Case Studies Selected Examples

STRICTLY CONFIDENTIAL

Selected Examples of Our Restructuring,

Transformation and Review Capability

Services and Capabilities to Transform and Grow Businesses into a World Class Corporations

Contents

1. Woolworths ...... 1 2. Commonwealth Bank of Australia ...... 4 3. TransGrid ...... 10 4. First Energy Bank ...... 13 5. Al Ghurair Group - Transasia Gas ...... 15 6. Crane Group...... 17 7. Fairfax ...... 18 8. Qantas ...... 20 9. BHP ...... 22 10. Snowy Hydro ...... 22 11. API ...... 24 12. Pacific Power Corporation ...... 25 13. MIM ...... 27 14. NRMA ...... 28 15. State Grid Corporation of China ...... 30

2 Services and Capabilities to Transform and Grow ESDF

1. WOOLWORTHS – THE LARGEST RETAIL BUSINESS IN AUSTRALIA The restructure resulted in significant cost savings as well as a significant increase in service levels WITH REVENUES OF OVER $60 BILLION. WHEN CATALYST WAS delivered to the business units. APPOINTED, THE COMPANY HAD REVENUE OF $20 BILLION AND NOT VERY PROFITABLE. CATALYST COMMENCED THE “You have done excellent work…How well you fit in with COMPANY’S BUSINESS IMPROVEMENT PROGRAM THAT Woolworths’ management team and Woolies environment.” COVERED IT, INTERNAL AUDITING, STORE OPERATIONS, DUE DILIGENCE ON A MAJOR JV, SPECIAL INVESTIGATIONS FOR THE Naum Onikul, Chief GM Supermarkets, Woolworths CEO AND BOARD, DEVELOPING CAPABILITY OF WOOLWORTHS’ STAFF AND MANAGERS, PROJECT MANAGEMENT, MANAGEMENT REPORTING AND BUSINESS PROCESS REENGINEERING TO MENTION A FEW EXAMPLES. TODAY THE COMPANY OPERATES AS ONE OF AUSTRALIA’S MOST SUCCESSFUL COMPANIES. Key outcomes:  Merger of several business unit divisions into a Shared Services Division  Development of property strategy which aligned to business strategy  Development of operating structure  Undertaking a sourcing strategy to assess elements of the property division suitable for internal sourcing, co-sourcing and outsourcing Business Improvement Services – Corporate Property Division  Development of change management and communication Woolworths has one of the largest property portfolios in Australia, with over 1,300 properties strategy nationally. The Corporate Property Division is responsible for the identification, development and lease management of these properties. Business Catalyst’s role involved a review of the operating  Development of procurement strategy, including the structure of the Corporate Property Division and a determination of the future strategy, which would establishment of vendor selection and evaluation processes fulfil the service requirements of the various business units.

The quality of work by Business Catalyst team has always been outstanding…” John Phillips, Former Deputy Chairman, Woolworths

Over the years we provided a Business Catalyst ensured that GST was implemented into a very comprehensive range of Internal Audit complex retail environment on time and in budget. services, working as an integral part of Woolworths’ Internal Audit team. WOOLWORTHS’ “I would like to take this opportunity to acknowledge the Woolworths has significantly benefited INTERNAL AUDIT exceptional contribution made by Business Catalyst consultants who from its improved high value Internal The have been working on our GST project .” Audit function using it as a critical business driven function to drive company Approach David Fletcher, Group Corporate Finance Manager success. (Letter to Zia Qureshi, Chief Executive and Chairman)

Due Diligence Review Business Catalyst were engaged by the Woolworths Board to conduct a due diligence review of CBA Project Management / EDS capability in relation to EzyBanking project, that established an alliance between Woolworths and the Commonwealth Bank, in relation to Woolworths offering banking services to its customers. Business Catalyst were involved with the project management on the GST project for the Woolworths Group, both at program office level as well as at business units. The project was one of the largest The due diligence review assessed the technical ability of CBA / EDS to provide EFTPOS acquiring GST project in the country. The project included managing the Project Office with a budget of over services to Woolworths to replace the existing NAB EFTPOS service. The EFTPOS acquiring $40 million and over 100 staff reporting into the Project Office. infrastructure was to be the foundation for the whole Woolworths EzyBanking services. Our role included:  Our scope of review included all the technical delivery platforms and applications supporting EFTPOS transaction processing, network linkages back to Woolworths, EDS operations, Year  Setting the Strategic Direction and Project Methodology 2000, Disaster recovery and transaction processing performance. We commented on the  Alignment of Corporate, Business and IT objectives development project management issues which turned out to be the greatest challenge for CBA  Establishing Q&A and project reporting structures / EDS.  Leading the communication and change management strategy  The Catalyst team provided Woolworths with huge value in terms of their understanding of the  Progress review and reporting to Steering Committee and Audit banking transaction environment and their ability to monitor and control the CBA / EDS side Committee of the project.  Ensuring all areas of the project were fully integrated, both  Woolworths invited Business Catalyst back to complete a follow-up review of failure recovery Nationally and at State level scenarios.  Resource planning, budgeting and continuous improvement IT Risk Management Services plans Key members of the Business Catalyst team were seconded to Woolworths for management of IT Audit as well as providing assistance on a broad range of value adding assignments, including Project Risk Management, over the past eighteen months.

2 Services and Capabilities to Transform and Grow ESDF

“Getting tremendous value from new IT Audit in working closely Steve Bradley, Corporate IT Manager, Woolworths with IT Management…would like to see more of it.”

