UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
Doing Business in Australia 2014 - presentations
1.
2. Doing Business in Australia
28 July 2014
Follow Scottish Enterprise on Twitter @scotent
Join the conversation using event hashtag #ScotHouse
Connect with Scottish Enterprise
on Linkedin and Facebook
3. Doing Business in Australia
2014
Julian Taylor
Executive Director - Asia PacificExecutive Director - Asia Pacific
Scottish Development International
Welcome & introduction
4. Australia – an economic
powerhouse?
• Relatively unaffected by
global financial crisis
• Uninterrupted growth over• Uninterrupted growth over
past 20 years, averaging
3.5%.
• Historical trade links with US
and Europe but close
proximity to fast growing
Asian markets
5. Scotland and Australia
• Scottish exports worth
£400m
• 90 Scottish companies with
presence in Australiapresence in Australia
• 50 investors in Scotland,
employing 7,000 people
• Strong historical and cultural
links create opportunities in a
number of key sectors
6. How SDI can help...
• Up-to-date market
information and specific
opportunities
• Access to industry networks;• Access to industry networks;
GlobalScots; other scottish
companies.
• Practical advice business
plan setting up overseas
office
7. Doing Business in Australia
2014
John Brown
Head of International Trade FinanceHead of International Trade Finance
National Australia Group
Australia as a business opportunity
8. Doing Business in Australia
2014
David Cross
Operational Director Asia Pacific
Global Energy GroupGlobal Energy Group
Doing Business in Australia
Cultural considerations
Routes to market
9. Global Energy Group Asia Pacific Pty Ltd.
Global SCSGlobal SCS
Doing Business In AustraliaDoing Business In Australia
Presenter: David Cross, Operations Director - Global SCS
Energy Projects Manager, Scottish Development International
11. GLOBAL
ENERGY SERVICES
GLOBAL
ENERGY SERVICES
CPSCPSISLEBURNISLEBURN
COMPANY STRUCTURE
Executive
Management Team
Executive
Management Team
Board of Directors
GE (Holdings) Ltd.
Board of Directors
GE (Holdings) Ltd.
EQUIPMENT
MANUFACTURING,
MAINTENANCE & QS
MARINE PROJECTS
LOGISTICS & MARINE
OPERATIONS
PROCESS PLANT
GLOBAL PORT SERVICESGLOBAL PORT SERVICES
Global Energy Group Asia Pacific Pty Ltd.
ACCESS
AND COATINGS
ACCESS
AND COATINGS
RIGFITRIGFIT
GLOBAL
LOGISTICS
GLOBAL
LOGISTICS
GLOBAL
PROJECT SERVICES
GLOBAL
PROJECT SERVICES
CUNNINGHAM
CONSTRUCTION
CUNNINGHAM
CONSTRUCTION
VERTECHVERTECH
GLOBAL RESOURCESGLOBAL RESOURCES
GLOBAL SCSGLOBAL SCS
GLOBAL TCCGLOBAL TCC
ROSS-SHIRE
ENGINEERING
ROSS-SHIRE
ENGINEERING
PRIME PUMPSPRIME PUMPS
OGEOGE
REELREEL
GLOBAL DIVINGGLOBAL DIVING
ONSHORE INDUSTRIAL
SERVICES
ONSHORE INDUSTRIAL
SERVICES
CALEDONIAN TOWAGECALEDONIAN TOWAGE
NIGG ENERGY PARKNIGG ENERGY PARK
13. NETWORK OF EMPLOYEES
IN EUROPE AND
OTHER GEOGRAPHIES
Global Energy Group Asia Pacific Pty Ltd.
OTHER GEOGRAPHIES
Operations Management & Coordination
Senior Management & Business Control
Skilled Operatives, Technicians & Trades
17. Scotland & Australia Connections
Scots played many key parts in the story of Australia
For hundreds of years Scots have packed up their families and their
belongings and sailed to Australia to start a new life.
So how many Scots in Australia today?
1,792,600 by ancestry
130,204 by birth
Global Energy Group Asia Pacific Pty Ltd.
8.9% of total Australian population/ 17% Have Scottish Family
Connection
Perth Australia Coat Of Arms Has Perth, Scotland's’ Coat Of Arms
Within
18. Australia- Size Does Matter
Darwin
Brisbane
Global Energy Group Asia Pacific Pty Ltd.
