Slide 1: Shifting Gears: Accelerating Growth
SHIFTING GEARS Accelerating Growth
Slide 2: Agenda
AGENDA Alessandro Bottega www.presentationists.com Strategic review Financial review Looking ahead Q&A Iain Williamson Casper Troskie Iain Williamson OML ExCo Group CEO Group CFO Group CEO 2
Slide 3: Strategic Review
OLDMUTUAL STRATEGIC REVIEW DO GREAT THINGS EVERY DAY
Slide 4: Execution of Our Strategy
EXECUTION OF OUR STRATEGY Alessandro Bottega www.presentationists.com 4 Implementation of ESG principles across asset owner and asset manager moving at pace
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Slide 6: Execution of Our Strategy Delivering Results
EXECUTION OF OUR STRATEGY DELIVERING RESULTS Strong recovery in the front-end of the business Alessandro Bottega www.presentationists.com 16% >100% 80bps (99%) Life APE Value of Value of new Net client sales new business business margin cash flows R11.4bn R1.3bn 1.9% R0.1bn 15% >100% 520bps 46% Fund
Slide 7: How We Execute Our Strategy
HOW WE EXECUTE OUR STRATEGY Becoming our customers’ first choice to sustain, grow and protect their prosperityAlessandro Bottega www.presentationists.com RECTIFY SIMPLIFY AMPLIFY 7
Slide 8: How We Execute Our Strategy: Commitments to Investors
HOW WE EXECUTE OUR STRATEGY Our commitments to investors Alessandro Bottega www.presentationists.com Change the trajectory of the customer experience RECTIFY Build an entirely new insurance business Realise R750 million cost efficiencies by 2022 SIMPLIFY Regain competitive advantage in Mass and Foun
Slide 9: Operating Environment
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Slide 10: Rebound in Market Levels but Tough Economic Environment
REBOUND IN MARKET LEVELS BUT TOUGH ECONOMIC ENVIRONMENT Alessandro Bottega www.presentationists.com JSE SWIX All Share 2019 2020 Continued outbreaks of COVID-19 constraining growth 2021 17% 6% -1% Growing pressure on consumers affecting affordability Rising global inflation putting continued p
Slide 11: Increased Excess Deaths Due to COVID-19 in 2021
INCREASED EXCESS DEATHS DUE TO COVID-19 IN 2021 Alessandro Bottega www.presentationists.com South African experience 31 Dec 2020 31 Dec 2021 Personal Finance and Corporate Wave 1 Wave 2 Wave 3 Wave 4 impacted more severely by wave 3 Paid R13bn in COVID-19 mortality claims R2.2bn in additional
Slide 12: Segmental Reviews
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Slide 13: Mass and Foundation Cluster
MASS AND FOUNDATION CLUSTER Strong recovery across key metrics Alessandro Bottega www.presentationists.com Life APE sales Overall segment: (Rbn) RFO excluding COVID-19 improved by more than 50% +32% 4.2 3.5 Life and Savings: 2.6 Sustained recovery in productivity Alternative and Foundation cha
Slide 14: Personal Finance and Wealth Management
PERSONAL FINANCE AND WEALTH MANAGEMENT Surpassed 2019 levels on majority of key metrics Alessandro Bottega www.presentationists.com Total Life APE sales Personal Finance: (Rbn) +21% Sales above 2019 levels 4.1 3.7 Continued traction with Old Mutual Protect supporting recovery 3.4 Net client ca
Slide 15: Old Mutual Investments
OLD MUTUAL INVESTMENTS Strong inflows and continued improvement in investment performance Alessandro Bottega www.presentationists.com Net client cash flows Funds above median 2019 Assets under management¹ (Rbn) (%) 2020 (Rbn) >100% +15% 2021 809 4.9 81 69 63 63 63 56 38 702 31 690 25 -0.1 -2.4 FY 20
