1. Driving Change in a Changing Industry Andrew Fisher – Chief Executive 13 th October 2011

2. “In times of change, the greatest handicap is experience” John Paul Getty Background

3. An awful industry doing terrible things Low company morale Series of poor corporate ‘transformations’ High staff turnover Mis-selling endemic Poor economics – small and loss making Wrong culture/attitude Background

4. Sir Callum McCarthy, chairman of the Financial Services Authority, said the system "fails miserably" to create long-term relationships with customers and questioned whether it served the interests of banks, insurance companies or independent financial advisers. Financial Times, September 18 th 2006 “I note that as at May 2006, the top 21 IFAs had turnover of £640 million, but operating losses of £22 million – twice that of a year earlier” Sir Callum McCarthy The Market

5. The IFA Industry was addicted! IFA CommissionsLife Companies Totally dependent Need status quo No way out/capital Feed on dependency Leads to non compliance Exploit wherever weakness ‘Addicts’‘Drug Dealers’ And very poorly qualified!

6. Strategically IFA’s didn’t understand Adam Smith – Specialism Technically Do nothing or mis-sell everything – Scandals Financially Millfield, Berkeley Berry Birch – Loss making or bust Regulatory ‘Best Advice’ does not exist as a term in the FSA lexicon – Poor understanding – Appropriate advice Morally 70% of Life distribution goes through IFA’s – Soft commissions In 2006 the IFA Industry was sick!

7. Strategically Thousands of unfocussed outlets – No customer segmentation Technically Poor physical distribution and weak store layout – Empty shelves and long queues Financially Small/negative margin – Limited capital for expansion Regulatory Luckily they didn’t have a regulator – They would have been shut down Morally Heavily dependent on sales overriders (bribes) In the 80’s Food Retailing was sick!!

8. Tesco – A case study From: 1980’sPile it high and sell it cheap To: 2000’sFocus on the customer Drive efficiency Quality product The No. 1 retailer in the UK Retailing – what changed?

9. Branded Manufacturer vs. Distribution Market Capitalisation 1980 Pile it high – sell it cheap Tesco £180m Unilever £800m

10. Manufacturer vs. Retailer Every little helps Market Capitalisation 2011 Unilever £26,000m Tesco £30,000m

11. To be the leading Wealth Adviser in the UK Independent, holistic financial planning supported by discretionary investment management Manifesto - 19 th June 2007: Fees not Commission Education not Ignorance Integrity not Stealth Holistic not Limited Independent not Tied The Towry Approach

12. Building Blocks I Market opportunity Regulatory pressure RDR + TCF + PBR Darwinian drive Corporate transactions

13. Building Blocks II Culture and values – Team approach – Consultation – Decision making Core values – Honesty and integrity – Focus – Excellence – Teamwork – + 1

14. Communicating the Message I To our clients – Statements – Calling direct – Client letters – Comfort seminars – COI seminars – Industry seminars – Press ‘thought pieces’

15. Communicating the Message II To our people – Roadshows – Presentations – Intranet – Shareholders conference – Induction programme – Masters programme – TCC – Staff survey – ‘Ask Andrew’

16. Set backs and road blocks Industry resistance Redundancy programme Economic climate EJ publicity

17. Results so far – AUM growth Closing AUM (£bn)

18. EBITDA growth £m Breakeven

19. Financial Conclusions What if there’s no crisis? – Invent one Apply the 80:20 rule Don’t forget to pay the bills Remember why you’re in the swamp Give people ownership

20. Practical Conclusions A thousand small steps – Unless you’re crossing a gorge Put the fire’s out first Build consensus – Unless everyone else is wrong Publicise success – Recognise failures Deliver the plan

21. Overall Perspective You cannot over communicate Everything needs to be connected Never let a good crisis go to waste Celebrate success Culture is everything

22. Thank you