AUDITED RESULTS

1
AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2002
2
ALEXANDER FORBES

• Overview Highlights
• Financial Results
• Strategic Issues

3
REGIONAL STRUCTURE
ASIA
UK/EUROPE
AFRICA
LATIN AMERICA
4
GROUP PROFILE
REGION EMPLOYEES COUNTRIES Africa 3
390 11 UK/Europe 1 398 7 Asia 170 8 Latin
America 405 5 Total 5 363 31
excludes Associates and EOS Risq Network
5
GROUP PROFILE
Region Revenue Profits Africa 42 52 UK/Euro
pe 50 48 Asia 2 2 Latin America
6 (2) Total 100 100
6
SHAREHOLDING
7
SUBSIDIARIES / ASSOCIATES
2002 2001 Investment Solutions 59.6
58.5 Guardrisk 100.0 70.0 Medscheme 19.1
19.1 National Britannia 20.0 20.0 Thebe
Risk Benefits 49.9 49.9 Fihrst 40.0 80.0
plus options on 12
8
HEADLINE EARNINGS PER SHARE GROWTH
pa
growth in headline EPS
9
FIVE YEAR COMPOUND GROWTH
HEADLINE EARNINGS PER SHARE Rand 38
pa Sterling 18 pa US Dollars 17 pa
10
ACQUISITION ASSESSMENT
2002 2001 Rm Increase Rm Effect of UK
acquisitions Trading profit from
UK 420 68 250 Less Finance costs for
acquisitions (117) (29) Net profit contribution
from UK 303 37 221

• Integration completed
• Further acquisitions In process (UK/
  Brazil/Europe)

11
SUCCESSION PLANNING

• Rael Gordon joined on 1st April 2002
• Deputy Group CEO
• Relocating to UK August 2002
• Group CEO wef 1st January 2003

12
THE PAST TWELVE MONTHS

• World economic slowdown
• Hardening general insurance rates
• Lack of general insurance capacity
• Formal employment in RSA reducing

13
ALEXANDER FORBES Africa

REVENUE PROFIT Rm
2002 2001 2002 2001 Financial
Services 739 682 181 150 Investment
Solutions 400 311 143 97 Risk Services 651 538 13
8 81

• Risk Services strong growth
• Recovery in Personal Lines broking
• Financial Services satisfactory growth
• Investment Solutions 43 earnings growth
• Thebe RB underperformed
• Medscheme satisfactory growth

14
ALEXANDER FORBES UK / Europe

REVENUE PROFIT Rm
2002 2001 2002 2001 Financial
Services 475 313 61 17 Direct
Marketing 380 337 120 111 Risk
Services 1,275 654 239 122

• Risk Services wholesale speciality strong
  growth
• Risk Services retail consolidation and mixed
  results
• Stakeholder slow but Financial Services strong
  growth
• LCP finalised (60), option for 80
• Direct Marketing (MIS) modest growth
• National Britannia behind target

15
ALEXANDER FORBES Asia

REVENUE PROFIT Rm
2002 2001 2002 2001 Asia 94 63 20 8

• Strong regional performance
• Good results from Hong Kong, Singapore and
  Thailand
• Sime Darby JV in Malaysia

16
ALEXANDER FORBES Latin America

REVENUE PROFIT Rm
2002 2001 2002 2001 Latin
America 225 172 (18) 18

• Argentina restructured downsized
• Brazil new initiatives slower than expected
• Mexico retail strong growth
• Actuarial Consulting acquisition in Mexico Bufete

17
FINANCIAL RESULTS MIKE ILSLEY
18
FINANCIAL RESULTS
2002 2001 RM INCREASE RM Revenue from
operations 4,239 38 3,070 Net operating
expenses (3,457) (2,564) Operating
profit 782 55 506 Operational interest
income 102 98 Trading profit 884 46 604 Operati
ng profit ratio 18 16 Trading profit
ratio 21 20
19
OPERATING PROFIT RATIO
pa
Operating profit
20
TRADING PROFIT RATIO
pa
Trading profit
21
UK/EUROPE ORGANIC GROWTH
INCREASE
REVENUE FROM OPERATIONS GROSS ORGANIC Financial
Services 52 33 Direct Marketing 13 13 Risk
Services 95 55 Total 63 37
22
UK/EUROPE CURRENCY EFFECTS
INCREASE
TRADING PROFIT R Financial services 259 175
Direct Marketing 8 -17 Risk Services 96 50 Tot
al 68 29
23
HEADLINE EARNINGS
2002 2001 Rm INCREASE Rm Trading
profit 884 46 604 Other interest
income (64) 10 Profit before associates 820 34
614 Associates profits 61 68 Profit before
non-trading items 881 29 682 Unrealised currency
gain 157 35 Profit before taxation 1,038 45 717
Note Above excludes capital gains and losses and
minority interests therein
24
HEADLINE EARNINGS
(Continued)
2002 2001 Rm INCREASE Rm Profit before
taxation 1,038 45 717 Taxation (315) (225) Prof
it after taxation 723 47 492 Minority
interests (83) (68) Headline earnings 640 51 424
Note Above excludes capital gains and losses
and minority interests therein
25
EARNINGS PER SHARE

