content_image/252386.jpg content_image/252379.jpg
##  Chairman’s Statement 

<img src='content_image/252386.jpg'>

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. 

## Overview 

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. 

<img src='content_image/252379.jpg'>

## Strategic approach 

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: 

• 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. 

• achieving organic growth by raising brand awareness and increasing the number of aligned financial advisers. 

• undertaking new acquisitions to further expand the business base and build additional synergies within our vertically integrated business model. 

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. 

