1. STRICTLY CONFIDENTIAL Positioning for Growth Tasmanian Strata Industry Tim MacKenzie Associate Director Friday 9 th August

2. STRICTLY CONFIDENTIAL Contents 01 02 03 04 Key reasons for organic growth Technology and value Business structures Tasmania’s market place

3. STRICTLY CONFIDENTIAL 01 Key reasons for organic growth

4. PAGE 4 Aspects of client service that make a successful business  Spending time with clients face to face  Regular communication by mail  Regular communication by email  Responding quickly to client requests  Inviting clients to events  Offering discounts/discounting fees  Consistency of relationship between strata manager and client  Other * Based on the 2013 Strata Benchmarking research

5. PAGE 5 What do you compete on?

6. PAGE 6 Means of growing business

7. STRICTLY CONFIDENTIAL 02 Technology and value

8. PAGE 8 Technology

9. PAGE 9 Technology in Strata time line Technology and value

10. PAGE 10 Staff training needs

11. STRICTLY CONFIDENTIAL 03 Business structures

12. PAGE 12 Typical Strata business model

13. PAGE 13 Typical Strata business model

14. PAGE 14 Reason for increase in profit

15. PAGE 15 Organic net change in plans/lots <2000 lots2000-50005001-999910,000+ Average net lot change (excluding acquisitions and sales)191625903394 Average net lot change (excluding acquisitions and sales) %32%25%16%3% NSWVICQLDWA Average net lot change (excluding acquisitions and sales)639418286161 Average net lot change (excluding acquisitions and sales) %13%19%10%9% <2000 lots2000-50005001-999910,000+ Average net plan change (excluding acquisitions and sales)16.941.46416.1 Average net plan change (excluding acquisitions and sales)27%20%16%2%

16. PAGE 16 Change in profit versus prior financial year

17. PAGE 17 Distribution of expenses 17

18. STRICTLY CONFIDENTIAL 04 Tasmania’s market place

19. PAGE 19 Where is the industry sitting? Victoria 10 years ago WA 5 years ago? Real Estate Industry Sales = $$$ to Individual client Property management = Rental $$$ to individual client Strata Management = $$$ From client to manage operation, risk and function of community Tasmania’s market place

20. PAGE 20 Tim MacKenzie 03 9635 9272 Tim.Mackenzie@macquarie.com macquarie.com.au/strata Contact us

21. STRICTLY CONFIDENTIAL Thank you Questions?

22. PAGE 22 Important legal notice This presentation has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence no. 237502 (“Macquarie”) for general information purposes only, without taking into account any potential investors’ personal objectives, financial situation or needs. Before acting on this general information, you must consider its appropriateness having regard to your own objectives, financial situation and needs. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service and nothing in this presentation shall be construed as a solicitation to buy or sell any financial product, or to engage in or refrain from engaging in any transaction. The information is current as at 13 February 2013. Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Statistics and information have been sourced from the Macquarie Bank Limited, Macquarie Relationship Banking Strata Management Benchmarking Project 2012. The economic analysis is based on information obtained from sources believed to be reliable but Macquarie does not make any representation or warranty that it is accurate, complete or up to date. Macquarie accepts no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. No member of the Macquarie accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this information. © Copyright is reserved throughout. The information contained in this presentation must not be copied, in whole or part, or distributed without the express permission of Macquarie.