Wrap Text
Results announcement for the year ended 31 March 2016 and cash dividend declaration
Alexander Forbes Group Holdings Limited
Registration number: 2006/025226/06
Tax reference number: 9404/921/15/8
JSE share code: AFH
ISIN: ZAE000191516
(Incorporated in the Republic of South Africa)
RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH 2016
AND CASH DIVIDEND DECLARATION
FINANCIAL HIGHLIGHTS
- Operating income from continuing operations was R5 376 million.
This is an 11% growth when compared to the previous year.
- Profit from operations before non-trading items was R1 210 million.
This is a 6% growth when compared to the previous year.
- Profit after tax was R874 million.
This is a 143% growth when compared to profit after tax for the previous year.
- Headline earnings per share was 58.1 cents per share.
This is an 82% growth when compared to HEPS for the previous year.
- AUA and AUM of Investment Solutions increased to R339 billion.
This is a 5% growth when compared to the previous year.
- Dividend declared of 22 cents per share.
This is a 47% growth when compared to the six months dividend for 30 September 2015.
OVERVIEW OF FINANCIAL RESULTS
The group's headline earnings increased by 89% to R744 million for the year ended
31 March 2016. The increase should be seen in the context of the listing and transaction
costs incurred in the prior year and detailed in the related listing documents.
The weighted average number of shares in issue increased marginally due to the timing
of the listing and the related issue of shares in the prior year which resulted in
the headline earnings per share increasing by 82% to 58.1 cents per share.
Against the background of a weak economic and business environment in South Africa and
margin pressure on asset management and administration fees, the group achieved commendable
results for the year ended 31 March 2016. These were bolstered by:
- traction gained in the group's retail (individual markets) strategy;
- the ongoing growth and opportunities in Africa; and
- the effect of the weakening rand on a good international performance.
OPERATING ENVIRONMENT
The slowdown in the South African economy has been widely reported and the operating
results of the group are directly affected. More specifically, factors which have a
direct impact on the group's earnings are:
Equity markets: Year-on-year growth of the all share index (ALSI) and the SWIX to
31 March 2016 was 3.2% and 2.7% respectively. The volatility in the equity market
has fuelled the switch to lower-margin products. 34% of the group's Africa revenue is
asset based and this component of revenue fluctuates not only with markets but trends
related to asset classes, product mix shifts and default choices.
Wage inflation: South African wage inflation is reported at 5.9% by Statistics SA.
This is compared to 7.3% in June 2015. Wage inflation generally has a positive impact
on a number of the group's businesses whose fees are derived from the related increase
in pension contributions. The trend over the past nine months has declined and, more
importantly, the gap between wage inflation and consumer price inflation has narrowed,
placing pressure on consumer spending.
Unemployment: In the last three calendar years, the standard unemployment rate has
increased steadily by 0.2% per year and reached a high of 26.7% at the end of March 2016.
The increase in unemployment has a strong correlation with cash being withdrawn from
pension savings and member numbers in the retirement funds administered by the group
- significant cash flows paid to employees who leave the formal employment sector has
given rise to reduced revenues.
GDP: The growth in GDP for South Africa has decreased significantly over the past year,
with the latest published quarter declining by 1.2%.
Exchange rate: The weighted average rate for the GBP/ZAR exchange rate increased by
17% to 20.8 during the year ended 31 March 2016. Alexander Forbes experienced a
positive impact on results due to the translation of revenues and expenses from its
international operations and, to a smaller extent, countries in Africa. In contrast
to this certain costs, including technology-related licence fees on US systems,
increased based on the 21% depreciation of the ZAR against the USD.
CONSOLIDATED OPERATING INCOME NET OF DIRECT EXPENSES
Operating income net of direct expenses (hereinafter referred to as 'operating income')
represents gross revenue net of direct product costs. The group's gross revenue is
derived from fees charged for consulting, administration and the management of investments
through multi-manager portfolios. In addition, operating income includes the net result
from both long-term and short-term insurance operations.
The group produced operating income from continuing operations of R5.4 billion for the
year ended 31 March 2016, up 11% on the prior financial year. The growth in revenue was
significantly enhanced by the weakening rand exchange rate applied to international
earnings; excluding the international operations, the operating income for Africa grew
by 4% to R3.5 billion.
Africa income was significantly impacted by weaker markets, where 34% of the group's
revenue is linked to the assets under administration and management. More significantly,
clients moved assets within the group's diversified investment product range to balanced
portfolios and index/passive portfolios, both of which result in lower margins earned
by the group. Investment Solutions is well positioned to offer this flexibility and it
is an integral part of the group's value proposition to clients. In future the group
may benefit from any market reversion where specialist mandates become more sought after.
Growth in African operating income, excluding asset-based fees, was 7% which is
commendable in the current economic climate.
CONSOLIDATED PROFIT FROM OPERATIONS
Operating profit from continuing operations, before non-trading and capital items,
increased by 6% to R1.2 billion when compared to the previous financial year. The divisional
performance review is reflected below. Excluding the International operations, which
were positively impacted by the weakening rand exchange rate, the growth for Africa was 1%,
resulting in an operating profit of R924 million.
Operating expenses of R2.6 billion for the Africa region were 5% higher than the
previous year. These expenses include accounting for the share-based long-term incentive
scheme which was provided through a direct shareholding structure prior to listing.
Operating expenses, including the International operations (excluding non-trading and
capital items) amounted to R4.2 billion, an increase of 12% compared to the previous year
(impacted by exchange rates).
The overall group operating margin on operating income is 22.5% compared to the 23.4%
for the previous financial year. The reduction in operating margin is largely impacted
by the absolute value of assets under management and the margin impact experienced
from institutional clients, particularly in Investment Solutions.
NON-TRADING AND CAPITAL ITEMS
Non-trading and capital items of R137 million include the ongoing accounting amortisation
of intangible assets amounting to R124 million (2015: R131 million) as well as the results
of the cell-captive insurance facility which are consolidated into the group's results.
The accounting for amortisation has no impact on the cash flows of the group. Included in
prior-year non-trading and capital items are the transaction costs relating to the listing.
INVESTMENT INCOME
Investment income of R294 million (2015: R226 million) includes R197 million
(2015: R103 million) related to individual policyholder funds in Investment Solutions
that are liable for fund-level taxes and for which an equal tax expense is raised.
