Deutsche Bank South Africa Conference. Julian Roberts, Group Finance Director Old Mutual plc. 22 November 2001

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1 Deutsche Bank South Africa Conference Julian Roberts, Group Finance Director Old Mutual plc 22 November 2001

2 Old Mutual From Domestic Leadership in South Africa to Diversified International Financial Services Group

3 Old Mutual Revenue(1) - in US$m Rest of Africa $219m South Africa $4,105m 1: 2000 pro forma revenue including F&G

4 Old Mutual Revenue(1) - in US$m GNI UK $406m Rest of Africa $219m South Africa $4,105m 1: 2000 pro forma revenue including F&G

5 Old Mutual Revenue(1) - in US$m UK $406m USA $1,635m Rest of Africa $219m South Africa $4,105m 1: 2000 pro forma revenue including F&G

6 Old Mutual Revenue(1) - in US$m UK $406m USA $1,635m Rest of Africa $219m Asia $363m South Africa $4,105m 1: 2000 pro forma revenue including F&G

7 Powerful management team in place Jim Sutcliffe Richard Laubscher Julian Roberts Roddy Sparks Guy Barker Scott Powers Ed Warner Nedcor OM SA US Life US AM UK FD, M&F

8 Old Mutual South Africa Leading Position in Financial Services

9 Old Mutual South Africa Economic Background Market dominant position Old Mutual Life Assurance Company South Africa Largest life assurer in South Africa 2000 gross premium 2,580m (R27,145m) FUM 15,763m (R22,992m) at 30th June 2001 Nedcor 53% owned listed subsidiary 2nd largest bank in South Africa 2000 total income R9bn 51.9% efficiency ratio at 30th June 2001

10 Old Mutual South Africa Economic Background Market dominant position Old Mutual Life Assurance Company South Africa Nedcor Mutual & Federal 51% owned listed subsidiary 2nd largest general insurer in South Africa 2000 gross premium R3.5bn 99.9% operating ratio at 30th June 2001

11 Old Mutual South Africa Economic Background Market dominant position Growth drivers Product development Focus on profitability Segmentation of business Bancassurance In-sourcing

12 The Challenge Transform Old Mutual From Local to Global

13 Old Mutual UK Investment Services to High Net Worth Individuals

14 UK Operations GNI UK H revenue of 126m UK FUM of 18bn at 30th June 2001

15 Gerrard Largest private client stockbroker Strong Position in attractive HNW market Strong product range Profitability linked to retail volumes on London Stock Exchange

16 OMAM UK Institutional and pension mandates Retail capability UK smaller Companies European equity Worldwide equity Fixed income Consolidated Unit trust management with the move of Gerrard funds

17 GNI GNI Market leader in CFDs Equity derivatives Foreign exchange derivatives Good trading in 2001

18 Old Mutual Securities Institutional stockbroker Innovative corporate finance Excellent research

19 Selestia What is Selestia New company targeting the mass affluent sector of the retail investment market Distribution exclusively via IFAs Innovative products Initial product will offer a highly flexible system through which IFAs can build portfolios carefully tailored to meet clients precise needs Further products planned for 2002 launch Low cost base Custom built systems utilizing Old Mutual s South African skill base

20 Old Mutual US Multi style asset manager

21 Old Mutual (US) Holdings h US Savings Market Overview h Mutual Funds Management h Institutional Asset Management Capabilities h Life Assurance h The Old Mutual Model

22 Size of savings markets 21.2 Global Assets Under Management ($ Trillion)* E UK E USA E EU E Japan Note: * Excluding insurance assets Sources: Bernstein, Charterhouse, BA&H E South Africa E ROW

23 Total U.S. Money Management Industry $5.3 Trillion $20.4 Trillion Mutual Funds $1.0 Mutual Funds $6.9* Individuals $0.7 Institutions $11.0* Institutions $3.6 Individuals $ * Includes $800 billion of defined contribution plan assets invested in mutual funds Source: Federal Reserve, FDIC, ICI and independent estimates

24 Institutional Sector of Money Management Industry $11.0 Trillion Defined Contribution $2.4 12% Annual Growth Defined Benefit $6.7 8% Annual Growth Foundation/Endowment $1.9 10% Annual Growth Source: Federal Reserve, FDIC, ICI and independent estimates

