Wrap Text
Results announcement for the year ended 31 March 2017, final and special cash dividends 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 2017,
FINAL AND SPECIAL CASH DIVIDENDS DECLARATION
FINANCIAL HIGHLIGHTS
Rm % change 2017 2016* 2015*
Operating income** (from continuing
operations) 1.2 3 435 3 395 3 276
Profit from operations (before
non-trading items) 3.1 933 905 892
Trading margin 0.5 27.2% 26.7% 27.2%
Operating leverage 1.5 0.7% (0.8%) (0.5%)
Cash generated (from continuing
operations) 3.3 1 091 1 056 773
Net profit for the year 80.1 1 574 874 359
Headline earnings per share (cents) (8.1) 53.4 58.1 31.9
Final dividend (cents) 4.5 23 22 12
Special dividend (cents) - 23 - -
Average AuA and AuM (Rbn) 1.8 345 339 322
* Restated for discontinued operations - refer to note 9.
** Operating income represents revenue net of direct expenses.
OVERVIEW OF FINANCIAL RESULTS
The group's profit from operations before non-trading and capital items has grown by 3%
to R933 million. The profit for the year ended 31 March 2017 of R1 574 million includes
an extraordinary profit on the sale of our partnership investment in Lane Clark & Peacock
(LCP). Excluding this and other headline adjustments, the group recorded a reduction in
headline earnings of 8% to R683 million for the year ended 31 March 2017. The decrease in
headline earnings is as a result of the reduction in earnings from the discontinued operations
where LCP was included for only eight months of the financial year. Our results include various
IFRS accounting treatments which are anomalous and should be adjusted when analysing the group's
results. Further analysis of the group's results is presented in the analyst presentation as
well as the annexures which may be found on our website. The weighted average number of shares
in issue decreased marginally as a result of an increase in policyholder shares treated as
treasury shares. Headline earnings per share decreased by 8% to 53.4 cents per share for
the year ended 31 March 2017.
OPERATING ENVIRONMENT
The operating environment remained challenging for the financial services sector, with
Brexit, the US election and President Trump's economic policies having a negative
impact on the South African economy. More critically, South Africa remained in a state
of transition with continued uncertainty around the country's macroeconomic outlook.
The financial services industry and the group's business model is acutely sensitive to
these macroeconomic factors, and the political and economic turmoil contributed to a
very tough operating and trading environment.
This difficult operating context has been reflected in our 2017 results, which were
resilient given the context.
Looking ahead, we expect market activity to be influenced by geopolitical and macroeconomic
uncertainty over the next several reporting periods with a continued challenging outlook.
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 R3 435 million for
the year ended 31 March 2017, up 1% when compared to the previous financial year.
CONSOLIDATED PROFIT FROM OPERATIONS
Operating profit from continuing operations, before non-trading and capital items, increased
by 3% to R933 million when compared to the previous financial year. The divisional performance
review is reflected below.
Operating expenses of R2 502 million were 0.5% higher than the previous year. Given the
inflationary environment and contractual escalations inherent in certain costs, the cost
containment is considered commendable.
The overall group trading margin on net revenue is 27.2% compared to 26.7% for the previous
financial year. The increase in trading margin further emphasises the group's efforts to enhance
operational efficiencies and reduce costs.
DIVISIONAL REVIEW OF OPERATIONS
A brief summary of divisional trading results for the year ended 31 March 2017 is provided below.
Institutional clients
The institutional clients division delivered R1 920 million of operating income, which is 1%
higher than the prior year. Business units within this division include:
- consulting - which includes actuarial consulting, healthcare actuarial and consulting,
and fund administration and consulting to standalone retirement funds;
- retirements - which includes fund administration and consulting to umbrella retirement
funds and beneficiary funds;
- investments - investment services, including a range of investment portfolios, advice-led
solutions and alternative investments; and
- group risk - group risk and disability insurance through Alexander Forbes Life.
Expenses were prudently managed at a 1% growth year on year, a very pleasing outcome in the
current economic environment and a direct result of strong management focus on cost and
operational efficiencies. As a result profit from operations increased by 1% to R465 million
for the year ended 31 March 2017.
(i) Consulting
New business opportunities were impacted across this business unit 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 as the outlook improves. In line with this,
we launched AFRIS (Alexander Forbes Retirement Income Solutions in April 2017), which is our
institutional living annuity solution available to standalone retirement fund clients.
The operating income from the consulting and administration business to standalone
retirement funds contracted by 3% when compared to the previous financial year. This was
impacted by a 7% decrease in the number of active member records mainly as a result of
the loss of a large standalone retirement fund client who has chosen to insource its
administration. The cost base in administration was reduced accordingly for this lost
client. The operating income from the healthcare consulting business increased by 1% when
compared to the previous financial year. Healthcare broking income increased 10% year on
year as a result of an increase in the regulated cap for commission income for broking
services and new business wins. Health management solutions income reduced year on year
on the back of the loss of a public sector client, with the cost base being reduced
accordingly.
