Business leaders in The Australian’s CEO Survey were asked:

1. Has the corporate outlook improved and if so what are you investment plans?

2. What is the disruptive technology you fear most, how will you beat it and name the three other biggest challenges and opportunities?

3. What are your shareholders’ key concerns? 4. What are the top three issues facing the nation and how should

they be resolved? 5. What should be top of the tax reform agenda?

David Attenborough, Chief executive, Tabcorp 1: The indicators continue to show consumer sentiment is subdued and the outlook can be

described as uncertain. That said, we have started the 2015 financial year well, with 6.6 per cent growth in group revenues. We will continue to channel our capital into products and technology where we are targeting high growth.

2: Many observers said our competitors, by leveraging mobile technology, would disrupt

our business model. However, we have successfully met this challenge and we are realising strong growth in digital wagering, of which mobile devices now account for more than 60 per cent of turnover. We are the largest digital wagering operator in the market and in FY14 had $1 billion more in digital wagering turnover than our nearest competitor. There are three technology-related trends that we are most focused on leveraging – mobility, cloud and big data. We have embraced mobile technology, we are increasingly moving to cloud-based infrastructure and we are currently building our internal capability to manage and extract value from our extensive data warehouses.

3: Our shareholders are concerned about the competition facing our business from

unlicensed offshore wagering operators and from licensed online corporate bookmakers. Unlicensed offshore operators are taking wagers from Australians without contributing in terms of taxes and product fees, while the licensed online corporate bookmakers pay substantially less than Tabcorp does in terms of wagering taxes and racing industry fees.

4: The top three issues facing the nation are:

Education – ensuring we have the teaching capability and appropriate curriculum to train young Australians to meet the challenges and opportunities of a rapidly changing global environment.

Productivity – ensuring we are building greater flexibility into the way Australian businesses operate through deregulation and creating an enabling environment.

Security – ensuring Australia meets the security challenges of the uncertain global environment through collaboration and by resourcing security agencies accordingly.

5: Australia should look to simplify and broaden the base of the tax structure. From

Tabcorp’s perspective, we continue to advocate a uniform and national approach to the taxation of wagering businesses.

Andrew Bassat Chief executive and co-founder, Seek 1: Over the last 12 months we have seen a gradual but very steady improvement in new job

ad volume in Australia and new job ads are now more than 13 per cent up on the same time last year. This, plus positive forward comments from our advertisers do give us some confidence that the corporate outlook has improved. With regards to Seek’s investment plans, we tend to look across a longer-term horizon and invest consistently through all parts of the cycle. We are currently investing heavily in technology and product to deliver more value to our candidates and hirers. We are also investing aggressively across all of our international markets especially in China, Southeast Asia and South America as well as in expanding our education businesses. We are hopeful that all these investments will generate significant value to Seek shareholders over the next three to five years.

2: We have been operating for just over 17 years now so we have seen our fair share of

innovation and disruption in technology and competition. To date, we’ve managed to maintain our strong position by striving to always remain a leader in using technology to continually improve the services that we provide to our audience. If we continue to do this, we are confident that we can avoid being disrupted. An additional challenge is that we are now competing globally for best-in-class talent, which can be tough to find in certain key areas. A significant new opportunity for us is our recent acquisition of JobStreet, which together with JobsDB, which we already owned, positions Seek very strongly across Southeast Asia. We are in the process of combining the two businesses and we are very excited about the opportunity in Asia, which offers significant long-term growth opportunities.

3: Our larger and more sophisticated shareholders understand and are supportive of our

long-term horizon. As a result, they are focused on the right issues of ensuring that we retain our strong competitive position in all of our markets and continue to evolve and improve the value proposition that we are providing. They are also interested and focused on our new international markets and ensuring that they are updated on our strategy and progress in these markets.

4: The three key issues facing the nation (and most other major nations) are:

Adapting to the rate of change in technology and innovation. I believe we need to establish a national innovation agenda to ensure we remain at the forefront of technological and scientific innovation.

Upskilling our labour force to adapt to changing workforce needs. We need an increased level of alignment and responsiveness between the learning ecosystem and workforce needs. Government, businesses and education providers need to be more collaborative, adaptable and flexible to address the skills gaps and long-term requirements of the labour force.

Undertaking structural reform. We need to ensure that reform is not protectionist and enables businesses to hire, invest and grow so that innovation and adaptability become cornerstones of the future.

5: Seek fully supports the efforts being made by the Organisation for Economic

Development and Cooperation to tackle base erosion and profit shifting, and hopes that this will assist in levelling the playing field for Australian-based organisations competing in the international arena. Given that our tax integrity rules are already among the most robust in the world, Australia’s role should be to support the OECD in its work and share the benefit of our experience.

Iñaki Berroeta, Chief executive, Vodafone Australia 1: The outlook is quite positive with good overall Australian economic performance

combined with consumer confidence about our products and service building, as Australians’ passion for smartphones and tablets continues unabated. Our multi-billion dollar turnaround plan has traction, and I’m confident the signs of growth we are seeing will continue in 2015. We’ll continue to invest to complete the turnaround, the two key programmes being continuing strong investment in our network, and in our customer care operation based in Tasmania, where we are doubling the size of our workforce to scale up our onshore customer service.

2: We don’t fear technology: our brand’s success worldwide is based on embracing it.

Telecommunications companies are leading the next phase of the digital revolution. One of the biggest challenges for us, and the Australian telecommunications industry as a whole, however, is a market structure and policy and regulatory environment that is protecting some players from competition. This inevitably costs consumers because it leads to slower innovation and higher prices for many consumers. I am particularly concerned for regional and rural Australia which has little choice in mobile services. The Internet of Everything will drive the next step change across telecommunications and many other industries. Increasingly everything in this world – from toothbrushes to telecommunications – is connected, which has the potential to dramatically improve productivity. We are embracing this revolution and are well placed to deliver connected homes, cars, energy and medical systems.

3: Our shareholders have invested $11 billion in telecommunications infrastructure over the

past 21 years and they’re looking forward to seeing Vodafone Hutchison Australia return to profitable sustainable growth. We’re on track to deliver this in 2015. They do share our concerns regarding the structure of the telecommunications market in Australia, that there is some imbalance in the conditions here compared to what you expect to see in a normal competitive market. Ideally, you’re operating in a place where there’s a level playing field, but they are concerned that this is not yet in place in Australia. There is also great concern that the monies Telstra will receive through NBN payments have the potential to further distort the market.

4: The top three issues facing the nation are:

Productivity and sustainability – ensuring we continue the transition to a high-productivity, high-innovation economy in a sustainable way.

Competition in telecommunications will be essential to this. Empowerment of regional Australia – ensuring all Australians benefit from employment opportunities, infrastructure, and innovation.

How we sustain Australia’s world-leading prosperity and maintain our international standing.

5: There are serious issues within the telecommunications industry given the numerous

subsidies that have been introduced into the market over the years. These were well intentioned, but have had the ultimate effect of undermining competition. Programs such as mobile black spots offer an opportunity to test and prove a new model of competitive subsidies that deliver both investment and competition.

John Borghetti Chief executive, Virgin Australia 1: While general consumer confidence remains subdued, we are continuing to see growth in

corporate travel. The domestic airline industry has been impacted by significant overcapacity over the past couple of years, however there are signs that conditions are moderating. We continue to invest in enhancing the customer experience and to improve our efficiency as a business.

2: The impact of mobile technology changes the expectations of customers and employees

in terms of access to instant information. It’s not a case of beating it, but rather working together with our suppliers to ensure we can meet the needs of our customers without adding unnecessary costs. The other biggest challenges and opportunities include building a strong customer-centric business, the growth of the middle class in Asia and employee engagement.

3: For all of our shareholders, it is about having a strong and consistent strategy, driving

returns and contributing to the Australian economy.

4: The top three issues facing the nation are:

Adequate infrastructure: better planning, greater cooperation and improved funding models.

Fostering a culture of innovation: collaboration and appropriate regulation, incentives, education and training.

A more inclusive society: creating opportunities for enhanced participation in education, the workforce and the community.

5: Simplification. Governments in Australia levy at least 125 different taxes, but the largest

10 generate over 90 per cent of the revenue raised. The level of inefficiency and duplication is a real burden on national businesses in particular.

David Bortolussi Chief executive, Pacific Brands 1: Notwithstanding ongoing challenging market conditions, our recent business divestments

will dramatically simplify Pacific Brands business and significantly improve the overall quality and growth prospects of the brand portfolio. Our strategy is to focus on further investment in our key brands, wholesale partnerships, retail stores and online, expansion into new categories and international distribution for selected brands.

2: Technology is a significant opportunity for our business. Our categories – particularly

underwear and kids’ clothing – are ideally suited for our customers to buy online. They know their size, can rely on our quality, and the full breadth of our range is available in the one place. The challenge in this space is to continue to improve how we engage with our consumers in a one-to-one relationship with personalised and targeted offers. As retailers we will also need to embrace new forms of payment technology such as Apple Pay in order to maximise our opportunity, particularly with 15 to 30 year Olds. Two challenges that are front of mind are ongoing weakness in consumer sentiment and mitigating the impact of continued depreciation and volatility in the Australian dollar. Our opportunities lie in continuing to innovate and invest in our leading brands. Even in the current environment, our consumers are willing to pay a premium for high-quality basics, innovation and fashion.

3: Our shareholders are focused on the same priorities as my management team and I,

which are to mitigate the impact of challenging market conditions, depreciating Australian dollar and increasing private label penetration; and to stabilise earnings through a balanced

growth and disciplined cost agenda.

4: Rebuilding consumer and business confidence, by stopping talking down the economy,

and instead focusing on a credible long-term investment plan for growth as we transition away from a resource-led economy.

5: Tax reform requires a comprehensive review of the Australian tax structure and transfer

system – with no exclusions from scope – to improve the efficiency of the system and remove unnecessary complexity. Two specific priorities are:

Review of import duties and their effectiveness and relevance: business has evolved significantly since duties were first introduced, and an efficient global economy requires less trade barriers.

Reducing the corporate tax rate: Australia’s ability to attract capital is significantly disadvantaged by our comparatively high corporate tax rate.

Bernie Brookes Chief executive, Myer 1: I’m excited about the recent launch of our initiatives such as Christmas Giftorium in all

stores, and our new branding and advertising campaign which will help drive sales over the important Christmas and stocktake sale period. We have invested significantly this year in new stores, refurbishments, online and our exclusive brands. We will start to see the benefits of these investments in FY2015, and we will continue to invest in Omni-Channel, Myer Exclusive Brands and customer service innovation over the course of the year.

2: Rather than fear technology, we are embracing it through our Omni-channel strategy

which complements our physical stores. Technology has enabled us to introduce iPads with a customised app in all our stores so customers can purchase from an extended range of products that are not normally available at their local store. Click and collect delivery is available at all stores so customers can purchase products online and collect them from their nominated store. Once Christmas parcel delivery deadlines are met, click and collect means customers can still shop online and receive their gifts in time for Christmas. Mobile commerce continues to grow in popularity and is an important way to enhance customer engagement. We have improved the mobile functionality for our online store and our Myer One app enables members to receive and redeem rewards cards via their mobile device.

3: Our shareholders want to know that we have a solid strategy in place to drive returns and

a strong leadership team to guide the business. I have great confidence in the team I am leading, and the arrival of three new senior executives has brought additional retail experience, new ideas, and enthusiasm. We continue to evolve our strategy and invest in the business to lay strong foundations for future growth.

4: From a retail perspective, subdued consumer sentiment, inconsistent laws, and the

depreciation of the dollar are key issues. We believe that governments need to work harder to create the right conditions for business to thrive; that includes providing clear direction on budget measures and consistent trading regulations across the country.

5: We would like to see the federal government remove the unfair GST exemption for

overseas companies selling goods into Australia. Myer collected over $300m in GST from our customers in the last financial year, and we pay income tax of over $49m and payroll tax of over $20m. Offshore retailers pay none of this and it is important that this loophole is closed. The retail industry has argued strongly that the GST exemption issue must be on the agendas of federal and state governments, but action has still not been taken.

Michael Cameron Chief executive, GPT 1: Market activity and confidence have definitely returned this year. Our GPT Metro Fund

has just completed a successful IPO, joining a number of major floats in 2014, with Medibank Private’s listing to cap off a strong year. The country seemed to shake off the Budget woes in May and the economy is ticking along well heading into 2015. At GPT we’re actively looking at well-priced investment opportunities, which will generate long-term value for our shareholders.

2: We are always exploring new disruptive technologies to see where we can gain

competitive advantage. The biggest disruption for the property sector has come from the advances in mobile technology that mean many workers don’t have to be in the office to do their job. Rather than resist this, GPT has embraced it. We’ve set up co-working facilities in Sydney and Melbourne, where people can rent desks, boardrooms and meeting rooms. It’s ideal for freelancers and entrepreneurs but also works for corporate employees, who can work from locations like our Rouse Hill facility and save commuting to the city. This trend will grow as businesses realise flexible working improves their employee productivity and retention. A big opportunity for all businesses in 2015 is to continue to drive gender diversity in senior management. GPT made significant progress on its diversity targets and will have women in 35 per cent of all senior leadership positions by the end of 2014. Businesses must recognise workplace diversity is not just about social responsibility but also provides a competitive advantage.

3: Shareholders want to know that our investment decisions will not only produce profits

now but also deliver long-term value creation. We’ve built our business, and geared our strategy, around ensuring that growth in earnings is matched by a focus on delivering consistent total returns, over time .

4: The three biggest issues facing the nation are that we have an economy that’s relying too

heavily on a residential property boom, we have a stalled federal government policy agenda, which is the result of a fractured Senate, and our country seems to be unable to have meaningful policy discussions unless they can be described in 140 characters or less. Australia can only successfully transition from being a resources-led economy by vigorously pursuing industrial relations reform and tax reform that will encourage investment and stimulate activity in the non-mining sectors. Unfortunately for the government it is near impossible to please all of the single-issue pressure groups in the Senate to mobilise them to pass important legislation. It is the disproportionate level of power given to these individuals and the lure of the 24-hour news cycle, which has lowered our political discourse.

5: The debate about multinationals and profit shifting is just one part of a much broader

discussion that needs to be had. We shouldn’t get distracted from pursuing important tax reforms and policies that stimulate economic investment and workforce participation. The government needs to cut inappropriate taxes that impede investment while finding ways to broaden the indirect tax base to strengthen its fiscal position. Australia needs to recognise that payroll tax, stamp duty and land tax all discourage economic investment and can stifle growth and employment. It should be looking to broaden the GST base and reviewing the current mix between direct and indirect taxes to enable a sustainable funding model for the states. There’s also an opportunity to cut red tape and compliance costs by introducing the managed investment trust regime, which would provide certainty for investors and fund managers.

Michael Clarke Chief executive, Treasury Wines Estates 1: The corporate outlook in Australia is more or less the same as at the comparable time

last year; in my view there has not been a significant change in perception over the last 12 months. From a TWE perspective, we are committed to stepping up investment in the consumer marketing of our brands over 2015 as we reset our cost base and focus on building a brand-led organisation.

2: I don’t fear disruptive technology, but rather look to embrace it. Change is a constant in

business life and I am a firm believer in seizing the opportunities presented by technology, even in traditional industries like wine. Linked to this point is the huge opportunity that exists for our sector in the social media space. Technology is changing the way people shop and engage with brands, and wine is in many ways the ideal product to meet the growing desire for a personal offer and to be part of a like-minded (social) community.

3: Short-termism in the market! Our business, and our industry, is one which takes time to

make, market and sell its product, and we are fortunate that our major investors understand this and embrace TWE’s strategy to deliver long-term sustainable growth. However, our shareholders are also keen that the company does not repeat the sins of the past and taking a long-term view does not equate with failing to take action to tackle the short-term challenges that act as barriers to growth.

4: The top three issues facing the nation are:

Tax – we urgently need major reform, and ideally outright removal, of the wine equalisation tax rebate which underpins so much inefficient and unsustainable wine production in Australia.

Trade – an ongoing focus on free-trade agreements with Australia’s major trading partners is required to stimulate and grow the domestic economy.

Immigration – we need a sensible and rational approach that recognises the skills needs of business and the economic contribution of migrant communities.

5: I passionately believe we need fundamental reform, or outright removal, of the current

WET rebate. Without question the rebate is preventing vital industry restructuring by halting the removal of excess and unsustainable grape supply. It is also a tax instrument that has been widely rorted with costs increasing year-on-year; not to mention that it is paid to competitor winemakers from outside Australia. Removal would enhance the federal budget and deliver a win-win for the government, local communities and the Australian wine industry because the WET rebate is a major contributor to the excess supply and cheap wine that can lead to irresponsible alcohol consumption.

Robert Cooke Chief executive, Healthscope 1: For us the corporate outlook hasn’t changed meaningfully. Projected healthcare

expenditure continues to rise consistently with the government remaining incentivised to direct volumes through the private system. There has been some policy changes put forward, but these remain uncertain. In response to increased demand and the ageing of the population, we have a clear brownfield investment program over the next few years and it is difficult to envisage any change to this strategy.

2: Technology in our industry tends to be a good thing but it’s generally incremental; for

example, e-health records, genetic testing, remote GP consultations over the internet, advances in surgical equipment. At the moment, any system change requires cooperation

across the various participants and, as we have seen with the government e-health initiative, this proves to be costly and difficult.

3: Health fund strategies – there is a lot of noise around the need for health funds to cut

costs and premiums. Our strategy in promoting a pay for clinical performance model will provide further value to health funds and their members and, ultimately, lead to fewer preventable events and reduced premiums. Potential for changes to government policies that affect private health insurance or shift volumes back toward the public sector via an alternate mechanism – neither of these is really practical given funding pressures at both a state and federal level. In reality, all the signs point toward further privatisation. An example is the Northern Beaches’ public-private partnership in NSW, which will see a 488-bed state-of-the-art hospital built and run by Healthscope .

4: The top three issues facing the nation are:

Effectiveness of government – where do I start? Over the last five years the instability in government has prevented parties from focusing on the real issues and capitalising on the relative strength of our economy – the poor execution of the introduction of a mining tax is an example. Ensuring greater support for the introduction of key policies through greater consultation with industry and the broader public would be a move in the right direction.

Productivity and sustainable growth – with the speed of globalisation, Australia needs to find its niche. Leveraging the strength of our education system, we should look for ways to become a R&D, innovation and technology hub and is likely to require further support from the government to drive the agenda. The China free trade agreement is a great step in the right direction as I believe Australia and Healthscope will embrace this new market opportunity. Ageing population and increased cost of healthcare – ensuring efficiency in the system is critical, and the private healthcare sector could and should play an increasing role.

5: Tax incentives that support the development of Australia as an R&D and innovation hub,

including consideration of whether the current personal tax thresholds attract/retain the best and brightest to reside in Australia.

Geoff Culbert Chief executive, GE Australia, New Zealand and PNG 1: It depends on which sector you are talking about, but overall we remain optimistic. The

mining cycle will eventually turn. The next wave of LNG will bring new opportunities, as will the privatisation of government infrastructure assets. The renewables sector will grow once certainty is reached on the renewable energy target scheme. We will continue to invest in all these sectors, with a particular focus on technology. Our customers are looking for gains in productivity and efficiency, which we can help them achieve through investment in software, analytics, remote monitoring and diagnostics.

2: Technology and innovation is disrupting the world at a faster pace than anyone could

have imagined, but you beat it by embracing it. You seek to be the disruptor, rather than the disrupted. As a company, GE invests more than $5bn a year in research and development. We have invested more than $1bn in software development capability. These investments enable us to deliver better outcomes for our customers, which in turn helps us remain competitive.

3: Our shareholders want us to grow while generating cash and delivering valuable financial

performance. We have positioned GE to lead in the growth themes of the era, to lead in new technologies that drive efficiencies for our customers, and to move faster with lower costs.

Our ability to innovate is particularly important to shareholders in a volatile, slow-growth environment.

4: I would focus on one major issue – volatility in an uncertain and increasingly competitive

world, where demand for our natural resources will continue to ebb and flow. We can resolve this challenge by broadening the base of our economy, with a greater focus on technology and innovation. This will require investment across the entire ecosystem – from the classroom to the boardroom. We need greater investment in STEM (science, technology, engineering, and mathematics) education, we need to create an environment where innovation and entrepreneurialism can flourish, we need to make it easier for start-up businesses to emerge, and we need to encourage more risk taking.

5: We need to reduce the complexity and red tape of our tax system. Today we have 123

different taxes. Reducing the number of taxes will reduce an enormous amount of inefficiency. An example is payroll tax – labour costs in Australia are among the highest in the world and we shouldn’t tax job creation and employment.

