Grow your business

through 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

1. Your Clients – changing “Consumulators” into “Accumulators”

2. Your Business – the benefits of a cashflow management system

3. SMSFs – the drivers to profitable administration

4. Why Macquarie? - Commitment, value and partnership

1. Your clientsChanging “Consumulators into Accumulators”

5

1. Your clients

Income Statement

Balance Sheet

ExpensesIncome

Assets Liabilities

How healthy is your cost to income ratio?

vs

vs

6

1. Your clients

Cashflow patterns of assets and liabilities

Liabilities

AssetsAssets pay

income e.g.

shares;

investment

property;

etcLiabilities

cost money

e.g. home;

boat; car;

etc

7

1. Your clients

Income Expenses

LiabilitiesAssets

8

1. Your clients

Cashflow pattern: Consumulators

Income Expenses

Assets

Salary

= Consumulators

Liabilities

9

1. Your clients

Income Expenses

LiabilitiesAssets

Salary

= Accumulators

Cashflow pattern: Accumulators

10

1. Your clients

Expenses

Liabilities$300,000

Assets$200,000

$6,000 $3,000

$2,000

$1,500

CashflowSystem

$500

11

Consumulators?

or

Accumulators?

12

Accumulators = Financial Independence

Building personal cashflow

to replace

employment cashflow

cost of living cashflow

to meet

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

$

Years of financial “de”pendence

New car

purchase

Home renovations

Age 55

Asset value

15

Accumulator = Financial “INDE”pendence

$

Years to financial independence

New car

purchase Home renovations

Financial

independence

Free cashflow

Cost of living

Age 55

Cashflow

16

Cashflow to Financial Independence

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18cost of living

free cashflow

School fees

MortgageSchool fees

Years

17

1. Your clients – key take out

The right system in the right place, will deliver the right results

2. Your businessThe benefits of a cashflow management system

19

2. Your business options

EXPENSIVE VALU

EPREMIUM

20

Consumer

Bank account

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

2. Your business options

EXPENSIVE VALU

EPREMIUM

21

Consumer

Bank account

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

Adviser visibility & third

party access

Informative statements

Downloads &

connectivity

Superior/tailored

services

Fee deduction service

Business revenue

Competitive interest

rate

Cashflow

management

system

2. Your business options

EXPENSIVE VALU

EPREMIUM

22

Consumer

Bank account

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

Adviser visibility & third

party access

Informative statements

Downloads &

connectivity

Superior/tailored

services

Fee deduction service

Business revenue

Competitive interest

rate

Cashflow

management

system

Access to wholesale

m/funds and direct

equities

Consolidated tax

reporting

Asset

Allocation/strategy Admin/Wrap

Service

Cashflow

management

System

2. Your business options

EXPENSIVE VALU

EPREMIUM

23

2. Your business goals

EXPENSIVE VALUE PREMIUM

Consumerbank account

Cashflowmanagement

system

Cashflow Mgt System

+Wrap/Adminportfolio

Current active 130 50 20 200

Target 60 100 40 200

Current inactive 140 50 10 200

New - 20

24

2. Your business goals

New services Average balance

Revenue

Cashflow Management System

120 $30,000 $ 9,900

Wrap/Admin 30 $250,000 $ 75,000

$ 30,000

$114,900

$350,000

Savings in administration

Total net revenue

Approx. growth in business value

Figures are for illustrative purposes only

25

Cash

manageme

nt system

Adviser 1

2. The business revenue search engine

Adviser 2 Adviser 3

$300k

$5,250

$400k

$7,000

$20m

$350,000

Figures are for illustrative purposes only. Revenue payment is based on 1.75% to

adviser.

Amount

investedRevenue

Plus $15m additional FUA

26

2. What is the opportunity?At-call deposits with Australian Banks, June 1989 - Dec 2006

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Dep

osi

ts (

$ M

illio

n)

$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

3. SMSFThe drivers to profitable administration

29

Cashflow management

system

1. 3. SMSFs – drivers to profitable administration

VALU

EBENEFIT

S

Profitable business

performance=

Adviser visibility & third party

access

Downloads & connectivity

Tailor built services

Fee deduction service

Business revenue

Competitive interest rate

Detailed informative

statements

Proactive advice, management and

integration

Fast and easy administration & compliance

Reduce back office work

The right functionality for the job

Quicker revenue, no

paperwork Profitable service offering

Compliance management

Relationship growth with

Accountants

30

3. Keep the cash flowingAsset Class

Cash 30

Managed Funds 4

Aus Equities 24

Direct Property 7

Public Trusts 10

Other 25

ATO – SPAA Conference Mar 2006

31

3. SMSFs – key takeout

Better results, greater compliance, cheaper delivery – it works

4. Why MacquarieCommitment, value and partnership

33

4. Why Macquarie?

Source : Plan for Life CMT Market share Report 2006

= Macquarie CMT

CMT Market Share 2005-6 Net Funds Flow

1 2 3 4 5 6 7 8 9

10

40

30

20

10

0

1 2 3 4 5 6 7 8 9

10

1500

1000

500

0

-500

-1000

% $mil

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 system

your.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

Grow your business

through smart cashflow management

Macquarie Cash Management Trust