OPTUS YES SHOP FRANCHISE OPPORTUNITIES HERE S WHAT YOU NEED TO KNOW ABOUT BECOMING AN OPTUS YES SHOP FRANCHISEE.

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1 OPTUS YES SHOP FRANCHISE OPPORTUNITIES HERE S WHAT YOU NEED TO KNOW ABOUT BECOMING AN OPTUS YES SHOP FRANCHISEE.

2 WHO WE ARE? WE STARTED WITH CHOICE. Optus has been transforming the way Australians communicate with each other since And from the beginning, we ve stood for choice. We take our name from the Latin word for choose - optare - so Optus means choose us. WE RE PEOPLE WHO FOCUS ON THE CUSTOMERS. Using state of the art technology, we ve been shaping the way our customers live, work and play for over 20 years. With a customer base of over 9.4 million mobile subscribers, more than 1 million on-net telephony subscribers and 1 million on-net fixed broadband subscribers across Australia, we put the customer at the centre of everything we do. WE RE A DIVERSE AND GLOBAL NETWORK. We re Australia s second largest telecommunications group, providing a diverse range of innovative services including fixed, mobile data, internet, ICT and TV. We re a wholly-owned subsidiary of the SingTel Group, Asia s largest telecommunications company, with operations in 20 countries worldwide. *As of May 2014

3 3 OUR PURPOSE The telecommunications industry has been through huge changes since we began, but despite this, we want the same thing we ve always wanted - to be the champion of customers. It s up to us to shake things up and provide real competition. Since we started in 1991, we ve brought huge benefits to all Australians: innovation, competitive prices, better service and improved coverage. THE OPTUS VALUES OUR VISION Customer experience is at the core of everything we do. We ve been focused on fixing the basics, and that s helped us take the lead in customer experience in the Australian telco industry. But now it s time for a bigger challenge. OUR AMBITION To become the most love and recommended service brand in Australia. TEAMWORK This one s an obvious one: by working together, we accomplish more. At Optus, we value every team member s contribution, and encourage open and honest discussion. And a big part of valuing teamwork is embracing what diversity brings to our organisation. CHALLENGER SPIRIT Optus was born to be the challenger, to be nimble and bring innovation to the marketplace. Challenger Spirit is about taking calculated risks, breaking new ground and ultimately finding new ways to meet customer needs. CUSTOMER FOCUS Our customer is at the centre of everything we do. Customer Focus is about making things simple for people, and connecting them through accessible technology. Maintaining the quality of our service requires not only innovative products and pricing, but a commitment to treating each customer with respect. INTEGRITY The way we conduct ourselves and our business impacts our reputation. Operating with integrity means taking responsibility for our actions, always meeting the highest ethical standards, and delivering on our promises. PERSONAL EXCELLENCE Personal excellence requires every one of us to bring our A-game. It means always striving for a higher standard of performance. It also means actively seeking opportunities for improvement, and personal and professional growth.

4

5 5 WHAT IT MEANS TO BE AN OPTUS YES SHOP FRANCHISE A NETWORK OF YES. Since we began operating in 1995, the purpose of our Optus yes franchise has been to keep providing Australian consumers with easy access to the highest quality telco products and services. We do this with the help of our Optus yes Shops - a nationwide, strategically located retail network. THE POWER OF YES. As a franchisee, you ll have the power of the yes brand behind you a brand with Australia wide recognition. We promote Optus yes stores as the place to go for Optus products and services. And now, we re expanding further than ever before to bring choice in communications to rural and remote parts of Australia. YES PEOPLE. Customers like to interact with products, and customers like interacting with people. That s why our yes shops have evolved to use digital media displays that allow customers to experience our telco products in the store. They re assisted by professional staff who are on hand to help them through the process and answer their questions. YES WE CAN. It s important to us that Optus and our yes stores are the preferred supplier of telco products and services in Australia. We achieve this with our excellent customer service, our high standards of operation and our technical expertise. MORE YES FOR THE COMMUNITY OPTUS AND KIDS HELP LINE We ve been very proud to support Kids Helpline since We ve done this by providing free calls to the Helpline from all Optus mobiles, and by helping to provide the world s first free real-time online counseling service and we re committed to growing it in the future. OPTUS AND THE SMITH FAMILY We re teaming up with the Smith Family to give children from disadvantaged backgrounds the opportunity to improve their reading. The mobile Student2Student program matches young students who need to improve their reading with peer mentors who are trained to help develop literacy skills in others. DRIVEN BY RESEARCH, POWERED BY OPTUS The program is underpinned by research indicating that young people who have reading difficulties find it easier to learn from others their own age. This program and 3 year partnership with Optus will enable nearly 1,000 students from disadvantaged backgrounds to participate in weekly reading sessions with their mentor via Optus technology. NATIONAL REPRESENTATION The Optus yes Shop Franchise are members of the Franchise Council of Australia (FCA) - franchising specialists who thoroughly promote integrity and honesty in all aspects of franchising. When we joined the FCA, they closely evaluated our practices and paperwork to ensure we aligned with their beliefs and values. Partnering to help kids connect

