Last checked at 13 Sep 2023 07:00
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 (R million unless stated otherwise) |
Estimated % change |
Estimated 30 June 2023 | IFRS 17 Unaudited results for the six months 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 |
11%-31% |
63.2 - 74.5 | 56.8 |
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 (R million unless stated otherwise) |
Estimated % change |
Estimated 30 June 2023 | IFRS 17 Unaudited results for six months 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 Interim Head of Investor Relations
| M: +27 67 866 6348 E: investorrelations@oldmutual.com
|
Communications
| |
Tabby Tsengiwe General Manager: Public Affairs | M: +27 60 547 4947 E: 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.
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 return2 | 205 | 415 |
Finance costs | (330) | (330) |
Income from associates1 | 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 |