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Issue 01 Spring 2014

Access Welcome President Obama

AmCham John Berry Patron United States Ambassador to Australia

Message from Ambassador Berry for AmCham Australia and the United States are at a momentous time in our history together. Three years ago, during his first visit to Australia as President, Barack Obama outlined his vision for a U.S. rebalance to the AsiaPacific. This announcement marked a major step forward in our relationships with both Australia and the region. This weekend, I am pleased to welcome President Obama back to Australia where he and Prime Minister Tony Abbott will join leaders from some of the world’s biggest economies at the annual G20 Leaders’ Summit in Brisbane. We look forward to robust discussions of key economic issues. This year, as a result of Australian leadership, the G20 has made steady progress in advancing our shared agenda of stimulating global growth, ensuring a sustainable economic recovery and creating jobs. The President’s visit presents a unique opportunity to celebrate the unparalleled bilateral ties between the United States and Australia. Forged in the crucible of war and built on a foundation of shared values, our partnership has upheld the peace and security that have made the remarkable economic rise of this region possible.

Next year, we will mark the 10th anniversary of the Australia-U.S. Free Trade Agreement. Since 2005, our bilateral trade has risen to approximately $60 billion, trade that has benefited all of us. Australian miners and farmers are using U.S.-manufactured equipment that has helped drive the export booms underpinning Australia’s long streak of economic growth. Australia’s best wines grace American dinner tables, and Australian factories produce many of the parts used by our airplane manufacturers. Today, the United States is the largest foreign investor in Australia. At the end of last year, U.S. direct investment in Australia was $159 billion, and Australian companies had invested $44 billion in the United States. If we count indirect investment, the entire U.S.-Australia investment relationship is worth more than a trillion dollars! We’re proud that American companies are also leading employers of Australians, from manufacturing to technology companies to the financial industry. Our wideranging economic relationship proves that free trade and open investment regimes make good business sense. Today, we are presented with an enormous opportunity to expand free, fair, and open trade and investment. The Trans-Pacific Partnership (TPP) lies at the heart of our shared commitment to building prosperity in the 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.

Contents Access Issue 01

The agreement will include strong protections for workers, the environment, intellectual property, and innovation. Our businesses and farmers will have greater access to a trading area that produces 40 percent of the world’s GDP, creating more and better jobs. It will set the standards for trade in the 21st century.


Message from Ambassador Berry

Whether in trade and investment, humanitarian relief, or security and defence, the United States has no better friend or ally than Australia. We are grateful for Australian leadership, advice, and support as we work together to address the world’s most pressing problems.


Close people-to-people ties, including those between business and non-government organisations such as the American Chamber of Commerce, are a pillar of the relationship between the United States and Australia. I thank you for all that you do to promote trade and investment, mutual understanding, and close cooperation between our two countries, and look forward to continuing our work together to advance this relationship.

24–25 Landor

3 Contents 4-5

Welcome from Niels Marquardt

6–7 Boeing 8–9 Caterpillar 10–11 Conoco-Phillips Delta Airlines

14–15 GE 16–17

GM Holden


Incitec Pivot


K&L Gates

22–23 Kimberly-Clark 26–27 Macquarie 28–29 PPR 30–31 PwC 32–33

Virgin Australia

34–35 Westfield Published - AmCham

Magazine Editorial and Management - PPR

Brand and Magazine Design - Landor Associates

Our partners

A warm welcome from

A future optimistic and bright: The USAustralia partnership On behalf of the American Chamber of Commerce in Australia, I am delighted to join Ambassador Berry and the people of Australia in welcoming President Obama back to Australia! Barack Obama is only the fifth American president to visit Australia while in office, and he is coming back again following his first visit in November 2011. After Lyndon B. Johnson and George W. Bush, he will become only the third president to visit twice while in office. In my view, this now ingrained practice closely reflects the steep rise of Australia as a critical American partner in security, economic and global leadership terms. Access is intended to call particular attention, and pay tribute, to the unparalleled economic relationship between Australia and the United States. While it is surely true that America has no closer friend than Australia, I do not think this phrase goes nearly far enough in describing fully how warmly Americans feel about our mates down under. Nor does it capture the depth and breadth of our multifaceted engagement with one another. In addition to sharing democratic values, cherishing human rights and the rule of law, defending liberty and protecting the less fortunate, collaborating to solve the most difficult global challenges, welcoming immigrants to our shores from around the planet, and a host of other distinctions shared by very few other peoples, Americans and Aussies genuinely enjoy working and spending time with one another. This extreme personal and cultural affinity sets this relationship apart, in my view, from the bonds America enjoys with other key economic and security partners. This closeness between us is no more evident than in the field of two-way investment between our peoples and nations. Simply put, Americans and Australians are betting heavily on the success of one another, with each nation entrusting the other with

Niels Marquardt CEO, AmCham Australia

hundreds of billions of dollars of accumulated wealth. America is by far the largest investor in Australia, and America is by far the largest overseas destination for Australian investment. These gargantuan, two-way flows have created a trillion-dollar shared bet that continues to grow more significantly than any other Australian investment partnership. Combined with the robust two-way trade between us, these unrivalled investment flows have made America – in the words of multiple Australian ministers – “Australia’s leading economic partner.” In 2013 alone, the American stock of FDI in Australia rose by an additional A$35 billion, to reach a total of A$149 billion. This was perhaps a surprising development for observers expecting some of the rising nations of Asia to start challenging the primacy of the US-Australia partnership. In fact, the gap between America and the next most important investors in Australia – the UK and Japan – grew wider in 2013, rather than narrowing. As for the inevitable question about China, its $5 billion worth of new investments in Australia in 2013 put it in 7th place among foreign direct investors here. This amounted to 13 percent of the American inward flow in the same year. If these trends continue, America is on track to remain the largest foreign investor in Australia well into the future. Yes, we are also bullish on the opportunities that flow from ‘the Asia-Pacific Century’, but sometimes it is necessary to remind ourselves that America has long been a Pacific nation itself. These bold statistics may speak for themselves, but the purpose of Access is to create some feeling for the human side of the two-way investment relationship. Indeed, few of us can really put our hands around unwieldy, 11-digit sums! Yet we are able to appreciate stories about what specific companies from Australia are doing in America and vice versa. Telling them from the CEO perspective gives them an added personal dimension that I hope you too will enjoy.

Reading these stories, we are all able to appreciate what it means to create good jobs in one another’s economies. We are able to grasp how shared values underpin our largest companies’ ventures across the Pacific. We can see the improvements that these investments are bringing to the lives of ordinary citizens in both countries. We can explore the reasons why Australian and American companies are making big bets in both countries, and we get some insight into the futures they are building. As you can see, that future is a bright and optimistic one that will help to convey the best ideas, innovations, practices and ethics between these two partner nations. This collaboration is the essence of the USAustralian economic partnership. We are especially pleased to present a balanced picture of the many sectors in which trans-Pacific investment is making a difference. Through just 15 stories, we see how Conoco-Phillips and Incitec Pivot are, in different ways, developing energy resources. We can see the value of vibrant growth in airline services from Delta and Virgin Australia as a means to bringing two closely allied nations even closer. The CEO’s stories from Boeing, Kimberly-Clark, and GE will remind readers of the importance of R&D collaboration and niche capability to maintaining Australia as a successful platform for advanced manufacturing, as well as their important roles in creating thousands of good jobs in Australia. K&L Gates’ story highlights how vital shared values are to promoting business growth through the provision of legal services grounded in ethical practice and the rule of law. Caterpillar is intent to show readers that they are about values at least as much as they are about big yellow trucks and tractors. The Macquarie Group and Westfield each educate us on how and why Australian firms continue to see so much promise in the huge American market. GM/Holden reminds us that while their activities are evolving in response to the changing market, this iconic firm’s commitment to Australia has never wavered. PwC is a great example of a seed from America sprouting and growing into an enormous tree of knowledge independently serving Australia and the entire Asia-Pacific region. Landor will educate readers on the

importance of brands becoming more agile in today’s hypercompetitive and fast-moving world, and PPR discuss the importance of a globally integrated communications program. All of these firms’ trans-Pacific investments are characterised by superlatives. For Boeing, Australia represents their largest overseas employment footprint. For Westfield, America represents their largest overseas presence. For many American firms, including Caterpillar and GE, Australia – with ‘only’ 23 million people – represents their largest or second-largest overseas market. Many have been in these markets for decades, some for almost a century. Thanks to the expansion of air services by airlines like Virgin Australia and Delta, America has become the leading overseas destination for Australian travelers. Macquarie may now be Australia’s single largest investor in America, across a range of sectors. The gas liquefaction complex at Curtis Island in Queensland, in which Conoco-Phillips is a major investor and the primary technology supplier, represents the single largest investment site in the entire history of Australia. PPR opened its first office outside of Australia in the US and was shortly awarded the World’s Most Innovative PR Agency. These superlatives give the reader some idea of the enormous scale of the US-Australia economic relationship.

We have moved beyond the American eagle that so well served us since our inception, and instead have adopted an ‘A’ for Australia and America – and Access. Reflecting the colours of both nations’ flags, we are still red, white, and blue, and we feature the fivepointed star common to both. Our new look is very intentionally more progressive and more international, as more than half of our members are now non-American firms. But we still see ourselves as the voice of American business in Australia, as well as a voice of Australian business in the US and throughout the Asia-Pacific region. To better fill those big advocacy and information roles, we are actively building up our structure of AmCham committees and working groups to cover Defence & Security, Human Capital, Energy & Resources, Trade & Government, Health, Innovation, and Taxation, with additional new groups slated for launch in 2015. We hope you enjoy reading Access. We hope that doing so will leave you with many new insights into the myriad benefits flowing to both American and Australian citizens from the enormous trade and investment taking place in both directions between these two great nations. And thank you all for joining in welcoming President Obama back to Australia! Until next time,

AmCham of course has its own story to tell. Founded in Sydney just as John F. Kennedy entered office in 1961, we have grown into the largest international business organisation in Australia. We have a presence in six Australian capitals. With some 1,000 corporate members and over 200 events and programs offered each year across the country, we offer unrivalled access to opportunity in the international business space. We continue to evolve in interesting ways, as reflected in our new brand.

