MMI HOLDINGS LIMITED - Trading Statement for the year ended 30 June 2018

Trading Statement for the year ended 30 June 2018

MMI Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2000/031756/06)
JSE share code: MMI
NSX share code: MIM
(“MMI Holdings” or “the Company”)

MMI GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration No. 1904/002186/06)
Company code: MMIG

Trading statement for the year ended 30 June 2018

Shareholders are reminded that MMI executive management has introduced a number of recent
changes to the organisation in order to focus on the practical implementation of our strategy. We
have reset the business to provide a strong foundation for improved performance and future growth.
We are confident that these changes will create value for shareholders in due course.

Shareholders are advised that the diluted core headline earnings per share, the group's main earnings
measure to monitor the operational performance of the group, is expected to decrease by between 5
and 15 percent relative to the previous year.

The diluted core headline earnings expectation equates to a range from 170cps to 190cps for F2018,
compared to 200cps in F2017. Diluted core headline earnings has been negatively affected during the
period by various factors including increased investment in client engagement activities, higher
expenditure in technology, and weaker persistency in Metropolitan Retail. Also, MMI’s share of losses
increased, in line with business plans, on new initiatives such as the India joint venture. Momentum
Corporate profits have improved with group underwriting results showing an improvement year-on-
year, whilst good expense management also contributed to their improved result. Strong mortality
and morbidity profits across the group boosted core earnings.

Shareholders are further advised that the group's basic earnings per share is expected to decrease by
between 5 and 15 percent (to between 84cps and 94cps) relative to 98cps earned in the comparative
period. Headline earnings per share is expected to show a decrease of between 15 and 25 percent (to
between 89cps and 101cps) relative to 118cps for the comparative period. Basic and headline earnings
have both been negatively affected by significant basis changes in Momentum Retail and Metropolitan
Retail and the weak investment markets of F2017 resulting in a lower starting asset base for the
current year.

Basic earnings decreased by less than headline earnings mainly due to a reduction in the impairment
of intangibles compared to F2017.

Note that MMI excludes fair value gains, impairment of intangibles, movement in value of MMI shares
held in policyholder funds, investment variances and non-recurring items from core headline earnings
whereas basic earnings include all these items.

MMI will be releasing final results for the year ended 30 June 2018 on 5 September 2018.
The forecast financial information contained in this trading statement to shareholders is based on
information available at the time of publication and has not been reviewed and reported on by the
Company’s auditors.

CENTURION
24 August 2018

Sponsor in South Africa
Merrill Lynch South Africa (Pty) Limited

Sponsor in Namibia
Simonis Storm Securities (Pty) Limited

Date: 24/08/2018 07:05:00 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.