Bruce Dixon Chief executive, Spotless 1: The corporate outlook has improved for Spotless, particularly in outsourced work from

the government, healthcare, education, and resources sectors. These sectors are under pressure to reduce costs and are looking to companies such as Spotless to provide efficiencies. Investment plans are to concentrate on organic growth, however we are also experiencing bolt-on opportunities to add depth to some of our services.

2: We don’t rely heavily on technology given we are a labour-based business. The three

biggest challenges would be; ensuring we have a steady supply of quality management to cope with the growth, ensuring we never underquote a contract (i.e. not chase work unless it has appropriate margin), and getting governments to make the tough calls by implementing efficiency programs. Opportunities include taking advantage of a large pipeline of potential outsourced work, currently being tendered on; acquiring bolt-on acquisitions to strengthen and extend our service lines at attractive multiple; and continually ensuring we are the most efficient organisation we can possibly be.

3: Shareholders’ key concern would be that we achieve prospectus numbers, which we will.

4: We are internally focused so not impacted by external policies.

5: Again from a Spotless perspective, the fringe benefit tax allowances provided to staff

working in not-for-profit organisations such as hospitals needs to be addressed. This places a false barrier to efficiencies and is never taken into account when assessing tenders from commercial companies that pay the tax. An equalisation policy is needed to correctly assess benefits.

Yasser El-Ansary Chief executive, Australian Venture Capital Association 1: There’s no question that 2014 has seen a significant pickup in business and consumer

confidence compared with recent years. But the big challenge for us is to make sure that the outlook remains positive – we can’t afford for there to be any major global economic shocks because that will have a significant dampening effect right across the market. The improved economic outlook this year has served as a catalyst for private equity firms to deliver very strong returns back to their investors, and then head back to the market and look for new opportunities to invest in Australian businesses that have standout growth potential.

2: Not applicable

3: One of the biggest challenges confronting the private equity and venture capital industry

in Australia relates to the domestic fundraising environment. We have one the world’s biggest accumulated savings pools (our superannuation system), but in a domestic context we are not doing enough to convert that capital pool into a greater level of investment into high-growth potential Australian businesses. The one issue that is always at the top of mind for investors in private equity and venture capital is policy certainty. And that’s understandable, because when you’re locking your money away into a fund for anywhere from seven to ten years, you can’t afford major policy changes that undermine the assumptions you have made about things such as the tax rules that will apply to the investment.

4: We need a more stable political environment at the federal level. The unpredictability of

the Senate means it is near impossible to know whether a policy announced by the government will ultimately be implemented or not. The real issue for the market with that scenario is that it makes it very difficult for businesses to make informed decisions about their short- and long-term investment plans. I think it’s absolutely vital that by the time of the next federal election, we need to have taken steps to avoid the risk of this sort of thing happening again. The long-term sustainability of our nation’s finances is something that impacts each and every person in our society. We need to ensure that our federal finances are being managed in a way that safeguards our future prosperity. We have seen some major structural forces at play across our economy over the past decade, and we will continue to see more over the years ahead. All of our elected representatives in parliament have to acknowledge these changes, and work through solutions that properly address the challenges – that’s what everyone expects them to do. We have to continue to invest in our education system to take it to a much higher world-class standard. While there are many things about the future that are difficult to predict, the one thing we do know is that education and knowledge will be at the centre of our society and our economy in the future. We have to give our kids the best chance possible of succeeding, and the only way to do that is to invest everything we can into our education system – putting money into education shouldn’t been seen as an expenditure item, it’s an investment.

5: We have not had a very strong track record on tax reform over the past 15 years. Other

countries have done a much better job than us, which should serve as a good wake-up call that we have to be much more focused on defining our reform objectives in 2015. Two of the most important areas of focus for Australia’s tax reform agenda next year should be: one – putting in place policies that are directed towards incentivising and encouraging a greater level of entrepreneurship across our economy, and two – doing everything possible to make us a competitive market for offshore and domestic investors who are looking to put significant amounts of capital to work. If we can lay out a blueprint to deliver on these two areas of policy, we will be future-proofing our economy for the next two decades.

Ahmed Fahour Chief executive, Australia Post 1: It’s been a tough year for us, mainly due to the on-going digital substitution of letters. We

made a loss in the January-June period, the first time we have incurred a loss in any half since being corporatised in 1989. Unfortunately, the profit we earn from parcels will no longer cover the losses in our letters business. We will keep investing in our post offices, as well as our parcels and digital services, to ensure that we’re offering vital services that are relevant to all Australians into the future.

2: Digital communications is clearly a threat to letters. The volume of mail we deliver to

each letterbox has fallen by one-third in just six years. But the boom in online shopping is driving growth in our parcel delivery, express freight and logistics services. Our strategy

involves reforming the letters service while continuing to invest in our retail trusted services and parcels businesses.

3: Given our shareholder is the federal government and it has many macro-economic issues

to deal with beyond our business. But in terms of Australia Post, its biggest concern would be ensuring that we continue to run a viable letters service for all Australians – even as the community becomes less reliant on letters. In June, the federal government released the findings of an independent review of our letters service, which found that – without reform – Australia Post would incur $12bn of losses in the letters business over the coming decade. So, we are working closely with our shareholder on reforming the letters business and minimising the size of future losses.

4: We need to ensure we have the infrastructure and policy settings that enable Australia to

prosper and grow in a digitally-connected, global economy. It’s also important to improve the productivity and international competitiveness of Australian industry and get the budget back to a balanced position.

5: We are having a wide-ranging, national debate on taxation reform – and I hope that

debate is characterised by rationality and balance.

James Fazzino Chief executive, Incitec Pivot 1: Australia is still a long way behind international competitor countries on matters such as

tax, energy costs and availability, labour productivity and supportive bureaucracy. The federal government’s deregulation agenda and free trade agreement developments are positives but more needs to be done. Incitec’s Moranbah ammonium nitrate plant was completed in 2012. Currently, we have no major growth plans in Australia. Incitec’s current growth investment is in the US with a world-scale ammonia plant in Louisiana.

2: Technological advances will benefit the industries we serve. Incitec’s three biggest

challenges are: Productivity, which we are addressing through our business excellence program. The opportunity is continuous improvement flowing straight to the bottom line. Cost pressures associated with the downturn in the global resources industry which we are addressing through cooperative technology with customers. The opportunity is we will be smarter and leaner when the cycle turns. Energy supply which we are addressing through relationships with emerging suppliers offering cost competitive options. The bigger challenge is fostering new suppliers to get their product to market and that’s where government has a role.

3: We don’t disclose conversations with investors. However, general feedback has included

the on-going issue of returns to shareholders. Fortunately, we are able to point to the successful operation of Moranbah and the commencement of production in Louisiana in 2016, which will double earnings in their respective businesses.

4: Governments and businesses need to work together to focus on the small number of big

challenges facing Australia. Governments seem to be waiting for business leaders to resolve the political issues in their electorates as well as managing complex global and national organisations. We need a mechanism to bring government, business and community together to resolve these challenges. Australia’s non-competitiveness in productivity is stifling growth. It can only be solved through government and business contributing to the solution. Companies must take responsibility and invest in their people to solve problems at the coal-face and create efficiencies. The role for government includes cutting bureaucracy and regulation, and assisting in industrial relations. Diversity is another challenge where government and businesses need to work together. For example, organisations that don’t seek gender diversity are ignoring 50 per cent of the talent base. Gender diversity is a

challenge for a heavy chemical company, such as IPL. However, we are running a number of programs to build gender diversity in the short and long term. Long term is assisting with the “pipeline” which starts with science and engineering in schools and universities.

5: Tax reform is essential. Reform will require a root and branch approach, plus extensive

community consultation so all sections of society can see the benefit. Also, attitude to the tax structure requires a cultural change that recognises the widespread benefit of supporting business. This is epitomised by the comment from the Governor of Louisiana, Bobby Jindal, who said to me: “I don’t want more taxes; I want more taxpayers”.

Grant Fenn Chief executive, Downer 1: Overall it still tough, although it varies from market to market. Mining related work is

very difficult right now, whereas there are increasing opportunities in the government sector due to private sector contestability.

2: For us, it is technology that provides real-time information for our customers on complex

construction and maintenance projects. We must invest to meet this challenge. Other major challenges are the reduction in capital expenditure in Australia, regulation and laws inhibiting productivity, and the impact of commodity prices on our mining customers. For all these reasons we must try to be as close to our customers as we can be and help them to improve productivity.

3: The outlook for Australia’s mining sector.

4: The top three issues facing the nation are:

The demarcation between federal and state government responsibilities

The need to substantially improve the disadvantages of our indigenous communities

Political leadership.

5: Clarifying the responsibilities of federal and state governments.

Mark Fitzgibbon Chief executive, NIB 1: We remain very confident about ongoing private health insurance industry growth at

around the level of GDP. We plan to make measured additional investment in organic growth and possibly, acquisitions.

2: We don’t fear disruptive technologies, as we want to lead the disruption. We’ve created

a joint venture incubator with a technology company. We call it our own “silicon valley”. We see many technological opportunities to improve customer engagement and decision making as well as claims payments. Our biggest challenges/opportunities are pricing in spending and claims inflation; improving customer retention given high industry churn and competition; and building our new medical travel business

3: Our ability to price in claims inflation as well as maintain and improve profit margins.

4: The top three issues facing the nation are:

The long-term sustainability of our heavy tax reliance for funding healthcare due to a growing dependency ratio. Government should focus its limited fiscal resources upon social and equity objectives. That is, require everyone to take responsibility for their lifetime healthcare by having private health insurance (noting we are already forced to have social insurance – Medicare) and then subside those who would otherwise be left behind.

Earning more foreign income from high-value services (e.g. education, healthcare) as distinct from goods (e.g. coal, wheat). Healthcare is something we should have a natural comparative advantage and could become our largest export.

Too much government. Let’s get rid of states and become more like New Zealand.

5: Placing more reliance upon taxing the consumption of goods and services not income.

Our ability to price in claims inflation as well as maintain and improve profit margins.

Michael Fraser Chief executive, AGL 1: AGL’s greatest concern revolves around policy uncertainty, especially around the

renewable energy target. Failure to achieve a viable policy and eliminate uncertainty has led to a capital strike. Companies require a stable framework prior to making long-lived capital investments. AGL has invested $3bn in renewable energy projects but while policy uncertainty remains, AGL is unlikely to commit to further projects.

2: The most important technological development within energy markets at present is the

increased cost effectiveness of digital metering. Rule changes are currently underway within the national electricity market that will make all metering services contestable. Customers will then be able to choose an electricity product that provides for greater energy management services utilising a digital meter. This has the potential to significantly improve Australia’s electricity sector capital productivity. Other technologies with the potential to become mainstream include batteries for energy storage in the home and alternative transport such as electric cars. A future where these and solar PV are part of the typical energy mix of a household is very likely. This scenario empowers the consumer, putting them in charge of their own energy usage.

3: Policy uncertainty resulting in capital inefficiency and inadequate returns for investors.

4: The top three issues facing the nation are:

Climate change – a long-term sustainable climate change policy framework is critical for facilitating investment decisions in long-lived infrastructure such as electricity supply. The heightened state of policy uncertainty that arises from frequently changing policy settings and objectives leads to financing premium penalties being applied to both renewable and new gas-fired generation projects. That means higher electricity prices.

Gas supply - the development of new LNG export demand for natural gas is placing upward pressure on near-term Australian gas prices as east coast gas markets are for the first time linked internationally. A reservation policy to redirect LNG gas into the domestic market will be ineffective because the issue has to do with supply shortages. New gas supplies will place downward pressure on gas prices in the medium term because the construction of new LNG terminals in the short to medium term is unlikely given international competition.

Intractability of new renewable energy investment – AGL is a strong supporter of renewable energy, however, given the current oversupply in generation capacity in the national energy market, and the stagnant or declining outlook for electricity demand, AGL does not consider the renewable energy target to be achievable without complementary policies aimed at ensuring that revenues for new renewable projects exceed their cost of construction and operation. Complementary policies need to be considered to address the significant oversupply in the national energy market.

5: Broaden the tax base by reducing the reliance on direct taxation and increasing the

GST. This will provide a more resilient source of revenue to fund the infrastructure and social

services Australians expect from government. It will also help support a lowering of the company tax rate to make Australia more internationally competitive in attracting foreign investment.

Richard Freudenstein Chief executive, Foxtel 1: Consumers still seem a bit cautious and uncertain, but we've decided to take fate into

our own hands by radically changing our pricing structure in a drive for growth. It's early days, but so far the results have been very positive. In the new year we will launch our new iQ3 set top box and launch our broadband and telephony service. In addition we'll continue to invest in new content, both locally made and acquired from the best content creators from around the world. In our business there is no option but to keep investing to make sure customers have access to the best possible content and technology.

2: Technological change is a given in our industry and its current manifestation is in changes

to consumption patterns as content becomes available on a multitude of platforms and devices. The way to meet the challenge is to make the core product excellent and then adapt to the technological challenges, in our case by ensuring we have products available on all the new and emerging platforms. That's why we have Foxtel Go, Foxtel Play and Presto to meet the needs of different segments and to be available on multiple devices. Online piracy is a huge challenge not just to our business but to the whole creative sector. To mitigate its effects we need to ensure that our content is available quickly, conveniently and at a reasonable price. But we also need legislative change to give us the ability to protect our rights and, just as importantly, to educate the public that piracy is theft and wrong. For Foxtel a major challenge, which is coupled with a huge opportunity, is to make sure we effectively implement the huge number of initiatives we have embarked on. These include the new pricing and packaging, triple play, the new iQ3 box and the development of Presto. The outmoded anti-siphoning regulations remain a challenge to our ability to manage our business and inhibit the development of the sporting bodies.

3: Ensuring that we continue to grow our business, deliver the promise of the initiatives I

mentioned and meet the challenges of the changing competitive landscape.

4: The top three issues facing the nation are:

Political gridlock and negativity is a major impediment to consumer and business confidence. The nation would benefit if the government and opposition could identify some clearly beneficial policy areas where there can be a bipartisan consensus and move those forward. A rolling long-term policy agenda that could be implemented irrespective of who was in government would help restore faith in our democracy.

Ensuring that we maintain and improve productivity enhancing assets (whether it’s physical infrastructure or intellectual capital) is critical. That requires a mature debate about the relative roles of the public and private sectors ensuring that governments focus on where they can make a contribution without crowding out or impeding private investment.

Ensuring that we effectively take advantage of Australia's connections with Asia. Trade agreements and the like are important, but there should also be an emphasis on soft diplomacy such as cultural exchange.

5: Simplification across the board. Get rid of small administratively burdensome taxes in

favour of broader, more efficient and transparent taxes.

Elmer Funke Kupper, Chief executive, ASX 1: Australia's economic growth outlook remains subdued. Financial markets continue to

experience record low interest rates and relatively low levels of volatility. ASX’s investment plans haven’t changed. Since FY12, ASX has invested $500m in Australia's financial market infrastructure to ensure ASX and Australia remain globally competitive.

2: ASX is well placed as a business with its IT infrastructure and forward investment plans. A

continued challenge is to maintain high cyber security standards. Three challenges and opportunities: 1) build liquidity in ASX's new post-trade services, 2) expand domestic investor services and global connectivity, 3) ensure policy settings support market growth and Australia's competitive position.

3: Impact from changes to global regulatory environment and domestic policy settings;

market activity and revenue potential of new services; and investment in new long-term growth opportunities.

4: The top three issues facing the nation are:

Improve Australia's global competitiveness through macro economic reform and sector specific growth strategies.

Deepen engagement with Asia and leverage the benefits of free trade agreements.

Ensure government spending and debt is controlled at a level to maintain Australia's AAA rating – including in a next GFC-like event.

5: Australia's corporate (and personal) tax rates are not globally competitive, requiring a

medium-term target that successive governments work towards. There should be radical simplification and redesign that recognises a small number of taxes raise most of the tax revenue. Two key concessions and distortions are superannuation concessions that seem unsustainable, and negative gearing, which is creating distortions in the housing market.

Miles George Managing director, Infigen 1: Investor confidence in the renewable energy industry has been severely damaged by

recent policy instability. Australia has some of the best wind and solar resources in the world and we should be able to exploit that natural advantage in much the same way as we exploit our mineral and other natural resources. But the large scale renewable energy industry has ground to a halt due to uncertainty created by the current government’s stated intention to cut pre-existing legislated targets. Those targets hitherto enjoyed bipartisan support for 13 years, and were also the subject of clear pre-election commitments from the government, including explicit support for the legislated 41,000 GW/h a year target for the large-scale scheme. In 2014 capital investment in large scale renewable energy projects shrunk to around one tenth of that achieved in recent years, and the industry is effectively frozen. Investment plans have been shelved and the industry is now shedding jobs, particularly in regional areas. Infigen’s investment plans are focused outside Australia, particularly in the US market where stable renewable energy policies facilitate the long-term investments that capital intensive industries such as power generation require. We’ve had some good results in our US solar development program, and we expect to continue our new project development focus there in 2015.

2: Efficient battery storage coupled with solar PV generation is the disruptive technology

combination that most threatens the traditional centralised electricity generation and distribution model. Battery storage costs are rapidly declining and within fived years a meaningful portion of consumers will have a credible alternative to grid supply using

combination on-site renewable generation and battery storage. Residential and small business consumers whose power bills include high proportions of network charges and retail margins (up to 75 per cent in some cases) will be the first to make the switch. Battery storage will also provide competitive solutions to further costly build out of the legacy poles and wires network. Distributed renewable energy generation and battery storage represents an opportunity as well as a threat for Infigen, and we are considering how best to adapt our business model to these changes taking advantage of our existing assets and expertise. Other challenges to our business in Australia include the dominant market power, political influence, and anti-competitive behaviour of the big three electricity retailers who are vertically integrated into fossil fuel generation. The big three power oligopoly is seeking to defer as long as possible the transition from last century’s centralised coal-fired power generation system to a more sustainable and efficient power generation system – in order to protect the value of their legacy generation assets.

3: Our existing and prospective investors universally cite renewable energy policy instability

in Australia as their number one concern. A related key concern is the outlook for future profitable business growth in Australia. Other concerns relate to the high level of debt that remains on Infigen’s balance sheet, notwithstanding a major debt repayment program over the period since we became an independent business.

4: Australia needs to adapt its economy to cope with a future material reduction in income

from exports of iron ore and coal. Government policies should focus on encouraging new industries that seek to exploit the many other natural advantages – whether in natural resources (including renewable resources like wind and solar resources), a highly skilled workforce, excellent education system and strong capacity in scientific innovation, proximity to rapidly growing Asian economies, and a stable political system. We should spend more effort developing industries of the future, and less effort protecting the industries of the past. Australia’s relatively small economy has led to high concentrations of market power in key industries including electricity retailing, banking, and food retailing. In other industries such as electricity networks regulators have long protected inefficient state-owned operators, and allowed inappropriately high levels of regulated returns considering the monopoly nature of the services provided. Anti-competitive and inefficient practices are rife in these industries burdening Australian residential and business consumers with unnecessarily high costs. Regulators need to substantially lift their game to better protect consumers from the powerful vested interests of operators in these industries. Australians have lost trust and respect for their governments. This is a serious problem that will only be addressed when elected politicians have the conviction and courage to keep promises made, and to look beyond the election cycle to best prepare the country for future opportunities and challenges. Current Australian governments appear more focused on short-term political imperatives than on the long-term interests of the nation.

5: Business tax is disproportionately levied on small-to-medium sized firms while large

businesses with foreign operations appear to be able to avoid paying an appropriate share of the business tax burden. Simplifying the byzantine tax and superannuation system must be a high priority.

Richard Goyder Chief executive, Wesfarmers 1: The corporate outlook is positive for Australia as we are well situated to the growth

region of the world. Our investment plans are to grow our existing businesses while always on the lookout for new investment opportunities.

2: The digital economy is a great opportunity for Wesfarmers and a threat if we do not

embrace it. Growth in digital is strong, as are our digital sales. We need to provide our

customers with a seamless multichannel offer. Other challenges include dealing with regulation; employing the best people; and opportunities include providing more senior opportunities for women; and the capacity to invest in many different sectors.

3: Our shareholders’ key concerns are sustainable growth; market disrupters and that we

invest their money for satisfactory returns.

4: The top three issues facing the nation are:

Growth, productivity improvements, appropriate government settings, and investment in infrastructure.

Trade reform, maintaining fiscal strength and budget discipline

Federal, state and local government processes, consistent regulation and fair tax disbursements

5: Change the mix between direct and indirect taxes, giving relief to PAYE taxpayers and

corporates.