Niels Marquardt


AmCham Maureen Dougherty Access President, Boeing Australia and South Pacific AmCham President

A long haul partnership When asked if the adjustment to life in Australia has been difficult, Maureen Dougherty smiles broadly. The recently appointed president of Boeing Australia & South Pacific has slipped into the role with an ease her colleagues say has seemed “effortless”. As head of the aerospace and defence company ‘Down Under’, she is tasked with ensuring all parts of the business in Australia operate efficiently across all divisions and are thoroughly integrated with the Boeing businesses across the United States and the rest of the world. In Australia, Boeing has its largest footprint outside of the US with more than 3,000 employees working at 27 sites around the country. Boeing products and services form a key part of Australia’s world-class defence capability. This includes the Wedgetail E-7 Airborne Early Warning and Control aircraft, Super Hornet strike fighter and C-17 military transport aircraft, and Australian companies contributing to Boeing products sold all over the world. “I know the strong Australian dollar has been challenging in recent years for exporters like us and our many Australian suppliers; but these challenges are not insurmountable. Although we operate in a high cost environment, Australia is building a reputation for productivity and innovation,” Dougherty said. She points to the work being done at Boeing Aerostructures Australia at Melbourne’s Fisherman’s Bend for the 787 Dreamliner aircraft.

“This is Australia’s largest single aerospace contract valued at $5 billion over 20 years to produce the moveable trailing edge – that’s the wing control components – for the 787, and it is world class,” she said. “We won the work based on Australian innovation and technological know-how. “These type of contracts are not simply handed out to businesses because they have Boeing in the name or some form of ownership, we have to win the work and demonstrate we can deliver the best product at a good price and on time, to beat many other competitors around the world. “And we are doing just that.” “The Australian team came up with patented technology for a resin-based infusion system that enables the composite components to be ‘cured’ without the need for an autoclave. It’s truly innovative and extremely efficient – using less infrastructure and energy to produce the parts – and the intellectual property resides with Australia. Dougherty believes the company could not achieve this degree of success without a significant investment in research and development. Worldwide the company invested US$3.5 billion in R&D last year; a significant investment for any company. Boeing Research and Technology has a particularly large presence in Australia; the largest outside the United States. With laboratories and offices in Melbourne and Brisbane, the team of highly qualified people is working on breakthrough technologies that 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.

Today Boeing has never been a more invigorating place to work, and Australia is truly among the most dynamic places to operate an aerospace business.


U.S. investment into Australia The USA is top foreign investor in Australia with AUD $657.9 billion in 2013 – a 26.7 percent share of the total of 2.5 trillion. The leading investor countries as of 31 December 2013 were:

$657.9 b $562.9 b



$131 b $60.5 b



“We like to tackle interesting problems,” he said. One such project underway is the creation of a virtual world capability that can be used for simulation-based tests and experimentation in the same way physical tests can be undertaken in the real world. Edwards also believes it is important to collaborate with and invest in research and the company is especially proud of its 25-year history of working with the CSIRO. This relationship has produced a number of technological breakthroughs that have resulted in taking the ideas through to commercialisation. Australian universities also play a major role in Boeing with the company providing sponsorships and bursaries over the years, as well as collaborating and contributing to some exciting research projects. “Right now some of our researchers are working on how Unmanned Aircraft Systems could be used for commercial applications within shared civilian airspace through the development of a computer-vision based ‘Sense and Avoid’ system in collaboration with Queensland University of Technology.”




After almost 90 years in Australia, the company’s relationships with small to medium sized enterprises (SMEs) in Australia are deep and enduring and continue to expand every year. Seven years ago the company set up the Office of Australian Industry Cooperation (OAIC) based in Seattle to identify immediate and long-term opportunities for SMEs within Boeing’s global supply chain. Dougherty recognises that with a company of the size and scale of Boeing, it can be challenging for smaller businesses to understand how to identify opportunities within the company. “Australian SMEs come in all shapes and sizes with varying talents, business abilities and expertise, and initially much of the work by the OAIC involved training to ensure they had the skills and knowledge to deliver internationally and were across subjects like LEAN manufacturing and Quality Assurance that are integral to our business,” she said. Today, Australian contractors are involved in every Boeing commercial program and every defence platform.

$51.3 b

Hong Kong

$47.1 b


Creating and developing productive relationships across the Boeing business here in Australia and for its suppliers is a key part of Dougherty’s role too. As president of the American Chamber of Commerce, earlier this year she was invited to take part in the Prime Minister Tony Abbott’s first Australian trade delegation to the United States and Canada. “I was there to represent the Australian business along with other Australian CEOs to reinforce the Prime Minister’s message that Australia is ‘open for business,’ and it was a real honour to do so,” she said. “After all, Australia really is open for business. We have a highly skilled and educated workforce working on leading edge technologies and we are continually investing in our people, our partners, our R&D and in our universities to ensure we have a long term future here.” “Today Boeing has never been a more invigorating place to work, and Australia is truly among the most dynamic places to operate an aerospace business,” she adds.

“The OAIC works because it delivers tangible 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.


AmCham Douglas R Access Oberhelman Chairman and CEO, Caterpillar Inc.

The Value of Sustainability In 2012, 20 years after the landmark 1992 Earth Summit in Rio world leaders, along with thousands of participants from NGOs and the private sector again gathered in that city to speak about social equity and environmental protection. Official discussions focused on two main themes: how to build a green economy to achieve sustainable development and lift people out of poverty; and how to improve international coordination for sustainable development. Sustainable practice is no longer a fad. It is prevalent in manufacturing, retail and various other industries and is preached by most businesses in the developed and even developing worlds. In fact, sustainability is a key element in operational charters for most businesses and has been readily adopted by employees. In some cases, it is the staff whose communityminded values drive sustainability change; significant advances toward sustainable progress have resulted from these efforts. Other times, a company itself takes the lead. This was the case in 2013, when the world’s leading manufacturer Caterpillar began a transformational journey with respect to sustainability. By formally recognising sustainability as a core value for the enterprise, the company embedded sustainable practice into its culture to make it an integral part of their DNA.

Significantly, this move reflects the priorities of the next generation of leaders and the heightened focus placed on sustainability around the world. This move by Caterpillar is reflective of broader industry initiatives and demonstrates that sustainability is not just a series of practices conducted to benefit communities, the environment and enterprise; sustainability is now inherent in the way Caterpillar employees do their daily work. What Caterpillar has done is set longterm goals for operations and product stewardship; standards they believe affirm their determination to lead the industry to a more sustainable future. By taking a look at these goals, we can gain an impression of a good way for business to approach their sustainability practices. 2020 Goals for Operations: • Reduce their recordable workplace injury rate to 0.6 and lost-time case rate due to injury to 0.15. • Reduce energy intensity by 50 percent. (Baseline: 2006) • Use alternative/renewable sources to meet 20 percent of their energy needs. • Reduce greenhouse gas emissions intensity by 50 percent. (Baseline: 2006) • Reduce water consumption intensity by 50 percent. (Baseline: 2006) • Reduce by-product materials intensity by 50 percent. (Baseline: 2006) • Design all new facility construction to meet Leadership in Energy and Environmental Design (LEED) or comparable green building criteria.

2020 Goals for Product Stewardship: • Safety: Provide leadership in the safety of people in, on and around their products. • Products, Services and Solutions: Leverage technology and innovation to improve sustainability of products, services and solutions for their customers. • Systems Optimisation: Increase managed fleet hours by 100 percent. (Baseline: 2013) • Remain and Rebuild: Increase remanufactured and rebuild business revenues by 20 percent. (Baseline: 2013) Business has a unique opportunity to lead the development of solutions for some of the world’s most challenging issues associated with energy, water, land, climate and quality of life. As the global leader in providing the products and services needed for carefully extracting resources and developing infrastructure, Caterpillar is at the apex of many issues and provides a solid example of how to act. As the population grows and migrates to urban areas, needs for sanitation, water, transportation and housing will escalate dramatically. Caterpillar’s capabilities associated with distributed power generation coming from diverse sources ranging from natural gas to renewable fuels can contribute greatly to addressing energy shortages around the globe. Up to 25 percent of the world’s land is now highly degraded. Caterpillar’s machinery can play a major role in restoring these lands to improve ecosystem health and increase land productivity. We need to work together to implement the measures needed to fully embed a sustainable future. To tackle these challenges all companies

G(irls)20 Summit Sydney 2014

need a strong moral compass and a set of values at the core of their culture. The ways businesses can contribute to sustainable progress are limited only by imagination, so it is time to unleash the human capital and talent required of effective leaders. More than ever, the world needs sustainability leadership.

• Girls reinvest 90 percent of their income in family. • When there is just a 10 percent increase of girls attending school, a country’s GDP increases on average by 3 percent. • An educated woman will educate her children (boys and girls) equally.

Making Progress Possible for Women Commitment to sustainability and innovation goes beyond products. It must take into account investments intended to alleviate poverty and address basic human needs like energy, water and food. The Caterpillar Foundation targets the root causes of poverty and their grants are aimed at disrupting this cycle to help put people on the path to prosperity. Since 2012, it has invested just under $80 million in girls and women, through programs that address access to clean water, energy and microfinance, education and more. One of the many initiatives that Caterpillar Foundation supports, G(irls)20, aspires to influence and shape the future economic policy of G20 leaders and to cultivate a new generation of female leaders around the world. The benefit of investing in girls and women yields a strong return for companies, communities and countries:

At the 5th G(irls)20 summit held in Sydney, delegates from around the world gathered to discuss growth, employment, sustainability and infrastructure. Tiffany Kirkwood, Caterpillar District Manager, discussed the leadership opportunities and contribution women can make to global companies. “It is inspiring to see a group of young woman addressing and challenging global issues in an effort to make a positive impact in their communities,” Kirkwood said. “The exponential economic growth resulting from developing and educating women will forge a greater willingness for leaders to drive progression.” Given the critical role women play in helping build strong communities and economies, Caterpillar is committed to ensuring that girls and women around the world have every possible opportunity to succeed. That’s why they are supporting the G(irls)20 Summit in an effort to empower the next generation of change agents.

“Our bilateral trade has grown by around one third since we entered into a free trade agreement in 2005.”–David Johnston, Defence Minister.