Assignment Overview Outcomes Achieved

Engaged by Woolworths in 1995 to commence their business improvement program through a The Woolworths improvement program gained momentum rapidly leading to significant business audit program with a three-year sunset clause. successful change in the company. Woolworths continued to partner with Business Catalyst for three years and Woolworths’ capability was considerably enhanced. Ownership of all

improvement projects remained with Woolworths people. Undertook a wide range of business reviews, process improvement, management support and The Board maintained confidence in the improvement program. project management assignments.

Establishment of shared services for Woolworth’s Property Division to achieve cost reduction A 30% cost reduction realised on time and within budget and improved service levels. goals.

The Board appointed Business Catalyst to undertake a due diligence review on the combined A comprehensive review highlighted a range of issues and capability gaps with specific capability of Commonwealth Bank and EDS to meet their commitments prior to signing the EZY recommendations for bridging the gaps. This resulted in a more successful partnership and Banking deal with CBA. the success of Ezy Banking.

Client Feedback

Roger Corbett, CEO Woolworths, letter to the Business Catalyst Project Leader 2. COMMONWEALTH BANK OF AUSTRALIA –AUSTRALIA’S LARGEST AND MOST SUCCESSFUL BANK. CATALYST WORKED ON MANY CRITICAL PROJECTS WITH GREAT SUCCESS. BANK ENGAGED CATALYST OVER MANY INTERNATIONAL LARGE COMPANIES TO SOLVE ITS

4 Services and Capabilities to Transform and Grow ESDF

PROBLEMS. WE MAINTAINED AN EXCELLENT RELATIONSHIP WITH THE CEO, MR DAVID MURRAY AND OUR CEO AND CHAIRMAN MR ZIA QURESHI ADVISED MR MURRAY ON MANY STRATEGIC AREAS WITH APPRECIATION FROM MR MURRAY. MR MURRAY HAS SINCE CHAIRED THE INTERNATIONAL FORUM OF SOVEREIGN FUNDS REPRESENTING TOTAL INVESTMENT OVER $3 TRILLION AND IS RESPONSIBLE FOR DEVELOPING SANTIAGO PRINCIPLES.

Project Management – Enhancing NetBank (Internet Banking) to Achieve Competitive Advantage Business Catalyst were engaged by EDS to provide a project review of this critical project, which was designed to deliver competitive advantage to the bank in terms of internet banking. As a result of this initial review, Business Catalyst were engaged to undertake the entire program management of the NetBank implementation. Business Catalyst team project managed and facilitated across EDS, CBA and external solution providers, bringing the project to a successful implementation ahead of CBA’s expectations. CBA believe the increased functionality achieved as an outcome from the NetBank Upgrade will significantly drive the growth in its Online banking from its existing base of 600,000 customers

“Please let the team know that we appreciate their dedication getting to this result – they did it tough but the result is outstanding.” Tony Henshaw, President, Asia Pacific, EDS Solutions, EDS Asia Pacific

“The BBOB2 (NetBank) project went live this weekend in what was described by senior CBA management as the most professional and smooth implementation they have ever seen.”

CBA Steering Committee

IT Strategy Development & Outsourcing Business Catalyst facilitated the development of the IT Strategy for CBA as an integral part of the business strategic planning process. Innovative concepts were introduced to establish a strategic business system framework.

 Business Catalyst led the IT Outsourcing Benchmarking Project working with CBA Group Technology and EDS. We advised on the benchmarking process, selection of benchmarkers and ensured that the benchmarker deliverables were directly applicable to the IT&T agreement.  Business Catalyst developed the Group IT Operational Risk Management Plan integrating this into the overall group operational risk management plan.

“Business Catalyst work in relation to our IT strategy development has been outstanding…your firm’s work has commenced a revolution in CBA in relation to the IT strategy development process. Tremendous intellectual input by Catalyst.” Peter Reynolds, IT Strategy Manager, CBA Group Technology

6 Services and Capabilities to Transform and Grow ESDF

Assignment Overview Outcomes Achieved

CBA has recognised the depth of our expertise in a number of areas illustrated by the following examples: The new upgrade of NetBank was implemented in February 2001 and was recognised by CBA and EDS sponsors as their most successful such implementation, following a major effort by Business Catalyst Recovery of failing IT projects such as NetBank and project directing of critical IT projects. senior project managers who facilitated the participation of EDS and CBA and managed the project to completion.

Process improvement work covering areas such as, Comm 2000 Inventory Management, restructuring of Significant improvements to the processes, improved customer satisfaction levels and reduced costs. ATM operations and a review of end-to-end project management practices from the Bank to EDS.

Cost reduction reviews in relation to major third party contract services. Identified areas of cost slippage and reduction that were very significant and recoverable. Project then focussed on process improvement to ensure effective control over costs.

CBA IT Strategy 2000: Business Catalyst was engaged to facilitate the Bank’s IT strategic planning Significant progress has been achieved in integrating IT strategic planning within the business strategic (working with the Bank and EDS) as an integral part of the business strategic planning. planning process. Innovative concepts were introduced to establish a strategic business system framework, which was then used as an executive planning tool, and for planning Colonial integration

following its acquisition.

Leadership of $50 million IT application development program. Business case and contract negotiations are based on sound project concepts, resource plans and implementation programs.

