The value added statement (VAS) is a composite table of indicators that show how Old Mutual South Africa has apportioned the direct economic value generated from its business amongst its stakeholders.
Old Mutual recognises that a stable economy is the foundation for the sustainability of the business. While Old Mutual generates wealth for its shareholders, it also distributes significant wealth in the form of procuring from local businesses, employee wages, capital payment fees, taxes and community investments, and in so doing contributes to the economic empowerment of society at large.
The transformation of economic empowerment is about acknowledging the changing face of the country. We want Old Mutual to be a microcosm of how South Africa could be, to show how South Africa could work. Transformation of Old Mutual as a whole can only take place through the transformation of each pillar of dti Codes; hence they form the material issues we address on our journey towards a transformed nation.
In October 2010, Old Mutual South Africa was awarded a Level 2 Broad-based Black Economic Empowerment (BBBEE) status as measured according to the dti Codes of Good Practice, a significant improvement from our Level 4 status in 2009.
Our overall score increased from 69.30 in 2009 to 86.99 in 2010. Detail of our progress against each dti pillar follow:
- Equity ownership: increased from 13.40 in 2009 to 17.81 in 2010, primarily due to the share price that increased over the period
- Management and control: improved from 6.21 in 2009 to 7.46 in 2010, due to the addition of black non-executive directors to the OMLACSA board
- Employment equity: increased from 9.04 in 2009 to 11.07 in 2010, through an intense focus on all human resource-related strategies and initiatives across all business units
- Skills development: improved from 4.90 in 2009 to 12.09 in 2010, largely attributable to improved classification and accounting of our investments in this area
- Preferential procurement: increased from 17.92 in 2009 to 18.56 in 2010 primarily through our strategy of engaging monthly with the Old Mutual business units to redirect spending away from non-compliant vendors and towards BBBEE compliant vendors. We were very pleased with our drive to collect valid BBBEE certificates from vendors, and this resulted in an increase in certificates from 420 in 2009 to 2 037 in 2010
- Enterprise development: maintained a score of 15 through our continued provision of financing and support to black-owned businesses, for BEE equity deals and for infrastructural development, particularly of disadvantaged communities
- Socio-economic development: increased from 2.83 in 2009 to 5 in 2010, the full weighting. This was achieved through the centralisation of all CSI spend within Old Mutual, improved tracking and recording of our initiatives
The accompanying graph illustrates our achievement over the last four years.