AmCham Ryan Lance Access Chairman and CEO ConocoPhillips

Australia’s burgeoning LNG export business As the Group of Twenty (G20) meets to address the vital topic of international economic cooperation, we at ConocoPhillips are reminded and wish to acknowledge the close and enduring relationship established between this year’s host nation, Australia, and our home country, the United States. We believe it should serve as an example of cooperation and friendship in a world in which nations are increasingly dependent on each other for mutual economic prosperity. We also wish to recognise the growing role that Australia’s natural gas will play in providing the Asia Pacific Region with the energy needed to power modern life and economic growth. Our two countries have much in common beyond our shared history and heritage. We both occupy positions of strategic importance on the Pacific Rim; we both recognise that in a highly competitive world, it’s wise to have close friends, allies and trading partners; and we are both building a brighter energy future by developing our abundant natural resources. Furthermore, Australia is already a major energy exporter and the United States is poised to assume that status very soon. We have great pride in being part of this relationship. Our two-decade presence in Australia has led to billions of dollars in capital investments. We are one of only two companies currently operating liquefied natural gas (LNG) export facilities in Australia: from our Darwin facility in the Northern Territory and the associated Bayu-Undan offshore producing fields in the Timor Sea. Furthermore, our involvement is growing: we are a foundational

partner in the Australia Pacific LNG project in Queensland, rapidly approaching completion and startup in 2015. We serve as operator of its liquefaction facility, which is supplied by coal seam gas, with which we have decades of successful experience in the United States. We are also pursuing promising new opportunities, including potential development of the Greater Poseidon and Caldita-Barossa offshore fields. Just as Australia poses opportunity for ConocoPhillips, its energy exports offer a key to future economic growth and prosperity for energy-importing nations. Income growth and urbanisation in developing countries is driving energy demand ever upward. Each year the world adds 150 million people to its middle class, creating new energy demand, while 1.3 billion people worldwide who lack electricity and 2.6 billion who lack clean cooking fuels are also seeking access to energy. Meanwhile, world population by 2050 is expected to reach 9 billion; an increase of 2 billion from today. These realities portend a ready market for all forms of energy, particularly natural gas, due to its availability, affordability and cleanburning nature. Natural gas emits little of the soot and nitrogen oxides that cause acid rain and smog. Further, gas-fired power generation plants produce only half the greenhouse gas emissions produced by equivalent coal-fired plants. Expanded use of natural gas to replace other fuels thus represents the fastest and lowest-cost option through which to address climate concerns. Analyses indicate that for every tonne of greenhouse gases emitted during production of Australian LNG, emissions in importing nations are reduced by 4 to 9.5 tonnes through displacement of less cleanburning fuels in electricity generation. As such, the benefits of Australian LNG extend even more broadly. Consuming nations gain the energy access they need;

Australians gain job creation, infrastructure development, technology transfer and economic growth; and the people of the world gain a cleaner environment. Given its substantial conventional natural gas resources offshore, its coal seam methane resources and potential shale gas resources onshore, and its rapid pace of development, Australia appears destined to become the world’s leading exporter of LNG. At a personal level, we are gratified that ConocoPhillips technology plays a vital role in this growth through broad utilisation of our Optimised Cascade liquefaction process, which transforms raw natural gas into exportready LNG. Through a long-term collaboration with Bechtel, the process – as well as plant design and engineering support – is available for licensing. Of Australia’s 10 major LNG projects already operating or under development, five utilise Optimised Cascade; including our own Darwin and Australia Pacific facilities and the Queensland Curtis LNG, Santos GLNG and Wheatstone projects. In total, six licensed projects are under way in Australia, the United States and Angola. Among our other innovations during a 45-year history in the LNG business, ConocoPhillips built the world’s first LNG carrier for international trade; established the world’s second successful commercial liquefaction facility, and originated LNG exports to Japan. These are examples of a leading company working with partners locally and across the seas with tangible benefits for all. Innovations and collaborations like these offer a reminder that the shared success of Australia’s burgeoning LNG export business could serve as an example for other nations and industries. We wish the G20 every success in its deliberations during the crucial 2014 meeting.

AmCham Richard Anderson Access CEO, Delta Air Lines

Reshaping a business model In today’s fast-paced global environment, the business landscape changes rapidly. Incremental change is no longer enough to successfully adapt over the long term. To achieving a sustainable competitive advantage, companies and organisations must increasingly consider a complete reinvention of their business model. That’s the path we took at Delta Air Lines, which is one of the largest global carriers, serving 165 million passengers every year to 323 destinations in 59 countries. After a period of great financial difficulty for the U.S. airline industry in the years following 9/11, we engaged in a series of steps to reshape our model with the goal of becoming the global airline of choice for customers, employees and investors. The ultimate goal of our restructuring was to reduce financial risk and volatility, and to further enhance our sustainability for long-term success, and end the destructive boom-andbust cycle that had trapped the airline industry for decades.

Full flat-bed seats in BusinessElite®

Delta Sky Club®

Delta’s employees and our leadership team put innovation at the forefront of a series of strategic business decisions, which included: • The creation of subsidiary Monroe Energy, which purchased an oil refinery in Trainer, Pa., to address the rising cost of jet fuel, which is our number one expense. • The acquisition of a 49 percent stake in Virgin Atlantic to strengthen Delta’s presence in the US-UK market and provide real competition in this market for the first time. • The decision to invest in strategic equity partnerships in GOL and Aeromexico to grow the critical Latin American market. • A strategic expansion of Delta’s network in the key business markets of New York, Seattle and Los Angeles. • Complete interior upgrades to all Delta international wide body aircraft, which is on schedule to be completed this year, and replacing small 50-seat domestic aircraft with larger aircrafts to improve operational efficiency and the customer experience. • The launch of a new SkyMiles program in Jan 2015, which will better reward our most valuable customers.

“Past, present and future, the United States is – and I suggest is likely to remain – Australia’s single most important economic partner, taking into account investment stocks worth over one trillion dollars, plus our two-way trade.” –Julie Bishop, Foreign Minister.

The results of our focus on innovation have been remarkable. Last year, Delta reported a $2.6 billion profit, paid out more than $500 million in profit sharing for Delta people, provided pay raises for all employees, produced a $350 million return of capital to our shareholders and saw us return to the S&P 500. This year, Delta expects to report a record $4 billion in pre-tax profit, which will be the largest profit in the history of passenger aviation. The media took notice. Delta was recognised as the 2014 Airline of the Year by Air Transport World magazine and one of FORTUNE magazine’s 50 Most Admired Companies. These accolades reflected the hard work of Delta’s 80,000 employees worldwide and the foresight, wisdom and resilience of Delta’s leadership team. So why has Delta been so successful? In short, it is because we have embraced change and committed to excellence, innovation and servant leadership. Delta is making strategic decisions based on rationally building a sustainably profitable business. Our employees are active participants, and in many cases, the leaders, of this culture of innovation. All of our key stakeholders – employees, customers and investors – reap the benefits. That’s why we see our ongoing investment in our people as a critical component of our ability to consistently achieve operational excellence and deliver a superior customer experience. Also at the forefront is investing in delivering the best possible customer experience in the air, on the ground and at all points of customer engagement, Delta has continued to make strategic investments in products, airport facilities and technology to improve our customers’ overall experiences.

Such investments include: • Installing full flat-bed seats on all international wide body aircraft. • Placing Westin’s Heavenly inflight bedding products and Tumi amenity kit on all BusinessElite seats, • Introducing Economy Comfort™ seating with additional leg room and recline in the Economy cabin. • Operating more Wi-Fi-equipped aircraft than any other carrier. • Providing more First Class seats on U.S. domestic flights. • Upgrading more than 45 Delta Sky Club® locations worldwide. • Creating new international terminals at New York-JFK and Atlanta. • Updating delta.com and the Fly Delta app, among several other initiatives. Another example is our focus on improving the onboard dining experience. BusinessElite® customers enjoy a top-of-the-line in-flight dining experience with meals created by award-winning chefs and menus that are refreshed seasonally and vary according to departure city and destination. One final thing to consider when implementing sustainable change is building key alliances. Close cooperation with strategic partners is the most effective way to broaden global presence for customers and improve economic performance in key international markets. Delta’s joint venture partnership with Virgin Australia has become a critical part of our strategic growth. Delta launched its first Sydney to Los Angeles flight on July 3, 2009, and signed a joint venture partnership with Virgin Australia the same year. The strategic alignment was approved by the U.S. government in 2011, greatly expanding options for customers traveling between the U.S. and Australia.

Building alliances has also played an important role in Delta’s Asian network expansion. In addition to Virgin Australia, Delta has partnerships with China Eastern, China Southern, Xiamen Airlines, Korean Air, China Airlines, Vietnam Airlines and Garuda Indonesia in the Asia Pacific region. The codeshare agreements with these airlines allow Delta access to the interior cities in the rapidly growing Asian countries, while providing partners with access to Delta’s leading North American network. When doing business in the international markets, companies have a civic obligation to give back to those communities. Consideration of charitable programs and philanthropic causes can go a long way to not only building alliances but also shaping their future. In coming years, the global industry will continue to work to reduce volatility and achieve a greater level of stability despite economic and geopolitical uncertainty. With regard to the aviation industry, U.S. airlines, led by Delta, have established a path toward financial stability that includes balancing supply and demand, deploying innovative solutions to address long standing industry issues, and never losing the focus on serving customers. Customers will increasingly enjoy the benefits of a healthy, competitive airline industry that can provide ongoing improvements to service. Airline employees will benefit from job security and career opportunities, and investors will reap the rewards. None of this would have been possible without a commitment across the entire company to fundamentally reshaping our business model in every way we could for future success.


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 next Silicon Valley? Australia is at an inflection point. We have enjoyed 20 years of uninterrupted growth fuelled by the insatiable demand for resources and energy from our Asian neighbours. Now, as commodity prices level out, capital investment slows and various sectors inevitably become disrupted by global technology trends, we face a critical question: how can Australia be competitive in a world where it is increasingly difficult to win? There are remarkable opportunities for Australia. While we may not have the size, scale and population of other leading economies we do have the knowledge, creativity and entrepreneurial spirit to compete with the best. Take Silicon Valley, for example. With a geographical size of about three thousand square kilometres and a population of approximately three million people, Silicon Valley leads the world in many sectors, generating economic impact well above its size. The top ten companies alone in Silicon Valley have a combined market capitalisation of $1.7 trillion. That is more than Australia’s total gross domestic product. Silicon Valley attracts the best and brightest from all around the world. It is a breeding ground for entrepreneurs, technologists, inventors and investors. It has the world’s highest concentration of high-tech workers and high-tech manufacturing. It is home to some of the world’s most innovative and disruptive companies. For these reasons and more, GE has invested $1 billion to establish a software headquarters in Silicon Valley. We added 1,000 software engineers who are working on applications across our businesses in healthcare, transportation, energy, oil and gas.

