FIA Media perception audit and PR campaign: October 2010 Prepared for FIA

Overview The perception research The qualitative results Research summary Campaign to date Results Questions

The perception research

Why conduct a media audit? Before a new media communications campaign is launched it is imperative to gauge what the current brand perception is, in order to affect it. A media audit is essentially a ‘dipstick research’ tool across a wide spectrum of media. In order to gauge whether or not a media campaign has been successful a re-audit is recommended six-months to a year later - with the same media - to ascertain if perceptions have in fact changed. Note that the media audit was conducted within the first two weeks of Epic Communications taking on the FIA account, prior to the PR campaign. For the FIA, Epic Communications has audited key business and consumer journalists in the following arenas: Mainstream Newspapers (Business / finance editors / Consumer personal finance) Financial industry trade Online Radio Television

Perception research Epic Communications conducted dipstick research among 20 key South African journalists across 22 media into: The current communication process between the FIA and the media : The level of brand awareness among the media; The level of understanding of the role that the FIA plays in SA’s financial services space; The level of understanding as to how the FIA differs from other financial services industry bodies; Knowledge of spokespeople / representatives; Frequency of content delivery; General comments. Epic Communications surveyed: 3 x National newspapers 2 x Regional newspapers 2 x Financial weeklies 1 x radio 2 x online 3 x television 5 x Financial trade magazines 2 x consumer glossy magazine (with finance / investment section)

Perception research cont... Financial Mail: Weekly financial magazine focusing on business and investment issues with an investigative journalistic approach. (Circulation: 30 200) Business Report: The most widely read South African daily business newspaper - published by Independent News and Media and carried by The Star, Cape Times, The Mercury, Pretoria News and Sunday Tribune. Covers local and international business news and offers insight from leading business experts. (Circulation: 282 968) Sake24: Business supplement carried by three daily newspapers Beeld, Die Burger, Die Burger Oos-Kaap and Volksblad. (Circulation: 484 785) SAFM: National radio station, focusing primarily on decision makers seeking insightful and enabling information to keep themselves informed. Age 35-49, LSMs 7-10 (Listenership: 602 000) iAfrica.com: iafrica.com is South Africa’s most established portal and one of the biggest web brands with one of the largest, loyal user bases in the country. (Unique Users: 450 000) CNBC Africa: CNBC Africa is the continent’s first 24 hour international business channel. It delivers real-time information and insightful analysis about African business and Africa’s financial markets. CNBC Africa also presents regular updates from CNBC affiliates around the world including Europe, Asia and the US. The channel offers a unique global perspective from an African platform. (Viewership: 1.6 million)  Rapport: Major newspaper containing full mix of editorial. See separate entries for supplements: Sake Rapport, Rapport Tydskrif, Kaap Rapport and Gauteng Rapport. Afrikaans speaking population nationally. Every week, cover day of Sun. (Circulation 295 694) Finweek: Major financial and business weekly magazine. Target Financial and business people. (Circulation 30 890)

Perception research cont... The Times: Daily newspaper with a full mix of editorial. Every week, cover days of Mon, Tue, Wed, Thu, Fri (Circulation 140 116) Destiny: Women's magazine combining substantial business content with fashion, beauty and lifestyle. Targets working women LSM7-10, age 25-55. Sold at CNA, Exclusive Books, Woolworths, Pick 'n Pay and other retail outlets. Monthly, cover date 1st of January to December (Circulation 27 619) Enterprise Risk: Official journal of the Inst. of Risk Management SA (IRMSA). Covers the identification and measurement of risk in order to prevent or insure against enterprise exposure.  (Circulation 4 101) RISKSA: Target Professionals in the life, short-term and health insurance sectors, financial planners, brokers and retirement advisors. Covers short term, life and health insurance industry plus risk related news and technology related to the business. (Circulation 6 301) The Witness: Major daily newspaper with full mix of editorial. Includes Job Guide on Mondays and monthly home improvement supplement. English speaking adults in Pietermaritzburg, Natal Midlands plus Durban and rest of KwaZulu-Natal. (Circulation 20 771) Saturday Star: Major weekly newspaper with full mix of editorial. Target English speaking adults, greater Johannesburg Every week, cover day of Sat (Circulation: 108 592) Sarie: A general interest women’s magazine. Includes fashion, decor, beauty, food, crafts, relationships, fiction etc. Target the more affluent Afrikaans speaking woman. Monthly, cover date 1st of January to December (Circulation: 132 646) Money Marketing: Contains analysis of changes within the industry and aspects of the financial services industry. Targets Brokers, independent financial advisers, management companies. (Circulation: 6 840)

