Results for the six months ended 30 June 2007 Steady profits - underlying growth strong • Net client cash flows (NCCF) £11.8 billion, 10% of opening funds under management (FUM) on an annualised basis • Life APE up 10% to £859 million (up 17% at constant exchange rates) - SA retail up 21% as sales force productivity and bancassurance grows, corporate flat - US up 34%: Bermuda variable annuities strong - UK up 23%: Open architecture continues to thrive - Nordic slower following tax changes and price pressure - ELAM: matches last year's highs • Investment performance strong in US and Europe, recovering in SA • Funds under management up 11% to £263 billion • Skandia continuing to exceed acquisition assumptions in total and on track to deliver promised synergies. • US Life actuarial review complete and provisions made; business now well positioned for the future • Adjusted earnings per share steady at 8.2p on an IFRS basis (30 June 2006: 8.5p*) • Adjusted embedded value per share (EEV basis) 161.6p at 30 June 2007 (31 December 2006: 161.1p***) • Interim dividend increased by 10% to 2.3p (32.59 cents**) per share, in line with underlying growth rates Jim Sutcliffe, Chief Executive, commented:"Underlying business performance during the first half, driven principally by high quality investment management, resulted in strong net client cash flows and growth in funds under management - the key driver of profitability. The Skandia synergy and development targets are on track. Group earnings, however, have been muted by the strengthening of the Sterling against the Rand and the US Dollar, and the provisions following the completion of the actuarial review in the USA. Our strong capital position and powerful set of international businesses will allow us to grow even if economic conditions continue to be turbulent." Enquiries Investor Relations Malcolm Bell UK +44 (0)20 7002 7166 Deward Serfontein SA +27 (0)21 509 8709 Media James Crampton UK +44 (0)20 7002 7133 Nad Pillay SA +27 (0)21 504 8026 College Hill (UK) Tony Friend UK +44 (0)20 7457 2020 Gareth David UK Notes Wherever the terms asterisked in the Financial Highlights are used, whether in the Financial Highlights, the Chief Executive's Statement, the Group Finance Director's Review or the Business Review, the following definitions apply: * For long-term and general insurance business, adjusted operating profit is based on a long-term investment return, includes investment returns on life funds' investments in Group equity and debt instruments, and is stated net of income tax attributable to policyholder returns. For all businesses, adjusted operating profit excludes goodwill impairment, the impact of acquisition accounting, the impact of closure of unclaimed shares trusts, profit / (loss) on disposal of subsidiaries, associated undertakings and strategic investments and dividends declared to holders of perpetual preferred callable securities. Adjusted operating earnings per ordinary share is calculated on the same basis as adjusted operating profit. It is stated after tax attributable to adjusted operating profit and minority interests. It excludes income attributable to Black Economic Empowerment (BEE) trusts of listed subsidiaries. The calculation of the adjusted weighted average number of shares includes own shares held in policyholders' funds and BEE trusts. ** Indicative only, being the Rand equivalent of 2.3p converted at the exchange rate prevailing on 30 June 2007. The actual amount to be paid by way of interim dividend to holders of shares on the South African branch register will be calculated by reference to the exchange rate prevailing at the close of business on 18 October 2007, as determined by the Company, and will be announced on 19 October 2007. *** Restated due to addition of own shares in Employee Share Ownership Plans (ESOP) Forward-looking statements This announcement contains forward-looking statements with respect to certain of Old Mutual plc's plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond Old Mutual plc's control, including, among other things, UK domestic and global economic and business conditions, market-related risks such as fluctuations in interest rates and exchange rates, policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties or of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in territories where Old Mutual plc or its affiliates operate. As a result, Old Mutual plc's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Old Mutual plc's forward-looking statements. Old Mutual plc undertakes no obligation to update any forward-looking statements contained in this announcement or any other forward-looking statements that it may make. Notes to Editors: A webcast of the analyst presentation and Q&A will be broadcast live at 9.30 a.m. (UK time) and 10.30 a.m. (Swedish and South African time) today on the Company's website, www.oldmutual.com. Analysts and investors who wish to participate in the call should dial the following toll-free numbers: UK 0500 101 630 Sweden 0200 887 651 South Africa 0800 991 468 North America +1 877 491 0064 Playback (available until midnight on 24 August 2007): UK 0207 031 4064UK toll-free 0800 358 1860 Sweden +46 (0) 850 520 333 North America toll-free +1 888 365 0240 North America toll +1 954 334 0342 Access code: 761356 Copies of these results together with high-resolution images (at http://oldmutual.com) and biographical details of the Executive Directors of Old Mutual plc, are available in electronic format to download from the Company's website. A Financial Disclosure Supplement relating to the Company's Interim results can be found on the website. This contains a summary of key financial data for 2007 and 2006. An interview with Jim Sutcliffe, Chief Executive, in video, audio and text is available on the Company's website, www.oldmutual.com, and on www.cantos.com.
Results for the six months ended 30 June 2007
| Source: Old Mutual plc