Wrap Text
Summary results announcement and cash dividend declaration for the year ended 30 June 2022
RAND MERCHANT INVESTMENT HOLDINGS LIMITED (RMI)
Registration number: 2010/005770/06
JSE ordinary share code: RMI
ISIN code: ZAE000210688
SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE YEAR ENDED 30 JUNE 2022
Total shareholders' return (TSR)
453.5%
since listing in 2011
Normalised earnings from continuing operations
-4% to R1 773 million (2021: R1 841 million)
Ordinary dividend
+46% to 65.5 cents (2021: 45.0 cents)
Special dividends
142.0 cents in cash
2 261.6 cents in specie (2021: no special dividend)
ABOUT RMI
RMI is a JSE-listed holding company with significant investments in insurance, asset management and fintech businesses. Historically, RMI has been a significant
investor in some of South Africa's most iconic financial services brands.
VALUE CREATED for the year ended 30 June 2022
RMI measures the execution of its strategy through the creation of discernible value.
The unbundling of RMI's investments in Discovery Limited (Discovery) and Momentum Metropolitan Holdings Limited (Momentum Metropolitan) and the sale of the
group's 30% interest in Hastings Group (Consolidated) Limited (Hastings) have resulted in the creation of significant shareholder value.
A momentous year
The 2022 financial year was truly momentous in the eventful history of RMI.
Both strategically and structurally, landmark decisions were made to unbundle its shareholdings in two strong South African life insurance brands, Discovery and
Momentum Metropolitan, sell its investment in the lucrative British market, Hastings, and not to continue with an active investment strategy and further geographic
expansion but to embark on an orderly and managed transition to a structure that represents an effective listing of OUTsurance.
RMI has unlocked significant value for shareholders as a direct result of these strategic decisions:
- As at 30 June 2021, RMI's market capitalisation was R48 billion. One year later, as at 30 June 2022, RMI's market capitalisation was R42.6 billion after the unbundling
of its interests in Discovery and Momentum Metropolitan with a combined market value of R34.6 billion as at the time of the unbundling. In addition to this, RMI paid a special
dividend of R2.2 billion and a normal dividend of R1 billion. RMI's total shareholder return since listing in 2011 amounts to 453.5%.
Sale of Hastings
On 8 December 2021, RMI announced the sale of the group's 30% shareholding in Hastings. The shares were jointly held by RMI (51%) and OUTsurance (49%) via Main
Street 1353 Proprietary Limited (Main Street).
The sale price represented a premium of 37% to the price at which Hastings was privatised in November 2020 and an internal rate of return for RMI's investment
in Hastings of 18.4% in Rand terms (R8.5 billion, including dividends) and 12.5% in Pound terms - well in excess of RMI's return requirements. The sale therefore
represented an opportunity to monetise the investment in Hastings at an attractive valuation.
RMI and OUTsurance have enjoyed a successful partnership with Hastings and Sampo, resulting in strategic and financial collaboration benefits in the form of
operational best practice, intellectual property and market knowledge sharing. An ongoing relationship, through the continuation of the existing arms-length
outsourcing agreement for a call centre, will see the retention of approximately 650 permanent jobs in South Africa.
The proceeds of the sale were:
R billion 2022
Sale consideration 14.6
Less: Settlement of funding and related debt in Main Street (3.1)
Net consideration 11.5
Less: OUTsurance's portion (49%) of net consideration (5.7)
RMI's portion (51%) of net consideration 5.8
RMI's portion of OUTsurance's special dividend 2.8
RMI net proceeds from the sale, utilised to redeem the remainder of preference share debt 8.6
Cash retained in OUTsurance for future expansion 2.5
As a consequence of the sale of Hastings, RMI:
- Repaid all its debt;
- No longer required a rights issue to give effect to the unbundling of Discovery and Momentum Metropolitan;
- Enabled OUTsurance to retain R2.5 billion of the sales proceeds in cash, inter alia to fund its future international expansion; and
- Was able to release R2.2 billion of surplus cash as a special dividend in April 2022.
Unbundling of Discovery and Momentum Metropolitan unlocks value
On 25 April 2022, RMI finalised the unbundling of its shareholdings in Discovery and Momentum Metropolitan.
