International Operations & Strategy

1. International Operations & Strategy Derek Muller Executive Director

2. International Banking Strategy • Sustainable businesses in which we have core competencies • Customer Driven e.g. trade and project finance • Working with Old Mutual • Low Risk approach in Africa • Commercialisation of Technology and Operations • No major changes with integration of BoE. • No intention to do retail banking in developed markets. Limited retail in neighboring countries. • No international investment banking aspirations.

3. Nedcor Offshore Structure • Jersey, Geurnsey • Isle of Man • Gerrard Private Bank • Fairbairn Trust • BoE / Stenham • Beijing Rep Office • Correspondent Banking • Trade Finance • Taipei Rep Office • Correspondent Banking • Private Banking • Hong Kong branch • Treasury • Corporate Banking • Private Banking • Origination (Forfaiting) • Trade Finance • Structured Trade Finance • London Branch • Treasury • Corporate Banking • Private Banking • Forfaiting (Risk) • Trade Finance • Structured Trade Finance • Singapore Branch • Correspondent Banking • Trade Finance • Origination (Forfaiting) • Private Banking • Nedbank Trade • Services (Mauritius) • Trade Finance • Structured Trade Finance

4. Nedcor Africa Structure SBM FINCOM MBCA Banque SBM Commercial Bank of Namibia Swaziland Lesotho

5. Old Mutual plc 52.4% 100% Nedcor Limited Gerrard Limited 100% Old Mutual International Holdings Ltd. (Bermuda) 75% 25% Gerrard Private Bank (Jersey) Ltd Fairbairn Trust Co. Ltd Gerrard Trust (Jersey) Ltd Gerrard Private Bank (IoM) Ltd Gerrard Private Bank Old Mutual have an option to increase their shareholding to 51% . Brand licence agreement with Gerrard Ltd U.K.

6. Gerrard Private Bank Strategic Rationale for Joint Ownership • It provides an opportunity, outside South Africa, for Old Mutual and Nedcor to develop their relationship. • Draws on the complementary strengths of both shareholders in the asset and risk management areas. • It provides further hard currency earnings for Nedcor. • Obviates overlap in the HNW market. • Maximises the skill transfer synergies between the group.

7. Gerrard Private Bank • Strategy: • Work the Gerrard client base. • Expand South African client base • Recently rated internationally A2P1 by Moodys • Award winning products and services • Launched in South Africa via Representative Office September 02 • Subject to regulatory approval will open a Representative Office in Hong Kong 4th quarter 02 • Plans to remain a full international Private Bank not an Anglo/South African offering

8. BoE • BoE in the Isle of Man (RSA focussed) • Stenham Gestinor (SG) has a presence in Guernsey (RSA focussed), Luxembourg (Company Admin) and Switzerland (European focussed), with smaller offices in Panama, BVI, Netherlands. SG Trade Finance. • Chiswell Assoc. - Asset Management (focus on charity funds)

9. NIB offshore • Multimanager (NIBi) • IoM and London • Targets: Individuals and institutions both domestic and international • Treasury structured products • London • Targets: SA corporates offshore, asset managers and own account

10. Nedcor Africa Structure NEDCOR AFRICA MBCA Zimbabwe Term & Project Finance Trade & Commodity Finance Nedbank Lesotho SBM Mauritius Nedbank Swaziland Equator Fincom Malawi Banque SBM Madagascar Commercial Bank of Namibia SBM Nedbank International

11. Africa Strategy • Not “one size fits all” • Limited investment of capital • Physical Presence • Low-risk (limited retail branch network) • Low capital initiatives • SADC and Countries contiguous to RSA • Work with South Africa Corporate and Commercial clients • Structuring capability centred in Johannesburg and London: • Trade & Commodity • Project Finance

12. Africa Strategy • Aplitec Strategy in Africa (Aplitec held 29% by Nedcor) • Supportive of NEPAD • Alliances • BNP Paribas • HSBC • State Bank of Mauritius

13. African Project Finance • Risk mitigation via ECIC • Ability to assess and take commercial risk • Ability to manage risks • Professional experienced team • Debt and equity provider for limited recourse finance projects in SADC • Sourcing and implementation of structured, corporate and limited recourse finance transactions in Namibia

14. Commercialisation of Technology & Operations • Assessed as being globally competitive in the application of process and information technology to improve productivity • Precedents exist for successfully commercialised transaction service providers • Viable opportunity for a commercial entity supplying services both locally and internationally • Volume solution to increasing technology spend required to remain in a pre-eminent position • Differentiated model to unlock shareholder value in medium term • Need 4 – 5 Swisscard type contracts to be material

15. Asia • Have been in Hong Kong since 1984. • Successful track record, other than 1997 meltdown. • Continue to look for expansion opportunities in trade finance. • Singapore trade finance. • Representative offices have been disappointing. • Private banking with Old Mutual.

16. Sources of core earnings The ROE was 12,8% for the six month period ended 30 June 2002.

17. The shape of Nedcor offshore 31 December 2001 • Total assets R50,6bn (26%) • Total advances R32,8bn (22%) • Shareholders’ funds R5,1bn (32%) • Contribution of 17% of core earnings • ROE 11% (25% including translation gains)

18. Questions?