28 May 2003 OM Group in SA OMSA Peter de Beyer

Peter de Beyer: 

Peter de Beyer Deputy Managing Director

Agenda: 

Agenda Our Retail Business Market Overview Strategy & Actions Key Business Measures

Our Retail Business: 

Our Retail Business Financial services purchased by individuals Full range of products Multiple distribution channels Throughout South Africa

Retail Market: 

Retail Market

Market Share – Life Premiums: 

Market Share – Life Premiums % Based on information as per Companies Annual Financial Statements. Assumptions made where company results not available or insufficient. Old Mutual data based on LOA statistics. 12 Month Market Share ending 30 June 2002 Old Mutual Sanlam Liberty Momentum/Discovery Metropolitan (NAC) 29.6% 21.8% 14.8% 10.3% 5.1% 0 5 10 15 20 25 30 35 12/91 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 Total Premium Income – IL Business

Market Share – Life Assets: 

Market Share – Life Assets

Unit Trust Assets: 

Unit Trust Assets

Market Share Unit Trust Assets: 

Market Share Unit Trust Assets Market Share: 31 Dec 2001 (AUM)

Retail Strategy: 

Retail Strategy Growth through segmentation & customer focus Growth through product leadership Growth in distribution Growth in bancassurance

OMSA Retail Customers: 

OMSA Retail Customers Peter Moyo Peter de Beyer Middle income Affluent/HNW Personal Finance Private Wealth Affluent R 30 k – R80 k HHI High Net Worth > R 80 k HHI > R 3 m inv assets R8 k – R30 k HHI about 3.9 million Affluent about 350 000 High Net Worth about 65 000 Definition Market Size Low Income Emerging Market EMM < R5 k HHI R5 k – 12 k HHI Black Age : 25 – 50 about 5.9 million about 1.1 million

World Class Products: 

World Class Products Term Whole Life Endowment Pure Retirement Assurance Endowment Annuities Term Greenlight Greenlight Inv Inv Risk Savings Horizons Frontiers New Generation Products Flexi Product Range Savings / Investments Risk Low / EMM High / Middle Income GS GS Ess. Savings GS Funeral & Risk Savings Plan Inv Plan

OMSA Retail Customers: 

OMSA Retail Customers Peter Moyo Peter de Beyer Low Income/ Emerging Middle Middle income Affluent Personal Finance Paul Hanratty Private Wealth Mike Harper Old Mutual Penetration Group Schemes Advisers Personal Financial Advice Direct (Group Direct Sales) Private Wealth management Growing Aspirations Broker Distribution

Distribution Regulatory Issues: 

Distribution Regulatory Issues New Market Conduct Regime Financial Advisory & Intermediary Services Act (FAIS) Policyholder Protection Rules (PPR) Commission Deregulation Financial Intelligence Centre Act (FICA) Exchange Control Amnesty

Broker Distribution (BD): 

Broker Distribution (BD)

Bank Brokers: 

Bank Brokers

Personal Financial Advice (PFA): 

Personal Financial Advice (PFA) Sales Managers Manager Regional Sales Admin (x7) Area Managers (6 - 9 / region) Sales Support Managers Sales Teams 4 - 8 teams / area 8 - 12 Fin. Advisors / team Regional General Managers (x7) Executive General Manager Peter McGregor

PFA People: 

PFA People

Improving PFA Retention: 

Improving PFA Retention Portion remaining from original appointee

Bancassurance: 

Bancassurance To profitably cross-sell specific segments of Nedcor and Old Mutual Retail customer base using Old Mutual life assurance and Nedcor banking products

Bancassurance Initiatives : 

Bancassurance Initiatives

OM Bank: 

OM Bank

Bancassurance Initiatives : 

Bancassurance Initiatives

Key Business Measures: 

Key Business Measures

IL Maturities: 

IL Maturities 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Dec-99 Dec-00 Dec-01 Dec-02 58 59 60 61 62 63 64 65 66 67 R million Maturities % Retained % Retained

New Business (after tax): 

New Business (after tax) IL Business (incl. Group Schemes)

Improved Efficiency – new business expenses: 

Improved Efficiency – new business expenses Product Developm New Bus / U/writing Overheads Marketing Old Products Systems New World Rand per new policy (Dec 2002)

Improved Efficiency – in force expenses: 

Servicing GICC Branches Doc Hdl Money Coll Systems Claims Overhead Old Products New World Maintenance: Rand per policy (Dec 2002) Improved Efficiency – in force expenses

Slide28: 

Expenses – Individual Life %

Third Party Administration: 

Third Party Administration Cost Reduction 10% 25% 50% IT Core Competency of Provider Full Financial Services IT based TPA India Onshore life Onshore IT/life Onshore life/Offshore life Old Mutual Onshore IT/Offshore life Outsourcing Landscape

Thank You: 

Thank You