NEWSFLASH OCTOBER 2015 !!

IMPORT COMPLIANCE Avoid costly fines & penalties

EXPORT BAROMETER Highest level of confidence

FACTS & FIGURES Tourism Switzerland-Australia

SUCCESS STORY Reichle & De-Massari (R&M)

NETWORK UPDATES Job opportunity, Austrade & SGS

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CORPORATE PARTNERS 2015 !!!!

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Export Barometer DHL EXPORT BAROMETER REPORTS HIGHEST

LEVEL OF EXPORTER CONFIDENCE SINCE AFTERMATH OF GFC

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• Two-thirds (66 per cent) of Australian exporters expect orders to increase over the coming year

• More than half (53 per cent) of exporters saw increased orders in the past year

• North America (53 per cent) is creeping up on NZ (57 per cent) as top Australian export destination

• Australian exporters are supporting the push for FTAs, with ChAFTA seen as positive by 49 per cent and the TPP growing in popularity

• Weakening Australian dollar has allowed exporters to compete more effectively with overseas companies

• A growing number of Australian exporters (80 per cent) also import !The 2015 DHL Export Barometer has revealed Australian exporter confidence is at its highest since 2011, as lower exchange rates render Australian businesses more competitive internationally and the positive impacts of free trade agreements are realised. While China leads in expectations of where additional export orders will originate from, forecasts are diversifying with South and Central America also sharing the top spot in this category. Online commerce continues to grow and exporters are branching into a greater number of social media channels to stimulate sales. !Tony Boll, CEO, DHL Global Forwarding South Pacific, said: “According to 2015 DHL Export Barometer, Australian exporter confidence is at its highest level since the GFC. The weakening Aussie dollar and FTAs appear to have contributed to the steady rise in positive sentiment, and the research

findings point to exporters expecting business growth during the coming year.” !Export destinations diversifying !The 15th DHL Export Barometer found the number of businesses exporting to the Americas (North, Central and South) and Asia Pacific is increasing this year. !Tim Harcourt, J.W. Nevile Fellow in Economics, UNSW & The Airport Economist, explains: “While the Kiwis remain our biggest trading partner with more than half of Aussie businesses surveyed exporting to New Zealand, North America is hot on their heels. There has been a seven per cent leap in the past year to 53 per cent of Aussie businesses exporting to North America, most likely driven by exchange rate movements. !

Export Barometer CONT.

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”As Australian businesses future-gaze, China still tops the ladder in terms of projected increases in exporting. However, that rung is being shared with South and Central America where, despite still being a relatively small export market, 56 per cent of exporters predict orders to increase over the next 12 months. A strong trade performance from Pacific Alliance economies in South America likely led to the huge 17 per cent leap in expectation for that region from last year.” !Current sentiment towards ASEAN economies also jumped a significant 13 per cent to 53 per cent of exporters planning to export to that area in the next year, matching expectations to export to the UK. Despite the beleaguered Greek economy, Europe and the Middle East were only slightly behind at 50 and 51 per cent respectively. !Free trade agreements (FTAs) popular with exporters Generally, the attitude of Australian exporters towards FTAs is supportive, with the perceived and expected benefits continuing to grow. !The newly minted FTA with China (ChAFTA) draws positive expectations among 49 per cent of exporters – and the agreement with Japan has been more beneficial than exporters expected, with actual positive impacts cited at 41 per cent compared to the anticipated 35 per cent in 2014. Of the established FTAs, the US is leading the popularity contest with 59 per cent of

exporters reporting a positive impact on their business in comparison to 55 per cent the previous year and 46 per cent in 2013. New Zealand’s Closer Economic Relations agreement also provided a positive impact for the majority of exporters at 56 per cent, a nine per cent increase on the previous year. AANZFTA (Australia, ASEAN and New Zealand), Singapore and Thailand rounds out the top five with the majority noting a more neutral impact. !The feeling towards future FTAs is improving, with over half (51 per cent) predicting a positive impact should an agreement be signed with the EU, compared to 46 per cent last year. Interestingly, confidence in the much discussed Trans Pacific Partnership (TPP) is growing, with 46 per cent (up from 37 per cent last year and 26 per cent in 2013) expecting a positive benefit. !Export challenges continue Last year, the strong dollar was considered by exporters to have the greatest negative impact on sales, and this year the tables have turned with the weakening dollar allowing Australian businesses to compete more effectively internationally, despite the increasing costs of raw materials. !In this global era, four out of five exporters (80 per cent) say they both import and export – a jump from 74 per cent in 2013 and 2014. !As the exchange rate fluctuates, exporters are responding by implementing a wide range of strategies, with many focusing on improving

Export Barometer CONT.

