Old Mutual South AfricaCorporate Citizenship
Transformation Programme
10/06/03
Change
The advent of democracy in 1994GlobalisationCompetition- 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 WallRise of the internet eraApril 1994 –Marrakesh Agreement –WTOCapital flowsPressure to reduce tarrifsKnowledge 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 detailBEE - 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 OMAMSetsing Financial Services (65% owned by
Trade Unions) J&J Holdings –R37.5m capital injectionPro-Active Health solutions32m 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
•N4 Maputo Corridor
•N3 Toll Road
•Bakwena Platinum Corridor
•Beitbridge Bulawayo Railway
•Trans African Railway
•Limpopo Bridge
•National Housing Finance Corp
•Comazar
•Telkom Empowerment
•Infrastructure Finance Corp. (INCA)
ASSETS UNDER MANAGEMENTASSETS UNDER MANAGEMENT
Transformation plan – aligning workplace/internal
practicesGovernance: Board;
executive & line management; non-financial 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 shares200 membership shares + value shares
based on number and size of policies3.2 million shareholders at listing1 million sold at listing524 000 have retained shares
How to claim shares
Contact Old Mutual on 0861 61 9061Complete Confirmation FormReturn with certified copy of IDTakes Two weeks to issue sharesDividends and % paid into bank accountShares held electronically
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