Ann: GENERAL: SPK: Leadership and strategy execution changes at Spark NZ

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					SPK
27/01/2015 08:43
GENERAL
PRICE SENSITIVE
REL: 0843 HRS Spark New Zealand Limited

GENERAL: SPK: Leadership and strategy execution changes at Spark NZ

MARKET RELEASE
27 January 2015

LEADERSHIP AND STRATEGY EXECUTION CHANGES AT SPARK NEW ZEALAND

Simon Moutter
Managing Director, Spark New Zealand

Two years ago Spark New Zealand (Telecom at that time) embarked on a bold new
strategy designed to transform the business from a traditional fixed and
mobile infrastructure company to a future-oriented, competitive retailer of
digital services delivered over our networks and the Cloud. At that time, we
outlined a two-phase approach to strategy execution: a first phase where we
would aim to stabilise revenue/margin and reduce costs; and, once this was
completed, a second phase to move on to driving market revenue/margin growth
with continuing improvement in unit costs.

We are firmly on track, having made excellent progress across all our key
programmes.  These have seen us:
- bring the company's focus back to New Zealand;
- develop a more customer inspired and competitive, multi-brand market
approach;
- earn the right to, then successfully re-brand the company as Spark New
Zealand;
- invest heavily in fixed and wireless data network leadership;
- advance our IT Re-engineering Programme past the halfway mark;
- implement an organisation-wide Turnaround Programme to improve productivity
as well as operational efficiency and effectiveness;
- enter the Cloud IT Services and Internet TV markets;
- launch a range of digital businesses via our Ventures Division; and
- improve organisational health, people engagement and excitement about the
future.

One of the Leadership Team who has been central to this progress, Chris Quin,
CEO Spark Home, Mobile & Business, has decided to leave the company by
mid-year to attain his next leadership opportunity. Chris has been with the
company for over 20 years and has achieved all I could have asked of him over
the last two years. By any measure, Chris has done a consistently terrific
job in a range of executive roles at Spark New Zealand and Telecom/Gen-i
before that. After a period as Acting Telecom CEO, Chris agreed when I
re-joined the company in 2012 to move over to our Home, Mobile & Business
Division with a brief to build a more customer inspired, competitive and
successful core business. The results are very apparent.  Our Home, Mobile &
Business Division is growing market share, revenue and earnings for the first
time in many years on the back of Chris' commitment to marketing and sales
capability development, the Spark re-brand, digital service, people culture,
cost reduction and product innovation. Chris and I have been talking for a
while about his desire to progress, so we will part on great terms and he
will leave with my full backing and genuine appreciation for a job well done.
Chris will finish up at the end of June 2015.

Given our progress and this change in leadership, it's now time to prepare
for the next phase of strategic execution in FY16 and beyond. As outlined
above, our focus will shift from re-setting the foundation of the company to
building upon this foundation in pursuit of growth. One important element of
this process will be integrating the Turnaround Programme into the businesses
so that the performance improvement mind-set becomes business-as-usual by
June 2015. With the Turnaround Programme coming to its end, a new Strategic
Programme - "Digital First" - will be set up over the next few months to
centrally architect and steer the ongoing delivery of the digital
transformation of our business. Our aim will be to create New Zealand's
leading digital services platform and suite of digital applications intended
to fuel market growth.

In support of these business changes, we will be making a few changes to the
Spark New Zealand Leadership Team accountabilities and transitioning smoothly
the succession of leadership in our largest trading Division.

Jason Paris, GM Spark Home, Mobile & Business, will be taking over the reins
from Chris as CEO Spark Home, Mobile & Business from 1 July 2015. Jason has
been with the company for over three years and has been instrumental in our
improved performance. As a leader in the rebranding to Spark, and recognising
his status as one of the country's best marketing executives, he is the right
person to build the Spark brand from the successful launch last year and to
position Spark at the heart of enabling the digital future for all New
Zealanders.

Rod Snodgrass, CEO Spark Ventures, will take accountability for the new
Digital First Programme in conjunction with his existing accountability for
Spark Ventures. Rod is our leading thinker on digital business and the
capability he has built in the Ventures Division will add real depth to the
programme and its intended outcomes.

Jolie Hodson, Chief Financial Officer, will take on some operational business
activities in conjunction with her existing CFO accountabilities, with the
now more mature Skinny and Big Pipe businesses ready to move outside Spark
Ventures and report directly into her with effect from 1 February 2015. This
will maintain high level focus on our multi-brand market strategy at the same
time as creating room for Rod to pick up the big Digital First Programme.

The roles of the remaining members of the Leadership Team remain unchanged.

It is an expression of confidence in our strategic execution and the
development of our talent that we are able to signal these changes early and
commence the preparation for FY16. I am very encouraged by what we have
achieved to date, very appreciative of what my team has done to make it
happen and very excited about what the future holds for Spark New Zealand in
an increasingly digital world.

- ENDS -

For media queries, please contact:

Richard Llewellyn
Head of Corporate Communications
+64 27 523 2362

For investor relations queries, please contact:

Mark Laing
GM Corporate Finance
+64 27 227 5890
End CA:00260045 For:SPK    Type:GENERAL    Time:2015-01-27 08:43:55