This income should theoretically be excluded when assessing the group's own investment
income which largely relates to the return on assets-backing regulatory capital adequacy
requirements. Excluding the policyholder income, the group's investment income amounts
to R97 million (2015: R123 million) for the year.
FINANCE COSTS
Finance costs for the year amount to R71 million compared to the R119 million for the
previous year. The finance costs relate largely to the revolving credit facility provided
to the group and have declined significantly due to the partial repayment of this facility
over the year.
ACCOUNTING FOR ALEXANDER FORBES SHARES HELD IN POLICYHOLDER INVESTMENT PORTFOLIOS
In terms of International Financial Reporting Standards (IFRS) as presently constituted,
any Alexander Forbes Group Holdings Limited shares acquired by underlying asset managers
and held by the group's multi-manager investment subsidiary for policyholders (the shares)
are required to be accounted for in the group's consolidated financial statements as
treasury shares and results in the elimination of any fair value gains or losses made
on the shares. Refer to note 13.
This accounting treatment has the effect that fair value movements in respect of linked
investment policy assets and liabilities that would normally be offset (and economically
should be offset) are not being matched in the income statement. The resultant mismatch
between the asset and liability movement does not reflect the economic substance of the
transactions. The result of this mismatch is that an accounting profit or loss will be
reported in the group's consolidated income statement, whereas no actual economic profit
or loss will ever be realised by the group. The reported profit of R59 million arising
from the accounting for policyholder investments as treasury shares for the reporting
period is separately disclosed on the face of the income statement.
PROFIT BEFORE AND AFTER TAX FROM CONTINUING OPERATIONS
After non-trading items, finance charges and the effect of the policyholder investments
explained above, the group's profit before taxation from continuing operations of
R1 359 million shows a 57% increase from the R866 million of the previous financial year.
The effective tax rate compared to profit before tax appears high as a result of taxation
expense relating to policyholders being included in this amount (refer to the investment
income discussion above as well as note 8). The tax rate, excluding policyholder tax,
is 23%; this is impacted by the lower UK tax rate and applied only to the group's share
of the partnership earnings from Lane Clark & Peacock (LCP). Profit after tax was
R891 million for the year ended 31 March 2016 compared to R505 million in the previous year.
ITEMS TO CONSIDER WHEN ANALYSING THE GROUP RESULTS
There are certain significant items which affect the reported results of the group.
These items are correctly reported under IFRS; however may not necessarily reflect the
economic substance of the results. Investors are requested to consider the following
items when preparing an analysis of the results.
- Accounting for property lease - The accounting treatment for long-term leases,
particularly at the Sandton head office, continues to have a small positive impact on
profit from operations. The impact of the IFRS accounting for property leases is isolated
in the segmental analysis.
- Capitalisation of intangible assets and the related amortisation - Non-trading and
capital items include the ongoing accounting amortisation of intangible assets amounting
to R124 million for the year ended 31 March 2016 and R131 million in the prior financial
year. The accounting for amortisation has no impact on the cash flows of the group.
- Accounting for Alexander Forbes shares held in policyholder investment portfolios -
The reported profit of R59 million arising from the accounting for policyholder investments
as treasury shares for the year is separately disclosed on the face of the income statement.
The profit is as a result of the mismatch between the asset and liability movement as
explained above and does not reflect the economic substance of the transactions.
- Investment income and taxation expense on behalf of policyholders - Investment income and
income tax expense include investment income and taxation expense on behalf of policyholders
(refer to the investment income discussion as well as note 8).
Investors are directed to the results presentation which is available on the group's
website (http://www.alexanderforbes.co.za) where the above items are further analysed.
DISCONTINUED OPERATIONS
The business results reflected as discontinued operations include LCP Belgium and
Alexander Forbes Compensation Technologies (AFCT). The disposal of the LCP Belgium operation
was completed by year-end and the effects of the disposal are included in the results
for 31 March 2016. The completion of the disposal of AFCT is considered imminent.
The results of discontinued operations are further detailed in note 9.
DIVISIONAL REVIEW OF OPERATIONS
Operating income Profit from operations
31 Mar Var. 31 Mar 31 Mar Var. 31 Mar
Rm 2016 % 2015 2016 % 2015
Institutional cluster
Financial Services 1 287 3 1 254 183 (2) 186
Investment Solutions 641 (8) 696 279 (15) 328
AF Insurance 20 67 12 5 150 2
1 948 (1) 1 962 467 (9) 516
Retail cluster
Financial Services 615 8 569 207 12 185
Investment Solutions 150 7 140 68 10 62
AF Insurance 431 9 394 108 14 95
1 196 8 1 103 383 12 342
AfriNet (Africa excluding SA) 346 19 291 74 23 60
Total Africa 3 490 4 3 356 924 1 918
Total International (GBPm) 90.6 8 84.2 13.7 11 12.3
Total International (Rm) 1 886 26 1 495 286 31 219
Total group (Rm) 5 376 11 4 851 1 210 6 1 137
* For the purpose of the divisional commentary operating income refers to operating
income net of direct expenses and profit from operations refers to profit from
operations before non-trading and capital items.
During the year the group started the process of refining the organisational structure
to align with the group's strategy. The divisional performance reflected in the table
above is aligned with the new group clusters, and differs from the segmental report
provided in the consolidated results. The changes to the organisational structure
include the movement of various product lines between AF Financial Services and
Investment Solutions as well as between the retail cluster and institutional cluster.
In addition, costs allocated to the divisions have been refined. From 1 April 2016
the group will report on the above clusters only.
The following is a brief summary of divisional trading results for the year ended
31 March 2016.
Institutional cluster
The cluster comprises retirement fund consulting and administration services to both
standalone and umbrella retirement funds, actuarial and asset consulting, healthcare
actuarial and consulting, insurance consulting, beneficiary trust consulting services
and group risk insurance through Alexander Forbes Life.
In addition, investment management and consulting to institutional investors, through
the group's multi-manager, Investment Solutions, is included in this cluster.
(i) Financial Services
The institutional division of Financial Services delivered R1 287 million of
operating income which is 3% higher than the prior year. The growth in operating
income was muted due to the macroeconomic factors noted above as well as a decrease
in the group risk underwriting result year on year and the loss of a significant
client in the health management solutions division.
Financial Services' core retirement fund consulting, actuarial, and operations and
administration business units delivered credible results in a difficult economic
climate. The number of active member records administered within the institutional
businesses increased marginally despite negative employment growth and retrenchment
activity in its client base, to just over one million members. Operating income earned
from consulting, actuarial and administration services to retirement funds, in terms
of both annuity and fee income, grew by 5% year on year, despite these constraints.
With strong expense management and operational efficiency achieved, the profit from
operations for these business units increased by 12% year on year.
Financial Services is continuing to develop and improve its flagship umbrella
retirement fund, the Alexander Forbes Retirement Fund, providing relevant and
cost-effective solutions to the South African market. Its other institutional
umbrella funds, being Alexander Forbes Coreplan and AF Access, showed strong
growth in the year, albeit off a smaller base. The total assets under management
in the institutional umbrella funds increased by 9% year on year to R65.3 billion.
The number of active member records administered by the institutional umbrella
funds is now above 304 000 (up 9% year on year) with 1 320 umbrella fund clients
(participating employers) up 16% year on year.
Gross annualised premium income of AF Life Group Risk totalled R397 million for
the year ended 31 March 2016, an increase of 24% from the prior year. The business
has been effective in achieving good new business success with R75 million of new
annualised premium income for the year ended 31 March 2016. The claims experience
in the Group Risk business was, however, negatively impacted by increased numbers
of disability claims and lower-than-expected rehabilitation of disability claimants.
This is largely a factor of the broader economic climate. The related underwriting
result for this business declined by 24% from 2015. With high regulatory, compliance
and technical costs the profit from operations for AF Life Group Risk decreased
year on year.
The healthcare consulting business had pleasing growth in operating income of
6% year on year due to a combination of good new business, improved client
retention and an increase in the regulated cap for commission income for broking
services. The fee income earned by the health management solutions division
declined by 4% year on year as a result of the loss of a public sector client.
Specific management actions have been put in place to minimise the impact of this
loss in revenue in the forthcoming year.
The public sector division increased revenue for the year by 4% to R216 million.
Although this was below the division's desired growth rate the division made
good progress in building its brand within the sector and strengthening strategic
networks and relationships.
The overall increase in expenses for the cluster was 4%, a pleasing outcome in
the current environment and was as a direct result of strong management focus.
As a result, profit from operations decreased by 2% to R183 million for the year
ended 31 March 2016.
(ii) Investment Solutions
The institutional Investment Solutions division experienced a decrease in
operating income on the back of a tough operating environment in the South African
market. This decrease is despite the continued successes in new business as it
recorded new client flows of R13 billion during the current reporting period.
The decline in operating income can be attributed to:
- higher-than-expected ongoing cash outflows which exceeded recurring cash inflows
by R13.5 billion, mostly related to the decreasing employment rate in South Africa;
- an increasing switch by clients to low-cost investment options given the prevailing
market environment; and
- the trend of lowering margin in the investment and savings value chain in the
South African market.
Closing institutional assets under management (including assets under administration)
increased by 3.4% to R282.4 billion as at 31 March 2016, of which R230.2 billion are
institutional assets under investment management. Average assets under management
increased by 5.4% compared to the previous financial year. Capital markets remained
volatile during the period with low returns across major asset classes.
Despite good new business cash flows the business has experienced higher-than-expected
net outflows of R4.5 billion. A summary of the institutional cash flows is reflected below:
Rbn 2016 % 2015
Inflows 34.4 (9) 37.9
New business 13.0 59 8.2
Ongoing contributions 21.4 (28) 29.7
Outflows 38.9 15 33.8
Outflows due to client losses 4.0 >100 1.0
Withdrawals for benefit payments 34.9 6 32.8
Net cash flows (4.5) >100 4.1
The financial performance was muted with operating income declining by 8% to
R641 million and operating expenses were 2% lower for the year ended 31 March 2016
when compared with the prior year. Profit from operations declined by 15% to
R279 million. The business remains focused on disciplined cost management as
part of responding to a difficult trading environment, which is expected to prevail
in the South African market into the foreseeable future.
Investment Solutions continues to provide a wide range of portfolios, customised
to its clients' needs with risk-adjusted returns which are ahead of peers and
benchmark. Over the past rolling 36 months ended 31 March 2016, 68% of funds were
ahead of benchmark. The investment team continuously focuses on improving and
deepening expertise across the business in order to serve its clients better
and add value towards their retirement savings and wealth creation while managing
the risk of unusual and challenging economic environments.
(iii) AF Insurance
The institutional division of the short-term insurance business has seen significant
success this reporting period with gross written premiums increasing by 55% to
R67 million, albeit off a small base. This division focuses on short-term insurance
cover for the SME market. Operating income grew by 67% over the prior year and
resulted in the profit from operations more than doubling to R5 million for the
year ended 31 March 2016.
Retail cluster (individual clients)
The retail cluster has made significant progress in creating an operating environment
that is client-centric with the creation of an integrated distribution model that allows
the business to deliver holistic solutions to the individual client. These solutions
are developed based on specific client needs and addresses financial planning and wealth
management, as well as short-term and long-term risk-based products. The establishment
of a business and distribution enablement division allows the retail cluster to provide
training and tools to its distribution channel, ensuring that its consultants are
world-class, identifying customer needs, creating value propositions to address these
needs and driving focused campaigns to the market.
The retail focus remains on accessing the institutional member base. However, the strategy
in this area has evolved into a more streamlined, solution-driven and client-focused
approach. As a result, the businesses within retail are being realigned to reflect the
value proposition to the client. As such, the wealth management businesses of retail,
incorporating the AF Individual Client Administration, AF Preservation Fund and
Investment Solutions Retail, combined to form the Wealth and Investment division.
AF Insurance and AF Life, the short-term and long-term insurance providers, will remain
as separate lines of business within the retail cluster.
Proposed regulation impacting the financial services industry, including product offerings
and pricing, is being closely monitored. The retail business continues to proactively
change various service offerings and products, and continues to adapt its business and
advice offered to clients in line with legislation and prevailing market and economic conditions.
(i) Financial Services
The retail division of the SA Financial Services business incorporates financial
planning consultants, AF Individual Client Administration, AF Preservation Fund
and the AF Life individual life insurance businesses.
The growth in operating income was 8% to R615 million when compared to the year
ended 31 March 2015 of which 56% is asset-based income and a further 43% relates
to consulting and advisory fees linked to asset values. This growth is commendable
in light of market performance for the year under review and is a result of the
growth in retail assets under advisement and the number of clients.
The businesses with income related to asset values, being all of the above
businesses excluding AF Life, have experienced volatile markets, resulting in
clients moving to more conservative portfolios. In addition, the economic
environment has seen increased withdrawals from retirement funds into cash,
rather than preservation, and an increase in annuity payments to fund income
requirements.
Assets under advisement grew by 9% over the 12 months to total R62.2 billion at
31 March 2016. Assets under administration grew by 8% to R52.2 billion.
Financial planning consultants delivered an increase in number of clients by 8%
to 46 292 clients at 31 March 2016. Importantly, there was an increase in the
proportion of assets, in respect of members exiting funds administered by the
division, being advised by the financial planning consultants division. Further,
the percentage of financial planning consultants' business written to Alexander Forbes
products has increased from 84.7% to 89.5%. The focus will continue to be on
servicing the institutional client base while maintaining consistently high
client satisfaction rates.
The AF Life individual life insurance business accounts for only 1% of the
retail Financial Services' operating income and is a strategic growth area from
its relatively small base. The company increased distribution channels and product
innovation which has enabled an increase in the number of policyholder clients
for life cover by 61%.
Profit from operations increased 12% to R207 million on the back of a 6% growth
in operating expenses.
(ii) Investment Solutions
Retail assets under management by Investment Solutions increased by 7% to
R49.2 billion off the back of good new business cash flows. This was offset by
the negative impact of volatile markets, an increase in withdrawals as well as
annuity payments. While the majority of the growth in assets under management
is still through financial planning consultants, newer distribution channels have
shown good growth with assets under management from these channels growing by
36% over the prior year off a low base.
Operating income increased by 7% to R150 million when compared to the prior year.
Cost management initiatives have resulted in an increase in profit from operations
of 10% to R68 million for the year ended 31 March 2016.
(iii) Alexander Forbes Insurance
Alexander Forbes Insurance continued the trend of strong growth with a number
of months delivering record new business numbers. Gross written premium increased
by 11% to R1.4 billion. The business continues to grow ahead of competitors based
on an enhanced valuable product offering and superior service.
Alexander Forbes Insurance initiated a number of client-servicing and underwriting
interventions aimed at improving the client churn. A number of these have yielded
positive results, assisting with a reduction in the client churn rate to 18%
(2015: 20%). A number of specific high-value weather-related claims had a detrimental
effect on the claims for the year, resulting in a loss ratio of 76% for the motor
household business which was higher than the prior year's 72%, which is the
long-term target.
Operating income increased by 9% to R431 million. Expenses increased 8%, driven
in part by an ongoing commitment to increase sales capacity and the impact of
the weakening rand on claims procurement.
Profit from operations increased by 14% to R108 million.
AfriNet (covering all operations in Africa outside of South Africa)
Operating income increased by 19% to R346 million for the year ended 31 March 2016
and profit from operations grew by 23% to R74 million. The AfriNet division has
consistently performed well and growth is currently still entirely organic.
An effective operating leverage of 2% assisted in achieving the profit from
operations growth of 23% in an environment where operating income grew by 19%
and costs by 16%. Since personnel costs and technology comprise more than 65%
of the cost base management has been disciplined in ensuring cost benefits from
automation expenditure are realised. Automation of certain labour-intensive
support processes, together with effective performance management processes,
has resulted in positive yielding cost management benefits over the last year,
culminating in a margin improvement (inclusive of corporate overheads) from
20.6% to 21.4%.
It is pleasing to note that East Africa and retail are now consistent and larger
contributors to the overall AfriNet growth. From a geographical perspective,
East Africa now contributes 23% of operating income and 14% of profit from operations,
whilst southern Africa remains a dominant contributor with 74% of operating income
and 86% of profit from operations. West Africa still remains a key focus area for
expansion. The Nigerian business contributes 3% to overall AfriNet operating income
and is presently experiencing a very difficult economic environment.
The retail business lines offered now includes financial planning advice
(wealth management), short-term insurance and life insurance, and contribute
19% to operating income. Further build out of wealth management in Uganda is
scheduled for the current financial year.
Despite the current market conditions the pensions reform wave remains a valid
underpin for growth prospects of the Alexander Forbes Group in the sub-Saharan
region. In particular, there is renewed interest from governments in developing
local pensions markets, as international funding for asset classes such as
infrastructure become more difficult to source.
International Financial Services
The continuing operations of the international Financial Services business comprise
the consulting actuarial business of Lane Clark & Peacock (LCP) with operations in
the United Kingdom, Ireland and the Netherlands.
Operating income increased by a very pleasing 8% to �90.6 million for the year ended
31 March 2016 and profit from operations increased by 11% to �13.7 million. Revenue growth
across the operations continued to grow in real terms, albeit those clients continue
to manage their expenditure reflecting pressure on charge out rates. This revenue growth,
combined with strong cost management, resulted in the achievement of good operating
leverage. The businesses continue gaining new clients and capitalising on the demand
for employer and trustee employee benefit and actuarial consulting, investment consulting,
including de-risking solutions, and general insurance actuarial consulting.
Market dominance in de-risking continues.
LCP continues to provide the group with a rand hedge. The 31% growth in rand profit from
operations to R286 million for the year ended 31 March 2016 resulted from the 23%
deterioration in the average rand/sterling exchange rate.
FINANCIAL POSITION AND DIVIDEND
Financial position and capital requirements
The financial position of the group remains strong and all regulated entities within the
group comply with current solvency, liquidity and regulatory capital adequacy requirements.
The group is appropriately positioned for the pending introduction of consolidated
supervision by the regulators. Based on representation made by the Financial Services
Board the effective date of implementation of the formal framework for group-wide
supervision is now expected to be 1 January 2017; however, current reporting requirements
to the regulator already incorporate the expected formal framework.
As at 31 March 2016 the theoretical consolidated regulatory capital position, using the
measures and interpretations under the Solvency Assessment and Management (SAM) standard,
is a surplus of R416 million (before the proposed dividend distribution). The Investment
Solutions internal model for risk-based capital adequacy assessment is established.
The business will continue to refine the model and will seek regulatory approval once
the legislative environment is established.
Final dividend
A dividend declaration has been considered, taking into account the group's current
and projected regulatory position as well as the highly cash-generative nature of the
group. The investment into modernising technology will demand additional capital
investment; however, this is expected to be provided for through ongoing earnings.
