Analyst PresentationAnalyst Presentation

Interim results for the Interim results for the half year to 30 June 2002half year to 30 June 2002

Jim SutcliffeJim Sutcliffe

Chief ExecutiveChief Executive

Introduction Introduction

Solid progress… challenging environmentSolid progress… challenging environment

• Group return on equity 17%Group return on equity 17%• Record Life salesRecord Life sales• Operations performing to target:Operations performing to target:

- SA underlying results strong; Nedcor acquires BoESA underlying results strong; Nedcor acquires BoE

- US Life new business up 107%; asset management US Life new business up 107%; asset management net inflow $1.5bnnet inflow $1.5bn

- UK Gerrard profitable in H1UK Gerrard profitable in H1

• Balance sheet further strengthened by eurobond and Balance sheet further strengthened by eurobond and equity placingsequity placings

Benefiting from internationalisation Benefiting from internationalisation

Key financial highlights - SterlingKey financial highlights - Sterling

20022002 2001 2001 % % interiminterim interim interim changechange

Operating profit (smoothed) Operating profit (smoothed) £381m£381m £455m £455m -16-16

Operating EPS Operating EPS 5.8p5.8p *7.2p*7.2p -19-19

Dividend per shareDividend per share 1.7p1.7p 1.7p1.7p 00

Embedded value @ 30/6 Embedded value @ 30/6 £3,775m£3,775m ****£3,522m£3,522m +7+7

Life new businessLife new business****** £288m£288m £132m£132m +118+118

Value of new business Value of new business £58m£58m £28m£28m +107+107

** Restated from 7.8p on adoption of FRS 19Restated from 7.8p on adoption of FRS 19**** 31 December 2001 31 December 2001 *** *** Annual premium equivalentAnnual premium equivalent

Key financial highlights - RandKey financial highlights - Rand

20022002 2001 2001 % % interiminterim interim interim changechange

Operating profit (smoothed) Operating profit (smoothed) R6,059mR6,059m R5,195m R5,195m +17+17

Operating EPS Operating EPS 92.9c92.9c *82.4c*82.4c +13+13

Dividend per shareDividend per share ****26.9c****26.9c 22.2c22.2c +21+21

Embedded value @ 30/6 Embedded value @ 30/6 R59,R59,814814mm ****R61,364mR61,364m -3-3

Life new businessLife new business****** R4,571mR4,571m R1,498mR1,498m +205+205

Value of new business Value of new business R927mR927m R319mR319m +191+191

** Restated from 89.3c on adoption of FRS 19Restated from 89.3c on adoption of FRS 19**** 31 December 2001 31 December 2001 *** *** Annual premium equivalent Annual premium equivalent ******** Indicative only Indicative only

Progress on internationalisationProgress on internationalisation

65%

22%22% 13%13%

Funds under managementFunds under management

35%

12%12%53%53%

Embedded value (pre-debt)Embedded value (pre-debt)

8%8%70%70%

Operating profitOperating profit

22%

4%4%

35%35%61%

Life new business (APE)Life new business (APE)