(ii) Retirements
The Alexander Forbes Retirement Fund (AFRF) continues to be a market leader in the umbrella
fund industry, providing relevant and cost-effective solutions to the South African market
and the Alexander Forbes Coreplan umbrella fund continues to be innovative and provides
low-cost simple solutions with a strong growth trajectory. In October 2016 we launched a
number of new innovative offerings to our umbrella funds, including an in-fund preservation
and in-fund living annuity solution. In February 2017 we launched a group retirement annuity
solution, further demonstrating our commitment to providing members with cost-effective
solutions to preserve their retirement fund savings.
The umbrella fund operating profit increased by 7% from the previous financial year. This
is supported by the increase in the number of active member records for our umbrella
retirement funds which increased by 4% from the previous year and the increase in the
number of umbrella fund clients (participating employers) by 5% from the previous year.
Closing assets under management (AuM) for the umbrella funds increased by 5% year on year
to R68.4 billion at 31 March 2017. This was higher than the market growth in AuM of 3.6%
in the year thanks to new business wins and portfolio performance.
Included in the retirements division is beneficiary fund consulting and administration,
the latter being a service offering we launched in June 2016. The operating income for
the combination of umbrella fund and beneficiary fund consulting and administration services
increased by 12% from the previous financial year. Strict cost management and operational
efficiencies resulted in a 27% increase in profit from operations when compared to the
previous year.
(iii) Investments (previously Investment Solutions)
The operating income for the Investments segment was marginally down at 0.2% for the
year ended 31 March 2017. The low return environment persisted with all major asset
class returns being below inflation. Net negative ongoing cash flows were also experienced,
which is prevalent in the retirement fund industry. Although the segment delivered strong
new business flows of R9.9 billion for the year ended 31 March 2017, these flows were offset
by net ongoing client cash outflows of R14.1 billion (the difference between ongoing
contributions and benefit payments) and client losses of R3.1 billion for the same period.
Closing institutional assets under management (including assets under administration)
slightly decreased by 1.2% to R284.8 billion at 31 March 2017, of which R235.8 billion
are institutional assets under investment management.
A summary of the institutional investments cash flows is reflected below:
Rbn 2017 % 2016
Inflows 37.8 10 34.4
New business 9.9 13.0
Ongoing contributions 27.9 21.4
Outflows (45.1) 16 (38.9)
Outflows owing to client losses (3.1) (4.0)
Withdrawals for benefit payments (42.0) (34.9)
Net cash flows (7.3) 62 (4.5)
Operating expenses were flat year on year, resulting in profit from operations increasing
by 0.6% to R276 million for the year ended 31 March 2017.
Representing R700 billion in retirement assets, the Investment division continues to focus
on providing a wide array of investment services ranging from investment portfolios
to advice-led solutions and alternative opportunities. The investment philosophy revolves
around outcome-based investing with a clear mission to help clients secure their financial
well-being while managing the risk of uncertain and challenging economic environments.
(iv) Group risk
AF Life group risk grew annualised premium income by 11% to R439 million at 31 March 2017.
Despite the pleasing increase in new business, claims experience was negatively impacted
by the continued trend in disability claims with disabilities having a longer
rehabilitation period owing to 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 increased reserving.
Retail clients
The retail clients division delivered R1 274 million of operating income, which is 5% higher than
the previous year. Business units within this division include:
- wealth and investments - the wealth and investments segment of the retail clients business is
focused on generating revenue through the offering of financial advice and the administration
and management of investments. This segment incorporates financial planning consultants (FPCs),
AF Individual Client Administration (AFICA), AF Preservation Fund and the retail assets under
management in Investments; and
- insurance - the retail insurance businesses comprise AF Insurance, which provides short-term
insurance solutions to individuals, and the AF Life individual insurance business.
(i) Wealth and investments
Growth in operating income increased 5% to R797 million for the year ended 31 March 2017.
The operating income split was 64% from asset-based income and 36% from consulting and
advisory fees also linked to asset values.
Over the period assets being preserved on exit and retirement declined marginally from 46%
to 45%. The FPC business saw improved traction with an improved capture rate of exit and
retirement flows from 33% to 35%.
Assets under advisement grew by 4% to R64.7 billion at 31 March 2017. Assets under
administration grew by 2.9% to R59.8 billion. Assets under management grew by 7% to
R51.6 billion. The flows from FPC to AF products remained constant at 89%. The business's
focus continues to be on servicing the institutional client base while expanding the
business's footprint in discretionary assets and expanding the distribution channels to
include independent financial advisers.
Profit from operations increased by 15% to R378 million on the back of a 2% reduction
in operating expenses.
(ii) Retail insurance businesses
Gross written premium in the Alexander Forbes short-term insurance business increased by
8% to R1.5 billion for the year ended 31 March 2017, with the business continuing to grow
based on enhanced product offerings and good service levels. The loss ratio for the
AF Insurance business ended on 71.5% for the year, ahead of the target of 72%. This represents
a significant improvement on the 76.3% reported in the prior year.
To address adverse claims experience in the prior year and the first half of the current
year, decisive management action was taken to reduce the loss ratio.
The AF Life individual insurance business accounts for 1% of the retail clients' business
operating income. Over the period the business increased its focus on distribution channels
and product innovation, which led to an increase in new life policy sales by 33%.
