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Trading Statement and Performance Update for the year ended 31 December 2019
Old Mutual Limited
Incorporated in the Republic of South Africa
Registration number: 2017/235138/06
ISIN: ZAE000255360
LEI: 213800MON84ZWWPQCN47
JSE Share Code: OMU
NSX Share Code: OMM
MSE Share Code: OMU
ZSE Share Code: OMU
("Old Mutual" or “Company” or “Group”)
Ref 03/20
5 March 2020
TRADING STATEMENT AND PERFORMANCE UPDATE FOR THE YEAR ENDED 31 DECEMBER 2019
Financial performance
Shareholders are advised that Old Mutual Limited is currently in the process of
finalising its annual results for the year ended 31 December 2019 (“current
period”). 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 2018
(“comparative period”). The Group’s annual results will be released on the Stock
Exchange News Service of the JSE Limited on Monday, 16 March 2020.
Results from Operations (RFO) is expected to decrease by approximately 0% to 5%
compared to the comparative period, a resilient outcome in the context of low
economic growth in South Africa. Adjusted Headline Earnings (AHE) is expected to
increase by approximately 2% to 7% mainly driven by higher shareholder investment
return in South Africa. Accordingly, AHE per share is expected to increase by
approximately 4% to 9% to 202.9 – 212.6 cents in the current period compared to
195.1 cents for the comparative period.
Key Performance Indicators Estimated 31 31 December Estimated %
(KPIs) December 2019 20181 change
RFO (Rm) 8,682 – 9,139 9,139 (5%) to 0%
AHE (Rm) 9,584 – 9,396 2% to 7%
10,054
AHEPS (cents)2 202.9 – 212.6 195.1 4% to 9%
1Restated to exclude the results of Zimbabwe.
2AHEPS defined as Adjusted Headline Earnings divided by WANS adjusted to remove the Group’s BBBEE
shares and shares held in policyholder and consolidated investment funds.
IFRS profits in the 2018 financial year include the accounting impacts of the
transactions executed to complete the Managed Separation. These transactions
included the distribution of Quilter plc and the unbundling of Nedbank Group
Limited (Nedbank). Profit after tax for the comparative period therefore included
the consolidated profits in respect of the Quilter plc and Nedbank businesses,
these were classified as profit from discontinued operations. Profits for the
comparative period also included the profit recognised on the distribution of
Quilter plc on 24 June 2018 and the unbundling of Nedbank on 15 October 2018.
Profit after tax for the current period no longer includes the impact of these
items related to the execution of Managed Separation, which is the main driver
of the expected decrease. IFRS profit after tax attributable to equity holders
of the parent on comparable basis is expected to increase by approximately 30%
to 37%. IFRS profit after tax attributable to equity holders of the parent on a
comparable basis is adjusted to remove the impact of Managed Separation
transactions and to reflect Nedbank as if it had been accounted for as an
associate for the full 2018 year.
The table below sets out the impact of the Managed Separation transactions
included in profit after tax attributable to equity holders of the parent for
the comparative period:
R million 31 December 2018
Profit from discontinued operations - 1,275
Quilter
Profit from discontinued operations - 7,241
Nedbank
Profit on Quilter distribution and 23,175
unbundling of Nedbank
Accordingly, we expect Basic earnings per share to decrease by approximately 73%
to 75% to 204.9 – 197.0 cents compared to 788.1 cents in the comparative period.
Headline Earnings (HE) is expected to decrease by approximately 24% to 28%. We
expect Headline Earnings per share (HEPS) to decrease by approximately 22% to
25% to 230.2 – 239.4 cents compared to 306.9 cents in the comparative period.
Estimated 31 31 December Estimated %
December 2019 2018 change
IFRS profit after tax 8,776–9,507 36,566 (74%) to (76%)
attributable to equity
holders of the parent
(Rm)
Basic EPS (cents) 204.9 – 197.0 788.1 (73%) to (75%)
Headline Earnings (Rm) 10,254 – 10,823 14,241 (24%) to (28%)
HEPS (cents) 230.2 – 239.4 306.9 (22%) to (25%)
The financial information in this trading statement is the responsibility of the
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
Namibia PSG Wealth Management (Namibia) (Proprietary)
Limited
Zimbabwe Imara Capital Zimbabwe plc
Malawi Stockbrokers Malawi Limited
Enquiries
Investor Relations
Sizwe Ndlovu T: +27 (0)11 217 1163
Head of Investor Relations E: tndlovu6@oldmutual.com
Tokelo Mulaudzi T: +27 (0)11 217 1161
Investor Relations Manager tmulaudzi3@oldmutual.com
Communications
Tabby Tsengiwe T: +27 (11) 217 1953
Head of Communications M: +27 (0)60 547 4947
E: ttsengiwe@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
markets segments in 14 countries. Old Mutual's primary operations are in South
Africa and the rest of Africa, and it has a niche business in Asia. With 175
years of heritage across sub-Saharan Africa, we are a crucial part of the
communities we serve and broader society on the continent.
For further information on Old Mutual, and its underlying businesses, please
visit the corporate website at www.oldmutual.com.
Date: 05-03-2020 10:00:00
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