Chairman s Statement 4. Executive Statement 6. Strategic Plan Overview 8. Executive Summary 10. Strategic Environment 11. QATC Value Statement 15

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3 Chairman s Statement 4 Executive Statement 6 Strategic Plan Overview 8 Executive Summary 10 Strategic Environment 11 QATC Value Statement 15 Objectives Objective One: Become a commercially sustainable educational institution that is recognised for its industry leadership and innovation. Strategies Key Performance Indicators and Specific Goals Objective Two: Deliver high quality vocational training and education in rural, agricultural and related study areas to produce graduates that are in demand by industry and employers. Strategies Key Performance Indicators and Specific Goals Objective Three: Develop a best management practice agribusiness enterprise that is based on value added supply chain principles and is a vehicle for student attraction and for practically based enhanced learning outcomes Strategies Key Performance Indicators and Specific Goals Five Year Financial Plan 33 QATC Positioning 39 Risk Mitigation 41 Appendix 1: Organisational Chart 44

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12 It is in this environment and facing these challenges that QATC must operate in the future equipping students and the agribusiness sector with the relevant skills, knowledge, research and experiences to meet future demands and challenges. To do this QATC cannot continue to operate as it has in the past. The Queensland Government and Department of Agriculture and Fisheries (DAF) has a vision designed to achieve productive and prosperous agriculture and fishing sectors. Key strategies of the Department aligned to this vision are: ¾ driving innovation and productivity through research, development and extension ¾ improving sustainability of agriculture ¾ supporting a modern workforce QATC, as an education and training provider and a partner in the department s research agenda, recognises the need to strategically align with the department s plans. The Australian agricultural industry and the supply chain industries that it supports are major contributors to the economic prosperity of the country. Agricultural production, in particular, plays a vital role in sustaining rural communities and remains a constant sustaining factor during times of volatility within the resources sector. The Australian agricultural industry: ¾ contributes 3% of Australia s GDP ¾ earns $49.7 billion ¾ manages 61% of Australia s land mass ¾ employs 307,000 on farm ¾ employs 1.6 million people across the supply chain 1 The Queensland agriculture, fisheries and forestry industries: ¾ earn an estimated production value of $14.7 billion ¾ employ over 90,000 people ¾ earns $5.4 billion in exports, and ¾ value chain industries including logistics, processing, refrigerated storage wholesale and retail contribute over $22 billion to the economy. 2 These results have been achieved within an environment where: ¾ consumers of food have an increasing consciousness regarding sustainable production ¾ industry and government have to be prepared for major climatic events and biosecurity threats ¾ security of water and sustainability of land resources are major issues ¾ global markets and movements of labour impact economic sustainability ¾ research, legislative changes and policy, and advanced use of technology play a much greater role in modern agribusiness. 1 Source: NFF Farm Facts Source: Queensland s Agricultural Strategy - A 2040 vision to double the value of production. Queensland Government 2012

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14 The Council has found that despite the number of people graduating from Australian universities with degrees in agriculture and environmental sciences decreasing, the number of positions available for each graduate has increased. % fulltime employment Source: The level of full-time employment after graduation of the agriculture cohort, the environmental cohort and the total Fields of Education 2005 cohort for the period AGRICULTURAL EDUCATION AND DAMN STATS II: GRADUATE EMPLOYMENT AND SALARIES 1 Organisational Environment Agric The Queensland Government enacted legislation on the 1st July 2014 that established Queensland Agricultural Training Colleges (QATC) as a statutory body to govern and manage all Queensland Government owned agricultural training and education establishments and assets including the Longreach and Emerald Agricultural Colleges. The Statutory Body established the QATC Board of Governance with local Boards at Longreach and Emerald. Env Total The Governing Board of QATC appointed David Crombie to conduct a full review of the operation of QATC and he provided the Government with a report in October QATC s performance has seen continuing deficit budgets resulting from decreasing demand for VET and high costs of underutilised assets. The Review Report by David Crombie 2 highlighted that governance, strategy, structure and culture are contributing to the current non-financially sustainable model. Recommendations from that Report have formed the basis for the Minister of Agriculture and Fisheries requesting this five year strategic plan. 1 (Australian Council of Agricultural Deans (ACDA) (Pratley 2008; Pratley et al. 2008; Pratley 2012) 2 Source: Review Report for QATC David Crombie 2015

