Finance Transformation

For the 21st Century

July 2006
Sydney, Australia
 DRAFT

Finance Reform

 Finance Departments’ are successfully helping to steer their organisation through a

turbulent business environment
 Often there is little time for departments to focus on their own performance and
development
 Ernst & Young can assist Finance Department’s improve their effectiveness and
efficiency by sharing our
 Leadership
 Methodologies

<YYMMDD ClientName DocumentName v0>.ppt

 Experience

Page 2 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Finance Reform

Improving effectiveness and

efficiency
 Reduce total cost
Effectiveness & Efficiency Impact  Reduce transaction processing to
of Financial Reform reporting cost
100
 Invest in Business Partnering &
Enterprise Decision Support
75
Enterprise Decision
Support
Total Cost 50

<YYMMDD ClientName DocumentName v0>.ppt

of Finance Manage Risk & Financial
Capital; Improve Control
25
Transaction Processing,
Accounting & Reporting
0
Past Future

Page 3 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Finance Functions

Strategy and Strategy, mergers and acquisitions, business and financial

Planning structure, operations planning, budgeting, VBM

Reporting and Board, Statutory and management reporting, forecasting, PI,

Analysis business case and performance analysis, ABC/ABM

Stewardship and Tax, IFRS, ASX, external and internal audit, approvals
Compliance procedures, internal controls, risk management

<YYMMDD ClientName DocumentName v0>.ppt

Transaction General accounting, asset register, payroll, accounts payable
Processing and receivable

Page 4 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Path to Functional Excellence

People

Current State Processes Best Practice

Information Systems

<YYMMDD ClientName DocumentName v0>.ppt

Page 5 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Getting the Strategy Answer the Questions?

Governance Decision Making

STRATEGY
Transactional Value-Add

Centralised Decentralise
STRUCTURE
Shared Services COE

Simple Innovative
Standard PROCESS
Flexible

Vanilla ERP SYSTEMS Additional Tools

<YYMMDD ClientName DocumentName v0>.ppt

Generalists Specialists
Lower Capability PEOPLE
Higher Capability

Page 6 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Traditional Finance Function

In your organisation…
 Is the operations plan aligned with strategy?
 Is budgeting an onerous process?
 Do Board, Statutory and management reports and the ITR logically flow into each other?
 Does your business know; customer profitability; whole of life asset costs; process costs?
 Does Finance analyse all significant business decisions; approve all operating and
capital projects?
 Do reports contain leading and lagging, financial and non-financial metrics?
 Do your systems do most of the work for monthly reporting?
 Are transaction approval processes duplicated; are they effective?

<YYMMDD ClientName DocumentName v0>.ppt

 Does your department cost more than it should?

Page 7 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Path to Functional Excellence

People Leadership
 Understands & committed to
organisation’s strategic context
Processes
 Apolitical & diplomatic
 Initiates change & continuous
Information Systems improvement

<YYMMDD ClientName DocumentName v0>.ppt

 Committed to helping staff realise their
full potential

Page 8 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Path to Functional Excellence

People Culture & Attitude

 Purpose is to serve the organisation

Processes
 Understand and interested in the
business
 Maintain close relationships across the
Information Systems organisation

<YYMMDD ClientName DocumentName v0>.ppt

 Equal partner in developing solutions to
business issues

Page 9 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Path to Functional Excellence

People Capability
 Appropriate technical skills
Processes  Capacity and willingness to learn
 Comfortable working outside traditional
accounting boundaries
Information Systems

<YYMMDD ClientName DocumentName v0>.ppt

 Continuous learning / skills maintenance

Page 10 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Building Blocks of Functional Excellence

Processes
People
 Support the business; not a bureaucracy
 In control
Processes  Simplified, e.g. no duplication of effort
 Leverage interdependencies between
processes
Information Systems

<YYMMDD ClientName DocumentName v0>.ppt

 Finance has authority to enforce
 Selective use of Shared Services &
Outsourcing

Page 11 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Path to Functional Excellence