Client Feedback

“Business Catalyst team has exceeded our expectations on this project (Telecom cost savings).” Stephen Helberg, General Manager, Enterprise-wide Audit

“Please let the team know that we appreciate their dedication in getting to this result – they did it tough but the result is outstanding.” Tony Henshaw, President, Asia Pacific, EDS – now at Telstra as Director Enterprise Sales & Bid Management

Bob McKinnon, former General Manager, Group Technology, Commonwealth Bank and Zia Qureshi, Chief Executive and Chairman, Business Catalyst at the Australian Outsourcing Summit

“Business Catalyst has made a big difference to project management capability of EDS and has helped turn around the Bank’s key projects. We take great comfort in the fact that Business Catalyst is assisting EDS in project/program management…. “ Bob McKinnon, General Manager, Group Technology, Commonwealth Bank, meeting with Zia Qureshi, Chief Executive, Business Catalyst International 8

3. TRANSGRID – TRANSGRID IS ONE OF AUSTRALIA’S MAJOR AND  Conducting workshops with business and Finance managers to identify critical business issues MOST LEADING ELECTRICITY GRID MANAGEMENT GOVT. to be addressed OWNED COMPANY THAT HAS BEEN RANKED NO.1 IN THE  Developing test, transition and implementation strategies WORLD. WE WERE APPOINTED BY THE TRANSGRID BOARD TO LEAD A BUSINESS IMPROVEMENT PROGRAM OVER SEVERAL  Implementing the new infrastructure with minimal disruption to business operations. YEARS COVERING A WIDE RANGE OF OPERATIONAL AND STRATEGIC AREAS.

WE ALSO WORKED JOINTLY WITH TRANSGRID TO HELP CHINA IMPROVE ITS ELECTRICITY INDUSTRY.

TransGrid ERP Systems Upgrade - Technical Infrastructure Component TransGrid as part of its program of improving its ERP and corporate business systems initiated a project for the replacement of the technical infrastructure for the entire suite of corporate systems including Engineering, Document, GIS, ERP and Finance systems and Fleet systems. Business Catalyst was appointed by the Manager Information Systems to lead and project manage the project. Our role for this critical project involved:

 Project managing two IT outsource service providers, and ten software vendors  Working closely with the TransGrid senior managers, Finance team, business unit managers and project team members  Developing project plans, resource and cost budgets etc

10 Services and Capabilities to Transform and Grow ESDF

TransGrid Finance and Reporting System Implementation Each of our assignments was fully successful with complete achievement of agreed outcomes – every TransGrid undertook a key finance function improvement initiative to enhance the existing time, on time. general ledger, and to improve accounting procedures, financial, management and project reporting. Business Catalyst was appointed by the General Manager Commercial to lead this In an International Industry benchmark, TransGrid achieved No.1 ranking as having the best Transforming TransGrid’s initiative. A key component of this project was to leverage the capabilities of the Oracle electricity infrastructure organisation. TransGrid Internal Audit Function Financials to provide management and financial information to operations managers in a acknowledged our contribution in their seamless and timely manner. The work performed included: achievement. - A Strategy for Success  Developing project plans, resource and cost budgets etc

 Conducting workshops with business and Finance managers to identify critical business issues to be addressed January 1999

 Defining business requirements for the new management reports

 Refining the existing chart of accounts

 Designing the new financial and management reports and project and billing reports “Business Catalyst’s work on the IT Assignment was  Assisting in the development of the reports, including using rapid prototyping techniques excellent. Our Chief Executive reported this at the last  Enhancing the management accounting framework and procedures to incorporate the new reports Board meeting.  Improving finance and business processes Phil Higginson, Chairman  Assisting in software package configuration and report development to meet business needs  Conducting testing  Developing user procedures and system documentation  Developing and conducting training  Developing transition and cutover strategy.

Assignment Overview Outcomes Achieved

A long-term partnering arrangement where Business Catalyst was employed to work with Each of these projects has been fully successful with complete achievement of agreed management in a broad range of areas with a view to driving business improvements, outcomes – every time, on time. cultural change and organisational capability development. We have undertaken a broad

range of assignments over a period of four years covering areas such as: Assisted in fast-tracking some of the improvement initiatives by up to 12-18  Re-engineering and co-sourcing of risk management and Internal Audit months.  Project management of complex IT and business projects

 Safety improvement

 Process improvement of finance functions such as accounts payable

 Wide range of business process improvement projects

Despite being a Government organisation, TransGrid has now moved to a single-supplier TransGrid achieved No.1 ranking in an International Industry benchmark, as the best arrangement with Business Catalyst on the basis that Business managers and staff regard electricity infrastructure organisation, a very significant achievement. TransGrid Business Catalyst’s work much more highly and have a far greater acceptance of the Business management has acknowledged our contribution in their achievement. Catalyst team than the large consulting firms.

Client Feedback

Extracts from TransGrid Chairman’s Letter 12 Services and Capabilities to Transform and Grow ESDF In a Boardroom luncheon hosted by Business Catalyst for the CEO, CFO, Chairman and Deputy Chairman of TransGrid, the Business Catalyst and TransGrid partnership benefits were summed up as follows: Business Catalyst has helped TransGrid fast track some key initiatives by up to 12-18 months. The have always met or exceeded expectations, “we can trust Business Catalyst people”. If there is a really difficult project or outcome to be achieved we call on the Business Catalyst team to assist us.

