Financial Results for the year ended 31 December 2002

Programme Year in review Financial review Strategic review Prospects Richard Laubscher Financial review Stuart Morris Strategic review Derek Muller & Tom Boardman Prospects

Year in review Richard Laubscher

The year in context Macro issues Microlending malaise Small bank crisis Industry consolidation International bank departures Rising inflation and interest rates Strengthening Rand Community Reinvestment Act and Financial Charter mooted Mortgage originators and integrators A challenging year

Strategic initiatives Acquisition of BoE Acquisition of NIB minorities Integration of banking subsidiaries New operating structures developed Enhanced capital structure Wealth Management rationalisation Old Mutual Bank JV refined Acquisition of Planet Finance Created a stronger group

Strategic scorecard Acquisitions BoE  Imperial  Gerrard Private Bank  FBC Fidelity  ENF  Didata  Alliances Old Mutual Bank/Bancassurance  Pick ’n Pay Go Banking  JD/Capital One microlending market  Amex/Capital One  Outsourcing 

Year in review Core earnings up from R3,1bn to R3,4bn Core eps up 4% to 1 330c Organic growth in interest-earning assets +17% boosted to +31% by BoE Topline revenue growth Organic: NII +12% NIR +15% Acquired: NII + 8% NIR +22% Expense growth Organic: +13% Acquired: +22% R266m net contribution from BoE Net profit of R520m offset by funding cost of R254m Provisions – SME & Microlending Gerrard Private Bank contributed 1% to organic expense growth

Segmental performances % ch 2002 2001 Nedbank Retail +87 353 189 Nedbank Commercial -56 256 579 Nedbank Corporate -8 866 945 Nedbank International -30 112 161 Peoples Bank +53 299 195 NIB +22 760 625 Cape of Good Hope Bank +26 120 95 T&O Strategic Investments -171 (32) 45 Group Operations +24 238 192 Retail : small base. Total contribution R318m Commercial: Once-off write offs R310m net Corporate: R50m transfer cost swing on Custodial Over R100m due to rate hikes International: Stronger Rand and ??? Peoples Bank: Exceptional provisions R21m NET offset by debit deferred tax R185m

Acquisitions and alliances’ performance % ch 2002 2001 BoE (net of funding) 265 Imperial Bank +94 72 37 Gerrard Private Bank +83 56 30 Bancassurance initiatives +72 110 64 JD/Capital One -213 (47) (15) Pick ’n Pay Go Banking -44 (39) (27) Amex/Capital One (25) 2

Merger and integration Group restructure triggered by: BoE purchase for R7,7bn NIB minorities buyout Synergy estimates of R905m per annum by 2005 Regulatory approvals for merger finalised R9,2bn new capital raised, enhancing capital structure Ordinary capital R3,2bn Subordinated debt R4bn Preference shares R2bn

Merger and integration Early successes Legal Day One successful Key decisions on product offering made Future technology architecture agreed Healthy funding flow back into BoE NBS deposits 103%; Probanker 100%; Business Banking book 107%; BoE assets 115%; no large depositor concentration issues Client and staff retention good Initial staff survey very positive Nine sets of terms & conditions and nine payrolls into one from 1 April 2003 Employee Development & Deployment Centre up and running Over 20 000 employee positions finalised Operational merger going to plan

Major merger milestones 2003 2004 2005 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Legal Day One Migration planning Wealth Management LDO Product offering decision Treasury integration Capital markets integration Systems architecture design Payroll integration CoGH integration into Nedbank retail Credit Life integration BoE Business Bank customer migration PEP Bank integration into Peoples Bank Cashbank integration into Peoples Bank Consumer credit reorganisation Peoples Bank branding developed Private Wealth completion CIS (unit trusts) integration International rationalisation Peoples Bank platform upgrades NBS integration into Peoples Bank Property & Asset Finance integration Business Banking integration 1 Jan 2003 V.1 Final

Financial review Stuart Morris

Disclosure BoE and NIB separately disclosed BoE pre-acquisition adjustments Pro forma segmental in Annual Report AC133 effective 1 January 2003

Income statement: core earnings year ended 31 December 2002 2002 2001 % ch % ch* Rm Rm* Rm Net interest income +20 +12 6 300 5 874 5 268 Non-interest revenue +37 +15 6 929 5 833 5 054 Total income +28 +13 13 229 11 707 10 322 Provisions +68 +62 1 778 1 712 1 058 Net income +24 +8 11 451 9 995 9 264 Expenses +36 +13 7 334 6 140 5 416 Net operating income +7 – 4 117 3 855 3 848 Taxation -25 -26 580 569 772 Net income after taxation 15 7 3 537 3 286 3 076 Associate income -11 -18 162 148 181 Minorities 103 103 (333 (333 (164 Core earnings +9 – 3 366 3 101 3 093 Core eps +4 -5 1 330 1 226 1 284 ) ) ) *Excluding BoE

