AMC50381_AmCham_AFR_Magazine_V4_SPR

Issue 01A c c e s sSpring 2014Welcome President Obama

AmCham John Berry Patron United States Ambassador to AustraliaMessage from Ambassador Berry Next year, we will mark the 10th anniversaryfor AmCham of the Australia-U.S. Free Trade Agreement. Since 2005, our bilateral trade has risenAustralia and the United States are at a to approximately $60 billion, trade thatmomentous time in our history together. has benefited all of us. Australian miners and farmers are using U.S.-manufacturedThree years ago, during his first visit to equipment that has helped drive the exportAustralia as President, Barack Obama outlined booms underpinning Australia’s long streakhis vision for a U.S. rebalance to the Asia- of economic growth. Australia’s best winesPacific. This announcement marked a major grace American dinner tables, and Australianstep forward in our relationships with both factories produce many of the parts used byAustralia and the region. our airplane manufacturers.This weekend, I am pleased to welcome Today, the United States is the largest foreignPresident Obama back to Australia where investor in Australia. At the end of last year,he and Prime Minister Tony Abbott will join U.S. direct investment in Australia was $159leaders from some of the world’s biggest billion, and Australian companies had investedeconomies at the annual G20 Leaders’ $44 billion in the United States. If we countSummit in Brisbane. We look forward to robust indirect investment, the entire U.S.-Australiadiscussions of key economic issues. This year, investment relationship is worth more thanas a result of Australian leadership, the G20 a trillion dollars! We’re proud that Americanhas made steady progress in advancing our companies are also leading employers ofshared agenda of stimulating global growth, Australians, from manufacturing to technologyensuring a sustainable economic recovery and companies to the financial industry. Our wide-creating jobs. ranging economic relationship proves that free trade and open investment regimes make goodThe President’s visit presents a unique business sense.opportunity to celebrate the unparalleledbilateral ties between the United States and Today, we are presented with an enormousAustralia. Forged in the crucible of war and opportunity to expand free, fair, and openbuilt on a foundation of shared values, our trade and investment. The Trans-Pacificpartnership has upheld the peace and security Partnership (TPP) lies at the heart of our sharedthat have made the remarkable economic rise commitment to building prosperity in theof this region possible. region. The United States and Australia are negotiating with ten other countries to bring down barriers to trade and investment and to open markets across the Asia-Pacific region.

The agreement will include strong protections Contentsfor workers, the environment, intellectualproperty, and innovation. Our businesses and Access Issue 01farmers will have greater access to a tradingarea that produces 40 percent of the world’s 2 Message from Ambassador BerryGDP, creating more and better jobs. It will set 3 Contentsthe standards for trade in the 21st century. 4-5 Welcome from Niels Marquardt 6–7 BoeingWhether in trade and investment, 8–9 Caterpillarhumanitarian relief, or security and defence, 10–11 Conoco-Phillipsthe United States has no better friend or 12–13 Delta Airlinesally than Australia. We are grateful for 14–15 GEAustralian leadership, advice, and support as 16–17 GM Holdenwe work together to address the world’s most 18–19 Incitec Pivotpressing problems. 20–21 K&L Gates 22–23 Kimberly-ClarkClose people-to-people ties, including those 24–25 Landorbetween business and non-government 26–27 Macquarieorganisations such as the American Chamber 28–29 PPRof Commerce, are a pillar of the relationship 30–31 PwCbetween the United States and Australia. I 32–33 Virgin Australiathank you for all that you do to promote trade 34–35 Westfieldand investment, mutual understanding, andclose cooperation between our two countries, Published - AmChamand look forward to continuing our worktogether to advance this relationship. Magazine Editorial and Management - PPR Brand and Magazine Design - Landor Associates Our partners

A warm Niels Marquardtwelcome from CEO, AmCham AustraliaA future optimistic hundreds of billions of dollars of accumulated Reading these stories, we are all able toand bright: The US- wealth. America is by far the largest investor appreciate what it means to create good jobsAustralia partnership in Australia, and America is by far the in one another’s economies. We are able to largest overseas destination for Australian grasp how shared values underpin our largestOn behalf of the American Chamber of investment. These gargantuan, two-way flows companies’ ventures across the Pacific. We canCommerce in Australia, I am delighted have created a trillion-dollar shared bet that see the improvements that these investmentsto join Ambassador Berry and the people continues to grow more significantly than are bringing to the lives of ordinary citizensof Australia in welcoming President any other Australian investment partnership. in both countries. We can explore the reasonsObama back to Australia! Barack Obama Combined with the robust two-way trade why Australian and American companies areis only the fifth American president to between us, these unrivalled investment flows making big bets in both countries, and wevisit Australia while in office, and he is have made America – in the words of multiple get some insight into the futures they arecoming back again following his first Australian ministers – “Australia’s leading building. As you can see, that future is a brightvisit in November 2011. After Lyndon economic partner.” and optimistic one that will help to conveyB. Johnson and George W. Bush, he will the best ideas, innovations, practices andbecome only the third president to visit In 2013 alone, the American stock of FDI ethics between these two partner nations.twice while in office. In my view, this in Australia rose by an additional A$35 This collaboration is the essence of the US-now ingrained practice closely reflects billion, to reach a total of A$149 billion. Australian economic partnership.the steep rise of Australia as a critical This was perhaps a surprising developmentAmerican partner in security, economic for observers expecting some of the rising We are especially pleased to present aand global leadership terms. nations of Asia to start challenging the balanced picture of the many sectors in primacy of the US-Australia partnership. In which trans-Pacific investment is makingAccess is intended to call particular attention, fact, the gap between America and the next a difference. Through just 15 stories, weand pay tribute, to the unparalleled economic most important investors in Australia – the see how Conoco-Phillips and Incitec Pivotrelationship between Australia and the UK and Japan – grew wider in 2013, rather are, in different ways, developing energyUnited States. While it is surely true that than narrowing. As for the inevitable question resources. We can see the value of vibrantAmerica has no closer friend than Australia, about China, its $5 billion worth of new growth in airline services from Delta andI do not think this phrase goes nearly far investments in Australia in 2013 put it in 7th Virgin Australia as a means to bringing twoenough in describing fully how warmly place among foreign direct investors here. closely allied nations even closer. The CEO’sAmericans feel about our mates down under. This amounted to 13 percent of the American stories from Boeing, Kimberly-Clark, and GENor does it capture the depth and breadth inward flow in the same year. If these trends will remind readers of the importance ofof our multifaceted engagement with one continue, America is on track to remain the R&D collaboration and niche capability toanother. In addition to sharing democratic largest foreign investor in Australia well into maintaining Australia as a successful platformvalues, cherishing human rights and the rule the future. Yes, we are also bullish on the for advanced manufacturing, as well as theirof law, defending liberty and protecting the opportunities that flow from ‘the Asia-Pacific important roles in creating thousands of goodless fortunate, collaborating to solve the Century’, but sometimes it is necessary to jobs in Australia. K&L Gates’ story highlightsmost difficult global challenges, welcoming remind ourselves that America has long been how vital shared values are to promotingimmigrants to our shores from around the a Pacific nation itself. business growth through the provision ofplanet, and a host of other distinctions legal services grounded in ethical practice andshared by very few other peoples, Americans These bold statistics may speak for themselves, the rule of law. Caterpillar is intent to showand Aussies genuinely enjoy working and but the purpose of Access is to create some readers that they are about values at least asspending time with one another. This feeling for the human side of the two-way much as they are about big yellow trucks andextreme personal and cultural affinity sets investment relationship. Indeed, few of us can tractors. The Macquarie Group and Westfieldthis relationship apart, in my view, from really put our hands around unwieldy, 11-digit each educate us on how and why Australianthe bonds America enjoys with other key sums! Yet we are able to appreciate stories firms continue to see so much promise in theeconomic and security partners. about what specific companies from Australia huge American market. GM/Holden reminds are doing in America and vice versa. Telling us that while their activities are evolving inThis closeness between us is no more evident them from the CEO perspective gives them an response to the changing market, this iconicthan in the field of two-way investment added personal dimension that I hope you too firm’s commitment to Australia has neverbetween our peoples and nations. Simply will enjoy. wavered. PwC is a great example of a seedput, Americans and Australians are betting from America sprouting and growing into anheavily on the success of one another, enormous tree of knowledge independentlywith each nation entrusting the other with serving Australia and the entire Asia-Pacific region. Landor will educate readers on the

importance of brands becoming more agile We have moved beyond the American eaglein today’s hypercompetitive and fast-moving that so well served us since our inception,world, and PPR discuss the importance of a and instead have adopted an ‘A’ for Australiaglobally integrated communications program. and America – and Access. Reflecting the colours of both nations’ flags, we are still red,All of these firms’ trans-Pacific investments white, and blue, and we feature the five-are characterised by superlatives. For Boeing, pointed star common to both. Our new lookAustralia represents their largest overseas is very intentionally more progressive andemployment footprint. For Westfield, more international, as more than half of ourAmerica represents their largest overseas members are now non-American firms. Butpresence. For many American firms, including we still see ourselves as the voice of AmericanCaterpillar and GE, Australia – with ‘only’ 23 business in Australia, as well as a voice ofmillion people – represents their largest or Australian business in the US and throughoutsecond-largest overseas market. Many have the Asia-Pacific region. To better fill thosebeen in these markets for decades, some for big advocacy and information roles, we arealmost a century. Thanks to the expansion actively building up our structure of AmChamof air services by airlines like Virgin Australia committees and working groups to coverand Delta, America has become the leading Defence & Security, Human Capital, Energyoverseas destination for Australian travelers. & Resources, Trade & Government, Health,Macquarie may now be Australia’s single Innovation, and Taxation, with additionallargest investor in America, across a range new groups slated for launch in 2015.of sectors. The gas liquefaction complexat Curtis Island in Queensland, in which We hope you enjoy reading Access. We hopeConoco-Phillips is a major investor and the that doing so will leave you with many newprimary technology supplier, represents the insights into the myriad benefits flowing tosingle largest investment site in the entire both American and Australian citizens fromhistory of Australia. PPR opened its first office the enormous trade and investment takingoutside of Australia in the US and was shortly place in both directions between these twoawarded the World’s Most Innovative PR great nations. And thank you all for joining inAgency. These superlatives give the reader welcoming President Obama back to Australia!some idea of the enormous scale of theUS-Australia economic relationship. Until next time,AmCham of course has its own story to tell.Founded in Sydney just as John F. Kennedyentered office in 1961, we have growninto the largest international businessorganisation in Australia. We have a presencein six Australian capitals. With some 1,000corporate members and over 200 eventsand programs offered each year acrossthe country, we offer unrivalled access toopportunity in the international businessspace. We continue to evolve in interestingways, as reflected in our new brand. Niels Marquardt 4-5

