REG - Old Mutual Ltd - Voluntary Trading Statement

Old MutualAnnouncement

24/02/2023 07:01

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RNS Number : 9691Q  Old Mutual Limited  24 February 2023

 

Old Mutual Limited

Incorporated in the Republic of South Africa

Registration number: 2017/235138/06

ISIN: ZAE000255360

LEI: 213800MON84ZWWPQCN47

JSE Share Code: OMU

LSE Share Code: OMU

NSX Share Code: OMM

MSE Share Code: OMU

ZSE Share Code: OMU

("Old Mutual" or "Company" or "Group")

 

Ref 06/23

24 February 2023

 

OLD MUTUAL VOLUNTARY TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

 

Investors are advised that Old Mutual is currently in the process of
finalising its annual results for the year ended 31 December 2022 ("current
period"), which will be released on the Stock Exchange News Service of the JSE
Limited on Tuesday, 14 March 2023. This trading statement provides an
indication of a range for headline earnings per ordinary share (HEPS) and
earnings attributable to equity holders of the Group per ordinary share (EPS)
in terms of paragraph 3.4(b) of the JSE Limited Listings Requirements compared
to the year ended 31 December 2021 ("comparative period").

 

 

Investors are advised that the Group's key profit measures are expected to be
within the ranges outlined below:

 

 Key Performance Indicators                                                             31 December 2021

 (R million unless stated otherwise)                     Estimated   Estimated

                                                         % change    31 December 2022
 Results from operations                                 89%-109%    8 299-9 176        4 384
 Adjusted headline earnings (AHE)                        7%-27%      5 791-6 871        5 402
 Adjusted headline earnings per share (AHEPS) (cents)¹   7%-27%      127.2-150.9        118.5

(1) AHEPS is defined as AHE divided by the weighted average number of ordinary
shares (WANS) adjusted to reflect the Group's B-BBEE shares and shares held in
policyholder and consolidated investment funds.

 

 

We expect results from operations to be significantly above 20% compared to
the prior year due to improved profits on the back of strong sales and core
operational performance across the Group. Our life profits benefitted from a
refinement in hedging methodology, enabling a material release of excess
discretionary margins as well as lower mortality in the current year as the
effects of COVID-19 eased. All remaining COVID-19 provisions were released but
the impact was mostly offset by the strengthening of our mortality basis to
allow for endemic COVID-19 claims, and worsened persistency as the challenging
economic conditions continue to impact our retail customers.

Investors are reminded that in 2021 AHE included the equity accounted earnings
from our strategic equity investment in Nedbank which was unbundled in
November 2021. The 12.2% stake in Nedbank that was distributed contributed
R646 million of the R5 402 million of AHE in the comparative period. Excluding
the impacts of Nedbank, AHE is expected to be between 23% - 43% up.

 

Headline earnings per share (HEPS) and basic earnings per share (EPS) are
expected to fall within the ranges outlined below:

 

 Key Performance Indicators                                                                                         31 December 2021

 (R million unless stated otherwise)                                 Estimated               Estimated

                                                                     % change    31 December 2022
 IFRS profit after tax attributable to equity holders of the parent  0%-20%      6 662-7 981                        6 662
 Basic EPS (cents)                                                   0%-20%      151.3-181.0                        151.3
 Headline earnings                                                   0%-20%      7 209-8 636                        7 209
 HEPS (cents)                                                        0%-20%      163.8-195.7                        163.8

Headline earnings is higher than adjusted headline earnings, as adjusted
headline earnings exclude earnings from operations in Zimbabwe, adjustments in
respect of equity and debt instruments held in life funds as well as the
impact of restructuring.  The movement in headline earnings and adjusted
headline earnings relative to prior year was primarily driven by substantial
improvement in operating profits, partially offset by the deferred tax
associated with the unbundling of Nedbank in the prior year and the decline in
Zimbabwe earnings. The decline in Zimbabwe earnings was largely driven by the
deterioration of Zimbabwean dollar to the rand and the decrease in investment
returns on equities traded on the Zimbabwe Stock Exchange (ZSE) relative to
the prior year.

 

The financial information in this voluntary trading statement is the
responsibility of the Old Mutual Limited Board of Directors and has not been
reviewed or reported on by the Group's external auditors.

 

Sandton

 

Sponsors

 JSE       Merrill Lynch South Africa (Pty) Limited t/a BofA Securities
 Namibia   PSG Wealth Management (Namibia) (Proprietary) Limited
 Zimbabwe  Imara Capital Zimbabwe plc
 Malawi    Stockbrokers Malawi Limited

 

 Enquiries

 Investor Relations
 Bonga Mriga                        M: +27 67 866 6348

 Interim Head: Investor Relations   E: bmriga@oldmutual.com

 Communications
 Vuyo Mtawa                         M: +27 68 422 8125

 Head: Group Communications         E: vmtawa@oldmutual.com

 

Notes to Editors

About Old Mutual Limited

Old Mutual is a premium African financial services group that offers a broad
spectrum of financial solutions to retail and corporate customers across key
market segments in 14 countries. Old Mutual's primary operations are in
Africa, and it has a niche business in Asia. With over 177 years of heritage
across sub-Saharan Africa, Old Mutual is a crucial part of the communities it
serves as well as broader society on the continent.

 

For further information on Old Mutual and its underlying businesses, please
visit the corporate website at www.oldmutual.com (http://www.oldmutual.com) .
 

 

 

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