Notice is hereby given that the directors have declared a final gross cash dividend of
22 cents (18.70 cents net of dividend withholding tax) per ordinary share for the
year ended 31 March 2016.
The dividend has been declared from income reserves. A dividend withholding tax of 15%
will be applicable to all shareholders who are not exempt. The issued number of shares
at the date of declaration is 1 341 426 963.
The salient dates for the dividend will be as follows:
Last day of trade to receive a dividend Tuesday, 19 July 2016
Shares commence trading 'ex' dividend Wednesday, 20 July 2016
Record date Friday, 22 July 2016
Payment date Monday, 25 July 2016
Share certificates may not be dematerialised or rematerialised between Wednesday,
20 July 2016 and Friday, 22 July 2016, both days inclusive.
This brings the total dividend paid for the year to 34 cents.
PROSPECTS
The year has been challenging for Alexander Forbes's executive management team, as the
South African business environment and economic fundamentals have negatively affected
key business drivers and worked against the group's efforts to show traction on the
group's strategic goals.
The group's key focus will continue to align with its higher purpose objectives set
a number of years back: to create, grow and protect clients' wealth and, in doing so,
help its clients achieve peace of mind through securing their financial well-being.
Leadership remains confident that the group's strategic intent is sound and its focus
in the coming year will remain on driving top line growth while optimising operational
expenses and ensuring organisational integrity.
As such, the group will aim to:
- improve asset capture in the institutional core business by providing tailored product
options suited to clients' needs; deepening investment knowledge and enhancing investment
performance; and by granting its clients easier access to investment choices including
lower cost investment portfolios;
- continue to access the institutional member base to provide appropriate holistic financial
advice and relevant value adding products to retail clients;
- use the expertise gained in South Africa to drive growth in the rest of the continent;
- drive modernisation in the group's technology environment including the digital interface
with its clients; and
- continue to challenge itself and find efficiencies in the operating environment.
CHANGE IN DIRECTORATE
The board is pleased to welcome two independent directors, Mr RM Kgosana and Ms BJ Memela,
who were appointed on 20 April 2015 and 1 July 2015, respectively. Messrs B Petersen and
E Chr Kieswetter resigned from the board with effect from 4 September 2015 and
8 February 2016 respectively. The board thanks Messrs Petersen and Kieswetter for their
contribution to the group. There have been no further changes to the board during the
year under review.
On behalf of the board of directors:
MS Moloko DM Viljoen
Chairman Group chief executive (interim)
Johannesburg
10 June 2016
SUMMARY CONSOLIDATED INCOME STATEMENT
For the year ended 31 March 2016
Rm Notes 2016 2015
Continuing operations
Fee and commission income 3 5 839 5 268
Net income from insurance operations 4 540 498
Direct expenses attributable to fee and commission income (1 003) (915)
Operating income net of direct expenses 5 376 4 851
Operating expenses (4 166) (3 714)
Profit from operations before non-trading and capital items 1 210 1 137
Non-trading and capital items 5 (137) (355)
Operating profit 1 073 782
Investment income 6 294 226
Finance costs 7 (71) (119)
Reported profit/(loss) arising from accounting for
policyholder investments in treasury shares 13 59 (26)
Share of profit of associates (net of income tax) 4 3
Profit before taxation 1 359 866
Income tax expense 8 (468) (361)
Profit for the year from continuing operations 891 505
Discontinued operations
Loss on discontinued operations (net of income tax) 9 (17) (145)
Profit for the year 874 360
Attributable to:
Equity holders 729 253
Non-controlling interest holders 145 107
874 360
Basic earnings per share (cents) 10 56.9 20.5
Headline earnings per share (cents) 10 58.1 31.9
Diluted earnings per share (cents) 10 56.4 20.2
Weighted average number of shares in issue (millions) 10 1 282 1 237
SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2016
Rm 2016 2015
Profit for the year 874 360
Foreign currency translation differences of foreign operations 198 26
Foreign currency translation reserve of disposed operations
recycled to profit or loss 2 -
Release of available-for-sale reserves (5) -
Other comprehensive income for the year (net of income tax)
that will be reclassified to profit or loss 195 26
Remeasurement of post-employment benefit obligations - (4)
Other comprehensive loss for the year (net of income tax)
that will not be reclassified to profit or loss - (4)
Total comprehensive income for the year 1 069 382
Total comprehensive income attributable to:
Equity holders 903 272
Non-controlling interest holders 166 110
Total comprehensive income for the year 1 069 382
SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 March 2016
Rm Notes 2016 2015
ASSETS
Financial assets held under multi-manager
investment contracts 13 276 258 262 004
Financial assets of insurance and cell-captive contracts 253 358
Property and equipment 355 331
Purchased and developed computer software 139 84
Goodwill 3 995 3 899
Intangible assets 681 764
Investment in associates 8 9
Deferred tax assets 157 149
Financial assets 489 419
Insurance receivables 981 820
Trade and other receivables 933 782
Cash and cash equivalents 4 877 4 350
Assets of disposal groups classified as held for sale 9 131 178
Total assets 289 257 274 147
EQUITY AND LIABILITIES
Equity holders' funds 5 901 5 350
Non-controlling interest 255 190
Total equity 6 156 5 540
Financial liabilities held under multi-manager
investment contracts 13 276 382 262 172
Liabilities of insurance and cell-captive contracts 253 358
Borrowings 705 1 000
Employee benefits 166 177
Deferred tax liabilities 322 323
Provisions 352 317
Finance lease liability 80 86
Operating lease liability 266 207
Deferred income 34 25
Insurance payables 2 878 2 536
Trade and other payables 1 620 1 334
Liabilities of disposal groups classified as held for sale 9 43 72
Total liabilities 283 101 268 607
Total equity and liabilities 289 257 274 147
Total equity per above 6 156 5 540
Weighted average number of ordinary shares in issue (millions) 1 282 1 237
Net asset value per ordinary share (cents) 480 448
SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2016
Rm 2016 2015
Cash flows from operating activities
Cash generated from operations 1 313 1 043
Net interest received/(paid) 22 (15)
Taxation paid* (500) (524)
Dividends paid (352) -
Operating cash flows from continuing operations 483 504
Net cash flows received from insurance and policyholder contracts 568 274
Net cash flows received from/(paid to) policyholder
investment contracts 5 561 (2 901)
Cash flows from operating activities - discontinued operations (9) 3
Net cash inflow/(outflow) from operating activities 6 603 (2 120)
Cash flows from investing activities
Net cash (outflows)/inflows on financial assets (54) 29
Payments for capital expenditure (net of proceeds on disposal) (182) (109)
Dividends received from associate 5 -
Cash flows from investing activities - discontinued operations (2) (2)
Net cash outflow from investing activities (233) (82)
Cash flows from financing activities
Proceeds from the issue of shares - 316
Payments for the redemption of B preference shares - (178)
Payments for purchase of treasury shares - (24)
Repayment of borrowings (299) (250)
Payments to non-controlling interests (101) (130)
Net cash outflow from financing activities (400) (266)
Net increase/(decrease) in cash and cash equivalents 5 970 (2 468)
Cash and cash equivalents at the beginning of the year 9 674 12 129
Foreign subsidiaries' translation adjustment 104 13
Cash and cash equivalents at the end of the year 15 748 9 674
Analysed as follows:
Cash and cash equivalents of continuing operations 4 877 4 350
Cash held under multi-manager investment and insurance contracts 10 820 5 297
Cash held under cell-captive insurance contracts 38 -
Cash and cash equivalents of disposal groups held for sale 13 27
15 748 9 674
* Taxation paid includes tax paid on behalf of policyholders.
