KPMG Bernard Salt @ Comms Day 2010

CommsDay Summit 2010Towards 35 Million: Working and Living in a Bigger AustraliaBernard Salt

21 April 2010

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

21 April 2010

Australians value lifestyle and affordability

1. Brisbane 21,161

2. Gold Coast 15,643

3. Moreton Bay 13,260

4. Wyndham 10,758

5. Sunshine Coast 9,572

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

6. Wanneroo 9,533

7. Casey 8,430

8. Ipswich 7,714

9. Melton 7,306

10. Blacktown 6,902

• Top 10 growth areas in Australia over 12 months to June 2009

Source: Australian Bureau of Statistics; KPMG

Australia’s growth has spiked in response to the GFC … partially from expats coming home

457,000

230,000

280,000

330,000

380,000

430,000

480,000

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Net increase - historical Net overseas migration - historicalNet increase - current

Net increase – old projection

Net overseas migration - current

Net overseas migration – old projection Net overseas migration – new projection

Source: Australian Bureau of Statistics; KPMG

-20,000

30,000

80,000

130,000

180,000

230,000

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

2013

2016

2019

2022

2025

2028

2031

2034

2037

2040

2043

2046

2049

Australians are on the move … to the coast

Areas of high population growth (>2% pa) and loss (<-1% pa) between 1986 and 2009

TownsvilleBroome

Palmerston

Mackay

Cairns-Port Douglas

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Losers

Winners

Source: Australian Bureau of Statistics; KPMG

Gladstone

Hervey BaySunshine CoastGold Coast

Coffs HarbourPort Macquarie

Port Stephens

Narooma

Surf CoastSorell

Victor Harbor

Augusta-MargaretRiver

Busselton

Bundaberg

Byron Bay

Denmark

Anticipate demand around ‘surge points’ in the Australian demographic profile

Mature adults• Business comms• Pay Gen Y phone bill

300,000

400,000

500,000

Young adults• Techno-savvy• Social media• Part of tribal culture

Active retirees• Connectivity• Value-orientated

Kids• Suburbia• Security?

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Source: ABS Historical Population Statistics, 2006, Department of Health and Ageing Population Projections, 2007; KPMG

• Net change in Australian population by 5-year age group over 10 years to 2007 and 10 years to 2017

Absolute Growth 1997-07 Absolute Growth 2007-17-100,000

0

100,000

200,000

0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85+

• Security?

Child Adolescence Lifestyle OldRetired2010 82

Adult

Child Teen OldAdult

The extension to life expectancy has created new market segments and behaviours

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

0 9010 20 30 40 50 60 70 80

• Change in life expectancy over 80 years in Australia

Child Teen OldAdult1970 71

Child Adult Old1930 63

Source: United Nations Population Division; KPMG

Who is … what is … Generation Y?

Born 1976-1991

Raised inprosperity

Single kids

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Unfazed

by

authority

Culture ofvolunteering

Sense

of

entitlement

Source: KPMG

The new rules of the workplace

20th century

• Hard edges to working day and week: 9-5 Monday-Friday

• Edges blurring … log on after dinner … personal internet use at work

• The office is hierarchical … driven by procedures & protocols

• Work is ‘outcomes’ focussed … hierarchies less relevant

21st century

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

by procedures & protocols hierarchies less relevant

• Boomer concept of corporate loyalty was admired

• Corporate loyalty parodied … “can’t think outside the square”

• Work nationally • Work internationally … Gap & OE years

• ‘Good workers’ arrived before, and left after, the boss

• Work- from-home facilitated by technology

Source: KPMG

Urban development could progress as a series of connected cells … leads to ‘Mosaic City’

Mosaic City Home

Work

CBD

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

• Self-contained sub-region• Decentralise offices, retail, hospitals, universiti es• ‘Bolt on’ new sub-regions as required

Live the NETTEL lifestyle in the 2020s … made possible by new technology

Male

Shops

RestaurantPrecinct

FUTUREMaleWork

60 m

inut

es

PAST

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

MaleWork

School

FemaleWork

HOME

30 minutes

School

Shops

ExtendedFamily

HOME

60 m

inut

es

Technology is being used to facilitate the pursuit of personal freedoms

20th Century – Fixed & Expensive

• Mail • Email – immediate; cost efficient

• TV • TiVo/Foxtel IQ – time shift; convenience

• Telephone landline • Mobile/Skype/SMS – access; 24/7

21st century – Fluid & Cheap

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

• Telephone landline • Mobile/Skype/SMS – access; 24/7

• Schools - Uni • On-line learning - access

• Offices • Work-home fusion – convenience; works with lifestyle

• Newspapers • iPad – access; range; portal

Source: KPMG

• Film cameras • Digital – immediate; volume

The GFC is loosening the dominance of the Atlantic and creating opportunities in Asia

New York

London

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

New YorkShanghai

Singapore

Mumbai

Tokyo

Sydney

Hong Kong

It’s Generation X who is most affected by the downturn

• Baby boomers - “There goes my early retirement”- Boomers hadn’t saved enough before the crash- No time to recover from GFC- Returning to or engaging with the workplace

• Generation X - Wrong time to be 33-43- Mortgage, kids & single income

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

- Mortgage, kids & single income- Unlucky generation … but sick of Gen Ys- Moving into leadership roles

• Generation Y - Never experienced recession- First time someone has said “no”- Learn the lesson of the downturn- See value in assets and commitment

• Generation Z - Prudent, connected, technophile

Contact

Bernard Salt

KPMG Australia

+61 3 9288 5047

[email protected]

© 2010 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

[email protected]

www.bernardsalt.com.au

twitter.com/bernardsalt

linkedin.com/in/bernardsalt

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