People Information System

 Data analysis tools usable by
non-finance staff
Processes
 Data warehouse for financial and
non-financial data

Information Systems  Maximum automation of routine processes

<YYMMDD ClientName DocumentName v0>.ppt

 Reliable interfaces

Page 12 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
Our Approach to Finance Reform
 DRAFT

Our Approach to Finance Reform

Finance Reform is the term we use for engagements aimed at improving the performance of
an organisation’s Finance Department.
Reform consists of many variations, including:
 Formulating the department’s strategy
 Reviewing IT architecture
 Formalising governance structure
 Full process re-design & organisation restructure
 Shared Services Centre or Outsourcing implementation

<YYMMDD ClientName DocumentName v0>.ppt

We offer our:
 Leadership
 Methodologies
 Experience

We are not associated with any business solution or software vendors.

Page 14 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Approach to Financial Reform

Our approach of combining strategy with shop-floor process improvement has proven to be
the most successful approach to delivering sustainable improvement. It harnesses the
wealth of knowledge that exists on the shop-floor and ensures the right changes are made.

Top down Cross-functional

direction process redesign
setting

People

<YYMMDD ClientName DocumentName v0>.ppt

Bottom-up problem solving

Page 15 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Approach to Financial Reform

Finance Strategy formulation

Executive mentoring People Benchmarking

Culture assessment Functional review

Organisational restructure Process re-design

Processes
Change management Governance framework

Staff capability reviews IT Advisory

Job design Information Systems

<YYMMDD ClientName DocumentName v0>.ppt

Technical training

Page 16 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Project Implementation

Our approach to each assignment is tailored to meet client needs.

Key features of our project implementation approach are:
 Reliance on client teams
 Small, highly skilled and experienced Ernst & Young team
 Provision of project management, progress reports, steering committee attendance &
project documentation
 Discrete phases
 Full and abridged implementation options

<YYMMDD ClientName DocumentName v0>.ppt

Page 17 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Leadership

We provide two-directional leadership; top-down & bottom-up

Top-Down
 Work with senior management to determine  Appreciation of organisational constraints
 Strategy  Management acceptance of change
 Culture  Prevent formalisation of bad practice
 Structure  Identify & address obstacles

<YYMMDD ClientName DocumentName v0>.ppt

Bottom-Up
 Harness shop-floor knowledge  “Raise the bar” and set the pace
 Guide client team through change process  Assist client-team champion the cause
 Introduce best practice concepts and address obstacles
 Train client team in process improvement  At times, an extra pair of hands
techniques  Inculcate sustainable change

Page 18 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Methodologies – Finance Strategy

Confirm commitment to reform initiative

Ensure Finance Department’s strategy is aligned

with the organisation’s

Executive
interviews & Determine where processes and functions belong
short workshops in the organisation

Secure cross-functional support for process and structural

<YYMMDD ClientName DocumentName v0>.ppt

improvements

Assign accountability for benefits realisation

Page 19 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Methodologies – Governance Framework

Purpose
 Mitigate risk of malfeasance
t ur e

Planning &
Fre
t fu

 Avoid unplanned contingent liabilities

e
Control
dom
p ac

 Ensure regulatory compliance

o im

of d
esig
ty t

Reporting  Financial stewardship to ensure resources

ili

n
Ab

are utilised in an acceptable manner

<YYMMDD ClientName DocumentName v0>.ppt

Approvals & Compliance
 Assist management maximise return on assets

Page 20 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Methodologies – Process Re-design

Review

Staff High-Level Cost Org. Chart Bench- Systems

Interviews Mapping Analysis Review marking Review

Re-design

Detailed Work Detailed Org. Change

Benefits Project
Process Distribution Process Structure Management

<YYMMDD ClientName DocumentName v0>.ppt

Analysis Briefs
Mapping Analysis Re-design Re-design Plan

New Process & Structure Implementation

Page 21 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Methodologies – People

Executive Mentoring Staff Capability Review

 One of our Partners or Senior Managers develop an enduring  Assess your needs and determine skills and personal
one-on-one relationship with a attributes specific roles require
client Executive
 Use structured interviews, observations and peer reviews
 We are there to listen, test ideas and offer impartial advice
 Form objective conclusions about an individual’s capabilities
 Useful for discussing general issues, contemplating a major and offer suggestions where they may best fit in the
initiative and personal development organisation

<YYMMDD ClientName DocumentName v0>.ppt

Page 22 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Methodologies - Organisation

Cultural Assessment Change Management

 Make an assessment using recognised assessment tools Three layers of change:

 Identify gap between existing and desired cultures  Strategic – communicate department’s vision across the
organisation
 Develop program to shift values, beliefs and behaviours in
desired direction  Operational – imbedding new processes, systems and
organisation structures, transitioning people

 Individual – align individual and team behaviours and

performance

<YYMMDD ClientName DocumentName v0>.ppt

Page 23 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Methodologies - Organisation

00s

Organisation Structure
 Review structure, including
90s
finance work performed in
other parts of the
organisation 80s
CFO

 Develop new structure,

based on
- Finance’s strategy &
cultural objectives

<YYMMDD ClientName DocumentName v0>.ppt

- Leading practice
- Process improvements Value add work

Transactional work

Specialist finance services

Page 24 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Methodologies – IT Advisory

1. Select systems for review

Financials Human Marketing Inventory Purchasing Quality Sales Product

Resources Mgmt Mgmt Mgmt Mgmt Mgmt Technology

Structured
Questionnaires

Structured
Interviews

Structured
Workshops

<YYMMDD ClientName DocumentName v0>.ppt

2. Assess against best practice

3. Deliver recommendations

Page 25 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Methodologies - Benchmarking

Ernst & Young has a specialised Benchmarking service line and leads the Western
Australian and South Australian Benchmarking Consortiums
Two stage benchmarking exercise in Finance Reforms:
1. Quantitative analysis using standard data template to compare client performance with
relevant peer group
2. Qualitative analysis using structured interviews to assess client practice with best practice

We use our global network to regularly update our quantitative and qualitative

<YYMMDD ClientName DocumentName v0>.ppt

templates

Page 26 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Experience

In recent years no or only margin savings have been realised from improvement
initiatives, common errors include:
 Failure to address what actually drives the work
 Failure to identify value destroying activities
 Formalised or centralised poorly performing processes
 Alienated the business
 Sole reliance on automation
 Ignored culture

<YYMMDD ClientName DocumentName v0>.ppt

 Relied on Shared Services or Outsourcing as an end result

Page 27 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Our Experience

Referees
 Denise Dawson
Chief Financial Officer
Sydney Water Corporation

 Chris Hern
General Manager – Finance & Budgeting
Telstra Corporation

<YYMMDD ClientName DocumentName v0>.ppt

 Megan Enders
General Manager
Rio Tinto Shared Business Services

Page 28 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
Appendix:
Leading Practice - Processes
 DRAFT
Budgeting and Forecasting –
Leading Practice Features

Set budget guidelines Review and Monitor and analyse

Prepare budgets Prepare forecasts
& targets consolidate budgets performance

Process Features
 Strategic plan drives  Detailed budget completed in less  Budget review is focused on the  Operational and process functions
operational budgets, targets, than 6 weeks strategic objectives and KPI's are responsible for forecasts
milestones and timings  Budgets focused on business needs  Budgets are consolidated at level  Rolling forecasts linked to the
 Provides broad economic and eg PBB, zero based appropriate to business needs eg planning and budgeting cycle
market trends  Budgeting is extension of the process, function, BU  Forecasting process facilities
 Includes business linked key business planning and long term  People skill set enables global action based planning
performance indicators forecasting processes budget changes to be administered
 Action orientated with  Target performance related to pay efficiently
achievable targets award  Final budget communicated to
budget holders quickly, before start
of year

