Contents. If you have a query about your super, contact the Super Hotline on or

Transcription

1 2017 Trustee Report 1

2 Contents Our 2016/17 investment performance 3 Investing your super 6 About us 12 Financials 14 Contact us back page About your Trustee Report This Trustee Report has been prepared for members of Toyota Super (ABN ). It outlines how Toyota Super has performed during the past 12 months and how the fund is managed. The information in this publication is general information only and does not take into account your particular objectives, financial circumstances or needs. It is not personal or tax advice. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. You should consider obtaining professional advice about your particular circumstances before making any financial or investment decisions based on the information contained in this document. Information on tax and superannuation legislation is current as at the date of publication and may change. This Report was issued by Toyota Super Pty Ltd (ABN , AFSL ), as Trustee of Toyota Super (ABN ). MySuper Authorisation number Preparation of this Trustee Report was completed on 23 November If you have a query about your super, contact the Super Hotline on or help@toyotasuper.com.au. 2

3 Our 2016/17 investment performance Investment returns are shown in the table below. When looking at how your super is performing, remember that super performance varies from year to year depending on changes in the investment markets. Super returns can be positive or negative depending on investment markets. In most cases, super is a long-term investment. This means that returns over a longer term, such as ten years, rather than one or two years, are likely to be a better indicator of your super s performance. Returns to 30 June Past performance is not necessarily a reliable indicator of future performance. Investment option Five-year compound average net return (per year) Accumulation, Retained Benefit and Spouse members 10-year compound average net return 1 (per year) Aggressive 14.1% 1.2% 11.8% 17.7% 22.3% 13.2% 4.8% Growth/MySuper Growth 9.8% 1.9% 9.0% 13.5% 16.5% 4.7% Moderate 4.9% 3.1% 5.3% 7.3% 8.6% 5.8% 5.0% Cash 2.0% 2.0% 2.3% 2.7% 3.5% 2.5% 3.6% Pension members Pension Aggressive 15.2% 2.4% 12.1% 19.0% 24.2% 14.3% 10.4% Pension Growth 10.3% 2.5% 10.1% 15.6% 18.5% 11.3% 6.7% Pension Moderate 5.5% 2.8% 6.4% 9.2% 9.7% 6.7% 6.3% Pension Cash 2.3% 2.2% 2.7% 3.1% 3.9% 2.8% 4.0% CPI 2 1.9% 1.0% 1.5% 3.0% 2.4% 2.0% 2.4% Notes: Investment returns are net of tax, investment fees and from 30 June 2014 to 30 June 2016 an allowance of 0.25% to build up Toyota Super s Operational Risk Financial Requirement (ORFR) reserve. Investment returns for Pension members are net of investment fees. See page 12 for more information on the ORFR reserve. Information for Defined Benefit members is on page 4. 1 The 10-year compound average returns for members in the Pension options are for the periods since inception. For Pension Growth and Pension Cash the period is from 8 February 2008 to 30 June For Pension Aggressive and Pension Moderate the period is from 1 February 2010 to 30 June Source: Australian Bureau of Statistics. 3

4 Defined Benefit members super Defined benefit investment performance Prior to 13 January 2016, all assets supporting defined benefits were invested similarly to Growth. Following a careful review of the fund s investment structure and member profile, the Trustee made a change to the investment of the defined benefit assets. From 13 January 2016, the assets supporting defined benefits for members aged 50 or over were invested similarly to Moderate and those supporting members aged under 50 continued to be invested similarly to Growth. The table below compares the declared crediting rate for the defined benefit assets with the cost of living, as measured by the CPI, over the past five years. Returns to 30 June Past performance is not necessarily a reliable indicator of future performance Five-year compound average return (per year) 10-year compound average return (per year) Declared crediting rate Growth 10.1% 2.0% 9.1% 13.8% 16.5% 10.2% 4.8% Declared crediting rate Moderate 1 4.9% 1.6% 9.1% 13.8% 16.5% 9.0% 4.2% CPI 2 1.9% 1.0% 1.5% 3.0% 2.4% 2.0% 2.4% 1 Blended Growth and Moderate rate from 1 July 2015 to 30 June 2016 and the Growth rate prior to 30 June Source: Australian Bureau of Statistics. Interim crediting rate Investment earnings are generally calculated on a monthly basis. If you leave Toyota Super, an interim rate will be used in the calculation of your benefit. This will cover the period from the previous annual review date until the date your benefit is paid. The interim rate is based on Toyota Super s monthly net investment returns. A cash rate applies in months where the actual monthly investment return is not yet available. 4