UK & RestUK & Rest South AfricaSouth Africa USAUSA

Julian RobertsJulian Roberts

Group Finance DirectorGroup Finance Director

Finance and operating reviewFinance and operating review

A challenging environmentA challenging environment

% % changechange % change % change

H1 H1 20022002 one yearone year

S&P 500 S&P 500 -14-14 -19-19

NASDAQNASDAQ -2-255 -34-34

JSE JSE +2+2 +18+18

FTSE 100 FTSE 100 -11-11 -17-17

Rand / £Rand / £ - Spot- Spot +10 +10 -28-28- Average- Average -28-28

US$ / £US$ / £ - Spot- Spot -5 -5 -8-8- Average- Average 00

South AfricaSouth Africa

20022002 20012001 %%Rm Rm interiminterim interiminterim changechange

Life assuranceLife assurance 2,5412,541 2,4562,456 +3+3

Asset managementAsset management 207207 206206 00

BankingBanking 1,5791,579 1,5251,525 +4+4

General insuranceGeneral insurance 308308 274274 +12+12

Operating profitOperating profit 4,6354,635 4,4614,461 +4+4

South Africa - Operating profitSouth Africa - Operating profit

1,140 1,270

354

200

0

500

1,000

1,500

2,000

2001 H1 2002 H1

Rm

Individual business Group business

South Africa - Life new businessSouth Africa - Life new business**

1,3401,340

1,6241,624

** Annual premium equivalent Annual premium equivalent

20022002 20012001 % %RmRm interiminterim interiminterim changechange

NNew business margins ew business margins 25%25% 22%22%

Value of new businessValue of new business 403403 296296 +36+36

Life assurance profitLife assurance profit 2,5412,541 2,4562,456 +3+3LTIRLTIR 1,0001,000 891891 +12+12Operating profitOperating profit 1,5411,541 1,5651,565 -2-2

Return on capitalReturn on capital 21%21% 24%24%

South Africa - Life operating reviewSouth Africa - Life operating review

OMLAC(SA) - Capital strengthOMLAC(SA) - Capital strength

JuneJune **DecDecRbnRbn 20022002 20012001

AssetsAssets(net of provisions and (net of provisions and current liabilities)current liabilities) 244.0244.0 250.3250.3

Policy liabilitiesPolicy liabilities (210.2)(210.2) (216.1)(216.1)

Excess assetsExcess assets 33.833.8 34.234.2

Statutory capital adequacy requirementStatutory capital adequacy requirement 13.213.2 12.712.7

MultipleMultiple 2.6x2.6x 2.7x2.7x

Allocated CapitalAllocated Capital 21.821.8 20.620.6

** Restated to exclude Guernsey branch Restated to exclude Guernsey branch

20022002 20012001 %%interiminterim interiminterim changechange

Headline earnings (Rm)Headline earnings (Rm) 1,5241,524 1,4851,485 +3+3

Core earnings (Rm)Core earnings (Rm) 1,5601,560 1,3171,317 +18+18

Total assets (Rm)Total assets (Rm) 200,727200,727 173,012173,012 +16+16

Return on average equityReturn on average equity 20.9%20.9% 21.5%21.5%(based on headline earnings)(based on headline earnings)

EfficiencyEfficiency ratio ratio 53.4%53.4% 51.9%51.9%

Capital adequacy ratioCapital adequacy ratio 11.2%11.2% 11.1%11.1%

Nedcor - Operating reviewNedcor - Operating review

Nedcor - BoE integrationNedcor - BoE integration

• RationaleRationale- Opportunity to consolidate domestic banking marketOpportunity to consolidate domestic banking market

- Geographic coverage enhancedGeographic coverage enhanced

- Build private client wealth managementBuild private client wealth management

- Strengthen domestic merchant bankingStrengthen domestic merchant banking

• Capital structure optimised with issue of Tier 2 capitalCapital structure optimised with issue of Tier 2 capital

• Expense reduction a focusExpense reduction a focus

• EPS accretive in 2002 for Old MutualEPS accretive in 2002 for Old Mutual

20022002 20012001 %%interiminterim interiminterim changechange

Net Net premiums (Rm)premiums (Rm) 2,3382,338 2,1512,151 +9+9

Operating income (Rm)Operating income (Rm) 308308 274274 +12+12

Net insurance reserves (Rm)Net insurance reserves (Rm) 2,1302,130 2,0112,011 +6+6

Operating ratioOperating ratio 97.7%97.7% 98.7%98.7%

Solvency ratioSolvency ratio 7711%% 74%74%

General insurance - Operating reviewGeneral insurance - Operating review

United StatesUnited States

20022002 20012001 %%$m$m interiminterim interiminterim changechange

Life assuranceLife assurance** 4848 --

Asset managementAsset management 8888 9292 -4-4

Operating profitOperating profit 136136 9292 +48+48

Operating profit (£m)Operating profit (£m) 9393 6464 +45+45

US - Operating profitUS - Operating profit

** Consolidated from 1 July 2001 Consolidated from 1 July 2001

US asset management - Key driversUS asset management - Key drivers

• Net funds inflowNet funds inflow- 1% of FUM1% of FUM- $1.3bn inflow through PBA sub-advisory channel$1.3bn inflow through PBA sub-advisory channel

• Strong investment performanceStrong investment performance- 65% of US Morningstar rated funds achieved 4 or 65% of US Morningstar rated funds achieved 4 or