AmCham Maureen Dougherty Access President, Boeing Australia and South Pacific AmCham PresidentA long haul partnership “This is Australia’s largest single aerospace contract valued at $5 billion over 20 years toWhen asked if the adjustment to life in produce the moveable trailing edge – that’sAustralia has been difficult, Maureen the wing control components – for the 787,Dougherty smiles broadly. The recently and it is world class,” she said.appointed president of Boeing Australia& South Pacific has slipped into the role “We won the work based on Australian Today Boeing has neverwith an ease her colleagues say has innovation and technological know-how. been a more invigoratingseemed “effortless”. place to work, and “These type of contracts are not simply handed Australia is truly amongAs head of the aerospace and defence out to businesses because they have Boeing the most dynamiccompany ‘Down Under’, she is tasked with in the name or some form of ownership, we places to operate anensuring all parts of the business in Australia have to win the work and demonstrate we can aerospace business.operate efficiently across all divisions and deliver the best product at a good price and onare thoroughly integrated with the Boeing time, to beat many other competitors aroundbusinesses across the United States and the the world.rest of the world. “And we are doing just that.”In Australia, Boeing has its largest footprintoutside of the US with more than 3,000 “The Australian team came up with patentedemployees working at 27 sites around the technology for a resin-based infusion systemcountry. Boeing products and services form that enables the composite components to bea key part of Australia’s world-class defence ‘cured’ without the need for an autoclave. It’scapability. This includes the Wedgetail E-7 truly innovative and extremely efficient – usingAirborne Early Warning and Control aircraft, less infrastructure and energy to produce theSuper Hornet strike fighter and C-17 military parts – and the intellectual property residestransport aircraft, and Australian companies with Australia.contributing to Boeing products sold all overthe world. Dougherty believes the company could not achieve this degree of success without“I know the strong Australian dollar has been a significant investment in research andchallenging in recent years for exporters like us development. Worldwide the company investedand our many Australian suppliers; but these US$3.5 billion in R&D last year; a significantchallenges are not insurmountable. Although investment for any company.we operate in a high cost environment,Australia is building a reputation for Boeing Research and Technology has aproductivity and innovation,” Dougherty said. particularly large presence in Australia; the largest outside the United States. WithShe points to the work being done at laboratories and offices in Melbourne andBoeing Aerostructures Australia at Brisbane, the team of highly qualified peopleMelbourne’s Fisherman’s Bend for the is working on breakthrough technologies that787 Dreamliner aircraft. span the breadth of aerospace today. Head of the company’s research operations, Michael Edwards, said the work being done in Australia is truly world class.

U.S. investment into Australia 30The USA is top foreign investor in $657.9 bAustralia with AUD $657.9 billion in 2013 – 20 $562.9 ba 26.7 percent share of the total of 2.5 trillion.The leading investor countries as of31 December 2013 were: 10 0 $131 b $60.5 b $51.3 b $47.1 b U.S. U.K Japan Singapore Hong Kong Switzerland“We like to tackle interesting problems,” After almost 90 years in Australia, the Creating and developing productivehe said. company’s relationships with small to medium relationships across the Boeing business here sized enterprises (SMEs) in Australia are deep in Australia and for its suppliers is a key part ofOne such project underway is the creation of and enduring and continue to expand every Dougherty’s role too.a virtual world capability that can be used for year. Seven years ago the company set upsimulation-based tests and experimentation in the Office of Australian Industry Cooperation As president of the American Chamber ofthe same way physical tests can be undertaken (OAIC) based in Seattle to identify immediate Commerce, earlier this year she was invited toin the real world. and long-term opportunities for SMEs within take part in the Prime Minister Tony Abbott’s Boeing’s global supply chain. first Australian trade delegation to the UnitedEdwards also believes it is important to States and Canada.collaborate with and invest in research Dougherty recognises that with a companyand the company is especially proud of its of the size and scale of Boeing, it can “I was there to represent the Australian25-year history of working with the CSIRO. be challenging for smaller businesses to business along with other Australian CEOs toThis relationship has produced a number understand how to identify opportunities reinforce the Prime Minister’s message thatof technological breakthroughs that have within the company. Australia is ‘open for business,’ and it was aresulted in taking the ideas through to real honour to do so,” she said.commercialisation. “Australian SMEs come in all shapes and sizes with varying talents, business abilities “After all, Australia really is open forAustralian universities also play a major and expertise, and initially much of the work business. We have a highly skilled androle in Boeing with the company providing by the OAIC involved training to ensure educated workforce working on leading edgesponsorships and bursaries over the years, as they had the skills and knowledge to deliver technologies and we are continually investingwell as collaborating and contributing to some internationally and were across subjects like in our people, our partners, our R&D and inexciting research projects. LEAN manufacturing and Quality Assurance our universities to ensure we have a long term that are integral to our business,” she said. future here.”“Right now some of our researchers areworking on how Unmanned Aircraft Systems Today, Australian contractors are involved in “Today Boeing has never been a morecould be used for commercial applications every Boeing commercial program and every invigorating place to work, and Australia iswithin shared civilian airspace through the defence platform. truly among the most dynamic places todevelopment of a computer-vision based operate an aerospace business,” she adds.‘Sense and Avoid’ system in collaboration with “The OAIC works because it delivers tangibleQueensland University of Technology.” benefits like industry intelligence, training, introductions, partnerships and of course, work for Australian business,” she said. The proof is in the numbers – the OAIC has created more than 320 bidding opportunities to date and facilitated more than $336 million worth of export contracts for Australian suppliers. 6-7

AmCham Douglas R Access Oberhelman Chairman and CEO, Caterpillar Inc.The Value of Significantly, this move reflects the priorities 2020 Goals for Product Stewardship:Sustainability of the next generation of leaders and the heightened focus placed on sustainability • Safety: Provide leadership in the safety ofIn 2012, 20 years after the landmark 1992 around the world. people in, on and around their products.Earth Summit in Rio world leaders, alongwith thousands of participants from NGOs This move by Caterpillar is reflective of broader • Products, Services and Solutions: Leverageand the private sector again gathered in industry initiatives and demonstrates that technology and innovation to improvethat city to speak about social equity and sustainability is not just a series of practices sustainability of products, services andenvironmental protection. conducted to benefit communities, the solutions for their customers. environment and enterprise; sustainability isOfficial discussions focused on two main now inherent in the way Caterpillar employees • Systems Optimisation: Increasethemes: how to build a green economy do their daily work. managed fleet hours by 100to achieve sustainable development and percent. (Baseline: 2013)lift people out of poverty; and how to What Caterpillar has done is set long-improve international coordination for term goals for operations and product • Remain and Rebuild: Increasesustainable development. stewardship; standards they believe affirm their remanufactured and rebuild business determination to lead the industry to a more revenues by 20 percent. (Baseline: 2013)Sustainable practice is no longer a fad. It sustainable future.is prevalent in manufacturing, retail and Business has a unique opportunity to leadvarious other industries and is preached by By taking a look at these goals, we can gain the development of solutions for some of themost businesses in the developed and even an impression of a good way for business to world’s most challenging issues associated withdeveloping worlds. approach their sustainability practices. energy, water, land, climate and quality of life.In fact, sustainability is a key element in 2020 Goals for Operations: As the global leader in providing the productsoperational charters for most businesses and and services needed for carefully extractinghas been readily adopted by employees. • Reduce their recordable workplace resources and developing infrastructure, injury rate to 0.6 and lost-time case Caterpillar is at the apex of many issues andIn some cases, it is the staff whose community- rate due to injury to 0.15. provides a solid example of how to act.minded values drive sustainability change;significant advances toward sustainable • Reduce energy intensity by 50 As the population grows and migratesprogress have resulted from these efforts. percent. (Baseline: 2006) to urban areas, needs for sanitation, water, transportation and housing willOther times, a company itself takes the lead. • Use alternative/renewable sources to meet escalate dramatically. 20 percent of their energy needs.This was the case in 2013, when the world’s Caterpillar’s capabilities associated withleading manufacturer Caterpillar began • Reduce greenhouse gas emissions intensity distributed power generation coming froma transformational journey with respect by 50 percent. (Baseline: 2006) diverse sources ranging from natural gas toto sustainability. By formally recognising renewable fuels can contribute greatly tosustainability as a core value for the enterprise, • Reduce water consumption intensity addressing energy shortages around the globe.the company embedded sustainable practice by 50 percent. (Baseline: 2006)into its culture to make it an integral part of Up to 25 percent of the world’s land istheir DNA. • Reduce by-product materials intensity now highly degraded. Caterpillar’s machinery by 50 percent. (Baseline: 2006) can play a major role in restoring these lands to improve ecosystem health and increase • Design all new facility construction land productivity. to meet Leadership in Energy and Environmental Design (LEED) or We need to work together to implement the comparable green building criteria. measures needed to fully embed a sustainable future. To tackle these challenges all companies

G(irls)20 SummitSydney 2014need a strong moral compass and a set of • Girls reinvest 90 percent of “Our bilateral trade hasvalues at the core of their culture. The ways their income in family. grown by around onebusinesses can contribute to sustainable third since we entered intoprogress are limited only by imagination, so • When there is just a 10 percent increase a free trade agreementit is time to unleash the human capital and of girls attending school, a country’s GDP in 2005.”–David Johnston,talent required of effective leaders. More than increases on average by 3 percent. Defence Minister.ever, the world needs sustainability leadership. • An educated woman will educate herMaking Progress Possible for Women children (boys and girls) equally.Commitment to sustainability and innovation At the 5th G(irls)20 summit held in Sydney,goes beyond products. It must take into delegates from around the world gathered toaccount investments intended to alleviate discuss growth, employment, sustainabilitypoverty and address basic human needs like and infrastructure. Tiffany Kirkwood, Caterpillarenergy, water and food. District Manager, discussed the leadership opportunities and contribution women canThe Caterpillar Foundation targets the root make to global companies.causes of poverty and their grants are aimedat disrupting this cycle to help put people “It is inspiring to see a group of young womanon the path to prosperity. Since 2012, it has addressing and challenging global issues ininvested just under $80 million in girls and an effort to make a positive impact in theirwomen, through programs that address access communities,” Kirkwood said. “The exponentialto clean water, energy and microfinance, economic growth resulting from developingeducation and more. and educating women will forge a greater willingness for leaders to drive progression.”One of the many initiatives that CaterpillarFoundation supports, G(irls)20, aspires to Given the critical role women play in helpinginfluence and shape the future economic build strong communities and economies,policy of G20 leaders and to cultivate a new Caterpillar is committed to ensuring that girlsgeneration of female leaders around the and women around the world have everyworld. The benefit of investing in girls and possible opportunity to succeed. That’s whywomen yields a strong return for companies, they are supporting the G(irls)20 Summit incommunities and countries: an effort to empower the next generation of change agents. 8-9

