Building a better working world for Australian agribusiness and farming Tony Johnson ABARES Outlook 2015 national conference 3 March 2015

Page 2 Building a better working world for Australian agribusiness and farming

EY: Building a better working world

Building a better working world for Australian agribusiness and farming Tony Johnson ABARES Outlook 2015 national conference 3 March 2015

About EY

Exceptional client service across our four service lines

Assurance Tax Advisory Transaction Advisory Services

► We are passionate about creating a vibrant future for the people and business involved in the production and sale of food and fibre.

► Our approach combines innovative thinking and an understanding of issues. ► We draw on our global capability, vast resources and our diverse network of clients

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Key themes

► Addressing debt levels ► Key things that governments can do ► Insights

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Opening up investment channels

Co-operatives Large private companies

ASX listed companies

Investment Banks

Commercial Banks

Super funds

Equity funds

Private equity

Debt funds

Investment Banks

Commercial advisory and capital raising

Proposal to enable increased investment to smaller/mid-sized farming operators…

Invest

or Ma

rket

Individual Farmers

Well established investment channel

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Addressing the rural debt problem

Bank

Bank

Bank

Bank

Bank Farmers stay on the land

Government Authority provides oversight

Investor Funded SPV Owns and Manages the Loan Portfolio

$

$

Proposal to raise liquidity to enable stressed farming loans to be restructured…

Loans provided on commercial terms

Restructure of loan

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The importance of Government

► Regulatory activity ► Trade agreements ► Investment in science ► Infrastructure ► Biosecurity

Governments have a critical role in enabling success of individuals and businesses

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Business insights

of companies are more confident in their plans to increase workforce numbers. 52% of companies expect to increase their deal

pipeline in the next 12 month.

69%

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Business Insights

Focus on Growth Cautious about slowing growth of emerging markets

Targeting new markets

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Australian agribusiness insights

Major opportunities identified

Challenges

Demand from new and emerging foreign markets

Taking advantage of FTAs

Increased product differentiation

Supply chain optimisation

Increasing international competition

Rising input costs, including cost of land

National infrastructure network

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Insights into our major competitive advantages

Quality

52%

Australian brand Quarantine measures

60% 60%

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Business insights on policy

Upgrades to national infrastructure

Policy changes to promote agribusiness growth

Building of relationships Free trade Increased government funding

48% 48%

64%

54%

EY | Assurance | Tax | Transactions | Advisory

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

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Improving business performance while managing risk is an increasingly complex business challenge. Whether your focus is on broad business transformation or, more specifically, on achieving growth or optimising or protecting your business, having the right advisors on your side can make all the difference. Our 30,000 advisory professionals form one of the broadest global advisory networks of any professional organisation, delivering seasoned multidisciplinary teams that work with our clients to deliver a powerful and exceptional client service. We use proven, integrated methodologies to help you solve your most challenging business problems, deliver a strong performance in complex market conditions and build sustainable stakeholder confidence for the longer term. We understand that you need services that are adapted to your industry issues, so we bring our broad sector experience and deep subject matter knowledge to bear in a proactive and objective way. Above all, we are committed to measuring the gains and identifying where your strategy and change initiatives are delivering the value your business needs.

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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

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