5 Star ratings5 Star ratings- Approximately 85% of US managed funds Approximately 85% of US managed funds

outperform respective benchmarksoutperform respective benchmarks

• Head office costsHead office costs- $11m reduction compared with H1 2001 $11m reduction compared with H1 2001

(44% annualised)(44% annualised)

US funds under managementUS funds under management

OMAM(US)OMAM(US)** 76.776.7 -- 3.13.1 -1.7-1.7 78.178.1

PBAPBA 12.612.6 -- - 1.2 - 1.2 - 2.5- 2.5 8.98.9

OMA - StrategicOMA - Strategic 37.537.5 - 0.1- 0.1 - 0.9- 0.9 0.10.1 36.636.6

Sub TotalSub Total 126.8126.8 - 0.1- 0.1 1.01.0 - 4.1- 4.1 123.6123.6

OMA - FinancialOMA - Financial 23.123.1 - 5.3- 5.3 0.50.5 - 0.7- 0.7 17.617.6

TotalTotal 149.9149.9 - 5.4- 5.4 1.51.5 - 4.8- 4.8 141.2141.2

31 De31 Decc Divested/ Divested/ Net cashNet cash MarketMarket 30 June30 June$bn$bn 20012001 transferredtransferred flowsflows movementmovement 20022002

** Includes assets managed by Dwight on behalf of US Life Includes assets managed by Dwight on behalf of US Life

US Life - New businessUS Life - New business**

0

50

100

150

200

250

300

H2 2001 H1 2002

$m

MGA Banks/institutionsStructured settlement brokers Direct writing agents

$121m*$121m*

$251m*$251m*

Gross premiums: $0.9bnGross premiums: $0.9bn Gross premiums: $2.2bnGross premiums: $2.2bn

** Annual premium equivalent Annual premium equivalent

US Life - Operating reviewUS Life - Operating review

20022002 20012001 % % interiminterim H2 H2 change change

New business margin New business margin 1818%% 15%15%

Value of new business ($m)Value of new business ($m) 4545 1919 +137+137

Return on capitalReturn on capital 9%9% 10%10%

Embedded value @ 30/6 ($m)Embedded value @ 30/6 ($m)**** 912912 *803*803

Investment to date ($m)Investment to date ($m) 828828 763763

** 31 December 2001 31 December 2001

** ** Includes new capital Includes new capital

US Life - Financial strengthUS Life - Financial strength

** Gross of smoothing over 5 years as per UK GAAP Gross of smoothing over 5 years as per UK GAAP

JuneJune DecDec 20022002 20012001

A.M. Best rating (F&G)A.M. Best rating (F&G) AA AA

Portfolio average credit quality Portfolio average credit quality A2A2 A2A2

Investment portfolio ($bn)Investment portfolio ($bn) 8.38.3 6.46.4

GAAP Investment variance ($m)GAAP Investment variance ($m)** (7)(7) 77

DefaultsDefaults /impairments/impairments (32)(32) (12)(12)Realised gainsRealised gains 2525 1919

US Life - Bond portfolioUS Life - Bond portfolio

AA27%27%

AAAA10%10%

AAAAAA13%13%

TreasuriesTreasuries7%7%

CashCash7%7%

BB & lowerBB & lower8%8%

BBBBBB28%28%

United KingdomUnited Kingdom

and Rest of Worldand Rest of World

20022002 20012001££mm interiminterim interiminterim

Life assuranceLife assurance (3)(3) 33

Asset managementAsset management 55 88GerrardGerrard 33 1010Gerrard integration costsGerrard integration costs 00 (6)(6)OMAMOMAM 33 11GNIGNI 55 66Other financial servicesOther financial services (6)(6) (3)(3)

Banking – Nedcor / GPBBanking – Nedcor / GPB 2929 3333

Operating profitOperating profit 3131 4444

UK and Rest of World - Operating profitUK and Rest of World - Operating profit

Gerrard - Operating backgroundGerrard - Operating background

Source: Old Mutual, Bloomberg; Source: Old Mutual, Bloomberg; * * Restated for the transfer of GIF Restated for the transfer of GIF to OMAM (UK) to OMAM (UK)

