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
JSE alpha code: OMLI
("Old Mutual" or “Company” or “Group”)


23 February 2022


OLD MUTUAL TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

Debtholders 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.
Debtholders are advised that the Group’s key profit measures are expected to be within the
ranges outlined below:

    Key Performance Indicators
    (R   million  unless    stated              Estimated           Estimated
    otherwise)                                  % change     31 December 2021       31 December 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
AHEPS defined as Adjusted Headline Earnings divided by WANS adjusted to reflect the Group's
1


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


Debtholders 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

Debt sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank 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 07:10:00
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