When announcing the unbundling on 20 September 2021, it was envisaged that a rights issue of approximately R6.5 billion would be required before the unbundling
could be finalised to reduce debt to a level that would be appropriate for the reduced size of the balance sheet post-unbundling. The sales proceeds from Hastings
were utilised to repay all the preference share debt and therefore negated the need for a rights issue.
As at 30 June 2022, RMI traded at a 2% discount to its intrinsic net asset value, having traded at a 28% discount as at the end of the previous financial year.
Transition to OUTsurance
Following the sale of Hastings and the unbundling of Discovery and Momentum Metropolitan, RMI predominantly reflects the value of OUTsurance alongside its
investments in RMI Investment Managers and the AlphaCode portfolio of fintech companies.
Over the last two years, RMI has been evaluating the creation of a portfolio of unlisted, non-competing and collaborative businesses in the short-term insurance
industry. This portfolio could benefit greatly from shared best practice across markets, distribution channels and underwriting experience and represent a blend
of diversified and cash-generative 'local champions'. RMI conducted a detailed country and company analysis to identify potential target investments and found no
actionable investment opportunities which meet RMI's expectations around asset quality, price and availability.
An expanded portfolio also needs to be compared to the status quo - an efficient and capitalised corporate structure almost solely representing OUTsurance which, in
its own right, is a growing short-term insurance group operating across multiple geographies. OUTsurance could, in time, drive international expansion independently,
should attractive opportunities arise.
The RMI board of directors concluded that it is in the best interests of shareholders not to continue with the active investment strategy and decided to embark on an
orderly and managed transition to a structure that represents an effective listing of OUTsurance.
The managed transition will be achieved by renaming Rand Merchant Investment Holdings Limited to OUTsurance Group Limited. RMI's investments in RMI
Investments Managers and the AlphaCode fintech portfolio will be housed under RMI Treasury Company Limited (a 100%-owned subsidiary of RMI), and its investment
in OUTsurance will remain under OUTsurance Holdings Limited.
The managed transition is expected to result in the following key benefits for RMI shareholders:
- Simpler operational structure offering a single access point to OUTsurance;
- A cost-effective way to effectively complete an initial public offering (IPO) of OUTsurance and retain the group's empowerment credentials;
- More focused OUTsurance management team with direct accountability to shareholders;
- Higher dividend payout ratio;
- A phased reduction of the holding company and personnel costs at RMI until March 2023, whereafter the only remaining costs will relate to the costs associated
with being a listed entity; and
- It enabled RMI to release R2.2 billion to shareholders as a special dividend.
Offer for RMI Investment Managers to build out their strategy with co-shareholders
RMI is currently in advanced-stage discussions with its co-shareholders, Momentum Metropolitan and Royal Bafokeng Investment Holding Company Proprietary
Limited (RBIH), about Momentum Metropolitan's interest to acquire RMI's interest in RMI Investment Managers (excluding the group's investment in PolarStar).
This proposed transaction would solidify the existing empowerment, distribution and financial ambitions of RMI Investment Managers while retaining the
independence and unique boutique characteristics of the affiliate model. RBIH has given its in-principle support to the proposed transaction and remains a committed
and aligned partner. This proposed transaction is subject to the requisite governance and regulatory approvals, agreement of the final terms, confirmation of the structure,
and other conditions typical of a transaction of this nature.
Intrinsic value of investments
During the year under review, the value of RMI's investments in OUTsurance and the combined value of its investments in RMI Investment Managers and AlphaCode
investments increased by 14% and 18% respectively. The significant change in the net assets of the holding company is the result of the repayment of all the
preference share debt from the proceeds of the sale of Hastings.
The intrinsic value of RMI's portfolio is made up as follows:
%
R million 2022 2021 change
Continuing operations 43 650 28 552 53
Internal valuation of unlisted investments 42 418 37 037 15
OUTsurance (excluding Hastings)(1) 40 517 35 429 14
RMI Investment Managers and AlphaCode(2) 1 901 1 608 18
Net assets/(liabilities) of holding company(3) 1 232 (8 485) >100
Discontinued operations - 37 889 (100)
Hastings(4) - 9 258 (100)
Discovery(5) - 20 811 (100)
Momentum Metropolitan(5) - 7 820 (100)
Net value of portfolio(6) 43 650 66 441 (34)
Net value of portfolio per share (cents) 2 850 4 337 (34)
The valuations are based on:
1 An internal discounted cash flow management model that has been independently verified.
2 The internal management valuation.
3 All the assets and liabilities at holding company level other than the investments shown separately in the table above.
4 A discounted cash flow valuation performed as at 30 June 2021 (Hastings was delisted on 16 November 2020). The ZAR:GBP exchange rate as at year-end was used
to translate the GBP valuation into ZAR.
5 Market value as at 30 June 2021.
6 No provision for CGT. The size of RMI's stakes in its underlying investee companies qualifies for certain tax exemptions when certain corporate actions are
performed.
The share price of R27.84 per share on 30 June 2022, therefore represents a discount of only 2% (2021: 28%) compared to the intrinsic value of the underlying
investments.
OVERVIEW OF RESULTS
Hastings represented a major geographical area of operation and both Discovery and Momentum Metropolitan represented major lines of business. The results of
all these investee companies are therefore being treated as discontinued operations in the RMI group results. The results of Hastings were equity accounted until 8
December 2021, the effective date of the sale. The results of Discovery and Momentum Metropolitan were also equity accounted until 8 December 2021, the date on
which the unbundling of these assets met the accounting definition of being highly probable.
RMI regards normalised earnings as the appropriate basis to evaluate business performance as it eliminates the impact of non-recurring items and accounting
anomalies. In respect of the results for the year ended 30 June 2022, the emphasis is on normalised earnings from continuing operations and this will form the base
from which the results from the 2023 financial year onwards will be evaluated.
Normalised results from continuing operations decreased by 4%. Total normalised earnings were negatively impacted by the inclusion of the results from discontinued
operations only up to 8 December 2021, i.e. just over five months, resulting in a decline of 17% in normalised earnings from continuing and discontinued operations.
RMI's consolidated normalised earnings for the year ended 30 June 2022 are set out in the table below.
For the year ended
30 June %
R million 2022 2021 change
Continuing operations 1 773 1 841 (4)
OUTsurance (excluding Hastings) 2 039 2 296 (11)
- OUTsurance (including Hastings) 2 099 2 513 (16)
- Hastings included in OUTsurance (60) (217) 72
RMI Investment Managers and AlphaCode investments 27 142 (81)
Funding and holding company costs (293) (597) 51
Discontinued operations 1 181 1 704 (31)
Discovery (up to 8 December 2021) 620 850 (27)
Hastings (up to 8 December 2021) 191 585 (67)
Momentum Metropolitan (up to 8 December 2021) 370 269 38
Normalised earnings 2 954 3 545 (17)
Normalised earnings per share (cents) 192.8 231.4 (17)
Continuing operations
RMI's portion of normalised earnings from OUTsurance, excluding its stake in Hastings, decreased by 11% for the year ended 30 June 2022 to R2.0 billion.
Normalised earnings from OUTsurance's South African operations were negatively impacted by an increased claims ratio as a result of wetter weather conditions,
increased non-motor claims costs, the normalisation of motor claims frequencies and claims related to the extensive damage caused by the flooding in KwaZulu-Natal.
At Youi, the claims ratio increased significantly due to the extent of natural catastrophe events experienced which included the Melbourne earthquake and various
hail and flood events. Although the claims related to the flooding experienced during the second half of this financial year were mostly covered by the reinsurers, each
separate event resulted in a retained loss of AUS$2 million.
The operating loss of new ventures (products and channels) increased from R485 million in 2021 to R631 million in 2022. This increase is associated with a higher new
business strain from a stronger growth rate in the BZI channel, the impact of more severe weather losses and the launch of the OUTsurance Life face-to-face strategy.
The operational loss relating to new ventures represented 19% (2021: 13%) of the operating profit generated by profitable segments. The group's target over time for
this measure is set at 10%.
Annualised new premiums written increased by 23% to R7.1 billion and gross written premiums increased by 14% to R23.5 billion. The new premiums written growth
was enabled by the group's channel and product growth strategy. The South African operations delivered 16% growth, while Youi achieved 30% growth measured in
Australian Dollars, mainly due to the step-up in the BZI channel sales.
Normalised earnings generated in the comparative year by RMI Investment Managers included a significant amount for performance fees earned which was not
repeated in the year under review. However, the financial results for the year were ahead of expectations and the business continues to benefit from a diversified
affiliate revenue capability.
The combined affiliate assets under management amounted to R204.4 billion as at 30 June 2022. The positive net inflow of assets under management largely mitigated
the negative market conditions across the portfolio.
