BEEF AUSTRALIA 2015 Farmings Next Frontier: The Quest to Invest DAVID KRAUSE May 2015 Page 1 BEEF Australia 2015

OVERVIEW OF THE PRESENTATION Introduction What’s working What’s not working How it can be done better Page 2 BEEF Australia 2015 What is Investment Ready?

INTRODUCTION David Krause – Partner Corporate Finance, Food and Agribusiness National Leader Professional services firm – audit, tax and advisory services Australia – 9 offices, 160 Partners, over 1,200 employees International – over 1,200 offices, 144 countries, 56,000 employees Page 3 BEEF Australia 2015 About BDO

WHAT IS AN INVESTMENT READY PROPOSITION Professionalism Engage respected advisors – corporate, accounting & legal – have a structured process Market is well understood Strategy aligns to this Page 4 BEEF Australia 2015 Common Attributes

WHAT IS AN INVESTMENT READY PROPOSITION (CONT) Understand the right type of investor to approach Documentation to back up the strategy / business plan Have the right experience Reporting and governance Page 5 Title Common Attributes

WHAT’S NOT INVESTMENT READY Private family businesses – not prepared for investment Strategy not making sense Documentation not professional What's in it for the investor? No real understanding of the target investor Limited management experience Page 6 BEEF Australia 2015 Common examples

WHAT’S NOT INVESTMENT READY (CONT) Complex web of structures No financial governance or reporting Limited detailed business plan / strategy Often run the business to minimise tax rather than showing a profit Often large amount of debt limiting growth Page 7 BEEF Australia 2015 Common Problems – Private businesses

HOW IT CAN BE DONE BETTER Engage with clients early Set a strategy Ensure market is understood and pool of investors identified Put in place governance and reporting Page 8 BEEF Australia 2015 What we are seeing

HOW IT CAN BE DONE BETTER (CONT) “Market test” the opportunity first – to get feedback which you can then use to refine the product Make it clear and simple to understand - complex proposals make it difficult to sell Work within the village and share deals Page 9 Title What we are seeing

QUESTIONS…. Page 10 BEEF Australia 2015 Thank you May 2015