Wrap Text
Unaudited interim results and cash dividend announcement for the six months ended 30 September 2016
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)
UNAUDITED INTERIM RESULTS AND CASH DIVIDEND ANNOUNCEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016
FINANCIAL HIGHLIGHTS
- Operating income net of direct expenses R2 695 million
This is a 5% growth when compared to the six months ended 30 September 2015.
- Profit from operations before non-trading and capital items R574 million
This is a 4% improvement when compared to the six months ended 30 September 2015.
- Profit for the period R416 million
This is a 4% improvement when compared to the six months ended 30 September 2015.
- Normalised profit for the period R464 million
This is an 11% improvement when compared to the six months ended 30 September 2015.
- Headline earnings per share 27.0 cents per share
This is a 4% increase when compared to the six months ended 30 September 2015.
- Normalised HEPS 30.8 cents per share
This is a 13% increase when compared to the six months ended 30 September 2015.
- Average AuA and AuM of Investment Solutions increased to R342 billion
This is a 5% growth when compared to the six months ended 30 September 2015.
- Interim dividend declared 17 cents per share
This is a 13% increase when compared to the six months ended 30 September 2015.
OVERVIEW OF FINANCIAL RESULTS
The group's headline earnings increased by 3% to R345 million for the six months ended
30 September 2016. A normalised representation of the results is presented below and
reflects growth in attributable profit after tax of 13% to R400 million. The weighted
average number of shares in issue decreased marginally as a result of the increased policyholder
shares treated as treasury shares, which resulted in the headline earnings per share
increasing by 4% to 27.0 cents per share for the six-month period ended 30 September 2016
(normalised headline earnings per share increased by 13% to 30.8 cents).
OPERATING ENVIRONMENT
The group delivered resilient financial and operating performance in spite of a complex
and volatile economic environment characterised by equity market volatility, rising
unemployment and weak GDP growth.
The group's earnings are affected by the following external factors:
Equity and bond markets: Growth of the all share index (ALSI) and the SWIX to 30 September 2016
was 0.9% and 1.6% respectively. The BESA all bond index increased 8% for the same period.
The volatility in the equity market has increased uncertainty and there is consensus that the
current low growth environment will persist for the medium term. A total of 30% 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 has increased by approximately 7% for the first
six months of the year. Wage inflation generally has a positive impact on a number of our
businesses whose fees are derived from the related increase in pension contributions.
Unemployment: In the last three calendar years, the standard unemployment rate has increased
steadily by 0.2% per year and is currently reported at 26.6% at the end of September 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 continues to lag expectation and has been recorded at
0.5% over the past six months.
Exchange rate: The weighted average rate of 19.8 ZAR/GBP for the six months ended
30 September 2016 did not change significantly when compared to the same period in the prior year.
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 R2.7 billion for the six months
ended 30 September 2016, up 5% when compared to the same period last year.
Africa income was significantly impacted by weaker markets where 30% of the group's revenue
is linked to the assets under administration and management. As report previously, clients moved
assets within the group's specialised investment product range to balanced portfolios and
index or 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 value proposition to clients.
CONSOLIDATED PROFIT FROM OPERATIONS
Operating profits from continuing operations, before non-trading and capital items, increased
by 4% to R574 million when compared to the same period in the prior year. The divisional
performance review is reflected below. Excluding the International operations, the growth for
Africa was 5%, resulting in an operating profit of R475 million. This result reflects the
significant efforts made to reduce costs and drive efficiencies in the operations.
Operating expenses, including the International operations, attributed to continuing operations
(excluding non-trading and capital items) of R2.1 billion increased by 5% compared to the
previous year (impacted by the accounting for share-based long-term incentive scheme costs).
The operating expenses for South African operations increased 3% which reflects management
focus on cost containment.
The overall group trading margin on net revenue is 21.3% compared to the 21.5% for the same
period in the previous financial year. The trading margin of the South African operations
increase from 27.0% in the six months to 30 September 2015 to 27.8% for the period under
review as a result of the cost management noted.
DIVISIONAL REVIEW OF OPERATIONS
The following is a brief summary of divisional trading results for the six months ended
30 September 2016.
Institutional Clients
(i) Financial Services
The Financial Services division within Institutional clients delivered R642 million
of operating income, representing a 4% increase over the first six months of the prior
year. Core businesses include retirement fund consulting and administration to both
standalone and umbrella retirement funds, actuarial consulting, healthcare actuarial
and consulting, insurance consulting, beneficiary trust consulting and administration,
and group risk insurance through Alexander Forbes Life.
Growth in operating income was impacted by the current low growth environment as well
as poorer performance across Group Risk underwriting. Management continued with the
execution of expense containment and operational efficiency enhancements, which resulted
in profit from operations up 8% compared to the first six months of the previous financial
year.
New business opportunities continue to be muted across retirement fund and healthcare
consulting as a result of delayed decision-making at trustee and corporate levels.
We firmly believe that our value proposition remains relevant and we see strong momentum
in clients continuing to value our expertise and experience as a trusted adviser in
delivering favourable outcomes and experiences across their financial well-being and
security.