The AlphaCode portfolio continues to perform in line with expectations. All the entities in the AlphaCode Grow stable, being Entersekt, Guidepost, Merchant Capital
and Prodigy Finance, made significant progress in growing their business, increasing revenue and establishing business relationships that bode well for the future.
All the preference share debt funding was repaid by mid-December with the proceeds from the sale of Hastings. This was the main contributor to the reduction of 51%
in funding and holding company costs during the year under review.
Discontinued operations
(commentary based on six months' results)
The total reported normalised earnings of RMI's discontinued operations for the six months to 31 December 2021 are provided in the table below:
Six months ended
31 December %
R million 2021 2020 change
Discovery 2 876 2 284 26
Hastings 801 652 23
Momentum Metropolitan 1 525 1 012 51
Discovery's normalised earnings increased by 26% to R2.9 billion during the six months ended 31 December 2021. Normalised earnings were positively impacted by
mark-to-market foreign currency gains arising from a weakening of the Rand during the six months to 31 December 2021 compared to losses due to the strengthening
of the Rand in the comparative period. Discovery has navigated the COVID-19 pandemic across its global operations, with mortality risk in South Africa having the
largest financial impact. Although the COVID-19 claims paid of R3.4 billion during the six months to 31 December 2021 were the highest throughout the pandemic,
the earnings impact was limited given strong reinsurance arrangements and previously raised provisions. High levels of vaccination among its clients and high levels of
immunity in South Africa contributed to the significant reduction in fatalities.
Hastings achieved 23% growth in normalised earnings during the six months ended 31 December 2021. Its calendar year loss ratio for 2021 of 62.2% was significantly
ahead of the target of 76%. Motor claims frequencies, although higher than 2020, remained below 2019 levels throughout 2021, largely reflecting reduced motor
vehicle usage as a result of COVID-19 restrictions. The average cost of claims continued to rise, reflecting increases in repair costs, largely due to extended repair
periods as a result of COVID-19 and general inflation in labour, parts and paint. Customer retention rates continue to be high and above market averages. Home
insurance customer policies grew by 16% year-on-year to just over 310 000 policies.
Momentum Metropolitan's normalised earnings increased by 51% to R1.5 billion in the six months to 31 December 2021, mainly due to a significant increase in
investment returns from R122 million to R740 million resulting from the general recovery of investment markets, fair value gains from the group's investment in
venture capital funds and foreign exchange gains on the foreign currency-based assets. A decline of 12% in operating profit was largely attributable to net mortality
losses of R378 million. New business volumes increased by 23% to R37 billion and the value of new business increased by 20% to R400 million.
OUTLOOK AND FUTURE VALUE CREATION
OUTsurance expects the global and local economic backdrop to remain volatile for the foreseeable future. The major strategic focus for the 2023 financial year is to
drive the growth initiatives to profitability and target margins.
The inflationary environment and hardening reinsurance market require ongoing pricing action and discipline. With OUTsurance's focus on underwriting margins, this
may imply slower policy growth in the 2023 financial year.
The system transformation journey enjoys significant focus and the next year will see further adoption of the newly developed Stratos platform and bedding down the
finance and risk systems which were recently deployed.
The international expansion initiative is gaining momentum and a licensing application will be submitted in 2023, together with launch preparations.
The listing transition of RMI to OUTsurance is a significant undertaking and is expected to be substantially completed by December 2022.
Agreement has been reached to acquire the Youi minority interest (2.6% in the 2023 financial year and a further 2.6% in the 2024 financial year).
Improving customer service outcomes will continue to be a core focus for incremental improvement in the 2023 financial year.
OUTsurance will pro-actively navigate the rapidly changing reinsurance market to ensure outcomes within its risk and capital appetite.
RMI Investment Managers' view is that the portfolio is largely complete, however, they remain opportunistic and continue to explore the addition of affiliates to either
solve for additional exposure or under-exposure in certain asset classes or to further add value to the portfolio.
The RMI Investment Managers team continues to actively engage in strategic dialogue with its affiliates with a focus on implementing its shareholder value map,
which offers affiliates access to comprehensive strategic support including operational, governance and financial support, succession planning, talent management
and board representation. In addition, the team continues to play a strategic advisory role in helping its affiliates raise retail assets and foster meaningful and trusted
client relationships. Many of the affiliates have also benefited from marketing support provided by the team. This has enabled the affiliates to expand their branding,
marketing and public relations efforts to enhance their brand presence and credibility in the market.