25 Institutional Assets $ Trillions $44 Trillion Source: Federal Reserve, Department of Labor and Independent Estimates

26 L-T Mutual Fund Assets $ in Billions $4,194 Billion 5,000 4,000 3,000 2,000 1, /01

27 Old Mutual - US Asset Management Committed to building a multi-asset class active investment management business in North America $135 billion in assets under management High quality active investment skills in all major asset classes Focused distribution strategy supports organic growth

28 Asset Mix and Client Base Asset mix Client base U.S. Bonds and Cash 12% Wrap Accounts 3.1%* Mutual Funds 25.1%* International Securities 12% Real Estate 5% U.S. Equities 64% Stable Value Assets 7% Institutional 61%* Individuals 12% $135 Billion * Includes $21 billion of defined contribution plan assets invested in mutual funds

29 Strategically Aligned Organization Old Mutual (US) Holdings Pilgrim Baxter Old Mutual Asset Managers (US) Old Mutual Affiliates Old Mutual Sales & Services PBHG Funds No load Funds Sold Direct Multi-style platform Third party advisors Wrap programs 7 Independent member firms Multi style capability Unique investment process at individual firm Support growth Limit risk Provide depth Old Mutual Japan Integra Capital eseclending Old Mutual Wrap Growing number of funds subadvised by affiliated managers Retain entrepreneurial cultures Align incentives for profitable growth Leverage retail and alternative distribution Build shared sales engines

30 High Quality Investment Skills in all Major Asset Classes Old Mutual Asset Managers (US) US Equity Large Cap Value Mid Cap Value Small Cap Value Large Cap Growth Mid Cap Growth Small Cap Growth Large Cap Core Market Neutral TAA Balanced Derivatives Index Fixed Income Short Term Intermediate Long Term Mortgage/ABS Stable Value Money Market High Yield International Global Index Global Equity Growth Value Emerging Markets Europe Only Japan Only Small Cap Value Small Cap Growth Index GTAA Alternatives Real Estate Timber Hedge Funds Private Equity Venture Capital Currency Overlay Distressed Debt

31 Asset Management Growth Strategy OM Growth Strategy 1. Strengthen position and accelerate growth in core U.S. defined benefit market Maintain investment strength Shift market share Build sales capability within subsidiaries and shared channels Strengthen cross-selling 2. Source new investors International Defined contribution investment-only business Property/casualty insurance market Life insurance market Additional sub-advisor arrangements 3. Realise leverage, economies, and cost effectiveness across investment companies, as appropriate Leverage buying clout on Wall Street

32 Attractiveness of the U.S. Life Market World s largest life insurance and retirement services market (Approximately 29% of global sales) More than US $50 billion in 2000 premium income for fixed annuities only (1) Favorable demographic characteristics (2) 61 million Americans in age bracket, projected to increase to 80 million by 2010 Favorable timing due to current volatility of equity markets 1 - Source - LIMRA International 2 - Source - US Census Bureau

33 US Fixed Annuities Sales - Competitive Position Estimated 2001 full Rank year in billions 1 Aegon $6.2 2 American General $5.6 3 General Electric $3.6 4 ING Companies $3.2 5 Jackson National $2.6 6 Allstate $2.6 7 Allianz $2.4 8 NY Life $1.7 9 Travelers $ Keyport/Sun Life of Canada $ Nationwide $ F&G Life $1.4 Total Estimated Market $75.0 Source: LIMRA International

34 US life strategy Start-up operation Retail agency distribution Experienced senior management team Simple, good value fixed annuity and life products Established franchise MGA distribution Proven senior management team Simple, good value fixed annuity and life products Proven product development expertise Deal Completed Sept. 2001

35 Old Mutual US Institutional Equity Retail Fixed Interest Retail Specialist Multi Style Quality Mutual Funds Best Product Development Multi style asset management with focussed distribution channels

36 Old Mutual plc

37 Current trading h Quality businesses h Rand h Asset market levels world wide h Well positioned to take advantage of recovery

38 Balance sheet strength 3% Gearing ratio 25% 24% Dec 99 Dec 00 June 01 15% return on equity Debt of 1.2bn $650m convertible bond heavily oversubscribed 900m five year revolving credit facility secured Interest cover of 13 times on smoothed earnings Moody s A2 rating

39 Revenues from outside home market 100% % of 2000 revenue from overseas 0% ZFS Axa Aegon Allianz Generali ING AIG Fortis Prudential OM L&G Hartford Source: Bloomberg Merrill Lynch

40 Delivering our potential Long Term: Build an international financial services organisation in selected markets Short term priorities: Growth from SA Drive returns from UK & USA acquisitions Create value from international start up operations