5 Returns on your accounts Accumulation and Pension members Accumulation and Pension members have investment choice. This means that you can decide how to invest your super by choosing from four investment options. If you have not made an investment choice, your contributions and account balances are invested in Growth/MySuper Growth, or Pension Growth if you are a Pension member. The value of your accumulation accounts rises or falls according to how the underlying investments in your chosen option perform. Your super earns the actual investment return achieved by your chosen investment option (or MySuper Growth if you are a MySuper member) after allowing for tax and investment fees and, from 30 June 2014 to 30 June 2016, an allowance of 0.25% to build up the ORFR reserve (where applicable see page 12). Note Retirement Income account members do not pay tax on investment earnings. However, from 1 July 2017, Transition Income account members pay tax on investment earnings. Defined Benefit members If you are a Defined Benefit member, the main defined part of your benefit is generally not affected by investment returns after age 55. This benefit is calculated using a formula that is linked to your salary. However, members under age 55 will have an accumulation benefit which is affected by investment market performance. Toyota Super s defined benefit assets are invested in a similar way to Growth, if you are under age 50, and Moderate if you are 50 or over. The declared crediting rate is applied to your defined benefit accounts. If you make additional voluntary contributions or have rolled super into Toyota Super from other funds, you also have an accumulation account. This account is affected by investment performance, so its value may increase or decrease, depending on how investment markets perform. You have investment choice for your accumulation accounts and can choose to invest them in any of the four investment options. The return you receive on these amounts is the earnings of your chosen option (after tax, investment fees and from 30 June 2014 to 30 June 2016, an allowance of 0.25% to build up the ORFR reserve) or, if you did not make an investment choice, the return of Growth or Moderate depending on your age. Unit prices Investment earnings are applied to your accumulation accounts via changes to the investment option s unit price. Unit prices are calculated on a weekly basis and at 30 June each year in accordance with the Trustee s Unit Pricing Policy. The unit price for each investment option will reflect the value of the underlying investments after making provision for investment management fees for Pension assets, and investment tax, investment management fees and an allowance to build up the ORFR reserve (see page 12) for other assets. 5

