
Financial Services JV Income 23 24 (2.0%) 23 (0.6%) 92 98 na.
Group Crown Operating Profit (18.5) (24.7) nm. (20.7) nm (97.2) (86.8) na.
Total Allocated Costs 14 3.0 (52.2%) 07 98.7% (3.5) 14 na.
Other Allocation of Non-Transactional Income 73 67 9.7% 10.1 (27.6%) 40.2 30.0 na.
Retention Income 14 14 1.6% 08 82.4% 12.6 5A na.
Group Crown Operating Profit (pre-POOC, exceps.) (8.4) (10.6) nam, (8.1) nam. (47.9) (40.3) na.
General
+ Year-to-date Group Crown Operating Profit (pre-POOC, exceps.) performance is currently tracking c.£2m ahead of budget for the year to June 2012 (i.e. first three months) and £1m
ahead of prior year (Note: No NSP allocation is made to the Crown P&L)
+ Attributable Variable Net Income (i.e. excluding allocation of Allocated Fixed Net Income, which is accounted for at POL level) is stronger year-on-year, mainly due to a shift between
Allocated Fixed Net Income — which forms part of Other Allocation of Non-Transactional Income — and Attributable Variable Net Income. This shift has mostly come about due to the
terms of the new contract between POL and Royal Mail, which has increased emphasis on variable earnings
+ Excluding this shift, Crown Net Income was essentially flat year-on-year, with growth driven by stronger Mails & Retail revenue. Compared to budget, the performance of Crown Net
Income (i.e. Attributable Variable and Allocated Fixed Net Income) is broadly in line with POL Group performance (i.e. c.5 per cent. ahead of budget)
+ Costs have been managed carefully with all key categories (including both direct and allocated costs) coming in under budget. With the exception of higher Infrastructure spend (due
to a marked increase in Network Equipment and Helpdesk Contact costs) costs were also below the level at the same time in 2011/12
New Crown Strategy
+ ShEx is working closely with POL to develop its strategy to bring the Crown network to break-even before March 2015. The developing strategy focuses on 5 key areas: new income
generation (c£19m); product retentions/renewals (c£5m); staff cost savings (c£18m); property savings (c£4m); and targeted franchising (c£6m).
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POL Quarterly Review — Traffic Light Analysis
Shareholder Relationship
There is a good and constructive relationship with the new Chair, and a strong relationship with the CEO who
has demonstrated her clear commitment to POL's strategic plan. The new NEDs are challenging
management, and this relationship will deepen further once the current recruitment process for a new NED
with financial services experience is complete.
Implementation of Shareholder
Model
Generally strong application of a shareholder model, with appropriate monitoring structures in place — this
includes frequent dialogue with management. However, policy and shareholder roles are combined.
Quality of Management Team &
Board
POL's management team have a strong track record of defending revenues and managing costs. However, in
order to meet the business plan targets, they will need to deliver a transformational strategy, at scale, which
also includes generating considerable new revenues. It is not clear yet whether they have the right skillsets /
capabilities to achieve this.
ShEx are working closely with management to monitor the performance of the business, and provide support
where appropriate / possible. Also, a succession plan is currently being developed by Paula Vennels for areas
of POL where there is no clear replacement for senior management.
Strategy
HMG requires that POL maintains a network of 11,500 outlets - significantly in excess of what it would
maintain on a commercial basis - which means that the business has to rely on Government subsidy. Without
this external funding, and in its current form, POL would not be a going concern.
POL's strategy is credible but extremely ambitious, both in terms of its scale (e.g. transformation of the
Network) and focus (e.g. growth in new revenues). However ShEx is monitoring the business closely, and is
also working with management where appropriate to ensure that it has best possible chance of succeeding.
Financial Performance
The obligations placed on POL by HMG mean that the business is loss making at a net profit level (it is also
loss making at an operating profit level, pre-subsidy). As a result it is not considered to be a going concern, ex-
subsidy.
POL's financial performance is monitored closely by ShEx on a monthly basis, and sessions are held with
divisional management (both revenue and cost) to understand current trading and near term outlook in more
detail.
Balance Sheet and Risk
POL has a business plan in place, and it is funded to deliver this strategy. However POL is only a going
concern due to Government subsidy, and makes losses which means it is unable to pay dividends (both
today, and likely in the medium term also). ShEx monitors the business closely to ensure that it is meeting its
targets and that any issues are identified and addressed early on.
Shareholder
Executive
HM Government
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A Supporting Financial
Information
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Executive
HM Government
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POL Quarterly Review — Net Income Breakdown
Mail & Retail YTD YTD % YTD % 2011/12 2012/13 2013/14
Actual Budget Variance Prior Year Variance FY Actual © FY Budget FY Forecast,
Parcelforce 43 3.9 11.1% 42 3.9% 18.3 17.2 na.
Special Delivery 12.9 12.2 6.1% 13.0 (0.5%) 53.3 50.5 na.
