Old Mutual South AfricaCorporate Citizenship

Transformation Programme

10/06/03

Change

The advent of democracy in 1994GlobalisationCompetition- Innovation and agility- Legislative reforms- Learning to dealing with the dog

eat dog global environment pretty fast.

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.

Sixth challenge

Fall of the Berlin WallRise of the internet eraApril 1994 –Marrakesh Agreement –WTOCapital flowsPressure to reduce tarrifsKnowledge and skills became the only

source for comparative advantage.The gap bet. the rich and poor widened Globalisation

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.

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)

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

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

Business Activities: some detailBEE - 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.

Strategic Investment /Joint Ventures

Aka Capital + BOE Asset Management(55%)Wiphold(Women Investment Portfolio Holdings

(32.5%)Umbono Asset Managers alliance with OMAMSetsing Financial Services (65% owned by

Trade Unions) J&J Holdings –R37.5m capital injectionPro-Active Health solutions32m 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.

SAIF

•N4 Maputo Corridor

•N3 Toll Road

•Bakwena Platinum Corridor

•Beitbridge Bulawayo Railway

•Trans African Railway

•Limpopo Bridge

•National Housing Finance Corp

•Comazar

•Telkom Empowerment

•Infrastructure Finance Corp. (INCA)

ASSETS UNDER MANAGEMENTASSETS UNDER MANAGEMENT

Transformation plan – aligning workplace/internal

practicesGovernance: 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

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

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)

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

In the Community

Sponsorships (R18m p.a.)

– Financial education

– Choirs

– Community builder

– Road running

In the Community

Special Projects– Business Trust (R18m)

– Proudly South Africa (R8m)

– Centre for Public Service Innovation (R2m)

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)

Who got shares?

Policyholders at midnight on

25th August 1998 qualified for free shares200 membership shares + value shares

based on number and size of policies3.2 million shareholders at listing1 million sold at listing524 000 have retained shares

How to claim shares

Contact Old Mutual on 0861 61 9061Complete Confirmation FormReturn with certified copy of IDTakes Two weeks to issue sharesDividends and % paid into bank accountShares held electronically