SUMMARY GROUP STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2016
Rm
Total
equity Non-con-
Share Treasury Other Accumu- holders' trolling Total
capital shares reserves lated loss funds interest equity
At 31 March 2014 5 819 (405) 102 (889) 4 627 210 4 837
Total comprehensive income - - 23 249 272 110 382
Profit for the year - - - 253 253 107 360
Other comprehensive income - - 23 (4) 19 3 22
Issue of shares 373 - - - 373 - 373
Movement in treasury shares - 239 - - 239 35 274
Movement in share-based payment reserve - - 17 - 17 - 17
Redemption of B preference shares - - (178) - (178) - (178)
Other movements in non-controlling interest* - - - - - (165) (165)
At 31 March 2015 6 192 (166) (36) (640) 5 350 190 5 540
* These amounts include distributions made to non-controlling interest holders as well as changes to acquisitions and
disposals of equity held by non-controlling interest holders.
Rm
Total
equity Non-con-
Share Treasury Other Accumu- holders' trolling Total
capital shares reserves lated loss funds interest equity
At 31 March 2015 6 192 (166) (36) (640) 5 350 190 5 540
Total comprehensive income - - 174 729 903 166 1 069
Profit for the year - - - 729 729 145 874
Other comprehensive income - - 174 - 174 21 195
Movement of treasury shares - (15) - - (15) - (15)
Issue of shares** - - - - - - -
Dividends paid - - - (352) (352) - (352)
Movement in share-based payment reserve - - 19 - 19 - 19
Other movements in non-controlling interest* - - - (4) (4) (101) (105)
At 31 March 2016 6 192 (181) 157 (267) 5 901 255 6 156
* These amounts include distributions made to non-controlling interest holders as well as changes to acquisitions and
disposals of equity held by non-controlling interest holders. The movement in accumulated loss during the current
year relates to the disposal of 20% of the direct shareholding in Alexander Forbes Financial Services (East Africa)
Proprietary Limited.
** During the year the company issued 39 million shares to the Employee Share Option Plan for 1 cent per share.
GROUP SEGMENTAL INCOME AND PROFIT ANALYSIS
For the year ended 31 March 2016
Operating income Profit from operations before
net of direct expenses non-trading and capital items
Rm 2016 % 2015 2016 % 2015
Africa
SA Financial Services 1 934 4 1 852 399 3 386
Investment Solutions 759 (6) 806 358 (12) 407
AF Insurance 451 11 407 123 17 105
AfriNet (Africa excluding South Africa) 346 19 291 74 23 60
Accounting for the property lease - - (30) (25) (40)
Total Africa continuing operations (Rm) 3 490 4 3 356 924 1 918
International Financial Services (GBPm) 90.6 8 84.2 13.7 11 12.3
International Financial Services (Rm) 1 886 26 1 495 286 31 219
Total group continuing operations 5 376 11 4 851 1 210 6 1 137
During the year the group reorganised the operational key decision makers into newly formed clusters
aligned with the group's strategy. The above segmental view reflects the reporting segments consistent
with the prior year. The reporting segments aligned to the new clusters are presented in the directors'
report. From 1 April 2016 the group will provide segmental reporting on the new cluster segments only.
Depreciation
and amortisation Assets
Rm 2016 % 2015 2016 % 2015
Africa
SA Financial Services 16 13 75 768 69 655
Investment Solutions 9 4 276 357 262 269
AF Insurance 4 4 749 618
AfriNet 5 3 4 331 3 962
Total Africa (Rm) 34 42 24 357 205 6 336 504
International Financial Services (GBPm) 1.0 0.9 77.6 75.1
International Financial Services (Rm) 20 25 16 1 646 22 1 343
Unallocated
Corporate Services 56 46 924 1 038
Discontinued operations 11 1 145 178
Goodwill - - 3 995 3 899
Consolidation elimination* - - (74 658) (68 815)
Total group 121 39 87 289 257 6 274 147
* This amount relates mainly to assets invested by group companies with Investment Solutions.
SUMMARY NOTES
For the year ended 31 March 2016
1. BASIS OF PREPARATION
The summary consolidated financial statements are prepared in accordance with the requirements
of the JSE Limited Listings Requirements for provisional reports, and the requirements of the
Companies Act applicable to summary financial statements. The Listings Requirements require
provisional reports to be prepared in accordance with the framework concepts and the measurement
and recognition requirements of International Financial Reporting Standards (IFRS) and the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and to also,
as a minimum, contain the information required by IAS 34 Interim Financial Reporting. The
accounting policies applied in the preparation of the consolidated annual financial statements
from which the summary consolidated financial statements have been derived are in terms of IFRS
and are consistent with those accounting policies applied in the preparation of the previous
consolidated annual financial statements.
This summarised report is extracted from audited information, but is not itself audited.
The annual financial statements were audited by PricewaterhouseCoopers Inc., who expressed
an unmodified opinion thereon. The audit report does not necessarily report on all of the
information contained in this report. Shareholders are therefore advised that, in order to
obtain a full understanding of the nature of the information that has been audited, they
should obtain a copy of the auditor's report together with the accompanying audited
consolidated annual financial statements, both of which are available for inspection at the
company's registered office.