We made this significant investment because we see massive change taking place. The rapid convergence of the physical and digital industrial world is driving global technology trends, accelerating innovation and encouraging greater global collaboration through access to big data, smarter and more connected machines and real time analytics – something we call the Industrial Internet. These trends will reinvent industry as we know it and transform the way we work. This focus on software and the profound opportunity for greater collaboration with our customers on analytics and applications is critical to our success in global markets, including Australia.

So what can we learn from Silicon Valley to drive Australia’s growth? At the very core of the region’s success is its highly skilled and richly diverse workforce and an extraordinary culture that is open, nurturing, thrives at risk-taking and is comfortable with failure. Australia’s ability to compete globally in a connected, technology-driven future lies in the strength of our knowledge economy. We too can compete on a base of innovation and entrepreneurialism. However, we have to invest in skills and talent. Demand for engineering talent in Australia currently outstrips supply. We must invest more in STEM education. STEM is a curriculum based on the education

of students in four crucial disciplines: science, technology, engineering and mathematics. We commend the Prime Minister’s announcement last month to set up five industry growth centres and the Commonwealth Science Council as part of its Industry, Innovation and Competitiveness Agenda. This policy is crucial in boosting our nation’s knowledge economy, encouraging greater entrepreneurship and bringing business, government and industry closer to commercialise ideas with speed. Businesses must also continue to invest and at GE we know we have a role to play in this. In 2012 we opened a $100 million technology and learning complex in Jandakot, Perth. We have since provided over 45,000 hours of critical training and skills development for our people and our customers in the oil and gas, mining and transportation sectors. Since 2010, we have been running open innovation challenges to develop critical technologies. In 2012, we launched our first local ecomagination challenge, which sought out disruptive technologies for a low carbon future. We also have a $20 million, five-year innovation partnership with the CSIRO where we collaborate with research to address global challenges around healthcare, materials, energy, resources and analytics. We launched this alliance in 2010 and have seen real advances in technologies that will change people’s lives. The time to act is now. With the right investment and policy frameworks to enable business investment and risk-taking, we can develop and nurture a highly skilled workforce for the knowledge economy. We can build Australia into a hub for innovative businesses and technology leadership. We can fuel growth through a culture of creativity and invention. We can make Australia competitive for the next generation.


AmCham Gerry Dorizas Access Chairman and Managing Director, GM Holden

Holden and General Motors – An Australian and American Union The key to building a successful business in Australia is the ability to embrace change and re-invent your company when times demand it, while at the same time retaining the trust you have built in your brand and your relationship with Australians. More than anything else, the ability to adapt will drive success. Be Global, Think Local Few companies better embody the friendship that exists between Australia and the United States than GM Holden. It is Holden’s Australian heritage and our incorporation into General Motors (GM) that makes us one of the top automotive companies in this country. Our local heritage and global footprint has GM Holden best placed to meet the challenges of today and build a successful future. Holden is a trusted Australian brand; one that has been part of the lives of successive generations of Australians and synonymous with creating better journeys across our wide brown land. We are global, but we think local. We believe we know Australian consumers better than our competitors, and we know we are in a position to access the best possible cars from GM’s global operations and tune them for Australian conditions and Australian customers. We are determined to become the most customer-centric automotive company in Australia. This is what it takes to be successful in Australia.

No Auto Company Knows Australians Like Holden Holden has been helping to give Australians better journeys for almost 160 years, starting in Adelaide, South Australia, when company founder James Alexander Holden established his saddlery business in 1856. Since then, Holden has grown and changed as Australia has grown and changed. Australians – dealing with such vast distances – were among the first in the world to fully embrace the potential of the automobile and, in 1917, Holden began assembling cars imported from the United States and the United Kingdom. In 1931, Holden was acquired by General Motors (GM). Becoming part of GM provided the capital and the expertise that enabled Holden to play such a pivotal role in building Australia’s economy. Over the following decades, manufacturing was critical to Australia’s emergence from the Great Depression and Holden was at the forefront of this remarkable economic transformation, employing thousands of Australians and being at the cutting edge of innovation. In fact, these early investments by GM in our manufacturing capability meant Holden was an important asset for the nation’s security, as all our factories were turned over to wartime production from 1940. Following the end of World War II, Holden’s and Australia’s transformation continued – and in 1948, we made history, when Prime Minister Ben Chifley joined us to launch Australia’s first mass-produced car, the 48/215. In the decades that followed, we continued to design, build and sell cars for Australians; from the FJ, to the Kingswood, the Commodore to the Cruze, GM Holden has been a cornerstone

of Australian life. And we have taken our great cars to the US; like the Chevy SS, which continues to draw critical acclaim. Just as importantly, over those decades, both Australia and the United States have been enhanced by welcoming migrants into our communities. Our workforce at Holden came to reflect the changing composition of Australia’s population, as waves of migrants from the United Kingdom, Italy, Greece, Vietnam and so many other countries joined our company. For many thousands of migrants and their families, Holden provided their start in Australia. Changing With Australia Australia continues to change and GM Holden is changing with it. Over the past three decades, Australia’s automotive market – like so many other facets of the country’s economy and society – has opened to the world. More than 60 brands compete here, in one of the most fragmented and competitive markets anywhere in the world. Our current product portfolio reflects Australian society – a mix of home-grown and imported models. From the hugely popular VF Commodore, the most advanced car ever built in Australia; to our range of SUVs imported from across GM’s global operations, the Trax, Captiva and Colorado. From next year, we will augment our Australianmade Cruze, as well as our Spark and Barina small cars, with the halo Astra GTC and Astra VXR from GM’s European operations. They will be accompanied by the convertible Cascada and the Insignia VXR sedan. In the future, more than one-third of Holden’s models will be imported from GM’s European manufacturing operations.

“The Asian century will be an American century too because America is a Pacific power as well as an Atlantic one.” –Tony Abbott, Prime Minister

In that period, GM Holden will transition to a National Sales Company. A perfect storm of negative influences has impacted the Australian automotive sector’s ability to manufacture domestically: a persistently high Australian dollar, high cost of production, the small domestic demand and one of the most competitive and fragmented markets in the world. Over the coming years, we are determined to do the right thing by our employees impacted by this decision, as we support them to transition to the next stage of their working lives. At the same time, we will also play to Australia’s strengths as we build the new GM Holden. Apart from retaining our sales capability, we will also keep doing a number of the things Australia can do competitively on the world stage. Melbourne will continue to be home to one of only seven GM Global Design Studios. Our designers are highly respected within GM and will influence the design of cars for many, many years to come. And we will retain the gold standard of vehicle testing facilities – our Lang Lang Proving Ground – with a small team of engineers to ensure our products perform well in Australia’s demanding conditions.

Putting the Customer First While it’s our products that gain the headlines, customer experience is even more important. It’s at the heart of every successful company. Australians rightly demand that companies do what they say and are there for the moments of truth. For an automotive company, this means delivering credible and high quality products – and being accessible and open when customers need help. Our extensive dealer network – more than 230 dealers nationally – is a distinct competitive advantage in delivering a convenient and world-class servicing and customer experience. Getting the Framework Right Having the right products and the best possible customer experience are things we can directly control. However, there are a number of key levers that are not completely in our control, yet are just as critical to our future success. Firstly, it is important that the industry has the full period through to the end of 2017 to deliver a smooth and orderly transition. Key to this is a stable supply base.

Secondly, we must not allow cut-price secondhand cars to be imported into our country from other markets around the world. This has happened in New Zealand and it has not worked. Similarly, we cannot allow our market to be flooded by imitation grey import nongenuine parts. These pose very real safety and performance concerns because they are often made from inferior materials. Finally, we should continue to lead the world on vehicle safety and we must continue as an industry to improve our performance on emissions. Australians would expect no less. The Future The future for Australia is one with some near term economic challenges and many medium and long term opportunities. GM Holden’s proven track record of implementing organisational change successfully – and our fierce determination to do it again, will ensure that we build a successful future for a home-grown Australian icon.

AmCham James Fazzino Access Managing Director and CEO, Incitec Pivot Limited

Lessons from Visionary USA I remember two years ago standing in the office of the Governor of Louisiana, Bobby Jindal, looking through the window as he proudly pointed to the line of new chemical plants representing the re-industrialisation of the US through the shale gas revolution. I had made an impromptu contact with his office on the way to New Orleans where IPL was considering an $850 million investment in a world-scale ammonia plant. Governor Jindal promptly cleared his diary so he could convince me of the merits of investing in his home State. His mantra for his Government in assisting business development is: “I don’t want more taxes. I want more taxpayers”. He has his wish. Six months later, we made the decision to develop the project, which is on track for first production in 2016. The investment case for Louisiana is exceptional and when considered against the option of building a similar plant in Australia, there was no comparison. The US is a great place to do business and there is much that Australia could learn from the US. IPL has been doing business in the US since 2008 when we acquired Dyno Nobel, the world’s second largest manufacturer and supplier of commercial explosives for mining, quarrying and construction – and the largest of its kind in the US. What made the decision on Louisiana so compelling? We took a first mover advantage and the fundamentals of our project are even better now than when we first made the decision.

A decisive factor was Government policy at a State and Federal level and the businessfriendly approach, particularly from the Louisiana Government through Louisiana Economic Development (LED). The approvals process was expedited – not diminished – so we were able to sign a lumpsum turn-key construction contract which was essential to the decision to proceed. Despite Louisiana having environmental and regulatory standards equal, if not higher, than Australia, we achieved approval in six months! In Louisiana, when we discussed with LED the need for deadlines on the approvals, the response was that the standards are sacrosanct! That’s a non-negotiable! However, they said they could expedite the assessment process. For example, they suggested that their people could work overtime to ensure that all the documentation achieves the necessary quality. IPL, you pay for the overtime! Of course, we agreed! With LED, it’s not a situation of once the decision is made, forget about the developer. We are being contacted regularly to be asked, can we help further? That’s a business friendly partner! US Federal Government policy was also important and an area where Australia has shot itself in the foot. To manufacture ammonia – and many commonly-used plastics and chemicals - gas is used as a raw material, in the same way as iron ore for the manufacture of steel. The competitive supply and price of gas was a critical decision point for the Louisiana project.