Income statements year ended 31 December 2002 Rm NIB BoE* contribution BoE* Funding BoE* Net interest income Non-interest revenue Total income Provisions Net income Expenses Net operating income Taxation Net income after taxation Associate income Minorities Core earnings 365 426 (363) 789 1 173 1 096 - 1 096 1 538 1 522 (363) 1 885 30 66 - 66 1 508 1 456 (363) 1 819 515 1 194 - 1 194 993 262 (363) 625 (150) 10 (109) 119 843 252 254 506 9 14 - 14 92 - - - 760 266 254 520 * July – December 2002 Handout only

Core earnings to headline earnings Dec Dec % 2002 2001 change Rm Rm Core earnings 9 3 366 3 093 Translation gains/(losses) (1 011 1 096 General risk provision 400 (400 Merger costs (170 – Headline earnings -32 2 585 3 789 Headline eps -35 1 022 1 574 ) ) )

Rand appreciation 99 00 01 02

Headline earnings to attributable income Dec 2002 Rm Dec 2001 Rm Headline earnings 2 585 3 789 Didata revaluation (1 080) (3 298) Goodwill (501) (273) Other impairments (177) (34) Merger costs (35) – Taxation 192 (171) Attributable income 984 13 Attributable eps 389 5

Goodwill and capital writedowns 2002 2001 Rm Rm Goodwill 501 273 BoE 214 – The Internet Solution – 131 IQ Business Group 58 21 Other T&O investments 59 74 MBCA (Zimbabwe) 36 – Other goodwill 134 47 Impairments 119 34 Investment sold 58 – Total 678 307 Handout only

Net interest income Rm % +19,6% +11,3% +11,1% +8,6% +10.4%

Non-interest revenue Rm % +37,1% +29,0% +23,1% +23,0% +8,6%

Analysis of provisions by activity % 2002 2001 change Rm Rm Retail Banking 1 417 411 Peoples Bank 73 59 34 Commercial (21 160 202 Imperial Bank 64 105 64 Cape of Good Hope Bank (19 29 36 Corporate (18 50 61 NIB (25 30 40 Other 11 105 (10 861 953 Microlending 550 195 30 SME Book 775 656 75 BoE 66 – 68 1 778 1 058 ) ) ) ) )

SME ringfenced collection book Trading Start statement Now Rm Rm Rm Carrying value 700 700 698 Estimated collections (220 (64 (42 480 636 656 Planned provisioning 480 636 656 2002 – normal 190 190 190 – additional – 400 466 2003 200 46 – 2004 90 – – ) ) )

Non-performing loans Dec 2002 June 2002 Dec 2001 % % % % % % Rm adv Rm adv Rm adv Non-performing loans 8 001 4,0 7 014 4,4 6 974 4,4 Expected recoveries 3 836 2,0 3 603 2,3 3 473 2,2 Expected losses 4 165 2,0 3 411 2,2 3 501 2,2 Provisions (coverage) 6 553 3,1 4 691 3,0 5 154 3,3 Adequacy of provisions – Gross coverage (%) 82 67 74 – Net coverage (%) 157 138 147

Capitalised development costs 2002 2001 Opening balance 881 480 Development expenditure 386 549 Commissioned (772 (148 Closing balance 495 881 Software amortisation 182 92 ) )

Capital adequacy 2002 2001 Rbn %* Rbn %* Tier 1 14,5 7,0 14,1 8,6 2002 2001 Rbn %* Rbn %* Tier 1 14,5 7,0 14,1 8,6 – Ordinary capital & reserves 12,5 6,0 14,1 8,6 – Preference capital 2,0 1,0 – – Tier 2 8,5 4,0 4,6 2,8 – Callable notes 6,0 2,6 2,0 1,2 – Other 2,5 1,4 2,6 1,6 Total 23,0 11,0 18,7 11,4 *Percentage of risk-weighted assets

BoE acquisition Rbn Purchase consideration 7,7 Adjusted net asset value 4,9 Goodwill 2,8

BoE pre-acquisition adjustments Post-tax Rm Net asset value – 31 March 2002 6 058 Headline earnings April – June 2002 97 Exceptional items (173 Net asset value – 30 June 2002 5 982 Fair value adjustments (899 Accounting policy alignments (170 Adjusted net asset value as at 30 June 2002 4 913 ) ) ) Handout only

