Overview

1. Study Methodology India Australia Overview Overview U.K. Study of International Employee Benefits Trends Australia Mexico

2. MARKET PROFILE • 16th largest global economy37 • GDP of $681 billion38 • Annual national income per capita: $35,99039 • Developed economy, capitalist system • Dominated by services sector (70% of GDP)40 • Working age population (ages 15-64) expected to grow from 13.7 million in 2005 to 15.5 million in 203041 • Median age 36.7 years42 • Life expectancy at birth: 80.6 years43 Australia – Profile Overview India U.K. Study Methodology

3. Superannuation is a government-regulated, mandatory retirement savings program for all Australian workers; 9% of employee salary is contributed annually by employers; additional contributions are voluntary.44 • All superannuation funds have an investment component; many also have, on either a voluntary or mandatory basis, an insurance component: term life, disability and income protection.45 • Employees may purchase additional insurance benefits if offered, and costs are deducted from their investment account.46 • Government covers all Australians, but private health insurance is common.47 BENEFITS AT A GLANCE Australia – Profile

4. TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES AUSTRALIA: MOST IMPORTANT BENEFITS OBJECTIVES OF ALL EMPLOYERS 89% RETAINING EMPLOYEES INCREASING EMPLOYEE PRODUCTIVITY 87% INCREASING EMPLOYEE JOB SATISFACTION 82% ADDRESSING DIVERSE NEEDS OF EMPLOYEES 71% HELPING EMPLOYEES MAKE BETTER BENEFITS DECISIONS 68% ATTRACTING EMPLOYEES 66% HELPING EMPLOYEES MAKE BETTER FINANCIAL DECISIONS 65% REDUCING HUMAN RESOURCES ADMINISTRATIVE COSTS 64% Percentages have been rounded to nearest whole number. Australia – Employer Perspective Australian employers are feeling pressure to attract and retain talented workers. In 2007, 61% of Australian employers surveyed experienced difficulty in finding the right people to fill jobs, up from 32% in 2006 and significantly above the global average of 41%53

5. AUSTRALIA: EMPLOYEES’ TOP CONCERNS ABOUT RETIREMENT 49% OUTLIVING RETIREMENT MONEY BEING ABLE TO AFFORD HEALTH CARE IN RETIREMENT YEARS 44% HAVING TO WORK FULL-TIME OR PART-TIME TO LIVE COMFORTABLY IN RETIREMENT YEARS 43% PROVIDING FOR YOUR SPOUSE/PARTNER’S LONG-TERM CARE NEEDS 39% PROVIDING FOR YOUR OWN LONG-TERM CARE NEEDS 38% HAVING ENOUGH MONEY TO TAKE CARE OF ELDERLY PARENTS OR IN-LAWS 29% TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES Percentages have been rounded to nearest whole number. Australia – Employee Perspective 41% of Australian employees surveyed hope to retire in their 50s – 45% in their 60s, given their ambitions plans for retirement and long life expectancy, most Australians are worried about having enough money to afford it. 43% understand retirement needs 42% planned for retirement 42% determined life insurance needs 35% determined income protection needs

6. Australia’s superannuation funds have succeeded in providing workers with fundamental coverage for retirement and family protection in case of disablement, but this success appears to have bred a degree of complacency among workers when it comes to savings and insurance. However, the need for additional financial advice and education about their value opens a door for growth in employer-provided benefits. As employees become aware that economic and demographic realities could threaten their visions of financial security and retirement lifestyle, they will increasing look to augment their current superannuation coverage. This will provide an opportunity for employers looking to improve employee retention rates, as well as for super funds looking for ways to grow their asset base: Benefits Strategies for Tomorrow, Today • In creating benefits plans, employers should first focus on educating employees about financial risks and appropriate coverage. • Financial planning services will likely prove appealing to the large share of Australian employees that are worried about paying for retirement but have done little to prepare. • Employers may find good results in constructing benefits packages that provide a high degree of personalization, with offerings that span insurance, investments and work/life options. Australia - Conclusions Study Methodology