6 THE OPTUS YES SHOP As the touchstone between customers and Optus, we know how important it is for our customers to have an in-store experience that is both comprehensive and convenient. That s why we ve ensured that our yes store fit-out is a leader in store design. OUR STORES ARE AN INVITATION. Each store is designed and built to showcase the Optus Network, and the devices and products that connect to it. With clean lines, floating benches and customisable sections, yes stores are friendly and inviting. YOUR YES STORE WILL FEATURE: A demonstration desk that allows customers to play with technology. An infomercial screen that introduces customers to Optus products and services. Instant customer service access via dedicated phones. A quiet and comfortable connection area where customers will connect to the Optus Network.

7 OPTUS18271 / (07/14) OPTUS18271_ _OOH Shopalite_1010x1510.indd 1 OPTUS18533_ _Parabanks_(06/14)_2720x3370_FA.indd 1 17/06/14 3:00 PM OPTUS (06/14) NBN April Update_A2 Poster_OL.indd 1 OPTUS17979 / (06/14) 12/05/14 3:04 PM THE NITTY GRITTY. Includes $30 recharge to use on Prepaid plans excluding Connect 4 Less. Credit expiry and included value will depend on your plan. See optus.com.au/prepaid for details. Compatibility: If you bring your own phone, make sure it s not locked to other networks and is compatible with the Optus network. See optus.com.au/compatibility OPTUS18046/ (05/14) OPTUS18046_ _AusPost $30 SIM_A3Poster_L_P.indd 17 OPTUS18533 / PARABANKS (06/14) 19/06/14 3:58 PM OPTUS18086_ _845x530_SERVICE_PU_Top_Gen6.indd 5 25/03/14 12:18 PM 9/04/14 5:20 PM 7 WHAT YOU LL BE OFFERING Being a part of the Optus team means joining an Australian leader in integrated communications. THIS MEANS YOU LL BE ABLE TO PROVIDE: Mobile Mobile internet Home Telephone Wireless Telephony Broadband Mobile Broadband Business Network Services Pre-Paid Products. Smart Safe MeTV IT S ABOUT MORE THAN THE PRODUCTS, THOUGH. You ll also be helping customers with bill payments and services queries, and provide comprehensive after sale service. UNLIMITED NBN BUNDLES RECHARGED AND RE DY TO ROL Get a Prepaid mobile SIM with a $30 recharge already loaded. Just pick a plan and you re good to go. Easy as. NO DATA LIMITS NO COMPULSORY C NTRACTS NO CONNECTIO FEES NO SNEAKY CHARG S Come and see us in store today ASK US FOR DETAILS GRAB A $30 STARTER KIT NOW OPTUS PREPAID $ 2 A DAY GETS YOU MB $2 DAYS 4G READY PLAN OF DATA D ILY + UNLIMITED TEXT DAILY Standard text and MMS to any Australian network + UNLIMITED TALK DAILY Standard talk to Australian mobiles and landlines ONLY PAY FOR THE DAYS YOU USE ALL WITHIN AUSTRALIA SERVICE WE RE HAPPY T HAT Our team can help with more things than ever before. So if you re stuck or just curious about something just ask. OPTUS18086 / (05/14) GRAB A PREPAID SIM TODAY OPTUS INTERNET ACCEPTABLE USE AND OPTUS MOBILE FAIR GO POLICIES APPLY. 4G AND 4G PLUS COVERAGE IS AVAILABLE IN SELECTED AREAS. CHECK COVERAGE AT OPTUS.COM.AU/COVERAGE THE NITTY GRITTY. Data: Ordinarily counted in 1MB increments, but access via yes Internet access point (APN) is counted in 1kB increments. If you use more than 500MB, we ll automatically deduct another $2 and bump you up to a max of 1GB of data for the day. Compatibility: If you bring your own device, make sure it s not locked to other networks and is compatible with the Optus network. To learn more, visit optus.com.au/compatibility OPTUS18334/ (06/14) OPTUS Prepaid $2 Days A5P/L Backer.indd 1 6/05/14 7:21 PM