“Business Catalyst successfully managed TransGrid’s operating system migration to Unix. Their project methodology and the project management skills of Gareth Eade were key success factors for the delivery of this complex project. I am specifically calling to thank you for your Firm’s exceptional contribution to this critical project….” Tony Meehan, Manager Information Systems, TransGrid

4. FIRST ENERGY BANK – ENGAGED CATALYST TO ESTABLISH FULL INVESTMENT BANKING OPERATION FROM A VERY SMALL START. CATALYST DEVELOPED AND IMPLEMENTED A COMPLETE BUSINESS FRAMEWORK OVER 2 YEARS. THE BANK NOW OPERATES AS A MODERN INVESTMENT BANK WITH INVESTMENTS OF APRROX. $2 BILLION

Assignment Overview Outcomes Achieved

The First Energy Bank’s

Bahrain’s First Energy Bank is a pioneering investment bank. It was granted a wholesale Islamic Banking License in July 2008. Initially, with only limited Transformation - Catalyst worked organisation, people, processes or systems in place to support a banking operation, First Energy Bank engaged Catalyst to assist transition into a fully with the First Energy Bank from its operational Islamic investment bank. embryonic stage, playing an instrumental role in transforming First Following extensive advisory assistance by our team led by our Chairman, Zia Qureshi to the Bank’s senior executives in relation to establishment of the Energy Bank into a fully operational Transformation Program, a number of consultants were engaged to implement the transformation project. bank in less than a year Catalyst consultants including Darcy Geale, a highly experienced banking and investment specialist and Peter Tighe, a highly experienced international audit To-day, FEB housed in its new premises and risk specialist guided the establishment of the necessary processes, systems, organisation structure and governance mechanisms to make the Bank’s vision at Bahrain Financial Harbour, is well capable of being achieved and maintained. Peter and Darcy supported the Bank by: placed to become a major Islamic investment bank in the energy sector  Mentoring and guiding the convergence of ideas of people from other banks brought together to establish the foundation staff for the new bank and throughout the world. align views with modern banking practices; The bank became an organisation  Establish a Program Office and Steering Committee to manage the transformation capable of delivering on its Vision, which is “to create and capture value in the  Review and propose new operational management guidelines and structures; global energy sector”. First Energy  Design and implement internal governance systems and reporting processes; Bank’s focused targeting of the energy industry puts it in the unique position of  Assist in the business plan and implementation of actions to support the business; being able to offer investors superior, specialised opportunities.  Help design operational processes, assist with preparation of instruction manuals and operationalisation of the new processes and procedures for significant operational activities;

 Assist in system and business requirements for a core banking system, its selection and implementation;  Ensure the above were aligned with the requirements of the Central Bank of Bahrain.

Client Feedback Message from the Chief Operating Officer

“We had a challenge of a task of building a world class organisation in a short period of time. We searched globally for partners to support us in this challenge, and found only a few firms that had the depth of experience and expertise required to make a quantum difference to our efforts.

14 Services and Capabilities to Transform and Grow ESDF Catalyst was sought out based on its unique model of deploying highly experienced operational managers and executives, tremendous track record of delivering value to some of the largest corporations in the world and its ability to develop the capability of our people. Over the last six months, together with Catalyst, we have achieved tremendous gains. They have made the difference we were looking for.”

Chief Operation Officer First Energy Bank

5. AL GHURAIR GROUP - TRANSASIA GAS

Assignment Overview Outcomes Achieved Developing a Plan for Establishing and Transforming a Joint Venture Operation Catalyst Delivered World Class Solution for an Oil Refinery: Catalyst ensured that the JVCO was provided with expertise in business and TransAsia Gas International and Star Petro Energy, subsidiaries of Al Ghurair Investment signed a joint venture with IT transformation along with best practices from the international refinery the National Oil Corporation (NOC) Libya for the Ras Lanuf refinery in Libya. The total planned investment over the industry in order to make rapid headway on a number of fronts. term is in the region of US$2 billion to upgrade the existing facility to the world’s best practice for product and Catalyst’s experience demonstrated that in such an industry environment, it process. The upgrade project will be implemented in two stages and is envisaged to take five years to complete. is vital to optimise refinery operations which require strong strategic management and commercial management (both operational cost To complete this work successfully, the joint venture ownership (JVCO) required a wide variety of expertise, skills management and capital expenditure) to align the refinery operations with and competencies in both technical and business management areas including business process re-engineering, the changing market conditions. In addition, technical expertise and strong project management, change management and a range of other key areas. project management skills were necessary to optimise the performance of The initial objective of this program was to identify key tasks for improving the efficiency of operations and the refinery. Solidifying this, any business improvement program must ensure the key elements in these areas are appropriately addressed. profitability and then assist in developing and implementing those solutions. Catalyst prepared a comprehensive

business improvement program and a structured approach for JVCO’s transformation, to assist in developing stronger capabilities of JVCO people and a positive cultural change as this will contribute to achieving sustainable improvements in:  Operational performance  Safety  Profitability and maximising shareholder value  Refinery longevity (However, despite great acceptance of the Plan from both parties to the JV, the Plan has not been implemented by the client) Catalyst developed a 100 day plan to assist JVCO to take control of the day to day running of the refinery from Libya’s NOC on the “effective date” and to introduce the new management model in a controlled and logical approach. The final report also provided an overview of the business improvement process that JVCO would need to implement to efficiently and effectively transform the refinery operations to a world class level in the agreed timeframe. Client Feedback

A Message from the Chief Executive “This project was initiated by me in relation to the Ras Lanuf refinery and undertaken by a joint team including a leading international management firm, Catalyst, and TransAsia Gas team members Mr. Aamer Chishti Vice President and Mr. A. Aziz Khalid. The team received input from various relevant personnel of the Al Ghurair Group including myself, and will now start working on the establishment of JVCO. I am most pleased with the hard work and the very strong effort of the combined team. This hard work in a very short duration has provided us with a high level road map for following a course that brings together world class expertise as well as our own team’s insights and experience. In my view this work has created an excellent framework for the success of JVCO. I take this opportunity to thank everyone who has contributed to the timely completion of this assignment.” Zahid Muzaffar Chief Executive TransAsia Gas

16 Services and Capabilities to Transform and Grow ESDF Catalyst was engaged by JVCO (now called Libyan Emirates Refinery Company -LERCO), to ensure that the JVCO entity was able to commence operations on the joint venture closure date, inclusive of all changes required to the current process and procedures in Accounting, Information Systems, Legal, Contractual and HR requirements.