Embedded value Rm 2002 Shareholders’ net assets 566 Value of in-force business 59 Embedded value 625 Value of 15 months’ new business 1 Embedded value earnings as a % of opening embedded value* (4,7%) *Embedded value earnings negative due to change in assumptions Handout only

Indicative new segmental Earnings Assets Nedbank Corporate 71% 70% Corporate Banking 23% 15% Commercial Banking 19% 11% Property Finance 8% 14% International 6% 9% Imperial Bank 3% 4% Treasury 3% 12% Other 9% 5% Retail 8% 20% Wealth Management 6% 5% Retail Banking 2% 15% Peoples Bank 4% 3% Capital & Group Services 17% 7%

Strategic review Derek Muller

Nedbank Corporate We are an integrated corporate and investment bank offering a full range of services (advisory, debt, equity, and transactional banking) to large and mid size corporates, based on strong enduring relationships, driven by innovative solutions and leading edge technology

Nedbank Corporate Corporate Banking Business Banking No. of clients : 1 700 Market share : ± 22% Corporate Banking R250m turnover Business Banking No. of clients : 25 000 Market share : ± 24% R5m turnover

Nedbank Corporate

Nedbank Corporate Assets No. of (Rm) people Corporate Banking 36 600 310 Business Banking 22 300 3 720 Corporate Finance – 30 ENF – 200 Capital markets 10 700 350 Property & Asset Finance 25 000 1 200 International & Africa 23 200 670 Treasury 34 000 340 Total 151 800 6 820

Nedbank Corporate Quality asset growth of 12% RoE 21% Excellent credit management with low levels of specific provisions for the year Strong growth in black empowerment transactions Global trade achieved significant market share gains Nedbank Investor Services ranked the premier custody services provider Handout only

Nedbank Treasury Successful integration of treasury rooms Integrated six back offices into central processing area Foreign currency trading profit up 33% on prior year Total trading profit up 16% on prior year Handout only

Nedbank Commercial Asset growth of 11% to R16bn Star performer was instalment credit (+18%) Client deposits up 27% to R25bn NIR growth of 12% to R767m. Exceptional performance in electronic banking and global trade Handout only

Nedbank International African subsidiaries NPAT up 54% African associates down 29% (MBCA; HSBC Equator; SBM) Hong Kong NPAT down 26% London NPAT down 17% Focus on trade finance & private banking Handout only

Nedbank Corporate Strategic objectives 2003 Create a common culture Build on our intellectual capital/ advisory capacity Build on our very strong corporate relationships Maximise our regional strengths Deeper penetration of the mid-market Greater focus on public sector Commitment to growth in Africa and offshore Total commitment to black economic empowerment

Nedbank Corporate Integration update Treasury consolidation completed 1 February 2003 Systems selected No funding difficulties No clients lost Lost very few senior people Change management: roadshows/workshops

Some recent deals Southern Sun/Tsogo Sun – funding Cell C – funding & swaps African Legend/Caltex – advisor Resilient Properties – listing Harmony/African Vanguard – advisor Sandton Towers – property structure Sasol Service Stations – funding Telkom IPO – legal advisor ICC/World Cup – legal advisor

Synergy estimates Handout only 18 43 - 12 62 135 Capital Markets Business Banking Corporate Banking Finance & International Treasury Total Property & Asset Finance 62 Handout only

Strategic review (continued) Tom Boardman

Nedbank Retail & Wealth Management

View of the market BoE Nedbank Retail Nedbank Corporate Top 300 listed corporates, government, institutions High net worth Medium size listed, unlisted, professionals Nedbank Retail Nedbank Corporate Middle income Old Mutual Bank Owner managed Pick ‘n Pay Go Banking Peoples Bank Informal sector Mass market Businesses Individuals

SA Retail market Nedbank Private Banking 13 000 clients BoE Income > R500 000 p.a. Assets > R3 million Nedbank Personal Banking 85 000 clients Income > R200 000p.a. Nedbank Retail 719 000 clients Income > R36 000p.a. Income-based classification Asset-based classification

Nedbank (Retail) – highlights Strategy development started in 2000, focusing on 3 main issues: Create appropriate working environment Build sustainable competitive advantage Fix poor performance Detailed 5-year plan, ahead of plan at end 2002

Nedbank (Retail) Financial highlights Retail Division has delivered outstanding results for 2002: Client assets +11% NII +18% NIR +13% Expenses +12% NIAT +87%