RMI Investment Managers will ensure that its reputation as a trusted, value-adding but non-interfering shareholder of choice for the independent asset management
industry remains a core philosophy. The team and its partners in Momentum Metropolitan and RBH remain excited and committed to working with its affiliates to
support their growth to scale.
AlphaCode Incubate is an important element of RMI's enterprise supplier development programme which is biased towards black-owned businesses. In the 2022
financial year, AlphaCode Incubate selected eight businesses across healthtech, fintech, legaltech and datatech. The eight startups received an entrepreneurial package
worth R500 000 including a curated online learning experience, mentorship and expert interventions, exclusive office space at AlphaCode, marketing, legal and other
business support services as well as access to RMI's networks. Women are severely underrepresented in the startup ecosystem globally. Representation matters
and by having a diverse AlphaCode team and selection panel, there was representation of seven female founders across the eight startups, several of whom have
run successful businesses prior to these startups which we know makes for more successful entrepreneurs. All of the startups were founded during the pandemic,
forcing the founders to work harder getting to know their customers, to become incredibly resourceful, resilient and creative in how they validated their products with
customers. Between January and April 2022, the cohort generated R1.6 million in revenue and serviced an average of more than 10 000 customers. In June 2022, a
virtual demo day was hosted. Each startup received an entrepreneurial package worth R1 million including R500 000 grant funding, six months of sprint-based tailored
expert support and continued access to the co-working space.
AlphaCode Explore is an initiative aimed at upskilling those interested in entrepreneurship through thought leadership events, workshops, masterclasses and peer
learning sessions. A women-in-tech initiative was the key focus for the 2022 financial year. A female-founder-only dinner and pitch event was hosted where four
female-founded tech startups collectively received R350 000 in grant funding. All six startups that pitched received tailored mentorship support, enabling their startups
to refine their business models, gain access to investors, gain market traction and showcase their capability to corporates.
AlphaCode Seed invested R2 million via a convertible note into CARscan, an insurtech that uses a mobile phone for vehicle service assessments, pre-inspections or
claim assessments in the event of an accident using a priority AI-AR based platform. The fund co-invested alongside Kalon Venture Partners, Launch Africa and IDF
(all are following-on from their original investment) as well as Allan Gray E2 Ventures. In total, $1 million was invested in the business in this round. The business has
received $1.7 million in funding across two funding rounds.
RMI remains excited about the growth prospects of the AlphaCode Grow portfolio. The drive to scale and grow Entersekt, Guidepost, Merchant Capital and Prodigy
Finance remains unchanged and RMI remains a supportive shareholder.
Events after the reporting period
The directors are not aware of any material adjusting or non-adjusting events relating to the year ended 30 June 2022 that occurred between the date of the statement
of financial position and the date of this report.
Changes to the board of directors
At the annual general meeting held on 24 November 2021, Messrs Harris, Mupita and Phetwe and Ms De Bruyn stepped down as RMI board members. On the same
date, Mr Morobe took over from Ms De Bruyn as member of the remuneration committee and Mr Lucht took over from Ms De Bruyn as member of the social, ethics
and transformation committee.
On 14 March 2022, Mr Dippenaar retired from the RMI board.
Final dividend for the 2022 financial year
The board of RMI has decided to declare a final dividend of 42.0 cents per share on 21 September 2022. The board believes RMI is adequately capitalised and that the
group will be able to meet its obligations in the foreseeable future after payment of the final dividend.
The total ordinary dividend per share for the year of 65.5 cents (2021: 45.0 cents) is covered 2.9 times (2021: 5.1 times) by the normalised earnings of 192.8 cents
(2021: 231.4 cents) per share.
Jannie Durand Herman Bosman
Chairman Chief executive officer
Rosebank
21 September 2022
CASH DIVIDEND DECLARATION
Notice is hereby given that a gross final cash dividend of 42.0 cents per ordinary share, payable out of income reserves, was declared on 21 September 2022 in respect
of the year ended 30 June 2022.
The dividend will be subject to Dividend Withholding Tax at a rate of 20%, which will result in a net dividend of 33.6 cents per ordinary share for those shareholders
who are not exempt.
The company's tax reference number is 9469/826/16/9. Its issued share capital at the declaration date comprises 1 531 807 770 ordinary shares.