The US has a process for the national interest to be assessed whenever any company seeks to export energy. Canada has a similar approach. To export gas from the US, a company must apply to the Department of Energy where an assessment is made before the approval is provided: Is the export of this gas in the national interest? Three years ago, President Obama, in his State of the Union Address, said: “We have a supply of natural gas that can last America nearly 100 years, and my Administration will take every possible action to safely develop this energy. Experts believe this will support more than 600,000 jobs by the end of the decade.” In fact, the US is doing better than that: on the way to creating one million manufacturing jobs as, incredibly, manufacturing is coming back to the US from countries like China! That’s a scenario that never would have been contemplated even five years ago! In contrast, in Australia, we too have abundant gas but our lack of vision means it will be processed through giant refrigerators to send overseas for others to value-add while manufacturing plants are closing because of a gas supply/price crisis. We can have our cake and eat it too: a vibrant gas export industry and a small but fair share for local mums and dads and workers in factories.

Australia has no national interest assessment. Federal and State Governments have allowed global gas companies and their local partners to export gas to North Asia, including gas that was previously supplied to Australian industry and households. Compare the result: the US has a gas price of $3 to $4. In Australia, we have imported Asian energy inflation and the price of gas is as high as $12 for industrial users and also, has added $300 - $400 to some household energy bills. I have great faith in the future of the US. That’s why we took the decision to acquire Dyno Nobel and to develop in Louisiana. The US economy is now growing after taking time to grind out of the GFC. On one indicator, recent job openings reached a 13year high and there are predictions of plus 3 percent annual growth. Essential demographics favour the US economy in the long term. The US population is continuing to grow and even better, growing younger by comparison with Europe and Asia. In 2050, one in three citizens of most developed nations in both Europe and East Asia will be over 65 years of age. In America, the number is one in five.

“There are a handful of countries in the world that we always know we can count on, not just because they share our values, but we know we can count on them because they’ve got real capacity. Australia is one of those countries.” –President Barack Obama

And if we believe that productivity and prosperity are the end result of innovation and inventiveness, then the number of patents issued is surely an indicator of future success. Between 1997 and 2010, Americans received more than two million patents, with Germany a far distant second with less than 300,000. There are predictions by some of the Chinese ascendancy and that will eventually happen – sooner or later – depending upon the criteria. As Australia’s biggest fertiliser company and with Dyno Nobel, IPL is well placed to capitalise on the growth of both the Chinese and US economies because of our strategic exposure through the manufacture and distribution of inputs into agriculture and resources. But the US business friendly culture will always provide that competitive edge. It’s a great place to do business.

AmCham Peter J. Kalis Access Chairman and Global Managing Partner, K&L Gates LLP

The rule of law matters in US-Australian relations For the past decade, the United States has topped the “league tables” in foreign direct investment in Australia. The enormous investment flow has spanned multiple industry sectors and geographic locations. As a global law firm with substantial deployments in both countries, we at K&L Gates take great pride in the strength of the economic ties between the US and Australia. Beyond these economic bonds, we also reflect upon our nations’ shared belief in the Rule of Law. Both societies believe passionately in fair and open systems of justice and in values that honour individual rights and economic freedom. Our joint commitment to free enterprise as central to the efficient allocation of resources and economic growth could not exist absent the Rule of Law. Caprice -- the mortal enemy of the Rule of Law -- undermines both individual and economic freedom. Like other living things, the Rule of Law must be nourished through thick and thin. We live in a world in which many ascending economic powers have no like tradition, and forces often times emerge in the marketplace that can cause an erosion of the Rule of Law. An obvious example concerns varying degrees of respect for intellectual property rights, but in fact the range of challenges to the Rule of Law extends well beyond the headlines cases. Both Australia and the US owe their British forbears a debt of gratitude for a wonderful shared language -- though that might not be

evident in every conversation! And we are in their debt for the extraordinary legal tradition that they have conferred upon both societies. The common law is a moderating influence in a world otherwise characterised by impulse and force. With the passage of time, the common law has supplied the rules of the road for orderly society -- one in which duties to and rights of others are respected. The Rule of Law, however, has longer roots than the common law. The notion that the most powerful members of society must be constrained by law has ancient antecedents that precede even the Magna Carta. We need always to remember this history, as some of the societies that helped to fashion the concept have in more recent times abandoned it. The Rule of Law requires missionaries in this generation and every other. That’s where the legal profession comes in. The Rule of Law has no more faithful adherents than the Australian and American legal professions. With both word and deed, lawyers in our countries work assiduously to uphold a legal tradition against global forces that regard it as a needless extravagance or a roadblock to achieving desired outcomes through main force. In every legal engagement, the stakes are large not just for the parties but also for society generally. The meeting of the Group of Twenty is a reaffirmation of what unites peoples around the world -- the challenges as well as the opportunities. Not all G20 member states embrace the Rule of Law as we understand it, but they all have lawyers who, no less than the

feudal barons on the Plains of Runnemede in 1215, must strive to constrain unbridled power by subjecting both the powerful and the weak to the same rules and processes of justice. As the American Chamber of Commerce in Australia marks the occasion of the G20 meeting, we can view the American investment in Australia as not only sound business but also as a resounding validation of the Rule of Law. Two societies that share this framework can do business with each other in confidence that the rules of the road will be adhered to by one and all. In a dangerous world, we should celebrate this kinship. *Peter J Kalis is Chairman and Global Managing Partner, K&L Gates LLP. Mr. Kalis, was recognised in the August 2013 issue of The American Lawyer magazine as among 50 innovators who have dramatically shaped the global legal industry over the past five decades. Mr Kalis was one of a dozen law firm leaders cited by the magazine as “master strategists” and the publication specifically noted Mr Kalis’ leadership in making K&L Gates the first financially transparent US law firm. K&L Gates represents leading global corporations, growth and middle-market companies, capital markets participants and entrepreneurs in every major industry group as well as public sector entities, educational institutions, philanthropic organisations and individuals. K&L Gates LLP comprises more than 2,000 lawyers who practice in fully integrated offices located on five continents including North America, South America, Asia, Australasia and Europe.

Global platform

Global legal counsel across five continents

10 offices and more than 300 lawyers in Europe and the Middle East

11 offices and approximately 400 lawyers in Asia Pacific

Top 10 firm K&L Gates not only is one of the largest firms in the United States. Our offices in the Asia Pacific market, Australia, Germany, the Greater China market, Japan, the Middle East, Poland and the United Kingdom all rank in the top 10 of U.S.–based firms in those markets. No other law firm can say this.

Offices coast to coast with more than 1300 lawyers in the Americas

AmCham Robbert Rietbroek Access Managing Director and CEO, Kimberly-Clark Australia, New Zealand and the Pacific Islands AmCham Governor

Local Shores Leading the Way The symbiotic relationship between Fortune 500 Company Kimberly-Clark Corporation and its Australian arm, Kimberly-Clark Australia has fostered a strong history of innovation, talent development and Australian manufacturing lasting for nearly 90 years. A $1+ billion consumer products company, Kimberly-Clark Australia, New Zealand, and the Pacific Islands, is a proud manufacturer and marketer of the Kleenex®, Kleenex® Cottonelle®, Viva®, Huggies®, U By Kotex®, Snugglers®, Poise® and Depend® brands. The company employs around 1500 employees across Australia and New Zealand and manufactures locally in South Australia and New South Wales. Globally, Kimberly-Clark operates in over 175 countries and employs over 58,000 employees worldwide. Robbert Rietbroek, Managing Director and CEO for Kimberly-Clark Australia, New Zealand and the Pacific Islands relocated from KimberlyClark’s global headquarters in Irving, Texas, 16 months ago. Rietbroek was quick to see why Kimberly-Clark Australia has long been looked to by Kimberly-Clark Corporation as a leader and innovator. In 2013, K-C Australia accepted an award at Australia’s most prestigious sustainability awards, winning the Banksia Award for Leading in Sustainability for being an industry leader with the Kimberly-Clark Australia and New Zealand sustainability strategy called Our Essential World. More recently, in 2014, the company was awarded two Australian Business Awards in both the Innovation and Technology categories for its innovative cogeneration facility that is significantly reducing energy costs and greenhouse gas emissions at its Millicent Mill in South Australia, home of the Kleenex® range of tissue and paper towel products.

The $33 million cogeneration facility has taken the tissue mill off the energy grid by capturing wasted heat in the exhaust of a gas turbine and using it as a replacement for natural gas in paper drying and steam production. The benefits to Kimberly-Clark are twofold – lower energy costs and a significant reduction in greenhouse gas emissions to the tune of 80,000 tonnes per annum. Within a year of the cogeneration facility running, Millicent Mill has been able to increase production while significantly reducing greenhouse gas emissions and carbon footprint. It’s also expected to help Kimberly-Clark Australia and New Zealand achieve its 2015 target to reduce greenhouse gas emissions by 30 percent from 2011 levels, ahead of schedule. This facility has set a new energy efficiency benchmark for Kimberly-Clark globally. Leading the ANZ business and in his role on the board of the Australian Food and Grocery Council, Rietbroek is well abreast of the challenges facing US multinationals. “US companies operating in Australia are currently facing a challenging period, due to a range of contributing factors including low growth, eroding margins due to increased trade spend, high distribution costs, currency devaluation, and the fact the Australia is one of the most expensive countries in the world to manufacture.” Yet, despite the challenges, the Australian business has continued to attract investment from Kimberly-Clark’s global headquarters because of its proven track record of game changing product and brand innovations that have been adopted by Kimberly-Clark globally, world class sustainable manufacturing operations and talent development.‘At Kimberly-Clark, we refuse to let the external landscape hold us back. Instead, we’re choosing to embrace the situation as an opportunity to be more innovative and entrepreneurial,’ said Rietbroek. “Last month I announced we will be investing a further $20

million at our Millicent Mill in South Australia, which will go towards capacity improvements and equipment upgrades, to enable us to sustain and increase local production of our high quality Kleenex® products.” Australia has a strong history of creating breakthrough innovations that have been rolled out across Kimberly-Clark global markets. One such Australian innovation was the launch of a proprietary, breakthrough absorbent liner on Australia’s favourite Huggies® Nappies, which was developed in a unique three way collaboration with Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) and a small, family run nonwoven company, Textor Industries. First launching on Huggies® Newborn Nappies in Australia in 2012, this innovation has more recently been rolled out onto the entire Huggies® Nappies range in Australia as well as Huggies® Nappies in the United States and in Eastern Europe. The success of this world first innovation has resulted in the expansion of Melbourne-based, Textor Industries, which is now a global supplier to Kimberly-Clark. “The Huggies® innovation is not only a success story in terms of Australian innovation, but a success story for Australian manufacturing. Not only is Kimberly-Clark investing in our Australian operations, we are supporting the smaller, innovative manufacturers to grow and thrive,” said Rietbroek. Australia has always been looked upon by Kimberly-Clark as a centre for talent and talent development, with some of KimberlyClark’s top global executives originating from Australia. Likewise, high potential employees are assigned strategic roles in the Australian business to gain valuable leadership experience. With 58,000 employees worldwide, diversity and inclusion is a core focus for Kimberly-Clark. In 2014, the Corporation won the Catalyst award for the advancement of women in business. This year, Kimberly-Clark Australia