6 Investing your super Are you an Accumulation or Pension member? You choose how you want your super invested from four options for Accumulation members (including Retained Benefit and Spouse members) and four investment options for Pension members. See from page 8 for details. If you don t choose an option, your super will be invested in MySuper Growth, or Pension Growth if you re a Pension member. Are you a Defined Benefit member? You only have investment choice for your additional voluntary contributions and rollovers. The investment options available for these amounts are the same as those available to Accumulation members. Investment objectives Investment objectives are specific goals that the Trustee sets for the performance of Toyota Super and each investment option. They are not intended as forecasts or guarantees of future investment returns. Generally, the Trustee aims to: Invest Toyota Super s assets prudently as permitted by the Trust Deed and by superannuation law, Invest across a diverse range of assets, Ensure that Toyota Super is able to make benefit payments to members when they are due, and Monitor the performance of Toyota Super s investment managers to ensure they exercise integrity, prudence and professional skill in fulfilling the investment tasks delegated to them. See pages 8 to 11 for the specific investment objectives for each option. Investment strategy An investment strategy is the plan the Trustee follows to achieve the objectives of an investment option. Each investment option has its own investment strategy. For details of each option s investment strategy, see pages 8 to 11. Investment managers JANA Investment Advisers Pty Ltd (JANA) (ABN , AFSL ) is the investment adviser to Toyota Super. JANA is a specialist provider of tailored investment advice to major superannuation funds and other institutional investors. JANA s role is to assist the Trustee in establishing appropriate long-term investment objectives and strategies for Toyota Super, and to implement these strategies. This includes appointing, monitoring and where appropriate, terminating, the investment managers who look after Toyota Super s assets within the options. NAB Asset Servicing (NAS) provides custodian services to Toyota Super. Custodian services involve activities such as recording and safekeeping assets, as well as handling any buying or selling actions. The fund s investments are held in unit trusts managed by JANA. Each trust covers a specific investment sector and each trust comprises many specialised investment managers. These managers and their products are reviewed regularly by the Trustee through its investment adviser, and may be changed from time to time without prior notice to or consent from members. The unit trusts assets and investment managers at 30 June 2017 were: Australian shares JANA Core Australian Share Trust ($148.4 million) Balanced Equity Management Pty Ltd Solaris Investment Management Ltd Concise Asset Management Limited FIL Limited JANA High Alpha Australian Share Trust ($63.2 million) Cooper Investors Pty Ltd Ubique Asset Management Pty Ltd BT Investment Management (Institutional) Limited JANA Small Caps Australian Share Trust ($15.9 million) Fairview Equity Partners Pty Ltd Paradice Investment Management Pty Ltd International shares JANA Core Global Share Trust ($112.2 million) Acadian Asset Management LLC Janus Capital Management Ltd Schroders Investment Management Australia Limited JANA Emerging Markets Trust ($28.8 million) Delaware Investments Australia Neuberger Berman Australia Pty Limited JANA High Alpha Global Share Trust ($79.4 million) Carnegie Asset Management Fondsmaeglerselskab A/S Harding Loevner LLC Pzena Investment Management LLC Sands Capital Management LLC Tweedy, Browne Company LLC Property JANA Australian Property Trust ($26.1 million) SG Hiscock & Company Limited Resolution Capital Limited JANA Global Property Trust ($64.9 million) Morgan Stanley Investment Management Limited Resolution Capital Limited 6

7 Alternatives JANA Select Opportunities Trust ($89.7 million) BlackRock Inc Fischer Francis Trees & Watts Inc Insight Investment Management (Global) Limited Loomis Sayles & Company LP Oaktree Capital Management, L.P. Redpoint Investment Management Pty Ltd Shenkman Capital Management Inc Low Correlation Strategy ($56.1 million) JANA Investment Advisers Pty Ltd Diversified Fixed Interest JANA Diversified Fixed Interest Trust ($105.4 million) PIMCO Australia Pty Limited UBS Asset Management (Australia) Limited Franklin Templeton Investments Australia Limited JANA All Maturity Fixed Interest Trust ($1.9 million) Amundi Asset Management Antares Capital Franklin Templeton Investments Australia Limited Fischer Francis Trees & Watts Inc Insight Investment Management (Global) Limited Goldman Sachs Group Inc Loomis Sayles & Company LP PIMCO Australia Pty Limited UBS Asset Management (Australia) Limited Wellington Management Company, LLP JANA Short Maturity Fixed Interest Trust ($4.8 million) Antares Capital Fischer Francis Trees & Watts Inc Insight Investment Management (Global) Limited Goldman Sachs Group Inc Loomis Sayles & Company LP UBS Asset Management (Australia) Limited Wellington Management Company, LLP Cash JANA Cash Trust ($140.4 million) Antares Capital Managing derivative risk The Trustee does not invest directly in derivatives. Toyota Super s investment managers may use derivatives for risk control purposes or to more efficiently change asset allocations. Derivatives are not used in a speculative manner. Investment managers are required to have risk management processes in place in relation to the use of derivatives and the purposes for which they are used. Each year, the Trustee obtains confirmation from the managers that they have complied with their processes. 7

