1. Kevin Gaitskell General Manager ESP

2. The Perfect Storm

3. Focus Who are we? In what context do we operate? What challenges do we face? What is our response? …..and therefore why are we in a perfect storm?

4. Who are we? One of the worlds largest isolated power systems Australia’s largest combined Transmission and Distribution business Government Trading Enterprise (GTE) Operating in an immature regulated environment (2006) …. operating from the worlds most isolated capital city

5. Who are we? Network South West Interconnected System (SWIS) 95,000km power lines 787,000 power poles and towers 224,000 street lights 13,500 substations 22,000 new connections People 3000 employees 500 embedded contractors 1000+ Fee for Service contractors With challenges associated to an aging infrastructure.

6. In what context do we operate? 0 GDP % Change (yoy)

7. In what context do we operate? forecast AA1AA2AA3 Total Expenditure 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 20072008200920102011201220132014201520162017 Aus$ millions (real 2011/2012) actualsTrend forecast

8. What challenges do we face? Labour market Organisation Shareholder value

9. Labour market #1 Real skills crisis is still to come Employers warn that Australia is in the grip of skills crisis We are running out of skilled workers WA Businesses hit hard by skills shortage Chronic skills shortage hits workforce

10. Labour market #2 20,000 80,000 150,000 210,000

11. Organisation #1 An aging workforce: 10% of line workers expected to retire in 2011/12 Current turn over 9.5% 14.5% leave within 2yrs …why are they leaving?

12. Organisation #2 Career development opportunities Remuneration Dissatisfaction with roles Organisational culture

13. Shareholder

14. Why is this the “Perfect Storm”

15. What is our response? Culture Capability Capacity Change Program

16. What is our response? WP Current Operating Culture 2009 WP Target OCI 2013 Industry (Gas/Electric) OCI Actual 2010

17. What is our response? Our value proposition Retention Recruitment

18. Come to WA

19. A final word

20. Questions