Slide 16: Old Mutual Corporate
OLD MUTUAL CORPORATE Gained traction in the second half of 2021 Alessandro Bottega www.presentationists.com Life APE sales H1 Recovery picking up pace: (Rbn) H2 3.6 Life sales up nearly 40% during second half of 2021 2.7 2.4 Improved client and intermediary satisfaction levels 1.8 1.4 Growing
Slide 17: Old Mutual Insure
OLD MUTUAL INSURE Net underwriting margin in line with target range Alessandro Bottega www.presentationists.com Gross written premiums Business turnaround is on track (Rbn) +8% Gross written premiums increase led by CGIC 15.9 Improved claims ratio contributing to positive results Net underwr
Slide 18: Rest of Africa
REST OF AFRICA Navigating a challenging environment Alessandro Bottega www.presentationists.com Life APE sales Margin growth and market share gains (Rm) +12% Delayed COVID-19 impacts led to increased claims 1,073 Underwriting result impacted by Property and Casualty claims experience 977 956
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Slide 20: Financial Review
04 FINANCIAL REVIEW
Slide 21: Positive Trajectory on Key Metrics
POSITIVE TRAJECTORY ON KEY METRICS Alessandro Bottega www.presentationists.com EARNINGS CAPITAL EFFICIENCY VALUE RFO excluding COVID-19 impacts Return on net asset value Value of new business (Rbn) (%) (Rm) +18% +520bps >100% 9.0 1,266 9.1 621 3.8 7.7 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021
Slide 22: Pandemic Provisions at 31 December 2021
PANDEMIC PROVISIONS AT 31 DECEMBER 2021 Alessandro Bottega www.presentationists.com Mass and Foundation Personal Old Mutual Rest Rm Cluster Finance Corporate of Africa Total Pandemic provisions at 31 December 2020 1,024 1,979 891 68 3,962 Release of COVID-19 provisions (1,105) (2,868) (1,094) (199)
Slide 23: Results from Operations Excluding COVID-19 Impacts
RESULTS FROM OPERATIONS EXCLUDING COVID-19 IMPACTS Alessandro Bottega www.presentationists.com FY 2021 FY 2020 RFO RFO Direct excl. direct excl. direct COVID-19 COVID-19 COVID-19 Rm RFO impacts impacts impacts % change Mass and Foundation Cluster 2,752 264 3,016 2,008 50% Personal Finance and Wealth
Slide 24: Results from Operations Excluding COVID-19 Impacts
RESULTS FROM OPERATIONS EXCLUDING COVID-19 IMPACTS Alessandro Bottega www.presentationists.com FY 2021 FY 2020 RFO RFO Direct excl. direct excl. direct COVID-19 COVID-19 COVID-19 Rm RFO impacts impacts impacts % change Mass and Foundation Cluster 2,752 264 3,016 2,008 50% Personal Finance and Wealth
Slide 25: Results from Operations Excluding COVID-19 Impacts
RESULTS FROM OPERATIONS EXCLUDING COVID-19 IMPACTS Alessandro Bottega www.presentationists.com FY 2021 FY 2020 RFO RFO Direct excl. direct excl. direct COVID-19 COVID-19 COVID-19 Rm RFO impacts impacts impacts % change Mass and Foundation Cluster 2,752 264 3,016 2,008 50% Personal Finance and Wealth
Slide 26: Results from Operations Excluding COVID-19 Impacts
RESULTS FROM OPERATIONS EXCLUDING COVID-19 IMPACTS Alessandro Bottega www.presentationists.com FY 2021 FY 2020 RFO RFO Direct excl. direct excl. direct COVID-19 COVID-19 COVID-19 Rm RFO impacts impacts impacts % change Mass and Foundation Cluster 2,752 264 3,016 2,008 50% Personal Finance and Wealth
Slide 27: Results from Operations Excluding COVID-19 Impacts
RESULTS FROM OPERATIONS EXCLUDING COVID-19 IMPACTS Alessandro Bottega www.presentationists.com FY 2021 FY 2020 RFO RFO Direct excl. direct excl. direct COVID-19 COVID-19 COVID-19 Rm RFO impacts impacts impacts % change Mass and Foundation Cluster 2,752 264 3,016 2,008 50% Personal Finance and Wealth