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companies using social media to stimulate export sales from last year (37 to 38 per cent), the average number of social channels has increased. !Figures show 71 per cent of Aussie exporters are now using Facebook, 39 per cent using LinkedIn, 32 per cent active on Google+ and 30 per cent tweeting with customers on Twitter. Despite the popularity of the Instagram community among its 200 million plus users, it appears that exporters haven't yet committed to the image led platform for sales generation, although this channel has achieved the largest growth this year (from 18% to 29%). !Tony Boll added: “As online connectedness continues to grow and export orders increase in volume and origin, we hope to see Australian exporter sentiment continue on a positive path over the coming year.” !About the DHL Export Barometer Conducted by ACA Research, 597 Australian exporters were surveyed for the 2015 DHL Export Barometer between 21 May and 12 June, 2015.

service levels to add value. !China is still viewed as the biggest international competitor, howeverthe perceived threat has dropped in the past year amid growing concerns about the threat from the USA (up from 31 to 34 per cent), India (up from 15 to 19 per cent), New Zealand (up from 11 to 13 per cent) and Latin America (up from six to nine per cent). !Online commerce and social media For exporters, a company website continues to be the main source for generating customer orders, with three quarters of exporters generating sales online. Of those, 55 per cent report increases in their online trade over the past 12 months. !This is the second year the DHL Export Barometer has examined social media use among exporters as the social revolution becomes more prolific, particularly in the South East Asian markets. While only a slight increase was shown in the number of

Import Compliance IMPORT PRODUCT COMPLIANCE !

Don’t wait for the axe of product non-compliance to fall on your head; instead enjoy the warm feeling of knowing that your imported products meet with Australian regulatory requirements. !Increased international trade scrutiny by government authorities mean that regulatory product safety compliance is of ever-increasing importance for companies of all sizes. The Australian Government through it various departments including Australian Border Force and the ACCC (Australian Competition and Consumer Commission) are demanding demonstrable adherence to what is a potentially bewildering array of different but interlinked regulations covering Quality and Safety Standards. !Curlett, Cannon & Galbell (CCG) can assist you through the complicated process. CCG can advise on how to navigate those Australian Border Force (ABF) - Customs, and Australian product safety laws and regulations that specifically concern your products. !Our team will help you fill in your products compliance knowledge gaps to assist you to only import safe products for the Australian market. Our strength rests in our team’s long and varied industry knowledge. CCG will devote time to understand your international business operations and then provide practical solutions that will deliver the necessary competitive and product compliance edge. !Importers and manufacturers must comply with all product safety rules and regulations and have the correct systems and documentation in place. Stricter Australian enforcement, as well as increased Australian Border Force (ABF) scrutiny, now means substantial financial penalties for non-compliance. !Consumer complaints and breaches of regulations can lead to costly product recalls, penalties, fines and reputational damage whilst companies demonstrating compliance to appropriate standards can often achieve increased market share. !Curlett Cannon & Galbell (CCG) is a Tariff & Trade consultancy and Customs Duty Refund support business dedicated to assisting Australian industry and commerce. For further information please contact Phil Hocking on 0418 500 398, email phil@ccgpl.com.au or ring us on 03 9330 2122. !

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Success Story FROM MEMBERS !!

R&M’s Swiss Cabling Solutions are part of NBN’s ambitious FTTN roll-out !With the launch of its Fiber-to-the-Node (FTTN) offering earlier this year, NBN plans to eventually connect 4.5 million premises through its 'multi-technology mix' National Broadband Network, FTTN and fibre-to-the-basement (FTTB). FTTN can be rolled out faster and more cost effectively as there is no need to replace the entire connection from the exchange to the home or business. It relies on copper connectivity from the node until the end-user’s home. R&M’s comprehensive range of copper cabling solutions offers a wide variety of products that matched the project’s technical requirements. !The VS-compact range of copper disconnection modules which was used by Telstra for ADSL roll-out purposes in the early 2000s, is again considered by NBN with a set of new tools and accessories specifically suited for the FTTN roll-out. It offers high density, ease of install and is also very reliable to support NBN’s high-speed transmissions for years to come. !R&M’s has gained significant traction in the Australian market in the past few years. The team now comprises of 4 people with the addition of Craig Buckingham, R&M’s newly appointed National Technical Manager for Australia. In addition, R&M relies on a network of 80+ highly competent certified local contractors across the nation to support all of its implementations. !Craig, who has BICSI RCDD credentials, joins R&M with over 15 years of experience in the network design and implementation in LAN and Telco segments. He will be responsible for technical solutions in the enterprise and data center markets, for installation and testing as well as driving the nationwide certification trainings for consultants, end-users and installers