AmCham Ryan Lance Access Chairman and CEO ConocoPhillipsAustralia’s burgeoning partner in the Australia Pacific LNG project in Australians gain job creation, infrastructureLNG export business Queensland, rapidly approaching completion development, technology transfer and and startup in 2015. We serve as operator of economic growth; and the people of the worldAs the Group of Twenty (G20) meets to its liquefaction facility, which is supplied by gain a cleaner environment.address the vital topic of international coal seam gas, with which we have decades ofeconomic cooperation, we at successful experience in the United States. We Given its substantial conventional natural gasConocoPhillips are reminded and wish are also pursuing promising new opportunities, resources offshore, its coal seam methaneto acknowledge the close and enduring including potential development of the Greater resources and potential shale gas resourcesrelationship established between this Poseidon and Caldita-Barossa offshore fields. onshore, and its rapid pace of development,year’s host nation, Australia, and our home Australia appears destined to become thecountry, the United States. We believe it Just as Australia poses opportunity for world’s leading exporter of LNG.should serve as an example of cooperation ConocoPhillips, its energy exports offer a keyand friendship in a world in which nations to future economic growth and prosperity for At a personal level, we are gratified thatare increasingly dependent on each other energy-importing nations. Income growth and ConocoPhillips technology plays a vital rolefor mutual economic prosperity. urbanisation in developing countries is driving in this growth through broad utilisation of energy demand ever upward. Each year the our Optimised Cascade liquefaction process,We also wish to recognise the growing role that world adds 150 million people to its middle which transforms raw natural gas into export-Australia’s natural gas will play in providing the class, creating new energy demand, while 1.3 ready LNG.Asia Pacific Region with the energy needed to billion people worldwide who lack electricitypower modern life and economic growth. and 2.6 billion who lack clean cooking fuels Through a long-term collaboration with are also seeking access to energy. Meanwhile, Bechtel, the process – as well as plant designOur two countries have much in common world population by 2050 is expected to reach and engineering support – is available forbeyond our shared history and heritage. We 9 billion; an increase of 2 billion from today. licensing. Of Australia’s 10 major LNG projectsboth occupy positions of strategic importance already operating or under development, fiveon the Pacific Rim; we both recognise that in These realities portend a ready market for all utilise Optimised Cascade; including our owna highly competitive world, it’s wise to have forms of energy, particularly natural gas, due Darwin and Australia Pacific facilities and theclose friends, allies and trading partners; and to its availability, affordability and clean- Queensland Curtis LNG, Santos GLNG andwe are both building a brighter energy future burning nature. Natural gas emits little of the Wheatstone projects. In total, six licensedby developing our abundant natural resources. soot and nitrogen oxides that cause acid rain projects are under way in Australia, the UnitedFurthermore, Australia is already a major and smog. Further, gas-fired power generation States and Angola.energy exporter and the United States is poised plants produce only half the greenhouse gasto assume that status very soon. emissions produced by equivalent coal-fired Among our other innovations during a 45-year plants. Expanded use of natural gas to replace history in the LNG business, ConocoPhillips builtWe have great pride in being part of this other fuels thus represents the fastest and the world’s first LNG carrier for internationalrelationship. Our two-decade presence in lowest-cost option through which to address trade; established the world’s second successfulAustralia has led to billions of dollars in climate concerns. Analyses indicate that for commercial liquefaction facility, and originatedcapital investments. We are one of only two every tonne of greenhouse gases emitted LNG exports to Japan. These are examples of acompanies currently operating liquefied natural during production of Australian LNG, emissions leading company working with partners locallygas (LNG) export facilities in Australia: from our in importing nations are reduced by 4 to 9.5 and across the seas with tangible benefits for all.Darwin facility in the Northern Territory and the tonnes through displacement of less clean-associated Bayu-Undan offshore producing burning fuels in electricity generation. Innovations and collaborations like these offer afields in the Timor Sea. Furthermore, our reminder that the shared success of Australia’sinvolvement is growing: we are a foundational As such, the benefits of Australian LNG burgeoning LNG export business could serve as extend even more broadly. Consuming an example for other nations and industries. We nations gain the energy access they need; wish the G20 every success in its deliberations during the crucial 2014 meeting.



AmCham Richard Anderson Access CEO, Delta Air Lines Reshaping a Delta’s employees and our leadership team business model put innovation at the forefront of a series of strategic business decisions, which included: In today’s fast-paced global environment, the business landscape changes rapidly. • The creation of subsidiary Monroe Energy, Incremental change is no longer enough which purchased an oil refinery in Trainer, to successfully adapt over the long term. Pa., to address the rising cost of jet fuel, To achieving a sustainable competitive which is our number one expense. advantage, companies and organisations must increasingly consider a complete • The acquisition of a 49 percent reinvention of their business model. stake in Virgin Atlantic to strengthen Delta’s presence in the US-UK market That’s the path we took at Delta Air Lines, and provide real competition in this which is one of the largest global carriers, market for the first time. serving 165 million passengers every year to 323 destinations in 59 countries. • The decision to invest in strategic equity partnerships in GOL and Aeromexico to After a period of great financial difficulty for grow the critical Latin American market. the U.S. airline industry in the years following 9/11, we engaged in a series of steps to • A strategic expansion of Delta’s network reshape our model with the goal of becoming in the key business markets of New the global airline of choice for customers, York, Seattle and Los Angeles. employees and investors. • Complete interior upgrades to all Delta The ultimate goal of our restructuring was international wide body aircraft, which is to reduce financial risk and volatility, and to on schedule to be completed this year, and further enhance our sustainability for long-term replacing small 50-seat domestic aircraft success, and end the destructive boom-and- with larger aircrafts to improve operational bust cycle that had trapped the airline industry efficiency and the customer experience. for decades. • The launch of a new SkyMiles program in Jan 2015, which will better reward our most valuable customers.Full flat-bed seats in BusinessElite® Delta Sky Club®

“Past, present and future, the United States is – andI suggest is likely to remain – Australia’s single mostimportant economic partner, taking into accountinvestment stocks worth over one trillion dollars, plusour two-way trade.” –Julie Bishop, Foreign Minister.The results of our focus on innovation have Such investments include: Building alliances has also played anbeen remarkable. Last year, Delta reported important role in Delta’s Asian networka $2.6 billion profit, paid out more than • Installing full flat-bed seats on all expansion. In addition to Virgin Australia,$500 million in profit sharing for Delta international wide body aircraft. Delta has partnerships with China Eastern,people, provided pay raises for all employees, China Southern, Xiamen Airlines, Korean Air,produced a $350 million return of capital to • Placing Westin’s Heavenly inflight China Airlines, Vietnam Airlines and Garudaour shareholders and saw us return to the bedding products and Tumi amenity Indonesia in the Asia Pacific region. TheS&P 500. kit on all BusinessElite seats, codeshare agreements with these airlines allow Delta access to the interior cities inThis year, Delta expects to report a record $4 • Introducing Economy Comfort™ the rapidly growing Asian countries, whilebillion in pre-tax profit, which will be the largest seating with additional leg room and providing partners with access to Delta’sprofit in the history of passenger aviation. recline in the Economy cabin. leading North American network.The media took notice. Delta was recognised • Operating more Wi-Fi-equipped When doing business in the internationalas the 2014 Airline of the Year by Air Transport aircraft than any other carrier. markets, companies have a civic obligation toWorld magazine and one of FORTUNE give back to those communities. Considerationmagazine’s 50 Most Admired Companies. • Providing more First Class seats of charitable programs and philanthropicThese accolades reflected the hard work of on U.S. domestic flights. causes can go a long way to not only buildingDelta’s 80,000 employees worldwide and the alliances but also shaping their future.foresight, wisdom and resilience of Delta’s • Upgrading more than 45 Delta Skyleadership team. Club® locations worldwide. In coming years, the global industry will continue to work to reduce volatility andSo why has Delta been so successful? In short, • Creating new international terminals achieve a greater level of stability despiteit is because we have embraced change and at New York-JFK and Atlanta. economic and geopolitical uncertainty.committed to excellence, innovation and With regard to the aviation industry, U.S.servant leadership. • Updating delta.com and the Fly Delta airlines, led by Delta, have established a app, among several other initiatives. path toward financial stability that includesDelta is making strategic decisions based on balancing supply and demand, deployingrationally building a sustainably profitable Another example is our focus on improving innovative solutions to address long standingbusiness. Our employees are active the onboard dining experience. BusinessElite® industry issues, and never losing the focusparticipants, and in many cases, the leaders, customers enjoy a top-of-the-line in-flight on serving customers. Customers willof this culture of innovation. All of our key dining experience with meals created by increasingly enjoy the benefits of a healthy,stakeholders – employees, customers and award-winning chefs and menus that are competitive airline industry that can provideinvestors – reap the benefits. That’s why we refreshed seasonally and vary according to ongoing improvements to service. Airlinesee our ongoing investment in our people as a departure city and destination. employees will benefit from job security andcritical component of our ability to consistently career opportunities, and investors will reapachieve operational excellence and deliver a One final thing to consider when the rewards.superior customer experience. implementing sustainable change is building key alliances. Close cooperation with strategic None of this would have been possible without partners is the most effective way to a commitment across the entire company to broaden global presence for customers fundamentally reshaping our business model and improve economic performance in key in every way we could for future success. international markets.Also at the forefront is investing in delivering Delta’s joint venture partnership with Virginthe best possible customer experience in Australia has become a critical part of ourthe air, on the ground and at all points of strategic growth. Delta launched its firstcustomer engagement, Delta has continued Sydney to Los Angeles flight on July 3, 2009,to make strategic investments in products, and signed a joint venture partnershipairport facilities and technology to improve our with Virgin Australia the same year. Thecustomers’ overall experiences. strategic alignment was approved by the U.S. government in 2011, greatly expanding options for customers traveling between the U.S. and Australia. 12-13

AmCham Geoff Culbert Access President and CEO, GE Australia and New Zealand AmCham Director The top ten companies alone in Silicon Valley have a combined market capitalisation of USD $1.7 trillion. That is more than Australia’s total gross domestic product.