City From City To Driving Time Distance Flying Time
Perth Darwin 45 Hours 4,164 kms 3.5 Hours
Perth Sydney
Melbourne
Adelaide
Darwin Brisbane 45 Hours 3,842 kms 3.5 Hours
Brisbane Perth 56 Hours 5,218 kms 5.5 Hours
20. Cultural Considerations
Consider Territory Best Suited For Your Business, WA, NT, QLD, NSW,
VIC, SA
Different Territories Have Different Requirements
Coffee Bar Culture- Business Done Over A Cappuccino
Not The Best Idea To Turn Up At Meetings With Shirt & Tie
Understand & Know Your Costs, including Super Annuation, Payroll
Taxes and FBT !!
Global Energy Group Asia Pacific Pty Ltd.
Taxes and FBT !!
Understand The Australian Industrial Relations Laws (IR)
21. Cost Of Living Comparison
Description Glasgow Perth Difference %
Imported Beer (0.33 litre bottle) £3.00 £4.99 +66.18%
Milk (regular), (1 litre) £0.90 £0.92 +1.95%
Loaf Of Bread £1.05 £1.76 +67.69%
Petrol Per Litre £1.34 £0.84 -37.78
Global Energy Group Asia Pacific Pty Ltd.
Rent 3 Bed Apartment Per Month £985.71 £2047.56 +107.72%
Buy Apartment Per m2 £1,887.50 £4,545.60 +140.83
Average From 50 Items +47.32%
Reference www.numbeo.com
22. • Typically UK Salary Multiplied By 1.5 Minimum For UK Expats
• Superannuation - 9.50% (WA, Varies Across States)
• Payroll Tax – 5.5% ($850k Threshold)
• Fringe Benefit Tax – 49% (Average)
• Private Healthcare (FBT)
• Company Car & Accommodation (FBT)
Cost Of Living Comparison
Global Energy Group Asia Pacific Pty Ltd.
• Company Car & Accommodation (FBT)
Good News………..Your Services Will Probably Be
Charged At Double UK Rates
23. Australian Projects
Global Energy Group Asia Pacific Pty Ltd.
Conventional Gas Resources
Coal Seam Gas Resources
Past Production
Gas Basin
25. Conclusion
• Plenty Of Opportunities Still Available
• Projects “On Hold” Still To Come On Line, Therefore Still
Considerable Investments To Be Realised
• Mining Sector Should Be Considered As A Possible Additional
Sector
• Opening An Office In Australia Can Seem Daunting Due To
Global Energy Group Asia Pacific Pty Ltd.
• Opening An Office In Australia Can Seem Daunting Due To
Costs, However Remember You Can Generally Charge More
For Your Products Or Services
• Look At Australian Websites Such As ProjectConnect & ICN
Gateway For Details On Projects
30. Emtelle’s Vision
• We will create value and make a difference everywhere
we engage with customers by listening, understanding,
innovating and adapting.
31. Introduction to Emtelle
• Emtelle been supplying telecommunications markets in
the UK continuously since 1980 and international markets
since 1996
– Headquartered in UK
• Manufacturing facilities in Jedburgh and Hawick
– Acquired majority share in Dantex in May 2007.– Acquired majority share in Dantex in May 2007.
• Manufacturing facility in Sonder Felding, Denmark
– Acquired majority share in Parixit Industries in October 2010
• Manufacturing facilities in Ahmadabad
– Exports to 64 countries
– Group Financial for 2013
– Sales in Europe of €101.3m, EBITDA of €13.5m, 300 FTE
– Sales in India of €22.5m and EBITDA of €0.0m, 700 FTE
32. Emtelle’s Business Segments in Australia
• Distributed Temperature Sensing for HV Networks
– Electricity Australia
– Value Added Partners Jubatus, Taihan, LS Cable
• Intelligent Transport Systems
– Road Tolling
– Bus Ways– Bus Ways
– Airports
• Specialist Military
– RAAF Bases
– Royal Australian Navy
• Campus and Major Buildings
– Theme Parks
– Hospitals, Prisons and Other Major Buildings
33. Emtelle in Australia
• Started exporting in 2000 using an Indirect Distributor
Model
– Geographical Coverage for Customers
– Lead Time
– Customs Clearance– Customs Clearance
• Established Emtelle Australia Pty in 2002 to allow Direct
Sales Model for Specific Customers
– Local Employees and Direct Sales activities created Taxable
presence in Australia
– “Local” sale
– Customs clearance
– GST recovery
34. Challenges to Overcome
• Protectionist Policies for Next Generation Broadband
– Buy Australian
– Domestic competition, conventional technologies
• Building Sales with Indirect Partners
– Our products are complex making it difficult to train competent– Our products are complex making it difficult to train competent
sales people in Indirect Channels
– Labour retention is a major issue for skills and competence in
Indirect Channels
– Unwilling to commit to expensive stock
• Project Sales in Niche Markets
– To operate within our Lead Time/Logistics constraints
35. Doing Business in Australia
2014
Iain Weir
Director of MarketingDirector of Marketing
Ian Macleod Distillers
Case study 2
37. STILL SCOTTISH - STILL INDEPENDENT
Ian Macleod Distillers is a Scottish, independent, family-owned
company established in 1933 – third generation Leonard Russell is
the current Managing Director.