International Priority & Standard 84 84 (0.9%) 7.0 19.6% 29.9 36.6 na.
Stamps (1st & 2nd Class) 17 76 54.0% 69 68.1% 318 35.4 na.
Labels (1st & 2nd Class) 24.9 23.7 5.1% 20.2 23.4% 83.9 100.4 na.
RM Mail Fixed 14.2 14.2 0.0% 22.0 (35.5%) 88.1 63.6 na.
Retail & Lottery 10.5 96 8.4% 10.7 (2.5%) 42.2 42.5 na.
Mails Other 13.2 125 5.1% 9.2 42.8% 39.9 57.6 na.
POL M&R Net Income 100.0 92.2 8.5% 93.2 7.3% 387.5 403.8 407.2
Government Services YTD YTD % YTD % 2011/12 2012/13 2013/14
Actual Budget Variance Prior Year Variance FY Actual © FY Budget —_FY Forecast
Motoring Services 89 75 17.7% 88 1.3% 32.3 296 16.4
Card Account 175 178 (1.6%) 177 (1.2%) 70.2 69.3 63.3
Passport 66 62 6.7% 62 7.4% 18.8 19.0 in other
AEI (DVLA & UKBA) 25 36 (30.2%) 2.0 27.6% 11.0 17.2 18.8
Other Government Services 07 1.0 (30.5%) 14 (52.6%) 34 49 53.2
POL GS Net Income 36.2 36.1 0.3% 36.0 0.4% 135.7 139.9 151.7
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POL Quarterly Review — Net Income Breakdown (conta)
Financial Services YTD YTD % YTD % 2014/12 2012/13 2013/14
Actual Budget Variance Prior Year Variance FY Actual FY Budget FY Forecast
Bill Payment (incl Ticket & Travel) 98 91 7.1% 10.4 (5.6%) 40.5 37.7 35.9
Payout 01 0.2 (46.6%) 0.1 (2.9%) 0.2 09 in bill paym.
Postal Orders 5.7 6.0 (5.4%) 5.9 (2.8%) 25.6 23.8 24.3
Fin Servs opportunities and projects 0.0 03 (100.0%) 0.0 na. 0.0 12 0.0
MoneyGram 3.5 3.8 (6.4%) 3.6 (0.7%) 14.4 15.8 15.0
Gift Voucher 03 04 (13.8%) 0.2 40.4% 0.9 2.9 in bill paym.
Banking Services 7.2 63 15.0% 6.0 20.8% 25.3 25.9 24.7
DwpP 44 09 20.0% 1.9 (42.2%) 79 27 0.0
NS&l 3.3 3.2 3.8% 40 (17.8%) 16.6 13.2 5.0
A&L Business Banking 86 86 (0.1%) 87 (1.7%) 34.2 34.3 26.0
ATM 74 79 (6.4%) 72 2.1% 29.3 32.4 32.0
Bureau (excl profit share) 63 6.2 1.9% 5.9 7.0% 24.1 23.7 27.3
Travel Insurance 3.5 28 26.9% 3.4 12.1% 8.9 85 14.9
POFS - Savings 3.0 88 (65.6%) 3.9 (22.3%) 15.7 37.2 na.
POFS - Insurance 44 09 24.7% 1.2 (4.1%) 46 42 na.
POFS - Lending 0.5 1.0 (52.8%) 04 10.0% 1.8 3.7 na.
POFS Other 24 0.6 238.6% 0.6 238.6% 0.0 25 52.3
Miscellaneous (A&L - CLS, Debit Card, Bureau kiosks) 09 1.0 (14.4%) 0.2 267.5% 11.5 4.0 5.0
POL FS Net Income 64.5 68.1 (5.2%) 63.4 1.7% 261.5 274.7 262.4
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Executive
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POL Quarterly Review — Staff and Non-Staff Cost Profile
Staff Costs YTD YTD % YTD % 2011/12 2012/13 2013/14
Actual Budget Variance Prior Year Variance FY Actual FY Budget FY Forecast
Central (inc MD's office and Strengthening) (0.8) (3.9) (79.6%) (1.1) (29.4%) (6.0) (15.5) na.
Commercial (1.5) (1.6) (5.7%) (1.2) 25.4% (5.1) (6.5) na.
Finance (2.4) (25) (3.4%) (2.4) 1.0% (9.3) (9.9) na.
Human Resources (6.7) (6.7) (0.4%) (6.2) 9.0% (24.4) (22.9) na.
Legal (1.2) (1.4) (17.1%) (1.1) 7.8% (4.1) (5.7) na.
Network (47.1) (47.8) (1.6%) (47.0) 0.1% (189.1) (190.5) na.
Programme costs 041 0.0 na. (0.0) (565.0%) (0.0) 0.0 na.
Financial Services (0.5) (1.2) (61.3%) (0.3) 43.1% (1.6) (4.7) na.