The Alexander Forbes Retirement Fund (AFRF) continues to be a leader in the umbrella
fund industry, providing relevant and cost-effective solutions to the South African
market. The Alexander Forbes Coreplan umbrella fund continues to be innovative and
provides low-cost simple solutions with a strong growth trajectory. Importantly,
an innovative new offering was launched to our umbrella funds during this period, being
in-fund preservation and in-fund living annuities. Simply explained, in-fund solutions
provide members of a fund with a cost-effective solution to preserve their retirement
fund savings when changing employment and also to derive an annuity income in retirement.
A number of competitors have recently entered the umbrella fund market. While we have
not seen significant client losses from this increased competition, we continue to be
vigilant in ensuring our products and services are world-class and continue to demonstrate
the value of the trusted Alexander Forbes brand and expertise to our clients.
Despite our client base being impacted by negative employment growth and retrenchment
activity in certain sectors of the economy, the number of active member records for our
umbrella retirement funds has increased by 5% since September 2015. However, the number of
active member records for our standalone retirement funds has decreased by 6% from
31 March 2016, mainly as a result of the loss of a large standalone retirement fund client
which has chosen to in-source its administration. The cost base within our business has been
adjusted for the impact of this lost client.
The closing assets under management (AuM) for the umbrella funds increased by 11% year on
year to R66.8 billion at 30 September 2016. This was achieved in a period where market growth
in AuM was 2%. The number of active member records administered by the umbrella funds is now
just short of 310 000 (up 5% from September 2015) with 1 361 umbrella fund clients
(participating employers) up 10% from September 2015.
AF Life Group Risk grew annualised premium income to R406 million at 30 September 2016,
an increase of 11% when compared to the first six months of the previous financial year.
Despite the pleasing increase in new business, the Life business operates in a highly
competitive market. The claims experience was negatively impacted by the continued increasing
trend in disability claims with disabilities having a longer rehabilitation period because of
the nature of the disabilities experienced, including an increase in mental health and cancer-
related disabilities. The underwriting result before interest earnings was impacted by the
increased claims and required reserving and decreased by 14% compared to the same period
last year.
The healthcare consulting business performed well for the first half but operating income
remained flat when compared to the first six months of the prior year. An increase in the
regulated cap for commission income for health broking services and new business landed for
consulting services was offset by the loss of a public sector client in the health
management solutions business unit in the previous financial year. Management action on the
cost base resulted in a 13% increase in the profit from operations in this business.
The overall increase in expenses was contained at 3%, a very pleasing outcome in the
current environment and was as a direct result of strong management focus on cost
containment and operational efficiencies. As a result, profit from operations increased by
8% to R80 million for the six months ended 30 September 2016.
(ii) Investment Solutions
The operating income for the Institutional Investment Solutions segment remained flat for
the first six months ended 30 September 2016 compared to the six months of the prior year.
The current low return market environment persists across all major asset classes coupled
with the continued net negative ongoing cash outflows which are prevalent in the retirement
fund industry. The segment experienced good new business flows of R4.8 billion for the
six months ended 30 September 2016; these flows were offset by net ongoing client cash
outflows of R9 billion (the difference between ongoing contributions and withdrawals for
benefit payments) and client losses of R1.9 billion for the same period.
Closing assets under management (including assets under administration) increased by 0.6%
to R341 billion as at 30 September 2016 from 31 March 2016, of which R282 billion are
institutional assets under investment management. Average assets under management increased
by 5.0% compared to the first six months of the previous financial year which, aligned with
the fact that operating income remained flat, reflects the continued effect of the margin
pressure resulting from portfolio shifts and more generally in asset management space.
A summary of the institutional cash flows is reflected below.
Six months Six months
30 Sept 30 Sept
Rbn 2016 % 2015
Inflows 17.3 (9) 19.1
New business 4.8 5.6
Ongoing contributions 12.5 13.5
Outflows (23.4) 7 (21.8)
Outflows due to client losses (1.9) (1.9)
Withdrawals for benefit payments (21.5) (19.9)
Net cash flows (6.1) 126 (2.7)
The increase in operating expenses is 2% for the six months ended 30 September 2016 when
compared with the same period in the prior year. Profit from operations declined by 2% to
R143 million. The business remains focused on disciplined cost management as part of
responding to a low return 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 30 September 2016, 67% of funds were ahead of benchmark
including our flagship fund, Performer, which has the highest allocation of assets.
The Investment team continuously focuses on improving and deepening investment expertise across
the business in the group 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) Alexander Forbes Insurance
The institutional client segment of the short-term insurance business continues to grow
rapidly from a very small base with gross written premiums increasing by 56% to R44 million.
This division focuses on short-term insurance cover for the SME market. Operating income grew
by 71% when compared to the same period last year and resulted in the profit from operations
of R2 million for the six months ended 30 September 2016.
Retail Clients
(i) Financial Services
The retail clients segment of the SA Financial Services business incorporates financial
planning consultants (FPC), AF Individual Client Administration (AFICA), AF Preservation
Fund and the AF Life individual life insurance businesses.
Growth in operating income was 7% to R328 million for the six months to 30 September 2016
when compared to the same period in the prior year. Of this income, 56% is asset-based income
and a further 43% relates to consulting and advisory fees also linked to asset values.