Matthew Grounds Chief executive for Australasia, UBS 1: It has been an active year with a significant increase in corporate activity. Indeed, the

number of completed M&A and capital markets transactions more than doubled compared to last year, and there has been a marked increase in demand for access to the debt markets on the part of corporates. We are looking at a cautiously improving global economic environment led by the US. To maintain the strength of our business in Australia it is, as always, essential that we remain focused on the needs of our clients. To that end, we will continue to invest in the areas where we see more activity for example infrastructure where we have a great team and we will continue to train and develop our teams.

2: Disruptive technology is a sign of the times. Technology has the potential to enhance our

business and competitiveness today with regard to future projects. However, it can also be disruptive so it important for us to be innovative and to respond to every eventuality quickly and effectively. Financial services, healthcare, education, research and environmental services are all sectors we think will be significantly impacted by disruptive technology over the coming years. We are already seeing notable changes emerge to payment systems by new entrants into the financial services space such as Google and Apple. Staying ahead of the curve, constantly innovating and partnerships with some of the new technology players will become the norm as the more traditional players look to mitigate the risks from disruptive technology. Opportunities: Across Asia Pacific, we have significantly expanded our platform offering in the region. We continue to provide clients with unique opportunities to connect outbound capital with overseas opportunities and the reverse with n respect to with inbound capital. Our platform solutions group provides multi-asset class securities trading and investment administration infrastructure to some of the Australia’s largest superannuation funds and wealth management groups. We continue to see Asia-Pacific as the fastest-growing region for our business and we look to significantly increase the invested assets of clients in the region over the coming years.

3: Globally, we recently launched an initiative to discover what our stakeholders consider to

be relevant for the firm via an online survey that will run to the end of the year. Participants are asked to assess the importance of a range of topics in areas spanning finance, society and the environment. Their feedback will be incorporated into a materiality assessment, which will then be summarised as the UBS Materiality Matrix. The analysis will give UBS important stimuli for its corporate responsibility strategy. In recent years, UBS has increasingly taken on duties and responsibilities with social relevance. These are linked to our relations with our clients and to our own business operations. Globally, we have a very

clear and successful strategy, which Australia is very much a part of and I hope that shareholders will be pleased with the performance of our Australian business in 2014!

4: The top three issues facing the nation are:

Industrial relations reform/ productivity;

Energy policy; and

Education, research and innovation. The government has a role to play in supporting and promoting Australian industry globally through a stable policy environment. The success we have in addressing low growth, low inflation will be crucially important for Australia over the next two to three years. It is essential that we continue to be competitive by investing in infrastructure spending and productivity; enhancing the alignment between education and business; continuing the development of the technology sector and continue to manage the transition from mining to non-mining. The Government has started towards turning Australia into a research-based economy for example the important policy announcements addressing the gap in Australia's funding for medical research.

5: In common with every other jurisdiction in the world, Australia will benefit from the

simplification of the tax regime and the streamlining of regulations – both measures will go some way towards mitigating increased costs associated with compliance/regulation.

Gary Helou Managing director, Murray Goulburn 1: The fundamentals for our dairy sector in the growth markets of Asia remain very strong.

Murray Goulburn will continue to invest in manufacturing capability and marketing reach in Asia.

2: The rise of e-commerce in China with a growing percentage of consumer dairy sales going

through e-commerce there. Biggest challenges: e-commerce in China, regulatory barriers, and high labour costs in Australia. Biggest Opportunities: e-commerce, growing Chinese market, and domestic market consolidation

3: Our shareholders’ key concerns are market volatility and its impact on farm-gate prices

and profitability.

4: The top three issues facing the nation are:

Engagement with Asia

Labour reform

Productivity

5: There should be tax breaks/incentives for Australian companies making direct

investments in Asian markets.

Lance Hockridge, Chief executive, Aurizon 1: We remain cautiously optimistic in a subdued environment. Opportunities for margin

improvement remain for Aurizon through efficiency gains, cost reduction and organic growth. Coal volumes remain strong as customers are lowering their unit costs through a combination of higher production in a strong demand environment and cost reduction initiatives. Major investment is being channelled into transformational capital (Information technology; fuel and operational technology; rolling stock maintenance; fleet upgrades) to speed reforms and deliver incremental returns. We’re also completing our committed growth projects over the next 18 months (Hexham NSW; Wiggins Island Rail Project and Rolleston electrification in Queensland) to support strong coal volumes.

2: If we take a broad interpretation of disruptive technology, I would nominate disruptive

business models and new forms of competition as one of our greatest challenges. The only way we will beat these threats is by delivering for our customers, meeting our commitments, reliably and efficiently day after day. In short, disciplined execution. We must constantly challenge ourselves with fresh thinking, deploying new operating and information technologies, new commercial strategies. For us, the Holy Grail is delivering the most efficient supply chain we can for all our customers, regardless of who owns the components, thereby making Australia more competitive relative to other jurisdictions. Safety has been and remains our greatest challenge and opportunity. Whilst we have made good progress and are now demonstrably world class in safety, we have been reminded in recent times that we have much to do. Finally, our people. It is true that we have some industrial challenges in the near term. But our people and the ‘how’ of what we do represents our greatest opportunity. We have made great strides but I am genuinely excited about what we can be achieved.

3: To ensure the company continues execution of the reform program in order to achieve

an operating ratio of 75 per cent (25 per cent EBIT margin) for FY2015 with continuous improvements thereafter. An appropriate capital allocation strategy to deliver incremental returns whether through growth capital, transformational capital or capital management initiatives. To work our way successfully the current impasse with enterprise agreements, and ensure our contingency planning manages effectively any potential industrial action that unions may choose to take. Ensure the appropriate level of assessment and due diligence for any significant growth projects, including the proposed West Pilbara Iron Ore Project in the context of subdued iron ore prices.

4: The top three issues facing the nation are:

Re-setting the competitive landscape for Australian business – releasing regulatory gridlock and compliance burden; restoring more flexible, competitive industrial relations settings; and reforming Australia’s complicated and high-tax environment for businesses and consumers.

Leveraging for Australia’s economic and strategic benefit the recent FTAs signed with China, Japan and South Korea (currently account for more than 50 per cent of our exports) to drive a new chapter of trade, growth and cultural development for the next generation of Australians.

Getting movement on the political impasse on budgetary and other federal reform that is prevailing with a hostile Senate, and getting a mature, long-term vision for Australian infrastructure and investment rather than being captive to short-termism in politics.

5: Removal of inefficient state taxes (particularly duty) – the tax cost of doing business in

Australia is increased significantly by inefficient state taxes such as duty and payroll tax. While some progress has been made towards simplification and creation of uniform rules between the states, compliance with these inefficient state taxes continues to be complex and time consuming. Further, these tax costs can be prohibitive to efficient transactions that would otherwise generate jobs and create economic value. Carry forward tax losses in trusts – trusts are common investment vehicles (particularly for infrastructure projects), however the rules governing the ability of a trust to carry forward and utilise tax losses are difficult to apply and create significant uncertainty for investors. Reform of the carry forward tax loss rules for trusts to be consistent with the rules applying to companies would alleviate these issues.

Mark Hooper Chief executive, Sigma Pharmaceuticals 1: There have been plenty of mixed signals in the corporate sector in general, but we

remain confident in the future of the pharmacy sector. Ongoing PBS reform has meant we have had to work harder, but there are many demographic factors in our favour, such as the aging population, and increases in life expectancy in general. We are investing heavily in our business in terms of our infrastructure and technology and the skill base of our employees. We are currently scoping two new distribution centres which are major capital spend. These major investments in the industry are only possible if you have a stable, consistent and fairly funded operating environment.

2: The next big technological challenge for the pharmaceutical sector is a global one. There

is a push for individual medicines to be electronically coded, tracked and recorded through the entire supply chain to further enhance controls over medicine and help circumvent the international trend of fraud or misuse. My fear is that the industry invests heavily in the enabling technology, but consumers by-pass the secure supply chain by ordering products directly. This could have serious implications for the healthcare system in Australia, so requires a collective commitment from the industry and government to achieve the desired results. In terms of the other challenges, Sigma is investing heavily in the online space, is enhancing the use of technology to improve the retail experience and performance, and is constantly seeking technological improvements to drive operational efficiencies in our distribution channel.

3: Government regulation is probably the key concern for shareholders right now, as more

than half of our income is ultimately paid for by the government to support timely access to Pharmaceutical Benefit Scheme medicines. Ongoing government reforms to the PBS has been a constant overlay and drag on the industry and has meant that other business improvement initiatives we have implemented have been required to maintain profitability and drive higher returns.

4: Personally I would nominate infrastructure spending to make the overall economy more

productive at the top of the list. The population continues to grow, but I am not sure investment in key infrastructure is keeping pace. Given the challenges are often around funding, a greater use of public-private partnerships is the most logical option. Just as critical is our whole approach to education, both at a tertiary level and in supporting those who wish to pursue a trade. The success of this country will ultimately rely on the collective intellect of the Australian people and we should therefore make it as easy as we can to obtain these skills. I just don’t sense that long-term imperative is driving what we do in this area. From a healthcare perspective, I think the government should also reinvest some of the PBS savings made over the past few years back into listing new medicines to help improve the quality of life for consumers. There are too many examples of medicines that can make a real difference to people’s lives taking too long to become economically available.

5: Tax reform should focus on removing or reducing inefficient taxes that are a handbrake

on investment and employment, and reducing inequalities that have sprouted over time. The tax treatment of purchases from foreign online web sites is a classic example. Retailers are at a disadvantage compared to their online counterparts offshore, with the growing trend of browsing in store and buying online. Payroll tax has long been discussed yet continues to effectively penalise companies for employing – tax reform should encourage investment in people and infrastructure.

Geoff Horth Chief executive, M2 1: We are in the fortunate position of being in a mature market with good growth prospects

– broadband users in Australia grew by about 300,000 last year and we were able to take a good share of that growth with 70,000 new services added. This market is forecast to continue to grow due to the rollout of the NBN and we are confident about our capacity to invest in continued growth and to get appropriate returns on our investments

2: Our tendency is to look for ways to embrace and leverage technology rather than

confront it. A prime example is the emergence of IP voice in response to which we have launched our market leading Commander Phone hosted voice service. As the NBN continues to roll out Australian businesses are able to start to leverage the opportunities presented by an ultra-fast broadband network but are also faced with the requirement to upgrade their office equipment. We see opportunities to leverage this technological change event to grow market share and provide our customers with a richer communications solution. The emergence of IP TV, video and music streaming services is another example of an evolution of technology that has been a major disruptor of traditional business models. We see content as an emerging key decision factor for broadband subscribers and a driver of the improving broadband penetration in Australia. This trend provides us with growth opportunities but also the potential to offer our customers more control over their IP content and their free-to-air television with our Dodo Fetch offering.

3: From both a retail and institutional perspective, we consistently hear from our

shareholders about the importance of demonstrating long term sustainable organic growth. Our entire team worked hard, and successfully, to achieve the level of organic growth that we delivered in FY14. All of our activities are focussed on continuing this growth story in FY15 and beyond. More broadly speaking, transparency is a focus of shareholders. We constantly review our communication and reporting to improve the insights that we give into the business. We strive to maintain clear and effective communication with our shareholders through our releases, audio recordings and webcasts but also value every opportunity to speak with our shareholders.

4: Political uncertainty has been an issue for Australia for a number of years, with minority

governments and ad hoc policy making providing challenges in making long-term decisions and implementing real policy change and regulatory reform. It has been some time since we’ve seen clear direction from government and had the confidence that government can follow through. There is enormous growth potential in the Asia Pacific region and Australia is faced with the decision of how to play a part in that. Growth and wealth in Asia provide our country with a significant opportunity and some preparation and a clear plan is required in order to take advantage of it. We have an outstanding country but one in which the state of indigenous health is of serious concern. There are many health issues that could be cited but at a basic level, the lifespan of indigenous Australians is 17 years shorter than the national average and the infant mortality rate is three times higher than non-indigenous. Poor health has a flow-on effect to all areas of life, and our indigenous children are too often starting life with this challenge. We need to recognise the problem, take responsibility and look for real long-term solutions.

5: It is time for the government to take some steps towards long-term tax reform looking at

areas such as the mix of consumption and income tax, as well as addressing multinational tax avoidance.

Patrick Houlihan Chief executive, Dulux 1: The markets in which Dulux operates in Australia and New Zealand remain generally

positive, with primary exposure to the resilient existing residential housing sector of approximately eight million homes in Australia. High levels of home ownership, strong house prices, net migration and low interest rates are all favourable indicators for ongoing consumer spending on home improvement. New housing is expected to continue to remain strong in Australia, as approvals and commencements flow through to completions. Engineering and infrastructure is the one area of weakness. Dulux will continue to invest in the long-term fundamentals of the business (brands, innovation and customer service) while pursuing sensible new organic and acquisitive growth opportunities.

2: We view disruptive technology from the perspective of both an opportunity and a

threat. We believe that by continuing to invest in the fundamentals of our business we continue to be well placed. This has held us in good stead in recent years as we have successfully responded to a number of significant changes in our competitive landscape.

3: Our shareholders are focused on the same things we are: ensuring we continue to focus

on growing shareholder value while being a responsible corporate citizen. We have a very strong level of employee share ownership in the business and one of our core values is to “run the business as your own” with a long-term view.

4: The top three issues facing the nation are:

Continued reshaping of the economy: Building Australia’s long-term competitive advantage through focused investment in scientific research, commercialisation and education to ensure innovation-led growth in sectors where we can win regionally or globally.

Infrastructure investment: Take a long-term planning focus for cities and regions to ensure that public and private funded infrastructure supports higher productivity and higher living standards.

Workforce participation: Ensure that we have a more flexible labour market, streamlined regulatory system and efficient tax regime that supports productivity and job creation, reduces barriers to workforce participation, and facilitates the attraction of skilled and talented people.

To ensure all of the above, we require genuine harmonisation of regulation between the Commonwealth and States to ensure a much more effective regulatory environment, removal of unnecessary barriers to investment and job creation and removal of duplicate and redundant regulation.

5: Simplify and broaden the tax base, maximising cooperation and efficiency between the

Commonwealth and the states in the process.

Stuart Irvine Chief executive, Lion 1: Like all fast moving consumer goods businesses Lion has been navigating a highly

competitive market against a backdrop of sluggish consumer confidence and rising input costs for some time. However, we are fortunate to have some of Australia’s most loved blockbuster brands and great capability in fast-growing, high value segments across our business. We manage our business for the long term and have continued to invest in our core business assets – our brands, supply chain assets and people capability – while also pursuing efficiency gains. We are firmly focused on the highest value category and brand growth options available to us. We have a clear 10-year strategy in place to return the beer market to volume growth, turnaround our Australian dairy and juice business and grow our

high-value branded dairy brands in key Asian markets. In this regard we welcome the recent signing of the China free trade agreement and applaud the fact that tariffs will not only come down in milk solids and other dairy commodities, but also higher value goods such as yoghurt and cheese.

2: We’re lucky enough to be in a position where emerging technologies are in the main

major opportunities for Lion to drive value in our business. In our dairy business, new food technologies are central to our future growth plans. Lion has recently launched the Goodness Project, focusing our dairy and drinks business on growth in “better for you” and functional foods. The data revolution is also a major opportunity. We are able to learn more about shoppers and consumers than ever before. Consequently, we can tailor our brands, products and packaging more effectively and enhance the way we support our retail customers to improve the shopper experience. We have strong brands and we sell products that are typically enjoyed with family and friends. That social element means consumers are more open to engaging with our brands via new media than is usually the case. Under the bonnet of our business new technologies are key to driving efficiency and productivity through our supply chain. Challenges:

1. Regulatory complexity – the federation continues to add cost to business 2. Continued margin squeeze in parts of the domestic dairy market 3. Advocacy groups adopting campaign tactics deliberately designed to distract from a

rational assessment of relevant policy matters, and denouncing industry as a legitimate participant in policy debates

Opportunities: 1. High nutrition, “better for you” and functional food innovation. Our portfolio of

natural dairy and juice products is highly aligned to Australians’ increasing desire to eat better quality and less processed food, and their preparedness to pay more for quality, provenance and nutritional benefits, and we are putting nutrition at the heart of our Dairy & Drinks growth strategy.

2. High-value dairy brand growth in Asia. With a new China-Australia FTA secured, the key is to now make it happen, and realize the opportunities available to us.

3. Restoring the beer market to volume as well as value growth. Craft has been a big boon to the beer category but it also highlights that we have undersold the benefits of beer more broadly and we need to lift our game right across the category. The wine and coffee industries have done a great job connecting back to the grower and craftsmanship, and I think beer needs to champion its own great provenance story.

3: Our shareholder, like many Japanese companies, has been a significant and consistent

investor in this region over many years. They take a long-term approach to business planning and they would like to see greater regulatory certainty and simplicity to help them do so. This would be further facilitated by a more sensible debate on the benefits of foreign investment in this country. Certainly, the positive public response to the Chinese FTA was a step in the right direction but, given the clear economic benefits Australia has enjoyed as a consequence of overseas investment, I think foreign investors in Australia are sometimes a little perplexed by the tenor of the debate on the issue.

4: In a post-mining boom era identifying our future sources of growth, restoring

competitiveness and diversifying our economy is critical. In this regard we welcome the government’s Industry Innovation and Competitiveness Agenda, which rejects the practice of picking winners and instead focuses on the policy settings needed to support innovation, investment and productivity. We particularly welcome the focus on the food and agribusiness sector as one of five that will see the establishment of an Industry growth centre. Food manufacturers face significant regulatory duplication and overlap as a result of our Federation structure, and food regulation is increasingly used as a default solution to

address population health and consumer value issues. If Australia is to leverage its competitive advantage in primary industries and food production in Asia the industry can’t be left to compete internationally with one hand tied behind its back due to inefficient or poorly targeted and duplicative regulatory intervention back home. Complexity in doing business: As a relatively new arrival to the country I have been simply astounded at how complicated it can be to do business here. We have so many levels of government regulating on identical issues with very modestly different regimes. The level of cost and complexity this is adding to national businesses is phenomenal. Government can support economic growth and jobs by freeing up capital and resources currently vacuumed out of the economy through red tape and complexity and we are glad to see this is a priority. Workforce participation: There’s a very important discussion going on at the moment about gender diversity and it is often cloaked in a discussion about fairness and equality. Those are essential lenses through which to look at the issue but it is also a matter of economic success. An enormous amount of talent in this country is lost to the workforce because of inadequate or expensive childcare, inflexible working conditions and out of date attitudes to female and older workers.

5: We need to first and foremost get very clear on our long-term strategy for economic

growth and our competitive advantages in a post-mining boom era. Then we need to address as a nation what we need to spend, with a long-term aim of returning to surplus. Tax reform can then enable efficient revenue raising, in a manner that supports our growth, our competitiveness and our social needs. Australia is in many ways a great place to invest because of low levels of corruption, robust legal frameworks and talented people, but it’s also a very expensive place to live and do business. Relatively high corporate tax adds to an already high cost of doing business and anomalies in the system like payroll taxes are deterrents to investment. Australia’s federation structure also produces a significant amount of complexity and regulatory overlap generally, which is exacerbated by the misalignment of taxation and expenditure responsibilities. Considering tax and federation reform in tandem provides an opportunity to address this.

Tony Johnson Incoming chief executive, Ernst & Young Oceania 1: The corporate outlook has improved – notwithstanding the global and local uncertainties

that still exist. Our most recent Capital Confidence Barometer showed the overwhelming majority (96 per cent) of Australian corporates believe the economy is improving or stable, on par with 95 per cent six months ago and up from 80 per cent a year ago. Similarly, 90 per cent are confident in corporate earnings, compared to 77 per cent six months ago and 46 per cent a year ago. This confidence around earnings demonstrates corporates’ belief in their ability to deliver revenue growth with cost control, with renewed focus on M&A a key ingredient. From an EY perspective, we remain focused on a deliberate growth strategy. This will mean partner promotes, direct admit partners and acquisitions. We have made four acquisitions this financial year and our intention is to continue to explore new services, acquisition and alliance opportunities in 2015.

2: It is the convergence and connection of the disruptive technologies that create the

opportunities and the risks. It’s less about fear, and more about embracing the change and innovation. While the word “disruption” evokes a negative sentiment, digital obviously brings enormous and currently untapped potential to revolutionise the business environment. Despite the scale and pace of change, we are still only at the beginning of the revolution. We know that over the next decade, the connectivity of “things” to the Internet will grow exponentially. This will drive productivity and innovation; create new data and

fast-track automation which can only be a good thing for business and consumers. While organisations need to manage the risks including data privacy and security, and brand and reputation, now is the time to start to leverage the benefits. I think the biggest mistake businesses can make is seeing digital as a singular force to be reckoned with rather than a multi-channel offering, that’s integrated into the business strategy.

3: Our clients’ key concerns are:

Responding to the changing needs of customers better than the competition – including staying ahead of the challenges of emerging and disruptive technology.

Regulatory uncertainty, regulatory change and the cost of compliance domestically and globally are a major challenge to planning and executing on growth initiatives.

Challenge of driving growth organically and identifying and executing on inorganic growth opportunities in a rapidly changing world.

4: The top three issues facing the nation are:

Need to focus on and improve productivity – Improved productivity is key to the performance of the Australian economy. Over the last four years, through EY’s Australian Productivity Pulse™ reports, we have been measuring Australian workers’ views about their organisation’s and their own productivity. The most recent report identified IT investment and innovation as a key opportunity to improve productivity.

Understanding our role in Asia – The opportunities for Australia in the Asian century are vast. As the world’s economic powerhouse, Asia holds an important key to Australia’s long-term economic sustainability. Business, government and the community need to embrace the opportunities that exist. The recent China-Australia Free Trade Agreement will certainly bring great benefits. Together with existing trade deals with Japan and Korea, this represents 61 per cent of all our Asian exports. How we leverage and build on this opportunity will be critical.

Focusing and responding to the challenge of our ageing population – We know that as Australia’s population ages the impact on our economy, our governments’ budgets, labour participation rates and our infrastructure requirements will be immense. It is critical we focus and respond in a way that ensures our ongoing economic viability.

5: Tax reform is urgent. EY released a report in 2014 calling for the establishment of a tax

reform commission similar to the Productivity Commission. We believe meaningful reform will not be achieved unless the tax reform process is depoliticised. EY is very supportive of the government’s commitment to produce a comprehensive white paper on tax reform prior to the next Federal election. To lock in a long-term view of tax reform in Australia however, we need an approach that is not tied to the timing of the election cycle. We must remember that the tax system is not something you set and forget, it must flex to align contemporary economic and business activity with desired policy outcomes.

Alan Joyce Chief executive, Qantas 1: Yes, for two reasons – our transformation program is working and some of the headwinds

we have been facing, like fuel and excess capacity, are easing. The caveats are that we still have a distance to go with our transformation and demand in some parts of the market is patchy. Despite our cost out program, we have deliberately kept investing in aircraft, lounges and other customer-facing improvements because that’s key to our competitive advantage.

2: If you fear disruptive technology you probably shouldn’t be a CEO! Disruption is an

opportunity and I’d point to social media as an example. There’s nowhere to hide if your service isn’t up to scratch, but social also helps you learn more about your customers, have more direct conversation with them and tailor your service to meet their expectations. Three other challenges and opportunities?

Maximising the benefits of our youngest-ever and simplified fleet to leverage cost and service benefits.

Playing our part in realising Australia’s enormous potential in Asia.

Seizing the opportunity of a weaker dollar to drive a resurgence of domestic and inbound tourism.

3: Top of the list of shareholder concerns is signs of serious weakening in the domestic

economy or a sustained drop in consumer confidence. There is also the volatility associated with fuel prices, which is our biggest overhead.

4: The top three issues facing the nation are:

Finding a means of funding the infrastructure needed to lift national productivity and realise our economic potential. Asset sales by state governments and a greater involvement of the private sector will both likely have a role.

A more assertive and coordinated approach to promoting Australia in global markets, cutting across trade, tourism, investment and business. There have been some good moves in this direction in recent years but we are still being out-manoeuvred by other countries.

Encouraging diversity. Business leaders need to reinforce the positive impact that diversity has in the workplace, including at very senior levels. Workplaces should be meritocracies, but within that we have to remove any sneaking bias or prejudice that can cruel people’s ability to shine through.

5: Accelerated depreciation for aircraft would bring Australia into line with other countries.

Mike Kane, Chief executive, Boral 1: We continue to face significant inflationary headwinds, particularly in Australia, but

overall the outlook for most of the markets in which Boral operates is positive. In large part because we are addressing our cost base and directing our attention and investments to those segments with long term favourable returns. We do see some short-term slowdown in major roads and infrastructure work in Australia, but beyond this financial year we expect improvements. In the US, the housing market is continuing to recover, albeit at a slower than expected rate, and in Asia there is ongoing growth including increasing penetration of our plasterboard products in construction markets. Boral’s outlook remains positive and while we have a much stronger balance sheet that provides flexibility to look at investment opportunities over the next few years, we are not in any hurry to rush out and buy things or build new capacity. As opportunities present themselves we will consider future investments.

2: Disruptive technologies usually take decades to impact change in our industry, but in

recent years even building products and materials have been challenged. Good companies should not fear disruptive technologies but embrace them. In our industry the biggest opportunity for disruptive technology is in lightweight products and composite materials, which over time will see a move away from natural, resource intensive materials such as natural stone and clay and cementitious products. We have been investing in our R&D capability and expanding through product innovation with a particular focus on flyash/polymer-based composite materials which we are taking to market through our Trim

and Siding business in the US. Expect to see more experimentation with synthetic substitutes for natural materials in the built environment. That said, Australia needs to encourage the creative destruction that capitalism harnesses through entrepreneurial investment and the rewarding of risk taking necessary for disruptive technologies to take hold. As long as regulators are attempting to artificially interfere in the marketplace by inserting “effects test” type impediments to free markets we risk tipping over into an uncompetitive nanny state which drives out the very competitive instincts necessary for Australia to compete in a global marketplace. Lastly, Australia needs to celebrate success and recognise that in a dynamic capitalist model it is not a zero sum game and if business leaders and entrepreneurs create wealth that does not diminish the opportunity of all. The global economy will reward wealth creation and punish marketplaces that inhibit creative investment and risk taking.

3: Our track record of delivering on promises has been strengthening so in terms of

performance of the company I think the key concerns shareholders have are similar to the concerns of management more around the things that we can’t control – rates of market recovery, structural versus cyclical changes in demand, competitive pressures on pricing, geopolitical unrest and so on. Our job is to position the business to effectively respond to external pressures and market changes, and to continue to focus our efforts on delivering on our promises. 4: The top three issues contributing to Australia’s high cost of doing business, relative to the rest of world, are high input costs (labour, energy, and property), regulation and the role of government, and productivity (including industrial relations frameworks and union corruption). The relatively high and volatile Australian dollar is fourth on the list. In terms of input costs, a far-sighted energy policy would help which could include a significant role for coal seam gas and shale oil with an accelerated environmentally safe exploration program for domestic consumption. From a regulation perspective, government regulators need to consider Australia’s competitiveness globally and take a broader view of competition. Sadly, for Australia, a narrow view by regulators will see manufacturing industries – including the Australian brick industry – on the same trajectory as the auto, oil refining, steel, aluminium and cement industries. And from a productivity perspective, Australia needs law reforms that stop union corruption including effective sanctions against secondary boycotts; effective enforcement of the secondary boycott laws and related cartel conduct; and improved union governance. Bringing unions under the purview of the Corporations Act would go a long way toward driving corrupt practices from construction markets.

5: No comment provided.

Gail Kelly Chief executive, Westpac 1: While the economy has been expanding at a moderate pace, supported by low

interest rates, there has only been modest improvement in consumer sentiment and businesses remain cautious. Internally, in the last few years we have been spending around $1bn to $1.1bn on investment and would expect to continue at that level.

2: The banking industry is seeing a growing trend of disruptors and new entrants,

largely in the mobile payments space. While these disruptors have the potential to significantly impact the banking sector, we have recognised this and we’ve “disrupted ourselves”’ by developing innovative new products and services, as well as launching our new world-class internet and mobile banking platform, Westpac Live. In recent times, we’ve also partnered with start-ups and entrepreneurs that could disrupt both our industry and our customers’ industries to ensure we remain ahead of this trend. More broadly, digital adoption and technology is one of the most competitive forces facing the

industry and the opportunity is immense. To stay ahead, we focus on recognising that we are successful because we change, we seek to solve a customer problem or opportunity and we do it with a profound sense of urgency. On the challenges front key will be continuing to work to find a balance on regulation.

3: The market is very comfortable with Westpac’s strategy and business and is most

interested in the outlook for the industry. Obviously the recommendations from the financial services inquiry are currently topical, and the release of the report marks an important step in the process of the review. We will continue to actively contribute to the policy debate as the government enters its consultation period.

4: The big-ticket issues that will really make a difference to Australia’s prosperity

require continued focus with new ideas, energy and vigour. The perennial issues of improving the nation’s productivity, including utilising the changing workforce demographics, as well as embracing innovation and managing the ongoing structural change in the economy will be key.

5: Ensuring the tax system is sustainable, simple and promotes savings, investment and

economic growth.

Grant King. Chief executive, Origin Energy 1: The two factors primarily impacting the outlook for the energy sector are falling

commodity prices and policy uncertainty. Falling commodity prices, and in particular the oil price, will influence plans for investment in new large projects like LNG projects, and will also likely drive a focus on lowering operational costs. In the policy space, ongoing uncertainty, a clear example being the Renewable Energy Target, makes long-term decisions more challenging. Origin’s focus is on commencement of first LNG production by Australia Pacific LNG in mid 2015, which stands to deliver a step change in earnings and cash flow from the 2016 financial year.

2: Origin does not fear disruptive technology or change, however if we had to identify the

most disruptive events in the energy sector it would be the boom in unconventional gas, particularly US shale gas and its subsequent impact on the global oil market, and the emergence of solar as a potentially competitive source of distributed power generation.

3: Getting the right balance between increasing distributions to shareholders and

reinvesting in growing businesses.

4: The top three issues facing the nation are:

Strength of the economy, particularly growth;

Sustainability of Australia’s fiscal position; and

Cost of living.

5: The tax reform agenda should be structured to focus on what is necessary to promote

economic growth and in turn generate adequate funding for all levels of government, and in doing so it should include all sources of taxation.

David Knox Chief executive, Santos 1: In terms of the things we are doing – exploring, operating and developing – our outlook

has improved significantly, in particular GLNG is just going from strength to strength. In terms of external factors, there has been a considerable drop in the price of oil and we must respond to that with prudent management. However, in the long term, the global need for 50 per cent more energy is unchanged and there is no clear path as to how that is going to

be supplied. One thing is certain and that is gas will play a huge role in addressing this because of its ability to deliver affordable, reliable energy with a lower carbon footprint. That is something Asian economies are seeking as they look to improve air quality.

2: This isn’t a technology that we fear, but something we keep an eye on is the restoration

of the nuclear industry. This is because it is a long-term base-load energy source with ultra-low carbon emissions. However, I think this is unlikely, not because of the science but because of political factors. We see renewables as a great partner for gas and developments in renewables are something we see as more complementary than disruptive.

3: In the short term, it is acting in a prudent and financially responsible manner in light of

volatile commodity prices. In the medium to long term our priority is delivery on our promises, which ultimately leads to increased shareholder returns

4: The top three issues facing the nation are:

The absence of an energy policy in Australia is something of great concern as it is an issue that affects every area of the Australian economy, not just the energy industry. It is critical for the Energy White Paper, which is currently being developed, to deliver a clear and robust policy framework that ensures Australia reaches its potential of being a regional energy super power.

Increasing productivity to ensure we can compete on a level playing field with our Asian neighbours and don’t fall behind.

The drop in investment and the threats it creates in relation to jobs and growth. There is a significant investment in the oil and gas industry that will wind down as we all complete our projects. I don’t think the impact is fully understood but it will be felt in the next 18 months.

5: Tax is not the issue. This issue is regulation and the unnecessary complication and

duplication between the states and the Commonwealth. Creating a more simplified regulatory framework that works in parallel with industry are the keys to improving efficiency and economic growth.

Brian Kruger. Managing director, Toll 1: It’s no secret the external business environment in Australia and most of the other

countries we operate is challenging. However, our strong capital management allows us to continue investing in our fleet – we bought more than 400 trucks in Australia this year alone – and upgrading our facilities, such as the 12 facilities we have developed over the past 18 months. This ensures we’re continually improving our productivity and competitiveness, reducing our operating costs, and allows us to maximise the leverage we have to any improvement in economic activity. In the meantime, we continue to pursue multiple organic growth opportunities including entering new market segments where we don’t already have a strong position, but where our networks, operating capabilities and financial strength give us some competitive advantages, such as agriculture and construction.

2: Mobile technology, and the ever-growing appetite for new applications for it, is

constantly changing the way the logistics industry operates. This is especially true in the growing online business-to-consumer (B2C) market. As a logistics provider it is vital we are able to get products to end consumers when and where they want it, and keeping up with advances in mobile technology is critical to being able to do that. We are investing accordingly and are currently developing applications that support our B2C service offering. Challenges: Moving the conversations we have with customers to one of total value, and not just one of price. The topic of safety is one of the best examples of this. It takes dedicated

investment to own and maintain safe equipment and facilities. Our challenge is to educate others why safety is not negotiable for us, its true costs, and why safety is good for business. Opportunities:

We are a large and diverse organisation, so some customers tell us they want us to be easier to work with. We are simplifying our working relationships with customers. Continuing to generate value for our customers is crucial to achieving growth.

The continual development of our online parcel delivery service capability, and future development of delivery options that provide customers with higher levels of convenience. This is critical to maintaining high service levels at low cost, delivering an excellent experience to our customers, and our customers’ customers.

We are also mindful of the effect 3D printing may have on the manufacturing industry and the supply chains that service them. One hypothesis is that 3D printing will reduce the volume of goods coming into port but increase the distribution task domestically if goods are produced in hubs here.

3: Our ability to deliver increased profit growth in a low-growth environment. They support

our drive to improve sustainable returns by focusing on return on capital employed.

4. The top three issues facing the nation are:

The complacency about Australia’s capacity to afford the programs the community expects without sometimes painful changes for individuals and families. The narrative over the past few decades that things needed to change has been lost. It has become easy and normal for governments to increase charges and create regulation now whereas previously the focus was on freeing up supply chains and removing unnecessary restrictions. The Abbott Government’s agenda to reduce red tape is an important step in changing that narrative.

Clearly articulated government direction, and policy decisions that support that direction is critical for maintaining the improving business confidence. Certainty around infrastructure investment assists growth by enabling businesses like Toll to take a long-term view with investment decisions and helping to reinvigorate the economy.

Having infrastructure, specifically freight infrastructure, as part of the debate. Our industry-leading position places us at the forefront of the debate about what it will take to progress Australia’s productivity agenda. Getting certainty around infrastructure investment decisions will assist growth by enabling businesses to take a long-term view with investment decisions, helping to reinvigorate the economy.

5. It is important companies pay their fair share of tax so that governments are in a position to invest in the community, including nationally-significant transport infrastructure projects that companies like Toll will benefit from. As an industry leader it is important we conduct our business with integrity to ensure we comply with the laws and regulations of all countries we operate in, including tax laws, and we support efforts to ensure companies are paying appropriate amounts of tax.

Katie Lahey Executive chair, Korn Ferry Australasia 1: The highs and lows of our business usually reflect the broader economy. There are

pockets that have improved; the financial services sector has returned and the corporate sector is busy. There is an increase in board renewal assignments following many director retirements. Retail and consumer remain flat and our work in the resources-related industries has slowed in the past year. In our consulting business we see a greater focus on leadership development, assessment work and succession planning at executive level.

2: The continued expansion of social media networking and recruitment businesses enables

organisations (including our clients, competitors and ourselves) to participate in the job market and promote their brand. The technology threatens our business because it enables companies and their internal HR and talent teams to connect directly with job seekers. However, we also utilise these technologies. Through social media technology we have enhanced our processes and created new offerings while building our brand online. Challenges:

Balancing resources in a fluctuating market.

Roadblocks to the transfer of talent across international jurisdictions are a challenge to global executive search. This relates to salary levels, tax and visa requirements.

Like most companies, sourcing top talent with right skills, cultural fit and agility to meet the demands of changing markets is always a challenge but, of course, we pride ourselves on our expertise to attract, recruit and retain the very best people.

Opportunities:

We have created products and services that assist clients to implement more rigorous processes around succession planning at the executive level of organisations.

We are experiencing growth in our recruitment outsourcing business as more firms gain cost savings and quality improvement by supplementing their recruitment and talent management teams.

The need for new ideas that promote internal employee mobility especially in large organisations.

3: Not applicable in Australia

4: The top three issues facing the nation are:

Business certainty is not at the level it needs to be to encourage investment. This is mostly related to legislative uncertainty.

Infrastructure– governments are committed and implementation needs to move forward.

Complacency – there is a lack of understanding of competitiveness challenges in Australia.

5: We need a mature discussion about the GST.

Geoff Lloyd Chief executive, Perpetual 1: Equity markets are experiencing increased volatility reflecting the fall in commodity

prices and a weakening in the global macroeconomic outlook. Corporates will have to be very focused on navigating this heightened macroeconomic uncertainty. At Perpetual, we remain focused on the growth agenda we spoke to at our full year results in August. As part of this growth agenda, we launched the Perpetual Global Share Fund. We’ve also announced a new investment vehicle, the Perpetual Equity Investment Company (which is expected list at the end of 2014). These are two very exciting initiatives and logical extensions of our highly regarded equities investment business.

2: I prefer the term disruptive innovation and there is nothing to fear from it. Our industry is

always changing and developing in ways that benefit our clients. The important thing is to stay on top of those changes and invest in the right technologies for the future that will support and enhance our strategic objectives. Regulation remains a key challenge and opportunity – we are on the right path towards professionalisation of financial advice following the global financial crisis. The financial services’ industry does need more certainty in terms of the timing of legislative change – the recent multiple changes to the

Future of Financial Advice reforms are an example of uncertainty caused by rapid and unexpected changes in regulation.

3: Our shareholders are mostly concerned with macroeconomic uncertainty and the impact

this has on equity markets as this could hurt earnings and a company’s ability to pay dividends. Perpetual offers an attractive option for shareholders because our strategy is focused on logical growth options and we aim to deliver a sustainable dividend over the long term. Therefore, their concerns – which are echoed throughout the country – are around finding reasonably priced investments and adequacy of income in retirement.

4: The top three issues facing the nation are:

Ensuring that the country has adequate savings in retirement. There should be

serious efforts to raise the superannuation guarantee contribution from 9.5 per cent

to 12 per cent and beyond. If 15 per cent is good enough for our politicians then it

should be good enough for everyone else. Critical to this is ensuring Australians

believe there is value in good advice. Scandals that have rocked the financial

services industry have put doubt in people’s minds and we need to correct that.

Have a tax system that is equitable and simpler – one that does not distort

investment behaviour, is appropriate to balance government expenditure and policy

promises.

Regulatory confidence and improving Australia’s competitive position in the

changing world.

5: We would like to see further tax benefits to support overseas investment into Australia.

Changes introduced by the Johnson Report, including introducing the new managed investment trusts, has really bolstered inbound investment. As explored in our recent cross-borders report with the FSC (http://www.perpetual.com.au/about-news-fund-flows-have-doubled-since-2010-FSC-Perpetual-Report.aspx), we would like to see tax certainty for offshore investors – completing the policy settings for the investment manager regime so that non-resident investors are provided with clarity about tax treatment of their investments.

Susan Lloyd-Hurwitz Chief executive, Mirvac 1: Over the past year we’ve seen the corporate outlook generally improve, but this varies by

industry, with Australia’s large challenge to smoothly rebalance away from mining investment to other broader forms of investment. In relation to Mirvac’s investment plans, we have a very clear strategy which identifies the sectors and locations in which we will operate, and we remain disciplined around our investment mandates and return hurdles. With activity in the residential sector remaining robust, particularly in Sydney, we have increased our sales release program to capture the current demand, and we continue to look for opportunities to acquire sites where pricing remains competitive.

2: Responding to disruptive technology has to be our constant approach to business. Every

company now has to be a technology company. Overall though, we see technology as an opportunity for our business: to improve our service offering to customers and stakeholders; for the management and efficiency of our buildings; for sustainability performance; for communication; and for innovation. In terms of opportunities, operational excellence remains a key focus for the group, and we have established a number of initiatives, including our sustainability strategy, “This Changes Everything”, and our innovation strategy, “Hatch”, to embed a focus on innovation across the business. The disconnect between the

weight of capital and underlying market fundamentals continues to be a concern in most segments of the property market. As we are an owner of assets, this presents an opportunity for us, and we have responded to this by increasing our asset sales target for the year. In terms of challenges, there is still strong competition for residential sites; however, we remain disciplined in where and how we compete for sites, avoiding on-market bid processes for uncomplicated sites. The advantage of Mirvac’s integrated model, our balance sheet, our relationships, our experience and our reputation means that we can create an edge in more complex situations, and this is the area we are focused on.

3: Macro-prudential measures and their impact on the residential market has been a recent

concern for our shareholders. Earlier this month we saw the tabling of the report on foreign investment in residential real estate. In our view, the recommendations are both fair and reasonable, and support Mirvac’s view that foreign investment in new dwellings is necessary to address housing supply needs, particularly in our major capital cities. We also spend time talking with our investors about prudently restocking the residential pipeline in a competitive market. We are demonstrating our ability to achieve this, and with more than 30,000 lots under control, we remain confident around the medium-term outlook of our pipeline. We continue to see opportunities in the market and continue to restock in line with our strategic mandates. We will not compete for sites if we think the pricing is too high. Our focus is on leveraging our integrated model and our relationships, which is core to our competitive offering.