Can Australia be the We made this significant investment because of students in four crucial disciplines: science,next Silicon Valley? we see massive change taking place. The technology, engineering and mathematics. We rapid convergence of the physical and commend the Prime Minister’s announcementAustralia is at an inflection point. digital industrial world is driving global last month to set up five industry growthWe have enjoyed 20 years of technology trends, accelerating innovation centres and the Commonwealth Scienceuninterrupted growth fuelled by the and encouraging greater global collaboration Council as part of its Industry, Innovation andinsatiable demand for resources and through access to big data, smarter and more Competitiveness Agenda. This policy is crucialenergy from our Asian neighbours. connected machines and real time analytics – in boosting our nation’s knowledge economy, something we call the Industrial Internet. encouraging greater entrepreneurship andNow, as commodity prices level out, capital bringing business, government and industryinvestment slows and various sectors inevitably These trends will reinvent industry as we know closer to commercialise ideas with speed.become disrupted by global technology it and transform the way we work. This focustrends, we face a critical question: how can on software and the profound opportunity Businesses must also continue to invest and atAustralia be competitive in a world where for greater collaboration with our customers GE we know we have a role to play in this. Init is increasingly difficult to win? There are on analytics and applications is critical to our 2012 we opened a $100 million technologyremarkable opportunities for Australia. While success in global markets, including Australia. and learning complex in Jandakot, Perth.we may not have the size, scale and population We have since provided over 45,000 hoursof other leading economies we do have the So what can we learn of critical training and skills developmentknowledge, creativity and entrepreneurial spirit from Silicon Valley to for our people and our customers in the oilto compete with the best. drive Australia’s growth? and gas, mining and transportation sectors. Since 2010, we have been running openTake Silicon Valley, for example. With a At the very core of the region’s success is innovation challenges to develop criticalgeographical size of about three thousand its highly skilled and richly diverse workforce technologies. In 2012, we launched our firstsquare kilometres and a population of and an extraordinary culture that is open, local ecomagination challenge, which soughtapproximately three million people, Silicon nurturing, thrives at risk-taking and is out disruptive technologies for a low carbonValley leads the world in many sectors, comfortable with failure. future. We also have a $20 million, five-yeargenerating economic impact well above its innovation partnership with the CSIRO wheresize. The top ten companies alone in Silicon Australia’s ability to compete globally in a we collaborate with research to address globalValley have a combined market capitalisation connected, technology-driven future lies in challenges around healthcare, materials,of $1.7 trillion. That is more than Australia’s the strength of our knowledge economy. We energy, resources and analytics. We launchedtotal gross domestic product. too can compete on a base of innovation and this alliance in 2010 and have seen real entrepreneurialism. However, we have to invest advances in technologies that will changeSilicon Valley attracts the best and brightest in skills and talent. Demand for engineering people’s lives.from all around the world. It is a breeding talent in Australia currently outstrips supply.ground for entrepreneurs, technologists, We must invest more in STEM education. The time to act is now. With the rightinventors and investors. It has the world’s STEM is a curriculum based on the education investment and policy frameworks to enablehighest concentration of high-tech workers and business investment and risk-taking, we canhigh-tech manufacturing. It is home to some develop and nurture a highly skilled workforceof the world’s most innovative and disruptive for the knowledge economy. We can buildcompanies. For these reasons and more, GE Australia into a hub for innovative businesseshas invested $1 billion to establish a software and technology leadership. We can fuel growthheadquarters in Silicon Valley. We added through a culture of creativity and invention.1,000 software engineers who are working on We can make Australia competitive for theapplications across our businesses in healthcare, next generation.transportation, energy, oil and gas. 14-15

AmCham Gerry Dorizas Access Chairman and Managing Director, GM HoldenHolden and General No Auto Company Knows Australians of Australian life. And we have taken ourMotors – An Australian Like Holden great cars to the US; like the Chevy SS, whichand American Union continues to draw critical acclaim. Holden has been helping to give AustraliansThe key to building a successful business better journeys for almost 160 years, starting Just as importantly, over those decades, bothin Australia is the ability to embrace in Adelaide, South Australia, when company Australia and the United States have beenchange and re-invent your company founder James Alexander Holden established enhanced by welcoming migrants into ourwhen times demand it, while at the same his saddlery business in 1856. communities. Our workforce at Holden came totime retaining the trust you have built reflect the changing composition of Australia’sin your brand and your relationship with Since then, Holden has grown and changed as population, as waves of migrants from theAustralians. More than anything else, the Australia has grown and changed. Australians United Kingdom, Italy, Greece, Vietnam and soability to adapt will drive success. – dealing with such vast distances – were many other countries joined our company. For among the first in the world to fully embrace many thousands of migrants and their families,Be Global, Think Local the potential of the automobile and, in 1917, Holden provided their start in Australia. Holden began assembling cars imported fromFew companies better embody the friendship the United States and the United Kingdom. Changing With Australiathat exists between Australia and the UnitedStates than GM Holden. In 1931, Holden was acquired by General Australia continues to change and GM Holden Motors (GM). Becoming part of GM provided is changing with it.It is Holden’s Australian heritage and our the capital and the expertise that enabledincorporation into General Motors (GM) Holden to play such a pivotal role in building Over the past three decades, Australia’sthat makes us one of the top automotive Australia’s economy. automotive market – like so many other facetscompanies in this country. of the country’s economy and society – Over the following decades, manufacturing was has opened to the world. More than 60 brandsOur local heritage and global footprint has GM critical to Australia’s emergence from the Great compete here, in one of the most fragmentedHolden best placed to meet the challenges of Depression and Holden was at the forefront and competitive markets anywhere in the world.today and build a successful future. Holden is of this remarkable economic transformation,a trusted Australian brand; one that has been employing thousands of Australians and being Our current product portfolio reflectspart of the lives of successive generations of at the cutting edge of innovation. Australian society – a mix of home-grown andAustralians and synonymous with creating imported models. From the hugely popular VFbetter journeys across our wide brown land. In fact, these early investments by GM in our Commodore, the most advanced car ever builtWe are global, but we think local. manufacturing capability meant Holden was in Australia; to our range of SUVs imported an important asset for the nation’s security, as from across GM’s global operations, the Trax,We believe we know Australian consumers all our factories were turned over to wartime Captiva and Colorado.better than our competitors, and we know we production from 1940.are in a position to access the best possible cars From next year, we will augment our Australian-from GM’s global operations and tune them for Following the end of World War II, Holden’s made Cruze, as well as our Spark and BarinaAustralian conditions and Australian customers. and Australia’s transformation continued – and small cars, with the halo Astra GTC and AstraWe are determined to become the most in 1948, we made history, when Prime Minister VXR from GM’s European operations. They willcustomer-centric automotive company Ben Chifley joined us to launch Australia’s first be accompanied by the convertible Cascadain Australia. mass-produced car, the 48/215. and the Insignia VXR sedan.This is what it takes to be successful in Australia. In the decades that followed, we continued to In the future, more than one-third of Holden’s design, build and sell cars for Australians; from models will be imported from GM’s European the FJ, to the Kingswood, the Commodore to manufacturing operations. the Cruze, GM Holden has been a cornerstone

“The Asian century will be an American centurytoo because America is a Pacific power as well asan Atlantic one.” –Tony Abbott, Prime MinisterIn that period, GM Holden will transition to Putting the Customer First Secondly, we must not allow cut-price second-a National Sales Company. A perfect storm hand cars to be imported into our countryof negative influences has impacted the While it’s our products that gain the headlines, from other markets around the world.Australian automotive sector’s ability to customer experience is even more important. This has happened in New Zealand and itmanufacture domestically: a persistently high It’s at the heart of every successful company. has not worked.Australian dollar, high cost of production, the Australians rightly demand that companies dosmall domestic demand and one of the most what they say and are there for the moments Similarly, we cannot allow our market tocompetitive and fragmented markets in the world. of truth. be flooded by imitation grey import non- genuine parts. These pose very real safety andOver the coming years, we are determined to For an automotive company, this means performance concerns because they are oftendo the right thing by our employees impacted delivering credible and high quality products made from inferior materials.by this decision, as we support them to – and being accessible and open whentransition to the next stage of their working lives. customers need help. Finally, we should continue to lead the world on vehicle safety and we must continue asAt the same time, we will also play to Our extensive dealer network – more than 230 an industry to improve our performance onAustralia’s strengths as we build the new dealers nationally – is a distinct competitive emissions. Australians would expect no less.GM Holden. Apart from retaining our sales advantage in delivering a convenient andcapability, we will also keep doing a number of world-class servicing and customer experience. The Futurethe things Australia can do competitively onthe world stage. Getting the Framework Right The future for Australia is one with some near term economic challenges and many mediumMelbourne will continue to be home to one Having the right products and the best and long term opportunities.of only seven GM Global Design Studios. Our possible customer experience are things wedesigners are highly respected within GM and can directly control. However, there are a GM Holden’s proven track record ofwill influence the design of cars for many, number of key levers that are not completely implementing organisational changemany years to come. in our control, yet are just as critical to our successfully – and our fierce determination future success. to do it again, will ensure that we build aAnd we will retain the gold standard of vehicle successful future for a home-growntesting facilities – our Lang Lang Proving Firstly, it is important that the industry has Australian icon.Ground – with a small team of engineers to the full period through to the end of 2017 toensure our products perform well in Australia’s deliver a smooth and orderly transition. Key todemanding conditions. this is a stable supply base.

AmCham James Fazzino Access Managing Director and CEO, Incitec Pivot LimitedLessons from A decisive factor was Government policy atVisionary USA a State and Federal level and the business- friendly approach, particularly from theI remember two years ago standing in the Louisiana Government through Louisianaoffice of the Governor of Louisiana, Bobby Economic Development (LED).Jindal, looking through the window as heproudly pointed to the line of new chemical The approvals process was expedited – notplants representing the re-industrialisation diminished – so we were able to sign a lump-of the US through the shale gas revolution. sum turn-key construction contract which was essential to the decision to proceed.I had made an impromptu contact with hisoffice on the way to New Orleans where IPL Despite Louisiana having environmentalwas considering an $850 million investment in and regulatory standards equal, if nota world-scale ammonia plant. higher, than Australia, we achieved approval in six months!Governor Jindal promptly cleared his diaryso he could convince me of the merits of In Louisiana, when we discussed with LEDinvesting in his home State. His mantra the need for deadlines on the approvals,for his Government in assisting business the response was that the standards aredevelopment is: “I don’t want more taxes. I sacrosanct! That’s a non-negotiable! However,want more taxpayers”. they said they could expedite the assessment process. For example, they suggested that theirHe has his wish. Six months later, we made people could work overtime to ensure that allthe decision to develop the project, which the documentation achieves the necessaryis on track for first production in 2016. The quality. IPL, you pay for the overtime! Ofinvestment case for Louisiana is exceptional course, we agreed!and when considered against the option ofbuilding a similar plant in Australia, there was With LED, it’s not a situation of once theno comparison. decision is made, forget about the developer. We are being contacted regularly to beThe US is a great place to do business and asked, can we help further? That’s a businessthere is much that Australia could learn from friendly partner!the US. IPL has been doing business in the USsince 2008 when we acquired Dyno Nobel, US Federal Government policy was alsothe world’s second largest manufacturer and important and an area where Australia hassupplier of commercial explosives for mining, shot itself in the foot.quarrying and construction – and the largest ofits kind in the US. To manufacture ammonia – and many commonly-used plastics and chemicals - gasWhat made the decision on Louisiana is used as a raw material, in the same wayso compelling? as iron ore for the manufacture of steel. The competitive supply and price of gas was aWe took a first mover advantage and the critical decision point for the Louisiana project.fundamentals of our project are even betternow than when we first made the decision.