The business continues to feel the effects of the tough economic conditions with a decline
in assets being preserved on exit and retirement from approximately 46% to approximately
45%. Positively, the FPC business is capturing a higher share of the exit and retirement
flows from the 33% achieved historically to approximately 35% in the current period.
The business is also experiencing an increase in withdrawals to fund income requirements.
The negative effect of this was slightly muted by positive, although volatile, market returns.
Assets under advisement grew by 2% over the six months to R63.5 billion at 30 September 2016.
Assets under administration grew by 1% to R52.8 billion over the same period. The focus continues
to be on servicing the institutional client base while expanding the business footprint in
discretionary assets.
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 very small base.
The increased distribution channels and product innovation has enabled the business to
increase the number of life policyholder clients by 35%. The business launched an internal
call centre and introduced the non-underwritten product in the current period, which are
proving very successful and has contributed to the increase in the life policyholder book.
Profit from operations for Retail Financial Services as a whole increased by 16% to R125 million
for the period on the back of a 3% growth in operating expenses.
(ii) Investment Solutions
Closing retail assets under management by Investment Solutions increased by 5% to R59.1 billion
for the six months to 30 September 2016. While the majority of the growth in assets under
management is still via primary distribution, being financial planning consultants, newer
distribution channels have shown good growth with assets under management from these channels
growing by 42% over the prior year off a low base.
Operating income increased by 7% to R79 million when compared to the first six months of
the previous financial year. Cost management initiatives have resulted in an increase in
profit from operations of 21% to R40 million for the six months ended 30 September 2016.
(iii) Alexander Forbes Insurance
Alexander Forbes Insurance's growth was hampered by the difficult economic environment and
higher-than-expected claims experience. Gross written premium increased by 11% to
R806 million for the six months to 30 September 2016. The business continues to grow
ahead of competitors based on an enhanced product offering and superior service levels.
A number of specific high-value weather-related claims had a detrimental effect on the
claims for the six months ended 30 September 2016, resulting in a loss ratio of 74% for the
motor and household business which is higher than the target of 72% but lower than the prior-
year loss ratio of 75%.
Operating income increased by 3% to R223 million. Expenses increased by 4%, driven in part by
an ongoing commitment to increase sales capacity and the impact of the weakening rand on
claims procurement.
Profit from operations remained at R59 million when compared to the prior period.
Emerging Markets (previously known as AfriNet) (covering all operations in Africa outside
South Africa)
In line with global operating conditions, the macroeconomic drivers for the Emerging Market
operations (AFEM) remain under pressure. In particular, the impacts of the ratings downgrades
for Namibia, Botswana, Kenya and Nigeria are being felt by the client base across the regions.
Operating income grew by 2% for the period, heavily impacted by the in-sourcing of the Botswana
Public Officers Pension Fund (BPOPF). Cost growth was 8% for the period, impacted primarily by
retrenchment costs in Botswana. AFEM's performance, excluding Botswana, shows operating income
growing at 11% and cost growth at 9%, which is in line with historical operating leverage
parameters. Further corrective measures to remediate the negative operating leverage situation in
Botswana are under way through further reduction in overheads and consolidation of office space as
well as the buildout of the retail business lines to relieve the revenue pressures.
The profit from operations declined by 19% to R26 million for the six months to 30 September 2016
when compared to the prior period.
It is pleasing to note that the Retail business lines are continuing to perform positively with
policies sold in Namibia increasing by 20% compared to the same period last year. Assets under
management have also shown a pleasing increase of 14%. Members under administration have decreased
as a result of factors mentioned.
Nigeria continues to be a very challenging environment with a systemic shortage of foreign
currency hampering business progress and business operations remain small for the time being.
East Africa represents a much easier trading environment than West Africa, however, there are early
signs of economic difficulties as export markets for COMESA-sourced goods remain under pressure.
Despite the pressures in the short term, the long-term demographics as well as the pension reform
agenda pursued by the incumbent governments underpin the continued relevance of these markets to
Alexander Forbes.
International Financial Services
The continuing operations of the International Financial Services business comprise mainly the
consulting actuarial business of Lane Clark & Peacock (LCP) with operations in the United Kingdom,
Ireland and the Netherlands.
Operating income increased by 5% to GBP46 million for the six months ended 30 September 2016 and
profit from operations increased by 3% to GBP6.6 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. 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.
It is expected that the UK's exit from the European Union may result in increased consulting
opportunities in the near future but this is only likely to occur once the impact of Brexit is
more certain. Although the closing exchange rates were heavily impacted, the average for the
period was largely similar.
ITEMS BELOW PROFIT FROM OPERATIONS
Non-trading and capital items
Non-trading and capital items of R62 million (2015: R75 million) include the ongoing accounting
amortisation of intangible assets amounting to R61 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 and is excluded from the normalised
results (refer to the discussion on normalised results).
Investment income
Investment income of R96 million (2015: R79 million) includes R20 million (2015: R34 million)
related to individual policyholder funds in Investment Solutions that are liable for fund-level
taxes and for which an equal tax liability is raised. This income (and related tax expense) should
theoretically be excluded when assessing the group's own investment income which largely relates
to return on assets backing regulatory capital adequacy requirements. Excluding the policyholder
income, the group's investment income amounts to R76 million (2015: R45 million) for the
six months to 30 September 2016.
