MOMENTUM METROPOLITAN HOLDINGS LIMITED - Trading statement for the six months ended 31 December 2022

Trading statement for the six months ended 31 December 2022

MOMENTUM METROPOLITAN HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number: 2000/031756/06
ISIN code: ZAE000269890
JSE Share Code: MTM
A2X Share Code: MTM
NSX Share Code: MMT
(“Momentum Metropolitan” or “the Group” or “Momentum Metropolitan Holdings”)

MOMENTUM METROPOLITAN LIFE LIMITED
Incorporated in the Republic of South Africa
Registration number: 1904/002186/06
Company code: MMIG
LEI: 378900E0A78B7549C212
(“Momentum Metropolitan Life”)


Trading statement for the six months ended 31 December 2022

Momentum Metropolitan is currently in the process of finalising its interim financial results for the six months
ended 31 December 2022 (“1HF2023”) which will be released on 8 March 2023. This trading statement is
issued under paragraph 3.4(b) of the JSE Limited (“JSE”) Listings Requirements. Shareholders are advised
that the Group's earnings per share, headline earnings per share and normalised headline earnings per share
compared to the six months ended 31 December 2021 ("the prior period”) are expected to be within the range
set out below:
                                                                             Previously
                                                                             published                 Restated
                                                     1HF2023                  1HF2022                  1HF2022
                                                       (cents)                  (cents)                 (cents)*             % change*

 Earnings per share                                 167 to 176                    48.4                    48.9             242% to 260%

 Headline earnings per share                        129 to 143                    91.4                    92.4              40% to 55%

 Normalised headline earnings
                                                    140 to 155                   101.7                    99.9              40% to 55%
 per share

* The 1HF2022 period has been restated following a correction to the calculation of the weighted average number of shares. The % changes have been
calculated using the restated results.


These increases follow the normalisation of mortality experience and an improvement in investment variances.
In the prior period, the third wave of the Covid-19 pandemic had a significant negative impact on mortality
experience, particularly in Momentum Life.

Earnings per share are expected to increase by between 242% and 260% relative to the prior period. The prior
period included the partial write down of the goodwill recognised as part of the acquisition of the Alexander
Forbes Short-term Insurance business which did not reoccur during the current period. On 21 October 2022
our holdings in Aditya Birla Health Insurance (ABHI) (our health insurance joint venture in India) were diluted
from 49% to 44.1% with the introduction of a new shareholder as a partner in the business. The consequence
of this transaction is a substantial positive adjustment to the carrying amount of the Group’s remaining interest.

The increase in earnings, headline earnings and normalised headline earnings is a function of increased
earnings from Momentum Life, Momentum Corporate, Momentum Metropolitan Health and Momentum
Metropolitan Africa. This was partially dampened by a challenging operating environment in Momentum Insure.
There is a comparable decline in investment return in Shareholders mainly due to the large fair value gains
recognised on the Group’s venture capital funds in the prior period not repeated in this period.

Normalised headline earnings are adjusted relative to the standard JSE definition of headline earnings for the
dilutive impact of finance costs related to the convertible preference shares, the impact of treasury shares held
by policyholders (and those related to the iSabelo employee share scheme), the amortisation of intangible
assets arising from business combinations, and Broad-Based Black Economic Empowerment related costs.

The full financial and operating results for the six months are scheduled to be released on Wednesday, 8 March
2023 at approximately 7:30 via SENS, followed by a live webcast at 11:00. Pre-registration is required for the
webcast, which can be accessed at https://www.corpcam.com/MM08032023. In addition, the announcement
will be broadcast live on Business Day TV, DSTV Channel 412.


The information in this trading statement has not been reviewed and reported on by Momentum Metropolitan’s external auditors.


Centurion
23 February 2023



Equity sponsor                                                       Debt sponsor
Merrill Lynch South Africa (Pty) Limited                             Rand Merchant Bank
t/a BofA Securities                                                  (A division of FirstRand Bank Limited)

Date: 23-02-2023 07:05:00
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