The US has a process for the national interest Australia has no national interest assessment. And if we believe that productivity andto be assessed whenever any company seeks to Federal and State Governments have allowed prosperity are the end result of innovation andexport energy. Canada has a similar approach. global gas companies and their local partners inventiveness, then the number of patents to export gas to North Asia, including gas that issued is surely an indicator of future success.To export gas from the US, a company must was previously supplied to Australian industry Between 1997 and 2010, Americans receivedapply to the Department of Energy where and households. more than two million patents, with Germanyan assessment is made before the approval a far distant second with less than 300,000.is provided: Is the export of this gas in the Compare the result: the US has a gas price ofnational interest? $3 to $4. In Australia, we have imported Asian There are predictions by some of the Chinese energy inflation and the price of gas is as high ascendancy and that will eventually happen –Three years ago, President Obama, in his State as $12 for industrial users and also, has added sooner or later – depending upon the criteria.of the Union Address, said: “We have a supply $300 - $400 to some household energy bills.of natural gas that can last America nearly As Australia’s biggest fertiliser company and100 years, and my Administration will take I have great faith in the future of the US. with Dyno Nobel, IPL is well placedevery possible action to safely develop this That’s why we took the decision to acquire to capitalise on the growth of both theenergy. Experts believe this will support more Dyno Nobel and to develop in Louisiana. Chinese and US economies because ofthan 600,000 jobs by the end of the decade.” our strategic exposure through the The US economy is now growing after manufacture and distribution of inputs intoIn fact, the US is doing better than that: on taking time to grind out of the GFC. On one agriculture and resources.the way to creating one million manufacturing indicator, recent job openings reached a 13-jobs as, incredibly, manufacturing is coming year high and there are predictions of plus 3 But the US business friendly culture will alwaysback to the US from countries like China! percent annual growth. provide that competitive edge. It’s a greatThat’s a scenario that never would have been place to do business.contemplated even five years ago! Essential demographics favour the US economy in the long term. The US populationIn contrast, in Australia, we too have abundant is continuing to grow and even better, growinggas but our lack of vision means it will be younger by comparison with Europe andprocessed through giant refrigerators to Asia. In 2050, one in three citizens of mostsend overseas for others to value-add while developed nations in both Europe and Eastmanufacturing plants are closing because of Asia will be over 65 years of age. In America,a gas supply/price crisis. We can have our cake the number is one in five.and eat it too: a vibrant gas export industryand a small but fair share for local mums anddads and workers in factories.“There are a handful of countries in the world thatwe always know we can count on, not just becausethey share our values, but we know we can count onthem because they’ve got real capacity. Australia isone of those countries.” –President Barack Obama

AmCham Peter J. Kalis Access Chairman and Global Managing Partner, K&L Gates LLPThe rule of law matters in evident in every conversation! And we are in feudal barons on the Plains of Runnemede inUS-Australian relations their debt for the extraordinary legal tradition 1215, must strive to constrain unbridled power that they have conferred upon both societies. by subjecting both the powerful and the weakFor the past decade, the United States The common law is a moderating influence in to the same rules and processes of justice.has topped the “league tables” in foreign a world otherwise characterised by impulse anddirect investment in Australia. The enormous force. With the passage of time, the common As the American Chamber of Commerceinvestment flow has spanned multiple law has supplied the rules of the road for in Australia marks the occasion of the G20industry sectors and geographic locations. orderly society -- one in which duties to and meeting, we can view the American investmentAs a global law firm with substantial rights of others are respected. in Australia as not only sound business but alsodeployments in both countries, we at K&L as a resounding validation of the Rule of Law.Gates take great pride in the strength of the The Rule of Law, however, has longer roots Two societies that share this framework can doeconomic ties between the US and Australia. than the common law. The notion that the business with each other in confidence that the most powerful members of society must be rules of the road will be adhered to by one andBeyond these economic bonds, we also reflect constrained by law has ancient antecedents all. In a dangerous world, we should celebrateupon our nations’ shared belief in the Rule that precede even the Magna Carta. We need this kinship.of Law. Both societies believe passionately in always to remember this history, as somefair and open systems of justice and in values of the societies that helped to fashion the *Peter J Kalis is Chairman and Globalthat honour individual rights and economic concept have in more recent times abandoned Managing Partner, K&L Gates LLP. Mr. Kalis,freedom. Our joint commitment to free it. The Rule of Law requires missionaries in this was recognised in the August 2013 issue ofenterprise as central to the efficient allocation generation and every other. The American Lawyer magazine as among 50of resources and economic growth could not innovators who have dramatically shaped theexist absent the Rule of Law. Caprice -- the That’s where the legal profession comes in. global legal industry over the past five decades.mortal enemy of the Rule of Law -- undermines The Rule of Law has no more faithful adherents Mr Kalis was one of a dozen law firm leadersboth individual and economic freedom. than the Australian and American legal cited by the magazine as “master strategists” professions. With both word and deed, lawyers and the publication specifically noted MrLike other living things, the Rule of Law must in our countries work assiduously to uphold a Kalis’ leadership in making K&L Gates the firstbe nourished through thick and thin. We live legal tradition against global forces that regard financially transparent US law firm. K&L Gatesin a world in which many ascending economic it as a needless extravagance or a roadblock represents leading global corporations, growthpowers have no like tradition, and forces often to achieving desired outcomes through main and middle-market companies, capital marketstimes emerge in the marketplace that can force. In every legal engagement, the stakes participants and entrepreneurs in everycause an erosion of the Rule of Law. An obvious are large not just for the parties but also for major industry group as well as public sectorexample concerns varying degrees of respect society generally. entities, educational institutions, philanthropicfor intellectual property rights, but in fact the organisations and individuals. K&L Gatesrange of challenges to the Rule of Law extends The meeting of the Group of Twenty is a LLP comprises more than 2,000 lawyers whowell beyond the headlines cases. reaffirmation of what unites peoples around practice in fully integrated offices located on the world -- the challenges as well as the five continents including North America, SouthBoth Australia and the US owe their British opportunities. Not all G20 member states America, Asia, Australasia and Europe.forbears a debt of gratitude for a wonderful embrace the Rule of Law as we understand it,shared language -- though that might not be but they all have lawyers who, no less than the

Global Global legal counsel Offices coast to coastplatform across five continents with more than 1300 lawyers in the Americas10 offices and more than 11 offices and approximately300 lawyers in Europe and 400 lawyers in Asia Pacificthe Middle EastTop 10 firmK&L Gates not only is one of the largest firmsin the United States. Our offices in the AsiaPacific market, Australia, Germany, the GreaterChina market, Japan, the Middle East, Polandand the United Kingdom all rank in the top 10of U.S.–based firms in those markets. No otherlaw firm can say this.

AmCham Robbert Rietbroek Access Managing Director and CEO, Kimberly-Clark Australia, New Zealand and the Pacific Islands AmCham GovernorLocal Shores The $33 million cogeneration facility has taken million at our Millicent Mill in South Australia,Leading the Way the tissue mill off the energy grid by capturing which will go towards capacity improvements wasted heat in the exhaust of a gas turbine and equipment upgrades, to enable us toThe symbiotic relationship between and using it as a replacement for natural gas sustain and increase local production of ourFortune 500 Company Kimberly-Clark in paper drying and steam production. The high quality Kleenex® products.”Corporation and its Australian arm, benefits to Kimberly-Clark are twofold – lowerKimberly-Clark Australia has fostered energy costs and a significant reduction in Australia has a strong history of creatinga strong history of innovation, talent greenhouse gas emissions to the tune of breakthrough innovations that have beendevelopment and Australian manufacturing 80,000 tonnes per annum. rolled out across Kimberly-Clark global markets.lasting for nearly 90 years. One such Australian innovation was the launch Within a year of the cogeneration facility of a proprietary, breakthrough absorbent linerA $1+ billion consumer products company, running, Millicent Mill has been able to on Australia’s favourite Huggies® Nappies,Kimberly-Clark Australia, New Zealand, and increase production while significantly which was developed in a unique three waythe Pacific Islands, is a proud manufacturer reducing greenhouse gas emissions and collaboration with Australia’s Commonwealthand marketer of the Kleenex®, Kleenex® carbon footprint. It’s also expected to help Scientific and Industrial Research OrganisationCottonelle®, Viva®, Huggies®, U By Kimberly-Clark Australia and New Zealand (CSIRO) and a small, family run nonwovenKotex®, Snugglers®, Poise® and Depend® achieve its 2015 target to reduce greenhouse company, Textor Industries. First launching onbrands. The company employs around 1500 gas emissions by 30 percent from 2011 levels, Huggies® Newborn Nappies in Australia inemployees across Australia and New Zealand ahead of schedule. This facility has set a 2012, this innovation has more recently beenand manufactures locally in South Australia new energy efficiency benchmark for rolled out onto the entire Huggies® Nappiesand New South Wales. Globally, Kimberly-Clark Kimberly-Clark globally. range in Australia as well as Huggies® Nappiesoperates in over 175 countries and employs in the United States and in Eastern Europe.over 58,000 employees worldwide. Leading the ANZ business and in his role on the board of the Australian Food and Grocery The success of this world first innovation hasRobbert Rietbroek, Managing Director and CEO Council, Rietbroek is well abreast of the resulted in the expansion of Melbourne-based,for Kimberly-Clark Australia, New Zealand and challenges facing US multinationals. Textor Industries, which is now a global supplierthe Pacific Islands relocated from Kimberly- to Kimberly-Clark.Clark’s global headquarters in Irving, Texas, 16 “US companies operating in Australia aremonths ago. Rietbroek was quick to see why currently facing a challenging period, due to “The Huggies® innovation is not only a successKimberly-Clark Australia has long been looked a range of contributing factors including low story in terms of Australian innovation, but ato by Kimberly-Clark Corporation as a leader growth, eroding margins due to increased success story for Australian manufacturing.and innovator. trade spend, high distribution costs, currency Not only is Kimberly-Clark investing in our devaluation, and the fact the Australia is one Australian operations, we are supporting theIn 2013, K-C Australia accepted an award of the most expensive countries in the world smaller, innovative manufacturers to grow andat Australia’s most prestigious sustainability to manufacture.” thrive,” said Rietbroek.awards, winning the Banksia Award for Leadingin Sustainability for being an industry leader Yet, despite the challenges, the Australian Australia has always been looked uponwith the Kimberly-Clark Australia and New business has continued to attract investment by Kimberly-Clark as a centre for talent andZealand sustainability strategy called Our from Kimberly-Clark’s global headquarters talent development, with some of Kimberly-Essential World. because of its proven track record of game Clark’s top global executives originating changing product and brand innovations from Australia. Likewise, high potentialMore recently, in 2014, the company was that have been adopted by Kimberly-Clark employees are assigned strategic roles inawarded two Australian Business Awards in globally, world class sustainable manufacturing the Australian business to gain valuableboth the Innovation and Technology categories operations and talent development.‘At leadership experience.for its innovative cogeneration facility that Kimberly-Clark, we refuse to let the externalis significantly reducing energy costs and landscape hold us back. Instead, we’re With 58,000 employees worldwide, diversitygreenhouse gas emissions at its Millicent Mill in choosing to embrace the situation as an and inclusion is a core focus for Kimberly-Clark.South Australia, home of the Kleenex® range opportunity to be more innovative and In 2014, the Corporation won the Catalystof tissue and paper towel products. entrepreneurial,’ said Rietbroek. “Last month I award for the advancement of women in announced we will be investing a further $20 business. This year, Kimberly-Clark Australia