The business launched an internal call centre and introduced a non-underwritten product,
which is proving very successful and has contributed to the increase in the life
policyholder book. The business remains subscale and as a result incurred an operating
loss for the year, reducing the overall operating profit for the retail insurance business.
The combined retail insurance businesses produced operating income net of direct expenses
of R477 million, an increase of 4% over the prior year. Expenses rose by 6% over the
prior year, resulting in profit from operations decreasing by 4% to R88 million.
Emerging Markets (previously known as AfriNet and covering all operations in Africa
outside (south Africa)
Alexander Forbes Emerging Markets (AFEM) currently operates in five countries across
Africa - Namibia, Botswana, Zambia, Uganda and Nigeria. Economic growth in all these
markets remains subdued and is well below the longer-term potential.
AFEM's total profit from ongoing operations declined by 51% to R32 million for the year
ended 31 March 2017.
Operations in Kenya have been classified as discontinued.
With the Government of Botswana insourcing its Botswana Public Officers Pension Fund
(BPOPF) in 2016, AFEM lost one of its largest clients and operating income consequently
declined by 11% for the year. Downsizing and redundancy costs in Botswana mainly
contributed to the overall cost growth of 2%. Members under administration naturally
decreased as a result of client loss in Botswana. Excluding the BPOPF impact, operating
income grew at 2%. Further measures to improve the operating leverage in Botswana included
reducing overheads alongside a buildout of retail consumer lines to enhance the revenue.
The impact of these initiatives will be felt in the next financial year.
In line with the stated target to grow the share of retail business lines in AFEM,
Namibia increased retail revenue by 10% year on year. The development of assets under
management remained resilient, increasing by 2%.
Conditions in Nigeria continued to be challenging, with a systemic shortage of foreign
currency hampering business progress alongside a steady devaluation of the local currency
against the rand depressing the consolidated result in our home currency. Our business
operations in Nigeria remain small for the time being.
AFEM has defined a multi-hub continental growth strategy with operating structures in
Namibia and Botswana. This operating structure will enable sound organic and inorganic
growth in the coming financial years. The pension reform agenda pursued by many governments
across the African continent in view of the general demographic development and the
continued urbanisation underpin the increasing relevance of our existing and future
markets to Alexander Forbes in our endeavour to become a globally distinctive
pan-African financial services leader.
Operations and technology
On 7 April 2017 the group announced a significant contractual agreement with a leading
technology provider, Sapiens. Under this agreement Sapiens will provide a wide range of
offerings - including key components of the Sapiens Digital Suite - to power Alexander Forbes's
client proposition and enhance its digital capability through a modern technology platform with
an improved customer experience. The financial commitment relating to this contract amounts to
$51 million over the next four financial years. The costs of development will be capitalised and
depreciated over the expected useful life of the system. More significantly, the single host
system will allow for rationalisation of our current disparate systems and is expected to
deliver a net reduction in costs over the next five years.
The group has entered into a foreign currency hedge contract which substantially reduces the
foreign currency risk associated with the US dollar-based commitments. The average rate achieved
over the hedge period was R13.88 to the US dollar.
ITEMS BELOW PROFIT FROM OPERATIONS
Non-trading and capital items
Non-trading and capital items of R137 million (2016: R140 million) include the ongoing accounting
amortisation of intangible assets amounting to R117 million (2016: R124 million), once-off costs
incurred in defining the group's strategy 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.
Investment income
Investment income of R156 million (2016: R93 million income) is generated from the corporate cash
balances managed through the group's treasury department. The significant cash balances recorded at
31 March 2017 arise from the sale of our international consulting practice, LCP, and through the
subscription of shares by African Rainbow Capital.
Investment income related to policyholder investments includes R22 million (2016: R70 million)
related to individual policyholder funds in Investments 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.
Finance costs
Finance costs for the year ended 31 March 2017 increased to R89 million (2016: R69 million).
The increase is largely due to a drawdown on the revolving credit facility and increases in the
JIBAR interest rate during the year. In addition to the revolving credit facility, other finance
costs include interest accrued on various liabilities.
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 results in an accounting profit or loss that is reported in
Alexander Forbes's consolidated income statement, whereas no actual economic profit or loss will
ever be realised by the group. The reported loss of R2 million (2016: R59 million profit) arising
from the accounting for policyholder investments as treasury shares for the year 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 R887 million for the year
ended 31 March 2017 is 4% lower than the previous financial year.
The tax rate excluding the policyholder tax is 28.2%, resulting in profit after tax of
R621 million for the year ended 31 March 2017.
Discontinued operations
The business results reflected as discontinued operations comprise Lane Clark & Peacock LLP
together with its subsidiaries in Ireland and the Netherlands (LCP), Alexander Forbes Kenyan
operations and Alexander Forbes Insurance Consulting Practice. The disposal of LCP was concluded
on 19 December 2016 and the effects of the disposal are included in the results for the year
under review. The results of discontinued operations are further detailed in note 9.
