Old Mutual plc is an international financial services group with significant business interests in Africa, the United States and the United Kingdom. South Africa is the core of the business and, through clients’ savings, the Old Mutual Group (or the “Group”) is a significant financial participant in the South African economy. It is, therefore, important that Old Mutual plc’s shareholders' long-term interests are aligned with the success of South Africa as a country. We believe that Black Economic Empowerment (“BEE”) is a key requirement for the promotion of sustainable economic growth and social development in South Africa and is therefore fundamental to the interests of our employees, clients and shareholders.

As an active participant in the development of the Financial Sector Charter (“FSC”), the Old Mutual Group is committed to the goals and targets set out in the FSC. Along with the South African Insurers Association, the Life Offices’ Association and the Banking Association amongst others, the Old Mutual Group is a signatory to the FSC signed on the 17 October 2003 and views the FSC as setting minimum standards for financial sector participants. The Group Transactions have been designed to complement the Group’s overall strategy towards implementing broad-based empowerment in its businesses. The Group Transactions are truly broad-based and include employees and management, clients, distributors, black trade union members, professional bodies, entrepreneurs, women’s and community groupings throughout South Africa.

The owners of shares to be issued in the Group Transactions are set out below:

• Employees and management – The Group recognises the importance of creating an employee and management complement that is representative of South Africa’s demographics. Acknowledging that the Group is not fully representative and that transformation comes from within, the Group proposes to set aside shares with a market value of R2 726m to recruit, retain and incentivise black employees and management. These shares will initially be distributed to an estimated 29 260 Group employees of which approximately 17 500 are black.
• Clients and Distributors – Part of the Group’s strategy is to focus on black clients. An aggregate of R1 911m worth of shares have been set aside for clients and distributors throughout South Africa. R288m worth of Old Mutual plc shares have been assigned to develop black distributors in underserved markets. R1 593m of Nedcor shares will be made available to black retail and corporate banking clients and R30m of Mutual & Federal shares have been set aside to support black people wishing to develop broker businesses.
• Communities – Since 1994, the Group has invested over R750m in community development around South Africa. As part of the Group Transactions, an additional R148m will be allocated to black communities and charitable organisations in every province throughout South Africa. In addition R576m of Old Mutual plc shares have been assigned to assist with the education of black members of unions who do business with Old Mutual (SA).
• Black Business Partners – The WIPHOLD and BRIMSTONE Consortia (in the case of Old Mutual (SA) and Nedcor) and the WIPHOLD Consortium and Mtha-we-Mpumelelo (“Mtha”) (in the case of Mutual & Federal) have been chosen as active Black Business Partners to assist in growing the business and driving transformation.