More about managed separation

Before Managed Separation

Current State

Four Strong Independent Businesses

The Old Mutual plc managed separation strategy aims to unlock and create significant long-term value for our shareholders which is currently trapped within the Group structure as well as removing the significant costs arising from that structure. We intend to unlock value through the separation of the four businesses from each other.

Removal of plc central operational and debt costs
  • Delivered annualised cost savings of £31 million

Unlocking the conglomerate discount
  • Conducting ongoing regulatory and stakeholder engagement to secure required approvals for managed separation

  • Asset realisations significantly progressed

    • OMAM is now independent from Old Mutual plc. During H1 2017 we have sold and contracted to sell approximately 45% of the business for net proceeds of $785 million, which would reduce Old Mutual plc's stake to 5.5%

    • Sale of 26% stake in Kotak Mahindra Old Mutual Life insurance for net proceeds of 138 million, due to complete in H2 2017

    • Completion of sale of Old Mutual Wealth Italy for 210 million

  • Materially reduced plc holding company debt following a 273 million repurchase and redemption in February 2017

  • We expect the listing of OMW and Old Mutual Limited (OML), the South African holding company which will initially consist of OMEM, the Group's Nedbank shareholding and Old Mutual plc, to take place in 2018 at the earliest opportunity after Old Mutual's 2017 full year results

Preparing businesses for independence by enhancing business performance with appropriate standalone balance sheets
  • OMEM (Old Mutual Emerging Markets) - appointed new CEO with a focus on cost efficiency leadership; defending and growing market position in South Africa; turnaround of Old Mutual Insure and East Africa on track and improving the RoE across Rest of Africa; appointed Mike Ilsley as Chief Financial Officer

  • OMW (Old Mutual Wealth) - appointed new CFO, Tim Tookey; continued reshaping and strengthening of the Board and executive; completed successful acquisitions of distribution networks; Platform transformation programme transitioned to FNZ

  • OMEM and OMW implementing new standalone operating models

  • 200 million of capital injected into OMW as an initial step in preparing capital structures and transition of centrally held liquidity buffers

*A summary of external progress updates as at 11 August 2017

Our three transition anchors

1

Working with our businesses to separate from Old Mutual plc, prepare to be standalone businesses and continue to deliver enhanced performance relative to their peer groups.

2

Stewardship of the managed separation process, balancing value, cost, time and risk.

3

Fulfilling Old Mutual plc's ongoing regulatory obligations; and managing its debt obligations, central cost reductions and distributions to shareholders.

What will happen to my Old Mutual policies/investments?

Your Old Mutual policy will not be affected. This separation is relevant to shareholders who directly own shares in the UK- and/or South African-listed businesses of Old Mutual plc and/or Nedbank Ltd and/or OM Asset Management in the US.


Will this have any impact on me as a customer?

No, it will not. However, we do believe in time that this process will lead to each of our underlying businesses being more competitive and more relevant to our customers and so should be beneficial for customers.


For any other queries please contact us.

What will happen to my Old Mutual shares?

If you hold a direct investment in Old Mutual plc or Nedbank Ltd on the UK or South African stock exchange, please visit the investor relations section of our website for more detailed information.

Shareholder queries

United Kingdom: Equinti Limited
Tel 0871 384 2878* (if calling for the United Kingdom)
Tel +44 121 415 0833 (if calling from overseas)
Website www.shareview.co.uk

Calls cost 8p per minute plus network extras.
Lines are open 8.30am to 5.30pm Monday to Friday excluding UK public holidays.

South Africa: Link Market Services South Africa (Pty) Ltd
Tel +27 (0)86 140 0110
Email oldmutualenquiries@linkmarketservices.co.za
Website investorcentre.linkmarketservices.co.za
Malawi: National Bank of Malawi
Tel +265 1 823 483 / +265 1 820 900
Fax +265 1 820 054
Email nbminvestment@natbankmw.com
Namibia: Transfer Secretaries (Pty) Limited
Tel +264 (0)61 227647
Fax +264 (0)61 248531
Website ts@nsx.com.na
Sweden: Euroclear Sweden AB
Tel +46 8 402 9000
Zimbabwe: Corpserve Registrars (Pvt) Ltd
Tel +263 4 751 559/61
Fax +263 4 752 629
Email enquiries@corpserve.co.zw