FINANCIAL POSITION AND DIVIDENDS
Financial position and capital requirements
In December 2016 the group disposed of its investment in LCP. The sale proceeds amounted to
GBP75.4 million, of which GBP69 million was received and repatriated to South Africa
during the year under review and the balance is to be received in the next financial year.
In addition, the group entered into an agreement with African Rainbow Capital (ARC) in terms of
which ARC subscribed for 10% of the equity in the African operations for R753 million. These
two transactions have resulted in the group having significant cash on hand as at the year-end.
The board has considered and approved a capital allocation strategy with regard to this cash
available which includes the following:
- a special dividend to shareholders of 23 cents in addition to the final declared dividend.
Further information on this dividend is reflected below;
- a general share buy-back as approved by the shareholders on 27 March 2017 which will be
implemented as soon as possible and within the JSE's trading rules;
- an acquisition programme, targeting small bolt-on value-enhancing businesses in South Africa
and Africa; and
- investment in modernising technology to position the company for improved efficiency and
client service.
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. The current reporting requirements to the regulator already incorporate the
expected formal framework.
As at 31 March 2017 the theoretical consolidated regulatory capital position, using the measures
and interpretations under the Solvency Assessment and Management (SAM) standard, is a surplus
of R2.3 billion (before the proposed dividend distribution). The surplus estimation above does
not include any benefit that may be achieved from Investments or the group using an approved
internal model for capital determination.
Final dividend
A dividend declaration has been considered, taking into account:
- the group's current and projected regulatory position;
- the available cash in the group and highly cash-generative nature of the group; and
- the investment into modernising technology.
Notice is hereby given that the directors have declared a final gross cash dividend of 23 cents
(18.4 cents net of dividend withholding tax) per ordinary share for the year ended
31 March 2017. In addition, the directors have declared a special dividend of 23 cents
(18.4 cents net of dividend withholding tax) per ordinary share for the year ended 31 March 2017.
Both dividends above have been declared from income reserves. A dividend withholding tax of 20%
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, 4 July 2017
Shares commence trading 'ex' dividend Wednesday, 5 July 2017
Record date Friday, 7 July 2017
Payment date Monday, 10 July 2017
Share certificates may not be replaced with electronic ones or be converted to paper ones between
Wednesday, 5 July 2017 and Friday, 7 July 2017, both days inclusive.
PROSPECTS
The group's strategy, Ambition 2022, is focused on helping customers achieve a lifetime of
financial well-being and security. This is delivered through a five-pillar strategy supporting
the group's ambition of becoming a globally distinctive pan-African financial services leader.
Under Ambition 2022 the group has focused on accelerating its strategy to be a trusted partner
for financial solutions for every stage, successfully shifting towards operating as a leaner,
more focused group, that is no longer 'siloed' into different businesses, with a clear value
proposition.
In summary, Ambition 2022 will focus on the following:
- leveraging the group's market-leading institutional business to drive retail and emerging
market growth;
- driving the delivery of positive operating leverage with a focus on maintaining cost per
member per month by at least 2% below inflation; and
- building a strong ecosystem to drive growth, a strong leadership team and effective strategic
partnerships with Mercer and African Rainbow Capital.
The group also completed two significant transactions: selling its 60% interest in the UK-based
consulting business, Lane Clark & Peacock, for R1.3 billion and African Rainbow Capital acquiring
a 10% shareholding in Alexander Forbes Limited (a wholly-owned subsidiary of the group) as a
strategic empowerment partner. Together these transactions provide capital for investments and
acquisitions.
The group is emerging as a leaner, customer-focused business that is well positioned to create
substantial value for shareholders in its next growth phase as a leading financial services group
in South Africa and other select emerging markets with a diversified portfolio and profitable
business serving end consumers.
CHANGE IN DIRECTORATE
Mr AA Darfoor was appointed on 1 September 2016 as group chief executive. Mr DM Viljoen,
who fulfilled the role of interim group chief executive prior to Mr Darfoor and group chief
financial officer, resigned and stepped down from the board on 30 April 2017. Mr BP Bydawell
has been appointed as acting group chief financial officer. The board extends its heartfelt
thanks to Mr Viljoen for his dedication and service to the group over the past 14 years.
On behalf of the board of directors
MS Moloko AA Darfoor
Chairman Group chief executive
Johannesburg
9 June 2017
SUMMARY CONSOLIDATED INCOME STATEMENT
For the year ended 31 March 2017
Rm Notes 2017 2016*
Continuing operations
Fee and commission income 3 3 933 3 875
Direct expenses attributable to fee and commission income (1 062) (1 020)
Net income from insurance operations 4 564 540
Operating income net of direct expenses 3 435 3 395
Operating expenses (2 502) (2 490)
Profit from operations before non-trading and capital items 933 905
Non-trading and capital items 5 (137) (140)
Operating profit 796 765
Investment income** 6 178 163
Finance costs 7 (89) (69)
Reported (loss)/profit arising from accounting for
policyholder investments in treasury shares 13 (2) 59
Share of profit of associates (net of income tax) 4 4
Profit before taxation 887 922
Income tax expense 8 (266) (301)
Income tax expense relating to corporate profits (244) (231)
Income tax expense on policyholder investment returns (22) (70)
Profit for the year from continuing operations 621 621
Discontinued operations
Profit on discontinued operations (net of income tax) 9 953 253
Profit for the year 1 574 874
Attributable to:
Equity holders 1 465 729
Non-controlling interest 109 145
1 574 874
Basic earnings per share (cents) 10 114.5 56.9
Diluted earnings per share (cents) 10 113.8 56.4
Weighted average number of shares in issue (millions) 10 1 280 1 282
* Restated.