8 Our investment options For more information about the investments offered by Toyota Super, please refer to the Product Disclosure Statement for your membership category available on Aggressive Growth/MySuper Growth (This is also the strategy for defined benefit assets, including defined benefit accounts if you are under age 50 at 1 July each year.) What are the investment objectives for this option? The long-term investment objective of this investment option is to achieve returns after tax and fees that exceed CPI increases by at least 5.0% p.a. over rolling five-year periods. On a rolling three and five year basis, a rate of return above a composite based on the benchmark allocation of the underlying SuperRatings High Growth Survey medians adjusted for tax and fees will be sought. The long-term investment objective of this investment option is to achieve returns after tax and fees that exceed CPI increases by at least 4.0% p.a. over rolling five-year periods. On a rolling three and five year basis, a rate of return above the median of the SuperRatings Balanced Option Survey of diversified superannuation funds will be sought. On a rolling three-year basis, outperformance will be sought relative to the notional return on a benchmark portfolio designed to reflect the risk profile according to which the assets are invested. On a rolling three-year basis, outperformance will be sought relative to the notional return on a benchmark portfolio designed to reflect the risk profile according to which the assets are invested. In pursuing the above return objective the Trustee seeks to limit the probability of a negative gross of tax return over rolling twelve month periods to 4 to 6 years out of every 20 years, which corresponds to a Volatility Level of 6: High based on the Standard Risk Measure. In pursuing the above return objective the Trustee seeks to limit the probability of a negative gross of tax return over rolling twelve month periods to 3 to 4 years out of every 20 years, which corresponds to a Volatility Level of 5: Medium to High based on the Standard Risk Measure. What investment strategy does this option use? Invest over 90% in shares and property, and the balance in cash. Invest in a diversified portfolio with approximately 70% in shares and property, and 30% in fixed interest and cash. How is the option invested? Asset mix at 30 June 2017 Asset mix at 30 June 2016 Asset mix at 30 June 2017 Asset mix at 30 June % 1.0% % 1.0% 45.0% 45.0% 43% 43% 8.5% 8.8% 12.0% 11.6% 27.8% 27.9% 8.6% 9.8% 5.5% 27.6% 5.0% 25.0% 11.9% Defined Benefit members Australian shares 28.0% 28.0% International shares 27.0% 27.0% Property Growth alternatives 5.5% 4.5% Diversified fixed interest 9.0% Defensive alternatives 12.5% 11.5% Cash 8.0% 9.0% What is the benchmark asset allocation? Australian shares 50% International shares 37% Property 10% Growth alternatives 0% Diversified fixed interest 0% Defensive alternatives 0% Cash 3% Australian shares 35% International shares 25% Property 10% Growth alternatives 0% Diversified fixed interest 10% Defensive alternatives 5% Cash 15% 8

9 Moderate (This is also the strategy for defined benefit assets, including defined benefit accounts if you are age 50 or over at 1 July each year.) Cash What are the investment objectives for this option? The long-term investment objective of this investment option is to achieve returns after tax and fees that exceed CPI increases by at least 2.5% p.a. over rolling five-year periods. On a rolling three and five year basis, a rate of return above the median of the SuperRatings Stable Options Survey of diversified superannuation funds will be sought. On a rolling three-year basis, outperformance will be sought relative to the notional return on a benchmark portfolio designed to reflect the risk profile according to which the assets are invested. On a rolling one-year basis, performance in line with the return of the Bloomberg AusBond Bank Bill Index will be sought. To achieve positive returns after tax and fees each month. In pursuing the above return objectives the Trustee seeks to limit the probability of a negative gross of tax return over rolling twelve month periods to 0% in any particular year, which corresponds to a Volatility Level of 1: Very Low based on the Standard Risk Measure. In pursuing the above return objective the Trustee seeks to limit the probability of a negative gross of tax return over rolling twelve month periods to 1 year out of every 20 years, which corresponds to a Volatility Level of 3: Low to Medium based on the Standard Risk Measure. What investment strategy does this option use? Invest in a conservative mix of asset classes, including approximately 30% in shares and property, and 70% in fixed interest and cash. Invest solely in cash (100%). How is the option invested? Asset mix at 30 June 2017 Asset mix at 30 June 2016 Asset mix at 30 June 2017 Asset mix at 30 June % 8.0% 11.0% 32.0% 25.0% 4.0% 33.0% 26.0% 3.0% 100% 100% Defined Benefit members Australian shares International shares 8.0% 8.0% Property Growth alternatives 4.0% 3.0% Diversified fixed interest 25.0% 26.0% Defensive alternatives 11.0% Cash 32.0% 33.0% What is the benchmark asset allocation? Australian shares 15% International shares 5% Diversified fixed interest 30% Defensive alternatives 6% Cash 100% Property 10% Cash 34% Growth alternatives 0% 9