In a marketplace increasingly dominated by a few multi-national
IAN MACLEOD DISTILLERS LTD.
GLENGOYNE.COM
In a marketplace increasingly dominated by a few multi-national
PLCs, our focus is on the traditional family values of premium
quality, value and customer service.
With the acquisition of Glengoyne Distillery (glengoyne.com) in
April 2003, Ian Macleod became a fully integrated distiller, blender
and bottler. In 2011 we also acquired Tamdhu Distillery on
Speyside.
39. STILL SCOTTISH - STILL INDEPENDENT
The company has combined sales of well over one million cases,
with over 80% being exported to more than 50 markets worldwide.
IAN MACLEOD DISTILLERS LTD.
GLENGOYNE.COM
We are the 10th biggest Major Scotch Whisky group in the world
based on market share percentages (SWR 2013).
Ian Macleod produces a range of blended and malt whiskies, as well
as rum, gin and vodka.
40. SCOTCH WHISKY – STUNNING GROWTH
• Exports generated £4.3 billion (value) for the UK
balance of trade in 2013. In (volume) terms, the
equivalent of 1.3 billion bottles.
• 25% of all UK food and drink exports
• Over 140 million cases exported to over 200
GLENGOYNE.COM
• Over 140 million cases exported to over 200
countries.
• Exports earned £135 every second to the UK trade
balance.
• At home £1 billion contributed to the Exchequer in
taxes.
41. SCOTCH WHISKY – STUNNING GROWTH
• Demand for single malt continues to grow globally, with
exports rising by 5% in 2013 to reach a record £820 million,
nearly a fifth of Scotch exports by value.
• Over 35,000 jobs across the UK are supported by the
GLENGOYNE.COM
• Over 35,000 jobs across the UK are supported by the
industry.
• 20 million casks lie maturing in warehouses in Scotland.
• £1bn invested annually across the industry’s supply chain.
• Scotch Whisky continues to attract younger, affluent
consumers in newly emerging markets.
42. HOW WE STARTED TO EXPORT/DO
BUSINESS IN AUSTRALIA
• We have been trading with Australia for over 20
years.
• Originally with a local retailer (since purchased by a
competitor) selling competitively priced own label
GLENGOYNE.COM
competitor) selling competitively priced own label
brands not single malts.
• Of the top 20 Global importing single malt markets
(SWA 2014), Australia is now #12 (volume) and #14
(value).
43. HOW WE STARTED TO EXPORT/DO
BUSINESS IN AUSTRALIA
• The Australian single malt market has increased by
over 34% (volume) and 36% (value) in the last 12
months.
GLENGOYNE.COM
• 4 years ago we met our current distributor via Hong
Kong Vinexpo exhibition. Forecasting the above
premiumisation trends, they wanted to increase their
malts range – The Six Isles, Smokehead and 14
months ago our full Glengoyne Highland Single
Malt range were added.
45. ASSISTANCE AND SUPPORT FROM SDI ETC.
• Whisky tastings with SDI in Sydney.
• Global funding/advice.
• Scotch Whisky Association (SWA).
GLENGOYNE.COM
• Scotch Whisky Association (SWA).
• Visit Scotland Events.
• Glasgow Marketing Board.
• Commonwealth Games media.
46. GENERAL TOP TIPS AND CONSIDERATIONS
FROM OUR EXPERIENCES
• Legislation – import/local mandatory labelling .
• Seasonality – temperatures, Father’s Day, Christmas.
• Associate with a proud Australian culture.
GLENGOYNE.COM
• Associate with a proud Australian culture.
• Food and wine appreciation - ‘Foodies’.