Finance costs
Finance costs for the six months ended 30 September 2016 remained unchanged at R39 million when
compared to the previous period. The finance costs relate largely to the revolving credit facility
provided to the group.
Accounting for Alexander Forbes shares held in policyholder investment portfolios
In terms of International Financial Reporting Standards (IFRS), any Alexander Forbes 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 Alexander Forbes'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 impact of this
mismatch is that an accounting profit or loss will be reported in Alexander Forbes's consolidated
income statement, whereas no actual economic profit or loss will ever be realised by the group.
The reported profit of R2 million (2015: R44 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
earlier, the group's profit before taxation from continuing operations of R574 million for the
six months ended 30 September 2016 is 2% higher than the same period in the prior year.
The effective tax rate compared to profit before tax appears high as a result of taxation payable
on behalf of policyholders being included in this amount (refer to the investment income
discussion as well as note 8). The tax rate, excluding the policyholder tax, is 24.9%; which is
largely due to the lower UK tax rate and applied only to the group's share of the partnership
earnings from LCP. Profit after tax was R416 million for the six months ended 30 September 2016
compared to R401 million in the comparable period of the previous year.
Discontinued operations
The business results reflected as discontinued operations comprise Alexander Forbes Compensation
Technologies (AFCT). The disposal of AFCT was concluded on 15 July 2016 and the effects of the
disposal are included in the results for the period. The results of discontinued operations are
further detailed in note 9.
NORMALISED RESULTS
The group's normalised results are presented to reflect the basis upon which management manages
the group and reflects the economic substance of the group's performance. The adjustments between
the IFRS condensed consolidated income statement and the normalised results are as follows:
(a) 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 the group's growth rate. The impact is isolated
and removed from normalised results to afford a better comparison and to reflect the true
premises cost over the long term.
(b) Capitalisation of intangible assets and the related amortisation
Non-trading and capital items include the ongoing accounting amortisation of the intangible
assets amounting to R61 million for the six months ended 30 September 2016 and R63 million
in the prior financial year. The capitalisation of intangible assets and the related
amortisation resulted from the required accounting treatment at the time of the private equity
acquisition of the group under common control in 2007. As the holding company that was
established at the time remains in existence (and is now the listed entity), the amortisation
will continue over the expected useful lives established at the time of the transaction.
The accounting for amortisation has no impact on the cash flows of the group and does not
relate to equity employed in operations.
(c) Professional indemnity insurance cell result
The company has a comprehensive insurance programme of which the first layer is self-insured
through a cell-captive insurance arrangement. The structure of the cell captive is such that
it falls within the requirements of IFRS 10 for controlled entities and is therefore
consolidated in our results. The impact of the inclusion of this insurance cell on the group
results is separately isolated in non-trading items. The profit or loss of the cell captive
is excluded from our normalised results.
(d) Accounting for Alexander Forbes shares held in policyholder investment portfolios
As discussed, 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.
(e) Investment income and taxation payable on behalf of policyholders
The group's tax rate compared to profits before tax appears high as a result of taxation
payable on behalf of policyholders being included in this amount (refer to the investment
income discussion as well as note 8). The normalised results exclude the policyholder tax
expense and the related investment income, which directly offset this tax expense.
CONDENSED CONSOLIDATED NORMALISED RESULTS (UNAUDITED)
For the six months ended 30 September 2016
Six months Six months
30 Sept 30 Sept
Rm 2016 % 2015
Continuing operations
Fee and commission income 2 933 2 792
Direct expenses attributable to fee
and commission income (521) (487)
Net income from insurance operations 283 258
Operating income net of direct expenses 2 695 5 2 563
Operating expenses (2 106) (1 996)
Profit from operations before non-trading
and capital items 589 4 567
Non-trading and capital items (7) (4)
Operating profit 582 3 563
Investment income 76 45
Finance costs (39) (39)
Share of profit of associates (net of income tax) 3 2
Profit before taxation 622 9 571
Income tax expense (158) (152)
Profit for the period from continuing operations 464 11 419
Attributable to:
Equity holders 400 13 354
Non-controlling interest holders 64 - 65
464 11 419
Normalised earnings per share (cents) 30.8 13 27.3
Normalised weighted average number of shares in
issue (millions) 1 299 1 299
FINANCIAL POSITION AND DIVIDENDS
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 FSB, the effective date of implementation of
the formal framework for group-wide supervision is now expected to be 1 July 2017, however, current
reporting requirements to the regulator already incorporate the expected formal framework.
As at 30 September 2016 the theoretical consolidated regulatory capital position, using the
measures and interpretations under the Solvency Assessment and Management (SAM) standard, is a
surplus of R507 million (before the proposed dividend distribution). The Investment Solutions'
internal model for risk-based capital adequacy assessment is established and evaluation and
approval will be sought once allowed under SAM in 2017. The surplus estimation does not
include any benefit that may be achieved from Investment Solutions or the group using an approved
internal model for capital determination.