Catalyst was selected based on merit of its unique model of deploying highly experienced consultants and executives with tremendous track records of delivering value to some of the largest corporations in the world and its ability to work with clients in a “one team” concept with a shared vision, responsibility and accountability for outcomes.

6. CRANE GROUP

Key members of the Business Catalyst team with Andrew Dunn, Group Manager Business & Improvement Systems (second from left) Sourcing Strategy for IT Infrastructure under JDE ERP Implementation Business Catalyst is also advising Crane with a strategic analysis of the sourcing options available for Crane’s key IT infrastructure functions in parallel with its rollout of the JDE Oneworld ERP implementation. Business Catalyst is ensuring that Crane takes full advantage of the most cost effective and low risk solution for the management of functional areas such as Server

management, Network management, Help Desk and other support services. Project Risk management services for JDEOneworld ERP In addition to the strategic analysis Business Catalyst is assisting Crane with the identification of implementation. service providers, development of Request for Proposal and evaluation and selection of a provider Business Catalyst is undertaking the project risk activities for Crane's JDE Oneworld ERP for its outsourcing arrangements. The development of Service Level Agreements and associated implementation. This project will be implemented over a 3 year period and forms the relationship framework and ongoing project management to enable benefits delivery is an essential information backbone for the Group. The project covers 2 implementation streams - Distribution part of the implementation framework which Business Catalyst is providing to Crane. and Metals and Plastics with each stream having a different set of requirements and associated

risks in their implementation programs. “We have enjoyed an excellent relationship with Business Catalyst. The quality of work over As a diversified manufacturing and industrial and trade distribution company, with operations in the years has been excellent. The work of the team in the past was most impressive, and Australia and New Zealand, Crane is determined to ensure it maximises the full benefits of its delivered a lot of value to the company. We will continue to use Business Catalyst for our investment in the new systems and has engaged Business Catalyst to assist in identifying and major projects…” managing the risks associated with this critical IT project for the company. Our experience in managing risk at a strategic level enables us to assist the Program Director in the recognition Greg Laurie, Finance Director, Crane Group and management of risks associated with each project stream and ensure that relevant risk

mitigation strategies are implemented effectively across the operation.

 Ensuring the sustainability of operational performance

“Fairfax couldn’t be happier with the Business Catalyst efforts…a great outcome…your team is the strongest consulting team I have ever worked with in all my career… We are looking for a long-term relationship with Business Catalyst.” 7. FAIRFAX - BUSINESS CATALYST WAS APPOINTED BY THE CEO, Mr Richard Allely Group Financial Controller, Fairfax MR FRED HILMER, TO UNDERTAKE A REVIEW OF FAIRFAX’S BUSINESS SERVICES AND TO DEVELOP AND IMPLEMENT NEW STRUCTURES AND REENGINEERED BUSINESS PROCESSES.

Online Analytical Processing Project Project Management of a company wide OLAP (Online Analytical Processing) system, resulting in a single source for all financial and non-financial data, providing capability for budgeting, reporting, Fairfax Improving Business Support Services modelling and forecasting. The OLAP system is expected to improve efficiency of the reporting Business Catalyst was appointed by the CEO, Mr Fred Hilmer, to undertake a review of Fairfax’s and budgeting cycles as well as provide business value in terms of ability to create and generate business services. The objective of this project is to achieve cost rationalisation for business ad hoc reports and respond rapidly to market opportunities. services through better business processes and information technology, eliminating duplication and

realigning the organisation structure. Project Management Services to Fairfax

In late 1999, Fairfax engaged Business Catalyst with the key responsibility of ensuring the GST The key outcomes of the project include: readiness for Fairfax. One of the key outcomes from the strategy was the establishment by  Improving both the cost and quality of support service to the Business Catalyst of the GST project for the Fairfax Group. Our team set up the project structure, business determined the approach and business requirements and project managed the implementation of the solutions. The GST Program involved multiple complex projects for each publishing house, as  Enhancing customer service and relationship management to well as operational areas such as shared services and printing operations. enhance revenue

18 Services and Capabilities to Transform and Grow ESDF

Fairfax Budgeting and Planning System Implementation Business Catalyst was appointment by the Group Manager Finance, Mr Richard Allely, to determine the business requirements to enhance the planning, budgeting and financial and management reporting systems that were disparate and lacked consistency and integration. The outcomes were:  Defined requirements, designed and managed the implementation of a new planning, budgeting and financial and management reporting system  Providing an end solution that used a consistent methodology for planning, budgeting and forecasting, provided integrity of information and facilitated “what if” analysis  Reduced the time to deliver executive reporting and provided a common reporting tool for business unit managers.