“Our country has invested nearly half a trillion dollars in America – and America has invested rather more than half a trillion dollars in Australia because we trust each other to treat each other’s hard earned cash with respect.” – Tony Abbott, Prime Minister

“At Kimberly-Clark, we refuse to let the external landscape hold us back. Instead, we’re choosing to embrace the situation as an opportunity to be more innovative and entrepreneurial”

has become a role model within the global K-C subsidiaries in terms of gender diversity as it is the first subsidiary to have more women than men on the Executive Leadership Team. “As a global company, our people come from increasingly diverse backgrounds and perspectives, which we know helps us cultivate fresh thinking and refine our understanding of the different consumers who use our products” said Rietbroek. “We value diversity and believe that building an inclusive culture makes Kimberly-Clark a better place for our people to work and is also better for business.” Australia also has a strong track record of flexible work arrangements, enabling it to attract and retain top talent in the Australian market - talent which has been exported to Kimberly-Clark Corporation.

Every day, nearly a quarter of the world’s population trust K-C’s brands and the solutions they provide to enhance their health, hygiene and well-being. With well-known and trusted brands, Kimberly-Clark holds the No. 1 or No. 2 share position in more than 80 countries. Kimberly-Clark’s Australian history began in 1926, when it began selling Kotex® napkins imported from the USA. In the 1930’s Kimberly-Clark began local manufacture of feminine care products and imported Kleenex facial tissues. The business relationship between Kimberly-Clark Corporation and Australian Paper Manufacturers (Amcor Limited) began in 1958 and progressed to a partnership in Kimberly-Clark Australia in 1963. Today, Kimberly-Clark Australia and New Zealand is one of Australia’s largest paper 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 and sustainability achievements at Millicent Mill in South Australia. Pictured: The Honourable Tom Koutsantonis MP, South Australian Treasurer and Minister for Finance, Tony Palmer, President of Global Brands and Innovation K-C Corporation, Robbert Rietbroek, Managing Director & CEO, K-C Australia, New Zealand & The Pacific Islands, Scott Whicker, Millicent Mill Manager, Jacquie Fegent-McGeachie Head of Corporate Affairs & Sustainability, K-C, Tony Circelli, Chief Executive, South Australian Environment Protection Agency.


AmCham Dominic Walsh Access Managing Director, Landor Australia

Because change is the only constant in today’s marketplace, we at Landor are finding that brands need to become more agile to thrive. They need to be developed and managed differently than even a few years ago. Our efforts today are focused on creating agile brands that manage constancy and change in equal proportions. Founded in the United States in 1941 with headquarters famously located on a ferryboat in the San Francisco Bay, Landor has grown to include 27 offices around the world. Our partnership with AmCham grew out of a shared connection with the U.S. and a desire to help our clients build stronger local businesses. Our global network has been instrumental in providing the necessary insights to build an agile brand for AmCham, one that highlights the ability to provide access to opportunities.

Lois Jacobs CEO, Landor Thomas Ordahl Chief Strategy Officer, Landor

The agile brand To survive and prosper in today’s hypercompetitive, fast-moving world, brands need to be agile to be able to adapt and react quickly, not be set in stone. To borrow a famous opening line, for today’s brand specialists, this is the best of times and the worst of times. Brand has gone from a rarified marketing concept to an essential component of business strategy.

What was long held as sacrosanct to brand is now increasingly anachronistic. Simply put, we need to reinvent our approach to what we do. 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.

The Klamath, San Francisco

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 Walsh

The speed of modern day disruptions means we must create and manage brands in an entirely new context. Today we are no longer building cathedrals. This market place demands a new approach. Today’s brands must be agile.

A new approach From consistency to relevance For many of us in branding, consistency is viewed as the guiding principle. Nirvana is reached when the brand is the same everywhere. This needs to be rethought. No, it’s not that consistency is wrong; it’s just that it has been given far too much importance. Viewed properly, brand consistency is hygienic, but not the main goal. Consistency is great - as long as we don’t pursue it into an oblivion of irrelevance. From launch to transform In the past, new brands or revitalised brands were “launched.” It was as though once they had made their way through the brand factory, the assembly line delivered them to the world finished and ready for consumption. “Launch” reveals an outdated mindset. A brand is never launched and a brand is never finished. To launch a brand is to imply completion. An agile brand requires a different footing for brand managers. Rather than being brand cops, brand managers lead change.

through a series of actions that deliver a brand promise. That is the focus of the agile brand experience: delivering a brand promise across platforms, geographies, and audiences. From passive to active If we accept the brand-as-cathedral metaphor, we accept a defensive mindset—brand as something that must be preserved. An agile brand is one that must continually improve, and this suggests a different footing for brand managers. Rather than being brand cops, brand managers lead change. They look for new opportu¬nities to evolve the brand and create value. They help push the organisation or the offer rather than let it be pulled. From guidelines to principles Increasingly, we see success when a brand is governed by principles. Yes, brands need guidance, but given the nature of today’s fast-moving marketplace, guidelines quickly become obsolete. A clear set of principles is a powerful platform for action. They offer support in unexpected situations and inspiration for new opportunities. From no to yes At its simplest, an agile brand is one that said yes more than it said no. If we accept that brands must change and evolve to be successful, then we must adopt a mindset of openness: Look to the future, listen to the marketplace, and meet change not as something to manage, but as something to embrace.

AmCham Agile brands are global and networked. Landor partnered with AmCham to develop a brand positioning and identity highlighting its unique ability to make connections across the world: providing access to opportunities and positive outcomes for its members.

Australian Institute of Sport Agile brands lead. Landor worked with the Australian Institute of Sport (AIS) to develop a brand positioning and identity representing its new winning edge vision to take Australian sport from world class to world’s best.

IFM Investors Agile brands are principled. IFM Investors are a global fund manager with $53 billion in assets, which it invests on behalf of 30 super funds. Its interests are deeply aligned with those of its investors and their returns. Landor worked with IFM Investors to develop a positioning and identity that reflects this strongly held idea of shared prosperity.

From logos to experiences Abstractions are increasingly less relevant and, though this may be a shock coming from Landor, there is no greater an abstraction than a logo. There are many ways to define “brand experience,” but we view it simply: It happens whenever and wherever a brand delivers its unique value. Great brand experiences are built

Jacob’s Creek Agile brands are adaptive and multichannel. Landor worked with Pernod Ricard Winemakers to develop a new brand identity for the Jacob’s Creek brand that represented what makes it unique. Applied across physical and digital channels, the new brand identity was intended to be a consistent mark of premium quality that could adapt to cultural nuances. Ultimately, allowing an Australian wine to take on the world.

AmCham Nicholas Moore Access CEO, Macquarie Group

A partnership of opportunity Australian business has long been drawn to the US and not only because it represents the world’s largest economy and the deepest capital markets. It is more than a coincidence that the events of 1776 and 1788, seminal dates for each country, occurred so closely together. The American Revolution, probably more than any other single event, led to the establishment of British colonies in Australia. Perhaps ironically, the Enlightenment values that inspired the Declaration of Independence found their way to Australia through the new institutions established to support the budding society, as well as the appointed Governors and their instructions from London. Belief in a better life through hard work, rationality, with an openness to new ideas, and respect for individual rights and freedoms form

a bedrock of belief in both countries. Our similar cultures, along with formal alliances such as the Free Trade Agreement and the ANZUS security treaty, underpin the relationship between our two countries. The transformation of the US energy industry is one example of how these values work in practice. What was unthinkable just five years ago – US energy self-sufficiency – is now well within sight with new technology in shale gas production. Innovation, hard work, property rights and supportive capital have again delivered for the US. Macquarie entered the US energy market 11 years ago, building on its global commodities expertise developed over more than 30 years, and has become a participant across the energy landscape. Acquiring US energy marketing and trading company Cook Inlet Energy Supply in 2005 and Constellation Energy’s downstream gas trading operations in 2009, we are now the fourth largest

physical gas trader in North America and the highest ranked non-producer. We also provide capital to a range of oil and gas developers, fund energy inventory, storage and transport and provide risk management and advice to a wide range of industry participants. One such company is Freeport LNG, which is building one of the first LNG export terminals in the US in 40 years. Such has been the speed of change in the industry that when construction of the terminal started in 2005, it was designed to receive an anticipated increase in LNG imports. Now, with the shale gas revolution ensuring natural gas supplies for 100 years or more, Freeport LNG is adding a liquefaction capability to equip the terminal for exports from next year. This is not an isolated example. One of the striking aspects of the US economy is the extent to which its embrace of enterprise and entrepreneurialism is driving new technologies 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:


$471.7 b 20

$255.7 b 10

$81.1 b 0




$56.5 b

$53.7 b

$50.2 b




A Macquarie-led consortium won the contract to design, build, finance and maintain a replacement of the Goethals Bridge in New York.

Macquarie is one of many Australian companies that have built a successful base in the US, where we have had a presence for 20 years. Last financial year, for the first time in our 45-year history, a region outside our home market of Australia was our highest income generator. The Americas accounted for 35 percent of Macquarie’s income for the year to 31 March 2014, compared with 32 percent produced by our successful Australian operations. We have witnessed first-hand the leadership role the US continues to play in the world’s economy and geopolitical landscape. Global confidence is heavily influenced by the health of the US economy, the size of which makes even a moderate growth rate significant in absolute terms. There are many encouraging aspects to the continued recovery of the US economy. Monthly new housing starts are well off their 2009 lows, with significant upside. US unemployment has been falling for five years, from a peak of 10 percent in October 2009 to its current level of 5.9 percent. Companies are in good financial shape and, above all, confident. This is driving increased corporate investment and, accordingly, activity in equity capital markets and mergers and acquisitions.

