Masisizane Lets Help Each Other

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MasisizaneLets Help Each Other

• Old Mutual Investment in Shared Economic Growth

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Agenda

• Introduction and overview
• Jim Sutcliffe, CEO, Old Mutual plc
• Introducing Masisizane, an investment in shared
  growth
• Paul Hanratty, MD, Old Mutual South Africa
• Questions

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Jim Sutcliffe

• CEO
• Old Mutual plc

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Demutualisation From Mutual Society to
International Group

• Before demutualisation in 1999, we were an SA
  mutual life assurer, with international ambitions
• Today
• 40 countries
• 3rd largest financial services group in the UK,
  8th largest in Europe
• Fortune 200 company
• But our heartland remains South Africa
• We remain committed to the growth of our business
  here
• And to a prosperous future for all who live here

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Introduction

• Demutualisation meant free shares for 3.2m
  policyholders
• 98 success rate in distributing free shares
• Despite extended period and huge effort, 2,
  worth R1.3bn not reached
• How will this be used?
• R400m for future claims by eligible policyholders
• R300m for enhancements to policy values of small
  policies
• R400m (after tax) to be invested in shared
  economic growth in SA Masisizane (Lets Help
  Each Other)
• Masisizane an exciting investment that will make
  a real difference for those who need it most

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Paul Hanratty

• MD
• Old Mutual South Africa

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Introducing Masisizane

• Economic growth is not enough
• We cant wait for trickle-down effects
• We have to reach those parts of the economy that
  normal growth doesnt reach
• We need SHARED growth
• ASGISA provides the framework and the stimulus
  for business to do something real
• Now Old Mutual shareholders have agreed to a
  further significant investment in shared growth
  in South Africa

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Masisizane R400m investment

• How will the money be invested?

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1. Women-owned enterprise development

• Investments in businesses that stimulate job
  creation and enterprise development in poor areas
• The real engines of job creation
• R200m towards women-owned small and medium-sized
  enterprises
• Funds of between R100k and R5m
• Urban focus
• R60m towards women-owned micro-enterprises
• Funds of between R500 and R100k
• Rural focus
• All provinces, with limits for Gauteng and W.
  Cape
• Technical support and mentorship
• Product-to-market initiative, together with other
  companies

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2. Financial Education

• R60m investment, over and above existing
  initiatives
• Educating consumers on key financial principles
• Educating consumers on financial decision-making
  at different life stages
• Educating emerging entrepreneurs on financial
  management principles to run their businesses
• Equipping learners with knowledge to make
  informed financial decisions when they earn
  incomes
• All 11 official languages
• Reach through worksites, stokvels, burial
  societies, schools, community groups

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3. ILima Trust

• Retain skills of retiring Old Mutual executives
  to consult
• Capacity building Training of individuals in
  national, provincial and local government, in
  support of Project Consolidate
• Community development self-help, skills
  development, anti-poverty measures
• Training and support for emerging
  micro-enterprises

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4. Skills development (JIPSA)

• In 2006, Old Mutual supported JIPSA by training
  100 public sector project managers
• Continuation of partnership with government in
  areas of need

5. Promotion of investment into SA

• Need to complement internal investment with
  international investment in South Africa
• Old Mutual sees itself as ambassador for South
  Africa
• Funds to be allocated to improve perceptions of
  SA as investment destination

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Investment as a catalyst for shared growth

• Masisizane supports ASGISA by investing in
• enterprise development,
• women entrepreneurs,
• capacity building,
• skills development, and
• financial education
• Help people to grow their businesses and their
  own wealth, which in turn is a lever for growth

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Investment as a catalyst for shared growth

• Masisizane complements existing Old Mutual
  investments
• Project Hluma R250m million initiative with DBSA
• Education Trust higher education scholarships -
  100 in 2007
• Black Distributors Trust loans of up to R120 000
  to black brokers
• Investments in infrastructure R5.5 billion
  invested in IDEAS Fund
• Project Consolidate -building the capacity of
  struggling municipalities
• We invite the business community to join us in
  promoting shared growth

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MasisizaneLets Help Each Other

• QUESTIONS