SIMPLE DIFFERENTIATION TABLE GOVERNMENT, BUSINESS AND NFP SECTOR GOVERNMENT SECTOR BUSINESS SECTOR NOT FOR PROFIT SECTOR OWNERSHIP Broad Community Shareholders or Partners etc Community members having interest (members) OPERATING CONTROL Minister Government Department Directors Management PRIMARY DRIVER Public GoodWealth GenerationPublic Good OPERATING PREMISE Efficient and effective use of allocated public funds for the public good. Effective and efficient use of owners equity to achieve priority business objectives in pursuit of wealth generation. Effective and efficient use of self-generated and/or competitively secured public funds for public good. COMPETITIVE ENVIRONMENT Relative monopolyUsually highly competitive Usually moderately competitive (and becoming more so)

Compass Profile Company limited by guarantee registered with ASIC A charitable organisation having, PBI, ITEC & DGR status A Class 1 registered Community Housing Provider under the Housing Act 2000 (NSW) Has community corporate membership base with democratically elected skills-based board Core and traditional business is tenancy and property management for low to moderate income households predominately via government programs Additional business involves project management of property upgrading and development A proportion of additional business surpluses fund our client focused GROW program – a major community development initiative

Compass Profile continued Compass Profile continued Compass is the largest regionally based community housing provider in Australia Head Office at Hamilton and Service Centres at Newcastle, East Maitland, Central Coast, Muswellbrook, Dubbo and Broken Hill Staff of 98 Aspirations and programming re social inclusion, sustaining tenancies under GROW Program Achieved a silver level award with DECCW for environmental sustainability

Total Sustainability Program - GROW GROW A Compass Total Sustainability Initiative Green (Environmental sustainability) Neighbourhood and building design and development for 21C Retrofitting environmental features to dwellings Greening the workplaces Responsible (Social Sustainability) Community contribution Economic participation Generational advancement Tenant Participation Opportunities (Corporate sustainability) New environmental business developments efficiencies & improvements Wellbeing (Personal sustainability) Health & Nutrition Esteem and well-being Security of tenure

Compass is a founding member of PowerHousing Australia – an industry representative body which has a membership of 30 large NFP housing organisations with development focus. Member of International Housing Partnership with over 160 NFP housing providers from USA, UK, Canada and Australia. Managing circa 3,300 properties with annual operating activity of $35M and net assets of $200M. It is anticipated that Net Assets will increase to circa $300M by 31 December 2011 with properties under management to increase to 3,500. STEPS Housing, Tasmania, is a subsidiary of Compass Housing Compass Profile Continued

Compass Profile Continued Compass Profile Continued

Debt/Equity/NRAS Schemes combined:  Grants ($8.9M) + Equity ($2.9M) + Debt ($7.9M) for 69 new dwellings Social Housing Growth Schemes combined:  Grants ($22.2M) + Debt ($1.5M) for 90 dwellings Future Planned Developments:  Debt ($38.6M) + Equity ($28M) to develop 217 dwellings over next 10 years – with 148 (68%) of those in the next two years The combination of leveraging assets, equity and grants for developments

Preparing for Growth Preparing for Growth “Okay, whose in charge of track building??”

Preparing for Growth continued Organisational Design (Transformational):  Plan years ahead despite uncertainty;  Establish and promote clear vision, mission, values  Paradigm shift – reactive dependent to responsible partner Organisational Structure  Skills-based independent Board and sub-committees  Skilled Executive Staff  Strong reporting and administration regime  Establish growth principles to increase staff engagement  Particularly recruitment and advancement  Pushing down responsibility and reward mechanisms

Preparing for Growth continued Prepare stakeholders: board, staff, clients etc. Proper Business Planning:  Strategic and Operational,  Budgets (short and long term),  Asset Management, HR and IT,  SWOT, PELTS analyses Increase stakeholder engagement strategies Identify, treat and monitor major risks Increase objective external audit processes (separate audit firm, Registration and Accreditation, OHS, ISO9000)

Thank you for your invitation to present this information to your forum. Greg Budworth, CEO (02) Compass CEO Contact Details