1. Suncorp Group Insurance Regional Market Review March 2011

2. Benefits of RTV: Population, spending power, demographics Media: Efficiency, investment levels Insurance brand regional focus Regionally focused communication strategies Digital TV multichannel opportunities Agenda

3. www.regionaltvmarketing.com.au RTM is the marketing bureau for Regional free to air TV

4. Regional TV covers all areas outside capital cities and reaches 36% of population QLD NNSW SNSW TAS VIC REG. WA DIARY

5. Regional TV coverage includes large cities and fast growing coastal suburbs Newcastle & Central Coast Gold Coast Wollongong & Illawarra Canberra

6. Diary markets: A diverse mix of urban and rural Regional WA Port Pirie/ Broken Hill Satellite Griffith Mildura Darwin Loxton/Mt Gambier

7. Populations of major regional TV markets are comparable with the metros People Source: ATR & OZTAM 2011, Nielsen Media Research 2010 NNSW 2,079 SNSW 1,410

8. RTM website Google maps to regional submarket level

9. Regional TV maps have Wikipedia link for all towns

10. Urbanisation and population growth changing the profile of regional Australia Seachange: Baby boomers and young families Lower cost of living and lifestyle are main attractions Rural populations moving to regional hub towns Less than 4% of households depend on farming

11. Seachange… … for baby boomers …for families

12. “Typical” Seachanger Ryan, 36. Wollongong NSW Made the seachange from the “Shire” to the “Gong”. Owns a small business in building trade Above average income & primary focus is kids and lifestyle. Loves footy, cars and teaching kids surfing.

13. Population Increase: 2001 vs. 2011 Source: ATR & OZTAM 2011 Australian population moving North and to the coast. Over 25% growth in 10 years in some centres Metro +18% Regional East Coast (Aggs) +18% National average

14. Lower housing cost is key factor in maintaining regional spending and attracting new arrivals House price vs. income multiple Source: Residex median house price Jul - Sep 2010 & Roy Morgan Single Source 12 mths to Jun 2010

15. Highest income growth has been in regional – shift to white collar + resources Average Household Income 2010 vs. 2004 for P25-54 Roy Morgan Single Source 12 mths to Sep 2010 & Sep 2004

16. Regional people start their family life younger and have more children Source: Roy Morgan Single Source (12mths to September 2010)

17. Regional new car buyers slightly older, more likely to be retired empty nester Source: Roy Morgan Research (12 months to Sep 2010)

18. Why has regional spending been more stable and the outlook more positive? Lower cost of living – less debt Government investment in infrastructure High population growth driving development and local economies Resources growth impacting many parts of regional: NSW, QLD, WA, SA.

19. Regional consumers’ willingness to spend remained very steady through GFC compared to metro volatility Dollars allocated for spending from discretionary $1000 Source: foreseechange 2005 - 2010 $

20. Regional consumers have been increasing their saving for past 5 years: national mood now cautious Source: foreseechange 2005 - 2010 Dollars allocated for saving from discretionary $1000 $

21. Half of all Australians say they are able to spend on discretionary items... no significant change YOY % of Pop. No Worries “Few financial concerns being able to both save and buy what I want” Comfortable “Afford to spend on the extras that make life worthwhile” Getting By “Manage to meet expenses but nothing left over” Broke “Never seem to have enough money” Source: foreseechange June 2010 & October 2010

22. Media landscape in regional markets is broadly similar to capital cities Source: Roy Morgan Single Source 12 months to Sep 2010, *AGB NMR Panorama 12 mths to Dec 2010

23. Reg. TV CPM is 45% below metro TV average and delivers double the cost efficiency and ROI Index TV market CPM indices National average CPM P18+ = 100 Source: Regional TV Agency Survey 2010

24. Share of national population Share of national TV budget

25. Regional TV currently gets 17% of $180M insurance category TV advertising spend TV Spend Regional Share Source: Nielsen Media Research AdEx. (Jan – Dec For All Years)

26. Distribution of Suncorp Group insurance customers by brand: Over 40% from regional AGB NMR Panorama 12 mths to Dec 2010

27. Suncorp Group national spend and share into Regional TV Period: January – December 2010 Category: Insurance Total TV spend $18.4m $6.1m $2.9m $5.6m $339k $169k $2.1m $3.2m $3.3m $42.1m Source: Nielsen Media Research AdEx Jan-Dec 2010

28. Car insurance advertising share of voice by market: Youi, Allianz, NRMA and AAMI dominant Period: January to December 2010 Source: Nielsen Media Research AdEx Jan-Dec 2010 $29.4m$5.5m$18m$1.7m$12m$1.8m$4.2m$7.8m$197k$441k Total $80.9m

29. Home/Content Insurance SOV by market Period: January to December 2010 Source: Nielsen Media Research AdEx Jan-Dec 2010 $2.6m$484k$2.4m$271k$1.2m$171k$318k$1.4m$108k $0 Total $9m

30. Regional customer satisfaction with Suncorp Group insurance varies from metro Source: NMR Panorama (12mths to Dec 2010) *P25+ filter have insurance with named brand

31. Source: NMR Panorama (12mths to Dec 2010) Regional insurance customers want a balance of price and service

32. Regional man is more likely to be a car enthusiast Source: *Roy Morgan Single Source 12 months to Sep 2010, AGB NMR Panorama 12 mths to Dec 2010

33. Hearts & Minds: Corporate responsibility is important to regional people

34. Creating a regional voice for a financial services brand will improve preference, loyalty and cut through True local (Newcastle Permanent) Product offer localised (TCW, Rural bank) Tone of voice or context localised (youi, Greater Building Society, LaTrobe Uni) Support for local community (CBA Kids Cricket, NAB AFL, Surf Life Saving etc etc)

35. News & current affairs Local TV ads Promotions Community sponsorships Regional TV is part of the community… “We live here too”

36. www.regionaltvmarketing.com.au Local content reel…

37. Invest in regional variations in TVC’s: Product offer, imagery, customer profile. Promote existing local community support or develop appropriate programmes Increase regional media dominance: Share of voice, news and programme sponsorship and content development Higher cost efficiency of RTV allows opportunities to create customised communications strategies not possible elsewhere

38. Up to 40% of customers are in regional High cost efficiency of advertising improves national marketing ROI Opportunities to increase satisfaction and loyalty through localised strategies Competitors are increasing regional targeting in markets of greatest opportunity Regional markets are essential to success and growth in for Suncorp Group brands

39. www.regionaltvmarketing.com.au David Chalke social researcher….

40. The Great Divide Experiential International Libertarian Practical Communitarian Self Reliant Upwardly Mobile Materialist Family Focused Pragmatic Functional Patriotic Youthful Technological Energetic Conservative Institutional Self-Controlled Inner Metro 23% Outer Metro 41% Regional 36%

41. New digital FTA had higher share of viewing than pay TV in late 2010…before launch of 11 STV share of all people 13.3 % Digital FTA TV share of all people 14.3 % Source: RegTam survey 10.