Interim 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 an interim gross cash dividend of 17 cents
(14.45 cents net of dividend withholding tax) per ordinary share for the six months ended
30 September 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, 10 January 2017
Shares commence trading 'ex' dividend Wednesday, 11 January 2017
Record date Friday, 13 January 2017
Payment date Monday, 16 January 2017
Share certificates may not be dematerialised or rematerialised between Wednesday,
11 January 2017 and Friday, 13 January 2017, both days inclusive.
PROSPECTS
Looking ahead, we expect market activity to be influenced by geopolitical and macroeconomic
uncertainty over the next several reporting periods and the outlook to remain challenging.
The group's strategy is to focus on building a globally distinctive pan-African financial services
leader across five core pillars. Our strategic priorities include:
- Focus on the customer with a clear brand strategy and customer value proposition.
- Grow Retail and Emerging Market business lines, leveraging the Institutional platform, plus
open market.
- Address margin compression across Institutional clients business lines.
- Modernisation of host systems, including increasing digital capabilities.
- Execute expense savings programmes.
- Maintain solid capital position and strong cash generation while returning capital to shareholders.
CHANGE IN DIRECTORATE
The board is pleased to welcome Mr AA Darfoor, who was appointed on 1 September 2016 as group chief
executive. Mr DM Viljoen resumed his position as group chief financial officer and the board thanks
Mr Viljoen for fulfilling both these roles during the period under review.
On behalf of the board of directors:
MS Moloko AA Darfoor
Chairman Group chief executive
Johannesburg
25 November 2016
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 30 September 2016
Six months Six months 12 months
30 Sept 30 Sept 31 March
Rm Notes 2016 2015 2016
Continuing operations
Fee and commission income 3 2 933 2 792 5 839
Direct expenses attributable to fee and commission income (521) (487) (1 003)
Net income from insurance operations 4 283 258 540
Operating income net of direct expenses 2 695 2 563 5 376
Operating expenses (2 121) (2 011) (4 166)
Profit from operations before non-trading and capital items 574 552 1 210
Non-trading and capital items 5 (62) (75) (137)
Operating profit 512 477 1 073
Investment income 6 96 79 294
Finance costs 7 (39) (39) (71)
Reported profit arising from accounting for policyholder
investments in treasury shares 13 2 44 59
Share of profit of associates (net of income tax) 3 2 4
Profit before taxation 574 563 1 359
Income tax expense 8 (158) (162) (468)
Profit for the period from continuing operations 416 401 891
Discontinued operations
Profit/(loss) on discontinued operations (net of income tax) 9 - 3 (17)
Profit for the period 416 404 874
Attributable to:
Equity holders 349 337 729
Non-controlling interest holders 67 67 145
416 404 874
Basic earnings per share (cents) 10 27.3 26.3 56.9
Diluted earnings per share (cents) 10 26.9 25.7 56.4
Weighted average number of shares in issue (millions) 10 1 279 1 282 1 282
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 September 2016
Six months Six months 12 months
30 Sept 30 Sept 31 March
Rm 2016 2015 2016
Profit for the period 416 404 874
Foreign currency translation differences of foreign operations (220) 206 198
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 period (net of income tax)
that will be reclassified to profit or loss (220) 206 195
Total comprehensive income for the period 196 610 1 069
Total comprehensive income attributable to:
Equity holders 160 519 903
Non-controlling interest holders 36 91 166
Total comprehensive income for the period 196 610 1 069
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September 2016
30 Sept 30 Sept 31 March
Rm Notes 2016 2015 2016
ASSETS
Financial assets held under multi-manager
investment contracts 13 278 817 258 231 276 258
Financial assets of insurance and cell-captive facilities 234 371 253
Property and equipment 313 343 355
Purchased and developed computer software 154 126 139
Goodwill 3 898 3 995 3 995
Intangible assets 610 734 681
Investment in associates 11 6 8
Deferred tax assets 156 159 157
Financial assets 490 411 489
Insurance receivables 1 067 920 981
Trade and other receivables 962 959 933
Cash and cash equivalents 4 466 4 242 4 877
Assets of disposal groups classified as held for sale - 177 131
Total assets 291 178 270 674 289 257
EQUITY AND LIABILITIES
Equity holders' funds 5 789 5 728 5 901
Non-controlling interest 169 163 255
Total equity 5 958 5 891 6 156
Financial liabilities held under multi-manager
investment contracts 13 278 940 258 355 276 382
Liabilities of insurance and cell-captive facilities 234 371 253
Borrowings 807 622 705
Employee benefits 174 185 166
Deferred tax liabilities 287 269 322
Provisions 324 350 352
Finance lease liability 78 83 80
Operating lease liability 260 255 266
Deferred income 47 49 34
Insurance payables 2 753 2 851 2 878
Trade and other payables 1 316 1 332 1 620
Liabilities of disposal groups classified as held for sale - 61 43
Total liabilities 285 220 264 783 283 101
Total equity and liabilities 291 178 270 674 289 257
Total equity per above 5 958 5 891 6 156
Number of ordinary shares in issue (millions) 1 279 1 282 1 282
Net asset value per ordinary share (cents) 466 460 480