“Our country has invested nearly half a trillion dollarsin America – and America has invested rather morethan half a trillion dollars in Australia because wetrust each other to treat each other’s hard earnedcash with respect.” – Tony Abbott, Prime Minister“At Kimberly-Clark, we has become a role model within the global K-C Every day, nearly a quarter of the world’srefuse to let the external subsidiaries in terms of gender diversity as it is population trust K-C’s brands and the solutionslandscape hold us back. the first subsidiary to have more women than they provide to enhance their health, hygieneInstead, we’re choosing men on the Executive Leadership Team. and well-being. With well-known and trustedto embrace the situation brands, Kimberly-Clark holds the No. 1 or No. 2as an opportunity to “As a global company, our people come share position in more than 80 countries.be more innovative from increasingly diverse backgrounds andand entrepreneurial” perspectives, which we know helps us cultivate Kimberly-Clark’s Australian history began in fresh thinking and refine our understanding of 1926, when it began selling Kotex® napkins the different consumers who use our products” imported from the USA. In the 1930’s said Rietbroek. “We value diversity and believe Kimberly-Clark began local manufacture of that building an inclusive culture makes feminine care products and imported Kleenex Kimberly-Clark a better place for our people to facial tissues. The business relationship work and is also better for business.” between Kimberly-Clark Corporation and Australian Paper Manufacturers (Amcor Australia also has a strong track record of Limited) began in 1958 and progressed to flexible work arrangements, enabling it to a partnership in Kimberly-Clark Australia in attract and retain top talent in the Australian 1963. Today, Kimberly-Clark Australia and New market - talent which has been exported to Zealand is one of Australia’s largest paper Kimberly-Clark Corporation. manufacturers and is 100 percent owned by Kimberly-Clark Corporation. About Kimberly-Clark Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 175 countries.Kimberly-Clark celebrates$20 million investment andsustainability achievements atMillicent Mill in South Australia.Pictured: The HonourableTom Koutsantonis MP, SouthAustralian Treasurer andMinister for Finance, TonyPalmer, President of GlobalBrands and Innovation K-CCorporation, Robbert Rietbroek,Managing Director & CEO,K-C Australia, New Zealand& The Pacific Islands, ScottWhicker, Millicent Mill Manager,Jacquie Fegent-McGeachieHead of Corporate Affairs& Sustainability, K-C, TonyCircelli, Chief Executive, SouthAustralian EnvironmentProtection Agency. 22-23

AmCham Dominic Walsh Lois Jacobs CEO, Landor Access Managing Director, Thomas Ordahl Landor Australia Chief Strategy Officer, Landor Because change is the only constant in The agile brand today’s marketplace, we at Landor are finding that brands need to become This article was first published in Admap more agile to thrive. They need to be (October 2014) developed and managed differently than even a few years ago. Our efforts today To survive and prosper in today’s are focused on creating agile brands hypercompetitive, fast-moving world, that manage constancy and change in brands need to be agile to be able to adapt equal proportions. and react quickly, not be set in stone. Founded in the United States in 1941 To borrow a famous opening line, for today’s with headquarters famously located on a brand specialists, this is the best of times and ferryboat in the San Francisco Bay, Landor the worst of times. Brand has gone from a has grown to include 27 offices around rarified marketing concept to an essential the world. Our partnership with AmCham component of business strategy. grew out of a shared connection with the U.S. and a desire to help our clients What was long held build stronger local businesses. Our global as sacrosanct to brand network has been instrumental in providing is now increasingly the necessary insights to build an agile anachronistic. Simply put, brand for AmCham, one that highlights the we need to reinvent our ability to provide access to opportunities. approach to what we do.The Klamath, San Francisco Not long ago, the greatest challenge for brand managers wasn’t defining the brand but managing the brand. Above all else, successful brand management meant exerting control over all the places the brand lived. Great brands didn’t change. In fact, variation was a weakness. Effective management meant detailed guidelines, structured decision making, and command and control practices. Building a brand was like building a cathedral. And like a cathedral, brands were built to endure forever, to rise above and withstand the vagaries and vulgarities of the marketplace. Not anymore. Today, brands must live in the rough-and-tumble of the streets. We live in a rapidly evolving marketplace in which the pace of business is exponentially faster. Every business operates in a global context with new customers, competitors, and business models. Disruption is everywhere. For even the most capital-intensive businesses, barriers to competition are rapidly being lowered.

So what is an agile brand? –Dominic WalshThe speed of modern day disruptions means through a series of actions that deliver a brand AmChamwe must create and manage brands in promise. That is the focus of the agile brand Agile brands are global and networked.an entirely new context. Today we are no experience: delivering a brand promise across Landor partnered with AmCham tolonger building cathedrals. This market place platforms, geographies, and audiences. develop a brand positioning and identitydemands a new approach. Today’s brands highlighting its unique ability to makemust be agile. From passive to active connections across the world: providing access to opportunities and positiveA new approach If we accept the brand-as-cathedral metaphor, outcomes for its members. we accept a defensive mindset—brand asFrom consistency to relevance something that must be preserved. An agile Australian Institute of Sport brand is one that must continually improve, Agile brands lead. Landor worked with theFor many of us in branding, consistency is and this suggests a different footing for brand Australian Institute of Sport (AIS) to developviewed as the guiding principle. Nirvana managers. Rather than being brand cops, a brand positioning and identity representingis reached when the brand is the same brand managers lead change. They look for its new winning edge vision to take Australianeverywhere. This needs to be rethought. new opportu¬nities to evolve the brand and sport from world class to world’s best.No, it’s not that consistency is wrong; it’s create value. They help push the organisationjust that it has been given far too much or the offer rather than let it be pulled. IFM Investorsimportance. Viewed properly, brand Agile brands are principled. IFM Investorsconsistency is hygienic, but not the main goal. From guidelines to principles are a global fund manager with $53 billionConsistency is great - as long as we don’t in assets, which it invests on behalf of 30pursue it into an oblivion of irrelevance. Increasingly, we see success when a brand super funds. Its interests are deeply aligned is governed by principles. Yes, brands need with those of its investors and their returns.From launch to transform guidance, but given the nature of today’s Landor worked with IFM Investors to develop fast-moving marketplace, guidelines quickly a positioning and identity that reflects thisIn the past, new brands or revitalised brands become obsolete. A clear set of principles strongly held idea of shared prosperity.were “launched.” It was as though once they is a powerful platform for action. Theyhad made their way through the brand factory, offer support in unexpected situations and Jacob’s Creekthe assembly line delivered them to the world inspiration for new opportunities. Agile brands are adaptivefinished and ready for consumption. “Launch” and multichannel. Landor worked withreveals an outdated mindset. A brand is never From no to yes Pernod Ricard Winemakers to develop a newlaunched and a brand is never finished. To brand identity for the Jacob’s Creek brandlaunch a brand is to imply completion. At its simplest, an agile brand is one that said that represented what makes it unique. yes more than it said no. If we accept that Applied across physical and digital channels,An agile brand requires a different footing for brands must change and evolve to be successful, the new brand identity was intended tobrand managers. Rather than being brand then we must adopt a mindset of openness: Look be a consistent mark of premium qualitycops, brand managers lead change. to the future, listen to the marketplace, and meet that could adapt to cultural nuances. change not as something to manage, but as Ultimately, allowing an Australian wineFrom logos to experiences something to embrace. to take on the world.Abstractions are increasingly less relevantand, though this may be a shock coming fromLandor, there is no greater an abstraction thana logo. There are many ways to define “brandexperience,” but we view it simply: It happenswhenever and wherever a brand delivers itsunique value. Great brand experiences are built

AmCham Nicholas Moore Access CEO, Macquarie GroupA partnership of a bedrock of belief in both countries. physical gas trader in North America and theopportunity Our similar cultures, along with formal highest ranked non-producer. We also provide alliances such as the Free Trade Agreement capital to a range of oil and gas developers,Australian business has long been drawn to and the ANZUS security treaty, underpin the fund energy inventory, storage and transportthe US and not only because it represents relationship between our two countries. and provide risk management and advice to athe world’s largest economy and the wide range of industry participants.deepest capital markets. The transformation of the US energy industry is one example of how these values work in One such company is Freeport LNG, which isIt is more than a coincidence that the events practice. What was unthinkable just five years building one of the first LNG export terminals inof 1776 and 1788, seminal dates for each ago – US energy self-sufficiency – is now well the US in 40 years. Such has been the speed ofcountry, occurred so closely together. The within sight with new technology in shale gas change in the industry that when constructionAmerican Revolution, probably more than any production. Innovation, hard work, property of the terminal started in 2005, it was designedother single event, led to the establishment of rights and supportive capital have again to receive an anticipated increase in LNGBritish colonies in Australia. Perhaps ironically, delivered for the US. imports. Now, with the shale gas revolutionthe Enlightenment values that inspired the ensuring natural gas supplies for 100 years orDeclaration of Independence found their Macquarie entered the US energy market 11 more, Freeport LNG is adding a liquefactionway to Australia through the new institutions years ago, building on its global commodities capability to equip the terminal for exportsestablished to support the budding society, expertise developed over more than 30 from next year.as well as the appointed Governors and their years, and has become a participant acrossinstructions from London. the energy landscape. Acquiring US energy This is not an isolated example. One of the marketing and trading company Cook Inlet striking aspects of the US economy is theBelief in a better life through hard work, Energy Supply in 2005 and Constellation extent to which its embrace of enterprise andrationality, with an openness to new ideas, and Energy’s downstream gas trading operations entrepreneurialism is driving new technologiesrespect for individual rights and freedoms form in 2009, we are now the fourth largest in areas such as information, energy and finance that continue to transform our world. Australian investment into the U.S. USA is the top destination for Australian investment overseas at AUD 471.7 billion in 2013 – a 28.9 percent share of total overseas investment of 1.6 trillion. The leading investment destination countries from Australia as of 31 December 2013 were: 30 $471.7 b 20 $255.7 b 10 0 U.K $81.1 b $56.5 b $53.7 b $50.2 b N.Z U.S. Germany Canada Japan

