SAES surveyed on the relative importance of 18 megatrends

1. Energy Volatility & Rise of Alternatives Connectivity / Web 2.0 Global Warming & Rise of Green Products Rise of Services Focus on China/RDEs Rise of Urbanization/ infrastructure Aging demographics Rise of Trust Economy Globalization RDE* challengers Risk & Security Focus Innovation imperative Economic volatility Global divides Rise in natural disasters Health spending /biotech Entertainment/ celebrity Health & wellness SAES surveyed on the relative importance of 18 megatrends *Rapidly Developing Economy

2. Results of the survey – importance of 18 megatrends Importance for Work Most Important Aging Demographics Aging Demographics Economic Volatility Global Warming Energy Volatility Globalization Economic Volatility Global Warming Energy Volatility Globalization Connectivity Health Spending Innovation Rise Asia Rise Services Global Divide Trust & Transparency Least Important Health & Wellness Rise Natural Disasters Rise Natural Disasters Urbanization RDE Challengers Risk & Security Entertainment/Celebrity Urbanization RDE Challengers Risk & Security Entertainment/Celebrity High Medium Low

3. Aging Demographics Rise Natural Disasters Health & Wellness Global Warming Globalization Trust & Transparency Energy Volatility Health Spending Economic Volatility Urbanization Connectivity Rise Services Risk & Security Innovation Global Divide RDE Challengers Rise Asia Entertainment/Celebrity Results of the survey – understanding of 18 megatrends Understanding for Work Most Understood Aging Demographics Rise Natural Disasters Health & Wellness Global Warming Globalization Least Understood Global Divides RDE Challengers Rise Asia: China/India Entertainment/Celebrity High Medium Low

4. Aging Demographics Economic Volatility Global Warming Energy Volatility Globalization Connectivity Health Spending Innovation Rise Services Rise Asia Trust & Transparency Health & Wellness Global Divide Rise Natural Disasters RDE Challengers Urbanization Risk & Security Entertainment/Celebrity Your trend responses5 Hot Spots; 9 Blind Spots; 4 Reality Checks Pervasive IMPORTANCE Substantial Blind Spot Hot spot Noticeable No action required Reality Check Unimportant Not understood Somewhat Understood Well Understood Expert 2 K N O W L E D G E

5. Top opportunities & risks for South Australia Biggest Opportunity for South Australia Biggest Risk for South Australia • Aging Demographics • Energy Volatilty/rise Alternatives • Connectivity • Global Warming/Green Products • Rise Asia • Urbanization/ Infrastructure • Rise Services • Risk & Security • Trust & Transparency • Innovation • Globalization/Isolationism • Rise Natural Disasters • Economic Volatility • Global Divides • RDE Challengers • Health & Wellness • Entertainment/Celebrity • Health Spending/Biotech • Education • Export Mineral Resources • Loss Human Talent/Migration • Water scarcity • Lack clear vision/visionary leadership • High • Medium • Low

6. Top opportunities & risks for South Australia (II) Biggest Risk for South Australia Biggest Opportunity for South Australia "Capacity for innovation across every sector (manufacturing, health technology, IT, energy efficiency) and capacity for innovative policy development within government itself will present significant opportunities" "Increasing proportion of the population who are elderly and consuming more services" "Lack of water for regional industries: We can provide for human needs from desal and other innovative means but the regions fundamentally depend on bulk water for economic sustainability" "We have natural and social intangibles that are very marketable to an increasingly fast-paced, overdeveloped world - eg eco-tourism... developing environmental solutions to climate change" "Exploitation of niche areas of excellence, eg hub of research for renewable energies, development of the renewable energy sector" "Balancing effort to adapt to climate change with effort to reduce CO2 emissions" "Climate change leading to more natural disasters" "Modern communications technology, if managed well, can help to overcome our physical isolation and lack of critical mass so that we are deeply connected with innovative circuits in other parts of the world." "The ageing demographic, and related to this, the increasing demand for health services and their cost, which imposes a heavy cost on the State Government. "

