1. Capricorn Co-operative A co-operative model and the context of Australian trade October 2015

2. Capricorn Group Capricorn’s purpose is to help members build value, efficiency and sustainability in their business and community. slide 2 Capricorn Group Automotive Capricorn Finance Capricorn Travel Risk and Protection Financial Services¹ Other Investments ¹Strategy currently under development

3. What is Capricorn? slide 3 Capricorn is a Co-operative that links small businesses with bigger businesses for their mutual benefit Our members are like-minded business owners (automotive repairers) who are looking to maximise their collective efforts in gaining access to parts and services to support their businesses Capricorn provides the contacts and infrastructure to enable this to happen

4. What is Capricorn? Capricorn is a Co-operative that links small businesses with bigger businesses for their mutual benefit slide 4 Capricorn has been operating in Australia for 40 years and is Australia’s largest Automotive Parts buying group Each of our members are shareholders and Capricorn is Australia’s 4th largest Cooperative Capricorn has the combined buying power of over 16,400 Member businesses in the Automotive Industry being supported by around 2,000 suppliers With annual turnover in excess of $1.41 billion

5. Who are our members Small to Medium Enterprises that operate in the Automotive Service and Repair Market slide 5 Automotive workshop categories Agricultural Auto Electrical Commercial Truck Convenience Store (Fuel Only) Engine Re-conditioner Engineering/Industrial Marine Mechanical Workshop Panel & Paint (Smash Repairers) Retail Store (Reseller) Service Station & workshop Transmission Tyre & Suspension Our members run automotive workshops that cover all spectrums of the automotive service and repair market The average profile of a Capricorn member workshop is: Small to medium business 3 mechanics 4 bays Operating 5 and a half days a week Members embrace Capricorn because we make it easier for them to do business

6. How it works for members Capricorn facilitates e-trade activities on for members slide 6 Each member business is given a personal account number The member orders parts directly with the supplier, as they do now – The goods still get delivered as usual – They receive a priced invoice on delivery – Credits are treated the same way as they are now The member receives one itemised statement for all purchases made during the month on approximately the 10th working day of the next month They reconcile one account and pay Capricorn on or before the last working day of that month (30 day trading account) Capricorn pay the suppliers on their behalf

7. What it means to be a member Capricorn’s key goal is to make trading easier slide 7 One account with over 5,500 supplier locations Access to the Capricorn Purple Pages (Supplier Directory) Access to Capricorn Risk Services (Capricorn Mutual & Capricorn IS) Access to Capricorn Finance No minimum or maximum monthly purchases No cost to them - they only pay for goods as invoiced Leveraging strength in numbers (No member should pay more) One payment for all purchases regardless of number of suppliers Easy payment options: ANZ deposit book/direct credit, direct debit, B- Pay & POSTbillpay

8. What's in it for the member Ease of trade and exclusive member benefits slide 8 Members own shares in Capricorn and have the opportunity to receive dividends on the shares that they own Member benefits include a 1.5% return for their purchases on their Capricorn account paid as reward points – for every dollar that they spend with a preferred supplier they receive 1.5 reward points Reward Points can be redeemed by: Investing in more Capricorn shares Payment towards their Capricorn account Travel through Capricorn Travel Gift vouchers for Myer, Harvey Norman, Liquorland/Vintage Cellars, Kmart, Coles, Target, Woolworths or Bunnings

9. How it works for Suppliers Capricorn offers sales and administration benefits to our suppliers along with sole access to Members slide 9 Guaranteed 30 Day payment No need for credit checking No bad debts, no “bounced cheques” Administration cost slashed (banking, postage, chasing cheques) Target marketing access to thousands of automotive businesses Marketing access to flyers with statements Inclusion in Capricorn Events Capricorn Reward Points gives suppliers a sales advantage Preferred Supplier listing in Purple Pages Member Penetration Reports tracking suppliers sales to our members Access to our Field team

10. Australian Co-operatives Australian industrial landscape Export & Import

11. Co-operatives and Mutuals (CMEs) in Australia Australia has a diverse co-operative landscape with a high level of participation per head of capita slide 11 The first Australian consumer co-operative was registered in 1859 Mutual insurers and friendly societies provide insurance to more than 2.3 million Australians More than 13.5 million memberships generating a turnover of over $25 billion per annum Customer owned banks, credit unions and building societies have 4.5 million members Motoring organisations are owned by more than 7 million members More than 15% of ALL Australian Agriculture is managed by CME’s CMEs including member- owned superfunds contribute around 7% of our country’s earnings

12. Co-operatives and Mutuals in Australia Australia has a diverse co-operative landscape with a third of the Top 100 Co-operatives turnover being sourced from Agriculture and Fishing – key Australian export markets slide 12 Source: National Mutual Economy Report, 2014

13. Co-operatives and Mutuals in Australia Australia has a diverse co-operative landscape with a high level of participation per head of capita slide 13 The above represent a selection of Australian Co-operatives participating in some of Australia’s key Export and Import markets

14. Business Council of Co-operatives and Mutuals slide 14 The BCCM was formed in 2013 following the United Nations International Year of Co-operatives 2012. The BCCM is the national peak body representing the co-operative and mutual models of enterprise in Australia. We represent various sectors in the economy including agriculture, insurance, banking and finance, personal services, shared services, wholesale and purchasing, retail and housing. Our members include some of Australia’s largest companies including the CBH Group, Capricorn, The Co-op, NRMA and HCF along with smaller organisations across the country.

15. Business Council of Co-operatives and Mutuals slide 15 The BCCM is committed to: Providing leadership in research, education and advocacy Encouraging CMEs across all sectors to share best practice to foster partnerships Promoting the role of CMEs in the national economy Increasing the number of CMEs in the economy

16. Business Council of Co-operatives and Mutuals slide 16 Some milestones reached: Federal Senate inquiry: A federal inquiry has been established to examine the role, importance, and overall performance of co-operative, mutual and member- owned firms in the Australian economy. Report due in February from committee. Government reviews: Co-operatives and mutuals have been lauded in federal government reviews over the past year including a competition policy review, a review into Australia’s welfare system and a White Paper on Agricultural Competitiveness Funding: The Federal government have committed $14 million in funding in agriculture for a two-year pilot programme to provide farmers with knowledge and materials on cooperatives, collective bargaining and innovative business models

17. Co-operatives and Mutuals in Australia A brief selection of active co-operatives in some of Australia’s agricultural export markets and industry statistics slide 17 Meat & Fish contributed $8.7bn towards Australian exports Fruits contributed $500m towards Australian exports Dairy contributed $2.72bn towards Australian exports Source: Australian Food Statistic Report, 2012-2013 Wheat contributed $6.75bn towards Australian exports Cotton contributed $2.57bn towards Australian exports

18. Co-operatives and Mutuals in Australia slide 18 Capricorn and the Business Council of Co-operatives and Mutuals Australia welcomes the opportunity to start a co-operative conversation on trade opportunities. Please contact either Melina Morrison CEO Business Council of Co-operatives and Mutuals E: melina.morrison@bccm.coop melina.morrison@bccm.coop Greg Wall Group CEO Capricorn Society Ltd E: greg.wall@capricorn.coopgreg.wall@capricorn.coop

19. Thank you slide 19