1. Held in partnership with Creating Connections

2. Held in partnership with Creating Connections This document has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this document without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this document, and, to the extent permitted by law, PwC, IIRC or their licensors do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this document or for any decision based on it. Copyright 2014. All rights reserved. Permission is granted to make copies of these slides, provided that all logos, disclaimers, copyright notices and acknowledgements on the slides are retained, and each copy bears the following credit line: "Copyright 2014. All rights reserved. Used with permission of the IIRC and PwC.“ In this document, PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. IIRC refers to the International Integrated Reporting Council. Acknowledgements of third party source materials are contained on the relevant slides.

3. Held in partnership with Creating Connections as a response to megatrends Andrew Jurczynski Global Leader - Megatrends, PwC

4. Held in partnership with Creating Connections Overview  What are megatrends?  Integrating megatrends into business decisions  Why investors want your views on megatrends?  Panel and Q&A – send your questions using the activity feed in the app  Starting your roadmap to

5. Held in partnership with Creating Connections Megatrends – 5 global trends which: have a major influence on economic and commercial landscape over next decade permeate across all sectors of economy and society fundamentally disrupt industries and way we all do business

6. Held in partnership with Creating Connections Shift in global economic power Megatrends poll Currently, four of the world's 12 biggest economies are in emerging markets. In 2030, we think this figure will be how many? Vote in the app now!

7. Held in partnership with Creating Connections Shift in global economic power

8. Held in partnership with Creating Connections

9. Held in partnership with Creating Connections Rapid urbanisation Megatrends poll How many people are added to the global urban population every week? Vote in the app now!

10. Held in partnership with Creating Connections Rapid urbanisation

11. Held in partnership with Creating Connections

12. Held in partnership with Creating Connections Climate change and resource scarcity Megatrends poll Global food demand is expected to increase by how much by 2030? Vote in the app now!

13. Held in partnership with Creating Connections Climate change and resource scarcity

14. Held in partnership with Creating Connections The impact of megatrends – 9 strategic issues 3. Customer expectations and the power to punish 6. The revolution in distribution 4. Digital competitors and the age of innovation 5. New definitions of service and metrics 9. Impact on value creation and capital stocks 7. The organization of the future 1.Regulation Scope Enforcement Compliance 8.Risk Analytic tools Cyber-security 2. Future of virtual currencies 14 Megatrends

15. Held in partnership with Creating Connections Integrating megatrends into business decisions Juan Gonzalez Strategic Development Director, Indra

16. Held in partnership with Creating Connections Strategic response to megatrends Source: Legal & General investor presentation March 2014

17. Held in partnership with Creating Connections Strategic response to megatrends Source: Aegon 2013 Integrated Review

18. Held in partnership with Creating Connections Why investors want your views on megatrends Rui Mota-Guedes Head of European Equity Strategy, MainFirst Bank AG

19. Held in partnership with Creating Connections Why investors want your views on megatrends Simple, consistent, long- term goals Understanding of the competitive environment Objective appraisal of resources EFFECTIVE IMPLEMENTATION Successful strategy Superior returns

20. Held in partnership with Creating Connections Why investors want your views on megatrends World Population (billion people) Source: McKinsey Global Institute World Consumption ($ trillion)

21. Held in partnership with Creating Connections Why investors want your views on megatrends Source: ManpowerGroup Percentage employers having difficulty filing jobs

22. Held in partnership with Creating Connections Panel discussion and Q&A

23. Held in partnership with Creating Connections Megatrends - threat or opportunity? Technological advances Demographic shifts Shift in global economic power Resource scarcity and climate change Urbanisation 81% 60% 59% 46% 40% CEOs recognise there are megatrends with the ability to transform their business in the future… 22% 15% 13% 11% 10% Business model change New product/service offering Changes to costs/pricing Changes to consumer demand 13% 11% 10% New market opportunities …opening up opportunities along the way

24. Held in partnership with Creating Connections Your roadmap to Ian Ball Chairman, Chartered Institute of Public Finance and Accountancy, Chair of IIRC Working Group

25. Held in partnership with Creating Connections Your roadmap to  Self-assessment of your organization’s status  Reflect  Record learning points  Plan actions  Take back to drive momentum with your colleagues All materials are in your workbook: guidance, worksheets, space for notes Not a test! Judgement – not an exact science! Snapshot of complex businesses!

26. Held in partnership with Creating Connections What will your roadmap to cover? Step 1: identify relevant inputs, outputs, outcomes Material capitals to value creation and focus areas for each material capital for roadmap exercise Step 2: assess your integrated thinking Red, orange, green rating for each focus area Step 3: assess your external communications Red, orange, green rating for each focus area Day 1: as part of “ as a response to megatrends” Day 1: as part of “The integrated business” Day 2: at start and end of day Day 3: after “Emerging Trends”

27. Held in partnership with Creating Connections Getting started 10 minutes to:  Write down a snapshot of inputs, outputs, outcomes relevant to your organization’s value creation  Decide which capitals are material  Choose an area to focus on for each material capital 5 minutes to discuss on your table Workbook includes tips to help you Look for this icon for ideas for bringing in learning from conference sessions

28. Held in partnership with Creating Connections