August 2011 NAB Business Managing Your Business Through Tough Times presented by: Charlie Falanga – Managing Partner Northern Territory

2 Relationship with your Bank The Changing Landscape due to the GFC - Did the relationship really Change?

3 Relationship with your Bank: There is nothing more important when running a business than having an open and honest relationship with your Bank. A) We tried to stay in regular contact with our clients B) Banks asked clients to regularly provide updates on the progress (good or bad) of their business. C) Tried to make as many on site visits with clients as possible to allow them to show case their business. This is the best way for a Bank Manager to “Get to Know your Business”. Was very important during the GFC BUT applies at all times.

4 Did Banks really stop lending? The answer is: No we did not. >But Banks were obliged to take the changing business circumstances into account when assessing credit. >Property market has slowed. >Mining, oil and gas is growing. >Retail sales have slowed. >Tourism slowed. >We all know what happened in the cattle industry. >Infrastructure spending increased. Having said that some operators have thrived. Strong management skills – aware of what was going on. > Central to all this was the relationship business has with its Bank.

5 Business Management >In times of uncertainty people manage their business’ differently. >We find there is usually a lag behind what some business operators see and do. >As bankers we try to point out what is happening in clients industry and provide relevant information to them. >Some do not like what they hear. >Some thrive on the information and manage their business accordingly. >But market trends are what they are.

6 Outcome from GCF >At nab we have only had 3 business’ fail, and not many overall across the industry compared to the rest of the country. >Some are struggling but we continue to work with them, Strong Relationship maintained. >I would rate the success of business during the GFC in the NT as “A-” >Working with your Bank, will always help you get through tough times. >The Better Banks understand your business, your business plan, your business idea’s the easier it is for your Bank to assist you.

7 Changing Face of Business in the NT >Not driven by a strong property market. >Mining, oil and gas will drive the economy well into the future. >Infrastructure spending will play a major part of the construction industry, both public and private. (Inpex $, New Darwin Goal $, Defence Housing $, Immigration $) >We (Banking industry) are doing our best, through our relationship with clients, to try and make them aware of the changing face of Business in the NT and some will adapt their business model to suit these changes. >We (nab) remain very confident of the future prospects for business in the NT, but the changes taking place must not be ignored.

8 Questions? Charlie Falanga Managing Partner Northern Territory