Transcript Launching the Private Wealth Experience from Old Mutual

Old Mutual South Africa
Corporate Citizenship
Transformation Programme
10/06/03
Change
The advent of democracy in 1994
Globalisation
Competition
- Innovation and agility
- Legislative reforms
- Learning to dealing with the dog eat
dog global environment pretty fast.
Five key challenges
-
Poverty
Unemployment
Economic Stagnation
Racism
Inequality
- Dealing with just one of these issues would have been a
formidable challenge for any government; have to tackle
all five at the same time was a daunting prospect.
Sixth challenge
Fall of the Berlin Wall
Rise of the internet era
April 1994 –Marrakesh Agreement –WTO
Capital flows
Pressure to reduce tarrifs
Knowledge and skills became the only source for
comparative advantage.
The gap bet. the rich and poor widened
Globalisation
Key features
1960s real GDP averaged @ 5.5%
1970s fell to 3.3%
1980s fell again to 1.4%
Bet. 1986 – 92 average annual growth of
real GDP fell to 1% @ the same time
Job Creation fell to zero in the 80’s and to
negative territory in 1986.
Why Corporate Citizenship and
Transformation?
Leading corporate citizen and champion of
transformation and development
 Financial services company of choice
Aligns company practices with changes in South
Africa, and installs best practice corporate
citizenship within four years (2000 – 2003)
What underpins our Corporate
Citizenship Philosophy
 Extends beyond legislative compliance
and social investment
 Integrated into business strategy
 Covers business, workplace and social
practices
 Adds value to bottom line, whilst
fulfilling societal responsibilities
Key Priority Areas
Aligning business activities with changing market needs
and national economic & social priorities
Focus on specific issues:
– Black economic empowerment
– Infrastructural investment
– Social security
– Savings & financial education
– HIV/Aids
– Rural Development
– Affirmative Procurement
– Investment in South Africa
Business Activities: some detail
BEE
- All businesses now have to build BEE into their
business plans.
- BEE assets = R1.9bn and growing
- BEE partnerships.
- BEE & intermediaries: development of black brokers
Infrastructure Investment:
- R2bn owned and managed assets and growing
- R1bn of OMLACSA assets invested in infrastructure.
- IDEAS Fund; SA Infrastructure Fund.
- Over 50% of sales force is black.
Strategic Investment /Joint
Ventures
Aka Capital + BOE Asset Management(55%)
Wiphold(Women Investment Portfolio Holdings
(32.5%)
Umbono Asset Managers alliance with OMAM
Setsing Financial Services (65% owned by Trade
Unions)
J&J Holdings –R37.5m capital injection
Pro-Active Health solutions
32m Policy holders became shareholders – 60% Old
Mutual plc share register are South African.
Est. that black people indirectly own 16% of the
individual shareholding in OM plc and via the pension
funds.
SAIF
ASSETS UNDER MANAGEMENT
•N4 Maputo Corridor
•Limpopo Bridge
•N3 Toll Road
•National Housing Finance Corp
•Bakwena Platinum Corridor
•Comazar
•Beitbridge Bulawayo Railway
•Telkom Empowerment
•Trans African Railway
•Infrastructure Finance Corp. (INCA)
Transformation plan –
aligning workplace/internal practices
 Governance:
Board; executive & line management; nonfinancial measurement & Corporate Citizen Report
 Workplace practices:
IR; Employment equity & diversity management; Skills
development; HIV/Aids workplace programme;
Affirmative procurement
 Corporate culture:
Building corporate citizenship into company culture
through Siyakhula, reward systems, Orientation,
OMBS, internal communication & Staff Community
Builder
Workplace Activities: cont.
Skills Development & OM Business School
-
Business School launched in February 2001
- over 4000 units of training in 2001
- assistance to government (SARS; DTI; DPSA)
- Pilot site for Dept. of Labour’s Investors in People Project
Corporate Culture and Siyakhula
- 8 month process involving all 13 000 employees
- Link between personal growth and business growth
- Focus on building employee and company commitment to SA
Transformation plan – aligning our
social investment activities
Old Mutual Foundation (R20m p.a.)
- Rural economic development initiative; AIDS Orphans; Staff
Volunteerism programme; Education (primary school mathematics &
school infrastructure)
Sponsorships (R18m p.a.)
- Financial education; jazz; choirs, community builder; road running
Special Projects
- Business Trust (R18m)
- Proudly South Africa (R8m)
- CPSI (R2m)
In the Community
Old Mutual Foundation (R20m p.a.)
– Rural economic development initiative (Nov 01 launch)
– AIDS Orphans (2002 launch)
– Staff Community Builder
– Education and health focus
In the Community
Sponsorships (R18m
p.a.)
– Financial education
– Choirs
– Community builder
– Road running
In the Community
Special Projects
– Business Trust (R18m)
– Proudly South Africa (R8m)
– Centre for Public Service Innovation (R2m)
HIV/AIDS
HIV/AIDS: Holistic Programme
- Workplace:
- R4m workplace programme: seroprevalence testing,
awareness and prevention, counselling, managed
healthcare programme
- Business:
- Product development and statistical research
- Community:
- Support for education programmes (R1.4m)
- AIDS Orphans Programme (R1.6m)
- Soul City (R3m)
Who got shares?
Policyholders at midnight on
25th August 1998 qualified for free shares
200 membership shares + value shares
based on number and size of policies
3.2 million shareholders at listing
1 million sold at listing
524 000 have retained shares
How to claim shares
Contact Old Mutual on 0861 61 9061
Complete Confirmation Form
Return with certified copy of ID
Takes Two weeks to issue shares
Dividends and % paid into bank account
Shares held electronically