10 Pension investment options Pension Aggressive Pension Growth (This is the default option for Pension members who do not make an investment choice.) What are the investment objectives for this option? The long-term investment objective of this investment option is to achieve returns after fees that exceed CPI increases by at least 6.0% p.a. over rolling five-year periods. The long-term investment objective of this investment option is to achieve returns after fees that exceed CPI increases by at least 4.5% p.a. over rolling five-year periods. On a rolling three and five year basis, a rate of return above a composite based on the benchmark allocation of the underlying SuperRatings High Growth Survey medians adjusted for fees will be sought. On a rolling three and five year basis, a rate of return above the median of the SuperRatings Balanced Option Survey of diversified superannuation funds will be sought. On a rolling three-year basis, outperformance will be sought relative to the notional return on a benchmark portfolio designed to reflect the risk profile according to which the assets are invested. On a rolling three-year basis, outperformance will be sought relative to the notional return on a benchmark portfolio designed to reflect the risk profile according to which the assets are invested. In pursuing the above return objective the Trustee seeks to limit the probability of a negative gross of tax return over rolling twelve month periods to 4 to 6 years out of every 20 years, which corresponds to a Volatility Level of 6: High based on the Standard Risk Measure. In pursuing the above return objective the Trustee seeks to limit the probability of a negative gross of tax return over rolling twelve month periods to 3 to 4 years out of every 20 years, which corresponds to a Volatility Level of 5: Medium to High based on the Standard Risk Measure. What investment strategy does this option use? Invest over 90% in shares and property, and the balance in cash. Invest in a diversified portfolio with approximately 70% in shares and property, and 30% in fixed interest and cash. How is the option invested? Asset mix at 30 June 2017 Asset mix at 30 June 2016 Asset mix at 30 June 2017 Asset mix at 30 June % 5.5% 5.5% 5.5% 5.8% 5.4% 15.5% 14.3% 22.2% 22.2% 39.0% 39.0% 14.4% 23.1% 15.2% 22.9% 40.0% 40.0% 9.7% 9.3% Pension Moderate Pension Cash What is the benchmark asset allocation? Australian shares 46% International shares 33% Property 10% Growth alternatives 11% Diversified fixed interest 0% Defensive alternatives 0% Cash 0% Australian shares 26% International shares 18% Property 10% Growth alternatives 16% Diversified fixed interest 18% Defensive alternatives 12% Cash 0% 10

11 What are the investment objectives for this option? What investment strategy does this option use? Pension Moderate The long-term investment objective of this investment option is to achieve returns after fees that exceed CPI increases by at least 3.0% p.a. over rolling five-year periods. On a rolling three and five year basis, a rate of return above the median of the SuperRatings Stable Options Survey of diversified superannuation funds will be sought. On a rolling three-year basis, outperformance will be sought relative to the notional return on a benchmark portfolio designed to reflect the risk profile according to which the assets are invested. In pursuing the above return objective the Trustee seeks to limit the probability of a negative gross of tax return over rolling twelve month periods to 1 or 2 years out of every 20 years, which corresponds to a Volatility Level of 3: Low to Medium based on the Standard Risk Measure. Invest in a conservative mix of asset classes with approximately 30% in shares and property, and 70% in fixed interest and cash. Pension Cash On a rolling one-year basis, performance in line with the return of the Bloomberg AusBond Bank Bill Index will be sought. To achieve positive returns after fees each month. In pursuing the above return objectives the Trustee seeks to limit the probability of a negative gross of tax return over rolling twelve month periods to 0% in any particular year, which corresponds to a Volatility Level of 1: Very Low based on the Standard Risk Measure. Invest 100% in cash. How is the option invested? Asset mix at 30 June 2017 Asset mix at 30 June 2016 Asset mix at 30 June 2017 Asset mix at 30 June % 12.5% 40.0% 7.0% 9.0% 5.0% 7.5% 19.0% 12.5% 40.0% 7.0% 9.0% 5.0% 7.5% 100% % What is the benchmark asset allocation? Australian shares 10% International shares 7% Property 5% Growth alternatives 8% Diversified fixed interest 47% Defensive alternatives 13% Cash 10% Cash 100% 11