System Features

<YYMMDD ClientName DocumentName v0>.ppt

 On-line budget guidelines  Integrated systems used to aid  Coherent budgeting systems  Software supports on-line  System provides
and indicators set budget process eliminate rekeying of data forecasting by operational comprehensive on line
centrally  Software provides ability to test  System allows automatic management variance reporting
different budget scenarios calculation of KPI's and holds non  Flexibility to allow rolling  Reporting includes on-line
 Flexible budget phasing facilities financial data updates of forecast data graphics and non financial
 Facility to hold alternative budget  Data can be downloaded to final  Forecasts linked to KPI's budgets data where appropriate
scenarios budget documents preparation or and planning
to EIS
 Systems provides sensitivity
analysis of data

Page 30 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT
Accounts Receivable –
Leading Practice Features

Establish credit levels Issue sales order Issue invoice Monitor credit/ collect cash

Process Features
 Formal credit checks applied to all new  Sales orders prepared using pricing  Consolidated periodic invoicing for high  Credit insurance arrangements evaluated
customers within 24 hours using credit database with pricing profiles for frequency shipments periodically
bureau products and customers  Bank remittance notices issued with sales  Customer account managers responsible for
 Monitor credit status/terms on regular basis  No order processed without valid invoices to facilitate reconciliation sales and cash collection
 Customer account managers provided with customer PO reference  Self billing invoices by high volume  Constant monitoring of debtor days, daily
up to date credit status  Delivery note acts as invoice for low- customers collection, ageing of debt
 Treasury policy set on late and prompt frequency shippings  Consider outsourcing regular  Customer contact records maintained
payments invoice/payment eg utilities  Outsource cash collection where
 Authority levels clearly defined  Regular review of invoice queries and appropriate
 Credit policies defined and agreed credit notes  Determine and report on credit targets
 Terms and conditions agreed with  Reconciliation of AR balances to GL  Monitor overdue debts and take action
customers control accounts on a regular basis within agreed policy
 Bundle packages and portfolio.
Consolidated invoices/statements easier for
collection
System Features
 Consolidated credit position for  SOP linked to debtors ledger to ensure  Common SOP and AR customer  Payments received electronically where

<YYMMDD ClientName DocumentName v0>.ppt

group of customers customer credit limits not exceeded database possible
 System provides on-line customer  Sales documents sent via EDI for all  Invoices automatically generated from  Automatic matching of payments to invoices
payment history and terms major customers SOP and shipment data  On-line diary facility to monitor calls
 Use of workflow software to monitor  Integrated order & billing systems  Self billing invoices automatically  Automatic flagging and reporting of high risk
process and help resolve queries available on line & hard copy matched to customer orders accounts
 Standard credit control reports  Multi currency invoices  Automatic dunning letters issued within
 Automatic commitment and accruals agreed trading terms
 Automatic reconciliation facilities  Auto routed hold/cessation of service
between integrated SOP AR and GL  Integrated systems to facilitate customer
systems query handling
 Forecast cash receipts available for treasury
purposes

Page 31 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT
Accounts Payable –
Leading Practice Features

Period end
Maintain supplier Process Process
processing
details vouchers payments
and reporting
Process Features
 Authorise and set up new suppliers  Accounts payable process vouchers:  Optimisation of early payment  All transactions completed
payment details invoices, expense claims, credit notes, discounts before period closed
 Maintain supplier payment details debit memos and prepayment requests  Payment runs properly authorised  Reconciliation of Accounts
 Segregation of duties between  Suppliers required to use PO number on Payable activity and
supplier set up, voucher all documents and three way match reconciliation with General
processing and payment wherever possible Ledger control account
processing  Consolidated periodic invoicing for high  Management reports run once
frequency suppliers period is finally closed

System Features

 Single supplier database  Purchase invoices transacted via EDI with  Electronic payments  Integration with General
 Single employee database major suppliers wherever possible  Default payment terms held on supplier Ledger minimises