Communications (0.4) (0.5) (6.6%) (0.1) 216.0% (0.9) (1.9) na.
Strategy (3.1) (2.9) 8.5% (2.9) 6.6% (11.7) (11.5) na.
POL Staff Costs (62.6) (67.5) (7.3%) (61.4) 1.8% (251.3) (268.9) (265.5)
Non-Staff Costs YTD YTD % YTD % 2011/12 2012/13 2013/14
Actual Budget Variance Prior Year Variance FY Actual FY Budget FY Forecast
Computers & Telephones (17.3) (17.8) (2.8%) (20.4) (15.2%) (78.8) (84.1) na.
Other Operating Costs (6.5) (6.1) 7.3% (6.1) 7.1% (18.1) (17.4) na.
Consultancy, Marketing & Legal Fees (4.1) (45) (10.1%) (2.5) 61.3% (13.5) (18.5) na.
Finance (4.9) (3.6) 36.6% (6.0) (1.1%) (15.9) (16.3) na.
Property Facilities (1.7) (4.7) 4.5% (1.1) 52.3% (6.0) (7.3) na.
Property Maintenance (1.5) (1.3) 15.9% (4.1) 41.8% (4.1) (5.2) na.
Vehicles (0.7) (0.6) 14.6% (0.4) 46.8% (2.1) (2.3) na.
Compensation (0.5) (0.3) 109.6% 0.2 (385.5%) 23 (1.0) na.
Collection, Delivery & Conveyance Charges (0.2) (0.2) (1.5%) (0.2) 12.4% (1.0) (0.6) na.
Staff & Agent Related Costs & Consumables 04 (3.4) (113.0%) (2.4) (117.9%) (12.0) (13.4) na.
POL Non Staff Costs (36.0) (38.4) (6.3%) (38.1) (5.6%) (149.2) (166.2) (184.9)
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A Front Office for Government
Pipeline
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POL Quarterly Review — Front Office for Government Pipeline
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Agency Govt FOS extensions - Overseas Biometric Visas, UKBA
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A Performance
“Dashboards”
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Executive
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POL Quarterly Review — Key Performance Indicator “Dashboard”
UKGI00001439
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Business Scorecard
June 2012
Key Performance Indicators Current Month Year to Date Full Year 2011-12
Act Target Var Act Target Var Prior YearI F'cast___ Target. Var Outturn
(Growth
Total Revenue (excluding NSP) £m (Bonus) 76.5 74.9 250.1 244.7 240.9 1,015.8 1,015.8 979.7
Total Net Income (excl NSP) £m 68.1 65.7 221.9 215.8 212.3 897.9 897.9 865.3
Operating profit £m (Bonus) 10.6 54 28.5 24.2 16.2 84.0 84.0 613
Free cashflow £m (41.7) (35.0) 390.1 351.3 799 (85.3) (85.3) (15.0)
Collections & Returns ability to serve RM (Milestones) 0 1 0 1 NIA 8 8 NIA
FOoG bid wins (value won) (Rev £m) 0.4 1.0 1.3 29 NIA 447 41.7 N/A
(Customer
Customer Satisfaction 85.0% 88.0% 86.3% 88.0% 85.1% 88.0% 88.0% 86.9%
IQueue time % < 5 minutes - Top 1k branches (Bonus) 70.8% 75.5% 70.6% 75.8% 74.3% 78.9% 78.9% 77.8%
Welcome & Farewell - (mystery shopped) - Top 1k branches I 87.3% 85.9% 85.1% 85.9% 80.5% I 85.9% 85.9% 81.5%
‘Call Centres 3D (Bonus) 103.1% 100.0% 101.9% 100.0% 100.4% I 100.0% 100.0% 105.5%
Retail Standards (actual) - Top 1k branches 90.4% 84.9% 90.4% 84.9% 82.5% 84.9% 84.9% 84.1%
Horizon availability 99.9% 99.6% 99.9% 99.6% 99.8% 99.6% 99.6% 99.5%
Branch - Compliance (new basket) 98.5% 95.0% 97.6% 95.0% N/A 95.0% __ 95.0% N/A
Modernisation
‘Crown Profit £m (Bonus) (2.8) (3.7) (8.4) (10.6) NIA (40.3) (40.3) (47.9)
Engagement Index % (Once a year) 64% 65% 64% 65% 58% 65% 65% 64%
Network Conversions (Mains & Locals) (Bonus) 1 1 211 211 NIA 1200 1200 N/A
IT Transformation (Milestones) 2 2 5 7 N/A 12 12 NIA
Bonus worthy metrics
Shareholder
Executive
HM Government
15
RESTRICTED — POLICY & COMMERCIAL
POL Quarterly Review — Network Transformation “Dashboard”
UKGI00001439
UKG100001439
Network Transformation Programme Scorecard - Implementation
May 2012
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HM Government
Shareholder
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