Perception research cont... Fin24 South Africa’s leading business and financial weekly, delivering news, analysis and investigative reporting of the highest calibre to readers who are serious about managing their money and succeeding in business. Professionals in the life, short-term and health insurance sectors, financial planners, brokers and retirement advisors. Circulation 382 556 The Witness: Major daily newspaper with full mix of editorial. Includes Job Guide on Mondays and monthly home improvement supplement. English speaking adults in Pietermaritzburg, Natal Midlands plus Durban and rest of KwaZulu-Natal. Every week, cover days of Mon, Tue, Wed, Thu, Fri Circulation 20771 Isolezwe: Daily newspaper with full editorial mix, Zulu interest bias. Zulu speaking adults in kwaZulu-Natal. Every week, cover days of Mon, Tue, Wed, Thu, Fri circulation 95753 Cape Argus: Major afternoon daily with full editorial mix. Includes 3 zoned editions per day. English speaking adults in the Western Cape. Every week, cover days of Mon, Tue, Wed, Thu, Fri 59982   The Times: Daily newspaper with a full mix of editorial. Every week, cover days of Mon, Tue, Wed, Thu, Fri 140116 Rapport: Major newspaper containing full mix of editorial. See separate entries for supplements: Sake Rapport, Rapport Tydskrif, Kaap Rapport and Gauteng Rapport. Afrikaans speaking population nationally. Every week, cover day of Sun 295694 Perception research cont... Etv: As the first free-to-air commercial television station in South Africa. eNews, the flagship news programme, is widely regarded as the most reliable and independent news source in the country and is the most viewed English language news attracting all ages, races and language groups. (Circulation: 17 727 000) Sunday Times: Major weekend newspaper with full mix of editorial. Includes Business Times, specialist and regional editions. Targets English speaking adults nationally. (Circulation: 462 372) Moneyweb: Moneyweb Holdings is an integrated media company focusing on producing independent, high quality investment information. Moneyweb Holdings produces South Africa's leading radio business programme, SAfm Market Update with Moneyweb. (Circulation: 121 610) ITI News : SA Insurance Times and Investments: ITI is the online publication of the Insurance Times & Investments magazine and a complete web portal for the whole financial services sector and its community of product and service providers, financial advisers, policyholders, clients and consumers (Circulation: TBC) Cover: Features short & long term business, brokers and agents, reinsurance, loss adjustment, tax and financial matters, pension news, legal, people and company moves. Has editorial board. Targets Executives and management in short term and life companies, brokers and agents, reinsurers, loss adjusters, risk managers, tax and financial advisors, unit trust and pension fund managers, actuaries, medical aid schemes and others in financial services. (Circulation: 4 500) Summit: Summit follows a looping news format, with key material updated and refreshed hourly from 6pm-11pm, Monday to Friday. Segments in each hour are The News (6pm, 7pm, 8pm, 9pm, and 10pm), the Market Report (7.10pm 8.10pm, 9.10pm 10.10pm), Company News (7.15m 8.15pm etc) and Face to Face (7.20pm, 8.20pm) and so on. (Viewership: 3.5 million)

CAMPAIGN 2: JUNE - SEPTEMBER 09 Audit conducted: Question listing SECTION A: QUESTIONS Have you heard of the FIA? Note: If the answer is ‘yes’ continue on, if not refer to SECTION B’s line of questioning. What is your understanding of the role of the FIA? In your experience, what word(s) best define the FIA? Note: This answer must be quick and ‘off the top of their heads’. Can you differentiate how the FIA differs from other financial services industry bodies i.e. FSB, ASISA, SAIA? What is your perception of financial intermediaries? Have you utilized the FIA for comment on savings, investment, insurance, healthcare issues in the past? Which organizations do you normally use for comment on these issues? What type of information would you like to receive from the FIA? Can you name any of the FIA’s top executives?  Have you had any contact with them for comment on any articles? When was the last time that someone representing the FIA contacted you? How valuable was the information / media release supplied? Would you be interested in receiving media releases from the FIA in terms of their expertise in insurance and investment issues affecting consumers and financial advisers? How do you prefer receiving information (select an option): Direct telephone pitch E-mail New technology methods i.e. Podcasts / blog links, RSS feeds etc.   . CAMPAIGN 2: JUNE - SEPTEMBER 09 Focus on hotel bookings CAMPAIGN 1: APRIL - JUNE 09 Focus on the sale of units