<YYMMDD ClientName DocumentName v0>.ppt

 Audit trail of changes to  Electronic validation and approval of file with manual override at P.O. and reconciliation adjustments
supplier payment details invoices invoice  Transaction processing prevented
 Automatic matching of invoice to order and  Production of forward payment entry for closed periods
goods received note (GRN) schedules to aid cash flow management  Evaluated Receipt Settlement
 Interface with General Ledger, Purchasing,  Interface with General Ledger, Fixed
Fixed Assets and Project Accounting Assets, Project Accounting and Cash
 Use of workflow software to resolve queries Management
and monitor process  Facility to suspend payments

Page 32 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT
Fixed Assets –
Leading Practice Features

Maintain fixed Control acquisitions Manage periodic Verify and value

asset register and disposals asset depreciation asset base

Process Features
 Determine asset categories for  Set up appropriate control of asset  Depreciate at point of asset use  Revalue key assets on a regular basis
internal and statutory purposes acquisition and disposals across  Apply depreciation rules to asset classes based on book value and high risk
 Monitor asset maintenance charges company  Depreciation rates in management  Comprehensive asset verification on
 Apply insurance valuation to key  Report on acquisitions and disposals on accounts in line with statutory rates regular periodic or rolling basis
assets a monthly basis  Links asset depreciation to production where asset cannot be verified via
 Ensure asset responsibility at BU  Monitor tax issues related to and product costs/development technical assumptions (most telco’s
level acquisitions or CIP do not verify network assets: the fact
 Identify asset usage  Ensure BU responsibility for assets in that the network works is verification
their use and for disposal losses enough)
 Verify non capitalised assets

System Features

 On line asset register holding key data  Acquisition linked to purchase order  Depreciation charged automatically to  Variable asset valuation mechanisms
and current cost allocation and accounts payable ledger cost centres in GL eg historic, current replacement

<YYMMDD ClientName DocumentName v0>.ppt

 Cost code validation with GL  Disposals linked to sales ledger  Forecast asset depreciation for budget  Complete asset reports by physical
 Automatic links to AP and Project  CIP linked to capital project accounting purposes location and cost centre
Accounting system to capture  Effective tax management integrated  Variable depreciation rules for classes  Report on identified or missing assets
acquisitions with the fixed assets system of assets  Hold non capitalised physical assists
 Revaluation of features and mass  Assets can be grouped for depreciation for verification
transfers of assets to new cost centres rules  Bar coding of assets for verification
 Leased asset features compliant with
accounting standards

Page 33 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT
General Accounting –
Leading Practice Features

Establish and Produce periodic

Establish and apply Apply and Produce statutory
maintain standing financial reporting
accounting controls allocation rules accounts
data and information
Process Features
 Common chart of accounts  All users of financial systems  Management accounting  Rigorous period end and year end  Regular liaison with auditors to
 Minimal number of accounts to fully trained in standards and information is sourced from GL routines to ensure accuracy of data minimise ad hoc trail and reporting
meet information needs controls (no reconciliation to financial  Detailed procedures applied to requirements for statutory reports
 Regulated control of new account  Clearly defined procedures accounts required) reconciliations, accruals and  Corporation disallowable and
creation cover reconciliation of control  Level of detail is driven by prepayments allowable tax data controlled
 Periodic check of inactive accounts accounts business requirements  Period and financial reports produced through use of chart of accounts
 Standard journal and  Allocation rules are based on within 5 working days of period end  Period end timetable communicated
authorised input forms are agreed rates or service level  Flash results within 1 day to all relevant staff
used agreements  Cyclical reconciliation of balance
 Clear month end cut off  Consistent use of account codes sheet accounts
process across business allowing  Balance sheet accounts allocated to GL
 Electronic approval of journals comparison of costs staff
 Clear authority levels  Soft close for non quarter months