Slide 28: Results from Operations Excluding COVID-19 Impacts
RESULTS FROM OPERATIONS EXCLUDING COVID-19 IMPACTS Alessandro Bottega www.presentationists.com FY 2021 FY 2020 RFO RFO Direct excl. direct excl. direct COVID-19 COVID-19 COVID-19 Rm RFO impacts impacts impacts % change Mass and Foundation Cluster 2,752 264 3,016 2,008 50% Personal Finance and Wealth
Slide 29: Results from Operations Excluding COVID-19 Impacts
RESULTS FROM OPERATIONS EXCLUDING COVID-19 IMPACTS Alessandro Bottega www.presentationists.com FY 2021 FY 2020 RFO RFO Direct excl. direct excl. direct COVID-19 COVID-19 COVID-19 Rm RFO impacts impacts impacts % change Mass and Foundation Cluster 2,752 264 3,016 2,008 50% Personal Finance and Wealth
Slide 30: Results from Operations Excluding COVID-19 Impacts
RESULTS FROM OPERATIONS EXCLUDING COVID-19 IMPACTS Alessandro Bottega www.presentationists.com FY 2021 FY 2020 RFO RFO Direct excl. direct excl. direct COVID-19 COVID-19 COVID-19 Rm RFO impacts impacts impacts % change Mass and Foundation Cluster 2,752 264 3,016 2,008 50% Personal Finance and Wealth
Slide 31: Results from Operations Excluding COVID-19 Impacts
RESULTS FROM OPERATIONS EXCLUDING COVID-19 IMPACTS Alessandro Bottega www.presentationists.com FY 2021 FY 2020 RFO RFO Direct excl. direct excl. direct COVID-19 COVID-19 COVID-19 Rm RFO impacts impacts impacts % change Mass and Foundation Cluster 2,752 264 3,016 2,008 50% Personal Finance and Wealth
Slide 32: Improvement in Adjusted Headline Earnings
IMPROVEMENT IN ADJUSTED HEADLINE EARNINGS Alessandro Bottega www.presentationists.com Rm FY 2021 FY 2020 % change Results from Operations excluding direct COVID-19 impacts 9,103 7,742 18% Separately identifiable direct COVID-19 impacts (4,719) (6,079) 22% Results from Operations 4,384 1,663 >100% Sh
Slide 33: Improvement in Adjusted Headline Earnings
IMPROVEMENT IN ADJUSTED HEADLINE EARNINGS Alessandro Bottega www.presentationists.com Rm FY 2021 FY 2020 % change Results from Operations excluding direct COVID-19 impacts 9,103 7,742 18% Separately identifiable direct COVID-19 impacts (4,719) (6,079) 22% Results from Operations 4,384 1,663 >100% Sh
Slide 34: Improvement in Adjusted Headline Earnings
IMPROVEMENT IN ADJUSTED HEADLINE EARNINGS Alessandro Bottega www.presentationists.com Rm FY 2021 FY 2020 % change Results from Operations excluding direct COVID-19 impacts 9,103 7,742 18% Separately identifiable direct COVID-19 impacts (4,719) (6,079) 22% Results from Operations 4,384 1,663 >100% Sh
Slide 35: Improvement in Adjusted Headline Earnings
IMPROVEMENT IN ADJUSTED HEADLINE EARNINGS Alessandro Bottega www.presentationists.com Rm FY 2021 FY 2020 % change Results from Operations excluding direct COVID-19 impacts 9,103 7,742 18% Separately identifiable direct COVID-19 impacts (4,719) (6,079) 22% Results from Operations 4,384 1,663 >100% Sh
Slide 36: Adjusted Headline Earnings to IFRS Profits Reconciliation
ADJUSTED HEADLINE EARNINGS TO IFRS PROFITS RECONCILIATION Alessandro Bottega www.presentationists.com Operations in Zimbabwe 3 489 7 209 (10) 6 662 Recognition of tax (547) on Nedbank (R1.2bn) 5 402 (190) (1 482) Rm Adjusted headline Investment return for Impact of Hyperinflationary Non-core operati
Slide 37: Material One-Off Items