12 About us How Toyota Super is managed The Trustee is Toyota Super Pty Ltd (ABN , AFSL ). The sole purpose of this company is to be Trustee of Toyota Super. The Trustee uses a number of advisers who provide services to Toyota Super see Our advisers to the right for more information. The Trustee s responsibilities are carried out by a Board of directors. Half of the directors are appointed by Toyota and half are appointed periodically by fund members. At 30 June 2017, your Trustee directors were: Appointed by members Eckart Fett Priyantha Gunaratne Andrew Hansen Carol Lydford Esrael Maru Joe Xerri During the year ended 30 June 2017: Appointed by Toyota Adam Hopkins Peter McGregor Paula Miller Rob Purcell Joanne Romano Michael Tentomas Heather Box, Jenny Saunders and David Masters resigned from the Trustee Board, effective 31 December 2016, 28 February 2017 and 20 March 2017 respectively. Joanne Romano was appointed to the Trustee Board by TMCA effective 1 January Following the Trustee election process, Carol Lydford and Esrael Maru were appointed to the Trustee Board with effect from 29 May The Secretary of Toyota Super is Paul Lunny. Indemnity insurance The Trustee is currently covered by a Trustee Professional Indemnity insurance policy that protects Toyota Super s assets from a legal liability to the extent allowed by law and the policy conditions. Our advisers The following organisations provide specialist services to the Trustee. Consultant and actuary Administrator Investment consultant Custodian Legal adviser External auditor Internal auditor Insurer Reserves Towers Watson Australia Pty Ltd Mercer Outsourcing (Australia) Pty Ltd JANA Investment Advisers Pty Ltd NAB Asset Servicing Lander & Rogers Deloitte Touche Tohmatsu The Heron Partnership Pty Limited MLC Limited Administration expense reserve The Trustee holds an administration expense reserve in respect of Toyota Super s Accumulation Section. In recent years, this reserve has been used to reduce the fees passed on to members in this section. As at 30 June $ 2017 Nil , ,000 Operational risk reserve From 1 July 2013, super funds have been required to set aside financial resources to address funds operational risks. The Trustee has established an ORFR reserve in Toyota Super for this purpose. A reserve has been built up to 0.25% of members vested benefits over the three years from 1 July For accumulation-based benefits, the reserve was funded through a reduction in the unit price at each 30 June for three years until For Pension members, the ORFR reserve was funded by making a deduction from Pension accounts at each 30 June for three years until The deduction was 0.08% at 30 June 2014 and 2015, and 0.09% at 30 June For defined benefits, the ORFR reserve was funded from existing reserves within Toyota Super. Transfers from these reserves started from 1 July The Trustee invests the ORFR reserve in Growth/MySuper Growth. Now that the desired level of 0.25% has been reached, the Trustee will periodically monitor the reserve to ensure that it remains close to this level. Should the reserve fall below a predetermined shortfall limit, the Trustee will enact a plan for its replenishment. The Trustee will update members annually on the status of the reserve. As at 30 June ORFR reserve $ ,362, ,218, ,600 12

