OLD MUTUAL LIMITED - Old Mutual trading statement for the year ended 31 December 2021

Old Mutual trading statement for the year ended 31 December 2021

Old Mutual Limited
Incorporated in the Republic of South Africa
Registration number: 2017/235138/06
ISIN: ZAE000255360
LEI: 213800MON84ZWWPQCN47
JSE Share Code: OMU
LSE Share Code: OMU
NSX Share Code: OMM
MSE Share Code: OMU
ZSE Share Code: OMU
("Old Mutual" or “Company” or “Group”)


Ref 01/22
23 February 2022

OLD MUTUAL TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

Shareholders are advised that Old Mutual is currently in the process of finalising its annual results for the year ended
31 December 2021 ("current period"), which will be released on the Stock Exchange News Service of the JSE Limited
on Tuesday, 15 March 2022. This trading statement provides an indication of a range for headline earnings per ordinary
share (HEPS) and earnings attributable to equity holders of the Group per ordinary share (EPS) in terms of paragraph
3.4(b) of the JSE Limited Listings Requirements compared to the year ended 31 December 2020 ("comparative
period").

The Group’s operational and financial performance in 2021 demonstrated a strong recovery from the impacts of the
COVID-19 pandemic. The relaxation of lockdown restrictions in the current period supported the considerable growth
in productivity levels across the Group despite a challenging operating environment in all our markets. Our South
African retail segments, Mass and Foundation Cluster, and Personal Finance and Wealth Management continue to
deliver improved productivity and issued sales from the low levels in 2020, with issued sales in Personal Finance above
2019 levels due to strong single premium activity. Sales activity in Corporate remained subdued although annuity quotes
improved relative to 2020. The South African equities market improved with the JSE SWIX up 17% at the end of the
year positively impacting our asset base and associated fee income.

In South Africa, high infection rates from the second and third waves of COVID-19 impacted our business and our
employees. Personal Finance and Old Mutual Corporate’s mortality experience was impacted by higher claims than
provided for in the period.

In our Rest of Africa markets, there was a gradual return to normal economic activity, which helped sustain the economic
growth across the countries. Our Namibia operations were impacted more acutely than the other markets, with an
increase in COVID-19 cases and deaths, resulting in poor mortality experience over the period.

We have reserved for expected future COVID claims based on experience including the impacts of the Omicron variant.
Should a new variant emerge that is more transmissible or result in higher mortality post infection we would have to
reassess the provisions held as new facts emerge.
Shareholders are advised that the Group’s key profit measures are expected to be within the ranges outlined below:




 Key Performance Indicators                      Estimated                Estimated                31    December
 (R million unless stated otherwise)             % change                 31 December 2021         2020
 Results from Operations                         >100%                    4,301 - 4,467            1,663
 Adjusted Headline Earnings                      >100%                    5,390 - 5,639            2,484
 AHEPS (cents)¹                                  >100%                    118 - 128                54.3
1
 AHEPS defined as Adjusted Headline Earnings divided by WANS adjusted to reflect the Group's B-BBEE shares and
shares held in policyholder and consolidated investment funds.

HEPS and Basic EPS are expected to fall within the ranges outlined below:




    Key Performance Indicators                      Estimated               Estimated                31 December
    (R million unless stated otherwise)             % change                31 December 2021         2020
    IFRS profit after tax attributable to equity
    holders of the parent                           >100%                   6,519 – 7,029            (5,097)

    Basic EPS (cents)                               >100%                   148 - 160                (116.3)

    Headline Earnings                               39% to 49%              7,067 – 7,576            5,088

    HEPS (cents)                                    38% to 48%              161 - 172                116.1


Shareholders are reminded that the impairments in respect of the carrying value of our investment in Nedbank and the
goodwill related to our investment in Old Mutual Finance were recognised in the IFRS income statement in the
comparative period and were not repeated. These are however, not recognised in Headline Earnings, and accordingly
not recognised in Adjusted Headline Earnings (AHE), as this is an explicit adjusting item in accordance with the JSE
Headline Earning Circular 1/2021.

Headline earnings is higher than AHE, as AHE excludes higher earnings related to Zimbabwe, partially offset by
adjustments in respect of equity and debt instruments held in life funds as well as the impact of restructuring which
were lower than FY 2020.

The financial information in this trading statement is the responsibility of the Old Mutual Limited Board of Directors
and has not been reviewed or reported on by the Group’s external auditors.


Sandton

Sponsors
 JSE                                        Merrill Lynch South Africa (Pty) Limited t/a BofA Securities
 Namibia                                    PSG Wealth Management (Namibia) (Proprietary) Limited
 Zimbabwe                                   Imara Capital Zimbabwe plc
 Malawi                                     Stockbrokers Malawi Limited

Enquiries
 Investor Relations
 Sizwe Ndlovu                               T: +27 (0)11 217 1163
 Head of Investor Relations                 E: tndlovu6@oldmutual.com

    Communications
    Vuyo Mtawa                              M: +27 68 422 8125
    Head: Group Communications              E: VMtawa@oldmutual.com

Notes to Editors

About Old Mutual Limited
Old Mutual is a premium African financial services group that offers a broad spectrum of financial solutions to retail
and corporate customers across key  market segments in 14 countries. Old Mutual's primary operations are in South Africa and the Rest of Africa and it has a niche business in
Asia. With over 176 years of heritage across sub-Saharan Africa, Old Mutual is a crucial part of the communities they
serve and the broader society on the continent. For further information on Old Mutual and its underlying businesses, please visit the corporate website at
www.oldmutual.com.

Date: 23-02-2022 07:05:00
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