** Investment income includes investment income recognised as a result of policyholder
tax requirements of R22 million (2016: R70 million).
SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2017
Rm 2017 2016
Profit for the year 1 574 874
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation differences of foreign operations (329) 198
Foreign currency translation reserve of disposed foreign
operations reclassified to profit or loss (209) 2
Release of available-for-sale reserves - (5)
(538) 195
Items that will not be reclassified to profit or loss
Remeasurement of post-employment benefit obligations 13 -
Total comprehensive income for the year 1 049 1 069
Total comprehensive income attributable to:
Equity holders 968 903
Non-controlling interest holders 81 166
Total comprehensive income for the year 1 049 1 069
SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 March 2017
Rm Notes 2017 2016*
ASSETS
Financial assets held under multi-manager
investment contracts 13 281 498 276 385
Financial assets of insurance and cell-captive facilities 320 253
Property and equipment 202 355
Purchased and developed computer software 163 139
Goodwill 3 355 3 995
Intangible assets 462 681
Investment in associates 13 8
Deferred tax assets 148 157
Financial assets 357 362
Insurance receivables 1 137 981
Trade and other receivables 451 933
Cash and cash equivalents 6 263 4 877
Assets of disposal groups classified as held for sale 9 66 131
Total assets 294 435 289 257
EQUITY AND LIABILITIES
Equity holders' funds 6 901 5 901
Non-controlling interest 218 255
Total equity 7 119 6 156
Financial liabilities held under multi-manager
investment contracts 13 281 604 276 509
Liabilities of insurance and cell-captive facilities 320 253
Borrowings 725 705
Employee benefits 160 166
Deferred tax liabilities 199 262
Provisions 291 352
Finance lease liabilities 75 80
Operating lease liabilities 182 266
Deferred income 5 34
Insurance payables 2 960 2 878
Trade and other payables 784 1 553
Liabilities of disposal groups classified as held for sale 9 11 43
Total liabilities 287 316 283 101
Total equity and liabilities 294 435 289 257
Total equity per above 7 119 6 156
Weighted average number of ordinary shares in issue (millions) 1 280 1 282
Net asset value per ordinary share (cents) 556 480
* Restated.
SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2017
Rm 2017 2016*
Cash flows from operating activities
Cash generated from operations 1 091 1 056
Net interest received 56 17
Taxation paid (378) (467)
Dividends paid (509) (352)
Operating cash flows from continuing operations 260 254
Net cash flows (paid to)/received from insurance and
policyholder contracts (272) 441
Net cash flows (paid to)/received from policyholder
investment contracts (1 007) 5 688
Cash flows from operating activities - discontinued operations 250 220
Net cash (outflow)/inflow from operating activities (769) 6 603
Cash flows from investing activities
Net proceeds from sale of subsidiaries and businesses 883 (2)
Dividends from associates - 5
Net cash inflow/(outflow) on financial assets 27 (54)
Capital expenditure for the year (net of proceeds on disposal) (125) (166)
Cash flows from investing activities - discontinued operations (9) (16)
Net cash inflow/(outflow) from investing activities 776 (233)
Cash flows from financing activities
Borrowings raised 100 84
Proceeds from non-controlling interests 744 -
Repayment of borrowings (83) (383)
Payments to non-controlling interests (113) (11)
Cash flows from investing activities - discontinued operations (117) (90)
Net cash inflow/(outflow) from financing activities 531 (400)
Net increase in cash and cash equivalents 538 5 970
Cash and cash equivalents at the beginning of the year 15 748 9 674
Exchange (loss)/gain on foreign cash and cash equivalents (199) 104
Cash and cash equivalents at the end of the year 16 087 15 748
Analysed as follows:
Cash and cash equivalents of continuing operations 6 263 4 877
Cash held under multi-manager investment and insurance contracts 9 813 10 820
Cash held under cell-captive insurance facilities - 38
Cash and cash equivalents of disposal groups held for sale 11 13
16 087 15 748
* Restated.
SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2017
Rm
Total
Accumu- equity Non-con-
Share Treasury Other lated holders' trolling Total
capital shares reserves loss funds interest equity
At 31 March 2015 6 192 (166) (36) (640) 5 350 190 5 540
Total comprehensive income for the year - - 174 729 903 166 1 069
Profit for the year - - - 729 729 145 874
Other comprehensive income - - 174 - 174 21 195
Total transactions with owners of the company - (15) 19 (356) (352) (101) (453)
Purchase of treasury shares in policyholder
assets - (15) - - (15) - (15)
Issue of shares* - - - - - - -
Dividends paid - - - (352) (352) (127) (479)
Movement in share-based payment reserve - - 19 - 19 - 19
Other movements in non-controlling interest - - - (4) (4) 26 22
At 31 March 2016 6 192 (181) 157 (267) 5 901 255 6 156
* During the prior year the company issued 39 million shares to the employee share option plan for one cent per share.