0

1,000

2,000

3,000

4,000

Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002

Bargains

4,000

4,500

5,000

5,500

6,000

6,500Index

Gerrard average daily bargains FTSE 100 daily average

20022002 **20012001 % % £m £m interiminterim interiminterim changechangeFeesFees 2424 2828 -14-14CommissionsCommissions 3939 4242 -7-7Total revenueTotal revenue 6363 7070 -10-10Operating expensesOperating expenses (60)(60)Operating profitOperating profit 33

Overview of Group financesOverview of Group finances

20022002 20012001 % % £m £m interiminterim interiminterim changechange

South AfricaSouth Africa 291291 392392 -26-26

USAUSA 9393 6464 +45+45

UK & Rest of WorldUK & Rest of World 3131 4444 -30-30

Shareholder income/(expense)Shareholder income/(expense)OtherOther 77 88 -13-13Head office expensesHead office expenses (16)(16) (18)(18) +11+11

Debt servicing costsDebt servicing costs (25)(25) (35)(35) +29+29

Operating profit before taxOperating profit before tax 381381 455455 -16-16

Group operating profitGroup operating profit

20022002 20012001 % % £m £m interiminterim interiminterim changechange

Operating profit before taxOperating profit before tax 381381 455455 -16-16

TaxTax (106)(106) (107)(107) +1+1

FRS 19 tax adjustmentFRS 19 tax adjustment -- (21)(21)

MinoritiesMinorities (62)(62) (78)(78) +21+21

Smoothed post taxSmoothed post tax 213213 249249 -14 -14operating profitoperating profit

EPS (p) EPS (p) 5.85.8 *7.2*7.2 -19-19

Group operating profit (continued)Group operating profit (continued)

** Restated from 7.8p on adoption of FRS 19Restated from 7.8p on adoption of FRS 19

Capital management - DebtCapital management - Debt

• €€400m Eurobond issue400m Eurobond issue

• Gearing (net) 33%Gearing (net) 33%

• Interest cover of 16.2xInterest cover of 16.2x- Interest cover excluding South African Interest cover excluding South African

earnings 3.3xearnings 3.3x

• Average cost of debt 3.8%Average cost of debt 3.8%

Capital management - EquityCapital management - Equity

• Placement of St Paul’s holding of 190m sharesPlacement of St Paul’s holding of 190m shares- Over-subscription issue of 38m sharesOver-subscription issue of 38m shares

• Group return on average equity 17% Group return on average equity 17%

Embedded value £mEmbedded value £m

2,6242,624

2,8502,850

925925

898898

3939 5858 7979

212212 5252 2020 6363

31-Dec-0131-Dec-01 NewNew capital capital

NewNew business business

ExistingExistingbusinessbusiness

FXFX InvInvVarVar

Return onReturn onnet worthnet worth

DividendDividend 30-Jun-0230-Jun-02

Adjusted net worthAdjusted net worth Value of inforceValue of inforce

3,5223,522

3,7753,775

Embedded value RmEmbedded value Rm

31-Dec-0131-Dec-01 NewNew capital capital

NewNew business business

ExistingExistingbusinessbusiness

Return onReturn onnet worthnet worth

DividendDividend 30-Jun-0230-Jun-02

45,71645,716 45,16345,163

14,65114,65115,64815,648

9279276196191,2451,245 2,2242,224

83083099899828928961,36461,364

59,81459,814

Adjusted net worthAdjusted net worth Value of inforceValue of inforce

InvInvVarVar

FXFX

July updateJuly update

• Equity markets in JulyEquity markets in July- S&P 500 down 8% S&P 500 down 8%

- NASDAQ down 9% NASDAQ down 9%

- JSE down 13%JSE down 13%

- FTSE down 9%FTSE down 9%

• Embedded value estimate for end of July based Embedded value estimate for end of July based on market movements onlyon market movements only- £3.6bn / R57.3bn (down 5% from June)£3.6bn / R57.3bn (down 5% from June)

SummarySummary

• South AfricaSouth Africa- Strong new business growthStrong new business growth- Profit as expectedProfit as expected

• USUS- Very good life salesVery good life sales- Good investment performanceGood investment performance- Positive cash flow for asset managementPositive cash flow for asset management

• Gerrard expense reduction deliveredGerrard expense reduction delivered

• Strong capital position across the GroupStrong capital position across the Group