A Macquarie-led consortiumwon the contract to design,build, finance and maintain areplacement of the GoethalsBridge in New York.Macquarie is one of many Australian We are now the world’s largest infrastructure Another area of opportunity in the US-companies that have built a successful base fund manager and adviser, operating more Australia relationship lies in Asia. Australia isin the US, where we have had a presence than 50 funds globally and with infrastructure fortunate to be located in the region that isfor 20 years. Last financial year, for the first assets under management exceeding US$100 the increasing focus of the rest of the world,time in our 45-year history, a region outside billion. With government budgets constrained, and Macquarie has been leveraging thoseour home market of Australia was our highest Macquarie is uniquely placed to assist foundations to bring its specialist knowledgeincome generator. The Americas accounted communities with the appropriate platforms of the region to the US market.for 35 percent of Macquarie’s income for to attract long-term capital to bring criticalthe year to 31 March 2014, compared with infrastructure to fruition. Our Asian corporate and economic research32 percent produced by our successful is distributed every day to US clients, with ourAustralian operations. Such an opportunity exists in the US, where securities business ranked as a top five broker the estimated investment required over for Asian equities with US investors.We have witnessed first-hand the leadership the next six years is US$3.6 trillion. Therole the US continues to play in the world’s opportunity can be seen when federal As well as securities, Macquarie Capitaleconomy and geopolitical landscape. government transport infrastructure spending assists companies on both sides of the is around 0.6 percent of GDP, compared with Pacific seeking acquisition opportunities.Global confidence is heavily influenced by the 1.1 percent in the United Kingdom, 1.5 percent For example, we advised Tokio Marine on itshealth of the US economy, the size of which in France and 2.4 percent in Australia. US$2.7 billion acquisition of Delphi Financemakes even a moderate growth rate significant Group and Gibson Guitar on its alliancein absolute terms. We have been active in the US infrastructure with ONKYO Corporation. Macquarie Capital market since 2003 and listed the Macquarie also assists US private equity sponsors in theThere are many encouraging aspects to Infrastructure Company on the New York local mergers and acquisitions andthe continued recovery of the US economy. Stock Exchange in 2004. The Macquarie debt capital markets, as well as bringingMonthly new housing starts are well off Infrastructure Partners 3 fund, which has raised global opportunities.their 2009 lows, with significant upside. US US$3 billion in investor commitments, is partunemployment has been falling for five years, of a consortium that will replace the Goethals Our US knowhow extends to leasing assets andfrom a peak of 10 percent in October 2009 to Bridge, the first new Port Authority bridge in Macquarie has a growing global asset financeits current level of 5.9 percent. New York and New Jersey in 80 years. portfolio that includes a new helicopter leasing business and 141 aircraft leased to companiesCompanies are in good financial shape Macquarie’s infrastructure activities are part such as American Airlines, Delta Airlines andand, above all, confident. This is driving of a wider funds management business, FedEx. We have a portfolio of 8,800 freight railincreased corporate investment and, which includes Delaware Investments, a cars, a mining equipment portfolio and we areaccordingly, activity in equity capital markets business Macquarie acquired in 2010. Utilising one of North America’s largest independentand mergers and acquisitions. Macquarie’s global funds management lessors of technology equipment. expertise, Delaware has been able to extendA potential Australian its market reach, growing its assets under Our US corporate lending business hasflipside of the US energy management from US$141 billion in 2010 to doubled in size since its establishment in 2010.story is infrastructure. more than US$200 billion at 31 March 2014. It is a leading market participant in bespoke Incorporating Delaware Investments into primary lending and a niche acquirer ofMacquarie recognised the opportunity that our funds management platform has also secondary loans.existed in infrastructure as an asset class positioned Macquarie as a top 50 global assetmore than 20 years ago. We pioneered an manager. It has expanded our presence in This weekend’s G20 discussions underlineinvestment model enabling pension funds the world’s largest capital market and the the importance of global connections andand other institutions to access infrastructure US accounts for 55 percent of Macquarie’s cooperation. The success of the US-Australiainvestment and the more predictable returns it US$427 billion in assets under management. relationship is grounded in the shared valuescan offer relative to other investments. The acquisition has delivered mutual benefit. of our two nations, which have enabled us to build an association of mutual understanding and benefit. 26-27

AmCham Richard Lazar Access Managing Director & CEO, PPR Australia and New ZealandMaking a Connection This change has largely been brought on Today all of the above has brought brandsAcross the Pacific by the digital transformation we have and organisations operating in Australia and witnessed over the last couple of decades. the United States closer together. At PPRWhen PPR opened its doors in 1970 in a Technological advancement, the internet our activity has increasingly been integratedsmall office in North Sydney our founder, age, social media, the growth of truly global with the activity in America. Conversely,and now Chairman, Peter Lazar, never news organisations, the explosion in citizen with Australia seen as a key market bydreamt 44 years later his agency would journalism and hunger for real-time content many Americans during a period of globalnot only be the largest PR agency in has all changed how we communicate. uncertainty, the need to be integrated hasAustralia but we would be celebrating the flowed both ways.opening of its first office in the United One of the most significant outcomes hasStates in New York. been the breaking down of geographic After many decades supporting American communication borders. Today, the actions in brands and organisations enter this market,Almost immediately we added San Francisco, one country can immediately have profound it was therefore a natural step for us to offerWashington DC and Austin and further afield implications for a brand in another country. clients the PPR experience in both markets.in London and Paris. We are now more than This has brought many benefits, for example300 consultants working across Australia, US the need for organisations to be completely Many at the time of our announcement wereand Europe. transparent in their operations wherever they surprised by our decision to overlook closer to are in the world and the power the consumer home markets such as Asia Pacific for our firstBut the ties that bind PPR in Australia with now has to choose products that match their non ANZ office. But for us the choice was clearthe United States have not come about needs and their budgets from a selection of and simple. We knew that our approach toovernight – they are the product of more than retailers from around the globe. communications would be welcomed in the US.four decades supporting businesses, with USglobal headquarters, such as McDonald’s, Dell, It has also meant that the communications Our decision was cemented at the end ofConoco Phillips and others, launch and grow deployed by a company, with the support of 2013 when we were awarded the World’sby building strong and lasting connections their agencies, now needs to be completely Most Innovative PR agency by the PR Worldbetween the organisation and their customers. integrated. A social media campaign in one Awards – a US based PR awards program that market needs to consider the PR campaign recognised the best in communications in andFrom a communications perspective we have being undertaken in another. The advertising outside of America.found an Australian customer base eager and promotion in one market needs to be consciouswilling to embrace brands and organisations of an issue that may be faced by that We weren’t alone in our view. Our parentfrom across the Pacific. Since McDonald’s company’s operations on the other side company, US based Young and Rubicam, partappointed us to support their PR efforts 35 years of the world. of the WPP global communications group, sawago Australians have shown a desire to try what that our approach to communication wouldthe US brand has to offer and has supported its At the same time organisations need to be give the group a differentiated approach.growth to over 900 restaurants today. prepared to be nimble and flexible with their Clients were looking for a stand-alone public communications and be prepared to have a relations agency with a single-minded focus onBut during that time the communications one to one conversation rather than a one to delivering innovative counsel and results to itsindustry and the brands and organisations many conversation, often with someone not clients, wherever they were in the world.we support have seen a seismic shift in the in their traditional geographic market. Broadway communications and marketing needs to brand marketing is becoming more difficult And we could benefit our clients back homehappen. While the fundamental reasons of why and is being replaced by a tailored, integrated, in Australia too with access through the PPRan individual, whether that’s as a consumer, multi layered communication approach that network into new global markets with thea business decision maker or a policy maker resonates with each and every individual target same philosophy they have experienced withmakes a decision has stayed the same, how it is trying to reach. us over the last 40 years.they gather information and how quickly theycan consume and share that informationhas radically changed the environment thatorganisations communicate within.

Our presence in ANZ, Just a couple of weeks ago we supported our If our decades supporting US brands makeUnited States, and more Sydney based sister agency, GPY&R launch it in Australia and our new venture intorecently Europe has also their creative campaign, devised in Sydney the US market itself wasn’t enough, ourallowed us to support on behalf of the Climate Reality Project commitment to Australian American relationsinternational initiatives and former Vice President Al Gore called was cemented earlier this year when PPR wasthat we may not have Why, Why Not. The compelling campaign asked by the team at the American Chamberbeen able to do in the mobilised thousands of children and teenagers of Commerce to partner with them, along withpast by being an agency from around the world to put pressure on fellow WPP (and US founded) branding agencysolely ANZ based. a gathering of world leaders at the United Landor, as they launched the new brand you Nations in New York to act on climate change. see in this magazine and to raise the profile ofMost recently we were a proud partner of the organisation as it embarks on an excitingG(irls)20, a global social profit organisation It was a true collaboration between our new chapter in the organisation’s history.which works towards the economic Sydney and New York offices that allowed usempowerment of girls and women around to reach millions through media coverage in Forty four years on and our relationship withthe world that came to Australia ahead of the ten countries around the world by utilising the United States has never been stronger. Asforthcoming G20 Summit in Brisbane. the agency’s new cloud based video capture, the communications landscape evolves and editing and distribution platform - PSS - for news, information, commerce, entertainmentAnd our access into new markets has allowed this campaign. Harnessing the power of cloud and culture continue to cross borders weus to communicate global messages from our based communication and the breakdown of expect the next forty years to bring continuedoffices in Sydney and through our network. communication borders PPR now has an in- cooperation, innovation and superb client house platform to communicate through video service in both markets. delivered directly into the inboxes of media, staff, investors and communities anywhere in the world. 28-29

AmCham Luke Sayers Bob Moritz Access CEO, PwC Australia Chairman and Vice Chairman, Senior Partner PwC Asia PwC United StatesA strong US-Australia From the Victorian gold rushes to the great Next year, our countries will celebrate the tenthpartnership will grow nation-building infrastructure projects of anniversary of the US-Australia Free Tradethe region’s prosperity last century – waves of American Agreement coming into force. The agreement entrepreneurship, innovation and investment has seen our economies and people becomeAs world leaders including US President have continued to flow into the economic more closely integrated across our mostBarack Obama touch down on Australian development of Australia. important industry sectors including resources,soil for the G20 meeting this week, the tourism, agribusiness, manufacturing, health,enduring nature of the US-Australia It’s been built on a shared sense of technology and infrastructure.relationship – and its role in supporting entrepreneurship and hard work – on havinggrowth and prosperity across the region – a go and making the most of what our Over more recent times, the relationship haswill be in the spotlight. respective countries have to offer, most notably served as an important catalyst for growth our people. across the Asia-Pacific region.When most people think of the US-Australia Today, it is one of the world’s most significant Asia’s rapid ascension has been wellrelationship, they think of a relationship trade and investment relationships. The US is documented in this, The Asian Century. It isforged in the battles of past wars, where we Australia’s third biggest trading partner and home to more than half the world’s people,fought side by side. However, there is a much biggest investor in Australia with $658 billion of and expected to account for the lion’s sharelonger, sometimes overlooked thread that runs investment. The US is also the most important of economic growth over the next couple ofthrough the US-Australia relationship from its investment destination for Australia accounting decades. With this growth comes new demandearliest days. for $472 billion. for the products and services, and skills and infrastructure, needed to support the region into the future. The US and Australia have long realised that a prosperous Asia-Pacific region – based on mutual interests and shared goals – promotes stability and opportunity for all. “It’s why Australia made an early foray into an economic partnership covering our region, when it proposed the formation of the Cairns Group in the mid-1980s. With the support of the US, 14 nations signed up to this regional trading bloc covering agricultural exports. It would, of course, become the precursor to the Asia-Pacific Economic Co-operation (APEC).