Rm
Total
Accumu- equity Non-con-
Share Treasury Other lated holders' trolling Total
capital shares reserves profit funds interest equity
At 31 March 2016 6 192 (181) 157 (267) 5 901 255 6 156
Total comprehensive income for the year - - (510) 1 478 968 81 1 049
Profit for the year - - - 1 465 1 465 109 1 574
Other comprehensive income - - (510) 13 (497) (28) (525)
Total transactions with owners of the company - 21 17 (6) 32 (118) (86)
Sale of treasury shares in policyholder
assets - 21 - - 21 - 21
Introduction of empowerment partner** - - 5 521 526 222 748
Loss on shareholder transaction*** - - - (18) (18) (4) (22)
Dividends paid - - - (509) (509) (197) (706)
Movement in share-based payment reserve - - 12 - 12 - 12
Other movements in non-controlling
interest**** - - - - - (139) (139)
At 31 March 2017 6 192 (160) (336) 1 205 6 901 218 7 119
** This amount relates to a disposal of equity interest in Alexander Forbes Limited to ARC.
*** During the year Investment Solutions Holdings Limited purchased from non-controlling interest the remaining 49.99% stake
in Caveo Fund Solutions Proprietary Limited.
**** Included in these amounts are changes owing to acquisitions and disposals of equity held by non-controlling interest.
GROUP SEGMENTAL INCOME AND PROFIT ANALYSIS
For the year ended 31 March 2017
Operating income Profit from operations before
net of direct expenses non-trading and capital items
Rm 2017 % 2016 2017 % 2016
Institutional clients
Consulting 802 (2) 818 74 (9) 81
Retirements 421 12 375 100 27 79
Investments 640 - 641 276 - 277
Group risk 57 (24) 75 15 (40) 25
1 920 1 1 909 465 1 462
Retail clients
Wealth and investments 797 5 758 378 15 329
Retail insurance 477 4 458 88 (4) 92
1 274 5 1 216 466 11 421
Emerging markets 241 (11) 270 32 (51) 65
Total group before items below 3 435 1 3 395 963 2 948
Accounting for property leases (26) (30)
Accounting for share scheme costs (4) (13)
Total group 3 435 1 3 395 933 3 905
The segmental analysis provided above reflects the operating structure under which management currently
reports. The above table reflects a change in presentation from the segmental report presented in the
prior year's results. 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 year ended 31 March 2017
1. BASIS OF PREPARATION
The summary consolidated financial statements for the year ended 31 March 2017 (results)
are prepared in accordance with the requirements of the JSE Limited (JSE) Listings
Requirements for provisional reports, 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
and 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 applicable to summarised financial statements.
The accounting policies applied in the preparation of these consolidated financial
statements from which the results have been derived are in terms of IFRS and are
consistent with the accounting policies applied in the preparation of the group's
previous consolidated annual financial statements.
While this report is itself not audited, the consolidated annual financial statements
from which the summary consolidated annual financial statements below have been correctly
derived 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 auditor's engagement and, more specifically,
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.
Copies can be requested from our registered office or downloaded from the company's
website following an announcement in June 2017 on the JSE's Securities Exchange News
Service (SENS).
These summary consolidated financial statements were compiled under the supervision of
Bruce Bydawell, CA(SA), CFA, the acting group chief financial officer. The directors take
full responsibility for the preparation of this report.
2017 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 19.0 20.8
Closing R:GBP rate 16.8 21.2
The weighted average exchange rate above reflects the weighted exchange rate based
on the actual results recorded from the international division during the year
under review.
Rm 2017 2016*
3. FEE AND COMMISSION INCOME
Brokerage fees and commission income 20 22
Fee income from consulting and administration services 2 084 2 082
Revenue from investment management activities 1 790 1 736
Other income 39 35
Fee and commission income 3 933 3 875
4. NET INCOME FROM INSURANCE OPERATIONS
Insurance premiums earned 2 318 2 123
Less: Amounts ceded to reinsurers (1 399) (1 258)
Investment income from insurance operations 37 32
Less: Insurance claims and withdrawals (1 686) (1 507)
Plus: Insurance claims and benefits covered through
reinsurance contracts 1 294 1 150
Net income from insurance operations 564 540
5. NON-TRADING AND CAPITAL ITEMS
Non-trading:
Professional indemnity insurance cell-captive result 30 (9)
Amortisation of intangible assets arising from business
combination (117) (124)
Costs relating to strategic consulting engagement (39) -
Other non-trading items** (11) (7)
Total non-trading and capital items (137) (140)
* Restated.
** Other non-trading items include mainly R5 million impairment relating to developed
software written off and the share-based payment expense associated with the
empowerment transaction in a subsidiary company amounting to R5 million.