4: The top three issues facing the nation are:

Supply of new dwellings: Overall, our residential markets are in strong need of new dwelling stock with vacancy rates in capital cities at very low levels. Policies that support the supply of new housing stock are key.

Innovation: To prosper in an increasingly competitive global environment, we need to embrace innovation-led growth. We have to create a culture of innovation and a culture of considered risk taking. Innovation would be encouraged if it was incentivised through a systematic approach.

Productivity growth: Higher participation in economic activity is key, especially when confronted with an ageing workforce and demographic consequences. There is a need to find new ways of operating and creating value.

5: Any tax reform agenda needs to address the complexity of the tax system. The agenda

needs to foster a competitive and stable environment that will attract and retain global capital and promote growth. Reduced complexity provides greater certainty, while reducing the cost of compliance.

Andrew Mackenzie, Chief executive BHP Billiton 1: The market outlook remains challenging for a number of commodities in the short-term,

with the global economy growing at a moderate in rate in 2014. But demand for BHP Billiton’s globally traded commodities remains strong. The gradual shift from construction to consumption in the Chinese economy, and a return to more sustainable levels of growth, reinforces the need for Australia to continue to improve its competitive position and lift productivity in every industry – not just resources. A key part of our strategy is the simplification of BHP Billiton – in terms of the shape and size of our portfolio and assets and how we operate as a company through our systems, processes and focus on productivity. In August we announced plans to create a new metals and mining company through a demerger, allowing BHP Billiton to focus almost exclusively on our four pillars of iron ore, petroleum, coal and copper with potash a potential fifth. We have also created intense

internal competition for capital. We have planned to reduce our investment spend from $US14.8bn to $US14.2bn this financial year and to $US13bn in following year with no change to our expected production growth.

2: We stress test our portfolio against a range of scenarios, including the impact of various

emerging and potential technology breakthroughs on both the supply and demand for our products. These potential technological impacts may vary significantly, but our strategy of diversity, by commodity and geography, and rigorous approach to scenario planning gives us great confidence in our ability to maintain and grow shareholder value. We are not alone in the other challenges and opportunities we face. One of the biggest challenges of our time will be how we meet the twin objectives of meeting the world’s future energy needs, particularly in developing countries, and addressing climate change. We see technology playing a huge role in helping us do this through things like carbon capture and storage and renewable energy production and storage. When I think about the opportunities on our doorstep – I think about our geology and our geography, the abundance and quality of Australia’s natural resources and our close proximity to Asia. We have a real opportunity to position Australia as a global resources superpower, providing the critical energy and commodities needed for sustainable economic development, particularly across Asia. If we want to realise this potential, and transition to meet the demand of commodities from China’s next generation we have to address productivity and our high cost environment. Trade is another opportunity. I have always been a passionate believer in free markets and free trade and this year I was chair of the B20 Trade Taskforce. This experience brought home to me that more trade, and freer trade, perhaps more than any other action, has the potential to improve our prosperity and help create millions of new jobs around the world.

3: It goes without saying our shareholders want a superior return on their investment,

responsible and effective capital management and to know that they are effectively part of company that operates sustainably and with absolute integrity. Our longstanding capital management framework defines four priorities for cash flow, this includes our commitment to maintain a strong balance sheet and a solid A credit rating through the cycle; to at least maintain or grow our progressive base dividend in every reporting period; to invest selectively in high-return diversified opportunities, again through the cycle; and to return excess capital to shareholders in the most efficient way. In all areas, shareholders are telling us that BHP Billiton is performing well.

4: The top three issues facing the nation are?

Competitiveness – Australia has experienced 23 years of consistent economic growth, with trade and an enabling policy environment at the heart of the country’s success. But we must never become complacent. We need to ensure we sustain our track record of economic reform for Australia to overcome a structural decline in productivity, and to ensure we can continue to grow national income and standards of living. Those challenges include addressing the long-term revenue base of governments across Australia so they are placed on a broader, more sustainable, footing, flexible workplace arrangements, and investment in Australia’s human capital. Critical to this reform agenda will be the capacity of governments – Federal and State – to work cooperatively and on a comprehensive implementation agenda following the Harper Review.

Climate change and sustainable economic growth – Addressing climate change and delivering sustainable economic growth is one of the biggest challenges facing the world, not just our nation. In tackling these inter-related challenges, we need to ensure we protect Australia’s competitive position, that we continue to supply the world’s energy needs and we need to find a way to reduce the carbon content of energy going forward. We can’t overcome these challenges in isolation and I think there are some promising signs of more connectedness and global cooperation. Our

industry has a fundamental role to play reducing its emissions, mitigating and adapting to the effects of climate change and we will continue to engage constructively with policy makers to help integrate energy and climate change policy. Technology will also play an important role, particularly through carbon capture and storage, and BHP Billiton believes it can contribute technical and market expertise in this area.

Industrial Relations – The resources sector is heavily exposed to foreign competition – the world sets our prices and Australia sets our costs. The resources industry will continue to generate wealth for this country through taxes, royalties, employment, investment and procurement, but we need to get the balance right with Industrial Relations. As we continue to improve the productivity of our operations, we need the flexibility to manage and implement productivity-related changes onsite and the ability to foster our own workforce and bottom-up culture. One area of reform is to the Fair Work Amendment Bill where we are supporting changes to right of entry laws.

5: Australia’s challenge is to maintain a competitive and stable policy framework. Business

needs to be well-consulted to get the settings right so there is confidence to invest; this is particularly the case with mining investments that require long-term stability to be attractive. Tax reform is best done infrequently, but, when it is then it needs to be done in a comprehensive, holistic manner – put everything on the table and then sort out what is best for the country. Given the majority of our subsidiaries are located in Australia, we would want any regulatory action in Australia to be consistent with international approaches. We do, and we want to, pay our fair share of taxes and contribute to the economic and social well-being of this great country.

Ken MacKenzie Chief executive, Amcor 1: Conditions remain favourable for growth in most of the 45 countries where we operate.

Amcor continues to grow through organic expansions with new plants announced over the past 12 months in Indonesia and the Philippines as well as four acquisitions in each of Indonesia, China, India and Australia.

2: Amcor is the global leader in its chosen market segments and is focused on bringing new

innovations to market. During the year we announced a revolutionary new technology, LiquiForm™ for the rigid plastic container business that uses the consumable liquid instead of compressed air to hydraulically form and fill the container on one machine simultaneously. This is an excellent example of how we are leading change in our industry.

3: Shareholders are supportive of our growth strategy and the capital discipline we have

demonstrated over the past 10 years. They like our strong and profitable positions in 28 emerging markets and want us to continue growing in these higher-growth countries. They would not want us to deviate from our successful approach to capital allocation and our focus on disciplined growth.

4 &5: Amcor has 95 per cent of its sales outside of Australia and hence the issues facing

this country have only a modest impact on our business.

John Maher, Chief executive, Ruralco 1: The corporate outlook is strong for Ruralco. We continue to focus on keeping a clean

balance sheet so we can capture the right opportunities as they present themselves, provided they are EPS accretive and are a strong cultural fit to the business.

2: The disruptive technology likely to have the greatest impact on our business is online

retailing, however, we view it as also a great opportunity under the right business model. The use of technology in increasing farm productivity and efficiency is an area that we will continue to invest in and leverage to our customers. The three other biggest challenges are: Seasonal conditions; fluctuating commodity prices; and risk of key people losses. The three biggest opportunities are: trade agreements; improved farming practices to increase productivity and innovative financial products enabling farmers to further invest in their enterprises and productivity.

3: They vary from continuing a strong dividend policy to accelerating growth plans.

Management is focused on executing key strategies to ensure we continue to build the intrinsic value of the company.

4: From an agricultural point of view, the key issues are declining competitiveness,

attracting quality people to the industry, and the infrastructure required for the industry to remain competitive.

5: Australia’s tax system needs to be structured to promote investment thereby ensuring

productivity and competitiveness.

Mick McCormack Chief executive, APA 1: The outlook for our business is good but no recent improvement. We’d like to see clarity

around government energy policies, namely the Federal Government’s position on the Renewable Energy Target and state government policy on unconventional gas supply. Regardless, export LNG projects are driving a change in gas supply and demand dynamics in eastern Australia, presenting a number of interesting investment opportunities to expand organically and through acquisitions.

2: The introduction of solar/battery storage combinations to domestic and smaller remote

sites may be disruptive to demand for gas and grid connected electricity. Opportunities:

Connection of new gas supplies to existing infrastructure eg. to fuel gas fired generators in remote locations

Delivery of gas for the Gladstone LNG projects

Acquisition of energy infrastructure from upstream participants. Challenge:

Achieving scale in unconventional gas reserves in the Cooper Basin and Northern Territory to provide competitively priced gas.

3: Impact of rising gas prices in the gas market in south east Australia. Declining

commodities prices and impact on gas consumption in the mining areas we supply gas to.

4- From an energy sector perspective, the top three issues facing the nation are:

Energy policy focus is too short term. We need a clear, consistent and long-term strategy to address energy requirements across the nation – a national energy policy.

Input costs are high when compared to our international competitors. Greater flexibility is required in workplace arrangements.

Reduced duplication between tiers of government.

5: The GST should be restructured.

Hamish McLennan Chief executive, Ten Network 1: Business and consumer confidence remains fragile, but we are continuing to invest in

adding new, compelling content and in expanding the reach of our digital platform Tenplay.

2: We don’t fear new technologies; we embrace them, as they create new opportunities

and extend the reach of our most valuable asset: our content. Yes, new technologies can be challenging, but it is up to us to tackle those challenges and use disruptive technologies to our advantage. There is a lot of talk right now about online video-streaming services such as Netflix. They have gained some ground in Australia and no doubt they will continue to find new customers. But that creates opportunities to distribute content in new ways that do not have a significant impact on free-to-air television viewing. Internet-delivered content will continue to grow, but linear television will continue to attract very large audiences.

3. Like all shareholders in all media companies around the world, our shareholders are

focused on how new and emerging technologies will change the way consumers behave and where companies invest their marketing dollars. Free-to-air television remains a robust and powerful entertainment and news medium. Moreover, it is adapting to change more successfully than some other media sectors. Shareholders also want media companies to compete on a level playing field: one key area where that is not the case is with global digital and internet companies that operate in Australia but pay negligible corporate tax here.

4. The top three issues facing the nation are:

Australia’s role in the global economy. Australians are among the most inventive and innovation people in the world, with a long history of creating products and ideas that have revolutionised global industries. While traditional industries such as mining and agribusiness will remain a critical part of our place in the global economy, we need to invest further in new, knowledge-based industries and build Australia’s role as an exporter of knowledge, innovation and talent.

Tax reform. By paying negligible tax, the global technology players are gaming the system in an NBN world.

Diversity and equality. Australians pride themselves on giving everyone a fair go, but the reality is often different to the myth. Indigenous Australians continue to be severely disadvantaged in many areas, including job opportunities, healthcare and education. Multicultural integration remains a key issue that needs everyone’s attention. In the business world, pay equity is an important issue for all Australian companies. Gender-based like-for-like pay gaps, that is, women being paid less than men for the same or comparable job, are still commonplace in Australia and need to be addressed.

5. Ensuring the global technology giants that generate revenue in Australia stop rorting the

system and pay the appropriate amount of corporate tax. While free-to-air television networks are dutifully paying our corporate taxes on top of 4.5 per cent of gross revenue as a licence fee and spending $2.3bn as an industry on Australian content – all the while operating within a highly restrictive regulatory regime – Google, Twitter, Facebook and others don’t even have to worry about paying Australian company tax. The playing field has to be levelled one way or another, because at the moment it is hampering our competitiveness.

Rohan Mead Chief executive, Australian Unity 1: In the sectors that we operate within, the outlook continues perversely positive. An

ageing population—which faces challenges with personal finance (particularly retirement

savings and preparing for potentially 20-plus years of retirement), managing healthcare and chronic disease, accessing and affording quality aged care services and accommodation—is increasingly searching out reliable partners to help tackle these major concerns.

2: The healthcare sector is incredibly provider-centric and self-forgiving and, historically, has

been successfully resistant to managerial or process innovation that might improve the efficiency of health spending. The sector is also resistant to a necessary shift to patient, and outcome-focused care. Ubiquitous, mobile technology and its manifold potential health and diagnostic applications could transform healthcare and its day to day operations on this front. We have entire businesses devoted to new, innovative models of care, and are ahead of the game in this regard. Even so, the thing I fear is not embracing these disruptive possibilities fast enough. Genetic medicine, effective treatment of chronic disease and the chronic failure of the sector to produce meaningful performance management information, hospital outcomes being one obvious example, all remain huge opportunities as well as challenges.

3: Our members often ask me: “How will my partner and I afford getting old?” They ask:

“Am I going to be a burden on my children?” or “Where can I live in old age that meets my needs?” In their own way, they are questioning the sustainability of social services in Australia. They have a legitimate concern. Australia’s social infrastructure, both in service provision and care facilities, will continue to fall behind growing demand without more policy attention from all levels of government.

4: Educating and equipping our young people effectively, reviving true entrepreneurship

and new business creation in our economy, and re-founding the provision of social services (including health, aged and disability care) on a socially and fiscally sustainable basis. The first challenge is intimately linked to solving the second, which also needs re-shaped incentives and regulatory approaches. The third requires an engaging national policy reform agenda, which our major political parties have to jointly champion, beyond the unedifying point scoring that we seem to have descended to.

5: The states aren't going anywhere, so let's stop infantilising them. Let's re-draw the fiscal

map so that our states are responsible for raising the funding for the services that they deliver, and while we are doing that we need to have a stocktake on the services to be delivered by our state or federal governments.

Craig Meller Chief executive, AMP 1: Broadly speaking the outlook presents both great opportunities and some challenges as

we see a varied outlook both here and abroad. At AMP, we continue to see solid momentum across the business and continue to look for efficiency within our business to free up resources to invest. We are focused on transforming our core Australian business with a new mobile platform and operating model to focus on the customer and drive growth as the wealth industry increases in size. We will continue to expand our international investment management business, with a focus on Asia, and grow our SMSF presence in Australia.

2: The one we don’t know about yet! Rapid technological advances are part of modern

business life. These technological shifts are driving changes in consumer attitudes, making consumers more demanding as they seek better value, more control and easy-to-use solutions. At AMP we are focused on placing the customer at the centre of all that we do, and a key part of this is by engaging with customers in new ways that deliver the speed, information and control they are looking for. We are also working to increase organisational agility to ensure we can respond quickly to the unexpected disruptor.

3: Our shareholders are keeping a close eye on AMP and how we continue to look for ways to maximise growth in our business while ensuring we remain efficient. They are also looking for more certainty around the regulatory environment that has been subject to ongoing change for some time now.

4: The top three issues facing the nationare:

By 2050, we will have only just over two-and-a-half working people for every person who is retired. This compares with around five people working and paying taxes currently. We need to take action to preserve and enhance the prosperity of our increasingly large numbers of retirees. The way forward to ensure future prosperity and make sure future generations are not burdened by debt is to develop appropriate policy settings that incentivise individuals to save as well as to encourage them to work longer.

The second key challenge for Australia is to enhance our relationship with Asia. Asia’s middle class is forecast to more than double and account for more than 40 per cent of global middle-class consumption. This growth, along with improved new technologies, will change consumer expectations. As a country with a small population base relative to most of the region’s economies, Australia needs to develop innovative and compelling ways to be part of the Asian growth story. Australia’s expertise in financial services provides an opportunity for Australian businesses wanting to invest and grow in Asia.

Thirdly, Australia needs to nurture a workforce that is quick to respond to changing global demands and trends, including developing valued goods and services. We need to ensure that our workforce is highly educated, engaged and flexible and individuals enjoy and want to remain working, growing their own wealth and contributing to the ongoing growth of the Australia.

5: Not surprisingly, we think tax arrangements that incentivise Australians to save more for

a prosperous retirement and reduce reliance on the aged pension should be top of the list.

Jim Minto Chief executive, Tower 1: The corporate environment is looking more challenging especially in terms of what the

growth and income outlook will be for consumer net income and affordability. Life businesses are trying to make themselves more sustainable and focus on improving their business models and value to customers. We expect more investments to deliver better customer experience. Consumers are still cost conscious and reviewing family budgets.

2: Customers are now highly digitally engaged. People who can cut through the complexity

of life insurance in their solution design are best placed to succeed in the future and this will be enabled through mobile devices especially. The biggest challenges include lifting the engagement of customers in life insurance, making the life industry sustainable with confidence from capital markets and developing first-class wellness and rehabilitation capabilities for people who need to get better and return to work after illness.

3: Ensuring we can deliver for our customers for decades to come, continuing to focus on

longer term growth and sustainability in our business and being a trusted and very responsible contributor to our society.

4: The top three issues facing the nation are:

We need a better dialogue that focuses on the important issues for Australia and not just politics. People want to be engaged in a positive vision.

Modernising our competitive offers in a global sense so we can as a nation compete successfully in a rapidly changing world.

Embracing the richness of our diversity and gaining great value from it as we have done in the past

5: Dramatically simplify the tax system, cut complexity, remove deductions that create poor

investment behaviours, simplify super and remove the need for so many to get tax advice. As an estate planner, and tax adviser in my early career, I am appalled at the needless complexity, poor incentives and constant lobbying and tinkering.

Nicholas Moore Chief executive, Macquarie Group 1: Our research analysts see the broader corporate outlook remaining challenging for most

companies, which is a reflection of the demand-deficient environment that Australia and other developed world peers continue to face. That said, there is a notable divergence in growth rates between international facing companies and those with a greater domestic focus. Those companies that operate offshore and are therefore not constrained by the domestic economy have the opportunity to access a deeper pool of growth opportunities, both organic and via acquisition. From a Macquarie Group perspective, when we announced the group’s improved half-year result at the end of October, we said we currently continue to expect that the result for the 2015 financial year will be slightly up on 2014 as a result of an increased contribution by most of our operating groups. Of course this will be dependent on market conditions across our businesses in Australia and internationally.

2: Disruptive technology presents a great opportunity to achieve efficiencies, increase

competition, and create environments that better deliver the products and services that our clients want. At the moment we see the potential for ways to use these emerging technologies in combination with our knowledge and skills in the markets where we already have a competitive advantage to enhance our business offerings. Opportunities:

Continuation of our track record as an early developer of markets and ideas

To continue to adapt the mix of our diverse businesses to meet changing market conditions. For example, our footprint in the Americas underwent considerable growth over the past five years and last financial year, the revenue contribution from that region overtook Australia for the first time.

Well-positioned capital markets facing businesses that are ready to take advantage of a return to a sustained period of market confidence. We are beginning to see that occur in some areas, such as equity capital markets.

Challenges:

Some capital markets remain subdued, which has a significant impact on confidence levels among the clients we serve and business more broadly.

The pace and volume of regulatory change.

The increasing cost of compliance.

3: Shareholders are most concerned about the macro environment, including when we will

see a sustained period of confidence in global capital markets. Shareholders are supportive of the efforts the group has made over the last five years to grow our annuity-style businesses. They also understand that we have well-positioned businesses that will benefit from sustained confidence in capital markets.

4: The top three issues facing the nation are:

The G20 clearly articulated the challenges facing countries around the world, including Australia, with sustainable growth being a primary concern. Outcomes such as establishing free trade agreements with Korea, Japan and most recently

China are an encouraging recognition of the need to broaden both Australian access to export growth markets and to expand our export base.

Infrastructure investment remains an important priority not only nationally but, as we saw during the G20 this month, globally. Federal and state governments are making good progress with capital recycling. An added bonus is the establishment of Australia as a Global Infrastructure Hub is testament to our country’s credentials in this area.

Regulation is an area that has a profound impact on business confidence and productivity. Regulation has both benefits and costs, and the challenge for governments around the world is working out the balance between these two. The benefits of regulation are generally clear, however the costs – particular in terms of opportunities that cannot be realised or customer needs that cannot be met – are often harder to determine.

5: In our submission to the Financial Systems Inquiry, we expressed a view that certainty in

taxation should be among the hallmarks of Australia’s financial system. We also suggested that the government should review and address taxation settings that make this country less attractive for investment or constitute barriers to the export of Australian financial services such as the controlled foreign companies regime.

Bill Morrow Chief executive, NBN 1: We are cautiously optimistic. NBN will continue to invest in building out a national

broadband network. We anticipate higher capital spending next year than years gone by.

