Grow your business through smart cashflow management

1. Grow your businessthrough smart cashflow management Macquarie Cash Management Trust

2. Disclaimer • Macquarie Investment Management Ltd ABN 66 002 867 003 (MIML) is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959 and MIML’s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of MIML. • The Macquarie Cash Management Trust is offered by MIML. In deciding whether to acquire or continue to hold an investment, you should consider the current Product Disclosure Statement (PDS) which is available from us. • This information is provided for the use of licensed financial advisers only. Financial advisers are prohibited from passing on this information to any retail client. In no circumstances is it to be used by a potential client for the purposes of making a decision about a financial product or class of products.

3. Agenda • Your Clients – changing “Consumulators” into “Accumulators” • Your Business – the benefits of a cashflow management system • SMSFs – the drivers to profitable administration • Why Macquarie? - Commitment, value and partnership

4. 1. Your clients Changing “Consumulators into Accumulators”

5. 1. Your clients Income Statement Income Expenses vs Balance Sheet Liabilities Assets vs How healthy is your cost to income ratio?

6. Assets pay income e.g. shares; investment property; etc Liabilities cost money e.g. home; boat; car; etc 1. Your clients Cashflow patterns of assets and liabilities Assets Liabilities

7. 1. Your clients Income Expenses Assets Liabilities

8. 1. Your clients Cashflow pattern: Consumulators Income Expenses Salary = Consumulators Assets Liabilities

9. 1. Your clients Cashflow pattern: Accumulators Income Salary Expenses = Accumulators Assets Liabilities

10. $6,000 $3,000 $2,000 $1,500 1. Your clients CashflowSystem Expenses $500 Assets $200,000 Liabilities $300,000

11. or Accumulators? Consumulators?

12. to replace employment cashflow to meet cost of living cashflow Accumulators = Financial Independence Building personal cashflow

13. Where are you adding real value? Is your client time spent managing failed financial “dependence” strategies?Or Is your client time spent building successful financial “independence” strategies?

14. Consumulator = Financial “DE”pendence Asset value Home renovations $ New car purchase Age 55 Years of financial “de”pendence

15. Accumulator = Financial “INDE”pendence Cashflow Free cashflow Cost of living Financial independence $ New car purchase Home renovations Age 55 Years to financial independence

16. Cashflow to Financial Independence Mortgage School fees School fees Years

17. 1. Your clients – key take out The right system in the right place, will deliver the right results

18. 2. Your business The benefits of a cashflow management system

19. 2. Your business options VALUE PREMIUM EXPENSIVE

20. 2. Your business options VALUE PREMIUM EXPENSIVE • Disconnected and no adviser visibility • Infrastructure build towards consumption • No revenue to adviser • Account fees dependent on account type and usage • Low interest to client ConsumerBank account

21. 2. Your business options VALUE PREMIUM EXPENSIVE • Adviser visibility & third party access • Informative statements • Downloads & connectivity • Superior/tailored services • Fee deduction service • Business revenue • Competitive interest rate • Disconnected and no adviser visibility • Infrastructure build towards consumption • No revenue to adviser • Account fees dependent on account type and usage • Low interest to client ConsumerBank account Cashflow management system

22. 2. Your business options VALUE PREMIUM EXPENSIVE • Access to wholesale m/funds and direct equities • Consolidated tax reporting • Asset Allocation/strategy • Adviser visibility & third party access • Informative statements • Downloads & connectivity • Superior/tailored services • Fee deduction service • Business revenue • Competitive interest rate • Disconnected and no adviser visibility • Infrastructure build towards consumption • No revenue to adviser • Account fees dependent on account type and usage • Low interest to client Admin/Wrap Service ConsumerBank account Cashflow management system Cashflow management System

23. 2. Your business goals

24. 2. Your business goals Savings in administration $ 30,000 Total net revenue $114,900 Approx. growth in business value $350,000 Figures are for illustrative purposes only

25. $20m $350,000 $300k $5,250 $400k $7,000 2. The business revenue search engine Adviser 2 Adviser 3 Adviser 1 Cash management system Amount invested Revenue Plus $15m additional FUA Figures are for illustrative purposes only. Revenue payment is based on 1.75% to adviser.

26. 2. What is the opportunity? $869,899,000,000 Source: www.rba.gov.au/Statistics/Bulletin/B03hist.xls

27. 2. Your business goals – key take out A more robust model increases the value of your business

28. 3. SMSF The drivers to profitable administration

29. 3. SMSFs – drivers to profitable administration VALUE BENEFITS Adviser visibility & third party access Proactive advice, management and integration Relationship growth with Accountants Detailed informative statements Fast and easy administration & compliance Reduce back office work Downloads & connectivity Tailor built services The right functionality for the job Fee deduction service Quicker revenue, no paperwork Business revenue Profitable service offering Competitive interest rate Compliance management Profitable business performance Cashflow management system =

30. 3. Keep the cash flowing ATO – SPAA Conference Mar 2006

31. 3. SMSFs – key takeout Better results, greater compliance, cheaper delivery – it works

32. 4. Why Macquarie Commitment, value and partnership

33. 4. Why Macquarie? % 403020100 $mil 150010005000-500-1000 CMT Market Share 2005-6 Net Funds Flow 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 = Macquarie CMT Source : Plan for Life CMT Market share Report 2006

34. How we can help • Business Development Managers are here to help you:- Implement a cashflow management strategy- Grow the value of your practice, and grow your client value- Help you to segment your client base- Provide client presentations to help educate your clients- Increase your business performance- Train your staff on the strategy of implementing the system

35. How we can help • Training Relationship Managers are there to help you:- Integrate a cashflow management system into your office- Train and educate your staff on how to use the system- Streamline and provide greater business performance- Provide ongoing support • National Adviser Contact Centre are there to help you:- There are over 180 staff ready to answer you and your clients calls- Highest level of personal service to provide you with the ongoing support

36. How we can help • Market leading Online systemyour.clients@macquarie is the market leading online system built for you! It is designed to increase the adviser-client and intermediary relationship, and provide greater performance for your business. • Smart Cashflow Management Educational material and guides for you and your clients.Or visit our online toolkit www.macquarie.com.au/cashflowtoolkit

37. 4. Why Macquarie? The market leader today, and committed for the long term

38. In summary… Your Clients Put the right system in the right place & the right results will come Your Business A more robust model increases the value of your business SMSFs Better results, greater compliance, cheaper delivery – it works Partnership The market leader today and for the long term

39. Grow your businessthrough smart cashflow management Macquarie Cash Management Trust