Mass and Foundation Cluster - Presentation

Mass and Foundation ClusterStrengthening Our Business

The Mass and Foundation

Cluster

Our market

Foundation Market

Old Mutual Finance

Retail Mass Market

Old Mutual Funeral Services

Simplicity and Peace of Mind

Value for money and Choice

Digital enablement

Our challenge: New business sales decline

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2015 2016 2017 2018 2019 2020

APE

sale

s

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Rectify

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Total Intermediary Productivity Recovery

6,29

0,33

5,08

3,14

6,04 6,25

-

1,00

2,00

3,00

4,00

5,00

6,00

7,00

Jan20 Feb20 Mar20 Apr20 May20 Jun20 Jul20 Aug20 Sep20 Oct20 Nov20 Dec20 Jan21 Feb21 Mar21

Issue

d L

ives

per

wee

k

Our strengths

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Integrated Financial Services

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Insurance

Savings

Transactional

Lending

54%

44%Rectify Simplify Amplify

Non-field contribution to APE (2018 - 2020)

R1.4bn in sales*

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*Alternative channels APE contribution - 2020

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40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

100,0%

1 Need 2 Needs 3 Needs 4 Needs 5 Needs 6 Needs 7 Needs

2<= Years 2> 2 Years

The strength of our IFS approach

Cus

tom

er p

ersis

tenc

y pe

r nu

mbe

r of n

eeds

met

> 2 Years

We've geared

up!Rectify Simplify Amplify

The Old Mutual Value Drivers

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Revenue Growth

OperatingMargin

Competitive Strengths

Execution & Delivery

Capital Efficiencies

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Simplify

Enabled digitalisation

Through WhatsApp and USSD

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Extended non-advice

368Retail branches

1600lending consultants

we’re doing is working

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What

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IFS Model strength

580

600

620

640

660

680

700

720

May 2019 May 2021

Growth in YTD risk sales on OMP (2021) relative to previous product (2019)

Funeral Life (incl. underwritten)

8%

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Growth in liferisk sales

+8%

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Building a stronger IFS offering

0% 20% 40% 60% 80% 100%

2019

2020

2021

2022

2023

APE Product Mix

Non-underwritten risk

Underwritten risk

Credit Life

Savings - RA

Savings - non-RA

Savings - VPI & SP

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Our unique components

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51%

52%

53%

54%

55%

56%

57%

58%

59%

60%

-4,00%

-2,00%

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

14,00%

16,00%

2015 2016 2017 2018 2019 2020 Q12021

Product VNB margin and % risk sales

Proportion of risk APE sales Total VNB margin Risk VNB margin Savings VNB margin

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Our unique components

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0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

14,00%

16,00%

18,00%

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2015 2016 2017 2018 2019 2020 Q1 2021

Performance of lending book

Lending book size (R'bn) Net lending margin Credit loss ratio

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

201816141210

86420

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Amplify

Winning through a stronger IFS proposition

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Increase reach into the foundation

market

by increasing our non-traditional partner networks

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Old Mutual Rewards

70%of >1m existing

customers belong to MFC

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245knon-existing

customers have signed up

Data analytics & behaviouraleconomics

Strengthened core

Diversified proposition

and channelsAdvice and non-advice

Strong risk margin

6% - 9% reported VNB

margin

50% of current customers

with 2 or more needs

Net lending margin to stabilise

around 11%