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
Rectify Simplify Amplify
Rectify
Rectify Simplify Amplify
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
Rectify Simplify Amplify
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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Rectify Simplify Amplify
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
Rectify Simplify Amplify
Our unique components
Rectify Simplify Amplify
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
Rectify Simplify Amplify
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
Rectify Simplify Amplify
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%