2: The potential disruptive technologies that could upset our business plan are mostly

related to wireless technologies. If the wireless carriers were to see a major breakthrough in spectral efficiency and a radically lower cost structure, they could become a more significant infrastructure challenger to NBN.

3: Speed of our network rollout, adequate service levels, and efficient use of taxpayer

monies.

4: The top three issues facing the nation are:

Improving business confidence

The ongoing transition from the mining boom to other sources of economic growth

Continuing to improve productivity

The recent raft of free trade agreements with our key trading partners are one part of the solution. Another is the broader participation in the global digital economy, which NBN will help facilitate and help with Australia’s economic diversification.

5: I would like to make a special plea for a tax system that nurtures Australia’s

entrepreneurs. A tax system that arguably doesn’t incentivise start-ups sufficiently, risks driving innovators abroad to those countries that do. We have proven to be early adopters of technology and we need entrepreneurs to build an ecosystem that will drive our future.

Ian Narev Chief executive, CBA 1: We still have a potpourri of economic indicators: seeming improvements in the US,

reasonable stability in China, but on-going stagnation in Europe and some geopolitical instability. The economic base in Australia is sound. But it needs to be buttressed by clear long-term economic policy that transcends politics. From an investment perspective, we will

continue to invest for the long term. Some of our best investments – such as our technology platform – were made in times of relative economic uncertainty.

2: It is impossible to name a single trend. Mobility, data, and design thinking all provide

opportunities for attacker business models. But equally, they are opportunities for us. Our approach remains to innovate from a state-of-the-art core system. That requires, above all, leaders who understand the opportunity, and can mobilise a culture. Cyber-security is also a major national priority – we welcome the review announced by the prime minister.

3: We are owned by nearly 800,000 Australian households directly, and millions more

through their super. For many of these households, dividend income from CBA is a major part of their annual income, and their shareholding in CBA is a material part of their wealth. They want us to do whatever we can to keep their company successful into the long-term. They also want to see regulation that strikes the right balance between growth and safety.

4: We must broaden our export economy beyond our resource industries, while recognising

that the on-going success of our major resource and energy companies is critical. We need policies that encourage businesses to create jobs, particularly for younger Australians. And we need, collectively, to keep working to reduce disadvantage in our communities, wherever and however we see it. To achieve these goals, thinking long-term is the key. We need businesses to recognise their long-term role in strengthening the economy. And we need elected representatives who are willing to work together, even where they don’t agree, to think beyond electoral cycles and deliver clear budgets, and constructive long term economic policy for the good of the country.

5: Many parallel debates are happening in this area: GST, multinational corporations, overall

taxation levels. They need to be tied together into a thorough review of how to ensure our tax system can contribute to Australia being prosperous for everyone for the long term.

David Neal Chief executive, QBE 1: Insurance pricing is challenging globally, but macro-economic considerations (weakening

dollar and global interest rates forecast to rise) are very positive for a global business domiciled in Australia. Our growth investment is focused on strongly performing geographies, particularly Australia and the Asia-Pacific.

2: Disruptive technology is already a significant threat to personal insurance but less so to

commercial insurance - our opportunity is to think like a disruptor as we redesign our products and services. Opportunities:

Improve our customer value proposition and broaden the products we sell to existing customers.

Better leverage our near-unique global capability to support customers as they do business cross border.

Improved returns on our significant investment portfolio.

3: Our shareholders are looking for earnings stability and predictability in the immediate

term, and opportunities for growth in the medium term. We are focused on achieving both.

4: The top three issues facing the nation are:

Australia’s world-leading financial services industry should be leveraged to support development in Australasia and Asia but risks being held back by over regulation.

High cost of living perpetuates an expensive labour market (and therefore comparative cost of domestic product) and risks making our exports uncompetitive.

Managing positive immigration, supported by investment in infrastructure, technology, innovation, etc., as the foundation for exponential GDP growth.

5: Assisting business to invest for the future and manage for the medium term through a

reduced corporate tax rate and less rigid controls on offshore earnings.

Paul O’Sullivan Chief executive, Optus 1: Australia has a vibrant and constantly changing telecommunications sector. While the

industry is reasonably resilient to Australia’s broader economic conditions, if you don’t invest in infrastructure you can quickly get left behind. Our investment priorities remain expanding network infrastructure so that more Australians can have access to communications and digital services. Optus has invested over $19bn in Australia over the last two decades and right now we’re in the midst of the largest ever mobile network enhancement program in our history. We expect the aggressive rollout of 4G services for customers will get us to 90 per cent national 4G population coverage by April 2015.

2: Telcos are seeking new ways to maintain their relevance with consumers who are less

reliant on traditional call and text services. Meanwhile, the increasing presence of “over-the-top” players who want to use our networks to sell services that compete with ours, without paying for it, presents a challenge for our industry. Optus, and the broader SingTel Group, is tackling this challenge by investing in entertainment, advertising, location and messaging services that customers want.

The telecommunications sector is rapidly evolving, presenting enormous challenges and healthy opportunities for brand innovators. The first challenge is providing mobile and broadband coverage everywhere in a large country with a small and wide-spread population. The opportunity lies with the rollout of the National Broadband Network and access to low-band 4G spectrum, which will provide greater network coverage for Australians.

Second, there is a big shift coming with cloud technologies and software-based working. Our people need to be re-skilled in these new technologies starting now.

Third, big data and analytics have developed greatly over the past several years. While keeping up with these technologies is a challenge, it does present an opportunity for us to predict consumers’ lifestyle and behavioural patterns so we can make informed decisions about the products and services that make a difference for our customers.

3: While shareholders are pleased that Optus has continued to improve its profitability

through careful cost management and yield initiatives, they are keen to ensure that Optus will deliver future revenue growth and to see the monetisation of data become more obvious through more significant mobile data revenue streams. Our shareholders are also keen to see Optus gain momentum in the NBN space.

4: We need to replace the resource-based model for wealth and employment creation with

a national strategy based on building areas of international comparative advantage. We need to better leverage our geographical proximity to Asia in a sustainable way. Investing to ensure a world-class education system would underpin both of these things.

5: We’d like to see tax incentives for investors in technology and bio-science starts ups.

Grant O’Brien Chief executive, Woolworths

1: As I said at our recent AGM we have seen a recent improvement in sales trends across

our business. However in retail, the Christmas trading period is all important and our second quarter will be heavily reliant on the next six weeks of trading. We continue to see opportunities to invest our capital to deliver strong shareholder returns

2: The internet has transformed the way people shop, and online shopping is growing

strongly. Woolworths has responded to the challenge by embracing online innovation. We are Australia's largest domestic online retailer recording $1.2bn in online sales in FY14. We recently opened Australia's first full range online fulfilment grocery store in Sydney. This has helped meet the demand for online shopping, and allowed us to narrow the delivery window. We implemented a “Track my Order” GPS function which allows people to see when a delivery truck is close to their home. Another great innovation has been our Dan Murphy’s “Connections” online platform, where customers can select from an expanded range, linking suppliers and customers through the Dan Murphy’s online platform.

3: As always shareholders are asking us to focus on delivering long-term, sustainable profit

growth.

4: The top three issues facing the nation are:

I have been clear that there is an opportunity for a new wave of micro-economic reform that would drive job creation and national productivity. For example in areas such as the liberalisation of trading hours and the removal of red tape in the planning system. The challenge is how government goes beyond identifying opportunities for reform and lays out a clear path to effect reform. Some of the public policy issues currently being debated are far from new. However despite the overwhelming consensus on the need for reform amongst policy makers we are yet to see the practical changes.

5: N/A

Terry O’Brien Managing director, Simplot 1: We are seeing some signs of growth emerging although we have been concentrating on

new areas of opportunity to help stimulate that. There does seem to be a bit more balance emerging in the “right to manage” our businesses with unions not getting it all their own way. This is a stimulant as far as we are concerned. As a result we have committed quite a bit of capital to new equipment aimed at mainly cost reduction but also some capability and capacity. We are still a long way off attracting growth capital from our US parent company as our returns are still below the opportunities they have elsewhere, particularly in the US.

2: My biggest fear is social media as it seems to be allowed to be used unchallenged to

make statements which even if untrue can do immeasurable damage to a company’s good name. We have set up a reasonably large monitoring system to track social media and to respond as quickly as possible but when one has the market leading positions in a number of food categories one is seen as an easy target for those pushing any particular barrow. Other challenges for us are firstly the imposition of regulation or even expectations that food companies manage lifestyle choices of consumers. This brings cost and limitations to food processors that have nothing to do with nutrition or food safety but rather are a substitute for common sense and self-responsibility. Cumulatively this paints a poor picture of the food industry that is not deserved. The second major challenge remains the lack of competitiveness of Australian manufacturing. We are having some respite as the dollar is falling but to avoid another cycle of job losses and plant closures companies must be

competitive at parity and this means challenging some legacy attitudes within the union movement and Government and related organisations. Finally in our meat business a shortage of cattle is driving prices up rapidly as Asian demand escalates. This means that supply is challenging as the export market soaks up supply and the need to pass on export parity prices is sending shock waves through the food service industry.

3: My shareholders (US) have been a bit unnerved by the degree of variance in successive

government attitudes to business regulation and the potential for longer term investments to be undermined by significant changes. For example, the economics of a substantial investment in a gas co-generation plant in Tasmania are now questionable after the removal of the carbon tax and the potential escalation of gas prices over the next few years. The returns on the food business in Australia are barely adequate and so shocks imposed by short-term ideological changes undermine faith in Australia as a place to invest. It is definitely better under the Liberals but their lack of power in the Senate continues to promote uncertainty and often produces sub optimal legislation. The other main complaint I receive from my shareholders is the cost of the social wage in Australia is high and doesn’t appear to be abating in any way.

4: The top three issues facing the nation are:

Energy cost seems to be the number one concern. Given the US turnaround on the back of cheap energy we are destined to lose relevance very quickly in competitive products. Power costs are a problem because as we work towards a reduction in usage to reduce cost, the lower demand drives higher prices as the utilities try to cover their high overhead loads. I’m no expert, but I wonder if some capacity can be shared across wider areas and some capacity mothballed to reduce the overhead load. In terms of the potential gas price increases I think we should be allowing more gas supply to come on stream to take the sting out of the prices. Coal seam gas may need to finally gain approval in some states.

I can’t help thinking that land and water availability, especially for the food industry, will become a much bigger problem than it is today. It does seem that the climate indications are pointing to longer, dryer spells of weather and as we build on more and more arable land and force food production further into less productive regions, the supply to the growing population must be of concern. GM varieties of some food stuffs can assist in this problem by providing crops that require less water and less inputs and suitability to harsher growing conditions. Government can’t simply sit back and let the first movers of this technology fight the good fight alone. I am a supporter of the construction of the desalination plants and believe we should look for an optimal mix between supply from these plants and from traditional sources into the cities so farming and environmental needs can be met.

Australia has to gain control back from the ideologues and vocal minorities who are giving the nation a reputation of an unwelcoming place to do business. Our sovereign risk profile is poor today compared to the past because our political system sees both major parties shy of any form of dissention. Add to this the aforementioned Senate dysfunction and one is hard pressed to predict the investment environment over the necessary periods.

5: We need to reduce labour related taxes such as payroll tax in favour of increased indirect

taxes such as GST. To have taxes that act as a deterrent to employment makes no sense. Along with possible increases in the rate of GST, we also need to step up the enforcement of tax law in this area because there are many people working around the system quite easily and regularly.

Paul O’Malley Chief executive, Bluescope 1: In FY14 we delivered a 237 per cent increase in group underlying earnings before interest

and tax (EBIT) over the previous year. Our long-term view sees further positive uptick. We have made a number of acquisition investments this year, including: Orrcon and Fielders, Arrium’s sheet and coil distribution business and the Pacific Steel Group in New Zealand. Our focus now is on integrating these businesses and maximising returns from these investments.

2: Email! It never ends! Turning the phone off over the holiday season will help.

Challenges and opportunities:

The country needs to engage in the unsexy business of micro-economic reform to rebuild Australia’s competitiveness. We need a strong foundation to support a broad range of winning businesses – picking winners is a mug’s game

A further challenge is to halt the increasing cumulative cost of doing business in Australia

BlueScope’s great opportunity is to leverage the growth potential from all our investments across a 17-country portfolio of businesses

3: Continue to rebuild shareholder value. The company’s continued turnaround and

progress on growth initiatives have laid a solid foundation for a future return to paying dividends

4: The top three issues facing the nation are:

Tax reform – we need some honesty from both sides of politics to recognise that strategic tax reform can act as an economic springboard for the next generations. Don’t tinker with the edges, be bold and broad based.

In the workplace – its about flexibility and building a win/win trusted culture between employees and leaders

We need a properly functioning domestic gas market – and its not that hard to achieve.

5: Removing payroll tax would be a good start – it’s a domestic impost on domestic companies, a tax that our international competitors don’t face and that undermines our competitiveness.

Ted Pretty Chief executive, Hills 1: The global economic outlook is uncertain and the local outlook muted but that's the new

norm. Businesses will have to win share to grow so investments in sales and product infrastructure and systems are our priority.

2: The internet of everything (IoT) is a threat and an opportunity. We need to embrace

products and solutions that are IP based, wireless and network self configuring. The biggest challenge is the strengthening of the US dollar and biggest opportunity is China. We need to embrace China faster and beyond the resources sector. China's impact on the electronics sector will be profound.

3: It was and for many is still dividends but it should be growth. All of the fruit of the tree

has been well and truly picked even when half ripe. None was preserved for later use. Shareholders should be saying reinvest for growth but most are still in denial.

4: The top three issues facing the nation are:

Foreign Investment and Regulation - clip the wings of big government and agencies, open the markets and reduce intervention. The current government is too

protectionist and has been an economic disappointment. Our national champions need to be innovators not regulators.

Entitlement - the age of entitlement is over. We have to grow up. This starts with governments, parliamentarians, bureaucrats and protected vested interest groups. We must move to eliminate "entitlement" but preserve and improve core social support for the truly needy.

Social cohesion and security - They go hand in hand. This effort requires more resources and unambiguous bipartisan support.

5: A large increase in GST and significant cuts in income tax rates coupled with the reform of

if not elimination of capital gains tax. The tax framework needs fundamental overall. However the current government appears to lack the ticker to deal with it.

Rob Priestley, Chief executive Australia & New Zealand, ASEAN region, JPMorgan 1: The corporate outlook has improved, but is still cautious. Investment plans continue to

target growth especially across the superannuation sector.

2: Data visualization is a powerful opportunity. Challenges include volume of global

regulatory reform, cumulative effect of the changes on the system and cyber security. Opportunities include leveraging our global scale and breadth, positive outlook for long-term growth, and post retirement solutions.

3: Not applicable

4: The top three issues facing the nation are:

Improving productivity, through greater innovation and introducing new technology.

Better processes of government, policy makers must find a way to pass legislation or at least find more room for compromise.

Improving global cost competitiveness including via industrial relations reform.

5: The GST and withholding taxes.

David Robb

Managing director, Iluka

1: Iluka operates mines in Australia and in the US but sells globally, with revenues roughly equally

split between China, the Americas, Europe and the rest of the world. Accordingly our corporate outlook is a function of global economic conditions and of our mineral sands industry demand cycle within that context. Divergent economic conditions across geographies and fragile confidence levels are the norm currently. But we see this as a time of great opportunity and we seek to act counter cyclically where appropriate to ensure we are well positioned for the future. This means pursuing a number of organic and inorganic investment opportunities – at a time when many are not able to do so.

2: Disruptive technologies represent more of an opportunity than a threat in our industry and we are

investing accordingly. Our recent purchase of a stake in a potentially transformative metal powder technology company – Metalysis – is an example of our thinking and willingness to act. The big challenges are all global: economic growth; environmental consequences of that growth; and geopolitical and sectarian tensions. Opportunities for Iluka include the advancement of our mine development projects; investing in new technologies; and greenfields exploration – at a time when many companies are having to cut back in these areas.

3: Apart from the global challenges, the nature and timing of demand recovery in the mineral sands industry is top of mind for many.

4: The issue that dominates all others is the lack of a clear vision for the future of the country,

including ways to enable all to share in that future. We as a nation seem to be resigned to accepting short-term thinking, poor analytical and decision-making frameworks and highly partisan processes from all levels of government and opposition. Shrinking the size of government to get it out of the way is part of the answer, so is continued deregulation and micro-economic reform to lift national productivity and international competitiveness but, fundamentally, we need to encourage genuine leadership and risk taking in all areas of society rather than criticise it or seek to constrain it or attempt to regulate it out of existence.

5: Simplification.

Andrew Roberts Chief executive, Arrium 1: The outlook for grinding media demand continues to be strong. We recently announced

we were investing in a new facility at La Joya, Peru, near our existing plant in Arequipa in Southern Peru, (due for completion mid 2016) to enable us to continue meet the expected strong demand from southern and Northern Chile. This is in addition to our investment to expand capacity in Canada to meet growing demand in North America which is due to be completed mid 2015. The medium-term outlook for steel is for improved demand, and we are starting to see the signs with some improvements in sale. Stronger domestic volumes are expected from increased construction activity, particularly infrastructure. Stronger volumes and a lower Australian dollar are very positive for our steel business, as well as Arrium. In mining, lower iron ore prices, driven by the supply/demand balance and the significantly increased negative sentiment, has resulted in the short-term outlook being far more challenging than it was this time last year.

2: I do not fear any particular disruptive technology, solution or market. The right approach

for Arrium is how do we develop the disruptive position, whether that is technology, or products and services, before our competitors to ensure that we are first movers and be seen by customers as leading the charge to create greater value. We have very good examples in our businesses now that are a key part of our market offer to customers. Some examples would be the roll out of our Next Generation SAG Grinding ball, that has a longer wear life, or our first-mover strategy for capacity expansion with the latest internally development production technology, both in mining consumables or our innovative steel reinforcing fabricated cages and roll out carpets (Bamtec) used in the construction of high-rise buildings and roads respectively in our steel business. These are just a few examples of how we wish to change the market landscape and add value to our customers

3: One obviously is our current share price. The recent capital raising, in which we raised

about $750m, was appropriate and prudent given the iron ore price and significant negative sentiment over the past three months. As management, we are working very hard and with pace to manage the things that we can control to ensure we lift our earnings and cash flows in the current difficult markets, specifically relating to the mining and steel businesses. Iron ore prices are a concern to many mining companies. We are working to ensure we have a mining business that has a significantly lower-cost base and generates positive cash flows. With any free trade agreement that Australia commits to the federal government must ensure that we have fair trade. The key to managing this, where it is not proven to be the case, is a robust and strong anti-dumping policy that is effectively and efficiently (speed) executed by the Anti-Dumping Commission.

4: With the resource sector’s investment contribution to economic growth coming off and

commodity prices declining it is important that federal government needs to quickly deliver on its commitment for construction, and particularly infrastructure construction, to drive

economic growth. Prime Minister Tony Abbott has indicated that he is the “infrastructure prime minister”. Well, we need to see intent translated into action and outcomes now. Our energy costs for electricity and, particularly, gas have a high risk of increasing over the coming years. This will impact consumers (families) or private and public companies with increasing costs that will be very hard to offset. We must have more competition in the market place. Thirdly, there needs to be national productivity improvement in all industries and sectors of the economy. Business, individually and collectively, must play its part through innovation and investments, but Australia will only take a step change in productivity through a clear national strategy by the Federal Government. Singapore has done this for years.

5: We need an internationally competitive taxation system to ensure we attract and retain

innovation and investment in Australia. This would include lowering the corporate tax rate and addressing incentives related to research and development and capital investment.

Stephen Roberts Chief executive, Citi Australia 1: There has been some improvement in confidence and this improvement has borne out an

increased level of capital markets and M&A activity and we have been investing in these areas.

2: The impact of the non-banking sector in the payments system, for example Ally Pay and

Google Wallet. While some of these technologies are competitive to the bank sector some are complimentary but the big issue is when they are not regulated to the same level as banks. It can put extra risk into the system; less protection for participants; and as a competitor they have a cheaper business model if they are not paying the infrastructure costs that others are. Technology has been creating change and innovation in banking for decades, for example the ATM but the challenge today is the managing the velocity of change and what does it mean for current business models, will crowd funding impact business lending or angel finance? In reverse, if you are a start-up with a unique idea the possibility of funding your business through alternative sources could be very attractive.

3: Execution/delivery risk as well as conduct risk and getting the culture right

4: The top three issues facing the nation are:

Education is one of our largest export earners but is facing massive competition and is not getting the investment dollars it needs so we are losing our international standing and competitiveness.

Productivity – Australia remains a high cost market with relatively low levels of productivity. This is not a sustainable business model and requires the government, business, and unions to work together to get structural reform.

We need to rebalance the economy in this post commodity boom environment.

5: Getting a more transparent tax system that is broad based.