Rm 2017 2016*
6. INVESTMENT INCOME
General operations
Interest income 115 77
Investment and dividend income 33 21
Foreign exchange gains/(losses) on intergroup loans 8 (5)
156 93
Investment income linked to policyholder tax expense 22 70
Total investment income 178 163
7. FINANCE COSTS
Finance costs derived from financial liabilities classified
and carried at amortised costs:
Interest on revolving credit facility (66) (57)
Other interest costs (23) (12)
Total finance costs (89) (69)
8. INCOME TAX EXPENSE
South African income tax
Current tax (268) (248)
Current year (274) (210)
Prior year 6 (38)
Deferred tax 33 39
Current year 26 32
Prior year 7 7
Foreign income tax
Current tax (4) (16)
Current year (4) (16)
Prior year - -
Foreign withholding tax (5) (6)
Income tax expense relating to corporate profits (244) (231)
Income tax expense on policyholder investment returns (22) (70)
Current tax - current year (24) (108)
Deferred tax - current year 2 38
Total income tax expense (266) (301)
* Restated.
9. DISCONTINUED OPERATIONS
Businesses that have been disposed of 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
operations, where the disposal process is ongoing, have been reclassified as assets
and liabilities of disposal groups held for sale.
As announced on 20 December 2016 on the JSE, the group disposed of its 60% stake in
Lane Clark & Peacock, including the LCP subsidiaries in Ireland and the Netherlands
for a total consideration of GBP75.4 million. The group also finalised the sale of
Alexander Forbes Compensation Technologies Proprietary Limited (AFCT) in April 2016,
the results of which are also reflected in the table below.
At 31 March 2017 the Kenyan operations under emerging markets have been classified as
discontinued. The assets and liabilities of these operations are classified as assets and
liabilities of disposal groups classified as held for sale. Related goodwill of R8 million
was impaired in the current year.
Rm 2017 2016*
Assets and liabilities of disposal group classified as
held for sale
Long-term assets 5 3
Deferred tax assets 1 -
Trade and other receivables 47 8
Other current assets 2 107
Cash and cash equivalents 11 13
Total assets 66 131
Deferred tax liabilities - 30
Provisions - 6
Trade and other payables 11 7
Total liabilities 11 43
Summary income statement from discontinued operations
Operating income net of direct expenses 1 339 2 099
Operating expenses (1 155) (1 789)
Operating profit before non-trading and capital items 184 310
Net (finance costs)/investment income (1) 3
Non-trading and capital items (8) (18)
Profit before taxation 175 295
Income tax expense (18) (43)
Profit for the year 157 252
Profit on disposals 796 1
Profit from discontinued operations 953 253
* Restated.
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.
Million 2017 2016
10.4 Number of shares
Weighted average number of shares 1 341 1 334
Weighted average shares held by policyholders
classified as treasury shares (19) (17)
Weighted average treasury shares (42) (35)
Weighted average number of shares 1 280 1 282
Dilutive shares (conditional and forfeitable share plan) 7 10
1 287 1 292
Actual number of shares 1 341 1 341
Actual treasury shares (59) (61)
Actual number of shares in issue 1 282 1 280
Rm
10.5 Calculation of headline earnings and diluted
headline earnings
Profit attributable to equity holders (IAS 33 earnings) 1 465 729
Adjusting items
(Profit)/loss on sale of subsidiary (796) 2
Impairment losses and other capital items 14 13
Headline earnings for the year 683 744
Basic earnings per share (cents) 114.5 56.9
Headline earnings per share (cents) 53.4 58.1
10.6 Diluted earnings per share
Diluted basic earnings per share (cents) 113.8 56.4
Diluted headline earnings per share (cents) 53.1 57.6
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 period 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 2017 2016
11. CAPITAL EXPENDITURE FOR THE YEAR 132 184
12. OPERATING LEASE COMMITMENTS
Due within one year 187 235
Due between one and five years 766 1 167
Due after five years 558 1 063
Total operating lease commitments 1 511 2 465
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 the 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 of the liability continues to be recognised in the income statement.
The resultant loss for the year of R2 million (2016: R59 million profit) has been disclosed
separately on the face of the statement of comprehensive income. This treatment also
affects 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 2017 2016
Total assets held under multi-manager investment contracts
(per statement of financial position) 281 498 276 385
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 137 157
Financial effects of accounting for policyholder investments
as treasury shares - prior years (33) 26
Financial effects of accounting for policyholder investments
as treasury shares - current year 2 (59)
Total financial liabilities held for policyholders under
multi-manager investment contracts 281 604 276 509
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 summary consolidated 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 2017.
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
2017
Financial assets measured at fair value
Financial assets held under multi-manager investment contracts 185 603 83 311 2 771 271 685
Financial assets of insurance and cell-captive facilities 172 148 - 320
General operations - 260 - 260
Total financial assets measured at fair value 185 775 83 719 2 771 272 265
Cash held under multi-manager investment contracts - 9 813 - 9 813
- 9 813 - 9 813
Financial liabilities measured at fair value
Financial liabilities held under multi-manager investment contracts - 281 604 - 281 604
Financial assets of insurance and cell-captive facilities - 320 - 320
Total financial liabilities measured at fair value - 281 924 - 281 924
2016
Financial assets measured at fair value
Financial assets held under multi-manager investment contracts 184 483 79 489 1 593 265 565
Financial assets of insurance and cell-captive facilities 104 111 - 215
General operations - 267 - 267
Total financial assets measured at fair value 184 587 79 867 1 593 266 047
Cash held under multi-manager investment contracts - 10 820 - 10 820
Cash held under cell-captive insurance contracts - 38 - 38
- 10 858 - 10 858
Financial liabilities measured at fair value
Financial liabilities held under multi-manager investment contracts - 276 509 - 276 509
Financial assets of insurance and cell-captive facilities - 253 - 253
Total financial liabilities measured at fair value - 276 762 - 276 762
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 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 under review.
