Contents

2. Contents Group financial overview : Preston Speckmann Group embedded value : Peter Doyle Metropolitan & NAIL convergence : Peter Doyle Opportunities & strategy : Peter Doyle

3. Financial highlights • Headline earnings 25% higher • Growth in dividend per share of 21% • Increase in embedded value per share of 19% • Net income of R7.4 billion • Employee benefits total premium income up 45%

4. Overview of group results * * * *

5. Total premium income * Only for a nine month period in respect of year to 30/09/1999

6. Group recurring premium income * Only for a nine month period in respect of year to 30/09/1999

7. Administration fee income

8. Funds received from clients

9. Total group assets under management

10. Operating costs of life businesses(as a % of premium income) (individual years)

11. Benefit payments as a% of total premiums

12. Dividends & headline earnings per share * * Restated

13. Group embedded value Peter Doyle

14. Embedded value

15. Analysis of new business embedded value

16. Group new business

17. FSV basis change for year end 2000 • Clarifies distribution of surplus to with-profit policyholders • Removes source of volatility from shareholder earnings • Stable flow of shareholder earnings now a management fee on the underlying assets • Clarifies that the excess does indeed belong to shareholders • Released a further R229m to opening excess • 1999 earnings restated on a pro forma basis purely for comparative purposes

18. Revised basis for EV • Some changes follow from new FSV basis • An EV review during 2000 indicated that some aspects of the EV basis were too conservative • The revised EV for 31 March 2000 gave an estimate of the effect on EVs of adopting a less conservative approach • The revised new business EV for EB estimate was not on a consistent basis with that used to estimate the revised embedded value of in-force business, and as a result the former value was overstated by R32 million • The overall effect of the changes in FSV basis and EV basis was to increase EV at September 1999 by R850m

19. Statement of actuarial values of assets and liabilities

20. Analysis of headline earnings * * 1999 Restated

21. Metropolitan & NAIL convergence

22. Corporate convergence • Metropolitan minorities swap their shares in Metropolitan for Nafhold shares • Change of name of Nafhold to New Africa Capital • Delisting of Metropolitan and listing of New Africa Capital • Unbundling by NAIL of its holding in New Africa Capital to ordinary and N shareholders

23. New group structure NAIL and Metropolitan shareholders NAIL shareholders New Africa Capital **# NAIL* 100% 100% NAM Cash/non-media assets Metropolitan Life # Other operating subsidiaries * Listed on the JSE ** To be listed on the JSE and NSX # Current Metropolitan Board would largely serve as New Africa Capital Board

24. Rationale/Objectives • Separation of Metropolitan’s life business from its operating subsidiaries and other shareholder investments, and creating a holding co as listed entity • Creation of a single point of entry • Strengthening of Metropolitan’s board, management team and shareholder base • Existing Metropolitan board becomes New Africa Capital board • Leveraging empowerment credentials • Increasing liquidity in Metlife shares • De facto enfranchisement of Nail N shareholders • Unlocking holding co discount

25. Conditions • The convergence between Metropolitan and NAIL is subject to: • 30% of the issued share capital of NAIL (media assets) must be owned by empowerment groups • 15% of the issued share capital of New Africa Capital (financial services) must be owned by empowerment groups • creating a voting pool representing not less than 25% of shareholders’ votes of New Africa Capital

26. Opportunities & strengths

27. The year 2000: challenges • NAIL restructuring negotiations • Unstable investment markets • 3 months of merger discussions with Sanlam • New government stop order deductions suspended • Increase in surrenders

28. The year 2000: successes • Excellent absolute & relative investment performance • Retained all key people during merger talks • Merger instability has generated positive & creative energy • Strong premium growth maintained • Expense growth successfully contained • Strong growth in EV of in-force business • EB and health businesses continued sustained aggressive growth • Exceptional growth in headline earnings

29. Persal • All existing deductions to continue • Deductions for new business from 1 July 2001 • All companies to register with dept of finance for deduction codes before 30 June • Any malpractice will lead to suspension • Deductions for long and short term insurance capped at 15% of basic salary • Other non-statutory deductions limited to 25% of basic salary, including micro-loans • Industry must rationalise the insurance portfolios of clients who are in excess of 15% by 31/3/2002 • Needs analysis to form basis of rationalisation

30. Business concept “World class African based business providing aspirational individuals with customised financial services that protect and grow their assets”

31. Business concept • Leader in growth markets • Creating an entrepreneurial and dynamic culture • Leverage our credentials • market segmentation • risk management • excellent investment returns • strong administration capabilities • Earning the trust & loyalty of clients • Delivery on our promise of empowerment

32. Opportunities ahead • Black middle-income market is THE growth market • Strengthen position in Gauteng • Metropolitan is the 3rd strongest brand in South Africa • Build on our empowerment credentials • Expand further into Africa • Virtual business services • Build on our successful EB, health and asset management businesses