These summary consolidated financial statements were compiled under the supervision of
Deon Viljoen, CA(SA), the group chief financial officer. The directors take full responsibility
for the preparation of this report and that the financial information has been correctly
extracted from the underlying annual financial statements.
2016 2015
2. EXCHANGE RATES
The income statements and statement of financial position
of foreign subsidiaries have been translated to rands
as follows:
Weighted average R:GBP rate 20.8 17.8
Closing R:GBP rate 21.2 17.9
Rm 2016 2015
3. FEE AND COMMISSION INCOME
Brokerage fees and commission income 43 26
Fee income from consulting and administration services 4 042 3 525
Revenue from investment management activities 1 713 1 670
Other income 41 47
Fee and commission income 5 839 5 268
Rm 2016 2015
4. NET INCOME FROM INSURANCE OPERATIONS
Insurance premiums earned 2 123 1 909
Less: amounts ceded to reinsurers (1 258) (1 114)
Investment income from insurance operations 32 11
Less: insurance claims and withdrawals (1 507) (1 326)
Plus: insurance claims and benefits covered through
reinsurance contracts 1 150 1 018
Net income from insurance operations 540 498
Rm 2016 2015
5. NON-TRADING AND CAPITAL ITEMS
Non-trading:
Professional indemnity insurance cell-captive result (9) (23)
Amortisation of intangible assets arising from
business combination (124) (131)
Corporate transaction, listing and historic incentive costs - (207)
Other non-trading items (4) 6
Total non-trading and capital items (137) (355)
Rm 2016 2015
6. INVESTMENT INCOME
General operations
Interest income 77 89
Investment and dividend income 23 31
Foreign exchange (losses)/gains on intergroup loans (3) 3
97 123
Multi-manager operations
Investment income linked to policyholder tax expense 197 103
Total investment income 294 226
Rm 2016 2015
7. FINANCE COSTS
Finance costs derived from financial liabilities classified
and carried at amortised costs:
Interest on borrowings (57) (102)
Other interest costs (14) (17)
Total finance costs (71) (119)
Rm 2016 2015
8. INCOME TAX EXPENSE
South African income tax
Current tax (248) (280)
Current year (248) (266)
Prior year - (14)
Deferred tax 39 77
Current year 32 71
Prior year 7 6
Foreign income tax
Current tax (52) (48)
Current year (54) (45)
Prior year 2 (3)
Deferred tax (4) (2)
Current year (4) (1)
Prior year - (5)
Change in rate - 4
Foreign withholding tax (6) (5)
Tax attributable to policyholders (197) (103)
Current tax - current year (176) (139)
Deferred tax - current year (21) 36
Total tax expense (468) (361)
9. DISCONTINUED OPERATIONS
In line with the requirements of IFRS 5, businesses that have been disposed or are
considered discontinued are disclosed separately with comparative information for the
consolidated income statement being restated. Assets and liabilities held at the end
of the year in respect of discontinued, where the disposal process is ongoing,
have been reclassified as assets and liabilities of disposal groups held for sale.
Rm 2016 2015
Assets and liabilities of disposal group classified
as held for sale
Long-term assets 3 24
Deferred tax asset - 6
Financial assets - 1
Trade and other receivables 8 21
Other current assets 107 99
Cash and cash equivalents 13 27
Total assets 131 178
Deferred tax liability 30 29
Provisions 6 18
Trade and other payables 7 25
Total liabilities 43 72
Summary income statement from discontinued operations
Operating income 118 103
Operating expenses (113) (134)
Operating profit/(loss) before non-trading and capital items 5 (31)
Finance costs - (1)
Non-trading and capital items (20) (105)
Share of loss from associates - (2)
Loss before tax (15) (139)
Income tax expense (3) 9
Net loss for the year (18) (130)
Loss on disposals 1 (15)
Loss from discontinued operations (17) (145)
10. EARNINGS PER SHARE
10.1 Basic earnings per ordinary share
Basic earnings per share is calculated by dividing the profit for the year
attributable to equity holders by the weighted average number of ordinary shares
in issue during the year.
10.2 Headline earnings per ordinary share
Headline earnings per share is calculated by excluding applicable non-trading
and capital gains and losses from the profit attributable to ordinary shareholders
and dividing the resultant headline earnings by the weighted average number of
ordinary shares in issue during the year. Headline earnings is defined in
Circular 2/2015 issued by the South African Institute of Chartered Accountants.
10.3 Diluted earnings per ordinary share
Diluted earnings per ordinary share is calculated by adjusting the profit
attributable to equity holders for any changes in income or expense that would
result from the conversion of dilutive potential ordinary shares and dividing
the result by the weighted average number of ordinary shares increased by the
weighted average number of additional ordinary shares that would have been
outstanding assuming the conversion of all dilutive potential ordinary shares.
Millions 2016 2015
10.4 Number of shares
Weighted average number of shares 1 334 1 286
Weighted average shares held by policyholders
classified as treasury shares (17) (15)
Weighted average treasury shares (35) (34)
Weighted average number of shares 1 282 1 237
Dilutive shares (conditional and forfeitable share plan) 10 14
1 292 1 251
Actual number of shares 1 341 1 302
Actual treasury shares (61) (20)
Actual number of shares in issue 1 280 1 282
Rm 2016 2015
10.5 Calculation of headline earnings and diluted
headline earnings
Profit attributable to equity holders (IAS 33 earnings) 729 253
Adjusting items
Loss on sale of subsidiary 2 23
Impairment losses and other capital items 13 118
Headline earnings for the year 744 394
Basic earnings per share (cents) 56.9 20.5
Headline earnings per share (cents) 58.1 31.9
10.6 Dilutive earnings per share
Diluted basic earnings per share (cents) 56.4 20.2
Diluted headline earnings per share (cents) 57.6 31.5
The group implemented certain share schemes during the listing process that may
result in dilution on both earnings per share and headline earnings per share
at the future date of vesting. The dilutive effect is largely conditional on
performance during the year for each award. The above dilutive effect is
calculated based on the performance of the company for the current year in
relation to the performance criteria.
