INTRODUCTION TO OLD MUTUAL RETAIL MASS MARKET BROKER DISTRIBUTION

1. INTRODUCTION TO OLD MUTUALRETAIL MASS MARKET BROKER DISTRIBUTION February 2013

2. HOW DID IT ALL START 1902 1845 1870 1939 A CERTAIN FRIEND Scotsman John Fairbairn founds The Mutual Life Assurance Society of the Cape of Good Hope with no initial capital other than the premiums of its first 166 policyholders. Old Mutual's emblem is designed by board chairman Charles Bell. The interlocking anchors represent mutual strength. Group life assurance is introduced. The first clients are the Cape Railways and the Johannesburg post office. Old Mutual's Art Deco head office in Cape Town opens; at 96.8 metres the tallest man-made building in Africa at the time IN UNCERTAIN TIMES

3. HOW DID IT ALL START Old Mutual is demutualised 1954 1987 1999 2005 2012 Old Mutual Group Schemes starts operations as a result of a merger between OM Voluntary Groups and the Colonial Mutual (South Africa) of Australia. 1,000,000 Old Mutual issues its millionth policy Old Mutual is listed on the London, Johannesburg, Zimbabwe, Malawi and Namibia stock exchanges. Listing price is 120p (R11.25), giving the company a market capital of £3.9bn (R36.8bn) Black Economic Empowerment deal introduced at Old Mutual South Africa, Nedbank and Mutual & Federal Ralph Mupita appointed new Chief Executive Officer of Old Mutual Emerging Markets

4. OLD MUTUAL EMERGING MARKETS Providing enhanced Financial Protection to policyholders Regions South Africa Latin America Asia Rest of Africa New Markets

5. OLD MUTUAL EMERGING MARKETS -SOUTH AFRICA MD: South Africa Marshall Rapiya Retail Affluent Corporate Retail Mass Market (Group Schemes) Mass Foundation Cluster MD: Crispin Sonn Foundation Market

6. WHO IS OLD MUTUAL GROUP SCHEMES (RMM)? • Leading life assurance provider (business unit) within the Low and emerging-middle income market segments, based on market share, new business income and on-book clients. • Ready customer access to products through a salaried sales force, direct marketing, alliance partners, call-centre, agency franchise and broker distribution channels. • Most extensive Branch and Client Service Centre network within both the rural and urban areas of South Africa. • Highly regarded brand, based on integrity, value for money and financial soundness. • Through our primary partnership arrangements (iWyze & OM Finance) we offer a holistic client value proposition.

7. WHO IS OLD MUTUAL GROUP SCHEMES (RMM)? • Managing Director: Crispin Sonn, reporting to Marshall Rapiya (MD: OMSA) • Staff: In excess of 2 000 Administrative staff situated in MutualPark /MutualPlace and throughout the 300+ Client-service and Sales branches. • Joint ventures: Partnership agreements with iWyze (short-term) and OM Finance • Sales: Annual New Business Premium income in excess of R2.0 billion. • Each year, over 350 000 assurance benefits are sold to new and existing clients via the various RMM distribution channels. • Profit: Largest profit-contributor to OM South Africa

8. DISTRIBUTION CHANNELS Retail Mass Market Alliance Partners Sales Force Broker Distribution Direct Marketing Foundation

9. BROKER DISTRIBUTION

10. PROVIDING LIFE ASSURANCE TO THE MAJORITY OF SOUTH AFRICANS • Broker Distribution operations commenced in 2002 • OMGS Broker Distribution operates independently from the OM Broker Division (Retail Affluent) – partly due to the separate business units and partly due to the separate market segment focuses, as such, brokers must contract independently with OMGS (even if a contract is held with OM BD) • We are a Retail business offering individual, voluntary assurance benefits to brokers servicing / wishing to service clients within the broad “Mass market” – ie personal incomes up to R20 000pm. • In excess of 4 000 broker codes on books (predominantly within the LTI Cat. B1/ B2 space)

11. PROVIDING LIFE ASSURANCE TO THE MAJORITY OF SOUTH AFRICANS Total employed population of South Africa Old Mutual Retail Mass Market Employees earning less than R20 000* % falling into RMM above…? Employees earning less than R12 000* Employees earning less than R6 500* * Statistics South Africa - Monthly Earnings of South Africans 2010

12. DISTRIBUTION SUPPORT - PROVIDING SUPPORT, ADVICE AND SOLUTIONS • In excess of forty Broker Consultants nationally to service brokers on a face-to-face basis • Forty Distribution Support Administrators nationally, to ensure administrative support and business efficiencies • Mutual Park-based, Contracts and Commissions Administrative support staff • Regional Sales and Distribution Support Management, to ensure focus and quality of service B r o k e r B C S u p p o r t

13. INFORMATION AT YOUR FINGERTIPS - MAKING BUSINESS EASY • Average annual growth rate, since inception in 2002, in excess of 40% • Average 12-month Persistency rate in excess of 70% per annum across all broker codes • Daily SMS/E-mail new business status reports • Access to commission statements, New Business reports via the Internet (MyClient) or from Broker Consultant/Branch Admin Support personnel • Persal Q-link system accessibility for brokers, for Affordability checks

14. On average 28 000 claims are processed every month in our branches. This is more than 1.6 million clients per year. • In association with Old Mutual Finance (OMF), we are rapidly expanding our Client Service capability and footprint, by offering full client service support through the OMF offices as well. This expansion currently gives Old Mutual clients access to over 300 service points. • Our Provincial Broker Sales Managers have in excess of 80 years collective experience in Mass Market sales distribution.

15. TO SUM UP… • OM Group Schemes has 35 years experience in providing integrity-based, industry competitive assurance products which offer low entry-premiums, comprehensive benefits and solid value for money. • Non-restrictive client access to products, which the individual might otherwise, either financially or medically, not have access to. • Simple new business application, client servicing and claim procedures. • No extensive and time-consuming medical requirements (no automatic medical testing) for Risk assurance products. • Independently managed Investment portfolio for savings business.

16. TO SUM UP… • A full-house Broker support offering, from Commission Statements, New business reports, electronic notifications, business portfolio reports, Pending lapse reports to in-branch broker support facilities. • Dedicated and passionate Broker Consultants, Distribution Support staff and Distribution management, nationally, who ‘get involved’ • A familiar, well-trusted brand with a history of financial soundness and integrity. • A Distribution business with a culture of openness, honesty and a ‘tell it like it is’ approach.

17. PRODUCT RANGE Education Plan Investment Plan Retirement plan Value+ Funeral Plan Range Funeral Plan Standard funeral plan range Accidental Death & Disability plan Pure Life plan Life Plans Life & Disability plan Sales by volume