Jim SutcliffeJim Sutcliffe

Chief ExecutiveChief Executive

South Africa - What we said…South Africa - What we said…

• World class products and profitabilityWorld class products and profitability

• Dominant distributionDominant distribution- Number 1 in each customer segmentNumber 1 in each customer segment

• BancassuranceBancassurance

• Cross-border servicingCross-border servicing

• Targets - 2004Targets - 2004- Real profits growth of 2-3x real GDPReal profits growth of 2-3x real GDP

- ROC of 20% - 25%ROC of 20% - 25%

……We have achievedWe have achieved

• VNB growth 36%, VNB margin 25%, VNB growth 36%, VNB margin 25%, “International” range of products“International” range of products

• DistributionDistribution- BoE makes Nedcor number 1 in many sectorsBoE makes Nedcor number 1 in many sectors- Life sales force grownLife sales force grown

• BancassuranceBancassurance- Premium (APE) growth of 35%Premium (APE) growth of 35%

• Swisscard contract signed and systems in placeSwisscard contract signed and systems in place

• Against targetsAgainst targets- Profit growth of 4%Profit growth of 4%

> New business (APE) growth of 21%New business (APE) growth of 21%> Asset growth at Nedcor 16%Asset growth at Nedcor 16%

- ROC of 21%ROC of 21%

US - What we said…US - What we said…

• Asset managementAsset management

- Multi-style specialist asset managersMulti-style specialist asset managers

- Central and local distribution capability and mutual fundsCentral and local distribution capability and mutual funds

- Targets - 2004Targets - 2004

> $5bn p.a. of net client inflows$5bn p.a. of net client inflows

> 10% ROI10% ROI

• Life Life

- Focused on fixed annuities and term lifeFocused on fixed annuities and term life

- Distributed by MGAs, banks and independent agentsDistributed by MGAs, banks and independent agents

- Targets - 2004Targets - 2004

> Grow net cash inflow to $1bn p.a.Grow net cash inflow to $1bn p.a.

> 12% ROI12% ROI

……We have achievedWe have achieved

• Asset managementAsset management

- Strong investment performanceStrong investment performance

- $1.3bn of total sub-advised asset through PBA$1.3bn of total sub-advised asset through PBA

- Against targetsAgainst targets

> $1.5bn of net inflows in six months$1.5bn of net inflows in six months

> 7% ROI7% ROI

• LifeLife

- Against targetsAgainst targets

> $2.2bn of inflows in six months$2.2bn of inflows in six months

> 9% ROI9% ROI

UK - What we said…UK - What we said…

• Focus on HNW asset managementFocus on HNW asset management

• Build reinvigorated Gerrard baseBuild reinvigorated Gerrard base- Tighten expensesTighten expenses

- Move towards 50% discretionary managementMove towards 50% discretionary management

• Targets - 2004 (all UK businesses combined)Targets - 2004 (all UK businesses combined)- £1bn of net client inflow p.a.£1bn of net client inflow p.a.

- £40m of operating profit after tax£40m of operating profit after tax

……We have achievedWe have achieved

• Finalisation of Gerrard strategyFinalisation of Gerrard strategy- Add private banking product via GPBAdd private banking product via GPB- Integrate financial planningIntegrate financial planning- Improve delivery and clarity of investment modelImprove delivery and clarity of investment model

• Gerrard expenses reducedGerrard expenses reduced

• OMAM (UK) net inflow of £35m to OMAM (UK) net inflow of £35m to third party fundsthird party funds

• Against targetsAgainst targets- £0.3bn of net client outflow in six months£0.3bn of net client outflow in six months- £2m of operating profit after tax£2m of operating profit after tax in six months in six months

What we said…What we said…

Demutualisation& listing July 1999

Phase IPhase I

Phase IIPhase II

Phase IIIPhase III

Establish credibleinternational presence

Drive value fromacquisitions & grow in SA

Synergy & organic growth & complementary international acquisitions

Steady progress… solid platformSteady progress… solid platform

• Strong business platforms and balance sheetStrong business platforms and balance sheet

• Solid earnings achieved in difficult marketsSolid earnings achieved in difficult markets