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 September 2016
Six months Six months 12 months
30 Sept 30 Sept 31 March
Rm Note 2016 2015 2016
Cash flows from operating activities
Cash generated from operations 619 513 1 313
Interest received 74 37 84
Interest paid (35) (34) (62)
Taxation paid (242) (227) (500)
Dividends paid (289) (156) (352)
Operating cash flows from continuing operations 127 133 483
Operating cash flows relating to insurance and
policyholder contracts (415) 235 568
Cash flows from policyholder investment contracts 2 482 5 620 5 561
Cash flows from operating activities - discontinued operations 14 18 (9)
Net cash inflow from operating activities 2 208 6 006 6 603
Cash flows from investing activities
Proceeds from sale of subsidiary 9 52 - -
Net cash inflows/(outflows) on financial assets 10 16 (54)
Payments for capital expenditure for the period
(net of proceeds on disposal) (63) (95) (182)
Dividends received from associates - 5 5
Cash flows from investing activities - discontinued operations - - (2)
Net cash outflow from investing activities (1) (74) (233)
Cash flows from financing activities
Borrowings raised 100 - -
Repayment of borrowings - (383) (299)
Payments to non-controlling interests (122) (118) (101)
Net cash outflow from financing activities (22) (501) (400)
Net increase in cash and cash equivalents 2 185 5 431 5 970
Cash and cash equivalents at the beginning of the period 15 748 9 674 9 674
Exchange (loss)/gain on foreign cash and cash equivalents (127) 99 104
Cash and cash equivalents at the end of the year 17 806 15 204 15 748
Analysed as follows:
Cash and cash equivalents of continuing operations 4 466 4 242 4 877
Cash held under multi-manager investment and insurance contracts 13 323 10 917 10 820
Cash held under cell-captive insurance facilities 17 - 38
Cash and cash equivalents of disposal groups held for sale - 45 13
17 806 15 204 15 748
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2016
Total
equity Non-con-
Share Treasury Other Accumu- holders' trolling Total
Rm 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 - - 182 337 519 91 610
Profit for the period - - - 337 337 67 404
Other comprehensive income - - 182 - 182 24 206
Total transactions with owners of the company - - 15 (156) (141) (118) (259)
Dividends paid - - - (156) (156) - (156)
Movement in share-based payment reserve - - 15 - 15 - 15
Other movements in non-controlling interest - - - - - (118) (118)
At 30 September 2015 6 192 (166) 161 (459) 5 728 163 5 891
Total comprehensive income - - (8) 392 384 75 459
Profit for the period - - - 392 392 78 470
Other comprehensive income - - (8) - (8) (3) (11)
Total transactions with owners of the company - (15) 4 (200) (211) 17 (194)
Movement of treasury shares - (15) - - (15) - (15)
Shares issued* - - - - - - -
Dividends paid - - - (196) (196) - (196)
Movement in share-based payment reserve - - 4 - 4 - 4
Other movements in non-controlling interest** - - - (4) (4) 17 13
At 31 March 2016 6 192 (181) 157 (267) 5 901 255 6 156
* During the prior period the company issued 39 million shares to the Employee Share Option Plan for 1 cent per share.
** 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.
Total
equity Non-con-
Share Treasury Other Accumu- holders' trolling Total
Rm capital shares reserves lated loss funds interest equity
At 31 March 2016 6 192 (181) 157 (267) 5 901 255 6 156
Total comprehensive income - - (189) 349 160 36 196
Profit for the period - - - 349 349 67 416
Other comprehensive income - - (189) - (189) (31) (220)
Total transactions with owners of the company - (1) 19 (290) (272) (122) (394)
Movement of treasury shares - (1) - - (1) - (1)
Dividends paid - - - (287) (287) - (287)
Movement in share-based payment reserve - - 20 - 20 - 20
Other movements in non-controlling interest* - - (1) (3) (4) (122) (126)
At 30 September 2016 6 192 (182) (13) (208) 5 789 169 5 958
* 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.
GROUP SEGMENTAL INCOME AND PROFIT ANALYSIS
For the six months ended 30 September 2016
Operating income Profit from operations
net of direct expenses before non-trading and capital items
Rm 2016 % 2015 2016 % 2015
Institutional clients
Financial Services 642 4 619 80 8 74
Investment Solutions 329 329 143 (2) 146
AF Insurance 12 71 7 2 >100 -
983 3 955 225 2 220
Retail clients
Financial Services 328 7 306 125 16 108
Investment Solutions 79 7 74 40 21 33
AF Insurance 223 3 216 59 0 59
630 6 596 224 12 200
Emerging Markets 165 2 161 26 (19) 32
Total Africa 1 778 4 1 712 475 5 452
International Financial Services (GBPm) 46 5 44 6.6 3 6.4
International Financial Services (Rm) 917 8 851 131 3 127
Total before items below 2 695 5 2 563 606 5 579
Accounting for property leases (15) (15)
Accounting for share scheme costs (17) (12)
Total group (Rm) 2 695 5 2 563 574 4 552
The segmental analysis provided above reflects the operating structure under which management
currently reports. Although this structure has previously been communicated to stakeholders in the
financial results in the prior year as well as in the integrated financial report, the above table
reflects a change in presentation from the segmental report presented in the interim results for
the period ended 30 September 2015. Owing to the change in structure and the reallocation of certain
business lines the prior year's numbers have been represented to provide the appropriate comparative numbers.
