1. www.mercer.com Mercer Benefits Solutions 20 th April 2010 Godelieve Kroonenberg, Liana Attard Singapore

2. 1 Mercer Agenda – Mercer’s Benefits Solutions  Setting the context – Where do employee benefits fit in? – Mercer’s broad range of benefits offerings – Prospects  Focus on the IPS Benefits Survey – Mercer BenefitsMonitor  From information to consulting - examples of benefits projects – Benefits Prevalence Benchmark – Benefits Valuation – Benefits Consulting  Marketing resources

3. Setting the context

4. 3 Mercer Where do benefits fit in? Labour tensions Shortage of skilled workers Influx of foreign companies Compensation woes How to attract and retain high performance staff with a limited budget? How to motivate and engage employees? IssuesPossible solutionsAdvantages Attract and retain employeesGood medical and insurance coverage Work life harmony benefits (flexible working hours) In-house training Foreign language classes Team building activities and company events Share information on company’s directions, challenges, objectives and expectations to staff Perquisites Lower cost Group buying power Ensuring health and wellness of employees allowing for greater productivity and motivation Employee learning and development Employee engagement Clear career development plan to retain high performance staff Personal touch that allows company to build employer brand to attract and retain Motivate and engage employees

5. 4 Mercer Products to meet every stage of our clients’ needs Prevalence data, MBM & Peer Cuts Benchmarking Valuation Plan Design Clients who want market information High volume, low returns Low volume, high returns Benefits survey participants who want to better understand and compare their policies with the market Benefits survey participants who want to redesign their benefits policies Regional Benefits Management clients TRS clients Prospects Broking clients Mercer Gold clients

6. Benefits Survey Mercer BenefitsMonitor

7. 6 Mercer About Mercer’s Benefits Survey  Annual comprehensive benefits survey across 15 APAC countries  Access to the benefits survey report is via our online application, Mercer BenefitsMonitor (MBM)  Membership is one year beginning from the date of access  MBM is a rolling database and is updated twice yearly – Jan and July.  Clients are able to submit data outside of the data survey cycle – Data will then be updated in MBM in the next scheduled upload.  All Mercer.com users have access to MBM via the link http://home.mercer.com/IPS/Prod_Info/benefits/ BenefitsMonitor_APAC.asp http://home.mercer.com/IPS/Prod_Info/benefits/ BenefitsMonitor_APAC.asp 2010Australia/ New Zealand ChinaAll other countries Data Submission Deadline 26-Apr-1015-Jun-10 (1 st tier ciities)* 10-May-10 (Tian Jin)** 30-Apr-10 Data Delivery Date 25-Jun-1030-Sep-1031-Jul-10 20102 nd Cycle (All countries excluding Australia and New Zealand) Data Submission Deadline29-Oct-10 Data Delivery Date31-Jan-11 Survey Cycle First Cycle Second Cycle * China 1 st tier cities – Beijing, Shanghai, Guangzhou and Shenzhen ** With the exception of Tian Jin, there is no fixed schedule for submitting data for China’s second tier cities.

8. 7 Mercer About Mercer BenefitsMonitor a user-centered online tool that offers flexible & intuitive features for benefits reporting and analysis Advantages of MBM  One stop source for market & statutory benefits information from 15 APAC countries  Fast & convenient access to data according to the level of detail required  Run analysis versus standard and custom defined ‘peer groups’ – easily benchmark against competitors of choice  Indefinite number of reports can be generated

9. 8 Mercer MBM: Types of Benefits reports General, high level reports  Trends and statutory updates  PDF  Spotlight Report – Provides an overview of key benefits practice trends in the general market. – Represents all industries – Statutory overview  Benefits Prevalence Report (BPR) – Side by side comparison of your organization’s benefits policies against aggregated statistics of selected peer groups  Detailed Benchmark Report (DBR) – Provides exact details of the benefit plans of a custom peer group of choice – Side by side comparison of benefits provided by different employers Specific, detailed reports  Aggregated or side by side comparison of benefits plans  PDF and/or Excel BPR peer group limit: min.12, no limit. DBR peer group limit: min. 8, max 25

10. 9 Mercer MBM: Other features to look out for!  Global Benefits Legislative Updates (GBLU) – Updated monthly  Benefits Plans Around the World (BPAW) – Updated twice yearly  Benefits Newsletter – Updated quarterly  Snapshot survey / Quick Poll results

11. 10 Mercer MBM: Subscription packages and pricing Standard Subscription This subscription package includes: – Spotlight on Benefits Report – Access to aggregated reports (BPR) of ‘All Industries’ group report – One password to Mercer BenefitsMonitorTM for 12-month access Premium Subscription This subscription package includes: – Spotlight on Benefits Report – Access to aggregated reports (BPR) of ‘All Industries’ group and one available industry cut – Access to aggregated (BPR) OR side by side (DBR) reports of 1 customized peer group (approved by Mercer) – One password to Mercer BenefitsMonitorTM for 12-month access Additional customized peer groups will be charged at USD 600 per peer group Additional passwords will be charged at USD 300 per password Local clients: 1 password Regional clients: 1 access per country subscribed and one regional access Global clients: unlimited access

12. 11 Mercer Pricing Specific SectionsBenefits non- participants Working Conditions Insurance benefits Retirement benefits 600 each Leave benefits Vehicle benefits 800 each Health benefits1200 MBM (full benefits reports)StandardPremium TRSNon-TRSTRSNon-TRS Australia or New Zealand1000 1750 All other countries1000125017502500 Spotlight on BenefitsBenefits non- participants Australia1100 New Zealand670 All other countries800 5% discounts apply for purchase of MBM in multiple countries or purchase of more than 3 benefits sections. Cost of peer group is USD 600 regardless of participation in benefits survey