Rm 2016 2015
11. CAPITAL EXPENDITURE FOR THE YEAR 183 110
Rm 2016 2015
12. OPERATING LEASE COMMITMENTS
Due within one year 235 211
Thereafter 2 230 2 177
Total operating lease commitments 2 465 2 388
Capital expenditure and commitments will be funded from internal cash resources.
13. FINANCIAL ASSETS AND LIABILITIES HELD UNDER MULTI-MANAGER INVESTMENT CONTRACTS
The policyholder assets held by the group's multi-manager investment subsidiary,
Investment Solutions, in South Africa and Namibia are recognised on-balance sheet in
terms of IFRS. These assets are directly matched by linked obligations to policyholders.
As a result of the group being listed the investments by underlying asset managers
in the listed shares of the group are recognised as treasury shares and all fair value
adjustments recognised on these treasury shares are reversed, while the corresponding fair
value of the liability continues to be recognised in the income statement. The resultant
profit for the year of R59 million has been disclosed separately on the face of the statement
of comprehensive income. This treatment also impacts the number of shares in issue, the
impact of which is disclosed in note 10.
Below is a reconciliation of the assets held under multi-manager investment contracts with
the linked liabilities under such contracts:
Rm 2016 2015
Total assets held under multi-manager investment contracts
(per statement of financial position) 276 258 262 004
Reversal of adjustments made under IFRS:
Alexander Forbes shares held as policyholder assets and
reclassified in the group statement of financial position
as treasury shares 157 142
Financial effects of accounting for policyholder investments
as treasury shares - prior years 26 -
Financial effects of accounting for policyholder investments
as treasury shares - current year (59) 26
Total financial liabilities held for policyholders under
multi-manager investment contracts 276 382 262 172
14. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
14.1 Financial risk factors
The group's activities expose it to a variety of financial risks: market risk
(including currency risk, fair value interest rate risk, cash flow interest rate
risk and price risk), credit risk and liquidity risk.
The condensed interim financial statements do not include all financial risk
management information and disclosures required in the annual financial statements
and this disclosure should be read in conjunction with the group's annual financial
statements as at 31 March 2016.
There have been no material changes in the risk management or in any risk management
policies since the year-end.
14.2 Liquidity risk
Compared to the 31 March 2015 year-end, there was no material change in the
contractual undiscounted cash outflows for financial liabilities.
14.3 Fair value hierarchy
The group classifies fair value measurements using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. The fair
value hierarchy has the following levels:
- Level 1: Quoted prices in active markets for identical assets or liabilities.
- Level 2: Inputs other than quoted prices that are observable for the asset or
liability, either directly or indirectly.
- Level 3: Inputs for valuation that are not based on observable market data
(that is, inputs are unobservable).
The table below analyses financial instruments carried at fair value, by valuation method.
Rm Level 1 Level 2 Level 3 Total
2016
Financial assets measured at fair value
Financial assets held under multi-manager investment contracts 195 150 79 515 1 593 276 258
Financial assets of insurance and cell-captive contracts 142 111 - 253
General operations - 394 - 394
Total financial assets measured at fair value 195 292 80 020 1 593 276 905
Financial liabilities measured at fair value
Financial liabilities held under multi-manager investment contracts - 276 382 - 276 382
Financial liabilities of insurance and cell-captive contracts - 253 - 253
Total financial liabilities measured at fair value - 276 635 - 276 635
2015
Financial assets measured at fair value
Financial assets held under multi-manager investment contracts 186 586 73 902 1 516 262 004
Financial assets of insurance and cell-captive contracts 115 67 176 358
General operations - 125 - 125
Total financial assets measured at fair value 186 701 74 094 1 692 262 487
Financial liabilities measured at fair value
Financial liabilities held under multi-manager investment contracts - 262 172 - 262 172
Financial liabilities of insurance and cell-captive contracts - 182 176 358
Total financial liabilities measured at fair value - 262 354 176 262 530
Transfers between Levels 1 and 2
Movements in financial assets associated with multi-manager investment contracts and
cell-captive insurance contracts are directed by clients. These movements are a result
of investments and withdrawals made. There were no transfers between Levels 1 and 2
during the year which were as a result of a change in valuation methodology.
Level 3 reconciliation
Level 3 financial assets and liabilities comprise mainly policyholder and cell-owner
assets and liabilities. Financial assets and financial liabilities in this level are
insignificant in relation to total financial assets and financial liabilities respectively.
In addition, the movements in Level 3 financial assets are directly linked to the
movements in the linked investment liability. Any fair value gains and losses resulting
from policyholder or cell-owner financial assets and financial liabilities have no impact
on profit or loss. There was no change in the valuation methodology of Level 3 assets
during the year.
Sensitivity analysis for Level 3 financial assets
The following table presents significant inputs to show the sensitivity of Level 3
measurements and assumptions used to determine the fair value of the financial assets:
Instrument Valuation technique Significant inputs
Suspended listed equities Exchange trade price Last exchange traded price
Community property company assets Discounted cash flow model Capitalisation rates and discounts rates
Infrastructure and development assets Equity Equity
Distribution discount model, cost, Interest rates and exchange traded prices
mark to market, price earnings
multiple and liquidation value
Debt Debt
Discounted cash flow model Interest rates - fixed and floating
The group's overall profit or loss is not sensitive to the inputs of the models applied to derive fair value.
14.4 Valuation methods and assumptions for valuation techniques
There were no changes in the valuation methods and assumptions for valuation techniques
since 31 March 2015. A detailed description of the valuation methods and assumptions for
valuation techniques is available in our annual financial statements for the year ended
31 March 2016.
14.5 Fair value of financial assets and financial liabilities measured at amortised cost
The fair value of the following financial assets and liabilities measured at amortised
cost approximate their carrying amount:
- Trade and other receivables
- Insurance receivables
- Cash and cash equivalents
- Trade and other payables
- Insurance payables
- Borrowings
CORPORATE INFORMATION
Independent directors
MD Collier, D Konar, RM Kgosana, HP Meyer, BJ Memela
Non-executive directors
DJ Anderson, WS O'Regan
Executive directors
MS Moloko (chairman), DM Viljoen (group chief financial officer and interim group chief executive)
Company secretary
JE Salvado
Investor relations
MK Dippenaar
Registered office
Alexander Forbes, 115 West Street, Sandown, 2196
Transfer secretaries
Computershare Investor Services Proprietary Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
Website
http://www.alexanderforbes.co.za
Date of issue: 13 June 2016
Date: 13/06/2016 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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