March 2019
BEE certificate and annual compliance report

Shareholders are advised that the Company’s 2018 BEE certificate and the Annual Compliance Report in terms of section 13G(2) of the Broad-Based Black Economic Empowerment (“B-BBEE”) Amendment Act, No 46 of 2013, are available on the Company’s website at: 

Overall BBBEE status
Old Mutual has retained its Level 2 BBBEE status for the 10th consecutive year.

Deemed Black South African Economic interest in Old Mutual
The Old Mutual share register became more South African following the share-for-share exchange between Old Mutual plc (“OM plc”) and Old Mutual Limited (“OML”) and the subsequent listing of OML on the JSE. This shift towards a more South African register had a positive impact on Old Mutual’s deemed South African Black Ownership as measured in accordance with the Amended Financial Sector Code (“Black Ownership”).

An industry wide process which involves the Association for Savings and Investments South Africa (“ASISA”) and the Financial Services Transformation Council (“FSTC”), constituted in terms of the Financial Sector Code with the objectives of, inter alia, reviewing implementation guidelines and supporting compliance, is underway to clarify the recognition of value distributed to BBBEE shareholders through the unbundling of an asset.

As the consultation process is still on-going and in the absence of an agreed approach with the FSTC, Old Mutual has excluded the value of assets distributed to its BBBEE shareholders as part of the Managed Separation from its Black Ownership disclosed in the OML BBBEE certificate dated 13 March 2019. This has more than offset the positive impact of a more South African register resulting in a net reduction in Old Mutual’ s Black Ownership from the 21.5% reported as at 31 December 2017, to 19.5% reported as at 31 December 2018.

Old Mutual is of the view that value distributed to its BBBEE shareholders during 2018 as part of the Managed Separation should be appropriately recognised.M

Should this process deliver a favourable outcome, Old Mutual will re-issue its BBBEE certificate. In this instance its Black Ownership is expected to increase to a level above 21.5%, reported as at 31 December 2017, but to remain below the FSC target of 25%.