 Chairman’s Statement  Dr Roger Sexton, AM On behalf of my fellow directors, I’m pleased to present IOOF’s 2012 annual report to shareholders. This is my first year as Chairman of IOOF. However, I have represented shareholders as a Director of IOOF since the Group demutualised and listed on the ASX and have acted as Deputy Chairman since 2005.  The financial services industry, in which IOOF operates, has experienced  a difficult year. The industry has had to cope with  challenging conditions in financial  markets as well as significant changes in the regulatory regimes under which it  operates, including those flowing on from  the Cooper Review into Superannuation. These changing conditions have induced a lot of turbulence amongst  many in the financial services industry  during the year. Pleasingly, the IOOF  group has continued to perform solidly  through the period – in part because our products, systems, people and culture  have been attuned over a long period of time to adapt to changes in the  financial and regulatory environment in which we operate.  As a result, the adjustments required within  the business during the year have been  incremental rather than transformational. The corporate history of IOOF shows that while we have been quite aggressive  in taking advantage of deep value  acquisition opportunities as and when  they become available from time to time,  the business itself has always been very  conservatively managed.  page 6 •  undertaking new acquisitions to  further expand the business base and  build additional synergies within our  vertically integrated business model. •  achieving organic growth by raising  brand awareness and increasing the  number of aligned financial advisers. •  delivering on our short-term budget objectives by maximising  revenues from our existing business  and improving operating efficiencies  through investment in technology and infrastructure to reduce  transactional costs. Strategic approach Overview In order to meet the challenges arising  from market conditions and regulatory  changes during the year, the company  has focused on three key strategic areas: