1. Preparing for the era of the mega-fund May 2012 D Glenn Sedgwick

2. 2Copyright © 2012 Accenture All rights reserved. Accenture's latest report…

3. 3Copyright © 2012 Accenture All rights reserved. Today's Agenda Forces of Structural Change

4. 4Copyright © 2012 Accenture All rights reserved. Today's Agenda Forces of Structural Change Business Model Innovation

5. 5Copyright © 2012 Accenture All rights reserved. Today's Agenda Forces of Structural Change Business Model Innovation Getting Started

6. 6Copyright © 2012 Accenture All rights reserved. Forces of Structural Change Growth and Consolidation

7. 7Copyright © 2012 Accenture All rights reserved. Our Industry will be a very different place… Source: APRA Annual Superannuation Bulletin June 2011

8. 8Copyright © 2012 Accenture All rights reserved. Our Industry will be a very different place… Source: APRA Annual Superannuation Bulletin June 2011 2017 over $2 Trillion

9. 9Copyright © 2012 Accenture All rights reserved. Our Industry will be a very different place… Source: APRA Annual Superannuation Bulletin June 2011Source: Rice Warner Media Release December 2011 2017 over $2 Trillion

10. Source: APRA Annual Superannuation Bulletin June 2011 10Copyright © 2012 Accenture All rights reserved. Our Industry will be a very different place… ≈ 74 Funds Biggest @ ≈ $350 Billion Average fund ≈ $80-$90 Billion 2017 over $2 Trillion Source: Rice Warner Media Release December 2011

11. 11Copyright © 2012 Accenture All rights reserved. Forces of Structural Change Growth and Consolidation Government Reform

12. 12Copyright © 2012 Accenture All rights reserved. Forces of Structural Change Growth and Consolidation Government Reform Aging and Competition

13. 13Copyright © 2012 Accenture All rights reserved. Growth and Consolidation Government Reform Aging and Competition Consumers are Changing Forces of Structural Change

14. The industry today 14Copyright © 2012 Accenture All rights reserved. Source: Rice Warner Media Release December 2011 2011 FUA $ Billion SMSF Retail Super Industry Funds Public Sector Corporate Small

15. A new industry structure 15Copyright © 2012 Accenture All rights reserved. Source: Rice Warner Media Release December 2011 2011 FUA $ Billion2016 “A 3 cornered contest” HIGH RETURN? FULL SERVICE? HIGH COST? HIGH RETURN? FULL SERVICE? HIGH COST? LOW COST? HIGH RETURN? LOW SERVICE? Retail SMSF Industry ? SMSF Retail Super Industry Funds Public Sector Corporate Small

16. 16Copyright © 2012 Accenture All rights reserved.

17. Shift to Online Copyright © 2012 Accenture All rights reserved. Please indicate the percentage of your business generated by each of the following channels. Changes between 2007 - 2013 29% drop 12.5% drop 6% drop 250% gain 400% gain 4% 11% 14% 15% 14% 8% 3% 2% 32% 29% 28% 44% 37% 31% Non tied advisory channels Tied or captive agents Bancassurance Phone (branch, call centres) Internet (PC and mobile devices) 2010*2013*2007** Source: Accenture Global Multichannel Distribution Survey, 2010. Accenture Global Insurance Global Survey, 2007 1. Retailers, travel firms, etc. 17

18. Potential Solutions 18Copyright © 2012 Accenture All rights reserved. New operating models Cometa is using Accenture’s business process outsourcing services Case Study:

19. Potential Solutions 19Copyright © 2012 Accenture All rights reserved. New operating models Cometa is using Accenture’s business process outsourcing services Benefits Cut acquisition time for new enrolments by 20% Reduced hard-copy inputs from employers by 75% Reduced the time it takes to invest in Super by 80% Cut pension payment times by 30% Case Study:

20. Potential Solutions 20Copyright © 2012 Accenture All rights reserved. Case Study: Face to face transactions costing US$15 each

21. Potential Solutions 21Copyright © 2012 Accenture All rights reserved. Case Study: Face to face transactions costing US$15 each Benefits By 2009 – 39 millions out of 41 million (95%) of member transactions completed through an online channel – costing 10 cents each.

22. Potential Solutions 22Copyright © 2012 Accenture All rights reserved. Case Study: WIP Members: ≈ 900K FUM: ≈ 35 Billion Workplaces: ≈ 60K

23. Potential Solutions 23Copyright © 2012 Accenture All rights reserved. Approach: 1.Move from “registry processing” to “member-centric” 2.Replace former legacy apps (Pensions/Insurance) 3.Embrace online and mobile Case Study: WIP Members: ≈ 900K FUM: ≈ 35 Billion Workplaces: ≈ 60K

24. So What? … 3 things 24Copyright © 2012 Accenture All rights reserved. Get a Plan

25. So What? … 3 things 25Copyright © 2012 Accenture All rights reserved. Get a Plan Get Ready

26. So What? … 3 things 26Copyright © 2012 Accenture All rights reserved. Get a Plan Get Ready Get Going

27. Soon to be released Accenture global pensions survey 8,100 consumer interviews in 15 countries 15 country reports: market trends and opportunities for insurers Pensions landscape: pension landscape overview, insurers imperatives and key pension market trends The pension potential index: assessment of 21 countries according to a combination of variables in order to identify the level of opportunities and challenges for insurers Survey report - global results as well as key results by country and consumer profile (e.g. age, gender) Copyright © 2012 Accenture All rights reserved.27