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®

Facts & Figures TOURISM AUSTRALIA-SWITZERLAND

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January-August

180,000

185,000

190,000

195,000

200,000

2014 2015

195,170

183,851

Overnights stays by Australians

Top destinations for Australians (Jan-Aug 15)

14%3%

6%

9%

10%12%

22%

25%Zurich RegionLucerne RegionGeneva RegionBernese OberlandValaisLake Geneva RegionBasel RegionRest

Despite falling (-0.5%) overnights stays in Switzerland between January and August 2015, overnights stays by Australians in Switzerland were up by 6.2%. Overall, Australia is the 15th largest foreign market and 7th largest market outside of Europe (after US, China, Gulf states, India, Japan and Russia.

News & Updates FROM THE NETWORK

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Job opportunity !SALES & MARKETING SUPPORT TALENT !• Work for a leading supplier to the Hotel & Resorts sector • Enjoy a diverse range of tasks and responsibilities, while working independently • Be part of a growing, dynamic business located on the Northern Beaches !Who we are: We are a leading supplier to the Hotel & Resorts sector in Australia, New Zealand the South pacific region and are quickly becoming a major player in our industry. About the role: The position requires you to provide excellent sales, product and marketing support to the external sales team and to lend a helping hand in the day-to-day administrative operations of our business. You will need to be adaptable, self-motivated and versatile and enjoy working across a broad range of tasks and projects. What's in it for you: This is a great opportunity for you to join a solid and successful business during a strong growth phase. Joining our small team means you will not just be a mere number on the payroll, but an important and integral part of the business. If you believe you have the necessary skills and experience to perform this important role, please send your resume to jobs@swisstrade.com.au To obtain a full job description before you apply, please email marcel@swisscham.com.au .

Austrade opens office in Zurich !Austrade has now an official representation in Zurich. Previously, the Swiss market was looked after from Austrade's Frankfurt office. Austrade appointed Nicolas Bentel as the Country Manager for Switzerland. With an extensive background in the financial services sector, Nicolas joined Austrade from UBS Zurich, where he was most recently the Head Investment Specialist for the Latin American team and a member of the Regional Advisory Committee for Global Emerging Markets. Prior to that he worked for Credit Suisse as a senior relationship manager in Private Banking. He has an MBA (Finance & Investments) from Australia’s Griffith University, and is a fluent German and native Spanish speaker. As Country Manager for Switzerland, Nicolas will be responsible for expanding Austrade's network in the Swiss market and driving Australia's investment agenda across Austrade's key focus sectors. Nicolas can be reached under the following email: nicolas.bentel@austrade.gov.au.

SGS Australia !SwissCham Australia Board Director, Mrs Yvonne Dickson, has recently been promoted to the role of Managing Director Australia succeeding her predecessor Mr Henry Wang who move on to another role within SGS. Congratulations to Yvonne & SGS!

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Register via www.swisscham.com.au

Events !

REVIEW

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Guest speaker: Jay McGregor, Managing Director, Institutional Equities, Commonwealth Bank

Board Room Lunch !!15 September

Host & Venue: King & Wood Mallesons, Sydney !Guest of honour: HE Marcel Stutz, Swiss

Ambassador to Australia

Art Exhibition & Networking !1st October Venue: Telstra, Sydney !Partners: La Camara & Art Index

Board Room Dinner !6 October

Host & Venue: V-ZUG Australia, Melbourne !Guest speaker: David Sokulsky, PhD,

Head of Investment Strategy, UBS Wealth Management Australia

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Events !

REVIEW !!!

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Migration Seminar !8 October Host & Venue: Tresscox, Sydney !Partner: Finland Chamber of Commerce & Industry

EuroMix Sydney !14 October

Host & Venue: ECC Lighting+Furniture Catering: Bei Amici

EuroMix Melbourne !15 October Host & Venue: V-ZUG Australia

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ZU22454 - V1 09/14

This is a general description of insurance services and does not represent or alter any insurance policy. Such services are provided to qualified customers by affiliated companies of the Zurich Insurance Group Ltd, as in the US, Zurich American Insurance Company, 1400 American Lane, Schaumburg, IL 60196, in Canada, Zurich Insurance Company Ltd, 400 University Ave., Toronto, ON M5G 1S9, and outside the US and Canada, Zurich Insurance plc, Ballsbridge Park, Dublin 4, Ireland (and its EU branches), Zurich Insurance Company Ltd, Mythenquai 2, 8002 Zurich, Zurich Australian Insurance Limited, ABN 13 000 296 640, AFS Licence No232507, 5 Blue St., North Sydney, NSW 2060.

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