SUMMARY NOTES
For the six months ended 30 September 2016
1. BASIS OF PREPARATION
The condensed consolidated interim results are prepared in accordance with the requirements of
the JSE Limited (JSE) Listings Requirements, the requirements of International Financial Reporting
Standards (IFRS) and its interpretations as adopted by the International Accounting Standards Board,
the South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued
by the Accounting Practices Committee, financial pronouncements as issued by the Financial Reporting
Standards Council, the presentation requirements of IAS 34 Interim Financial Reporting and the
requirements of the South African Companies Act.
The accounting policies applied in the preparation of the condensed consolidated interim results
are consistent with those accounting policies applied in the preparation of the previous
consolidated annual financial statements.
These interim results have not been audited or independently reviewed by the group's external
auditors. The group's 2016 annual financial information has been correctly extracted from the
underlying audited consolidated annual financial statements.
These condensed consolidated interim results 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.
Six months Six months 12 months
30 Sept 30 Sept 31 March
2016 2015 2016
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 19.8 19.5 20.8
Closing R:GBP rate 17.9 21.1 21.2
Six months Six months 12 months
30 Sept 30 Sept 31 March
Rm 2016 2015 2016
3. FEE AND COMMISSION INCOME
Brokerage fees and commission income 26 20 43
Fee income from consulting and administration services 1 991 1 899 4 042
Revenue from investment management activities 897 854 1 713
Other income 19 19 41
Fee and commission income 2 933 2 792 5 839
4. NET INCOME FROM INSURANCE OPERATIONS
Insurance premiums earned 1 139 1 021 2 123
Less: amounts ceded to reinsurers (682) (600) (1 258)
Investment income from insurance operations 20 9 32
Less: insurance claims and withdrawals (785) (718) (1 507)
Plus: insurance claims and benefits covered
through reinsurance contracts 591 546 1 150
Net income from insurance operations 283 258 540
5. NON-TRADING AND CAPITAL ITEMS
Non-trading:
Professional indemnity insurance cell-captive result 6 (8) (9)
Amortisation of intangible assets arising from
business combination (61) (63) (124)
Costs relating to establishment of BEE share scheme - (4) -
Other non-trading items (7) - (4)
Total non-trading and capital items (62) (75) (137)
6. INVESTMENT INCOME
General operations
Interest income 61 50 77
Investment and dividend income 8 2 23
Foreign exchange gains/(losses) on intergroup loans 7 (7) (3)
76 45 97
Multi-manager operations
Investment income linked to policyholder tax expense 20 34 197
Total investment income 96 79 294
7. FINANCE COSTS
Finance costs derived from financial liabilities classified
and carried at amortised costs:
Interest on borrowings (32) (33) (57)
Other interest costs (7) (6) (14)
Total finance costs (39) (39) (71)
8. INCOME TAX EXPENSE
South African income tax
Current tax (129) (130) (248)
Current period (134) (128) (248)
Prior period 5 (2) -
Deferred tax 16 26 39
Current period 17 25 32
Prior period (1) 1 7
Foreign income tax
Current tax (21) (21) (52)
Current period (21) (21) (54)
Prior period - - 2
Deferred tax - - (4)
Current period - - (4)
Foreign withholding tax (4) (3) (6)
Tax attributable to policyholders (20) (34) (197)
Current tax - current period (36) (69) (176)
Deferred tax - current period 16 35 (21)
Total tax expense (158) (162) (468)
9. DISCONTINUED OPERATIONS
The group committed to a plan to sell the Alexander Forbes Compensation Technologies (AFCT)
business to BEE private investors and management early in 2015 following a strategic decision
to place greater focus on the group's core businesses, being retirement benefits and multi-
manager investments. In June 2016, the group finalised the sale of this business. The AFCT
business was previously classified as a discontinued operation.
Six months
30 Sept
Rm 2016
Net assets disposed plus any related impairments (71)
Proceeds on disposal 75
Profit on disposal 4
Consideration received in cash 75
Cash and cash equivalents disposed of (23)
Net cash inflow 52
Six months Six months 12 months
30 Sept 30 Sept 31 March
Rm 2016 2015 2016
Condensed income statement from discontinued operations
Income from operations 9 66 118
Operating expenses (13) (64) (113)
Operating (loss)/profit before non-trading and capital items (4) 2 5
Non-trading and capital items - - (20)
(Loss)/profit before tax (4) 2 (15)
Taxation - (2) (3)
Net loss for the period (4) - (18)
Profit on disposals 4 3 1
Profit/(loss) from discontinued operations - 3 (17)
10. EARNINGS PER SHARE
10.1 Basic earnings per ordinary share
Basic earnings per share is calculated by dividing the profit for the period
attributable to equity holders by the weighted average number of ordinary shares
in issue during the period.
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 period. 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.