• 2002 2001
• CENTS INCREASE CENTS
• Headline earnings per share
• - Basic 185,0 49 124,3
• Fully diluted 176,4 48 119,4
• Core headline earnings per share
• - Basic 153,2 31 117,2
• - Fully diluted 147,3 31 112,5
• Attributable earnings per share
• - Basic 160,4 28 125,5
• - Fully diluted 154,2 28 120,6

26
BALANCE SHEET
2002 CHANGE 2001 Rm Rm Rm Ordinary
shareholders funds 771 336 435 - Before
goodwill effects 2,448 2,028 - Goodwill write
off amortisation (1,677) (1,593) Outside
shareholders funds 222 76 146 Liabilities and
provisions 2,467 603 1,864 Capital
employed 3,460 1,015 2,445 Goodwill
assets 1,315 350 965 Other non-current
assets 1,523 510 1,013 Net current
assets 622 155 467 Employment of
capital 3,460 1,015 2,445
27
CASH FLOW
2002 2001 Rm INCREASE Rm Cash from
operating activities 747 722- Cash from
operations 1,123 38 811 - Change in insurance
balances (37) 141 - Tax and dividends
paid (339) (230) Cash invested (660) -33 (990) -
Subsidiaries and associates (244) (952) -
Investments and loans receivable (299) 29 -
Fixed assets (117) (67) Cash from
financing 122 1,393 Movement in cash
balances 209 1,125
28
STRATEGIC ISSUES RAEL GORDON
29
STRATEGIC POSITIONING

• Independent, fast growing provider of financial
  and risk services with niche dominance in
  selected regions and business areas
• Diversity by country and line of business
• Broad balance between Risk and Financial services
  maintained

30
ALEXANDER FORBES FOOTPRINT
Financial Risk Multi- Direct Services Services
Manager Marketing South Africa Rest of
Africa United Kingdom Europe Asia Pacific Rest of
Australasia Latin America North America
A F R I C A
N O N A F R I C A
31
INTEGRATION

• Pragmatic approach
• Retain our growth focus
• Ensure our people identify with our aim and
  culture
• Extract opportunities
• Supplement country head management structure with
  line of business forums

32
WHAT WE EXPECT FROM OUR PEOPLE

• Integrity
• Customer focus
• Passion
• Sales focus
• Quick action (proactive and responsive)

33
AFRICA

• Empowerment profile a top priority
• Actions initiated within each business unit
• Planning underway at shareholder level
• Head office remains in SA with listing

34
CORPORATE ACTIVITY

• Acquisitions to expand our footprint
• By country and line of business
• Continued cautious approach
• Specific focus on Europe and regularly reassess
  North America
• Possible Financial Services entries
• Alternative access to capital required
• Continue to investigate alternative listings
• Consider larger transactions that meet our
  objectives

35
OPERATIONS FOCUS

• External
• Client centric
• Sales and cross selling
• Internal operations focus
• People and culture
• Risk management and reduction
• Expense control

36
GROWTH FOCUS

• Continued delivery from existing business units
• Expansion of our footprint into new territories
  and businesses
• Nurture potential big win opportunities
• Africa
• Retail and smaller corporates
• Empowerment
• Selectively progress opportunities ex SA
• Investment Solutions

37
GROWTH FOCUS
(Continued)

• International
• Value from historical acquisitions
• Expand footprint (across regions and businesses)
• Europe, North America, Financial Services
• Investment Solutions opportunities
• Expected turnarounds (eg Argentina)

38
ALEXANDER FORBES

• Strength through Diversity
• Across regions and businesses
• Roots in Africa, branches around the globe
• Continued focus on stakeholders
• Shareholders, Clients, Employees

39
ALEXANDER FORBES

• While we are not the biggest,
• We will strive to be the best.

40
THANK YOU