A potential Australian flipside of the US energy story is infrastructure. Macquarie recognised the opportunity that existed in infrastructure as an asset class more than 20 years ago. We pioneered an investment model enabling pension funds and other institutions to access infrastructure investment and the more predictable returns it can offer relative to other investments.

We are now the world’s largest infrastructure fund manager and adviser, operating more than 50 funds globally and with infrastructure assets under management exceeding US$100 billion. With government budgets constrained, Macquarie is uniquely placed to assist communities with the appropriate platforms to attract long-term capital to bring critical infrastructure to fruition. Such an opportunity exists in the US, where the estimated investment required over the next six years is US$3.6 trillion. The opportunity can be seen when federal government transport infrastructure spending is around 0.6 percent of GDP, compared with 1.1 percent in the United Kingdom, 1.5 percent in France and 2.4 percent in Australia. We have been active in the US infrastructure market since 2003 and listed the Macquarie Infrastructure Company on the New York Stock Exchange in 2004. The Macquarie Infrastructure Partners 3 fund, which has raised US$3 billion in investor commitments, is part of a consortium that will replace the Goethals Bridge, the first new Port Authority bridge in New York and New Jersey in 80 years. Macquarie’s infrastructure activities are part of a wider funds management business, which includes Delaware Investments, a business Macquarie acquired in 2010. Utilising Macquarie’s global funds management expertise, Delaware has been able to extend its market reach, growing its assets under management from US$141 billion in 2010 to more than US$200 billion at 31 March 2014. Incorporating Delaware Investments into our funds management platform has also positioned Macquarie as a top 50 global asset manager. It has expanded our presence in the world’s largest capital market and the US accounts for 55 percent of Macquarie’s US$427 billion in assets under management. The acquisition has delivered mutual benefit.

Another area of opportunity in the USAustralia relationship lies in Asia. Australia is fortunate to be located in the region that is the increasing focus of the rest of the world, and Macquarie has been leveraging those foundations to bring its specialist knowledge of the region to the US market. Our Asian corporate and economic research is distributed every day to US clients, with our securities business ranked as a top five broker for Asian equities with US investors. As well as securities, Macquarie Capital assists companies on both sides of the Pacific seeking acquisition opportunities. For example, we advised Tokio Marine on its US$2.7 billion acquisition of Delphi Finance Group and Gibson Guitar on its alliance with ONKYO Corporation. Macquarie Capital also assists US private equity sponsors in the local mergers and acquisitions and debt capital markets, as well as bringing global opportunities. Our US knowhow extends to leasing assets and Macquarie has a growing global asset finance portfolio that includes a new helicopter leasing business and 141 aircraft leased to companies such as American Airlines, Delta Airlines and FedEx. We have a portfolio of 8,800 freight rail cars, a mining equipment portfolio and we are one of North America’s largest independent lessors of technology equipment. Our US corporate lending business has doubled in size since its establishment in 2010. It is a leading market participant in bespoke primary lending and a niche acquirer of secondary loans. This weekend’s G20 discussions underline the importance of global connections and cooperation. The success of the US-Australia relationship is grounded in the shared values of our two nations, which have enabled us to build an association of mutual understanding and benefit.


AmCham Richard Lazar Access Managing Director & CEO, PPR Australia and New Zealand

Making a Connection Across the Pacific When PPR opened its doors in 1970 in a small office in North Sydney our founder, and now Chairman, Peter Lazar, never dreamt 44 years later his agency would not only be the largest PR agency in Australia but we would be celebrating the opening of its first office in the United States in New York. Almost immediately we added San Francisco, Washington DC and Austin and further afield in London and Paris. We are now more than 300 consultants working across Australia, US and Europe. But the ties that bind PPR in Australia with the United States have not come about overnight – they are the product of more than four decades supporting businesses, with US global headquarters, such as McDonald’s, Dell, Conoco Phillips and others, launch and grow by building strong and lasting connections between the organisation and their customers. From a communications perspective we have found an Australian customer base eager and willing to embrace brands and organisations from across the Pacific. Since McDonald’s appointed us to support their PR efforts 35 years ago Australians have shown a desire to try what the US brand has to offer and has supported its growth to over 900 restaurants today. But during that time the communications industry and the brands and organisations we support have seen a seismic shift in the way communications and marketing needs to happen. While the fundamental reasons of why an individual, whether that’s as a consumer, a business decision maker or a policy maker makes a decision has stayed the same, how they gather information and how quickly they can consume and share that information has radically changed the environment that organisations communicate within.

This change has largely been brought on by the digital transformation we have witnessed over the last couple of decades. Technological advancement, the internet age, social media, the growth of truly global news organisations, the explosion in citizen journalism and hunger for real-time content has all changed how we communicate. One of the most significant outcomes has been the breaking down of geographic communication borders. Today, the actions in one country can immediately have profound implications for a brand in another country. This has brought many benefits, for example the need for organisations to be completely transparent in their operations wherever they are in the world and the power the consumer now has to choose products that match their needs and their budgets from a selection of retailers from around the globe. It has also meant that the communications deployed by a company, with the support of their agencies, now needs to be completely integrated. A social media campaign in one market needs to consider the PR campaign being undertaken in another. The advertising promotion in one market needs to be conscious of an issue that may be faced by that company’s operations on the other side of the world. At the same time organisations need to be prepared to be nimble and flexible with their communications and be prepared to have a one to one conversation rather than a one to many conversation, often with someone not in their traditional geographic market. Broad brand marketing is becoming more difficult and is being replaced by a tailored, integrated, multi layered communication approach that resonates with each and every individual target it is trying to reach.

Today all of the above has brought brands and organisations operating in Australia and the United States closer together. At PPR our activity has increasingly been integrated with the activity in America. Conversely, with Australia seen as a key market by many Americans during a period of global uncertainty, the need to be integrated has flowed both ways. After many decades supporting American brands and organisations enter this market, it was therefore a natural step for us to offer clients the PPR experience in both markets. Many at the time of our announcement were surprised by our decision to overlook closer to home markets such as Asia Pacific for our first non ANZ office. But for us the choice was clear and simple. We knew that our approach to communications would be welcomed in the US. Our decision was cemented at the end of 2013 when we were awarded the World’s Most Innovative PR agency by the PR World Awards – a US based PR awards program that recognised the best in communications in and outside of America. We weren’t alone in our view. Our parent company, US based Young and Rubicam, part of the WPP global communications group, saw that our approach to communication would give the group a differentiated approach. Clients were looking for a stand-alone public relations agency with a single-minded focus on delivering innovative counsel and results to its clients, wherever they were in the world. And we could benefit our clients back home in Australia too with access through the PPR network into new global markets with the same philosophy they have experienced with us over the last 40 years.

Our presence in ANZ, United States, and more recently Europe has also allowed us to support international initiatives that we may not have been able to do in the past by being an agency solely ANZ based. Most recently we were a proud partner of G(irls)20, a global social profit organisation which works towards the economic empowerment of girls and women around the world that came to Australia ahead of the forthcoming G20 Summit in Brisbane. And our access into new markets has allowed us to communicate global messages from our offices in Sydney and through our network.

Just a couple of weeks ago we supported our Sydney based sister agency, GPY&R launch their creative campaign, devised in Sydney on behalf of the Climate Reality Project and former Vice President Al Gore called Why, Why Not. The compelling campaign mobilised thousands of children and teenagers from around the world to put pressure on a gathering of world leaders at the United Nations in New York to act on climate change. It was a true collaboration between our Sydney and New York offices that allowed us to reach millions through media coverage in ten countries around the world by utilising the agency’s new cloud based video capture, editing and distribution platform - PSS - for this campaign. Harnessing the power of cloud based communication and the breakdown of communication borders PPR now has an inhouse platform to communicate through video delivered directly into the inboxes of media, staff, investors and communities anywhere in the world.

If our decades supporting US brands make it in Australia and our new venture into the US market itself wasn’t enough, our commitment to Australian American relations was cemented earlier this year when PPR was asked by the team at the American Chamber of Commerce to partner with them, along with fellow WPP (and US founded) branding agency Landor, as they launched the new brand you see in this magazine and to raise the profile of the organisation as it embarks on an exciting new chapter in the organisation’s history. Forty four years on and our relationship with the United States has never been stronger. As the communications landscape evolves and news, information, commerce, entertainment and culture continue to cross borders we expect the next forty years to bring continued cooperation, innovation and superb client service in both markets.


AmCham Luke Sayers Access CEO, PwC Australia Vice Chairman, PwC Asia

A strong US-Australia partnership will grow the region’s prosperity As world leaders including US President Barack Obama touch down on Australian soil for the G20 meeting this week, the enduring nature of the US-Australia relationship – and its role in supporting growth and prosperity across the region – will be in the spotlight. When most people think of the US-Australia relationship, they think of a relationship forged in the battles of past wars, where we fought side by side. However, there is a much longer, sometimes overlooked thread that runs through the US-Australia relationship from its earliest days.

From the Victorian gold rushes to the great nation-building infrastructure projects of last century – waves of American entrepreneurship, innovation and investment have continued to flow into the economic development of Australia. It’s been built on a shared sense of entrepreneurship and hard work – on having a go and making the most of what our respective countries have to offer, most notably our people. Today, it is one of the world’s most significant trade and investment relationships. The US is Australia’s third biggest trading partner and biggest investor in Australia with $658 billion of investment. The US is also the most important investment destination for Australia accounting for $472 billion.

Bob Moritz Chairman and Senior Partner PwC United States

Next year, our countries will celebrate the tenth anniversary of the US-Australia Free Trade Agreement coming into force. The agreement has seen our economies and people become more closely integrated across our most important industry sectors including resources, tourism, agribusiness, manufacturing, health, technology and infrastructure. Over more recent times, the relationship has served as an important catalyst for growth across the Asia-Pacific region. Asia’s rapid ascension has been well documented in this, The Asian Century. It is home to more than half the world’s people, and expected to account for the lion’s share of economic growth over the next couple of decades. With this growth comes new demand 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 pre-eminent forum for promoting free trade with leaders of Pacific Rim nations including China, the United States, Japan, Australia, Indonesia and Singapore participating. Certainly, the body has much to celebrate and be proud of. But with the passing of time comes a need to reflect on how we, and other nations, can best support trade within our region in the years ahead. As part of this reflection, PwC has released an indepth report on the needs of businesses across the APEC region, which coincided with the recent APEC leaders’ summit. Growth in the Asia Pacific region means new opportunities. It will create the industries and jobs of the future. It will deliver improved standards of living, lifting entire communities out of poverty and into jobs, education and opportunity. The very things that underpin the US-Australia relationship – entrepreneurship, innovation and hard work – also complement the people and nations of the Asia-Pacific region and their aspirations. The opportunities for Australia and the US in the Asia-Pacific region are significant. An ageing population means an expanded need for aged care services. Growing personal wealth means new sources of capital and demand for advisory services. The rapid movement of populations to urban centres has placed additional demands on local infrastructure. And the flourishing of new industries has created significant roles for associated businesses. Australia, for its part, has much to offer the region as it undergoes these changes. It can help supply the growing need for food, resource and infrastructure security. Australia’s agricultural and food products are rightly perceived to be amongst the best quality and safest, and its resources are developed using some of the most efficient techniques in the world.