Six months Six months 12 months
30 Sept 30 Sept 31 March
Millions 2016 2015 2016
10.4 Number of shares
Weighted average number of shares 1 341 1 326 1 334
Weighted average shares held by policyholders
classified as treasury shares (20) (17) (17)
Weighted average treasury shares (42) (27) (35)
Weighted average number of shares 1 279 1 282 1 282
Dilutive shares (conditional and forfeitable share plan) 16 30 10
1 295 1 312 1 292
Actual number of shares before treasury shares 1 341 1 341 1 341
Actual treasury shares (61) (59) (61)
Actual number of shares after treasury shares 1 280 1 282 1 280
Six months Six months 12 months
30 Sept 30 Sept 31 March
Rm 2016 2015 2016
10.5 Calculation of headline earnings and diluted
headline earnings
Profit attributable to equity holders (IAS 33 earnings) 349 337 729
Adjusting items
(Profit)/loss on sale of subsidiary (4) (3) 2
Impairment losses and other capital items - - 13
Headline earnings for the year 345 334 744
Basic earnings per share (cents) 27.3 26.3 56.9
Headline earnings per share (cents) 27.0 26.0 58.1
10.6 Dilutive earnings per share
Diluted basic earnings per share (cents) 26.9 25.7 56.4
Diluted headline earnings per share (cents) 26.7 25.5 57.6
The group has a long-term incentive share scheme that may result in dilution of both
earnings per share and headline earnings per share at the future vesting dates.
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 over the
vesting period to the reporting date in relation to the performance criteria.
Six months Six months 12 months
30 Sept 30 Sept 31 March
Rm 2016 2015 2016
11. CAPITAL EXPENDITURE FOR THE PERIOD 63 95 183
Capital expenditure and commitments will be funded
from internal cash resources.
12. OPERATING LEASE COMMITMENTS
Due within one year 170 234 235
Thereafter 1 948 2 199 2 230
Total operating lease commitments 2 118 2 433 2 465
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 listing in July 2014, 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 adjustments of the liability continue to be recognised in the income statement.
The resultant profit for the period of R2 million has been disclosed separately on the face
of the statement of comprehensive income. This treatment also impacts on 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:
Six months Six months 12 months
30 Sept 30 Sept 31 March
Rm 2016 2015 2016
Total assets held under multi-manager investment
contracts (per statement of financial position) 278 817 258 231 276 258
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 158 142 157
Financial effects of accounting for policyholder investments
as treasury shares - prior periods (33) 26 26
Financial effects of accounting for policyholder investments
as treasury shares - current period (2) (44) (59)
Total financial liabilities held for policyholders under
multi-manager investment contracts 278 940 258 355 276 382
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 2016 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
31 March 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 facilities 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 facilities - 253 - 253
Total financial liabilities measured at fair value - 276 635 - 276 635
30 September 2016
Financial assets measured at fair value
Financial assets held under multi-manager investment contracts 196 023 80 558 2 236 278 817
Financial assets of insurance and cell-captive facilities 149 85 - 234
General operations - 392 - 392
Total financial assets measured at fair value 196 172 81 035 2 236 279 443
Financial liabilities measured at fair value
Financial liabilities held under multi-manager investment contracts - 278 940 - 278 940
Financial liabilities of insurance and cell-captive facilities - 234 - 234
Total financial liabilities measured at fair value - 279 174 - 279 174
Transfers between Levels 1 and 2
Movements in financial assets associated with multi-manager investment contracts and
cell-captive insurance facilities 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 period 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 period.
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 discount 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 have been no changes in the valuation methods and assumptions for valuation techniques
since 31 March 2016. 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
15. CRITICAL ASSUMPTIONS AND JUDGEMENTS
During the year ended 31 March 2016, we reported a specific matter which was and is still being
reviewed by a foreign regulator in respect of a legacy subsidiary business that was sold in
prior years. We further reported that whilst this review was ongoing it was too early to
determine (i) if there was any liability that may arise and (ii) in the event a liability does
arise, if it would impact on the group.
At the date of issuing this interim report, there had been no changes to the circumstances
reported in the annual financial statements for the year ended 31 March 2016.
The condensed consolidated interim results are prepared in accordance with the requirements of the
JSE Limited (JSE) Listings Requirements, the requirements of International Financial Reporting
Standards (IFRS) and its interpretations as adopted by the International Accounting Standards Board,
the South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued
by the Accounting Practices Committee, financial pronouncements as issued by the Financial Reporting
Standards Council, the presentation requirements of IAS 34 Interim Financial Reporting and the
requirements of the South African Companies Act.
The accounting policies applied in the preparation of the condensed consolidated interim results are
consistent with those accounting policies applied in the preparation of the previous consolidated
annual financial statements.
These interim results have not been audited or independently reviewed by the group�s external
auditors. The group�s 2016 annual financial information has been correctly extracted from the
underlying audited consolidated annual financial statements.
These condensed consolidated interim results 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.
Investors are referred to http://www.alexanderforbes.co.za where the analyst presentation related to these
interim results and the Annual Financial Statements for the year ended 31 March 2016 can be found.
CORPORATE INFORMATION
Independent directors
MD Collier, D Konar, RM Kgosana, HP Meyer, BJ Memela
Non-executive directors
MS Moloko (chairman), DJ Anderson, WS O'Regan
Executive directors
AA Darfoor (group chief executive officer)
DM Viljoen (group chief financial officer)
Company secretary
JE Salvado
Investor relations
BP Bydawell
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 of Fredman Drive and Rivonia Road, Sandton, 2196
Website
http://www.alexanderforbes.co.za
Date of issue: 28 November 2016
Date: 28/11/2016 08:06:00 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
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