REG - Old Mutual Ltd - Voluntary Trading Statement

Old MutualAnnouncement

13/09/2023 07:00

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RNS Number : 2118M  Old Mutual Limited  13 September 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 49/23

13 September 2023

 

OLD MUTUAL VOLUNTARY TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2023

 

Investors are advised that Old Mutual is currently in the process of
finalising its interim results for the six months ended 30 June 2023 ("current
period"), which will be released on the Stock Exchange News Service of the JSE
Limited on Wednesday, 27 September 2023. The current period results are
prepared on an IFRS 17 basis whereas the interim results for the six months
ended 30 June 2022 ("comparative period") were prepared on an IFRS 4 basis.
The release of our results will be accompanied by an IFRS 17 bridging pack
providing H1 2022 and FY 2022 comparative numbers on both an IFRS 4 and IFRS
17 basis. We have attached Annexure A hereto which provides an extract from
our bridging pack on H1 2022 comparatives for:

·      our key profit measures, namely results from operations and
adjusted headline earnings; and

·      IFRS profit after tax attributable to equity holders of the
parent and headline earnings.

 

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 comparative period on an IFRS 17 basis.

 

The ranges provided in this trading statement are relative to the IFRS 17
results for the comparative period. It is not expected that results will
differ by more than 20% compared to previously disclosed comparative period
results under IFRS 4.

 

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

 

 Key Performance Indicators                                                           IFRS 17 Unaudited

 (R million unless stated otherwise)                     Estimated   Estimated        results for the six months

                                                         % change    30 June 2023     ended

                                                                                      30 June 2022
 Results from operations

                                                         -7%-13%     3 939 - 4 790    4 254
 Adjusted headline earnings (AHE)

                                                         13%-33%     2 901 - 3 417    2 579
 Adjusted headline earnings per share (AHEPS) (cents)¹                                56.8

                                                         11%-31%     63.2 - 74.5

 

(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.

 

We expect results from operations to be within the range of -7% to +13% due to
good operational performance which was dampened by continued adverse
persistency with short term persistency provisions raised in our Mass and
Foundation Cluster segment.

 

We expect adjusted headline earnings to be above 20% relative to the
comparative period due to an increase in shareholder investment return as a
result of increased interest rates and a recovery in equity markets.

 

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

 

 Key Performance Indicators                                                                     IFRS 17 Unaudited

 (R million unless stated otherwise)                                 Estimated   Estimated      results for six months

                                                                     % change    30 June 2023   ended 30 June 2022
 IFRS profit after tax attributable to equity holders of the parent  -20% - 0%   3 869 - 4 836  4 831
 Basic EPS (cents)                                                   -19% - 1%   86.0 - 107.4   106.8
 Headline earnings                                                   -18% - 2%   3 884 - 4 834  4 749
 HEPS (cents)                                                        -18% - 2%   86.3 - 107.3   104.9

 

Headline earnings is higher than adjusted headline earnings, as adjusted
headline earnings exclude earnings from operations in Zimbabwe and adjustments
for accounting mismatches. Accounting mismatches include hedging mismatch
losses arising from the transition of the guaranteed product related hedging
programs to IFRS 17.  This impact is expected to significantly reduce in
future reporting periods as the hedging mismatch has been largely resolved and
the hedging strategies are materially aligned with IFRS 17 positions.

 

The financial information in this 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 of Investor Relations   E: investorrelations@oldmutual.com (mailto:investorrelations@oldmutual.com)

 Communications

 Tabby Tsengiwe                       M: +27 60 547 4947

 General Manager: Public Affairs      E: oldmutualnews@oldmutual.com (mailto:oldmutualnews@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 China. With over 178 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) .
 

 

 

 

 

ANNEXURE A

Extract from IFRS 17 Bridging pack for the half year ended 30 June 2022

H1 2022 Comparatives on an IFRS 4 and IFRS 17 basis

 

 Supplementary Income Statement                                       H1 2022
 Rm                                                                   IFRS 17   IFRS 4
 Mass and Foundation Cluster                                          1 341     1 583
 Personal Finance and Wealth Management                               1 538     1 259
 Old Mutual Investments                                                566       566
 Old Mutual Corporate                                                  806       727
 Old Mutual Insure                                                     323       213
 Old Mutual Africa Regions                                             166       212
 Net expenses from central functions                                  (486)     (463)
 Results from operations                                               4 254    4 097
 Shareholder investment return(2)                                      205       415
 Finance costs                                                        (330)     (330)
 Income from associates(1)                                            20        20
 Adjusted headline earnings before tax and non-controlling interests   4 149    4 202
 Shareholder tax                                                      (1 447)   (1 375)
 Non-controlling interests                                            (123)     (136)
 Adjusted headline earnings                                           2 579     2 691

 

 

 Reconciliation of AHE to IFRS profit after tax                               H1 2022
 Rm                                                                           IFRS 17  IFRS 4
 Adjusted headline earnings                                                   2 579    2 691
 Accounting mismatches and hedging impacts                                    49        606
 Impact of restructuring                                                       31       31
 Operations in hyperinflationary economies                                    2 023    1 745
 Residual plc                                                                  67       67
 Headline earnings                                                            4 749    5 140
 Impairment of goodwill, other intangible assets and property                  24       24
 Reversal of impairment of investments in associated undertakings             (32)     (32)
 Loss on disposal of subsidiaries and associated undertakings                  90       90
 IFRS profit after tax attributable to ordinary equity holders of the parent  4 831    5 222

 

 Per Share measures (cents)            H1 2022
                                       IFRS 17  IFRS 4
 Adjusted headline earnings per share  56.8     59.2
 Headline earnings per share           104.9    116.3
 Basic earnings per share              106.8    118.1

 

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