8. QANTAS – ONE OF THE WORLD’S MOST SUCCESSFUL AIRLINES  The action plan necessary to make significant progress toward achievement of best practice APPOINTED CATALYST TO ASSIST WITH A BROAD RANGE OF within the Finance function; TRANSFORMATION PROJECTS, WORKING CLOSELY WITH THE  Strategies to enable realisation of the three-year business plan. FINANCE DIRECTOR MR PETER GREG AND MR ROB SHARP, HEAD OF STRATEGY. Establishment of a Finance Program Centre (FPC) WE ADVISED ON A BROAD RANGE OF AREAS REQUIRING Development of a FPC was one of the key recommendations of Business Catalyst’s initial review. IMPROVEMENT, DROVE CULTURAL CHANGE, DEVELOPED A Outcomes included: PERSONAL LEADERSHIP PROGRAM FOR TRANSFORMATION  A business focussed project management framework including guidelines, roadmaps and FOR THE FINANCE DIRECTOR AND RAN KNOWLEDGE templates linked to the Qantas project office methodology (PSDM); DEVELOPMENT SESSIONS FOR THE KEY EXECUTIVE.  The framework for development of a ‘project culture’ within Group Finance to allow effective prioritisation, co-ordination and full realisation of business benefits throughout a project’s QANTAS CONTINUES SUCCESSFULLY AND ONE OF THE BEST lifecycle. PERFORMING AIRLINES IN A TOUGH INDUSTRY. Prioritisation of Current / Planned Finance Projects Conducted a comprehensive review and analysis to identify Finance’s current and planned projects. Outcomes included:  Over 100 projects were identified, 7 already have Program Control in place, 4 are part of eQ and 17 are in scope for management within the FPC;  Finance having a comprehensive understanding of those projects that are critical to the success of Finance. Review of Group Finance Strategy & Development of an Action Plan in Readiness for eQ Enhancement of Finance’s Performance Management Conducted a comprehensive review of Qantas’ Group Finance function in collaboration with its key Established an appropriate framework to measure the on-going success of the Finance executives in order to assess its readiness for the finance systems upgrade and the Qantas e- Transformation program relative to its agreed business benefits, together with development of an enablement program known as eQ. Outcomes included: effective performance management framework for its key Finance executives. Outcomes included:  A blue-print to ensure the success and derive maximum advantage from the ensuing e- Financials implementation;

20 Services and Capabilities to Transform and Grow ESDF

 Defined the strategic KPI’s to measure the success of the Finance Transformation program, together with the tactical KPI’s to measure the success of each Finance area in helping to achieve the Qantas strategy;  Developed a performance measurement framework for the key executives within Finance aligned with the Qantas strategy and workforce capability program.

Australian Airlines Ltd Designed and implemented a system to support the sale of Duty Free Goods for Australian Airlines. Outcomes included Australian Airlines having a fully functional and tested Duty Free system including training and support materials.

Gareth Eade was one of our main consultants on Qantas assignment and has also worked extensively in Libya on LAP assignment

9. BHP – UNDERTAKEN A NUMBER OF STRATEGIC ASSIGNMENTS Key outcomes from the diagnostic review of relationship OVER THE YEARS INCLUDING ADVISING ON AND REVIEWING management across outsourced operations included: THE COMPANY’S OUTSOURCING OF MAJOR BUSINESS UNITS  Gaining a clear understanding of the nature of alliances TO IMPROVE EFFICIENCY AND REDUCE COSTS, IT services and relationships involved IMPROVEMENT WORK AND COLLABORATION WITH OUR  Assessing how well BHP’s relationship management needs are CLIENT, MIM TO IMPLEMENT AN END TO END BUSINESS met PROCESSES WE DEVELOPED FOR EVALUATION OF POTENTIAL MINING PROJECTS TO AVOID FUTURE LOSSES AND STOP BAD  Assessing strengths and weaknesses of the arrangement PROJECTS FROM GETTING THROUGH. THE PROJECT CAPITAL  Comparing with relationship management best practices EXPENDITURE LIFECYCLE PROCESS DEVELOPED BY CATALYST

DURING MIM ASSIGNMENT BECAME A PROCESS ADOPTED BY MANY COMPANIES AND MIM AGREED TO PROVIDE The review provided objective calibration of the outsourced operation relationship management, DOCUMENTATION TO BHP, WITH CATALYST ASKED TO MAKE giving BHP a view of the value, the relationship, and the risk profile of each alliance. PRESENTATION AND INTRODUCTION TO THE PROGRAM TO BHP CAPITAL EXPENDITURE REVIEW & APPROVAL COMMITTEE AND HEAD OF STRATEGY.

10. SNOWY HYDRO – WORKING DIRECTLY WITH THE CEO, MR PHIL WILLIAMS, PLAYED AN INTEGRAL ROLE IN CREATING

THIS NEW GOVERNMENT OWNED HYDRO BASED POWER GENERATOR WITH $ BILLIONS OF ASSETS THAT BECAME BHP Outsourcing Management Services HIGHLY PROFITABLE ORGANISATION IN ELECTRICITY TRADING IN THE AUSTRALIAN MARKET. WE WORKED TO DEVELOP THE Business Catalyst were engaged by BHP Alliance Development and Outsourcing Group to review BHP’s Alliance Partner relationship management of several areas including Information Technology FULL OPERATIONS INCLUDING STRATEGIC PLANNING, and Engineering services. SYSTEMS IMPLEMENTATION, BUSINESS PROCESSES AND

22 Services and Capabilities to Transform and Grow ESDF

TRADING SYSTEM, CHANGE PROGRAM OVER 2 YEARS AND  Undertaking extensive discussions with business managers to THEN CONTINUED OUR WORK AS AN ONGOING CLIENT FOR develop the business requirements for the Finance and OVER A DECADE. reporting system  Developing key business rules that will be applied to reengineer processes and move towards best practice to drive business value  Undertaking the software evaluation and selection process, including visiting software reference sites and verifying client's actual experience Snowy Hydro Financial Systems Implementation, as part of ERP  Developing a business case Project  Preparing status reports and reporting progress to steering Snowy are currently undertaking a major project to replace its existing disparate business committee. systems with an integrated ERP solution. Business Catalyst has been appointed by the CEO to lead this initiative. The key objectives of this project are to improve organisation wide business processes to adopt best practices, with new technology and integrated systems utilised as appropriate to support those business processes that add value, improve integration of information, improve decision support and decision making by business managers, reduce cycle times, and leverage e-business practices to achieve efficiencies.

