1. Global Markets and Supply Chain THE AUSTRALIAN OPPORTUNITY Mr. Adrian Floate CEO at Appstablishment Software Development

2. Adrian has worked in the supply chain system development since 1997 and has experience in manufacturing, wholesale distribution, retail and eCommerce. Adrian’s career highlights include designing and developing the Bunnings BITS system EDI over IP network, the development and commercialisation of Australia’s first SET payments gateway, the commercialisation of a Windows Mobile based email platform that pre-dated the Blackberry designing the CAPlink EDI network for the automotive industry in conjunction with the Capricorn Society, co-founding the CLANG online car service portal and in more recent times leading the Appstablishment software team to create award winning mobile App’s for business collaboration. Adrian Floate CEO ABOUT THE PRESENTER Who am I and why am I on stage? 2

3. RETAIL Presents individual items for sale to end users. MANUFACTURE The producer of goods. WHOLESALE Warehouses bulk goods for sale to specific region or location. END USER User or consumer of goods. 3 THE TRADITIONAL VALUE CHAIN And why it is changing

4. All these organisations have one thing a lot in common 4

5. They all disrupted the value chain… 5

6. What is driving change? The internet has changed how we communicate The Internet eCommerce Mobile ComputingTransport EvolutionEDI The birth of the Multi-sided business model. Paperless business where every player in the value chain collaborates in a digital environment. 6

7. 1M Transactions processed per day. Quality, authenticity, service Finished products not raw materials 100M Customers utilise the platform. 62% 77% THE BOOM OF Connecting Chinese Consumers to Authentic Goods via eCommerce $18.5B in revenue with average value of $60 3rd biggest internet company in the world. 7 69% 3days Paddock to plate. 6th Australia is a sourcing target. Facts and figures originate from Dr. Klas Hjort’s research team

8. How do get ready for the eRevolution? Business has to evolve to ride the eWave 1 THINK CLOUD Get your business ready to transact in the cloud. You can ramp up with less capital. 2 COLLABORATE Start seeing your customers and suppliers as a resource with whom you share a business opportunity. GET RESOURCEFUL To support the business models of tomorrow, you have to do more with less. 3 4 E-TRANSACTION When you collaborate with your trading partners, you can reduce cost, errors and your business risk. 8

9. RETURNS BOOM e-Commerce growth, legislative change, the necessary evil 9

10. 45% TRANSPORT ~$1.47/item returned Reverse logistics, manufacturer returns. 38% WAREHOUSE ~$1.24/item returned Handling the re-pick, pack and ship of the order. 10% CUSTOMER SERVICE ~$0.33/item returned Capturing and approving the claim in the call center. 2% ADMINISTRATION ~$0.03/item returned Processing the credit and recharge cycle through the business systems. RETURNS COST BREAKDOWN Material replacement is > 5% of the return costs so where is the money being spent? 10 Facts and figures originate from Dr. Klas Hjort’s research team

11. S W OT STRENGTHS Proximity to Port and Margaret River brand Abundant Natural resources Strong leadership that is looking to the future Virtually Pollution Free Excellent Road Transport OPPORTUNITIES Aquaculture Fresh Produce Export eCommerce into Asia New produce based manufacturing Green Technology Cold Logistics WEAKNESSES Expertise within labour force Technical capabilities of business operators Access to Capital Poor internet infrastructure and adoption THREATS Water scarcity Salinity Failure to collaborate across the wider South West Slow adoption of change SWOT ANALYSIS Bunbury tomorrow… Bunbury is at the heart of the South West, is a hub that is little known across the world but that can change very quickly with execution of vision for this community to drive Australian produce into Asia. 11

12. Build for tomorrows Customers…. 27 Oxford Close, Leederville WA 6027, Australia Adrian.Floate@appstablishment.com Appstablishment @Appstablishment www.appstablishment.com