13. 12 Mercer Demo video

14. Benefits projects From information to consulting

15. 14 Mercer Benefits project opportunities / wins Benefits benchmarking  Data collected can be readily used for the following projects: – Benchmarking - Valuation – Harmonization - Employee benefits design review Example 1 Company: Canon Objectives: To conduct both internal and external benchmark for 9 countries Why we won: Large benefits database across 15 countries Comprehensive benefits reports that typically cover at least 90% of clients’ queries Advanced technology (MBM) that allows for quick turnaround time

16. 15 Mercer Benefits project opportunities / wins Benefits valuation Example 2 Company: HP Objectives: Wanted to calculate the value of their benefits packages in Malaysia and Singapore Why we won: Technical expertise Large database Globally recognized methodology Advanced technology that allows for quick turnaround time. New valuation product/service will be officially launched in August

17. 16 Mercer Benefits project opportunities Benefits Plan Design  Review current programs to identify if they are value for money and to determine where immediate cost savings can be achieved through cost- sharing, eligibility, coverage and scope changes.  Benchmark plans to ensure that they are not more generous than they need to be and remove coverage for luxury items.  Consider more cost-sharing or limits for inpatient and outpatient expenses to help save money while providing employees with a financial incentive to manage their own health care costs. Evaluate harmonization of benefits where multiple operations/entities exist in one country with different benefit designs.  Review local plan design to ensure it is in line with your regional benefit strategy. Cost savings are available when inconsistencies are removed and benefits are restructured to a more sustainable level.

18. 17 Mercer  Conduct an analysis on the key benefit plan cost drivers to identify the underlying root cause.  Understand how to use your health management program to contain costs, improve productivity and impact positively on talent management.  Put your current health management measures under the microscope to determine the gaps and inefficiencies in your current program.  Determine the health risks in your employee population.  Assess the ability of your health and wellness measures to cope with those risks.  Create an integrated health and wellness program that addresses the main risks in your employee population. Benefits project opportunities Health Risk Management

19. 18 Mercer Benefits project opportunities / wins Case Study A US based multinational with a large operation in India was facing rising health plan cost increases of 45% per year with little incentive for employees to manage costs. Additionally there were significant gaps in coverage based on employee needs/health risk; however given the economic down turn there was no budget to add new components. Mercer developed and is implementing a 3 year plan with short, medium and long term cost containment/health risk management elements which will generate immediate savings of USD$1,000,000. Mercer was able to achieve this by: – Facilitating the development of an integrated benefit and health strategy; – Identifying spend that did not support organisational objectives; – Redesigning the employee benefit program to refocus monies/resources from treatment to prevention through plan design – Introducing and implementing a positive health program – Identifying a strategy to make employees smarter consumers of health care – Identifying ROI metrics

20. Marketing Resources

21. 20 Mercer Sites where you can find benefits sales information Mercer Link http://home.mercer.com/IPS/Prod_Info/benefits/BenefitsMonitor_APAC.a sp  Contains marketing materials for consultants and link to access MBM APAC iMercer http://www.imercer.com/content/asia/mbm.aspx Information on MBM  MBM APAC link for clients access

22. 21 Mercer Marketing Resources – Benefits Cheat sheet (New!) – Compendium of Benefits survey by country or Asia Pacific (with participant list, table of contents etc) (New!) – Benefits and MBM Brochure – MBM Flyer – Powerpoint presentation on Introducing MBM – PDF of ‘Introducing MBM’ – Sample reports – Launch of MBM PPT with screenshots (for events) – MBM Clip/Demo – Point of View articles – Press releases – Mercerlink  Consultant User Guide  Client User Guide  Client and Consultant FAQs – Training – Webinars – Guide to filling DCKs

23. Q & A session

24. Appendix

25. 24 Mercer Regional Benefits Strategy & Plan Design Benefit Plan Objectives For Design, Delivery, Financing and Risk Management Governance Structure/Processes Including Roles and Responsibilities / Accountability / Decision Making (Local vs. Regional vs. Global) – “Rules of the Road” Design (e.g., positioning, core benefits) Delivery (e.g., insurer/vendor relationships, communication, administration) Financial (e.g., multinational pooling, cost containment, insurance vs. self insurance) Risk Management (e.g., health, statutory and accounting requirements) Tactical Strategic

26. 25 Mercer Plan Design Cost containment - possible solutions Health Manage ment Solution s Financi ng Solutio ns Deliver y Solutio ns Design Solutions  Flexible benefits and defined contribution structures  Coverage and benefits scope  Cost sharing  Individual worksite programs  Eligibility  Insurance pricing and negotiations  Health vendor pricing and negotiations  Self insurance and profit sharing  Multinational pooling and use of captives  Cash flow management  Administration outsourcing  Regional broking  Vendor management  Claims management  Consumerism education  Wellness  Health risk management  Disease management  High cost case management  Absence management Cost Shifting (to Employees) Cost Management

27. 26 Mercer Regional Discount Structure DISCOUNT is based upon total spend value ($) & is an incremental discount % based on a 'tier' system – not limited to benefits alone and is applicable for centralized billing only Total Spend Value (USD)Discount (%) < 5,0000% 5,001-10,0005% saving on $5,000 10,001 -20,00010% saving on the next $10,000 increment 20,001 – 50,00015% saving on the next $30,000 increment 50,001 – 100,00020% saving on the next $50,000 increment

28. 27 Mercer Regional Discount Structure: An Example Breakdown of Total Spend value (USD 30,000)Discount (USD) $5,0000 =5% * 5,000 = 250 $10,000= 10% * 10,000 = 1,000 $10,000= 15%*10,000 = 1,500 Total spend value = USD 30,000Total Discount = USD 2,750