The work we have undertaken to date includes:  Working closely with the Snowy senior managers and project team members  Preparing the Project Charter and establishing the project governance framework, which engages management and key users in the project and provides risk management and QA for the project  Developing project plans, resourcing etc

11. API – UNDERTOOK VARIETY OF PROJECTS FOR BUSINESS IMPROVEMENT, INCLUDING DEVELOPMENT OF A LEADERSHIP  Working closely with the senior management team, and PROGRAM FOR CEO RELATING TO THE COMPANY potential software and hardware vendors TRANSFORMATION AND GROWTH MANAGEMENT.  Conducting workshops with key business and Finance managers to identify critical business issues to be addressed by the ERP  Identifying, qualifying and quantifying potential business benefits to be realized from the implementation of the enhanced business processes and ERP system  Conducting a business benefits workshop with senior management.

 Project managing the ERP implementation API ERP Implementation - Business Case Australian Pharmaceutical Industries (API) is facing intense competition and pressures on costs and We advised against the proposed large implementation of SAP margins. In response to the pressures, API has embarked upon significant growth via acquisitions as it was an overly complex and not suitable industry solution. and is implementing an ERP system to provide better information to better manage costs and The company accepted our recommendation and successfully business activities. A key component of this initiative is to enhance the financial and commercial implemented another package that was not only signifcantly function and to implement relevant best practices, including leverage web-based technologies, cheaper but better fullfilled their need. redesign and improve business processes, reduce cycle times and provide more accurate and timely information to business unit managers.

Business Catalyst was appointed by the Executive Manager Business Development to support the development of a business case to support this initiative. The work we undertook included:

24 Services and Capabilities to Transform and Grow ESDF

12. PACIFIC POWER CORPORATION – A TOTAL TRANSFORMATION PROJECT TO CONVERT A GOVERNMENT ORGANISATION INTO A COMMERCIAL BUSINESS – 2 YEARS SUCCESSFUL PROGRAM RESULTING IN PRIVATISATION OF THE GOVERNMENT ORGANISATION THAT IS NOW AN INTEGRAL PART OF AN INTERNATIONAL ENGINEERING CORPORATION, AURCON / CONNELL WAGNEL. The work we undertook included:  Working closely with the CEO and senior management team  Conducting workshops with business and Finance managers to identify critical business issues to be addressed  Defining business requirements

 Preparing the conceptual design for the new business model Pacific Power Planning and Budgeting System Implementation and planning and budgeting system Pacific Power undertook a key strategic project to replace an aging Strategic Business  Assisting in the development of the business model and Model and a mainframe based budgeting system with a new technology solution. planning and budgeting system, including using rapid Business Catalyst was appointed by the CEO to lead this project. prototyping techniques  Enhancing the management accounting framework and The scope of the Strategic Model included a P&L, balance sheet, cash flow, sales & fuel procedures to incorporate the new budgeting and planning and financing, with “what if” capabilities and was fully integrated with the budgeting process and procedures system. The scope of the planning and budgeting system included, P&L, projects, payroll  Improving finance and business processes budgeting and labour costing, depreciation, capital expenditure. The new system was integrated to the Financial System to allow forecasting and budget preparation, together  Assisting in software package configuration and report with upload and download of budgets. The budgeting model was used as the basis to development to meet business needs replace all management reports.  Conducting testing

 Developing user procedures and system documentation

 Developing and conducting training  Developing transition and cutover strategy

We help Pacific Power improve their organisational capability to achieve sustainable business performance. Through our innovative approach of working with clients as one team, our clients not only realise benefits from specific assignments but they also reap ongoing benefits such as facilitating a culture of continuous business improvement, organisational learning, total risk management and improved commercial focus.

Mr Robert Lang, CEO of Pacific Power International recently stated that the Business Catalyst team’s contribution to their successful two year change program cannot be over stated….. “We could not have achieved such excellent results without Business Catalyst”.

26 Business Catalyst Senior Consulting Directors, Peter Cameron and Gareth Eade, with Phil Russell, former CFO, Pacific Power (left) Services and Capabilities to Transform and Grow ESDF

13. MIM HOLDINGS LIMITED – A WORLDWIDE TOTAL TURN AROUND & TRANSFORMATION BOARD APPOINTED 2.5 YEARS’ Our model has been recognised by many clients who faced serious challenges in achieving PROJECT. WORKING CLOSELY WITH THE CHAIRMAN AND THE business improvement/transformation. For example, when MIM Holdings was in deep trouble and BOARD, RECOVERED THE COMPANY FROM MASSIVE PROJECT its previous transformation efforts were failing, the Board became highly concerned about the LOSSES OF $700 MILLION TO STABLE AND PROFITABLE survival and sustainability of the company that had been an icon of the Australian industry. OPERATIONS. The MIM Chairman appointed Catalyst with a strong mandate to help transform the company and deal with immediate problems including massive project losses, the need for substantial cost THE COMPANY IS NOW A HIGHLY SUCCESSFUL MINING COMPANY reduction and process improvement, a poor safety record, control breakdown and the OPERATING UNDER THE NAME XTRATA. unacceptable culture.