• Research/localise e.g. ingredients.
• Find that USP/link – e.g. Glenguin.
47. KEY ADVICE YOU WISH YOU HAD BEEN
TOLD IN ADVANCE
• Size of the country and the distances
between major cities e.g. Sydney and Perth.
• Major cities are mainly coastal.
GLENGOYNE.COM
• Major cities are mainly coastal.
• Distribution/logistics.
• Personal in-country Travel.
• Expense.
49. Doing Business in Australia
2014
Coffee breakCoffee break
10 minutes
50. Doing Business in Australia
2014
David Crook
Senior Trade and Investment CommissionerSenior Trade and Investment Commissioner
Australian High Commission, London
Government initiatives &
market opportunities
58. “With the Asia-Pacific region at
the centre of global growth,
Australia is in a unique position
as a safe and reliable location
from which to service that
market”market”
John Corcoran, Executive Chairman, Global Switch
Location
Australia is connected through geographic proximity, trade,
investment and cultural links with the fast-growing Asia-Pacific
region.
62. Traditional markets still strongest, and
investment from Asia is increasing
Australia – means opportunities
63. Want to learn more?
www.austrade.gov.au/invest
Austrade – for Investment Assistance
david.crook@austrade.gov.au
www.austrade.gov.au/investment
SDI – for Export Assistance
www.scottish-enterprise.com/international
Call and talk to an export advisor
64. Doing Business in Australia
2014
Ken Smith
Trade Commissioner for Europe and Agent
General for UKGeneral for UK
Trade & Investment Queensland
Opportunities in Queensland Australia,
including the Gold Coast 2018
65. • Population – 4.66 million
• Land – 1.73 million km2 ( 7 x size of UK )
• GSP – AU$295 billion (US$303 billion)
• Capital City – Brisbane (population, 2.19 million)
• Coastline – 6,973 kilometres
• Time Zone – GMT + 10:00
• Currency – Australian Dollar (AUD)
Queensland - Overview Queensland Overview
66. Why Queensland ?
• Located on Asia-Pacific’s doorstep, businesses in
Queensland are well placed to do business with Asia and the world.
• Queensland is forging ahead with new plans and initiatives to continue to
strengthen the State’s economy.
Why Queensland?
• The Queensland Government has embarked on a programme of capital
projects to upgrade and build new roads, railroads and
telecommunications networks.
• This, together with the most competitive payroll tax regime in the country,
makes Queensland an ideal place to do business.
75. • Australia currently has over $200bn worth of LNG projects committed or under
construction, and Queensland accounts for about 30% of these
• Australia is ranked 7th in the world - with respect to technically recoverable shale
gas resources (437 tcf, or about 65% of the US reserves)
• Queensland is a significant player in the Oil and Gas industry with
3 projects under construction – more in the pipeline > $60 billion committed
(over the three projects under construction)
Queensland’s CSG-LNG Sector
Source: Access Economics Investment Monitor ; IBIS World, Mining 2012
76. Current QLD CSG – LNG Projects
Sources: Project websites and media releases *Estimations only and subject to change
77. Upstream activities:
Drilling: an estimated 350-500 new wells per annum will be required to supply a
single two train project. This intensive drilling presents opportunities for drill rig
manufacturers and service companies to set up in Queensland.
Gas processing and gas/water gathering networks:
The number of wells completed each year per project
will have an ongoing requirement for associated
equipment and materials which could be fabricated in
LNG Supply Chain Opportunities
equipment and materials which could be fabricated in
Queensland.
Midstream activities: Queensland’s CSG/LNG industry
will require up to four underground high pressure gas
transmission pipelines, each up to 500km in length
linking the gas fields to Gladstone.
Downstream activities: The first stage development of the proposed
projects will see six LNG trains established by 2014-2016.
78. Opportunities – Food and Agribusiness
The Queensland Government is committed to the growth of existing traditional sectors
such as sugar, beef and grain production, as well as new emerging sectors within the
food industry.
• Meat processing
as the largest beef-producing state in Australia, Queensland has sophisticated
industry-related infrastructure and support services in place. The Queensland
Government has committed $32m into the beef industry to fund new and improved
bio-security and a network of world-class beef research facilities.bio-security and a network of world-class beef research facilities.
• Functional foods
Queensland’s biodiversity, wide range of climates, and variety of horticultural types,
supports the production of a wide range of food. The State’s reputation for
delivering clean, safe and high quality food products combined with an increasing
global demand for health-conscious products presents a unique opportunity for
companies interested in functional foods.