Stephen Roche, Chief executive, Australian Pharmaceutical Industries 1: Overall the economy is weaker than expected but we continue to invest behind our

strategic priorities. We expect to open at least 20 Priceline Pharmacy stores in the financial year and we’ll achieve further operational efficiencies. So despite the uncertain external environment we anticipate continued improvements in earnings performance.

2: The combination of the internet and mobile technology is having a huge and continuing

impact on retailing but we view it more as an opportunity than a threat. Our online sales for

Priceline Pharmacy increased by 180 per cent last year but that’s only part of the picture. With an average 7.4 million page views every month, we know that a significant number of Australian women choose to research online before purchasing in our stores and we’ve got an unrivalled product range for these “health and beauty” window shoppers. We’re now leveraging social media channels as well as other technology developments to better engage with our customers, particularly our Sister Club loyalty program that has more than 4.7 million members. We’ll continue to look for opportunities to make emerging technologies work to our advantage.

3: I think our shareholders concerns are the same as everyone else’s. They are concerned

that consumer confidence is already weak and on top of that we’ve got the impasse with the Federal budget and the impact that will have on the state of the economy.

4: In the immediate term, we need both the Government and the Senate to face up to the

fact that we either have to pass the budget or get another set of policies through that will address the growing deficits we will otherwise face. We’re an economy undergoing massive transition so we need the right policy settings to stimulate innovation and investment in the growth industries that will deliver tomorrow’s jobs. And at the same time as we develop a workforce with the new skills required we need to address our cost base so that we remain internationally competitive. All that requires strong political leadership and a sustained commitment to an innovation agenda.

5: We’re already a net importer of capital and we cannot transform our economy and

develop the necessary infrastructure unless we attract significantly more foreign capital. So, first and foremost, we must have tax settings that keep us internationally competitive when it comes to attracting capital. With that aim in mind, it is clear that we need to have a mature conversation about the appropriate mix of direct versus indirect taxation.

George Savvides Chief executive, Medibank 1: We are in the fortunate position of having a strong balance sheet with no debt and

substantial capital available for investment. Delivering “better health” to our members is at the core of everything we do. We’re focused on doing things to ensure our members stay healthy and out of hospital as much as possible – that’s the best outcome for members and for the healthcare system as a whole. Our current investment focus is very much on organic opportunities, and – in terms of capex - over the next couple of years we’ll be investing in our IT renewal program, the bulk of which will be spent on upgrading our digital sales and services systems. We will also invest in new and competitive private health insurance products, new health management services, or to achieve further growth in adjacent businesses.

2: Technology is certainly not something we fear, rather something that we have embraced

because of the enormous potential that it has to transform the way we deliver services to members and the benefits that it presents for the health sector as a whole. Over the last four years we upgraded three of our claims processing systems and now we are investing $150m to transform our customer, policy, premium and product management systems. This is significantly enhancing the way we are able to manage claims and deliver services to members, and it also helps ensure that we are investing in the right areas. In terms of other challenges and opportunities, clearly with the ageing of our population there is additional load on our health system, and it’s critical that we manage these costs appropriately so that health care remains both affordable and accessible. We want to work with private hospitals and other health providers to ensure that members stay healthy first and foremost, and that they are able to access affordable high quality care when they need it. These affordability challenges, together with reductions in the government rebate and the increasing prevalence of aggregators that encourage customers to switch and focus on price rather

than value, have created headwinds for the industry in the form of increased levels of churn and policy downgrading.

3: Since we’ve only just listed our register is still settling, but certainly on the pre-IPO

roadshow we had a lot of opportunity to hear directly from the market about what they think about our business, and we welcome that dialogue with our shareholders going forward. One issue that has come up a bit is the question about my ability, and the ability of the team that has been here for a number of years now, to take the business forward. Our prospectus forecasts are challenging, but the team and I are completely focused on delivering them, and there is an energy and momentum in the business now that I haven’t seen before. One of their biggest concerns is probably regulatory risk, but they seem to draw some comfort from the long-standing policies from government, which support private health insurance and help to take the load off the public system. Apart from that, they want to see us make our prospectus numbers and then grow from there. The proof will be in the pudding but I am confident that the clarity of our strategy and the energy in our team will see us achieve good results for shareholders.

4: Australia’s population is both growing, and ageing and as a result there is likely to be

increasing demand for healthcare across a range of services. Investment in people, in healthcare infrastructure, in services, particularly those focused on prevention and early intervention, and in technology aimed at improving treatment methods are all important factors, and in our view helping people to stay healthy in the first place is critical.

5: We want to see a tax system that continues to support accessibility and affordability of

healthcare across the board. In particular, we’d love to see the government fully restore the private health insurance rebate.

Luke Sayers Chief executive, PwC Australia 1: Business confidence is stronger than it was 12-18 months ago but there is still a lot of uncertainty

that means it hasn’t recovered as much as we had hoped for at this stage. This is partly due to uncertainties remaining in the domestic market as well as continuing instability globally. What businesses need most are certainty and a clear vision for the future and they can then manage their businesses accordingly. The challenges the government has faced in getting legislation passed through the Senate means that businesses are still living with a lot of uncertainty. The FOFA reforms are a good example of this. As a firm, we are continuing to invest in our business for future growth. We are investing both in our core businesses as well as new areas of growth such as digital, our legal practice and how we are supporting businesses that are seeking growth in Asia.

2: Technology is both an enabler and a disruptor and we see it as a fantastic opportunity to

transform business models and drive innovation. That's why we entered into a joint business relationship with Google. We recognise that our clients want to collaborate more effectively, better use technology and information, and adapt to the disruptive forces shaping the world. We are looking forward to not only going to market with Google to help our clients with their technology and transformation opportunities but also to piloting the Google suite of products at PwC and transforming the way we work. In addition to technology, the other global megatrends that will present challenges and opportunities for business are demographic shifts, shifts in global economic power, urbanisation, climate change and resource scarcity, and regulation and public policy.

3: In the conversations I have with clients three areas consistently come up; making the most of the

opportunities in Asia; responding to technological change; and the need for legislative and regulatory certainty.

4: I've taken the liberty of naming the top four issues facing the nation.

We need re-invigorate our spirit of innovation as a nation. I believe both business leaders and political leaders have become too focused on the next results call, or the next election

and, as a result, an inherent conservatism has crept in. Last year Australia invested just $111m million in venture capital. Yet New Zealand invested some $400m. In order to reverse this trend we need leaders who are willing to place long-term strategies ahead of short-term thinking. The example of ANZ’s Mike Smith and Telstra’s David Thodey, who are both pursuing long-term Asia strategies to the possible detriment of short-term results, should be applauded.

We need to reverse the decline of Australian students studying science, technology, engineering, and mathematics (STEM) subjects. Skills in these areas will be fundamental to the jobs of the future – for instance at PwC we are just as likely to hire engineers, scientists and mathematicians to support the growth in our analytics and technology businesses, as we are to hire accounting graduates. In 2012 the proportion of students graduating from STEM-related courses in Australia was just 16 per cent. In Singapore it was 52 per cent. Clearly what we have here is a deep cultural failure in both our education system and our society – one that needs to be addressed as a matter of urgency. Solving this will require a big push from not just the government and our educational institutions, but also businesses, and society more broadly. The choices our children make at school and university need to be addressed at dinner tables around Australia if we are going to get movement on this issue.

For all the talk of the Asian Century, much of Australian business is still living in the American Century and dipping their toe into the many and varied countries of Asia. Our research shows that, only half of Australia’s large companies are doing business in Asia and only 24 per cent have staff on the ground in-market. In my experience, doing business in Asia is not a fly-in-fly-out proposition. Businesses need to invest time, money and effort to understand the various cultures and ways of doing business if they're to make the most of the opportunities presented by the Korea, Japan, and China free-trade agreements.

We must get our balance sheet in order and re-embrace fiscal responsibility as a nation. A huge part of this is tax reform, but it’s also about improving the productivity of our workforces and reigning in spending. We can’t keep spending what we don’t have or we are going to leave future generations with a debt burden that will rob them of the standard of living we are used to today. Without major fiscal policy change, our debt will exceed our gross domestic product within 25 years. Cutting waste and driving efficiencies in Government is important, but it will not be enough. We need to spend far more carefully and direct funds only to things that lift productivity, create jobs and encourage growth, such as prudent investment in infrastructure. We also need fundamental tax reform. It’s not the panacea, but it is a large part of the solution.

5: The first thing that should be on the agenda is a conversation that includes all parts of our society.

We need to build broad understanding in the community that the taxes we pay fund the services we have come to expect: education, a strong health system, public infrastructure and a safety net for those who need it most. The reality is, with an ageing population and growing fiscal deficit, future generations will not be able to enjoy these important foundations of our society without fundamental tax reform. The process needs to involve genuine consultation with businesses, unions, social welfare groups and the wider community. We also need to make sure all facets – from land tax to GST – are on the table. Comprehensive tax reform must deliver a grand bargain that underpins economic growth, looks after the vulnerable and low-income groups, and delivers secure budgets at all levels of government.

Ian Silk Chief executive, Australian Super 1: Corporate outlook remains subdued with a degree of uncertainty effecting business

confidence. Low wages growth is a factor in a subdued economy, in particular in retail.

2: Most technological advances are thrusting more power in the hands of consumers –

knowledge; ability to act; ability to communicate; etc. Not an issue to be feared, but one that needs to be recognised. Three other challenges/opportunities: rise of consumers; need for nimble management and organisations; cynicism over government and regulatory power not being exercised in public interest.

3: Volatility in investment markets, frequent government changes to super and Issues of

trust in the industry

4: No response

5: Long-term sustainable taxation revenues that meet the community’s appetite for services

are needed. We need some combination of increased revenues and/or a decrease in expectation of services provided by government.

Rob Sindel, Chief executive, CSR 1: Residential housing construction continues to improve and in our view will be stronger

for longer, driven by the low interest rate environment and strong population growth in Australia. Investments will be in building systems which provide smarter, faster and easier to use construction methods particularly in multi-residential construction.

2: Supply chain and digital technology enables our competitors or new entrants to connect

with our customers. CSR is currently developing its own logistics and supply capabilities to provide customers with the information they need to make their businesses more productive and efficient. Think combining Uber and internet banking on the one platform. Other challenges are managing input costs increases (such as gas) which are rising faster than inflation and the continuing increase in labour costs without the corresponding improvements in workplace productivity. Opportunities include improving the energy efficiency of buildings and to increase the proportion of offsite construction to improve productivity at building sites

3: The ability to grow earnings above the impact of the residential construction cycle

4: The top three issues facing the nation are:

Ensuring Australian manufacturing companies can continue to leverage the competitive advantage of lower energy costs compared to other manufacturers in the Asian region. New gas developments should be contracted to domestic customers before export contracts are negotiated.

Introducing an industrial relations environment which encourages employees and employers to work together to deliver productivity gains

Complacency – 23 years of growth has meant that many companies and the nation have not had to address fundamental issues. We want more services from government but find it difficult to embrace the reform necessary to deliver the outcomes

5: The tax base (GST) needs to be changed in both breadth and quantum while eliminating

inefficient state taxes such as payroll tax and stamp duty. The tax regime could be greatly simplified by reducing the size of government as percentage of GDP at state, federal and local level. (unachievable but you did ask!)

Andrew Smith Country chair, Shell Australia 1: Demand for energy exports remains strong, so the biggest factor in investment plans

remains costs and productivity. We are committed to current projects, but want to see productivity improvements before we commit to more.

2. Technology and innovation are the keys to making Australian LNG competitive. We need

to embrace floating LNG technology to mitigate against local cost pressures. Beyond that modularisation of equipment will help make projects competitive, and ensure we have Australian workers deployed where they can make the greatest contribution.

3: Costs and productivity are highest on their list. We should aim to have the highest paid

workers in the world, but this will only be sustainable if our workforce is the most productive.

4: Activists have been effective in arguing against the next wave of job creating projects.

Business leaders need to fill the void in this debate, and advocate for new waves of investment opportunities. Calls for market intervention in areas like domestic gas reservation are gaining traction. We must resist knee-jerk reactions that create false economies and prop up uncompetitive industries. A sustainable federal budget is of enormous importance because it remains the best way to ensure stable fiscal settings, and volatility in the fiscal environment is a powerful disincentive to investment. 5: Stability: many resource projects take 25 years to become cash positive, with lead times this long fiscal stability is an absolute prerequisite to make Australia attractive for foreign capital. We must resist the temptation to play with fiscal settings to fix short-term problems.

Mike Smith, Chief executive ANZ Bank 1: The corporate outlook is still quite cautious; however we’ve now had seven years of

cautious. There will be new capital required as plant and equipment comes to end of life and those replacements are likely to flow through to the rest of the economy. I think people are gradually getting used to the new normal of the lower growth environment and they’re now making the necessary adjustments. Hopefully, this leads to confidence continuing to gradually improve. For us we are comfortable continuing to invest in our businesses across the board. In fact, we haven’t stopped.

2: It’s not so much a fear but I think the effects of digitisation will be as significant as the

changes imposed by the industrial revolution. However, getting the cultural change required to accept the digital age will be the major challenge. The challenge from our own industry from disruptors and new technologies is real and banks need to be constantly alert to the emerging competitive threats. There will be no room for Luddite behaviour.

3: The key concern I keep hearing from shareholders is around changing capital

requirements and regulation. While good regulation is essential in ensuring the safety and stability of the global economy, it’s important we don’t keep imposing new rules without fully understanding the impact of current rules that are yet to be fully implemented. We also can’t make the Australian banks uncompetitive on a global basis in trying to solve a problem that is not immediately obvious in the first place.

4: The top three issues facing the nation are:

Infrastructure is quite clearly critical and there is no downside to good infrastructure. It creates jobs and opportunities when it’s being built and it improves productivity and business access when it’s finished. Not everyone thinks in terms of productivity but time wasted commuting for instance is simply wasted effort. One way to address this would be to make it easier for large superannuation funds and insurance companies to invest in infrastructure projects. This would be a practical reform that could significantly improve the productivity of our country as a whole.

Australia also needs to wake up to the concept to smart cities. Digitisation is now the biggest change affecting cities, a change as big as electrification or the development of mass transit systems. Building a smart city – one where digital technologies and big data can be used to get the most out of existing physical infrastructure – therefore becomes extremely significant in making cities even more

liveable and productive and addressing the challenges of urbanisation including congestion, pollution and public amenity.

Simplifying the tax system is an absolute priority. We should look at the success of New Zealand which has significantly lowered personal and business taxes but has a much broader based consumption tax. These changes set their nation up well as one of the best performing mature economies post the GFC.

5: Broadening the base of the GST should be top of the agenda. But we can’t make changes

to the GST without reducing income and business tax. Again, we need to look at the positive impact that taxation reform has had in New Zealand and learn from their experience.

Patrick Snowball Chief executive, Suncorp 1: Following the 2013 federal election, both corporate Australia and the general public were

looking for improvements in confidence and outlook. We’re still yet to see any significant shifts in either. However, there has been genuine appetite, both politically and publicly, to reshape Australia’s economic and corporate landscapes for future prosperity. A series of reviews and inquiries into competition, regulation and funding have supported this. The post-GFC environment has largely focused on stability, but this is now slowly shifting to improving confidence, innovation and growth opportunities. This will require reform from both the business community and governments that enables progress while building consumer trust. In the immediate-term, among low growth and tenuous consumer confidence, businesses will look to efficiency-led growth. At Suncorp, we continue to invest in technology that enables us to respond quickly to changing customer needs and interact with them in new and more convenient ways. Additionally, we are investing in our data capability to identify emerging product and service opportunities.

2: While disruption may have negative implications for organisations that refuse to adapt,

those who embrace new ways of meeting customers’ needs will be presented with an equal amount of opportunity. Data and culture present huge opportunities. Firstly, being able to harness data insights and apply them in a continuous delivery fashion will enable us to keep pace with evolving consumer needs and behaviours. Suncorp has recognised this, and we are in the process of bringing together a range of internal and external data to better understand how our customers want to interact and how we can add greater value. Secondly, fostering a culture of innovation where diversity of thought and experience are encouraged maintains a competitive edge. Suncorp’s flexible working options and Work@Home models are assisting us bring previously untapped talent into the workforce. We offer conditions that allow people meet other commitments such as study or family while making valuable contributions to our company.

3: Suncorp has a very loyal shareholder base, which demonstrates their belief in this

company. For a period, they didn’t get the returns they probably expected, but pleasingly we’ve been able to turn that around. Our aim has been to build a simple, low-risk financial services group that provides consistent and predictable returns. In the 2014 financial year we paid $1.3bn in ordinary and special dividends, a 40 per cent increase on the previous year. The share price has increased by 13 per cent and we achieved growth of 5 per cent across the business in the same period. We’re delivering both yield and growth that is what most shareholders are looking for.

4: As an imported CEO I’m somewhat careful about telling Australians how they should run

their country. But, from a financial services perspective, the key issues on my radar include:

Achieving a level playing field for the banking industry by addressing the capital and funding anomalies between major and non-major banks.

A continued shift of funding from natural disaster recovery to mitigation, putting downward pressure on insurance premiums.

Reforming the life insurance industry for the benefit of customers, insurers and financial advisers.

5: The tax system is an important mechanism to fund social welfare, services and

infrastructure. It needs to be efficient and equitable. There’s opportunity to eliminate or harmonise state based taxes across Australia, such stamp duties, to reduce the administrative burden on businesses. Complementing this would be a broadening of the GST base, while providing income tax concessions to protect lower income earners. I’d expect tax reform to attract further government attention as we enter 2015.

Mark Steinert Chief executive, Stockland 1: Stockland’s outlook has improved, but the Australian economy continues to present

mixed signals. Stockland will continue to invest in new residential and retirement living communities in high-growth corridors, together with our $1.2bn pipeline to redevelop and expand key shopping centres, and maintain our growth strategy in logistics and business parks.

2: Online shopping is certainly changing the retail landscape. Our retail strategy is proving

highly successful in this changing environment, creating community places, anchored in lifestyle and leisure, every day convenience and affordable luxuries, services and the best fresh food and casual dining. Challenges:

Managing assets exposed to mining-dependant regions

Strong competition for property acquisitions

Modest growth in GDP and wages, hence demand for commercial real estate Opportunities:

Increase the supply of affordable homes in good, well-serviced locations to address metropolitan residential under-supply

Creating outstanding independent retirement living to appeal to Australia’s ageing demographic

Undersupply and population growth is driving above average residential price growth in key locations

3: Global geopolitical risks, slowing growth in China and anaemic growth in Europe. From a

domestic residential point of view, there is the issue of how the market will respond when interest rates increase. However, the residential market is underpinned by long-term under supply.

4: Rebalancing the economy as it moves away from mining capex and into production. We

need to focus on areas of competitive advantage that have growing demand, including tourism, food production, tertiary education, healthcare, technology and financial services. As a nation, we need to address general inefficiencies, over-complexity, duplication and lengthy approval processes, while maintaining our high standards. Within the property sector, we’d like to see more streamlined planning and development approvals processes.

5: Australia has a very complex tax regime, so we need to simplify the tax code and take a

pragmatic approach. Tax reform should use micro and macro changes and a modest GST increase to offset and reduce the marginal personal tax rate and company tax rate to incentivise the efficient allocation of capital.

Judith Swales Managing director, Fonterra Australia 1: There’s a lot of interest in dairy and the recent signing of the China FTA is a great win for

our industry. We are all about growth and looking at investing in smart customer partnerships that can create a pathway to consumers. For us, it’s about connecting customers with our nutritious dairy foods and milk pools – this is where the value is for us and our farmer suppliers.

2: I don’t fear any technology – it’s an enabler to explore farm to plate opportunities. For

instance, consumers can easily get data about the provenance of products and transparency through the supply chain by using an app that can scan barcodes – this is another great opportunity to build greater trust in food sources. Farmers being able to get accurate and timely data about their production and pricing on a smart phone is another opportunity to help create smart farmers that are armed with the data they need when and where they need it to make quick decisions.

3: Fair returns on their investment in an increasingly competitive environment. Can

Australia be a strong dairy producing nation or are we priced out of the market due to the high costs of manufacturing and excess capacity?

4: The top three issues facing the nation are:

Lack of true innovation in food. We have a history of being excellent primary producers – so why aren’t we leading the world with new food trends. We need to move up the value curve, invest in innovation and come up with the future foods.

Small and shrinking talent pool – how do we keep the talent in Australia, how do we make it attractive for talent to come to Australia.

There’s a skills and labour shortage. If we’re to have a globally competitive dairy industry, we need to attract and retain an educated and skilled workforce.