For 25 years, APEC has served as the In financial services, Asian banks and insurance PwC is working through our offices in Australiapre-eminent forum for promoting free trade companies have sophisticated networks for and the US, and across Asia, to supportwith leaders of Pacific Rim nations including distributing products to their customers. This organisations as they look to grow in differentChina, the United States, Japan, Australia, can be complemented by Australia’s ability markets. We’re also working to improve theIndonesia and Singapore participating. to produce sophisticated yet simply marketed exchange of people and ideas, services andCertainly, the body has much to celebrate financial products, accelerating wealth experience, across our business. We are nowand be proud of. But with the passing of creation in the region. In retail, Australia’s more integrated than ever before with ourtime comes a need to reflect on how we, and best-in-class systems and approaches to the network of firms throughout Asia-Pacificother nations, can best support trade within customer experience present new innovations - including China and Hong Kong and inour region in the years ahead. As part of this for adoption in emerging markets. Southeast Asia - working closely together toreflection, PwC has released an indepth report provide a more seamless service to our clients.on the needs of businesses across the APEC This is just scratching the surface of the manyregion, which coincided with the recent APEC ways Australia and other nations in Asia-Pacific Our clients are looking for global solutionsleaders’ summit. can build complementary and more closely with deep insights that can be transferred integrated economies. to local market settings. PwC created ourGrowth in the Asia Pacific region means new Consulting Asia Practice to meet this need.opportunities. It will create the industries and Likewise, the US continues to be a global Our team supports clients with their Asianjobs of the future. It will deliver improved source of new innovation, and in partnership growth, sourcing and risk managementstandards of living, lifting entire communities with Australia, can support further waves of strategies as they expand their businessout of poverty and into jobs, education and growth in Asia-Pacific that began in Japan and activities into new and emerging marketsopportunity. The very things that underpin the are now moving through East Asia and across in the region.US-Australia relationship – entrepreneurship, Southeast Asia.innovation and hard work – also complement As G20 leaders meet later this week, it’s anthe people and nations of the Asia-Pacific As we consider these new and emerging areas opportunity to reflect on the longevity andregion and their aspirations. of growth in our region, we need to ensure we achievements of the US-Australia relationship are well positioned within multi-lateral forums – and the important role we have to play withThe opportunities for Australia and the US to maximise joint opportunities between our partners across the region as it continuesin the Asia-Pacific region are significant. countries. The Trans-Pacific Partnership has to rapidly transform and bring greaterAn ageing population means an expanded the potential to help us achieve this, taking prosperity to its people.need for aged care services. Growing personal arrangements to the next level. It will bringwealth means new sources of capital and together economies accounting for almost 40demand for advisory services. The rapid percent of the world’s GDP, and take in somemovement of populations to urban centres 800 million people. It is rightly a priority for thehas placed additional demands on local US and Australian Governments – and otherinfrastructure. And the flourishing of new parties concerned.industries has created significant roles forassociated businesses. But it is not the role of governments alone – business also needs to drive the changesAustralia, for its part, has much to offer the required for our region to prosper. At PwC,region as it undergoes these changes. It we have a global purpose to build trust incan help supply the growing need for food, society and solve important problems. Theresource and infrastructure security. Australia’s opportunity to deliver on this purpose in theagricultural and food products are rightly Asia-Pacific region is substantial and we areperceived to be amongst the best quality already working in the region on solutionsand safest, and its resources are developed to problems ranging from food safety tousing some of the most efficient techniques tax reform.in the world. 30-31

Virgin Australia’s AmCham John BorghettiNew Business Class Access CEO,Virgin AustraliaRenowned AmCham GovernorCustomer Service Aviation alliances are flying high The US remains the world’s largest economy and is responsible for more than a quarter of global GDP. It is Australia’s most important economic partner when goods, services and investment are combined. It is therefore imperative that Australia is able to connect with the US through a range of industries. This includes aviation. There is no denying the US market is vitally important to Australia and to Virgin Australia as an airline. The United States provides a major feed of tourism and business to Australia. Record breaking numbers of North Americans are visiting Australian shores, with nearly half a million people arriving from the US in the Financial Year to June 2014. Demand for Australians wanting to visit North America is also continuing to grow with more than 1.2 million people crossing the border in 2013, thanks to the strong performance of the Australian dollar. For Virgin Australia, the highly competitive trans-Pacific route has always been a key priority; Los Angeles is the international hub that connects Australia with the rest of the world. When the airline first started flying the Los Angeles route, Virgin Australia (or V Australia as it was then known) created competition in the industry and helped make America one of the leading overseas destinations for Australian travellers.

Two-way tourism U.S. visitors to Australian visitors Australia to the U.S. 2013 2013 501,300 1.2mVirgin Australia’s impact was noticeable. The joint venture also gives Australians access In just three years, the airline has successfully;The average business class fare dropped by to more than 189 destinations in North20 percent, and the average lowest economy and Central America. In September 2014 • enhanced the in-flight and on-the-groundfare plummeted 40 percent. This meant travel three new destinations were added to the customer experience;was more affordable than ever before. codeshare agreement: Nashville, Kansas City and Raleigh/Durham. • increased the percentage of domesticIn March 2014, Virgin Australia and its revenue from the Corporate andalliance partner Delta Air Lines joined Building a strong international network – Government market from around 10forces with Tourism Australia to launch especially in the US – is important for percent to more than 25 percent;the Someday marketing campaign, many reasons. Virgin Australia has establishedaimed at ensuring Americans acted strategic bilateral partnerships rather • developed a comprehensive global virtualon their desires to visit Australia. than following the convention of joining a network; integrated and aligned the global alliance. airline operations and brands; maintainedThe campaign ran on NBC, in the Wall a cost advantage;Street Journal and LA Times, while Innovation in aviationan open “letter to America” wrapped • built a loyalty business worth nearly $1the front page of USA Today. Virgin Australia believes product and service billion and doubled membership numbers innovation is central to making a mark in to 4.5 million;More importantly, the campaign worked. the lucrative and vital US market to ensureVirgin Australia carried more than 101,000 Australian and US business and leisure • and most importantly, investedpassengers in the six months to June 2014, travellers have more choice. significantly in its team by attracting,up nearly four percent on the previous year, developing and retaining the best talent.meaning Americans were fulfilling their For the business market, this means a muchdreams to see Australia “someday”. more comfortable experience to diminish the This strategy created an indifference among lag experienced on long-haul flights. Australian travellers and helped to dislodgeDelta Air Lines Alliance those loyal to the incumbent airline group Next year, Virgin Australia’s Boeing 777 whilst building a Virgin Australia loyalty base.The partnership between Delta and Virgin Business Class will be refitted with new seatsAustralia has been going from strength-to- that convert into 80-inch fully flat beds, and In August, Virgin Australia announced thestrength since its launch in 2011 and has represent a major enhancement to the travel next phase of its strategy: Virgin Vision tohelped boost Australian-US business relations experience. This section of the cabin also 2017. Over the next three years, the airlineby offering a united proposition to meet features an exclusive new bar. Both features will focus on six key areas: capitalising onbusiness and travel demands. were unveiled in Singapore in September. growth business opportunities, driving yield enhancement, implementing a new cost program, optimising the balance sheet, setting a new standard in customer experience and developing its workforce of more than 10,000 people to their full potential.This alliance enables Australians to connect In 2011, This month’s G20 leader’s summit is aseamlessly to key business hubs in the US, Virgin Australia wonderful opportunity to showcase culture,such as New York City, Detroit, Chicago and set out to reshape diversity and history on a global scale andAtlanta, and of course provides business the Australian aviation Virgin Australia is thrilled to welcometravellers from all over North America landscape through United States President Barack Obama alongwith a seamless journey to key capital cities its Game Change with all the world leaders travelling to ouracross Australia. Program strategy. shores this month.Aus visitors to the U.S http://travel.trade.gov/outreachpages/ US visitors to Australia http://www.abs.gov.au/ausstats/[email protected]_data_table/2013_Australia_Market_Profile.pdf nsf/products/961B6B53B87C130ACA2574030010BD05 32-33

AmCham Frank Lowy AC Access Chairman, Westfield Corporation

“Some people say that America is a spent force. They’re wrong.” –Tony Abbott, Prime MinisterAustralia and US States in 1976, in Trumbull, Connecticut. It The shopping centre we are currently buildingConnection: The was owned by two brothers; unsophisticated, at the World Trade Center site will be the latestWestfield Story rough-hewn men from Sicily who had worked manifestation of this trend towards iconic in salt mines in Ohio before becoming builders. shopping centres in global cities.The United States has been part of my They were tough negotiators, but I like to think It will build on the runaway success of our twobusiness life since the 1960s. But it has they met their match in a couple of migrants flagship centres in London which are valued atbeen part of my consciousness since I was from Australia with a similarly unsophisticated more than $6 billion, and generate $3 billiona boy. As one of millions caught up in the past. It was another reminder for me that in annual retail sales, welcoming 60 millionchaos and brutality of the Second World the United States, like Australia, was a great visitors each year.War in Europe the idea of America as a meritocracy.powerful liberator and a force for freedom Westfield World Trade Center will be justwas ever present. After we bought the Connecticut centre, I as successful; a showcase of innovative spent the first six months living there, and architecture, many of the world’s finestThat idea was given substance during my early found that going into the office every day brands, gourmet cuisine and five-star customervisits to the country as a young businessman. was just like going to the office in Sydney. I service. Like our other iconic centres, it willMy partner, John Saunders, and I had enjoyed quickly made friends, and immediately saw the host exhilarating events and entertainmentquick success in Australia with our shopping enormous potential for further growth. that transform mere shopping destinationscentre business, Westfield. We started with a into the most authentic ‘social networks’ ofdelicatessen in the burgeoning western suburbs On returning to Sydney, I continued to the modern urban community. Our dedicatedof Sydney, catering to the migrants flooding visit Connecticut regularly and phoned digital technology team based in San Franciscointo the area in the 1950s and 1960s. We built a management there every day, and sometimes will ensure it connects digital and physicalsmall shopping centre nearby, then a larger one several times a day. That was the start of shopping into one seamless experience.and yet more in other Australian states. a daily connection to America that I have maintained for the past 38 years. This pursuit of excellence and the embraceBut by the mid-1960s we looked to America, the of new technology have been at the heart ofhome of the shopping mall for inspiration and, The spirit of continual change and innovation our company’s approach since it was foundedeven in those early days, as a future market for that is so much part of the American business in 1960. We like to say that we are not inWestfield. We were nothing if not ambitious. scene has been hugely important in keeping the shopping centre business. We are in the Westfield at the forefront of the shopping business of finding better ways to connect theOn our frequent trips to the United States we centre industry. shopper with the retailer. This has always beenwere always struck by the unbridled optimism a constantly evolving challenge and we believeand energy of the place. We were also struck As our business grew in the United States the future for the kind of flagship centres weby the generosity of the people we met. We during the 1980s and 1990s, we strove to are now developing is bright.would visit malls all over the country, looking improve the appeal of our centres, and sharedat their design, the retail mix, and details ideas between our teams in Australia and Westfield World Trade Center will be a defininglike customer service. We would ask security America. The whole became greater than the project for our company, and I am immenselyguards questions about how they worked. Even sum of the parts. proud that the best of what we do will be onpotential competitors were happy to share show in New York, in a nation that was soideas, to patiently explain and encourage us. Today, the centres we build and manage fundamentally important to our corporate are vastly different from those of even a story. In my case, it is hard to separate theIn short, we were made to feel welcome. Even decade ago. The quality of every aspect corporate story from my personal story. I feelthen, we felt at home, and it is not so surprising of the building now assumes a far greater the same way about Australia and America.that we did. It has become commonplace to importance, leading Westfield to own fewercite our nations’ shared values and shared but higher quality assets, concentrated in So I am very pleased to add my personalwartime experiences. And it is true that the some of the world’s great cities, including Los welcome to President Barack Obama as healliance that underpins our relationship has Angeles, San Francisco, and soon, New York. visits our shores for the G20 Leaders Summitendured because it is based on mutual respect. in Brisbane.But it’s also true that on an individual level ourexperience has been overwhelmingly positive.Westfield bought its first mall in the United 34-35

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