CAMPAIGN 2: JUNE - SEPTEMBER 09 Audit conducted: Question listing cont... SECTION B: QUESTIONS Have you heard of the FIA? No.   Answer: The Financial Intermediaries Association of Southern Africa (FIA) represents more than 15 000 licensed financial services advisers throughout Southern Africa. Its primary purpose is to represent, protect, promote and further the common interests of its members. Who do you normally use for comment on savings, investment, insurance, healthcare issues? Would you be interested in receiving media releases pertinent to the industries in which the FIA operates? How do you prefer receiving information (select one): Direct telephone pitch E-mail New technology methods i.e. Podcasts / blog links, RSS feeds etc. . CAMPAIGN 2: JUNE - SEPTEMBER 09 Focus on hotel bookings CAMPAIGN 1: APRIL - JUNE 09 Focus on the sale of units

The qualitative results: Business media . The qualitative results: Business media

Business media feedback: Brand knowledge On having heard of the FIA brand… “Yes, I know of them” (x7) “No, I don’t” (x3) On knowledge of the role that the FIA plays... “I don’t know” (x5) “Looking out for the needs and interests of financial intermediaries” (x3) “They are the official financial intermediary body and regulatory board” (x1) “They prevent financial bad practice” (x1) The word(s) that best defines the FIA… “I don’t know” (x3) “Broker friend”(x2) “Organisation” (x1) “Professional” (x1) “Regulator?” (x1) “Standardism” (x1) “Large” (x1)

Business media feedback: Brand knowledge cont… Of the “yes” answers (7): Perception of how the FIA differs from other financial services industry bodies… “They deal specifically with the interests of intermediaries” (x4) “I don’t know” (x1) “The FIA plays an advisory role in intermediary legislation” (x1) “They play a similar / same role as the FSB” (x1) Perception of financial intermediaries... “They are easy to work with and play a positive role in informing consumers” (x3) “They are under serious stress” (x1) “Lots of corruption exists among intermediaries” (x1) “The role is currently in transition” (x1) “10% are honest and have integrity, 30% are average and 60% provide a poor service” (x1) On having used the FIA in the past for commentary... “Yes, I have” (x3) “No, I have not” (x3) “I have tried, but it has been difficult to get anything.” (x1)

Business media feedback: Brand knowledge cont… Of the “yes” answers (7): On identifying an FIA spokesperson… “Justus, Manie and Seamus” (x4) “I don’t know” (x2) “Arnold” (x1) On receiving communication from the FIA / the last time they received info... “No I have not” (x5) “A long time ago” (x1) “Once” (x1) On the type of information they would like to receive... “General / industry updates” (x5) “Feature stories and case studies” (x1) ‘Intermediary-focused pieces” (x1)

Business media feedback: Brand knowledge cont… Of all surveyed: On who they use for commentary on savings, investment and healthcare issues… “Banks and savings institutes” (x5) “The FSB / SAIA” (x3) “Investment houses” (x2) On being interested in receiving consumer-related media releases / industry commentary / event invites from the FIA... “Yes please” (x10) On their preferred communication format / channel… “E-mail” (x10)

The qualitative results: Consumer media . The qualitative results: Consumer media

Consumer media feedback: Brand knowledge On having heard of the FIA brand… “Yes, I know of them” (x7) “No, I don’t” (x3) On knowledge of the role that the FIA plays... “I don’t know” (x5) “They are a regulatory body that represents financial planners” (x3) “They are financial advisers” (x1) “They police financial advisers’ (x1) The word(s) that best defines the FIA… “I don’t know” (x3) “Insurance” (x2) “Money” (x1) “FIA” (x1) “Regulatory board with no teeth” (x1) “Ruthless” (x1) “Vague” (x1)

Consumer media feedback: Brand knowledge cont… Of the “yes” answers (7): Perception of how the FIA differs from other financial services industry bodies… “I don’t know” (x5) “They deal specifically with the interests of intermediaries” (x1) “FIA deals with brokers, the FSB with investments” (x1) Perception of financial intermediaries... “I don’t have one”(x2) “They aid consumers” (x1) “They are salesmen” (x1) “They are good in theory, but in the end don’t aid the consumer” (x1) “They don’t act in the consumer interest. They should be banned” (x1) “I personally think that they are good, but my readers are very cynical about their role” (x1) On having used the FIA in the past for commentary... “No, I have not” (x6) “Yes, I have” (x1)

