ALEXANDER FORBES GROUP HOLDINGS LIMITED - Trading statement for the twelve months ended 31 March 2023

Trading statement for the twelve months ended 31 March 2023

Alexander Forbes Group Holdings Limited
(Incorporated in the Republic of South Africa)
Registration Number: 2006/025226/06
JSE Share Code: AFH and ISIN: ZAE000191516
(“Alexforbes” or “the company” or “group”)

TRADING STATEMENT FOR THE TWELVE MONTHS ENDED 31 MARCH 2023

Alexforbes is finalising its full year financial results for the twelve months ended 31 March 2023 (the current year) which will
be released on the Stock Exchange News Service and on the company’s website at www.alexforbes.com on 12 June 2023.

In terms of paragraph 3.4(b)(i) of the JSE Listings Requirements, the board is reasonably certain that the financial results for
the current year to be reported is expected to increase by more than 20% from those of the previous corresponding year (the
prior year).

Based on the information currently available to the company, shareholders are advised that the financial results for the current
period are expected to be:
                                                   
                                                     As reported                  Expected                Estimated range
                                                      March 2022                 March 2023                   change*
    For the year ended                                 (cents)                     (cents)
    Total operations
    Headline earnings per share                         33.2                    47.1 to 48.8                42% to 47%
    Basic earnings per share                            39.3                    55.8 to 57.8                42% to 47%
    Continuing operations
    Headline earnings per share                         37.2                    44.6 to 46.5                20% to 25%
    Basic earnings per share                            37.0                    42.6 to 44.4                15% to 20%
    Discontinued operations
    Headline earnings/(loss) per share                  (4.0)                    2.1 to 2.3                    >100%
    Basic earnings per share                             2.3                    13.0 to 13.2                   >100%
* Percentages calculated based on rounded figures


The main areas impacting earnings growth include the following:

•   In the prior year the financial performance of the discontinued operations included losses incurred because of insurance
    claims and reserved relating to the Covid-19 pandemic. These losses were partially offset by the R80 million profit on sale
    of the discontinued life insurance business. The profit on sale is excluded from headline earnings.

•   In the current year, earnings have been influenced by the improved financial performance of the discontinued operations
    and the profit realised on the sale of the group’s individual client administration business (AFICA disposal). On 1 March
    2023, the group announced the completion of the AFICA disposal to Sanlam Life Insurance Limited. As a result of the
    AFICA disposal, the group has recognised a profit on sale of R153 million. Headline earnings per share for the period
    excludes profit on the sale of the business but includes the operating profits from discontinued operations for the eleven
    months prior to the AFICA disposal.

The group is expected to deliver pleasing growth for the current year from continuing operations with profit from operations
before non-trading and capital items expected to increase between 7% to 12% compared to the R720 million reported in the
prior year. The expected increase reflects sustained revenue growth across core business lines despite macroeconomic
headwinds that dampened asset-based revenue for the year demonstrating the value of a diversified income stream. This
growth in revenue is a result of the deliberate implementation of our strategy, the positive impact of new business wins, with
important transactions and acquisitions having been concluded during the year.

This trading statement is issued in accordance with paragraph 3.4(b) of the JSE Listings Requirements. The financial
information on which it is based has not been reviewed and reported on by the group’s external auditors.

Carina Wessels
Executive: Governance, Legal and Compliance (Company Secretary)

23 May 2023
Sandton

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 23-05-2023 09:00:00
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