• Continuing organic development Continuing organic development

• Internationalising of the Group continuesInternationalising of the Group continues

Well placed for growth opportunitiesWell placed for growth opportunities

Analyst PresentationAnalyst Presentation

Interim results for the Interim results for the half year to 30 June 2002half year to 30 June 2002

AppendixAppendix

Life – Value of new businessLife – Value of new business

£m£m 20022002 20012001interiminterim Margin Margin interiminterim MarginMargin

IndividualIndividual 1616 21%21% 1919 19%19%GroupGroup 99 40%40% 77 39%39%

Total SA lifeTotal SA life 2525 25%25% 2626 22%22%

United StatesUnited States 3131 18%18% -- --

Rest of WorldRest of World 22 14%14% 22 14%14%

TotalTotal 5858 20%20% 2828 21%21%

OMLAC(SA)* net cash flowOMLAC(SA)* net cash flow

Single premiumsSingle premiums 5,7705,770 3,6863,686 9,4569,456 8,1108,110Recurring premiumsRecurring premiums 4,9124,912 1,8421,842 6,7546,754 6,2746,274

Total premiumsTotal premiums 10,68210,682 5,5285,528 16,21016,210 14,38414,384

MaturitiesMaturities 4,4354,435 -- 4,4354,435 3,5713,571AnnuitiesAnnuities 1,6211,621 1,0391,039 2,6602,660 2,5792,579Death & disabilityDeath & disability 1,0491,049 591591 1,6401,640 1,4011,401Fund benefitsFund benefits -- 761761 761761 838 838Surrenders/terminationsSurrenders/terminations 2,6382,638 5,3865,386 8,0248,024 6,6546,654

Total claimsTotal claims 9,7439,743 7,7777,777 17,52017,520 15,04315,043

Net cash flowNet cash flow 939939 (2,249)(2,249) (1,310)(1,310) (659)(659)

IndividualIndividual GroupGroup InterimInterim Rm Rm businessbusiness businessbusiness TotalTotal 2001 2001

* Including Guernsey business

£m£m June 2002June 2002 Dec 2001Dec 2001South AfricaSouth Africa

NedcorNedcor 939939 902902M&FM&F 134134 112112Portfolio investments - SAPortfolio investments - SA 639639 548548Portfolio investments - internationalPortfolio investments - international 112112 126126Portfolio investments - dual listedPortfolio investments - dual listed 172172 187187SA asset managementSA asset management 6565 5555Cash and otherCash and other 6969 (9)(9)

USUSUS asset management (incl. goodwill)US asset management (incl. goodwill) 1,1841,184 1,2751,275US life (incl. goodwill)US life (incl. goodwill) 314314 281281

UK and Rest of WorldUK and Rest of WorldUK asset management (incl. goodwill)UK asset management (incl. goodwill) 418418 440440Portfolio investmentsPortfolio investments 102102 6565

Gross debtGross debtUS US (1,205)(1,205) (1,245)(1,245)UK and other UK and other (93)(93) (113)(113)

Adjusted net worthAdjusted net worth 2,8502,850 2,6242,624

Adjusted net worthAdjusted net worth

TaxTax

South AfricaSouth Africa

Life assurance & asset managementLife assurance & asset management 173 173 52 52 30%30% 233 233 71 71 30%30%

Banking (100% Nedcor, incl. OM Bank)Banking (100% Nedcor, incl. OM Bank) 128 128 25 25 20%20% 168 168 35 35 21%21%

General insuranceGeneral insurance 19 19 4 4 21%21% 24 24 8 8 33%33%

320 320 81 81 25%25% 425 425 114 114 27%27%

United StatesUnited States

Asset managementAsset management 60 60 9 9 15%15% 64 64 10 10 16%16%

LifeLife 33 33 10 10 30%30% - - - - --

93 93 19 19 20%20% 64 64 10 10 16%16%

United Kingdom & Rest of WorldUnited Kingdom & Rest of World (32) (32) 6 6 - - (34) (34) 5 5 --

Total GroupTotal Group 381 381 106 106 28%28% 455 455 128 128 28%28%

June 2002June 2002 June 2001June 2001

Op Op profitprofit TaxTax

Effective Effective raterate

Op Op profitprofitTaxTax

Effective Effective raterate