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16 QATC holds a unique place, not only in the Queensland and national agribusiness industry but in the rural communities of Queensland. With one in seven working Queenslanders employed in agribusiness and the total supply chain 1, there are strong long term opportunities for employment both on and off farm for people with the relevant skills. Innovation, value adding and a need for increased business, marketing, production and design skills will be fuelled by the growing globalisation of trade and new markets, particularly in Asia where Queensland is well placed to build market leverage. Queensland has the largest area of agricultural land in Australia businesses carry out agricultural activity providing $14.7 billion value to the economy. Yet agriculture across Australia faces the problem of an ageing workforce and poor career perceptions. Agriculture has often lost the best and brightest to other industries. This trend is changing and the growth in new job opportunities will require more people to live and work in rural Queensland resulting in stronger communities that become economically selfsustaining and attractive places to work. Although the future of QATC includes a range of different learning modalities, including online, QATC s unique proposition is based on government ownership, industry-scale production enterprises, and a decentralised workforce based in rural and regional Queensland. Rural communities are often disadvantaged by a lack of services, poor learning opportunities, social and business isolation, limited business opportunities, increased mental health issues and the fracturing of families as children leave home to advance their skills and careers. These factors, coupled with the vagaries of droughts and floods, impact considerably on the economic and health and wellbeing of people living in rural Queensland. However, the growing strength of the agribusiness sector in Australia creates an environment in which QATC can provide leadership and leverage to the social and economic health of rural Queensland. The QATC footprint across Queensland creates both tangible and intangible flow on economic and social effects through direct and indirect influences on employment, education and economies. ¾ Education and training that translates into job opportunities, higher education and international exchanges in regions where work and learning opportunities are limited. ¾ Greater employment opportunities in the communities which creates a demand for more schools, businesses, health services, manufacturing and service industries. ¾ Boosting the local economies through the use of local suppliers bringing in skilled academics and their families to live and work. ¾ Demonstration sites which increase the knowledge of local farmers, and research sites for ground breaking research. ¾ The opportunity for children to stay at home while they study and learn. ¾ Local leadership in sustainable farming management practices and the preservation of our environment. ¾ Positive outcomes in mental health and wellness through meaningful learning and work. ¾ Unique facilities and communities that welcome international students to learn in Queensland. ¾ A range of physical assets that are used by the local community for social events, farm days and industry/health/education workshops. QATC s Strategic Plan is underpinned by our stated values and our unique place in Queensland agriculture, education and training. The strategies are designed to put the agricultural industry, government priorities and rural communities in the centre of our operations. The Plan is a bold and courageous move to realise the potential of QATC s assets, history and expertise by setting out strategies and actions to take QATC into the future. 1 Source: Queensland Govt s Food and Fibre Policy 2015

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35 Notes Actuals $ Estimate $ Estimate $ Estimate $ Estimate $ Estimate $ Estimate $ 000 Revenues Vocational training 1 4,413 1,406 2,169 2,234 2,299 2,364 2,430 Community programs Schools programs (Vetis and PACE) ,007 1,053 1,226 1,409 1,602 Traineeships Higher education ,845 3,150 4,300 4,840 5,400 Corporate training Short course International/export education Training revenues 4,983 5,068 7,045 8,742 10,316 11,297 12,316 Rent, accommodation and meals ,265 1,423 1,613 1,623 1,623 1,623 Gain on sale of assets and investments Biological increments 10 2,943 3,242 3,342 3,442 3,442 3,442 3,442 Research grants Other commercial revenues 3,925 4,507 4,865 5,205 5,265 5,265 5,265 Total commercial revenues 8,908 9,575 11,910 13,947 15,581 16,562 17,581 VET purchaser grant 11 7,581 7,602 7,602 7,602 7,602 7,602 7,602 Transitional/business capability grant 12 1, Other grants Grants 9,428 8,502 8,102 7,652 7,677 7,702 7,702 Interest and dividends Other revenues Other revenues Total revenues 19,282 18,848 20,805 22,358 23,997 25,003 26,022 Expenses Employee expenses 13 10,957 10,972 11,246 11,643 12,279 12,816 13,367 Supplies and services 14 8,358 8,080 8,949 9,629 10,103 10,382 10,698 Depreciation and amortisation 1,325 1,337 1,396 1,346 1,277 1,211 1,156 Other expenses Loss on sale of assets and investments Asset write-down, revaluation decrements and impairment loss Total expenses 20,857 20,616 21,824 22,856 23,899 24,650 25,462 Profit/(loss) for the year from continuing operations (1,575) (1,767) (1,019) (498) Ratios Operating Margin -8% -9% -5% -2% 0% 1% 2% Commercial revenues as a share of total revenues 46% 51% 57% 62% 65% 66% 68% Employees expenses to commerical revenues 123% 115% 95% 84% 80% 78% 77%