The end result: An amazing set of achievements, driven through MIM people, well beyond what was thought to be possible. We harnessed the power of MIM’s good people on the ground, we leveraged the Board’s wisdom, we helped stop complex ERP/IT projects that did not pass the benefits realisation

test and we maintained organisation-wide accountability framework in relation to specific responsibilities associated with transformation and change. Further we implemented project management disciplines and monitored progress like a hawk, Catalyst have done an outstanding job under working around the clock. We engaged the union in the rapid transformation and cost reduction agenda and not even minor industrial relations issues arose at the end of the day. difficult circumstances, in helping the Board

and management with the company’s turn-

around. You have also helped build up the company’s capabilities and improve the culture… one of the best transformation efforts I have been associated with.

Mr Bruce Vaughan, Former Chairman, MIM

14. NRMA – NRMA IS AUSTRALIA’S LEADING MOTORING COMPANY WHICH HAS A STRONG INVESTMENT ARM WITH Business Improvement SIGNIFICANT INVESTMENTS IN TOURISM AND MOTOR VEHICLE Catalyst undertook a wide range of business improvement assignments that included business RELATED INDUSTRIES. CATALYST HAS DONE EXTENSIVE WORK process and re-engineering of core business areas, developing and implementing performance FOR THIS CLIENT WITH GREAT SATISFACTION FROM CLIENT. management frameworks, facilitation of business strategy and a comprehensive review of IT and implementation.

Performance Measurement Catalyst developed a new set of KPIs for the executive management corporate dashboard. This involved developing KPIs and the definition of each measure at the organisation and business unit level, including product performance using a balance scorecard approach and the implementation of the dashboard reports. A key objective of the assignment was to produce a snapshot of the company’s health by focussing on core indicators around the customers, people, process and innovation, financial and major projects. Catalyst assisted in acquisitions of major commercial businesses, and conducted a wide range of business improvement assignments including core business process reengineering, business strategy, implementing performance management, and conducting comprehensive review of the IT function Business Planning and major projects. Catalyst assisted with the implementation of a business planning process and corporate KPIs.

M&A Due Diligence & Integration

This client has been acquiring a range of businesses including hotel chains, car rental and other businesses. Catalyst was retained to prepare business cases for acquisition, assist in the IT Strategic Review acquisitions of major commercial businesses, manage 100-day transition plans, assist with Catalyst conducted a strategic and organisational review of the IT function with emphasis on integration of acquired businesses and conduct a wide range of business improvement assignments business alignment, customer service and delivery quality. A Business Systems Framework was which has resulted in a profitable commercial portfolio. developed as a model for assessing the relevance and suitability of current/future systems.

Product Line Transformation Catalyst developed a transformation blueprint to turnaround the financial and operational Business Case Development performance of a product line. Catalyst was retained to provide ongoing and comprehensive business case development and assurance services for: new ‘roadside assist’ products, safety products, traffic/travel information

28 Services and Capabilities to Transform and Grow ESDF services, new technology, new markets and market development. Business cases included extensive market research, buyer behaviour analysis, commercial analysis, business model options (including JVs, company acquisitions), financial modelling/projections, go-to-market strategies, risk management, strategy alignment and benefit assessment. The Commercial Division we have provided these services to is the fastest growing and largest contributor to corporate profitability and sustainability.

15. STATE GRID CORPORATION OF CHINA

Landmark Strategic Project Delivering Billions of Dollars of Value for the Chinese Electricity Industry In 2004 Mr Liu Zhenya, the President of StateGrid Corporation of China, a corporation ranked as the 8th largest in the 2010 Fortune Global 500 and the world’s largest utility, appointed Zia Qureshi, Executive Chairman of Business Catalyst to lead a joint team of Australian and Chinese management experts to develop a coal sourcing strategy for the entire of China’s electricity industry. The project was undertaken over six months with rigorous data analysis, fact finding and innovative thinking. The joint team spent time in both countries. The President of StateGrid was delighted with the outcome and the recommendations delivered were immediately implemented. Our work for StateGrid has given us great insight into doing Mr Liu Zhenya, President of State Grid Corporation of China and Mr Zia Qureshi exchanging views on challenges facing business in China and further consolidated our team members’ previous experience in China. China’s electricity industry.

30 Services and Capabilities to Transform and Grow ESDF

The assignment resulted in many billions of dollars of value being realised.

 Various industry sourcing strategies and an implementation framework to meet industry challenges and gain an international competitive edge To  Savings measured in tens of billions of China dollars

Benefits  Knowledge transfer to Chinese management

Delivered

 Substantial future investment in Australia

The StateGrid Coal Souring Strategy Joint Working Party  Enhanced China-Australia business relations and friendship To Australia  Acknowledgement of Australia’s World Class management expertise through the Working under the leadership of Mr Zia Qureshi, the joint team working on the StateGrid coal sourcing strategy included Dr John Saunders who has wide experience in the internationally and team particularly in China, covering high level corporate advice and strategic planning, new business  Further opportunities to assist China development and project structuring, and international negotiations. Dr Saunders has held the positions of Chief Executive Officer of the NSW Office of Economic Development; Co-ordinator General for the NSW Government; Deputy Managing Director of the Australian Trade Commission; and Chairman of an Asian Infrastructure Task Force for the Federal Department of Foreign Affairs and Trade.

It had been a fantastic experience working with Chinese management at both an operational and strategic level. While the knowledge transfer to the Chinese was significant, the Australian contingent is only too happy to admit that we learnt a few things from the Chinese as well and can see why China is so successfully achieving and managing tremendous growth.

Mr Qureshi with the Former Prime Minister of Australia The Hon. John Howard