Nedbank Retail Integration update Moved product teams to a new “shared service” Product Division Moved Unit Trust Company to Wealth Management Move of Wealth Management from Nedbank Private Bank to Wealth Management – in progress Move of Cape of Good Hope Bank branches, staff and retail clients into Retail Division – well on track Integration of Manager Direct into Nedbank Retail Financial performance – Core costs well contained (+6.9% on 2001) Process culture – Roll out of process culture according to plan M&R Integration – Sales/Service model agreed; All managerial positions (1550) advertised; complete structure of approx. 11000 in place by December Digitisation – Aggressive delivery on technology related projects (82 delivered vs 71 in 2001; value commissioned R772m) CAMSII (1mill cards) Alpha cost savings (R400m since 1999) NetBank (SMS security for payments, digital cheque images) International – European initiative in progress Handout only

Pick ’n Pay Go Banking Phase 3 commenced July 2002 236 Go Bankers in 14 Hypermarkets and 113 Supermarkets In-store card delivery Exclusive discounts 85 000 accounts / 3 000 new applications per week Financial performance – Core costs well contained (+6.9% on 2001) Process culture – Roll out of process culture according to plan M&R Integration – Sales/Service model agreed; All managerial positions (1550) advertised; complete structure of approx. 11000 in place by December Digitisation – Aggressive delivery on technology related projects (82 delivered vs 71 in 2001; value commissioned R772m) CAMSII (1mill cards) Alpha cost savings (R400m since 1999) NetBank (SMS security for payments, digital cheque images) International – European initiative in progress

Old Mutual Bank Division of Nedbank Ltd – 50/50 JV Leverage dominant Old Mutual brand Banking products, systems and processes supplied by Nedcor Sales, marketing and channel management supplied by Old Mutual Financial performance – Core costs well contained (+6.9% on 2001) Process culture – Roll out of process culture according to plan M&R Integration – Sales/Service model agreed; All managerial positions (1550) advertised; complete structure of approx. 11000 in place by December Digitisation – Aggressive delivery on technology related projects (82 delivered vs 71 in 2001; value commissioned R772m) CAMSII (1mill cards) Alpha cost savings (R400m since 1999) NetBank (SMS security for payments, digital cheque images) International – European initiative in progress

OMB Business Opportunities 2 million OMPF customers 300 000 ex-Permanent Bank customers No need to create a brand Huge intermediary network Established branch distribution network No need to use expensive originators for mortgages 8

Nedcor Wealth Management Jointly-owned Businesses with Old Mutual Wholly-owned Businesses Private Clients (South Africa) Credit Protection (South Africa) Retail Investment Products & Services International Companies (On and Offshore)

Nedcor Wealth Management Jointly-owned Businesses with Old Mutual Wholly-owned Businesses Private Clients (South Africa) Credit Protection (South Africa) Retail Investment Products & Services International Companies (On and Offshore) Scope of offering to High Net Worth Individuals: Discretionary Portfolio Management Private Banking Other Investment Products Fiduciary Services:Trusts, Wills, Estates Complete offering both onshore & offshore No. of staff 554/Clients 17500/AUM R23bn

Private Clients business structure Nedbank Syfrets Private Banking Wealth Mngmnt Syfrets Trust FTNIB Private Client Asset Mgt BoE Private Bank BoE Personal Stockbrokers Old Mutual Trust Handout only

Private Clients One client-centric model Relationship Manager Distribution Products • Private Client Asset Mgmnt • Stockbroking • Structured Lending • Fiduciary Product provision In-sourcing products FAIRBAIRN CAPITAL NEDBANK Handout only

Private Clients Impact of merger Six different business models to be combined into one business - presently working with McKinsey & Co to determine optimal business model Extended product range for clients Off-shore opportunities with Gerrard Private Bank Increase share of wallet of existing customers (currently single product clients only) Economies of scale lead to decrease in relative costs increasing profitability eliminate duplication of operations Handout only

Private Clients International joint venture Old Mutual and Nedbank have a joint initiative in Gerrard Private Bank Comprehensive offering to high net worth individuals Will be BoE’s offshore offering Full product range now available on a ‘seamless’ basis Banking Trust and Fiduciary Services Investment Management With the representative office recently opened - perfectly positioned to service clients Handout only

Nedcor Wealth Management Jointly-owned Businesses with Old Mutual Wholly-owned Businesses Private Clients (South Africa) Credit Protection (South Africa) Retail Investment Products & Services International Companies (On and Offshore) Scope of providing banking customers with credit protection Nedbank customers JV and Alliances Other banks customers No. of staff 105 / Premium income R491m / EV R44m