36 Actuals $ Estimate $ Estimate $ Estimate $ Estimate $ Estimate $ Estimate $ 000 Current Assets Cash assets 15,136 13,623 12,169 11,568 11,486 12,115 12,895 Receivables 2,120 1,613 1,603 1,592 1,579 1,564 1,549 Inventories Other Total current assets 17,717 15,697 14,233 13,621 13,526 14,141 14,905 Non-current assets Receivables Biological Assets 2,457 3,257 3,467 3,777 4,247 4,697 5,147 Property, plant and equipment 66,764 68,058 68,292 68,096 67,819 67,108 66,452 Other Total non-current assets 69,395 71,488 71,932 72,047 72,240 71,978 71,773 Total assets 87,112 87,185 86,166 85,668 85,766 86,119 86,678 Current liabilities Payables 2,194 2,196 2,196 2,196 2,196 2,196 2,196 Accrued employee benefits Other current liabilities 1,384 1,384 1,384 1,384 1,384 1,384 1,384 Total current liabilities 4,540 4,542 4,542 4,542 4,542 4,542 4,542 Non-current liabilities Provisions Total non-current liabilities Total liabilities 4,843 4,845 4,845 4,845 4,845 4,845 4,845 Net Assets 82,269 82,339 81,321 80,823 80,921 81,274 81,833 Equity Capital / equity contributions 9,948 11,788 11,788 11,788 11,788 11,788 11,788 Retained surplus / accumulated (deficit) (20,504) (22,271) (23,290) (23,788) (23,690) (23,337) (22,777) Reserves: Asset revaluation reserve 92,825 92,823 92,823 92,823 92,823 92,823 92,823 Other Total Equity 82,269 82,339 81,321 80,823 80,921 81,274 81,833 Ratios Current ration (liquidity) Return on equity -1.9% -2.1% -1.3% -0.6% 0.1% 0.4% 0.7% Quick Ratio

37 Actuals $ Estimate $ Estimate $ Estimate $ Estimate $ Estimate $ Estimate $ 000 CASH FLOW FROM OPERATING ACTIVITIES Inflows Grants and other contributions 9,428 8,502 8,202 7,802 7,877 7,902 7,902 Interest and dividends received Other supplies and services 732 1,772 1,432 1,624 1,636 1,637 1,638 Training revenues 4,983 5,068 7,045 8,742 10,316 11,297 12,316 Sale of biological assets 3,233 2,816 3,156 3,156 2,996 3,016 3,016 Other Outflows Employee costs (10,801) (10,972) (11,246) (11,643) (12,279) (12,816) (13,367) Supplies and services (8,479) (8,080) (8,949) (9,629) (10,103) (10,382) (10,698) Other expenses (121) (126) (132) (136) (138) (139) (140) Net cash provided by (used in) operating activities (78) (249) ,043 1,254 1,405 CASH FLOWS FROM INVESTING ACTIVITIES Inflows Sale of property, plant and equipment Investments redeemed Outflows Payments for property, plant and equipment (3,827) (2,630) (1,630) (1,150) (1,000) (500) (500) Purchases of biological assets (67) (475) (125) (125) (125) (125) (125) Other Net cash provided by (used in) investing activities (3,894) (3,105) (1,755) (1,275) (1,125) (625) (625) CASH FLOWS FROM FINANCING ACTIVITIES Inflows Borrowings Appropriated equity injections Non-appropriated equity injections 1,840 Outflows Appropriated equity withdrawals Non-appropriated equity withdrawals Finance lease payments Net cash provided by (used in) financing activities 1,840 Net increase (decrease) in cash held (3,972) (1,514) (1,454) (601) (82) Cash at beginning of the financial year 19,109 15,136 13,623 12,169 11,568 11,486 12,115 Cash at end of the financial year 15,136 13,623 12,169 11,568 11,486 12,115 12,895

38 Voca%onal Training Community Programs Schools Programs Traineeships Higher Educa%on Corporate Training Short Course Interna%onal training Voca%onal Training Community Programs Schools Programs Traineeships Higher Educa%on Corporate Training Short Course Interna%onal training Voca%onal training Community programs Schools programs Traineeships Higher educa%on Corporate training Short course Interna%onal training Voca%onal training Community programs Schools programs Traineeships Higher educa%on Corporate training Short course Interna%onal training

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