MATERIAL ONE-OFF ITEMS Alessandro Bottega www.presentationists.com Actions taken to mitigate COVID-19 impacts included review of premium rates and release of discretionary margins Continued optimisation of our risk product hedging strategies 784 9,103 211 288 653 844 7,683 5,503 4,384 Rm 2021 RFO 20
Slide 38: Disciplined Capital Management
DISCIPLINED CAPITAL MANAGEMENT Alessandro Bottega www.presentationists.com Group Solvency ratio Target range Completed process with the regulator: (%) 170% - 200% Accounting Consolidation approved by Prudential Authority in December 2021 (2020 prepared on a pro-forma basis) 189 190 199 184 168 N
Slide 39: Superior Returns to Shareholders
SUPERIOR RETURNS TO SHAREHOLDERS R75,4 billion returned to shareholders in ordinary dividends and special distributions Alessandro Bottega www.presentationists.com Ordinary Share Dividends Special Distributions Share buyback (Rbn) (Rbn) Nedbank unbundling Dividend Special distribution cover 2.04 1.7
Slide 40: Value of New Business
VALUE OF NEW BUSINESS Recovery in productivity underpinning higher new business volumes Alessandro Bottega www.presentationists.com VNB VNB margin FY 2020 (Rm) (%) FY 2021 >100% 1,266 6.2 638 621 2.9 +80bps 1.9 323 285 1.3 1.2 1.1 207 207 0.9 0.9 1.0 136 0.5 41 50 Mass and Personal Old Mutual Rest o
Slide 41: Group Equity Value
GROUP EQUITY VALUE Share price trading at a significant discount to GEV Alessandro Bottega www.presentationists.com Rands per share R13.1 R13.2 R15.2 R19.5 R19.5 91.4 91.9 70.3 61.7 62.2 Rbn Market Capitalisation IFRS NAV Embedded Value Eligible Own Funds Group Equity Value 41
Slide 42: On Track for Delivery on Medium-Term Targets
ON TRACK FOR DELIVERY ON MEDIUM-TERM TARGETS Alessandro Bottega www.presentationists.com 2. The 2020 Group Solvency ratio is prepared on a proforma basis following Accounting Consolidation approval by Prudential Authority in December 2021 42
Slide 43: Looking Ahead
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Slide 44: How We Are Faring Against Our Commitments
HOW WE ARE FARING AGAINST OUR COMMITMENTS Progress against our commitments to investors is on track Alessandro Bottega www.presentationists.com Change the trajectory of the customer experience Build an entirely new insurance business Realise R750 million cost efficiencies by 2022 Regain competitive
Slide 45: Integration of Digital Platforms Improving Customer Experience
INTEGRATION OF DIGITAL PLATFORMS IMPROVING CUSTOMER EXPERIENCE 1,1 million active digital users, up 28% from prior year Alessandro Bottega www.presentationists.com Old Mutual Rewards MyOldMutual Old Mutual App Old Mutual Protect South African Customer Satisfaction Index score from 78,9% to 82,5% 1,3
Slide 46: Key Focus Areas
KEY FOCUS AREAS In a substantially rectified business Alessandro Bottega www.presentationists.com 2018 listing empowerment Phased expansion of commitments on track for transactional capability delivery Old Mutual New Savings and Income Growth and Innovation proposition launching geared for success 4
Slide 47: Conclusion
OLDMUTUAL CONCLUSION DO GREAT THINGS EVERY DAY
Slide 48: Do Great Things Every Day
DO GREAT THINGS EVERY DAY
Slide 49: Disclaimer
DISCLAIMER Alessandro Bottega www.presentationists.com This presentation may contain certain forward-looking statements with respect to certain of Old Mutual Limited’s plans and its current goals and expectations relating to its future financial condition, performance and results and, in particular,