8 WE RE PEOPLE WHO FOCUS ON THE CUSTOMER awesome

9 9 THE YES SYSTEM Here s our plan for your success. WINNING OVER CUSTOMERS Take market share in high value and emerging segments Through the growth of your customer base, attract upfront and ongoing commissions/revenue Generate greater profit through complimentary products eg; mobile phone accessories Maximise sales of Optus Prepaid Products including handsets, activations on the Optus Network and Recharge Vouchers to maximise profit margin Manage your customer base through cross-sell activities to other Optus product categories and therefore attract upfront and ongoing commission/airtime revenue. MANAGING YOUR BUSINESS The alignment with the Optus brand means the franchise will support customer service for both the company and individual franchise Various service activities attract transactional based commissions All handset devices are purchased through the Franchisor and therefore the administrative functions of managing this stock are supported with systems Negotiated national arrangements for additional product lines creating additional revenue opportunities Full financial management system incorporating handling point of sale transactions through to full profit and loss reporting. COMMUNICATING WITH US Annual National Optus yes Franchise Conference State Franchisee Forums. National Advisory Council Regular Senior Management appearances and contact National Communication procedures in line with the Operations Manual. REWARDING SUCCESS National Annual Franchise Management Programme yes Optus Champions Key driver of sales performance and operational standards management Enables a unique system and standard across our franchise. Endorses franchisee alignment through business management measures Top ten Franchisees rewarded with international trip hosted by Optus Senior Management Team Programme has full website functionality and interactivity. HOW WE LL SUPPORT YOU YES TO DEVELOPMENT. We know that this industry is fast-paced and that technology changes daily. That s why we re committed to providing relevant, comprehensive training. To manage this, each state has a dedicated training officer. They run scheduled class-room style sessions and provide online learning tools. You ll also be provided with our Franchise Manual, your go-to home for store knowledge and advice. We re also committed to the development of you and your staff. We fully support training in retail operations, Franchising and other appropriate learning and development opportunities. YES TO ADVICE. Our Franchise Team will always be on-hand to assist you with all aspects of running your business. We monitor store performance and provide support and guidance with business planning, retail operations, training and financial management of the franchise. YES TO OPERATIONAL SUPPORT. It s important to us that everything is running smoothly behind the scenes. Full training is provided to cover the operations of the store including: Activating customers onto the Optus Network Full stock management processes Full financial and accounting processes IT and in-store systems. YES TO MARKETING. We ll always be spreading the word. A dedicated team of marketers promotes the Optus Franchise nationally. They also produce pointof-sale materials for use in-store use, which they update monthly in line with current promotions. Our national marketing program is the primary part of the promotional mix. However, local store marketing and community activity run by our franchisees is a vital to maximising local opportunities and niche markets in the stores catchment area. YES TO HAVING THE RIGHT PEOPLE ON YOUR SIDE. As a franchisee, you ll have more than 40 people dedicated to the success of your store. You ll be directed supported by the following teams: Management Team; Sales Team, Operations Team, Franchise Development Team, Franchise Business Executives, Franchise Operations Executives, State Training Officers and Sales Support Executives. Alongside this direct support, you ll have relationships with other teams from the Optus Community including Marketing, Commercial, Customer Service, Handset Servicing and Optus Senior Management