79. • A leading Aviation, Aerospace & Defence hub in Asia Pacific,
with a range of opportunities
• Queensland is the second-largest state for defence employment, home to a
quarter of Australian Defence Force (ADF) military personnel and a 26 per
cent share of national defence industry activity.
• Government has launched new Defence Industries Queensland unit and
appointed a defence envoy to grow the local defence sector and attract more
Aviation, Aerospace and Defence
appointed a defence envoy to grow the local defence sector and attract more
investment to Queensland. The unit will be a focal point for development of
the sector in the state with a long-term commitment to advancing
Queensland’s defence industries
• Design, manufacture, MRO, component manufacture and assembly, avionics,
training, professional services, R&D, UAVs, Scramjet technology, advanced
composites, rotary wing, general aviation
80. • Queensland Government committed to the development of the life sciences
industry (including therapeutic medicines and devices)
• Excellent R + D climate with A$ 3.8 bn spent on science infrastructure in the last
decade.
• 66 biotech-related research institutes employing approx 6,170 researchers
generating revenue of more than A$1 billion per annum
Biotech and Health
generating revenue of more than A$1 billion per annum
• More than 20 drugs are in clinical trials.
• Global successes: Gardasil, Vaxxas, Coridon, Peplin
• Opportunities in complementary medicines and nutriceuticals
81. Queensland’s Gold Coast will host in 2018, following Glasgow in 2014
2018 Commonwealth Games
82. Economic benefit for the Gold Coast is estimated at $2 billion
• There will be in excess of $500 million spent on sport and transport
infrastructure fast tracking existing initiatives
• Estimated 30,000 full time equivalent jobs in the tourism, construction
and events industries building
• The 2018 Commonwealth Games Athlete’s Village will be constructed
at Gold Coast Parklands, Southport
Commonwealth Games Infrastructure
at Gold Coast Parklands, Southport
• Redevelopment of Parklands will commence late 2013
• Construction of the Athlete’s Village will be completed late 2017 ready
to house 6,500 athletes and Games Officials for the April 2018
Commonwealth Games
• The Athlete’s Village will be a key legacy component of the Gold Coast
Health and Knowledge Precinct
84. For further information on opportunities…
Queensland Government:
•Trade and Investment Queensland - www.export.qld.gov.au
•Department of State Development, Infrastructure and Planning -
www.dsdip.qld.gov.au
•Projects Queensland - http://www.treasury.qld.gov.au/projects-queensland/
Queensland Resources
•Projects Queensland - http://www.treasury.qld.gov.au/projects-queensland/
•Department of Transport and Main Roads - www.tmr.qld.gov.au
•Department of Natural Resources and Mines - www.dnrm.qld.gov.au
•Queensland Treasury and Trade - www.treasury.qld.gov.au
•Department of Tourism, Major Events, Small Business and the Commonwealth
Games – www.dtesb.qld.gov.au
86. Ken Smith
Trade & Investment Commissioner - Europe
T: +44 (0)207 4208 761
E: ken.smith@tiq.qld.gov.au
Kael O’Sullivan
Business Development Manager - Europe
T: +44 (0)207 4208 777
Contact Us
T: +44 (0)207 4208 777
E: kael.osullivan@trade.qld.gov.au
Disclaimer
All figures are quoted in Australian Dollars, unless otherwise specified. This publication has been prepared by the State of Queensland as an information only source. The State of Queensland makes
no statements, representations or warranties about the accuracy or completeness of, and you and all other persons should not rely on, any information contained in this publication. Any reference to
any specific organisation, product or service does not constitute or imply its endorsement or recommendation by the State of Queensland. The State of Queensland disclaims all responsibility and all
liability (including without limitation, liability in negligence) for all expenses, losses, damages and costs you might incur as a result of the information being inaccurate or incomplete in any way, and for
any reason.
87. Doing Business in Australia
2014
Q&A panel session
Panellists:
Name Organisation
Julian Taylor SDI
John Brown National Australia Group
David Cross Global Energy Group
Steven King Emtelle
Iain Weir Ian Macleod Distillers
Name Organisation
David Crook Australian Trade Comm.
Ken Smith Trade & Investm. Qld
Stuart Russell Gov. Of Western Australia
Jenna Donaldson Qatar Airways
Euan Duncan MacRoberts LLP