Credit Protection Impact of merger Single focus on credit protection Repositioning of business as a ‘Bank Life Company’ Utilise the strengths of both shareholders distribution from Nedbank expertise from Old Mutual Handout only

Nedcor Wealth Management Jointly-owned Businesses with Old Mutual Wholly-owned Businesses Private Clients (South Africa) Credit Protection (South Africa) Retail Investment Products & Services International Companies (On and Offshore) Develops, distributes and supports both international and SA investment product solutions to chosen target markets No. of staff 80/Unit holders 133 000/AUM R7bn

Retail Investment Products & services Outsourced Support Services Target Market Retail Products & Services Outsourced Asset Management SA BoE Private Clients BoE Trust Services HNW Intermediaries LISPs/FOFs Nedbank Retail Nedbank Corporate Group Alliances International Gerrard Private Bank Offshore Trust Companies HNW Intermediaries Gerrard UK Offshore Life Companies Both SA & International Product research & development All collective investment schemes Marketing, sales, distribution support SA BoE Aka Nedbank Treasury SYmmETRY OMAM International Stenham Gestinor NIBi Chiswell Associates OMUS Handout only

Retail Investment Impact of merger Amalgamation of four unit trust management companies (BoE, FT-NIB, Nedbank, NIBi) Definition of a new value proposition and product set covering active, passive, multi- managed and absolute ranges Rationalisation of more than 50 unit trust funds Release R30m of under-utilised capital Distribution, marketing and operational consolidation, yielding economies of scale Consolidated negotiation with suppliers on performance-related SLAs Handout only

Nedcor Wealth Management Jointly-owned Businesses with Old Mutual Wholly-owned Businesses Private Clients (South Africa) Credit Protection (South Africa) Retail Investment Products & Services International Companies (On and Offshore) 3 main focus areas Private Clients Specialised Asset Mgmt Private Banking No. of staff 430/Clients 26 000/AUM £4,25bn

International Businesses NIBi International Stenham Gestinor BoE International Fairbairn Trust Gerrard Private Bank Chiswell Associates Handout only

International Businesses Nature of business Private client asset gathering and management Fiduciary services Hedge Funds Syndicated Property Investments Linked Investment platform Retail pooled investments Asset Management - manage investments of families charities and small institutional funds Gerrard Private Bank - offers clients integrated banking asset management fiduciary services treasury products Handout only

International Businesses Impact of merger Creation of one multi-management business Stenham Gestinor Asset Management NIBi Rationalise the trust businesses BoE Trust Co SG Trustee Services (Channel Islands. Switzerland, Luxembourg) Fairbairn Trust/Gerrard Trust NIBi Trust Company Integration of the management and operations of the international businesses Handout only

Wealth Management Long-term opportunities We have all the products that are needed We have a huge client base providing growth potential Our businesses are already profitable Leads to rapid growth!

Synergy estimates Integration costs being estimated R’m Shared Services 127 Nedbank Corporate 135 Integration costs being estimated Synergies will benefit the Group fully in 2005 Nedbank Retail 36 Wealth Management 103 Peoples Bank 14 T&O 245 Total 660 Handout only

Strategic review (continued) Richard Laubscher

Peoples Bank Highlights Total assets increased 6% despite 19% decline in FBC assets 37% increase in NIR Net effect of “excess” provisions only R30m R130m benefit from assessed losses Restructuring proceeding well Risk and compliance centralised More than 1 million transactional clients Total assets R12bn (R10bn in advances)

Technology & Operations Highlights Financial performance Process culture M&R Integration Digitisation CAMSII Alpha cost savings NetBank International – Swisscard on track Financial performance – Core costs well contained (+6.9% on 2001) Process culture – Roll out of process culture according to plan M&R Integration – Sales/Service model agreed; All managerial positions (1550) advertised; complete structure of approx. 11000 in place by December Digitisation – Aggressive delivery on technology related projects (82 delivered vs 71 in 2001; value commissioned R772m) CAMSII (1mill cards) Alpha cost savings (R400m since 1999) NetBank (SMS security for payments, digital cheque images) International – European initiative in progress

Prospects Richard Laubscher

Strategy Wealth Management International SA Banking Corporates Individuals Businesses Peoples Bank Bancassurance Alliances T&O platform Outsourcing

The year ahead Strategic platform in place Retain and grow client base Integrate operations Extract synergies Address non-performing assets 2002 low base: 2003 therefore statistically better 2004: the power in the model should evidence itself Implementation & execution