10 MEET THE BEST FRANCHISE LEADERS IN THE BUSINESS ROHAN GANESON MANAGING DIRECTOR, SALES In his 4 years with Optus, Rohan has undertaken a senior role in our SMB Division. Prior to joining Optus, Rohan spent 4 years with Keycorp Ltd in a varied of senior roles. QUALIFICATIONS: MBA, Melbourne Business School, University of Melbourne BSc (Hons), University of Western Australia. MICHELE GARRA VICE PRESIDENT, SALES Michele joined Optus in January 2014, coming with more than 25 years experience in Senior Management roles across sales and marketing. Most recently, Michele managed the Australian and New Zealand Division for Sony - a position she held for 14 years. QUALIFICATIONS: MGSM, Post Graduate Diploma Management Diploma AICD (Australian Institute of Company of Directors) Harvard, Graduate Strategy Sustainable Competitive Advantage BEN MURRAY HEAD OF BRANDED RETAIL Ben has been with Optus for 17 years, working across a broad range of senior roles in our Consumer Sales Business including Branded Retail, Retail Channel Partners, Retail Design, Mass Retail. He also has experience running the Optus Prepaid Recharge platform. Prior to Optus, Ben worked with the Coles Myer Group. He recently moved into this role heading up all branded distribution. QUALIFICATIONS: MBA - Current KEY PAYMENTS DESCRIPTION OF PAYMENT AMOUNT OF PAYMENT OR FORMULA TO CALCULATE PAYMENT WHO THE PAYMENT IS MADE TO DUE DATE OF PAYMENT Assessment of each party by the other Nil N/A N/A Franchise Fee $10,000 (ex GST) (Incorporating $5,000 Acquisition Fee; $5,000 Training Levy) Franchisor Final Agreement Signing Set up Costs Variable as per the Franchise Agreement Franchisor Royalty Payment 2.4% (Of total receipts plus Commission Payable to the Franchise) Franchisor 30 day payment terms upon completion of Store fit-out 30 day payment terms from previous month Lease Occupancy Costs (rental, ongoings etc.) Variable as per the Lease agreement between Landlord and Franchisee Landlord In accordance with the applicable lease agreement

11 11 WHAT HAPPENS NEXT? INTERESTED? START HERE 1 EXPRESSION OF INTEREST Submit your interest including your name; address; address; contact numbers; budget and preferred location to: yesoptusfranchise@optus.com.au 2 APPLICATION FORM We ll forward a request for information form to the address you provide us. 3 REVIEW We ll then look over your application and make sure everything is in order. 4 MEETING WITH FRANCHISING SELECTION MANAGER This is a chance for you to meet with our selection manager, ask questions, review the application form and discuss future plans and opportunities. *Applicants will be expected to provide a signed Confidentiality Agreement and supporting documentation during this meeting* 5 RELEASE OF DISCLOSURE STATEMENT AND IN STORE INTRODUCTION We ll next issue you our Disclosure Document and Franchise Agreement. If you are satisfied with our terms for franchising, we will arrange a day in one of our stores. This is your chance to experience a day in the life of Optus yes. 6 REVIEW PERIOD At this stage, we ll review the legal documents, seek professional advice and ask as many questions as required. We ll then review your final application and either approval or decline it. 7 FINAL AGREEMENT SIGNING If your final application is approved, we ll then get you to sign the franchise documentation, and you ll have to pay the franchise fee. 8 STORE BUILD AND TRAINING During this stage, our fit-out team will be planning, designing and building your store. Our training team will equip you with all the knowledge you need to run your store. 9 STORE OPENING This is when the fun begins! From day one, our support team will be alongside you to conduct on the job training; guide you through your operation and ensure the successful launch of your Optus yes Franchise.

12 ANY QUESTIONS? Then get in touch with: Ann Woo, Franchise Development Executive, yes Optus Franchise Phone STO KD

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