In financial services, Asian banks and insurance companies have sophisticated networks for distributing products to their customers. This can be complemented by Australia’s ability to produce sophisticated yet simply marketed financial products, accelerating wealth creation in the region. In retail, Australia’s best-in-class systems and approaches to the customer experience present new innovations for adoption in emerging markets. This is just scratching the surface of the many ways Australia and other nations in Asia-Pacific can build complementary and more closely integrated economies. Likewise, the US continues to be a global source of new innovation, and in partnership with Australia, can support further waves of growth in Asia-Pacific that began in Japan and are now moving through East Asia and across Southeast Asia. As we consider these new and emerging areas of growth in our region, we need to ensure we are well positioned within multi-lateral forums to maximise joint opportunities between countries. The Trans-Pacific Partnership has the potential to help us achieve this, taking arrangements to the next level. It will bring together economies accounting for almost 40 percent of the world’s GDP, and take in some 800 million people. It is rightly a priority for the US and Australian Governments – and other parties concerned.

PwC is working through our offices in Australia and the US, and across Asia, to support organisations as they look to grow in different markets. We’re also working to improve the exchange of people and ideas, services and experience, across our business. We are now more integrated than ever before with our network of firms throughout Asia-Pacific - including China and Hong Kong and in Southeast Asia - working closely together to provide a more seamless service to our clients. Our clients are looking for global solutions with deep insights that can be transferred to local market settings. PwC created our Consulting Asia Practice to meet this need. Our team supports clients with their Asian growth, sourcing and risk management strategies as they expand their business activities into new and emerging markets in the region. As G20 leaders meet later this week, it’s an opportunity to reflect on the longevity and achievements of the US-Australia relationship – and the important role we have to play with our partners across the region as it continues to rapidly transform and bring greater prosperity to its people.

But it is not the role of governments alone – business also needs to drive the changes required for our region to prosper. At PwC, we have a global purpose to build trust in society and solve important problems. The opportunity to deliver on this purpose in the Asia-Pacific region is substantial and we are already working in the region on solutions to problems ranging from food safety to tax reform.


AmCham John Borghetti Access CEO,Virgin Australia AmCham Governor

Virgin Australia’s New Business Class

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.

Renowned Customer Service

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

Virgin Australia’s impact was noticeable. The average business class fare dropped by 20 percent, and the average lowest economy fare plummeted 40 percent. This meant travel was more affordable than ever before. In March 2014, Virgin Australia and its alliance partner Delta Air Lines joined forces with Tourism Australia to launch the Someday marketing campaign, aimed at ensuring Americans acted on their desires to visit Australia. The campaign ran on NBC, in the Wall Street Journal and LA Times, while an open “letter to America” wrapped the front page of USA Today. More importantly, the campaign worked. Virgin Australia carried more than 101,000 passengers in the six months to June 2014, up nearly four percent on the previous year, meaning Americans were fulfilling their dreams to see Australia “someday”.

Delta Air Lines Alliance The partnership between Delta and Virgin Australia has been going from strength-tostrength since its launch in 2011 and has helped boost Australian-US business relations by offering a united proposition to meet business and travel demands.

Australian visitors to the U.S.

U.S. visitors to Australia





The joint venture also gives Australians access to more than 189 destinations in North and Central America. In September 2014 three new destinations were added to the codeshare agreement: Nashville, Kansas City and Raleigh/Durham.

In just three years, the airline has successfully;

Building a strong international network – especially in the US – is important for many reasons. Virgin Australia has established strategic bilateral partnerships rather than following the convention of joining a global alliance.

Innovation in aviation

Virgin Australia believes product and service innovation is central to making a mark in the lucrative and vital US market to ensure Australian and US business and leisure travellers have more choice. For the business market, this means a much more comfortable experience to diminish the lag experienced on long-haul flights. Next year, Virgin Australia’s Boeing 777 Business Class will be refitted with new seats that convert into 80-inch fully flat beds, and represent a major enhancement to the travel experience. This section of the cabin also features an exclusive new bar. Both features were unveiled in Singapore in September.

This alliance enables Australians to connect seamlessly to key business hubs in the US, such as New York City, Detroit, Chicago and Atlanta, and of course provides business travellers from all over North America with a seamless journey to key capital cities across Australia.

In 2011, Virgin Australia set out to reshape the Australian aviation landscape through its Game Change Program strategy.

Aus visitors to the U.S http://travel.trade.gov/outreachpages/ download_data_table/2013_Australia_Market_Profile.pdf

US visitors to Australia http://www.abs.gov.au/ausstats/abs@. nsf/products/961B6B53B87C130ACA2574030010BD05

• •

enhanced the in-flight and on-the-ground customer experience; increased the percentage of domestic revenue from the Corporate and Government market from around 10 percent to more than 25 percent; developed a comprehensive global virtual network; integrated and aligned the airline operations and brands; maintained a cost advantage; built a loyalty business worth nearly $1 billion and doubled membership numbers to 4.5 million; and most importantly, invested significantly in its team by attracting, developing and retaining the best talent.

This strategy created an indifference among Australian travellers and helped to dislodge those loyal to the incumbent airline group whilst building a Virgin Australia loyalty base. In August, Virgin Australia announced the next phase of its strategy: Virgin Vision to 2017. Over the next three years, the airline will focus on six key areas: capitalising on 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 month’s G20 leader’s summit is a wonderful opportunity to showcase culture, diversity and history on a global scale and Virgin Australia is thrilled to welcome United States President Barack Obama along with all the world leaders travelling to our shores this month.


AmCham Frank Lowy AC Access Chairman, Westfield Corporation

“Some people say that America is a spent force. They’re wrong.” –Tony Abbott, Prime Minister

Australia and US Connection: The Westfield Story The United States has been part of my business life since the 1960s. But it has been part of my consciousness since I was a boy. As one of millions caught up in the chaos and brutality of the Second World War in Europe the idea of America as a powerful liberator and a force for freedom was ever present. That idea was given substance during my early visits to the country as a young businessman. My partner, John Saunders, and I had enjoyed quick success in Australia with our shopping centre business, Westfield. We started with a delicatessen in the burgeoning western suburbs of Sydney, catering to the migrants flooding into the area in the 1950s and 1960s. We built a small shopping centre nearby, then a larger one and yet more in other Australian states. But by the mid-1960s we looked to America, the home of the shopping mall for inspiration and, even in those early days, as a future market for Westfield. We were nothing if not ambitious. On our frequent trips to the United States we were always struck by the unbridled optimism and energy of the place. We were also struck by the generosity of the people we met. We would visit malls all over the country, looking at their design, the retail mix, and details like customer service. We would ask security guards questions about how they worked. Even potential competitors were happy to share ideas, to patiently explain and encourage us. In short, we were made to feel welcome. Even then, we felt at home, and it is not so surprising that we did. It has become commonplace to cite our nations’ shared values and shared wartime experiences. And it is true that the alliance that underpins our relationship has endured because it is based on mutual respect. But it’s also true that on an individual level our experience has been overwhelmingly positive. Westfield bought its first mall in the United

States in 1976, in Trumbull, Connecticut. It was owned by two brothers; unsophisticated, rough-hewn men from Sicily who had worked in salt mines in Ohio before becoming builders. They were tough negotiators, but I like to think they met their match in a couple of migrants from Australia with a similarly unsophisticated past. It was another reminder for me that the United States, like Australia, was a great meritocracy. After we bought the Connecticut centre, I spent the first six months living there, and found that going into the office every day was just like going to the office in Sydney. I quickly made friends, and immediately saw the enormous potential for further growth. On returning to Sydney, I continued to visit Connecticut regularly and phoned management there every day, and sometimes several times a day. That was the start of a daily connection to America that I have maintained for the past 38 years. The spirit of continual change and innovation that is so much part of the American business scene has been hugely important in keeping Westfield at the forefront of the shopping centre industry. As our business grew in the United States during the 1980s and 1990s, we strove to improve the appeal of our centres, and shared ideas between our teams in Australia and America. The whole became greater than the sum of the parts. Today, the centres we build and manage are vastly different from those of even a decade ago. The quality of every aspect of the building now assumes a far greater importance, leading Westfield to own fewer but higher quality assets, concentrated in some of the world’s great cities, including Los Angeles, San Francisco, and soon, New York.

The shopping centre we are currently building at the World Trade Center site will be the latest manifestation of this trend towards iconic shopping centres in global cities. It will build on the runaway success of our two flagship centres in London which are valued at more than $6 billion, and generate $3 billion in annual retail sales, welcoming 60 million visitors each year. Westfield World Trade Center will be just as successful; a showcase of innovative architecture, many of the world’s finest brands, gourmet cuisine and five-star customer service. Like our other iconic centres, it will host exhilarating events and entertainment that transform mere shopping destinations into the most authentic ‘social networks’ of the modern urban community. Our dedicated digital technology team based in San Francisco will ensure it connects digital and physical shopping into one seamless experience. This pursuit of excellence and the embrace of new technology have been at the heart of our company’s approach since it was founded in 1960. We like to say that we are not in the shopping centre business. We are in the business of finding better ways to connect the shopper with the retailer. This has always been a constantly evolving challenge and we believe the future for the kind of flagship centres we are now developing is bright. Westfield World Trade Center will be a defining project for our company, and I am immensely proud that the best of what we do will be on show in New York, in a nation that was so fundamentally important to our corporate story. In my case, it is hard to separate the corporate story from my personal story. I feel the same way about Australia and America. So I am very pleased to add my personal welcome to President Barack Obama as he visits our shores for the G20 Leaders Summit in Brisbane.


Cover photo credit: Everett Collection / Shutterstock

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