1. 2012 International
Summit of Cooperatives
David Moroney
Acting CEO, Co-operative Bulk Handling Ltd

2. Co-operative Bulk Handling Ltd (CBH)
Australia’s largest co-operative by turnover
Grain storage, handling, trading, marketing and processing
Australia’s largest grain exporter – mainly to Asia
AUD1.0 to 1.5 billion annual seasonal funding requirement
Purpose is to create and return value to our growers

3. The Crisis
NAFC, not a GFC
Trough GDP growth in Asia 2008-09
– China 6.6%
– Indonesia 4.1%
– Vietnam 5.3%
Australia in Q2 2012 recorded 21 years of consecutive
quarterly GDP growth
Robust Australian banking sector

4. World’s Safest Banks 2009
Source: Global Finance Magazine, October 2009

5. The Crisis
The NAFC caused uncertainty and volatility
Listed corporates massively affected by liquidity squeeze
and deep-discount equity raisings
As a co-operative CBH was little affected
Signed a two-year seasonal facility agreement for a record
AUD 2 billion in September 2008

6. The Survey’s Forecast Future and CBH
 Inorganic growth to increase scale
Strategic direction is to “Feed Asia”

Operational efficiency through infrastructure investment
AUD 100 million annual network investment
 New financing markets – domestic and foreign
Private letter rating with Moody’s for USPP market

Regulation of banks
Work with banks to optimise their capital allocation

7. Innovation
Winner of the 2012 Bankers’
Choice Award for Australia for
AUD 100 million Pre-shipment
Facility

8. The Survey’s Forecast Future and CBH
 New instruments
Grower Bonds
Grower Connection Notes – linked to new investments
 Collaboration with others
Use joint ventures for inorganic growth
 Difficulty accessing capital
Six syndicate banks with AUD 2 bn+ appetite

External investors
Non-distributing cooperative; tax exempt; value in use
 IFRS
Transitioned in 2005

9. Thank you
Merci

10. Thank you
Merci