13 Forgone benefits reserve In the past, when some members left Toyota Super they were only eligible for a percentage of their benefit under Toyota Super rules even though the Company had made the full contribution. The percentage that these members were not eligible for was transferred to the forgone benefits reserve. This reserve was used to fund the ORFR reserve for Defined Benefit members. The first transfer was effective 1 July As at 30 June $ , Nil ,700 What happens if you leave Toyota When you leave your employer, the Toyota Super Admin Team will ask you how you want to receive your super benefit. Your super will be transferred automatically into an account in your name in Toyota Super s Retained Benefit Section. In this section you can make lump sum personal contributions, roll over super from other funds and withdraw any of your benefit which is not preserved. Your super can also remain invested in your chosen investment option. If your benefit is less than $1,000, the Trustee may roll your benefit over to an Eligible Rollover Fund (ERF) if: You fail to give Toyota Super Admin instructions within 90 days of receiving details of your benefit, or The super fund you nominate won t accept your benefit. The ERF is: Australian Eligible Rollover Fund Locked Bag 5429 PARRAMATTA NSW 2124 Phone: Contact: The Administrator Website: Once your benefit is transferred to the ERF, you stop being a member of Toyota Super and no longer have any rights under Toyota Super. You will then need to contact the ERF directly about your benefit. You can also obtain the ERF s Product Disclosure Statement using the contact details above. The investment and crediting rate policy of the ERF will be different to those that applied in Toyota Super. Also, the ERF will not offer any insurance cover. You should seek advice from a licensed financial adviser about whether the ERF is a suitable investment for you. 13

14 Financials Following is an extract of Toyota Super's audited financial accounts for the year to 30 June For information on the notes mentioned in the extracts, please refer to the audited financial accounts. The audited financial accounts and auditor s report are available on the fund's website and can be obtained by calling the Super Hotline on Toyota Super has adopted the new accounting standard AASB 1056 Superannuation Entities, which requires comparative figures at 30 June 2016 to be restated. TOYOTA SUPER STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 Notes $ $ ASSETS Cash 2,801,403 5,938,739 Receivables 12 66,462 39,884 Investments ,956, ,169,877 Prepayments 60,664 28,959 Deferred tax assets 11(e) 3,948, ,698 TOTAL ASSETS 950,833, ,379,157 LIABILITIES Benefits payable 1,445, ,764 Creditors and accruals 14 1,215,587 1,584,000 Current tax liabilities 11(d) 4,517, ,180 Deferred tax liabilities 11(f) - 123,340 TOTAL LIABILITIES EXCLUDING MEMBER BENEFITS 7,177,924 3,171,284 NET ASSETS AVAILABLE FOR MEMBER BENEFITS 943,656, ,207,873 MEMBERS BENEFITS Defined contribution members 6(a) 688,698, ,033,962 Defined benefit members 6(b) 248,108, ,440,000 TOTAL AS PER STATEMENT OF CHANGES IN MEMBER BENEFITS 936,806, ,473,962 NET ASSETS 6,849,574 21,733,911 EQUITY Operational risk reserve 20 2,362,183 2,143,044 Administration reserve - 222,291 Foregone benefits reserve 328, ,002 Unallocated balance 4,159,389 19,040,574 TOYOTA SUPER INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2017 Notes $ $ REVENUE FROM SUPERANNUATION ACTIVITIES Interest 71,691 59,782 Trust distributions 68,088,306 58,331,707 Changes in net fair value of investments 9 9,571,271 (47,357,289) Fee rebates 1,404,101 54,240 Other income 6, TOTAL SUPERANNUATION ACTIVITIES REVENUE 79,141,897 11,088,463 EXPENSES FROM SUPERANNUATION ACTIVITIES Direct investment expenses 201,326 40,358 General administration expenses 935, ,936 Other operating expenses 10 1,927,672 1,127,154 TOTAL EXPENSES FROM SUPERANNUATION ACTIVITIES 3,064,240 1,715,448 OPERATING RESULT FROM SUPERANNUATION ACTIVITIES BEFORE INCOME TAX 76,077,657 9,373,015 ALLOCATION TO MEMBERS BENEFITS Net benefits allocated to defined contribution (DC) member accounts 63,055,641 (4,977,262) Net benefits allocated to defined benefit (DB) member liabilities 24,133,206 7,819,918 TOTAL ALLOCATION TO MEMBERS 87,188,847 2,842,656 OPERATING PROFIT BEFORE TAX (11,111,190) 6,530,359 INCOME TAX EXPENSE/(BENEFIT) 11(b) 3,773,148 (150,499) OPERATING RESULT AFTER INCOME TAX (14,884,338) 6,680,858 TOTAL EQUITY 6,849,574 21,733,911 14