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 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 2017.
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
In the prior year we referred to a specific matter which was and is still being reviewed
by a foreign regulator in respect of a legacy subsidiary business that has been sold.
Whilst this review is ongoing, the skilled person appointed by the regulator has issued a
draft report indicating further investigation and work is justified and is currently being
undertaken. The claim, should any arise, will be as a result of warrantees provided on the
original sale of the business. Management has assessed and concluded that it is still too
early to determine (i) the likelihood and magnitude of any liability that may arise and
(ii) in the event a liability does arise, if it will impact the group. The group is
adequately insured for possible claims as a result of such errors and omissions. In addition,
management has obtained confirmation from the insurance underwriters indicating that should
a liability arise the event will be covered subject to the terms and conditions of the policy.
16. RESTATEMENT OF COMPARATIVES
During the year under review management enhanced its process with regard to the accounting
provision for tax payable by Investment Solutions on behalf of policyholders. This
enhancement highlighted an error in the calculation of the income tax provision recorded
in the 2016 financial year. The policyholder taxes were overstated in our financial accounts
by R127 million. As the principal payer of this tax liability, policyholder taxes are
included in the tax expense on the income statement of Investment Solutions. The right to
recover the taxes from the policyholder is recorded as a financial asset and deducted from
the policyholder assets. The policyholder liabilities are then reduced to match the
policyholder assets, resulting in a gain recorded under investment income.
It is important to note that there is no impact on operating profit, profit after tax,
total assets, total liabilities and accumulated profits in equity. In addition, there is
no impact on previously disclosed earnings per share figures and return on assets or
equity figures. The financial impact of this restatement is shown below:
Restated As reported
Rm 2016 Adjustment 2016
ASSETS
Financial assets held under multi-manager
investment contracts 276 385 127 276 258
Financial assets of insurance and cell-captive
facilities 253 - 253
Other assets 12 126 - 12 126
Financial assets 362 (127) 489
Assets of disposal groups classified as
held for sale 131 - 131
Total assets 289 257 - 289 257
EQUITY AND LIABILITIES
Total equity 6 156 - 6 156
Financial liabilities held under multi-manager
investment contracts 276 509 127 276 382
Financial liabilities of insurance and
cell-captive facilities 253 - 253
Other liabilities 5 999 - 5 999
Deferred tax liabilities 262 (60) 322
Tax liabilities 35 (67) 102
Liabilities of disposal group classified
as held for sale 43 - 43
Total liabilities 283 101 - 283 101
Total equity and liabilities 289 257 - 289 257
Restated Discontinued As reported
Rm 2016 Adjustment operations 2016
Continuing operations
Operating profit 765 - (308) 1 073
Investment income 163 (127) (4) 294
Finance costs (69) - 2 (71)
Reported profit arising from
policyholder investments in
treasury shares 59 - - 59
Share of net profit of associates
(net of income tax) 4 - - 4
Profit before taxation 922 (127) (310) 1 359
Income tax expense (231) - 40 (271)
Policyholder taxes (70) 127 - (197)
Profit for the year from continuing
operations 621 - (270) 891
Discontinued operations
Profit/(loss) on discontinued operations
(net of income tax) 253 - 270 (17)
Profit for the year 874 - - 874
Profit attributable to:
Equity holders 729 - - 729
Non-controlling interest 145 - - 145
874 - - 874
Earnings per share (cents)
Basic earnings per share 56.9 - - 56.9
Headline earnings per share 58.1 - - 58.1
Diluted earnings per share 56.4 - - 56.4
Weighted average number of shares 1 282 - - 1 282
17. EVENTS AFTER REPORTING PERIOD
On 7 April 2017 the group announced a significant contractual agreement relating to
system and process development. The financial commitment relating to this contract
amounts to $51 million over the next four financial years, of which $11 million will
be paid within 12 months, and the costs of development will be capitalised and
depreciated over the expected useful life of the system. The group has entered into
a foreign currency hedge contract in order to reduce the currency risk associated with
this contract. The hedge is designed to cover 75% of the commitment at an effective
exchange rate of R13.88 to the US dollar.
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), DM Viljoen (group chief financial officer - resigned
30 April 2017), BP Bydawell (acting group chief financial officer - appointed 30 April 2017)
Company secretary
JE Salvado
Investor relations
Z Amra
Registered office
Alexander Forbes, 115 West Street, Sandown, 2196
Transfer secretaries
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
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: 12 June 2017
Date: 12/06/2017 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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