Shareholders' attention is drawn to the following important dates:
- Last day to trade in order to participate in this dividend will be Tuesday, 18 October 2022.
- Shares commence trading ex-dividend on Wednesday, 19 October 2022.
- The record date for the dividend payment will be Friday, 21 October 2022.
- Dividend payment date will be on Monday, 24 October 2022.
No dematerialisation or rematerialisation of share certificates may be done between Wednesday, 19 October 2022 and Friday, 21 October 2022 (both days inclusive).
By order of the RMI board.
Schalk Human
Company secretary
Rosebank
21 September 2022
Summary consolidated income statement
for the year ended 30 June
%
R million 2022 2021 change
Gross insurance premiums 23 532 20 570 14
Less: Reinsurance premiums (2 314) (1 658)
Net insurance premiums 21 218 18 912 12
Gross change in provision for unearned premiums (1 264) (1 043)
Reinsurance relating to provision for unearned premiums 243 182
Net insurance premiums earned 20 197 18 051 12
Fee and other income 471 85
Investment income 320 152
Interest income on financial assets using the effective interest rate method 341 333
Realised losses - (6)
Net fair value gains on financial assets 118 406
Fair value gain on loss of control of subsidiary 37 -
Expected credit losses on financial assets (5) (2)
Net income 21 479 19 019 13
Gross claims paid (13 352) (10 019)
Reinsurance recoveries received 2 577 1 276
Provision for non-claims bonuses (550) (509)
Transfer to policyholder liabilities under insurance contracts (3) (249)
Fair value adjustment to financial liabilities (147) (140)
Marketing and administration expenses (6 868) (5 598)
Profit before finance costs, results of associates and taxation 3 136 3 780 (17)
Finance costs (432) (626)
Share of after-taxation results of associates 27 64
Profit before taxation 2 731 3 218 (15)
Taxation (1 027) (1 139)
Profit for the year from continuing operations 1 704 2 079 (18)
Profit for the year from discontinued operations 21 187 1 143
Profit for the year 22 891 3 222 >100
Attributable to:
Equity holders of the company 22 396 2 893 >100
Non-controlling interests 495 329 50
Profit for the year 22 891 3 222 >100
Earnings per share (continuing and discontinued operations) 1 463.2 189.2 >100
Diluted earnings per share (continuing and discontinued operations) 1 460.4 188.5 >100
Computation of headline earnings
for the year ended 30 June
%
R million 2022 2021 change
Earnings attributable to equity holders 22 396 2 893 >100
Adjustment for:
Gain on distribution of associates (15 227) -
Profit on disposal of equity accounted investments (4 780) -
Impairment of intangible assets by associates 206 138
Gain on dilution and disposal of equity-accounted investments (38) (84)
Loss of control of subsidiary 19 -
Impairment of owner-occupied building to below cost 17 3
Adjustments within equity-accounted earnings 4 9
Loss on disposal of property and equipment 1 4
Profit on sale of subsidiary - (41)
Derecognition of intangible assets and property and equipment - 10
FCTR reversal on sale of foreign subsidiary - (4)
Loss on dilution of joint venture - 1
Headline earnings attributable to equity holders 2 598 2 929 (11)
Computation of normalised earnings
for the year ended 30 June
%
R million 2022 2021 change
Headline earnings attributable to equity holders 2 598 2 929 (11)
RMI's share of normalised adjustments made by associates 30 610
Amortisation of intangible assets relating to business combinations 128 289
Economic assumption adjustments net of discretionary margin and interest rate derivative (81) 95
Remeasurement gain on retained interest in CloudBadger (53) -
Restructuring costs 34 219
Unrealised (gains)/losses on foreign exchange contracts not designated as a hedge (15) 54
Transaction costs related to VitalityLife interest rate derivatives 12 1
Time value of money movement of swap contract in VitalityLife (11) (28)
Adjustments for iSabelo 8 11
Finance costs - Convertible preference shares 5 -
Deferred tax raised on assessed losses 3 (38)
B-BBEE cost - 7
Restructuring costs 318 -
Group treasury shares 8 6
Normalised earnings attributable to equity holders 2 954 3 545 (17)
Computation of earnings and dividend per share
for the year ended 30 June
%
R million 2022 2021 change
Earnings attributable to equity holders 22 396 2 893 >100
