MOMENTUM METROPOLITAN HOLDINGS LIMITED - Trading statement for the six months ended 31 December 2021

Trading statement for the six months ended 31 December 2021

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
(“Momentum Metropolitan Life”)


Trading statement for the six months ended 31 December 2021
Momentum Metropolitan is currently in the process of finalising its results for the six months ended
31 December 2021 (the “period”), which will be released on 9 March 2022. Pursuant to 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 diluted normalised headline earnings per share are expected to be within the
ranges set out below:


                                                     1H2022          1H2021
                                                                                      % change
                                                     (cents)         (cents)

 Earnings per share                                  41 to 54          63            -35% to -15%

 Headline earnings per share                         84 to 95          56           +50% to +70%

 Normalised headline earnings per share             95 to 109          68           +40% to +60%

Headline earnings per share are expected to increase by between 50% and 70% and normalised headline
earnings per share by between 40% and 60%. This pleasing growth was underpinned by strong new business
revenue in Momentum Investments, Metropolitan Life, Momentum Corporate and Momentum Metropolitan
Africa; strong financial performance in Momentum Corporate and Guardrisk; strong investment returns on the
shareholder investment portfolio, and a less severe net mortality impact from Covid-19 compared to the six
months ended 31 December 2020 (the “prior period”).

Earnings per share are expected to decline by between 15% and 35% relative to the prior period. This decline
is largely attributable to a partial write-off of the goodwill of Momentum Insure. The performance of the direct
face-to-face sales force acquired from Alexander Forbes in 2019 was negatively impacted by Covid-19. The
weaker general economy over the past 18 months and the complexities with the integration of all the different
sales channels on a single line of business system resulted in new business volumes across all channels not
achieving the targets expected. It is not expected that future new business will fully recover the gap created,
which has necessitated the downward adjustment to the goodwill held for this entity.

The Group remains well capitalised, with the regulatory solvency cover of all the Group’s regulated entities, as
well as the group solvency for Momentum Metropolitan Holdings remaining within the target range.

Normalised headline earnings adjust the standard JSE definition of headline earnings for the dilutive impact of
finance costs related to preference shares that can be converted into ordinary shares of the Group, the impact
of treasury shares (including those related to the iSabelo employee share scheme), the amortisation of
intangible assets arising from business combinations and B-BBEE costs. The adjustment for the impact of
treasury shares removes mismatches that are unique to financial institutions that invest in their own securities
on behalf of clients. The definition of normalised headline earnings remains unchanged.

The full financial and operating results for the period are expected to be released on Wednesday, 9 March 2022
at approximately 7:30 via SENS, followed by a live webcast at 11:00. Pre-registration for the webcast is
required, which can be accessed at https://www.corpcam.com/MM09032022. 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
21 February 2022



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

Date: 21-02-2022 11:00:00
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