15 Financials continued TOYOTA SUPER STATEMENT OF CHANGES IN MEMBER BENEFITS FOR THE YEAR ENDED 30 JUNE 2017 TOYOTA SUPER STATEMENT OF CHANGES IN MEMBER BENEFITS FOR THE YEAR ENDED 30 JUNE 2017 Period ended 30 June 2017 Notes Defined Defined Total Contribution Benefit Members Members $ $ $ Liability for accrued benefits beginning of period 617,033, ,440, ,473,962 CONTRIBUTION REVENUE Employer contributions 42,219,170 5,159,999 47,379,169 Member contributions 4,997,474-4,997,474 Government co-contributions 1,564-1,564 Transfers in 8,564,702-8,564,702 Internal transfers 13,520,334 (13,520,334) - Income tax on contributions 11(c) (5,128,565) (774,000) (5,902,565) Net after tax contributions 64,174,679 (9,134,335) 55,040,344 BENEFITS PAID Benefits paid (48,101,505) (3,330,871) (51,432,376) Pensions paid (3,607,754) - (3,607,754) Net Benefits paid (51,709,259) (3,330,871) (55,040,130) INSURANCE Insurance premiums charged to members accounts (6,950,268) - (6,950,268) Claims credited to members accounts 3,093,707-3,093,707 Net Insurance (cost)/benefit (3,856,561) - (3,856,561) INCOME AND EXPENSES Net benefits allocated to accumulation members 63,959,804-63,959,804 Net benefits allocated to defined benefit members - 24,133,206 24,133,206 Administration fees paid by members (904,163) - (904,163) Net income/(expenses) 63,055,641 24,133,206 87,188,847 Liability for accrued benefits end of period 688,698, ,108, ,806,462 Period ended 30 June 2016 Notes Defined Defined Total Contribution Benefit Members Members $ $ $ Liability for accrued benefits beginning of period 246,618, ,411, ,029,756 CONTRIBUTION REVENUE Employer contributions 21,761,585 3,837,395 25,598,980 Member contributions 1,469,286-1,469,286 Government co-contributions 4,949-4,949 Transfers in 1,876,564-1,876,564 Internal transfers 5,514,168 (5,514,168) - Transfer in from TASP 377,262, ,262,957 Income tax on contributions 11(c) (1,974,835) (575,609) (2,550,444) Net after tax contributions 405,914,674 (2,252,382) 403,662,292 BENEFITS PAID Benefits paid (23,427,801) (2,538,861) (25,966,662) Pensions paid (1,214,468) - (1,214,468) Net Benefits paid (24,642,269) (2,538,861) (27,181,130) INSURANCE Insurance premiums charged to members accounts (7,976,606) - (7,976,606) Claims credited to members accounts 2,096,994-2,096,994 Net Insurance (cost)/benefit (5,879,612) (5,879,612) INCOME AND EXPENSES Net benefits allocated to accumulation members (4,361,908) - (4,361,908) Net benefits allocated to defined benefit members - 7,819,918 7,819,918 Administration fees paid by members (615,354) - (615,354) Unallocated Net income/(expenses) (4,977,262) 7,819,918 2,842,656 Liability for accrued benefits end of period 617,033, ,440, ,473,962 15

16 Contact us To direct your enquiry to the Trustee: Write The Secretary Toyota Super 155 Bertie Street PORT MELBOURNE VIC 3207 Website While the Trustee and the Toyota Super Secretary can give you information about your benefit, none of them, including your employer, can provide you with any advice. If you require any advice about superannuation, you should consult an appropriately licensed financial adviser. Super Hotline staff are not representatives of the Trustee. Any financial product advice given by Super Hotline personnel is provided under the licence of Mercer (Australia) Pty Ltd (ABN ) a corporate representative of Mercer Outsourcing (Australia) Pty Ltd (ABN , AFSL ). To find out more about Toyota Super and your benefits, refer to the important contact details below. Call Super Hotline on Write Toyota Super Admin Team Mercer GPO Box 4303 MELBOURNE VIC 3001 help@toyotasuper.com.au