OLD MUTUAL PLC - OMAM Reports Financial and Operating Results for the First Quarter Ended 31 March 2017

OMAM Reports Financial and Operating Results for the First Quarter Ended 31 March 2017



       OLD MUTUAL PLC
       ISIN CODE: GB00B77J0862
       JSE SHARE CODE: OML
       NSX SHARE CODE: OLM
       ISSUER CODE: OLOMOL
       Old Mutual

       Ref 95/17
       4 May 2017

       OMAM REPORTS FINANCIAL AND OPERATING RESULTS FOR THE FIRST QUARTER ENDED
       31 MARCH 2017
       OM Asset Management plc (OMAM), the majority-owned subsidiary of Old Mutual plc, today reports its
       results for the first quarter ended 31 March 2017.
       The following is an extract from the OMAM announcement and the full announcement is available via the
       OMAM website – http://ir.omam.com/investor-relations/news/

       “OMAM Reports Financial and Operating Results for the First Quarter Ended March 31, 2017

           *   U.S. GAAP EPS of $0.19 per share, down (26.9)% from the comparative quarter in 2016
           *   U.S. GAAP earnings of $21.4 million, down (30.5)% from the comparative quarter in 2016
           *   Economic net income EPS of $0.34 per share, an increase of 25.9% from the comparative
               quarter in 2016
           *   ENI of $38.9 million, an increase of 21.6% from the comparative quarter in 2016
           *   AUM of $249.7 billion at March 31, 2017, an increase of 3.9% from December 31, 2016 and
               14.5% from March 31, 2016
           *   Net client cash flows (“NCCF”) for the quarter of $(2.5) billion yielding an annualized revenue
               impact of $0.8 million
           *   Increase in quarterly dividend to $0.09 per share (up 12.5%)

       “OMAM delivered strong operating performance and financial results during the first quarter,” said Peter
       L. Bain, OMAM’s President and Chief Executive Officer. “Assets under management grew 4% from year-
       end, driven by solid investment performance in a rising market environment, particularly in areas such as
       emerging markets, ACWI ex-US and domestic equities. We also produced positive revenue flows of $0.8
       million resulting from continued demand for higher fee non-US, emerging markets and alternative
       products, notwithstanding overall AUM outflows of $(2.5) billion. Our ENI operating margin improved by
       269 bps to 36% compared to Q1’16, as ENI revenue growth of 30% outpaced ENI operating expense
       growth of 18%, including the impact of Landmark. ENI per share of $0.34 was up 26% year-over-year,
       reflecting our operational strength, contributions from the Landmark acquisition, and the benefits of our
       share repurchase in Q4’16. We are pleased with Landmark’s contribution to both flows and profit.

       “Our results reflect the consistent execution of our growth strategy and the increasing benefits generated
       by its components. Many of the higher-fee, in-demand investment strategies generating inflows were the
       result of collaborative organic growth initiatives between OMAM and our Affiliates, and certain of these
       products are now generating interest in markets around the world. The Global Distribution pipeline is
       strong, with search activity across a range of Affiliate products. We also continue to cultivate relationships
       with entrepreneurial boutique asset management firms seeking a partnership that enables them to
       enhance and accelerate their long-term growth and stability.”

       Mr. Bain concluded, “In addition, Old Mutual plc took a significant step in its managed separation process
       during the first quarter by entering into an agreement to sell 24.95% of OMAM’s shares to HNA Capital
       US.””

       Ends


       OMAM will hold a conference call and simultaneous webcast to discuss the results at 10am EST / 3pm
       BST / 4pm SAT on 4 May 2017. OMAM has also released an earnings presentation that will be discussed
       during the conference call. Please go to http://ir.omam.com to download the presentation. To listen to the
       call or view the webcast, participants should:

       Dial-in:
       US Toll Free Dial-in Number: +1 877 201-0168
       International Dial-in Number: +1 647 788-4901
       Conference ID: 84182431


       Link to Webcast:
       http://event.on24.com/r.htm?e=1383386&s=1&k=28559B201C8A7773FCC280D63518E706

       Dial-in Replay:
       A replay of the call will be available beginning approximately one hour after its conclusion either on
       OMAM’s website, at http://ir.omam.com or at:

       US Toll Free Dial-in Number: +1 855 859-2056
       International Dial-in Number: +1 404 537-3406
       Conference ID: 84182431



       Enquiries
       External communications
       Patrick Bowes                             +44 20 7002 7440
       Investor relations
       Dominic Lagan                             +44 20 7002 7190
       Deward Serfontein                         +27 82 810 5672

       Media
       William Baldwin-Charles                   +44 20 7002 7133
                                                 +44 7834 524833





       Notes to Editors

       Old Mutual
       Old Mutual provides investment, savings, insurance and banking services to 19.4 million customers in Africa, the
       Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and
       Johannesburg Stock Exchanges, among others, since 1999.
       Old Mutual is executing its strategy of managed separation, which will entail separating its four businesses into
       standalone entities. The four businesses are:
       Old Mutual Emerging Markets: an attractive business with a dominant position in South Africa, well-placed to
       capitalise on sub-Saharan African growth as a diversified financial services provider with strong operations in key
       East and West African markets.
       Nedbank: one of South Africa’s four largest banks with very strong corporate, commercial and property finance
       franchises, and a growth opportunity in the retail market, as well as pan-African optionality through its stake in
       Ecobank Transnational Inc (ETI).

       Old Mutual Wealth: a leading, integrated wealth management business, focused on the UK upper and middle
       market, with strong prospects in a rapidly growing £3 trillion market.
       OM Asset Management: an institutionally focussed, multi-boutique asset management business, delivering strong,
       diversified growth in attractive asset classes through organic initiatives and acquisitions.

       For the year ended 31 December 2016, Old Mutual reported an adjusted operating profit before tax of £1.7 billion
       and had £395 billion of funds under management. For further information on Old Mutual plc and the underlying
       businesses, please visit the corporate website at www.oldmutualplc.com


       Sponsor:
       Merrill Lynch South Africa (Pty) Ltd

       Joint Sponsor:
       Nedbank Corporate and Investment Banking






Date: 04/05/2017 02:32:00 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.