7. Additional trends sighted as most important for the state (I) Water security Skills and education 26% of respondents 14% of respondents "The wateringofAustralia... a first world country that does not have adequate control over its own water supply [may] soon become viewed as a second and third world country" "Making the most of our niches (eg specialised food). For this we need smart trained tertiary graduates" "High skills languages, literacy and numeracy – increasingly [the] key platforms to high skill labour force" "The unsustainability of State Plan growth targets and the infrastructure decisions they drive in the face of water shortages..." "Improved opportunities for technically oriented education and training" "Adapting economic and population growth to a world where water must be treated as a scarce and highly valuable commodity" "Skills and capability development across the full spectrum of skills including trades – insufficient investment for the longer term" "Sensibly busting through some of the sacred cows in SA Government – pricing water while maintaining human supply needs" Enviro & climate change 14% of respondents "Increasing water scarcity under climate change...systems, models, technologies, planning, strategies and policies for water management. Australia has been poor at this so far and it has serious potential consequences" "Positioning industries such that they can adapt to climate change (next generation of technology)... South Australia is particularly vulnerable" "Development of public transport systems to improve mobility, reduce carbon emissions and support economic growth" "The decline in potable water worldwide... will create economic opportunities for South Australia" "If we are to establish SA on the map, being a world leader in managing water resources... would be a good place to start" "The state's reputation as a place that produces clean and green natural sources of food"

8. Additional trends sighted as most important for the state (II) Growing the economy Community 10% of respondents 7% of respondents "Tailoring our economy to niche markets (eg aquaculture and other foods)" "Adelaide at times seems hesitant to move forward and embrace change. While it feels comfortable with the past, it is becoming restless and is looking for a new image, but not quite sure where it is" "Don't just focus on China as the mega-star market. India should be very important to us. We have very strong historical ties that should be developed" "Building a culture of strength and resilience within our population through tough times..." "Planning for long term competitiveness of South Australia. What are our targets and how do we get there? Which technologies should we focus on?" "As families experience greater stress, their capacity to support one another will be tested with a risk of greater social divide, unrest etc" "Positioning the State away from inefficient manufacturing and choosing other ways to be competitive" Disadvantaged groups Ageing population 3% of respondents 4% of respondents "... one trend that can go unnoticed is the tendency to leave behind already disadvantaged groups in our society... Government needs to be ever-vigilant to this and mitigate the risks through the formulation of 'inclusive' policies." "Lack of opportunities to wind down involvement in the workforce rather than stopping cold in relation to retirement. More flexiblearrangements that would allow very senior staff to step back in hours and intensity but still provide advice and support to organisations would be beneficial." "We are very well off by comparison to developing countries. We have an obligation to improve the life outcome for our most disenfranchised - our own Aboriginalpeople."

9. Additional trends important to people's own life (I) Water and Environment Community, ageing & youth 17% of respondents 18% of respondents "Focus on the importance of community, volunteering and 'helpyourneighbour'" "Effective long term strategies to enable sustainable, affordable water use – my lawn has died and my walls are cracking up" "Decrease in social capital arising from individuals' engagement with the community... We need to reengage as a community, in particular in the metropolitan area" "Planning for our cities that are sustainable – ie recycle waste water, storm water etc" "Declining role/influence for established institutions in civil society (eg organized religions, community groups)" "Water shortages and the impact on South Australia's environment" "While I think it is important to recognise and plan for an ageing population, there still needs to be significant emphasis on employment, lifestyle and opportunity for the young" "Water availability and quality" "Lack of young population/carers as a service industry for ageing population" "Maintenance and access to South Australia's unique environment and ecology" "Young people's use of technology and lack of time for other generations to keep pace" "Generation X and Y's pursuit of happiness and prosperity may blind them to the socialconscience needed to care for those more vulnerable" "Biodiversity – the natural world and its vulnerability to both climate change and demand for natural resources"

10. Additional trends important to people's own life (II) Public Sector & Government Family & Work-Life Balance 9% of respondents 12% of respondents "Reinventing and revitalising the public service such that it encourages innovation and risk taking..." "Families and social changes – including the changing role of women in society, the challenges of caring..." "The constant and increasing criticism and questioning of the credibility and reputation of SA's public servants" "Greater shared parenting responsibility and a greater emphasis on early childhood development leading to different work-life arrangements and demand for child services" "The limits of traditional representative democracy are appearing because of the increasing complexity of society, the overwhelming amount of information of real time media, and need for big money to be re-elected" "Work/life balance issues – what are the megatrends on leisure time? It was predicted we'd have more but it's gone the other way. Will it keep getting worse? Globalisation 7% of respondents "Work/life balance is increasingly difficult to achieve. All sorts of pervasive flow-on effects" "My daily food intake (including fruit vegetables and fish) is increasingly sourced from overseas" "Competitivebarriers that artificially keep prices for certain goods higher in Australia than other countries" "The importance of family" "Unknown viruses and resistant bacteria are emerging that are untouched by existing medicines" "Greater emphasis on the simple and enjoyable verities of life as a response to the greater uncertainties in the wider world" "Keeping abreast of the exponential knowledge growth"