Reform of Taiwan's Pension System A lead from Australia Presentation to 30 th Joint Conference of the ROC-Australia and Australia-Taiwan Business Councils 9 September 2016

Link Group Link Group Presentation © Taiwan Pension System planned reforms Government has announced that reform of the pension system is a high priority for the new administration In August 2016, announced that specific reforms will be implemented for the military pension scheme The Australian superannuation system is a good example of a recently developed and currently evolving pension/retirement system It serves as a good model for other national governments, such as Taiwan, seeking to improve their own retirement income framework Began with a reform of the superannuation system in the 1990s 2

Link Group Link Group Presentation © Australia’s Retirement Income Framework Australia's national retirement income framework has three core pillars -Mandatory superannuation contributions -Voluntary superannuation contributions -Government funded aged pension Taxation incentives are in place to benefit mandatory contributions and to encourage voluntary contributions -incentives also have effect of “binding” contributions and earnings until legislated retirement age With assets over $A2 trillion, Australia’s Superannuation System is -fourth largest asset pool globally -second in the Asia Pacific Region Expected to be $A4 trillion by

Link Group Link Group Presentation © Australia’s Superannuation System Prior to 1992, largely the province of corporate/government defined benefit and occupation specific schemes 1992 compulsory contributions introduced as part of a government/labour accord -Started at 3.5% now 9.5%, to be 12.5% by 2025 Includes built-in insurance for employees Regulation by the government from three angles -Prudential – Australian Prudential Regulation Authority (APRA) -Investor protection and licensing – Australian Securities and Investments Commission (ASIC) -Revenue collection – Australian Taxation Office (ATO) Grown to encompass broad product base - offering consumer choice and products designed for different lifecycle stages Self Managed Super Funds now a key growth sector 4

Link Group The impact of Australia’s reforms Delivered nation-wide retirement income and savings pool Increased accessibility of life and disability insurance Reduced reliance on unfunded pension schemes Allowed Australia to develop a world-scale and world-class investment community and framework Broadened access of Australian investors to global markets Lowered Australia’s cost of capital Financial literacy markedly increased Link Group Presentation © 5

Link Group Australia’s Superannuation System – Retail Level 6 Link Group Presentation ©

Link Group Australia’s Superannuation System – Wholesale Level Link Group Presentation © 7

Link Group Australia is fourth largest global pension pool Global pension asset pools (2014) and last decade growth 1 Total Australian superannuation industry size 3 6.6%6.5%( 0.3% ) 11.2% 2 7.3%7.0%4.5%6.3%na9.7% 1.Based on Towers Watson Global Pension Assets Study Presents 2014 data. As at 30 June 2015, the Australian superannuation system has over $2.0 trillion in FuM; 2. Based on FY2004 and FY2014 FuM in Australian dollars; 3. Based on APRA Superannuation Bulletin 2013, revised February 2014; APRA Quarterly Superannuation Performance March 2015, issued 21 May Projections based on data from Rice Warner (2015). Link Group Presentation © 8 FY2004 – FY2014 CAGR: 11.2% CY2004 – CY2014 CAGR (%)

Link Group Link is Australia’s leading fund administrator Australian superannuation administration providers By Members Link Group Presentation © 9 Based on Link Group’s analysis of APRA Superannuation data; Annual Fund-level Superannuation Statistics (June 2015 edition).

Link Group Link is a market leading technology-enabled Group Link Group is a market leading administrator of financial ownership data, underpinned by investment in technology, people and processes Link Group Presentation © 10 At a glance, Link Group currently:  Services over 10 million superannuation account holders and over 25 million individual shareholders  Has operations in 11 countries worldwide, with Australia its largest market  Has over 2,500 clients globally  Employs approx. 4,300 full time equivalents (“FTE”)  Completes over 20 million transactions per year  Processes over $70 billion in payments per year  Answers over 4.6 million calls per year Link Group’s divisional breakdown (By FY2016 revenue) 1,2 Link Group’s revenue by type (By FY2016 revenue) 2 1. Divisional percentages based on gross revenue prior to eliminations. 2. No pro forma adjustments have been made to statutory revenue in the FY2016 results. 3. Recurring Revenue is revenue arising from contracted core administration services, stakeholder engagement services, share registry services and shareholder management and analytics services that are unrelated to corporate actions, expressed as a percentage of total revenue.