Old Mutual South Africa Corporate Citizenship Transformation Programme 10/06/03

1. Old Mutual South AfricaCorporate Citizenship Transformation Programme10/06/03

2. Change • The advent of democracy in 1994 • Globalisation • Competition • Innovation and agility • Legislative reforms • Learning to dealing with the dog eat dog global environment pretty fast.

3. Five key challenges • Poverty • Unemployment • Economic Stagnation • Racism • Inequality • Dealing with just one of these issues would have been a formidable challenge for any government; have to tackle all five at the same time was a daunting prospect.

4. Sixth challenge • Fall of the Berlin Wall • Rise of the internet era • April 1994 –Marrakesh Agreement –WTO • Capital flows • Pressure to reduce tarrifs • Knowledge and skills became the only source for comparative advantage. • The gap bet. the rich and poor widened Globalisation

5. Key features • 1960s real GDP averaged @ 5.5% • 1970s fell to 3.3% • 1980s fell again to 1.4% • Bet. 1986 – 92 average annual growth of real GDP fell to 1% @ the same time • Job Creation fell to zero in the 80’s and to negative territory in 1986.

6. Why Corporate Citizenship and Transformation? • Leading corporate citizen and champion of transformation and development • Financial services company of choice Aligns company practices with changes in South Africa, and installs best practice corporate citizenship within four years (2000 – 2003)

7. What underpins our Corporate Citizenship Philosophy • Extends beyond legislative compliance and social investment • Integrated into business strategy • Covers business, workplace and social practices • Adds value to bottom line, whilst fulfilling societal responsibilities

8. Key Priority Areas • Aligning business activities with changing market needs and national economic & social priorities • Focus on specific issues: • Black economic empowerment • Infrastructural investment • Social security • Savings & financial education • HIV/Aids • Rural Development • Affirmative Procurement • Investment in South Africa

9. Business Activities: some detail • BEE - All businesses now have to build BEE into their business plans. - BEE assets = R1.9bn and growing - BEE partnerships. - BEE & intermediaries: development of black brokers • Infrastructure Investment: - R2bn owned and managed assets and growing - R1bn of OMLACSA assets invested in infrastructure. - IDEAS Fund; SA Infrastructure Fund. - Over 50% of sales force is black.

10. Strategic Investment /Joint Ventures • Aka Capital + BOE Asset Management(55%) • Wiphold(Women Investment Portfolio Holdings (32.5%) • Umbono Asset Managers alliance with OMAM • Setsing Financial Services (65% owned by Trade Unions) • J&J Holdings –R37.5m capital injection • Pro-Active Health solutions • 32m Policy holders became shareholders – 60% Old Mutual plc share register are South African. • Est. that black people indirectly own 16% of the individual shareholding in OM plc and via the pension funds.

11. SAIF ASSETS UNDER MANAGEMENT • Limpopo Bridge • National Housing Finance Corp • Comazar • Telkom Empowerment • Infrastructure Finance Corp. (INCA) • N4 Maputo Corridor • N3 Toll Road • Bakwena Platinum Corridor • Beitbridge Bulawayo Railway • Trans African Railway

12. Transformation plan – aligning workplace/internal practices • Governance: Board; executive & line management; non-financial measurement & Corporate Citizen Report • Workplace practices: IR; Employment equity & diversity management; Skills development; HIV/Aids workplace programme; Affirmative procurement • Corporate culture: Building corporate citizenship into company culture through Siyakhula, reward systems, Orientation, OMBS, internal communication & Staff Community Builder

13. Workplace Activities: cont. • Skills Development & OM Business School - Business School launched in February 2001 - over 4000 units of training in 2001 - assistance to government (SARS; DTI; DPSA) - Pilot site for Dept. of Labour’s Investors in People Project • Corporate Culture and Siyakhula - 8 month process involving all 13 000 employees - Link between personal growth and business growth - Focus on building employee and company commitment to SA

14. Transformation plan – aligning our social investment activities • Old Mutual Foundation (R20m p.a.) - Rural economic development initiative; AIDS Orphans; Staff Volunteerism programme; Education (primary school mathematics & school infrastructure) • Sponsorships (R18m p.a.) - Financial education; jazz; choirs, community builder; road running • Special Projects - Business Trust (R18m) - Proudly South Africa (R8m) - CPSI (R2m)

15. In the Community • Old Mutual Foundation (R20m p.a.) • Rural economic development initiative (Nov 01 launch) • AIDS Orphans (2002 launch) • Staff Community Builder • Education and health focus

16. In the Community • Sponsorships (R18m p.a.) • Financial education • Choirs • Community builder • Road running

17. In the Community • Special Projects • Business Trust (R18m) • Proudly South Africa (R8m) • Centre for Public Service Innovation (R2m)

18. HIV/AIDS • HIV/AIDS: Holistic Programme - Workplace: - R4m workplace programme: seroprevalence testing, awareness and prevention, counselling, managed healthcare programme - Business: - Product development and statistical research - Community: - Support for education programmes (R1.4m) - AIDS Orphans Programme (R1.6m) - Soul City (R3m)

19. Who got shares? • Policyholders at midnight on 25th August 1998 qualified for free shares • 200 membership shares + value shares based on number and size of policies • 3.2 million shareholders at listing • 1 million sold at listing • 524 000 have retained shares

20. How to claim shares • Contact Old Mutual on 0861 61 9061 • Complete Confirmation Form • Return with certified copy of ID • Takes Two weeks to issue shares • Dividends and % paid into bank account • Shares held electronically