Headline earnings attributable to equity holders 2 598 2 929 (11)
Number of shares in issue (millions) 1 532 1 532
Weighted average number of shares in issue (millions) 1 531 1 529
Continuing and discontinued operations
Earnings per share (cents) 1 463.2 189.2 >100
Diluted earnings per share (cents) 1 460.4 188.5 >100
Headline earnings per share (cents) 169.7 191.6 (11)
Diluted headline earnings per share (cents) 167.6 190.9 (12)
Continuing operations
Earnings per share (cents) 94.1 115.2 (18)
Diluted earnings per share (cents) 92.0 115.2 (20)
Headline earnings per share (cents) 95.0 119.6 (21)
Diluted headline earnings per share (cents) 93.9 119.6 (22)
Dividend per share
Normal dividend (cents) 65.5 45.0
Special dividend (cents) 142.0 -
Total dividend (cents) 207.5 45.0 >100
Computation of normalised earnings per share
for the year ended 30 June
%
R million 2022 2021 change
Normalised earnings attributable to equity holders 2 954 3 545 (17)
Number of shares in issue (millions) 1 532 1 532
Weighted average number of shares in issue (millions) 1 532 1 532
Continuing and discontinued operations
Normalised earnings per share (cents) 192.8 231.4 (17)
Diluted normalised earnings per share (cents) 191.1 231.1 (17)
Continuing operations
Normalised earnings per share (cents) 115.8 120.2 (4)
Diluted normalised earnings per share (cents) 114.7 120.2 (5)
The contents of this short form announcement are the responsibility of the board of directors of the company.
Shareholders and/or investors are advised that this short form announcement represents a summary of the information contained in the full announcement,
published on the Stock Exchange News Service (SENS) and is available for viewing on RMI's website at
http://www.rmih.co.za or at https://senspdf.jse.co.za/documents/2022/jse/isse/RMIE/RMI22.pdf
PricewaterhouseCoopers Inc., the group's independent auditor, has audited the consolidated and separate annual financial statements from which this announcement
has been derived, and has expressed an unmodified audit opinion on these financial statements. The auditor's report, with key audit matters, issued on the
consolidated and separate annual financial statements can be accessed at http://www.rmih.co.za/investor-relations.
Any investment decisions by shareholders and/or investors should be based on a consideration of the full announcement as a whole and shareholders and/or
investors are encouraged to review the full announcement, which is available for viewing on the JSE's website and on the company's website as set out above.
The full announcement is also available for inspection, at no charge, at the registered office of the company (12th Floor, The Bank, Corner of Cradock and Tyrwhitt
Avenues, Rosebank, Johannesburg, 2196) and at the offices of RMI's Sponsor, Rand Merchant Bank (a division of FirstRand Bank Limited) (1 Merchant Place, Corner
Fredman Drive and Rivonia Road, Sandton) from 09:00 to 16:00 weekdays. Shareholders and/or investors may request copies of the full announcement from the
company secretary at schalk.human@rmih.co.za.
Directors
JJ Durand (chairman), HL Bosman (chief executive officer and financial director), JP Burger, P Cooper
(Ms) A Kekana, P Lagerstrom, (Ms) MM Mahlare, MM Morobe and JA Teeger.
Messrs PK Harris, RT Mupita and O Phetwe and Ms SEN De Bruyn stepped down as directors at the annual general meeting held on 24 November 2021.
Mr LL Dippenaar retired as a director on 14 March 2022.
Alternates
DA Frankel, F Knoetze and UH Lucht
Secretary and registered office
JS Human
Physical address
12th Floor, The Bank,
Corner of Cradock and Tyrwhitt Avenues,
Rosebank, Johannesburg, 2196
Postal address
Private Bag X1000,
Saxonwold, 2132
Telephone: +27 10 753 2430
Web address: http://www.rmih.co.za
Sponsor (in terms of JSE Listings Requirements)
Rand Merchant Bank (a division of FirstRand Bank Limited)
Physical address
1 Merchant Place, corner of Fredman Drive and Rivonia Road,
Sandton, 2196
Transfer secretaries
Computershare Investor Services Proprietary Limited
Physical address
Rosebank Towers, 15 Biermann Avenue, Rosebank
Postal address
PO Box 61051, Marshalltown, 2107
Telephone: +27 11 370 5000
Telefax: +27 11 688 5221
22 September 2022
Date: 22-09-2022 08:00:00
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