Australian Growth OpportunitiesAICD Conference, Directorship:14Tom von Oertzen

21 May 2014

PPT41 - Australian growth opportunties final.pptx 2

Cop

yrig

ht ©

201

4 by

The

Bos

ton

Con

sulti

ng G

roup

, Inc

. All

right

s re

serv

ed.

Growth: Managing Value and Risk

Correlation of revenue growth and TSR (S&P 1200, 1990 –2009)

Average annual revenue growth (%)

Average annualTSR (%)

–20%

0%

20%

40%

–20% 0% 20% 40%

No growth

Poor growth

Good growth

Note: For companies where data does not exist from 1990, the first point of available data is used insteadSource: S&P Capital IQ, BCG analysis

PPT41 - Australian growth opportunties final.pptx 3

Cop

yrig

ht ©

201

4 by

The

Bos

ton

Con

sulti

ng G

roup

, Inc

. All

right

s re

serv

ed.

Common pitfalls for value creating growth

1 Unrewarded investment in innovation

3 Mistaking large revenue pools for large profit pools

4 Investing in areas with unclear competitive advantage

5

Sacrificing price point to drive growth

Unsuccessful M&A—lacking strategic logic, overpaying or poor integration

2

6

7

Attempting to grow an underperforming business out of trouble

Focus areas not aligned with organizational capabilities and culture

PPT41 - Australian growth opportunties final.pptx 4

Cop

yrig

ht ©

201

4 by

The

Bos

ton

Con

sulti

ng G

roup

, Inc

. All

right

s re

serv

ed.

Australian growth opportunities

Mega trends

Health and AgeingTravel & TourismBig data/digitalSustainability

Food bowl for AsiaUrbanization

Big data/digitalNext billion consumers

In AustraliaIn Australia Beyond AustraliaBeyond Australia

Large companies

Nimble SMEs