Consumer media feedback: Brand knowledge cont… Of the “yes” answers (7): On identifying an FIA spokesperson… “I don’t know” (x6) “Justus” (x1) On receiving communication from the FIA / the last time they received info... “No I have not” (x5) “Once, a long time ago” (x2) On the type of information they would like to receive... “Anything / general” (x3) “Content for non-sophisticated investors / average consumers” (x3) “Answers to my reader questions” (x1)

Consumer media feedback: Brand knowledge cont… Of all surveyed: On who they use for commentary on savings, investment and healthcare issues… “ASISA / FSB” (x3) “Brian Hirsch” (x2) “Various regulatory bodies” (x2) “Banks” (x1) “PR companies” (x1) On being interested in receiving consumer-related media releases / industry commentary / event invites from the FIA... “Yes please” (x10) On their preferred communication format / channel… “E-mail” (x10)

. Research summary

Summary: Positive and negative results Research summary (Positives) 100% of all media (consumer and business) audited were interested in receiving media releases / information / invitations to events from the FIA 70% of all media (consumer and business) audited had heard of the FIA Research summary (Negatives) 50% of all media (consumer and business) had no knowledge of the role that the FIA plays 86% of consumer media could not identify an FIA spokesperson Only 58% of business media could identify an FIA spokesperson Only 30% of business media and 10% of consumer media have used the FIA for commentary 80% of consumer and business media said that had not received proactive information or commentary in the past from the FIA

Campaign to date: July - September 2010

Campaign objectives 1. Enhancing the perception of intermediaries among consumers via lifestyle-focused media; 2. Enhancing the perception of intermediaries among businesses and consumers via industry media (i.e. servicing the agricultural, engineering and medical sectors etc.); 3. Reinforce the FIA’s service offerings to intermediaries via business, financial and insurance trade media; 4. Position FIA professionals as experts and thought leaders within the investment, medical and insurance space in South Africa; 5. Build stronger media relationships.

Monthly initiatives Media relations: Researched, conducted interviews, generated and disseminated 8 releases to the media: 2. Internal communications - From the CEO newsletters Member communication letters: i.e. FSB levy increases, New Code of Conduct, STRIDE New conflict of interest code requires greater transparency Consumers down but not out when it comes to insurance Consumers to benefit as FIA takes tough stance against unethical intermediaries Farmers urged to use informed brokers Insurers imposing stricter terms on brokers Short –termism impacts on savings habits Botswana insurance conference RISKSA column: Big players keen to strengthen relationships with brokers

Results

Results and ROI RESULTS: JULY - SEPTEMBER 2010 Delivered an average of 25 placements per month Total number of editorial coverage achieved: 76 - Print: 24 - Online: 19 - Radio: 17 - Television 16 Editorial value of coverage: R7 002 464.00 Return on investment ratio: 83:1 times (Current industry ROI average is 3:1)

Breakdown of coverage to date by medium

Results cont… TOPIC(S) WITH THE BEST MEDIA RESULTS: TOP 3 New conflict of interest code requires greater transparency (40 media hits) Short termism impacts on savings habits (20 media hits) Insurers imposing stricter terms on brokers (12 media hits) MEDIA HIGHLIGHTS Note: During the campaign, coverage was achieved in, among others: eTV SABC3 Sunday Times Business Day Business Report Beeld Sake24 Finweek SAfm Classic FM

Examples of coverage achieved

Examples of coverage achieved cont...

Examples of coverage achieved cont...

Strategy going forward

Objectives Continue to enhance the perception of intermediaries among businesses and consumers via consumer, financial and industry trade media Maintain regular news flow to key media via: Media releases Media pitches for interviews 2. Maintain strong media relationships Identify and secure regular one-on-one relationship building sessions between the FIA’s senior management and key journalists on a consistent basis (1 per month minimum) 3. Continue to position FIA’s professionals as thought leaders in South Africa’s insurance, investment and medical space Monitor topical industry and consumer issues for opportunities for proactive and reactive commentary Draft and disseminate opinion / thought-leadership pieces 4. Profiling senior executives Motivate and secure profiling opportunities for key professionals - showcasing their skills-base - in relevant business, finance and industry trade media 5. Assist with internal communication channels

Questions?