System Features

<YYMMDD ClientName DocumentName v0>.ppt

 Integrated system eliminates
 System allows control prior  System provides control over  Automatic period end reports  System allows prior year postings and
duplication of maintenance
period posting combination of accounts and produced automatic balances carried forward
 Local variation to common core
 Variable journal input types cost centres  Comprehensive report writer  System is sole source of consolidated
chart of accounts
such as standard, reversal,  Controls applied for use of facilities to provide user defined statutory reporting requirements and
 Comprehensive security and
recurring balance sheet and profit and reports holds non financial data
access controls
 System controlled month end loss accounts  One line reporting of information  Drill down facilities provides full
 Efficient copy and editing
procedures and processes  Real time allocation to cost and drill down audit trail on financial data
facilities
 On line training and help centres  On line graphical display or links to  Additional period used solely for year
 Extra segment (s) provided for
facilities  Automatic reconciliation of EIS system end accounts
future expansion of requirements
management and financial  Screenbased exception reporting  Multi-currency, multi-country
(fundamental change to business)
accounts consolidation

Page 34 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT
Management Reporting –
Leading Practice Features

Reports preparation Variance Analysis Finance Analysis

Process Features
 Standardised and documented close  Reports centred on key performance  Financial information which the
process indicators business has requested
 Soft close  Initial variance analysis and  Detailed analysis by business
commentary specialists

System Features

 Integrated systems that extend across  Standard reports  Web based reports
all business units  Flexible systems  Drill down functionality on reports
 Common chart of accounts

<YYMMDD ClientName DocumentName v0>.ppt

 Common financial language
 Consolidation system

Page 35 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
 DRAFT

Statutory Reporting –
Leading Practice Features

Prepare Accounts Review Accounts Sign Accounts Distribute Accounts

Process Features
 Standardised and documented  Reports centred on key  Financial information which the  Financial information which the
close process performance indicators business has requested business has requested
 Soft close  Initial variance analysis and  Detailed analysis by business  Detailed analysis by business
commentary specialists specialists

System Features
 Integrated systems that extend  Standard reports  Web based reports  Web based reports
across all business units  Flexible systems  Drill down functionality on  Drill down functionality on
 Common chart of accounts reports reports
 Common financial language
 Consolidation system

<YYMMDD ClientName DocumentName v0>.ppt

Page 36 Ernst & Young | <Name of report goes here> © Copyright 2006. All Rights Reserved.
Adelaide Canberra Melbourne Sydney
91 King William Street 51 Allara Street 8 Exhibition Street 680 George Street
Adelaide SA 5000 Canberra ACT 2600 Melbourne VIC 3000 Sydney NSW 2000
Tel: 08 8233 7111 Tel: 02 6267 3888 Tel: 03 9288 8000 Tel: 02 9248 5555
Fax: 08 8213 1775 Fax: 02 6246 1500 Fax: 03 8650 7777 Fax: 02 9248 5959

Brisbane Gold Coast Perth

1 Eagle Street Level 5, 12-14 Marine Parade 11 Mounts Bay Road
Brisbane QLD 4000 Southport QLD 4215 Perth WA 6000
Tel: 07 3011 3333 Tel: 07 5571 3000 Tel: 08 9429 2222
Fax: 07 3011 3100 Fax: 07 5571 3033 Fax: 08 9429 2436

E RNST & Y OUNG www.ey.com/au

© Ernst & Young 2006

The information in this document and in any oral presentations made by Ernst & Young is confidential to Ernst & Young and should not be disclosed,
used, or duplicated in whole or in part for any purpose other than the evaluation by [Client/Company Name] of Ernst & Young for the purposes of this
proposal. If an engagement is awarded to Ernst & Young, the right of [Client/Company Name] to duplicate, use, or disclose such information will be
such as may be agreed in the resulting engagement contract. If an engagement is not awarded to Ernst & Young, this document and any duplicate
copy thereof must be returned to Ernst & Young or destroyed.

Liability limited by a scheme approved under Professional Standards Legislation.