5: To be able to compete globally in food production, we need a robust supply chain – and it

starts at the farm. There has to be greater incentives for farmers to invest in their operations to increase efficiency, modernise and grow. We are competing with supply chains out of the US where there is size and scale and lower cost producing countries, such as those in Asia and Latin America. Farm operation costs have to come down and investment needs to go up. Tax can be a driver of the right type of investment.

Giam Sweiggers Chief executive, Deloitte Australia 1: Although we are concerned about the lack of confidence in our business community we

remain confident about the economy and our business. We made several acquisitions over the past twelve months and intend continuing to do more over the next twelve months.

2: We don’t fear disruptive technologies as such – we try to work with them. The best way

of beating disruption is to embrace it. We try to get their first. Technology enabled access to the best expertise in the world has created local competitors that we have never had. The speed with which this is happening will disrupt all professional services. We are seeing the emergence of players that combine complex data analytics with ease of access through digital interfaces solving complex problems in ways we have not seen before. Our alliances with these players are a valuable source of competitive advantage. The biggest opportunity is the impact of design thinking on professional services - an opportunity to transform how our services are experienced. Making the right " where to play " choices as the economy transitions. Understanding the changes and be willing to redirect assets to potential high growth areas.

3: How do we continue to produce double-digit growth? We have had an excellent twelve

months and need to ensure we continue to make the right choices as the economy transforms.

4: The top three issues facing the nation are:

We have to get confidence back into the business community and the consumer. The government has a responsibility to bring confidence back.

Reducing red tape - not only government red tape but also the huge amount of red tape organisations have imposed on themselves.

Further strengthening our ties with Asia. We have so much to gain from our current position.

5: An increase in the GST.

David Thodey Chief executive, Telstra 1: The operating and economic environment for many businesses across a diverse range of

industry sectors remains soft, reflected in the fact that business confidence has lost ground according to the latest business surveys. This vindicates the RBA’s current position of sustaining monetary stimulus by keeping the cash rate lower for longer to shore up growth prospects. Domestic GDP growth forecasts below-trend with generally sluggish demand conditions and soft earnings weighing on the growth outlook. This is despite well-documented strength in the housing market. On the global front growth outlook is now more uncertain which is also weighing on domestic growth prospects. While the outlook for the US, Britain and some emerging market economies such as India remain favourable; this is largely offset by weak eurozone and Japanese growth, while China is expected to continue to grow on a slower trajectory. Having said that our position on growth remains positive – we continue to look at ways we can grow through investing in new businesses and growing in new geographic markets. Our aim is to continue to build on the good progress we have made in the areas of software, e-health, network applications and media, and our growth into the ever-important Asian region.

2: Our industry is undergoing historic transformation, driven by rapid technological

innovation in mobility and cloud infrastructure and an explosion in connectivity and bandwidth demands of devices and customers. While technology disruption does pose a potential risk to our core business, we closely monitor and evaluate new technology innovations. Within this changing environment we see great opportunity to move from being a telecommunications enterprise to a multi-faceted technology company. In the mobility space we continue to invest to ensure that Australians have access to one of the world’s leading mobile networks, through the roll out of one of the world’s largest Wi-Fi networks and continued innovation in our 4G network such as 4GX to bring higher speeds and extra 4G coverage. In cloud infrastructure we are partnering with providers of best-in-class cloud infrastructure, such as our partnership with Cisco to help our customers around the globe design the best cloud environment for their business. We are also moving into technology opportunities adjacent to our core business, such as the formation of the Telstra Software Group (and its recent acquisition of Ooyala) and our acquisition of different stakes in a range of e-health companies.

3: Our shareholders are keenly interested in our capacity to generate continued growth

from our core business, including how we transition to the NBN and how we maintain our mobile network superiority. Incremental growth from our investments in Asia and new adjacent markets is also a key focus for them.

4: The top three issues facing the nation are:

Accelerating investment in infrastructure. Both government and business have a role to play to partner in closing the growing gap in infrastructure funding to meet the demand caused by worldwide population growth and technological innovations.

A macro policy focus on improving productivity nationwide. There needs to be a greater conversation by government and business on how we innovate – in infrastructure, education, business and as a country, to gain and maintain a competitive edge.

How we create new innovative industries and a culture of innovation to remain globally competitive. Strong ICT and innovation policy framework at all levels of government to help foster and support the investment community, and a strong education system in STEM (science, technology, engineering, mathematics).

5: The tax reform agenda is complex, full of many potential items with interrelated impacts.

There is not one top item but many, such as lowering the company tax rate, reducing GST exemptions, looking at the GST rate, getting rid of inefficient state taxes that impede business, addressing the Commonwealth and state tax collection and spending framework, and appropriate and balanced consideration for the welfare sector. The underlying objectives should be equity for all Australians, about making the Australian economy more efficient, reducing business impediments, encouraging infrastructure investment by capital intensive industries and enabling Australian business to be internationally competitive.

Andrew Thorburn Chief Executive, NAB 1: We have a huge potential, and there is a need to invest to grow. The renewed focus on

growth following the recent G20 summit in Brisbane – and with initiatives such as the signing of the free-trade agreement with China, there are some good reasons for Australians to feel confident about 2015. The NAB Business Survey shows that in recent months we've seen noticeable improvement in the trend for business conditions, another sign pointing to broader improvement. In particular, SME business conditions have lifted to the highest levels since 2009. There are opportunities waiting for Australian businesses that back themselves to grow and we’ve committed to lending $1bn a month to business, to help them realise that potential.

2: Technology is transforming the way we interact with customers and NAB will always

strive to lead when it comes to innovation. There would be few, if any, banks around the world that are matching our efforts to transform our entire technology environment. We will keep our focus on customers, keep delivering for them while continuing to raise the bar – and we will keep ourselves in a very competitive position. Our competitor banks and new players are challenging us – but if we truly engage with our customers and be bold.

3: Our shareholders have a clear strategy and then delivery. We made a number of

important steps this year to address legacy issues, in a disciplined and methodical way. We have stated our intention to exit our Yorkshire and Clydesdale banks and we’ve already commenced an exit of our business in the US. We are going to continue to focus on our core Australian and New Zealand franchise – and to invest in delivering for our customers here.

4: The top three issues facing the nation are:

We cannot be complacent. We need to be aligned on our vision for the future. Despite business conditions showing steady and accelerating improvement, confidence has been eroding more recently. While investment in the mining sector is contracting, there are some initial signs of re-balancing coming from some non-mining sectors, particularly health, education and tourism. We need leadership from business to recognise the opportunities, to back growth and to create new jobs.

We need to ensure we are creating opportunities for the next generation to prosper. Research by NAB Economics shows that, across the community, wellbeing is lowest amongst those aged 18-29 – not surprising given the levels of youth unemployment. It is in the interest of the business community to tackle youth unemployment by, connecting with young Australians, preparing them for the jobs of the future and building the next generation of our workforce.

Our research also shows that the ability to fund retirement is the single biggest driver of consumer anxiety. The finance industry needs to step up and help Australia tackle the trillion dollar national retirement savings gap we are facing, as our population ages. We have a responsibility to our customers, to help them have a comfortable retirement – and to do so, we need to make financial advice more accessible and affordable, and to rebuild consumer trust in the industry. That’s why, in 2007, we led the industry in moving to a fee for service model to provide greater transparency for our customers and reduce conflicts. We’ve also championed a culture of putting our customers first and we’re proud of this stance, which has attracted advisers of similar beliefs and values.

5: We need a tax system in place that supports the continued growth and prosperity of the

Australian economy and is much simpler.

Sam Walsh Chief executive, Rio Tinto 1: There is no question the outlook for our business remains volatile. While the long-term

outlook remains sound, as we move into 2015 the near term is undoubtedly much more challenging. At Rio Tinto, capital discipline is a priority for us and that remains the case for next year. You can expect we will be focusing only on the projects with the highest returns to drive shareholder value. As for M&A, it’s not something that is taking up too much of our time at the moment. We are looking at delivering on our promises and we remain committed to materially increase cash returns to shareholders in a sustainable way. So watch this space and you’ll hear more in February.

2: We have a strong track record in developing and adopting technological change at Rio

Tinto. This approach has helped us maintain low-cost positions and be a world-leader in our sector. But big data looms as a major disruptive technology if we don’t work to take advantage of the information generated by our business. It help us to better understand how our business is operating and importantly offers the opportunity to generate significant business value. We’ve been working hard in this area of big data but we cannot be complacent and must continue to stay in front to maintain the competitive advantage. Other opportunities are through our Mine of the Future program that is helping us create safer and more productive systems and drive business improvement. At the end of the day, it’s all about shareholder value and that’s why technology and innovation is at the core of how we run our business. We’ve led the way in process optimisation with our iron ore operations centre in Perth to coordinate our iron ore operations in the Pilbara that are 1500km away. Through our processing excellence centre in Brisbane, we are looking to drive greater efficiencies and productivity throughout our global operations in other commodities, including copper and coal.

3: Shareholders are looking for companies to deliver on their promises. We have seen more

subdued market conditions and that is squeezing margins for many companies. However, Rio Tinto has world-class assets and because our strong balance sheet and robust financial structure, we are able to provide more visibility and comfort than many others in the sector. Our iron ore operations in the Pilbara stand out as one of the most attractive businesses in the world, not just in the mining sector, but across all industries. Shareholders will be

looking to see we retain our focus on ensuring that we continue to improve productivity and maintain the cost reductions that we have achieved so far. Let me assure you, there will be no complacency on that front. Looking out over the next five years, we expect to generate strong free cash flow, and we remain committed to materially increase cash returns to shareholders in a sustainable way. So watch this space in February.

4: The top three issues facing the nation are:

Boosting productivity is something that Australia as a nation needs to devote time to. At Rio Tinto it is a message I drive throughout the business, from my executive team all the way through to the frontline employees. So productivity needs to be a focus for government in the same way it is for business.

Creating a more competitive taxation system stands out as one of the fundamental reform issues for Australia as we look ahead to the next phase of economic growth. Like business, countries need be competitive, especially when it comes to tax and Australia needs to look at what it can do to become more competitive. In today’s world, competition between nations for investment flows means it is no longer enough to focus on the tax rate alone. We saw this last month with the G20 in Brisbane. The views of international investors seeking a level playing field are gaining currency. At the G20 we all sensed a growing momentum behind a push for transparency and clear rules applying to all players, underlined by the tenet that taxes should be paid where profits are earned.

Cutting red tape, to make it easier for businesses to invest, create jobs and grow should also be a priority.

Rio Tinto will continue to work constructively with the federal government on all of these issues.

5: Australia now has a company tax rate that is at the top end of OECD countries and of

countries in our region. It is no longer competitive. We need to restore Australia’s competitiveness and ensure the tax system is competitive, efficient and equitable. Business wants to invest, grow and create jobs but we can only do that if the investment climate and the economic policy settings are right. Taxation policy is a major component of that and the corporate tax rate in Australia is out of synch with our competitors. In our modern, interlinked global economy if countries want to attract investment, they cannot afford to have an uncompetitive tax system. In the corporate sector, business is all about competition. We compete in world markets and we aim to be the most efficient and productive in our sector. In the same way, countries need be competitive, especially when it comes to tax. Countries should not only focus on bolstering the tax base with important reforms but focus on having a competitive tax rate.

Mike Wilkins Chief executive, IAG 1: In late 2013 we had hoped the Federal Election would give greater certainty but the

composition of the Senate from 1 July this year has challenged this. There is uncertainty within the business environment that is a result of the challenges the Government has faced with its legislative and budgetary agenda. Resolution of these matters is required for business confidence to be restored. We are continuing to focus on our strategic priorities including the integration of the Wesfarmers business, evolving our business to respond to rapidly changing consumer needs and being a more efficient organisation in Australia and New Zealand, as well as growing our businesses in Asia.

2: Companies should embrace the changes brought about by technology disruption, not

fear them. In many ways the user led digital revolution has been the biggest disruptor our

times with mobile technology reigning supreme. You only need to see how active people are on mobile devices when travelling to work to prove that. We’re continuing to invest in digital platforms so we can deliver better experiences for our customers. We now have the capacity to interact with customers whenever and wherever they want. Challenges and opportunities:

Empowered Customers. Today, customers can access most knowledge known to mankind in the palm of their hand. So they are better informed, have higher expectations, are more demanding and they want good value and great advice. They also want the companies they deal with to reflect their values and be community conscious and responsible corporate citizens. This is a real opportunity for IAG as we focus on gaining a deep understanding of our customers and put them at the centre of what we do.

Asia is a key opportunity for IAG that we believe will be a significant contributor to IAG's performance. We're in five of our six target markets in Asia, Thailand, Malaysia, India, China and Vietnam and continue to have an interest in investing in Indonesia.

Natural Disaster Resilience remains one of the key issues for the industry and governments to address. Communities continue to be exposed to a wide range of natural disasters that have devastating impacts, socially and economically. Government, business and communities need to work together to focus on mitigation. Natural disasters like floods, cyclones and bushfires don’t stop at state borders so we need a nationally co-ordinated approach to dealing with them. Developing a national open source platform will give people the access they need to critical information for protecting their families, homes and businesses.

3: The insurance sector has become increasingly competitive across both commercial and

personal lines, so we are focusing on maintaining underwriting discipline in a low-growth environment. That said, we have built a solid platform over the past few years and our shareholders expect us to run IAG as effectively as possible and to provide certainty that we have the right strategies in place to keep delivering over the long term. That’s why we’re presently integrating the Wesfarmers business and restructuring our operating model, which strengthens our ability to meet the needs of our customers and partners by providing additional expertise and more choice of products and services.

4: I see the three areas of focus being increased funding for mitigation infrastructure,

addressing overregulation and also embracing workforce diversity in order to build a sustainable Australia.

Mitigation Infrastructure – As an insurer, the impact of, and response to, natural disasters is a major issue. Australia has a high exposure to natural disasters so we need to look at mitigation infrastructure and the way it is funded. We believe the funding formula for natural disaster spending needs to be turned upside down - the Australian Government invests about $50m each year in mitigation measures but it spends on average more than $560m on post loss recovery. For every $10 spent on post-disaster recovery, only $1 is spent on pre-disaster mitigation. That’s the wrong way round. So we’re pleased the Productivity Commission has recognised this and recommended the Government increase disaster mitigation funding to $200m. Investing upfront will save lives and property and it’s far better than the cost of repairing the damage after a disaster has occurred.

Overregulation – We believe there should be a balanced approach to regulation. Governments should not act to address “problems” through regulation unless a case for action has been clearly established. A clear example is the Government’s recent announcement to allow unauthorised foreign insurers (UFIs) into North Queensland, a move that will have unintended consequences. There is a risk that foreign insurers

won’t be subject to the same regulatory scrutiny and capital requirements and customers will not be afforded the same level of consumer protections.

Diversity IAG recognises that diversity is vital to driving good business outcomes. It is important that businesses tap into the talent and experience of employees from all backgrounds. We’ve highlighted the need, and have increased the proportion of women in management; we’re providing opportunities for indigenous employees and we are ensuring we value mature workers and provide them with ongoing opportunities for training, skill development and fulfilling careers.

5: State taxes and charges represent a significant proportion of the cost of insurance, and

can potentially add between 10 to 25 per cent on the cost of household insurance premiums. These inefficient state insurance taxes and charges penalise businesses and households for doing the right thing - clearly this taxation impost needs to be reduced. We also look forward to participating in the Government’s upcoming White Paper on Tax Reform.

Gary Wingrove, Chief executive, KPMG Australia 1: Balancing reform and regulation changes across corporate Australia, with the need to

stimulate growth continues to be challenging. That said, our clients are actively looking for opportunities to grow their businesses, with a number of sectors growing and many leading companies performing well. Rapidly changing technological and customer consumption patterns are focusing industries to undergo transformations of their business models. These include financial services, all 3 tiers of government, media and retail. A steady increase in M&A activity indicates a level of slowly building confidence in boardrooms across medium to larger organisations. At KPMG, achieving sustainable profitable growth is a high priority. We have a deliberate strategy of focused investment and inorganic growth – which has already resulted in improved growth at both top and bottom lines. We have acquired four complimentary businesses during the year (including social media risk consulting firm SR7; mining services consultancy Momentum Partners; and property consulting group SGA Property), hired 46 new partners; and expanded our alliance network, most recently with Artesian Ventures Partners to deepen our footprint in the entrepreneur/start up space.

2: Disruption is increasingly a characteristic of the business environment in every sector

here, and globally. My view is to embrace change, and work closely and quickly with our clients to predict and leverage opportunities for growth. “Quickly” is an important word to note – with an increasing number of our clients asking for a discussion and within 24 hours, engaging us on new work. It’s a real shift in business behaviour. Embracing new technologies continues to be a key theme for our clients. For us, this is about creating opportunity for our clients and helping them to look at how they can lift productivity by focusing on internal factors such as technological advances and innovation, right through to work practices, economies of scale, gains from specialisation and the right resource allocation. I also think there is a significant opportunity for corporate Australia to use big data to improve the customer experience. KPMG has done a lot of research around Fintech, one of the world’s fastest-growing new industries; and we’ve strengthened our collaborations with the entrepreneurial/start up community - which will benefit not only our organisation and start ups, but also our corporate clients. Other big opportunities include cloud solutions, which we utilise ourselves (faster service, quicker return on investment; and business intelligence and analytics (it’s become an imperative).

Challenges include finding new solutions for how governments deliver services to their constituents (digital, private and non profit sector partnerships); leadership and capability (attracting the best talent globally, particularly to maximise opportunities in Asia).

3: For KPMG our “shareholders” equate to our partners. With this context, the top 3 would

be:

Sustainable and profitable growth for the firm

Continued investment to attract and develop the best people

Speed and agility – adapting to the market environment quickly and effectively

4: The top three issues facing the nation are:

Balancing in the debate with the outcomes. Creating a stable policy and investment environment is fundamental to long-term productivity and the economic prosperity of Australia. From a political perspective, it’s important that the policies of our government in office are consistent, and that they don’t oscillate from one extreme to another - as has been the case in the past. Part of this discussion also needs to be focused on getting the balance right in the debate of economic good versus social good. Higher education and healthcare reform, for example, will be big issues for Australia if we don’t achieve consensus between political and societal views.

Balancing reform and growth agendas. Balancing reform and regulation changes across corporate Australia, with the need to stimulate growth continues to be challenging. These issues impact business and a critical and unintended output is productivity losses, rather than gains – as corporate Australia struggles to find the balance of continuous adaptation and implementation, versus investing for long-term business strategy.

Taking a longer-term view. Governments have to be focused on building business and consumer confidence so there will be investment for the future, rather than the short term. Corporate Australia has a responsibility to work as global citizens and look beyond populist policy and reform, in order to future-proof our country and serve our place in the global economy.

5: The twin priorities on tax will continue to be international and domestic. The OECD’s

Action Plan on Base Erosion and Profit Shifting (BEPS) mean it is no exaggeration to say 2015 will probably be the most important year in the history of international taxation. A large number of deliverables covering financing, transfer pricing, controlled foreign corporations and when a company has a taxable presence in another jurisdiction will be published. The volume of material to be considered at a frenetic pace gives rise to a risk that there will be unintended consequences. The priority for the Australian government and treasury must be to ensure that all the main areas of focus are legislated domestically very carefully and the Australian tax base doesn’t suffer. On the domestic front, 2015 will be a year for considering our tax rules under the White Paper process. It is the centenary of a Federal income tax in Australia and an appropriate time to change our policy settings so that we can better embrace the Asian Century as a competitive nation. We should be looking at replacing our most inefficient taxes, which are mostly state-based, with more efficient taxes. Certainly this will raise important issues of equity, transitional fairness and the shape of our Federation. Some measures are politically difficult, such as changes to the GST regime, but the prize for all Australians of sensible reform in the long term is too difficult to ignore.

Scott Wyatt, Chief executive, Viva Energy Australia 1: Energy demand remains strong despite obvious challenges in the resources sector and

local economy generally. We expect to invest $1bn over the next five years to improve our refining business, expand our supply capability and develop our customer offer.

2: Manufacturing in Australia remains challenging despite recent depreciation of the dollar.

Better use of technology and innovation will be critical to help us improve productivity and compete with mega-refining complexes in other lower cost countries. My fear is that inflexible and outdated work practices slow us from going after these opportunities.

3: Our shareholders see a country with strong fundamentals and opportunities to invest and

grow. Regulatory and fiscal certainty, relative costs of construction, and workplace productivity are key factors that will influence their ongoing investment appetite.

4. The top -three issues facing the nation are international competitiveness, productivity,

and regulatory reform. Inconsistent regulation across the states and general over-reach by government at all levels adds considerable unnecessary costs which slows investment, increases local prices, and reduces international competitiveness. Reducing red tape needs to remain at the top of the government’s agenda.

5: Reducing complexity to drive down administration and compliance costs, while

broadening the tax base to reduce the overall tax burden and improve equity across business and the community.